agency long-term debt ratings february 16 2007 ba3 negative investors standard fitch.
 downgrade credit ratings affect access capital stringent covenants higher interest rates indebtedness.
 contractual obligations estimated obligations december 31 2006 effect liquidity cash flow future.
 2007 2008 2009 2010 2011
 long-term $ 2. $. 257. 240. 500. 1247. 2251.
 interest payments 122. 116. 107. 93. 75.
 non-cancelable operating lease obligations 292. 265. 237. 207. 181. 861. 2045.
 acquisition 47. 34 109
. $ 400. repurchase cash march 2008.
 mature 2023.
structured acquisitions with contingent purchase price obligations reduce risk negative future performance.
 payments contingent performance targets conditions subject revisions earn-out periods.
 note 18 financial.
 not included obligations pension postretirement benefit plans.
 funding policy contribute minimum funding requirements additional status.
 returns market interest rates voluntary contributions.
 declines interest rates status.
 contribute domestic pension plans contribute $ 20. 6 foreign pension plans.
 not included deferred tax obligations uncertain.
 interest rate swap agreements contracts mitigate foreign exchange volatility.
 2005 terminated long-term interest rate swap agreements $ 350. 25%. senior unsecured notes $ 150. 25% notes.
 net cash receipts $ 1. 1  offset interest expense.
 entered foreign currency transactions.
 requirements.
changes value forward contracts recorded income expense.
 december 2006 2005 contracts $ 0. 2 $ 6. 2  fair value negligible.
 4. 50%. notes two derivative instruments. 25%. stock one derivative instrument.
 fair value december 2006 negligible.
 interpublic group companies.
 subsidiaries financial condition results operations 2014 amounts millions share


inc.
 financial statements 2014 value stock options 2007 $ 133. 9 million $ 133. million 2006 $ 57. 8 million 2005.
 exercises 2005 $ 62. 7 million $ 49. 2 million $ 36. 4 million.
 compensation expense nonvested options $ 23. 6 million december 31 2007.
. 6 years.
 restricted stock awards value market price common stock.
 compensation expense period three years.
 average grant fair value $ 63. $ 54. $ 32. 2007 2006 2005.
.
 stock 31 2006.
.
.
.
.
 value shares vested 2005 $ 3. 4 million $ 2. 3 million $. 6 million.
 compensation expense nonvested stock awards $ 44.million 31 2007.
 compensation. 4 years.
 no terms stock awards.


ended december 2015 2014.
 increase cash-inventory financing due new vendor.
 note 6.
 note 8 debt.
 net cash financing decreased $ 56. 3 million 2014.
 driven debt refinancing transactions july 2013 ipo proceeds $ 424. 7 million.
 cash outflows $ 145. 9 million $ 518. 3 million 2014 2013 long-term debt.
 8.
 december 31 2015 total indebtedness $ 3. 3 billion $ 1. 6 billion secured.
 compliance covenants credit agreements indentures.
 cdw 2019s restricted payment capacity senior secured term loan $ 679. 7 million.
 note 8 long-term debt.
 debt august 1 2015 consolidated kelway 2019s term loan revolving credit facility.
 british pounds.
kelway revolving credit facility multi-currency borrow a350. million $ 73. 7 million december 31 2015.
 march 3 issuance $ 525. million 5. senior notes due 2023 mature september 1  2023.
 redeemed remaining $ 503. 9 million. notes due 2019 accrued unpaid interest april 2 2015.
 financial intermediaries purchase inventory.
 payable-inventory financing.
 interest expense paid due.
 note 6 inventory financing agreements.
 future obligations debt interest payments operating leases asset retirement obligations.
 estimated future payments december 31 2015.
 millions payments < 1 year 1-3 years 4-5 years > 5 years
 term loan $ 1703. $.
 kelway term loan. 77.
2022 852. 36. 72.
 2023 735. 26. 52. 52. 603.
 2024 859. 31. 63. 701
 leases 143. 22. 41. 37. 41. 9
 retirement obligations 1. 8. 5 2
 4386. 194. 7 1738. 4 2019.


pollutants discharged waters united states remediation.
 compliance with requirements regulations.
 congress considering legislation reduce emissions greenhouse gases carbon dioxide methane.
 state regional initiatives regulate greenhouse emissions underway.
 monitoring federal state legislation potential impact operations.
 direct greenhouse gas emissions oneok partners less than 6 million metric tons annual.
 continue quantify emissions report emissions mandatory reporting rule epa mid-2009.
 superfund imposes liability release hazardous substance.
 owner operator facility companies.
 liable costs cleaning damages natural resources health studies.
 chemical site security states homeland security rule 2007 companies reports sites chemicals.
 assessments facilities assigned four risk tiers high to low not.
 majority facilities tiered.
waiting for homeland security analysis tiered facilities require site security plans enhancements.
 strategy impact operations environment.
 strategies include developing greenhouse gas emissions inventory improving efficiency pipelines gas processing facilities developing technologies emission control carbon dioxide analyzing future energy investment.
 subsidiaries oneok partners participate processing transmission sectors distribution natural gas star program methane emissions.
 subsidiary honored star partner emission-reduction.
 low lost unaccounted-for methane gas practices pipeline facility maintenance.
 annual lost-and-unaccounted-for natural gas less than 1 percent of total throughput.
 employed 4742 people at january 31  2009 739 kansas gas service collective bargaining contracts.
 contracts.
 united steelworkers of america
 international union of operating engineers
brotherhood june 30


lower 2008 storage margins risk management natural gas prices fewer storage capacity natural gas prices decrease $ 9. 7 million storage margins natural gas inventory decrease $ 2. 1 million colder weather cost margins 2008 increase $ 15. 8 million unrealized fair value derivative instruments improved margins.
 operating costs decreased lower employee costs depreciation expense.
.
 margin decrease $ 22. 0 million transportation margins fair value force majeure cheyenne plains gas pipeline decrease $ 5. 0 million retail activities lower margins competition decrease $ 4. 3 million financial trading margins increase $ 4. 9 million storage marketing margins higher seasonal storage spreads optimization marketing margins increase cost peaking load services higher demand fees.
 volume curtailed fire pipeline compressor station.
fire damaged instrumentation electrical wiring cheyenne plains gas pipeline force majeure.
 hedged statement 133.
 discontinuance hedge accounting loss $ 5. million recognized third quarter 2007 $ 2. 4 million insurance proceeds recovered first quarter 2008.
 resumed operations november 2007.
 costs decreased legal employee costs ad-valorem tax expense.
 energy services segment.
 2008 2007 2006
 natural gas marketed bcf ) 1160 1191
 gross margin $ /mcf.
 settled volumes bcf 2359 2370
 gas storage 2008 81. bcf.
 storage capacity 91 bcf gas volumes decreased slightly increased injections.
 demand impacted weather events 15 percent decrease demand hurricane.


payments early redemption discounted treasury security.
 discount debt costs amortized 2022.
.
 issued $ 1. 5 billion unsecured obligations.
 $ 750 million 4. 25%. notes 2021 $ 750 million floating rate repaid 2013.
 proceeds repurchase blackrock 2019s series merrill lynch.
 interest 4. notes 2021 payable semi-annually may november 24 2011 $ 32 million per year.
 notes redeemed maturity redemption price.
 discount debt costs amortized 2021.
.
 2009 issued $ 2. 5 billion unsecured.
 three $. billion. 25%. notes repaid december 2012 $ 1. billion 3. 50%. repaid 2014 $ 1. billion 5. notes 2019.
proceeds offering borrowings cp program barclays global investors 2009 corporate purposes.
 interest 2019 notes $ 50 million payable semi-annually june december 10.
 redeemed maturity redemption price.
 unamortized discount debt costs amortized remaining term 2019.
.
 issued $ 700 million. 25%. senior unsecured notes september 15 2017.
 proceeds acquisition fund-funds business remainder corporate purposes.
 interest payable semi-annually march september 15 $ 44 million per year.
 notes redeemed maturity price.
 unamortized discount debt costs amortized remaining term 2017.
.
 leases office spaces 2035.
 future commitments.
 135
 2019 125
 2020 120
 2021
rent office equipment lease $ 134 million $ 136 million $ 132 million 2016 2015 2014.
.
 december 31 2016 company had $ 192 million capital commitments sponsored investment funds.
 private equity real assets opportunistic.
 excludes commitments third-party.
 capital $ 192 million $ 12 million contingent commitments funds expired.
 timing funding unknown callable demand expiration.
 unfunded commitments not recorded statements.
 future commitments binding.
 intends additional capital commitments investment products.
 business acquisitions.
 required performance targets capital commitments.
 remaining contingent payments december 31 2016 $ 115 million included.
.
 portfolio manager derivative transactions maximum potential exposure $ 17 million.
 note 7 derivatives hedging.
.
blackrock receives subpoenas.
 federal state international regulatory authorities


indebtedness matured quarter 2014.
 interest payable semi-annually march september 18 $ 35 million per year.
 2024 notes redeemed maturity 201d redemption price.
 unamortized discount debt costs amortized remaining term 2024.
.
 2012 issued $ 1. 5 billion unsecured obligations.
 senior debt securities $ 750 million. notes repaid june 2015 maturity $ 750 million. 2022.
 proceeds repurchase blackrock 2019s common stock.
 interest 2022 notes $ 25 million year payable semi-annually june 1 december 1.
 redeemed maturity 201d redemption price.
 future payments redemption.
 unamortized discount costs amortized remaining term 2022.
.
 2011 issued $ 1. 5 billion unsecured.
issued senior debt securities $ 750 million 4. 25%. 2021 $ 750 million floating rate repaid 2013.
 proceeds repurchase blackrock 2019s series merrill lynch.
 interest 4. 25%. 2021 payable semi-annually may november 24 $ 32 million per year.
 redeemed redemption price.
 unamortized discount costs amortized term 2021.
.
 issued $ 2. 5 billion unsecured unsubordinated obligations.
 three debt securities $. billion 2. 25%. notes repaid 2012 $ 1. billion 3. 50%. repaid 2014 $ 1. billion 5. notes 2019.
 borrowings program acquisition barclays global investors.
 interest 2019 notes $ 50 million payable semi-annually june december 10.
 redeemed redemption price.
unamortized discount debt costs amortized 2019.
.
 leases office spaces 2043.
 future commitments.
 2018
 2019 132
 2020 126
 2021 118
 2022
 2017 agreement 50 hymc lease 847000 feet office space 50 hudson yards new york.
 twenty years payments may 2023 option renew.
 rental payments $ 51 million year first five years increasing five years $ 58 million 66 million $ 74 million per year $. billion rent.
 operating not liability.
 rent office equipment expense $ 132 million $ 134 million $ 136 million 2017 2016 2015.
.
 december 31 $ 298 million capital commitments sponsored investment funds.
 real.
 excludes commitments third.
timing funding unknown callable demand expiration.
 unfunded not recorded statements.
 include future commitments.
 intends additional capital commitments investment products clients.
 acquisitions.
 blackrock required payments performance targets revenue new capital commitments.
 remaining contingent payments december 31  2017 $ 236 million $ 128 million first reserve transaction included other liabilities statements.


regulated subsidiaries discontinued operations.
 amounts statistics tables on-going operations.
 table regulated businesses revenue 2012 customers estimate population served december 31 2012 revenues estimated population.
 jersey revenues 639. 24. 9%. 9 % customers 639838 20. 3%. 3 % estimated population served 2. 5 21. 9%. 9 %
 pennsylvania 557. 21. 7%. 7 %. 8%. 8 %. 19. 3%. 3 %
 279. 10. 9%. 9 %. 4%. 4 %. 13 2%. 2 %
. 0%. 0 %. 8%. 8 %. 5%. 5 %
. 8%. 8 %. 2%. 2 %. 5%. 5 %
 california 193. 7 5%.174188. 5%. 5 %. 3%. 3 %
 west virginia. 4 9%. 9 % 172159. 4%. 4 %. 3%. 3 %
 seven states 2249. 87. 7%. 7 % 2697150 85. 4%. 4 %. 0 %
 314. 12 3%. 3 % 461076 14. 6%. 6 %. 0% 0 %
 2564. 100. 0%. 0 % 3158226. 11. %
 illinois-american water company.
 west virginia-american.
 subsidiaries georgia hawaii iowa kentucky maryland michigan new tennessee virginia.
 87. 7%. 7 % operating revenue. 7 million customers seven states.
 no customer 10% annual revenue.
 1500 communities 16 states.
assets include 80 surface water plants 500 groundwater plants 1000 wells 100 wastewater facilities 1200 treated water storage facilities 1300 pumping stations 90 dams 46000 miles mains pipes.
 regulated utilities own assets.
 land assets water.
 water in public trust allocated through contracts rights federal rights.
 maintaining reliability networks key.
 infrastructure renewal programs in states.
 rehabilitation replacement.
 water demands depends on adequate supply water.
 drought restrictions overuse.
 measures ensure adequate water.
 geographic diversity service areas weather extremes


consolidated financial statements derivatives credit features firm 2019s derivatives transacted bilateral agreements counterparties post collateral terminate credit ratings.
 assesses impact collateral termination payments downgrade.
 ratings.
 table presents fair value net derivative liabilities agreements excluding collateral assets posted collateral additional collateral termination payments downgrade 2019s credit ratings.
 millions december 2012 2011
 net derivative liabilities bilateral agreements $ 27885 $ 35066
 collateral posted 24296 29002
 additional collateral termination payments one-notch downgrade 1534 1303
 payments two-notch downgrade
 enters transactions manage credit risk investing lending.
 derivatives managed firm 2019s net risk position.
 individually negotiated contracts settlement payment conventions.
events include failure to pay bankruptcy indebtedness restructuring repudiation dissolution entity.
.
 protect buyer against loss principal on bonds loans mortgages issuer suffers credit event.
 buyer pays premium receives protection contract.
 no credit event seller no payments.
 if credit event occurs payment calculated contract.
 credit indices.
 derivatives swaps.
 credit event occurs protection seller pays buyer.
 payment pro-rata portion transaction amount defaulted obligation.
 credit risk separated into portions subordination.
 junior tranches cover defaults excess loss covered by senior tranche.
 total return swaps.
 risks from protection buyer to protection seller.
 receives floating interest protection against reduction fair value receives cash flows increase fair value.
.
credit option writer assumes obligation purchase or sell obligation price or credit spread.
 purchaser buys obligation sell.
 payments depend credit spread or price obligation.
 firm hedges identical.
 transactions with financial institutions subject stringent collateral thresholds.
 trigger event firm possession obligations underlying recover amounts default.
 goldman sachs 2012 annual report


assumptions table reflects hundred point increase estimated long-term return assets 2011 pension expense millions long-term rate return.
 expense
.
. 35 )
 -5 5
 -2 2
 estimated future contributions $ 403 million 2011 $ 288 million goodwill intangible assets excess cost market value assets.
 intangible assets trademarks customer relationships technology non-compete agreements intangibles.
 goodwill balances december 31 2010 increased $ 8. 6 billion $ 3. 6 billion $ 6. billion $ 791 million 2009 hewitt acquisition.
 goodwill test impairment annually fourth.
 acquired trademarks impairment.
 indicators.
 decline share price market capitalization future cash flows adverse change legal factors business climate.
events 2010 or 2009 impairment reported goodwill trademarks.
 perform impairment reviews at reporting unit level.
.
 component reporting unit discrete financial information available management reviews operating results.
 reporting unit if components similar single component.
 goodwill impairment test two step analysis.
 one fair value unit to book value.
 management fair value.
 fair value greater than goodwill trademarks not impaired no further testing necessary.
 fair value less than perform step two.
 calculated fair value hypothetical purchase price allocation assets liabilities.
 difference implied fair value goodwill.
 charge recorded in financial statements if carrying value greater than implied fair.


.
 company resolved five eight lawsuits believes adequate insurance remaining.
 settlement financial statements.
 2009 third quarter environmental site remediation action submitted epa feasibility study.
 select remedial action alternative for public comment.
 final remedial action accrued 2009 estimate minimum costs.
 remediation plan costs higher.
 exterior siding roofing litigation established reserves settlement three nationwide class action lawsuits against masonite corp.
 settlements relate to exterior hardboard siding omniwood siding woodruf roofing.
 hardboard required by january 15 2008 omniwood woodruf jan 6  2009.
 table analysis total reserve activity hardboard omniwood woodruf settlements years december 31 2009 2008 2007 millions.
 balance december 31 2006 $ 124
december 31 2007 46
 provision 82
 payments -87
 31 2008 41
 payments -38 (
 december 31 2009 $ 3
 reserve balance december 31 2009 settlement claims.
 involved inquiries litigation contracts sales intellectual property environmental safety tax personal injury labor employment monetary damages.
 outcome financial statements.
 12 variable interest entities 2006 sale 5. 6 million acres forestlands international paper received timber $ 4. 8 billion.
 payments august 2016 supported irrev ocable letters credit buyers.
 2006 contributed timber notes class b interests.
 contributed $ 200 million class a interests $ 400 million promissory notes sold class a interest third party investor.
december 31 2006 international paper held b interests borrower investor entities valued $ 5. 0 billion.
 no obligation further capital contributions provide financial support during 2009 2008 2007.
 analysis paper not primary beneficiary


realty corporation annual report 200844 estimated.
 completion estimates contract expenditures final costs.
 changes job performance conditions profitability revisions costs income recognized.
 unbilled receivables construction contracts totaled $ 22. 7 million $ 33. 1 million at december 31 2008 2007.
 property sales gains recognized sfas 66.
 timing sale measured criteria assistance.
 judgments terms transaction total profit ownership interest future involvement.
 sales criteria defer gain recognition account operations finance installment cost recovery until full sales criteria met.
 future costs sale included gain sales.
 gains sales depreciated property operations proceeds sale classified investing activities.
 gains losses sale properties developed repositioned not classified gain sale.
 proceeds development sale classified operating activities.
computed income average.
 diluted income minority interest earnings potential dilutive securities.
 table reconciles basic diluted income.
 2008 2007 2006
 basic income $ 56616 $ 217692 $ 145095
 minority interest earnings 2968 14399 14238
 diluted income $ 59584 $ 232091 $ 159333
 146915 139255 134883
 units 7619  9204 13186
 dilutive shares stock-based compensation plans 507 1155 1324
 securities 155041 149614 149393
 excludes 7731 719 anti-dilutive shares december 31 2008 2007 2006.
 excludes. 75%. exchangeable senior notes due november 2011 2006 anti-dilutive effect earnings 31 2008 2007.
joint venture partner convert ownership common shares.
 effect earnings anti-dilutive years 2008 2007 2006.


interest income 2012 versus 2011.
 $ 3. 88 billion 25% lower 2011.
 due lower yields financial instruments collateralized agreements.
.
 $ 5. 19 billion 2011 6% lower 2010.
 due higher interest expense long borrowings higher dividend expense instruments offset higher yielding agreements.
 operating expenses influenced compensation headcount business activity.
 salaries discretionary compensation amortization equity awards.
 impacted revenues financial performance labor markets business mix share-based compensation programs external environment.
 difficult initiative 2011 reduce operating expenses.
 annual compensation non-compensation reductions $ 1. 9 billion.
 operating expenses staff.
 2012 2011 2010
 compensation benefits
. payrolltax
 brokerage clearing exchange fees
 development
communications technology 782 828
 depreciation amortization 1738 1865
 occupancy 875 1030
 fees 867 992 927
 insurance 529
 expenses 2435 2072
 non-compensation expenses 10419
 operating 22642 26269
 32400 33300 35700
.
.
.
 consultants temporary.


pnc financial services group.
 2013 form 10-k 155 legal proceedings financial position.
 claims indemnification obligations results future reporting period loss income.
 outstanding not consolidated balance sheet.
 commitments extend credit december 31 2018 2017.
 commitments extend credit millions.
 commitments extend credit
 commercial lending $ 120165 $ 112125
 home equity lines of credit 16944 17852
 credit card 27100 24911
 5069 4753
 commitments extend credit 169278 159641
 standby letters credit 8655
 reinsurance agreements
 bond purchase agreements
 commitments 1130 1732
 commitments $ 181612 $ 172521
 commitments extend credit lend funds provide liquidity conditions.
 fixed expiration dates fee termination clauses credit quality.
standby letters issue share risk financial institutions support obligations customers insurance requirements transactions capital markets.
 91% letters rated pass at december 31  2018 2017 remainder criticized.
 rating pass risk loss low criticized higher risk.
 customer fails financial obligation remarketing program obligated payment.
 standby letters credit december 31  2018 terms less one year to six years.
 assets $ 1. 1 billion secured standby letters credit.
 remaining letters secured by collateral guarantees.
 liability obligations $. 2 billion at december 31 , 2018 included consolidated balance sheet.


consolidated financial statements credit agreement provides loans bear interest rates base rates plus margin formulas.
 commitment fee unused commitment 0. 125%. to. 625%. per annum.
 interest rate commitment fee ratings standard poor 2019s financial services moody 2019s investor service.
 non-credit long- term senior unsecured debt.
 credit agreement contains restrictive covenants limitations create liens sale leaseback transactions consolidations mergers transfers assets.
 indebtedness to capitalization sixty percent or less.
 events default failure payments covenants change control bankruptcy insolvency.
 no amounts outstanding at december 31 november 12 2010 ppg public offering $ 250 million 1.%. notes due 2016 $ 500 million 3.%. notes due 2020 $ 250 million.%.500 % notes due 2040 notes 201d.
 issued indenture march 18  2008 201d bank new york mellon trust company. supplemented first supplemental indenture march 18 2008 second november 12 2010 201d.
 company issue additional debt.
 covenants incur liens indebtedness sale-leaseback transactions consolidations mergers conveyances transfers leases assets.
 require repurchase change control price equal 101% principal amount plus accrued unpaid interest.
 cash proceeds $ 983 million net discount issuance costs.
 costs $ 17 million amortized to interest expense.
.
 uncommitted lines of credit $ 791 million $ 31 million used december 31  2010.
 subject to cancellation not commitment fees.
short-term debt december 31 2010 2009 20ac650 million revolving credit. 8%. 8 %.
 2009 $ 110 average 3. 39%. 39 %.
 2010 2. 2%. 2 % covenants credit agreements loan agreements indentures.
 agreements financial ratio covenant.
 total indebtedness exceed 60% 60 % capitalization excluding.
 31 2010 indebtedness 45% 45 % capitalization.
 debt agreements cross- default provisions.
 default debt payment $ 10 million.
 primary debt obligations secured guaranteed affiliates.
 interest payments 2010 2009 2008 totaled $ 189 million $ 201 million $ 228 million.
.
 20ac650 million revolving credit. 8%. 8 %. 2009
 average 3. 39%. 39 %. 2010 2. 2%. 2 % 2009
$ 24  $ 268
 credit agreement loans bear interest company option base rates plus margin formulas.
 commitment fee unused commitment 0. 125%. to. 625%. per annum.
 interest rate commitment fee vary ratings standard poor 2019s financial services moody 2019s investor service.
 non-credit long- term senior unsecured debt.
 restrictive covenants limitations liens sale leaseback transactions consolidations mergers transfers assets.
 requires ratio total indebtedness to capitalization sixty percent or less.
 events default failure payments covenants change control bankruptcy insolvency.
 no amounts outstanding december 31 november 2010 ppg public offering $ 250 million principal 1.%. notes 2016 $ 500 million principal 3.%.600 % notes due 2020 201c2020 notes 201d $ 250 million principal amount 5. 500%. notes due 2040 notes 201d.
 issued indenture march 18 2008 201d bank new york mellon trust company. first supplemental indenture march 18 2008 second november 12 2010 201d.
 issue additional debt.
 incur liens indebtedness sale-leaseback transactions consolidations mergers conveyances transfers leases assets.
 require repurchase change control price equal 101% principal amount accrued unpaid interest.
 cash proceeds $ 983 million net discount issuance costs.
 costs $ 17 million amortized interest expense.
.
 operations uncommitted lines credit $ 791 million $ 31 million used december 31 , 2010.
uncommitted lines credit subject cancellation not commitment fees.
 short-term debt december 31 2010 2009 2009 20ac650 million revolving credit facility 0. 8%.
 2009 $ 110 average 3. 39%.
 2010 2. 2%. 2009 restrictive covenants credit agreements loan agreements indentures.
 revolving credit agreements financial ratio covenant.
 total indebtedness not exceed 60% capitalization excluding.
 2010 indebtedness 45% 45 % capitalization.
 debt agreements cross- default provisions.
 default payment $ 10 million.
 primary debt obligations secured guaranteed affiliates.
 interest payments 2010 2009 2008 totaled $ 189 million $ 201 million $ 228 million.


$ 125 million maintenance costs $ 18 million.
 profits 2012 $ 184 million acquisition temple-inland mill divestiture $ 91 million restructuring european packaging $ 17 million $ 3 million gain other items 2011 temple-inland $ 20 million $ 7 million other items.
.
 $
 profit
 sales $ 11. 6 billion 2012 8. billion 2011. billion 2010.
 profits $ 1. billion. 763 million facility closure.
 sales volumes flat.
 sales price lower export containerboard.
 input costs lower recycled fiber wood natural gas higher starch.
 freight costs.
 maintenance downtime costs higher.
 inventory valuation adjustments 235 million temple-inland synergies.
 market-related downtime 570000 tons 380000 2011.
profits 2012 $ 184 million acquisition temple-inland $ 91 million divestiture three containerboard mills.
 2011 $ 20 million temple inland.
 2013 sales volumes first quarter increase higher shipping days.
 price containerboard price increase.
 input costs higher recycled fiber wood starch.
 maintenance downtime costs $ 26 million higher outages eight mills.
 costs lower.
 packaging net sales $ 1. 0 billion 2012 $ 1. billion 2011 $ million 2010.
 profits $ 53 million 72 $ 66 million etienne mill 2011 $ 70.
 sales volumes lower decreased demand weaker economic environment.
 flat.
 sales margins increased price increases lower board costs.
 costs higher energy distribution.
 net gain $ 10 million insurance settlement offset costs earthquakes.
first quarter 2013 sales volumes stable seasonal decrease increase industrial.
 sales margins improve lower input costs.
.
 operating costs higher earthquake insurance settlement sales profits sca pack aging 2010.
 net sales $ 400 million 2012 410 2011 255.
 operating profits $ 2 million loss $ 7 million.
 higher sales margins offset lower sales volumes higher raw material operating costs.
 first quarter 2013 sales volumes margins decrease seasonality.
 net sales distribution $ 260 million 2012 2011 240.
 operating profits $ 3 million breakeven.


item entergy corporation utility companies system energy asbestos litigation arkansas gulf states louisiana mississippi new orleans lawsuits filed federal state courts texas louisiana contractor employees 1940-1980s against other utility companies damages exposure asbestos.
 defendants.
 approximately 500 lawsuits 5000 claimants.
 management provisions cover exposure.
 negotiations continue insurers recover reimbursements.
 loss exposure resolution not material financial position results utility companies.
 employment labor proceedings subsidiaries responding lawsuits state federal courts labor-related proceedings current former employees.
 damages not specified.
actions include wrongful employment wage disputes fair labor standards act race gender disability discrimination collective bargaining agreements unfair labor practice national labor relations board retaliation benefits entergy plans.
 subsidiaries deny liability.
.
 december 31 2011 subsidiaries employed 14682.
.
 1357
 937
 mississippi
 orleans
 texas 674
 2867
 3138
 nuclear 3709
 5300 employees represented electrical workers utility workers union teamsters united government security officers security police fire professionals.


maintenance operate eighth largest vocational fleet united states.
 december 31 2014 average fleet age line business number age.
 residential 7600
 commercial 4300
 industrial 3900
 15800.
 standardization functions minimize variability maintenance higher vehicle quality service life.
 reliable safer efficient fleet operating costs.
 implemented standardized maintenance programs 60% fleet december 31 2014.
 cash utilization strategy increasing free cash flow improving return invested capital.
 free cash flow.
 operating activities purchases property equipment proceeds sales.
 cash flow section.
 free cash flow drives shareholder value information.
 cash strategy acquisitions returning free cash flow shareholders dividends share repurchases.
 committed efficient capital structure investment grade credit ratings.
manage cash flow capital expenditures business growth opportunities working capital receivable payable landfill environmental costs.
 2003 initiated quarterly cash dividend $ 0. 04 per share.
 increased 2014 $ 0. 28 per share. increase prior.
 5 years annual growth. 1%.
 consider additional increases value.
 2013 added $ 650 million repurchase authorization.
 $ 1439. 5 million. 6 million shares common stock cost per share $ 30. 88.
 $ 360. 2 million remaining repurchase authorization.
 remaining repurchase common stock.


consolidated financial statements march 18 2008 public offering $ 600 million 5. 75%. 75 % 2013 $ 700 million 6. 65%. 2018 $ 250 million 7. 70%. 2038.
.
 proceeds $ 1538 million discount costs additional borrowings $ 195 million 20ac650 million revolving credit repay debt short-term debt 20ac1 billion.
.
 discount issuance costs $ 12 million amortized interest expense.
 short-term debt december 31 2008 2007 2007.
 20ac1 billion bridge loan agreement 5. 2%. 2 %
. commercial paper 5. 3%. 3 % ). 31 2008
 20ac650 million revolving credit facility 2. 9%. 9 %.
 4. 0%. %.
$ 784 $ 1818 borrowings 30 days rolled over monthly until 2010.
 covenants credit agreements loan.
 credit agreements financial ratio covenant.
 indebtedness 60% capitalization excluding.
 december 31 2008 indebtedness 45%.
 debt agreements cross- default provisions.
 $ 10 million.
 debt obligations secured guaranteed affiliates.
 interest payments 2008 2007 2006 $ 228 million $ 102 million $ 90 million.
 rental expense $ 267 million $ 188 million $ 161 million.
 leased assets paint stores transportation equipment warehouses office space corporate headquarters pittsburgh.
 minimum lease commitments $ 126 2009 $ 107 2010 $ 82 2011 65 2012 51 2013 202.
 outstanding letters of credit $ 82 million december 31  2008.
letters of credit secure company performance to self-insurance programs commitments.
 2008 2007 guarantees were $ 70 million.
 relate to debt.
 debt secured by assets.
 carrying values $ 9 million $ 3 million fair values $ 40 million $ 17 million.
 loss.
.
 cash equivalents escrow marketable equity securities life insurance short- long-term debt.
 fair values carrying values long-term debt values $ 3122 million $ 3035 million 2008.
 2007 $ 1201 million $ 1226 million.
 values based on discounted cash flows interest rates.
 2008 annual report form 10-k


financial statements reduction debt accrued interest.
 new shares released outstanding earnings share.
 unreleased not outstanding.
 pensions postretirement benefits 2006 fasb issued sfas.
 158 2019 defined benefit pension plans amendment statements.
 87 88 106 132. company recognize net liability report funded status defined benefit pension changes funded status.
.
 158 change pensions postretirement benefits.
 adopted recognition disclosure provisions.
.
 2006.
 impact applying.
 158 line items balance sheet.
.
.
.
.
 assets $ 494 $ 105 $ 599
 deferred income tax liability -193 ( -136
 accrued pensions -371 -258 -629
 postretirement benefits -619 -1028
 loss 480 505 985
postretirement benefits 619 ) 409 ) 1028 ) loss 480 505 balances accounting standards adoption.
.
 note 13 benefits.
 derivative instruments recognizes instruments assets liabilities fair value balance.
 accounting changes fair value depends.
 cash flow hedge change fair value deferred income.
 ineffective reported earnings.
 hedge change value offset change value.
 hedge foreign operation change fair value deferred unrealized currency translation adjustment loss income.
.
.
 reserve $ 10 million $ 4 million.
 pretax charges income warranties 2006 2005 2004 $ 4 million $ 5 million $ 4 million.
 cash outlays warranties $ 5 million $ 4 million 4 million.
 $ 7 million warranty obligations assumed 2006 business acquisitions.
retirement obligations legal obligation retirement long-lived asset incurred acquisition construction development operation.
 obligations estimate fair value.
 adjusted for changes value.
 estimated retirement costs capitalized depreciated over useful life.
 obligations associated with closure assets chemicals manufacturing.
.
 2006 2005 accrued asset retirement obligation $ 10 million.
 2004 $ 9 million.
 2005 fasb issued interpretation.
.
.
.
 conditional asset retirement obligation.
 guidance estimate value.
.
 2005 adopted provisions.
.
 conditional asset retirement obligation relates to future abatement asbestos production facilities.
 arises from building practices.
 no current legal requirement to abate.
no requirement current plans timing method cost future abatement 2006 annual report form 10-k


valero energy corporation financial statements.
 equity share activity common treasury stock millions.
 balance december 31 2015 -200
 transactions-based compensation plans
 purchases 23
 december 31 2016 -222
 transactions
 purchases
 december 31 2017 -240
 purchases
 december 31 2018 -256 (
 20 million shares value $ 0. 01 per share.
 no shares preferred outstanding december 31 2018 2017.
 common stock program employee stock-based compensation plans.
 13 2015 $ 2. 5 billion stock no expiration date 2017.
 2016 additional $ 2. 5 billion 2018.
 23 $ 2. 5 billion no expiration date.
 2018 2017 2016 purchased $ 1. 5 billion $ 1. 3 billion.3 billion common stock.
 december 31 2018 approval purchase $ 2. billion.
 january 24 quarterly dividend $ 0. 90 share march 5 2019 holders february 13.
 valero energy partners september 16 2016 equity distribution agreement offered sold units $ 350 million market conditions


4 4 2019 notes table management believes operating income margin indicators blackrock 2019s financial performance.
 income margin provide disclosure investors.
 bgi transaction integration costs 2010 2009 advisory payments compensation legal fees marketing occupancy consulting expenses.
 restructuring charges 2009 2008 compensation occupancy professional fees.
 non-recurring excluded from operating income.
 operating margins exclusive costs useful blackrock 2019s operating performance.
 compensation expense long-term incentive plans funded blackrock stock excluded impact blackrock 2019s book value.
 compensation expense appreciation investments blackrock deferred compensation plans excluded returns expense reported in non-operating income.
 operating margin  margin equal to operating income excluding impact closed-end fund launch costs commissions.
believes excluding costs commissions useful fluctuate revenues impact results future periods.
 operating margin allows performance items restructuring charges transaction integration costs fund launch costs commissions fluctua tions compensation expense.
 uses operating margin performance.
 uses gaap non-gaap financial measures performance.
 non-gaap measure include all revenues expenses.
 operating margin excludes distribution servicing costs.
 excluding costs useful creates consistency treatment contracts similar services accounted lending.
 amortization deferred sales commissions excluded from operating margin offset distribution fee revenue.
 reimbursable property management compensation personnel metric property management.
 subsidiary blackrock realty advisors.
.
 employees retained on metric payroll properties acquired by realty clients.
compensation benefits reimbursed by realty clients excluded from revenue operating margin economic cost to blackrock.
 excludes costs for offsetting revenues.
 non-operating income less net income loss non-controlling interests equals loss for compensation expense depreciation investments blackrock deferred compensation plans.
 compensation expense offset recorded in operating income.
 included in non-operating income less net income loss returns on investments for plans.
 yearended december 31 2010 2009 2008
 non-operating income expense $ 23  $ -6 ( $ -577
 less net income loss ) attributable to nci -13 -155
 non-operating income -28 -422
expense appreciation deferred compensation plans -11 -18 38
 non-operating income less net loss nci $ 25 $ -46 $ -384
 non-operating income 36 28 ) 422 appreciation compensation plans 11 18 38 non-operating income less net income loss nci $ 25 46 $ income loss non-controlling interests.
 comparability periods reviewing blackrock 2019s non-operating contribution results.
 compensation expense appreciation deferred compensation plans offsets gain loss investments loss nci measure blackrock 2019s non-operating results book value.


repurchase equity securities table purchases fourth quarter 2008 number shares purchased average paid plans maximum.
 shares average price paid maximum
 october 1-31 $.
 november 1-30 4468.
 december 1-31 12850.
 47022.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. restricted shares common stock employee stock compensation plans offset tax withholding obligations shares fourth quarter 2008.
 average price month withheld shares calculated dividing value tax withholding obligations number shares.


includes capitalized lease obligations $ 3. 2 million $ 0. 1 million as december 31 2015 2014 included liabilities consolidated balance sheet.
 ebitda consolidated net income before interest tax depreciation amortization.
 adjusted ebitda.
 reconciliation ebitda.
 non-gaap financial measures.
 performance financial position cash flows amounts.
 differ.
 ebitda adjusted provide information operating performance cash flows future debt service capital expenditures working capital requirements.
 adjusted ebitda primary measure covenants definitions credit agreement senior secured term loan excess cash flow payment restricted payment covenant net leverage ratio.
 interest rate investments additional debt restricted payments additional principal prepayments beyond quarterly.
 details see note 8 long-term debt consolidated financial statements.
table net income ebitda adjusted ebitda.
 millions 2015 2014 2013 2012 2011
 net income $ 403. $ 244. $ 132. 119. $ 17.
 depreciation amortization 227. 207. 208. 210. 204.
 tax expense 243. 142. 62. 67. 11.
 expense 159. 197. 250. 307. 324.
 1033. 792. 653. 703. 557.
 non-cash equity-based compensation 31. 16. 8. 22. 19.
 loss extinguishment long-term debt 24. 90. 64. 17. 118.
 loss equity investments 10. -2
 integration 10.
 gain remeasurement equity investment -98.
 adjustments 6. 9. 82. 23.21.
 ebitda $ 1018. $ 907. $ 808. $ 766. $ 717.
 loss extinguishment long-term debt 24. 90. 7 64. 17. 118. loss equity investments 10. acquisition integration expenses 10. gain remeasurement equity investment 98. adjustments 6. 82. 23. 21 ebitda $ 1018. $ 907. $ 808. $ 766. $ 717. 2015 2014 2013 2012 2011 net losses extinguishments long-term debt.
 difference extinguishment net extinguished debt unamortized deferred financing costs.
 net income/loss equity investments.
 35% % loss equity awards.
 expenses acquisition.
 gain remeasurement 35% equity investment acquisition.


ii item 8 schlumberger subsidiaries common stock millions treasury.
 balance january 1 2007 1334 -156 1178
 shares optionees exchanged
 employee stock purchase plan
 repurchase
 conversions debentures
 balance december 31 2007 1334 -138 1196
 shares optionees exchanged
 employee stock purchase plan
 repurchase
 conversions debentures
 december 31 2008 1334 -140 1194
 shares optionees exchanged
 restricted stock
 employee stock purchase plan
 repurchase
 balance december 31 2009 1334 -139 1195
 consolidated financial statements


return lkq corporation nasdaq stock market. peer group.
 12/31/2011/31/2012/31/2013/31/2016
 lkq corporation $ 100 $ 140 219 187 197
 s&p 500 index $ 100 $ 113 $ 147 164 163
 peer group $ 100 $ 111 $ 140 $ 177 $ 188
 stock performance information material rule 14a section 18 securities exchange act 1934 incorporated securities act 1933 1934.
 common stock equity compensation plans december 31 2016 item 12 annual report form 10-k incorporated.


2013 ace limited subsidiaries excluded from adjusted weighted-average shares conversions impact securities anti-dilutive.
 31 2010 2009 2008 potential anti-dilutive share conversions 256868 1230881 638401 shares.
.
 ace foundation 2013 bermuda not-for-profit charitable causes bermuda.
 trustees ace management.
 maintains non-interest demand note receivable balance $ 30 million $ 31 million at december 31 2010 2009.
 receivable included assets.
 borrower proceeds investments bermuda real estate rented employees.
 income repay fund charitable activities.
 reports demand note principal value repay loan real estate.
.
 insurance subsidiaries subject laws regulations.
 dividends distributions loans cash advances without approval insurance.
no statutory restrictions payment dividends earnings bermuda subsidiaries minimum capital surplus satisfied by share additional paid-in capital.
.
 subsidiaries file financial statements statutory accounting practices.
 differs reinsurance contracts investments subsidiaries acquis expenses fixed assets deferred income taxes.
 statutory capital surplus.
 2010 2009 2008.
 dividends 2011 totals $ 850 million.
 combined statutory capital surplus net income bermuda.
 subsidiaries years 2010 2009 2008.
.
 statutory capital surplus $ 11798 $ 9164 $ 6205
 net income $ 2430 $ 2369 $ 2196 1047 904 818
 restructuring.
subsidiaries discount a&e liabilities increased capital surplus $ 206 million $ 215 million $ 211 million december 2008.
 subsidiaries prepare financial statements local laws.
 jurisdictions.
 licenses.
 reserves capital solvency tests.
 fines sanctions.


reconciliation unrecognized tax benefits.
 2010 2009 2008
 balance january 1 $ 29010 $ 34366 29132
 additions tax
 prior years
 reductions
 settlements
 lapses statutes limitations
 balance december 31 $ 23773 $ 29010 34366
 unrecognized tax benefits tax rate.
 2010 settled 2003 2004 audit.
 net tax benefit $ 25920 thousand.
 $ 12356 thousand reserve 2003 2004.
 subject.
 income tax examinations 2007.
 recognizes accrued interest unrecognized tax benefits penalties.
 31 2010 2009 2008 net expense $ 9938 $ 1563 thousand $ 2446 thousand penalties.
 2010 9938 $ 10591 thousand accrued interest 2003 2004.
company unrecognized tax benefits twelve months reporting.
.
 foreign tax credit carryforwards $ 55026 thousand 2014.
.
 $ 41693 thousand alternative tax credits.
 deferred tax assets no valuation allowance recorded.
 tax benefits $ 629 thousand $ 1714 thousand compensation deductions stock options 2010 2009 paid capital balance sheets.


republic services.
 financial statements 2014.
 fuel swap agreements cash flow hedges mitigate exposure diesel fuel prices.
 swaps effective hedges diesel fuel.
 table summarizes fuel hedges december 31 2016 gallons hedged average contract price per gallon.
 12000000.
 2018.
.
 average price diesel fuel exceeds contract price receive difference counterparty.
 less pay difference counterparty.
 fair values fuel hedges determined standard option valuation models commodity prices.
 aggregate fair values 2016 2015 liabilities $ 2. 7 million $ 37. 8 million recorded accrued liabilities balance sheets.
 changes fair values gain $ 0. 8 million 2016 loss $. 4 million. 5 million 2015 2014 recorded.
 total gain loss hedges $ 20.7 million $ 2. million $ 24. 2 million years 31 2016 2015 2014.
 classify cash inflows outflows fuel hedges statements.
 recycling commodity hedges revenue old corrugated containers newsprint.
 use swaps costless collars cash flow hedges manage exposure prices.
 2016 agreements forecasted occ sales.
 effective hedges recycling commodity sales.
 costless collar agreements sales.
 put option written call option cap strike price.
 calls same settlement dates settled cash terms expiration.
 options no net premium costless collars.
 no payments settlement price between floor cap price above cap pay counterparty excess price volumes.
 below deficit.
 reduce variability cash flows forecasted sales strike prices.


consolidated financial statements gains losses assets liabilities fair value table presents gains losses firm fair value assets.
 gains losses included 201cmarket making principal transactions. gains losses derivative hybrid financial instruments unsecured short long-term borrowings.
 gains losses recognized.
 hybrid instrument.
 amounts exclude contractual interest included 201cinterest income 201d expense.
 note 23 information interest income expense.
 gains losses financial assets liabilities fair value december millions 2012 2011 2010 receivables customers counterparties $ 190 97.
 gains losses 2012 2011 2010
 receivables customers $ 190 $ 97
 secured financings -190 -63 -227 ( 227 )
unsecured short-term -973 -1455
 unsecured long-term -1523 2336 -1169 ( 1169
 liabilities accrued -1486 ( 1486 -911 ( 911
 -81 (
 -4063 ( 3698 -2908
.
 gains losses reinsurance contracts transfers receivables.
.
 instruments $ ( 814 ) million $ 2. billion $. 49 billion 2012 2011 2010.
.
 $ ( million $ 1. 80 billion. 32 billion 2012 2010.
.
 insurance contracts.
.
 resale repurchase agreements securities borrowed loaned deposits.
 gains losses fair value option gains losses instruments. 2012 annual report


maturity october 2016.
 maturity revolving credit extended october 2018 increased $ 900 million $ 600 million.
 amended credit agreement term c-2 c-3 loan $ 900 million revolving credit facility.
 net deferred financing costs $ millions.
 december 31 2011 28
 financing costs deferred
 accelerated amortization refinancing
 31 2012
 costs deferred
 december 31 2013
 costs deferred
 amortization refinancing
 december 31 2014
 4. 625%.
 $ 400 million prepayment term c loan facility.
 september 2013 amendment reduce interest rates term c-2 loan facility 2016.
 $ 6 million 3. 250%. $ 4 million september 2014 amendment credit.
 $ 4 million 6. 625%625 % notes redemption $ 1 million c-2 loan facility conversion.
 december 31 2014 margin borrowings 2. 0%. above euro margin c-3 2. 25%. above libor dollars. euribor.
 december 31 2014 margin revolving credit 1. 5%. above libor.
 margin increase decrease corporate credit ratings celanese.
 borrowings amortization 1% 1 % initial principal amount per annum payable quarterly.
 pays quarterly commitment fees unused portion 0. 25%. per annum.
 guaranteed celanese subsidiaries secured lien assets exceptions real property foreign subsidiaries guarantee collateral agreement borrowing funds letters credit first lien senior secured leverage ratio last day fiscal quarter exceed threshold.
 below threshold amounts outstanding credit.


tower corporation unrecognized tax benefits change 12 months matters statute limitations.
 zero to $ 10. 8 million.
 unrecognized tax benefits years december 31.
 2015
 balance january 1 $ 28114 $ 31947 $ 32545
 additions tax positions
 additions prior years
 -307 -5371
 reduction statute limitations settlements -3168 -5349
 balance december 31 $ 107551 $ 28114 $ 31947
 2014 statute limitations unrecognized tax benefits lapsed positions settled $ 3. 2 million $. 5 million $. million liability uncertain tax benefits income tax.
 penalties interest $ 9. million $. $ 6. million years 2016 2015 2014.
expiration statute limitations company reduced liability penalties interest tax 2016 2015 2014 by $ 3. 4 million $ 3. 1 million $ 9. 9 million.
 accrued interest penalties balance were $ 24. 3 million $ 20. 2 million.
 filed consolidated income tax returns.
 federal.
 subject examination.
 jurisdictions tax years.
 years open examination after carryforwards.
 assesses additional assessments.
 adequate provisions taxes 2016.
.
 compensation maintains equity incentive plans stock-based awards directors officers employees.
 2007 equity incentive plan non-qualified incentive stock options restricted stock units awards.
 not less than fair value underlying common stock grant.
 awards over four years three years psus.
 expire 10 years from grant.
 december 31 2016 company awards 9. 5 million shares 2007 plan.
 maintains employee stock purchase plan employees purchase common stock-annual closing market value.
 periods june 1 november 30 december 1 through may 31.
 2016 2015 2014 stock-based compensation expenses thousands


sources uses cash millions cash flows years 29 30 31.
 292018 302017 312016
 cash operating activities $ 29432 $ 22110 21808
 investing -11239 -15762 -25817 25817
 financing activities 18607 -8475 -5739 ( 5739
 increase cash equivalents $ -414 -9748
 consolidated results analysis


graph compares return dividends common stock standard's 500 composite stock index dow jones united states travel leisure index five year prices 2012 2017.
 royal caribbean cruises. 142. 251. 313.
. 132. 150. 152. 170. 208.
 dow jones travel leisure. 145. 169. 179. 192. 238.
 value common stock index $ 100 december 31 2012 dividends reinvested.
 performance not indicator future results.


financing conducted through citi 2019s subsidiaries matched-book trading inventory.
 liability on citi 2019s balance sheet loaned sold.
 financing $ 189. 6 billion averaged $ 207 billion quarter.
 increased $ 35 billion from $ 154. 3 billion 2009.
 reverse repos securities borrowing increased $ 25 billion.
 majority collateralized by government securities.
 collateral from citi 2019s trading assets secured lending.
 minority collateralized by less liquid collateral trading assets secured lending.
 less borrowing calibrated by asset quality tenor counterparty exposure reliability.
 mitigants.
 liquidity resources collateralized liquidity transfers cushion.
 secured lending positions liquidity under stress.
citi has excess funding for less liquid collateral dislocation.
 size trading books.
 december 31  2010 commercial paper citigroup 2019s non- bank entities subsidiaries billions non.
 commercial paper.
 $ 15 billion commercial paper january 1 2010 sfas 166/167.
 short-term borrowings $ 54 billion $ 42. 4 billion from banks market federal home loan banks.
 decrease $ 11 billion 2009.
 average balance quarter $ 43 billion.
 short-term borrowings include $ 11. 7 billion broker borrowings averaged $ 13 billion.
 notes 12 19 citigroup long-term debt short-term borrowings.
 liquidity transfer non-bank regulatory restrictions.
 non-bank excess liquidity into citi bank subsidiaries.
.lend citigroup 23a federal reserve act.
 2010 $ 26. 6 billion funds collateralized.


1a.
 risk factors investment securities.
 materialize business financial condition results operations trading price shares decline.
 business fluctuations financial markets investment losses.
 disruptions public debt equity markets losses investment portfolio.
 financial markets improved since 2008 could deteriorate.
 disruption market sectors energy sector.
 declines losses results operations equity business insurer financial strength debt ratings.
 catastrophic events.
 exposed to unpredictable catastrophic events weather natural catastrophes acts terrorism.
 reduction operating results inhibit dividends meet interest principal obligations.
 past five years pre-tax catastrophe losses net reinsurance.
.
.
.
.
.
 losses from future catastrophic events could exceed projections.
 projections strategic underwriting tool.
use loss projections estimate catastrophe losses decide retrocessional coverage limit losses.
 projections approximations losses exceed projections adverse effect financial condition results operations.


vroman 39.
 managing director commodity products otc services information since 2010.
.
 managing chief corporate development officer 2008 2010.
.
 joined 2001 positions managing director corporate development information technology services.
.
 warren.
 managing director equity index services since february 2010.
.
 managing director equity products 2007.
.
 goldman sachs president manager trading business analysis.
.
 managed equity option execution clearing amro senior consultant arthur andersen co.
.
 track revenues geographic location.
 trading volume.
 international telecommunication hubs.
.
 percentage total trading volume globex platform non.
.
. 13% 13 % 9 % 11% 11 %
 telecommunication hubs.
.
annual 10-k quarterly 10-q current 8-k amendments.
 corporate governance principles director conflict interest policy ethics independence standards employee code conduct charters committees.
 copies available shareholders request shareholder relations member services.
 hausoul group. 20 south wacker drive chicago illinois.


alcoa subsidiaries file tax returns.
 federal foreign jurisdictions.
 no subject tax examinations 2006.
.
 tax years prior 2015 audited.
 tax authorities examining alcoa tax returns 2014.
 reconciliation unrecognized tax benefits excluding penalties.
 2015 2014 2013
 balance beginning year $ 35  $ 63  $ 66
 additions tax positions current year
 prior years
 reductions
 settlements tax authorities
 expiration statute of limitations
 foreign currency translation
 balance end of year $ 43 $ 35  $ 63
 balance state tax liabilities before offset federal tax benefits.
 unrecognized tax benefits annual effective tax rate 2015 2014 2013 approximately 12% 4% pretax income.
alcoa changes unrecognized tax benefits consolidated operations 2016.
 policy interest penalties.
 2015 2014 2013 recognized $ 8 $ 1 $ 2  interest penalties.
 statute settlements refunded overpayments recognized interest income $ 2 $ 5 $ 12 2013.
 31 amount accrued interest penalties $ 9.
.
 arrangement financial institutions sell receivables without recourse.
 bankruptcy entity.
 minimum funding $ 200 $ 500 receivables sold.
 sold $ 304 receivables $ 50 cash $ 254 deferred purchase price.
 received additional net cash funding $ 200 receivables sold $ 1258 $ no repayments 2015 670 2014.
 december deferred purchase price receivable $ 249 $ 356 included other receivables balance sheet.
deferred purchase price receivable reduced collections revolving program sale new receivables.
 net change reflected receivables line item.
 activity reflected operating cash flow receivables insignificant short-term interest rate risk.


table foreign currency translation adjustments 2012 2011 2010.
 2011 2010
 beginning balance $ 10580 $ 7632
 currency translation adjustments 5156 -4144
 income tax effect adjustments earnings 1314 -2208
 ending balance $ 9669 $ 10580 7632
 stock repurchase program dilution shares structured repurchase agreements third-parties.
 expiration.
 limited net dilution subject business conditions cash flow requirements board.
 2010 amendment repurchase program non-expiring time-constrained dollar-based.
 repurchase $ 1. 6 billion common stock end fiscal 2012.
 exhausted $ 1. 6 billion authority new repurchase program $ 2. billion 2015.
 similar previous $ 1. 6 billion repurchase.
2012 2011 2010 entered repurchase agreements financial institutions provided prepayments $ 405. million $ 695. $ 850 million.
 $ 405. million $ 100. million new $ 2. billion stock repurchase program $ 305. million previous $ 1. 6 billion authority.
 $ 850. million $ 250. million stock repurchase program $ 600. million amended $ 1. 6 billion dollar-based authority.
 agreements shares guaranteed discount price.
 discount higher return.
 no commissions fees.
 requirement return prepayment.
 deliver shares monthly.
 parameters total amount trading days average vwap stock discount.
 2012 repurchased 11. 5 million shares average $ 32. 29.
 2011 repurchased 21. 8 million shares average $ 31. 81.
2010 repurchased 31. 2 million shares average price per share $ 29. 19 repurchase agreements.
 prepayments treasury stock shares delivered november excluded earnings per share.
 2012 $ 33. 0 million prepayments.
 december 2 2011 no prepayments.
 adobe systems notes financial statements


systems incorporated financial statements.
 restructuring charges table activity december 3 1999 accrued balance november 27 cash charges payments adjustments.
 balance november
 restructurings
 $. 8 million accrued restructuring costs fiscal 1998 restructuring program.
. 3 million severance charges. 1 million lease termination costs. 4 million canceled contracts.
 majority paid first quarter 2000.
 cash payments twelve months december 3 1999 restructuring. 7 million. 6 million. 4 million severance lease termination costs canceled contracts.
 adjustments 1998 restructuring. 4 million lease termination. 3 other charges.
 balance lease termination costs restructuring programs 1994 1995.
 payments twelve months december 3 1999 $ 1. 5 million.
third fourth quarters 1999 recorded adjustments $ 1. 2 million.
 adjustment $ 0. 6 million lease.
 $. 6 million reduced expired lease termination costs merger.
 december 3 balances frame mergers.
 third fourth quarters recorded $ 8. 4 million.
 $ 2. million cancellation contract $ 2. accelerated depreciation restructuring.
 incurred nonrecurring compensation charge $ 2. 6 million terminated employee consulting fees $ 1. 6 million.


capital leases recorded lower net present value minimum lease payments fair value leased asset.
 amortization expense computed straight-line method shorter estimated lives lease.
.
 accounts payable current liabilities.
.
.
.
 accounts payable $ $ 612
 dividends interest 383 347
 wages vacation
 income taxes
 casualty costs 325
 equipment rents
 accounts payable currentliabilities $ 2713 $ 2470
.
 financial instruments strategy risk derivative instruments interest rates fuel prices.
 not party leveraged derivatives speculative.
 instruments hedge accounting effectiveness.
 document relationships instruments risk- management objectives strategies effectiveness.
 changes fair market value charged to earnings.
use swaps collars futures forward contracts risk adverse interest rates fuel prices limit benefits favorable interest rate fuel price.
 credit risk risk selecting value hedged item.
 manage credit risk requiring high credit standards counterparties settlements.
 december 31 2009 required collateral.
 determination fair value current values future cash flows.
 interest rate hedges manage exposure adjusting fixed floating rate debt instruments.
 manage mix fixed floating rate debt targeted amounts.
 employ derivatives swaps mix.
 flexibility interest costs rate mix evaluating fixed-rate debt securities.
 swaps convert debt variable rates hedge risk.
 account swaps value hedges short-cut method ineffectiveness consolidated financial statements.


value options exercised.
 difference market paid 2011 2010 2009 $ 96. 5 million $ 29. 6 million $ 4. 7 million.
 proceeds from $ 217. 4 million $ 240. 4 million $ 15. 1 million.
 proceeds exercises cash flows $ 217. 2 million $ 216. 1 million $ 12. 4 million net shares surrendered tax obligations.
 withholding amount based minimum statutory withholding requirement.
 restricted stock unit award activity october 29 2011 changes value per share.
 october 30 2010 $.
 units granted.
 restrictions lapsed.
 units forfeited.
 october 29 2011.
 $ 88. 6 million unrecognized compensation cost unvested share-based awards stock options restricted stock units.
cost expected recognized over 1. 3 years.
 total value shares vested 2011 2010 2009 $ 49. 6 million $ 67. 7 million $ 74. 4 million.
 since august 2004.
 board authorized repurchase $ 5 billion common stock.
 repurchase outstanding shares open market privately negotiated transactions.
 repurchase program all shares.
 october 29 2011 repurchased 125. 0 million shares $ 4278. 5 million.
 additional $ 721. 5 million repurchase.
 repurchased shares unissued.
 future repurchases dependent factors cash financial performance liquidity.
 repurchases shares employee tax withholding obligations price options equity compensation plans.
.


expense company.
 31
 foreign currency losses net $ -1115 $
 income
 $ -1046
 tax tax expense $ 77. 2 million income before taxes $ 322. 5 million 31 2013 effective tax rate 23. 9%.
 2012 income tax expense $ 90. 1 million income before taxes $ 293. 5 million effective tax rate 30. 7%.
 2013 joint committee taxation exception tax returns 2009 2010.
 $ 11. million tax benefit recognized 2013 financial results uncertainty refund claims.
. research development credit expired 2011 tax year.
 2013.
 congress passed reinstated credit retroactive 2012.
 income tax 2013 $ 2. 3 million reinstated credit.
 decrease effective tax rate due uncertain tax position.
research development credit cash repatriation.
 tax rates 2013 2012 impacted lower tax rates foreign jurisdictions domestic manufacturing deduction tax benefits merger japan subsidiaries.
 2013 $ 245. 3 million $ 203. 5 million 2012.
 diluted earnings per share $ 2. 58 $ 2. 14.
 weighted average shares 95. 1 million. million.


2013 2012 2011 recognized $ 6. million $. million $ 4. 7 million compensation expense.
 $ 20. 3 million unrecognized compensation cost unvested stock options three years.
 1999 deferred compensation plan.
 shares granted vesting annually service period performance criteria.
 rates 15% to 35% performance criteria.
 summary restricted stock 2013 2012 2011 charges.
 2012 2011
 2804901 2912456 2728290
 granted
 cancelled
 end year 2994197 2804901
 vested 21074
 compensation expense $ 6713155 $ 6930381 $ 17365401
 value restricted stock granted $ 17386949 $ 7023942 21768084
value restricted stock $ 17386949 7023942 21768084 2013 2012 2011 $ 1. 6 million $ 22. 4 million $ 4. 3 million.
 2013 $ 17. 8 million unrecognized compensation cost 2. 7 years.
 2011 $ 4. 5 million 4. 1 million $ 3. 4 million capitalized long-term compensation plans stock options.
 granted units fair value $ 27. 1 million $ 8. 5 million 2013 2011.
 value calculated asc 718.
 common stock price.
 uncertainty restrictions.
 december 31 2013 $ 5. million unrecognized compensation expense awards recognized. 5 years.
 $ 27. 3 million $ 12. 6 million $ 8. 5 million.
2010 notional unit long-term compensation plan december 2009 committee approved sl green realty corp.
 2010 long-term compensation program.
 incentive compensation award recipients earn $ 15. 0 million to $ 75. 0 million ltip units operating partnership stock price appreciation three years december 1 2009 maximum performance $ 25. 0 million awards earned second year additional $ 25. 0 million third year.
 maximum performance stock price appreciation equal exceed 50%.
 maximum performance second third years 366815 385583 327416 earned plan december 2010 2011 2012.
 50% units vested december 17 2012 25% december 11 2013 remainder vest january 1 , 2015


systems financial statements accounting uncertainty income taxes 2013 2012 changes unrecognized tax benefits summarized.
 2012
 balance $ 160468 $ 163607
 increases tax benefits 2013 20244
 16777 23771
 settlements taxing authorities -55851 -1754
 statute limitations -25387
 foreign exchange gains losses -1474 1474 -807
 balance $ 136098 $ 160468
 november 29 2013 combined accrued interest penalties approximately $ 11. 4 million.
 income tax returns.
 federal.
 jurisdictions.
 continual examination tax authorities.
 major tax jurisdictions. ireland california.
. earliest fiscal years examination 2005 2006 2010.
 outcomes adjustments.
 no assurance determination operating results financial position.
july 2013.
 income tax examination 2008 2009 completed.
 accrued tax interest $ 48. 4 million long-term.
 settled tax obligation cash tax assets $ 41. 2 million $ 7. 2 million tax benefit third quarter 2013.
 timing resolution tax uncertain tax payments audit settlement.
 fluctuations balance sheet.
 months audits conclude statutes limitations expire.
 decreases unrecognized tax benefits $ 0 to $ 5 million.
.
 reductions workforce consolidation facilities digital media marketing strategies.
 2013.
 costs closing redundant facilities $ 12. 2 million exited november 29 2013.
 restructuring plans.
 cash outlays settle obligations impact financial statements not significant.
 restructuring plans 2009 restructuring plan fourth quarter costs 2010 operating plan.


item 5.
 market common equity issuer purchases table presents quarterly high low share sale prices class common stock new york stock exchange 2005 2004.
 march 31 $ 19. 17
 june 30.
 september 30.
 december 31.
 march 31 $ 13. 9.
 june 30.
 30.
 december 31.
 march 9 2006 closing price common stock $ 29. 83 per share.
 march 9 2006 419677495 shares 687 registered holders.
 february 2004 shares b converted-for-one conversion event.
 shares c common stock converted.
 august 2005 amended charter eliminate class b c stock.
 equity compensation plans item 12 annual.
 never paid dividend common stock.
anticipate retain future earnings fund development growth business.
 indentures 7. 50%. senior notes due 2012. 125%. notes. prohibit paying dividends stockholders unless satisfy financial covenants.
 credit facilities indentures debt securities restrict subsidiaries direct distribution dividend payment limited liability company.
 subsidiaries pay cash dividends distributions no default.
. 25%. senior subordinated notes due 2011. prohibit subsidiaries paying dividends payments distributions unless covenants satisfied.
 indentures. 50%. 125%. contain restrictive covenants prohibit subsidiaries paying dividends payments distributions unless covenants satisfied.
 more information restrictions see note 7 consolidated financial statements annual report section 201cmanagement


consolidated financial statements 101% principal amount plus accrued unpaid interest.
 cash proceeds sale $ 983 million net discount issuance costs.
 $ 17 million amortized interest expense.
 august 2010 ppg three-year credit agreement.
 $ 1. 2 billion unsecured revolving credit facility.
 terminated 20ac650 million $ 1 billion revolving credit facilities 2011.
 no outstanding amounts.
 increase credit agreement $ 300 million subject commitments.
 amounts due payable august 5 2013.
 loans bear interest rates margin formulas.
 commitment fee unused. 125%. to. 625%. per annum.
 interest rate fee ratings financial services.
.
 no amounts outstanding december 31 2011 available borrowing rate one month.
 dollar borrowing 1. 05 percent.
credit agreement contains restrictive covenants limitations create liens sale leaseback transactions consolidations mergers transfers of assets.
 requires ratio indebtedness to capitalization 60 percent or less.
 contains events default repayment failure payments covenants change control bankruptcy insolvency.
.
 operations have uncommitted lines of credit $ 679 million $ 36 million used 31  2011.
 subject to cancellation not subject commitment fees.
 short-term debt outstanding as of 2011 2010 3. 72%.
. 39%. with restrictive covenants credit agreements loan agreements indentures.
 credit agreements include financial ratio covenant.
 total indebtedness not exceed 60% of capitalization excluding pensions postretirement benefit adjustments.
december 31 2011 indebtedness 43 percent capitalization excluding pensions postretirement benefit adjustments.
 debt agreements contain cross-default provisions.
 default payment $ 10 million.
 debt obligations secured guaranteed affiliates.
 interest payments 2011 2010 2009 totaled $ 212 million $ 189 million $ 201 million.
 october 2009 agreement counterparty repurchase. 2 million shares stock. purchased open market $ 56. 66 per share.
 counterparty held shares until 2010 paid $ 65 million.
 december 2008 repurchase. 5 million.
 3. 72%. 72 % ). 2011. 39%. 39 % 31 2010
 101% principal amount plus accrued unpaid interest.
 proceeds sale $ 983 million discount costs.
 $ 17 million amortized to interest expense.
august 2010 ppg three-year credit agreement banks agreement.
 $ 1. 2 billion unsecured revolving credit facility.
 terminated 20ac650 million $ 1 billion credit facilities 2011.
 no outstanding amounts due termination.
 increase credit agreement $ 300 million subject commitments.
 amounts due payable august 5 2013.
 loans bear interest rates base rates margin.
 commitment fee unused commitment. 125%. to. 625%. per annum.
 interest rate fee ratings standard poor financial services investor service.
.
 no amounts outstanding december 31 2011 available borrowing rate one month.
 borrowing 1. 05 percent.
 credit agreement contains restrictive covenants limitations create liens sale leaseback transactions consolidations mergers transfers.
credit agreement requires company maintain ratio indebtedness to capitalization 60 percent or less.
 contains events default repayment failure timely payments covenants change control bankruptcy insolvency.
.
 operations uncommitted lines credit $ 679 million $ 36 million used december 31  2011.
 subject to cancellation not subject commitment fees.
 short-term debt outstanding as december 31 2011 2010 millions 2011 2010 average 3. 72%.
. 39%. 2010 restrictive covenants credit agreements loan agreements indentures.
 credit agreements include financial ratio covenant.
 total indebtedness not exceed 60% capitalization excluding.
 december 31 2011 indebtedness 43 percent capitalization.
 debt agreements contain cross-default provisions.
 default debt service payment $ 10 million or more default.
debt obligations affiliates.
 interest payments 2011 2010 2009 $ 212 million 189 million 201 million.
 october 2009 counterparty repurchase 1. 2 million shares. $ 56. 66 per share.
 counterparty held shares until 2010 paid $ 65 million.
 december 2008 repurchase 1. 5 million


stock performance graph cumulative shareholder return series a b c compared companies 500 stock index peer group cbs news scripps network. time warner. viacom.
 walt disney.
 assumes $ 100 invested september 18 2008 trading s&p 500 index peer group reinvestment dividends september 18 2008 december 31 2009 2010 2011 2012.
 31.
 $ 102. 53 $ 222. $ 301. 296. 67 459.
 78. 53 162. 82 225. 217. 327.
 $ 83. 69 165. 75 229. 31 235. $ 365.
 $ 74. 86 92. 42 104. 24 104. 118.
 68. 79 100. 70 121. 138. 19 $ 190. 58
equity compensation plan information securities authorized proxy statement 2013 annual meeting 201csecurities 201d incorporated.


jpmorgan chase co. annual report table reflects firm capital line business.
 equity capital.
 billions january december 31 2017 31 2016
 consumer community banking 51.
 corporate investment bank 70. 64.
 commercial banking 20. 16.
 asset wealth management 9.
 79. 88.
 common stockholders 2019 equity $ 229. 228.
 federal reserve bank companies submit capital plan annual.
 dodd-frank stress test processes sufficient capital economic stress capital assessment planning processes risks losses.
 evaluates capital adequacy capital distributions dividend payments stock repurchases.
 june 28 2017 federal reserve informed firm object 2017 capital plan.
 2017 results capital actions pages 89-90.
firm 2019s ccar process methodologies icaap process.
 semiannually completes icaap impact events on earnings balance sheet positions reserves capital.
 integrates stress testing capital planning.
 assesses impact economic business scenarios earnings capital.
 defined.
 macroeconomic factors global market shocks operational risk events.
 vulnerabilities risks.
 events.
 management considers additional stresses outside.
 results reviewed by management audit committee.
 stock dividends $ 1. 7 billion year december 31 2017.
 issued $ 1. billion fixed- to-floating rate non preferred stock initial dividend rate 4. 625%.
 december 1 redeemed all $. billion. 50%. non-cumulative preferred stock.
.
 december 18 liquidated.6 billion trust $ 56 million common securities cancelled junior debentures distributed holders.
 redeemed $ 1. 6 billion 2016.
 reflects jpmorgan chase earnings outlook payout capital objectives investment opportunities.
 2017 increased quarterly dividend $ 0. 56 per share october 31 2017.
 approval quarterly.
 note 20 25.


2014 entered $ 3. million promissory note company.
 interest rate 8. 0%. payable quarterly.
 unpaid interest due payable august 26 2017.
.
 spaces north america asia australia non 2024.
 operating expenses taxes repairs insurance renewal escalation clauses.
 rent expense straight-line.
 31 payments december.
 2016
 2017
 2018
 2019
 2020
 $
 rent expense leases $ 6. 7 million $ 3. 3 million $. 6 million december 31 2015 2014 2013.
 2012 lease building santa clara headquarters.
 term 120 months commenced august 2013.
lease agreement involvement construction tenant improvement insurance reimbursable owner building during construction.
 maintain involvement post risks maintenance $ 4. 0 million letter of credit sublease fees higher.
 account for building improvements lease financing obligation.
 december 31 2015 2014 assets $ 53. 4 million total costs building improvements lessor costs financing obligation $ 42. 5 million $ 43. 6 million.
 december 31 2015 $ 1. 3 million $ 41. 2 million short-term long-term financing obligations.
 land lease expense $ 1. 3 million $ 1. 2 million 2015 2014.
 no land lease expense 2013.


entergy corporation subsidiaries massachusetts income taxes third quarter 2008 tax benefit $ 18. 8 million.
 offset taxes entergy power generation redemption payments investment nuclear power marketing income tax expense $ 16. 1 million differences utility plant state income taxes companies entergy arkansas write-offs.
 effective income tax rate 2007 30. 7%.
 reduction federal 35% 35 % tax basis indian point 2 non-qualified decommissioning trust fund tax audit issues 2002-2003 cycle adjustment state income taxes non-utility nuclear new york state income taxes differences equity funds construction amortization investment tax credits.
 offset differences utility plant state income taxes.
 note 3 reconciliation federal rate 35. tax rates.
 entergy capital structure spending plans cash flow activity.
entergy balanced equity debt.
 decrease debt to capital percentage 2009 equity retained earnings repurchases common stock borrowings.
 increase debt capital additional borrowings.
 debt capital 53. 5%. 5 % 55. 6%. 54 7%. 7 %
 subtracting cash debt 3. 8%. 8 %. 1%. 1 %. 9%. 9 %
 57. 3%. 3 % 59. 7%. 7 %. 6%. 6


cash flow operating activities reduced property additions.
 non-gaap debt repayment dividend distributions acquisition share repurchases.
 flow metric reconciled gaap measure.
 2011
 net cash operating activities $ 1758 $ 1595 $ 1008
 additions properties -533 533 -594 -474
 $ 1225 $ 1001 $ 534
-over-year change 22. 4%. 87. 5%.
. driven improved performance working capital pringles acquisition capital expenditures.
 net cash 2012 $ 3245 million increase $ 2658 million 2011 $ 2668 acquisition pringles supply chain infrastructure.
 information technology infrastructure.
 $ 587 million 2011 increased $ 122 million 2010.
 additions properties sales decreased to 3. 8%. 2012 from 4. 5%.2011 increase. 8% issued $ 250 million two-year floating-rate.
 notes $ 400 million ten-year. 75%
 dollar notes.
 proceeds corporate purposes repayment $ 750 million 4. 25%.
 notes 2013.
 interest three-month libor 23 points.
 covenants liens sale lease-back transactions change control.
 net cash $ 1317 2012 $ 957 $ 2011 2010.
 increase debt.
 debt $ 7. 9 billion 2012 $ 6. billion 2011.
 interest rate swaps $ 500 million five-year. fixed rate.
 notes 2016 $ 500 million ten-year. 15% % fixed rate.
 2019 750 seven-year. 45%. % fixed rate.
 2016.
 floating rate obligations.
 issued $ 350 million three-year. 125%.
 notes $ 400 million five-year.75%.
 700 million ten-year.
 proceeds debt discount $ 1. 442 billion.
 purposes acquisition pringles.
 issued.
 $ 300 million two-year. fixed rate dollar notes repayment intercompany debt.
 cash pringles.
 repaid $ 750 million five-year. 125%. 125 %.
.
 interest rate swaps $ 200 million $ 750 million seven-year. 45% 45 % fixed rate.
.
 floating rate obligation.
 repaid $ 945 million ten-year. 60%
.
 issued $ 400 million seven-year. 25% % fixed rate.
 proceeds $ 397 million corporate purposes repayment.
 interest rate swaps $ 400 million floating obligation.
 issued $ 500 million five-year. % fixed rate.
.
 proceeds $ 498 million repayment.
2012 interest rate swaps converted notes floating obligation.
 approved share repurchase program common stock $ 2. 5 billion.
 replaced $. billion 650 million.
 repurchased 1 million 15 million 21 million shares $ 63 million $ 793 million $ 1. 1 billion.
 december 2012 $ 300 million.
 paid quarterly dividends $ 1. 74 share 2012. 2011. 2010.
 increased. 2012. 2011.
 march 2011 unsecured four- year credit agreement $ 2. billion.
 long-term debt agreements liens sale lease-back transactions.
 control provisions.
 acceleration maturity clauses credit ratings.
 limit access.
 short debt increase cost refinancing long debt.
 four-year credit agreement expires march 2015.
liquidity unused unsecured plan.
 capital credit markets commercial paper markets instability disruption.
 uncertainty.
 access. european canadian commercial paper markets.
 commercial paper debt credit ratings not affected changes credit.
 monitor financial strength third-party financial institutions.
 compliance covenants december 29 2012.
 meet interest principal repayment obligations maintain debt covenants operational needs bolt-on acquisitions.
 strong cash flow short- term borrowings maintenance credit facilities.


.
 commitments company involved in lawsuits arbitrations dispute resolution procedures outcomes determine rights obligations insurance reinsurance agreements.
 rights collect funds.
 attempts collect funds rights.
 disputes resolved through informal means negotiated resolution arbitration litigation.
 believes positions legally commercially reasonable.
 considers reserves for unpaid loss adjustment expenses.
 not party other litigation arbitration.
 separate annuity agreements prudential insurance america unaffiliated life insurance company purchased contracts.
 contingently liable if unable make payments.
 estimated cost to replace annuities.
 december 31 2017 31 2016
 prudential insurance company $ 144618 $ 146507
 unaffiliated life insurance company 34444 33860
.
compensation plans 2010 stock incentive plan 2009 non-employee director stock option plan 2003 non-employee director equity compensation plan.
 2010 4000000 shares non options incentive options appreciation rights restricted awards performance awards officers key employees.
 31 2553473 remaining shares 2010.
 replaced no further awards.
 non-qualified share options restricted share awards performance awards.
 2009 37439 shares options awards non-employee directors.
 34957 remaining shares 2009.
 replaced 1995.
 2003 plan 500000 shares authorized share options awards non-employee directors.
 346714 remaining shares 2003.


consolidated financial statements jpmorgan chase & co.
.
 2007 annual report expected loss modeling 2006 firm restructured four multi-seller conduits.
 2019s expected loss model.
 determining primary beneficiary uses monte carlo model expected losses considers rights obligations variable interest holders.
 variability design entity.
 traditional-seller conduits pass credit risk not liquidity risk interest holders assets held longer term.
 firm required run monte carlo-based expected loss model reconsideration event.
 affect primary beneficiary new deals changes usage modifications asset purchase agreements sales interests beneficiary.
 firm run monte carlo-based expected loss model.
 runs loss model each quarter includes growth assumption each conduit.
 quarterly reassesses assumptions inputs loss model.
second half 2007 assumptions model adjusted current market conditions.
 risk ratings loss default assumptions residential subprime mortgage exposures modified.
 nonmortgage classes determined assumptions little adjustment.
 fourth quarter 2007 terms elns renegotiated commit ment funded amounts.
 expected loss notes december 31 2007 2006 $ 130 million $ 54 million.
 concluded model assumptions reflective market probability recurrence market events.
 multi-seller conduits efficient commercial paper market.
 disperse risk preponderance economic risk not held jpmorgan chase.
 assets client-related 99% 98% total holdings december 31 2007 2006.
 firm consolidate primary beneficiary.
 factors.
 impact assets liabilities net income 1 capital ratio leverage ratio multi-seller conduits.
 december 31 2007.
billions ratios
 assets $ 1562. $ 1623.
 liabilities 1438. 1500.
 net income 15. 4 15. 2
 tier 1 capital ratio 8. 4% 8. 4 %.
 1 leverage ratio 6. 5. 8
 firm fund purchases.
 creates structures transactions derivative structures.
 liquidity support.
 risks derivative instruments.
 principal municipal bond vehicles credit-linked note vehicles collateralized debt obligation vehicles.
 secondary market trusts tax-exempt investments rates.
 pur chases fixed-rate municipal bonds funds purchase putable floating- rate certificates inverse floating-rate residual interests.
 maturity equal life vehicle municipal bonds longer.
holders floating-rate certificates remarketing agent.
 liquidity facility obligates provider fund purchase tendered certificates.
 termination sale municipal bonds liquidity excess collateralization or residual interest holders reimbursement.
 third-party holders experience losses if exceeds market value municipal bonds.
 certain vehicles require smaller initial invest ment excess collateralization.
 reimbursement


31 98 company receivables sales agreement debt notes 6 12 consolidated financial statements 8.
 liquidity cash payments long-term debt rental payments leases purchase obligations december 31 2006 summarized table.
 payments less 1-3 years 3-5 5
 long-term debt $ 2301. 38. 278. 972. 1011.
 capital lease obligations 7.
 interest payments long-term debt 826. 259. 204 223
 operating leases 185. 45
 purchase obligations 7450. 2682. 3169. 1524.
 payments contractual obligations $ 10772. 2907. 3768. 2741. 1355.
 10772. amounts local currencies translated year-end exchange rates.
 variable rate facilities based interest rates.
company 2019s purchase obligations include aluminum steel plastic resin.
 natural gas electricity aerospace items.
.
 early payments vary.
 pension plans $ 69. 1 million 2007.
.
 payments $ 62. 6 million $ 65. 68. 73. $ 75. 1 million 2007 2011 $ 436. 7 million 2012 2016.
 payments unfunded german plans $ 24. 6 million 25. 26. million 2007 2011 $ 136. 6 million.
 reduced share repurchase program 2006 $ 45. 7 million 358. 2005 2004.
 repurchase 1200000 shares.
 $ 51. 9 million.
 repurchase $ 175 million reduce debt $ 125 million.
 dividends 40 cents 35 2004.
 $ 41 million 2006 $ 42. 5 million 2005 $ 38.million.


eog resources.
 undeveloped reserves.
 changes reserves 2018 2017 2016.
 balance january 1 1162635 1053027 1045640
 extensions discoveries 490725 237378 138101
 revisions -8244
 acquisition 2014
 sale reserves -8253 -45917
 conversion reserves -265718 -152644 -149210
 balance december 31 1379709 1162635 1053027
 twelve-month puds increased 217 1380 mmboe.
 added 31 mmboe drilling.
 added 460 mmboe.
 permian basin anadarko basin eagle ford rocky mountain 80% additions crude oil condensate.
 drilled transferred 266 mmboe puds reserves capital cost $ 2745 million.
 scheduled completion within five years.
 twelve-month period 2017 puds increased 110 to 1163.
 eog added 38 drilling expenditures remained completion.
 added 199.
 additions permian basin eagle ford rocky mountain area 74% additions crude oil condensate.
 drilled transferred 153 reserves capital cost $ 1440 million.
 revisions positive 33 due updated curves improved performance crude oil natural gas prices lower costs.
 sold exchanged 8 permian basin.
 twelve-month period 2016 puds increased 7 to 1053.
 added 21 expenditures completion.
 117.
 additions permian basin rocky mountain area 82% additions crude oil condensate.
 drilled transferred 149 reserves capital cost $ 1230 million.
puds 64 mmboe improved well performance delaware basin lower production costs offset crude oil natural gas prices.
 eog sold 46 mmboe haynesville.


fidelity national information services.
 subsidiaries consolidated financial statements summarizes aggregate maturities debt capital leases excluding unamortized non-cash bond premiums discounts $ 30 million december 31 2017 millions.
 2018 1045
 2019 44
 2020 1157
 2021 1546
 2022 705
 4349
 principal payments 8846
 debt issuance costs amortization -53
 long-term debt $ 8793
 no mandatory principal payments revolving loan balance due payable maturity date august 10  2021.
 redeem 2018 2020 2021 2022 2023 2024 2025 2026 2046 redemption price 100% principal amount make-whole amount accrued unpaid interest redemption no make-whole amount paid redemptions 2020 2021 six.
issuance costs $ 53 million amortization capitalized december 31 2017.
 monitor financial stability counterparties.
 lender commitments revolving loan diversified financial institutions.
 failure lender impact operations.
 2019s long-term debt $ 156 million higher carrying value december 31 2017.
 based quoted prices senior notes trades debt level.
 subjective involves uncertainties market.
 values not indicative.


inc.
 financial statements 2014 future minimum lease payments leases.
 fiscal years
 24 2005 4848
 30 2006 4672
 29 2007 3680
 27 2008 3237
 26 2009 3158
 40764
 not reduced sublease rentals $ 165 $ 60359
 subleases bedford facility rental income $ 277 $ 410 $ years 2004 2003 2002 offset rent expense.
 expense sublease $ 4660 $ 4963 $ 2462 2004 2003 2002.
.
 reports information.
.
 evaluation chief operating decision maker.
 decision-maker.
 executive officer.
 four principal operating segments manufacture sale mammography osteoporosis assessment digital detectors.
 software application 2003 assets segments inventories intangible assets property equipment.
 other assets corporate assets.
.
sales transfers.


altria release tuesday february 27 2018 10:00pm percentages operating companies income loss segment.
 2017 2016 2015
 smokeable products 85. 8%. 86. 2%. 4%.
 smokeless products 13. 2
 wine.
 other. 5. -1. 1. -2
 100. 0%.
 comparability income note 15.
 business operating results segment 7.
 management financial condition results operations annual report form 10-k.
 tobacco altria group. operating companies pm usa usstc subsidiaries ust middleton nu mark nat sherman.
 distribution.
. smokeable tobacco products cigarettes pm usa nat sherman machine- made large cigars pipe tobacco middleton smokeless tobacco usstc innovative tobacco products e-vapor nu mark.
 cigarettes pm usa largest company.
 marlboro-selling 40 years.
 nat sherman sells super premium cigarettes.
 shipment volume 116. 6 billion units 2017 decrease 5. 1%. middleton manufacture machine-made large cigars pipe tobacco.
 contracts third-party importer sells.
 black mild principal brand.
 sources cigars third-party sells.
 shipment volume 1. 5 billion units 2017 increase 9. 9%. 2016.
 tobacco usstc leading producer marketer smokeless tobacco.
.
 manufactured sold.
 shipment volume 841. 3 million units 2017 decrease 1. 4%. 2016.
 tobacco nu mark e-vapor developed products.
 production overseas contract manufacturing.
 2013 introduced e-vapor products.
2014 nu mark acquired e-vapor business green smoke.
 selling-vapor 2009.
 2017 altria group. purchased intellectual property tobacco products.
 december 2013. agreements philip morris international.
. exclusive license sell e-vapor products outside states. sell two heated tobacco platforms.
 july 2015.
 strategic framework joint research development technology-sharing agreement.
. e-vapor products states.
 technology licenses technical information sharing cooperation scientific assessment regulatory engagement approval e-vapor.
 fourth quarter 2016 pmi submitted risk tobacco product application heated tobacco product united states food drug administration pre-market tobacco application first quarter 2017.
 authorization group. exclusive license sell tobacco product united.
distribution competition raw materials altria group. subsidiaries sell wholesalers armed services.
 market tobacco competitive brand recognition loyalty quality taste price innovation marketing packaging distribution.
 promotional activities incentive price product coupons discounts.


facility agreement american water awcc guarantee payment obligations.
 company acquired additional revolving line credit.
 commitment $ 16 million $ 2 million outstanding december 31 2015.
 table summarizes credit facility commitments sub-limits funds outstanding commercial paper borrowings 2015 2014 borrowing.
.
.
.
.
 1266 $ 1182 $ 150 626.
.
.
.
.
 weighted-average interest rate awcc short-term borrowings 2015 2014 0. 49%. 49 %. 31%. 31 %.
 line annum 2. 75%. 75 % month libor.
 table percentage capitalization december 31.
 common stockholders' equity 43. 5%. 5 %. 2%. 2 %. 6%. 6 %
 long-term debt stock redemption 50. 6%. 6 %. 1%. 1 %.3% 49. 3 %
 short-term long-term 5. 9%. 9 %. 7%. 7 % ) 6. 1%. 1 % )
 100% 100
 changes capital structure commercial paper balances.
 debt covenants financial non-financial covenants.
 default pay dividends issue debt access revolving credit.
 unaudited financial information subsidiary level non-compliance reporting requirements $ 8 million outstanding debt.
.
 long-term debt indentures covenants limit issuing debt secured assets.
 failure accelerate repayment obligations.
 ratio consolidated debt capitalization not. 70 to 1.
 december 31 2015 ratio. 56 to 1. compliance.


year 30 2014 cash $ 1638. plant equipment.
 2013 $ 1697. acquisitions.
 year 30 2012 $ 2435. plant equipment acquisitions investments unconsolidated affiliates.
 capital expenditures section.
.
 2013
 additions plant equipment $ 1684. $ 1524. $ 1521.
 acquisitions cash 2014 224. 863.
 investments unconsolidated affiliates -2. 175.
 expenditures $ 1682. $ 1747. $ 2559.
 lease expenditures 202. 234. 212.
 purchase noncontrolling interests. 14.
 expenditures non-gaap basis $ 1885. $ 1996. $ 2778.
 non-gaap measure expenditures facilities capital leases purchases noncontrolling interests.
 contracts leases qualifies capital lease.
payment for subsidiary shares equity transaction reflected financing in cash flows.
 non-gaap measure.
 capital expenditures 2014 totaled $ 1682. $ 1747. 2013.
 decrease $ 65. due to acquisitions 2013.
 additions plant equipment merchant gases tonnage gases businesses.
 distribution equipment facility improvements.
 2014 2013 oxygen coal gasification hydrogen renewable energy.
 2013 three acquisitions $ 224.
 acquired air separation unit gases liquefier guiyang.
 acquired epco.
 producer liquid carbon dioxide.
 controlling stake in indura.
 for $ 690.
. 50% interest $ 147.
 purchased 25% equity interest in abdullah hashim industrial gases equipment.
.
 for $ 155.
 note 5 7.
expenditures non-gaap 2014 $ 1885. $ 1996. 2013.
 lease expenditures $ 202. decreased $ 32. lower spending.
 expenditures new plant equipment $ 1650 $ 1800 non-gaap $ 1700 $ 1900.
 leases $ 50 $ 100.
 majority new plants.
 funded cash operations.
 evaluate acquisition opportunities equity affiliates.
 2014 cash $ 504. dividends $ 627. offset stock option exercises $ 141.
 borrowings cash $ 1. $ 148. commercial short-term debt


american tower corporation subsidiaries financial statements 2014 unused tower space broadcast towers rights.
 tv azteca retains title responsible operation maintenance.
 entitled 100% revenues leases responsible operating expenses.
 economic rights agreement seventy years tv azteca purchase rights last fifty years.
 rights repay loan.
 obligation pay tv azteca $ 1. 5 million annually reduced.
 annual payment $ 1. 5 million capital lease liability $ 18. 6 million.
 lease asset discount $ 30. 2 million cost economic rights amortized seventy-year.
 assesses recoverability note receivable.
 no adjustment value.
 former executive officer director tv 1999 2006.
 long-term notes receivable $ 4. 3 million $ 11. 0 million.
.
company enters interest rate protection agreements variable rate debt cash flows forecasted interest payments.
 exposed credit risk counterparty terms.
 exposure limited current value.
 believes contracts 2007 2006 credit worthy institutions.
 carrying amounts financial instruments estimated fair values assets notes receivable long assets balance sheet december 31 2007 amount interest rate term carrying amount fair value.
 interest rate swap agreement $ 150000 3. 95%. expiring 2009 $ -369
 100000 4. 08%. expiring 2010 -571
 $ 250000 $ -940


entergy texas.
 fuel power expenses increased power purchases agreements average market prices offset deferred fuel expense recovery.
 regulatory charges $ 6. million recovery bond expenses securitization bonds.
 recovery effective july 2007.
 note 5 financial statements.
 2007 2006 net revenue fuel-related expenses gas power expenses regulatory charges.
 analysis change net revenue 2007 2006.
.
 2006 net revenue $ 403.
 power capacity.
 securitization transition charge.
.
 transmission revenue.
 base revenue.
.
 2007 net revenue $ 442.
 purchased power capacity variance due costs.
 securitization transition charge variance due issuance bonds.
 june 2007 egsrf-owned texas issued securitization bonds right recover charge.
note 5 financial statements securitization bond.
 volume/weather variance increased electricity usage retail weather 2007.
 unbilled sales.
 electricity increased 139 gwh sectors.
 accounting estimates note 1 unbilled revenues.
 transmission revenue variance 2007 customers 2006.
 base revenue transition competition march 2006.
 note 2 rate increase.
 revenues expenses $ 179 million fuel rates refunds.
 offset $ 39 million increase net revenue $ 44 million wholesale revenues 30 million equalization.


devon energy corporation subsidiaries financial statements 2014 reserves table changes reserves 2011.
.
 reserves december 31 2010 411 831
 extensions discoveries
 revisions due prices -2
 other price -56
 conversion reserves -68 -62 -130
 reserves december 31 2011 403 379 782
 devon 782 reserves.
 6% 6 % decrease 2010 26% 26 % reserves.
 drilling activities increased reserves 148 conversion 130 16% 16 % 2010 reserves developed reserves.
 revisions other price decreased 51 evaluation.
 onshore dry-gas areas five.
 largest revisions-gas areas carthage east texas barnett shale north texas.
 reserves jackfish operations.
 reserves 367 396.
schedules jackfish reserves controlled by processing plants 35000 barrel capacity.
 steam capacity-oil ratios air quality.
 reserves undeveloped five years.
 development schedule extends 2025.
 2011 2014reserves decreased 21 mmboe lower gas higher oil prices.
 royalty burden reserves.
 2010 2014reserves increased 72 mmboe prices higher oil prices.
.
 43 barnett shale 22 rocky mountain area.
 2009 2014reserves increased 177 mmboe higher oil prices lower gas prices.
.
 2008 331 reserves not proved.
 higher prices proved december 31 2009.
 lower gas prices reserves 116 mmboe.
.
 dry gas regions.
 drilling development barnett shale.


management financial condition results operations 2013 corporate expenses increased $ 3. $ 140. 2012 salaries expenses higher base salaries benefits temporary help lower expenses office general expenses.
 liquidity capital resources financial data liquidity capital resources.
 2014 2013 2012
 net income adjusted operating $ 831. $ 598. $ 697.
 working capital -131. 131. -293. 293.
 non-current assets liabilities -30. 6. 4. -46.
 operating activities $ 669. $ 592. $ 357.
 investing -200. -224. 224. -210.
 financing -343. 343. 131.
 net income depreciation amortization intangible restricted stock non compensation loss early extinguishment debt deferred income taxes.
reflects changes accounts receivable expenditures billable assets accounts payable accrued liabilities.
 operating activities cash 2014 $ 669. improvement $ 76. 2013 increase net income offset working capital usage $ 121.
 generate second use first largest impacts first fourth quarters.
 capital usage impacted by media businesses.
 $ 592. increase $ 235. 2012 improvement working capital usage $ 283. offset decrease net income.
 impacted media businesses management.
 timing media buying affects cash.
 agencies pay production media costs.
.
 revenues affect accounts receivable expenditures billable accounts payable accrued liabilities.
 assets include cash accounts receivable liabilities.
 affected timing payments.
 annual cash incentive awards paid first quarter.
 activities cash capital expenditures acquisitions.
 $ 148.leasehold improvements.
 $ 67. acquisitions 2014 cash.