management estimate possible loss unfavorable outcome in tobacco-related cases management provided amounts financial statements for unfavorable outcomes.
 legal defense costs expensed.
 altria group.
 subsidiaries success managing litigation.
 subject to uncertainty challenges remain.
 possible consolidated results operations cash flows financial position. affected by unfavorable outcome litigation.
.
 subsidiaries believe valid defenses bases for appeal adverse verdicts.
 defended against litigation challenges.
 altria group.
 subsidiaries may enter settlement discussions if.
.
.
usa tobacco-related litigation types claims tobacco smoking health cases personal injury plaintiffs personal injury court- supervised programs medical claims health care cost recovery cases governmental plaintiffs reimbursement health care expenditures cigarette smoking disgorgement profits class action suits 201clights deceptive unfair trade practices fraud unjust enrichment breach warranty violations racketeer corrupt organizations act other tobacco litigation.
 theories recovery defenses smoking recovery 201clights lights 201d cases.
 table lists tobacco-related cases united states against pm usa altria group.
 2014 2013 2012.
 smoking health cases 67 77 class actions aggregated litigation 5 6 7 health care cost recovery actions 1.
case 31 2014 2013 31 2012
 smoking health cases 67
 smoking health class actions claims litigation 5 6 7
 health care cost recovery actions
 class actions
 include 2558 cases flight attendants compensatory damages injuries environmental tobacco smoke.
 flight attendants members ets smoking health class action florida settled 1997.
 lawsuits punitive damages.
 include smoking health cases plaintiffs florida state federal courts decertification engle case.
 includes 600 civil actions 346 against pm usa west virginia.
 virginia supreme court appeals constitution preclude trial two phases.
 issues conduct punitive damages first.
 trial began april 2013.
2013 jury design defect negligence failure warn breach warranty concealment declined damages.
 plaintiffs ventilated filter cigarettes instructions 1964 1969.
 second phase trials liability damages.
 2013 trial court denied motions.
 judgment october 2013 november plaintiffs appeal west virginia.
 2014 affirmed judgment.
 rehearing denied january 8 2015.
 health care cost recovery litigation government lawsuit.
 altria group.
 financial statements.


consolidated financial statements 72 snap-on reconciliation unrecognized tax benefits.
 unrecognized tax benefits december 31 2006 21.
 increases 2013.
 decreases.
 increases.
 settlements taxing.
.
 unrecognized tax benefits december 29 2007 $ 18.
. unrecognized tax benefits $ 16. 2 million income tax rate.
 interest penalties tax expense.
 29 2007 2006 2005 recognized $ 1. 2 million. 5 million. million net interest expense.
 $ 3. 4 million 2. 2 million $ 1. 7 million accrued interest unrecognized tax benefits 2007 2006 2005.
 12 months changes unrecognized tax benefits additional interest expense.
 snap-on subject.
 federal state/local income tax examinations 2003.
 tax examinations 2001.
undistributed earnings non.
 subsidiaries totaled $ 338. million $ 247. 4 million $ 173. 6 million 2007 2006 2005.
 snap-on deferred taxes invested.
 tax.
 american jobs creation act 2004 tax incentive.
 tax deduction dividends.
 snap-on repatriated $ 93 million 2005 additional income tax expense $ 3. million.
 short-term long-term december 29 2007 $ 517. 9 million no.
 2006 $ 549. 2 million $ 314. million commercial paper.
-on presented $ 300 million commercial paper.
 sold $ 300 million unsecured notes $ 150 million floating rate $ 150 million fixed rate.
 floating three-month london interbank offer rate. payable quarterly.
 fixed rate. payable semi-annually.
snap-on used proceeds $ 1. 5 million obligations acquisition.
 january 2007 terminated $ 250 million credit agreement.


proportional free cash flow non-gaap operating activities less maintenance non-recoverable environmental expenditures adjusted impact noncontrolling interests.
 cash flows adjustments subsidiaries adjustment factor.
 accounting guidance service concession arrangements january 1 2015 capital expenditures investing operating activities.
 note 1 accounting policies.
 march 31 2015 changed definition proportional free cash flow exclude capital expenditures service concession.
 adjustment factor.
 exclude environmental capital expenditures recovered regulatory contractual mechanisms.
 ipl's investment mats-related environmental upgrades.
 item.
 proportional free cash flow operating activities.
 reflects business performance cash generated after maintenance expenditures investing repaying debt.
 impact noncontrolling interests results subsidiary not wholly-owned.
 free cash flow limitations.
free cash flow operating activities.
 excludes debt service dividend payments.
.
 calculation proportional free cash flow millions 2015.
 net cash operating activities $ 2134  $ 1791  $ 2715  $ 343  $ -924
 capital expenditures service concession assets
 adjusted operating cash flow 2299  1791  2715  508  -924
 proportional adjustment factor operating cash activities -558 -359 -834 -199
 adjusted operating cash flow 1741  1432  1881 -449
 maintenance capital expenditures reinsurance proceeds -485 -535
 non-recoverable environmental capital expenditures -75
 free cash flow $ 1241  $ 891  $ 1271  $ 350  $ -380
service concession asset expenditures excluded from free cash flow metric.
 proportional adjustment factor maintenance capital expenditures non-recoverable environmental capital expenditures calculated noncontrolling interests cash flow metric.
 parent company a owns 20% b.
 80% noncontrolling interest.
 net cash flow $ 100 proportional adjustment factor $ 80.
 calculates adjustment factor business sums total adjustment factor.
 differ income noncontrolling interests.
 includes adjustment service concession asset expenditures $ 84 million 2015.
.
 excludes recoverable environmental capital expenditures $ 205 million $ 163 million $ 110 million 2014 2013.


.
 junior subordinated debt securities issued march 29 2004 $ 329897 thousand 6. 2%. securities may 24 2013.
 incurred pre-tax expense $ 7282 thousand amortization capitalized issuance costs securities.
 interest expense.
 2014 2013 2012
 interest expense
 guarantee payment obligations.
.
 reinsurance trust agreements subsidiaries investments security assumed losses non-affiliated ceding companies.
 december 31 2014 total deposit trust accounts $ 322285 thousand.
 april 24 2014 two collateralized reinsurance agreements kilimanjaro bermuda reinsurer catastrophe reinsurance coverage.
 multi-year storm earthquake events.
 first agreement $ 250000 thousand reinsurance coverage storms southeastern united.
second agreement provides $ 200000 thousand storms southeast mid-atlantic northeast united states puerto rico earthquakes.
 november 18 2014 company collateralized reinsurance agreement kilimanjaro.
 multi-year covers earthquake events.
 $ 500000 thousand earthquakes united states puerto rico canada.
 kilimanjaro financed catastrophe bonds investors.
 april 24 2014 issued $ 450000 variable rate notes.
 november 18 2014 issued $ 500000 notes.
 proceeds held reinsurance trust invested us government funds rating.


consolidated results acquisition valves controls october 1 2015.
 not indicative.
 net sales $ 16201
 earnings $ 1482
 diluted earnings per share $ 2.
 results year acquisition charges $ 122.
 acquisition costs $ 52 2017.
 sold residential storage business $ 200 cash loss $ 40 2018 nondeductible goodwill.
 $ 140 after-tax cash proceeds sale.
 sales $ 298 pretax earnings $ 15 2017 leader home organization storage systems.
 held-for-sale 30.
 acquired six businesses 2016 two.
 cash $ 132 .
 annualized sales $ 51 2016.
 recognized goodwill $ 83 $ 27 tax deductible intangible assets $ 50  customer relationships intellectual property life nine years.
eight acquisitions 2015 automation one tools home sales $ 115.
 cash $ 324.
 goodwill $ 178 $ 42 tax deductible intangible assets $ 128 intellectual property ten years.
 2015 power transmission solutions $ 1. 4 billion pretax gain $ 939 $ 532 $. per share.
 assets $ 182 $ 374 accrued expenses $ 56.
 share repurchase.
 industrial automation sales $ 189 pretax earnings $ 21.
 couplings bearings components components services.
 sold intermetro commercial storage business $ 411 pretax gain $ 100 $ 79. per share.
 sales $ 288 pretax earnings $ 42 commercial residential solutions segment.
liabilities sold assets $ 62 accounts receivable inventories $ 292 property plant equipment goodwill liabilities $ 34 accounts payable $ 9.
 intermetro manufacturer supplier storage transport food commercial health care.
 acquired businesses included.
 discontinued operations 2017 portfolio growth core.
 november 30 2016 network power systems $ 4. 0 billion retained interest distributions equity holders threshold return.
.
 january 31 2017 power generation motors drives $ 1. 2 billion


tower corporation subsidiaries financial statements 2014 reporting units transitional impairment testing verestar single segment unit december 2002.
 impairment charge $ 189. 3 million.
 fair value third party appraisal.
 network development services units kline specialty constructors galaxy mts components flash technologies.
 value cash flows market information.
 impairment charge $ 387. 8 million december 31 2002.
 full impairment except kline partial impairment.
 assets sold december 31 2003 except kline tower construction services unit sold march november 2004.
 rental management third party appraisal not impaired.
 intangible assets amortization 31.
 acquired customer base network intangibles $ 1369607 $ 1299521
 deferred financing costs
licenses intangibles 43404
 1502747 1454130
 amortization -517444 -434381
 intangible assets 985303 1019749
 amortizes assets three fifteen years.
 2004 2003 $ 97. 8 million $ 94. 6 million excluding deferred financing costs.
 expects $ 97. 8 million $ 95. 9 million $ 92. $ 90. 5 million $ 88. 8 million 2005 2006 2007 2008 2009.
.
 loaned tv azteca.
.
 $ 119. 8 million.
. discounted interest rate.
 amended 2003 interest rate. 11%.
 december 31 $ 119. 8 million undiscounted $ 108. 2 million discounted long-term assets.
 seventy years prepaid


financial statements 2014 table summarizes changes non stock awards 31 2009 grant-date fair value.
 non-vested 31 2007 278 37
 granted
 -136 30
 forfeited
 2008 518 39
 granted
 forfeited
 2009 762
 average grant-date fair value 2007 $ 38 $ 45 .
 total value $ 6. 2 million $ 4. 1 million $ 1. 7 million.
 recognized compensation expense stock $ 9. 5. 7 million 2. 7 million.
 $ 23. million unrecognized compensation cost unvested stock awards.
 employee stock purchase sale 2. 4 million shares common stock authorized.
 $ 25000 20% annual compensation.
 shares purchased 85% market value last quarterly purchase period.
 31 2009.8 million shares issued plan 1. 6 million future.
 average value $ 6  $ $ 8 2009 2008 2007.
 15% discount.
 2009 performance new segment structure.
 june 2008 acquisition 51% hsbc merchant services expansion.
 august reportable segments north america merchant international money transfer.
 tables reflect changes segments 2009 2008 2007.


2015 $ 82 million recapture impaired loans $ 91 million 2014.
 charge-offs commercial loans $ 12 million $ 42 million 2014.
 december impaired loans $. 3 billion $. 9 billion.
 decline derecognition policy.
 increases provision recapture reclassification non accretable yield.
 transactions removal loans cash flow estimation.
 flow re- estimation quarterly.
 accretable yield 2015 2014 table 66 purchased impaired loans 2013 yield.
 millions 2014
 january 1 $ 1558 $ 2055
 cash recoveries -466 -587
 reclassifications accretable non-accretable 226
 disposals -68 -118
 31 $ 1250 $ 1558
 allowances loan lease losses unfunded commitments credit losses.
segments commercial consumer methodologies 1 accounting.
 rollforward loan data.
 pnc financial services group.
 2013 form 10-k


graph compares shareholder return pmi common stock peer group s&p 500 index.
 assumes investment $ 100 december 31 2012 pmi common stock new york stock exchange market reinvestment dividends quarterly.
&p 500.
 2012 $ 100.
 2013 108. 122. 132.
 2014 106. 150.
 2015 120. 143. 152
 130. 145 170.
 2017 156. 172. 208.
 pmi peer group prior year reynolds american.
 removed acquisition british american tobacco.
 25 2017.
 group established global presence focus consumer products net revenues market capitalization similar.
 international tobacco companies.
 group altria. anheuser-busch inbev british american tobacco. coca-cola colgate-palmolive.diageo heineken. imperial brands japan tobacco. johnson kimberly-clark kraft-heinz mcdonald's. mondel. pepsico. procter gamble roche unilever.
.


contents.
 financial statements acquisition provides two annual earn-out payments $ 15000 biolucent revenue targets.
 95-8 contingent consideration additional purchase price.
 goodwill increased.
 recorded earn-outs.
 allocation purchase price fair value assets acquired liabilities assumed september 18 2007.
.
 assets acquired $ 2800
 developed technology how 12300
 customer relationship 17000
 trade name 2800
 deferred income tax liabilities
 goodwill 47800
 final purchase price $ 73200
 intangible assets identified valued.
 customer relationship trade name technology identifiable values.
 fair value determined income approach.
 customer relationship base disposable product.
 trade name biolucent product.
 developed technology marketable products.
deferred income tax liability acquired assets value adjustments inventory not deductible offset by net operating loss $ 2400.
.
 sale gestiva january 16 2008.
 rights k-v pharmaceutical approval drug application purchase price $ 82000.
 received $ 9500 purchase price 2008 balance due approval february 19 2010 commercial launch.
 terminate agreement if approval not february 19 2010.
 continue efforts fda approval.
 costs reimbursed by k-v pharmaceutical recorded credit against research development expenses.
 reimbursed costs.
 recorded $ 9500 deferred gain balance.
 gain recognized closing transaction fda approval.
 assure fda approval transaction balance purchase price.
k-v pharmaceutical terminates agreement breach return funds expenses reimbursed.
 hologic inc november 24 2009 morningstar information not copied adapted not warranted accurate complete timely.
 user assumes risks damages losses.
 past financial performance guarantee future results.


revenues $ 3. 8 billion 2017 739 million 2016 rrps japan.
 excise taxes.
 $ 3. 6 billion 2017 $ 733 million 2016.
 not excise taxes.
 $. 9 billion. 6 billion revenues iqos devices accessories.
 excise taxes increased $ 1. billion due 2022 higher excise taxes. offset 2022 favorable currency $ 1. 9 billion lower excise taxes volume/mix $ 1. billion.
 cost sales marketing administration research costs operating income years 31.
 cost sales.
 marketing research costs.
 operating income.
 sales increased $ 1. billion 2022 higher cost. offset lower manufacturing costs $ 36 million favorable currency $ 30 million.
research costs increased $ 320 million 2022 expenses $ 570 million reduced-risk products european union asia offset 2022 currency $ 250 million.
 operating income increased $ 688 million 2022 price increases $. 4 billion unfavorable currency $ 157 million.
 interest expense $ 914 million increased $ 23 million currency higher debt higher interest income.
 effective tax rate increased. points 40. 7%.
 2017 tax rate impacted $ 1. 6 billion tax cuts jobs act.
 item 8.
.
 impact tax liability.
 2018 effective tax rate 28% ( 28 % subject regulatory developments.
.
 tax benefits.
.
 net earnings $ 6. billion decreased $ 932 million.
 higher tax rate higher operating income.
 $. decreased. 4%.


.
 capital stock shares outstanding.
 table information.
 thousands december 31 2017 31 2016
 class common stock authorized 1000000
 issued outstanding 339235 338240
 b-1 common stock.
 b-2.
 b-3 stock.
 b-4 common stock.
 cme group no shares preferred stock.
 trading rights.
 members cme cbot comex own lease trading rights open outcry trading discounts fees right vote exchange matters rules cme group.
 cme b common stock membership division trading.
 separate asset not common stock.
 shareholders retain representation board directors approval rights.
 trading rights cbot evidenced b memberships nymex.
 rights elect board directors receive dividends distributions memberships trading permits.
.
holders cme group class b shares approve changes rights trading privileges cme.
 trading right fee protections membership benefit protections.
 votes weighted by class.
 b-1 six b-2 two b-3 one b-4 1/6th.
 approval majority votes holders b required changes.
 holders shares class a stock vote changes rights.
.
 holders vote together matters.
 each holder b one vote per share.
.
 certificate incorporation.
 prohibit sale transfer shares separate sale trading rights.
 election directors.
 cme group board 20 members.
 holders class b-1 b-2 b-3 six directors three elected by b-1 two b-2 one b-3 shareholders.
 remaining directors elected by class a b shareholders.


january 1 2019 assets transferred from products pipelines to natural gas pipelines.
 small terminals transferred between products pipelines terminals.
 products pipelines against pipelines major oil companies trucking marine transportation firms.
 terminals transmix refineries.
 refined petroleum crude oil chemical ethanol liquid terminal facilities petroleum coke metal ores facilities.
 terminals located.
 canada.
 flexibility customers expansion opportunities.
 terminal operations handling liquids or dry-bulk.
 marine operations include jones act-qualified product tankers marine transportation crude oil condensate refined petroleum between.
 ports.
 terminals assets december 31 2018.
 liquids terminals 52.
 bulk terminals
 jones act tankers.
effective january 1 2019 terminals transferred pipelines.
 largest independent liquids north america.
 terminals compete oil chemical pipeline refining companies.
 bulk terminals compete distributors.
 smaller.
 jones act-qualified product tankers compete vessel fleets.
 co2 business segment produces transports markets co2 oil recovery projects.
 co2 pipelines assets co2 supply transportation services.
 hold ownership oil-producing fields crude oil pipeline permian basin west texas.


.
 derivative contracts hedges gains losses reported income earnings.
 ineffectiveness recognized earnings.
 contracts not recorded fair value gain loss recognized earnings.
 enter foreign currency option contracts reduce exchange rates euro pound yen.
 foreign currency derivatives hedging same currencies duration.
 forward contracts subsidiary trade loan payables receivables foreign currencies.
 recorded fair value gain loss recognized.
 option contracts hedge anticipated foreign currency transactions.
 cash hedges impact earnings cost sales.
 foreign currency forward contracts currency swaps fair value hedges.
 maturities 12 months.
 operations exposed interest rates.
 costs.
 address risks controlled risk management derivative instruments.
 limit impact earnings.
 interest rate risk exposure short-term.
 interest rates.
interest rate exposures balance xed debt investment positions swaps.
 debt fair value hedges.
 cash hedg.
 interest expense debt adjusted payments swap agreements.
 goodwill intangibles not amortized.
 intangibles amortized lives 5 to 20 years.
-average amortization product technology 12 years.
 amortization expense 2008 2007 2006 $ 193. 4 million $ 172. 8 million $ 7. 6 million before tax.
 $ 280 million before.
 included cost sales.
 note 3 goodwill intangibles 2008 2007.
 assets december 31.
 goodwill $ 1167. $ 745. 7
 technology 2014 gross 3035. 1767.
 less accumulated amortization.
 2688. 1604
 intangibles 243.
 less accumulated amortization.38.
 intangibles 2014 197. 104.
 $ 4054. $ 2455.
 reviewed recoverability annually impairment indicators.
 impairments value 2008 2007 2006.
 property equipment cost.
 provisions depreciation computed straight-line estimated lives 12 50 years 3 18 years equipment.
 review value long-lived assets impairment


financial statements 2013 millions share guaranteed obligations subsidiaries operating leases uncommitted lines credit.
 company guarantees lease obligations $ 829. 2 $ 857. 3 december 31 2017 2016 uncommitted lines credit $ 491. 0 $ 395. 6.
 non-payment obligated pay amounts.
 no material assets pledged guarantees.
 estimated future obligations payable cash december 31.
 2021 2022
 deferred acquisition payments $ 41. 9 $ 27. 5. 24 $ 121.
 redeemable noncontrolling interests call options.
 contingent acquisition payments $ 79. $. 34 268.
 entered acquisitions redeemable noncontrolling interests call options similar terms conditions.
 estimated amounts paid earliest date.
redeemable noncontrolling interests exercisable at discretion owners as of december 31 2017.
 estimated payments of $ 24. 8 included within total payments 2018 into 2019 until exercised or expired.
 at current exercise price payable cash not redemption value.
 majority payments contingent upon operating performance targets conditions agreements subject to revision.
 see note 4 for information payment structure acquisitions.
 involved in legal proceedings subject to investigations inspections audits inquiries governmental authorities.
 allegations contract employment tax intellectual property.
 evaluate cases record liabilities for losses from proceedings.
 certain cases loss litigation early stages.
 management believes financial condition operations cash flows.
april 10 2015 federal judge brazil authorized search agency offices e3o paulo brasilia investigation payments government contracts.
 company investigated remedial disciplinary actions.
 concluding settlement government.
 contacted justice antitrust video production practices cooperating.


increased $. 8 million to $ 7. 2 million 2015 from 6. 4 million 2014.
 due higher losses foreign currency exchange rate changes instruments.
 income taxes increased $ 19. 9 million to $ 154. 1 million 2015 from 134. 2 million 2014.
 effective tax rate 39. 9%. 2015. 2%. 2014.
 due increased non costs fitness acquisitions.
 revenues increased $ 752. 3 million. $ 3084. 4 million 2014 2332. 1 million 2013.
 revenues product category summarized.
 apparel 2291520 1762150 529370.
 footwear.
 accessories.
 sales 2997916 2277073.
.
 fitness.
 revenues 3084370 2332051 752319. 3%.
net sales 2022 apparel training hunt golf footwear running basketball.
 license revenues increased $ 13. 3 million. 7%. $ 67. 2 million 2014 $ 53. 9 million 2013.
 increased distribution volume growth.
 fitness revenue increased $ 18. 1 million to $ 19. 2 million 2014 1. million 2013 gross profit increased $ 375. 5 million $ 1512. 2 million 1136. million 2013.
 increased 30 points 49.
 driven increase decreased excess higher duty costs.
 offset decrease foreign currency exchange rate fluctuations.


2006 plan 2008 vested nonforfeitable.
 awards granted after 2008 employees consultants waste industries.
 subsidiaries not republic services.
.
 31 2010. million shares common stock future grants 2006 plan.
 binomial option-pricing model.
 compensation expense straight period retirement.
 volatility one-year historical rolling average.
 risk-free interest rate federal reserve rates.
 historical data estimate future option exercises.
 valuation.
 weighted-average estimated values stock options 31 2010 2009 2008 $ 5. 28 $ 3. 79 $ 4. 36 per option assumptions.
 volatility 28. 6%. 6 %. 7%. 7 %. 3%. 3 %
-free interest. 4%. 4 %. 4%. 7%. 7
 dividend. 9%. 9 %.1%. 1 %. 9% 9 %
 life.
 life 7
 forfeiture rate. 0%. 0 %. 0 %. 0% 0 %
 services.
 financial statements


financial statements 2006 2005 2004 gains losses securities.
 cost securities based identification method.
 merchandise inventories lower cost retail.
 excess current cost $ 5. million 2006 $ 6. 3 million 28 2005.
.
 reserves decreased. million. 2 million 2005 2004 increased $. 7 million 2003.
 costs warehousing distribu capitalized inventory.
 2005 expanded inven departments profit 10 to 23.
 impact reduction gross profit decrease inventory $ 5. 2 million.
 pre-opening expensed incurred.
 property recorded cost.
 depreciation amortization estimated lives.
 land improvements
 furniture equipment
 improvements leased properties amortized lease term.
impairment long-lived assets company evaluates carrying value operating perform future cash flows appraised values.
 net book value cash flow analysis.
 value less cost sell.
 recorded impairment charges $ 0. 5 million $ 0. 6 million 2004 2003 $ 4. 7 million carrying value homerville 2004.
 $ 0. 6 million 2005 $ 0. 2 million 2004 2003 carrying value negative sales trends cash flows.
 charges included expense.
 assets long-term invest- ments debt issuance costs utility security deposits life insurance policies goodwill.
 vendor rebates new store volume purchase promotional allowances.
 inventory purchases cost goods.
.
 rent expense recognized over term lease.
company records minimum rental expense lease term possession store opening improvements fixtures.
 lease escalation recognizes rent expense records difference deferred rent.
 receives tenant allowances recorded deferred rent amortized rent expense.
 difference calculated expense paid reflected liability accrued expenses consolidated balance sheets approximately $ 25. 0 million


.
 construction completed december 2003.
 due lower financing costs final lease balance lowered to $ 103. 0 million.
 five-year lease completion.
 end term purchase balance remarket relinquish.
 sale unrelated party pay lessor shortfall lease balance to maximum recourse $ 90. 8 million value guarantee 201d.
 note 14.
 august 1999 five-year lease agreement two office buildings corporate headquarters san jose california.
 option purchase buildings balance approximately $ 142. 5 million.
 evaluating alternative financing methods expiration lease fiscal 2004 options.
 purchase remarket relinquish.
 pay shortfall lease balance maximum recourse $ 132. 6 million value guarantee 201d.
 note 14.
 two lease agreements subject to standard financial covenants.
 limit indebtedness.
leverage covenant requires debt to ebitda ratio less than. 5:1.
 november 28 2003 debt ratio. 53:1.
 liquidity covenant quick ratio equal 1.
 2003 ratio 2. 2 above minimum.
 expect remain compliance next 12 months.
 comfortable limitations impact cash credit business plan.
 table summarizes contractual commitments november 28 2003 less than 1 year 2013 3 years 3-5 years 5 years non-cancelable operating leases sublease income.
 $ 83. $ 23. $ against intellectual property infringement.
 costs not significant unable estimate impact future results.
 commitments milestone retention payments acquisitions.
 employee retention agreements totaling $ 2. 2 million.
 payments satisfaction conditions.
 indemnify officers directors events.
 covers lifetime.
 maximum future payments indemnification agreements unlimited director officer insurance coverage limits exposure amounts.
 estimated fair value agreements minimal.
 less than 1 year 1-3 years 3-5 years over 5 years
 non-cancelable operating leases sublease income $ 83. $ 23. $ 25. $. $ 18.
.
 construction completed december 2003.
 lower financing construction costs final lease balance lowered to $ 103. million.
 five-year lease completion.
 purchase lease balance remarket relinquish.
 pay shortfall remarketing proceeds lease balance $ 90. 8 million.
.
 august 1999 five-year lease agreement two office buildings headquarters san jose.
 option purchase term balance approximately $ 142. 5 million.
 evaluating alternative financing expiration lease 2004.
end lease term purchase buildings remarket or relinquish.
 sale unrelated party pay lessor shortfall remarketing proceeds lease balance maximum recourse $ 132. 6 million.
 see note 14 financial statements.
 two lease agreements subject standard financial covenants.
 limit indebtedness.
 leverage covenant debt to ebitda ratio less than 2. 5:1.
 november 2003 ratio. 53:1
 liquidity covenant quick ratio 1. 0
 ratio 2. 2
 compliance 12 months.
 comfortable limitations impact cash credit business plan.
 table summarizes contractual commitments 2003 less than 1 year 3 years 3-5 years 5 years non-cancelable leases sublease income.
. varying scope against intellectual property infringement.
 costs not significant unable estimate impact future results.
 commitments to milestone retention payments acquisitions.
 purchases technology assets fiscal 2003 employee retention agreements $ 2. 2 million.
 required payments satisfaction conditions.
 delaware law indemnify officers directors for events.
 indemnification covers lifetime.
 maximum future payments unlimited director officer insurance coverage limits exposure future amounts paid.
 estimated fair value indemnification agreements insurance coverage minimal.


tower corporation subsidiaries valuation allowance increased $ 47. 8 million 2009 to $ 48. 2 million 2010.
 due foreign loss carryforwards.
 valuation allowance $ 48. 2 million state net operating loss carryforwards equity investments foreign items.
 remaining deferred tax assets federal net operating loss carryforwards taxable income.
 valuation allowances reversed if deferred tax assets realizable.
 assessed.
 decrease depreciation.
 not dependent on improvements operations asset sales non-routine transactions.
 realized.
 deferred tax assets include $ 122. 1 million $ 113. 9 million excess tax benefits employee stock options.
 stockholders 2019 equity increased by $ 122. 1 million if excess tax benefits realized.
december 31 2010 company loss carryforwards future income $ 1. 2 billion losses employee stock options $ 0. 3 billion.
 loss carryforwards expire.
 years
 2011 to 2015
 2016 to 2020
 2021 2025
 2026 to 2030
 mexican tax credits $ 5. 2 million expire 2017.


tower corporation subsidiaries financial statements december 31 2010 2009 had $ 295. 4 million $ 295. 0 million net $ 300. million 7. 25%. 25 % notes.
 carrying value discount $ 4. 6 million $ 5. 0 million.
. convertible notes. matured february 15 2010 interest payable semiannually february 15 august 15.
. notes convertible shares common stock conversion price $ 51. 50 per share.
 december 31 2010 2009 company $ 59. 7 million outstanding 5. 0% 5
. 25% issued maturity december 1 2011 interest payable semi-annually june 1 december 1 each year.
. guaranteed company wholly owned subsidiaries.
 payment indebtedness sister guarantors.
.25 % notes senior indebtedness convertible revolving credit term loan.
 31 2010 issued notice redemption. 25%. notes.
. redeemed equal 100. principal amount accrued unpaid interest excluding september 23 2010 purchase price $ 0. 3 million.
 2009. million.
 capital lease obligations $ 46. 3 million $ 59. million 2010 2009.
 obligations interest rates 2. 5%. to 9. 3%. one year seventy years.
 value long-term debt capital leases five years estimated.
 2011 74896
 2012 625884
 2013
 2014 1750479
 2015 600489
 2541858
 cash obligations 5594224
 unamortized discounts premiums
 balance december 31 2010 $ 5587388


mainline american us airways dispatchers flight simulator engineers crew training instructors represented by filed single carrier applications.
 nmb single transportation system certify post-merger representative employee before negotiating new jcbas.
 merger impact cbas subsidiary airlines not envoy piedmont psa.
 cbas expire amendable.
 2014 envoy pilots piedmont pilots attendants.
 passenger service employees american mainline employees covered by agreements not amendable.
 negotiations jcbas outside rla bargaining process no self-help permissible.
 piedmont mechanics stock clerks psa dispatchers have agreements amendable traditional rla negotiations.
 unions engage refusals work strikes slow-downs sick-outs.
risk disgruntled employees union involvement refusals harm operation airline impair financial performance.
.
 risk factors disputes strikes labor disruptions affect operations. financial results affected availability price jet fuel.
 consumption december 31 2014 one cent per gallon increase aviation fuel price 2015 annual fuel expense $ 43 million.
 table shows annual aircraft fuel consumption costs mainline operations 2012 through 2014.
 average price per gallon expense total mainline operating expenses.
 2014.
 2013.
 2012.
 financial data american us airways group.
 combined fuel expenses wholly-owned third regional carriers $ 2. billion $. 1 billion $. 1 billion years december 31 2014 2013 2012.


united parcel service.
 subsidiaries financial floating-rate $ 1. 043 billion interest one three-month libor spread 30 to 45 basis points.
 average interest rate 2017 2016 0. 74% (. 74 %. 21%. 21 %.
 callable after 30 years putable one year.
 maturities 2049 through 2067.
 long-term liability.
 issued $ 147 $ 64 million $ 1. 043 billion.
 three-month libor less 30 35 basis points mature 2067.
 remaining three $ 350  $ 400 $ 500 million interest three libor spread 15 to 45 basis points.
 average interest rate 2017 2016 0. 50% (. 50 %.
.
 maturities 2021 through 2023.
 long-term liability refinance.
 lease property.
 defeased.
value property plant equipment capital leases december 31 millions.
 2017 2016
 vehicles $ 70 $ 68
 aircraft 2291
 buildings 285 190
 amortization -990 -896
 property equipment $ 1656 $ 1653
 obligations payments due 2018 through 3005.
 agreements municipalities construction facilities.
 package supply chain freight operations states.
 facilities louisville kentucky dallas texas philadelphia pennsylvania.
 lease loan agreement debt service obligations bonds 2022 bonds $ 149 million louisville regional airport authority.
 due january 2029 variable average rates 2017 2016. 83%.
 2022 $ 42 million due november 2036 louisville airport authority.
 average rates 2016.
 $ 29 million dallas fort worth airport corporation.
bonds due 2032 variable rate cash flows swapped. 11%.
 2022 agreement delaware county pennsylvania industrial development authority airport facilities bonds balance $ 100 million.
 due 2045 variable.
 average 2017 2016. 78%. 40%.


pullmantur 2013 operated four ships 7650 berths itineraries four to 12 nights south america caribbean europe.
 zenith redeployed cdf croisi e8res de france january 2014.
 serves spanish portuguese latin american cruise markets.
 guests cruising options activities couples families.
 increased focus latin america.
 opened regional head office panama market.
 december 2013 majority land-based tour operations travel agency pullmantur air.
 retain 19% interest non-core businesses.
 retain ownership pullmantur aircraft leased air.
 2014 redeployed zenith cdf croisi e8res france.
 2014 two ships 2750 berths cdf croisi e8res brand.
 2014 ships caribbean winter 2014.
cdf croisi e8res de france offers seasonal itineraries mediterranean.
 french cruise market brand tailored french guests.
 tui premium german cruise market product tailored german guests.
 onboard activities services shore excursions menu.
 operates two ships 1 2 capacity 3800 berths.
 two ships order 2500 berths delivery second 2014 2015.
 joint venture owned 50% us tui german tourism 51% tui travel.
 cruising well-established sector north american growing european developing emerging markets.
 market penetration rates low first-time cruisers.
 opportunity long-term growth increased profitability.
 table market penetration rates north america europe annual cruise guests america 1 2.
 3. 0%. %.
 3. 1%.
 3. 4%. 4 %.1%. 1 %
 2012. 3%. % 2 %
. 4%. 4 %. 2%. 2 %
 international monetary fund cruise line association guests two nights 2009 2012.
.
 united states canada.
 international monetary fund cruise council 2009 2012.
.
 global cruise fleet 436000 berths 269 ships 2013.
 26 ships 71000 berths 2014 2018.
 cruise industry. 3 million guests 2013. 9 2012. 2011.


sales increased $ 29. 9 million 6. 3%. higher sales volume.
 home products market new product introductions price increases cost increases.
 operating income increased $ 12. 6 million. 4%. 4 % higher sales productivity improvements fixed cost base.
 increased $ 12. 8 million 2. 2%. price increases.
 offset exiting two product lines.
 income increased $ 5. 8 million 8. 7%. 7 % higher net sales productivity lower restructuring $ 6 million manufacturing facility relocation foreign exchange cost savings.
 corporate expenses increased $ 5. 7 million long lived asset actuarial gain loss higher defined benefit plan income 2017.
.
. -80
 income.
.
 -85.
company record expense gains losses liabilities defined benefit plans.
 liabilities fourth quarter.
 remeasurements amendments settlements.
 discount rates return result income.
 2016 2015 fortune brands net sales increased $ 405. 5 million.
 higher sales volume.
 market conditions home products acquisitions cabinets plumbing price increases foreign.
 offset unfavorable foreign exchange $ 27 million higher sales rebates.
 increased $ 182. 8 million 6% 6 % higher net sales acquisitions offset productivity improvements.


securities table 11.
 millions 31 2012 amortized cost fair value
 securities sale $ 49447 $ 51052 48609
 maturity 10354
 $ $ 61912 60675
 $ million amortized cost value corporate stocks 2012.
 2011 $ 368 million.
 remainder debt securities.
 securities $ 61. 4 billion 2012 $ 51. billion fair value $ 10. 4 billion cost.
 2011 $ 60. 6 billion $ 48. 6 billion value $ 12. billion cost.
 increase carrying $ 2. billion asset-backed securities net purchase activity $. 6 billion non-agency residential mortgage-backed securities fair value.
 offset $ 1. 7 billion decrease maturity debt securities.
 securities 20% assets 2012 22% 2011.
evaluate portfolio market conditions improve positioning.
 portfolio well-diversified high quality.
.
 residential commercial securities represented 59% 59 portfolio december 31  2012.
 net unrealized gain $ 1. 6 billion difference fair value amortized cost.
 2011 unrealized loss $ 41 million.
 fair value impacted interest rates credit spreads market volatility liquidity.
 decreases interest rates.
 credit spreads.
 improvement net unrealized gain due non-agency residential mortgage backed securities losses $ 1. 1 billion lower market interest rates.
 unrealized gains losses included shareholders 2019 equity.
 information note 8 9 statements.
 unrealized gains losses impact liquidity risk capital.
 reductions credit ratings liquidity regulatory capital ratios.
credit-related securities earnings regulatory capital ratios.
-average life securities 4. years 2012 3. 7 years 2011.
 duration securities 2. 3 years increase 2. 2 years decrease.
 2011 2. 6 years 2. 4 years.
 table vintage credit rating fico score underlying collateral origination residential commercial-backed securities portfolios pnc financial services group.
 2013


market risk exposed interest rates foreign exchange rates commodity prices equity prices.
 cause fluctuations earnings cash flows.
 manage hedging actions.
 counterparties rated institutions.
 credit limits.
 hedging transactions instruments.
 manage debt structure interest rate risk fixed- floating-rate debt derivatives.
 interest rate swaps forward-starting hedge exposure reduce financing costs.
 agree exchange difference fixed floating-rate interest amounts.
 primary exposure.
 interest rates.
 may 28 2006 $ 7. 0 billion principal amount outstanding.
 offsetting swaps.
 six pages 40.
 fluctuations affect investments earnings.
 foreign currency forward contracts option contracts hedge cash flow exchange rates.
.
 primary.
 exchange rate exposures canadian dollar euro australian dollar mexican peso british pound.
commodities exposed to market price risks.
 manage through financial instruments purchase orders contracts futures options swaps.
 exposures cereal grains sugar dairy vegetables fruits meats vegetable oils agricultural products paper packaging operating supplies energy.
 equity instruments price movements affect compensation expense.
 equity swaps risk.
 estimates maximum value changes interest rates foreign exchange rates commodity prices equity prices.
 method ology risk.
 95 percent confidence level.
 interest foreign exchange prices volatility.
 data riskmetricstm.
 calculations not represent actual losses.
 hedging correlates offset.
 positions debt invest ments interest rate swaps foreign exchange forwards commodity swaps futures options equity instru.
 foreign exchange commodities positions hedged.
table presents estimated one-day loss interest rate foreign currency commodity equity instruments may 28 2006 29 2005 average amount 28 2006.
 calculated methodology.
 millions 282006 292005
 interest rate $ 8 $ 10 18
 foreign currency
 commodity
 equity


realization investment gain $ 5624 net award.
 award paid over three-year period as deferred compensation award balance.
 december 31 2002 $ 1504 paid against compensation.
 1997 company implemented savings/retirement plan employees affiliate.
 permits defer 15% annual compensation subject to limitations.
 deferrals vested non-forfeitable upon contribution 401.
 2000 amended 401 plan matching contribution equal to 50% first 4% annual compensation deferred.
 years december 31 2002 2001 2000 made matching contributions of $ 140  $ 116 $ 54 .
.
 company operating partnership involved in material litigation material litigation threatened.
 costs affect financial position operating results liquidity.
 october 24  2001 accident occurred at 215 park avenue south property company manages.
injury claims filed against company 11 persons.
 insurance coverage.
 employment agreements executives.
 six november 2003 december 2007.
 cash compensation $ 2125 2003.
 acquired position at 420 lexington avenue.
 $ 6000 $ 1100 1999.
 expire 2008.
 extend through 2029.
 property 1140 avenue net ground lease $ annually expiration 2016 option renew 50 years.
 711 third avenue sub-lease expires 2083.
 ground rent $ 1600 annually increased to $ 3100 2001 ten years.
 after ten estimated fair market value.
 1988 lease agreement 673 first avenue new york.
 70% fair market value.
 operating capital lease.
 initial lease term 49 years option additional 26 years.
 lessor additional rent.
company 673 first avenue prop capital lease cost $ 12208 amortization $ 3579 $ 3306 december 31 2002 2001.
 schedule future minimum lease payments capital leases noncancellable operating leases initial terms one year december 31 2002.
.
 2003
 2004
 2005
 2006
 2007
 296277
 minimum lease payments 63014 356187
 interest
 net minimum lease payments $ 15862 $ 356187
.
 financial instruments derivatives hedging accounting standards board statement.
 effective january 1 2001 derivatives balance fair value.
 not hedges adjusted fair value.
.


ordinary business geologic trends economics allowed lease acreage expire may allow additional acreage.
 production not established leases licenses concessions undeveloped acreage expire next three years.
 plan continue terms licenses concession areas retain leases.
 undeveloped acres expiring year december 31.
 2015 2016 2017
.
.
 hold 20 percent interest aosp oil sands mining upgrading joint venture alberta.
 produces bitumen oil sands deposits athabasca upgrades synthetic crude oils vacuum gas oil.
 mining extraction assets near fort mcmurray alberta muskeg river jackpine mines.
 capacity combined 255000 barrels bitumen per day.
aosp operations oil open-pit mine extract bitumen upgrade crude oils.
 ore mined shovel mining.
 crushers sent rotary breakers.
 combined water slurry.
 separates into sand clay bitumen froth.
 solvent added.
 washes produces clean bitumen.
 yields solvent bitumen transported scotford upgrader 300-mile.
 upgrader fort saskatchewan northeast edmonton.
 bitumen upgraded hydrotreating hydroconversion.
 blendstocks products.
 produces synthetic crude oils vacuum gas oil.
 sold affiliate market prices products sold marketplace.
 leases 163000 33000 acres.
 leases royalties payable province alberta.
 crude oil sales 2014 50 mbbld net-of-royalty production 41 mbbld.
december 2013 jackpine mine expansion project approval canadian government.
 includes mining areas processing facilities infrastructure.
 conditions wildlife environment aboriginal health.
 conditions infrastructure initiatives.
 alberta canada fund quest ccs $ 865 million.
 2012 board approved aosp partners quest ccs.
 funding commenced 2012.
 failure repaying funding.
 construction late 2015.


altria group  inc.
 subsidiaries financial statements not obtainable all cases.
 risk reduced 47 states puerto rico limit dollar amount bonds require no bond.
 tobacco litigation plaintiffs challenged florida 2019s bond cap statute challenge state bond cap statutes other jurisdictions.
 include applicability state bond caps federal court.
 states including florida repeal alter bond cap statutes legislation.
.
 outcome consolidated results operations cash flows financial position. affected unfavorable outcome.
.
 subsidiaries record provisions statements unfavorable outcome probable loss.
.
 management loss unable estimate possible loss provided amounts financial statements for unfavorable outcomes.
 litigation defense costs expensed.
.
 subsidiaries success managing litigation.
subject uncertainty challenges.
 possible consolidated results operations cash flows financial position altria group . subsidiaries affected by unfavorable outcome settlement litigation.
 altria group.
 subsidiaries believe valid defenses bases for appeal adverse verdicts.
 defended against litigation challenges.
 altria group.
 subsidiaries may enter settlement discussions best interests.
.
.
usa tobacco litigation types claims tobacco smoking health cases personal injury personal injury court-supervised programs health care cost recovery cases governmental plaintiffs reimbursement care expenditures cigarette smoking disgorgement profits class action suits 201clights lights deceptive unfair trade practices fraud unjust enrichment breach warranty violations racketeer corrupt organizations act other tobacco-related litigation.
 recovery defenses smoking recovery 201clights lights cases.
 table tobacco-related cases states against pm usa altria group.
 december 31 2016 2015 2014.
 smoking health cases 65 67
 smoking health class actions aggregated claims litigation
 health care cost recovery actions
 201clights/ultra lights 201d class actions
include 25 cases asbestos docket baltimore city maryland pm usa defendants.
 2485 cases flight attendants damages injuries tobacco smoke.
 attendants ets smoking health class action florida settled 1997.
 lawsuits punitive damages.
 smoking health cases plaintiffs florida federal decertification engle case.
 includes 600 civil actions 344 against pm usa west virginia.
 supreme court appeals ruled constitution preclude trial two phases.
 issues punitive damages first.
 april 2013.
 jury verdict design defect negligence failure warn breach warranty concealment declined punitive damages.
 plaintiffs ventilated filter cigarettes instructions 1964 - 1969.
 second phase trials liability compensatory damages.
 november 2014 supreme court affirmed final judgment.
july 2015 trial court order final judgment 30 plaintiffs second phase.
 claims six trials five plaintiffs.
 first trial may 1 2018.
 five remaining trials.
 health care cost recovery litigation federal government lawsuit.


ship submarine rotary fixed-wing aircraft land missile defense radar littoral combat ships simulation training services unmanned systems technologies.
 programs aegis combat littoral combat ship mh-60 tpq-53 radar-41 vertical launching system.
 results.
 2013
 net sales $ 7147 $
 operating profit
 margins 11. 8%.
 backlog year-end $ 11700 $ 10800
 net sales.
 decreased $ 85 million undersea systems decreased volume deliveries $ 55 million contract cost.
 offset higher net sales $ 80 million warfare systems sensors increased volume $ 40 million training logistics increased deliveries.
 operating profit 2014 decreased $ 62 million 7% 7 %.
 lower operating profit $ 120 million contract cost $ 45 million higher reserves training logistics.
decreases offset by higher operating profit $ 45 million performance reserves 2013 2014 $ 60 million increased risk retirements.
 adjustments $ 50 million lower 2014 2013.
 net sales decreased $ 426 million 6%.
 lower net sales $ 275 million ship aviation systems $ 195 million integrated warfare systems sensors $ 65 million training logistics $ 55 million aegis program.
 offset higher net sales $ 155 million lcs program.
 operating profit 2013 increased $ 168 million 23% 2012.
 higher operating profit $ 120 million contract cost $ 55 million $ 30 million undersea systems.
 offset lower operating profit $ 55 million training logistics $ 30 million lower-cost-market considerations $ 25 million ship aviation systems lower risk.
 profit lcs program.
adjustments net profit rate $ 170 million higher 2013.
 increased 2014 higher orders program space fence.
 increased 2013 higher orders lower sales warfare sensors service programs lower orders ship aviation.


consolidated financial statements table. regulatory capital ratios 1 leverage ratio implemented federal reserve board.
 2013 reflects revised market risk capital requirements.
 capital requirements.
 prior.
 1 capital $ 72471 $ 66977
 tier 2 capital $ 13632 13429
 total capital $ 86103
 risk-weighted assets $ 433226 $ 399928
 1 capital ratio 16. 7%.
 capital 19. 9%. % 1%.
 1 leverage ratio 8. 1%. 7. 3%. %
.
 federal bank regulatory agencies approved revised risk-based capital leverage ratio regulations capital framework.
 banking organizations.
 based 2010 capital framework standards dodd-frank act.
.
.
.
.
 revised capital framework changes regulatory capital effective january 1 2014.
changes include new measure common equity tier 1 regulatory capital ratio.
 definition 1 capital narrowed cet1 perpetual non- cumulative preferred stock.
 requirements.
 minimum capital ratio new capital buffers deductions regulatory capital.
 junior subordinated debt phased out regulatory capital.
 minimum cet1 ratio 4. january 1 2014 4. 5%. january 1 2015.
 tier 1 capital ratio increased. to 5. 6. 1 2015.
 minimum total capital ratio unchanged 8. 0%.
 supplemented capital conservation buffer january 1 2016. until. 5%. january 1 2019.
 introduces counter-cyclical capital buffer excessive credit growth.
 risk-weighted assets.
 federal reserve board satisfactory run changes effect second quarter 2014.
calculation rwas future quarters methodologies 2030 first quarter 2014 basel i capital framework 2030 remaining quarters iii advanced adjusted 2030 first quarter 2015 iii advanced standardized approach.
 goldman sachs 2013 annual report


entergy new orleans.
 financial has $ 53. 7 million unrecognized tax benefits tax settlement tax.
 note 3 financial statements tax benefits.
 planned capital investment estimate reflects business.
 expenditures vary regulatory constraints environmental compliance market volatility economic trends project plans capital.
 information long-term debt preferred stock maturities notes 5 6.
 wholly-owned subsidiary pays dividends earnings monthly.
 debt restrictions cash dividends distributions.
 internally generated funds cash debt preferred stock issuances.
 refinance redeem retire debt preferred stock prior maturity market conditions interest dividend rates.
 receivables money pool december 31.
 2011 2010 2009 2008
 9074 21820 66149 60093
 note 4 money pool.
entergy new orleans short-term borrowing authorization ferc through october 2013 $ 100 million.
 note 4 financial statements borrowing limits.
 long-term securities issuances limited authorized city council authorization extends through july 2012.
 entergy louisiana ninemile point unit 6 project filed lpsc application combined-cycle gas turbine facility.
 550 mw unit $ 721 million.
 entergy gulf states louisiana 35% capacity energy ninemile 6.
 55% entergy louisiana 25% gulf states louisiana 20% entergy new orleans.
 february 2012 city council purchase 20% ninemile 6 energy capacity.
 construction


services.
 financial statements 2014 table summarizes unrecognized tax benefits december 31.
 2014 2013
 balance year $ 70. $ 72. $ 84.
 additions tax positions 0. 3
 prior 1. 5. 11.
 reductions. -2
 reductions statute limitations. 6
. 7
 end year $ 47. $ 70. $ 72.
 2015 settled tax matters states reduced unrecognized tax benefits $ 13. million.
 2014 settled reduced tax benefits $ 1. 5 million.
 2013 settled appeals division committee taxation 2009 2010 tax years.
 reduced unrecognized tax benefits $ 20. 7 million.
 benefits 2015 2014 $ 30. 5 million $ 45. 6 million income tax rate future.
recognize interest penalties income taxes.
 recorded interest $ 1. 2 million 2015 liability penalties $ 0. 5 million interest $ 10. 3 million.
 2014 accrued interest $ 1. 5 million liability penalties $ 0. 5 million interest $ 18. 7 million.
 2013 accrued interest $ 1. 2 million liability penalties $ 0. 5 million interest $ 17. million.
 unrecognized benefits $ 0 to $ 10 million benefits increase decrease.
.
.
 liabilities tax adequate.
 assessment financial position cash flows.


table foreign currency translation adjustments 2011 2010 2009 income tax effect undistributed earnings $ 7632 2208 ) $ 10580 $ 10640 4144 17343 stock repurchase program dilution market repurchase agreements third-parties.
 expiration.
 net dilution subject business conditions cash flow requirements board directors.
 2010 amendment repurchase program time-constrained dollar-based.
 repurchase $ 1. 6 billion common stock fiscal 2012.
 $ 250. million stock repurchase agreement.
 no prepayments.
 2011 2009 repurchase agreements financial institutions prepayments $ 695. million $ 850. million $ 350. million.
. $ 250. million stock repurchase program remaining $ 600. million amended $ 1. 6 billion-constrained dollar authority.
enter agreements shares at guaranteed discount to average price common stock.
 enter transactions when discount higher than return cash prepayments.
 no commissions fees on repurchases.
 requirement for to return prepayment.
 deliver shares monthly intervals.
 parameters total amount contract trading days average vwap stock less agreed discount.
 2011 repurchased 21. 8 million shares average price $ 31. 81.
 2010 31. 2 million shares average $ 29. 19.
 15. 2 million shares average price per share $ 27. 89.
 prepayments classified as treasury stock balance shares delivered by december 2 excluded from earnings per share.
 no prepayments remained under agreements.
 november 27 $ 59. 9 million prepayments remained under agreements.
.6 billion stock repurchase program large financial institution prepayment $ 80. million.
 treasury stock balance sheets.
 $ 80. million systems financial statements.
 2010 2009
 beginning balance $ 7632 $ 10640
 foreign currency translation adjustments -4144 17343
 income tax earnings -2208 -6272
 ending balance $ 10580 7632 10640
 foreign currency translation adjustments 2011 2010 2009 tax $ 7632 2208 10580 10640 4144 17343 stock repurchase program return value minimize dilution repurchase shares open market agreements third-parties.
 authorization dilution expiration.
 net dilution subject business conditions cash flow requirements board.
third quarter fiscal 2010 board directors approved amendment stock repurchase program non time-constrained dollar.
 repurchase $ 1. 6 billion common stock fiscal 2012.
 affect $ 250. million stock repurchase agreement 2010.
 december no prepayments.
 2011 2009 repurchase agreements large financial institutions prepayments $ 695. million $ 850. million $ 350. million.
. $ 250. million stock repurchase program remaining $ 600. million amended $ 1. billion dollar authority.
 agreements guaranteed discount average price common stock.
 discount higher return prepayments.
 no commissions fees repurchases.
 no requirement institutions return prepayment.
 shares monthly intervals.
 parameters total amount contract trading days average vwap less discount.
2011 repurchased 21. 8 million shares average price $ 31. 81.
 2010 31. 2 million average $ 29. 19.
 15. 2 million shares average price per share $ 27. 89.
 prepayments classified treasury stock shares delivered december 2 2011 excluded earnings per share.
 no prepayments remained.
 27 2009 $ 59. 9 million prepayments remained.
 $ 1. 6 billion stock repurchase program agreement large financial institution prepayment $ 80. 0 million.
 classified treasury stock balance sheets.
 $ 80. million stock financial statements


biomet holdings.
 2015 10-k annual report financial unaudited results comparative include inventory step-up amortization assets interest expense debt merger.
 adjustments merger $ 90. 4 million merger compensation expense stock options removed net earnings 2015 recognized expense 2014.
 $ 73. million retention plan expense earnings expense.
 transaction costs $ 17. 7 million earnings expense business acquisitions 2014 2013.
 acquired etex holdings.
.
 portfolio bone void filler products.
 2013 acquired knee creations.
 joint preservation solutions.
 2013 normed medizin-technik.
 extremities trauma portfolios product development foot ankle hand wrist markets.
results operations acquired companies included in consolidated results assets liabilities recorded at estimated values in financial position excess purchase price recorded as goodwill.
 financial information required by not included financial position results.
.
 share-based compensation stock options restricted stock units.
 expense millions.
 years 2015 2014 2013
 total expense pre-tax $ 46. $ 49. $ 48.
 tax benefit.
 expense net tax $ 31. $ 33. $ 32.
 two equity compensation plans 2015 2009 stock incentive plan non-employee.
.
 no further awards granted under 2006 plan teamshare plan since 2009 shares merged into 2009 plan.
 stock options outstanding as december 31 2015.
 reserved maximum shares common stock for award.
 registered 57.9 million shares common stock plans.
 2009 plan nonqualified incentive stock options performance awards restricted stock rsus appreciation rights.
 compensation management committee determines grant date annual grants.
 grants first quarter year earnings announcements.
 2015 closing date grant date.
 stock plan non-employee directors stock options restricted stock rsus.
 issue shares unissued shares except.
 awards.
 december 31 2015 5. 6 million shares available future grants awards.
 stock options vest four years maximum life 10 years.
 vesting retirement first anniversary award criteria.
 expense stock options straight-line requisite service period estimated rates.
 one to four years.
 granted exercise price equal market price common stock date grant except local law.


minimum lease payments year ending 2015.
 2011 65.
 2012 47.
 2013 35.
 2014 27.
 2015 24.
 78.
 $ 278.
 lease commitments office equipment computer hardware payments $ 16. 3 million per year short-term.
 rent expense 2010 2009 2008 $ 116. 1 million $ 100. 2 million $ 117. million.
 rent expense $ 2. million $ 1. 8 million $ 17. million 2010 2009 2008.
 maintenance services.
 agreements vendors 2011 2017 computer data processing operations.
 obligation $ 554. 3 million december 31 2010.
 inflation rate foreign exchange rates new technologies data processing needs.
.
 purchase shares common stock.
 contribute 3% 15% base salary commissions.
shares purchased allocated employees contributions.
 company contributes amounts.
 recorded expense $ 14. 3 million $ 12. 4 million $ 14. 3 million years 2010 2009 2008.
 operations expense $ 0. 1 million $ 3. 0 million.
 employees covered 401.
 employees contribute 40% pretax annual compensation.
 matches 50% employee contribution 6% compensation.
 expense $ 23. 1 million $ 16. 6 million $ 18. 5 million years 2009 2008 participation 401 ( k ) plan.
 discontinued operations expense $ 0. 1 million $ 3. 9 million 2009 2008.
 national information services.
 financial statements 2014


stock performance $ 100 invested 11/17/11 10/31/11 index reinvestment dividends.
 2015.
 delphi automotive s&p 500 return automotive russell 3000 auto parts index american axle borgwarner. cooper tire rubber dana holding. delphi dorman products. federal-mogul. ford motor. fuel systems solutions. general motors. gentex. gentherm. genuine parts. johnson controls. lear. lkq. meritor. standard motor products. stoneridge. superior industries tenneco. tesla motors. goodyear tire rubber. tower international. visteon. wabco holdings.
 index november.
 delphi automotive plc. 418.
 s&p 500.
 automotive supplier group..
 declared paid dividends $. 25 share 2014 2015.
 2016 increased dividend $ 1. 16 share quarterly dividend $. 29 share payable february 29 17.


mamonal plant.
 $ 77 million purchase price goodwill amortized 32 years.
 termocandelaria power plant discontinued operations.
 table unaudited results acquisitions.
 pro forma results 2001 impact.
 amounts adjustments depreciation amortization purchase price interest expense year ended december 31 2000.
 $ 8137
 income before extraordinary items 833
 net income 822
 earnings per share $.
 diluted earnings per share.
 results assumptions estimates.
 indicative future results.
.
 discontinued operations january 1 2001 adopted.
.
 financial accounting impairment disposal long-lived assets.
.
 disposed held sale.
 businesses.
 power direct geoutilities termocandelaria valley telecommunications businesses.
 disposed abandoned held sale december 31 2001.
businesses disposed abandoned company determined adverse unfavorable market low tariffs affected value.
 businesses for sale including termocandelaria.
 plan sell immediate sale plan locate buyer.
 believes sell assets within one year unlikely changes.
 assets liabilities discontinued operations segregated balance sheets.
 majority long-lived assets termocandelaria business colombia.
 revenues $ 287 million $ 74 million $ 7 million.
 pretax losses $ 58 million $ 31 million $ 4 million.
 loss on disposal impairment write-downs net $ 145 million.


realty investment trust estate depreciation 2005 depreciation amortization.
 31 2002 450697000
 additions 68125000
 deductions retirements -4645000
 2003 514177000
 additions 82551000
 deductions -1390000
 balance 31 2004 595338000
 additions 83656000
 deductions
 balance 31 2005 663750000


biomet holdings.
 2018 10-k annual report incurred expenses events results excluded non-gaap financial measures.
 legal operational restructuring costs complying.
 matters.
 oversight independent compliance monitor july 2017.
 excluded costs include fees compliance monitor external legal counsel.
 tax effects items.
.
 calculated rate federal state taxes.
. statutory rates.
 2016 period negative effects tax accounts biomet merger.
.
 adjustments recognized.
 2017 tax act favorable adjustment reduction deferred tax liabilities revaluation 21 percent rate offset tax charges 2017 tax act.
 finalized estimates effects 2017 tax act guidance.
 tax authorities.
 tax adjustments 2018 tax rates deferred tax liabilities intangible assets-related accounting internal restructuring transactions offshore funds.
2017 tax adjustments lower rates 2017 tax act resolutions restructuring transactions.
 2016 adjustment deferred tax liabilities acquisition accounting resolution tax offset restructuring transactions offshore funds.
 13 diluted share 31 2018.
.
 net earnings.
.
 cash flows $ 1747. 4 million 2018 $ 1582. 3 million $ 1632. 2 million 2017 2016.
 increase cash flows additional cash flows sale accounts receivable lower acquisition expenses quality remediation expenses significant payments 2017.
.
 settlement program paid $ 30. 5 million settlement payments matters.
 decline operating cash flows 2017 additional investments inventory expenses quality remediation payments.
 offset $ 174. million cash flows sale accounts receivable.
 flows investing activities $ 416.million 2018 $ 510. million $ 1691. 5 million 2017 2016.
 investments product portfolio manufacturing logistics network.
 2018 cross-currency interest rate swaps.
 cash flows receipts termination swaps.
 2016 cash outflows acquisition holding business acquisitions.
 maturity debt securities.
 used cash debt reinvested additional debt.
 cash flows financing $ 1302. 2 million 2018.
 primary debt repayment.
 proceeds $ 749. million senior notes borrowed $ 400. revolving facility $ 1150.
 repaid.
 borrowed $ 675. million.
 repay $ 835.
 450.
 repaid $ 140. million.
.
 $ 1150 million net repayments senior notes term loans 2018.
2017 primary cash debt repayment 2016 financing acquisitions.
 net cash inflows $ 103. 5 million factoring programs not remitted.
 2018 cash outflows remitted $ 103. million collected $ 66. 8 million end.
 2016 similar cash flows.
 2019 borrowed additional $ 200. million.
 loan remaining $ 225. million.
 loan.
 february may august december 2018 declared dividends $ 0. 24 per share.
 future dividends approval adjusted market conditions.
 debt facilities restrict payment dividends.


realty investment trust estate depreciation 2009 depreciation amortization.
 december 31 2006 $ 740507
 additions 96454
 deductions -80258
 december 31 2007 756703
 additions 101321
 deductions
 december 31 2008 846258
 additions.
 deductions
 balance december 31 2009 $ 938087


adopted fasb interpretation.
 45 201d accounting disclosure requirements indirect guarantees indebtedness fiscal 2003.
 accounting pronouncements.
 lease agreements three office buildings san jose california residual value guarantees.
 agreements prior december 31 2002 disclosed note 14.
 indemnifications varying scope intellectual property infringement.
 costs significant unable estimate impact future results.
 commitments milestone retention payments acquisitions.
 purchases technology assets fiscal 2003 employee retention agreements $ 2. 2 million.
 required payments satisfaction conditions.
 indemnify officers directors events.
 indemnification covers lifetime.
 maximum future payments unlimited director officer insurance coverage exposure future amounts.
 estimated fair value indemnification agreements minimal.
partnership ventures provided indemnification to granite ventures independent capital firm partner events good faith.
 unable maximum future payments risk payments remote.
 accrue costs future obligations undetected bugs discovered after product installed.
 accrual fiscal 2003 relates to new releases creative suites products fourth quarter 2003.
 table summarizes activity balance at november 29 2002 november 28.
 2014 $ 5554 $ -2369 3185
 advertising expenses sales marketing expense.
 expenses fiscal years 2003 2002 2001 $ 24. 0 million  $ 26. 7 million $ 30. 5 million.
 foreign currency hedging instruments financial accounting standards.
.
 derivative instruments recognize assets liabilities measure fair value.
 gains losses


value restricted stock awards 2016 2015 2014 $ 25 million $ 31 million $ 17 million.
 periods 1 year to 10 years.
 summary future vesting.
 2021
 compensation costs less forfeitures recognized vesting period.
 grants paid class common shares.
 2016 2015 2014 recorded $ 66 million $ 52 million $ 51 million expense $ 9 million $ 15 million $ 6 million.
 december 31 2016 2015 compensation costs $ 133 million $ 154 million.
 defined contribution plan.
.
 compensation.
 bargaining agreements.
 total expense savings plan $ 48 million $ 46 million $ 42 million 2016 2015 2014.
.
.
 employees cash balance formula.
participant cash balance plan accrues benefits contribution credits age years service.
 interest credited account.
 vested after three years sum distribution employment retirement.
 employees accrue benefits career final pay formulas.
 subsidiaries kinder morgan canada.
 trans mountain pipeline.
. sponsors pension plans employees.
 include defined benefit pension plans supplemental unfunded arrangements contributory plans.
 benefits accrue career pay final pay formulas.
 costs contributions liability amounts not material consolidated income statements 2016.
 net costs $ 12 million $ 10 million 2015 2014.
.
 medical benefits retired grandfathered dependents life insurance.
 subsidiaries provide benefits current future retirees.
 subject to deductibles co-payment provisions


acquisition date first annual reporting period december 15 2008.
 new requirements statement.
 141 business combinations 2009.
 fasb issued financial accounting standards.
 noncontrolling interests financial statements.
.
 equity subsidiary parent.
 statement.
 accounting reporting standards deconsolidation.
.
 interests equity parent equity.
 consolidated net income parent noncontrolling interest separately.
.
 effective fiscal years december 15 2008 earlier adoption prohibited.
 statement.
 160 impact financial statements disclosures.
 statements based historical operating trends december 31 2007 reports.
 demand market conditions oil natural gas ngls 2008 similar 2007.
.
 amounts canadian operations converted.
 dollars average 2008 exchange rate $ 0. 98.
 dollar to $ 1. 00 canadian dollar.
january 2007 intent divest west african oil gas assets terminate operations equatorial guinea cote d 2019ivoire gabon.
 november 2007 agreement sell operations gabon $ 205. 5 million.
 finalizing purchase sales agreements obtaining government approvals remaining properties divestiture.
 optimistic complete sales first half 2008.
 west african revenues expenses capital reported discontinued operations 2008 financial statements.
 estimates exclude operations west africa.
 completed property acquisitions opportunity driven.
 estimates include financial operating effects property acquisitions divestitures 2008 west africa.
 oil gas ngl production 2008.
 combined production 240 to 247.
 92% reserves december 31 2007.
 estimates midpoint estimated range production.
.
.
.8 68 20
 canada 23 198 60
 international
 66 894 28


entergy louisiana.
 income decreased $ 18. million lower revenue operation maintenance expenses.
 increased higher revenue lower interest charges offset higher operation expenses higher depreciation amortization expenses higher taxes.
 revenues fuel-related purchased power expenses regulatory credits.
 analysis change net revenue 2004 2003.
 2003 net revenue $ 973.
 unbilled sales.
 deferred fuel cost revisions.
 refund provisions.
.
 summer capacity charges.
.
 2004 net revenue $ 931.
 unbilled sales variance decrease fuel price nuclear plant outages 2003.
 deferred fuel cost revisions revised unbilled sales pricing estimate.
 refund provisions revenue.
 volume/weather variance increase 620 gwh weather-adjusted usage offset milder weather sales residential commercial.
summer charges variance amortization 2003 deferred 2001 2004.
 august 2002 ended 2003.


software investment next-generation technologies offset cost-reduction.
 charges increased employee severance exit.
 sg&a expenses decreased lower marketing expenses information technology upgrades.
 gross margin operating margin decreased sg&a expenses r&d expenditures increased.
 backlog $ 647 million december 2007 $ 1. 4 billion 2006.
 customer demand limited product portfolio.
 shipped 159. million units 2007 27% 27 % decrease. 2006.
 shipments.
 shipments decreased asia emea north america increased latin america.
 worldwide increased 16%.
 worldwide market share 14% 8 points 2006.
 asp decreased 9%.
 driven by changes product-tier geographic mix.
 decreased 11% 2006 10% 2005.
 large customers.
 net sales five largest customers 42% net sales.
selling to carriers operators segment sells products through third-party distributors retailers 33% net sales.
 largest brightstar corporation.
.
 largest customers 54% 2007 net sales outside.
 largest international markets brazil china mexico.
 home networks mobility segment designs manufactures sells installs services digital video internet protocol video broadcast network interactive set-tops end-to-end video delivery systems broadband access infrastructure platforms data voice equipment to cable television telecom service providers wireless access systems.
 2008 net sales 33% consolidated net sales 27% ( 27 % 2007 21% 21 % 2006.
.
 net sales $ 10086 9164 1% ( 1 % 9% ( 9 %
 operating earnings 918 29% ( 29 %
results 20142008 2007 net sales increased 1% $ 10. 1 billion.
 increase reflects 16% 16 % increase home business offset 11% decrease networks business.
 increase driven 17% 17 % increase digital entertainment devices 19% 19 % increase shipments 18. 0 million units offset lower asp product shift pricing pressure.
 11% decrease networks driven embedded communication computing group divested 2007 lower sales iden  gsm cdma equipment offset higher umts equipment.
 1% 1 % increase driven higher sales latin america asia offset lower north america.
 increase latin america financial condition results operations


descriptions fair value methodologies u.
 international pension plan assets cash equivalents approximate fair value short-term maturity.
 equity securities valued closing market price.
 exchange level 1 assets.
 equity mutual pooled funds valued net asset value level 1.
 units valued per unit nav holdings level 2 assets.
 corporate government bonds valued quoted market prices comparable securities yields ratings.
 funds valued nav shares year end underlying investments.
 securities level 3 estimated fair value.
 bids credit quality default risk discount rates capital market liquidity.
 insurance contracts level 3 assets contract value estimated fair value.
 underlying investment discount rates.
 contributions benefit payments contributions 2018 were $ 68. 3.
 from contractual regulatory requirements.
 benefit payments unfunded due timing retirements.
 contributing $ 45 to $ 65 pension plans 2019.
 contributions driven by contractual regulatory requirements timing retirements.
 projected payments future service.
.
 165. 52.
.
.
.
 167.
 2024-2028 900. 336
 estimated payments based future events.
 payments vary.


.
.
 merck & co.
 global health care company innovative health solutions prescription medicines vaccines biologic therapies animal health consumer care markets joint ventures.
 operations four segments animal health consumer care alliances pharmaceutical.
 human health vaccine products joint ventures.
 health pharmaceutical products therapeutic preventive agents.
 drug wholesalers retailers hospitals government agencies health providers.
 vaccine products preventive pediatric adolescent adult vaccines.
 physicians wholesalers distributors government entities.
 animal health operations products veterinarians distributors producers.
 consumer care operations over-the- counter foot sun care products wholesale outlets club stores specialty channels.
 incorporated new jersey financial information.
 financial condition results operations.
statements data.
 product service marks owned licensed promoted distributed merck subsidiaries affiliates.
 owners.
 top pharmaceutical products animal health consumer care products.
 millions 2013 2012 2011
 total sales $ 44033 $ 47267 $ 48047
 pharmaceutical 37437 40601 41289
 januvia 4004
 zetia 2567
 remicade 2271 2076 2667
 gardasil
 isentress
 nasonex
 proquad/m-m-rii/varivax
 animal health 3362 3253
 consumer care 1894 1952
 revenues 1315 1665
 alliance corporate third-party manufacturing sales.
 october 1 2013 divested third-party manufacturing sales.


issue debt securities preferred stock common stock warrants share contracts units without limit.
 sold offerings size price terms determined sale.
 emerson financial structure flexibility strategic objectives.
 cash operations acquisitions growth.
 september 30 2017 $ 3. 1 billion cash held outside.
 primarily asia $ 1. 4 billion income taxes available repatriation.
 repatriated cash subject.
 federal income taxes credits.
 repatriates non.
 cash earnings provides.
 income taxes.
 funding requirements funds needs cash flow resources short long-term debt capacity backup credit lines.
 amounts due less 5 years long-term debt interest $ 5342 428 1434 966 2514.
 less than 1 1 - 3years 3 - 5years

 long-term debt interest $ 5342 428 1434 966 2514
 operating leases 536 171 206 80 79
 purchase obligations 746  71 14
 total $ 6624  1254 1711 1060 2599
 obligations inventory purchases.
 $ 2. 0 billion noncurrent liabilities note 19 pension postretirement plan liabilities deferred income taxes unrecognized tax benefits.
 notes 11 12 future benefit payments 14.
 exposed risk interest rates commodity prices uses derivative instruments forwards swaps options.
 derivatives trading.
 value.
 sensitivity analysis.
 interest commodity prices.
 dollar losses earnings value cash flows.
 limitations weaker.
 dollar earnings.
 lower commodity prices cost.
 notes 1 8 10.
accounting policies financial statements judgments assumptions estimates revenue expenses assets liabilities equity.
 note 1 accounting policies consolidated financial statements.
 judgments estimates.
 results differ estimates.
 revenue recognition recognizes revenue sale products records title risk loss customer collection assured.
 revenue recognized percentage-of- completion method.
 sales arrangements multiple elements judgment revenue.
 based vendor-specific evidence third-party evidence management estimate price.
 revenue recognized delivered elements performance control inconsequential perfunctory no unsatisfied contingencies.
 majority deliverables tangible products smaller portion installation service maintenance.
 criteria conditions recognizing revenue.


jpmorgan chase. annual report credit risk derivative receivables liquidity risk payables december 31.
 derivative receivables payables
 fair value $ 1565518 $ 1519183
 nettingadjustment 2013 receivables/payables
 cash collateral -65468 -39218
 carrying value consolidated balance sheets $ 80210 $ 60125
 december 31 2009 firm liquid collateral $ 15. 5 billion $ 11. 7 billion.
 receives delivers collateral transactions security exposure.
 counterparties collateral non-daily frequency.
 31 received $ 16. 9 billion delivered $ 5. 8 billion additional collateral.
 not netted against receivables payables collateral exceeded fair value exposure.
credit derivatives financial instruments value from credit risk debt third-party issuer reference entity allow transfer risk to protection seller.
 expose purchaser to creditworthiness seller payments when entity experiences credit event bankruptcy failure restructuring.
 seller receives premium risk underlying instrument to credit event.
 firm purchaser and seller of protection uses for purposes.
 risk manages portfolio by selling corporate debt obligations.
 exposure to entity offset with contract protection from.
 uses derivatives to mitigate credit risk receivables lending manage exposure to residential commercial mortgages.
 note 3 pages 156--- 173.
 uses different types of credit derivatives.
.
 credit default swaps reference credit or.
 purchases sells protection on single- name index-reference obligations.
single-name cds index cds contracts otc derivative contracts.
 default risk single reference entity credit risk broader credit markets.
&p 500 cds index portfolio cds entities.
 cds indices every six months credit markets.
 credit removed.
 cds referenced against portfolios customized exposure levels protection against $ 1 million credit losses $ 10 million portfolio.
 tranche cds.
 credit event neither party reference entity.
 protection purchaser seller for difference between face value fair value reference obligation recovery value.
 protection purchaser hold debt instrument entity amounts.
 credit-linked notes funded credit derivative issuer purchases credit protection referenced entity from investor.
 pays issuer par value pays periodic payments based on credit risk entity.
issuer repays investor par value note at maturity unless credit event.
 not obligated pays difference value


aes corporation financial statements 2014 require government acquire ownership interest future losses.
 long-lived assets recoverable written down estimated fair value $ 24 million.
 $ 66 million asset impairment expense.
 kelanitissa generation facility payments decline.
 impairment charges closer bot.
 asia generation segment.
 asset impairment expense year december 31 2010.
 southland huntington beach $ 200
 environmental policy december 31 2020 capital expenditure shutdown.
 huntington beach gas-fired generation facility impacted policy.
 asset impairment test determined fair value.
 carrying value $ 288 million exceeded fair value $ 88 million asset impairment expense $ 200 million year december 31 2010.
 north america generation segment.
tisza ii third quarter 2010 company offtaker tisza ii.
 indicator impairment september 30 2010.
 asset impairment test tisza ii asset recoverable.
.
 $ 160 million exceeded fair value $ 75 million asset impairment expense $ 85 million december 31 2010.
 deepwater 160 mw petcoke plant texas deteriorating market conditions petcoke power.
 incurred losses shut down.
 fourth quarter recoverable.
 fair value discounted cash flow analysis $ 79 million impairment expense recognized.
 north america generation reportable segment.


schedule page 6 hotels resorts. subsidiaries. real estate depreciation 31 2018 millions change depreciation amortization real estate years 2017 2016.
 31 2015 $ 5666
 572
 -159
 -130
 2016 5949
 563
 -247
 2017 6272
 546
 -344
 -101
 december 31 2018 $ 6373
 cost real estate federal income tax $ 10458 million december 31 2018.
 total cost excludes construction-in-progress properties.


corporation financial statements assets goodwill.
 allocation acquired.
 cash $ 108
 28
 intangible 216
 deferred income taxes 153
 goodwill 552
 non-current 69
 acquired $ 1126
 liabilities
 50
 deferred income taxes 52
 borrowings 129
 non-current
 234
 assets acquired $ 892
 intangible assets license realtor. trademark $ 116 million indefinite customer relationships tradenames listing service agreements $ 100 million amortized 15 years.
 acquired technology realtor. website $ 39 million amortized 4 years.
 recorded property equipment balance sheets.
.
 net operating loss $ 947 million $ million tax-effected.
 limitations code.
.
 taxable income.
allowances tax benefits recorded against nols $ 484 million $ 170 million tax effected purchase price.
 company expected $ 463 million net deferred tax $ 162 million.
 increased utilization $ 167 million 58 million tax-effected released allowances.
 reduced nols $ million section 382 limitation.
 june 30 2016 remaining $ 573 million $ 201 million tax-effected.
 utilization.
 taxable income expiration 2021.
 deferred tax assets non- deferred tax assets.


consolidated income statement item 8.
 net income 2012 $ 3. billion $ 3. 1 billion 2011.
 revenue growth 8 percent decline provision credit losses 16 percent increase noninterest expense.
 detail.
 table.
 income $ 9640 $ 8700
 margin 3. 94% 3. 94 %.
 volume interest-earning assets yields interest-bearing liabilities rates noninterest sources funding.
 2013 balance sheet analysis-to-year income accretion.
 increase net interest income 2012 rbc bank acquisition loan growth lower funding costs.
 purchase accounting accretion stable $ 1. 1 billion.
 net interest margin 3. 94%. 94 2012. 92%. 92 2011.
 increase weighted-average rate interest bearing liabilities 29 21 point decrease yield interest-earning assets.
decrease interest liabilities certificates redemption capital securities fhlb borrowings commercial paper.
 decrease yield interest assets lower rates loan yields securities.
 2013 net interest income percent $ 2. 4 billion decrease purchase accounting accretion $ 50 $ 60 million lower cash recoveries.
 income $ 400 million interest income.
 interest margin 2013 decline.
 noninterest $ 5. 9 billion 2012 $ 5. 6 billion 2011.
 increase residential mortgage loan sales revenue origination volume visa common shares service fees mortgage repurchase obligations.
 asset management revenue $ 1. 2 billion 2012. 2011.
 higher earnings blackrock.
 discretionary assets $ 112 billion stronger equity markets net flows sales performance.
 consumer services fees $ 1. billion.
decline lower interchange fees offset customer growth.
 dodd-frank limits interchange 2011 revenue $ 314 million 2012 $ 75 million 2011.
 offset higher rbc bank acquisition.
 corporate services revenue increased $. 3 billion percent $ 1. 2 billion 2012 $. 9 billion 2011 higher mortgage merger acquisition fees.
 treasury management finance fees commercial mortgage servicing.
.
 pnc financial services.


amortized over remaining lease term useful lives 1 to 15 years.
 intangibles long review impairment annually.
 completed annual impairment test second 2011 no impairment.
 fourth quarter changes business strategy reduction forecasted revenue.
 update goodwill impairment test no impairment.
 goodwill assigned reporting segments date acquisition.
 evaluate goodwill fair value carrying value.
 market approach income approach future cash flows.
 revenue costs.
 amortize intangible assets finite lives over estimated useful lives review impairment.
 monitor events.
 recoverability future cash flows.
 less recognize impairment loss excess carrying amount fair value.
 intangible asset impairment charges fiscal 2011 2010.
 assets amortized over estimated useful lives 1 to 13.
amortization economic benefits intangible asset consumed.
 average useful lives.
 life years
 purchased technology
 customer contracts relationships
 trademarks
 acquired rights technology
 localization
 intangibles
 useful life years software development costs capitalization sold begins technological feasibility completion working prototype no critical bugs release candidate.
 amortization begins software ready use.
 software development costs between completion prototype availability.
 capitalize costs customized software systems development stage.
 costs payroll expenses employees.
 capitalization begins preliminary project stage ceases project ready purpose.
 systems consolidated financial statements


financial statements 2014 risk-free interest rate based yield zero coupon united states treasury security maturity equal expected life option.
 volatility historical volatility.
 dividend yield calculated average stock price current quarterly dividend.
 assumptions historical patterns future exercise pattern.
 restricted stock shares awarded 2000 2005 held escrow released grantee satisfaction.
 grant date fair value based quoted fair market value common stock.
 compensation expense recognized escrow period.
 subject forfeiture if grantee leaves employment expiration.
 grants vest year 25% two years three years four years.
 table changes non-vested restricted stock awards may 31 2010 2009 average grant-date fair value.
 may 31 2008
 granted
 forfeited
 may 31 2009 762 42
granted 420 42
 vested -302 41
 forfeited -167 43
 non-vested 31 2010 713
 average 2008 $ 38.
 total 2009 2008 $ 12. 6. 2 4. 1 million.
 recognized compensation expense $ 12. 9. 5. 7 million.
 $ 21. million unrecognized compensation cost 2. 5 years.
 sale 2. 4 million shares common stock authorized.
 employees designate $ 25000 20% annual compensation.
 shares 85% market value last quarterly purchase.
 31 2010. million shares issued. 5 million future.


consolidated financial statements 2005 restructuring plan liabilities.
.
 january 2005 2014
 expensed 141
 payments
 foreign currency revaluation -2 2
 december 31 116
 expensed 155
 -141
 4
 december 31 134
 expensed 38
 -110
 december 31 $ 63
 unpaid restructuring liabilities accrued.


equity compensation plan information table presents equity securities as of december 31  2015.
 number securities issued options warrants rights weighted-average exercise price securities remaining future issuance excluding securities plans approved by 1424356 $ 33. 90 4281952 plans not approved.
 number securities issued rights weighted-average exercise price number securities remaining future issuance excluding
 plans approved by holders 1424356 $ 33. 90 4281952
 plans not approved
 1424356 $.
 includes grants under huntington ingalls industries.
 2012 long-term incentive stock plan approved 2 ingalls.
 plan approved.
 533397 subject to stock options 54191 stock rights granted under 2011 plan.
includes 35553 stock rights 10279 restricted 790936 performance rights 2012 plan target performance.
 weighted average price 533397 stock options.
 no awards plans approved security.
 13.
 relationships transactions director independence proxy statement 2016 annual meeting 120 days fiscal year.
 14.
 principal accountant fees services 2016 annual 120 days fiscal year.


2014 2013 2012 netherland sewell associates.
 prepared prior year reserves alba field.
 reports annual report form 10-k.
 team industry experience oil gas companies.
 senior advisor 35 years petroleum 15 years estimation.
 second team member 10 years 5 years.
 registered engineers texas.
 ryder scott audits reserves 2014 2013 2012.
 report.
 team lead 20 years industry experience international oil gas company.
 member spe oil gas reserves committee registered engineer texas.
 december 31 2014 728 increase 101 2013.
 table changes reserves 2014.
 627
 revisions estimates
 improved recovery
 purchases reserves
 extensions discoveries additions 227
 dispositions
 transfers -103
 end 728
additions undeveloped reserves 2014 included 121 eagle ford 61 bakken drilling.
 transfers included 67 26 bakken 1 oklahoma.
 costs 2014 2013 2012 $ 3149 million $ 2536 million $ 1995 million.
 102 mmboe booked extensions discoveries reliable technology.
 statistical analysis decline curve pressure rate transient analysis reservoir simulation volumetric analysis.
 reservoir continuity certainty criteria booking reserves.
 projects.
 728 mmboe undeveloped reserves 2014 19 percent volume projects five years.
 majority compression project.
 sanctioned 2004.
 timing driven by reservoir performance maximum production levels.
 exceeded expectations.
 estimates dry gas increased 10 percent between 2004 2010.
 compression project approval.
 government completion mid-2016.
alba reserves infill well approved 2013 drilled second quarter 2015.
 reserves north gialo development libyan sahara desert booked 2010.
 five years executed operator multi-year drilling program liquid handling gas recycling facilities.
 five years.
 civil unrest 2011 2013-2014 extended project duration.
 future costs crude oil 2015 2019 $ 2915 million $ 2598 million $ 2493 million 2669 million $ 2745 million.


pnc financial services group.
 2013 form 10-k 65 liquidity capital management risk two components.
 first potential loss funding requirements.
 inability operate businesses contingent liquidity.
 manage liquidity risk consolidated company level cost-effective funding obligations contingent liquidity.
 monitors liquidity early warning indicators liquidity stress.
 performs liquidity stress tests maintains contingency funding plan.
 severe liquidity stress simulation liquidity position pressure market.
 restricted access funding accelerated run-off deposits valuation pressure heavy demand obligations.
 parent company liquidity guidelines sufficient liquidity obligations.
 liquidity-related risk limits enterprise liquidity management policy.
 review compliance limits.
 monitor liquidity liquidity coverage ratio supervision regulation section item 1.
pnc bank calculate lcr daily december 31 2018 exceeded requirement 100%.
 information regulatory liquidity requirements item.
 largest source customer deposit base banking.
 stable low-cost funding.
 deposits increased to $ 267. 8 billion december 31 2018 from $ 265. 1 billion 2017 growth interest-bearing deposits noninterest-bearing deposits.
 funding sources balance sheet additional information.
 assets unused borrowing capacity liquidity.
 assets short-term investments-earning deposits $ 22. 1 billion securities sale $ 63. 4 billion.
 liquid assets fluctuates.
 assets $ 2. 7 billion securities trading securities pledged collateral.
 $ 4. 9 billion securities maturity pledged collateral.
 liquidity funding long-term debt short-term borrowings.
note 10 borrowed funds funding sources balance sheet borrowings.
 senior subordinated debt decreased 24 debt.
 billions 2018
 january 1 33.
 issuances.
.
.
 31 $ 30.


credit commitments lines table summarizes citigroup commitments millions.
.
 31.
.
 commercial letters credit $ 823  $ 4638 $ 5461 5000
 one- four-family residential mortgages 1056 2671
 open-end loans 10019 1355 11374 12323
 commercial real estate construction development 9565 1728 11293 11151
 credit card lines 605857 90150 696007 678300
 commercial consumer loan commitments 185849 102918 272655
 commitments contingencies 2560 761 3321 3071
 $ 815729 $ 203165 $ 1018894 985174
 credit standards.
 commitments floating interest rates fixed expiration dates fees.
 deferred amortized.
 commercial letters credit citigroup substitutes credit customer finance.
 evidence.
letter of credit drawn customer reimburse citigroup.
 one- to four-family residential mortgages confirmation citigroup seller sums purchase.
 revolving open-end loans secured one- four-family properties home equity lines credit.
 secured primary second home excess fair market value over debt first.
 commercial real estate construction land development commercial multifamily residential properties land development projects.
 secured-by-real-estate unsecured commitments undistributed loan proceeds construction progress payments.
 extensions credit funded total loans.
 credit cards.
 cancelable.
 commercial consumer loan commitments overdraft liquidity purchase loans third-party receivables note issuance revolving underwriting equity.
 other commitments contingencies regular-way reverse repurchase agreements transactions.
repurchase citigroup future.
 december 31 2018 2017 citigroup $ 36. 1 billion $ 35. billion unsettled reverse repurchase $ 30. 7 billion $ 19. 1 billion unsettled repurchase agreements.
 securities purchased borrowed sold repurchase loaned offsetting agreements note 11 consolidated financial statements.


mastercard financial statements 2014 share.
 december 31 2008 future minimum payments capital leases operating leases sponsorship licensing.
 2009 372320 40327 323558
 2010
 2011
 2012
 2013
 $ 715205 $ 51827 105998 557380
 capital leases interest $ 9483 net present lease payments $ 42343.
 december 31 2008 $ 92300 future minimum payments leases accrued.
 consolidated rental expense office space $ 42905 $ 35614 $ 31467 2008 2007 2006.
 lease expense automobiles computer equipment office equipment $ 7694 $ 7679 $ 8419.
 2003 mastercard purchased building kansas city missouri $ 23572.
building co-processing data center replaced lake success new york.
 mastercard kansas sale-leaseback building equipment $ 36382 purchase municipal bonds.
 agreements state local benefits.
 no gain loss.
 leaseback capital lease bargain purchase option ten-year lease april 1 2013.
 building equipment depreciated life.
 rent $ 1819 due annually equal interest municipal bonds.
 future minimum lease payments $ 45781.
 building subleased original five-year term renewal option.
 future minimum sublease rental income $ 4416.
.
 mastercard visa.
 settlement financial services.
.
 antitrust.
 ended litigation $ 2750000.
 mastercard visa judgment sharing agreement.
 share settlement $ 862500 paid november 2008.
morgan stanley paid mastercard $ 35000 2008.
 net $ 827500 litigation settlements 31 2008.


consolidated financial statements 2013 amounts millions share guaranteed obligations subsidiaries leases credit facilities.
 parent company guarantees lease obligations $ 410. 3 $ 385. 1 december 31 2012 2011 credit facilities $ 283. 4 $ 327. 5.
 non-payment subsidiary obligated pay.
 no material assets pledged guarantees.
 estimated future obligations payable cash december 31.
 2015 2016 2017
 deferred acquisition payments $ 26. $ 12. 9. 46. 18. 115.
 redeemable noncontrolling interests options 20. 5 43. 32. 5. 10 115.
 contingent acquisition payments 46. 5 56. 42. 52. 21. 12. 231.
 cash compensation expense. 7.
$ 45. $ 55. $ 41. $ 51. $ 21. $ 12. $ 228.
 entered acquisitions redeemable noncontrolling interests call options similar terms conditions.
 interests exercisable discretion owners as december 31 2012.
 estimated payments $ 16. total payments 2013 2014 exercised expired.
 current exercise price payable cash not redemption value.
 estimated amounts paid earliest date.
 note 6 payment structure.
 payments contingent performance targets conditions subject revisions.
 involved proceedings investigations inspections audits inquiries authorities.
 evaluate cases record liabilities losses legal proceedings outcome unfavorable loss.
 estimate loss litigation early.
outcome litigation governmental proceedings management believes outcome financial condition results operations cash flows.
 15 recent accounting standards impairment indefinite-lived intangible assets july 2012 financial accounting standards board issued amended guidance simplify impairment testing assets goodwill.
 permits entity assess qualitative factors asset impaired.


network corporation financial statements.
 acquisitions dbsd america terrestar transactions march 2 2012 fcc approved transfer 40 mhz aws-4 wireless spectrum licenses.
 march 9 2012 completed dbsd terrestar acquired satellite assets wireless spectrum licenses dbsd.
 fourth quarter 2011 mutual release settlement agreement issues resolved costs.
 $ 2. 860 billion.
 $ 1. 364 billion dbsd $ 1. 382 billion terrestar net payment $ 114 million sprint.
.
 recognized acquired assets liabilities fair $ 102 million uncertain tax position deferred revenue balance.
 third quarter 2013 uncertain tax position resolved $ 102 million reversed decrease tax benefit statements operations income year december 31 2013.
.
operations december 31 2013 blockbuster ceased operations.
 consolidated balance sheets cash blockbuster discontinued operations amounts continuing operations.
 2013 2012 2011 revenue discontinued operations $ 503 million $ 1. 085 billion $ 974 million.
 operations before $ 54 million $ 62 million $ 3 million.
 tax loss $ 47 million $ 37 million $ 7 million.
 december 31 2013 net assets discontinued operations.
 current assets $ 68239
 noncurrent assets 9965
 liabilities -49471
 long-term liabilities -19804
 net assets $ 8929