containerboard kraft papers.
 kapstone owns victory packaging packaging facilities. canada mexico.
 included financial results kapstone corrugated packaging segment since.
 september 4 2018 acquisition schl fcter print pharma packaging.
 leading provider differentiated paper packaging solutions german-based supplier leaflets booklets.
 acquisition automotive platform footprint.
 financial results consumer packaging segment.
 january 5 2018 acquisition assets plymouth packaging.
.
 on demand systems manufactured panotec italian manufacturer packaging.
 enhanced platform differentiation innovation.
 custom on-demand corrugated packaging sized.
 continuous board.
 westrock acquired plymouth equity interest panotec right distribute equipment.
 canada.
 integrated 60000 tons containerboard plymouth annually.
included financial results corrugated packaging segment since acquisition.
.
 acquisitions investment.
.
 unsuccessful mergers acquisitions investments divestitures.
.
 year 2018 net sales $ 18289. $ 16285.
 segment income $ 1790. $ 1707.
 differentiated paper packaging solutions.
 changing cost price environment.
 net sales $ 18289. million increased $ 2003. million. 3%.
 due kapstone acquisition higher selling price corrugated consumer packaging segments.
 offset absence recycling sales procurement lower volumes unfavorable foreign currency impacts decreased land development net sales.
 income increased $ 82. 6 million corrugated packaging.
kapstone operations selling price productivity offset lower volumes economic downtime cost inflation maintenance outage expense lower land development income.
 higher cost inflation corrugated consumer packaging offset fiber deflation.
 virgin fiber freight energy wage costs.
 generated $ 2310. 2 million net cash $ 1931. 2 million 2018.
 capital allocation


entergy mississippi.
 regulatory charges net income.
 increased under-recovery capacity charges.
 2003 2002 net revenue revenues fuel purchased power expenses regulatory charges.
 change revenue 2003 2002.
 2002 net revenue $ 380.
 base rates.
.
 2003 net revenue $ 426.
 increase base rates 2003.
 operating revenue expenses increased base rates $ 29. million fuel cost recovery revenues.
 offset decrease $ 35. million wholesale revenue decreased generation energy.
 fuel-related expenses decreased recovery purchased power costs market price power.
 regulatory charges increased over-recovery capacity charges grand gulf cessation grand gulf accelerated recovery tariff.
 operation maintenance expenses increased $ 6. million customer service support costs $ 3. million benefit costs.
offset voluntary severance program accruals $. million.
 higher ad valorem franchise taxes.
 expenses 2022 severance program accruals $. million $. million benefit costs.


five year $ 1350 million multi- currency senior unsecured credit facility maturing november 30 2012.
 $ 128. million outstanding december 31 2009 $ 1221. 2 million.
 increase line $ 1750 million.
 uncommitted credit facilities $ 84. 1 million.
 use excess cash borrow credit facility limits repurchase additional common stock $ 1. 25 billion program expires december 31 2010.
 $ 211. 1 million future repurchases.
 cash flows borrowings working capital capital expenditure debt service needs.
 additional capital.
 third parties future payments.
 obligations 2010.
 long-term debt $ 1127. 128. 998
 interest payments 1095. 103
 leases 134.
 purchase obligations.
 long-term income taxes 94.15. 22.
 long-term liabilities 234. 2013 81. 26. 126.
 contractual obligations $ 2719. $ 118. $ 423. $ 172. $ 2005.
 long-term income taxes 94. 56. 15. 22. liabilities 234. 81. 26. 126. obligations $ 2719. $ 118. $ 423. $ 172. 2005. accounting estimates results accounting policies methods.
 judgment.
 excess inventory instruments.
.
 reserves adjust inventory instruments value.
 evaluate stock levels patterns demand.
 work-in-progress inventory.
 obsolete discontinued items.
 changes valuation reserves market conditions offerings.
 taxes expense deferred tax assets liabilities reserves future taxes.
 subject income taxes.
 foreign jurisdictions.
 judgments estimates consolidated income tax expense.
estimate income tax expense liabilities assets by taxable jurisdiction.
 realization deferred tax assets future taxable income.
 evaluate deferred tax assets provide valuation allowances if deferred tax benefit realized.
 federal income taxes provided on income foreign subsidiaries remitted.
 calculation tax liabilities involves uncertainties complex tax laws regulations jurisdictions.
 subject to regulatory review audit time.
 record income tax provisions based facts circumstances tax laws settlement examinations tax.
 recognize tax liabilities financial accounting standards board guidance adjust liabilities when new information.
 resolution payment different.
 differences reflected as increases income tax expense.
 accruals for product liability claims established counsel based current information historical settlement information.
 actuarial model level accruals for claims.
.
2 0 0 9 job c55340 030000000|02/24/2010 00:22 valid no graphics color d|


agreements govern indebtedness acquisition contain restrictions us subsidiaries businesses.
 carefusion transaction contain restrict subsidiaries liens transact business merge consolidate sell convey assets.
 financial covenants maintain financial ratios.
 affected by events beyond control.
 failure default repayment obligations.
.
.
.
.
 executive offices in franklin lakes new jersey.
 2016 owned leased 255 facilities 19796011 square feet manufacturing warehousing administrative research facilities.
.
 facilities 7459856 square feet owned 2923257 square feet leased space.
 international facilities 7189652 square feet owned 2223245 square feet leased space.
 sales offices distribution centers throughout.
 operations at.
 international locations.
international marketplace facilities serve business segment multiple purposes manufacturing warehousing.
 manufacturing facilities some leased.
 table summarizes property information business segment.
 sciences medical mixed
 leased 19 75
 owned
 103
 square feet
.
 good construction physical condition operations utilized normal capacity.
.
 alabama arizona california connecticut florida georgia illinois indiana maryland massachusetts michigan nebraska new jersey north carolina ohio oklahoma south carolina texas utah virginia washington. wisconsin puerto rico.
facilities east africa denmark england france ghana hungary ireland kenya luxembourg netherlands poland russia saudi south africa spain sweden switzerland turkey emirates zambia.


amended $ 1. billion unsecured revolving credit facility maturity 2008 to 2010 interest rate libor. commitment fee. 2%. undrawn portion december 31 2005.
 entered $ 100. million unsecured loans due 2010 interest libor. 8%. december 31 2005.
 eight-year $ 225. million unse loan libor. 75%. amended 2005 interest rate. december.
 liquid yield option 2122 zero coupon convertible notes unsecured bonds yields maturity 4. 875%. due 2021.
 issued $ 381. $ 391. principal amount maturity $ 1000.
 convertible. 7152. 6675 shares common stock market price.
 conditions december 31 2005 2004.
february 2 2005 redeem liquid yield option 2122 notes may 18 2006 zero coupon notes cash.
 holders 2122 2011 may 18 2009 2014.
 purchase cash common stock.
 2005 converted $ 10. 4 million $ 285. million. million 9. million shares common stock.
 redemption $ 182. 3 million 2122.
 common stock issuance 4. 5 million shares.
 2005 prepaid $ 297. million term loan variable rate unsecured term loan.
 1996 $ 264. million capital lease splendour seas 1995 $ 260. million legend seas.
 2005 paid $ 335. 8 million purchase options lease.
 interest rate commitment fee vary debt rating.
 unsecured senior notes debentures not redeemable prior maturity.
debt agreements maintain minimum net worth charge ratio limit debt to capital ratio.
 compliance covenants december 31 2005.
 schedule annual maturities long-term debt five years.
 2006 600883
 2007 329493
 2008 245257
 2009 361449
 2010 687376
 $ 137. million value zero coupon convertible notes december 31 2005 2009.
 holders purchase notes value $ 161. 7 mil may 18 2009.
 calculated 2005.
 pay cash common stock.
.
 forward sale agreement.
 purchased. million shares common stock $ 45. 40 per share.
 $ 249. 1 million recorded equity stock.
 sale contract matured february 2006.
 investment bank purchased shares.
 received 218089 additional shares.
 recorded equity first quarter 2006.
employee stock purchase plan since january 1 1994 facilitates purchase 800000 shares common stock.
 offerings quarterly.
 pur- chase price equal 90% market prices new york stock exchange first last.
 14476  13281 21280 royal caribbean cruises ltd.


contents financial statements.
 legal proceedings.
.
 safety disclosures.
.
 common stock trades nasdaq market 201cmktx.
 closing price february 16 2012 closing price $ 32.
 41 holders.
 dividend policy quarterly dividend fourth quarter 2009.
 2010 2011 paid dividends $ 0. 07 $. 09 share.
 january 2012 approved quarterly dividend $ 0. 11 per share march 1 2012.
 future payment dividends discretion board directors.
 business conditions financial results capital requirements legal regulatory restrictions.
 recent sales unregistered securities.
 common equity matters issuer purchases equity securities.
 january 1 march 31 $ 24.
 april 1 june 30.
 july 1 september 30.
 october 1 december 31.
2010
 january march 16. 13.
 april june 17.
 july september. 12.
 october december 31 20. 93 16.


$ 19 million expenses 2011 2010 remaining unallocated.
 financed acquisition $ 1. billion $ 1. billion unsecured notes 61 million shares common stock.
 stock options converted. million shares common stock.
 note 8.
 assets liabilities fair values.
 liabilities.
 working capital 348
 property equipment software 297
 intangible assets
 1800
 trademarks 890
 technology
 noncurrent assets 344
 long-term debt 346
 liabilities 360
 deferred tax 1021
 assets acquired 2167
 goodwill 2765
 transferred
 cash equivalents short-term investments receivables assets accounts liabilities.
 deferred contract costs long-term investments.
 unfavorable lease obligations deferred contract revenues.
current assets $ 31 million deferred tax $ 30 million liabilities $ 7 million $ 1. billion.
 customer relationships amortized 12 years.
 technology asset amortized 7 years trademarks indefinite.
 goodwill excess acquisition cost assets synergies benefits combining hewitt aon future benefits.
 goodwill not amortized not deductible tax.
 estimate fair value judgments estimates assumptions.


westrock company financial statements 2018 2017 net losses $ 698. 4 million $ 673. 7 million carryforward.
 majority expire 2020 2038 portion indefinite.
 tax values losses $ 185. 8 million $ 182. 6 million 2018 2017 valuation allowances $ 161. 5 million $ 149. 6 million.
 state tax credit carryforwards $ 64. 8 million $ 54. 4 million.
 expire 5 10 years credits carried forward indefinitely.
 valuation allowances $ 56. 1 million $ 47. 3 million.
 uncertainty taxable income.
 valuation allowances deferred tax assets 2018 2017 2016.
 balance $ 219. $ 177. 100.
 50. 24
.
.
 end fiscal $ 229. $ 219. $ 177.
fiscal 2018 2017 mps acquisition.
 adjustments 2016 sp fiber acquisition.
 earnings foreign subsidiaries repatriation provide taxes.
 unremitted earnings differences subsidiaries indefinitely reinvested.
 taxes.
 september 30 2018 estimate outside difference subsidiaries approximately $ 1. 5 billion.
 purchase accounting adjustments undistributed earnings equity components.
 taxes reversal differences.
 distribution dividends dispositions incremental.
 income taxes adjustment foreign tax credits withholding taxes jurisdictions.
 determination unrecognized deferred tax liability remaining undistributed foreign earnings practicable.


tower corporation subsidiaries financial statements 2014 $ 10. 08 $ 7. 05 $ 6. 32 per share.
 assumptions pricing model july 1 2005 2013 december 31.
 risk-free interest rate 3. 22%. 22 %. 40%. 17%. 40%. 23%. 23 %.
 option grants. 25 years 4
 volatility stock 29. 6%. 6 % 75. 3%. 79. 2%. 2 80. 6%. 6 % 86. 6%. 6 %
 volatility stock mexico south america
 dividends
 option exchanges 2004 issued employees 1032717 options price $ 11. 19 per share.
 voluntary option exchange program 2003 accepted 1831981 shares common stock exercise price $ 10. 25.
program offered to full part-time employees excluding executive officers directors grant surrender new options two shares three shares exercise surrendered option.
 no options granted employees between cancellation new grant atc mexico stock option plan maintains mexico subsidiary.
 options officers employees directors consultants.
 limits common stock 360 shares capital structure.
 2002 granted options purchase 318 shares common stock to officers employees.
 options issued exercise price $ 10000 per share.
 market independent appraisal.
 fair value options $ 3611 per share black-scholes option pricing model.
 outstanding options exercised in march 2004.
 no options outstanding december 31 2005.
. south stock option plan.
 options officers employees directors consultants.
atc south america plan limits common stock 6144 shares 10. 3%. interest fully-diluted subject adjustment changes capital structure.
 2004 granted options purchase 6024 shares officers employees including.
 gearon hess 6. 7%. 1. 6%. interest.
 options issued exercise price $ 1349 per share.
 fair market value issuance determined board directors independent appraisal.
 fair value options 2004 $ 79 per share black-scholes option pricing model.
.
 interest


financial statements.
 group.
 guarantees securities gs finance corp. wholly subsidiary.
 guaranteed obligations goldman sachs.
. bank usa execution clearing.
 exceptions.
 2008 contributed subsidiaries gs bank usa.
 reimbursement losses credit-related.
.
 gs bank usa collateral interests subsidiaries illiquid assets.
.
 guarantees obligations subsidiaries transaction-by.
.
 maximum payout subsidiary guarantees guaranteed obligations. liabilities not disclosed.
.
 dividends share $ 2. 2014 $. 2013 $ 1. 2012.
.
 dividend $ 0. 60 common share march 30.
 share repurchase program common equity.
share repurchase program open-market purchases rule 10b5-1 amounts timing determined by firm capital position by market conditions price trading volumes common stock.
 confirmation federal reserve board.
 table common stock repurchased 2014 2013 2012.
 repurchases 31. 39.
 cost per share $ 171. $ 157.
 cost repurchases $ 5469 $ 6175 $ 4637
 employees remit shares cancel restricted stock units options tax withholding.
 2014 2012 employees remitted 174489 161211 33477 value $ 31 million $ 25 million $ 3 million cancelled. million. million million total value $ 974 million $ 599 million $ 1. 44 billion.
 cancelled 15. 6 million stock options $ 2. 65 billion.


.
 mine safety disclosures.
 registrant 2019s common equity issuer purchases stock listed new york stock exchange.
 transfer agent registrar broadridge corporate issuer solutions.
 1342 brentwood new york 11717 844 318-0129. 720 website. e-mail shareholder.
 31 october 2018 5391 holders common stock.
 cash dividends paid quarterly.
.
 board directors determines dividends timing financial condition.
 dividend information 2018 2017.
.
.
.
 fourth.
.
 purchases equity securities 2011 board directors authorized repurchase $ 1. billion common stock.
 expiration date.
 securities exchange act 1934.
 no purchases 2018.
 30 september 2018 $ 485. 3 million share repurchase authorization remained.
 purchases company discretion funds growth opportunities.


fair value recognize effective cash flow hedges.
 year december 31 2000 earnings $ 2371 preferred stock dividends $ 16266 redemption pca 20448% preferred stock.
 october 13 2003 pca quarterly cash dividend $ 0. 15 per share $. 60 annually common stock.
 first quarterly dividend $ 0. paid january 15 2004.
 dividends common stock 2000 - 2002.
 long-term obligations short-term current maturities.
.
 financial condition results operations audited financial statements notes.
 april 12 1999 pca acquired containerboard corrugated products business pactiv corporation tenneco packaging. subsidiary.
 division not entity.
 significant operations.
 accounted historical values assets.
 purchase accounting applied change control participating veto rights pactiv.
operations 2004 historical results 2003 millions 2003.
 $ 1890. $ 1735. 5 $ 154. 6
 before interest taxes $ 140. $ 96. 9 $ 43.
. 6 29. -121. 8 121. 92.
 before taxes 110. 9. 24 135.
 taxes -42. 2 42. 10. 5. 52.
 income loss $ 68. 7 4 14. $ 83.


citigroup capital resources estimates common equity tier 1 capital total capital ratio requirements.
 rules 3% ( 3 % ) surcharge 10% 11. 5%. 13. 5%.
.
 comply 4% ( 4 % 1 leverage ratio 5% ( 5 % supplementary leverage ratio.
 tables capital tiers risk-weighted assets risk-based capital ratios quarterly adjusted average total assets leverage exposure ratios implementation.
 december 31 2015 2014.
 capital components ratios basel iii millions.
 common equity tier 1 capital $ 146865 136597
 capital 164036 148066
 total capital 186097 198655 165454 178413
 risk-weighted assets 1216277 1162884 1292605 1228488
 common equity tier 1 capital ratio.12. 07 %. 63%. 63 %. 57%. 57 % 11. 12%. 12 %
 1 capital ratio 13. 49 14. 11. 45.
 15. 30 17. 80.
 equity 1 capital. 07%. 07 %. 63%. 63 %. 57%. 57 %. 12%. 12 % 13. 49. 52 millions dollars 2015 2014 quarterly adjusted average assets $ 1724710 $ 1835637 leverage 2317849 2492636 1 leverage ratio 9. 51%. 51 % 8. 07%. 07 % leverage ratio. 94 2014-01 investments.
 credit reserves losses tier 2 capital. 6%. 6 % risk-weighted assets standardized losses. 25%. 25 % excess deducted.
2015 2014 citi 2019s equity tier ratios basel iii approaches framework.
 2019s capital ratios non-gaap financial measures.
 information progress capital standards.
 1 leverage ratio.
 supplementary leverage ratio denominator.


employer payroll tax costs.
 contributions due by march 15 benefits deductions.
 arrangement accounted contingent consideration.
 pre-2009 business combinations former accounting standard contingent consideration.
 additional purchase price.
 december 31 2013 company accrued $ 20. million liabilities tax compensation deductions 2013 tax year.
 cash contribution first quarter 2014.
.
 net income.
 weighted-average common shares.
 2013 denominator impacted common shares issued underwriters' exercise.
 partially reflected 2013 denominator.
 reflected 2014 denominator.
.
 dilutive effect restricted stock options coworker stock purchase plan units mpk plan units reflected in denominator diluted earnings per share.
 reconciliation basic diluted shares.
 2014 2013 2012
 weighted-average shares 170.156. 145.
 dilutive securities 2.
 weighted-average shares diluted 172. 158. 145.
 insignificant common shares excluded diluted earnings 2014 2013 2012 anti-dilutive effect.
.
 deferred compensation plan 10 2010 purchase $ 28. 5 million senior debt restricted debt unit plan unfunded nonqualified deferred compensation plan.
 total rdus 28500.
 december 31 2014 28500.
 vested daily three january 1 2012 2014.
 rdus vested.
 no rights underlying debt.
 compensation principal interest.
 credits $ 28. 5 million senior notes redemption premium equivalents.
 interest interest earned march 2010 maturity october 12 2017.
 interest 2010 2011 deferred until 2012 paid semi-annually.
company used ipo proceeds borrowings $ 324. 0 million senior subordinated notes outstanding august 1 2013.
 amended rdu plan increase retentive value.
 converted cash pool redemption.
 added $ 0. 1 notes financial statements


&gs 2019 operating profit decreased $ 60 million 8% 2014.
 attributable lower risk retirements reserves international offset severance recoveries restructuring 2013 $ 20 million.
 adjustments net profit $ 30 million lower.
 net sales decreased $ 479 million 5%.
 lower net sales $ 495 million decreased volume $ 320 million completion.
 offset higher net sales $ 340 million start-up programs.
 2019 operating profit decreased $ 49 million 6% 6 % 2013.
 lower operating profit $ 55 million programs offset higher operating profit $ 15 million start-up.
 adjustments comparable.
 backlog increased 2014 due international awards.
 extensions.
 offset declining activities warfighter support command control programs defense budget reductions.
backlog decreased 2013 lower orders eram higher sales declining activities smaller programs downturn federal technology budgets.
 expect 2019 net sales decline 2015 low competitive environment disaggregation delays offset increased sales acquisitions.
 operating profit decline 2015 driven volume intangible amortization 2014 acquisition activity margins lower 2014.
 provides air defense systems tactical missiles air-to-ground weapon systems logistics technical services fire control mission operations engineering manned unmanned ground vehicles.
 programs pac-3 thaad launch rocket system hellfire jassm javelin apache sniper ae low altitude navigation.
 operating results.
 net sales $ 7680
 operating profit
 margins 17. 7%. 4%. 8%.
 backlog year-end $ 13600
sales decreased $ 77 million.
 sales $ 385 million technical services volume $ 115 million tactical missile fewer deliveries high artillery


short-term cash needs interest rates policy choices.
 majority cash invested mutual funds.
 treasury securities.
 government securities.
 exposure risk minimal.
 pension plan funded minimum contribution maximum tax deduction.
 $ 14. 1 million contribution 2011 funding goal.
 contribution return assets discount rate.
 deferred tax assets $ 18. 3 million $ 23. 8 million.
 unrealized losses stock compensation accrued expenses.
 long-term deferred tax liabilities $ 7. 8 billion $ 7. 6 billion 2010 2009.
 purchase intangible assets.
 long-term deferred tax asset $ 145. 7 million.
 unrealized capital loss brazil bm&fbovespa.
 threshold.
 partial valuation allowance $ 64.4 million unrealized capital loss gains.
 long-term deferred tax asset brazilian taxes $ 125. 3 million unrealized capital loss investment bm&fbovespa.
 full valuation allowance $ 125. 3 million-likely-than-not threshold loss.
 valuation allowances $ 49. 4 million additional unrealized capital losses investments.
 tax $ 19. 3 million deferred tax asset foreign net operating losses swapstream.
-likely than-not threshold losses.
 $ 19. 3 million deferred tax assets reserved.
 clearing firm deposit performance bond collateral.
 risk.
 collateral.
 cash bonds guaranty fund contributions balance sheets.
 deposits.
 balances bonds guaranty fund contributions fluctuate.
 december 31.
 performance bonds $. 5834
 guaranty fund contributions.
-margin arrangements 79.
 delivery. 34.
 4038. 5981.


table reports shareholders 2019 equity 2010.
.
 $ 19667
 income 3108
 dividends -443
 unrealized appreciation 742
 repurchase -303
 movements tax 203
 balance end $ 22974
 shareholders 2019 equity increased $ 3. 3 billion due net income $ 3. 1 billion unrealized appreciation investments $ 742 million.
 short-term debt reverse repurchase agreements $ 1 billion.
 $ 300 million borrowings credit facility.
 five-year loan repaid 2010.
 increased $ 200 million $ 3. 4 billion.
 2010 issued $ 700 million. 6 percent senior notes due 2015.
 obligations.
 2008 $ 450 million rate loan agreement 2013.
 swap transaction interest rate.
 2010 repaid exited swap.
 december 2008 ace entered $ 66 million dual tranche floating interest rate loan agreement.
 first tranche $ 50 million three-year loan due december 2011 floating interest rate.
 swap transaction interest rate.
 december 2010 repaid exited swap.
 second tranche $ 16 million nine-month loan repaid september 2009.
 $ 300 million due 2030 entity owned us.
 debt instruments subsidiaries.
.
.
 trustees independent trustee.
 compensation.
 full $ 309 million securities balance sheet liability.
 note 9 d consolidated financial statements.
 common shares par value 30. 57 each december 31 2010.
 annual general meeting may 2010 shareholders approved par value reduction $ 1. 32 per share base annual divi dend.
 payable four installments


table shows expected return assets.
 pension postretirement plans.
 2007
 return 7. 75%. 75 % 8. 0%. 0 % 0% %
 5. 42 13. 2%. 2 % 14. 7%. 7 %
 pension expense 2008 reduced by return $ million $ 883 million.
 2007 2006 reduced $ million $ 384 million.
 actual returns higher 2007 2006.
 2008 2007 rates.
 selected citigroup-specific analysis long-term bond yield.
.
 december 31 2008 discount rate 6. 1%. 1 % pension. 0%. postretirement.
 2007 discount 6. 2%. 2 %. 0%.
 2006.
 pension plan remeasured freeze benefits non-grandfathered participants january 1 2008.
-specific discount rate pension plan 5. 86%.86 % rounded 5. 9%.
 discount rates foreign pension postretirement plans selected corporate bond rates developed.
 local bond rates premium risk.
 information pension postretirement plans discount rates expense-point change note 9 financial statements page 144.
 adoption sfas 158.
 december 31 2006 recorded after-tax charge equity $ 1. 6 billion 2019 pension postretirement liabilities write-off prepaid asset unamortized gains losses prior service costs transition assets/liabilities.
 accounting policies estimates page 18 notes 26 27 28 financial statements pages 192 202 207.


consolidated financial statements 161 bancorp december 31 2012 $ millions ranges financial valuation technique weighted-average commercial loans sale $ 9 appraised cost sell. 0%. commercial industrial loans 83 default rates mortgage loans 46 construction loans 4 discounted cash flow prepayment speed 0 - 100% 16. 1%. 26. 9%. 9 % discount rates. 18. 0%. % 10. 5%. 5 % 11. 7%. 7 %.
 valuation unobservableinputs-average
 commercial loans sale $ 9 sell. 0%. %
 commercial industrial loans
 mortgage loans
 construction loans
 discounted cash flow prepayment speeddiscount rates 0. 18. 0%. 16. 1%.1 % adjustable 26. 9%. 9 % fixed 10. 5%. 5 % adjustable 11. 7%. 7 %
 appraised value
 loans 2013 2012 bancorp transferred $ 5 million $ 16 million measured fair value inputs.
 fair value adjustments $ 4 million $ 1 million based collateral classified level 3 valuation hierarchy.
 fair value adjustments loans $ 3 million $ 12 million.
 level 3.
 adverse change value fair value.
 accounting department determines procedures valuation loans comparison.
 monthly review.
 appraisals updated real estate valuation group third party appraisals.
 finance department loan appraisal values values vintages.
 2013 2012 recorded nonrecurring impairment adjustments mortgage construction loans.
commercial loans $ 1 million credit weaknesses review impairment.
 bancorp considers collateral credit quality guarantor liquidity loan structure.
 collateral fair value based on collateral classified level 3 valuation.
 carrying value fair value impairment loss recognized.
 adverse change value collateral fair value.
 losses in table.
 commercial credit risk chief officer fair value estimates commercial loans.
 mortgage interest rates increased 2013 recognized recovery temporary impairment servicing rights.
 impairments portfolio carrying value adjusted to fair value.
 msrs trade.
.
 estimates fair value using discounted cash flow models prepayment speed assumptions discount rates weighted average lives classification level 3.
 note 11.
 secondary marketing department treasury department valuation methodology.
marketing treasury accounting risk management assumptions discounted cash flow model.
 two external valuations from third parties.
 bancorp participates peer surveys assumptions msr valuation.
 2013 2012 recorded nonrecurring adjustments commercial residential real estate properties oreo.
 losses due to declines real estate values.
 losses include $ 19 million $ 17 million charge-offs properties $ 26 million $ 57 million negative fair value adjustments.
 fair value amounts based on appraisals


ordinary shares of aon plc eligible for deposit clearing dtc system.
 merger arrangements with dtc to indemnify for stamp duty sdrt assessed depository.
 obtained ruling from hmrc stamp duty sdrt consequences reorganization sdrt paid.
 dtc cease depository clearing for.
 if dtc not eligible for for listing.
 securities exchange inclusion in s&p 500.
 disruption trading price.
.
.
.
.
 offices in locations.
 leased premises.
 corporate headquarters at 8 devonshire square london 225000 square feet lease 2018.
 own building at pallbergweg 2-4 amsterdam netherlands ( 150000 square feet ).
 additional leased properties occupied square footage expiration.
.
property occupiedsquare footage leaseexpiration dates
 overlook point locations lincolnshire illinois 1224000
 2601 research forest woodlands texas 414000
 city park gurgaon india 413000
. randolph chicago illinois 396000
 2300 discovery orlando florida 364000
 water new york 319000
 7201 hewitt associates charlotte north carolina 218000
 locations lincolnshire gurgaon acquired hewitt 2010 dedicated hr solutions segment.
.
 2011 lease 190000 square feet london united kingdom.
 contingent construction.
 2015 devonshire.
 2013 lease 479000 square feet gurgaon india.
.
 2014 2015 expiration leases.
 difficulty negotiating renewals space unavailable.
believe facilities adequate maintained.
 unused space sublet third parties depending demands office space.
 see note 9 "lease commitments financial statements ii 8 lease commitments december 31 2013.
.
.
 incorporate note 16 "commitments contingencies 8.


product offerings include active index strategies.
 returns market risk profile.
 fundamental research quantitative models.
 index strategies returns index securities.
 strategies include non-etf index products ishares etfs.
.
.
 institutional non-etf index assignments large low fee rates.
 exaggerate net flows index products revenues earnings.
 2016 equity aum totaled $ 2. 657 trillion net inflows $ 51. 4 billion.
 $ 74. 9 billion ishares core emerging market equities.
 offset by active non-etf index net outflows $ 20. 2 billion $ 3. 3 billion.
 blackrock 2019s fee rates fluctuate aum mix.
 half equity aum tied international markets higher fee rates.
.
.
blackrock 2019s equity fee rates revenues.
 ended 2016 $ 1. 572 trillion net inflows $ 120. billion.
 inflows $ 16. 6 billion diversified insurance.
 inflows $ 59. 9 billion led core ranges emerging market high yield corporate bond funds.
 non-etf index net inflows $ 43. 4 billion driven liability-driven investment solutions.
 team manages balanced funds bespoke mandates diversified client base equities bonds currencies commodities risk management.
 long-only portfolios alternative investments tactical asset allocation overlays.
 changes 2016.
.
 asset allocation 185836 176675
 target date/risk 125664
$ 376336 $ 4227 22520 -8076 395007
 futureadvisor include ishares.
-asset inflows demand advice $ 13. 2 billion inflows institutional clients.
 contribution plans contributed $ 11. 3 billion 2016 target risk.
 retail outflows $ 9. 4 billion world allocation strategies.
 strategies 2022 asset allocation balanced products 45% aum.
 equity fixed income alternative components.
 risk diversification.
 flagship products global allocation multi-asset income fund.
 target risk products grew 11% 2016 inflows $ 13. 5 billion.
 institutional investors 94% aum defined contribution plans 88% aum.
 driven investments lifepath retirement income.
 risk return.
 fiduciary management services management.
services 2019 staff trustees strategies risk return objectives.


.
 software licenses long- term contracts network communication office maintenance services.
 expended $ 7. 2 million $ 5. 3 million $ 2. 9 million obligations 2016 2015 2014.
 future expenditures.
 2017 14134
 2018 10288
 2019 9724
 2020 2617
 2021
 $ 37415
.
 restructuring workforce realignment.
 incurred $ 3. 4 million restructuring charges $ 2. million net tax.
 expects additional charges $ 10 million - $ 15 million first quarter 2017.
.
 settlement.
-sum payment $ 4. 7 million.
 charges expense 2016 statement income.
 claims withdrawn release claims.
.
 subject investigations claims legal proceedings commercial disputes labor employment tax audits infringement intellectual property.
company resolution pending matters expected results cash flows financial position.
 subject uncertainties possible unfavorable resolution could affect results.
 indian subsidiary has service tax audits pending.
 could incur tax charges liabilities approximately $ 7 million.
 tax issues similar to case microsoft corporation.
 vs commissioner service tax favorable ruling to microsoft.
 no assurances on ruling impact.
 uncertain when service tax matters concluded.
 french subsidiary taxing authority rejected 2012 research development credit.
 contested decision.
 favorable outcome could incur charges approximately $ 0. 8 million.
 unfavorable outcome could $ 3. 8 million research development credits for 2013.
 no assurances on timing outcome.


.
.
 long-lived assets non-cash impairment charge $ 4. million second quarter 2008 excess machinery.
 separate consolidated statement operations.
 no change depreciation expense remaining assets estimates.
.
 one-year warranty sequencing genotyping gene expression systems.
 estimated warranty expenses sales.
 cost product revenue.
 extended maintenance contracts cost revenue.
 changes reserve warranties january 2006 december 2008.
 balance january 1 2006 751
 1379
 repairs replacements -1134
 december 31 2006
 4939
 repairs replacements
 december 2007 3716
 13044
 repairs replacements -8557
 december 28 2008 $ 8203
.
 convertible senior issued $ 400. million. convertible notes due 2014 option additional $ 50. million.
net proceeds offering discount expenses $ 390. 3 million.
 company. 625%. interest per annum principal notes payable semi-annually february 15 august 15.
 interest payments $ 1. 3 million $ 1. 2 million february 2008 august 15 2008.
 notes 15 convertible into cash shares common stock $ 0. 01 per share conversion rate 45. 8058 shares per $ 1000 notes conversion price $ 21. 83 per share five price per note less than 97% last reported sale price common stock quarter 30 2007 last sale price 20 30.
 financial statements 2014


compares expeditors international washington. 5-year shareholder return stock s&p 500 nasdaq.
 transportation index data nasdaq.
 assumes investment common stock indexes dividends $ 100 12/31/2012 12/31/2017.
 return assumes reinvestment dividends.
 5-year return. s&p 500.
 expeditors international. $ 100. $ 113. 52 $ 116. 07 $ 119. 142. $ 176. 08
 standard's 500 index. 132. 39 150. 152. 170. 84
 nasdaq transportation. 133. 76 187. 65 162. 193. 79 248.
 nasdaq industrial transportation. 141. 171. 91 218
 stock price performance not indicative future price performance.
 financial data 2016 2013..
 6920948 6098037 6616632 6564721 6080257 revenues1.
 2319189 2164036 2187777 1981427 1882853 earnings attributable shareholders.
 430807 457223 376888 348526 diluted earnings attributable shareholders 2. 69 1 1 earnings attributable shareholders share
. 1 dividends common share
. 80 64 cash dividends
 150495 145123 135673 124634 123292 cash used share repurchases.
 478258 629991 550781 261936.
1448333 1288648 1115136 1285188 1526673.
 3117008 2565577 2870626 2996416 shareholders 2019.
 1991858 1844638 1691993 1868408 2084783 shares.
 181666 182704 190223 196768 206895 shares.
 179247 181282 188941 196147 205995-gaap revenues services.
 management reconciliation revenues revenues.
 forward-looking statements securities litigation reform act 1995 annual report fiscal year december 31 2017 statements section securities act 1933 securities exchange act 1934.
 forward-looking statements.
 approval authorized executive officer securities commission.
statements preceded words phrases likely result expected expect continue anticipated "provisional "probable future identify 201cforward-looking statements private securities reform act 1995.
 statements qualified by reference discussion item 1a factors results differ statements.
 risks item 1a not exhaustive.
 reference to other sections report additional factors impact expeditors' business financial performance.
 expeditors operates competitive complex changing global environment.
 new risk factors emerge not possible management predict all assess impact business results differ forward-looking statements.
 guarantee results.
 shareholders expeditors with securities analysts against policy to disclose non-public confidential commercial information.
 shareholders assume expeditors agrees with statement report analyst.
expeditors policy against financial forecasts confirming others.
 reports securities analysts projections not responsibility expeditors.


.
 sysco insurers self-insured workers compensation liability claims.
 depositing funds insurance trusts issuing letters credit.
 acquisitions placed funds escrow sellers operating results contingencies resolved.
 escrowed funds acquisitions $ 1700000 released fiscal 2006 $ 800000 disbursed sellers.
 restricted cash balances.
 july 1 2006 2 2005
 funds deposited insurance trusts $ 82653000 $ 80410000
 escrow funds acquisitions
 102274000 101731000
.
 manages debt portfolio fixed floating rates interest rate swaps.
 trading speculative.
 2003 2004 2005 interest rate swap agreements fair value hedges.
 effective changes interest rates.
 shortcut method.
derivative instruments hedging activities no need hedges.
 interest expense debt adjusted payments hedge agreements.
 fair value swaps carried asset liability balance sheet hedged debt adjusted.
 no fair value hedges outstanding july 1 2006 2 2005.
 received termination swap agreements $ 5316000 $ 1305000 2005 2004.
 no terminations.
 increase carrying value debt.
 amortized reduction interest expense.
 march 2005 sysco forward-starting interest rate swap $ 350000000.
.
 cash flow hedge interest payments 2005 interest rate.
 fair value swap july 2 2005 $ 32584000 reflected accrued expenses consolidated balance sheet loss tax.
 september 2005. sysco settled $ 350000000 swap.
 paid cash $ 21196000 fair value swap.
amortized interest expense 30-year term debt unamortized balance reflected loss net tax income.
 sysco enters purchase agreements fuel electricity commodities.
 agreements meet derivative qualify purchase sale exemption accounting.
 company exemption not recorded fair value.
 046000000 17:22 valid


equity securities 2013 2018 repurchased 57669746 shares common stock average price $ 143. 70.
 table common stock repurchases fourth quarter 2018 shares purchased average price paid plan maximum.
 oct. 1. 31 6091605 $ 158. 32831024
. 1. 30 3408467. 3402190 29428834
. 1. 31 3007951. 26428119
 12508023 $ 153. 04 12490632
 purchased 17391 shares delivered employees stock option prices excess tax withholding obligations.
 january 1 2017 board authorized repurchase 120 million shares common stock december 31  2020.
 repurchases open market transactions.
 management discretion timing amount.


aes corporation financial statements december 31 2016 2015 2014 table summarizes redeemable stock subsidiaries balances.
 ipalco common stock $ 618 $ 460
 colon quotas
 ipl preferred stock 60
 stock
 redeemable stock subsidiaries $ 782 $ 538
 similar common stock.
 31 partner increased ownership 25%. 9%. capital contributions $ 106 million.
 adjustments earnings dividends temporary equity shares redeemable.
 $ 60 million preferred stock december 31 2016 2015 five series.
 annual dividend requirements $ 3 million.
 redeemable option issuer $ 100 $ 118 per share.
 holders majority ipl board directors not paid dividends four quarters.
 redemption issuer temporary equity.
had $ 18 million preferred stock outstanding december 31 2015 three series issued dp&l subsidiary.
 redeemable option per-share redemption prices $ 101 $ 103 per share plus dividends.
&l articles incorporation stockholders board directors dividends arrears four quarterly dividends.
 redemption not issuer temporary equity.
 september 2016 shares redeemable.
 adjustment $ 5 million redemption value $ 23 million.
 october 2016 dp&l redeemed shares.
 rights ceased.
 2015 cdpq purchased 15% aes investment. subsidiary 100% for $ 247 million option invest additional $ 349 million 2016 17. 65%. equity stake.
april 2015 cdpq invested $ 214 million ipalco interest 24. 90%.
 $ 84 million taxes costs equity.
 additional paid-in capital reduction retained earnings 377 million value.
 no gain loss net income not sale.
 march 2016 cdpq $ 134 million ipalco interest 30%.
 additional paid-in capital reduction retained earnings $ 84 million value.
 june 2016 contributed additional $ 24 million ipalco no impact ownership.
 adjustments shares redeemable.


.
 november 1  2010 redeemed $ 400 million 6. 65%. notes due january 15  2011.
 redemption $ 5 million early extinguishment charge.
 receivables securitization facility december 31 2010 recorded $ 100 million secured debt receivables securitization facility.
.
 variable interest entities lease transactions.
 created lease transactions equipment facilities no other activities assets liabilities outside lease transactions.
 right purchase assets fixed prices.
 benefits not.
 maintain operate assets contractual obligations.
 no control fair value leased assets.
 power direct activities control economic performance.
 obligation absorb losses right receive benefits primary beneficiary consolidate fixed-price purchase options.
 future minimum lease payments totaled $ 4. 2 billion december 31  2010.
.
locomotives freight cars.
 december 2010 2009 $ 2520 million $ 901 million depreciation $ 2754 million $ 927 million capital leases.
 charge income depreciation depreciation expense.
 future lease payments year capital leases.
 2011 613 311
 2012
 2013
 2014
 lease payments $ 4921 $ 2693
 interest
 payments
 majority capital lease payments locomotives.
 rent expense leases one month $ 624 million 2010 $ 686 million 2009 $ 747 million 2008.
 variable rental expense term.
 contingent rentals sub-rentals not significant.


goldman sachs group.
 subsidiaries financial statements values exclude counterparty netting collateral netting not representative firm 2019s exposure.
 counterparty netting reflected level receivable payable balances.
 cross-level netting.
 derivative assets positive liabilities negative.
 table level 3 assets liabilities ranges averages medians level 3 derivatives.
.
 interest rates net $ -410 ( $ -381
 correlation 10 % to 95% 95 % 71%/79% % 86% 86 %/60%
 volatility bps 31 to 150 84/78 to 151 84/57
 credit net $ 1505 $ 2504
 correlation 28% ( 28 % to 84% 84 61%/60% 35% ( 35 % to 91% ( 91 % ) 65%/68%
credit spreads bps 1 to 633 69/42 to 993 122/73
 credit points 0 to 97 42/38 to 100 43/35
 recovery rates 22% 22 % to 73% 73 % 1% 1 % to 97% 58%
 currencies -181
 correlation 49% 49 % to 72% 72 % 25% 25 % to 70% 70 % 50%/55%
 commodities $ 47 73
 volatility 9 % to 79% 79 % 24%/24% 13% 13 % to 68% 68 % 33%/33%
 natural gas spread.
 oil spread.
 equities net
 correlation 36 % to 94% 94 50%/52% 39 % to 88% 88 %
 volatility 4% 4 to 72% 72 % 5% 5 % to 72% 72 %
table 2030 assets positive liabilities negative.
 ranges represent unobservable inputs valuation.
 averages arithmetic average not weighted by fair value financial instruments.
 average greater median below average.
 difference credit oil spread lower end range.
 ranges averages medians not representative fair value derivative.
 highest correlation interest rate not.
 ranges inputs represent uncertainty fair value level 3 derivatives.
 interest rates currencies equities credit commodities.
 fair value determined multiple valuation techniques.
 option pricing.
 level 3 balance encompasses.
 2030 correlation currencies equities cross- product correlation.
 natural gas spread million thermal units natural gas.
 oil spread per barrel oil refined products.
 firm 2019s level 3 derivative instruments 2030 correlation.
ranges correlation cover underliers product type. index across types. interest rate currency regions.
 cross-product correlation inputs complex instruments lower type.
 volatility.
 cover underliers markets maturities strike prices.
 equity indices lower single stocks.
 credit spreads upfront credit points recovery rates.
 cover underliers regions sectors maturities credit qualities.
 broad range ranges unobservable inputs.
 form


directors review.
 cbot directors proposed rule change business change committee three cbot two cme directors.
 actions interests company shareholders open outcry trading pricing decisions limited by rights members.
. unresolved staff comments applicable.
.
 global headquarters chicago illinois 20 south wacker drive.
 description key locations facilities.
 size 20 south wacker drive headquarters office space leased 2022 141 west jackson trading floor office space 550 west washington chicago office space leased 2023 new york 33 cannon street london office space leased 2019 leased 2026 annex data center chicagoland leased 2014 2017.
 initial lease expires 2022 options extend seven ten years.
 occupy 425000 square feet 141 west jackson complex.
north end property lease battery park city authority new york offices trading facility.
 building improvements landlord.
 lease payments receive rental income.
 occupy 350000 square feet north building.
 termination right first quarter 2012 2011.
 occupy space second quarter 2011.
 lease global office space partnered telecommunications carriers centers.
 facilities adequate operations additional space obtained needed.
.
 legal proceedings.
 contingencies consolidated financial statements page 96 group disclosure.
 location owned/leased lease expiration size squarefeet
 20south wacker drive chicagoillinois global headquarters office space leased
 141west jacksonchicago trading floor office space
 550west washingtonchicago leased
 york trading floor office space mixed
33cannon street london office space leased 2019 14000
 change london office leased 2026 40000 7
 annexdata centerchicagoland business continuity leased 2014 100000
 2017 50000
 business co-location owned/a 430000
 directors review.
 proposed rule change business change committee three cbot directors two cme directors.
 company shareholders outcry trading pricing decisions limited rights members.
.
.
 headquarters chicago illinois 20 south wacker drive.
 description key locations facilities.
owned expiration size feet 20 south wacker drive chicago illinois headquarters office leased 2022 141 west jackson chicago trading floor office space 550 west washington chicago leased 2023 225000 new york trading floor office 500000 33 cannon street london leased 2019 london 2026 annex data center 2014 2017-location 430000.
 initial lease expires 2022 options extend seven ten years.
 occupy 425000 square feet 141 west jackson complex.
 north end property ground lease battery park city authority new york offices trading facility.
.
 payments rental income.
 occupy 350000 square feet north end building.
 termination right first quarter 2012.
 occupy second quarter 2011.
lease office space partnered telecommunications carriers place data cabinets data centers.
 facilities adequate operations additional space.
.
.
 contingencies consolidated financial statements page 96 group litigation disclosure.


.
 dividends subsidiaries affiliates millions.
 2003 2002 2001
 subsidiaries $ 807 $ 771 $ 1038
 affiliates 43 44
.
 guarantees letters credit limited obligations commitments terminated future events.
 december 31 2003 $ 515 million 55 agreements less $ 1 million up to $ 100 million.
 $ 147 million credit enhancements non-recourse debt $ 38 million equity projects.
 december 31 2003 $ 89 million 9 agreements less $ 1 million to $ 36 million.
 pays letter of credit fee. 5%. to.%. per annum amounts.
 $ 4 million surety bonds december 31 2003.


oil corporation financial statements.
 norwegian properties october 31 2008 sale properties offshore acreage heimdal north proceeds $ 301 million pretax gain $ 254 million.
 october sale 50 percent ownership ptc.
 proceeds $ 625 million pretax gain $ 126 million.
 $ 75 million redemption return investment.
 properties december 17 properties ireland proceeds $ 180 million-closing adjustments.
.
 assets liabilities sale.
 noncurrent assets 103
 267
 liabilities
 199
 261
 assets sale
.
 2006 sold russian oil exploration production businesses khanty-mansiysk western siberia.
 received $ 787 million preliminary working capital closing adjustments $ 56 million transaction value $ 843 million.
 $ 832 million.
gain sale $ 243 million $ million operations.
 taxes reduced capital loss.
 goodwill $ 21 million russian assets reduced gain.
 adjustments price 2007 gain $ 8 million 13.
 russian businesses discontinued.
 revenues $ 173 million pretax income $ 45 million.


use foreign currency contracts reduce risk exchange rate fluctuations intercompany transactions inventory purchases european canadian subsidiaries.
 currency contracts risk fluctuations pound sterling.
 enter derivative instruments speculative trading.
 contracts receive.
 dollars canadian dollars. per $ 1.
 dollars euros. euros pounds.
 value contracts canadian subsidiary $ 51. 1 million maturities 1 month european subsidiary $ 50. million maturities 1 month.
 contract fluctuations pound sterling. 5 million $ 13. 6 million maturity 1 month.
 contracts not cash flow hedges changes fair value recorded statements.
 values contracts liabilities $ 0. 7 million $ 0. 6 million december 31 2011 2010 included accrued expenses consolidated balance.
 note 10 fair value measurements.
amounts foreign currency exchange rates contracts.
 year ended december 31 thousands 2011 2010
 unrealized foreign currency exchange rate gains losses $ -4027 ( ) $ -1280 ( 1280 ) 5222
 gains losses -2638 ( 2638 ) -261 ( 261 )
 unrealized derivative losses -31 ( 31 ) -809 ( 809 )
 gains losses 1696 3549 -4412 ( )
 currency contracts institutions investment grade credit ratings exposed credit losses non-performance.
 credit risk limited unrealized gains.
 monitor credit quality risk counterparty default minimal.
 currency contracts minimize impact fluctuations financial.
 cost overhead costs affect results.
 high inflation gross margin selling administrative expenses increase.


tax expense.
 millions 2017 2016
 operating income $ 5272 $ 4570 4664 5287 4674 4695
 nonoperating income
 before taxes $ 5240 $ 4462 $ 4595 5255 4566 4625
 tax $ 270 $ 1290 1250 $ 1539 1352 1312
 tax rate. 2%. 2 %. 9%. 9 %. 2%. 3%. %. 6%. 6 %. 4%. 4 %
 income $ 5272 4570 4664 5287 4674 4695 nonoperating income before taxes $ 5240 4462 4595 5255 4566 4625 tax expense $ 270 1290 1250 1539 1352 1312 tax rate. 2%. 9%. 2%. 3%. 6%. 4%. 4 % non-gaap financial measures.
net income.
 tax expense 2017 reflects $ 1. 2 billion benefit 2017 tax act.
 tax rate affected foreign jurisdictions income earned.
 jurisdictions lower tax.
 united kingdom channel islands ireland netherlands.
.
 income tax expense $ 106 million tax revaluation deferred tax assets $ 1758 million noncash tax benefit $ million repatriation undistributed foreign earnings profits.
 noncash expense $ 16 million tax changes $ 173 million tax benefits stock-based compensation awards $ 151 million new accounting guidance.
.
 adjusted effective tax rate 29. 3%. 2017 noncash deferred tax revaluation benefit $ 1758 million $ 16 million.
 repatriation tax expense $ 477 million excluded one-time.
.
tax expense 2022 noncash benefit $ 30 million revaluation deferred income tax liabilities benefit $ 65 million nonrecurring items resolution outstanding tax matters.
 tax rate 29. 6%. 2016 excluded noncash benefit $ 30 million.
.
 2022 noncash benefit $ 54 million revaluation deferred tax liabilities 2022 benefit $ 75 million nonrecurring items losses tax structure resolution outstanding tax matters.
 tax rate 28. 4%. 2015 excluded net noncash benefit $ 54 million.
 consolidated statement financial condition excluding assets collateral securities lending agreements consolidated sponsored investment funds.
 balance sheet exclude assets liabilities interests stockholders equity cash flows.
views adjusted balance sheet non-gaap financial measures economic presentation company assets liabilities advocate non-gaap measures information.
 separate assets liabilities collateral agreements maintained by blackrock life subsidiary registered life insurance assets funding pension contracts.


realignment expenses.
 years 31 2009 2008 2007 millions.
 adjustment impairment acquired assets obligations $ -1. 5. -10 4.
 consulting professional fees 11. 13.
 employee severance retention share compensation acceleration 19.
 information technology integration.
 research development 38.
 vacated facilities.
 facility employee relocation 5. 7
 distributor acquisitions.
 litigation matters 23.
 contract terminations 9.
.
 acquisition integration realignment $ 75. 3 $ 68. 5 $ 25.
 adjustment impairment acquired assets obligations liabilities.
 consulting professional fees third-party integration consulting tax compliance logistics human resources severance termination benefits.
 legal fees acquired businesses acquisition.
2009 commenced global realignment initiative business opportunities strategic priorities.
 initiated changes work force eliminating positions increasing.
 300 employees affected.
 recorded $ 19. million severance employee termination costs.
 benefits provided policies ongoing.
 costs accrued recorded current liabilities.
 majority paid 2009.
 information technology integration non- capitalizable costs acquired businesses.
 in-process research development charges 2008 abbott spine.
 2007 endius orthosoft.
 2009 ceased using leased facilities recorded expense remaining lease payments sublease recoveries wrote-off assets.
 relocation.
 consolidated european distribution centers new center eschbach.
 acquired.
 foreign-based distributors.
 incurred costs acquisition integration.
 litigation matters.
 recognize expense potential settlement legal matter loss.
2009 matters avoid litigation costs.
 contract termination costs agreements acquired companies.
 sales distribution agreements.
 cash equivalents investments maturity three months less equivalents.
 carrying amounts valued cost fair value.
 certificates deposit cash deposits maturities three months certificates.
 amounts valued cost.
 inventories lower cost market first-in first-out.
 property plant equipment cost less accumulated depreciation.
 lives ten to forty years buildings three to eight years machinery equipment.
 maintenance repairs expensed.
 review property equipment impairment carrying value recoverable.
 impairment loss future cash flows less carrying amount.
 impairment loss carrying amount fair value.
.
2 0 0 9 consolidated financial statements c55340 043000000|02/24/2010 01:32 valid no graphics color d|


financial statements 2014 average grant-date share awards 2007 2006 $ 45 $ 36 .
 total $ 4. 1 million $ 1. 7 million $. 4 million.
 recognized compensation expenses restricted stock $ 5. 7 million $ 2. 7 million $ 1. 6 million 2008.
 $ 15. 2 million unrecognized compensation cost stock 2. 9 years.
 sale 2. 4 million shares common stock authorized.
 employees designate $ 25 thousand 20% annual compensation purchase stock.
 prior october 1 2006 shares 85% market value.
 2006 85%.
 may 31 2008. million shares issued 1. million future issuance.
 average grant-date fair value share $ 6  $ 8 $ 8 2008 2007 2006.
 after 2006 based 15% discount purchase date.
purchases 2006 value share stock plan estimated grant black-scholes valuation model average assumptions.
 risk-free interest rates 4. 93%. % 72%.
 volatility 37.
 dividend yields. 19%. 19 %. 34%. %
 3 risk-free interest rate based yield zero coupon states treasury security maturity option.
 volatility historical volatility.
 dividend yield calculated average stock price preceding year quarterly dividend.
 purchase price market value life three months fair value share.


caribbean cruises ltd.
 financial statements 2014.
 stock-based employee compensation four plans awards officers directors key employees.
 1990 1995 incentive 2000 2008 equity plan.
 1990 1995 terminated march 2000 february 2005.
 2000 2008 incentive non-qualified stock options stock appreciation rights restricted stock units 13000000 shares 2000 5000000 2008 equity plan.
 more 500000 shares.
 options stock units december 31 2009 installments four five years.
 options stock units forfeited director before.
 options granted not less fair value expire ten years.
 employee stock purchase plan 800000 shares common stock.
 offerings quarterly.
 purchase price equal 90% market prices new york stock exchange last.
 common stock 65005  36836 20759 issued-average price $ 12.$ 20. 97 $ 37. 25 2009 2008 2007.
 contributed 10086 shares common stock maximum 806880 shares trust.
 2009 amended.
 768018 shares distributed future distributions issued chief executive officer.
 2009 $ 16. 8 million.
 $ 16. 2 million marketing selling administrative $. 6 million payroll.
 2008 $ 5. 7 million.
 $ 6. 4 million $ 8. 2 million marketing selling $. 7 million payroll.
 2007 $ 19. million.
 $ 16. 3 million marketing selling $ 2. 7 million payroll.
 fair value stock option grant estimated black-scholes option pricing model.
 amortized vesting period graded-vesting method.
 volatility historical implied volatilities.
risk-free interest rate based united states treasury coupon issues remaining term expected option life grant.
 calculated historical experience options.
 estimate forfeitures pre-vesting rates experience.
 2008 increased forfeiture rate 4%. stock 20% employee retention rates.
 dividend yield. 1 9%.
 stock price volatility 55. 31. 4%. 4 % 28.
 risk-free interest rate 1. 8%. 8 2. 8% 4. 8%.
 option life 5 years


rm&t segment marathon use derivative instruments price risk crude oil feedstock excess inventories margins sales price spread refined crude oil.
 instruments risk crude oil.
 natural gas options price risk 60% natural gas purchases refinery first 2004 50% second quarter 2004.
 instruments protect excess refined crude oil lpg inventories.
 lock margins future price sales non-retail.
 future crack spreads.
 opportunities commodity markets.
 derivative gains losses rm&t segment income two years summarized 2003.
 mitigate price risk -112 -95
 protect excess inventories
 margin fixed price sales
 crack spread values
 trading
 derivative losses $ $ -124
 losses market prices increase offset gains physical commodity transaction.
 derivative gains occur market prices decrease offset by losses commodity transaction.
 marathon derivative instruments convert long-term gas sales contract to market prices.
 contract annual quantity gas 2008.
 derivative instruments convert shorter contracts to market prices purchased gas resale.
 derivative gains losses $ 19 million $ ( 8 million $ ( 29 ) million 2003 2002 2001.
 gains losses $ ( 7 million $ 4 million $ ( 1 ) million 2003 2001.
 subject to basis risk commodity futures prices cash market price.
 natural gas prices based industry reference prices vary local.
 exchange contracts priced.
 price changes derivative commodity instruments hedge exposure basis risk.
 differences.
 risk.
 subject liquidity risk delays positions.
participants liquidity low exchange-traded transactions.


duke realty corporation report 2009 table summarizes transactions rsus excluding average restricted stock units.
 december 31 2008 401375 $ 29.
 granted 1583616 $ 9.
 vested $ 28. 39
 forfeited $ 12.
 december 31 2009 1683606 $ 12.
 compensation cost $ 7. 3 million $ 4. 9 million $ 3. million 2009 2008 2007.
 $ 6. million unrecognized compensation expense nonvested rsus 3. years.
 capital market risk.
 hedging arrangements.
.
 2007 interest swaps hedge $ 300. million debt offerings.
 cash hedges.
 2008 settled cash payment $ 14. 6 million.
 effectiveness test effective cash flow hedge.
paid settlement $ 700000 reclassified interest expense partial ineffectiveness.
 net $ 13. 9 million recognized interest expense hedged debt may 2008.
 remaining unamortized $ 9. 3 million.
 august 2005 $ 300. million cash flow hedges swaps $. million debt.
 swaps hedge accounting.
 september 2007 issuance $ 300. million unsecured notes terminated hedges.
 settlement $ 10. 7 million recognized earnings interest expense.
 unamortized $ 8. 2 million.
 ineffective portion hedge insignificant.
 effectiveness evaluated hypothetical derivative method.
 no derivatives december 31 2009.


hologic  inc.
 financial statements considered eitf issue.
 95-8 contingent consideration shareholders acquired enterprise purchase additional purchase price.
 fourth quarter 2007 paid $ 19000 former suros shareholders first annual earn-out increase goodwill.
 additional consideration second annual earn-out.
 increased goodwill suros acquisition $ 210 29 2007.
 liability $ 550 eitf 95-3 termination employees.
 $ 400 liability paid balance second quarter 2008.
 increase offset decrease goodwill change valuation assets liabilities.
 no other changes purchase price allocations form 10-k year september 30 2006.
 intangible assets acquisition identified valued.
 customer relationship trade name developed technology know how in-process research development identifiable values.
 customer relationship.
 trade name product names.
technology marketable products products.
 estimated $ 4900 purchase price research development projects suros 2019 disposable products.
 projects stages completion include next generation handpiece site marker technologies.
 fiscal 2008.
 deferred income tax liability acquired assets fair value adjustments inventory not deductible offset net operating loss.
 goodwill excess purchase price over assets.
 acquisition aeg  biolucent r2 suros goodwill synergies strength workforce.
 information consolidated results operations suros acquisitions 2006 adjustments amortization intangible assets increase interest expense acquisition financing adjustments tax effects.
 revenue $ 524340
 net income
 per share.
.


part ii item 8.
 pension benefit plans sfas 158 2006 financial accounting standards board issued sfas 158 amendment fasb statements.
 87 88 106 132.
 schlumberger recognize funded status. fair value assets benefit obligation defined benefit pension postretirement plans december 31 2006 consolidated balance sheet adjustment income.
 unrecognized actuarial losses prior service costs benefit plans status 106.
 recognized net postretirement cost accounting policy.
 sfas 158 effect consolidated income december 31 2006 affect results future.
 158 balance sheet december 31 required measure fair value assets benefit obligations fiscal year-end balance sheet.
 schlumberger uses measurement date december 31 benefit plans.
effect applying sfas 158 balance sheet december 31 2006 schlumberger 2019s postretirement benefit plans table millions.
 deferred taxes $ 191 $ 163
 long-term $ 186 $ $ 413
 assets $ 173
 accounts payable accrued liabilities $ 3925 -77 $ 3848
 postretirement benefits $ 713 $ 323 $ 1036
 loss $ -879 $ -290 $ -1169
 sfas 158 schlumberger liabilities increased 2% 2 % equity decreased 3%.
 impact assets insignificant.
 employees hired prior october 1 2004.
 benefits based years service career-average pay.
 policy amounts actuarial accrued liability tax legal funding cash flow.
 benefits earned.


gulf states.
 financial discussion.
 2002 net revenue $ 1130.
 17.
 fuel write-offs 15.
 wholesale revenue 10.
 base rate decreases.
 gain.
 refund provisions.
.
 2003 net revenue $ 1110.
 higher electric sales.
 517 gwh residential commercial.
 offset industrial usage 470 gwh loss industrial customers.
 1% net revenue.
 deferred fuel costs $ 8. million written. million plan.
 increase wholesale revenue sales volume municipal co.
 base rate decreases june 2002 january 2003.
 2003 rate decrease $ 22. million minimal net income reduction nuclear depreciation decommissioning expenses.
 gain $ 15. million louisiana 1988 nelson units 2.
gulf states lpsc amortization recoverable fuel deferred gain.
 revenue provisions.
 $ 440. 2 million fuel recovery higher fuel rates louisiana texas.
 expenses $. 1 million market prices gas.
 maintenance expenses decreased 2022 severance program accruals $ 22. 5 million decrease $ 4. 3 million nuclear material labor costs reduced staff.


table presents results institutional client services.
 millions 2011 2010
 fixed income currency commodities 9914 9018 13707
 equities
 commissions fees
 securities services
 equities
 net revenues 18124 17280
 expenses
 pre-tax earnings $ 5644 $ 4443 $ 6802
.
 revenues reinsurance $ 1. billion $ million $ 827 million 2010.
.
 revenues institutional services $. billion 2012 5% higher 2011.
 fixed income currency commodities $. billion higher 2011.
 revenues mortgages higher.
 credit products interest rate solid higher.
 offset lower commodities currencies.
 concerns improved tighter credit spreads less.
 revenues equities $. 21 billion unchanged.
revenues securities services higher 2011 gain $ 500 million sale hedge fund administration business.
 equities execution revenues higher higher cash products increased client activity.
 offset lower commissions fees market volumes.
 global equity prices lower volatility.
 net loss credit spreads $ 714 million $ million $ 281 million 2012 gain $ 596 million $ 399 million $ 197 million 2011.
 institutional services market concerns uncertainties positive developments.
 central bank actions funding risks.
.
 data unemployment housing.
 tighter credit spreads higher equity prices lower volatility.
 concerns global economy political uncertainty client risk aversion lower activity.
 uncertainty financial regulatory reform.
 revenues fixed income currency.
 operating expenses $ 12.billion 2012 3% lower 2011 lower brokerage fees impairment charges litigation regulatory.
 pre-tax earnings $ 5. 64 billion 27% higher 2011.
.
 institutional services $ 17. 28 billion 21% lower 2010.
 fixed income currency commodities $ 9. 02 billion 34% lower 2010.
 market concerns uncertainty volatile markets wider credit spreads risk.
 revenues lower declines mortgages credit products.
 sachs 2012 annual report


intangible assets amortization estimated amortization expense five fiscal years 2009 $ 41. million 2010 $ 27. 3 million 2011 $ 20. 9 million 2012 $ 17. 2013 $ 12. million.
 expenses merger $ 102. 6 million investment banking legal fees stock compensation $ 39. 4 million reflected 2007 results.
 debt issuance costs merger $ 87. 4 million merger-related financing long term assets balance.
 unaudited results operations merger february 3 2007 4 2006 depreciation amortization assets interest expense debt february.
 revenue $ 9495246 $ 9169822
 net loss
 results acquisition future results.
announcement merger agreement company directors named seven class actions tennessee courts breach fiduciary duty proceedings note 8.
.
 2006 company historical inventory management real estate strategies.
 2006 discontinue historical inventory packaway model end fiscal 2007.
 unsold inventory items stored-site returned until sold damaged discarded.
 seasonal clothing merchandise newer current-season merchandise.
 third quarter 2006 recorded reserve for lower cost market inventory


american tower corporation subsidiaries financial statements 2006 ten interest rate swap agreements four forward swap agreements cash cash flow hedges.
 eight american tower swaps $ 450. million fixed rates 4. 63%. 88%. two spectrasite swaps $ 100. million rate 4. 95%.
 four forward swap agreements $ 900. million rates. 73%. 10%.
 three interest rate swap instruments one cap acquired spectrasite.
 2005 not cash flow hedges.
 swaps $ 6. 7 million $ 300. million fixed rate 3. 88%.
 cap $ 175. million fixed rate. expired february 2006.
 unrealized gains short securities $ 10. 4 million interest rate swap agreements $ 5. 7 million tax.
 net unrealized gain $ 6. million tax.million loss interest rate swaps cash flow hedges reclassified $. 7 million income tax benefit $. 2 million operations december 31 2006.
.
 company leases land office tower space leases.
 leases renewal options increases lease payments.
 escalation clauses recognized non-cancelable term.
. future rental payments leases renewal periods failure loss tower site revenues.
 payments december 31 2007.
 2008 217969
 2009
 2010
 2011
 2012
 $ 3483072
 rent expense leases 2007 2006 2005 $ 246. 4 million $ 237. million $ 168. 7 million.


research design development manufacture military aircraft combat unmanned vehicles.
 programs f-35 lightning c-130 hercules f-16 falcon c-5m galaxy f-22 raptor.
 results.
 net sales $ 15570 $ 14920 14123
 operating profit
 margins. 8%. 1%. 4%.
 backlog-end $ 31800 $ 27600
 net sales increased $ 650 million 4% 4 %.
 higher net sales $ 1. 4 billion f-35 $ 150 million c-5 increased deliveries nine.
 offset lower net sales $ 350 million c-130 fewer deliveries lower sustainment $ 200 million decreased volume risk $ 195 million f-16 fewer deliveries 11 $ 190 million f-22 decreased sustainment.
 operating profit increased $ 32 million 2% 2 %.
profit increased $ 240 million f-35 volume risk retirements $ 40 million c-5.
 offset lower profit $ 90 million f-22 $ 70 million c-130 $ 80 million decreased volume risk retirements.
 $ 100 million higher 2015.
 sales increased $ 797 million 6%.
 higher sales $ 790 million f-35 volume $ 55 million f-16 increased deliveries offset contract $ 45 million f-22 risk retirements.
 offset lower net sales $ 55 million f-35 volume downward revision profit booking rate $ 40 million c-130 fewer deliveries 24 decreased sustainment contract.
 aeronautics 2019 profit increased $ 37 million 2%.
increase higher profit $ 85 million f-35 $ 75 million f-22 risk retirements $ 50 million c-130 fewer deliveries $ 25 million c-5.
 increases offset lower profit $ 130 million f-16 decreased risk retirements increased deliveries $ 70 million sustainment decreased risk retirements.
 profit f-35 lower risk retirements.
 adjustments profit $ 105 million lower 2014.


1b.
 unresolved staff comments.
 2.
 headquarters chicago illinois 20 south wacker drive.
 description key locations facilities.
 use owned/leased lease expiration size square feet 20 south wacker drive headquarters office space leased 141 west jackson 150000.
 300000 550 west 2023 250000 north end new york 2028 240000.
 owned/leased lease expiration size square feet
 20 south wacker drive headquarters office space
 141 west 150000
.
 west 250000
 north endnew york 240000
 london leased 2026 58000
 data center 3chicagoland business continuity co-location leased 2031 83000
bagmane tech park bangalore office space leased 72000
 data center chicagoland co-location leased leased.
 lease expires 2032 options extend five years.
 lease expires 2027 extend expand.
 lease expires 2028 extend expand.
 premises reduced 225000 square feet.
 2016 sold datacenter chicago $ 130. million.
 leased back property.
 lease expires 2020 extend terminate early.
.
 legal proceedings regulatory matters.
 contingencies consolidated financial statements page 87 proceedings disclosure.
.
 safety disclosures.


interest rate swap agreement $ 375 million 5. senior unsecured notes due july 1  2014.
. variable three-month libor plus 2. 05%. 05 %. 42%. 42 % 29 2011.
 term loan facility $ 145 million fluctuating rate equal libor rate spread 1. 25%. 25 %. 61%. 61
 libor increases 100 points annual interest expense $ 5 million.
 change impact $ 375 million 3% 3 fixed-rate debt not hedged.
 100 point increase libor $ 4 million annual interest expense.
 hedge.
 exposures foreign currency exchange contracts.
 periods exposure one month to twelve months.
 largest foreign currency exposure euro local currency expenses.
 10% unfavorable movement foreign currency exchange rates $ 6 million losses.
market risk derivative instruments results currency exchange rates risk transactions assets liabilities hedged.
 counterparties major international financial institutions high credit ratings.
 significant risk nonperformance.
 amounts derivative instruments volume transactions represent exposure credit risk.
 amounts credit risk counterparties meet terms contracts limited to counterparties obligations exceed obligations.
 table effect 10% unfavorable movement foreign currency exchange rates.
 fair value forward exchange contracts october 29 2011 30 2010.
 value forward exchange contracts $ 2472 $ 7256
 after unfavorable movement $ 17859 $ 22062
 favorable movement $ -13332 $ -7396
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17859 22062 exchange contracts 10% foreign currency rates.
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 13332 7396 calculation exchange rate.
.
 affect volume sales foreign currency price.
 currency rates sales currency prices.


7a.
 disclosures market risk millions exposed to market risks interest rates foreign currency balance sheet items.
 use derivative instruments manage risks.
 derivative instruments risk management tools not trading speculative.
 exposure market risk fair market value cash flows debt obligations.
 majority debt 94% 93% 93 % december 31 2017 2016 bears interest fixed rates.
 debt variable interest rates 10% increase decrease not material interest expense cash flows.
 fair market value debt sensitive changes interest rates impact 10% change interest summarized.
.
.
.
 used interest rate swaps risk management exposure.
 interest rate swaps outstanding december 31  2017.
 $ 791. 0 cash equivalents marketable securities december 31 conservative short-term bank deposits securities.
interest income investments subject to domestic foreign interest rate movements.
 2017 2016 income $ 19. 4 $ 20. 1.
 100 basis-point increase interest rates income $ 7. 9 cash equivalents securities impacted balances constant.
 subject translation transaction risks.
.
 changes exchange rates affect revenues expenses.
.
 currencies british pound sterling brazilian real south african rand.
.
 dollar 10% operating income 4% 4 % currencies revenue expenses constant 2017.
 currency operations local currency.
 assets liabilities translated at exchange rates revenues expenses average exchange rates.
 translation adjustments recorded accumulated loss.
 foreign subsidiaries collect revenues pay expenses in currency.
 subsidiaries transactions other.
 liabilities susceptible to movements until final settlement.
currency transaction gains losses included in office general expenses.
 review foreign exchange exposures use currency exchange contracts hedge fluctuations rates.
 enter contracts for speculative purposes.


entergy mississippi.
 financial capital include funds cash debt stock bank financing.
 refinance redeem debt preferred stock prior maturity.
 debt stock issuances require regulatory approval.
 subject issuance tests corporate charter bond agreements.
 capacity capital needs.
 two credit facilities $ 50 million renewed through may 2009.
 borrowings secured by security interest.
 no borrowings outstanding december 31 2008.
 short-term borrowing authorization through march 31 2010 $ 175 million.
 note 4 financial statements borrowing.
 order authorizing long-term securities issuances.
 authorization extends through june 30  2009.
 receivables december 31.
 2008 2007 2006 2005
$ 66044 20997 39573 84066
 may 2007 $ 6. million mississippi receivable replaced new orleans.
 note 4 financial statements.
 entergy mississippi influence financial position liquidity.
 rates determined regulatory.
 mpsc.
 2008 mississippi filing.
 $ 10. 1 million increase electric revenues.
 june 2008 settlement utilities $ 3. 8 million rate increase.
 january 2009 left current rates.
 appealed decision supreme court.


.
 2013 ventures pay dividends quarterly.
 2013 2012 2011 received cash dividends $ 92 million $ 83 million $ 78 million.
 2012 nantong venture acetate flake tow capacity 30000 tons.
 contributions $ 29 million 2009 2012 capacity expansion.
 expansions led earnings growth increased dividends.
 euromonitor 42% % share world's 2012 cigarette consumption.
 1. 9%. per year 2012 2017.
 ventures leader chinese domestic acetate production supply chinese cigarette producers.
 ownership interest cellulose derivatives ventures exceeds 20% account investments cost method accounting local government investment financial information.
.
 indirect ownership interests german infraserv groups industrial parks support.
 ownership investments december 31 2013.
.
.
.
 research innovation-oriented optimize production technologies products applications.
 spent three fiscal years research development sufficient strategic initiatives.
 patents trademarks copyrights product designs investment research manufacturing marketing.
 patents processes products uses.
 register trademarks brand names.
 property infringement design protection.
.
 new substances formulations unique applications production processes.
 regions intellectual property protection limited.
 maintain information security policies.
 data encryption disclosure confidential information employee awareness training.
 monitor competitive developments defend infringements intellectual property.
.
aoplus ateva avicor britecoat celanese celanex celcon celfx 2122 celvolit clarifoil compel duroset ecovae factor fortron gur hostaform impet mowilith nutrinova qorus 2122 sunett tcx thermx tufcor vandar vantage vectra vinamul vitaldose zenite products trademarks marks celanese.
.
 fortron ae trademark fortron industries.


maturity option company redemption price.
 2017 notes issued discount $ 6 million amortized ten-year term.
 incurred $ 4 million debt issuance costs amortized ten years.
 december 31 2013 $ 2 million unamortized debt consolidated financial.
.
 leases office spaces 2035.
 future commitments.
 2015
 2016
 2017 2018
 rent office equipment expense $ 137 million $ 133 million $ 154 million 2013 2012 2011.
.
 december 31 2013 $ 216 million capital commitments investment funds.
 excludes commitments third-party.
 timing funding unknown callable demand expiration.
 unfunded commitments not recorded consolidated statements financial.
 future commitments not legally binding.
company intends additional capital commitments fund investment products clients.
.
 acts portfolio manager credit default swap transactions maximum potential exposure $ 17 million default swap.
 note 7 derivatives hedging.
 contingent payments business acquisitions.
 blackrock required payments annually suisse thresholds seven-year period.
 contingent payments mgpa transaction five-year period thresholds.
 fair value contingent payments december 31 2013 not significant consolidated financial condition included other liabilities.
.
 receives subpoenas requests information.
 regulatory authorities.
 cooperate inquiries.
 subsidiaries named defendants in legal actions.
 blackrock- sponsored investment funds subject lawsuits harm investment returns.
 anticipate aggregate liability regulatory matters lawsuits results operations financial position cash flows.
no assurance pending matters blackrock 2019s results financial position cash flows future reporting period.
 uncertainties management estimate possible loss.
 indemnifications.
 blackrock enters contracts indemnify third parties.
 terms indemnities vary indemnification liability remote.
 no liability recorded on consolidated statement financial condition.
 blackrock issued indemnifications to clients against potential loss borrower failure fulfill obligations collateral.
 2013 company indemnified clients for loan balances $ 118. 3 billion.
 securities totaling $ 124. 6 billion collateral.
 fair value indemnifications not material.


mst 2019s net sales decreased $ 311 million 4%.
 volume $ 390 million ship aviation system $ 75 million training logistics solutions.
 higher sales $ 165 million lcs program.
 operating profit decreased $ 68 million 10%.
 profit $ 55 million increased reserves $ 40 million lower volume increased reserves training logistics solutions.
 higher operating profit $ 30 million reserves undersea systems.
 $ 55 million lower.
 increased increased orders ship aviation system higher sales volume integrated warfare systems sensors programs.
 decreased slightly higher sales volume.
 2019s net sales decline 2013 completion ptds deliveries lower volume training services.
 operating profit margin increase slightly improved contract performance.
 research design production satellites strategic missile systems space transportation systems.
 national security systems.
systems 2019 programs include infrared system high frequency system mobile user objective system global positioning satellite geostationary environmental satellite r-series trident ii d5 fleet ballistic missile orion.
 equity interests united launch alliance services.
 united space alliance shuttle joint venture. atomic weapons establishment program.
 results.
 2011
 net sales $ 8347 8268
 operating profit 1083
 margins.
 backlog year-end
 net sales increased $ 186 million 2%.
 higher net sales $ 150 million increased commercial satellite deliveries $ 125 million orion program higher volume risk retirements $ 70 million increased volume strategic defensive missile programs.
increases lower sales $ 105 million satellite decreased volume risk retirements $ 55 million nasa tank program ended shuttle.


adjustments from tax examinations.
 outcome audits.
 adjust income taxes.
 liquidity financial information statistics 2013 2012 2011 balances cash equivalents securities satisfy working capital asset purchases liquidity requirements 12 months.
 cash for future dividends share repurchase from domestic cash.
 activities borrowings.
 2012 $ 111. 3 billion $ 82. 6 billion cash equivalents securities foreign subsidiaries.
 dollar-denominated holdings.
 subject to.
 income taxation.
 portfolio in highly-rated securities policy limits credit exposure issuer.
 risk principal loss.
 cash $ 53. 7 billion $ 37. billion net income non-cash adjustments $ 10. 2 billion increase net change operating assets liabilities $ 6. 5 billion.
 investing $ 33.2013 purchases sales securities $ 24. billion property plant equipment. billion.
 common stock $ 22. 9 billion dividends $ 10. 6 billion offset long-term debt $ 16. billion.
 $ 50. billion 41. 7 billion non-cash adjustments $ 9. 4 billion offset operating assets liabilities $ 299 million.
 $ 48. 2 billion purchases sales maturities securities $ 38. 4 billion property plant equipment $ 8. 3 billion.
 $ 1. 7 billion dividends rights $ 2. 5 billion.
 expenditures $ 7. billion $ 499 million retail $ 6. 5 billion.
 payments $ 8. 2 billion.
 equivalents securities 146761
 property equipment
 long-term debt
 working capital
 operating 53666investing $ -33774 -48227 -40419
 financing activities $ -16379 -1698 ( 1444


stock performance graph shareholder return $ 100 31 2013 reinvestment dividends 2019s common stock s&p 500 retail index.
 2013 2014 2015 2016 2017 2018
 2019reilly automotive inc. $ 100 $ 150  $ 197 $ 216 $ 187 $ 268
 s&p 500 retail index 110 137 143 184  208
 $ 100 111 145


2.
 locations december 31 2011.
 facilities leased except 165000 square feet office alpharetta georgia.
 restructuring.
 alpharetta georgia
 arlington virginia
 city
 menlo park california
 sandy utah
 new york
 chicago illinois
 facilities used trading investing balance sheet management segments.
 leased facilities less 25000 square feet not.
 lease 28 e*trade branches 2500 to 7000 square feet.
 facilities space adequate needs 2012.
.
 legal proceedings october 27 2000 ajaxo.
 complaint california.
 damages non-monetary relief breach non agreement wireless misappropriation trade secrets.
 judgment 2003 favor $. million breach non-disclosure agreement.
 court denied requests damages.
december 21 2005 california court appeal affirmed award breach nondisclosure agreement remanded case determining additional damages ajaxo misappropriation trade secrets.
 paid case remanded trial court may 30 2008 jury denying claims damages.
 september 5 2008 ajaxo filed motions new trial.
 november 4 2008 court denied motions.
 december 2 2008 ajaxo filed appeal.
 argument heard july 15 2010.
 august 30 2010 court appeal affirmed verdict reversed.
 petitioned supreme court review.
 december 16 denied petition remanded trial court.
 2011 granted limited discovery november 4 set motion schedule trial date.
 may 14 , 2012.
.
 october 2 2007 class action complaint federal securities laws filed against company


vertex pharmaceuticals financial statements.
 $ 7 million development commercialization milestone payments.
 kissei development costs phase 2 trials vx-702.
 research funding ended june 2000 received full funding.
 kissei rights develop commercialize vx-702 japan far east countries taiwan south korea.
 retains marketing rights.
 supply drug material kissei royalties future sales.
 2006 2005 2004 $ 6. 4 million $ 7. 3 million $ 3. 5 million recognized revenue.
 $ 7. million $ 2. 5 million milestone regulatory filings phase 1 clinical development vx-702.
.
 401 ( k ) retirement plan employees.
 contribute annual compensation.
 discretionary matching contributions.
.
 transfer funds stock fund.
company declared contributions vertex 401 ( k ) plan.
 transactions december 31 2006 2005 2004 loan outstanding former officer $ 36000 $ 97000 advanced april 2002.
 loan balance included assets consolidated balance sheets.
 2001 entered four year consulting agreement director part-time consulting services $ 80000 per year commencing january 2002.
 agreement terminated january 2006.
.
 liabilities business activities.
 accrues reserve contingent liabilities future expenditures.
 2005 2004
 discretionary matching contributions year ended december 31, $ 3341 2894 $ 2492
 shares issued


cme invests assumed investment choices.
 balances subject to claims creditors totaled $ 38. 7 million $ 31. 8 million at december 31 2012 2011.
 value recorded securities equal liability.
 results impact on net income income compensation expense.
.
 maintains benefits for employees impacted statutory limits.
 subject vesting requirements.
 deferred compensation plan.
 officers board contribute compensation defer taxes distribution.
 2019 retirement plan.
 retirement benefit plan.
 long-term limited.
 no new participants after.
 fund minimum annual contribution $ 0. 8 million until funded.
 benefits based on actuarial assumptions.
 contributions $ 0. 8 million 2010 2012.
 december 31 2012 2011 totaled $ 22. 7 million $ 21. 6 million.
 assets fair value $ 18.4 million. 7 million allocated 31 2012 2011 securities cash equivalents consolidated balance sheets.
 subject creditors comex.
.
 leases.
 non lease agreements 2012 sold buildings chicago.
 leased back.
 30 2027 four renewal options five years.
 2011 office space london.
 terminates march 24 2026 option penalty 2021.
 2008 renegotiated lease headquarters 20 south wacker drive chicago.
 november 30 2022 two renewal options seven ten years contraction option occupied space november 30 2018.
 lease expansion option december 2017.
 2006 additional office space chicago.
 terminates november 30 2023.
 two 5-year renewal options 2023.
 2012 future minimum payments leases payable.
.
.
.
.
.
152. 9
.


non-current liabilities company believes ultimate payment twelve months.
 amounts current income tax.
 includes interest penalties unrecognized tax benefits condensed consolidated statements income no change classification provisions.
 statements 2009 include $ 1. 7 million $ 1. 3 million interest penalties uncertain tax positions.
 complexity period settle liabilities.
 summarizes changes total amounts uncertain tax positions 2008.
 balance november 3 2007 $ 9889
 additions 3861
 november 1 2008
 4411
 october 31 2009 $ 18161
 fiscal year 2004 2005.
 report proposed adjustments.
 recorded taxes penalties adjustments.
 four items additional potential tax liability $ 46 million.
 not likely additional tax.
company recorded additional tax liability appealing adjustments processes.
 meetings appellate division 2009.
 two unresolved matters one-time section 965 internal revenue code tax treatment dividends foreign companies american.
 research development r&d tax credits profits manufacturing outside states.
 could impact taxes 2004 2005.
 2006 2007 field examination years 2006 2007.
 agreed issues agreement 2006 2007 tax.
 no agreement reached tax treatment r&d credit foreign manufacturing issues 2004 2005 pricing intercompany sales deductibility stock option compensation expenses.
 irs issued report 2006 2007 proposed adjustments.
 recorded taxes penalties adjustments.
 four items additional potential tax liability $ 195 million.
 not likely additional tax liability.
 liability appealing adjustments normal processes.
 exception.
 consolidated financial statements 2014


2015 2014 2013 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 petroleum five years.
 registered engineers texas.
 ryder scott audits reserves 2015 2014 2013.
 report.
 team lead 20 years experience oil gas company.
 member spe oil gas reserves committee registered professional engineer texas.
 december 31 2015 603 decrease 125 2014.
 changes undeveloped reserves 2015.
 728
 revisions estimates -223
 improved recovery
 purchases reserves
 extensions discoveries additions 175
 dispositions
 transfers -79
 end 603
revisions estimates due capital development program reserves beyond 5-year plan.
 139 mmboe booked extensions discoveries additions revisions technology.
 statistical analysis decline curve pressure reservoir simulation volumetric analysis.
 reservoir continuity certainty criteria booking reserves.
 transfers from reserves included 47 eagle ford 14 bakken 5 oklahoma basins.
 costs 2015 2014 2013 $ 1415 million $ 3149 million $ 2536 million.
 projects remain large projects.
 603 mmboe reserves 26% % projects five years.
 majority related compression project.
 sanctioned 2004.
 approval.
 fabrication 2013 installation 2016.
 commissioning first production mid-2016.
 undeveloped reserves north gialo development libyan sahara desert booked 2010.
development executed by operator multi-year drilling program design liquid handling gas recycling facilities.
 five years reserves.
 civil unrest extended project duration.
 operations interrupted mid-2013 shutdown crude oil terminal re-opened 2014 production shut-in 2016.
 operator committed project completion resources.
 conversion rate undeveloped to developed 2015 11%.
.
 2015 conversion rate 15%.


synopsys.
 financial statements.
 $ 316. 6 million $ 4. 6 million stock awards assets liabilities intangible assets $ 96. 7 million&d $ 13. 2 million goodwill $ 210. 1 million.
 costs $ 13. million.
 sales growth integration.
 intangible assets relationships contract rights trademarks valued income method amortized over two ten years.
.
 restricted stock units appreciation rights $ 21. 7 million.
 $ 4. 6 million purchase $ 17. 1 million future services.
 seven acquisitions.
 allocated $ 221. 7 million assets liabilities assumed goodwill $ 110. 8 million.
 assets $ 92. 8 million amortized one to ten years.
 acquisition-related costs $ 10. 6 million statements operations.
 purchase included contingent $ 10. million payable technology milestones three years.
 liability estimated fair value $ 7. million remeasured quarterly three-year statements.
 no contingent liability end fiscal 2012.
.
 goodwill intangible assets.
 balance october 31 2010 $ 1265843
 30717
 adjustments
 balance october 31 2011 $ 1289286
 adjustments october 31 2012 $ 1976987
 adjustments changes estimates acquisitions prior price achievement milestones 2010.


advisory revenues decreased $ 3. 6 million to $ 522. 2 million.
 assets $ 142. 1 billion from $ 141. 4 billion 2007.
 changes declining equity market valuations cash flows.
 inflows from institutional investors $ 13. 2 billion 2008 $ 1. 3 billion transferred retirement funds trusts.
 decreases lowered assets $ 55. 3 billion.
 administrative fees increased $ 5. 8 million to $ 353. 9 million.
 offset by operating expenses.
 compensation increased $ 18. 4 million. from 2007.
 $ 37. 2 million salaries.
 employed 5385 associates up 6. from 2007.
 slowed growth associate base.
.
 reduced annual bonuses $ 27. million financial conditions.
 increase higher employee benefits expenses $.stock compensation.
 2009 increase salaries associates.
 higher spending advertising promotion spending down $ 3. 8 million 2007.
 reduce expenditures 2009 first quarter $ 5 million.
 spending market investor demand base.
 occupancy facility costs depreciation expense increased $ 18 million 12% 2007.
 expanding renovating facilities.
 operating expenses up $ 3. 3 million 2007.
 increased spending $ 9. 8 million professional fees third-party services.
 reductions travel charitable contributions offset.
 non-operating net loss $ 52. 3 million 2008 $ 80. 4 million 2007.
 change $ 132. 7 million losses mutual funds declines financial market values.
 capital gain distributions $ 22.
.
 gains funddispositions.
 gain loss fund holdings..
 recognized impairments investments mutual funds declines value cost.
 declines 2008 adverse market conditions page 18.
 page 24 accounting.
 income bond fund holdings $ 19. 3 million lower 2007 lower interest 2008.
 capital appreciation $ 40 million holding.
 treasury notes sold december 2008 $ 2. 6 million gain.


.
 first impairment test showed no indication units except december 31 2008 second test except december 31 2008.
 indication impairment in north america latin america emea units second testing performed on.
 recorded $ 9. 6 billion pretax $ 8. 7 billion after tax goodwill impairment charge fourth quarter 2008 goodwill.
 primary cause deterioration financial markets global economic outlook.
 weakened prospects financial services industry.
 company market capitalization from $ 90 billion july 1 2008 74 to $ 36 billion december 31 2008.
 fair-value adjustments loans debt intangibles.
 not consolidated balance sheet.
 table shows units with goodwill balances excess fair as december 31  2008.
reporting unit $ millions % allocated book value goodwill post-impairment.
 book value
 north america cards 139% 6765
 international cards 218% % 4066
 asia consumer banking 293% % 3106
 securities banking 109% % 9774
 global transaction services 994% %
 north america 386% % 1259
 international 171% 171 %
 no impairment securities banking test october 31 december 31 goodwill sensitive deterioration economic conditions.
 earnings transaction multiples selected guideline companies acquisitions.
 performance financial condition return income growth.
 discount rate risk uncertainty selected 2013 terminal year.
 value return historical core-business profitability losses 2008.
 recovery.
 government stimulus actions marketplace confidence improved risk-management.
company-specific actions realignment growth returning securities banking business to historical levels.
 deterioration assumptions discount rate growth rate net income projections affect impairment evaluation results.
 future economic assumptions cash flows experience future impairment charges goodwill securities banking.
 charges affect 1 regulatory capital ratios tangible capital liquidity position.


valero energy corporation subsidiaries financial statements commodity price risk exposed risks crude oil refined products grain natural gas.
 reduce impact price volatility use commodity derivative instruments futures swaps options.
 futures liquidity flexibility hedging trading.
 swaps manage price exposure.
 positions commodity derivative instruments monitored risk control group risk management policy.
 fair value hedges cash flow hedges economic hedges.
 commodity derivative instruments trading.
.
 fair value hedges hedge price volatility refining inventories commitments purchase inventories.
 activity based operating inventories.
 december 31 2011 outstanding commodity derivative instruments hedge crude oil refined product inventories fixed price.
 volume contracts by type instrument year maturity.
.
contract volumes 2012
 crude oil refined products
 futures 15398
 contracts


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completed construction facilities oregon 2014 process technology.
 completed large-scale building arizona 2013.
 oregon facilities not use reserving buildings capacity future technologies.
 construction equipment installation.
 massachusetts facility last 200mm wafers ceased production q1 2015.
. wafer fabrication facilities ireland israel china.
 transitioned 14nm process technology manufacturing 2016.
 2016 facility dalian manufacturing capacity next-generation.
 assembly test facilities malaysia vietnam.
 sales marketing offices worldwide concentrations customers.
 facilities suitable adequate purposes productive capacity plans.
 allocate assets operating segment.
 201cnote 26 segments.
.
 25 contingencies.
.
 safety disclosures applicable.


properties plants equipment.
 recorded at cost.
 depreciation straight-line method estimated useful lives.
 table details weighted-average useful lives structures machinery equipment reporting segment.
 global rolled products 31
 engineered products solutions 29
 transportation construction solutions 27
 gains losses from sale assets recorded income.
 repairs maintenance charged.
 construction capitalized construction costs.
 properties plants equipment reviewed for impairment carrying.
 recoverability estimated net cash flows carrying amount.
 impairment loss carrying exceeds cash flows.
 calculated excess carrying value over fair value determined best information discounted cash flow model.
 determination group flows lives judgments.
 intangible assets.
goodwill not amortized reviewed for impairment annually if indicators impairment exist decision sell exit business.
 judgment.
 indicators include deterioration economic conditions negative equity credit markets adverse changes markets input costs earnings cash flows negative cash flows.
 fair value transaction differ from impairment goodwill.
 goodwill allocated evaluated for impairment at reporting unit level.
 arconic eight reporting units four engineered products solutions three transportation construction solutions global rolled products.
 70% of arconic goodwill allocated to fastening systems rings power propulsion.
.
 acquired firth rixson recognized $ 1801 in goodwill.
 between arconic forgings extrusions.
 2015 acquired tital rti recognized $ 117 $ 298  in goodwill.
goodwill tital allocated app unit rti arconic titanium engineered products new arconic reporting unit acquired rti business engineered products solutions segment.
 reviewing goodwill impairment entity assess qualitative factors estimated fair value reporting unit less carrying amount.
 impairment likely required perform