.
 159 requires unrealized gains losses fair value option in earnings reporting date.
.
 effective fiscal years after november 15 2007 adopted first quarter fiscal 2009.
.
 adoption financial condition operating results.
 2006 fasb issued.
 157 fair value measurements defines framework expands disclosures.
.
 applies accounting new measurements.
.
 effective fiscal years after november 15 2007 adopted first quarter fiscal 2009.
.
 adoption financial condition operating results.
 june 2006 fasb issued interpretation.
 48 accounting for uncertainty in income taxes.
.
 clarifies accounting uncertainty framework uncertain tax positions.
 effective for fiscal years after december 15 2006 adopted first quarter fiscal 2008.
 adoption financial condition operating.
capital resources table presents financial information statistics three fiscal years 29 24 2007 2006 2005.
 cash equivalents short-term investments $ 15386 $ 10110 8261
 receivable $ 1637 895
 inventory
 working capital $ 12657
 cash flow $ 5470
 29 2007 $ 15. 4 billion cash equivalents short-term investments increase $ 5. 3 billion 2006.
 $ 5. 5 billion proceeds common stock $ 365 million tax benefits $ 377 million.
 offset property $ 735 million intangible assets $ 251 million.
 investment portfolio rated liquid investments.
 2006 $ 6. 5 billion $ 4. 1 billion foreign subsidiaries.
 holdings.
 balances working capital expenditures commitments liquidity requirements 12 months.


discloses purchases common stock fourth quarter 2017.
 shares purchased average price paid share plans dollar value.
 averageprice
 october 2017 515762 $ 77. 15 292145 223617 $ 1. 6 billion
 november 2017 2186889 $ 81. 21 216415 1970474 $ 1. 4 billion
 december 2017 2330263 $ 87. 76 2329465 $ 1. 2 billion
 5032914  $ 83. 509358 4523556 $ 1. 2 billion
 shares represent purchases fourth quarter 2017 open-market transactions stock-based compensation plans purchases employees stock options vesting restricted stock compensation transactions.
 september 21 2016 board directors authorized purchase up $ 2.stock 2016 no expiration.
 december 31 2017 $ 1. 2 billion.
 january 23 2018 board authorized purchase additional $ 2.


tax positions reconciliation company 2019s uncertain tax positions millions.
 balance january 1 $ 280 $ 278
 additions tax positions
 additions
 reductions
 settlements
 business combinations
 statute limitations
 foreign currency translation
 balance december 31 $ 279 $ 280
 liability uncertain tax positions 2016 includes $ 228 million $ 219 million $ 240 million tax rate.
 unrecognized tax benefits change twelve months balance.
 audits.
 estimate outcomes.
 recognizes interest penalties uncertain tax positions.
 accrued interest penalties $ 22 million $ 11 million $ 15 million 2018 2017 2016.
 liability penalties $ 77 million $ 55 million $ 48 million december 31.
 subsidiaries income tax returns jurisdictions.
 concluded.
income tax 2007.
.
 state local examinations concluded 2005.
 company concluded tax examinations.
 jurisdictions 2010.
.
 distributable reserves england wales.
 law reserves repurchases dividends.
 earnings.
 parent company reduction share capital courts england wales.
 not linked.
.
 december 31 2018 2017 distributable reserves $ 2. billion $ 1. billion.
 repurchase program board.
 2012 $ 5. billion increased $ 5. billion november 2014 february 2017 $ 15. billion.
 shares repurchased open market privately negotiated transactions funded capital.


table reflects estimated effects pension expense changes annual assumptions using 2012 expense baseline.
 change assumption increase.
. 5%. decrease discount rate
. decrease long-term return assets
. 5%. increase compensation rate
 impact changing assumption assumptions.
 pension plan contribution requirements sensitive actuarial assumptions.
 investment performance permitted contributions.
 current law pension protection act 2006 sets limits minimum maximum contributions.
 2012.
 maintain defined benefit plans less nonqualified supplemental retirement plans.
 repurchase obligations sale sold commercial residential loans securitizations whole-loan sale transactions continuing involvement.
 recourse loan repurchase obligations transferred assets.
 multi loans sold delegated underwriting servicing program.
 similar program.
 assume one-third risk loss unpaid principal balances.
december 31 2011 2010 unpaid principal balance loans $ 13. 0 billion $ 13. 2 billion.
 potential maximum exposure loss share $ 4. 0 billion.
 reserve for estimated losses.
 totaled $ 47 million $ 54 million included in other liabilities consolidated balance sheet.
 payment required contractual interest in collateral loans losses value.
 exposure activity recourse obligations corporate institutional banking.
 residential home equity repurchase obligations assume repurchase obligations loans.
 origination covenants representations warranties.
 loans obligations include first second-lien agency securitizations non securitizations whole-loan sale transactions.
 agency securitizations fnma fhlmc mortgage association non-agency-loan private investors.
securitization related fnma fhlmc losses federal housing agency veterans affairs -insured uninsured loans gnma securitizations minimal.
 activity residential mortgages banking.
 obligations include brokered home equity loans sold private investors.
 brokered equity lending limited whole-loans.
 activity brokered home equity non-strategic assets portfolio.
 loan covenants representations warranties established loan sale agreements investors.
 2013


december 31 2009 loss carryforwards $ 7 million 2010 to 2024 state loss $ 513 million 2010 2028 foreign loss carryforwards $ 453 million $ 252 million indefinite carryforward.
 tax benefits reconciliation tax benefits.
 balance january 1 $ 86 $
 additions
 additions
 reductions
 settlements
 statute limitations
 acquisitions
 foreign currency translation
 balance december 31 $ 77 $ 86
 $ 61 million unrecognized tax benefits tax rate.
 tax positions twelve months.
 recognizes penalties interest unrecognized tax benefits.
 penalties less $ 1 million 2009 2008 2007.
 interest $ 2 million.
 liability penalties $ 5 million $ 4 million interest $ 18 million $ 14 million.
 income tax returns.
federal jurisdiction international jurisdictions.
 concluded.
 income tax matters 2006.
.
 tax examinations concluded 2002.
.


2007 annual report five-year stock performance graph illustrates shareholder return snap-on common stock since 2002 dividends reinvested.
 compares snap-on performance standard 500 stock index peer group.
 snap-on shareholder return 2002&p 500 fiscal year.
 2002 100.
 118. 126.
 2004 130. 152.
. 157 149.
 191. 185. 173.
 198. 216 182.
 $ 100 invested december 31 2002 dividends reinvested.
 fiscal year ends saturday december 31 31.
 peer group includes black & decker cooper industries. danaher emerson electric. fortune brands. genuine parts newell rubbermaid. pentair. spx stanley works.
.


company capital loss carryforwards federal income tax $ 4357 december 31 2012 2011.
 recognized full valuation allowance.
 files income tax returns states federal foreign jurisdictions.
 subject.
. tax examinations before 2007.
 state income tax examinations progress adjustments.
 patient protection affordable care act march 23 2010 health care education reconciliation act 2010 march 30 2010.
 changes tax treatment federal subsidies retiree health benefit plans medicare.
 payments taxable after december 31 2012 recorded reduction deferred tax assets increase regulatory assets $ 6432.
 changes gross liability unrecognized tax benefits.
 balance january 1 2011 $ 118314
 increases 46961
 decreases
 december 31 2011
 increases 40620
 decreases
december 31 2012 $ 180993
 includes long-term liabilities $ 74360 $ 46961 2011.
 include interest penalties $ 260 $ 214 income tax expense.
 majority increased tax temporary differences.
 change tax accounting method repair utility assets.
 changes unrecognized tax benefits year.
 sustains positions 2012 2011 unrecognized tax benefit $ 7532 $ 6644 tax rate.


losses expenses $ 28. 6 million net loss write-down fees $ 27. 1 million $ 1. 5 million legal fees.
 2022 fees services decreased 2017 higher legal regulatory fees reliance consultants.
 decrease offset increases 2022 licensing fee sharing agreements increased incentive payments contract increased costs revenue sharing agreements.
 increase offset lower expense equity energy contracts.
 2022 compensation benefits increased higher headcount cost living adjustments.
 expenses increased $ 54. 4 million.
 impact decrease expenses.
.
 loss datacenter legal fees $ 28. 6 2% 2 %
 professional fees outside services.
 foreign currency exchange rate fluctuation.
 licensing fee agreements.
 reorganization severance retirement costs.
 real estate taxes fees.
 other expenses -5. 7.
 $ 54.
 operating expenses increased 2016 losses expenses $ 28. 6 million net loss write-down fees $ 27. 1 million $ 1. 5 million legal fees sale leaseback datacenter.
 professional fees services increased legal regulatory efforts reliance consultants.
 net loss $ 24. 5 million unfavorable exchange rates cash $ 11. 3 million 2015.
 licensing fee sharing agreements increased revenue sharing equity energy contracts rates.


2019 2 $ 11080000 years 2006 2005 2004.
 unrecognized compensation cost unvested awards $ 7702000 3. years.
 employee stock purchase plan purchase 85% fair market value.
 withhold 5% annual salary.
 authorizes 2600000 shares.
 2006 issued 165306 shares $ 27. 36 per share.
 2005 161903 shares $ 27. 57 per share.
 2004 issued 187754 shares $ 20. 85 per share.
.
 compensation expense recognized discount grant date fair value employee purchase price.
 2006 recorded $ 799000 compensation cost employee share purchases income tax benefit $ 295000.
 400000 shares reserved future issuance.
 sponsors contributory profit sharing savings plan employees 21 years six months service.
company agreed matching contributions 50% first 2% employee wages 25% next 4%.
 makes additional discretionary profit sharing contributions determined board directors.
 matching profit sharing contributions funded shares common stock.
 4200000 shares authorized issuance.
 2006 recorded $ 6429000 compensation cost income tax benefit $ 2372000.
 2005 $ compensation cost income tax benefit $ 2444000.
 2004 $ 5278000 income tax benefit $ 1969000.
 compensation cost 2006 includes matching contributions profit sharing contributions stock.
 issued 204000 shares 2006 average fair value $ 34.
 issued 210461 shares 2005 $ 25.
 238828 shares 2004 average value $ 19.
.
 1061000 shares reserved future issuance.
company performance incentive plan senior management awards shares restricted stock three-year held escrow vesting.
 shares forfeited employee ceases employment.
 800000 shares common stock authorized.
 valued market price compensation cost recorded vesting period.
 $ 416000 2006 income tax benefit $ 154000.
 $ 289000 2005 $ 107000.
 $ 248000 2004 $ 93000.
 total fair value shares vested 2006 2005 2004 $ 503000 $ 524000 $ 335000.
 remaining unrecognized compensation cost $ 536000.
 awarded 18698 shares 2006 average grant date fair value $ 33.
 14986 shares 2005 average value $ 25.
 15834 shares 2004 $ 19. 05.
 compensation cost recognized three-year vesting period.
 changes stock 2006.
-vested.
granted 18698 33. 12
 vested 15685 26. 49
 forfeited -1774 ( 1774 ) 27. 94
 non-vested december 31 2006 16291 30. 80
 659000 shares reserved future issuance.


note 4 goodwill intangible assets company had $ 93. 2 million $ 94. 4 million december 30 2017 31 2016.
 changes carrying 2017 2016 thousands.
 2016
 balance $ 94417 $ 10258
 acquired acquisition 2014 84159
 working capital settlement
 impairment loss
 balance end year $ 93192 $ 94417
 goodwill allocated reporting unit.
 not amortized evaluated impairment annually.
 impairment evaluation valuation analyses market information.
 fair value.
 impairment charge recorded operations value fair value.
 fourth quarter 2017 annual impairment testing no impairment identified.
 fair value unit excess carrying value.
 market income approach.
 data.
 had $ 31. 3 million at december 30 2017 31 2016.
intangible asset balance estimated fair value petsense tradename not subject amortization indefinite life cash flows beyond.
 evaluate impairment annually.
 recognize impairment loss difference carrying value fair value.
 fourth quarter 2017 annual impairment testing no impairment identified.


jpmorgan chase co. annual report interest income excluding cib markets reviews lending investing deposit-raising activities.
 non-markets.
 fixed income equity.
 disclosure business trends comparable institutions lending investing.
 data non-gaap financial measures exclusion.
 year december 31 millions 2017 2016 2015 net interest income 2013 $ 51410 $ 47292 $ less cib markets excluding cib markets $ 46780 $ 40958 $ 39322 assets $ 2180592 $ 2101604 $ 2088242 $ 1639757 $ 1581297 1577950 net interest yield assets 2013. 36%. 36 %. 25%. 14%. 14 % markets. yield excluding cib markets. 85%. 85 %. 59%. 49%. 49 % effect related hedges.
taxable-equivalent amounts used.
 reconciliation net interest income reconciliation.
 results page 52.
 amounts differ align cib markets businesses.
 information page 65.
 calculation.
 non financial measures.
 book value per share stockholders equity-end overhead ratio noninterest expense net revenue return assets average assets return stockholders equity return book value per share net income common equity.
 year december 31 2016
 net interest income 2013 $ 51410 $ 47292 $
 cib markets net interest income
 excluding $ 46780 $ 40958 $ 39322
 average interest-earning assets $ 2180592 $ 2101604 2088242
 markets-earning assets 540835 520307
interest-earning assets excluding cib markets $ 1639757 $ 1581297 $ 1577950
 interest yield 2013 2. 36% 2. 36 % ). 25%. 25 %. 14%. 14 %
 yield cib markets 0. 86 1. 22.
 excluding cib markets 2. 85%. 85 % ). 59%. 59 %. 49%. 49 % )
 jpmorgan chase co. annual report interest income excluding performance investing deposit-raising.
 non-markets.
 fixed income equity.
 disclosure income trends comparable.
 data non-gaap financial measures exclusion interest income.
december 31 millions rates 2017 2015 interest income 2013 $ 51410 44620 less cib markets 4630 6334 5298 excluding markets 46780 $ 40958 $ assets 2180592 $ 2101604 $ 2088242 markets 540835 520307 510292 excluding markets $ 1639757 $ 1581297 $ 1577950 yield 2013. 36%. %. 25%. 14%. % markets. excluding markets. 85%. 85 %. 59%. %. 49%. 49 % hedges.
 taxable-equivalent amounts.
 reconciliation net interest income.
.
 amounts differ align cib markets.
 information page.
.
 measures.
non-gaap financial measures book value share 201d stockholders equity shares overhead ratio noninterest expense net revenue return assets return common equity 2019 equity return common equity equity book value share 201d equity shares net income


nine-year 2015.
 note 2 financial statements business combination customer.
 volume/weather variance due favorable weather industrial usage offset residential sales.
 industrial usage expansion projects chemicals increased demand new customers.
 louisiana act 55 financing savings regulatory charge tax savings.
 tax savings 2010-2011 audit settlement louisiana act 55 financing storm costs hurricane gustav ike.
 note 3 financial statements settlement benefit sharing.
 provision $ 23 million 2016 waterford 3 generator offset provision $ 32 million 2015 uncertainty. note 2 financial statements.
 net revenue 2016 2015.
.
 net revenue $ 1666
 nuclear price changes
 reimbursement fuel expenses
 2016 net revenue $ 1542
net revenue entergy wholesale commodities decreased $ 124 million 2016 due 2022 lower energy prices capacity prices amortization palisades below- market ppa vermont yankee capacity revenue.
 sale rhode island state energy center 2015.
 lower volume entergy nuclear fleet more refueling outage days 2016 larger resupply options.
 2 outage second quarter entergy corporation


2013 2012.
 decrease net adjustments due profit booking rate aeronautics mfc mst segments.
 increase adjustments 2013 profit booking rate mst favorable resolution contractual matters.
 net adjustments 2014 $ 650 million unfavorable items reserves training logistics mst warranty reserve adjustments mfc.
 adjustments 2013 2012 $ 600 million $ 500 million unfavorable items profit reduction f-35 development contract profit reduction c-5 program 2013 aeronautics.
 research design development manufacture support upgrade advanced military aircraft unmanned vehicles.
 programs f-35 lightning c-130 hercules f-16 f-22 raptor c-5m super galaxy.
 results.
 2012
 net sales $ 14920 $ 14123
 operating profit
 margins 11. 1%. 1 %.
year-end $ 27600 $ 28000 30100
 net sales increased $ 797 million 6%.
 higher net sales $ 790 million f-35 contracts volume $ 55 million f-16 increased deliveries 17 contract $ 45 million f-22 risk retirements.
 offset lower sales $ 55 million f-35 volume $ 40 million c-130 fewer deliveries 24 25 decreased sustainment contract mix.
 operating profit increased $ 37 million 2%.
 higher operating profit $ 85 million f-35 $ 75 million f-22 risk retirements $ 50 million c-130 fewer deliveries $ 25 million c-5 program profit.
 offset lower operating profit $ 130 million f-16 decreased risk retirements increased deliveries $ 70 million sustainment decreased risk retirements volume.
 f-35 risk.
profit rate $ 105 million lower 2014.
 net sales decreased $ 830 million 6%.
 lower net sales $ 530 million f-16 program fewer deliveries 13 37 offset configuration $ million c-130 program fewer 25 offset increased sustainment $ 255 million f-22 program $ 205 million


debt restructurings loan concession borrower financial difficulties.
 loss mitigation include rate reductions principal forgiveness postponement amortization extensions bankruptcy discharges reaffirmation concession loss avoid foreclosure repossession.
 principal charged full principal interest potential incremental losses.
 factored estimate.
 defaults affected future economic conditions.
 loan until repaid collateral foreclosed charged.
 reserves $ million $ 580 million at december 31 2012 2011 tdr portfolio.
 table 71 summary debt restructurings millions.
.
.
.
 consumer lending $ 2318 $ 1798
 commercial lending 541 405
 tdrs 2859 2203
 nonperforming $ 1589 $ 1141
 1037 771
 credit 233 291
regulatory guidance 2012 debt restructurings $ 366 million bankruptcy reaffirmation concession liability consumer lending population.
 increased nonperforming loans $ 288 million.
 charge-offs fair value collateral less investment $ 128. 1 million.
 78% current payments december 31 2012.
 accruing loans six months performance restructured terms excluded nonperforming loans.
 credit cards small business consumer credit agreements restructured tdrs.
 loans status charged off 180 days past due.
 table loans classified tdrs change investments december 31 2012 2011.
 tdr concessions.
 principal forgiveness accrued interest.
 write down investment charge-off.
 rate reduction reduced interest rate interest deferral.
 future interest income.
 postponement/reduction scheduled amortization contractual extensions.
multiple concessions granted loan.
 principal forgiveness prioritized inclusion.
 principal forgiveness lower interest rate postponement amortization.
 rate reduction.
 interest rate reduction postponement amortization rate reduction.
 pnc financial services group.
 form 10-k


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 93% 89% 89 % ) december 31 2016 2015 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  2016.
 $ 1100. 6 cash equivalents marketable securities 31 conservative short-term bank deposits securities.
interest income investments subject to domestic foreign interest rate movements.
 2016 2015 income $ 20. 1 $ 22. 8 .
 100 basis-point increase interest rates income $ 11. cash equivalents securities impacted balances constant.
 subject to translation transaction risks.
.
 changes exchange rates affect revenues expenses.
.
 currencies british pound sterling argentine peso brazilian real japanese yen.
.
 dollar 10% operating income 4% ( 4 % all currencies international revenue expenses constant 2016.
 currency operations local currency.
 assets liabilities translated at exchange rates expenses average exchange rates.
 translation adjustments recorded loss.
 foreign subsidiaries collect revenues pay expenses in functional currency.
 subsidiaries other.
 liabilities susceptible to movements until final.
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.


federal realty investment trust schedule iii summary real estate accumulated depreciation - continued three years ended december 31, 2011 reconciliation accumulated depreciation amortization thousands ) balance december 31, 2008.
 additions during period 2014depreciation amortization expense.
 deductions during period 2014disposition retirements property.
 balance , december 31 , 2009.
 additions during period 2014depreciation amortization expense..
 deductions during period 2014disposition and retirements of property.
 balance , december 31 , 2010.
 additions during period 2014depreciation and amortization expense.
 deductions during period 2014disposition and retirements of property.
 balance , december 31 , 2011..
 103698 11869 938087 108261 11144 1035204 114180 21796 1127588.
 december 31 2008 846258 2014depreciation amortization 103698 deductions retirements 11869 december 31 2009 938087 2014depreciation amortization 108261 deductions retirements 11144 december 31 2010 1035204 2014depreciation amortization 114180 deductions retirements -21796 21796 december 31 2011 1127588 realty investment trust real estate accumulated depreciation december 31 2011 depreciation amortization 31 2008.
 2014depreciation amortization..
 deductions during period 2014disposition and retirements of property.
 balance , december 31 , 2009.
 additions during period 2014depreciation and amortization expense.
 deductions during period 2014disposition and retirements of property.
 balance , december 31 , 2010..
 additions during period 2014depreciation and amortization expense.
 deductions during period 2014disposition and retirements of property.
 balance , december 31, 2011.
 $ 846258 103698 ( 11869 ) 938087 108261 ( 11144 ) 1035204 114180 ( 21796 ) $ 1127588


company stock performance graph shows shareholder return dividend s&p 500 dow jones.
 index five years 27 2014.
 added s&p technology index.
 replaces s&p computer hardware index.
 assumes $ 100 invested common stock s&p 500 dow.
 index index market september 25 2009.
 historic stock price performance not indicative future performance.
 s&p mcgraw-hill companies.
.
.
.
.
 23 $ 100 invested 9/25/09 stock index reinvestment dividends.
 last day fiscal year common stock september 30th indexes.
.
 2010 2011 2012 2013 2014
 apple. $ 100 160 222
 s&p 500 index $ 100 110
 dow jones. supersector index $ 100 112 115 150 158
s&p 100 111 115 152 163 210


impact service interest cost benefit 1% change health care trend rate.
.
 liability future cost increases pre-65 medical supplement plan limited 5% per annum.
 employer trend rates.
 2007 amendment post-65 retiree coverage.
 three years.
 impact benefit cost recognized service life.
.
 stock compensation plans summarizes stock-based compensation expense millions.
 years 31
 $ 138 $ 124 $
 performance plans
 stock options
 employee stock purchase plans
 compensation expense
 tax benefit
 net tax $ 146 $ 141 $
 2009 converted stock administration system new service provider.
 reconciliation methodologies estimates $ 12 million reduction expense year december 31.
 employees performance-based service-based.
 three ten years grant.
fair value service-based awards based market value common stock grant.
 break employment forfeiture unvested awards.
 compensation expense recognized over service period.
 dividend equivalents paid on service-based rsus initial grant amount.
.
 vesting performance conditions revenue pretax income earnings per share five.
 performance not grant.
 performance-based market price common stock grant.
 compensation expense recognized over performance period additional vesting period.
 adjusted shares paid.
 payout range 0-200% units granted.
 dividend equivalents not paid performance-based rsus.
 granted 1. 6 million shares 2007.
 2009 2008 3. 5 million


.
 discount reflects incremental borrowing rate matches lifetime liability.
 changes discount rate sublease income impact amounts recorded.
 moving consulting legal fees.
 sponsor defined benefit pension plans.
 significant plans. netherlands canada.
.
 plans closed new entrants.
 ceased crediting future benefits.
.
 losses changes value obligation plan assets discount rate actuarial assumptions demographic experience asset performance not recognized net income.
 amortized into net income benefit cost.
 unrecognized gains losses deferred amortized into compensation benefits expense based average future service employees life expectancy.
.
.
 amendments cease crediting future benefits gains losses based life expectancy.
 amortize prior service expense credits plan changes.
december 31  2013 pension plans deferred losses statements.
 amortize unrecognized losses outside corridor 10% market-related value assets.
 incremental amortization future pension expense until amortized.
 table combined experience loss amortizing estimated 2014 amortization by.
.
 loss $ $ 1219 $ 402
 amortization
 estimated 2014 amortization loss $
 unrecognized prior service cost december 31 2013 $ 27 million.
.
.
 market-related valuation return benefit cost.
 recognizes 20% gains losses current year value remaining 80% over next four years.
 future value net benefit cost impacted deferred gains losses.
 december 31  2013 market-related value assets $ 1. 8 billion.
 market-related valuation funded status.
 plans.
record funded status statements fair value.
 december 31 2013 $ 1. 9 billion.
.
 value return.


record inventory obsolescence reserve difference between cost estimated realizable value based product sales projections.
 reserve calcu lated using estimated obsolescence percentage on trends sales.
 establish reserves for future events.
 pension post-retirement benefit costs offer benefits to employees domestic trust-based noncontributory defined benefit pension plan.
 unfunded non pension plan.
 domestic contributory defined contribution plan international pension plans deferred compensation arrangements other post- retirement benefit plans.
 future payouts benefit pension post-retirement plans subject to assumptions variables.
.
 evaluate assumptions with select assumptions.
 net earnings.
 discount rate for plan future net benefit cost based on review long-term bonds.
 domestic plans 3. 90%. international plans 1.%. and 7.%.
 discount rate domestic plans based portfolio long-term bonds aa rating major rating agency.
 used above-mean yield curve better settlement rate obligation cash flows match estimated defined benefit streams plans.
 benefit obligation higher $ 34 mil at june 2013-mean yield curve.
 international plans discount rate determined based yield curve high quality corporate bonds portfolio plan.
 fiscal 2013 expected return plan assets 7. 50%.
 varying rates 2. 25%. 7.%. international plans.
 long-term rate return historical rates investments investment strategies.
 2014 pension deferred compensation post plans.
 difference between actual expected return assets income.
 gains/losses net benefit cost.
 fiscal 2013 pension plans return $ 74 million expected return $ 64 million.
net deferred gain $ 10 million amortized over 7 to 22 years.
 return on assets international pen sion plans exceeded expectations strong performance fixed income equity.
 lower return.
 due to weakness fixed income offset strong equity returns.
 25 basis-point change 2013 pension expense 25 increase.
 $ -3. ( $ 3.
 return $ -2. 2.
 post-retirement plans health care impacted by cost trend rates.


entergy corporation subsidiaries management financial.
 settlement electric customers realize credits regulatory liability $ 107 million $ 66 million net-tax.
 costs amortized nine-year period december 2015.
 note 2 financial statements.
 volume/weather variance due favorable weather industrial usage offset weather residential sales.
 industrial usage expansion projects chemicals industry increased demand new customers.
 louisiana act 55 financing savings tax savings customers.
 tax savings 2010-2011 audit settlement louisiana act 55 financing storm costs hurricane gustav ike.
 note 3 financial statements settlement benefit.
 provision $ 23 million 2016 waterford 3 replacement steam generator offset $ 32 million 2015 uncertainty 3.
 note 2 financial statements.
 net revenue 2016 2015.
.
rhode island energy center -44
 nuclear volume -36
 fitzpatrick reimbursement agreement 41
 nuclear fuel expenses
 -4
 2016 net revenue $ 1542
 revenue wholesale commodities decreased $ 124 million due lower wholesale energy prices capacity prices average revenue per mwh higher fitzpatrick reimbursement agreement palisades vermont yankee capacity revenue.
 sale rhode island center.
 lower volume fleet more refueling outage days larger resupply options.


item 11 2014executive compensation incorporate executive director compensation headings board committees 201ccompensation benefits compensation committee proxy statement 2013 annual meeting november 20.
 item 12 2014security ownership owners management stockholder matters incorporate ownership common stock headings management proxy statement 2013 annual meeting november.
 table information may 31 , 2013 shares company common stock issued existing equity compensation plans.
 note 11 consolidated financial statements.
 plan category number securities issued options warrants rights weighted average exercise price securities future issuance plans approved 1765510 $ 34. 92 7927210 not approved 2014.
 plan category number securities issued options warrants rights weighted-average exerciseprice number securitiesremaining issuance
equity compensation plans approved 1765510 $ 34. 92 7927210 1
 not approved 2014
 1765510 $ 34. 92 7927210 1
 shares common stock issuance option warrant right global payments.
 2000 long-term incentive plan.
 2005 incentive plan 2000 non- employee director stock option plan employee stock purchase plan.
 2011 incentive plan.
 item 13 relationships transactions director independence affiliates independence board directors board committees statement 2013 annual meeting november 20.
 14 2014principal accounting fees services reappointment auditors 2013 annual meeting.


march 2000 company $ 850 million credit agreement banks loans letters credit maximum borrowing capacity.
 loans interest prime spread. 50%. libor spread 2%.
 spreads credit ratings term maturity.
 replaced $ 600 million revolving credit $ 250 million letter credit facilities.
 december 31 2001 $ 496 million available.
 commitment fees. 50%. per annum.
 debt borrowings unsecured obligations.
 may 2001 issued $ 200 million remarketable securities.
 mature june 15 2013 maturity no june 15 2014.
 first remarketing redeem roars 100% principal unpaid interest premium.
.
 interest accrues. 375%. until first remarketing set annually market rate bids.
.
 debentures convertible common stock conversion price $ 27. per share.
maturities debt december 31 2001 millions.
 2002 $ 2672
 2003 2323
 2004 1255
 2005 1819
 2006 1383
 12806
 $ 22258
 covenants 2019s recourse debt loan restrictive financial non-financial covenants.
 net worth cash flow debt capital.
 limitations additional debt dividends.
 provisions default.
 non-recourse debt financial non-financial covenants.
 limited subsidiary activity vary subsidiaries.
 reserves working capital limitations additional indebtedness.
 december 31 2001 $ 442 million restricted cash reserves balance sheets.
 restrict subsidiaries transfer retained earnings parent company.
 earnings $ 6. 5 billion at december 31  2001.


capital commitments ship construction capital expenditures refurbishment.
 expenditures $ 1. 6 billion $ 1. 2 billion $ 0. 7 billion 2019 2020 2021.
 export credit financing $. billion $. billion $. 2 billion.
 increase depreciation amortization expense.
 six ships 140000 gross tons 3300 berths delivery 2022 2027.
 breakaway class ship 168000 gross tons 4000 berths fall 2019.
 two explorer class ships 2020 2023.
 55000 gross tons 750 berths.
 oceania two allura class ships 2022 2025.
 67000 gross tons 1200 berths.
 combined contract prices 11 ships. 9 billion $. 1 billion.
.
 export credit financing 80% contract price.
 contractual breaches cancellations.
events forfeiture deposits claims losses impact business financial condition results.
 capitalized interest 2018 2017 2016 $ 30. 4 million $ 29. million $ 33. 7 million associated construction newbuild ships.
 off-balance sheet transactions contractual obligations interest payments long-term debt less than 1 year 1-3 years 3-5 years more 5 years.
 long-term debt $ 6609866 $ 681218 3232177 929088 1767383
 operating leases
 ship construction contracts 5141441
 port facilities 1738036
 974444 222427
 1381518
 15973855 2143649 4915507 5304579
 long-term debt includes discount premiums $ 0. 4 million capital leases.
debt deferred financing fees debt balance.
 operating leases offices vehicles equipment.
 ship construction contracts newbuild ships euro.
 dollar exchange rate.
 export credit financing banks.
 include leonardo explorer allura subject financing italian government approvals.
 note 17 2014 financing.
 port facilities.
 interest includes fixed variable rates libor constant.
 future commitments service maintenance business enhancement capital expenditure contracts.
 excludes $ 0. 5 million unrecognized tax benefits.


consolidated financial statements 2013 millions guaranteed obligations subsidiaries leases credit facilities.
 parent company guarantees lease obligations $ 857. $ 619. december 2016 2015 credit facilities $ 395. $ 336.
 non-payment pay.
 no material assets pledged guarantees.
 obligations estimated future contingent acquisition obligations payable cash december 31.
 2021
 deferred acquisition payments $ 76. $ 31. 25. 11. $ 180.
 redeemable noncontrolling interests call options.
 contingent acquisition payments $ 111. $ 108. 58. 12. 30. 15. $ 336.
 acquisitions redeemable noncontrolling interests call options similar terms conditions.
 estimated amounts paid earliest date.
redeemable noncontrolling interests exercisable at discretion owners as of december 31 2016.
 estimated payments of $ 25. 9 included within total payments 2017 into 2018 until exercised or expired.
 at current exercise price payable cash not redemption value.
 majority payments contingent upon operating performance targets conditions agreements subject to revision.
 see note 4 for information payment structure acquisitions.
 involved in legal proceedings subject to investigations inspections audits inquiries governmental authorities.
 allegations vary contract employment tax intellectual property.
 evaluate cases record liabilities for losses from proceedings.
 certain cases loss early stages.
 management believes on financial condition operations cash.
april 10 2015 federal judge brazil authorized search agency offices e3o paulo brasilia investigation payments government contracts.
 company investigated remedial disciplinary actions.
 concluding settlement government.
 contacted justice antitrust video production practices cooperating.


tax returns examination foreign jurisdictions.
 include germany italy switzerland.
 possible audits twelve months impact results operations financial position.
.
 2 million shares participating preferred stock authorized issuance none outstanding december 31 2007.
 numerator basic diluted earnings per share net earnings.
 basic earnings weighted average shares.
 diluted earnings shares dilutive stock options equity awards.
 reconciliation weighted average shares basic diluted computations years ending december 31.
 shares net earnings per.
 dilutive stock options.
 diluted earnings.
. dilutive stock options. diluted earnings. year december 31 2007. million options purchase shares common stock not included diluted earnings per share prices greater than average market price common.
years 2006 2005 7. 6 million 2. 9 million options not included.
 2005 authorized stock repurchase $ 1 billion 2007.
 2006 additional repurchase $ 1 billion 2008.
 acquired 19345200 shares $ 1378. 9 million.
.
 design develop manufacture market reconstructive orthopaedic implants joint spinal trauma products.
 healthcare services.
 revenue less than 1 percent total net sales.
 manage operations three segments pacific.
 basis reportable segment information.
 management evaluates segment performance profit operations corporate expenses share-based compensation settlement acquisition inventory intangible asset amortization.
 operations research development engineering medical education brand management corporate legal finance human resource.
 manufacturing logistics.
 intercompany transactions eliminated.
management reviews accounts receivable inventory property plant equipment goodwill intangible assets segment u. s puerto rico manufacturing operations logistics corporate assets.
.
 consolidated financial statements


capital cash flows 2016 2015 2014.
 table summarizes cash flow operating investing financing millions.
 $ 1847. 8 $ 1679. 7 1529.
 investing -961. 2 961. 1482. -959. 959.
 financing -851. 851. 2 -239. 7 239. -708. 708.
 changes assets liabilities acquisitions divestitures decreased cash flow $ 205. 2 million 2016 $ 316. 7 million 2015 accounts receivable increased $ 52. 3 million timing billings $ 15. 7 million 2015.
 sales outstanding 38. 3 days 26. 25. 8 days deferred revenue.
 accounts payable decreased $ 9. 8 million $ 35. 6 million 2015 timing.
 cash obligations $ 11. million lower.
decrease cash capping closure post-closure obligations due payments 2015.
 cash remediation obligations $ 13. 2 million lower 2016 timing.
 cash income taxes $ 265 million $ 321 million 2016 2015.
 tax depreciation tax credits.
 cash interest $ 330. 2 million $ 327. 6 million.
 changes assets liabilities decreased cash flow $ 316. 7 million 2015 $ 295. 6 million 2014 accounts receivable increased $ 15. 7 million timing billings $ 54. 3 million 2014.
 sales outstanding 38 days 25 days.
 accounts payable increased $ 35. 6 million $ 3. 3 million due timing payments.


biomet holdings.
 subsidiaries 2017 10-k annual report financial statements.
 table summarizes liabilities integration plans millions employee termination benefits contract terminations.
 balance december 31 2016 $ 38. $ 35. $ 73.
 12. 5. 17.
 cash payments. 47.
 foreign currency exchange rate changes 1.
 balance december 31 2017 $ 14. 8 $ 30. 3 $ 45.
 recognized employee termination benefits acquisitions operational excellence initiatives.
 project personnel expenses salary benefits travel expenses notified termination quality enhancement remediation.
 relocated facilities expenses moving lease expenses costs relocation.
 litigation matters expenses settlement.
 royalty patent product liability commercial litigation.
contract termination costs agreements integration distribution model business restructuring operational excellence.
 sales agents distribution agreements.
 information technology integration costs non- capitalizable platforms software quality excellence initiatives.
 recognized $ 209. million intangible assets-process research development projects.
 2017 2016 impairment losses $ 18. 8 million $ 30. million.
 termination projects.
 recognized $ 479. million assets trademarks indefinite.
 reclassified finite life asset impairment $ 8. million.
 loss disposal sold economic useful life reduced integration quality operational excellence initiatives.
 contingent consideration adjustments fair value obligations prior owners.
 r&d agreements upfront payments intellectual property.
 investments maturity three months.
 valued at cost.
.
grant credit customers maintain allowance for doubtful accounts.
 determine allowance by geographic market credit experience creditworthiness information.
 collect accounts receivable write-off against allowance.
 allowance doubtful accounts $ 60. 2 million $ 51. 6 million as of december 31 2017 2016.
 lower cost first-in first-out.
 property plant equipment carried cost less accumulated depreciation.
 computed lives ten to forty years buildings three to eight years machinery equipment.
 maintenance repairs expensed.
 review property equipment for impairment.
 impairment loss future cash flows less than carrying amount.
 carrying exceeds fair value.
 capitalize costs.
 include materials services


customer needs handle demand changes.
 industrial engineering productivity.
 2022 fuel prices uncertainty economy fuel price projections difficult volatile fuel prices sensitive global.
 domestic demand refining capacity geopolitical issues weather conditions factors.
 reduce impact fuel price earnings recovery fuel surcharge programs expand fuel conservation efforts.
 capital plan capital investments $ 2. 5 billion including ptc revised conditions laws affect returns.
 liquidity capital resources plan.
 train control 2015 spend $ 200 million 2010 development ptc.
 $ 1. 4 billion 2015.
 installing new system upgrading locomotives digital data communication equipment.
 financial expectations cautious economic conditions volume increase 2009.
 anticipate pricing opportunities productivity improvements.
 operations revenues 2009 2008 2007 change.
freight revenues $ 13373 $ 17118 $ 15486 22 % 11% 11 %
 other revenues 770 852 797
 $ 14143 $ 17970 $ 16283 21 % 10% 10 %
 revenues six commodity groups.
 vary volume average revenue.
 price traffic fuel surcharges.
 incentives volumes locations reduction revenues.
 revenues percentage-of-completion.
 allocate transit time expenses.
 revenues subsidiaries commuter accessorial revenues equipment services.
 obligations.
 freight revenues volume six commodity groups decreased 2009 economic weakness.
 largest volume declines automotive industrial


item 5.
 common equity matters issuer purchases price dividends.
 class common stock quoted nasdaq global market symbol. high low closing sale prices 2014 2013.
 2014 first quarter $ 62. 54.
 second quarter.
 third quarter.
 fourth quarter.
 2013
 first quarter $ 38. $ 34.
 second quarter.
 third quarter.
 fourth quarter.
 february 13 2015 8208 holders common stock.
 february 10 2015 213247004 238435208 shares held charles.
 remaining 25188204 trusts.
.
 no trading market b common stock.
.
 2012 paid cash dividend $ 1. per share $ 453 million class b common stock stockholders business december 14 2012.
 additional dividends may elect.
future dividends earnings capital debt.
 retain earnings support future growth expansion repurchase common stock.
 201citem 7.
 financial condition liquidity capital resources annual report 10-k.
 securities equity compensation plans.
 201citem 12.
 security ownership stockholder matters.


death employee beneficiary receives benefits insurance company receives remainder.
 minimal cash payments policies.
 net pension cost split-dollar life insurance arrangements $ 5 million 2014 2013 2012.
 company recorded liability future death benefits $ 66 million $ 51 million 2014 2013.
 amended reinstated june 1 2013.
 defer base salary cash incentive compensation 401 ( k ) plan limitations.
 invest deferred amounts investment alternatives plan.
 allows company matching contributions first 4% compensation deferred maximum $ 50000 officers lost matching amounts discretionary amounts.
 subsidiaries employees.
. 401 plan contributory.
 matching contributions based contributions.
 expenses defined contribution plans 2014 2013 2012 were $ 31 million $ 32 million $ 30 million.
january 1 2012 company 401 k ) employees.
 31 2014 2013 2012 no contributions.
.
 share-based compensation plans incentive plans stock options appreciation rights employee purchase plan grants options common stock employees option holders.
 option exercise price 100% fair market value common stock.
 awards contractual life five fifteen years vest two four years.
 change control exercisable holder terminated quits 24 months change control.
 employee stock purchase plan common stock payroll deductions 20% compensation.
 purchase more $ 25000 stock year.
 per share 85% fair market value stock.
 two purchase periods october 1 march 31 second april 1 september 30.
 years december 31 2014 2013 2012 employees purchased. million. shares prices $ 51. $.
company calculates employee stock option grant black-scholes pricing model.
 2014 2013 2012 $ 11. 02 $ 9. 52 $ 9. 60  assumptions.
 volatility 21. 7%. 7 % 22. 1%. 1 % 24. 0%.
 risk-free interest rate. 6%. 6 %. 9%. 9 % 8%. 8 %
 dividend yield 2. 5%. 5 %. 4%. 4 %. 2%. %
 life 5.
 uses implied volatility traded options stock.
 future price trends.
 risk-free interest rate average daily closing rates.
.
 dividend yield future payouts.
 life average contractual term weighted-average vesting period.


cdw corporation subsidiaries financial statements 2013 denominator impacted common shares ipo underwriters 2019 exercise.
 shares issued july 2 31 partially reflected 2013 denominator.
 reflected 2014 denominator.
 note 9.
 dilutive effect restricted stock options mpk plan units diluted earnings share treasury.
 reconciliation basic shares diluted shares.
 2013 2012 2011
-average shares.
 dilutive securities.
.
 2013 2012 2011 diluted earnings per share excludes impact. potential common shares-dilutive.
.
 deferred compensation plan 10 2010 purchase $ 28. 5 million senior subordinated debt restricted debt unit plan unfunded nonqualified deferred compensation plan.
 28500.
 december 31 2013.
rdus outstanding vest daily three january 1 2012 through december 31 2014.
 participants no rights debt.
 compensation plan based principal interest.
 principal credits $ 28. 5 million senior subordinated notes redemption premium equivalents.
 interest credits interest earned march 2010 october 12 2017.
 interest 2010 2011 deferred until 2012 paid semi-annually.
 payments $ 1. 7 million $ 1. 3 million april october 2013.
 proceeds borrowings $ 324. million senior subordinated notes august 1 2013.
 amended rdu plan increase retentive value.
 principal converted cash-denominated pool redemption senior notes.
 added $ 1. 4 million principal component december 31 2013 redemption premium equivalents.
amended rdu plan redemption notes ceased accrue credits.


printing papers sales 2006 decreased 3% 2004 sale.
 coated papers business.
 operating profits 43% higher 2005 33% 33 % higher 2004.
 earnings improved.
 pulp european papers offset declines brazilian papers.
 higher sales price united states brazil 284 improved manufacturing operations reduced lack-of-order downtime 41 million higher sales volumes 23 offset higher raw material energy costs 109 million higher freight costs 45 million fixed assets 128 million.
 higher earnings.
 offset lower european brazilian papers.
 555000 tons downtime 150000 tons lack-of-order.
 970000 tons downtime 2005 520000 tons lack-of-orders.
.
.
 net sales $ 3. 5 billion. billion 2005. 3 billion 2004.
volumes increased 2006 cut-size printing.
 price increases.
 lack-of-order downtime declined 450000 40000 tons closure uncoated freesheet machines.
 earnings doubled.
 costs freight energy.
 mill operations performance labor $ 30 million machine shutdowns.
.
 coated papers net sales $ 920 million 2006 $. billion 2005 $. billion 2004.
 profits 2006 26% 26 % lower.
 small operating loss 2004.
 third quarter 2006.
 sales volumes.
 coated freesheet groundwood paper higher increases.
 input costs energy wood raw materials increased.
 machine efficiency mill cost savings.
.
 pulp sales 2006 $ 509 mil $ 526 million $ 437 million 2005 2004.
 paper tissue pulp.
 higher.
earnings increased 30% 2005 2004 higher sales prices.
 costs wood energy higher.
 poor operations carolina.
 paper sales $ 496 higher 465 2005 $ 417 million 2004.
 higher volumes uncoated freesheet paper strengthening brazilian currency.
.
 sales price improved uncoated freesheet paper wood chips.
 profits $ 122 million down 134 million 2005 $ 166 million 2004 extended mill outage boiler environmental upgrades.
 papers sales $ 1. 5 bil lion 1. 2005. 2004.
 volumes higher eastern european mills.
 sales price increased.
 earnings rose 20% 2005 15% below 2004.


jpmorgan chase.
.
.
.
.
 securities borrowed cash collateral.
 government equity.
 market value daily calls additional collateral.
 fees interest income expense.
 table collateralized financings.
 31 millions 2008 2007
 securities purchased resale agreements $ 200265 $ 169305
 borrowed
 repurchase agreements $ 174456 $ 126098
 loaned
 resale agreements $ 20. 8 billion $ 19. 1 billion 2008 2007.
 securities borrowed $ 3. 4 billion.
 repurchase agreements $ 3. billion $ 5. 8 billion 2008 2007.
 jpmorgan chase pledges instruments repurchase agreements.
 pledged securities sold repledged consolidated balance sheets.
december 31 2008 firm received securities collateral $ 511. 9 billion.
 collateral obtained resale borrowing agreements.
 $ 456. 6 billion repledged delivered used repurchase lending short sales.
 accounting origi nated purchased trading strategy.
 loans acquisition.
 purchased loans credit deterioration payments credit-impaired.
 measurement framework loans financial statements 2022 principal amount net loan losses unearned income deferred loan fees costs investment lower cost fair value valuation changes revenue held-sale fair value trading purchased credit-impaired loans investment account ed sop 03-3 measured fair value future credit losses.
 allowance loan losses not recorded acquisition date.
 note 5 pages 156 2013158 annual report fair value accounting.
note 6 pages 158 2013160 annual report loans trading assets.
 interest income recognized method level rate return term.
 loans transferred-sale portfolio.
 recorded lower cost fair value.
 credit-related losses charged losses interest rates recognized noninterest revenue.
 loans transferred lower cost fair value.
 assessed impairment firm 2019s allowance methodology.
 note 15 pages 178 2013180 annual report.
 nonaccrual loans accrual interest continued.
 payment interest doubt 90 days past due collateral insufficient.
 loans charged allowance losses loss realized.
 interest accrued not collected reversed against interest income.
 amortiza tion net deferred loan fees suspended.
 interest income nonaccrual loans recognized received cash.
doubt lectibility loan principal cash carrying value.
 loans restored future interest principal assured.
 consumer loans charged losses stages delinquency federal financial institutions council policy.
 credit card loans charged month 180 days past due 60 days bankruptcy.
 residential mortgage products charged value 180 days past due.


financial statements gs bank usa fdic-insured new york state-chartered bank member federal reserve system supervised regulated federal reserve board fdic new york state department financial services consumer financial protection bureau subject minimum capital requirements bank holding companies.
 computes capital ratios state banks basel 1.
 tier 1 capital ratio 6% total capital ratio 10% 1 leverage ratio 5%.
 agreed maintain capital ratios.
 tier 1 capital ratio 8% total capital ratio 11% leverage ratio 6%.
 compliance capital requirements december 2012 2011.
 regulatory capital ratios basel 1 federal reserve board.
 2012 2011
 1 capital $ 20704 $ 19251
 tier 2 capital $
 total capital $ 20743 $ 19257
 risk-weighted assets $ 109669 $ 112824
1 capital ratio 18. 9%. 9 %. 1%.
 capital. 9%. 9 %. 1%.
 tier 1 leverage ratio. 6%. 6 % 18. 5%. 5 %
 january 1 2013 gs bank usa revised market risk regulatory framework.
 increased capital requirements capital ratios 2013.
 basel 2 framework.
.
 capital requirements impacted june 2012 modifications capital adequacy regulations risk-based capital ratios.
 framework common equity tier 1 ratio minimum 1 capital ratio supplementary leverage ratio.
 impacted dodd-frank act stress tests.
 deposits insured fdic.
 cash reserves.
 $ 58. 67 billion $ 40. 06 billion december 2012 2011 exceeded required reserve amounts $ 58. 59 billion $ 39. 51 billion.
gs bank usa subsidiaries.
 regulated by federal reserve board.
 regulations limit credit extensions require market terms.
.
 subsidiaries include gsib gs bank bank subject minimum capital requirements.
 december 2012 2011 gsib compliance capital requirements.
 january 18 2013 gs bank europe surrendered banking license central bank ireland deposits gsib.
 2012 annual report


default under debt instruments including senior notes subject to acceleration maturity.
 liquidity repay indebtedness.
 seek amendment or repay debt with new debt equity asset sales.
 amend credit facilities raise capital repay obligations maturities accelerated.
 to governmental agencies entities under environmental regulations landfill operations closure costs performance collection landfill transfer station contracts.
 surety bonds letters of credit insurance policies trust deposits in restricted cash marketable securities consolidated balance sheets.
 determined by state environmental regulations.
.
 require third-party engineering specialist determine costs.
 from obligation.
.
 contract performance varies by.
 provide assurance for insurance program collateral for performance obligations.
 increase in financial assurance requirements during 2014 may.
financial instruments issued not indebtedness.
 no liability not reflected consolidated balance sheets record capping closure post-closure self-insurance liabilities.
 underlying obligations recorded fulfill.
.
 no debt obligations leases not debt.
 guarantee third-party debt.
 free cash flow.
 operating activities purchases property equipment proceeds sales.
 free cash flow years 31 2013 2012 2011 calculated millions.
 operating activities $ 1548. 2 $ 1513. $ 1766. 7
 purchases property equipment -880. 880. 903.
 proceeds sales property 23. 28. 34. 6
 free cash flow $ 691. 3 $ 639. $ 864.


brokerage asset management 6% citi holdings december 31 2009 retail brokerage asset management businesses.
 2009 divestitures smith barney nikko cordial securities.
 31 had $ 35 billion assets $ 26 billion 49% interest mssb jv 13 billion investment loans $ 9 billion asset management insurance businesses half transferred latam rcb first quarter 2010.
 morgan stanley purchase citi remaining stake mssb jv over three years 2012.
 2009 results include $. billion gain $. billion sale smith barney.
 % change.
.
.
.
 net interest revenue $ 432  $ 1224 $ 908 35%
 non-interest revenue 14703
 interest expense $ 15135 $ 8423 $ 10659 80% 21
operating expenses $ 3350 $ 9236 $ 7960 64 % 16%
 net credit losses $ 3 $ 10 2014 70 %
 credit reserve 36 100%
 unfunded lending commitments 2014
 benefits claims $ 155  $ 205  $ 154 33%
 provisions loan losses benefits claims $ 189  $ 223 $ 158 41%
 income operations before taxes $ 11596 $ 2541
 taxes 4489 -272
 operations $ 7107 $ -764 $ 1707
 noncontrolling interests -179
 $ 7095 $ -585 $ 1672
 assets $ 35  $ 58 4% 4
 eop deposits
.
 interest expense increased 80% $ 11. 1 billion pretax gain.mssb jv transaction $ 320 million pretax gain managed futures.
 revenue decreased smith barney nikko asset management retail investments.
 $ 347 million gain citistreet settlement auction securities 393 million.
 operating expenses decreased 64% smith barney nikko management engineering 2008 one-time expenses $. 9 billion intangible impairment $. 2 billion restructuring. write- downs.
 loan losses benefits claims decreased 15% 50 million reserve million.
 assets decreased 40% sales nikko management managed futures business. smith barney assets.
.
 interest expense decreased 21% lower revenues smith barney nikko asset management higher markdowns investments.
 operating expenses increased 16% $. billion impairment nikko asset. billion restructuring $. billion write-downs.
loan losses benefits claims increased 65 million $ 52 million.
 assets increased 4%.


2018 form 10-k unrecognized tax benefits change twelve months expiring statutes audit activity tax payments proceedings transfer decisions jurisdictions.
 december 31 2018 $ 96 million tax liabilities $ 1 million assets uncertain tax positions twelve months.
 business 120 countries subject income taxes jurisdictions.
 internal revenue examinations completed closed 2015.
.
 unresolved issues operations financial cash flows.
 provision income tax uncertainties.
.
 long-term incentive plan stock options equity awards employees directors.
 57. 4 million shares common stock authorized issuance 2027.
 46. 2 million shares stock available december 31 2018.
 stock-based compensation cost $ 121 million $ 37 million 2018 2017.
 measured date grant fair value recognized vesting period.
compensation cost determined awards reduced cost estimated forfeitures historical rates.
 estimated grant revised reflect forfeitures.
 no stock-based compensation costs.
 officers directors employees.
 vest equal three-year vesting period employed.
 fair value stock option estimated black- scholes option pricing model.
 weighted average assumptions.
 expected life options.
 average vesting term original contractual term.
 volatility historical volatility five competitors six year period.
 risk-free interest rate.
 treasury yield curve.
 dividend yield five year history dividend payouts.
 risk-free interest rate 2. 5%. 1%
. 7%. 4%. 4
 dividend yield.
 average fair value per share at grant date $ 10. 34 $ 12.


risk loan classes.
 higher fico scores lower ltvs lower risk.
 lower higher ltvs locations higher risk.
 first quarter 2013 refined process home equity residential real estate asset quality indicators.
 determining lien position ltv 67 68.
 table 67 recorded investment.
 68 outstanding balance.
 2013 2012 balance disclosures.
 consumer impaired loan estimates credit impacts.
 influenced real estate values payment patterns fico scores economic environment ltv ratios date origination.
 risk cash flows.
 note 6 purchased loans.
 table 66 home equity residential real estate balances millions december 31 2013 $ $ 42725 5548 6638 government insured residential real estate mortgages 2279 adjustments $ 51512 $ 51160 recorded investment.
 outstanding balance.
 pnc financial services group.
 2013 10-k.
 millions december 31
 home equity residential real estate loans 2013 $ 44376 $ 42725
 5548 6638
 government insured real mortgages 1704 2279
 accounting adjustments 2013 loans -116 -482
 loans $ 51512 $ 51160
 risk loan.
 higher fico scores lower ltvs lower risk.
 ltvs higher.
 quarter 2013 refined process home equity residential real estate asset quality indicators.
 lien position ltv table 67 68.
 table 67 recorded investment.
 68 balance.
 2013 2012 balance disclosures.
 impaired loan cash flows credit impacts.
cash flow influenced credit real estate values payment patterns fico scores economic environment ltv ratios date origination.
 risk cash.
 note 6 loans.
 table 66 home equity residential real estate balances millions $ $ 42725 5548 6638 government insured mortgages 1704 2279 adjustments loans $ 51512 $ 51160.
 outstanding balance.
 pnc financial services group.
 2013 form 10-k


american tower corporation subsidiaries financial statements 2014 maturities december 31 2003 principal payments long-term debt capital leases next five years estimated thousands december 31.
 2004 $ 77622
 2005 115444
 2006 365051
 2007 728153
 2008 808043
 1650760
 cash obligations 3745073
 12. 25%. notes -339601
 related warrants -44247
 balance december 31 2003 $ 3361225
 holders convertible notes repurchase maturity 2009 2010 pay purchase shares common stock.
 6. 25%. 5. 0%. 2006 2007.
.
 interest rate protection agreements 50% variable rate debt.
 exposed credit risk counterparty.
 current value.
 contracts december 31 2003 credit worthy institutions.
 three interest rate caps $ 500.interest rate 5% 2004.
 2003 2002 liabilities instruments $ 0. million $ 15. 5 million long-term liabilities balance sheet.
 2003 unrealized loss $ 0. 3 million tax benefit $. 2 million reclassified $ 5. 9 million $ 3. 2 million operations.
 2002 unrealized loss $ 9. 1 million tax benefit $ 4. 9 million reclassified $ 19. 5 million $ 10. 5 million.
 hedge ineffectiveness gain $ 1. million loss $ 2. 2 million 2002 2001 loss investments statements.
 derivative instruments.
 reclassifying derivative losses twelve months no loss december 31 2003.


2022 unrestricted sell assets merge companies.
 exceptions senior permit incur additional secured.
 senior credit facilities require maintain covenants maximum leverage bank debt leverage interest coverage capital expenditures.
 consolidated net bank debt adjusted ebitda ratio eliminated 2005.
 december 31 2006 financial covenants debt agreements.
 payments debt short term borrowings.
 $ 2 million accounting adjustment assumed debt.
.
 obligations.
 retirement disability surviving pensions.
 benefits vary legal economic conditions.
 commitments defined contribution benefit plans.
 dependent years service compensation.
 supplemental retirement benefits non-qualified.
 tax.
 trusts established non-qualified plans.
 company sponsors defined benefit pension plans north america asia.
 december 31 2006 company.
pension plan 84% 76% celanese assets liabilities.
 trusts administer majority.
 pension costs retirement plans actuarially determined.
 sponsors contribution plans north america asia.
.
 contributions $ 11 million $ 12 million 8 million $ 3 million years 2006 2005 nine months 2004 three months 2004.
 financial statements 2014


sfas.
 142 goodwill intangible assets not amortized subject periodic assessment impairment fair-value-based test.
 deductible tax.
 company performs annual test impairment may.
.
 2006 no impairment 2006.
 allocated $ 15. 8 million purchase price in-process research development projects.
 acquired projects.
 cyvera veracode technology beadxpress reader.
 50% 25% 25 % complete.
 december 31 2006 90% 90 % 80% 80 % ) complete.
 value ipr&d determined costs net cash flows discounting value.
 revenue projections reduced probability new technology market sizes growth factors trends new product introductions.
 net cash flows based on estimates cost sales operating expenses income taxes.
 rates cash flows based estimated cost capital calculations.
forecast risks growth profitability discount rates 30% appropriate for ipr&d.
 company believes discount rates commensurate with projects development uncertainties economic estimates.
 if projects not developed sales profitability may.
 assumptions ipr&d analysis reasonable acquisition.
 no assurance assumptions project sales development costs profitability.
 acquisition technological feasibility research development no alternative future uses.
 costs expense second quarter 2005.
 unaudited information shows results operations years january 1 2006 2 2005 acquisition.
 revenue $ 73501 $ 50583
 net loss -6234 ( -9965 ( 9965
 loss per share. 15. 27.
.
 consolidated financial statements 2014


pulp market demand.
 sales price improved 2007 higher prices softwood hardwood fluff pulp.
 earnings $ 104 mil $ 48 million 2006 $ 37 2005.
 offset costs energy chemicals freight.
 demand pulp strong increase.
 input costs freight increased spending mill maintenance outages.
 non-durable goods processed foods poultry meat agricultural products.
 raw material energy freight costs manufacturing effi product mix.
 net sales 2007 increased 6% 6 $ 5. 2 billion $ 4. 2006. 2005.
 profits 26% 26 % higher 2006 double 2005.
 improved price realizations 147 million sales volume increases offset higher raw material freight costs 18.
 gain $ 13 million 2006 sale property costs $ 52 million 2007 conversion paper machine lightweight.
segment 165000 tons downtime 2007 market 135000 2006.
 packaging.
 $ 5245 $ 4925
 profit $ 501
 american packaging sales 2007 $ 3. 9 billion. 2006. 2005.
 profits $ 407 million 327 2006 170 2005.
 containerboard shipments higher paper machine pensacola converted lightweight linerboard.
 sales price realizations higher price increases.
 margins improved export demand.
 performance strong mill maintenance outages higher.
 costs wood energy chemicals recycled fiber increased.
 results $ 52 million conversion pensacola paper machine.
.
 converting sales volumes lower demand.
 earnings improvement price increases.
 higher sales prices fiber raw material freight costs.
 sales volumes increase price increases.
 additional mill maintenance outages freight input costs rise wood.
.
 sales 2007 $ 1. billion. 2006 880 million 2005.
 volumes flat weakened.
 profits $ 88 million 69 2006 53 2005.
 margins improved.
 conversion costs improvement.
 first quarter 2008 sales volumes strong fruit vegetable season.
 profit margins lower.


consolidated financial statements 2014financial instruments collateral-party flooring credit insurance company distribution retail partners.
 one customer accounted 11% trade receivables september 29 2007 no customers 10% receivables september 30 2006.
 table summarizes activity allowance doubtful accounts september 29 30 24 2007 2006 2005.
 beginning allowance balance $ 52  $ 46 $ 47
 costs expenses
 deductions
 ending balance $ 47 $ 52 $
 vendor non-trade receivables manufacturing vendors material.
 purchases.
 receivables totaled $ 2. 4 billion $ 1. 6 billion september 29 2007 30 2006.
 reflect sale net sales profits until products sold end cost.
 foreign exchange risk.
 currency forward option contracts risk future cash revenue cost.
company accounting policies non-hedge.
 records derivatives balance fair value.


operations estimated fair value acquired assets liabilities recorded in consolidated financial statements acquisition.
 fiscal 2016 presented effects cadence 2019s financial results.
 fair values determined inputs not market.
 see note 16 consolidated financial statements.
 trust children lip-bu tan president less than 2% 2 rocketick technologies.
 wife co-trustees disclaim interest.
 board directors reviewed transaction concluded.
.
 recused from valuation.
.
 financial advisor fairness opinion.
 acquired jasper design automation. provider analysis solutions mountain view.
 acquired technology complements cadence system design verification platforms.
 cash consideration closing $ 28. 7 million $ 139. 4 million.
 payments employees third quarter fiscal 2017.
 completed two business combinations 2014 cash $ 27.$ 2. million.
 acquisition $. million $. 7 million $ 3. 7 million 2016 2015 2014.
 professional fees administrative costs consolidated income statements.
.
 changes carrying carrying amount.
 balance january 3 2015 $
 foreign currency -1995
 january 2 2016 551772
 23579
 -2587
 december 31 2016 $ 572764
 goodwill impairment test fair value unit exceeded carrying assets no impairment.


consolidated financial statements.
 less liquid non-financial.
 table presents type.
 millions december 2012
 property leasehold improvements 8697
 goodwill
 income tax-related
 equity-method
 miscellaneous receivables
 $ 39623 $ 23152
.
 accumulated depreciation amortization $ 9. 05 billion $ 8. 46 billion december 2012 2011.
.
 $ 149 million intangible assets sale.
 13 goodwill.
.
 24 income taxes.
.
 investments fair $ 5. 54 billion $ 4. 17 billion december 2012 2011 instruments. option
.
 $. 77 billion assets reinsurance business sale december 2012.
.
 $ 16. 92 billion available-for-sale securities assets fair value. liabilities $.62 billion liabilities accrued expenses. note 8 insurance-related assets liabilities sale.
 firm sale majority stake reinsurance business 2013 material gain loss.
 consolidate business.
 property leasehold improvements equipment included $ 6. 20 billion $ 6. 48 billion december 2012 2011.
 remainder held by investment entities consolidated.
 property equipment depreciated useful life.
 leasehold improvements amortized life lease.
 costs software capitalized amortized life.
 property leasehold improvements equipment tested for impairment.
 policy impairment testing assets.
 note 13.
 goldman sachs 2012 annual report


systems incorporated financial statements accounting uncertainty income taxes 2014 2013 changes unrecognized tax benefits summarized.
 2013
 beginning balance $ 136098 $ 160468
 increases tax benefits 2013
 18877 16777
 settlements taxing authorities -995 -55851
 statute limitations
 foreign exchange gains losses -3646 -1474 1474
 balance $ 148848 $ 136098
 november 28 2014 combined accrued interest penalties tax approximately $ 14. 6 million.
 income tax returns.
 federal.
 state jurisdictions.
 continual examination tax authorities.
 major tax jurisdictions ireland california.
. earliest fiscal years examination 2008 2010.
 outcomes adjustments.
 no assurance final determination operating results financial position.
july 2013.
 income tax examination 2008 2009 completed.
 accrued tax interest $ 48. 4 million long-term taxes.
 settled tax obligation cash income tax assets $ 41. 2 million $ 7. 2 million tax benefit third quarter 2013.
 timing resolution tax uncertain tax payments audit settlement.
 fluctuations balance sheet.
 months audits conclude statutes limitations expire.
 decreases tax benefits $ 0 to $ 5 million.
.
 2014 fourth quarter vacate research development facility china sales marketing facility russia.
 350 positions restructuring charges $ 18. 8 million.
 2015 vacate facilities.
 value future contractual obligations insignificant.
 reductions workforce consolidation facilities.
 november 28 2014 restructuring plans complete.
cash outlays obligations plans impact statements significant.


allocated bases.
 expense repairs maintenance $ 2. billion 2011 $ 2. billion 2010 $ 1. 9 billion 2009.
 capital leases recorded lower net value minimum lease payments leased asset.
 amortization expense computed straight-line method shorter estimated lives.
.
 accounts payable current liabilities.
.
.
.
 accounts payable $ 819 $
 income taxes
 wages
 dividends
 casualty costs
 interest
 equipment rents
 accounts payable liabilities $ 3108 $ 2713
.
 instruments derivative instruments interest rates fuel prices.
 not party leveraged derivatives speculative purposes.
 hedge accounting effectiveness.
 relationships instruments items risk- management objectives strategies transactions assessing hedge effectiveness.
market value derivative instruments hedge charged to earnings.
 use swaps collars futures forward contracts mitigate risk adverse interest rates fuel prices limit benefits favorable interest rate fuel price movements.
 credit risk risk selecting value hedged item.
 manage credit risk high credit standards counterparties settlements.
 december 31 required collateral.
 determination fair value current values future cash flows.
 rate hedges exposure adjusting fixed floating rate debt instruments.
 manage mix rate debt targeted amounts.
 employ derivatives swaps mix.
 flexibility interest costs rate mix evaluating fixed-rate debt securities.
 swaps convert debt from to variable rates hedge risk.
 account swaps as fair value


hologic  inc.
 consolidated financial statements future debt payments.
 2008 $ 1977
 2009 1977
 2010
 2011 1422
 2012 3846
 2014
 $ 11199
.
 derivative instruments hedging agreements interest rate swaps acquisition acquired interest rate swap contracts convert floating interest-rate debt obligations fixed rates.
 agreements qualify hedge accounting financial accounting standards.
 marked change fair value.
 terminated interest rate swaps fourth quarter 2007 gain $ 75.
 assumed foreign currency contracts hedge foreign currency fluctuations assets liabilities.
 exposures offset gains losses forward contracts.
 short- term 6 to 12 months.
 trading speculative purposes.
 not cash flow fair value hedges.
 effective hedges.
forward contracts marked market recorded balance sheet fair value assets liabilities.
 changes value exposures income statements.
 september 29 2007 forward contracts aeg acquisition matured no contracts outstanding.
.
 2 2006 acquisition assumed defined benefit pension plans subsidiary.
 september 29 2006 fasb issued.
 defined benefit pension plans amendment fasb statements.
 87 88 106 132.
 asset defined benefit postretirement


consolidated financial statements derivatives credit-related contingent features firm 2019s derivatives transacted bilateral agreements counterparties post collateral terminate transactions changes credit ratings.
 assesses impact collateral termination payments downgrade agencies.
 ratings.
 table presents fair value net derivative liabilities agreements excluding collateral assets posted collateral additional collateral termination payments downgrade credit ratings.
 millions december 2014 2013
 net derivative liabilities bilateral agreements $ 35764 $ 22176
 collateral posted 30824 18178
 additional collateral termination payments one-notch downgrade
 two-notch downgrade
 enters transactions manage credit risk investing lending.
 derivatives managed firm 2019s net risk position.
 individually negotiated contracts settlement payment conventions.
events include failure to pay bankruptcy indebtedness restructuring repudiation dissolution entity.
.
 protect buyer against loss principal on bonds loans mortgages issuer suffers credit event.
 buyer pays premium receives protection contract.
 no credit event seller no payments.
 credit event occurs payment calculated contract.
 credit indices.
 derivatives swaps.
 credit event occurs protection seller pays buyer.
 payment pro-rata portion transaction.
 credit risk separated into portions subordination.
 junior tranches cover defaults excess loss covered by senior tranche.
 total return swaps.
 transfers risks from protection buyer to protection seller.
 receives floating interest protection against reduction fair value receives cash flows increase fair value.
 goldman sachs 2014 annual report


corporation financial statements.
 employee retirement plans.
 defined-benefit pension plan asset allocation based fair value.
 equity securities 34% 34 % 55% 55 %
 debt securities 49% 49 % 28% 28 %
 17% 17 %
 100% 100 %
-benefit pension plans adopted accounting guidance fair value.
 price sell asset transfer liability transaction. valuation methodologies value.
 no changes methodologies december 31 2018 2017.
 common stocks short-term investments valued closing price.
 net asset value fair value.
 assets.
 no unfunded commitments restrictions.
 private equity hedge funds valued estimated fair value market income approach.
 no active trading market illiquid.
 unobservable inputs measurements level 3.
 investments valued fair.
basis determined fund underlying assets.
 no unfunded commitments restrictions investments nav.
 corporate government debt securities valued closing price pricing models.
 includes yields.
 investments valued nav approximates fair value.
.
 unfunded commitments $ 1 million no restrictions.
 common collective trust fund valued amortized cost basis approximates fair value.
 cash equivalents.
 no unfunded commitments restrictions.
 buy-in annuity valued benefit obligation approximates fair value.
 determined assumptions discount rate long-term return mortality rate.
 methods not indicative value future values.
 methodologies different reporting date.
 defined-benefit pension plan assets fair value december 31  2018 2017 valued nav fair value millions.


operating/performance financial statistics report railroad performance measures weekly to association american railroads including carloads daily inventory train speed terminal dwell time.
 provide data website./investors/reports/index.
 operating/performance statistics table 2009 2008 2007 % change.
 average train speed miles per hour 27. 3 23. 21.
 terminal dwell time hours 24. 24. 25.
 rail car inventory thousands 283. 300. 309. 9
 ton-miles billions 846. 5 1020. 1052.
 revenue ton-miles billions 479. 562. 6 561. 8 15
 operating ratio 76. 77. 3 79.
 employees average 43531 48242 50089
 customer satisfaction index  88  83  79  5
train speed calculated miles hours lines.
 lower volume network management initiatives productivity improvements contributed 16% 16 % 8% 8 % improvements 2009 2008.
 dwell time car terminals.
 improves asset utilization service.
 improved 2009 improved 1% 1 % 2007.
 lower volumes initiatives improved.
 gross revenue ton-miles calculated weight loaded freight miles.
 miles.
 decreased 17% 17 % 15% 15 % ) 2009 16% 16 % decrease carloads.
 commodity mix changes automotive shipments.
 decreased 3% 3 % flat 2008.
 ratio revenue.
 improved. 76. 2009. 77. 2008.
 pricing gains lower fuel prices network management initiatives improved productivity improvement 16% ( 16 % ) volume decline.
increases fuel cost network improved productivity 2008 fuel prices.
 productivity lower volumes reduced levels 10% 4%.
 fewer train engine personnel


2017 form 10-k notes consolidated financial statements.
 operations accounting policies.
 information categories machinery  energy transportation 2013 construction industries resource industries energy transportation operating segments corporate items.
 financial products company products segment.
 caterpillar financial services corporation caterpillar insurance holdings.
 subsidiaries.
 products sold brands 201ccaterpillar 201ccat wilson turbines.
 operations machinery energy transportation competitive conditions price competition.
 emphasis high quality performance service support.
 companies compete.
 machines distributed worldwide dealers 48 united states 123 outside 192 countries.
 reciprocating engines sold dealer network other manufacturers.
 subsidiary perkins engines company 93 distributors 182 countries.
fg wilson electric power systems manufactured subsidiary caterpillar northern ireland sold through 154 distributors 131 countries.
 large medium speed reciprocating engines sold under brand 20 distributors 130 countries.
 dealers deal products sales servicing principal business.
 products turbines locomotives sold directly to customers.
 assisted by independent sales representatives.
 financial products competitive conditions.
 financing caterpillar products commercial banks finance leasing companies.
 financing plans sales income.
 financial products activity north america offices latin america asia/pacific africa middle east.
.
 consolidated financial statements include caterpillar.
 subsidiaries.
 investments companies ownership 20 percent accounted equity method.
.
 variable interest entities caterpillar inc.
 primary beneficiary.
.
 performance absorb losses benefits.
 note 21.
affiliates suppliers dealers not primary beneficiary.
 provided financial support power direct activities economic performance.
 maximum exposure to loss.
 millions december 31 2017 2016
 receivables trade $ 34 $ 55
 finance 42 174
 38 246
 investments unconsolidated companies
 guarantees 259 210
 $ 412 $ 716
 end-user customers not primary beneficiary.
 provided support direct activities economic performance.
 exposure loss limited credit risk.
 risks evaluated reflected in financial statements credit losses.


intel corporation financial statements value awards 2015 $ 1. 5 billion. 2014 $ 1. billion 2013 market value common stock.
 grant-date fair value $ 1. 1 billion $ 949 million 2014 $ 899 million 2013.
 shares common stock withheld tax withholding.
 expected vest net future forfeitures.
 december 26 2015 $ 1. 8 billion unrecognized compensation costs equity incentive plans.
. 2 years.
 option awards options vested expected vest number options millions weighted.
 43. $ 21.
.
. $ 713
 intrinsic value difference exercise price $ 34. closing price common stock december 24 2015 nasdaq market options.
 expected vest net estimated future option forfeitures.
$ 42 million 2015 68 million 2014 186 million 2013.
 $ 13 million unrecognized compensation costs.
 costs eight months.


mission achieve sustainable revenue earnings growth superior solutions.
 pillars expand client relationships market single-product multi-solution partnerships.
 market dynamics clients rely multidimensional service offerings.
 leveraged solutions expertise value cost savings efficient processes improved service quality speed.
 solutions cross-sell invest growth product development acquisitions.
 partner comprehensive offerings.
 solution innovation integration expand value proposition.
 support market transformation market dynamics demand leveraged solutions consulting expertise services intellectual property.
 planning design process.
 margin expansion optimize performance investments infrastructure enhancements revenue growth margin expansion.
 build global diversification deploy resources emerging markets.
 revenues segment revenues segments millions.
 2011 2010
 2246. 2076. 1890.
 2380. 2372. 2354.
 1180. 1177.917.
 corporate 0. 1. 9. 4.
 consolidated revenues $ 5807. $ 5625. $ 5145.
 financial solutions comprehensive software services core processing customer channel treasury services cash management wealth management capital market operations financial north america.
 service banks credit unions automotive financial companies commercial lenders community savings institutions.
 in-house outsourced solutions banking.
 multi-year contracts stable recurring revenue cross-selling offerings.
 employ business models.
 software applications outsourcing.
 software licensing.
 clients retain operations proprietary software.
 solutions


company under audit jurisdictions.
 changes unrecognized tax benefits 12 months tax rate.
 appeals 1999 20132002.
 interchange fees credit card purchases.
 agreement or.
.
 gross uncertain tax position december 31 2008 $ 542 million.
 temporary difference effect tax rate net interest state tax rate differentials.
 reserve released tax benefit $ 168 million.
 expects conclude audit.
 federal consolidated income tax returns 2003 20132005 12 months.
 gross uncertain tax position december 31 2008 $ 350 million plus interest $ 70 million.
 potential net tax benefit $ 325 million.
 major tax jurisdictions earliest tax year.
 japan brazil
 foreign pretax earnings $ 10. 3 billion 2008 $ 9. 1 billion 2007 $ 13. 6 billion 2006.. 7 billion. 9 billion discontinued operations.
.
 citigroup.
 subsidiaries subject.
 taxation foreign pretax earnings.
.
 taxation repatriated.
 taxes undistributed earnings non.
 subsidiaries indefinitely invested outside states.
 $. billion earnings.
 invested.
.
 federal income tax rate additional taxes.
 credits $ 6. 1 billion earnings remitted.
 effect income tax foreign income tax rate differential.
 taxes not debt reserves before 1988.
 payable distributed federal law.
 31 2008 reserves $ 358 million subject tax $ 125 million.
 no valuation allowance deferred tax assets 31 2008 2007.
.
 foreign tax-credit carryforward $. 5 billion. 4 billion 2016. 3 billion 2017. 8 billion 2018.
.federal loss $ 13 billion 2028.
 business credit carryforward $. 6 billion 2027-2028.
 state local loss carryforwards $ 16. 2 billion $ 4. 9 billion new york city.
 $ 2. 4 billion $ 1. 2 billion 2027. billion $ 3. 7 billion 2028 deferred-tax $ 1. 2 billion losses states deferred $ 399 million 2012 2028.
 deferred-tax assets subsidiaries loss $ 130 million 2018 $ 101 million.
 deferred tax asset $ 44. 5 billion.
 net deferred tax asset $ 44. billion. billion
 federal $ 4 billion state foreign dtas.
. deferred tax liabilities 4 billion.
.
 $ 10. billion foreign tax-credit carryforwards.net-operating-loss $ 0. 6 billion general-business-credit $ 19. 9 billion net deductions $ 0. 9 billion compensation deductions reduced capital 2009 adjustment 2008 compensation deductible.
 citigroup $ 85 billion taxable income.


19 94 responded request information section 104.
 estimated cleanup costs $ 4 million $ 5 million.
 matter liquidity operations financial condition.
 2003 german government passed legislation mandatory deposit 25 eurocents one-way packages beverages except milk wine fruit juices alcoholic beverages.
 packaging contested mandatory deposit non-returnable containers federal state.
 proceedings terminated minimal court fees ancillary legal fees.
 germany-wide return system one-way beverage containers operational since may 1 2006.
.
 no matters fourth quarter 2007.
.
 common stock traded new york stock chicago stock exchange.
 5424 shareholders february 3 2008.
 stock repurchases table summarizes repurchases common stock quarter december 31 2007.
 shares average price paid per share plans.
total shares purchased average per share plans maximum
 october 1 to 28 2007 705292 $ 53.
 october 29 to november 25 2007 431170 $ 48.
 november 26 to december 31 2007 $ 44.
 1144772 $ 51. 42
 open market purchases settle employee tax liabilities.
 ongoing repurchase program board.
 12 million shares common stock.
 replaces previous authorizations.
 include 675000 shares repurchase agreement 2007 january 7 2008 $ 31 million.
 shares acquired 2008 accelerated share repurchase program.


company monitors financial health lenders revolving credit long term debt facilities instability lenders.
 july 2011 acquisition assumed $ 38. 6 million nonrecourse loan mortgage acquired property.
 business combination carrying value loan approximates fair value.
 loan term ten years maturity march 1 2013.
 includes balloon payment $ 37. 3 million due at maturity not prepaid.
 nonrecourse remedies non-performance action against property reserves cash collateral fraud breaches.
 requires minimum cash flows financial results additional reserves required.
 requires approval for.
 interest rate 6. 73%.
 company incurred $ 0. 8 million deferred financing costs.
 december 31 2011 outstanding balance $ 38. 2 million.
 required set aside reserve cash collateral accounts.
december 31  2011 $ 2. million cash prepaid expenses current assets remaining $ 3. million long term assets.
 interest expense $ 3. 9 million $ 2. 3 million $ 2. 4 million 2011 2010 2009.
 deferred financing credit long term debt assumed loan.
.
 contingencies leases warehouse office facilities retail stores equipment non-cancelable leases.
 leases expire 2023 excluding extensions rental adjustments.
 lease agreements factory house stores contingent rent.
 future minimum lease payments non real property leases.
 $ rent $ 26. 7 million $ 21. 3 million $ 14. 1 million years 2011 2010 2009


contracts december 31 2006 mature 2007.
 contract amounts currencies.
.
 pay
. dollars -114000
 euros -4472
 singapore dollars 37180
 canadian dollars 81234
 malaysian ringgits
 movement 10%.
 dollar against foreign currencies net earnings $ 0. 1 million.
 item 8.
 financial statements supplementary data page f-1.
 9.
 changes disagreements accountants accounting financial disclosure.
 controls procedures evaluation disclosure controls management chief financial officer evaluated effectiveness disclosure controls procedures.
 concluded controls procedures functioning assurance information securities exchange act 1934 recorded processed summarized reported periods rules accumulated communicated management.
 controls system absolute assurance objectives assurance control issues instances fraud detected.
management 2019s report financial reporting page f-2 annual report form 10-k incorporated reference.
 change internal control financial reporting no change recent fiscal quarter reporting.
 item 9b.


oil corporation financial statements lease rental expense 2008 2006 rental $ 245 209 172.
 rental $ 245 $ 209 172
 sublease rentals
 net rental expense $ 267 $ 242 $ 193
 excludes $ 5 million $ 8 million $ 9 million united states steel 2008 2007 2006 leases.
.
 contingencies commitments legal actions.
.
 statements.
 management viable enterprise.
 federal state local foreign laws regulations.
 control pollutants remediation hazardous waste disposal.
 penalties noncompliance.
 december 31 2008 2007 liabilities remediation $ 111 million $ 108 million.
 estimate remediation costs penalties.
 recoverable costs states clean-up underground storage tanks $ 60 $ 66 million december 31 2008 2007.
defendant refining companies 20 cases three states methyl tertiary-butyl ether contamination.
 received seven toxic substances control act notice letters two states.
 followed litigation.
 mtbe cases consolidated multidistrict litigation southern new york.
 nineteen cases damages water supply wells.
 new jersey natural resources damages contamination groundwater mtbe.
 only mtbe contamination case defendant.
 defending cases.
 settlement discussions majority.
 expect impact financial position cash flows.
 lawsuit virginia refinery distributed contaminated gasoline wholesalers retailers damage storage tanks dispensers equipment lost profits business disruption damages.
 remediation operations deny permanent damages.
 class action certification 2007.
 tentative settlement agreement.
 notice class members.
 approval required.
fairness hearing first quarter 2009.
 proposed settlement impact results financial position cash flows.
 provided guarantees indebtedness other companies.
 perform guaranteed party obligations.
 performance guarantees agreements.


green realty corp.
 2011 annual reportnotes granted employees executives vesting annually service period financial performance criteria.
 vesting rates 15% to 35% 35 % criteria reached.
 summary restricted stock 2011 2009 charges.
 balance year 2728290 2330532 1824190
 granted 185333 400925 506342
 cancelled -1167
 end year 2912456 2728290 2330532
 vested 153644 420050
 compensation expense $ 17365401 15327206 23301744
 restricted stock 21768084 28269983 4979218
 2011 2010 2009 $ 4. 3 $ 16. 6 $ 28.
 $ 14. 7 unrecognized compensation cost unvested restricted stock two years.
 approximately $ 3.4 $ 2. $ 1. 7 capitalized assets compensation term compensation plans restricted stock options.
 granted ltip units fair value $ 8. 5 2011 performance stock bonus.
 calculated asc 718.
 third party consultant common stock price.
 uncertainty parity illiquidity transfer restrictions.
 2003 outperformance adopted seven- year compen sation program senior management.
 restricted stock awards return 40% 48-month period.
 compensation committee performance hurdles met maximum performance pool $ 22825000 established.
 166312 shares restricted stock forfeitures allocated 2005 plan.
 40% each award vested march 2007 remainder three years.
 fair value awards grant $ 3. 2.
 expensed over term restricted stock award.
percent value award amortized four years balance five six seven years. 20% 20 % value amortized five years six years. 67%. per 20% seven years. 29%. % per year.
 compensation expense $ 23000 $ 0. 1 a0million december 2010 2009.
 cost 2003 outperformance plan expensed march 2010.
 2005 outperformance compensation program approved incentive compensation program.
 participants earn ltip units return stockholders three- year period 2005 exceeded return 30% earn units earlier maximum performance 30 consecutive days.
 total number units earned value equal 10% outperformance amount 30% benchmark maximum dilution cap 3% outstanding shares units december 2005 $ 50.
june 2006 compensation committee determined outperformance plan performance period accelerated maximum performance pool $ 49250000 earned.
 participants earned additional ltip units equal distributions.
 total units earned june 2006 490475.
 units subject time- based vesting one- third units earned vested november 2008 two anniversaries.
 earned units received quarterly distributions equal dividends per share common stock.
 cost 2005 plan $ 8.  amortized into earnings final vesting.
 recorded $ 1. 6 $ 2. 3 compensation expense december 2010 2009.
 cost fully expensed june 2010.
 2006 compensation program august 2006 committee approved compensation program.
 performance criteria not met no ltip units earned.
2006 plan $ 16. 4 amortized earnings july.
 recorded $ 70000 $. 2 $. 4 compensation expense 2011 2010 2009.


issuance costs long-term debt balance consolidated balance sheets.
 incurred $ 15 million 2018 $ 53 million 2016.
 insignificant.
 unamortized $ 115 million 2018 114 million 30 2017 $ 124 million 31 2016.
 amortization $ 16 million 2018 16 2017 $ 14 million 2016.
 addition carrying debt.
 $ 430 million 29 2018 $ 505 million 30 2017.
 $ 65 million 2018 $ 81 million 2017 $ 88 million 2016.
 repayments repaid $ 2. 7 billion senior notes.
 new notes.
 repaid $ 2. billion.
 cash commercial paper.
 value 29 2018 $ 30. billion $ 31.
 2017 $ 33.
 short-term debt commercial paper.
 determined value long-term debt level 2 inputs.
values estimated market prices instruments.
.
 capital stock certificate incorporation authorizes issuance 920000 shares preferred stock.
 june 7 2016 redeemed 80000 shares preferred stock for $ 8. 3 billion.
 funded redemption through long-term debt may 2016 other sources liquidity.
 commercial paper program.
 securitization program cash hand.
 preferred stock canceled retired.
 authorizes issuance 5. billion shares common stock.
 issued outstanding issued treasury outstanding.
 balance january 3 2016 1214
 stock options -2 2
 december 31 2016
 december 30 2017 1221
 balance december 29 2018 1224 -4


table shows annual aircraft fuel consumption costs including taxes mainline regional operations 2018 2017 2016 gallons millions.
 average price per gallon expense percent total operating expenses.
 2018 4447 $. 23 $ 9896. 6%. 6 %
 2017 4352. 7510 19. 6%. 6 %
 2016 4347. 6180 17. 6%. 6 %
 december 31 2018 fuel hedging contracts.
 exposed fluctuations fuel prices.
 policy not enter hedge.
 prices fluctuated.
 predict future availability price volatility cost fuel.
 natural disasters.
 political disruptions wars economic sanctions governmental policy strength.
dollar foreign currencies cost petroleum products pipelines terminals speculation energy futures aircraft fuel production capacity environmental concerns unpredictable events fuel shortages distribution challenges fuel price volatility cost increases.
.
 risk business price aircraft fuel.
 high volatility increased prices disruptions results liquidity. demand revenues airline second third quarters greater first fourth.
 economic conditions fears terrorism fare initiatives fluctuations fuel prices labor actions weather natural disasters outbreaks disease impact.
 quarterly results not indicative historical results not indicative future results.
 airlines subject regulatory requirements.
 federal aviation administration regulatory.
 oversees codeshare agreements route authorities competition protection.
 antitrust division airline antitrust.


obligations december 29 2018.
 millions payments due less years
 operating lease obligations $ 835 $ 229  $ 314  $ 171  $ 121
 capital purchase 9029 7888 795  345
 3249  1272 1781 178 18
 tax 4732  143  426  1234 2929
 long-term debt 40187 1518 7583 6173 24913
 1626  722  708
 $ 59658 $ 11772 $ 11607 $ 8196 $ 28083
 7888 debt-term obligations construction purchase property plant equipment.
 not recorded liabilities balance sheets december 29 2018 goods title.
 obligations licenses agreements non-contingent funding obligations.
tax obligations future cash payments tax reform 2017-time transition tax foreign earnings.
 income taxes financial statements.
 amounts principal payments debt obligations interest payments fixed-rate debt.
 interest payments floating-rate debt obligations impact swaps excluded.
 debt obligations classified maturity date.
 future settlement convertible debt cash payments.
 amounts future cash payments long-term liabilities short-term.
 derivative instruments excluded represent amounts.
 6 excludes contractual obligations short-term long-term.
 expected timing payments estimated current information.
 receipt changes.
 purchases agreements enforceable legally binding terms quantities price provisions approximate timing transaction.
 obligations cancellation provisions amounts limited non-cancelable minimum cancellation fee.
purchase raw materials entered agreements minimum prices quantities based market future purchasing requirements.
 uncertainty future market purchasing requirements non-binding obligations excluded table.
 purchase orders based manufacturing needs fulfilled short.
 purchase orders represent authorizations purchase binding agreements.
 contractual obligations achievement milestones excluded.
 milestone-based contracts purchase capital equipment.
 not obligations until milestone met.
 additional payments approximately $ 688 million.
 majority restricted stock units shares common stock net minimum withholding requirements taxing.
 obligation pay excluded contingent employment.
 amount obligation unknown based on market price common stock.


stock awards options marathon grants options 2007 2003 plan.
 right purchase shares common stock fair market value.
 granted 2003 tandem stock appreciation right receive cash common stock excess fair market value price.
 stock options 2007 2003 vest three-year maximum term ten years.
 stock appreciation rights.
 no 2007 plan.
 right receive payment equal excess fair market value stock.
 2003 granted stock-settled options.
 2003 vest three-year maximum term ten years.
 stock performance awards 2003.
 no 2007 plan.
 2005 discontinued granting grants cash-settled performance units.
 stock performance awards 2003 plan vested forfeited.
 no outstanding awards.
 restricted stock marathon grants units 2007 plan 2003.
 2005 compensation committee began granting time-based restricted stock.officers marathon.
 restricted stock awards three years from grant contingent employment.
 grants stock non-officer international employees performance.
 awards vest one-third increments three-year employment.
 recipients vote receive dividends.
 non-vested shares not transferable held by marathon agent.
 equity compensation program non-employee directors.
 receive stock hold until board.
 dividends receive common stock units.
 $ 80 million $ 83 million $ 111 million 2007 2006 2005.
 income tax benefits $ 29 million $ 31 million $ 39 million.
 cash received option $ 27 million $ 50 million.
 tax benefits deductions $ 30 million $ 36 million.
 cash settlements $ 1 million $ 3 million 2007 2006.
 granted officer non-officer employees.
weighted average grant value assumptions.
 2007 2006
 average price share $ 60. 94 37. 84 25.
 dividends share $. 96. 80
 life 5.
 volatility 27% 27
 risk-free interest rate 4.
 average grant date value stock option awards $ 17. 24 10. 19 6.