s&p global 2018 annual report cash consideration service components sold separately.
 2019 selling price record revenue earned.
 billed revenue recognized.
 invoice annually.
 opening balance $ 1319 million january 1  2018.
 contract assets unbilled amounts service before payment.
 december 31 2018 2017 $ 26 million $ 17 million accounts receivable balance.
 cash payments.
 increase unearned revenue balance december 31 2018 driven cash payments offset $ 1. 5 billion revenues recognized.
 remaining performance obligations transaction price.
 december 31 2018 price $ 1. 4 billion.
 recognize revenue half three-quarters obligations next 12 24 months remainder.
 disclose value unfulfilled obligations contracts one year or less usage-based royalty license intellectual property.
obtain contract recognize asset incremental costs longer one year.
 sales commission programs meet.
 costs $ 101 million december 31 2018 included consolidated balance sheets.
 asset amortized transfer goods services calculated customer term average life products.
 expense recorded selling expenses.
 expense sales commissions amortization one year or less.
.
 net periodic pension cost postretirement benefit cost 2018 accounting guidance outside operating profit costs included consolidated statements income.
components income year ended december 31 assets liabilities sale discontinued operations disposal group sold criteria met management commits plan to sell available for immediate sale terms usual active program locate buyer actions initiated sale probable transfer completed sale within one year except marketed for sale price reasonable unlikely significant changes.
 disposal group held for sale measured at lower carrying value less costs to sell.
 loss recognized criteria.
 gains not recognized on sale until date of sale.
 2018 2017 2016 net benefit cost $ ( 30 ) ( 27 ) ( 28 ).
 $ -30 ( $ -27 ( 27 ) $ -28 ( 28 )
 net loss from investments 2014
 income $ -25 ( $ -27 ( 27 $ -28 ( 28


2018 form 10-k 39 commercial paper program.
 maximum borrowing 2017 credit agreement $ 3 billion.
 market conditions revenue operating costs cash flows liquidity.
 rating agencies lower credit rating.
 no triggers maturity borrowings credit facility.
 downgrade credit increase cost limit issue commercial paper.
 seek alternative sources funding borrowing.
 31 2018 used cash working capital restructuring costs capital expenditures repayment debt dividends distributions share repurchases.
 cash credit facility provide liquidity global cash needs.
 31.
 2018 2017 2016
 operating $ 1762 -799 262
 investing -578
 financing -4363
 largest source cash payments customers collecting cash product sales.
 primary operating cash suppliers employees tax authorities material services.
generated $ 1762 million used $ 799 million 2018 2017.
 increased 2561 million 2018 better performance.
 working capital flows $ 300 million progress collection.
 payments $ 473 million $ 612 million employee severance restructuring merger.
 $ 799 million $ 262 million 2017 2016.
 decreased $ 1061 million 2017 $ 1201 million impact receivables monetization program restructuring.
 offset capital.
 payments $ 612 million $ 177 million employee severance restructuring merger.
 used $ 578 million $ 4123 million $ 472 million 2018 2016.
 capital expenditures.
 expenditures totaled $ 995 million $ 665 million $ 424 million 2018 2017 2016 offset sale property plant equipment $ 458 million $ 172 million $ 20 million.
disposal assets


financial statements 2014 sold contractual rights commissions.
 $ 7. 6 million may 31 2008 $ 1. million 2009.
 sale proceeds collected three nine months.
 2009 collected $ 4. million investment contractual rights cash flows.
 gains.
 deferred commission expense.
 recognized $ 1. 2 million deferred sales proceeds long-term liabilities.
 acquired assets euroenvios money transfer.
.
.
 customer base market branch locations.
 acquired money transfer branch locations united states.
 market presence dolex-branded money transfer.
 preliminary purchase price allocations 2008 acquisitions.
 13536
 customer-related intangible assets 4091
 contract-based intangible assets 1031
 property equipment 267
 current assets 502
 assets acquired 19427
 current liabilities
interest equity subsidiary cost
 assets acquired $ 16594
 customer-related 14 years.
 contract-based 3 10 years.
 acquisitions not significant financial statements information.
 2008 acquired customer list merchant referral agreement canadian $ 1. 7 million.
 $. 1 million expensed.
 remaining amortized 10 years.
 fifty-six percent ownership asia-pacific merchant hongkong shanghai banking corporation.
 card payment services-pacific.


.
 pre-tax non-cash impairments mineral rights real estate not included income.
 liquidity capital resources january 29 2018 agreement acquire shares kapstone $ 35. per share $ 1. 36 billion net debt total value $ 4. 9 billion.
 march 6 2018 issued $ 600. million. senior notes due 2025 $. million. notes 2028 unregistered offering securities act 1933.
 march 7 2018 delayed draw credit facilities $ 3. 8 billion unsecured loans.
 november 2 2018 acquisition.
 proceeds repay indebtedness fees expenses.
 working capital capital expenditures mergers acquisitions investments restructuring dividends stock repurchases net cash borrowings sales agreement sale property equipment issuance debt equity securities.
.
financial statements.
 funding domestic operations liquidity cash equivalents borrowings credit facilities.
 foreign cash equivalents not key liquidity.
 30 2018 $ 3. 2 billion availability credit facilities revolving credit facility matures july 1 2022.
 liquidity working capital purposes acquisitions dividends stock repurchases.
 restrictive covenants govern availability.
.
 $ 104. 9 million outstanding letters credit cash equivalents $ 636. 8 million $ 298. 1 million.
 cash equivalents kapstone acquisition.
 20% cash equivalents held outside.
 total debt $ 6415. 2 million $ 740. 7 million current.
 debt $ 6554. 8 million $ 608. 7 million.
 cash flow.
 2018 2017 2016
 net cash operating activities $ 2420. $ 1900.1688.
 investing -1298. 9 1298. -1285. 8 1285. -1351. 4 1351.
 financing -755. 755. -655. 4. -231. 231.
 2018 increased $ 520. million 2017 higher earnings lower taxes.
 increased $ 212. million 2016 $ 111. 6 million increase cash after-tax cash land monetization.


cash flows summary payment obligations consolidated debt contingent consideration operating leases commitments long-term liabilities at september 30 2011 notes 9 13.
 less 1-3 3-5 years
 short-term debt obligations $ 26677
 cash premium convertible notes march 2012 23558
 commitments 5170
 operating lease obligations 37788
 contingent consideration business combinations 59400
 long-term liabilities 34199
 $ 186792
 cash premiums 2007 convertible notes principal balance closing stock price $ 17. 96 september 30 2011.
 premium calculated 20 day average stock price.
 $ 1. change stock price remaining notes $ 2. 8 million.
 other commitments contractual license royalty payments purchase obligations.
3 contingent consideration business combinations recorded at fair value results differ.
 long-term liabilities unrecognized tax benefits executive deferred compensation beyond five years uncertain commitment.
 amounts include cash payments pending acquisition.
 accounting estimates consolidated financial statements.
 estimates assets liabilities revenues expenses.
 critical accounting policies important judgments.
 revenue recognition doubtful accounts inventory valuation business combinations long-lived assets share-based compensation income taxes goodwill intangibles loss contingencies.
 evaluate judgments estimates policies.
 affect assets liabilities disclosures revenues expenses.
 based best judgments.
 historical experience current economic environment.
 adjust estimates when facts dictate.
 results differ.
 80 skyworks annual report 2011


adobe inc.
 financial statements preliminary purchase price allocation acquired assets marketo estimated values acquisition useful lives.
 values management estimates assumptions preliminary valuation analyses deferred revenue tax liabilities tax.
 useful life.
 customer contracts relationships $ 576900
 purchased technology 444500
 backlog
 non-competition agreements
 trademarks 328500
 identifiable intangible assets 1467800
 net liabilities assumed
 goodwill 3459751
 estimated purchase price $ 4736263
 non-deductible tax.
 relationships contractual loyalty technology partner.
 estimated fair value projected cash flows.
 technology cloud-based engagement marketing software platform.
 future cost savings ownership.
 backlog subscription contracts professional services.
non-compete agreements marketo employees two years from acquisition.
 trademarks include marketo trade name marketing ecosystem.
 amortize fair value intangible assets over lives.
 $ 3. 46 billion allocated digital experience segment.
 excess purchase price over fair value assets.
-specific synergies revenue acquiring talented workforce cost savings.
 liabilities assets october reviewed adjusted fair value.
 $ 100. 1 million accrued expenses $ 74. 8 million deferred revenue $ 182. 6 million deferred tax liabilities offset by $ 54. 9 million cash equivalents $ 72. 4 million trade receivables.
 revenue advance payments contracts.
 estimated obligation cost build-up approach.
 margin.
.
 estimated costs based cost structure.
adjustment deferred revenue $ 74. 8 million estimate contractual obligations preliminary.


operating expenses millions 2010.
 compensation benefits $ 4314 $ 4063 $ 4457 6%
 fuel 2486 1763 3983
 purchased services materials 1836 1644 1928
 depreciation 1487 1427 1366
 equipment rents 1142 1180 1326
 719  687 840
 $ 11984 $ 10764 13900 11%
 operating expenses increased $. billion 2010 2009.
 fuel price per gallon increased 31% $ 566 million.
 wage inflation depreciation volume costs property taxes expenses.
 productivity resource utilization.
 expenses decreased $. billion 2009.
 fuel price per gallon declined 44% expenses $. billion.
 savings productivity decreased.
 lower casualty expense safety performance.
wage benefit inflation reductions.
 wages payroll taxes health welfare pension postretirement benefits incentive costs.
 wage inflation increased costs $ 190 million.
 volume- expenses higher equity incentive compensation costs.
 workforce levels declined 1% network efficiencies.
 10% decline workforce saving $ 516 million.
 inflation increased expenses savings.
 includes locomotive fuel gasoline.
 higher diesel fuel prices $. gallon. increased expenses $ 566 million.
 volume increased 10% fuel expense $ 166 million.
 newer fuel efficient locomotives fuel conservation programs efficient network operations 3% fuel consumption $ 40 million cost savings.
 lower diesel prices. reduced expenses $ 1. billion.
 decreased 17% expenses $ 664 million.
fuel consumption rate improved 4% 2009 $ 147 million cost savings 2008.
 $ 68 million.
 newer locomotives acquisitions smaller fleet 2010 operating expenses


consolidated financial statements adjusted earnings 2016 profit income $ 2. 9 million net income $ 1. 7 million.
 2016 2015 2014 2013 2012
 equivalents $ 250470 129852 593175 341841
 capital 1279337 1019953 1127772
 inventories 917491 536714
 assets 3644331 2865970 1155052
 debt maturities 817388
 stockholders equity 2030900 1668222 1350300 1053354 816922
 capital assets minus liabilities.


hologic.
 financial statements 2007 acquisition biolucent.
 september 18 2007.
 agreement june 20 2007.
 biolucent financial statements mammography/breast care business.
 business combination no financial information.
 biolucent aliso viejo california develops markets sells mammopad breast cushions discomfort mammography.
 brachytherapy business breast cancer therapy.
 brachytherapy technology business capital stock.
 acquired mammopad cushion business assets.
 invested $ 1000 brachytherapy business shares preferred stock.
 purchase price $ 73200 $ 6800 cash 2314 shares hologic common stock $ 63200 debt $ 1600 acquisition fees expenses.
 determined fair value shares eitf issue.
 market price.
acquisition provides two annual earn-out payments $ 15000 biolucent revenue targets.
 considered eitf issue.
 95-8 contingent consideration additional purchase price.
 goodwill increased.
 recorded earn-outs.
 allocation purchase price fair value assets acquired liabilities assumed 18 2007.
.
 assets acquired $ 2800
 developed technology 12300
 customer relationship 17000
 trade name 2800
 deferred income tax liabilities
 goodwill 47800
 final purchase price $ 73200
 intangible assets identified valued.
 relationship trade name identifiable values.
 fair value determined income approach.
 customer relationship base disposable.
 trade name


graph compares yearly stockholder return last five years market price common stock return nasdaq composite index.
 peer group medical equipment 3840-3849 index.
 assumes investment $ 100 march 31 2010 common stock nasdaq composite index.
 peer group reinvestment dividends.
 3/31/2010/31/2015
 abiomed inc 140. 215. 180. 252. 693.
 nasdaq composite index 115. 128. 136. 175. 204.
 medical equipment 3840-3849. 115. 105. 123. 118.
 not material securities exchange act 1934 not filed securities exchange commission not incorporated securities act 1933.
 american stock transfer trust company 59 maiden lane new york.


valuation allowance 30 september 2016 $ 155. 2 tax federal capital loss $ 48. foreign loss $ 37. 7 assets $ 58. energy-waste business 2016.
 reversal valuation tax expense.
 future earnings reversal deferred tax tax assets 2016.
 deferred tax liability unremitted earnings decreased dividend subsidiary south.
 impacted activity dividend tax credit adjustments currency translation undistributed earnings foreign subsidiaries ventures.
.
 income taxes undistributed earnings.
 earnings balance $ 6300. 9 30 september 2016.
 estimated $ 1467. 8.
 income taxes due remitted dividends deferred taxes.
 reconciliation unrecognized tax benefits.
 2015 balance $ 97. 5 $ 108. 7 $ 124. 3
tax positions 15. 6. 8.
 prior 3. 7. 4.
 reductions. 3
. 2014
 statute limitations expiration.
. 5 2014
 balance end $ 106. 9 $ 97. 5 108.
 2016 2015 $ 106. 9 $ 97. 5 unrecognized tax benefits excluding penalties $ 64. 5 $ 62. 5 tax rate.
 income tax $ 2. 3 2016 1. 8 2015 1. 2 2014.
 balance interest penalties $ 9. 8 $ 7. 5 30 2016 2015.


2015 price r$ 218/mwh.
 expiration contract eletropaulo tiet ea strategy contract physical guarantee sell remaining spot market.
 strategy market conditions hydrology.
 selling energy 2016 medium-term contracts three to five years.
 december 31 2016 contracted portfolio 95% 88% 88 % average prices r$ 157 mwh r$ 159/mwh 2017.
 brazil hydro-based energy prices tied deterioration hydrology 2014 increase energy prices.
 monitoring supply conditions commercialization.
 concession agreement increase capacity 15%.
 regulatory environmental hydrological fuel constraints.
 state potential wind power small hydro.
 capacity increases thermal gas projects.
 gas-fired projects.
 petrobras refuses supply natural gas.
 no regulations natural gas swaps unfeasible bring natural gas.
legal case initiated e3o paulo requiring investment.
 analyzing options.
 uruguaiana 640 mw gas-fired power plant rio grande do sul commissioned december 2000.
 aes manages 46% interest remaining bndes.
 operations suspended april 2009 unavailability gas.
 evaluated alternatives gas supply.
 capacity restrictions argentinean pipeline winter demand.
 plant operated short-term february 2013 2014 2015.
 2016.
 securing gas long.
 installed capacity 150136 mw 65% hydroelectric 19% thermal 16% renewable.
 national grid divided four subsystems.
 southeast uruguaiana south.
 ministry mines energy determines maximum energy plant physical guarantee long-term average energy production.
 companies auctions contracts.
 national system operator grid.
ons dispatches generators hydrological conditions reservoir levels electricity demand prices fuel thermal generation.
 reduces hydro increases thermal reservoir levels.
 brazil operator controls hydroelectric generation reservoir levels.
 energy reallocation mechanism hydrological risk generators.
 generate less purchase energy.
 generation higher surplus shared among participants revenue selling excess.
 consequences unfavorable hydrology thermal plants expensive lower hydropower generation high spot prices.
 aneel defines spot price cap electricity brazilian.
 average prices.
 534 423  388  822
 average spot rate 94  287 689


positions collateral defaulting firm at clearing organization cross-margining loss sharing payments participating liquidating surplus deficit additional surplus shared with other clearing house.
 surplus funds passed to bankruptcy trustee.
.
 $ 550. 0 million guarantee accelerate distribution funds.
 trustee distributed more property than company cash payment for erroneous up to $ 550. 0 million.
 payment after trustee property distributed.
 payment seek reimbursement property.
 guarantee cover distributions claims.
 trustee payments likelihood payment remote.
 guarantee liability estimated immaterial at december 31 , 2012.
 farmer rancher protection fund.
 2012 company established.
 payments to family farmers ranchers agricultural industry participants cme group products losses due to clearing member insolvent.
fund farmers ranchers eligible $ 25000 per participant.
 cooperatives $ 100000 per cooperative.
 maximum payment $ 100. million.
 payments exceed pro-rated.
 members customers must register provide documentation eligibility.
 peregrine financial group.
 filed for bankruptcy protection july 10 2012.
 not customers not registered fund.
 not eligible payments.
 fund newly implemented customers agricultural industry participants company terms conditions bankruptcy eligible farmers ranchers cooperatives apply benefits.
 recorded liability $ 2. million at december 31  2012.
.
 redeemable non-controlling interest changes interest years.
 statements equity.
 2011
 balance at january $ 70.
 contribution dow jones.
.
 allocation stock-based compensation.
income redeemable non-controlling interest.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. compensation
.
.
.
. redeemable non controlling
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.


mastercard incorporated notes financial statements 2014 table summarizes expected benefit payments 2019 pension plans company assets.
-sum may differ.
 2010 18181
 2011 27090
 2012 21548
 2013 25513
 2014 24002
 2015-2019 128494
 company.
 employees participate defined contribution savings plan.
 allows contribute base compensation pre-tax after-tax.
 company matches contributions limits.
 discretionary profit sharing performance.
 paid short-term cash incentive bonus.
 company defined contribution plans outside united states.
 contribution expense $ 40627 $ 35341 $ 26996 2009 2008 2007.
.
 maintains plan health coverage life insurance.
 employees hired before 1 2007.
 amended life insurance benefits january 1 2007.
 increase $ 1715 income 2007.
2009 company $ 3944 expense enhanced postretirement voluntary transition program.


consolidated financial statements 2014 merchant acquiring business united kingdom.
 hsbc uk ten-year marketing alliance customers payment processing services.
 june 23 2008 five year $ 200 million term loan acquisition.
 purchase price excess cash credit facilities.
 loan interest prime london interbank margin leverage.
 july 1 2008 interest rate 3. 605%.
 quarterly principal payments $ 5 million august 31 2008 $ 10 million 2010 $ 15 million 2011.
 partnership agreement provisions hsbc purchase additional membership units option.
 fifth anniversary.
 purchase 15% membership units.
 tenth anniversary purchase units.
 june 2013 maximum redemption $ 421. 4 million may 31  2008.
 acquisition establish presence united.
factors analysis market share retail presence united kingdom.
 purchase price determined multiples.
 $ 441. million $. million cash $ 2. 5 million pocket costs.
 recorded allocated assets liabilities estimated values.
 preliminary purchase price allocation.
 294741
 customer intangible assets 116920
 contract-based intangible assets 13437
 trademark 2204
 property equipment 26955
 current assets
 acquired
 minority interest equity subsidiary -13257
 assets acquired 441100
 preliminary.
 goodwill deductible tax.
 assets 13 years.
 contract-based 7.
 trademark 5.


.
 deferred financing costs $ 51 million $ 60 million amortization 2007 2006.
 amortization $ 13 million $ 15 million $ 14 million included interest expense statements operations.
 amortization property equipment capital leases $ 2 million $ 3 million 2007 depreciation amortization state.
 stockholders fifty million shares common stock par value $ 0. 01 per share authorized 522. 6 million 521. 1 million outstanding december 31 2007 2006.
 fifty million no par value preferred stock authorized 4. million.
 90% taxable income capital gain.
 100% income.
 preferred dividends quarterly dividend.
 determined board directors.
 dividends 2007 2006 2005 ordinary income.
 common preferred dividends per share.
.
b stock 10% 10 % 2014.
 c 10% 10 %.
 87/8%.
 7/8% %. 2006 issued 133. million shares starwood.
.
 converted convertible debentures 24 million shares common stock.
 remainder redeemed $ 2 million 2006.
.
 publicly-traded 4034400 shares 7/8% 7/8 % stock.
 cash dividends 7/8% 7/8 % per annum $ 25. per share payable quarterly.
 2 2009 option redeem stock $ 25. per share dividends.
 senior common.
 no voting rights.
 accrued dividends december 31 2007 2006 $ 2 million.
 2005 redeemed shares c b stock.
 fair value exceeded carrying value $ 6 million $ 4 million.
amounts represent issuance costs.
 class c b preferred stock reflected in net income calculating diluted earnings per share.
 1998 board adopted dividend one preferred stock purchase right distributed each share.
 entitles buy 1/1000th stock exercise price $ 55 per share subject adjustment.
 rights exercisable 10 days after ownership 20%.
 shares owned november 3 1998 exempt ownership.
 rights non-voting expire november 22 2008 unless exercised for $. 005 each.
 right entitles holder purchase common stock twice exercise price.
 repurchase plan authorized repur chase $ 500 million common stock.
 purchased open market or private market conditions.
 plan obligate repurchase suspended management.
 income taxes reit effective january 1 1999.
 revenue code 1986.
corporation elects reit status meets tax law requirements distribution taxable income stockholders revenues not subject federal state taxation operating income stockholders.
 taxes retained income subject taxes 201cbuilt-in-gains sales assets.
 taxable reit subsidiaries subject federal state foreign 4/8/08 4:02 pm


goldman sachs group.
 subsidiaries management risk committee risk governance committee approve market risk limits sub-limits at firmwide business product levels risk appetite statement.
 market risk management sets limits at product desk levels.
 assist senior management risk profile.
 sub-limits set below approved.
 maximum exposure without senior management approval decisions to desk managers traders.
 sub-limits management tool escalation risk tolerance.
 distribute risk among businesses with activity client demand.
 market risk limits monitored daily by risk management limits.
. escalated to senior managers risk committee.
 remediated by inventory reduction increase risk limit.
 model review validation testing models reviewed incorporate changes positions variations market conditions.
 management performs validations.
changes to var stress testing models reviewed with risk financial officer approved by firmwide risk committee.
 risk management.
 in technology market risk independent calculation var stress measures position levels attribution report views. ad hoc analyses.
 analyze var firmwide detailed levels risk category business region.
 tables present average daily period-end var high low var.
 diversification effect difference between four risk categories.
.
 average daily var by risk category.
 2017 2016 2015
 interest rates
 equity prices
 currency rates
 commodity prices
 diversification effect
 average daily var decreased to $ 54 million 2017 from 63 million 2016 due to reductions risk categories offset decrease diversification effect.
 due to lower volatility.
average daily $ 63 million 2016 76 million 2015 risk categories offset diversification.
 reduced exposures.


marathon oil corporation financial statements stock appreciation rights granted sars 2003 plan.
 no 2007 plan.
 right receive payment fair market value shares common stock grant.
 2003 plan granted stock-settled stock options.
 sars granted vest three-year period maximum term ten years.
 stock-based performance awards 2003.
 no 2007 plan.
 discontinued cash-settled performance units.
 awards 2003 plan vested forfeited.
 no outstanding awards.
 restricted stock 2007 plan 2003 plan.
 2005 committee time-based restricted stock. officers marathon long-term incentive package.
 vest three years grant contingent employment.
 restricted stock non-officer employees international employees performance retention.
restricted stock awards non-officers vest one-third three-year contingent employment 2008 four-year employment.
 recipients vote receive dividends.
 non-vested shares not transferable held transfer agent.
 equity compensation program non directors 2007.
 directors receive grants common stock hold board.
 dividends paid receive additional stock units.
 $ 43 million $ 66 million $ 78 million 2008 2007 2006.
 income tax benefits $ 16 million $ 24 million $ 29 million.
 cash $ 9 million $ 27 million.
 benefits deductions $ 7 million $ 30 million.
 cash settlements $ 1 million 2007.
 no cash settlements 2008.
 officer non-officer employees.
 grant value.
 exercise price per share $ 51. $.
 dividends share.
 life years 4. 8 5.
 volatility 30% 30 % 27% 27 % 28% 28 %
 risk-free interest 3. 1% 4 5
 average stock option $ 13. 17.


issuer purchases equity securities table purchases three months december 31 2013 equity securities registered section 12 exchange act total number shares purchased average price paid per share plans programs dollar value shares.
 price paid share dollar value
 october 2013 781118739
 november 2013 1191867. 664123417
 december 2013 802930. 580555202
 1994797 $ 100.
 2013 april 2013 board replaced share repurchase authorization $ 1 billion authorization $ 1 billion expiring june 30 , 2015.
 shares purchased prices open market block purchases privately-negotiated transactions subject regulatory restrictions.
 february 1  2014 remaining authorized amount approximately $ 580 million.
.1 million shares.


2009 annual report 2008 revenues credit union systems services increased 14% 2007.
 revenue components.
 license revenue largest growth system credit unions strong sales.
 revenue largest 34 percent growth eft support 10 percent in-house support.
 gross profit increased $ 9344 2008 license revenue highest margins.
 positive cash flow operations used funds short borrowings revolving credit capital requirements.
 expect trend.
 cash equivalents increased $ 118251 june 30 2009 $ 65565 2008.
 summarizes net cash operating activities 2009.
 net income $ 103102
 non-cash expenses 74397
 receivables
 deferred revenue
 assets liabilities
 net cash operating activities $ 206588
cash increased $ 25587 to $ 206588 2009 $ 181001 2008.
 receivables $ 21214.
 2010 software maintenance billings more cash collected.
 more cash 2008.
 investing $ $ 3027 contingent consideration acquisitions.
 $ 102148 $ 48109 $ 1215 contingent consideration.
 capital expenditures 2009 $ 31562 $ 31105 2008.
 software development $ 24684 $ 23736.
 financing $ 94675 repurchase 3106 shares common stock dividends $ 26903 $ 13489 repayment revolving credit facilities.
 offset proceeds $ 3773 stock options sale $ 348 excess tax benefits.
 cash $ 101905 repurchase 4200 shares common stock $ 100996 dividends $ 24683 $ 429 net repayment revolving credit facilities.
financing offset by $ 20394 stock options sale common stock $ 3809 excess tax benefits.
 fiscal 2008 us financial markets institutions shaken negative developments home mortgage industry subprime mortgage-backed securities.
 global economic downturn.
 issues collection efforts future impact liquidity minimized by cash recurring revenue credit.


2014 company acquisitions purchase price $ 9.
 assets plant $ 17.
 liabilities assumed $ 8 $ 5 contributions construction debt $ 2.
 2013 fifteen acquisitions net purchase price $ 24.
 assets utility plant $ 67.
 liabilities $ 43 $ 26 contributions construction debt $ 13.
 2013 acquisition capital stock dale service corporation cash purchase price $ 5 $ 7 liabilities.
 business combination results.
 purchase price allocated assets values.
 property equipment.
 assets liabilities recorded book value subject regulatory approval.
 acquired debt valued level 3 debt.
.
 non-cash assets utility plant $ 41 liabilities $ 36 debt $ 13 contributions $ 19.
 2014 sale terratec.
post-close adjustments proceeds sale $ 1 pretax loss $ 1.
 table summarizes results discontinued operations december 31.
 2014
 revenues $ 13 $ 23
 expenses 19 26
 loss before income taxes -6 ( 6 -3 ( 3
 provision income taxes -1
 loss tax $ -7 ( 7 $ -2 2
 provision tax expense taxable gains.
 no assets liabilities balance sheets december 31 2015.


april 2009 fasb issued guidance asc 820 fair value asset liability volume activity decreased identifying transactions orderly.
 financial statements.
 august 2009 fasb issued 2009-05 201cmeasuring liabilities fair value amends asc 820 quoted price market identical liability.
 company included disclosures financial statements.
 uncertainty income taxes june 2006 fasb issued guidance asc 740 taxes.
 prescribes recognition threshold measurement attribute financial statement tax position.
 tax position recognized sustained tax authority.
 measured tax benefits 50% probability.
 expands income tax disclosure requirements.
 international paper applied first quarter 2007.
 charge retained earnings $ 94 million.
 industry segment 2009 2008 2007 pages 47 48.
january 1 2008 company changed allocating overhead expenses business amounts performance comparisons.
 revised presentation industry segment profit allocation adjusted comparative prior period information.
 earnings per share international paper company shareholders computed dividing by weighted average common shares outstanding.
 diluted earnings computed potentially dilutive securities including stock options converted into common shares year.
 computation diluted earnings reflects inclusion contingently convertible securities dilutive.
 reconciliation amounts earnings 2009 2008 2007.
 earnings loss ) operations $ 663 $ $ 1215
 effect dilutive securities 2013
 loss $ 663
 average common shares outstanding 425.
 effect dilutive securities restricted performance share plan.
 options.
common shares 2013 dilution 428. 421. 433.
 loss operations $ 1. 56 -3. 2. 83
 loss 1. 55 -3. 2. 81
 shares 2013 428. 421. loss 1. 56 3. 2. 83 1. 55. 2. 81 securities not included anti dilutive.
 options purchase 22. 2 million 25. 1 million 17. 5 million shares 31 2009 2008 2007 not included diluted shares price exceeded average market price common stock.
 restructuring 31.


stockholder return graph compares 5-year return common stock nasdaq composite s&p 400 information technology index.
 assumes investment common stock index december 31 2011 $ 100 year 2016.
 5 year return cadence design systems. nasdaq composite index s&p 400 information technology.
$ 100 invested 12/31/11 reinvestment dividends.
 month-end.
 s&p global.
.
 12/31/2011 12/29/2012 12/28/2013 1/3/2015 1/2/2016/31/2016
 cadence design systems. 129. 133.
 nasdaq composite. 165 216
 s&p 400 information technology. 170 178 219.
 stock price performance not indicative future price performance.


5.
 common equity issuer purchases january 25 2019 26812 holders common stock $ 1 share.
 traded new york stock exchange symbol lmt.
 dividends lockheed martin common stock dividends.
 2.
.
.
.
.
 stockholder return performance graph compares return $ 100 lockheed martin common stock december 31 2013 s&p 500 index s&p aerospace defense index.
 arconic. general dynamics harris huntington l3. lockheed northrop grumman raytheon textron. boeing transdigm. united technologies.
 return performance not guarantee future performance.


fluctuation sale investment differ current value.
 fluctuations market price from changes economic characteristics issuer alternative investments market conditions.
 table summarizes equity investments subject price fluctuations at december 31 2012.
 included consolidated balance sheets.
 tax.
&fbovespa. $ 262. $ 690. $ 271.
 valores. 29 29.
.
 hedge against equity price risk.
 investments assessed for temporary impairment quarterly.


subsidiaries premiums years december 31 2009 2008 2007 millions.
 percentages amount ceded amount percentage assumed.
 31 2008 2007 millions. amount ceded net amount percentage
 2009 $ 15415 $ 5943 $ 3768 $ 13240 28% 28 %
 2008 $ 16087 $ 6144 $ 3260 $ 13203 25% 25 %
 2007 $ 14673 $ 5834 $ 3458 $ 12297 28% 28 %


2015 management actions sale transfer $ 1. 5 billion delinquent residential first mortgages $ 0. 9 billion fourth quarter transfer citifinancial loans-sale primary driver improvement delinquencies citi holdings 2019 residential mortgage portfolio.
 credit performance impacted delinquent loan sales transfers-for-sale trends hpi interest rates.
 north america residential first mortgages 2014state delinquency trends tables six.
 states regions highest concentration citi residential first mortgages.
 billions dollars
 $ 19. 37% ( 37 % ). 2%. 1% ( 1 % $ 18. 31% ( 31 % ). 6%. % 2% ( 2 % )
.8  1  751  12. 20 . 9 740
. 719  3.  695
. 735  2. 5. 9  713
. 723 . 700
. 9. 2014  711  2. 5. 7 680
 11. 21 . 710  18. 30  3.  677
 5 $ 51. 100% ( 100 % ). 7%. 7 % 1% 1 % 738  $ 60. 100% 100 % 2. % 4% 4 % 715
 51. 100% 100 %. % 738 $ 60. 100 %. 4% 4 % 715 totals.
 states region.
.
 loans canada puerto rico guaranteed.
 recorded long term commitments.
 balances unavailable.
ltv ratios loan balance appraised value calculated at origination updated market price data.
 new york jersey connecticut florida illinois judicial states.
 improvement trends 2015 due to residential first mortgages fourth quarter.
 majority citi 2019s foreclosure inventory residential.
 december 31 2015 inventory $ 0. 1 billion. 2%. total residential first mortgage portfolio $ 0. 6 billion 0. 9%. 2014 excluding guaranteed.
 agencies.
 loan portfolio fixed-rate lines of credit.
-rate loans amortizing.
 amortizing loan.
 20-year amortization period.
 december 31 2015 2019s loan portfolio $ 22. 8 billion $ 6. 3 billion fixed-rate $ 16. 5 billion home equity lines of credit.


.
 discontinued operations second quarter 2012 authorized sale homecare business merchant gases.
.
 third quarter 2012 sold majority linde group proceeds 20ac590 million $ 777 gain $ 207. 70 per share.
 proceeds 20ac110 million $ 144 contingent retender arrangements.
 reflected payables accrued liabilities consolidated balance sheet 30 2013.
 return proceeds linde.
 fourth quarter 2014 payment liability gain $ 1.
 third quarter impairment charge $ 33. per share remaining business net realizable value.
 fourth quarter 2013 additional charge $ 18. per share net realizable value.
 first quarter 2014 sold remaining homecare business. million $. gain sale $ 2.
 operations guarantee contracts.
.
 results discontinued operations.
.$ 52. $ 258.
 before taxes. 3. 68.
 tax. 20.
 discontinued operations. 47.
 sale business tax. 120.
 discontinued operations tax $ 4. 168.
 assets liabilities discontinued operations homecare 2013 $ 2. 5 receivables $ 2. 4 payables liabilities.
 30 2014 no discontinued.


realty trust estate depreciation 2006 depreciation amortization.
 31 2003 $ 514177
 additions 82551
 deductions -1390
 balance 2004 595338
 additions 83656
 deductions -15244
 balance 2005 663750
 additions 89564
 deductions -12807 12807
 balance december 31 2006 $


jpmorgan chase. annual report wholesale credit portfolio environment favorable 2013 increase commercial client activity.
 underwriting key market conditions risk management activities.
 wholesale portfolio managed reviews credit quality industry product client concentrations.
 criticized nonperforming assets decreased 2012 reduction nonaccrual loans 39% 39 %.
 december 31 2013 wholesale exposure increased $ 13. 7 billion 2012 $ 11. 4 billion lending commitments $ 8. 4 billion loans client activity.
 offset $ 9. 2 billion decrease derivative receivables.
 interest rate derivatives commodity.
 offset increase equity derivatives markets.
 credit portfolio exposure nonperforming.
 loans retained 308263
 held-for-sale
 fair value
 2013
receivables 65759 74983 415 239
 26744 23648 2014
 wholesale credit-related assets 414067 411814 1459 1956
 lending commitments 446232 434814 355
 credit exposure $ 860299 846628 $ 1665 2311
 derivatives -27996 -27447 27447
 liquid securities cash collateral derivatives -14435
 26744 23648 credit assets 414067 411814 1459 commitments 434814 credit exposure $ 860299 846628 1665 2311 derivatives 27996 27447 liquid securities cash collateral 2013 loans restructurings reclassified nonperforming.
.
 receivables margin loans retail brokerage customers accrued interest balance sheets.
 protection purchased credit derivatives qualify hedge accounting.
.
 credit portfolio.
credit derivatives pages 137 6 220 annual.
 excludes assets loan.


devon energy corporation subsidiaries financial statements 2013 reserves changes reserves 2013.
.
 undeveloped reserves december 31 2012 407  433 840
 extensions discoveries
 revisions due prices
 -91 -78
 conversion reserves -116 -147
 reserves december 31 2013 258 443 701
 devon 701 undeveloped reserves.
 17 percent decrease 2012 24 percent reserves.
 drilling development activities increased reserves 95 147 18 percent 2012 reserves reserves.
 costs development conversion $ 1. 9 billion 2013.
 revisions price decreased reserves 78 evaluations.
 onshore dry-gas areas.
 revisions cana-woodford shale carthage barnett shale.
 reserves 2013 jackfish operations.
devon 2019s jackfish undeveloped reserves 441 429.
 controlled processing plants 35000 barrel capacity.
 steam capacity-oil ratios air.
 reserves undeveloped five years.
 development schedule extends 2031.
 reserves increased 94 higher gas prices.
 43 barnett 19 rocky mountain.
 decreased 171 lower gas prices.
 100 barnett shale 25 rocky mountain.
 decreased 21 lower gas higher oil prices.
 royalty burden reduced oil reserves.
 dry gas regions cana-woodford shale barnett shale carthage


1b.
 staff.
 summary containerboard mills principal products year-end 2011 machines.
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-chemical medium mill.
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-chemical medium.
 mills corrugated manufacturing operations.
 warehouse property sales offices.
.
pca leases space four plants 23 sheet plants six design centers distribution centers warehouses facilities.
 equipment owned by pca except forklifts rolling stock leased.
 cutting rights 88000 acres timberland near valdosta mill 77000 counce mill 11000.
 agreements 12 years.
 headquarters lake forest illinois.
 leased ten years two five year lease extensions.
.
 pca eight.
 containerboard producers defendants five class action lawsuits northern illinois violations sherman act.
 lawsuits consolidated complaint kleen products packaging.
.
 defendants limit supply containerboard prices 2005.
.
 seeks damages costs attorney fees.
 motions dismiss denied 2011.
 allegations merit lawsuit.
 early stages predict outcome estimate losses.
pca party to legal actions business.
 cover claims entire business.
 believe not possible resolution adverse effect on financial condition results operations cash flows.


liquidity monitoring stress testing performed for citi 2019s major entities subsidiaries countries.
 impact liquidity event on balance sheet liquidity position identify funding alternatives.
 scenarios include funding sources market triggers credit ratings funding political economic conditions.
 market conditions company events.
 stress tests mismatches between liquidity sources uses over time.
 liquidity limits set.
 stress tests mismatches calculated varying frequencies daily.
 citi maintains contingency funding plans.
 actions for adverse market conditions stresses.
 short-term liquidity measurement coverage ratio monitors liquidity lcr.
.
 adequate level liquidity needs acute 30-day stress scenario.
lcr calculated hqla net outflows 30-day period factors liabilities deposits unsecured borrowings unused lending commitments derivatives exposures offset inflows assets maturing 30 days.
 banks calculate add-on maturity mismatches cash outflows inflows.
 minimum lcr requirement 100% effective january 2017.
 2016 federal reserve board rules disclosures financial institutions citi.
 hqla lcr inflows outflows.
 maturity mismatch add-on disclosures.
 effective date april 1  2017.
 table lcr calculation hqla outflows.
.
.
.
.
 $ 403. $ 389.
 net outflows 332. 335. 344.
 121% 120% 113%
 net outflows $ 71. 68. 44.
amounts table average.
 citi 2019s lcr increased year-over-year sequentially.
 driven hqla reduction net outflows.
 unchanged.
 net stable funding ratio quarter 2016 federal reserve board fdic occ proposed rule nsfr requirement.
. consistent final nsfr rules.
 bank stable funding.
 equity deposits long-term debt required liquidity characteristics assets derivatives commitments.
 standardized weightings asset liabilities classes.
 ratio available funding required greater 100%.
 citi compliant.
 nsfr rules december 31 2016 evaluate final version 2017.
 rules implementation.
 january 1 2018.


transfers inventory income tax effects deferred until sold third party.
 cadence adopted new standard fiscal 2018 modified retrospective transition approach cumulative-effect adjustment retained earnings $ 8. 3 million.
 write-off income tax transfers new deferred tax assets.
.
 increased volatility future tax rates.
 stock-based compensation 2017 modification accounting changes share-based payment award modification.
 adopted standard 2018.
 impact financial statements.
 cumulative effect adjustments earnings new accounting standards.
 balance december 30 2017 $ 341003
 cumulative effect adjustment new accounting standards
 revenue contracts
 financial instruments financial assets liabilities
 income taxes intra-entity transfers assets other inventory
 balance december 30 2017
 net income
december 29 2018 $ 772709
 cumulative adjustment contracts net income tax $ 17. 5 million.
 new accounting standards february 2016 2016-02 recognition lease liabilities right-of-use assets balance leases 12 months.
 new standard first quarter fiscal 2019.
 modified retrospective approach leases.
 effective date earliest comparative period financial statements.
 adopted standard december 30 2018 fiscal 2019 effective date initial application.
 financial information disclosures first quarter 2019.
 cadence transition guidance standard conclusions lease identification.


credit commitments lines table summarizes citigroup credit commitments 2009 2008 millions.
.
. 2009 2008
 commercial letters credit $ 1321 $ 5890 $ 7211 8215
 one- four-family residential mortgages 788 1070 937
 revolving open-end loans 20914 3002 23916 25212
 commercial real estate construction land development 1185 519 1704 2702
 credit card lines 649625 135870 785495 1002437
 commercial consumer loan commitments 167510 257342 309997
 $ 841343 $ 235395 $ 1076738 1349500
 unused commitments contingent credit standards.
 commitments floating interest rates fixed expiration dates require fees.
 deferred amortized loan.
 commercial letters credit citigroup substitutes credit.
 evidence.
 citigroup.
- to four-family residential mortgages confirmation citigroup seller sums purchase.
 revolving open-end loans secured home equity lines of credit.
 secured by primary second home excess fair market value over debt first.
 commercial real estate construction land development commercial multifamily residential properties land development projects.
 secured-by-real-estate unsecured commitments undistributed loan proceeds progress payments.
 extensions credit funded total loans.
 credit.
 cancellable.
 commercial consumer loan commitments overdraft liquidity facilities purchase loans third-party receivables note issuance revolving underwriting invest equity.
 $ 126 billion $ 170 billion maturity less than one year at december 31  2009  2008.
 highly leveraged financing commitments funding borrower higher debt.
financing acquisitions management buy-outs.


management institutional services fixed income currency commodities.
 interest rate credit mortgages currencies commodities.
 2030 interest.
 government bonds treasury bills repurchase agreements interest rate swaps options derivatives.
 2030 credit products.
 securities high-yield credit derivatives bank loans municipal securities emerging market distressed debt trade claims.
 mortgages.
 commercial residential.
 collateralized obligations asset-backed.
 2030 currencies.
 growth-market currencies.
 commodities.
 crude oil petroleum natural gas metals electricity coal.
.
 commissions fees transactions stock options futures exchanges.
 securities services financing securities lending brokerage interest rate spreads.
 results institutional services segment.
 2014 2013 2012

 income commodities 8461 9914
 2079 2594
 commissions fees 3153
 securities services 1504
 equities 6736 7070
 revenues 15197 15721
 expenses 10880
 pre-tax earnings 4317 3929 5634
.
 revenues reinsurance $ 317 million 2013 $ 1. billion 2012.
 majority.


required stock pay quarterly dividends available funds.
 declare funds dividend junior stock parity stock redeem purchase acquire stock unless paid funds dividends periods.
 paid quarterly dividends $ 0. 265625 per share february 1 may 1 august 3 november 2 2009 2008.
 annual cash dividend december 31 2009 2008 $ 10 million $ 10 million.
 2010 declared cash dividend $ 0. 265625 per share preferred stock $ 3 million $ 0. 04 per share common stock $ 6 million.
 november 2 2009 to january 31 2010 paid february 1 holders.
 redeem preferred stock february 22 , 2010.
 holders convert shares 5:00 p. february 19 , 2010 redemption date.
outstanding shares december 31 2009 redemption preferred stock cash dividends 2010 less than 2009.
 amount cash dividends restricted by senior credit agreement.
 decision declare dividends discretion board directors results operations cash requirements financial condition contractual restrictions factors.
 purchases equity securities table repurchases common stock three months ended december 31 2009 shares purchased average price paid per share dollar value shares remaining.
 value
 october 1-31 2009 24980. 122300000.
 november 1-30 2009.
 december 1-31 2009.
 shares withheld withholding requirements income taxes stock.
 no shares purchased three months ended december 31 2009 stock repurchase plan.
job d70731 033000000 05:41 valid no graphics color


part ii item 5 2013 market registrant 2019s common equity stockholder matters issuer purchases securities common stock listed new york stock exchange traded symbol 201cpnc. close february 15 2013 75100 shareholders.
 entitled dividends declared board directors funds.
 board pay dividends past periods paid.
 quarterly cash dividends.
 future dividends economic market conditions financial condition operating results contractual restrictions government regulations policies regulatory capital limitations.
 dividend subject federal reserve 2013 capital analysis review.
 federal reserve dividends without approval.
 information dividend restrictions loans dividends advances subsidiaries 201csupervision regulation 201d 201cfunding capital sources risk management preferred securities 14 capital securities subsidiary trusts trust securities 22 regulatory matters consolidated financial statements item 8.
information pnc common stock prices/dividends statistical information item 8 report.
 compensation plans pnc equity securities authorized issuance december 31 2012 table item 12.
 registrar stock transfer agent dividend disbursing agent computershare trust company.
 250 royall street canton 800-982-7652 201ccommon stock performance 201d item 5.
.
.
 repurchases pnc common stock fourth quarter 2012 table thousands 2012 total shares purchased average paid shares maximum number shares.
 total averagepricepaid pershare
 october 1 2013 31 $ 60.
 november 1 2013 750 $ 55.
 december 1 2013 31 $ 55. 21551
 $.
repurchases pnc common stock fourth quarter 2012 redeemed 5001 shares series m stock december 10  2012.
 established pnc non-cumulative perpetual preferred stock series m former e.
 december 10 2012 issued $ 500. 1 million 5001 shares series m stock national city capital trust i stock purchase contract agreement pnc january 30  2008.
 redeemed 5001 shares december 10 2012 redemption price $ 100000 per share.
 pnc common stock purchased employee benefit plans.
.
 current stock repurchase program 25 million shares open market privately negotiated transactions.
 authorized october 4 , 2007 until.
 repurchases market economic conditions regulatory capital considerations alternative uses capital credit ratings contractual regulatory limitations federal reserve capital adequacy program.
 pnc services.


impairments recorded in income operations.
 statement guidance testing goodwill.
 company had $ 3. 2 billion goodwill at december 31  2001.
 goodwill amortization $ 62 million.
 assessing impact of sfas.
 142 on financial position results.
 june 2001 fasb issued.
 asset retirement obligations retirement long-lived assets costs.
 effective for financial statements years after june 15 2002.
 recognition obligations retirement asset.
 assessing impact.
 143 financial position results.
 2001 fasb revised conclusion purchase sale electricity.
 qualify for normal purchases sales exemption not derivatives.
.
 criteria physical delivery electricity.
 contracts price underlying not related electricity denominated currency foreign not normal derivatives.
.
 effective april 1 2002.
company assessing impact dig issue c-15 financial results.
 revenues increased $ 1. 8 billion 24% 24 % $ 9. 3 billion from 7. 5 billion 2000.
 due acquisition businesses operations improvements operations.
 increased 5% 5 % $ 7. 1 billion.
 table revenue.
 generation 2. 5 billion. 47% 47
 supply. 13% 13
 utilities. 14% 14 %
. 31% 31
 contract generation revenues increased $ 800 million 47% 47 % $ 2. 5 billion 2001 1. 7 billion 2000.
 increased 2% ( 2 % $ 1. 7 billion.
 due increases south america/africa asia.
 increased $ 472 million acquisition reduced revenues.
 increased $ 88 million acquisition controlling interest kilroot.
contract revenues increased $ 96 million ecogen plant


estimate future cash flows beyond 12 months uncertainties tax audit outcomes.
 remaining unrecognized tax liability classified other liabilities.
 accrued interest penalties.
 2017 recognized $ 5. 6 million penalties $ 23. 1 million penalties may 28 2017.
 2016 benefit $ 2. 7 million $ 32. 1 million penalties may 29.
.
 leases warehouse space equipment.
 rent expense leases $ 188. million 2017 $ 189. 1 million 2016 $ 193. million 2015.
 leases require property taxes insurance maintenance costs.
 contingent escalation rent sublease income insignificant.
 noncancelable future lease commitments capital.
.
.
.
.
.
.
 noncancelable future lease commitments.
.
value obligations under capital leases.
 depreciation on leases recorded as expense in results operations.
 28 issued guarantees $ 504. 7 million consolidated subsidiaries $ 165. 3 million non-consolidated affiliates.
 off-balance sheet arrangements limited future payments under non-cancelable operating leases totaled $ 500. 7 million.
.
 consumer foods industry.
 new global orga structure leadership scale operational agility.
 results four operating segments north america retail. percent convenience stores foodservice. australia. percent asia latin america. percent
 restated net sales by seg segment operating profit new operating segments.
 changes no effect on consolidated net sales profit earnings per share.
 north america retail segment.
.
.
.
 combined into one.
.
convenience stores foodservice unchanged.
 europe australia.
 asia latin america.
 chief maker north america retail convenience foodservice australia asia latin.
 north america retail grocery stores mass merchandisers membership stores natural food chains discount chains e-commerce providers.
 84 mills


decline cash flows driven by timing inventory purchases 2014 2013.
 manage working capital operating cash needs monitor cash conversion cycle sales plus supply inventory minus purchases three-month average.
 components cycle.
 2015 2014 2013
 sales outstanding 48
 supply inventory 13
 purchases outstanding
 cash conversion cycle
 1 three-month average balance trade accounts receivable divided by average daily net sales.
.
 2 average merchandise inventory divided average daily cost goods sold.
 3 combined balance accounts payable-trade excluding overdrafts-inventory financing divided by average daily cost goods sold.
 cash conversion cycle 21 days december 31  2015 2014.
increase dso driven by higher receivable balance 2015 higher public segment sales slower government payments increase net sales third-party services software assurance warranties.
 dso receivable sales.
 dpo.
 increased mix payables longer payment terms.
 cash conversion cycle decreased 21 days december 31 2014 23 days 2013 improvement dso.
 decline dso improved collections early payments.
 timing inventory receipts 2014 dio unfavorable dpo.
 increased $ 189. 6 million 2015.
 due acquisition kelway 65% common stock 2015.
 capital expenditures increased $ 35. 1 million to $ 90. 1 million from. new office location information technology systems.
 net cash increased $ 117. 7 million 2014.
 paid $ 86. 8 million 2014 35% non-controlling interest in kelway.
capital expenditures increased $ 7. 9 million to $ 55. million from $ 47. 1 million 2014 information technology.
 cash increased $ 114. 5 million.
 driven share repurchases $ 241. 3 million.
. offset accounts payable-inventory financing $ 20. 4 million debt transactions cash outflows $ 7. 1 million $ 145. 9 million


contents tceq harris county pollution control services department houston terminal.
 outstanding noe tceq vn hcpcs excess emissions tank 003 hurricane harvey.
 working with authorities resolve.
 item 4.
 mine safety disclosures item 5.
 market registrant 2019s common equity stockholder matters issuer purchases equity securities common stock trades nyse trading symbol 201cvlo. 201d january 31 2019 5271 holders.
 dividends considered quarterly board paid approved depend financial condition results cash flows prospects industry conditions capital requirements factors.
 no assurance dividend.
 table discloses purchases common stock fourth quarter 2018.
 purchased average price paid not purchased plans dollar value.
october 2018 939957 $ 87. $ 2. 7 billion
 november 3655945 $. 216469 3439476 $ 2. 4 billion
 december 3077364 $. $ 2. 2 billion
 7673266 $. 229817 7443449 $ 2. 2 billion
 shares fourth quarter 2018 open-market employees stock options restricted stock.
 january 23 2018 board authorized $ 2. 5 billion common stock 2018 remaining $ 2. 5 billion program 2016.
 fourth quarter purchases.
 december 31 $ 2. 2 billion 2018.


exposed to market risk interest foreign exchange rates equity prices.
 cause earnings cash.
 manage hedging transactions.
 counterparties rated institutions.
 credit limits.
 hedging transactions include derivative instruments.
 interest exchange commodity price equity risk see note 7 financial statements page 61.
 estimates maximum potential fair value from changes interest rates foreign exchange rates commodity prices equity prices conditions.
 value-at-risk methodology risk.
 95 percent confi dence level.
 historical interest rates commodity equity prices volatility correlation.
 data from riskmetrics 2122.
 calculations not represent actual losses value.
 instrument cor relates underlying exposure loss gain by.
 positions debt investments interest rate swaps foreign exchange forwards com modity swaps futures options equity instru ments.
calculations include foreign exchange commodities equity positions.
 table presents estimated maximum potential one-day loss interest rate foreign currency commodity equity instruments may 28 29 2016 average fair value impact 28.
 interest rate instruments $ 25. $ 26. 33.
 foreign currency 24. 22. 27.
 commodity instruments 3.
 equity instruments.
 disclosures market risk


material varies from retirement profile depreciation studies.
 gain loss recognized sell land assets not operations.
 purchase asset capitalize costs.
 assets self-constructed.
 capital expenditures replacement road infrastructure employees track line expansion.
 capital projects capitalized.
 direct costs material labor work equipment.
 indirect costs capitalized relate construction.
 allocated statistical bases.
 general administrative expenditures expensed.
 repairs maintenance useful life safety efficiency capitalized.
 capital leases recorded lower net present value minimum lease payments fair value.
 amortization expense computed straight-line method shorter estimated useful lives.
.
 accounts payable current liabilities.
.
 millions.
.
 accounts payable
 wages vacation
 casualty costs
 income taxes
 dividends interest
equipment rents payable 89 93
 480 546
 accounts payable current liabilities $ 2470 $ 2560
.
 financial instruments strategy risk 2013 derivative instruments interest rates fuel prices.
 not party leveraged derivatives speculative.
 hedge accounting effectiveness.
 document relationships risk-management objectives strategies effectiveness.
 changes market value instruments charged earnings.
 use swaps collars futures forward contracts mitigate risk adverse interest rates fuel prices limit benefits interest rate fuel price.


2.
 offices boston southborough woburn atlanta cary north carolina mexico sao paulo brazil.
 details.
 location function size property interest
 boston corporate american tower international headquarters 19600
 southborough technology data center 13900
 woburn broadcast 57800
 atlanta accounting 21400
 cary carolina engineering 17500
 mexico 11000
 sao paulo brazil 5200
 facility woburn 163000 square feet.
 57100 square feet lease administration office broadcast division lease remaining unaffiliated tenants.
 15 regional offices tower leasing services.
 facilities.
 office delhi india international business development group london england.
interests in communications sites leases easements licenses rights-of-way government entities.
 tower sites subject to mortgages deeds trust.
 typical tower site compound structure equipment shelters transmitting receiving switching equipment.
 three types of towers guyed self- supporting lattice monopole.
 guyed tower cables.
 heights to 2000 feet.
 to 20 acres.
 lattice tower tapers bottom three or four legs.
 to 1000 feet.
 10000 square feet less than 2500.
 monopole tubular structure space constraints aesthetic concerns.
 heights 50 to 200 feet.
 tower site less than 2500 square feet.


variable three-month libor plus 2. 05%. 05 %. 34%. 34 % ) october 31  2009.
 libor changes 100 points annual interest expense $ 3. 8 million.
 foreign currency exposure.
 hedge.
 dollar exposures foreign currency exchange contracts.
 exposure one month to twelve months.
 largest foreign currency exposure euro european operations highest local currency expenses.
 10% unfavorable movement foreign currency exchange rates significant losses exposures fluctuations.
 market risk currency exchange rate movements risk.
 counterparties major international financial institutions high credit ratings.
 risk nonperformance credit ratings.
 contract amounts derivative financial instruments volume transactions represent exposure credit risk.
amounts subject credit risk counterparties meet terms contracts limited obligations exceed obligations.
 table illustrates effect 10% % unfavorable movement foreign currency exchange rates.
 fair value forward exchange contracts october 31 2009 november 1 2008.
 october 31 1 2008 value forward exchange contracts 6427
 % unfavorable movement 20132 -9457
 -6781 ( 6781 38294
 unfavorable movement.
.
.
.
.
.
.
.
.
 20132 9457 value contracts 10% 10 % favorable movement currency.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
 calculation assumes exchange rate direction relative.
 dollar.
 affect volume sales foreign currency price products.
sensitivity analysis currency sales levels local currency prices.


17.
 losses pmi's net taxes.
 earnings millions 2015 2014
 currency translation adjustments $ -6129 ( $ -3929 -2207 (
 pension benefits -3332 ( 3332 -3020 (
 derivatives hedges
 losses $ -9402 ( $ -6826 ( $ -4190 (
 reclassifications tax impact consolidated statements 2015 2014 2013.
 currency translation adjustments impacted purchase shares mexican tobacco business.
 $ 1 million $ 5 million $ 12 million net currency translation adjustment gains transferred marketing administration research costs liquidation subsidiaries.
 note 13.
 benefit plans 15.
 instruments pmi's pension.
 18.
colombian investment cooperation agreement june 19 2009 pmi signed agreement colombia departments capital district promote investment cooperation tobacco market fight counterfeit.
 provides $ 200 million funding colombian 20-year combating illegal cigarette trade counterfeit tobacco increasing quality locally grown tobacco.
 pmi recorded pre-tax charge $ 135 million latin america canada second quarter 2009.
 december 31 2015 2014 $ 73 million $ 71 million discounted liabilities.
 paid through 2028.
.
 legal settlement july 31 2008 rothmans.
 cad 550 million settlement benson hedges.
.
 resolved investigation products exported canada 1989-1996.
 rothmans interest rbh.
 remaining 40% pmi.


cgmhi committed long-term financing banks.
 december 31 2010 drawn $ 900 million $ 150 million guaranteed by citigroup.
 bank terminate one-year notice.
 issues fixed variable rate debt.
 uses derivative contracts interest rate swaps convert.
 maturity structure corresponds.
 contracts foreign exchange impact debt.
 weighted average interest rate long-term debt 3. 53%. 2. 78%. derivative contracts.
 annual maturities long-term debt debt 2010 2009 includes $ 18131 million $ 19345 million junior subordinated debt.
 business trusts delaware.
 issuing trust securities investing proceeds in deferrable interest debentures activities.
 citigroup redeem securities.
 not to redeem purchase. 50%. enhanced trust preferred securities citigroup before september 15 2056.45% 6. 45 % ) securities citigroup capital xvi before december 31 2046 6. 35%. 35 % xvii before march 15 2057 6. 829%. 829 % fixed xviii before june 28 2047 7. 250%. 250 % ) xix before august 15  2047 7. 875%. 875 % xx before december 15 2067 8. 300%. fixed rate xxi before december 21  2067 conditions exhibit 4. 03 september 18 2006. 2. august 17. november 27 2007. december 21.
 agreements benefit holders citigroup 2019s 6. 00%. junior deferrable interest debentures due 2034.
 citigroup owns voting securities subsidiary trusts.
subsidiary trusts assets operations cash flows issuance administration repayment.
 obligations guaranteed citigroup.
 millions 2011 2013 2014 2015
 $ 35066 38280 17875
 non-bank 15213 25950 18381
 company 21194 30004 21348 19096 12131 88171
 $ 71473 94234 37219 31903 21927


entergy louisiana.
 rates.
 no change ratemaking.
 approval additional return equity capital expired.
 receivables money pool december 31.
 2004 2003 2002 2001
 40549 41317 $ 18854
 used $ 81. million cash flow 2004 $ 60. 2 million 2003 $ 15. million 2002.
 note 4.
 decrease $ 25. million net cash 2004 decreased spending customer service transmission fossil plant.
 increase $ 56. million 2003 increased spending nuclear.
 decrease $ 404. million net cash 2004 due to issuance $ 98. long-term debt 2004 $ 261. principal payment $ 14. million 2004 $ 35. 2003 decrease $ 29. million common stock dividends.
 decrease $ 105. million net cash 2003 due $.common stock dividends repurchase $ 120 million.
 net cash offset retirement $ 150 million. mortgage bonds $ 134. 6 million 2002 payments $ 35. 4 million 2003 waterford 3 lease obligation $ 15. 9 million 2002.
 note 5 utility-term.
 construction investments debt stock maturities working capital fuel dividend interest payments.


advance auto parts.
 subsidiaries financial statements december 28 29 31 2011 2012 fasb issued asu.
 2012-02 assets impairment. modifies requirement test assets not amortization test.
 option qualitative assessment fair value asset less carrying amount impairment test.
 effective fiscal years september 15 2012 early adoption permitted.
 no impact financial condition results operations cash flows.
.
 lifo method accounting 95% inventories december 28 2013 29 2012.
 cost sales recently purchased inventories balance inventories purchased 2013.
 reduction cost sales $ 5572 $ 24087 2013 2012.
 costs acquire inventory decreased growth merchandise strategies supply chain efficiencies.
 fiscal 2011 increase cost sales $ 24708 due supply chain costs inflationary pressures.
remaining inventories non parts batteries valued under first-in first-out ) method.
 merchandise costs passed customer or returned vendor.
 not subject cost changes no material difference lifo or fifo valuation method.
 inventory overhead purchasing warehousing costs december 28 2013 29 2012 $ 161519 $ 134258.
 balance reserves end 2013 2012 28 29.
 inventories fifo net $ 2424795 $ 2182419
 lifo 131762 126190
 net $ 2556557 $ 2308609
 quantities tracked perpetual inventory system.
 completes physical inventories counts.
 cycle counting program.
 reserves for estimated established based physical inventories stores counts recent cycle counts historical loss trends.


inc.
 financial statements 2014 agreements.
 historical experience future loss determined fair value indemnifications not material financial position results.
 involved legal proceedings product liability trademark rights.
 proceedings impact financial position results.
 restructuring charges 2009 management structure consumer focus innovation scalable long-term cost structure.
 reduced global workforce 5% incurred pre-tax restructuring charges $ 195 million severance costs workforce reduction.
 additional costs future.
 restructuring charge reflected corporate expense line pre-tax income 19.
 activity restructuring accrual year may 31 2009.
 restructuring accrual 2014
 severance costs 195.
 cash payments.
 non-cash stock option restricted stock expense.
 foreign currency translation.
 2014 149.
accrual balance may 31 2009 relieved 2010 2011 severance payments.
 restructuring consolidated balance sheet.
 reorganized nike brand operations.
 regions. middle east africa asia pacific americas.
 quarter 2009 new model.
 first quarter 2010 six geographies north america western europe central/eastern europe greater china japan emerging markets.
 sale starter brand iconix brand group.
 $ 60. million.
 gain $ 28. million may 31 2008.


subsidiaries premiums years december 31 2008 millions.
 dollars percentages amount ceded companies assumed amount percentage assumed.
 years december 31 2009 2008 millions. ceded net amount percentage assumed
 2010 $ 15780 $ 5792 $ 3516 $ 13504 26% 26 %
 2009 $ 15415 $ 5943 3768 $ 13240 28% 28 %
 2008 $ 16087 $ 6144 3260 $ 13203 25%


graph compares 5-year return shareholders cadence design systems. common stock to returns s & p 500 nasdaq composite information technology index.
 assumes investment common stock indexes including reinvestment dividends was $ 100 december 29 2001 30 2006.
 comparison 5 year return cadence design systems. s & p 500 nasdaq composite.
 $ 100 invested 12/29/01 stock 12/31/01 index-incuding reinvestment dividends.
 calculated month-end basis.
 copyright division mcgraw-hill companies.
.
. researchdatagroup.
 2004 2005
 cadence design systems. 54. 81. 61. 75. 79.
. 77 111. 116. 135.
. 71. 107. 117. 120. 137.
s & p information technology 100. 44


insurance receivables estimates significant judicial ruling settlement regulatory development changes law.
 adverse ruling results cash flows.
 estimate future asbestos liabilities congressional legislation reform asbestos litigation.
 legal proceedings accounting estimates note 11 consolidated financial statements annual report form 10-k.
.
.
.
.
 3m offices research laboratories division laboratories.
 minnesota.
 15 sales offices 12 states 59 manufacturing facilities 23 states.
 173 sales offices.
 80 manufacturing facilities 29 countries.
 owns physical properties.
 facilities.
 global enterprise intersegment cooperation multiple business segments.
.
 legal proceedings.
 part ii 8 201ccommitments contingencies proceedings.
.
 submission vote security holders.
 quarter december 31 2005.
.
2019s common equity stockholder matters issuer purchases equity securities.
 equity compensation plans 2019 incorporated part iii item 12 security ownership owners management integral part item 5.
 january 31 2006 125823 shareholders.
 2019s stock new york stock exchange.
 pacific. chicago. swx swiss exchange.
 cash dividends $. 42 per share quarter 2005. 36 share quarter 2004.
 stock price comparisons composite transactions share amounts fourth.
 fourth
 2005 $ 87. 86. 76. 79.
.
 $ 86. 90.
.


consolidated financial statements 2014 years 2007 2006 2005 millions share.
 impairment debt equity securities 2005 bio-fuels malt venture impaired recognized pre-tax impairment charges $ 71. 0 million $ 65. 6 million after tax.
 2006 additional impairment charges $ 75. 8 million $ 73. 1 million after tax malt foreign declines proceeds.
.
 impairments determined recoverability proceeds.
 2007 malt venture $ 24 million $ 7 million.
 pre-tax gain $ 4 million tax benefit $ 4 million.
 equity earnings.
 2006 subordinated notes $ 150 million accrued interest $ 50. 4 million swift foods.
 2005 swift foods capital structure.
 fair value subordinated notes impaired.
company determined notes impaired quarter 2006 believed temporary.
 reduced carrying value $ 35. 4 million recorded after-tax charges $ 21. 9 million second quarter 2006.
 conditions impairment.
 reduced carrying value $ 117 million recognized impairment charges $ 82. 9 million selling administrative expenses reclassification after-tax charges $ 21. 9 million.
 second quarter 2007 closed sale $ 117 million no additional gain loss.
.
.
 raw materials packaging 1154. $ 985.
 work progress.
 finished goods.
 supplies.
. 2130.
 packaging grain fertilizer crude oil trading merchandising inventory $ 691. million $ 542. 1 million end fiscal 2007 2006.


january 2016 company issued $ 800 million debt securities $ 400 million three year note coupon rate 2.%. $ 400 million seven year note coupon rate 3. 25%.
 proceeds repay commercial paper term loan balance general corporate purposes.
 public notes 144a notes redeemed redemption prices accrued unpaid interest make-whole premium.
 change control downgrade investment grade rating repurchase price equal 101% principal plus accrued unpaid interest repurchase.
 public notes 144a notes senior unsecured obligations rank equally indebtedness.
 registration rights agreement 144a notes.
 file registration statement exchange 144a notes terms identical new 10-year 30-year notes transfer restrictions increase interest rate exchange registration statement effective 270 days after issuance.
exchange offer registration statement effective 144a notes sold rule 144a securities act 1933.
 redeemed redemption prices accrued unpaid interest make-whole premium.
 changes control repurchase equal 100% principal amount plus accrued unpaid interest.
 merger events asset sales downgrade below investment grade rating.
 notes unsecured senior obligations equal senior indebtedness.
 guaranteed by subsidiaries.
 2015 acquired interest trust leased naperville facility debt assumption $ 100. 2 million addition $ 135. 2 million property plant equipment.
.
 cash paid $ 19. 8 million.
 non-cash financing investing.
 remaining balance debt settled december 2017 reflected line december 31 , 2016.
 compliance with covenants under indebtedness at december 31  2017.
31 long-term debt five years millions.
 550
 2020 300
 2021 1017
 2022


item 5 2014market 2019s common equity.
 common stock traded new york stock exchange symbol 2018.
 tables high low sale prices common stock.
.
 2001 first quarter high $ 60. low $ 41. 2000 quarter high $ 44. low 34.
 quarter 52. 25 39.
 third quarter 44. 70
 fourth quarter 17. 72. 81
.
 march 2 2002 9967 holders common stock value $ 0. 01 per share.
 dividends.
 corporate revolving loan credit $ 850 million limited cash dividends.
 precluded paying cash dividends common stock guaranty utility net worth liquidity tests.
.
 subsidiaries pay cash dividends limitations project loans governmental provisions agreements.
limitations permit payment cash dividends cash quarterly semiannual after principal interest project loans debt service reserves.


selling costs increased $ 5. 4 million to $ 17. 1 million 2005 from 11. 7 million 2004.
 due increased headcount startup costs international growth initiatives.
 6. 1%. 2005 from. 7%. 2004.
 payroll costs increased $ 8. 6 million to $ 26. 9 million 2005 from 18. 3 million 2004.
 footwear line added technology equity compensation costs retail stores invested compliance.
 increased. 6%. 2005 from. 2004.
 corporate costs increased $ 7. 2 million to $ 25. 5 million 2005. million 2004.
 footwear initiative freight duty expansion leased office space distribution facility.
 costs 9. 1%. 2005. 2004.
 income operations increased $ 10. 5 million. to $ 35. 9 million 2005 from 25. million 2004.
 12. 7%.% 2005 from 12. 4%. 2004.
 gross margin offset selling administrative expenses.
 increased $ 1. 6 million to $ 2. 9 million 2005 from. 3 million 2004.
 due higher borrowings interest rate revolving credit facility public offering.
 income taxes increased $. 5 million to $ 13. 3 million 2005 7. 8 million 2004.
 effective tax rate 40. 2%. 32 3%. 2004.
 due state tax rate reduced tax credits.
 net income increased $ 3. 4 million to $ 19. 7 million 2005 16. 3 million 2004.
 revenues increased $ 89. 8 million. $ 205. 2 million 2004. 4 million 2003.
 net sales license revenues.
. 8%. 8 %
.
. 2%. 2 %
accessories 7548 2072 5476.
 sales 200874 113755 87119. 6 %
 revenues 4307 1664.
 205181 115419 89762 77.


reconciliation unrecognized tax benefits.
 2014january 1 2008 $ 7928
 july 31 2008 3525
 increases 2454
 decreases -1572
 increases 2255
 reductions statute limitations -1598
 currency fluctuation -259
 settlements -317
 benefit 2014december 31 2008 $ 12416
 $ 5. 6 million effective tax rate.
 $ 5. million goodwill $ 1. 9 million adjustments tax.
 uncertain tax positions $ 2. 6 million resolved twelve months.
 recognizes interest penalties unrecognized tax benefits income.
 recorded interest $ 171000 2008.
 penalties insignificant.
 liability penalties $ 498000 interest $ 1. 8 million.
 subject taxation.
 states foreign jurisdictions.
company 2005 2008 tax years open revenue.
 2005 2006 federal returns under examination.
 foreign subsidiaries filings state tax filings.
.
 profit-sharing 401 ( k )-sharing plans full-time employees salary reduction section 401.
 matching contributions 100% first 3% additional 25% next 5% maximum. compensation
 discretionary profit sharing contribution 0% to 5% compensation employed worked 1000 hours.
 subsidiary acquired 401 ( k ) plan.
 no matching employer contribution.
 defined contribution pension arrangements international employees.
 retirement programs $ 3. 7 million 2008 $ 4. 7 million 2007 $ 4. 1 million 2006.
.
 non-compete employment agreements not disclose trade secrets confidential information engagement


pension plan assets include public equities bonds cash equivalents real estate funds partnerships hedge funds.
 held in master trust overseen by investment committee.
 managed active passive strategies.
 managers invest asset classes appointed.
 investment committee.
 minimum maximum values each asset class 31 2018.
. equities 36% ( 36 %
 international equities 29% ( 29 %
 fixed income securities 50% ( 50 %
 alternative investments 25% 25 %
 objectives return benefit obligations meet funding requirements maintain liquidity requirements.
 objectives reducing volatility competitive return diversification risks.
 objectives determined based risks opportunities.
 decisions historical return risk characteristics.
 updates asset allocations periodically.
company uses analytics asset mix considers obligation characteristics duration liquidity funding requirements rates return rebalancing distribution returns.
 allocations vary strategy changes market value fluctuations timing benefit payments company contributions.
 company determines allocation master trust investments asset classes.
 utilizes investment strategies executed structures with external investment managers.
 selection performance risk fiduciary responsibility experience policies processes.
 investment performance monitored tracked consultants.
 plan assets fair value.
 company employs pricing sources independent pricing vendors valuations third- party appraisals.
 investments in equity securities valued at last sales price active market.
 level 1.
 valued at last trade price broker's quote non-active market level 2.
investments in fixed-income securities valued by pricing services.
 market transactions relationships between categorized level 2.


fiscal 2013 asr financial institution repurchase $ 125 million common stock.
 payment $ shares march 30 2013.
 total shares delivered 2. 5 million average $ 49. 13 per share.
 repurchased retired 1. 1 million shares common stock $ 50. 3 million average $ 44. 55 per share commissions.
-based awards options restricted stock granted officers employees directors global payments.
 incentive plan.
.
.
 no further grants 2000 plan director stock option plan expired february 1  2011.
 no future grants 2000 2005 2011 plan permits grants equity employees officers directors consultants.
 7. 0 million shares common stock reserved.
table summarizes share-based compensation expense income tax benefit stock options restricted stock performance units tsr units shares employee stock purchase plan.
 2014 2013 millions.
 share-based compensation expense $ 21. $ 29. $ 18.
 income tax benefit $ -6. $ -7. -5
 grant share-based awards 201clong-term incentive plan. awards held in escrow released grantee satisfaction.
.
 vest over grantee employed vesting shares forfeited.
 until vested.
 granted before 2015 vests equal installments four anniversaries.
 during three-year service period.
 grant date fair value restricted stock based quoted market value recognized share-based compensation expense vesting period.
 long-term incentive plan.
 convert into common shares.
shares performance measures.
 target units market-based measures threshold set compensation committee.
 units converted after committee.
 2013 global payments.
 2015 10-k annual report


september 2015 company treasury hedges $ 1. billion reducing risk 10-year treasury yield.
 cash flow hedges.
 october 13 2015 $ 4. 5 billion terminated treasury contracts cash settlement $ 16 million earnings interest expense ten years.
 business operations.
 translation local currency balances subsidiaries transaction gains losses intercompany loans transactions.
 activities foreign currency forward contracts non- derivative investment hedges.
.
 exchange risks non.
 operations.
 exchange rates revenues.
.
 2017 2016 2015 generated $ 1830 million $ 1909 million $ 1336 million revenues.
.
 major currencies brazilian real euro british pound sterling indian rupee.
10% exchange rates revenues december 31 2017 2016 2015 millions.
 currency 2016 2015
 pound sterling $ 42 $ 47 $ 34
 euro
 real
 indian rupee
 increase decrease $ 130 $ 129 $ 106
 impacted currency fluctuations international operations revenues expenses local currency reduces foreign exchange risk.
 revenues $ 16 million favorable $ 100 million unfavorable net earnings $ 2 million favorable $ 10 million unfavorable impact 2017 2016.
.
 2018 minimal foreign currency impact earnings.
 foreign exchange risk management policy permits derivative instruments contracts options reduce volatility.
 instruments.
 periodically forward exchange contracts hedge.
 december 31 2017.
 utilizes non-derivative investment hedges reduce volatility currency.


payments increased 2015 due higher debt.
 flat 2014.
 increase income tax due higher taxable income operations offset tax deductions.
 decrease 2014 due settlement tax disputes repatriation foreign earnings.
 offset higher taxable income economic stimulus legis lation.
 expect tax increase 2016 due higher taxable income operations.
 cash 2015 capital expenditures intangible assets purchases offset sales.
.
 2013 acquisitions.
 significant recurring cable communications segment.
 table summarizes capital expenditures cable communications 2015 2014 2013.
 31 millions
 cable distribution system $ 2424 $ 2047 $ 1819
 equipment 3698
 other equipment 756
 buildings improvements
 $ 7034 $ 6154 5403
cable communications capital expenditures increased 2014 x1 platform wireless gateways network infrastructure business services.
 expenditures nbcuniversal segments increased. 5%. $ 1. 4 billion 2015. $ 1. 2 billion 2014 universal theme parks purchase land.
 capital expenditures 2016 x1 platform cloud dvr wireless gateways expansion business services.
 expenditures depend acquisitions competition technology regulatory changes services capacity.
 attractions theme parks.
 developing universal theme park beijing.
 2016.
 cash intangible assets 2015 2014 2013 software.
 2015


has contractual guarantees for premium payments insurance companies.
 maximum exposure $ 48 million at december 31 2011.
 commitments to fund limited partnerships.
 commitments expiration dates maximum potential funding $ 64 million at december 31 2011.
 funded $ 15 million.
 additional guarantees indemnifications may be issued.
.
 provided retail brokerage consulting financial advisory services received wholesale brokerage services from controlled by.
 transactions negotiated-length customary terms conditions.
 commissions fee revenue $ 9 million.
.
 two reportable operating segments risk solutions hr solutions.
 unallocated income expenses consolidated financial statements.
 determined resources performance.
 income accounts for intersegment revenue.
 net assets by segment.
advisor insurance broker risks.
 partners solve benefits talent financial challenges business performance designing human capital retirement investment health care compensation talent management strategies.
 revenue millions.
 years 31 2011
 solutions $ 6817 $ 6423 $ 6305
 4501 2111 1267
 -31
 operating segments 11287 8512 7546
 unallocated 2014
 revenue $ 11287 $ 8512 7595


shareholder return compares annual return stock dow jones containers packaging index s&p composite 500 index five-year period december 31 2012.
 $ 100 invested 2007 dividends reinvested.
 dow jones containers packaging index return weighted market capitalization.
 $ 100 investment.
 12/31/2007/31/2008/31/2009/31/2012
 corporation $ 100. 93. 117. 155. 164. 207.
 containers packaging 100. 61. 97. 107.
 500 100. 75. 97
.


consolidated financial statements union pacific corporation subsidiary companies references subsidiaries railroad company 201cuprr 201d 201crailroad 201d.
.
 class i united states.
 32094 route miles pacific gulf coast ports midwest eastern states gateways mexican gateways.
 serve western thirds country coordinated schedules carriers freight atlantic pacific coast southeast southwest canada mexico.
 export import traffic gulf coast pacific coast ports mexican canadian borders.
 railroad subsidiaries affiliates reportable operating segment.
 commodity group net financial results segment.
 revenue commodity group 2009 2008 2007.
 agricultural
 automotive
 chemicals
 energy
 industrial products
 intermodal
freight revenues $ 13373 $ 17118 $ 15486
 revenues 770 852 797
 operating revenues $ 14143 $ 17970 $ 16283
 customers united states origination products outside.
 financial statements accounting principles united states financial accounting standards board.
 events evaluation events february 5 2010.
 securities exchange commission.
.
 accounting policies change rail grinding costs capital asset.
 accounting policy


non-cash expense $ 164 million $ 189 million $ 167 million unallocated.
 impact $ 107 million $ 122 million $ 108 million.
 december 31 2014 $ 91 million unrecognized compensation cost nonvested awards 1. 6 years.
 received cash stock options $ 308 million $ 827 million $ 440 million 2014 2013 2012.
 income tax liabilities reduced $ 215 million $ 158 million $ 96 million tax benefits stock-based compensation.
 authorized grant stock incentive awards options common stock appreciation rights.
 price less fair market value.
 no vested third anniversary less one year.
 minimum vesting period stock three years.
 shorter vesting periods.
 maximum term 10 years.
 december 31 2014 19 million shares.
december 31 2014. 8 million shares stock compensation plans.
 new shares options restrictions.
 table summarizes activity nonvested rsus 2014 grant-date value share.
 31 2011 4302 $ 78. 25
. 93
. 64
 -168.
 31 2012 4822 $ 79.
.
. 26
 -226.
 31 2013 3859 $ 82. 42
. 85
 87. 66
 -84.
 31 2014 2326 $ 97.
 valued fair value common stock grant.
 employees granted rsus receive shares after vesting period shares not issued sell transfer vesting no voting rights until three years.
 granted dividend cash payments vesting.
rsu awards grant-date value equal closing market common stock less discount delay dividend cash payments.
 grant-date value rsus forfeitures compensation expense service period 2013 shorter vesting period retirement eligible.


abiomed.
 subsidiaries financial statements 2014.
 no accumulated impairment losses.
 performed step assessment impairment 2015 fair value reporting unit less carrying amount.
 two-step goodwill impairment test not necessary 2015.
.
 acquired ecp ais recorded $ 18. 5 million ipr&d.
 estimated fair value probability-weighted income approach future cash flows.
 cash flows expandable catheter pump technology assumptions revenue expenses stage development time resources.
 discount rate 22. 5%. cash flows probability adjusted risks product commercialization.
 carrying value ipr&d assets change balance year march 31 2015.
 beginning balance $ 2014
 foreign currency translation impact
 ending balance $ 14711
.
 equity authorized 1000000 shares. board directors designation.
shares class b stock issued outstanding.
 authorized repurchase $ 15. million common stock.
 financed cash.
 2013 repurchased 1123587 shares $ 15. million average $ 13. 39 per share commission.
 completed purchase stock january 2013.
.
 grants stock options restricted stock awards employees.
 outstanding stock options march 31 2015 granted exercise price equal fair market value.
 expire 10 years.
 2008 stock incentive plan authorizes equity awards officers directors employees consultants advisers unrestricted restricted stock options performance awards stock appreciation rights.
 options granted current market value.
 counts maximum


matters twelve months impact operations financial position.
 foreign jurisdictions statutes limitations 3 to 5 years.
 examination tax australia canada france germany italy japan puerto rico singapore switzerland united kingdom.
 tax returns under examination foreign jurisdictions.
 significant united kingdom.
 audits twelve months resolution impact.
.
 authorized issue 250 million shares preferred stock none issued outstanding december 31 2008.
 numerator basic diluted earnings per share net earnings.
 denominator basic earnings weighted average shares outstanding.
 diluted weighted average shares adjusted dilutive stock options equity awards.
 reconciliation weighted average shares diluted years ending december 31.
 weighted average shares net earnings per share.
 dilutive stock options equity awards..
 shares diluted net earnings 228. 237. 245.
 227. 235. 5 243. dilutive stock options equity awards. diluted earnings 228. 237. 5 245. 2008 11. 2 million options not greater market price.
 2007 2006 3. 1 million. 6 million options not.
 2008 repurchased. 8 million shares common stock $ 68. 72 per share cash outlay $ 737. million.
 2008 board authorized $ 1. 25 billion share repurchase program expires december 31 2009.
 $. 13 billion.
.
 design develop manufacture market orthopaedic dental reconstructive implants spinal implants trauma products.
 healthcare services.
 revenue less than 1 percent net sales.
 operations segments united states pacific.
structure reportable segment information.
 management evaluates performance profit global operations corporate expenses share compensation settlement claims acquisition integration inventory step-up research development write-offs intangible asset amortization.
 global operations research development engineering medical education brand management legal finance human resource.
 manufacturing operations logistics.
 intercompany transactions eliminated profit.
 management reviews accounts receivable inventory property plant equipment goodwill intangible assets. manufacturing logistics corporate assets.
.
 consolidated financial statements


fleet automation 66% residential routes converted to automated single driver trucks.
 labor costs productivity safer work environment.
 communities using automated vehicles higher recycling recycling.
 fleet conversion to compressed natural gas 12% fleet operates on natural gas.
 continue conversion to cng.
.
 50% replacement vehicle purchases 2013 cng vehicles.
 competitive advantage clean emission objectives.
 natural gas fleet operating costs fuel expenses.
 standardized maintenance eighth largest vocational fleet in states.
 2013 average fleet age business.
 residential
 commercial
 industrial
 standardization of core functions variability maintenance higher vehicle quality service life fleet.
 reliable safer efficient fleet operating costs.
 completed standardized maintenance programs for 45% fleet maintenance operations.
cash utilization strategy increasing free cash flow improving return on invested capital.
 definition cash flow.
 operating activities less purchases property plus proceeds sales.
 read section management financial condition 7 form 10-k.
 free cash flow drives shareholder value provides information.
 returning dividends share repurchases.
 committed to efficient capital structure investment grade rating.
 free cash flow capital expenditures operating asset levels business growth opportunities working capital accounts receivable accounts payable accrued landfill environmental costs.


stock price performance graph shows cumulative return common stock standard & poor's 500 index retail index.
 assumes value investment $ 100 december 30 2006 dividends reinvested.
 based historical data not forecast future performance.
 cumulative return advance auto parts. s&p 500 index retail index $ 100. $ 108. 97. 116. $ 190. $ 201.
 30 2006 2007 3 2009 2010 2011
 auto parts 100. 108. 97. 116. 190. 201.
 s&p 500 index 100.
&p retail index.
 stock price performance graph shows comparison cumulative total return common stock standard 500 index retail index.
 assumes value investment $ 100 december 30 2006 dividends reinvested.
comparison historical not future performance common stock.
 return advance auto parts. s&p 500 index retail index 30 $ 100. 29 $ 108. $ 97 $ 116. 1 $ 190. 31 $ 201.


entergy corporation subsidiaries financial louisiana gulf states business combination 2015 deferred tax asset increase $ million regulatory liability $ 107 million $ 66 million net-of-tax customer credits entergy louisiana settlement.
 2.
 sale 583 mw rhode island state energy center gain $ 154 million $ 100 million net-of-tax $ 77 million $ 47 million net-of-tax write-off regulatory charges waterford 3 replacement steam generator project.
 14.
.
 2014 $ 154 million $ 100 million vermont yankee decommissioning cost study reassessment decommissioning cash flows severance employee retention costs.
 14.
 $ 56. 2 million $ 36. 7 million net-of-tax write-off entergy mississippi regulatory asset new nuclear generation costs stipulation mississippi public utilities recovery costs deferred.
 note 2 financial statements nuclear generation.
 revenue 2015 2014.
.
 2014 net revenue $ 5735
 retail electric price 187
 volume
 waterford steam generator
 credits
 2015 net revenue $ 5829
 retail electric price variance 2022 formula rate plan increases entergy louisiana energy efficiency entergy arkansas louisiana mississippi quarter 2014 annual net rate increase entergy mississippi $ 16 million february 2015 mpsc order june 2014.
 note 2 financial statements rate regulatory proceedings.


represented by allied infrastructure collection routes waste transfer disposal channels value included in goodwill.
 assets not deductible income tax.
 financial statements include results from december 5 2008.
 acquisition completed january 1 2008.
 illustrative not indicative of results future results.
 cost savings costs integration consolidation.
 year ended december 31.
 revenue $ 9362.
 net income 285.
 earnings per share.
 diluted earnings per share.
 information includes adjustments for amortization assets discounts fair value debt environmental self-insurance liabilities capping closure obligations amortization assets provision income taxes.
 restructuring 2008 acquisition committed restructuring plan.
 closing office florida consolidating functions arizona reducing staffing.
plan closing consolidating locations terminating leases.
 2009 incurred $ 11. million $ 63. million restructuring integration charges.
 severance employee termination relocation benefits consulting professional fees.
 corporate segment.
 additional charges.
 remaining charges paid 2011.
.


entergy corporation subsidiaries financial 2014 2013.
.
 2013 revenue $ 5524
 retail electric price 135
 asset retirement obligation 56
 volume/weather 36
 miso deferral 16
 wholesale revenue -29 29
 -3 3
 2014 net revenue $ 5735
 retail electric price variance increases energy efficiency rider entergy arkansas 2013 2014.
 offset operation minimal effect income increase january 2014 offset miso rider rate plan increase entergy mississippi storm damage rider.
 offset operation expenses no effect income annual base rate increase entergy texas april 2014 formula rate plan increase entergy louisiana december 2014.
 note 2 financial statements.
 asset retirement obligation affects revenue expenses earnings costs.
variance caused regulatory credits decommissioning earnings depreciation accretion expenses asset retirement.
 volume/weather variance due 3129 gwh 3% billed electricity usage industrial weather residential sales.
 industrial sales due expansions recovery refining outage growth manufacturing.
 miso deferral variance due deferral 2014 non-fuel miso charges offset deferral 2013 costs 2010 2012 transition


.
 brokerage receivables payables for financial instruments sold from brokers dealers customers.
 citi to risk loss pay deliver at prices.
 credit risk broker.
 citi margin collateral.
 margin levels monitored daily deposit additional collateral.
 citi may liquidate financial instruments.
 credit risk impacted by market volatility.
 credit limits monitored for customers brokers dealers.
 brokerage receivables payables.
 millions dollars december 31 2018 2017
 receivables from customers $ 14415 $ 19215
 brokers dealers 21035 19169
 receivables $ 35450 $ 38384
 payables to customers $ 40273 $ 38741
 brokers dealers 24298 22601
 $ 64571 $ 61342
brokerage payables 64571 61342 receivables payables citi broker-dealer aicpa accounting guide 940.


.
 investments.
 fixed maturity equity reflect unrealized appreciation depreciation temporary changes market value taxes income.
 fixed maturity equity securities reflect capital gains losses.
 records changes fair value fixed maturities cash flows settle losses adjustment liabilities.
 anticipates holding investments extended period cash flow payout liabilities.
 fixed maturities convertible bond securities foreign denominated fixed maturity securities settle loss adjustment reserves currency.
 carries equity securities fair value mutual fund investments fixed maturity securities.
 reflects changes value net capital gains losses.
 interest income dividend income equity securities net investment income.
 unrealized losses fixed maturities charged to net income capital losses.
 short-term investments stated at cost market value.
gains losses investments determined cost.
 non- publicly traded securities market prices determined pricing models.
 treasury yield curve issue type credit quality cash flow.
 publicly traded securities market value based market prices models.
 inactive company assumptions cash flows risk-adjusted discount rates fair value.
 retrospective adjustments values asset-backed securities.
 acquisition yield.
 book value.
 factors prepayment history.
 conditional prepayment rates maturities.
 invested assets limited partnerships trusts.
 accounted equity method accounting recorded monthly.
.
 uncollectible receivable balances.
 reserves for uncollectible reinsurance recoverable premium receivable balances.
 reserves presented table.
 2014
 reinsurance 29497 29905


transaction recognized net gain $ 1. 3 billion $. 2 billion 2016.
 $ 2. 5 billion lockheed martin common stock $ 1. 8 billion cash payment less book value is&gs business $ 3. billion 2016 adjustments $ 100 million.
 2017 additional gain $ 73 million post-closing adjustments tax adjustments net working capital.
 results&gs discontinued operations statements.
 divestiture shift.
 cash flows reclassified retained.
 results 2016 divestiture earnings discontinued operations 2016.
 net sales 3410
 cost sales -2953
 severance charges
 gross profit 438
 income
 operating profit
 earnings
 tax expense -147
 net gain divestiture discontinued 1205
 net earnings
 results different.
net earnings discontinued operations include costs attributable to is&gs business exclude corporate overhead costs.
 reclassified $ 82 million 2016 corporate overhead costs unallocated.
 retained assets obligations pension benefits former is&gs employees through divestiture.
 non-service net pension costs. reclassified from results pension adjustment.
 net pension costs were $ 54 million year december 31 2016.
 pension costs transferred to leidos discontinued operations.
 severance charges recorded at lockheed martin office.
 reclassified into excluded from.
 reclassified were $ 19 million in 2016.
 cash flows consolidated december 31 2016 not significant.