goodwill intangible assets acquisition allied not deductible tax.
 consolidated financial statements include operating results acquisition.
 merger completed january 1 2007.
 unaudited information illustrative not indicative results acquisition future results.
 ended december 31.
 2008 2007
 revenue $ 9362. $ 9244.
 income operations common stockholders.
 basic earnings per share.
 diluted earnings per share.
 information includes adjustments amortization intangible assets discounts fair value debt environmental self-insurance liabilities capping closure obligations amortization provision income taxes.
merger allied december 2008 settlement doj operations fifteen metropolitan areas los angeles san francisco denver atlanta lexington charlotte cleveland philadelphia greenville-spartanburg fort lubbock.
 settlement 87 commercial waste routes nine landfills ten transfer stations ancillary assets access landfill disposal capacity.
 classified assets liabilities divest accounts receivable property equipment goodwill accrued landfill environmental costs sale 31.
 assets adjusted lower carrying amounts values less costs asset impairment loss $ 6. 1 million consolidated statement income.
 assets recorded estimated fair values.
 february 2009 agreement divest assets waste connections.
assets agreement include six waste landfills collection operations three transfer stations markets los angeles denver houston lubbock greenville-spartanburg charlotte flint.
 transaction subject closing conditions regulatory approval.
 closing second quarter 2009.
 republic services.
 subsidiaries financial statements/28/2009


2013 management financial earnings $ 35. 4 million $ 1. 18 share 2004 $ 52. 2 million $ 1. 76 2003 $ 51. 3 million. 2002.
 cost manufacturing inefficiencies.
 flat stock offering.
.
 working capital $ 339. 8 million 2004 $ 305. 9 million $ 225. 1 million.
 $ 33. 9 million increase 2004. million receivable balances longer payment terms higher sales.
 $ 13. 5 million lower inventory $ 14. 3 million higher accounts payable balances.
 $ 80. 8 million increase 2003 46. 6 million higher manufacturing repositioning product introductions.
 receivable balances $ 21. 2 million higher price increases international sales.
 $ 13. million increase offset $ 9. 4 million restructuring expenses 2003.
working capital 2005.
 cash $ 67. million $ 29. 2003 $ 116. million 2002.
 lower earnings 2004 smaller investment capital improvement cash flow.
 higher investment 2003 difference expenditures $ 48. million 2004 2003 $ 2. million higher 2002.
 increase product launches water systems.
 projecting 2005 capital expenditures $ 55 million.
 facilities capital expenditures.
 $ 265 million five-year revolving credit facility eight banks.
 expires 10 2009 replaced $ 250 million facility expired 2004.
 facility backs commercial credit line borrowings.
 long-term debt.
 december 31 2004 borrowing capacity $ 153. million.
 operations.
 issued $ 50. million senior notes insurance companies 2003.
 2016 interest rate less 4. percent.
 commercial paper borrowing.
leverage debt capitalization 32 percent 2004 2003.
 contractual obligations december 31 2004.
 less than 1 year 1 - 3 - 5
 long-term debt $ 275. $ 8. $ 13. $ 138. $ 114.
 capital leases 6.
 operating leases 62. 14. 20. 11. 16.
 purchase obligations 177. 176.
 $ 521. $ 199. $ 35. $ 155. $ 130.


united parcel service.
 financial condition liquidity summary cash.
 2012
 net income $ 4372 $ 807 $ 3804
 non-cash activities 3318 7313 4578
 pension postretirement plan contributions -212 -1436
 income tax receivables payables -155 236
 working capital noncurrent assets liabilities -148
 -140 -119 -97
 cash $ 7304 $ 7216 $ 7073
 depreciation amortization losses transactions deferred income taxes uncollectible accounts pension benefit stock compensation charges non-cash.
 2011 2013.
 impacted lower contributions defined benefit pension postretirement plans offset charges income tax receivables payables.
 termination fee million 268.
 cash payments income taxes increased impacted tax deductions.
contributions company-sponsored pension plans varied minimum funding requirements.
 2013 required discretionary contributions pension plans.
 2012 $ 355 million contribution ups ibt pension plan.
 2011 $ 1. 2 billion contribution ups ibt pension plan satisfied 2011 requirements $ 440 million contributions 2011.
 remaining contributions due to international pension plans.
 postretirement medical benefit plans.
 minimum funding requirements ups ibt pension retirement plans.
 december 31  2013 worldwide holdings cash $ 4. 665 billion.
 45%-55% foreign subsidiaries.
.
 fluctuates.
 cash united states primary source domestic operating needs capital expenditures share repurchases dividend payments.
 cash subsidiaries subject to tax if not all international cash balances dividend.
subsidiaries reinvested no accrual.


financial derivatives manage interest rate market credit risk reduce effects income value cash flows.
 enter derivatives risk management.
 derivatives contracts little investment cash asset notional amount underlying.
 notional amount not exchanged not recorded balance sheet.
 payments.
 interest rate security price credit spread.
 residential commercial real estate loan commitments derivative instruments.
 table notional amounts gross fair values derivative assets liabilities gross derivatives.
 millions notional/contractamount assetfairvalue liabilityfairvalue
 derivatives hedging instruments $ 36197  $ 1189  $ 364  $ 29270  $ 1872  $ 152
 derivatives not 345059  3604  3570  337086  6696  6458
derivatives $ 381256 $ 4793 $ 3934 $ $ 8568 $ 6610
 included assets.
 liabilities.
 derivatives fair value.
 balances net master netting agreements cash collateral.
 rights setoff offsetting counterparty credit risk contingent features section.
 risk participations protection credit derivatives section.
 nonperformance risk credit risk estimated net fair value.
 note 1 accounting policies.
 derivatives hedging instruments interest rate risk.
 hedging fair value future cash flows net investment foreign subsidiary.
 accounting hedges allows gains losses recognized income statement hedged items affect earnings.
 pnc financial services group.
 2013 form 10-k 189


4% 2005 trucking services flat reduced expenses network inefficiencies.
 higher diesel fuel prices increased sales taxes higher state local taxes.
 contract expenses equipment maintenance services increased.
 storm hurricanes katrina rita higher expenses insurance settlements.
 reduction relocation expenses personnel omaha nebraska.
 non-operating items millions 2006 2005 2004 % change.
 income $ 118 $ 145 $ 88 65%
 interest expense -477 -504
 income taxes -919
 lower net gains non asset sales higher expenses rising interest rates sale receivables program reduction income 2006 offset higher rental income settlements disputes cash investment returns higher interest rates.
 income increased higher gains real estate sales offset higher expenses interest rates.
2006 2005 due declining debt $ 7. 1 billion. billion.
 higher interest rate 6. 7%. 2006. declining debt.
 taxes tax expense $ 509 million higher 2006.
 higher-tax income additional taxes $ 414 million $ 118 million one-time reduction 2005.
 effective tax rate 36. 4%. 28. 6%. 2006 2005.
 taxes greater 2005 higher pre-tax income offset reduction tax expense.
 quarterly report 10-q analyzed impact final settlements pre-1995 tax deferred tax assets liabilities.
 deferred tax assets liabilities income tax expense reduction $ 118 million


item 7.
 management 2019s analysis financial condition results operations financial statements notes results financial condition cash flows.
 2022 overview.
 business analysis financial highlights.
 accounting estimates.
 assumptions judgments financial results forecasts.
 results operations.
 analysis financial results 2013 to 2012 2022 liquidity capital resources.
 balance sheets cash flows financial condition potential sources liquidity.
 fair value financial instruments.
 methodologies valuation.
 contractual obligations off-balance-sheet arrangements.
 overview contractual obligations contingent liabilities commitments off-balance-sheet arrangements december 28 2013 expected payment schedule.
 sections forward-looking statements risks uncertainties.
 forward-looking statements.
statements future financial performance growth uncertain events forward-looking.
 based expectations affected by uncertainties risk factors factors item 1a form 10-k.
 results may differ reflect impact divestitures mergers acquisitions business combinations not completed february 14 2014.
 results operations.
 three months.
 net revenue $ 13834  $ 13483 $ 52708 53341 -633
 gross margin  $ 8571  $ 8414
 margin percentage 62. 0%. 0 %. 4%. 4 %. 59. 8%. 8 %. 1%. 1 %. 3
 operating income $ 3549  $ 3504 12291 $ 14638 -2347
 net income $ 2625  $ 2950 9620 11005 $ -1385
earnings common share $. 51. 58. 07. 89. 13. 24
 revenue 2013 down 1% 2012.
 lower sales growth market.
 internet cloud computing product portfolio increased platform volumes.
 higher factory start-up costs next-generation 14nm gross margin 2012.
 approved restructuring actions workforce reductions exit businesses facilities.
 restructuring asset impairment $ 240 million 2013.


oil sands 33 years experience petroleum engineering evaluations since 1986.
 member spe regional director 1998 2001 registered engineer alberta.
 third-party consultants estimates 80 percent reserves four.
.
 tolerance level 10 percent estimates accepted.
 re-examine data refine.
 until estimates 10 percent.
 changes estimates 2011 2009.
 no third-party audits 2010.
 sewell associates.
 certification 31 2010 reserves alba field equatorial guinea.
.
 senior members 50 years industry experience oil gas companies.
 lead master science mechanical engineering member spe.
 senior technical advisor bachelor science geophysics member society exploration geophysicists american association petroleum geologists european association geoscientists engineers.
 licensed texas.
 ryder scott company audits 2011 2009.
summary report audits 2011 annual report form 10-k.
 team lead ryder scott 20 years industry experience oil gas company.
 bachelor mechanical engineering member spe registered professional engineer texas.
 corporate reserves group performs reviews reserve estimates fields.
 december 31 2011 decrease 10 2010.
 table reserves 2011.
 405
 revisions estimates 15
 improved recovery
 purchases 91
 extensions additions 49
 -166
 end
 additions reserves 91 acreage acquisition eagle ford shale 26 woodford shale 10 shale 8 drilling.
 139 transferred jackpine upgrader expansion.
 costs 2011 2010 2009 $ 1107 million $ 1463 million $ 792.
undeveloped reserves behind-pipe zones large five years additional gas compression.
 395 mmboe undeveloped reserves 2011 34 percent volume five years.
 majority compression project equatorial guinea sanctioned 2004 completed 2016.
 performance exceeded expectations estimates dry gas increased 10 percent 2004 2010.
 production until 2014 2015.
 timing compression driven reservoir performance.


2013 earnings share millions.
 2017 2016
 shares basic computations 284. 287. 299.
 dilutive effect equity awards.
 diluted 286. 290. 6 303.
 compute basic diluted earnings net earnings average shares.
 includes dilutive effects vesting restricted stock units performance stock units stock options.
 no anti-dilutive equity awards years december 31 2018 2017 2016.
 2013 acquisition divestitures consolidation awe management increased ownership interest nuclear deterrent program 33% to 51% %.
 results 100% sales 51% operating profit.
 accounted investment equity method.
 recognized 33% 33 % earnings losses no sales.
august 24 2016 control recorded 33% % awe 2019s net earnings recognized 100% sales 51% operating profit.
 201cstep acquisition.
 assets liabilities fair value.
 recorded intangible assets $ 243 million $ 32 million net liabilities noncontrolling interests $ 107 million.
 amortized eight years.
 recognized non-cash net gain $ 104 million controlling interest $ 127 million pretax gain $ 23 million tax-related items.
 gain fair value 51% 51 % interest less investment deferred taxes.
 gain recorded consolidated statements earnings.
 fair value determined income.
 august 16 2016 former is&gs business reverse morris trust transaction.
transaction completed multi-step contributed is&gs business to abacus innovations corporation wholly owned subsidiary lockheed martin common stock abacus distributed to lockheed martin stockholders exchange offer.
 exchange martin stock for abacus stock.
 shares abacus exchanged for 9369694 shares lockheed martin.
 shares retired reducing common stock outstanding 3%.
 abacus merged with leidos surviving wholly-owned subsidiary leidos.
 each share abacus common stock converted into leidos common stock.
 shares leidos hold.
 exchange offer merger tax-free transactions except cash paid fractional shares.
 abacus borrowed $ 1. 84 billion one-time special cash payment $ 1. 80 billion to lockheed martin borrowing fees expenses.
cash payment debt dividends stock quarters.
 obligations abacus loan guaranteed leidos.


operated factory stores march 29 2014.
 americas 150
 50
 asia 35
 235
 australia china hong kong japan malaysia south korea taiwan.
 stores menswear womenswear childrenswear accessories home furnishings fragrances.
 2700 to 20000 square feet average 10400 outlet centers 40 states. canada puerto.
 accessories furnishings fragrances.
 1400 to 19700 average 7000 12 countries major outlet centers.
.
 1100 to 11800 square feet 6200 square feet china japan kong cities.
.
 suppliers licensing partners retail stores e-commerce secondary distribution channel excess out-of-season.
concession-based shop-within-shops inventory owned by us not department store until sale to end consumer.
 salespeople our employees not department store.
 of march 29  2014 503 concession-based shop-within-shops at 243 retail locations in asia australia new zealand europe.
 size ranges 140 to 7400 square feet.
 share cost building with department store partners.
 e-commerce websites retail segment sells products online through e-commerce channel north american e-commerce sites. club monaco site canada. lauren e sites in. belgium sites in asia. japan
 sites. offer access to ralph lauren supply apparel  accessories fragrance home products reinforce luxury image.
investing e-commerce extension omni-channel strategy retail business interdependent physical stores.
 club monaco e-commerce sites.
 canada access monaco womenswear menswear accessories online exclusives.


unregistered securities.
 repurchase equity securities table purchases equity october 1 to december 31 2016.
 average price plans programs maximum dollar value.
 average price dollar value
 october 1 - 31 2099169 $ 22. $ 218620420
 november 1 - 30 1454402 $ 22. 1453049 $ 185500851
 december 1 - 31 1269449 $. $ 155371301
 4823020 $ 22.
 shares common stock $ 0. 10 per share withheld employee stock compensation plans tax withholding obligations.
 repurchased no withheld shares october 2016 1353 november 10749 december 2016 total 12102 withheld shares.
average price per share fiscal quarter three-month period calculated tax withholding obligations paid shares acquired repurchase program note 5 withheld acquired repurchase program.
 february 2016 board authorized repurchase program $ 300. 0 million common stock.
 february 10 2017 board approved new repurchase program $ 300. 0 million common stock.
 new authorization addition 2016.
 no expiration date.


abiomed.
 subsidiaries financial statements 2014.
 commitments contingencies applies disclosure provisions.
 45 guarantor 2019s guarantees indebtedness fasb statements.
 5 57 107 rescission.
 34.
 agreements guarantee indemnification clauses.
 provisions expand sfas.
 guarantors guarantees.
 company guarantor.
 indemnifications indemnifies patent infringement.
 indemnifications limits.
 incurred costs defend lawsuits settle patent infringement claims.
.
 intellectual property indemnifications require disclosure.
 agreements underwriters contractors sites customers.
 indemnifies holds harmless indemnified party losses.
 provisions survive termination.
 maximum future payments unlimited.
 incurred costs defend lawsuits settle claims agreements.
 estimated fair value minimal.
company no liabilities for agreements as march 31 2008.
 study abiomed indemnify institutions losses personal injury.
 limits.
 incurred material costs indemnification.
 facilities leases leases facilities facility danvers massachusetts terms through 2010.
 lease may extended five years monthly rent charges current rental values.
 lease aachen location expires december 2012.
 total rent expense leases $ 2. 2 million  $ 1. 6 million $ 1. 3 million for fiscal years 2008 2007 2006.
 future minimum lease payments non leases as fiscal year ending operating leases.
 2009 2544
 2010 2220
 2011 1287
 2012 973
 2013 730
 2014
 lease $ 7754
company involved in legal administrative proceedings claims.
 litigation uncertainty management believes outcome proceedings not company 2019s financial position cash flow results.


.
 offices boston southborough woburn atlanta mexico city sao paulo.
 details.
 location function size interest
 boston corporate headquarters 30000
 southborough data center 13900
 woburn administration 34000
 atlanta services accounting 17900 4800
 mexico city headquarters 12300
 sao paulo brazil 3200
 30000 square feet consolidating 20000 square feet 2004 remaining 10000 square feet re-lease sub-lease.
 seven offices states.
 ontario marietta georgia crest hill worcester new hudson pleasant kent.
 smaller field offices.
 fee leasehold land buildings.
15000 towers 16% ( 16 % 84% leasehold interests long rights for third parties.
 wireless communications site 10000 square foot tract towers equipment shelters wires broadcast tower site up to twenty-acres.
 less than 2500 square feet for monopole self-supporting tower.
 land leases initial five years three renewal periods five years twenty to-five years.
 lenders have liens on towers leasehold interests tenant leases contracts management.
 owned leased facilities needs.
.
 in claims lawsuits.
 no matters impact on financial position results operations liquidity.
.
 submission to vote of security holders


company 2019s stock performance graph compares return common stock nasdaq stock market-united states biotechnology index.
 $ 100 invested july 31 2001 2019s common stock nasdaq biotechnology index reinvestment dividends.
 comparison 65 month return alexion. nasdaq composite index biotechnology index.
.
 alexion pharmaceuticals. 108. 102. 167. 130. 260. 483.
 composite. 128. 142. 164. 168. 187. 204.
 biotechnology. 149. 146. 176. 186. 183. 187.


hedges $ 41. 2 million $ 42. 1 million.
 fair value balance sheets october 29 2011 2010.
 june 30 2009 interest rate swap transactions. senior unsecured notes swapped $ 375 million fixed rate debt. floating interest rate debt july 1 2014.
 $ 375 million 5. 0%. annual interest two installments january july maturity $ 375 million annual three month libor plus 2. 05%. 42% interest four installments january april july october maturity.
 libor rate set quarterly three months.
 swaps fair value hedges.
 value inception zero changes reflected carrying value balance.
 adjusted equal offsetting.
 gain loss hedged fixed-rate borrowings benchmark interest rate risk gain loss swaps fiscal 2011 2010.
income classification loss on swaps gain note net income effect loss
 ----------------------------------
 other income $ -4614 ( 4614 ) $ 2014 $ 20692
 amounts earned owed under swap agreements accrued each reported in interest expense.
 no ineffectiveness.
 market risk instruments results from currency exchange rate interest rate movements risk assets liabilities hedged.
 counterparties major international financial institutions high credit ratings.
 significant risk nonperformance.
 derivative transactions subject to collateral security arrangements provisions dependent on credit ratings.
 contract amounts derivative instruments volume represent exposure to credit risk.
 amounts credit risk inability counterparties limited to obligations exceed obligations company.
 risk counterparty default significant.
company records value derivative instruments statements.
 changes value recognized earnings equity.
 cash flow hedges recorded oci reclassified earnings contract matures.
 not reported earnings.
 october 29 2011 2010 $ 375 million interest rate swap agreements fair value hedges $ 153. 7 million $ 139. 9 million cash flow hedges euros pounds analog devices.
 financial statements 2014


table summarizes changes company valuation allowance.
 balance january 1 2011 $ 23788
 increases 1525
 decreases -3734
 balance december 31 2011 $ 21579
 increases
 decreases
 balance december 31 2012 $ 19520
 increases
 decreases -5965
 balance december 31 2013 $ 13555
 discrete tax benefit $ 2979 entity re-organization net operating loss carryforwards valuation allowance.
 maintains noncontributory defined benefit pension plans.
 based years service.
 plans closed.
 2006.
 2001 accrued benefit frozen receive sum termination retirement.
 non-union. 25%. base pay contribution plan.
 multiemployer plan.
 minimum employee retirement income security act 1974.
 additional contributions avoid restrictions pension protection act 2006.
company increased contributions financial requirements 2019.
 pension plan assets invested investments equity bond funds fixed income securities interest contracts insurance real estate trusts.
 pension expense deferred subsidiaries recovery.
 unfunded pension plans retirement benefits.
 maintains postretirement benefit plans medical life insurance.
 closed union employees 2006.
 non-union 2002.
 postretirement benefit costs.
 assets invested equity bond fixed income securities.


-party sales increased 4% 2014 higher volumes acquisition firth rixson.
 aerospace transportation lower volumes industrial gas turbine.
 engineered products solutions segment increased $ 16 2015 net productivity inorganic growth higher volumes.
 offset unfavorable price/product mix higher costs foreign currency weaker euro.
 climbed $ 10 2014 productivity higher volumes costs demand commercial aerospace strong order backlog.
-party sales positive impact acquisitions rti tital.
 net productivity improvements pricing pressure.
 transportation construction solutions.
 third-party sales $ 1882 $ 2021 $
 alcoa downstream operations nonresidential building construction commercial transportation markets.
 integrated aluminum structural systems architectural extrusions forged aluminum commercial vehicle wheels.
 part industrial.
sales costs expenses transacted local currency.
 dollar euro brazilian real.
 third-party sales transportation construction solutions decreased 7% 2015 foreign currency movements weaker euro real lower volume building higher commercial transportation.
 third-party sales increased 4% 2014 2013 higher volume lower industrial.
 transportation construction solutions declined $ 14 2015 higher costs foreign currency movements weaker euro real unfavorable price/product mix.
 offset productivity improvements.
 improved $ 13 2014 higher volumes unfavorable product mix higher costs.
 non building construction market north america offset weakness.