pnc financial services group.
 2013 form 10-k 29 ii item 5 2013 market common equity stockholder matters issuer purchases equity securities common stock listed new york stock exchange traded symbol 201cpnc. close business february 15 2019 53986 shareholders.
 entitled receive dividends declared board directors funds.
 pay dividends until past periods capital paid.
 quarterly cash dividends.
 future dividends economic market conditions financial condition operating results contractual restrictions government regulations policies.
 dividend subject assessment capital adequacy planning federal reserve primary bank regulators.
 federal reserve dividends without approval.
information dividend restrictions loans dividends advances bank subsidiaries parent company see supervision regulation section item 1 risk factors liquidity capital management 7 10 borrowed funds 15 equity 18 regulatory matters consolidated financial statements item 8.
 compensation plans pnc equity securities december 31 2018 12.
 stock transfer agent registrar computershare trust company.
 250 royall street canton 800-982-7652. computershare. shareholders contact dividends shareholder services.
 common stock performance graph item 5.
.
.
 repurchases pnc common stock fourth quarter 2018 table total shares purchased average price paid share maximum number.
 october 1 2013 31 1204 $ 128. 43 1189 25663
 november 1 2013 30 1491 $ 133. 24172
december 2013 3458 $ 119.
 6153 $ 124.
 pnc common stock employee benefit plans forfeitures unvested stock payroll tax withholding.
 11 benefit 12 stock compensation plans pnc.
 march 11 2015 approved stock repurchase 100 million shares pnc stock effective april 1 2015.
 repurchases open market privately transactions market economic conditions regulatory capital considerations alternative credit ratings contractual regulatory limitations assessment capital.
 2018 share repurchase programs $ 2. 0 billion $ 300 million employee benefit plans.
 november 2018 $ 900 million additional share repurchases.
 aggregate repurchase price fourth quarter 2018 $. 8 billion.
 liquidity capital management risk 7 share repurchase programs july 1 2018 june 30 2019.
.


business divestitures impairments strive market position.
 returns divest assets reallocate resources markets.
 divestitures gains losses asset charges results.
 2018 net gain impairments $ 44. 9 million.
 2017 $ 27. 1 million.
 $ 6. 8 million transfer ownership landfill gas post-closure environmental liabilities.
 charge earnings $ 4. 6 million environmental costs.
 net gain divestiture $ 4. 7 million.
 restructuring eliminated positions consolidation back-office national accounts support.
 reduction administrative staffing closure office locations.
 incurred restructuring charges $ 26. 4 million severance employee termination benefits closure offices-cancelable redesign back-office functions upgrades software systems.
 paid $ 24. 7 million restructuring.
2016 realigned field support combining three regions two groups streamlining operational roles phoenix headquarters.
 second quarter 2016 redesign back-office consolidation 100 customer service locations three centers.
 upgrades continued 2018.
 2017 2016 incurred $ 17. million $ 40. 7 million restructuring charges severance employee termination benefits transition costs relocation benefits closure offices non-cancelable.
 savings reinvested customer programs initiatives.
 debt discounts environmental risk insurance liabilities.
 expense debt capital lease obligations $ 349. $ 324.
 non-cash.
 capitalized -6.
 interest expense $ 383. $ 361. 371.
 increased 2017 debt higher interest rates floating.


consume energy may incur capital operating expenditures climate environmental regulations.
 incur liabilities fines enforcement actions resource damages cleanup closure costs third-party claims property damage personal injury environmental laws.
 foreign corrupt practices act 1977 anti-bribery laws prohibit improper payments decisions.
 internal control policies may protect from criminal acts employees.
 violations lead penalties damage reputation.
 subject labor employment laws regulations increase operating costs reduce operational flexibility.
 changing privacy laws united states privacy rights obligations exposure fines penalties.
.
 no.
.
 north.
 south america europe asia australia.
 lease offices atlanta ga.
 existing production capacity adequate demand plants equipment good condition.
 corporate operating facilities as of september 30 2019.
facilities owned leased
 corrugated packaging 112 61 173
 consumer packaging 84 55 139
 corporate regional offices 2014
 196 126 322
 tables annual production capacity mill 30 2019 tons north charleston machine closure 2020.
 production rates vary hurricanes.
 mill system operating rates three years 94%.
 own mills.


american tower corporation subsidiaries financial statements 2014 atc mexico stock option plan maintained stock option plan atc mexico subsidiary terminated february 2007.
 options officers directors no option activity outstanding options december 31 2006 2005.
 atc south america stock option plan maintained stock option plan atc south america subsidiary terminated february 2007.
.
 december 31 2004 granted options purchase 6024 shares common stock officers employees.
 6. 7%. 1. 6%. interest.
 options issued exercise price $ 1349 per share.
 fair market value board independent financial advisor.
 fair value south plan options 2004 $ 79 per share black-scholes option pricing model.
 options.
 sell interest atc america.
 interest.
 options expired ten years grant.
october 2005.
 require purchase interest atc south america options stock option plan exercised.
 holders received 4428 shares 7. 8%. interest 1596 shares tax withholding obligations.
. maintains plan employees.
 purchased bi-annual 85% fair market value first.
 not 15% gross compensation not more $ 25000 year.
 offering periods june 1 november 30 december 1 may 31.
 2007 2006 2005 employees purchased 48886 53210 50119 shares average prices per share $ 33. 93 $ 24. 98 $ 15. 32 .
 fair value estimated black-scholes pricing model expense recognized.
 fair value shares 2007 2006 2005 $ 9. 09 $ 6. 79 $ 5. 15 .
 december 31 shares reserved future issuance.
assumptions pricing 31.
 2006
 risk free interest rates 4. 98%. 98 % 20145. 05% %. 01% 17% % % 30% 30 %
 risk-free interest. 02%. %. 08%. %. 72%. 72 %
 shares 6 months
 volatility stock 27. 5%. 5 %. 7%. 7 % 29. 6%. 6 %. %. 8 %
 volatility. 2%. 2 %. 6 %. 30%. 30 %
 dividends


in loan table purchased distressed loans credit deterioration acquisition citigroup.
 difference between expected cash flows investments recognized in income level yield.
 excluded from impaired loan information.
 decreases cash flows distressed loan require allowance retains level yield.
 increases cash flows recognized as reduction allowance as income increasing level yield.
 distressed loan accounted for under cost recovery method.
 carrying amount loan portfolio at december 31 2009 was $ 825 million net of allowance $ 95 million.
 changes in accretable yield millions loan receivable allowance.
 yield
 balance $ 92 $ 1510
 purchases
 disposals/payments -5
 reductions allowance -21
 increase expected cash flows
-7 2014
 balance december 31 2009 $ 27 920 95
 balance loan receivable $ 87 million purchased level-yield $ 242 million cost-recovery.
 fair value acquisition date.
 cash flows level-yield $ 101 million.
 balance $ million level $ 359 million cost-recovery.


shareowner return performance graph material future filing securities act 1933 exchange act 1934.
 five year comparison shareowners 2019 returns class b common stock standard 500 index dow jones transportation average.
 quarterly stock price reinvested dividends $ 100 invested december 31 2010 standard 500 index dow jones transportation average class b common stock.
/31/2010
 united parcel service. $ 100. $ 103. 107. 158. 171. 160.
 standard poor 500 index. 102. 118. 156. 178. $ 180.
 dow jones transportation average. 107. 151. $ 190. 158.


marketaxess holdings.
 financial statements 2014 redemption requirements senior preferred shares series b stock convertible common stock 3. 33-for-one initial public offering.
 dividends 8% per annum subordinate dividend payments senior shares.
 liquidation preference equal original issue price plus dividends.
.
 dividends forfeited conversion common.
 accrue dividends liquidation.
 december 31 2004 110000000 shares common stock 10000000 non-voting common stock.
 december 31 2003 120000000 450060 non-voting stock.
 entitles one vote per share.
 non-voting common stock convertible one-for-one common stock limitation conversion. 99%. outstanding shares common stock.
march 30 2004 board authorized november 1 2004 effectuated one-for-three reverse stock split non-voting initial public offering.
 references financial statements securities convertible per share amounts restated.
 2004 2003 1939734 1937141 shares employees.
 2001 awarded 64001 289581 shares $. 003 $ 3. 60  per share.
 three-year promissory notes eleven-year interest federal rate collateralized shares.
 promissory note due 2004 repaid january 15 2005.
 compensation expense excess fair value recorded vesting period.
 years restricted transferability vesting schedule.
 eleven-year promissory notes 289581 loans $ 1042 chief executive officer 2001.
 loans prior sarbanes-oxley act 2002.
 177973
 convertible preferred stock.
2019 deficit restricted subscribed


aes corporation financial statements 2014 2011 2010 proceeds $ 234 million.
 gain disposal $ 6 million net tax 31 2010.
 asia generation.
.
 november 28 2011 100% common stock dpl $ 3. 5 billion april 19 2011.
 dpl serves 500000 customers west central ohio dp&l energy resources.
 operates 3800 mw power generation energy services.
 acquisition strengthens.
 midwest.
 indianapolis power light company.
 funded purchase proceeds $ 1. 05 billion loan 2011 private offering $ 1. billion 2011 temporary borrowings $ 251 million proceeds private offerings $ 450 million. 50%. senior notes due 2016 $ 800 million. 25%. notes 2021 2011 dolphin subsidiary.
201cdolphin wholly-owned subsidiary aes merged dpl.
 dpl.
 enterprise value $ 4719
 assumed long-term debt -1255 1255
 cash dpl stockholders 3464
 stock awards
 cash $ 3483


december 31 2008 2007.
 securities assets collateral $ 27 billion $ 54 billion majority losses securities lending indemnifications.
 decrease with indemnifications.
 letters of credit company collateral $ 503 million $ 370 million 2008 2007.
 property losses guarantees indemnifications value not determined.
 citigroup evaluates guarantees internal external ratings.
 investment-grade ratings baa/bbb above below non-investment.
 ratings system.
 credits ratings not available.
 201d category.
 maximum future payments guarantees credit derivatives notional amount contracts par assets guaranteed.
 ratings december 31 2008.
 notional amount guarantees recoveries recourse provisions collateral.
 anticipated losses guarantees.
billions dollars future payments investment non-investment not rated
 --------------------------------------------------
 financial standby letters credit $ 49. $ 28. $ 16. $ 94.
 performance guarantees 5. 16.
 derivative instruments guarantees 2014 67.
 guarantees contractual cash flows 2014.
 loans recourse.
 securities lending indemnifications 47. 6.
 credit card merchant processing 56.
 custody indemnifications 18. 5 3. 1 21.
 $ 73. $ 36. $ 194. $ 304.
 credit derivatives bilateral contract buyer seller protection credit risk.
 payments predefined credit events.
 defined limited market failure pay indebtedness bankruptcy debt restructuring.
transactions emerging market credits include settlement triggers indebtedness risk repudiation payment moratorium.
 protection on portfolio credits asset-backed securities.
 seller protection losses for losses.
 company trades credit derivatives.
 purchases or writes protection on single portfolio credits.
 uses derivatives mitigate credit risk corporate loan portfolio proprietary trading positions facilitate client transactions.
 derivatives includes credit default swaps total return swaps credit options.
 credit default swap protection seller buyer for losses due credit event.
 no credit default guarantor no receives fee.
 if credit event occurs.
 total return swap transfers economic performance reference asset cash flows capital appreciation.
 protection buyer receives interest depreciation from seller receives cash flows appreciation.
beneficiary obligated payment floating interest rate return swap agreement depreciation reference asset cash flows underlying.
 return swap default asset agreement protection seller buyer.


energy resources.
 cash flow increased $ 232. 1 million 2004 due income tax refunds $ 70. 6 million $ 230. 9 million 2003.
 offset money pool activity.
 domestic utility companies energy filed tax accounting method.
 simplified allocation overhead electricity.
 $ 430 million deduction 2003 tax.
 no cash benefit.
 2004 $ 144 million cash tax benefit.
.
 cash flow decreased $ 124. 8 million 2003 due increase federal income taxes $ 74. 0 million 2003 cessation entergy mississippi ggart.
 collected $ 21. 7 million 2003 $ 40. 8 million 2002 power.
 cessation ggart july 1 2003.
 money pool.
 receivables december 31.
 2004 2003

 $ 61592 $ 19064 7046 13853
 money pool used $ 42. 5 million energy cash 2004 $ 12. million 2003 $ 6. 8 million 2002.
 note 4 utility companies statements.
 cash unchanged 2004 construction expenditures offset maturity $ 6. 5 million investments 2003.
 increase $ 16. 2 million net cash maturity $ 22. 4 million investments decommissioning trust contributions $ 8. 2 million investments $ 6. 5 million 2003.
 decrease construction expenditures $ 22. 1 million power uprate project.


republic services.
 financial statements 2014 2008 board directors amended.
 2006 incentive stock plan allied waste industries.
.
 stockholders approved may 2006.
 amended restated december 2008 republic services.
 new sponsor references. awards acquisition.
 non-qualified stock options incentive stock options restricted stock phantom stock bonuses appreciation rights performance awards dividend equivalents cash awards awards.
 granted 2008 fully vested nonforfeitable acquisition.
 after employees consultants allied waste industries.
 subsidiaries not employed.
.
 december 31  2012 15. 5 million shares common stock reserved future grants.
 binomial option-pricing model.
 compensation expense service period retirement date.
 volatility based average recent year historical rolling average option.
 risk-free interest rate federal reserve rates bonds.
 historical data future option exercises. expected life.
 valuation.
 weighted-average values stock options 2012 2011 2010 $ 4. 77 5. 35 $ 5. 28 per option assumptions.
 volatility 27. 8%. 8 %. 3% 3 %. 6%. 6 %
 risk-free interest rate. 8%. 8 %. 7% 7 %. 4%. 4 %
 dividend yield. 2%. 2 %. 7% 7 %. 9% 9 %
 life.
 life.


interest expense decreased $ 129 million. 2014 $ 63 million decrease special charges refinancing $ 65 million less interest expense.
 $ 29 million non-cash interest bankruptcy settlement obligations.
 $ 48 million post-petition interest unsecured obligations.
 $ 44 million debt extinguishment costs indebtedness non-cash write offs unamortized debt.
 2013 refinancing early extinguishment. $ 65 million less interest expense.
 $ 153 million foreign currency losses $ 92 million early debt extinguishment charges $ 48 million.
 foreign currency losses $ 55 million early debt extinguishment charges $ 29 million.
 increased $ 69 million. due special charges early debt extinguishment foreign currency losses strengthening.
 american.
recorded $ 43 million charge venezuelan foreign currency losses 2014.
 part ii item 7a.
 risk venezuelan bolivars.
 american 2019s nonoperating items $ 48 million 2014 extinguishment. senior secured notes indebtedness.
 revenues expenses fees gains losses provisions chapter 11.
 table summarizes reorganization items statement 31 2013.
 labor-related claim $ 1733
 aircraft facility financing renegotiations rejections 320
 fair value conversion discount
 professional fees
 reorganization items $ 2640
 employees contributions reorganization reductions pay benefits employee deemed claim equity reorganized entity.
 cost savings.
 total value $ 1. 7 billion.
amounts include allowed estimated rejection modification financings aircraft entry orders unsecured facility agreements special facility revenue bonds.
 debtors recorded estimated claim rejection modification motion filed


long-term borrowings carrying fair value estimated market prices december 31 2013 maturity amount unamortized discount carrying value fair value.
 3. 50%. 50 %
 1. 375%. 375 % 2015
 6. 25%. 25 %
.
 4. 25%. 25 % 2021
 3. 375%. 375 % 2022
 long-term borrowings
 december 31 2012 carrying value $ 5. 687 billion fair value $ 6. 275 billion market prices december 2012.
.
 issued $ 1. 5 billion unsecured unsubordinated obligations.
 senior debt securities $ 750 million 1. 375% 1. 375 % 2015 $ 750 million 3. 375%. 375 % 2022.
proceeds repurchase blackrock 2019s common stock series b barclays purposes.
 interest 2015 2022 notes $ 10 million $ 25 million year payable-annually june 1 december 1 commenced 2012.
 2015 2022 redeemed maturity redemption price.
 par value present value future payments early redemption.
 2015 2022 notes issued discount $ 5 million amortized term.
 $ 7 million debt issuance costs amortized.
 $ 5 million unamortized debt costs.
.
 issued $ 1. 5 billion unsecured obligations.
 senior debt securities $ 750 million 4. 25%. notes 2021 $ 750 million floating rate notes repaid may 2013 maturity.
 proceeds repurchase blackrock 2019s series merrill lynch.
.
 interest.25 % notes due 2021 payable semi-annually may november 24 commenced 2011 $ 32 million per year.
 notes redeemed maturity redemption price.
 notes issued discount $ 4 million amortized term.
 incurred $ 7 million debt issuance costs $ 1. 5 billion amortized.
 2013 $ 3 million unamortized debt.
 $ 750 million interest rate swap future cash flows rate 1.
 second quarter 2013 swap matured 2013 notes repaid.
 2012 2014 2019.
 2009 issued $ 2. 5 billion unsecured unsubordinated obligations.
 senior debt securities $. billion. 25%. notes repaid december 2012. 50%. 2014 2019.
 proceeds repay borrowings program acquisition barclays global investors corporate purposes.
2014 2019 $ 35 million $ 50 million year payable semi-annually june december 10.
 redeemed maturity redemption price.
 issued discount $ 5 million amortized terms.
 incurred $ 13 million debt issuance costs amortized.
 31 2013 $ 4 million unamortized debt.
.
 issued $ 700 million. 25%. unsecured notes 15 2017.
 net proceeds acquisition remainder corporate purposes.
 payable semi-annually march september 15 $ 44 million per year.
 2017 notes redeemed


abiomed.
 subsidiaries financial statements 2014 applies disclosure provisions.
 45 guarantor requirements guarantees indebtedness fasb statements.
 5 57 107 rescission.
 34.
 agreements guarantee indemnification clauses.
 disclosure provisions expand.
 contingencies guarantors disclose guarantees.
 company guarantor.
 product warranties accrues estimated warranty costs sales.
 products regulation quality standards.
 results cost exceeds estimated warranty.
 patent indemnifications indemnifies patent infringement.
 limits.
 incurred costs defend lawsuits patent infringement claims.
.
 intellectual property indemnifications disclosure.
 leases facilities facility danvers massachusetts terms 2010.
 lease extended five years monthly rent charges rental values.
company 2019s lease aachen expires august 2008 option four years.
 december 2005 closed office facility netherlands $ 58000 remaining lease term.
 rent expense leases $ 821000 $ 824000 $ 1262000 fiscal years 2004 2005 2006.
 future minimum lease payments non-cancelable leases.
 2007 1703
 2008 1371
 2009 1035
 2010 710
 future minimum lease payments $ 4819
 company involved legal administrative proceedings claims.
 outcome financial position cash flow results.
 may 15 2006 richard.
 filed demand arbitration boston american arbitration association


undeveloped reserves 31 2013 627 reported increase 56 2012.
 table shows 2013.
 571
 revisions estimates 4
 improved recovery 7
 purchases 16
 extensions additions 142
 dispositions -4
 transfer -109
 end year
 additions reserves 72 eagle ford 49 bakken drilling.
 transfers 57 eagle ford 18 bakken 7 oklahoma basins.
 costs 2013 2012 2011 $ 2536 million $ 1995 million $ 1107 million.
 59 mmboe booked technology.
 statistical analysis decline curve analysis rate transient analysis reservoir simulation volumetric analysis.
 reservoir continuity certainty criteria booking reserves.
 projects five compression.
 627 reserves 2013 24 percent volume projects more five years.
 majority related compression project.
sanctioned by board 2004.
 timing installation compression driven by reservoir performance maximum production.
 exceeded expectations.
 dry gas increased 10 percent 2004 2010.
 compression project approval.
 government completion mid-2016.
 infill well approved 2013 drilled late 2014.
 north gialo libyan sahara desert booked 2010.
 five years executed by operator continuous drilling program design liquid handling gas recycling facilities.
 execution five years.
 civil unrest 2011 labor strikes 2013 extended duration.
 no reserves five years.
 future development costs 2018 $ 2894 million $ 2567 million $ 2020 million $ 1452 million $ 575 million.
timing future projects costs undeveloped hydrocarbon natural gas synthetic crude oil reserves based assumptions commodity prices data economic recoverability technology drilling success conditions cash flow production experience considerations.
 recoveries timing costs.


size sq.
. segment majority owned or leased.
 sq. orleased
 hamilton new zealand
 calgary alberta canada
 kwinana australia
 revesby australia
 yangsan
 cisterna italy
 rovigo italy
 cuautitlan mexico
 barueri brazil
 mullingar ireland
 malta
 manufacturing facilities adequate production needs.
 invest operations add capacity.
 distribution centers.
 operate distribution centers leased utilize third party logistics providers.
 2016 corporate headquarters three buildings downtown.
 minnesota.
 main 19-story building leased through june 30 2018.
 second leased through 2019.
 vacate current leased buildings 2018.
 third building owned.
ecolab acquired 17-story tower travelers indemnity company downtown.
 minnesota 2015.
 corporate headquarters 2017.
 90 acre campus eagan minnesota future growth.
 houses research development center data center training facilities administrative functions.
 business presence naperville illinois administrative offices research center.
 acquired interest trust 2015.
 energy segment maintains administrative research facilities sugar land texas fresno texas.
 construction 133000 square-foot headquarters completed 2016 renovation 45000 square-foot research facilities.
 facilities leiden netherlands campinas brazil pune india monheim germany singapore shanghai zurich switzerland.
 small leased sales offices united states other.
.
 legal proceedings.
.proceedings part i item 1 regulatory incorporated.
.
 mine safety disclosures.
.


part ii item 5 market 2019s equity stockholder matters issuer purchases securities motorola 2019s common stock listed new york chicago stock exchanges.
 stockholders january 31 2008 79907.
 securities equity compensation plans compensation plan motorola 2019s proxy statement 2008 annual meeting.
 note 16 201cquarterly financial data consolidated financial statements 8 financial statements data.
 table acquisitions common stock quarter december 31 2007.
 issuer purchases equity securities number shares purchased average price paid per share plans maximum value.
 average price paid share maximum value
 9/30/07 to 10/26/07 2972951 $ 18. 84 2964225 $ 4267375081
 10/27/07 to 11/23/07 5709917 $ 17.5706600 $ 4169061854
 11/24/07 12/31/07 25064045. 3767061887
 33746913 $. 33734870
 2006 stock repurchase program equity compensation plans 12043 shares motorola common stock tax vesting restricted stock.
 july 24 2006 march 21 2007 authorized repurchase $ 7. 5 billion common stock june 2009 market conditions.
 average price execution price excluding commissions.


company receives foreign tax credit ) against.
 tax liability for foreign taxes including separate account assets.
 ftc estimated recent return adjusted for allocation investments international equity markets.
 actual ftc vary.
 company recorded benefits $ 16  $ 11 $ 17 ftc 2008 2007 2006.
 tax returns $ 4 $ 0 $ 7 2008 2007 2006.
 unrecognized tax benefits increased $ 15 2008 2007 2008 total $ 91 december 31 2008.
 effective tax rate.
 per past three years note 2 financial statements.
 projections forward-looking information 201coutlook 201d sections.
 statements future financial performance.
 estimates based private securities litigation reform act 1995 subject to precautionary statements md&a.
results likely differ from forecast company depending on factors 201coutlook 201d section item 1a.
 2008 company negatively impacted by global financial markets economic conditions.
 rating downgrades.
 1a.
 management market retirement products expand retirement.
 boom generation saving retirement uncertainty social security system increases average life expectancy.
 industry lower variable annuity sales market turbulence uncertainty.
 financial system.
 increasing claim costs cost volatility hedging programs capital living benefit guarantees.
 companies price guaranteed living benefits guarantees.
 2009 company intends adjust pricing reduce risks variable annuity product explore risk limiting techniques increased hedging.
 competitor reaction difficult may result decline retail market share.
 declines equity markets increased volatility impact cost effectiveness gmwb hedging program.
equity market volatility losses hedging program.
 equity risk management.
 volatile equity markets policyholders allocate variable assets fixed options deposits.
 fourth quarter 2008 increase fixed.
 earnings per share $ -8. 99 $ 9. 32
 diluted earnings losses $ -8. $ 9. 24 $ 8.
 common shares 306. 316. 308.
 potential 306. 319. 315.
 306. 319. 315


consolidated financial statements 2014commitments contingencies provide renewal options 3 to 7 years.
 leases retail space 5 to 20 years majority 10 years multi-year renewal options.
 september 2007 lease payments noncancelable $ 1. 4 billion $ 1. 1 billion leases retail space.
 rent expense $ 151 million $ 138 million $ 140 million 2007 2006 2005.
 lease payments noncancelable year years.
 2008 155
 2009 172
 2010
 2011
 2012
 lease payments $ 1425
 basic parts labor warranty hardware products.
 one year purchase.
 90-day warranty service parts.
 estimated cost.
 installed base claim rates cost-per-claim product failures.
 warranty liabilities adjusts amounts experience future estimates.
products subscription accounting.
 company recognizes warranty expense incurred.
 provides updates applications software compliance.
 estimated cost updates warranty costs software revenue.
 factors units delivered updates expected historical future cost resources.


inc.
 statements amortization expense intangible assets 75 million 2017 77 million 2016 93 million 2015.
 amortization expense five years.
 2018
 2019
 2020
 2021
 2022


last-in first-out method continental.
 valued.
 approximates replacement cost.
 lower.
.
 december 31.
 finished products $ 988. $ 1211.
 process 2628. 2697
 raw materials supplies 506. 488
 replacement cost 4122. 4397.
 lifo cost.
 4111. 4458.
 inventories valued lifo method $ 1. 57 billion $ 1. 56 billion total inventories december 31 2018 2017.
 credit risk trade receivables interest- bearing investments.
 wholesale distributors life-science products receivables collateral not required.
 mitigate risk credit-review procedures insurance.
 portion cash major financial institutions.
 monitor expect meet obligations.
 investments corporate debt securities.
 credit exposure institution.
exposed to credit losses nonperformance counterparties risk-management expect high credit ratings.
 consider liquid investments three months or less cash equivalents.
 cost approximates fair value.
 equity investments accounted three methods investments accounted equity method earnings losses reported other-net expense.
 measure at cost impairment.
 change value recorded.
 public equity investments measured carried fair value.
.
 review equity investments for impairment.
 derivative activities initiated corporate risk-management policies offset losses gains assets liabilities transactions.
 reviews correlation effectiveness derivatives quarterly.


administrative expense.
 eliminated 749 positions.
 incurred $ 54. million net expenses cash.
 recorded $. 4 million restructuring charges reduced $. million 2017 $ 54. million 2016.
.
 2015 project century north american manufacturing network capacity reductions.
 broadened supply chain.
 approved restructuring plan manufacturing facilities australia berwick united kingdom new zealand.
 287 positions incurred $ 31. 8 million net expenses $ 12 million cash.
 $ 1. million charges 2017 $ 30. million 2016
.
 restructuring plan west chicago illinois plant.
 484 positions incurred $ 109. million net expenses $ 21 million cash.
 $ 6. million 2018 $ 23. million 2017 $ 79. million 2016.
.
 restructuring plan close joplin missouri plant.
action affected 125 positions incurred $ 8. million expenses less than $ 1 million.
 recorded. 4 million restructuring charges 2018. 3 2017 6. 2016.
 completed.
 paid cash restructuring $ 53. 6 million 2018 107. 8 million 2017 122. 6 million 2016.
 incur $ 130 million project-related costs recorded.
 $ 11. 3 million 2018 43. 9 million 2017 57. 5 million.
 $ 10. 9 million 2018 46. 9 million 2017 54. 5 million 2016.
 completed 2019.
 charges costs consolidated statements earnings.
 sales $ 14. 41.
.
.
-related costs $ 11.


p r t 2 0 0 4 gas transportation costs demand products oil natural gas ngls.
 2019s revenues to sales processing transportation commodities.
 financial results influenced by price volatility.
 estimates for future production market demand prices profitable production.
 assurance.
 canadian production subject to government royalties.
 price fluctuations affect production.
 international production governed by payout agreements.
 attained production reserves.
 estimates future processing transport demand.
 no assurance stability.
 production transportation processing marketing oil gas complex.
 mechanical failure human error meteorological events.
 forward-looking statements demand conditions for 2019s oil natural gas ngls 2005 similar to 2004.
 dollar amounts expressed in.
 dollars.
 canadian operations converted to.
projected 2005 exchange rate $ 0.
 to $ 1. 00 canadian.
 2005 exchange rate may vary estimate.
 variations estimates.
 completed major property acquisitions dispositions opportunity driven.
 data excludes financial operating effects potential property acquisitions divestitures 201cproperty acquisitions divestitures 2005.
 timing results difficult predict may vary.
 areas 2005 estimates production price differentials capital expenditures for areas united states onshore offshore canada international.
 2005 operating estimates oil gas production operating costs based on devon properties sale.
 estimates exclude potential sale properties.
 gas production individual estimates 2005.
 2005 production total 217.
 92% from reserves at december 31 2004.
 2005 total 60 mmbbls.
95% reserves december 31 2004.
 expected production area.
 united states onshore
 offshore
 canada
 international
 oil prices 2013 devon fixed price 2005 oil production.
 table fixed-price production area.
 prices adjusted transportation costs devon.


i o n 2 2 0 0 2 consolidated financial statements company recognizes income long-term construction contracts general percentage of completion method.
 profits recorded estimates percentage completion progress results.
 estimated earnings accrued estimates completion contract expenditures.
 property sales gains from depreciated property recognized financial accounting standards.
 included in earnings sales land depreciable property dispositions net impairment adjustment operations.
 gains losses from sale property sale recognized sfas 66 included in construction management development activity income.
 net income per common share computed income by weighted average number common shares period.
 diluted net income income minority interest earnings average potential common shares.
table reconciles basic diluted net income per share series d stock series g limited partner units anti-dilutive 31 2002 2001 2000 no conversion to common shares in dilutive potential common shares.
 2002 company redeemed series g units $ 35. 0 million.
 joint venture partner option convert ownership to common shares.
 option earnings per share dilutive december 31 2001 conversion to common shares included in dilutive potential common shares.
 company real estate investment trust.
 meet requirements 90% taxable income to stockholders.
 reit status.
 entitled tax deduction for dividends.
 subject federal taxes equal taxable income stockholders.
 reit subject federal taxes income.
 qualify four subsequent years.
 reit qualification reduces state local taxes paid.
company 2019s financial statements include subsidiaries dividends subject taxes.
 federal excise taxes transactions.
 2001
 net income common shares $ 161272 229967 212958
 venture income 2014
 minority interest earnings 18568 32463 32071
 diluted net income $ 179840 $ 265853 245029
 133981 129660 126836
 15442 18301 19070
 2092
 dilutive shares stock-based compensation plans 1416 1657 1535
 150839 151710


commenced by california attorney general providing customers transparency pricing product alternatives foreign exchange requirements.
 disclosures pricing electing other foreign exchange options revenue profitability.
 to claims financial loss reputational damage regulatory scrutiny transacting purchases redemptions unregistered cash collateral pools net asset value $ 1. 00 per unit.
 portion cash collateral invested in pools manage.
 interests held by unaffiliated customers registered unregistered investment funds.
 pools registered under required maintain constant net asset value $ 1. 00 per unit.
 remainder not.
 maintain constant net asset value $ 1. 00 per unit.
 securities lending operations direct lending program for third-party investment managers investment funds managed by ssga.
table shows net asset values unregistered direct lending pools ssga lending funds constant net asset value $ 1. 00 per billions december 2009 2008 2007.
 2009 2008 2007
 direct lending pools $ 85 $ 150
 ssga lending funds 24
 ssga lending funds until october 2008.
 balances december 31 2007 included excluded.


act 1933 section 1145 united states code.
 no underwriters engaged.
 three months december 31 2008 issued 7173456 shares common stock $ 147. 1 million 3.%. notes.
 holders. receive 48. 7805 shares common stock $ 1000 converted.
 paid $ 3. 7 million accrued unpaid interest discounted future interest payments.
 shares issued exemption registration section 3 9 securities act 1933.
 no underwriters engaged.
 months december 31 2008 repurchased 2784221 shares common stock $ 79. 4 million fees announced stock repurchase program total number shares purchased average price paid share dollar value.
 average price paid dollar value
 october 2008 1379180 $ 30. $ 1005.
 november 2008 1315800 $ 26. 51 970.
 december 2008 89241 $ 27. $ 967.
 fourth quarter 2784221 $ 28. 53 $ 967.
 repurchases $ 1. 5 billion stock repurchase program february 2008.
 management purchase shares prevailing prices securities laws requirements subject market conditions.
 trading plan rule 10b5-1 exchange act.
 program.
 fourth quarter 2008 reduced purchases common stock downturn disruptions financial credit markets.
 december 31 2008 repurchased 28000 shares $ 0. 8 million  commissions fees.
 market conditions.


fortron industries llc.
 leading global producer pps ae brand used automotive applications heat chemical resistance.
 facility wilmington north carolina.
 combines sales marketing distribution compounding manufacturing expertise celanese pps polymer technology kureha america.
 cellulose derivatives ventures.
 fund operations operating cash flow pay dividends based performance.
 2014 2013 2012 received cash dividends $ 115 million $ 92 million $ 83 million.
 ownership interest ventures exceeds 20% cost method accounting local government investment inability financial information accounting principles.
.
 indirect ownership interests german infraserv groups industrial parks support.
 ownership equity investments december 31 2014.
.
.
.
development businesses innovation-oriented optimize production technologies products applications.
 research development expense $ 86 million $ 85 million $ 104 million years 2014 2013 2012.
 sufficient strategic initiatives.
 confidential information patents trademarks copyrights preserve investment research development manufacturing marketing.
 patents processes equipment products uses.
 register trademarks brand names.
.
 new substances formulations unique applications production processes.
 business regions intellectual property protection limited.
.
 security policies.
 data encryption controls disclosure trade secrets employee awareness training.
 trademarks.
aoplus ateva avicor britecoat celanese celcon celfx 2122 celvolit clarifoil duroset ecovae factor fortron gur hostaform impet mowilith nutrinova qorus 2122 riteflex sunett tcx 2122 thermx tufcor vantage 2122 vectra vinamul vitaldose zenite products services trademarks marks.
.
 fortron ae trademark fortron industries.


primary beneficiary deconsolidated entities.
 31 2010 held 36% 36 % interest juniperus equity.
 potential loss limited investment $ 73 million juniperus recorded.
 provided financing juniperus required.
 juniperus jchl assets liabilities $ 121 million $ 22 million december 31 2008.
 recognized $ 36 million pretax income juniperus jchl.
 $ 16 million after-tax income-controlling.
 owned 85% 85 % ) equity globe re reinsurance coverage property catastrophe contracts 2009.
 consolidated globe re primary beneficiary.
 repaid $ 100 million short-term debt equity investment 2009.
 recognized $ 2 million after-tax income 2009.
 liquidated third quarter 2009.
 clients risk solutions advisor insurance reinsurance broker.
2022 hr solutions partners complex benefits talent financial challenges business performance designing human capital retirement investment health care compensation talent management strategies.
 risk solutions.
 years december 31, 2010 2009 2008
 revenue $ 6423 $ 6305 $ 6197
 operating income 1194
 operating margin 18. 6%. 3%. 7%.
 demand property casualty insurance rises economic activity increases falls commissions fees brokerage.
 employment corporate revenue asset values.
.
 premium rates commission revenues competition underwriting capacity.
 changes premiums insurance brokerage industry


segment earnings $ 709 million 2007 compared $ 787 million 2006.
 decrease due to gross margin lower sales iden infrastructure equipment competitive pricing gsm infrastructure equipment increased sales digital entertainment devices reversal reorganization.
 sg&a expenses increased acquired businesses offset cost-reduction.
 r&d expenditures decreased investment digital entertainment wimax.
 gross margin sg&a expenses r&d expenditures operating margin decreased.
 sales top five customers 43% net sales.
 backlog $ 2. 6 billion december 31 2007 $ 3. 2 billion 2006.
 demand depends capital spending broadband operators communications systems services.
 shipping digital set-tops separable security requirement.
.
 cable service providers accelerated purchases set-tops.
2007 digital video customers increased purchases products due to demand digital entertainment devices hd/dvr devices.
 acquisitions netopia. broadband equipment provider tut systems. edge routing video encoders modulus video. mpeg-4 coding systems terayon communication systems. real-time digital video networking applications leapstone systems. provider intelligent multimedia content management applications.
 acquisitions enhance end-to-end systems advanced video voice data services.
 december 2007 motorola ecc to emerson for $ 346 million.
 enterprise mobility solutions segment designs manufactures sells installs services analog digital two-way radio voice data communications products systems wireless broadband public safety agencies retail energy transportation manufacturing healthcare commercial customers.
2008 segment 2019s net sales 27% 27 % company consolidated net sales compared 21% 21 % 2007 13% 13 % 2006.
 31 change.
 net sales $ 8093 $ 7729 $ 5400 5% 5 % 43% 43 %
 operating earnings 1496 23% 23 % %
 20142008 2019s net sales increased 5% 5 % $ 8. 1 billion $ 7. 7 billion 2007.
 increase 8% 8 % increase government public safety market offset 2% 2 % decrease commercial enterprise market.
 increase driven increased net sales outside north america sales vertex standard co. 2008 offset lower net sales north america.
 net sales higher emea asia latin america lower north america.
 financial


worldview-3 contracts james webb space telescope joint polar satellite system global precipitation-microwave imager weather forecasting antennas sensors joint strike fighter.
 earnings 2010 increased $ 8. 4 million fixed-price program performance higher sales offset program reductions.
 earnings down $ 14. 8 million programs reduced activity.
 shares qinetiq $ 10. 5 million $ 1. 8 million.
 services australian department defense.
 pretax gain $ 7. 1 million.
.
 96 percent sales 2010 94 percent 2009 91 percent 2008.
 backlog aerospace $ 989 million $ 518 million.
 increase worldview-3 joint polar satellite system contracts.
.
 proceeds $ 280 million.
 $ 15 million contingent consideration preliminary adjustments $ 18. 5 million quarter.
plastics packaging business five.
 plants polyethylene terephthalate polypropylene bottles customer contracts assets.
 1000 sales $ 635 million 2009.
 manufacturing plants ames iowa batavia illinois bellevue ohio california delran new jersey.
 research development operations broomfield westminster colorado.
 table operating results discontinued operations december 31.
 2010 2009 2008
 net sales $ 318. $ 634. $ 735.
 earnings operations $ 3. $ 19. $ 18.
 gain sale business.
 loss asset impairment.
 consolidation.
 gain.
 tax benefit.
 discontinued operations net tax -74. 4
 net charges plastics packaging manufacturing plants.
 note 2 financial statements.
charges consolidation activities estimates management from information.
 outcomes vary differences reflected in earnings consolidation gains losses.
 details activities costs note 5 financial statements.


12.
 security ownership owners management stockholder matters.
 information 201csecurity ownership 2017 proxy statement incorporated form 10-k.
 equity compensation plan information table equity compensation plans issuance shares lockheed martin common stock employees directors.
 december 31 2016.
 category securities issued options warrants rights price future issuance approved 5802673 $ 85. 82 6216471 plans not approved 1082347 2014 2481032.
 securities options warrants rights-average price securities future issuance
 plans approved 5802673 $. 6216471
 not approved 1082347 2481032
 6885020 $. 8697503
column includes december 31 2016 1747151 shares granted restricted stock units 936308 shares earned performance stock units 2967046 shares options 2011 23346 shares 128822 stock units payable stock cash 2009 directors equity plan.
 column c 5751655 shares future issuance 2011 ipa plan options stock appreciation rights restricted stock awards rsus psus 464816 shares directors equity plan stock options stock units.
 516653 236654 shares issuable grants january 26 2017 rsus psus earned payable three-year performance.
 average price shares rsus psus.
 shares represent annual incentive bonuses performance payments earned deferred.
 deferred amounts payable compensation plan.
 credited as phantom stock units closing price.
equal to dividend credited as stock units.
 termination employment shares stock equal to units to employee dmicp account distributed to.
 no discount value transfer on stock.
 distributions from newly issued or purchased open market.
 distributions from separate trust dilute common shares.
 not considered in weighted average exercise price.
 dmicp shares outstanding included in dilution calculation.
 item 13.
 relationships related transactions director independence.
 under 201ccorporate governance 2013 policy.
 item 14.
 accountant fees services.
 under 201cproposal 2013 independent auditors.


2014 annual report performance graph five-year period june 30 2014 market performance common stock s & p 500 index peer companies 5 year return jack henry associates. s&p 500 index peer group line graph values.
 2013
. 148. 173. 240. 307.
. 150. 176. 220. 275.
. 159. 171. 198. 273.
. 149. 157. 190. 236.
 comparison assumes $ 100 invested june 30 2009 reinvestments dividends.
 returns calculated market capitalization peer group members.
 peer companies computer software hardware services financial institutions.
 2014 changed peer group.
 aci worldwide. bottomline. broadridge financial cardtronics. convergys. corelogic. dst. euronet.isaac. fidelity information services. global payments. heartland payment. micros. moneygram. ss&c technologies. total systems. tyler. verifone.
 aci. bottomline. cerner. dst systems. euronet. isaac. fidelity information services. investments telecommunications systems. tyler technologies.


unrecognized tax benefit permanent differences state tax matters.
 liability uncertain tax positions increase or decrease next twelve months tax 2019 exams expiration statutes limitations.
 liability decrease $ 5 million twelve months.
 consolidated income tax returns pnc financial services group.
 subsidiaries 2003 audited revenue resolved disputed matters.
 examining 2004 2006 returns.
.
 national city corporation agreement resolution disputed matters.
.
 examining 2005 through 2007 returns 2008 return audited.
 new york jersey maryland city subject state local income tax acquisition.
 new york closing 2002 to 2004 audit auditing 2005 2006.
 new york city auditing 2004.
 2002 2003.
 blackrock included in tax filings tax liability.
 years 2004 new jersey 2005 maryland.
national city subject state tax california florida illinois indiana missouri.
 audits california illinois missouri.
 tax.
 authorities.
 interest penalties.
 january 1 2008 accrued $ 91 million interest tax cross-border leasing transactions.
 total accrued interest penalties december 31 2008 $ 164 million.
 leasing interest decreased payment $ 73 million net increase acquisition national city.
 financial information blackrock.
 31
 assets $ 19924 $ 22561
 liabilities $ 7367 $ 10387
 non-controlling interest
 equity 12066
 revenue $ 5064 $ 4845
 expenses 3471
 operating income 1593 1294
 non-operating income
 before taxes non interest
 388
interest -155 155 ) 364
 net income $ 786 $ 995
 23 regulatory matters federal state examinations.
 business initiatives dividends deposit insurance costs regulatory oversight financial institution capital strength.
 minimum regulatory capital ratios 4% 1 risk 8% total risk 4% leverage.
 higher capital.
 capital ratios 6% 1 10% total 5% leverage.
 december 2008 2007 subsidiaries met capital ratio requirements.


realty trust statements.
 redeemable noncontrolling interests recorded carrying redemption value.
 changes charged capital.
 table interests.
.
 balance december 31 2009 $ 1251628
 income 55228
 distributions -53515
 conversion units common shares -126764
 adjustment 191826
 redemption d-12 units -13000
 balance december 31 2010 1327974
 income 55912
 distributions -50865
 conversion common shares -64830
 adjustment -98092
 redemption d-11 units -28000
 balance december 31 2011 $ 1160677
 noncontrolling interests exclude series g convertible preferred units d-13 accounted liabilities common shares.
value units liabilities balance $ 54865000 $ 55097000 december 2011 2010.


consolidated financial statements 2014 amounts millions share settlement 2008 investigation 2002 financial reporting practices settlement charge $ 12.
 investment impairments 2007 charge $ 5. 8 $ 12. 5 investment auction rate securities total investment.
 information.
 intangible assets goodwill excess purchase price liabilities.
 changes carrying value goodwill segment years december 31 2008 2007.
 balance december 31 2006 $ 2632. 5 $ 435. 3067. 8
 year acquisitions.
 contingent deferred payments acquisitions.
 business dispositions.
 foreign currency.
 balance december 31 2007 2789. 441 3231.
 current year acquisitions.
 contingent deferred payments prior acquisitions.
 business dispositions.
 foreign currency.9 13. -141. 6.
 balance december 31 2008 $ 2790. $ 430. 9 $ 3220.
 fourth quarter 2008 stock price declined market capitalization less than book value december 31.
 decline fair value units below book value interim impairment test goodwill.
 no impairment goodwill.
 monitor stock price market capitalization fair values 2009.
 annual reviews 2006 discounted future cash flow projections implied fair value goodwill less than book value due client losses goodwill impairment charge $ 27. 2 2006.
 intangible assets indefinite lives lives.
 non-compete agreements license costs trade names customer lists.
 lives


no statutory restrictions payment dividends retained earnings bermuda subsidiaries minimum statutory capital surplus requirements satisfied by share additional paid-in capital.
.
 subsidiaries file financial statements statutory accounting practices insurance.
 differs reinsurance contracts investments subsidiaries acquis expenses fixed assets deferred income taxes items.
 capital surplus.
 2008 2007 2006.
 dividends 2009 $ 835 million.
 combined statutory capital surplus net income bermuda.
 subsidiaries years december 31 2008 2007 2006.
.
 statutory capital surplus $ 7001 $ 8579 $ 7605 $ 5337 5321
 net income $ 684  $ 1535 $ 798 $ 873 $ 724
permitted by restructuring company 2019s.
 subsidiaries discount a&e liabilities increased capital surplus $ 211 million $ 140 million $ 157 million december 31 2008 2007 2006.
 subsidiaries prepare financial statements local laws.
 jurisdictions.
 licenses.
 subject to reserves capital solvency tests.
 fines criminal sanctions for violation.
 personnel expenses $ 1. 4 billion 2008 $ 1. 1 billion 2007 2006.
 amortization expense property $ 90 million $ 77 million $ 64 million.
 fire insurance values property equipment $ 680 million $ 464 million at 2008 2007.
 risk assessment management risks financial internal control over financial reporting.
 reliability reporting financial statements.
board through audit committee not officers employees financial reporting assets against unauthorized acquisition disposition.
 audit committee meets management accountants internal auditor approves audit work fee arrangements reviews audit reports.
 accountants internal auditor meet separately results audits internal control financial reporting safeguarding assets against unauthorized acquisition.
 management operational risks sets policies.
.


equity securities january 2017 authorized repurchase common stock $ 525 million.
 december 29 2018 $ 175 million.
 february 2019 authorized additional repurchase $ 500. million.
 timing repurchases subject business market conditions corporate regulatory requirements stock price acquisition opportunities.
 table presents repurchases authorization shares surrendered income tax months december 29 2018 total number shares purchased average price paid share publicly plan maximum dollar value repurchase september 30 2018 2013 november 3 $ 42. 495543 $ 254 650048. 623692 $ 226 1327657. 1203690 175.
 total averageprice paidper share maximum dollarvalue repurchase
 november 3 543900 $ 42. 495543
 650048. 623692
 1327657.61 1203690 $ 175
 2521605 $ 43. 10 2322925
 shares repurchase programs employee surrender restricted stock income tax reduce dollar value.
 average price share stock commissions.


corporation subsidiaries 2011 2010.
.
 2010 net revenue $ 5051
 mark-to-market tax settlement
 purchased power capacity -21
 wholesale revenue -14
 volume/weather
 decommissioning trust
 retail electric price
 2011 net revenue $ 4904
 mark-to-market tax settlement regulatory charge amortization 2011.
 3 8.
 purchased power capacity price increases.
 wholesale revenue lower margins co-owner higher wholesale energy costs.
 volume/weather 2061 gwh weather-adjusted usage.
 residential retail sales.
 industrial sales growth 2010.
 manufacturing economy exports industrial expansions.
 offset declines paper wood products pipeline segments.
 less weather residential sales.
 decommissioning trust variance deferral investment gains decommissioning trust 2010.
gains interest investment income 2010 regulatory charges no net income.
 retail electric price variance due actions entergy texas august 2011 louisiana arkansas.
 offset decreases new orleans october 2011.
 note 2 financial statements.


2014mergers acquisitions eldertrust merger february 5 2004 cash $ 184 million.
 nine assisted living independent living five skilled nursing two med office financial office portfolio. properties leased operators annual cash rent $ 16. 2 million escalation. terms four to 11 years. acquired limited partnership units $ 12. 50 per unit excluding 31455 class c units.
 owns eldertrust properties.
 funded $ 101 million equity purchase price cash $ 85 million proceeds 2003 sale facilities revolving credit facility april 17 2002. ownership eldertrust properties $ 83 million property debt liabilities. $ 33. 5 million unrestricted cash.
 acquisition purchase method.
 preliminary estimated values assets acquired liabilities assumed acquisition.
 subject refinement.
merger reflected in financial state acquisition february 5 2004. computing values allocation purchase price subject refinement.
 real estate investments $ 162
 cash equivalents 28
 assets 5
 assets acquired $ 195
 notes payable debt 83
 accounts payable liabilities 2
 liabilities assumed 85
 net assets acquired $
 january 29 2004 14 purchase agreements brookdale living communities.
 14 facilities purchase price $ 115 million. affiliates lease. 15 years guaranteed brookdale annual rent $ 10 million escalating. 5%. 75% consumer price index.
 acquisitions $ 41 million non- recourse property debt facilities balance paid cash revolving credit facility. encumbers seven facilities.
january 29 2004 company completed four brookdale facilities price $ 37 million. acquisition remaining ten facilities expected conditions.
 consummation not conditioned no assurance remaining acquisitions.
 transactions trans healthcare.
 november 4 2002 company subsidiary ventas realty completed $ 120. 0 million transaction trans healthcare. privately owned long-term care hospital company. $ 53. 0 million sale leaseback $ 67. 0 million loan mezzanine loan.
 sale senior loan december 2002 investment $ 70. 0 million.
 realty purchased 5 properties leasing lease. properties four skilled nursing facilities one retirement community. lease ten years provides annual base rent $ 5. 9 million. revenue parameters rent three percent 50% consumer price index.
.
37


january 2011 purchased 49. 9%. interest 521 fifth avenue assuming full ownership.
 consolidated interest $ 245. 7.
 january 2011 repaid $ 84. 8. 15%. unsecured notes maturity.
 2011 recapitalization 3 columbus circle.
 $ 138 equity investment sl a0green operating partnership units.
 property fully capitalized costs redevelop ment lease-up.
 mortgage refinanced loan sl a0green deutsche bank third-party lenders.
 february 2011 company operating partnership equity sales agreements merrill lynch pierce fenner smith morgan stanley.
 common stock $ 250. million equity program.
.
 sold 2. shares common stock proceeds $ 144. 1.
 2009 quarter.

 revenues $ 243040 $ 245769 $ 248251 $ 258787
 income noncontrolling interests gains sale -380 4099 -10242
 gain sale unconsolidated joint venture real estate 2014 -157 -2693 9541
 gain extinguishment debt 606 8368 29321 47712
 equity investment marketable securities -232 -807
 income discontinued operations 1593  1863 999 1319
 sale discontinued operations -1741 2014 6572
 income green -154 2449 17512 37737
 preferred stock dividends -4969 ( 4969
 income stockholders $ -5123 $ 12543 $ 32768
 income loss common share.
 common share.
 realty.
 2010 annual report financial statements


gas prices lower 2009 2008 2007 2008 high levels.
 gas production lower 48 states.
 sold bid-week prices.
 gas sales alaska term contracts.
-producing regions equatorial guinea term contracts prices less volatile.
 larger quantities prices lower average gas prices less benchmark.
 oil sands mining revenues correlate market prices synthetic crude oil gas.
 two-thirds output mix track one-third canadian heavy sour crude oil.
 impacted operational problems outages.
 operating cost structure fixed downtime.
 per-unit costs sensitive production rates.
 variable costs natural gas diesel fuel commodity markets index crude prices.
 benchmark prices revenues variable costs.
 crude oil barrel $ 62. $.
 western canadian select barrel $ 52.
natural gas sales index mmbtu $ 3. 49 7. 74.
 western canadian barrel $ 52. 79. 59 49. sales index mmbtu $ 3. 49. 74. pricing differentials western canada.
 alberta energy company.
 natural gas resources supply gap production.
 operations marketing transportation products methanol west africa.
 europe.
 60 percent ownership production equatorial guinea sells lng long-term henry hub natural gas prices.
 2009 sales 3. 9 million metric tonnes 2008 3. million metric tonnes.
 2009 185 million metric tonnes.
 production facilities construction.
 economic downturn weak economies lower natural gas consumption.
-term supply.
 prices.
.
 tied henry hub prices.
 indexed crude oil prices.
45 percent interest methanol plant equatorial guinea.
 sales 960374 2009 792794 2008.
 demand ampco earnings.
 demand limited supply-demand sales prices.
.
 demand methanol 2009 41 million tonnes.
 plant capacity. million 3 percent demand.
 income depends refining marketing retail marketing gasoline.


adjusted diluted earnings per share withdrawal costs pension funds restructuring charges loss extinguishment debt business dispositions impairments provides understanding operational activities before financial effect.
 performance.
 incurred comparable charges costs adjustments expected future.
.
 2017 anticipate receiving $ 975 million.
 trucks equipment 350
 landfill 330
 containers 160
 facilities 150
 property equipment 990
 proceeds
 $ 975
 solid waste collection operations.
 remaining revenue other services transfer station landfill disposal recycling energy services.
 residential commercial collection operations based long-term contracts municipalities.
 price escalation clauses.
 provide small-container commercial large-container industrial collection services three years.
 transfer stations landfills recycling facilities generate revenue from disposal fees.
integrate recycling collection obtain revenue from sale recycled commodities.
 revenue energy services fees treatment liquid waste production oil gas.
 revenue national accounts contracts local.
 offset subcontract costs recorded in cost operations.


marathon oil corporation awards granted 754140 563631 1205517.
 december 31 2018 1196176 units outstanding.
 awards expense $ 13 million 2018 $ 8 million 2017 $ 6 million 2016.
 assumptions simulation.
 stock price $ 14.
 annual dividend yield 1. 4%.
 volatility 39% 39 % 43% 43 % 52% 52 %
 risk-free interest rate 2. 5%. % 6%
 value stock performance units $ 19. 60 $
.
 defined benefit postretirement plans noncontributory benefit pension plans domestic employees.
 hired before april 2010.
.
.
.
 provisions.
.
 employer trustees future benefit accruals december 31 2015.
 defined benefit plans postretirement.
.
health care benefits 65 hospital cost sharing.
 post-age 65.
 employees.
 life insurance retiree beneficiaries.
 not funded.
 employees after 2016 not eligible insurance.


a0iii item a010.
 directors executive officers corporate governance part a0i item 1.
.
 201celection directors board governance a016 beneficial ownership reporting compliance proxy statement 2018 annual meeting.
 filed 120 fiscal year form 10-k.
 item a011.
 executive compensation 201ccompensation discussion analysis committee report proxy statement 2018 annual meeting.
 item a012.
 security ownership beneficial owners management stockholder matters proxy statement 2018 annual meeting.
 table december 2017 equity plans category number securities issued outstanding options warrants rights weighted-average exercise price securities future issuance equity compensation plans excluding securities plans 1708928. 3629455 item a013.
relationships transactions director independence a013 transactions governance proxy statement 2018 annual meeting.
 a014.
 accounting fees services 201caudit non-audit fees committee pre-approval procedures proxy 2018 annual meeting.
 plan category issued options warrants rights weighted-averageexercise price issuance compensationplans
 equity compensation plans security holders 1708928 $ 113. 3629455
 a0iii item a010.
 directors executive officers corporate governance part a0i item 1.
.
 201celection directors 201cnominees election board governance beneficial ownership reporting compliance proxy statement 2018 annual meeting.
 filed 120 fiscal year report form 10-k.
.
executive compensation 201ccompensation discussion analysis committee report proxy statement 2018 annual meeting.
 item a012.
 security ownership beneficial owners management stockholder matters management proxy statement 2018 annual meeting.
 table december 2017 equity plans category securities issued options warrants rights weighted-average exercise price securities future issuance equity compensation plans excluding 1708928 $ 113. 49 3629455 item a013.
 relationships transactions director independence transactions governance proxy statement 2018 annual meeting.
 a014.
 accounting fees services 201caudit non-audit fees committee pre-approval procedures proxy statement 2018 annual meeting.


corporation subsidiaries regulatory zero net balance end lease term.
 liability $ 61. 6 million $ 27. 8 million december 31 2013 2012.
 future minimum lease payments. 13%. long-term debt.
 51637
 2015 52253
 2016 13750
 2017
 2018
 247500
 392640
 295226
 minimum lease payments $ 97414


2007 annual report 61 warranties snap-on warranties lines future costs.
 note 15.
 minority interests equity earnings unconsolidated affiliates tax millions 2007 2006.
 minority interests -4. 9. -3. 7 3. -3. 5 3.
 equity earnings loss net tax 2.
 $ -2. 5 2. -3. 7 3. -1. 4.
 minority interests subsidiaries $ 17. 3 million $ 16. 8 million 2006 long-term liabilities.
 investments unconsolidated affiliates $ 30. 7 million $ 30. 6 million.
 foreign currency translation financial statements foreign subsidiaries translated.
 dollars.
. assets liabilities current rates income expense average exchange rate.
 adjustments recorded income loss balance.
exchange transactions pretax losses $ 1. 7 million 2007 $ 1. 2 million 2006 gain $ 0. 7 million 2005.
 gains losses reported income net consolidated statements earnings.
 uncertainty quantifying income tax positions.
 record benefits years.
 record largest benefit 50% likelihood settlement taxing authority.
 no tax benefit recognized financial statements.
 interest penalties recognized income tax expense.
 included tax liability balance sheets.
 deferred income taxes temporary differences assets liabilities.
 enacted tax rates.
 effect change tax rates assets liabilities recognized enactment date.
 note 8.
 earnings share calculations computed net earnings weighted-average number common shares.
 dilutive effect options purchase common shares calculated treasury stock method.
snap-on dilutive shares year-end 2007 2006 2005 731442 911697 584222.
 options purchase 493544 23000 612892 not included diluted earnings per share prices greater average market price stock effect earnings share anti-dilutive.
 stock-based compensation january 1 2006 company adopted.
-based payment modified prospective method.
.
 cost employee services awards equity instruments grant-date fair value.
 cost recognized.
 no compensation cost recognized awards.
 grant-date fair value share options


interest expense $ 26. 4 million $ 14. 6 million $ 5. 3 million 2016 2015 2014.
 deferred financing costs bank fees capital built-to-suit lease interest debt.
 amortization deferred financing costs $ 1. 2 million $. 8 million $. 6 million.
 monitors financial lenders instability lenders.
.
 leases warehouse office facilities brand factory stores equipment.
 leases expire 2033 extensions rental adjustments.
 lease agreements stores contingent rent sales maintenance insurance real estate taxes.
 schedule future minimum lease payments non property leases agreements.
 2017 $ 114857
 2018 127504
 2019 136040
 2020
 2021 122753
 2022
 future minimum lease payments $ 1422426
rent $ 109. million $ 83. million $ 59. million 2016 2015 2014 non-cancelable lease agreements.
 contingent rent $ 13. million $ 11. million $ 11. million.
 promote brand products.
 sponsorship agreements collegiate supplier agreements athletic event sponsorships marketing.
 schedule future minimum payments agreements december 31


blackrock cash investment administration securities lending performance technology risk management services distribution fees.
 cash operating expense interest taxes dividends repurchases expenditures co-investments seed investments.
 statements part ii 8.
 include fees securities lending performance fees offset operating expenses-end incentive compensation.
 outflows 2017 $ 517 million $ 497 million investment purchases $ 155 million property equipment $ 73 million first reserve $ 29 million cachematrix $ 205 million proceeds sales maturities.
 outflows financing $ 3094 million $ 1. 4 billion share repurchases 1. billion $ 321 million employee tax withholdings $ 1. 7 billion dividend $ 700 million repayments borrowings $ 697 million.
 manages financial liquidity.
liquidity resources december 31 2017 2016 millions cash equivalents $ 6894 $ 6091 consolidated 53.
 2017 2016
 $ 6894 $ 6091
 consolidated
 liquidity resources $ 10831 $ 10038
 percentage cash equivalents.
 subsidiaries 40% 40 50% 50 % 2017 2016.
.
 access cash operating activities.
 reduction year-end incentive compensation accruals $ 1. 5 billion $. 3 billion 2017 2016.
 liquidity resources increased $ 793 million 2017 cash flows operating offset 2016 incentive awards share repurchases $ 1. 4 billion dividend payments $ 1. 7 billion.
 $ 3154 million investments illiquid convertible cash.
.
 repurchased. million common shares $ 1. billion 2017.
december 31 2017 6. 4 million shares authorized.
.
 company capital subsidiaries retaining cash investments.
 subsidiaries cash.
 transfers adverse tax consequences.
 blackrock institutional trust company.
 national bank client deposits powers limited trust fiduciary activities.
 provides investment management services securities lending clients.
 subject regulatory capital liquid asset requirements comptroller.
 december 31 2017 2016 maintain $ 1. 8 billion $ 1. 4 billion net capital subsidiaries.
 regulatory net capital requirements.
 undistributed earnings foreign subsidiaries.
 2017 tax act repatriation tax provisional.
 income taxes earnings.
 reinvested foreign operations.
 capital management plans 2018.
 2017 credit facility.
 commitment $ 4.amended april 2017 maturity 2022 credit facility.
 permits request additional $ 1. billion borrowing capacity approval increasing size amount $ 5. billion.
 interest borrowings london interbank rate spread.


2016 issued $ 45 million fixed rate notes insurance companies.
 payments 2023 2028 mature 2029 2034.
 interest rates 2. 87 3. 10.
 proceeds borrowings revolving credit facility.
 2015 issued $ 75 million notes insurance company.
 payments 2020 mature 2030.
 interest rate 3. 52 percent.
 proceeds borrowings credit.
 december 31 2016 borrowing capacity $ 310. 8 million.
 operations.
 total debt increased $ 323. 6 million $ 249. million 2015. share repurchase purchase.
 leverage 17. percent 2016 14. percent 2015.
.
 pension plan requirements regulations.
 2016 voluntary $ 30 million contribution premiums.
 2017.
 note 10 financial statements.
 board authorized purchase 3000000 shares common stock.
 repurchased 3273109 shares average $ 41.per share cost $ 135. 2 million.
 4906403 shares remained repurchase authorization december 31 2016.
 stock price working capital expect spend $ 135 million repurchase 2017 10b5-1 repurchase plan.
 may repurchase additional $ 65 million 2017.
 paid dividends 77 years increasing last 25 years.
 $ 0. 48 per share 2016 $ 0. 38 2015.
 increased dividend 17 percent anticipate $ 0. 56 per share 2017.
 contractual obligations december 31 2016.
 obligations less than1 year 1 - 2years 3 - 5years
 long-term debt $ 323.
 rate interest.
 operating leases.
 purchase obligations.
 pension post-retirement obligations.
 $ 616.
december 31 2016 liability uncertain income tax positions $ 4. 2 million.
 uncertainty future cash flows.
 blanket purchase orders requirements suppliers.
 committed weeks production.
 purchase obligation amount value commitments.
 pronouncements note 1 consolidated financial statements.


intangible asset impairment third quarter fiscal 2017 assets acquired trade names latin america industrial segment impaired.
 noncash impairment charge $ 162. 154. air products. 70 share lower economic growth profitability.
 excluded segment results.
 note 10 11 consolidated financial statements.
 income expense transactions principal income.
 note 23 consolidated financial.
 2018.
 2017 $ 50. decreased $ 70. lower income transition services agreements sale assets contract settlements unfavorable foreign exchange impact.
.
 2016 income $ 121. increased $ 71. transition services agreements sale assets investments gain $ 12. $ 7. per share sale parcel land favorable foreign exchange impact.
.
 incurred $ 150.
 capitalized interest.
expense $ 130. $ 120. 115.
 2018.
 2017 increased $ 10. project financing joint venture higher interest rate offset lower debt balance.
 value projects.
 2017.
 2016 decreased $ 8. lower debt balance $ 26 offset higher interest rate $ 19.
 value exit business.
 non-operating income 2018.
. decreased $ 11.
 fourth quarter pension settlement loss $ 43. $ 33. $. per share transfer pension obligations insurer.
 annuity contract.
.
 loss offset higher interest income short investments lower non-service pension expense.
 prior year settlement loss $ 10. $ 6. $. per share.
 pension plan benefit $ 2.


jpmorgan chase. annual report five-year stock performance compare five-year return.
 return s&p 500 index kbw bank index s financial index.
 s&p 500 index. equity benchmark companies economic sectors.
 kbw bank index performance banks thrifts publicly traded.
 24 national regional banks thrifts.
 s&p financial index 87 companies components s&p 500.
 three industry indices.
 simultaneous investments $ 100 december 31 jpmorgan chase common stock.
 dividends reinvested.
.
 jpmorgan chase 100. 80. 108. 148. 163 177.
 kbw bank index. 76. 102 140 153 154
 s&p financial index. 106 166
 s&p 500 index. 102 118 178 180.
31 dollars


volumes 2013 increased fluff pulp improved market demand product mix franklin mill.
 price lower fluff market pulp increased.
 input costs wood fuels chemicals higher.
 operating costs lower start-up mill.
 maintenance downtime costs higher.
 sales volumes lower.
 price realizations improve increases pulp.
 input costs flat.
 maintenance downtime costs $ 11 million higher.
 operating profits impacted severe winter weather.
 packaging demand pricing spending economic activity.
 raw material energy costs freight costs manufacturing efficiency product mix.
 net sales increased 8% decreased 7% 2011.
 operating profits decreased 40%.
.
 shutdown paper machine profits 22% lower 2012 43% lower 2011.
higher sales volumes $ 45 million offset lower price unfavorable mix $ 50 million higher operating costs shutdown paper machine $ 46 million higher input costs $ 6 million.
 profits 2013 restructuring $ 45 million shutdown $ 2 million sale shorewood business.
 2012 gain $ 3 million 2011 $ 129 million asset impairment charge $ 72 million charges.
 consumer.
 sales $ 3435
 sales $ 2. billion 2013 $. 2012. 2011.
 operating profits $ 63 million shutdown 2013 2012 2011.
 coated paperboard sales volumes 2013 higher stronger market demand.
 price realizations lower year-over.
 input costs wood energy offset lower chemicals.
 maintenance downtime costs lower.
 market-related downtime 24000 tons 2013 113000 2012.
shutdown paper machine augusta mill reduced capacity 140000 tons.
 foodservice sales volumes increased.
 margins higher lower costs product mix.
 operating distribution costs higher.
. shorewood sold non.
 paperboard sales volumes weaker.
 sales price higher margins product mix.
 input costs higher energy chemicals wood.
 maintenance downtime costs $ 8 million lower outage mill.
 severe winter weather profits.
 foodservice sales volumes lower.
 margins improve price increases product mix.


city council entergy new orleans.
 february 2018 approved settlement deferred cost recovery 2018 rate case adjustment 2018-2019 costs filed case timely recovery.
 funds cash debt membership interest issuances bank financing.
 refinance redeem retire debt prior maturity market conditions interest rates.
 receivables from money pool december 31 years.
 2016 2015 2014
 12723 $ 14215 $ 15794 $ 442
 note 4.
 credit facility $ 25 million november 2018.
 letters of credit against $ 10 million borrowing capacity.
 december 31 2017 no cash borrowings $ 0. 8 million letter of credit outstanding.
 party uncommitted letter of credit facility. $ 1. 4 million letter of credit outstanding.
 note 4 statements.
new orleans authorization ferc october 2019 short-term borrowings $ 150 million long-term borrowings securities issuances.
 note 4 financial statements short-term borrowing limits.
 long-term securities issuances authorized ferc city council authorization extends june 2018.
 entergy new orleans rate regulation electricity natural gas influence financial position results liquidity.
 regulated rates determined regulatory proceedings.
 city council approval rates.
 asset transfer.
 settlement agreement 2015 no action base rates until implemented


louisiana subsidiaries financial increased demand customers expansion projects chemicals industry.
 louisiana act 55 financing savings regulatory tax savings.
 savings 2010-2011 audit settlement louisiana act 55 storm costs hurricane gustav ike.
 note 3 financial statements.
 provision $ 23 million 2016 waterford 3 replacement steam generator offset $ 32 million 2015 uncertainty.
 note 2 financial statements.
 net revenue fuel expenses gas power expenses regulatory charges.
 change net revenue.
.
 2014 net revenue $ 2246.
 retail electric price.
.
 waterford 3 replacement steam generator provision.
.
.
 2015 net revenue $ 2408.
 price due formula rate plan increases lpsc 2014 january 2015.
 note 2 financial statements.
volume/weather variance due increase 841 gwh 2% electricity usage increased industrial usage demand refinery new expansion projects chemicals industry offset decrease demand seasonal outage.
 waterford 3 replacement steam generator due regulatory charge $ 32 million 2015 uncertainty.
 note 2.
 miso deferral variance due deferral 2014 non-fuel miso-related charges.
 offset operation maintenance expenses.
 note 2.


refer note 2 accounting principles practices information.
.
 employee savings.
 expense included compensation benefits consolidated statements income.
 expense plans. millions.
 years december 31 2018 2017 2016
. $ 98 $ 105 $ 121
.
 $ 168 $ 173  $ 191
 postretirement sponsors pension health welfare plans.
 health care plans contributory contributions adjusted annually life insurance pension plans noncontributory.
. plans closed new entrants.


2017 form 10-k part iii item 10.
 directors executive officers corporate governance code conduct ethical conduct certificates principal executive financial officer accounting officer item 1.
 annual report.
 directors.
 1 election board nominees governance committees proxy statement 2018 annual meeting 120 days fiscal year december 31 2017.
 executive officers 1.
 executive officers baker annual report.
 compliance directors executive officers section 16 a exchange act 16 beneficial ownership reporting compliance.
 item 11.
 executive compensation committee. item 12.
 security ownership beneficial owners management stockholder matters sections ownership section 16 director executive officers proxy statement.
 employees officers directors trading plans rule 10b5-1 exchange act.
rule 10b5-1 criteria individual plan to buy or sell shares company stock.
 plan entered good faith nonpublic information.
 plan receipt nonpublic information prevent transactions.
 officers advised enter stock sales plans for shares common stock rule 10b5-1.
 company may future enter repurchases stock plan rule 10b5-1 or 10b-18.
 equity compensation plan information table as of december 31, 2017 shares common stock issued plan approved by stockholders millions.
 equity compensation plan category number securities issued options warrants rights average exercise price number securities future issuance.
 plancategory price future
 stockholder-approved plans  1. 6  $ 36. 61 | 53. 7
nonstockholder plans 2014
. $ 36.


information oil gas activities future cash flows oil gas reserves 2006 2005 2004 sales transfers oil gas production transportation administrative costs 5312 3754 2689 prices production transportation costs 6648 771.
 2006 2005 2004
 sales transfers oil gas costs -5312 -3754 3754 -2689 2689
 prices costs -1342 1342 6648 771
 extensions discoveries recovery 1290 700 1349
 costs 1251 1030
 development costs -527 -552 -628
 estimates 1319
 sales minerals 4557
 accretion discount 1124 757
 change income taxes -660 -6694 -627
 307
 change -2083 4186
 10601 6415
 end year 8518 10601
change discontinued -216 216 162 -152


auto parts.
 schedule ii valuation accounts doubtful accounts balance charges expenses deductions end january 3 2015 $ 13295 17182 14325 16152 january 2 2016 25758 december 31 24597 29164 accounts written off.
 impact statement operations.
 other valuation accounts not reported.
 doubtful accounts balance charges deductions
 january 3 2015 $ 13295 17182 -14325 16152
 january 2 2016 22067
 31 2016
 advance auto parts.
 schedule ii valuation qualifying accounts doubtful accounts balance charges expenses deductions end period january 3 2015 $ 13295 $ 17182 14325 16152 january 2 2016 22067 25758 december 31 accounts written off.
 impact statement operations.
valuation qualifying accounts not reported schedule not applicable included.


consolidated financial statements derivatives credit features firm 2019s derivatives transacted bilateral agreements counterparties post collateral terminate changes credit ratings.
 assesses impact collateral termination payments downgrade.
.
 table presents fair value net derivative liabilities agreements excluding collateral assets posted collateral additional collateral termination payments two downgrade credit ratings.
 millions december 2013 2012
 net derivative liabilities bilateral agreements $ 22176 $ 27885
 collateral posted 18178 24296
 additional collateral termination payments one-notch downgrade 1534
 two-notch
 firm enters credit derivatives transactions manage credit risk investing lending.
 derivatives managed firm 2019s net risk position.
 individually negotiated contracts settlement payment conventions.
events include failure to pay bankruptcy indebtedness restructuring repudiation dissolution entity.
.
 protect buyer against loss principal on bonds loans mortgages issuer suffers credit event.
 buyer pays premium receives protection contract.
 no credit event seller no payments.
 if credit event occurs payment calculated contract.
 credit indices.
 derivatives swaps.
 credit event occurs protection seller pays buyer.
 payment pro-rata portion transaction amount defaulted obligation.
 credit risk separated into portions subordination.
 junior tranches cover defaults excess loss covered by senior tranche.
 total return swaps.
 risks from protection buyer to protection seller.
 receives floating interest protection against reduction fair value receives cash flows increase fair value.
.
credit option writer assumes purchase sell obligation price credit spread.
 buys.
 payments depend credit spread or price obligation.
 goldman sachs 2013 annual report


company expects annual amortization expense intangible assets.
 $ 1343
.
 foreign subsidiaries received grants agencies.
 grants include capital employment research development grants.
 capital acquisition property netted against capital expenditures amortized credit depreciation expense.
 employment recognized earnings.
.
 translation foreign currencies sales local currency.
 gains losses translation currencies.
 dollars recorded income.
 gains foreign currency assets liabilities operations.
 dollar.
 foreign currency gains losses not material 2010 2009 2008.
.
 exchange foreign currency exchange contracts offset operational balance sheet exposures foreign currency exchange rates.
 exposures.
 euro philippine peso british pound.
 foreign currency exchange contracts support transactions normal business not speculative.
 periods one year or less.
hedges related to transactions documented cash flow hedges evaluated monthly.
 foreign currency exposures.
 terms contract transaction contract effectiveness calculated fair value contract to value transaction gain loss reported income in equity reclassified into earnings transaction.
 residual change fair value recognized in expense.
 company enters foreign currency contracts gains losses assets liabilities non-functional currency.
 changes in fair value hedges recognized in expense.
 total amount hedges $ 42. 1 million and $ 38 million.
 fair value in balance sheets.
 interest rate exposure 2009 entered interest rate swap transactions 5% senior unsecured notes swapped $ 375 million fixed rate debt at. into floating interest rate debt through july 1  2014.
 $ 375 million amount 5. 0%.% annual interest analog.
 statements 2014


.
 cost drivers manufacturing efficiency raw material energy freight costs.
 printing sales 2014 decreased 8% $ 5. 7 billion $ 6. 2 billion 2013 8%. 2012.
 profits 106% lower 2013 lower 2012.
 closure 7% 7 higher 2013 8% lower 2012.
 higher sales price lower maintenance downtime costs provision bad debt foreign exchange costs lower sales volumes million higher operating costs 49 million input costs 47 million closure courtland mill 41 million.
 profits special $ 554 million closure.
 accelerated depreciation courtland assets evaluated.
 net book value $ 470 million.
 no alternative uses.
 $ 464 million accelerated depreciation.
profits 2014 $ 32 million foreign tax amnesty gain $ 20 million legal contingency india 2013 $ 118 million closure courtland alabama mill $ 123 million impairment charge goodwill trade name intangible asset india papers.
.
 sales $ 2. 1 billion 2014 $ 2. 6 billion 2013 $ 2. 7 billion 2012.
 loss $ 398 million gain 156 million shutdown $ 36 million 2013 331 million 2012.
 sales volumes 2014 decreased lower demand freesheet paper closure courtland mill.
 price realizations higher.
 input costs chemicals freight costs higher.
 maintenance downtime costs $ 14 million lower.
 profits impacted shutdown courtland mill provision bad debt.
 sales volumes stable.
 margins improve.
 costs.
maintenance downtime costs $ 16 million lower outage 2015 georgetown mill eastover riverdale.
 brazilian papers sales 2014 $ 1. billion. 2013.
 profits $ 177 million 209 million tax amnesty 210 2013 2012.
 sales volumes flat.
 price improved price increases.
.
 raw material costs.
 operating costs higher maintenance downtime costs flat.
 sales volumes decrease weaker demand.
 price improvements increases.
 input costs.
 maintenance outage costs $ 5 million lower outage luiz antonio mill.
 european papers net sales 2014 $ 1. 5 billion. 2013
 profits $ 140 million 167 million 2013 $ 179 million volumes higher


currency exchange risk non-u.
 companies maintain assets liabilities local currencies.
 exchange risk limited to assets.
 reviewed risk management process.
 capital invested in home currencies support local insurance operations.
 principal currencies british pound sterling euro canadian dollar.
 table exposure foreign exchange risk december 31 2008 2007.
 millions. dollars
 fair value net assets foreign currencies $ 1127 $ 1651
 assets 7. 8%. 9. 9%.
 pre-tax impact equity 10 percent strengthening. dollar $ 84 $ 150
 reinsurance gmdb gmib guarantees net income impacted by changes reserves.
 reflected life annuity benefit expense.
 impacted by fair value gmib liability.
.
 changes reflected as realized gains losses.
 views variable annuity reinsurance business similar risk profile catastrophe reinsurance probability long-term economic loss small.
 adverse changes market factors policyholder behavior life underwriting income net income.
-term economic net loss short-term accounting variations market movements.
 business long-term eco risk reward.
 ultimate risk long underperformance investment returns reduction interest rates.
 underperformance to higher paid claims.
 market conditions reserves fair value liability fall decreased future claims increase life underwriting income net income.
 management established sop 03-1 reserve based benefit ratio market values.
-term market movements reserve.
 based long-term benefit ratio.
 impacted by short-term market movements.
management sop 03-1 quantitative qualitative analysis change benefit ratio change sop 03-1 reserve.
 premium claims long-term profit loss variable annuity reinsurance.
 reserve fair value liability affected by market factors equity interest rate credit risk policyholder behaviors.
 table shows sensitivity december 31 2008 sop 03-1 reserves fair value liability.
 tables sensitivity fair value derivative instruments instruments purchased january 2009 offset risk.
 change value offset changes sop 03-1 reserve.


contents cdw corporation subsidiaries method.
 classifies deferred financing costs deduction from long-term debt liability except revolving credit facilities presented asset.
 interest rate cap agreements hedging exposure fluctuations interest rates.
 cash flow hedges interest risk recorded at fair value other assets.
 gain loss instruments reported component accumulated loss until reclassified interest expense hedge transaction affects earnings.
 fair value measurements value defined price received sell asset transfer liability transaction market participants.
 fair value hierarchy established valuation three levels.
 measurement reported determined lowest level input.
 levels level 1 observable inputs quoted prices.
 level 2 2013 model-based valuation techniques.
 level 3 2013 inputs unobservable management estimates assumptions.
fair values determined using model-based techniques option pricing discounted cash flow.
 accumulated loss components 2019 equity.
 millions years 2017 2016 2015
 foreign currency translation $ -96. 1 ( 96. $ -139. 6 139. $ -61. 61.
 unrealized gain hedge accounting.
 loss $ -95. 9 ( 95. $ -139. 6 ( 139. $ -61. 1 ( 61.
 distribution channel for vendors suppliers equipment manufacturers software publishers wholesale distributors cloud providers.
 records revenue title risk loss passed delivery price fixed collectability assured.
 shipping terms.
 risk.
 revenues from hardware software licenses recognized selling price acquisition cost.
 delivered physical drop-shipment electronic delivery.
 estimate sales returns allowances experience.
company partners warrant products.
 leverages drop-shipment deliver without inventory warehouses increasing efficiency reducing


capital resources liquidity generated by earnings citi 2019s businesses.
 capital through common stock convertible preferred stock equity employee benefit plans subordinated debt trust securities.
 impact future events on business results changes accounting affect capital levels.
 capital assets absorb market operational losses.
 dividends stock restricted due to agreements with.
 government.
 common stock trust securities.
.
 citigroup capital management framework sufficient capital with risk profile regulatory standards guidelines external rating agency considerations.
 overseen by senior management reviewed at consolidated entity country level.
 through finance asset liability committee oversight from risk management finance committee board of.
 in decision-making on capital liquidity.
finalco responsibilities financial structure citigroup ensuring asset levels return hurdles funding capital markets plan monitoring interest rate risk corporate bank liquidity impact currency translation.
 earnings.
 ratios subject risk-based capital guidelines federal reserve board.
 capital adequacy measured 1 total capital.
 tier 1 capital equity noncontrolling interests mandatorily redeemable securities goodwill intangible assets deferred tax assets.
 total capital includes tier 2 capital subordinated debt allowance credit losses.
 percentage risk-weighted assets.
 2009 supervisory capital program.
 regulators measure capital less elements preferred stock noncontrolling interests redeemable securities.
 risk-weighted assets from risk-based capital guidelines credit risk.
guidelines on-balance-sheet assets off-balance-sheet exposures financial guarantees unfunded lending commitments letters credit derivatives assigned risk-weight categories perceived credit risk obligor guarantor collateral credit ratings.
 risk-weighted assets market risk trading foreign exchange commodity positions.
 excluded goodwill deferred tax assets regulatory capital.
.
 citigroup subject leverage ratio requirement non capital adequacy 1 capital quarterly total assets.
 1 capital ratio 6% total capital ratio 10% leverage ratio 3% not federal reserve board directive.
 citigroup regulatory capital ratios december 2009 2008.
.
 9. 60%. 60 % 2. 30%. 30 %
 11. 67.
 15. 25. 70
 6. 89.
citigroup capitalized federal bank end 2009 2008.


jpmorgan chase & co. /2018 form 10-k 117 lending-related commitments firm uses financial instruments commitments revolving credit facilities guarantees financing needs.
 contractual amounts represent maximum credit risk.
 commitments guarantees refinanced extended cancelled expire without default.
 total contractual amount not representative future credit exposure funding requirements.
 note 27.
 clearing services firm provides securities derivative contracts.
 exposed risk non-performance share losses.
 credit risk margin cease clearing services if adhere obligations.
 note 27.
 derivative contracts manage risks credit risk interest rates foreign exchange equities commodities.
 firm makes markets derivatives manage risks counterparty credit risk.
 derivative instruments manage credit market risk.
 settlement mechanism affect credit risk.
otc derivatives firm exposed credit risk counterparty.
 exchange-traded derivatives futures options-counter exposed credit risk.
 credit risk legally enforceable master netting arrangements collateral agreements.
 note 5.
 table summarizes net derivative receivables.
.
 2018
 cash collateral $ 54213 $ 56523
 liquid securities cash collateral derivative receivables
 collateral $ 38891 $ 40415
 derivative instruments legal opinions.
 fair value derivative receivables consolidated balance sheets $ 54. 2 billion $ 56. 5 billion december 31 2018 2017.
 value enforceable master netting agreements cash collateral.
 credit risk liquid securities.
 government cash collateral $ 15. billion $.1 billion at december 31 2018 2017 used security client exposure firm favor.
 firm holds additional collateral cash g7 government securities liquid government-agency guaranteed securities corporate debt equity securities clients non-daily call frequency not settled.
 collateral reduce balances not table available security against potential exposure value firm favor.
 derivative receivables fair value include credit enhancements letters of credit.
 note 5.
 net fair value capture future variability credit.
 firm calculates three measures credit loss peak derivative risk equivalent average exposure.
 incorporate netting collateral benefits.
 peak conservative measure potential exposure 97. 5%. confidence level.
 primary for credit limits derivative contracts senior management reporting exposure management.
 risk derivative exposure


inventory future purchase commitments considering demand forecasts product life cycle sales levels pricing strategy cost trends.
 if inventories materials obsolete excess demand inventory cost exceeds realizable value adjustments results operations.
 goodwill non-amortizable assets valuation test for impairment annually.
 company quantitative assessment annual impairment analysis.
 fair value carrying value.
 exceeds impaired.
 discounted cash flow model market approach earnings multiples companies tobacco.
 december 31 2018 carrying value goodwill $ 7. 2 billion related to ten reporting units.
 estimated fair value exceeded carrying value.
 non-amortizable assets discounted cash flow model relief-from-royalty method.
 fair value exceeded carrying value.
discounted cash flow models include assumptions cash flows subject to changes conditions volumes prices costs discount rates capital needs.
 management considers historical experience information values consistent with marketplace participant.
 2008. recorded charge earnings impairment goodwill non intangible assets.
 marketing costs advertising marketing consumer engagement trade promotions.
 expensed.
.
 uncertainties performance compliance.
 volume-based incentives assesses likelihood targets records reduction revenue.
 relies on estimated utilization rates historical experience.
 changes assumptions financial position cash flows.
 employee benefit plans.
 pensions postretirement health care postemployment benefits.
 record annual amounts based calculations.
.
 include actuarial assumptions discount rates return compensation increases mortality turnover rates health care cost trend rates.
review actuarial assumptions rates trends.
.
 amortized future periods.
 assumptions obligations experience.
-average discount rate assumptions pension postretirement obligations december 2017.
 pension. 61%. 51%.
 postretirement plans. 97%. 79%.
 changes increase 2019-tax pension postretirement expense $ 205 million $ 160 million 2018 excluding.
 higher amortization losses $ 14 million lower return assets $ 16 million higher interest service cost 12 million 4 million offset movements $ 1 million.
 return discount assumptions expense benefit.
 fifty-basis-point decrease discount rate 2019 pension postretirement expense $ 50 million increase


1b.
 unresolved staff comments.
 2.
.
 corporate co-headquarters pittsburgh pennsylvania chicago illinois.
-headquarters executive offices.
 business units administrative finance human resource functions.
 maintain owned leased offices regions.
 manufacture products manufacturing processing facilities.
 december 31 2016 operated 87 manufacturing facilities.
 own 83 lease four.
 facilities.
 leased united states
 canada
 world
 maintain manufacturing processing facilities good condition.
 co-manufacturing arrangements third parties production.
 fourth quarter 2016 reorganized segment structure business.
 reflected change table.
.
 current manufacturing processing facilities closed next year.
 restructuring.
.
.
 involved legal proceedings claims governmental inquiries inspections.
april 1 2015 commodity futures trading commission filed complaint against mondel 0113z international kraft foods. kraft.
 northern district illinois december 2011 wheat futures contracts.
 complaint alleges mondel 0113z international kraft manipulated wheat markets 2011 violated position limit wheat futures non trades both sides wheat contracts.
 activities arose october 1 2012 spin-off kraft business owned mondel 0113z.
 separation distribution agreement kraft september 27 2012 governs allocation liabilities mondel kraft 0113z international costs monetary penalties payments.
 financial condition results operations business.
 costs.
.
 safety disclosures.
 not applicable.


hr solutions.
 december 31, 2010 2008
 revenue $ 2111 $ 1267 $ 1356
 operating income 234 203 208
 margin 11. 1%. 1 % 16. 0%. % 15. 3%. 3 %
 october 2010 hewitt human resource.
 operates globally brand.
 results october 1 2010.
 hr solutions segment generated 25% revenues 2010 human capital services health benefits employee benefit programs.
 management benefits data-driven health compliance commitment investment.
 retirement actuarial services consulting investment tax pension administration.
 compensation planning executive reward strategies salary survey market share studies sales force effectiveness financial services technology industries.
 talent change organizational effectiveness workforce training.
2022 benefits outsourcing defined benefit contribution 401 k health welfare services.
 replaces processes efficient less costly solutions.
 2022 human resource business processing outsourcing manage employee data benefits payroll human resources processes record talent workforce hr transactions absence management flexible spending audit participant advocacy.
 disruption credit markets deterioration financial markets uncertainty.
 economic conditions.
 economic downturn clients 2019 financial condition business activities.
 demand