emerson annual report september 30 1874750 shares awarded 2016 outstanding contingent performance objectives 2018.
 97 percent 2018 1818508 shares distributed early 2019.
 rights 2261700 2375313 shares awarded 2018 2017 performance shares program contingent performance objectives 2020 2019.
 incentive shares plans restricted stock awards management three ten years.
 fair value high low market prices stock compensation expense.
 2018 310000 shares vested.
 167837 shares issued 142163 shares withheld.
 september 30 1276200 shares unvested stock outstanding.
 total fair value $ 20  $ 245 $ 11  2018 2017 2016 $ 9 $ 101 $ 4 paid cash tax withholding.
 september 30. 3 million shares.
 changes shares outstanding.
4999 $ 50. 33
 granted 2295 $ 63.
 earned/vested -310 $ 51. 27
 canceled -86 $ 56.
 6898 $ 54.
 compensation expense stock options incentive shares $ 216 $ 115 $ 159 2018 2016 $ 5 $ 14 discontinued operations.
 increase 2018 stock price performance objectives.
 decrease 2017 stock price.
 income tax benefits $ 42 $ 33 $ 45.
 unrecognized compensation expense unvested shares $ 182  1. years.
 awarded 12228 shares 2038 units non-management directors.
 159965 shares.
. shares compensation plans.
. million purchased. 6 million treasury reissued.
 2017. purchased. reissued.
. million shares. preferred stock none issued.


31 2015 carrying amount amortization.
 carrying amount
 computer software $ 793 $ -643
 patents licenses -98
 intangibles -64
 amortizable assets 1864 -805
 indefinite-lived trade names trademarks 45
 intangible assets $ 1909 $ -805
 computer software enterprise business solution.
 amortization expense intangible assets 2016 2015 2014 $ 65  $ 67  $ 55  $ 56 to $ 64 annually 2017 to 2021.
.
 acquisitions divestitures.
.
 medical business lisi medical $ 102 cash $ 99 transaction costs proceeds.
 international metals.
 manufactures precision-machined metal products invasive surgical.
transaction occurred rti acquisition no gain recorded excess proceeds purchase price adjustment $ 44 arconic acquisition.
 operating results assets liabilities engineered products solutions segment.
 generated sales $ 20 january 2016 330 employees.
 no subject post-closing adjustments.
.
 arconic aerospace company tital for $ 204 ) cash additional $ 1 paid.
 tital 650 employees produces aluminum titanium products aerospace defense.
 acquisition capture demand jet engine components-casting capabilities expand aluminum casting capacity.
 assets goodwill liabilities included engineered products solutions segment.
 preliminary goodwill $ 118 recorded.
 quarter 2016 allocation finalized third-party valuation $ 1 reduction goodwill.
 $ 117 goodwill deductible no other intangible assets.
 no subject post-closing adjustments.
july 2015 arconic rti.
 traded new york stock exchange. purchased shares $ 870 $. 96 share july 23 closing price


chipset design issue january 2011 identified issue intel ae 6 series express chipset.
 chipsets sold fourth quarter 2010 january 2011.
 implemented silicon fix shipping updated february 2011.
 total cost repair materials $ 422 million.
 significant future adjustments.
 short-term debt december 28 2013 drafts $ 257 million notes $ 24 million $ million $ 48 million 29 2012.
 authorization board directors borrow $ 3. billion commercial paper.
 maximum borrowings paper 2013 $ 300 million $ 500 million 2012.
 commercial paper rated a-1+ standard 2019s p-1 moody 2019s.
 long-term.
 2017. 35%. 35 %
 2. 70%. 70 %
 4.
 4. 25%. 25 %
. 95%. 95 %
 3. 30%. %
2011 senior notes due 2041 4. 80%. % 1490
 2009 debentures 2039. 25%. 1075
 2005 debentures 2035 2. 95%. 95 % 946
 long-term debt $ 13165 13136
 fourth quarter 2012 issued $ 6. 2 billion corporate repurchase common stock.
 third quarter 2011 issued $ 5. billion repurchase common stock.
 fixed interest semiannually.
 redeem redemption prices.
 rank equally indebtedness liabilities subsidiaries.
 financial statements


income statement income 2009 $ 2. billion 2008 $ 914 million.
 results national city fourth quarter $ 687 million after-tax gain blackrock acquisition.
 increases due results city.
 item 8.
 income margin.
 income $ 9083 $ 3854
 margin 3. 82%. 82 %. 37%. 37 %
 interest-earning assets yields liabilities rates noninterest-bearing sources funding.
 2013.
 net interest income 2009 interest-earning assets national city net interest margin.
 3. 82%. 82 % 2009. 37%. 37 2008.
 decrease rate accrued interest-bearing liabilities 97.
 deposits decreased 107 points.
 offset 45 point decrease yield interest-earning assets.
 loans decreased 30 points.
 noninterest-bearing sources funding decreased 7 points.
federal funds rate. 16%. 2009. 94%. 2008.
 net interest income 2010 lower cash recoveries impaired loans higher yielding assets rising interest rates.
.
 noninterest income $ 7. 1 billion 2009 $ 2. 4 billion 2008.
 gain blackrock/bgi transaction $ 1. 076 billion impairments debt securities $ million gains $ 550 million mortgage $ 355 million commercial mortgage loans $ 107 million gains $ 103 million blackrock losses private equity $ 93 million.
income 2008 debt $ 312 million gains $ 246 million blackrock ltip shares losses mortgage loans $ 197 million losses private equity $ 180 million income hilliard lyons $ 164 million $ 114 million gains $ 106 million gain $ 95 million redemption visa shares.
 asset management revenue increased 172 million $ 858 million 2009 686 million 2008.
 equity markets business higher equity investments.
 assets $ 103 billion.
.
 consumer services fees $ 1. 290 billion.
 charges deposits $ 950 million 372.
 national city acquisition.
 consumer spending


.
 asset returns lower $ 471 million discount rates declined unfavorable mark-to-market adjustment fourth quarter.
 pension market adjustment inventoriable cost.
 first quarter 2012.
-to-market adjustments reflect value.
 gains/losses recognized.
 costs project k four-year efficiency program.
 businesses growth value-added innovation.
 optimized supply chain infrastructure global business services focus.
 gross margin operating margin non-gaap pension plans commodity contracts adjustments project k costs.
 transparency.
 gross margin declined 110 2013 inflation productivity savings lower operating leverage sales margin pringles.
 sg&a% improved 110 overhead leverage pringles acquisition reduced investment consumer promotions.
 gross margin declined 180 points 2012 cost inflation savings lower margin structure pringles.
sga% consistent 2011.
 gross profit sga operating profit gaap.
 2012
 gross profit $ 6103 $ 5434 5152
 mark-to-market -259 -377
 -174
 gross profit $ 5767 $ 5693 $ 5529
 $ 3266 $ 3872 3725
 mark-to-market 437 -305
 sga $ 3669 $ 3679 $
 operating profit $ 2837 $ 1562 $ 1427
 mark-to-market 947 -452 -682
 operating profit $ 2098 $ 2109
 profit equal net sales less cost goods sold.
 mark-to-market adjustments pension plans commodity contracts.
 gains/losses plans.
 asset returns $ 545 million discount rates 65 points favorable mark-to-market adjustment fourth quarter 2013.
mark-to-market adjustment capitalized inventoriable cost end 2013.
 2012 asset returns exceeded $ 211 million discount rates fell 100 points unfavorable adjustment fourth quarter.
 adjustment inventoriable cost.
 recorded first quarter 2013.
 2011 returns lower $ 471 million discount rates declined unfavorable adjustment fourth quarter.
 adjustment inventoriable cost.
.
 adjustments reflect fair value.
 gains/losses recognized quarter.
 costs project k four-year efficiency program.
 businesses growth value-added innovation.
 optimized supply chain infrastructure global business services focus.
 underlying gross profit operating profit non-gaap measures impact pension plans commodity contracts adjustments project k costs.
 transparency performance.
restructuring cost reduction-term profit growth targets.
 initiatives recover costs five-year.
 project cash savings reduced depreciation.
 commenced cogs sga cost reduction initiatives.
 cogs optimize manufacturing network reduce waste develop best practices.
 sga efficiency support functions.
 2013 recorded $ 42 million charges cost reduction initiatives.


investment policy note 15 employee benefit plans consolidated financial statements item 8.
 calculate expense pension plan reflecting trust assets fair market value.
 review actuarial assumptions pension plan discount rate compensation increase expected return plan assets.
 discount rate compensation increase affect pension expense.
 expected long-term return assets expense.
 8. 25%. past three years.
 return long-term assumption historical returns asset classes allocation strategy.
 performance assumption represents long-term prospective return.
 review adjust if warranted.
 term refers period projected benefit obligation disbursed.
 year-to-year returns vary. 61% 57%. assumption represents estimate long-term average prospective returns.
 selection process references historical data environment qualitative judgment future return expectations.
 change assumption investment strategy.
evaluate assumption examine viewpoints data.
 studies portfolios equity securities returned 10% long periods debt securities 6% ( 6 % annually.
 application returns plan 2019s allocation equities bonds produces 8% ( 8 %. 5%. point reference.
 examine plan 2019s returns.
 returns not indicators future returns low returns followed higher returns.
 annually examine assumption companies pension investment strategies determinations.
 data informs process qualitative judgment future investment returns.
 expected long-term return assets pension 2009 8. 25%. unchanged from 2008.
 intend decrease plan 2019s target allocation range equities five percentage points.
 expected long-term return to 8.% (. 2010.
 difference accumulated amortized to pension expense future.
percentage point difference return causes expense $ 8 million.
 table reflects effects pension expense changes annual assumptions 2010 expense baseline.
 change expense.
. 5%. decrease discount rate
. decrease long return assets
. increase compensation rate
 assumption.
 pretax pension expense $ 41 million 2010 $ 117 million 2009.
 reduction due amortization impact 2009 investment returns.
 pension plan contribution requirements not sensitive actuarial assumptions.
 investment performance contributions.
 current law pension protection act 2006 limits minimum maximum contributions.
 minimum contributions zero 2010.
 benefit plans less significant effect results


company amortize $ 1. 7 million actuarial loss benefit costs 2011.
 benefit payments future.
 2011.
 2012.
 2013.
 2014.
 2015.
 2016-2020.
.
 maintains defined contribution savings plan 401.
 employees contribute.
 matches contributions 3% base salary additional contributions 2% base salary.
 london-based employees eligible participate plan.
 contributions 10% earnings vesting requirements.
 salary bonuses.
 expense defined contribution savings plans $ 6. 3 million $ 5. 2 million $. 8 million 2010 2009 2008.
.
 investment choices.
 invests contributions assets.
 balances subject creditors totaled $ 28. 8 million $ 23. 4 million december 31 2010 2009.
 equal offsetting liability.
investment results income equal compensation.
 supplemental savings plan employees impacted statutory limits.
 employees prior 2007 vested in plan.
 after 2007 subject vesting requirements.
 total expense plan $ 0. 9 million $. 7 million $ 1. 3 million 2010 2009 2008.
 deferred compensation plan maintained cme officers board directors contribute compensation defer income taxes until distribution.
 nymexmembers 2019 retirement plan benefits.
 retirement plan.
.
 benefits long-term membership limited prior acquisition.
 no new participants after.
 fund plan minimum annual contribution $. 4 million until fully funded.
 benefits based on actuarial assumptions.
 total contributions $. 8 million 2010 2009 2008.
 total obligation $ 20. 7 million $. 5 million


jpmorgan chase co. annual report trading assets liabilities debt equity instruments loans physical commodities inventories lower cost fair value.
 liabilities debt equity instruments sold positions.
 obligated purchase future short positions.
 receivables unrealized gains payables losses derivatives.
 fair value consolidated balance sheets.
 reduction securities owned securities sold not purchased short identical.
 2013average balances.
 december 31 millions 2010 2009 2008
 2013 debt equity instruments 354441 318063
 derivative receivables 84676 110457 121417
 liabilities 2013 debt equity instruments 78159 60224 78841
 derivative payables 65714 77901 93200
 reduction securities owned securities sold not purchased short positions.
represent securities sold not purchased.
 2013 fair value option alternative measurement financial assets liabilities unrecognized firm commitments loan com mitments not fair value.
 mitigate income volatility instruments eliminate complexities accounting models. reflect instruments managed.
 include loans purchased securitization activity bifurcation accounting aged fair value.
 securities financing arrangements embedded deriva tive maturity greater one year.
 owned beneficial interests securitized assets embedded credit derivatives.
 tax credits equity investments washington mutual transaction.
 structured notes client-driven activities.
. long-term beneficial interests consolidated securitization trusts assets carried fair value.


transfer agent registrar common stock computershare shareowner services llc 480 washington boulevard 29th floor jersey city new jersey 877 363-6398 sales unregistered securities.
 repurchase equity securities purchases equity october 1 2013 to december 31 2013.
 shares purchased average price paid plans value.
 average price dollar value
 october 1 - 31 3351759 $ 16. 263702132
 november 1 - 30. 175284073
 december 1 - 31 $. $ 118560581
 11877706 $ 16.
 common stock $ 0. 10 per share withheld employee stock compensation plans tax withholding obligations.
 repurchased 1067 withheld shares october 2013.
withheld shares purchased november december 2013.
 average price per share three-month period calculated dividing tax withholding obligations paid shares acquired stock repurchase program 6 withheld acquired program.
 february 2013 board authorized new share repurchase program $ 300. million common stock.
 march 2013 board authorized increase 2013 share repurchase program $ 500. million.
 february 14 2014 new share repurchase program $ 300. million.
 authorization addition 2013.
 no expiration date.


item 1.
 founded 1886 american water works company.
 holding company delaware.
 largest diverse investor owned publicly-traded united states water wastewater utility company.
 employ 6700 professionals drinking water wastewater services 15 million people 47 states columbia ontario canada.
 regulated businesses.
 market businesses water services four segments reportable.
 non reportable-based businesses management results.
 information item 7 financial condition results note 19 financial statements.
 primary business ownership subsidiaries water wastewater utility services residential commercial industrial customers public authority.
 subsidiaries operate 1600 communities 16 states state commissions.
 federal state governments regulate environmental health safety water quality.
 report results regulated businesses segment.
regulated businesses revenues $ 2743 million 2015 2674 million 2014 2594 million 2013 86. 8%. 88. 8%. 90. 1%. 1 %.
 table summarizes 2019 revenues customers estimated population state december 31 2015 revenues customers estimated population.
 new jersey $ 704 25. 7%. 7 % 660580 20. 3%. 3 %. 22. 3%. 3 %
 pennsylvania 22. 4%. 4 %. 7%. 7 %. 0%. 0 %
 illinois. 8%. 8 %. 6%. 6 %. 7%. 7 %
. 8%. 8 %. 5%. 5 %. 4%. 4 %
. 5%. 5 %. 1%. 1 %. 7%. 7 %
. 2%.174942. 4%. 4 %. %
 virginia. 7%. 7 %. 2%. 2 %. %
 seven states 87. 1%. 1 % 2759263. 8%. 8 %. 1% 1 %
. 9%. 9 %. 2%. 2 %. 9 %
 100. 0%. 0 % 3252691. %. 0 %
 illinois-american water company.
 west virginia-american water bluefield valley.
 georgia hawaii iowa kentucky maryland michigan new tennessee virginia.


table identifies company 2019s obligations by payment period.
 less than 1 1-3 3-5 5
 property casualty obligations $ 21885 $ 5777 $ 6150 $ 3016 6942
 life annuity disability obligations 281998 18037 37318 40255 186388
 long-term debt 9093 536 1288 1613
 operating lease obligations 723
 purchase obligations 1764  1614 120
 long-term liabilities balance 1642 1590
 $ 317105 $ 27729  $ 45161 $ 45112 $ 199103
 cash flows for property casualty contracts reserves unpaid adjustment expenses.
 payments reserves ultimate amount estimate.
 settlement.
 settlements vary estimates.
 historical payment patterns.
future payments due changes claim reporting payment patterns unanticipated settlements.
 uncertainty payment patterns asbestos environmental claims.
 estimated payments 2005 include claims policies 31 2004.
 future cash flows premiums loss payments.
 reserves claim adjustment expenses.
 settlements disabled claimants settlement contracts loss runoffs.
 december 31 2004 property casualty reserves $ 21885 reserve discount $ 556.
 life annuity disability obligations include death disability claims policy surrenders dividends commissions offset future deposits premiums contracts.
 obligations based on mortality morbidity lapse assumptions.
 market growth interest crediting.
 obligations recorded current account value future market growth interest crediting deposits.
estimated policyholder obligations exceed liabilities future benefits unpaid claims adjustment expenses funds benefits liabilities.
 differ.
 separate obligations insulated from funded by assets.
 investments future deposits premiums.
 principal interest payments.
 fair-value hedges long-term.
 fixed.
 interest payments $ 700 $ 2. 4 billion junior subordinated debentures callable 2006.
 note 14.
 $ 1. 4 billion commitments $ 330 limited partnerships $ 299 mortgage loans.
 payments less than 1 year.
 remaining $ 759 payables securities.
 contribution $ 200 pension plan 2005.
 accepted cash collateral $ 1. 6 billion securities lending program.
 timing uncertain included in payments less than 1 year.
$ 52 collateralized loan obligations third-party investors investment management entity synthetic clo transactions.
 recourse company assets.
 note 4 financial statements


note 17.
 losses pmi's net taxes.
 earnings millions 2014 2013
 currency translation adjustments $ -3929 $ -2207 $ -331 (
 pension benefits -3020 -3365
 derivatives hedges
 losses $ -6826 -4190 -3604
 reclassifications tax impact activity consolidated statements 2014 2013 2012.
 currency translation adjustments impacted purchase shares mexican tobacco business.
 $ 5 million $ 12 million net currency translation adjustment gains transferred marketing administration research costs 2014 2013 liquidation subsidiary.
 note 13.
 benefit plans note 15.
 financial instruments pmi's pension benefits.
 note 18.
colombian investment cooperation agreement june 19 2009 pmi signed agreement colombia departments capital district promote investment cooperation tobacco market fight counterfeit contraband.
 provides $ 200 million funding 20-year combating illegal cigarette trade counterfeit tobacco increasing quality locally grown tobacco.
 pmi recorded pre-tax charge $ 135 million latin america canada second quarter 2009.
 december 31 2014 2013 $ 71 million $ 74 million discounted liabilities.
 paid 2028.
.
 legal settlement july 31 2008 rothmans.
 cad 550 million settlement benson hedges.
 provinces.
 resolved investigation products exported canada 1989-1996.
 rothmans interest.
 remaining 40% pmi.


operating activities upon payment terms license agreements.
 75% license fee paid first year.
 payment terms for tsls extended license fee paid quarterly or annually.
 receive cash from upfront license revenue sooner than time-based licenses.
 2008 to 2009.
 cash activities decreased deferred revenue timing billings cash payments increased payments to vendors tax prepayment for irs settlement.
 9.
 2007.
 cash decreased timing billings cash payments lower cash inflows settlement of $ 12. 5 million from magma.
 investing.
 decrease purchases marketable securities acquisitions offset by timing maturities.
.
 decrease sale for acquisition synplicity lower capital expenditures.
 financing activities 2008.
 increase absence common stock repurchases offset decrease options employees.
.
 increase more common stock repurchases.
note 7 financial statements stock repurchase program.
 hold cash equivalents short-term investments united states foreign accounts primarily ireland bermuda japan.
 october 31 2009 $ 612. 4 million cash equivalents investments united states $ 555. 9 million foreign accounts.
 funds revenue outside north america.
 indefinitely reinvested foreign countries note 9.
 expect cash fluctuate timing billings collections operating results tax liability payments cash future acquisitions.
 october 31.
 %
 dollars millions
.


management liquidity risk financial institutions.
 failures insufficient liquidity.
 firm liquidity funding policies-specific industry market liquidity events.
 objective fund firm enable businesses generate revenues.
 manage liquidity risk excess liquidity.
 maintain cash outflows collateral needs.
 asset-liability management.
 holding periods liquidity.
 manage maturities diversity funding markets products maintain liabilities tenor asset base.
 contingency funding plan.
 liquidity crisis stress.
 business activity.
.
 excess liquidity pre-fund cash collateral needs liquidity crisis hold liquidity unencumbered liquid securities cash.
 securities convertible to cash meet obligations without assets funding markets.
 december 2013 2012 fair value securities overnight cash deposits totaled $ 184. 07 billion $ 174. 62 billion.
internal liquidity risk model intraday liquidity needs financial markets firm liquidity position december 2013 2012 appropriate.
 table fair value securities overnight cash deposits.
.
. dollar-denominated $ 136824 $ 125111
. dollar-denominated 45826 46984
 $ 182650 $ 172095
.
 excess unencumbered.
 government federal agency obligations.
 overnight.
 cash deposits.
.
-denominated excess unencumbered german french japanese united kingdom government obligations overnight cash deposits liquid currencies.
 limit excess liquidity defined list securities cash.
 include other sources excess liquidity unencumbered securities credit facilities.
 2013 annual report


not under obligation disclaim to update alter statements.
 consider results differ from statements.
.
 unresolved staff comments.
.
.
 corporate headquarters jacksonville florida owned facility.
 fnf occupies pays rent 121000 square feet.
 lease office space locations.
 california
 florida
 georgia
 texas
 minnesota new york
 illinois ohio maryland
 pennsylvania
.
 lease 81 locations outside united states.
 properties adequate for business.
.
 legal.
 involved in litigation matters claims punitive exemplary damages.
 no actions depart from customary litigation.
 matters raise difficult factual legal issues uncertainties.
 review financial accounting standards.
 decisions.
 base on ultimate outcome appeals.
company employees named march 6 2006 defendants civil lawsuit grace digital information technology.
 chinese sales agent alltel services.
 grace filed suit december 2004 monterey county california sales agreement pay commissions contracts 2001 2003.
 2001 contracts completed.
 2003 different project executed years agreement terminated.
 violated corrupt practices act bank.
 denied allegations.


161 acres undeveloped land 12-acre container storage facility houston.
 total price $ 89. 7 million financed secured debt $ 34. 3 million.
 $ 64. million in-service real estate $ 20. million undeveloped land storage facility $ 5. 4 million lease remaining acquired working capital liabilities.
 rental operations.
 2007 healthcare real estate.
 development capabilities.
 $ 47. 1 million contingent payments three-year.
 $ 39. million price goodwill development capabilities-place workforce.
 financial statements.
 2006 acquired majority washington.
 suburban office industrial properties.
 $ 867. 6 million 32 in-service properties 2. 9 million square feet rental 166 acres undeveloped land assets.
 financed assumed mortgage loans new.
assets acquired liabilities assumed recorded estimated value.
 rental properties 602011
 undeveloped land 154300
 real estate investments 756311
 assets 10478
 lease assets 86047
 goodwill 14722
 acquired 867558
 debt -148527
 liabilities
 liabilities $ 713202
 2006 contributed 23 properties $ 381. 6 million two subsidiaries.
 nine eight contributed 2007 one.
 $. 4 million debt $ 146. 4 million assumed subsidiaries.
 purchase industrial real estate savannah.
 majority 2006.
 assets $ 196. 2 million 18 buildings. 1 million square feet rental 60 acres undeveloped land.
 financed mortgage loans.
 rental operations consolidated financial statements.


valuation long-lived assets estimate useful lives undiscounted cash flows impairment.
 fair value measured discounted cash flows appraisals.
 goodwill indefinite-lived not amortization tested impairment annually.
 estimates value goodwill discounted cash flow model.
 growth rates sales profits.
 discount rates perpetuity growth assumptions market comparables.
 evaluate useful lives intangible assets brands finite indefinite-lived.
 obsolescence demand competition economic factors maintenance expenditures expected lives.
 amortized straight-line useful lives 4 to 30 years.
 estimate fair value brand assets discounted cash flow model projected revenues assumed royalty rates discount rate.
 may 26 2019 $ 20. 6 billion goodwill indefinite-lived intangible assets.
believe fair value intangible exceeds carrying value contribute cash flows different assumptions future performance weighted-average cost capital impairment losses amortization expense.
 performed fiscal 2019 assessment intangible assets second quarter.
 lower sales projections long-range recorded impairment charges.
 $ 132. $ 330.
 impairment charge.
 $ 132. $ 330.
.
.
 $ 192. $ 330.
 assumptions long-range cash flow projections royalty rates weighted-average cost capital rates tax rates.


december 31 holdings s&p 500.
 holdings. s&p
 2013 100.
 2014 98. 114. 113 96.
 2015 109. 122. 115. 133.
 126. 133. 129. 140.
 149. 172. 157. 202.
 148. 165. 150. 201.


$ 16 million fossil operating costs attala plant 2006 perryville plant 2005 increase $ 12 million storm reserves.
 hurricanes katrina rita $ 12 million return normal expense patterns 2006 2005.
 operation maintenance expenses increased non- utility nuclear $ 588 million 2005 $ million 2006 refueling outages benefit insurance costs nrc fees.
 increased $ 322 million 2005 $ 361 million 2006 city franchise taxes.
 income.
 higher franchise tax expense entergy gulf states.
 higher gross revenues 2006 customer refund 2005.
 increased $ 111 million 2005 $ 156 million 2006 storm restoration costs.
 non-utility nuclear miscellaneous income $ 27 million $. reduction decommissioning liability revised cost study.
 increased entergy-koch investment $ 55 million fourth quarter 2006.
2004 entergy-koch sold energy trading pipeline businesses.
 received $ 862 million sales proceeds cash distribution.
 due november 2006 expiration contingencies sale received cash distributions $ 163 million fourth quarter 2006 gain $ 55 million-tax.
 future cash distributions less than $ 35 million.
 increased due borrowing storm restoration costs hurricanes katrina rita.
 2006 sold retail electric business discontinued operation.
 earnings 2005 affected $ 44. 8 million net discontinued operations sale.
 net charge $ 25. 8 million impairment reserve.
 results 2006 $ 11. 1 million gain sale.
 rates 2006 2005 27. 6%. 36. 6%.
 lower rate due tax benefits loss liquidation entergy power international holdings.
lower rate 2006 audit settlement entergy tax settled issues 1996-1998 audit cycle.
 note 3 financial statements reconciliation federal 35. income tax rates.
 entergy capital structure spending cash flow activity.
 balanced equity debt.
 increase debt to capital percentage 2006 to 2007 borrowings revolving credit facility decrease shareholders equity repurchases common stock.
 financial risk management aspirations.
 decrease debt capital 2005 to 2006 increase shareholders equity retained earnings offset repurchases common stock.
 debt capital 54. 6%. 6 % 49. 4%. 5%.
 debt 3. 2 9%. 6%.
 57. 6%. 6 %. 3%. 1%.
 debt cash equivalents.
 notes payable capital lease obligations preferred stock long-term debt maturing portion.
capital debt shareholders equity preferred stock without sinking fund.
 net capital less cash equivalents.
 entergy uses net debt capital ratio financial information investors creditors condition.


pre-construction dam safety environmental construction.
 recovered surcharge twenty-year period october 2012.
 unrecovered project costs surcharges $ 85 million $ 89 million december 31 2018 2017.
 surcharges collected $ 8 million $ 7 million.
 twenty-year amortization period january 1 2018 annual revenue requirement $ 8 million recovered base rates.
 debt expense amortized.
 premiums redemption long term debt unamortized debt deferred amortized future service rates.
 purchase premium acquisition premiums asset california 2007.
 amortized depreciation operations through november 2048.
 tank painting costs deferred amortized operations maintenance expense five fifteen years regulatory authorities.
 american water capital. subsidiary. senior notes december 21 2018.62 % series e senior notes march 29 2019 201d. 77%. f december 21 2022 premium $ 10 million paid holders september 11 2018.
 early debt extinguishment costs utility subsidiaries recorded regulatory assets recovery future.
 construction costs property tax stabilization employee costs deferred postretirement benefit business services coastal water rate expenditures environmental remediation costs.
 costs deferred.
 regulatory liabilities.
 records regulatory liabilities.
 regulatory liabilities december 31.
 income taxes recovered rates $ 1279
 removal costs
 postretirement benefit liability
 pension postretirement benefit balancing accounts
 reserve revenue
 regulatory liabilities $


turkey restructuring costs $ 53 million 72 million 2012 $ 66 million 61 closure etienne mill france 2009.
 sales volumes 2013 higher 2012 strong demand agricultural morocco turkey.
 decreased weak demand poor weather.
 sales margins lower costs.
 costs energy.
 profits 2013 2012 gains $ 13 million $ 10 million insurance settlements government grants offset additional operating costs earthquakes.
 2014 sales volumes increase higher demand.
 margins improve reductions material costs box price increases.
 input costs flat.
 brazilian packaging orsa paper embalagens. 75% share.
 net sales $ 335 million 2013.
 profits $ 2 million $ 2 million acquisition costs.
 2014 sales volumes lower 2013.
 margins improve sales price increase favorable product mix.
input costs lower.
 packaging sales $ 400 million 2013 2012 410 2011.
 profits loss $ 5 million 2013 $ 2 million 2012 2 2011.
 impacted higher sales margins volumes offset higher operating costs.
 2014 sales volumes margins seasonally soft.
 sales distribution $ million 2013 260 2012 2011.
 profits $ 3 million 2013.
 demand commercial printing advertising direct mail volumes employment.
 currency rates.
 cost drivers manufacturing efficiency raw material energy freight costs.
 net sales 2013 flat 2012 2011.
 profits 55% lower 2012 69% lower 2011.
 15% lower 2012 40% 2011.
 lower operating costs $ maintenance outage costs 17 offset lower sales price sales volumes higher input costs higher other costs 34.
 $ 118 million closure courtland mill.
2013 accelerated depreciation courtland assets evaluated uses.
 net value $ 470 million.
 evaluation conclude uses first quarter.
 profits 123 million impairment charge trade name intangible asset india papers.
 profits 2011 $ 24 million gain repurposing franklin virginia mill $ 11 million impairment charge scotland mill closed 2009.
.
 printing papers sales $. billion 2013. billion 2012. billion 2011.


goldman sachs group.
 subsidiaries financial lending.
 commitments extended investment-grade non-investment-grade corporate borrowers.
 operating liquidity corporate purposes.
 extends contingent acquisition financing corporate lending commercial real estate financing.
 short-term.
 sumitomo mitsui financial group.
 provides credit loss protection commitments investment-grade.
 $ 25. 70 billion $ 26. 88 billion december 2017 2016.
 loss protection limited 95% first loss $ 950 million.
 protection 70% additional losses maximum $ 1. 13 billion $ 550 million $ 768 million 2017 2016.
 uses financial instruments mitigate credit risks.
 credit default swaps market index.
 warehouse financing.
 assets.
 secured retail corporate loans.
contingent starting collateralized agreements resale securities borrowing repurchase secured lending three business days.
 contingent financing resale agreements.
 funding depends contractual conditions expire unused.
 banks securities cash collateral margin deposit requirements.
 investment private equity real estate assets funds.
 commitments $ 2. 09 billion $ 2. 10 billion 2017 2016.
 funded market value.
 obligations long-term lease agreements office space expiring through 2069.
 escalation real estate taxes.
 future minimum rental payments sublease rentals.
.
 299 2019 282
 2020 262
 2021 205
 2022 145
 2023 operating expenses $ 273 million 2017 $ 244 million 2016 $ 249 million 2015.


consolidated financial statements non-financial assets liabilities measured fair value 2009 classified atlantic star for sale recognized charge $ 7. 1 million reduce carrying value less cost offer.
 recorded operating expenses statement.
 determined fair market value atlantic star december 31 2010 ship sales condition age size.
 categorized inputs level 3 assump tions.
 carrying amount atlantic star fair value $ 46. 4 million.
 table reconciliation company fuel call options balances fair value measurements unobservable december 31 2010 inputs 2009 fuel balance january 1 2010 gains losses.
 december 31 2010 fairvalue measurements unobservable inputs december 31 2009 fairvalue unobservable inputs 3
 total gains losses
income expense ( 2824 ) -2538 ( 2538 )
 purchases issuances settlements 24539 purchases issuances settlements 12536
 transfers level 3 -31713 ( ) 2014
 balance december 31 2010 balance december 31 2009 9998
 total gains losses income unrealized gains losses assets held ( 2824 ) gains losses -2538 ( 2538 )
 gains losses unrealized gains 2824 fourth quarter 2010 changed valuation technique fuel call options market approach inputs observable.
 fair value determined prevailing market price price quotes assets transactions.
 level 2 categorization appropriate observability transparency inputs.
 derived fair value fuel call options standard option pricing models options 2019 contract terms data public market informa.
fuel call options level 3 volatility unobservable.
 transfers level 3 end quarter gains losses 2010 include fourth quarter fuel gains.
 fair values based factors assumptions.
 not represent financial assets include expenses sale settlement.
 derivative instruments exposed market risk interest rates fuel prices.
 manage risks operating financing activities derivative instruments hedging practices.
 financial impact hedging offset by changes exposures.
 amount term conditions derivative instrument risk.
 hold issue trading speculative.
 monitor derivative positions market valuations sensitivity analyses.


emerson.
 sales $ 5. 9 billion $ 302 million hvac refrigeration.
.
 sales increased 5 percent 297 million 6 percent volume 1 percent lower price.
 currency deducted 20 million acquisitions 25 million.
 climate technologies sales $ 4. 2 billion 268 million 7 percent.
 air conditioning.
.
 refrigeration energy.
 sensors temperature controls.
 tools home products $ 1. 6 billion 34 million.
.
 wet vacuums.
.
 food waste disposers storage declined.
 sales increased 3 percent. 4 percent 17 percent asia.
 3 percent latin america 4 percent canada decreased 5 percent middle east/africa.
 earnings $ 1. 4 billion $ 72 million climate technologies.
 volume costs 16 million offset higher materials costs price product mix.
 company cash acquisitions capital structure short long-term.
 cash flow millions 2016 2017 2018.
 operating cash flow $ 2499 2690 2892
 sales 17. 2%. 2 6%
 capital expenditures $ 447 617
 sales 3. 1%. 1 5%. 5 %
 cash flow $ 2052 2214 2275
 sales 14. 1%. % 5%. 1%. 1 %
 working capital $ 755 1007
 sales 5. 2%. 2 %. 6%. 7%. 7
 cash flow 2018 $ 2. 9 billion $ 202 million 8 percent increase 2017 higher earnings working capital.
 cash flow $ 2. 7 billion 2017 increased 8 percent. 2016 higher earnings.
 sales 5. 7 percent. 2 percent 2016.
increase 2017 capital valves controls.
 $ 617 million dividends $ 1. billion common stock purchases $ 1. billion.
 repatriated $. 4 billion.
 subsidiaries.
 borrowings $ 2. 2 billion.
 contributions pension $ 61 million 2018 $ 45 million 2017 $ 66 million 2016.
 capital expenditures $ 617 million 476 million $ 447 million.
 free cash flow $ 2. 3 billion 2018 up 3 percent.
 2. billion
 capital spending $ 650 million 2019.
 net cash acquisitions 2. 2 billion 3. 132 million.
 divestitures $ 201 million $ 39 million.
 dividends 1. billion.
 quarterly cash dividend 1 percent $. per share.
 purchases common stock. 400 million 601 million 2016 $.
board 70 million shares 2015 41. million.
 purchased 15. million 2018 6. 2017 12. 5 million 2016 2013.


mastercard financial statements 2014 company postretirement plan funding benefits payments.
 table summarizes expected net benefit payments through 2018 benefit payments subsidy receipts.
 2009 $ 2641 $ 2564
 2010 3139
 2011 3561
 2012 3994
 2013 4357 4188
 2018 25807 1269 24538
 company provides postemployment benefits former.
 employees.
 accounts severance expense.
 cost benefits.
 updates assumptions severance severance activity long-term trends.
 recorded severance expense $ 2643 3418 $ 8400  2008 2007 2006.
 accrued liability severance plan $ 63863 $ 56172 december 31 2008 2007.
.
april 28 2008 extended unsecured revolving credit facility 2006 additional year.
 expiration date april 26  2011.
 funding $ 2500000 april 27 2010 $ 2000000 final year.
 terms conditions unchanged.
 option.
 borrowings liquidity settlement failures limit $ 500000.
 facility fee 8 points $ 2030 annually.
 interest charged london interbank rate libor margin 37 points utilization fee 10 points borrowings exceed 50% commitments.
 fee cost contingent credit rating.
 upfront fees $ 1250 administrative fees $ 325 amortized three years.
 $ 2353 $ 2477 $ 2717 december 31 2008 2007 2006.
 no borrowings 2008 2007.
 majority lenders mastercard international.
 1998 issued ten-year unsecured notes fixed interest rate 6. 67%. per annum.
$ 80000 june


2009 2010 2014
 state street corporation 100 107 114 120 190
 s&p 500 index 132 135 157
 s&p financial index 135
 kbw bank index 152 117 153


devices.
 financial statements 2014 schedule future minimum rental payments long-term leases october 31.
 2016 21780
 2017 16305
 2018 8670
 2019 4172
 2020 3298
 5263
 $ 59488
.
 commitments contingencies claims charges contractual patents trademarks personal injury environmental product liability insurance coverage personnel employment disputes.
 no assurance.
 legal matters financial position operations cash flows.
.
 retirement plans subsidiaries savings retirement plans employees.
 defined contribution plan eligible.
 employees.
 contributions 5% compensation.
 contributes pre-tax contribution 3% compensation.
 expense contribution plan.
 $ 26. million 2015 $ 24. million 2014 $ 23. million 2013.
 defined benefit pension retirement plans non.
 employees requirements.
 expense.
excluding settlement charges irish defined benefit plan $ 33. 3 million 2015 $ 29. 8 million 2014 $ 26. 5 million 2013.
.
 converted benefits.
 expenses $ 223. 7 million including settlement charges legal accounting professional fees pension.
 assets plan liquidated annuities retirees distributed.
 assets plan zero end 2015.
 funding policy foreign pension plans consistent local requirements.
 assets.
.
 equity securities bonds property cash.
 obligations assets measured october 31 2015 november 1 2014.
.


mastercard financial statements 2014 termination employment excluding retirement participant unvested awards forfeited.
 retirement retains awards additional service.
 retirement age years service 55 ten 60 five 65 two.
 compensation expense recognized shorter vesting periods.
 11550 shares common stock equity awards.
 no.
 option exercises conversions funded issuance new shares.
 fair value estimated date grant black-scholes option pricing model.
 weighted-average assumptions fair value option years december 31.
 risk-free rate return 2. 5%. 5 %. 2%. 2 % 4. 4%. 4 %
 6. 25
 41. 7%. 7 % 37. 9%. 9 %. 9%. 9 %
 dividend yield. 4%. 3%. 6%. 6 %
-average value option $ 71. 03 $ 78. 54 $ 41. 03
 risk-free rate return based.
 treasury yield curve.
 company simplified method calculating expected term option vesting terms contractual life.
 volatility options 2009 average implied volatility mastercard historical.
 options 2008 average mastercard.
 traded stock data volatility options 2007 based average historical implied volatility.
 dividend yields based company 2019s expected annual dividend rate.


table details effect net income earnings per share compensation expense stock-based awards including options recorded december 31 2005 fair value method statement.
 stock compensation.
 millions amounts.
 net income $ 1026
 employee compensation expense tax
 compensation expense value -50
 net income $ 989
 earnings per share 2013 $ 3.
.
.
.
 stock options executives granted 2003 2002 reload feature.
 options common stock new grant.
 price common stock increased 20%.
 year december 31 2005 reload option grants represented $ 19 million pro forma expense.
 no reload option grants 2007 2006 options exercised after 2006 not eligible reload.
 earnings calculated on weighted-average common shares outstanding.
earnings per share include issuable stock options awards conversion dilutive.
 estimates consolidated financial statements include estimates assumptions assets liabilities revenue expenses contingent assets liabilities.
 future results differ from.
 income taxes fasb statement.
 109 taxes current year deferred tax assets liabilities future tax consequences financial statements.
 consequences measured tax law anticipated.
 financial condition.
 record valuation allowance against deferred tax assets offset future tax benefits.
 tax assets judgments.
 claimed tax benefits challenged uncertain tax positions accounted under fasb interpretation.
 48 uncertainty.
.
 2007.
 income tax contingencies accounted under fasb statement.
.
 tax benefits for positions likely sustained.
 measured largest benefit greater than 50 percent likely realized settlement.
liability benefits


death benefits from insurance company remainder.
 minimal cash payments policies.
 net pension cost split-dollar life insurance $ 5 million 2013 2012 2011.
 liability future death benefits 2019 retirement $ 51 million $ 58 million 2012.
 amended reinstated june 1 2013.
 executives defer salary cash incentive compensation 401 ( k ) plan limitations.
 invest deferred amounts investment alternatives 401.
 company matching contributions first 4% compensation deferred $ 50000 lost matching amounts discretionary amounts approved.
.
. 401 contributory.
 contributions based 2019 contributions.
 expenses contribution plans years december 31 2013 2012 2011 $ 44 million $ 42 million $ 48 million.
 january 1 2012 additional discretionary 401 ( k plan matching contribution employees.
years 31 2012 company no contributions.
.
 share-based compensation incentive stock options appreciation rights employee purchase plan grants options acquire stock employees option holders.
 option right exercise price 100% fair market value common stock.
 awards five fifteen years two four years.
 control exercisable holder terminated quits within 24 months.
 employee stock purchase plan allows payroll deductions 20% compensation.
 purchase more $ 25000 stock.
 price per share 85% fair market value stock purchase.
 two purchase periods october 1 march 31 april 1 september 30.
 years 31 2013 2012 2011 employees purchased 1. 5 million. 4 million 2. 2 million shares prices $ 43. $.
 calculates value employee stock option black-scholes option pricing model.
-average employee stock options 2013 2012 2011 $ 9. 52 9. 60 $ 13. 25 assumptions.
 volatility 22. 1%. 1 % 24. 28. 8%. 8 %
 risk-free interest. 9% 9 % 8% 8 1% 1 %
 dividend yield. 4%. 4 %. 2%. 2 %.
 life 5. 6.
 uses implied volatility options.
 availability


performance graph comcast compares yearly shareholder return comcast 2019s common stock five years 31 2015 returns standard poor 2019s 500 stock index peer group cable communications media industries.
 cablevision systems dish network directv.
. time warner cable.
. viacom.
 twenty-first century fox.
 cbs.
 cable subgroup 63% media subgroup 37% communications segments.
 $ 100 invested december 31 2010 common stock reinvestment dividends.
 5 year cumulative return comcast s&p 500 peer group index.
 comcast $ 110 $ 177 $ 250 $ 282
 s&p 500 stock index $ 102 $ 118
 peer group index $ 110 $ 157 $ 231 $ 267 $
wholly subsidiary no market equity securities.
 2015 report


goldman sachs group.
 subsidiaries portfolios positions not var.
.
.
 table risk positions not included category.
 december 2017 2016 2015
 equity $ 2096 $ 2085 $ 2157
 debt 1606
 $ 3702 $ 3787 3636
 market risk potential reduction net revenues 10% 10 % decline value.
 equity positions private public equity securities corporate equities real estate hedge funds.
 debt positions debt commercial real estate corporate loans debt distressed loans.
 equity debt positions consolidated statements financial.
.
 reflect diversification effect asset categories market risk measures.
 credit spread sensitivity derivatives financial liabilities.
 excludes impact credit spreads derivatives financial liabilities value option.
estimated sensitivity one point increase credit spreads on derivatives $ 3 million $ 2 million including hedges december 2017 2016.
 point increase credit spreads financial liabilities fair value option $ 35 million $ 25 million.
 net impact spreads affected by liquidity duration convexity liabilities performance hedges.
 interest rate sensitivity.
 loans receivable december 2017 2016 $ 65. 93 billion $ 49. 67 billion floating interest rates.
 estimated sensitivity to 100 basis point increase interest rates loans $ 527 million $ 405 million additional interest income twelve-month period impact increase costs loans.
 note 9.
 credit loss protection from sumitomo mitsui financial group.
 note 18.
 investments in securities-for-sale.
.
 equity direct investments real estate.
investments estate cost depreciation.
 note 13 financial statements.
 sachs


reinsurance commissions fees revenue decreased 2% 2014 impact foreign currency exchange rates organic revenue market impact offset business treaty placements capital markets transactions advisory business.
 income increased $ 108 million 2013 $ 1. 6 billion 2014.
 income margins. 120.
 organic revenue growth return investments expense discipline savings restructuring programs offset $ 61 million impact foreign currency exchange rates.
.
 revenue $ 4264
 income
 margin.
 solutions segment generated 35% revenues 2014 human capital services 2022 retirement specializes actuarial services contribution consulting tax consulting pension administration.
 planning reward strategies salary survey market share studies sales force effectiveness financial services technology industries.
2022 human capital advice organizations talent change organizational effectiveness talent strategy executive on-boarding performance management leadership assessment communication strategy workforce training change management.
 investment consulting advises companies institutions trustees investment programs defined benefit contribution endowments foundations.
 benefits administration expertise defined benefit contribution 401 health welfare services.
 replaces processes efficient less costly solutions.
 exchanges healthcare exchanges cost effective alternative healthcare insurance.
 human resource business processing outsourcing manage employee data benefits payroll human resources processes talent workforce transactions.
 disruption global credit markets deterioration financial markets uncertainty.
 economic conditions impacted financial condition business activities.
 challenges demand pricing business results.


third quarter 2017 recognized goodwill $ 145. intangible $ 16. 8.
 note 11 goodwill 12 intangible assets fair value measurement methods inputs level 3.
.
 tables summarize debt 30 2019 2018.
 short-term borrowings $ 58. $ 54.
 long-term debt 40. 406.
 2907. 2967.
 320.
 $ 3326. $ 3812.
 2019 long-term debt $ 37.
 note 7 acquisitions.
 short-term borrowings bank obligations $ 58. 2 $ 54. 3 30 2019 2018.
 weighted average interest rate 3. 7%. 5 0%.


consolidated financial statements union pacific corporation subsidiary companies references subsidiaries railroad company 201cuprr 201d 201crailroad 201d.
.
 class i railroad.
 31953 route miles pacific gulf coast ports midwest eastern.
 gateways mexican gateways.
 western two-thirds country coordinated schedules rail carriers freight pacific coast southeast southwest canada mexico.
 export import traffic gulf coast pacific coast ports mexican canadian borders.
 railroad subsidiaries affiliates reportable operating segment.
 commodity group net financial results segment.
 revenue commodity group millions 2010 2009 2008.
 agricultural
 automotive
 chemicals
 energy
 industrial products
 intermodal
freight revenues $ 16069 $ 13373 $ 17118
 revenues 896 770 852
 operating revenues $ 16965 $ 14143 $ 17970
 from customers. origination products outside.
 consolidated financial statements accounting principles.
 financial standards.
.
 statements union pacific corporation subsidiaries.
 investments affiliated companies 20% to 50% 50 % equity method.
 intercompany transactions eliminated.
 no majority-owned investments consolidation variable interest.
 cash equivalents investments maturities three months or less.
 reduced allowance doubtful accounts.
 based historical losses credit worthiness economic conditions.
 other assets.
 affiliated companies equity less 20% cost method accounting.


engineering plastics.
 founded 1987 leading producer pom south korea.
 venture celanese ticona 50% mitsubishi gas chemical company.
 10%.
 polyacetal ulsan compounding nylon pyongtaek participates polyplastics mitsubishi.
 world-scale pom facility nantong.
 polyplastics.
 leading supplier engineered plastics asia-pacific venture daicel chemical industries. 55% celanese ticona 45% 45 %.
 1964 producer marketer pom asia-pacific production japan taiwan malaysia china.
 fortron industries.
 producer polyphenylene sulfide automotive applications.
 1992 liability ticona fortron.
 kureha corporation.
.
 facility wilmington north carolina.
 combines sales marketing distribution compounding manufacturing celanese polymer kureha.
acetate.
 30% ownership three acetate ventures.
 nantong.
. kunming.
.
 zhuhai.
.
 china national tobacco corporation controls.
 30% cigarette production consumption largest fastest growing acetate tow products 2009 stanford economics.
 ventures leader acetate production supply cigarette producers.
 2009 expand acetate flake tow capacity nantong facility approval expansions 30000 tons.
 12 expansions earnings growth increased dividends.
 cash flow.
 $ 8 million expansions $ 9 million 2012.
 $ 12 million.
 second quarter year.
 cash dividends $ 78 million $ 71 million $ 56 million.
ownership china acetate ventures exceeds 20% account cost method accounting influence local government investment limitations involvement operations inability provide timely financial information accounting principles states.
 equity.
 hold indirect ownership infraserv groups germany industrial parks support tenants.
 table represents equity investments infraserv ventures december 31 2011.
 ownership %
 infraserv.
.
.


stock open market purchases privately transactions prevailing prices permitted securities laws legal requirements subject to stock price business market conditions factors.
 funding stock repurchases cash generated operations.
 fund stock repurchase program revolving credit facility future financing transactions.
 no repurchases series a b common stock three months ended december 31 2013.
 announced stock repurchase program august 3 2010.
 performance cumulative shareholder return series a b c compared 500 stock index peer group cbs network. warner.
 viacom.
 walt disney.
 assumes $ 100 invested december 31 2008 series a c s&p 500 index peer group companies reinvestment dividends years ended december 31 2009 2010 2011 2012 2013.
.
.216. 60 294. 49. 34 448. 31 638.
 100. 207. 32 287. 71 277. 416. 52 602.
 100. 198. 274. 281. 55 436. 89 626. 29
 100. 123. 45 139. 23 139. 157. 90 204. 63
 100. 151. 63 181. 208. 91 286. 74. 87
 compensation 2014 annual meeting.


.
 consolidated financial statements company implex operating since 2000 table summarizes estimated values reconstructive assets acquired liabilities assumed implant trauma products implex acquisition.
 merger agreement cash earn-out payments assets $ 23. sales growth 2006 products.
 current assets $ 23.
 property plant equipment.
 intangible assets amortization
 core technology 30 year.
.
 other assets.
 goodwill 61.
 assets acquired 210.
 current liabilities.
 deferred taxes 43.
 liabilities assumed 57.
 net assets acquired $ 153.
 total earn-out payments. $ 120 to $ 160 million.
. payments contingent consideration goodwill.
 assets acquired. shareholders current liabilities. deferred taxes. additional cost transaction resolution contingency liabilities.
 net assets acquired $ 153.implex acquisition accounted purchase method.
.
.
 implex results operations included company consolidated results devices orthopaedic april 2004 assets joint replacement surgical liabilities recorded estimated values.
 january 1 2003 instruments financial position long-lived assets property excess purchase price plant equipment.
 undeployed instruments goodwill.
 financial information allowances obsolescence.
 instruments cost less accumulated depreciation.
 financial position depreciation computed straight-line method.
 estimated lives preliminary purchase price product life cycles allocation.
 five years.
.
 accounting principles.
 interviews instruments impairment economic competitive events historical value.
.
 preliminary purchase recognized future cash flows allocation information less carrying amount.
 depreciation instruments recognized selling.
assurance administrative expense assumptions instrument cost 2003.
 technology revenues undeployed instruments development costs profitability prepaid expense.
 final obsolescence $ 54. 8 million december 31 2002 purchase price allocation vary administrative expense.
 final valuation instruments service.
 purchase price allocation new method accounting no later one year cost assets acquisition.
 estimates.
 allocate cost five years.
 change december 31 2003 earnings $ 26. million $ 17. million net tax $ 0. per diluted share.
 cumulative adjustment $ 55. 1 million net income taxes $ 34. million


2008 fasb issued.
 161 derivative instruments hedging activities amendment statement.
 133 disclosures objectives strategies derivative instruments.
 financial statements.
.
 credit risk contingent features hedged positions.
.
 effective november 15 2008 second quarter 2009.
.
 adoption financial condition results.
 financial information statistics three fiscal years september 27 2008 $ 24. 5 billion cash equivalents short-term investments increase $ 9. 1 billion 2007.
 cash operating activities $ 9. 6 billion proceeds common stock $ 483 million excess tax benefits stock-based compensation $ 757 million.
 offset acquisitions property equipment $ 1. billion business acquisitions $ 220 million intangible assets $ 108 million.
company 2019s cash exceeded net income deferred revenue subscription accounting iphone.
 short-term investment portfolio in highly rated securities minimum single-a.
 $ 11. 3 billion $ 6. 5 billion investments foreign subsidiaries in.
 dollar-denominated holdings.
 $ 117 million unrealized losses one to five years $ 11 million.
 hold investments recovery.
 declines fair value recognized in statement operations.
 balances cash short-term investments satisfy working capital expenditures liquidity requirements 12 months.
 cash payments for asset purchases $ 1. billion 2008 $ 389 million retail $ 702 million real estate acquisitions corporate infrastructure.
 anticipates $ 1. 5 billion for capital asset purchases 2009 $ 400 million retail. billion.
investments 24490 15386 10110
 2422 1637 1252
 509 346 270
 capital 20598 12676 8066
 9596 5470


third-party royalties expenses network infrastructure depreciation lease payments equipment data center costs salaries amortization intangible assets allocated overhead.
 contracts data center facilities rack space power.
 increased change 2014-2013 2013-2012.
 data center cost 10% 11% ( 11 %
 compensation cost benefits
 depreciation expense
 royalty cost
 amortization intangibles
 insignificant items
 change 21% ( 21 % ) 27% ( 27 %
 subscription revenue increased 2014 data center costs compensation cost deprecation expense royalty cost.
 data center costs higher transaction volumes marketing cloud creative cloud services.
 compensation cost additional headcount acquisition neolane.
 depreciation expense higher capital expenditures network center infrastructure.
 royalty cost subscriptions downloads.
subscription revenue increased 2013 due increased hosted server costs amortization purchased intangibles.
 costs data center costs higher transaction volumes marketing creative cloud services depreciation expense capital expenditures compensation headcount.
 amortization intangibles increased acquisitions behance neolane.
 employee-related costs consulting training product support.
 revenue increased 2014 compensation benefits headcount third-party fees.
 support revenue increased 2013 third-party fees compensation additional headcount acquisition neolane.


stock performance graph 18 securities exchange act 1934 incorporated tractor supply company securities act 1933.
 compares stockholder return common stock december 28 2013 29 2018 returns s&p 500 s&p retail index.
 assumes $ 100 invested 28 2013 common stock reinvestment dividends.
 historical stock price performance not indicative future performance.
 12/28/2013/27/2014/26/2015/31/2016 12/30/2017/29/2018
 tractor supply company $ 100. 104. 115. 117.
. 115. 116. 129. 157. $ 149.
&p retail index. 111. 140. 148. 193. $ 217.


equity investment.
 business segment earnings millions $ 207
 pnc 2019s share blackrock earnings 23% 23 % 33% 33 %
 pnc 2019s investment billions $ 5. 8 $ 4. 2
 investment billions. includes earnings income taxes.
.
 blackrock/barclays 2009 acquired bgi barclays bank $ 6. 65 billion cash 37566771 shares blackrock stock.
 amendments stockholder agreements pnc.
 transfer restrictions effective.
 stock purchase agreement 3556188 shares series d preferred stock $ 140. 60 per share $ 500 million.
 january 31 2010 series d stock converted to series b stock.
 value investment blackrock increased increase equity.
 $ 1. 076 billion pretax gain fourth quarter 2009.
december 31  2009 ownership blackrock common stock 35%.
 income pretax gains $ 98 million 2009 $ 243 million 2008.
 gains mark-to-market adjustment decrease market value.
 exchange agreement blackrock december 26 2008.
 restructured ownership blackrock equity economic interest.
 limitations voting rights agreements.
 exchange agreement merrill lynch merger bank of america merrill lynch january 1 2009.
 restructured ownership blackrock equity.
 exchange completed february 27  2009.
 obligation shares replaced series c preferred stock.
 acquired 2. 9 million shares series c stock blackrock common shares.
 pnc accounts preferred shares fair value offsets impact obligation.
 blackrock stock balance sheet.
valuation blackrock series c stock note 8 financial statements.
 pnc accounts investment blackrock equity earnings reduced due exchange blackrock common stock c stock.
 not pnc 2019s blackrock earnings.
 pnc ownership blackrock increased exchange merrill lynch blackrock common stock.
 share blackrock common stock higher blackrock 2019s equity earnings.
 transactions exchange agreements affect right dividends.


oil gas activities future cash flows oil gas reserves 2007 2006 2005 sales transfers oil gas production transportation administrative costs $ 4887 5312 3754 prices production costs 12845 1342 6648.
 2007 2006 2005
 sales transfers oil gas costs -4887 -5312 -3754 3754
 12845 -1342 1342 6648
 extensions discoveries recovery 1816 1290 700
 development costs 1654 1251 1030
 development costs -1727 -527 -552
 estimates 1319
 sales minerals 23
 accretion discount 1726 1882 1124
 income taxes -6751 -660 -6694
 -12 307
 change 4977
 8518 10601
 end year 13495 8518 10601
discontinued 2013 -216 216 162


derivative instruments market risk.
 dividends $ 0. 92 per share $ 637 million paid 2007.
 dividend $ 0. 24 cents per share payable march 10 2008 february 20 2008.
 liquidity capital resources cash flow credit facilities debt equity capital markets.
 investment grade credit ratings.
 senior unsecured debt rated investment grade.
 bbb+.
 reaffirmed july 2007 western acquisition.
 short-term long-term liquidity operations capital spending stock repurchase debt maturities.
 $ 3. 0 billion revolving credit facility may 2012.
 december 31 2007 no borrowings commercial paper.
.
 july 26 2007 universal shelf registration statement securities exchange commission issue sell debt equity securities.
cash-adjusted debt-to-capital ratio 22 percent at december 31 2007 six percent year-end 2006.
 includes $ 498 million debt serviced united states steel.
.
 long-term debt due one year $ 1131 $ 471
 $ 7215 $ 3532
 1199 2585
 funds
 $ 19223 $ 14607
 7215 3532
 funds
 24495 $ 15554
 cash-adjusted debt-to-capital ratio 22% % 6% ( 6 % )
 $ 1. billion revenue bonds parish.
 proceeds disbursed garyville refinery expansion.
 trusteed funds noncurrent assets consolidated balance sheet as december 31 2007.


manufactures systems order backlog customer commitments.
 orders authorizations accepted shipment dates next 12 months contractual service revenue maintenance fees 12 months.
 backlog october 26 27 2014 2013 millions percentages.
 silicon systems group $ 1400  48% 48 % $ 1295  55% 55 %
 global services 775 27% 27 % 591 25% 25 %
 20% 361 15% 15 %
 energy environmental solutions 149 5% 5 % 125
 $ 2917  100% 100 % $ 2372
 backlog not indicative sales customer changes delivery cancellation orders.
 delay.
 delays reduction backlog business results.
 assembly test integration proprietary commercial parts components subassemblies systems.
implemented distributed manufacturing model in countries united states europe israel singapore taiwan assembly at customer sites.
 uses vendors supply parts assembly services.
 not always possible.
 key parts obtained from single.
 costs risks manufacturing service interruptions selecting qualifying alternate suppliers monitoring financial condition maintaining inventories qualifying new parts locating manufacturing operations close to suppliers customers.
 growth strategy requires new products expansion markets.
 investment in new products before demand.
 works with customers design systems processes technical production requirements.
 product development engineering organizations in united states europe israel taiwan china.
 outsources rd&e activities outside india singapore.
 process support demonstration laboratories in united states china taiwan israel.
investments rd&e $ 1. 4 billion 16 percent 2014 $ 1. 3 billion 18 2013 $ 1. 2 billion 14 percent 2012.
 13 percent net sales rd&e five years.
 maintains programs automation materials research environmental control.


financial expectations 2013 cautious economic environment industrial production grows 3% volume exceed 2013.
 growth earnings exceed 2013 pricing gains network improvements productivity initiatives.
 free cash flow 2014 lower 2013 operations offset additional cash $ 400 million income taxes capital spend higher dividend payments.
 operations revenues 2011.
 freight revenues $ 20684 $ 19686 $ 18508 5% 5 6% 6 %
 other revenues
 $ 21963 $ 20926 $ 19557 5% 7% 7 %
 freight revenues six commodity groups.
 vary volume.
 price traffic mix fuel surcharges.
 contractual incentives volumes reductions freight revenues.
 recognize revenues.
 allocate revenues transit time recognize expenses.
revenues include subsidiaries commuter rail accessorial equipment services.
.
 freight revenues five commodity groups increased 2013.
 agricultural products.
 increased 5% core pricing gains business automotive logistics management.
 volume flat growth automotives frac sand crude oil domestic intermodal declines coal grain.
 revenues four six commodity groups increased 2012.
 coal agricultural declined.
 franchise diversity growth markets automotive manufacturing declines.
 increased 7% 7 % core pricing gains higher fuel cost recoveries.
 improved recovery provisions prices.
 programs revenues $ 2. 6 billion $. billion $. billion 2013 2012.
 surcharge flat price.
 rising fuel prices more shipments increase 2011 to.
2013 revenue increased 2012 contract revenue subsidiaries.
 2012 2011 higher subsidiaries.
 assessorial revenues container revenue intermodal shipments.


mississippi.
 income 2008 decreased $ 12. million higher operation maintenance expenses lower income higher depreciation amortization expenses offset higher revenue.
 2006 increased $ 19. million higher revenue lower expenses depreciation amortization.
 revenues fuel expenses gas power expenses regulatory charges.
 analysis change net revenue 2008 2007.
.
 2007 net revenue $ 486.
 costs.
 revenue.
 base revenue.
 reserve equalization.
 wholesale revenue.
.
 2008 net revenue $ 498.
 costs variance power plant costs recovered management rider.
 net income return equity remainder offset operation maintenance expenses depreciation expenses taxes.
 recovery.
 rider revenue variance storm damage rider october 2007.
 revenue operation maintenance expense no effect net income.
base revenue formula rate plan increase 2007.
 local rate regulation.
 reserve equalization variance entergy system.


clawback improbable.
 company records deferred interest liability cash allocations revenue recognition criteria.
 2017 2016 $ 219 million $ 152 million deferred interest.
 paid employees.
 timing recognition performance fee revenue unknown.
 changes deferred interest liability 2017 2016.
 balance $ 152 $ 143
 increase unrealized allocations 75
 performance fee revenue
 balance $ 219 $ 152
 2017 2016 2015 performance fee revenue totaled $ 594 million $ 295 million $ 621 million.
 technology risk management recorded positions.
 2017 2016 risk management revenue totaled $ 677 million $ 595 million $ 528 million.
 adjustments initial estimates immaterial revenue record performance fee revenue thresholds exceeded clawback improbable.
.
revenue contracts customers.
 2014 financial accounting standards board issued standards update.
 outlines model revenue supersedes current guidance.
 changes accounting contract costs revises criteria principal agent.
 key changes revenue recognition revenue contracts costs.
 significant distribution costs net against revenues expense gross basis.
 adopted 2014-09 effective january 1 2018 retrospective 2016 2017 restated future filings.
 cumulative effect adjustment 2016 earnings.
 expects net gross revenue $ 1 billion gross expense 2016 2017.
 operating margin decline adoption.
 no material impact adjusted operating margin.
 accounting pronouncements december 31 2017 note 2 accounting policies consolidated financial statements part ii item 8.
.
 market.
 investment advisory administration fees value performance fees returns.
december 31  2017 company investment fees based on aum investment funds.
 equity market prices interest rates spreads foreign exchange rates lower fees.
.
 leading investment management firm blackrock devotes resources identifying market risks.
 board adopted guidelines review investments audit committee board.
 blackrock exposed equity market price interest rate/credit spread foreign exchange risk.
 sponsored investment products real assets private equity hedge funds.
 co-investment performance track record hedge deferred compensation plans regulatory purposes.
 seed capital hedging program swaps hedge market interest rate exposure.
 december 31 2017 outstanding return swaps $ 587 million.
 no outstanding interest rate swaps.


holdings.
 2013 10-k annual report state income tax returns examination 3 to 5 years after filing.
 impact federal changes one year after notification.
 state income tax returns examination litigation.
 examination foreign jurisdictions.
 statutes limitations 3 to 5 years.
 australia canada france germany ireland italy japan puerto rico switzerland united kingdom.
.
 authorized issue 250 million shares preferred stock none issued outstanding december 31 2013.
 numerator basic diluted earnings net earnings.
 denominator basic earnings weighted average shares.
 diluted shares adjusted dilutive stock options equity awards.
 reconciliation weighted average shares.
 years december 2011
 average shares net earnings per share 169.
 dilutive stock options equity awards..
 shares diluted net earnings 171. 176. 188.
 earnings 169. 6 174. 9 187. dilutive stock options equity awards. earnings 171. 176. 188. 2013 3. million options not included greater market price.
 2012 2011 11. 9 million 13. 2 million options not included.
 2013 repurchased 9. 1 million shares common stock average $ 78. per share total cash outlay $ 719. million.
 january 1 2014 new share repurchase program purchases $ 1. billion no expiration date.
 purchases repurchase.
.
 design develop manufacture market orthopaedic reconstructive implants dental implants spinal implants trauma products surgical.
 healthcare services.
 operations segments americas.
 pacific.
structure reportable segment information.
 management evaluates profit payment inventory step-up charges goodwill items global operations functions.
 research development engineering medical education brand management legal finance human resource. manufacturing intangible asset amortization.
 intercompany transactions eliminated profit.
 reviews accounts receivable inventory property plant equipment goodwill intangible assets. manufacturing.


return compares return standard poor 500 index dow jones health care providers index five years 2017.
 assumes investment $ 100 common stock s&p 500 peer group 2012 dividends reinvested.
 $ 100 152 214 267 307 377
 s&p 500 $ 132 150 153 171 208
 peer group $ 100 $ 137 175 186 188 $ 238
 stock price performance not indicative future.


lower sales volume cabinets divestiture arrow moores businesses unfavorable international plumbing products decreased sales two percent 2016.
 plumbing paints builders' hardware increased sales five percent 2015.
 favorable cabinets windows price increases north american windows plumbing products increased sales one percent.
 affected lower volume cabinets prices paints decreased two percent.
 increased volume plumbing windows builders' hardware.
 price increases north american.
 lower volume cabinets prices paints.
 gross profit margins 34. 2. 4. 5 percent 2017 2016 2015.
 impacted increased sales volume favorable selling prices commodity costs cost savings initiatives.
 negatively impacted increase warranty costs.
 expenses. percent 2017. 2016. 2015.
administrative expenses sales 2017 increased sales cost containment measures offset strategic growth investments stock-based compensation health insurance trade show costs.
 2016 strategic growth erp system higher insurance costs.
 table operating profit millions.
 2017 2016 2015 profit $ 1169 $ 1053 $ 914
 rationalization gain sale property equipment 2014
 profit $ 1173 $ 1075 $ 927
. 3%
. 6%
 profit margins 2017 2016 affected increased sales volume cost savings initiatives relationship selling prices commodity costs.
 2017 impacted strategic growth investments stock-based compensation health insurance show.
 2016 impacted increase warranty costs strategic growth investments erp system implementation costs higher insurance costs.
.
..
.
.
.
.


management net revenues equities $ 8. 26 billion 2011 2% higher 2010.
 volatility increased equity prices asia declined third.
 increase higher commissions fees higher market volumes.
 revenues securities services increased higher customer balances.
 equities execution revenues lower lower revenues shares.
 gain credit spreads borrowings $ 596 million $ 399 million $ 197 million 2011 $ 198 million 188 million $ 10 million 2010.
 services weakened global economies european sovereign debt risk banking system financial institutions.
 impacted economic prospects equity debt markets.
 downgrade credit ratings.
 financial institutions uncertainty.
 financial regulatory reform net revenues.
 operating expenses $ 12.billion 2011 14% lower decreased compensation benefits expenses lower revenues provisions litigation regulatory proceedings 550 million settlement.
 bank payroll tax nyse dmm rights $ 305 million.
 offset higher brokerage clearing exchange distribution fees higher transaction volumes equities.
 pre-tax earnings $. 44 billion 2011 35% lower 2010.
 investing origination loans.
 longer-term.
 debt securities loans public private equity securities real estate consolidated investment entities power generation facilities.
 results investing lending.
 2012
 equity securities
 debt securities loans
 net revenues
 expenses
 pre-tax earnings
.
 net revenues investing lending $. 89 billion $. 14 billion 2012 2011.
credit spreads equity prices.
 $ 408 million icbc gains $ 2. 39 billion $ 1. 85 billion debt securities revenues $ 1. 24 billion entities.
 equity markets.
 operating expenses $ 2. 67 billion.
 pre-tax earnings $ 3. 23 billion loss $ 531 million 2011.
 sachs report


decrease cash 2010 commercial paper repayments share issuance bm&fbovespa termination securities lending program 2009.
 offset distribution dow jones $ 607. 5 million increase share repurchases $ 548. 3 million.
 dilution issuance bm&fbovespa.
 increase cash 2009 due debt $ 2. 9 billion 2008 merger debt reductions $ 900. million.
 table debt outstanding december 31 2010.
 2011 3-month libor.
 2013. 40%
 2014. 75%
. 40%
. 40%
.
.
.
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. 2008 interest rate swap agreement variable interest obligation fixed 4. 72%72 % interest october 22 2008.
 terminated january 11 2011 loan repaid.
 march 2010 fixed rate notes due 2018.
 proceeds distribution dow jones index services.
 february 2010 interest rate swap agreement fixed 4. 46%. march 18 2010.
 maintained $ 1. 4 billion senior credit facility $ 420. 5 million term loan $ 945. 5 million revolving credit facility.
 terminated january 11 2011.
 commercial paper backed revolving credit.
 consolidated net worth $ 12. 1 billion.
 new $ 1. 0 billion-currency revolving credit facility.
 proceeds corporate purposes liquidity.
 increase $ 1. 8 billion.
 matures january 2014 prepayable.
 consolidated net worth test 30 2010 share repurchases special dividends $ 2. billion multiplied. 65.
 maintain 364-day secured line credit domestic international banks clearing house.
 temporary liquidity clearing firm default liquidity constraint default depositary disruption domestic payments system settlement.
 guaranty fund contributions.
 treasury securities government securities


added 1700 water 2000 wastewater.
 served 4200 water 1100 wastewater houston metropolitan regulated subsidiaries discontinued operations.
 amounts statistics tables refer on-going operations.
 table regulated businesses operating revenue 2013 customers estimate population served december 31 2013 operating revenues millions customers estimated population.
 new jersey operatingrevenues $ 638. 24. 6%. ofcustomers 647168 20. 1%. estimatedpopulationserved millions 2. 5 21. 7%. 7 %
 pennsylvania 571. 22. 0%. 666947. 7%. 18. 3%.
 missouri 264. 2%. 464232 14. 4%. 4.
 illinois 261. 7. 1%. 311464. 7%. 4%.
 california 209. 5 8. 1%. 173986.4%. 4 %. 2%. 2 %
 199. 7 7%. 7 %. 1%. 1 %. 4%. 4 %
 virginia 124. 8%. 8 %. 4%. 4 %. 2%. 2 %
 2268. 87. 5%. 5 % 2730350 84. 8%. 8 %. 3%. 3 %
 325. 12. 5%. 5 % 15. 2%. 2 %. 7%. 7 %
 2593. 100. 0%. % 3219499. %
 illinois-american water company.
.
 subsidiaries georgia hawaii iowa kentucky maryland michigan new york tennessee virginia.
 87. 5 % operating revenue 2013. 7 million customers seven states.
 no customer 10% annual operating revenue.
networks facilities water supply regulated businesses operate 1500 communities 16 states.
 assets include 87 dams 80 surface water plants 500 groundwater plants 1000 wells 100 wastewater facilities 1200 water facilities 1300 pumping stations 47000 miles mains pipes.
 regulated utilities own assets.
 land assets water.
 water public trust allocated contracts rights.
 maintaining reliability key.
 infrastructure renewal programs states.
 rehabilitation replacement.
 water demands depends adequate supply.
 drought restrictions overuse


credit facilities subsidiaries maintain short-term credit arrangements working capital needs.
 $ 2. 9 billion 2015 $ 3. 2 billion 2014 sole use subsidiaries.
 borrowings $ 825 million 2015 $ 1. 2 billion 2014.
 commercial paper program.
.
 2015 2014 no commercial paper outstanding.
 april 19 2013 program.
 increased $ 2. billion.
 paper programs.
 issuance capacity $ 8. billion.
 commercial paper program credit facilities liquidity requirements.
 trade receivables financial institutions.
 arrangements receivables without recourse.
 short-term removed from consolidated balance sheets.
 servicing non-servicing.
 cash flows receivables.
 2014 2013 $ 888 million $ 120 million $ 146 million.
 net proceeds included consolidated statements.
see item 8 note 23.
 sale accounts financial statements.
 $ 28. 5 billion 2015 $ 29. billion 2014.
 debt fixed.
 item 8 note 7.
.
-average all financing cost 3. 0%. 2015. 2%. 2014.
 item 8 note 16.
 fair value measurements statements.
 approval board directors.
 21 2014 filed shelf registration statement.
 securities exchange commission sell debt securities three-year period.
 debt issuances 2015 face value interest rate maturity.
 notes $ 500. 250%. % august 2015
 $. 375%. % interest payable annually february 2016.
 proceeds sale securities corporate purposes.
-average time maturity long-term debt 10. years 2014. 5 years 2015.
 no arrangements.

. dollar notes $ 500 1. 250%. 250 % august 2015 2017
. dollar $ 750 3. 375%. 375 % august 2015 2025
 subsidiaries maintain short-term credit arrangements working capital needs.
 $ 2. 9 billion december 2015 $ 3. 2 billion 2014 subsidiaries.
 borrowings $ 825 million 2015 $ 1. 2 billion 2014.
.
.
 2015 2014 no commercial paper.
 19 2013 program.
 increased $ 2. billion.
 programs.
 issuance capacity $ 8. billion.
 paper program credit facilities liquidity requirements.
 trade receivables unaffiliated financial institutions.
 arrangements without recourse.
 short-term removed consolidated balance sheets.
 servicing non-servicing.
cash flows impacted by trade receivables sold derecognized consolidated balance sheets outstanding unaffiliated financial institutions.
 receivables 2014 2013 were $ 888 million $ 120 million $ 146 million.
 net proceeds included in.
 8 23.
 sale.
 $ 28. 5 billion 2015 $ 29. 5 billion 2014.
 debt fixed.
.
.
 weighted-average all financing cost 3. 0%. 2015 3. 2%. 2014.
 8 note 16.
 fair value measurements.
 approval board directors.
 filed shelf registration statement.
 securities commission sell three-year period.
 debt issuances 2015 interest.
 $ 500. 250%. % 2015
 $ 750. 375%. % interest payable annually february 2016.
 net proceeds sale securities used for corporate purposes.
time maturity long-term debt. 8 years 2014. 5 years 2015.
 2022 no arrangements guarantees obligations.


acquisition third wave 2008 assumed operating leases corporate facility madison wisconsin effective through september 2014.
 future lease payments $ 5. million 2008.
 assumed license agreements patent rights.
 payments through 2011 $ 7. million.
.
 table summarizes obligations.
 less 1 year 1-3 years 3-5 years 5 years
 long-term debt obligations $ 38480 109436 327400 1725584 2200900
 58734 110973
 operating leases 18528
 purchase obligations 33176
 financing leases
 long-term supply contracts 3371
 private equity investment
 total contractual obligations $ 156571 $ 280309 454115 1811692 2702687
 $.4 million purchase obligations exclusive distribution service agreement united states sell service extremity mri systems.
 minimum inventory purchase obligations initial eighteen months.
 renegotiation market dynamics.
 merger cytyc assumed non-cancelable supply contracts.
 quality assurance sole source availability cost effectiveness components raw materials sole supplier.
 long-term supply contracts suppliers.
 minimum purchase commitment established.
 assumed private equity investment commitment limited liability partnership paid three years.
 include payable biolucent adiana earn-outs.
 working projects acquisitions strategic alliances.
 cash flow amended credit agreement funds operations next twelve months.
 longer-term liquidity contingent future operating performance financial covenants agreement.
 require additional capital fund capital expenditures acquisitions repay convertible notes.
holders convertible notes repurchase 13 2013 15 2017 2022 2027 2032 100% accreted principal amount.
 capital requirements.
 operating performance risk factors.
 affect long- term liquidity.


annual report-on debt markets liquidity.
 note 9.
 cash.
 $ 231. 1 million 2007 $ 203. 4 million 2006 $ 221. 1 million 2005.
 depreciation expense $ 53. 5 million 2007 $ 48. million 2006 $ 49. million 2005.
 capital spending.
 expenditures $ 61. 9 million 2007 $ 50. 5 million 2006 $ 40. 1 million 2005.
 efficiency cost-reduction production equipment replacements.
 2007 supply chain growth initiatives expansion manufacturing lower-cost regions emerging markets.
 cash credit facilities capital expenditure 2008.
 amortization expense $ 22. 2 million 2007 $ 3. 4 million 2006 $ 2. 7 million 2005.
 increase 2007 2006 acquisition.
 note 6 intangible.
snap-on stock repurchases dilution options conditions.
 2007 repurchased 1860000 shares common stock for $ 94. 4 million.
 offset by $ 39. 2 million option $ 6. million excess tax benefits.
 29 repurchase $ 116. 8 million common stock.
 purchase discretion subject conditions.
 repurchased 2616618 shares $ 109. million 2006 912100 $ 32. 1 million 2005.
 cash facilities share repurchases.
 2005 repaid $ 100 million. unsecured notes.
 repayment cash.
 paid quarterly cash dividends since 1939.
 2007 2006 2005 $ 64. 8 million $ 63. million $ 57. million.
 november 2007 increased quarterly cash dividend. to $ 0. 30 per share.
2006 board increased quarterly cash dividend 8% $. 27 per share $ 1. 08 year.
 2005 dividends common share $ 1. 11 $ 1. 08
 prior-year earnings 5. 5% 5. 5 %. 6%. 6 %. 2%. 2 %
. 6 %. cash operations funds credit facilities pay dividends 2008.
 no off balance sheet arrangements december 29 2007.


duke realty corporation report 2012 sold 60 acres land two transactions impairment charges $ 9. million.
 sales opportunistic not land development.
 administrative expenses increased $ 41. 3 million 2010 to $ 43. 1 million 2011.
 factors.
.
 overhead costs.
 wholly-owned development leasing.
 allocation service operations rental operations.
.
 increased $ 186. 4 million 2010 to $ 220. 5 million 2011.
 increased outstanding debt acquisition activities.
 $ 7. 2 million decrease capitalization interest costs properties criteria.
 no gains losses 2011.
 repurchased unsecured notes 2011 2013.
 paid $ 292. 2 million unsecured notes face value $ 279. 9 million.
 net loss extinguishment $ 16.unamortized deferred financing discounts accounting adjustments.
 2011 recognized $ 2. 3 million acquisition costs compared $ 1. 9 million 2010.
 recognized $ 1. million gain acquisition building 50%-owned $ 57. 7 million gain 2010 50% interest.
 accounting financial statements estimates assumptions assets liabilities contingent assets liabilities revenues expenses.
 estimates subjective business market conditions continually evaluated.
 2 policies.
 management assessed audit committee independent auditors.
 policies critical increase overhead costs 2010 due severance pay overhead reductions 2011.
 leasing activity increased wholly owned development activities.
 capitalized $ 25. 3 million $ 10. 4 million overhead costs 2011 $ 23. 5 million $ 8. 5 million 2010.
 overhead costs leasing 20. 6%.. overhead costs 2011 2010.


2017 company granted 440076 shares common stock 7568 units.
 vesting two to four years.
 fair value $ 58. 7 million compensation expense.
 dividends accrued paid vests.
 granted 203298 performance shares.
 fair value $ 25. 3 million compensation expense.
 vesting contingent performance market conditions.
 table summarizes restricted stock activity 2017.
 2016 1820578 98
 granted 650942
 vested
 cancelled
 31 2017 1559231
 total fair value restricted stock 2017 2016 2015 $ 66. 0 million $ 59. 8 million $ 43. 3 million.
 employees acquire shares stock after-tax payroll deductions periods six.
 purchased 90% closing price nasdaq.
 compensation expense recognized.
 2017 2016 2015 19936 19858 19756 shares stock issued employees.
 six-month holding.
 expense $ 0. 3 million 2017 $. 2 million 2016 2015.
 non-executive directors stock $ 100000.
 cash stipend $ 60000 closing price.
 19736 26439 25853 issued directors 2017 2016 2015.
 vesting restrictions.
 $ 2. 5 million. 4 million. million 2016 2015.


devon energy corporation subsidiaries financial statements 2014 methods assumptions values tables.
 fixed-income securities.
 treasury obligations bonds asset-backed securities.
 actively traded redeemed demand.
 values based quoted market prices.
 commingled funds long-term bonds.
 treasury securities.
 not actively traded.
 based net values investment managers.
 equity securities commingled global equity fund large mid small stocks.
 redeemed not actively traded.
 based net values investment managers.
.
 large small international.
 actively traded redeemed demand.
 based quoted market prices.
 commingled fund large capitalization companies.
 redeemed not actively traded.
 values based net asset values investment managers.
 commingled short-term investment funds.
securities redeemed not actively traded.
 values based net values managers.
 devon 2019s hedge fund investments traded mutual fund long short.
 hedge fund not traded subject redemption restrictions.
 hedge fund manager.
 changes level 3 assets.
 31 2009 $ 51
 purchases 3
 returns
 2010
 purchases
 returns
 31 2011 $ 90


american tower corporation subsidiaries financial statements mexico litigation spectrasite communications .
 involved lawsuit against former mexican subsidiary sci sold 2002 merger 2005.
 lawsuit concerns terminated tower construction contract agreements wireless carrier mexico.
 primary issue sci liable mexican carrier.
 trial appellate courts found sci no liability mexican courts jurisdiction.
 intermediate appellate court new decision liability sci september 2010.
 identified potential damages $ 6. 7 million  company filed new appeal decision.
 unable determine liability sci estimate share potential liability.
 xcel litigation june 3 2010 horse-shoe capital filed complaint supreme court new york sale xcel to american tower mauritius subsidiary.
complaint atmauritius ati company defendants dispute concerns timing distributions atmauritius horse-shoe $ 7. 5 million holdback escrow $ 15. 7 million tax escrow account.
 complaint seeks release holdback escrow $ 2. 8 million $ 12. million tax escrow account.
 seeks punitive damages $ 69. million.
 company filed 2010 timing.
 punitive damages meritless.
 parties filed cross-motions summary judgment 2011 court granted motion no obligation release tax escrow until 2013.
 claims pending.
 company lawsuit.
 leases land office tower space leases.
 renewal options increases lease payments.
 escalation clauses recognized.
 future rental payments renewal periods site revenues.
payments 31 2010.
 257971
 254575
 251268
 246392
 2015 238035
 2584332
 3832573


solexa.
 26 2007 assumed 4489686 warrants.
 28 2008 401362 warrants exercised cash proceeds $ 3. million.
 252164 warrants expired.
.
 price expiration date
. 4/25/2010
.
. 11
. 1/19/2011
. 2/15/2014
 21359850
 warrants convertible senior notes.
 $ 400. million 2007 repurchased 11. 6 million shares common stock $ 201. million.
 20 2007 rule 10b5-1 trading plan repurchase $ 75. million common stock six months.
 repurchased 3. 2 million shares $ 50. million.
 30 plan expired.
 october 23 2008 authorized $ 120. million stock repurchase program.
 repurchased 3. 1 million shares $ 70.8 million plan open-market transactions rule 10b-18 securities exchange act 1934.
 december 28 2008 $ 49. 2 million authorized future repurchases.
 stockholder rights plan may 3  2001 board declared dividend one preferred share purchase right each share common stock.
 dividend payable may 14  2001 stockholders.
 right entitles purchase one unit-thousandth junior participating preferred stock $ 100 per unit.
 rights exercisable person group acquires ownership 15% common stock offer.
 right purchase shares market value two times exercise price.
 acquired merger business combination transaction right purchase shares acquiring.
 consolidated financial statements 2014


consolidated financial statements 196 jpmorgan chase co. /2014 annual report credit funding adjustments fair value instrument adjustments firm estimates reflect counterparty credit quality creditworthiness impact funding 2022 credit valuation adjustments 201d reflect credit quality counterparty derivatives.
 necessary market price not indicative credit quality.
 few derivative contracts listed exchange derivative positions valued models market parameters.
 adjustment credit quality derivative counterparty.
 firm estimates derivatives cva scenario analysis expected credit exposure estimates losses counterparty credit event.
 key inputs expected positive exposure counterparty probability default event estimated recovery rates differences risk.
 estimates derivatives cva benchmark interest rate.
 2022 credit quality firm valuation liabilities fair value.
dva calculation methodology consistent with cva incorporates jpmorgan chase 2019s credit spread probability default.
 estimated current fair value consistent with derivative dva methodology.
 2022 incorporates impact funding valuation estimates.
 fair value of collateralized derivatives estimated future cash flows overnight indexed swap rate.
 2013 implemented fva framework impact funding estimates for uncollateralized derivatives structured notes.
 framework leverages cva dva calculation methodologies considers credit risk funding costs.
 inputs expected funding requirements from positions arrangements assets estimated market funding cost liabilities hypothetical market funding cost transfer.
 fva 2013 recorded $ 1. 5 billion loss in principal transactions revenue.
 loss uncollateralized derivative receivables credit risk incorporated in valuation liabilities.
table provides credit funding adjustments excluding hedging activities consolidated balance sheets.
 december 31 millions 2014 2013
 derivative receivables balance $ 78975 $ 65759
 71116 57314
 dva fva
 structured notes balance 53772 48808
 dva fva 1152
 78975 65759 57314 cva 2674 2352 dva fva notes 53772 48808 fva balances net cva dva/fva.
 positive cva dva/fva negative.
 december 31 2014 2013 included derivatives $ 714 million $ 715 million.
 structured notes financial instruments embedded derivatives measured fair value.
 december 31 2014 2013 included $ 943 million $ 1. billion financial instruments no embedded derivative fair value option.
elections note 4.
 december 31 2014 2013 notes 1. billion.


business metrics december 31.
 billions 2003
 loan lease receivables $ 43. $ 37. 16% 16
 lease receivables 41.
 automobile origination volume 27.
 market share. 1%. 7%.
 30+ day delinquency rate.
 charge-off ratio.
 overhead ratio
.
 bank new york tri-state top five texas payment liquidity investment insurance credit products affluent.
 serves 326000 small businesses 433000 affluent. 6 million mass-market consumers.
 14% increase core deposits 77% increase cross-sell chase credit products.
 mortgage home equity originations $ 3. 4 billion $. 7 billion.
 credit cards 77000 23% 23 % customers credit cards.
 compensated home finance credit card loans.
growth decreased deposit spreads increased credit costs 80% decline earnings 2002.
 offset 8% increase deposits.
 revenue $ 2. 6 billion decreased.
 net interest income 11% $ 1. 7 billion lower interest rate.
 noninterest revenue decreased 6% 6 $ 927 million lower deposit fees debit card fees one-time gains.
 profits.
 operating expense $ 2. 4 billion increased 7% 7 % 2002.
 investments technology higher compensation expenses severance costs.
 largest.
 originator automobile loans leases. million accounts.
 automobile loan lease originations 10% $ 27. billion.
 loan lease receivables $ 43. billion 16% higher.
 declining sales market share improved. 1%. 2003.
 growth strategy.
2019s car manufacturers 2003 growth increased 12700 2002 to 13700 2003.
 earnings $ 205 million 23% higher 2002.
 revenue growth improved efficiency.
 revenue 23% $ 842 million.
 net interest income 33%.
 loans leases.
 operating expense $ 292 million increased 18%.
 auto finance loans origination volume incentives.
 overhead ratio improved 36% 2002 to 35% 35 % 2003 revenue growth productivity expense management.
 credit costs increased 18% $ 205 million 32% increase loan lease receivables.
 credit quality lower net charge-off ratio 30+ day delinquency rate.
 education finance government loans higher.
.
 origination volume $ 2. 7 billion increase 4%.
.
.
.
.


consolidated financial statements 2016 ppg annual report form 10-k 1.
 accounting policies principles consolidation include accounts ppg industries.
 subsidiaries.
.
 ppg owns 50% voting stock subsidiaries.
 subsidiaries ownership less 100% outside shareholders noncontrolling interests.
 investments ppg owns 20% to 50% 50 % voting stock operating financial policies equity method accounting.
 ppg share earnings losses equity affiliates included statement income equity.
 transactions ppg subsidiaries eliminated.
 estimates financial statements.
 estimates assumptions assets liabilities income expenses.
 include fair value assets acquired liabilities assumed purchase price.
 outcomes differ.
 revenue recognition recognizes revenue earnings process complete.
revenue recognized segments goods shipped risk loss customer services rendered.
 shipping handling costs reported in sales.
 shipping handling costs included in depreciation amortization.
 selling administrative costs selling customer service distribution advertising costs support finance law human resources planning.
 distribution costs storage finished goods owned leased warehouses facilities.
 advertising costs expensed as incurred totaled $ 322 million $ 324 million $ 297 million in 2016 2015 2014.
 research development employee related as incurred.
 $ 487 $ 494 $ 499
 less depreciation facilities
 $ 466 $ 476 $
 legal costs acquisition divestiture litigation environmental regulation patent trademark protection.
.
 operations local.
 assets liabilities translated.
year-end exchange rates income expenses translated average exchange rates.
 unrealized foreign currency adjustments deferred loss 2019 equity.
 cash equivalents liquid valued cost fair maturity three months less.
 short-term investments high credit accrued interest maturities three months one year.
 purchases sales investing.
 marketable equity securities investment recorded fair market value assets balance sheet changes fair market value.


performance graph shows return common stock standard&p 500 index dow jones financials index december 31 2009 2014.
 e*trade financial corporation 100. 90. 45. 50 111. 137.
 s&p 500 index 100. 115. 117. 136. 180. 205.
 dow jones financials index 100. 112. 98. 124. 167. 191.


eog resources.
 financial statements capitalized costs oil gas.
 table crude oil gas december 31 2018.
 proved properties $ 53624809 $ 48845672
 unproved properties 3705207
 57330016 52555741
 accumulated depreciation depletion amortization -31674085
 capitalized costs $ 25655931 $ 23364494
 oil gas property acquisition exploration development.
 extractive industries accounting standards.
 acquisition.
 exploration additions wells.
 development facilities.


eastman notes financial statements income translation adjustment unfunded pension liability unrecognized loss service cost unrealized gains cash flow hedges losses investments balance december 31 2004 155 248 8 2 103.
 adjustment pension liability unrecognized loss service cost taxes unrealized gains cash flow hedges losses investments
 balance december 31 2004 -248 -8 -2 2 -103
 change -94 94 -7 -97
 balance december 31 2005 -255 255 ) -5 -1 -200 (
 change
. balance december 31 2006 207 -1 -93 ( )
 adjustments. -288 -81 81
 balance december 31 2006 -288 -6 -1 -174
.
balance december 31  2006 121 ( 207 ) 6 ) 1 ) 93 ) adjustments.
 207 288 ) 81 6 ) 1 174 cumulative translation adjustment income net taxes.
 adjustment earnings subsidiaries no taxes.
.
 compensation plans 2002 long-term compensation plan grants nonqualified stock options incentive stock options appreciation rights performance shares.
 options granted may 2 2007 purchase eastman common stock option price 100 percent per share fair market value.
 maximum 7. 5 million shares stock grants.
 compensation grants nonqualified stock options restricted shares nonemployee members board.
 first day directors initial term service annual meeting.
 options may 1 2007 purchase eastman common stock option price fair market value.