mondavi produces markets sells premium super-premium fine california wines.
 leading premium super-premium wine brands volume united states.
 acquisition robert mondavi supports portfolio growth super-premium fine wine.
 recognition globally.
 majority sales united states.
 intends leverage brands.
 expand distribution.
 growth philosophy.
 acquisition provides presence fine wine sector distribution international markets.
 supports strategy growth strengthens competitive position core markets.
 growth opportunities for premium super-premium fine wines united kingdom states other markets.
 paid cash robert mondavi shareholders $ 1030. 7 million.
 expects direct acquisition costs $ 11. 2 million.
 purchase price financed with borrowings 2004 credit agreement.
acquired assets recorded fair value.
 purchase price based future results robert mondavi operating cost synergies.
 mondavi reported constellation wines segment consolidated statement income.
 table summarizes estimated values assets liabilities.
 obtaining valuations refining restructuring plan 2006.
 allocation purchase price subject to refinement.
 estimated values december 22 2004.
 current assets 494788
 property equipment 452902
 178823
 trademarks 186000
 goodwill 590459
 assets acquired 1902972
 liabilities 309051
 long-term liabilities
 861111
 assets
 trademarks not subject amortization.
 goodwill deductible tax.
 robert mondavi winery properties assets sale february 28 2005.
 28 2006 $ 150 million to $ 175 million.
gain loss sale assets.
 hardy acquisition march 27 2003 acquired control hardy april 9 2003 acquisition hardy capital stock.
 50% ownership pacific wine partners joint venture 2001.
 201chardy acquisition. australia wine producers interests winer vineyards regions new zealand united states market sales operations.
 consideration paid hardy shareholders $ 1137. 4 million.
 direct acquisition costs $ 17. 2 million.
 march 27 2003.
 $ 1. 6 million reduction purchase price interest.
 interest expense consolidated statement income year february 29 2004.
 cash purchase price $ 1060. mil financed $ 660. million borrowings $ 400. million


equity securities three months december 31 2010 repurchased 1460682 shares common stock $ 74. 6 million  including commissions fees stock repurchase program shares purchased average price paid share dollar value millions.
 average price share dollar value
 october 2010 722890 $. $ 369.
 november 400692 $. $ 348.
 december 2010 337100 $. $ 331.
 fourth quarter 1460682 $. $ 331.
 repurchases $ 1. 5 billion stock repurchase program february 2008.
 management authorized purchase shares open market prevailing prices securities laws subject market conditions.
facilitate repurchases rule 10b5-1 exchange act insider trading laws blackout.
 program discontinued.
 december 31 2010 repurchased 1122481 shares common stock $ 58. 0 million.
 february 11 2011 repurchased 30. 9 million shares $ 1. 2 billion.
 manage remaining $ 273. 1 million market conditions.


treasury.
 unamortized discount debt costs amortized 2022.
.
 issued $ 1. 5 billion unsecured obligations.
 debt securities $ 750 million 4. 25%. 2021 $ 750 million repaid 2013 maturity.
 proceeds repurchase blackrock 2019s series merrill lynch.
.
 interest 4. 25%. notes 2021 payable semi-annually may november 24 $ 32 million per year.
 redeemed maturity price.
 unamortized discount debt costs amortized 2021.
.
 2009 issued $ 2. 5 billion unsecured.
 three $. billion 2. 25%. notes repaid 2012 $ 1. billion 3. 50%. repaid 2014 $ 1. billion 5. notes 2019.
proceeds offering borrowings cp program acquisition barclays global investors 2009 corporate purposes.
 interest 2019 notes $ 50 million payable annually june december 10.
 redeemed maturity redemption price.
 unamortized discount debt costs amortized remaining term 2019.
.
 issued $ 700 million. unsecured unsubordinated notes september 15 2017.
 proceeds acquisition fund-of-funds business remainder general corporate purposes.
 interest payable semi-annually march september 15 $ 44 million per year.
 notes redeemed maturity redemption price.
 unamortized discount debt issuance costs amortized remaining term 2017 notes.
.
 leases office spaces agreements 2035.
 future commitments.
 134 133
 2018 131
 125
 2020
rent office equipment lease $ 136 million $ 132 million $ 137 million 2015 2014 2013.
.
 december 31 2015 company had $ 179 million capital commitments sponsored investment funds.
 private equity real estate infrastructure opportunistic.
 excludes commitments third-party.
 $ 179 million $ 38 million contingent commitments expired.
 timing funding unknown callable.
 unfunded commitments not recorded consolidated statements.
 future commitments binding.
 intends additional capital commitments investment products.
.
 portfolio manager derivative transactions maximum potential exposure $ 17 million.
.
 business acquisitions.
 blackrock required payments performance targets.
 remaining contingent payments at december 31 2015 not significant statement financial included in other liabilities.


increased tax position temporary differences.
 2014 change tax accounting method 2008 repair utility plant.
 changes unrecognized tax benefits.
 positions december 31 2014 2013 unrecognized tax benefit $ 9444 $ 7439 effective tax rate.
 table changes valuation allowance.
 balance january 1 2012 $ 21579
 increases positions
 decreases
 31 $ 19520
 increases
 december 31 2013 $ 13555
 increases
 decreases -3176
 $ 10379
 discrete tax benefit $ 2979 entity re-organization market operations state net operating loss carryforwards valuation allowance.
 maintains noncontributory defined benefit pension plans.
 based years service.
 plans closed employees.
 hired 2006.
 2001 accrued benefit frozen sum upon termination retirement.
employees 2001 non-union 2006 5. 25%. base pay contribution plan.
 multiemployer plan.
 pension minimum employee retirement income act 1974 normal cost.
 additional contributions restrictions pension protection act 2006.
 increased contributions financial requirements.
 assets invested funds equity bond funds fixed income securities guaranteed interest contracts real estate funds trusts.
 pension expense deferred subsidiaries recovery utility services.
 unfunded noncontributory pension plans additional retirement benefits.


october 21 2004 hartford declared dividend $ 0. 29 per share payable january 3 2005.
 declared $ 331 paid $ 325 dividends 2004 $ 300 291 2003 $ 262 $ 257 2002.
 increased $ 179 december 31 2004.
 adoption sop 03-1 $ 292 unrealized gains quarter 2004 reclassification offset losses cash-flow hedging instruments.
 funded status pension postretirement plans returns market interest rates.
 declines value interest rates status.
 minimum pension liability december 31 2004 2003 after-tax reduction stockholders equity $ 480 $ 375.
 results operations.
 notes 15 16 consolidated financial statements.
 cash flow 2004 2003 2002.
 operating activities $ 2634
 investing activities
cash financing activities $ 477 $ 4608 $ 4037
 2014 end year $ 1148 $ 462 $ 377
 premium cash flows claim payments.
 decrease $ 1. 15 billion settlement macarthur litigation.
 financing decreased lower proceeds investment contracts sop 03-1 capital raising repayment commercial paper retirement debentures 2004.
 decrease financing investing.
 2003 2014 increase premium cash flows.
 financing increased capital raising 2003 asbestos reserve decreased repayments long-term debt lower proceeds investment contracts.
 increase financing investing.
 operating cash flows liquidity requirements.
 equity markets markets risk management.
 ratings competitive position insurance financial services.
 no assurance.
.
 august 4 2004 2019s hartford life.2019s debt insurance financial strength property-casualty life insurance subsidiaries.
 changed outlook negative stable.
 suit attorney marsh mclennan.
 2004 ratings agencies.
 october 22 revised outlook.
 property/casualty lines sector negative.
 november 23 financial strength credit ratings property-casualty insurance subsidiaries.
 life insurance corporate debt unaffected.


sysco defined benefit retirement plans.
 contributes multi-employer plans provides health care benefits retirees dependents.
 maintains retirement plan benefits retirement years service compensation.
 defined contribution 401 k plan contributions 50% first 6% compensation.
 contributions $ 28109000 2005 $ 27390000 2004 $ 24102000 2003.
 participants management incentive plan receive benefits supplemental executive retirement plan.
 nonqualified unfunded.
 maintains life insurance policies $ 138931000 2005 $ 87104000 2004.
 not.
 sysco sole owner beneficiary.
 projected benefit obligations $ 375491000 $ 264010000 contributions pension plans $ 220361000 $ 165512000 2005 2004 $ 214000000 $ 160000000 voluntary contributions plan 2005 2004.
2005 $ 134000000 pension plan.
 contributions due decreased discount rate increased pension obligation impacted pension status.
 2006 contributions retirement minimum voluntary contributions $ 66000000.
 contributions current year benefit payments.
 estimated 2006 contributions $ 7659000 $ 338000.
 future payments postretirement pension benefits.
 2006 27316000 338000
 2007 29356000
 2008 33825000
 2009 39738000
 2010 46957000
 years 355550000 4234000


pension plan investments master trust northern trust company.
 investments valued at fair value underlying.
 investments securities public exchanges valued at closing market prices no sale valued recent bid price.
 short-term investments cost fair value.
 investments registered investment companies common trust funds stocks bonds commodity futures valued market prices.
 majority assets equity securities higher returns.
 entail risks.
 balanced high quality debt securities.
 average quality rating exceeded aa.
 diversified invested in.
 treasury mortgage corporate securities intermediate average maturity.
 5 years.
 investment in securities union pacific prohibited.
 plan contribution plan non-union employees matching contributions.
 50 cents dollar contributed six percent compensation.
thrift plan contributions 14 2008 2007 13 2006.
 railroad retirement system employees covered.
 contributions expensed $ 620 million 2008 616 2007 615 million 2006.
 collective bargaining agreements postretirement healthcare life insurance employees.
 premiums expensed $ 49 million 2008 $ 40 million 2007.
 2008 2007 2006.
 rental income $ 87 $ 68
 net gain non-operating asset dispositions
 interest income
 sale receivables fees
 non-operating environmental costs
 $ 92


table contents.
 acquisitions dispositions plant closures.
.
 december 1 2016 company acquired 100% stock forli.
.
 leading thermoplastic compounder.
 acquisition increases global engineered materials platforms extends operational model expands project pipelines.
 business combination operations advanced engineered materials segment.
 financial information information.
 allocated purchase price assets liabilities estimated fair values.
 excess price recorded goodwill.
 calculated fair value assets income market cost approach.
 values determined inputs future cash flows discount rates royalty rates growth rates sales projections retention rates terminal values.
 purchase price allocation preliminary information subject to change information.
 final fair value adjustments.
 adjustments results.
 preliminary purchase price allocation softer acquisition december 1 2016 millions.

 cash equivalents 11
 receivables third 53
 inventories 58
 property equipment 68
 intangible assets 79
 goodwill 106
 other assets 33
 acquired 408
 trade payables third party -41
 debt -103
 deferred income taxes -30
 other liabilities -45
 liabilities assumed -219 (
 net assets acquired 189
 goodwill revenue operating synergies acquisition.
 deductible income tax.
 $ 23 million indemnity receivable tax.
 costs $ 3 million.
 net earnings loss 2% net earnings acquisition 2016.
.


loan commitments unfunded asset purchase agreements standby letters credit financing state street clients credit enhancements special purpose entities.
 loan commitments future.
 asset purchase agreements receivables securities december 31 2001 $ 8. 0 billion special purpose entities.
 standby letters credit payments.
 letters $ million december 31 2001.
 commitments subject credit policies reviews.
 collateral risk.
 89% loan commitments asset purchase agreements expire year.
 amounts represent future cash requirements.
 summary contractual credit-related-balance financial instruments december 31.
 indemnified securities loan 113047 101438
 loan commitments
 asset purchase agreements
 standby letters credit


value interest agreements 2007 2006 $ 3 million $ 1 million.
 company exposed credit loss nonperformance.
 minimizes credit risk institutions nonperformance.
 contracts distributed among financial institutions investment grade credit ratings credit risk.
 stockholders 2019 equity derivative instruments activity tax 31 2007 2006.
 2006 2005
 balance at january 1 $ 16  $ 2 $ -272
 fair value -6
 reclassifications earnings -61
 balance december 31 $ $ 16 $ 2
 net investment foreign operations 2006 hedges foreign currency.
 2006 entered zero-cost collar derivative against price fluctuations. 6 million shares sprint.
 second quarter 2006 received 1. 9 million shares embarq corporation.
 prices adjusted.
sprint nextel derivative not hedge.
. recorded net gain $ 99 million year december 31 2006 statements.
 2006 sprint nextel derivative terminated settled cash 37. 6 million shares converted common shares sold.
 received cash proceeds $ 820 million settlement sale. million.
 recognized loss $ 126 million sale remaining shares.
 recorded net gain $ 99 million.
 nextel communications.
 variable share forward purchase agreements hedge common stock.
 hedge shares.
 recorded $ 51 million gains year december 31 2005 change value variable forwards.
 settled fourth quarter 2005.
 cash equivalents sigma fund investments short-term investments long-term receivables accrued liabilities derivatives financing commitments.
 recorded consolidated balance sheets.
financial instruments long-term debt carried cost not 2019.


adoption sfas.
 123 company recorded compensation expense restricted stock awards vesting.
 employee forfeited award reversed expensed amounts forfeiture.
.
 compensation expense estimated awards.
 forfeitures recorded.
 2005 recorded pre-tax credit $ 2. 8 million accounting change compensation expense reduced.
 restricted stock awards outstanding 1 2005 anticipated forfeited.
 summary non-vested restricted stock activity.
 non-vested december 31 2006 $.
 issued.
.
 canceled.
 december 31 2007.
 $ 15. million unrecognized compensation cost non-vested awards.
 recognized. 6 years.
 total fair value restricted shares stock units vested $ 11. million $ 7. 5 million $ 4.million years 2007 2006 2005.
 shareholders approved 2002 reserved 5000000 shares common stock sale 85% fair market value one-year six-month periods.
.
 2002 purchase plan compensatory.
 august 2005 changed discount 5% discontinued look-back provision.
 not compensatory august 1 2005.
 year december 31 2005 recorded $ 0. 4 million compensation expense.
 december 31 2007 757123 shares available 2002 plan.
 salary deferral program employees service requirements.
 matches contributions additional contributions discretion.
 total contribution expense $ 5. 7 million. 2 million years 2007 2006 2005.


.
 december 2005 3m build lcd optical film manufacturing facility poland lcd-tv market.
 expects 2006 capital expenditures $ 1. 1 billion compared $ 943 million 2005.
 third quarter 3m acquisition cuno.
 acquired $ 1. 36 billion debt.
. $ 1. 27 billion cash $ 80 million debt repaid.
 two additional business combinations purchase price $ 27 million.
 consolidated financial statements.
 purchases 19 percent i&t innovation technology.
 purchase price $ 55 million 201cinvestments 201d.
 auction rate securities available-for-sale.
.
 not reclassified.
 proceeds 2003 $ 26 million sale 3m 2019s 50% ownership durel corporation rogers.
 additional purchases $ 5 million 2005 $ 10 million 2004 $ 16 million 2003.
 purchases include insurance equity investments.
 considering acquisitions investments alliances.
 financing 31.
 2005 2004 2003
 short-term debt 2014 $ -258 -215
 repayment -656 -868 -719
 proceeds
 change debt $ -485 -111 -440
 purchases treasury stock -2377 -685
 reissuances stock
 dividends
 distributions minority interests 2014 -76
 cash financing -3679
 debt december 31 2005 $ 2. 381 billion $ 2. 821 billion 2004 decrease retirement $ 400 million medium-term notes.
 no new long term debt issuances 2005.
 cash decrease short-term debt $ 258 million 90 days.
 repayment $ 656 million retirement $ 400 million.
 $ 429 million commercial paper issuances.
 19% capital 21% 21 % 2004.
 shelf registration medium-term notes program remarketable securities convertible note 8 financial statements.
-term program $ 1. 5 billion.
 issued $ 62 million.
 debt 2005.
 capacity $ 1. 438 billion.
 $ 350 million remarketable securities remarketed 2005.
 convertible notes value $ million december 31 2005.
 next put option november 2007-end 2005


begin late-2018 information technology infrastructure.
 entergy louisiana proposed recover cost customer charge phased 2019 through 2022.
 reached stipulation system modifications.
 july 2017 lpsc approved stipulation.
 recover undepreciated balance meters regulatory asset current depreciation rates.
 funds cash debt membership interest issuances bank financing.
 refinance redeem retire debt prior maturity.
 debt interest issuances require regulatory approval.
 subject issuance tests.
 capacity capital needs.
 receivables money pool december 31.
 2016 2015 2014
 11173 22503 6154 2815
 note 4.
 credit facility $ 350 million expire august 2022.
 issue letters credit against $ 15 million borrowing capacity.
 december 31 2017 no cash borrowings $.1 million credit.
 entergy louisiana party uncommitted credit obligations. 31 2017 $ 29. 7 million entergy louisiana.
 note 4 financial statements.
 entergy louisiana nuclear fuel company two facilities $ 105 million $ 85 million expire may 2019.
 2017 $ 65. 7 million loans entergy louisiana river bend.
 $ 43. 5 million letters credit commercial paper $ 36. 4 million loans waterford nuclear.
 note 4 financial statements.


refining wholesale marketing gross margin difference prices refined products costs crude oil purchased products manufacturing expenses depreciation.
 crack spread market prices refined products crude oil refining margin.
 fluctuate.
 calculate midwest chicago.
 gulf coast crack spreads.
 light louisiana sweet prices 6-3-2-1 ratio 3 2 distillate.
 refineries process sour crude oil discount sweet crude oil.
/sour differential refining wholesale marketing margin.
 larger sweet/sour differential refining wholesale marketing gross margin.
 2009 sweet/sour differential narrowed lower hydrocarbon demand.
 sour crude 50 percent 52 percent 54 percent crude oil processed 2009 2008 2007.
 table crack spreads midwest chicago gulf coast markets sweet/sour differential three years.
.

 chicago 6-3-2-1 $ 3. 52 $ 3. 27 $ 8. 87
. gulf coast 6-3-2-1 $ 2. 54 $ 2. 45 $ 6. 42
 sweet/sour differential $ 5. 82 $ 11. 99 11.
. crude types. 15% arab light 20% kuwait 10% maya 15% western canadian 40% 40 % mars.
 changes refining wholesale marketing gross margin impacted crude oil selling prices refined products commodity derivative instruments cost products manufacturing costs.
 driven energy maintenance costs.
 catlettsburg garyville refineries.
.
.
 retail marketing gross margin gasoline distillates difference price cost refined products impacts rm&t profitability.
factors competition seasonal demand wholesale supply economic activity weather impact gasoline distillate demand.
 refined demand increased until 2008 decreased petroleum prices economic ethanol.
.
 gasoline one percent distillate decline 12 percent from 2008.
 reduce product margin.
 gasoline distillate demand decreased three percent 2008 2007.
 gross margin less volatile.


december 19 2011 redeemed $ 175 million 6. 5%. notes due april 15 2012 $ 300 million 6. 125%. notes due january 15 2012.
 redemptions early extinguishment charge $ 5 million fourth quarter 2011.
 receivables securitization facility 2013 december 31 2012 recorded $ 0 $ 100 million secured debt.
.
.
 variable interest entities lease transactions.
 created lease transactions equipment facilities headquarters building no other activities assets liabilities lease transactions.
 right purchase assets fixed prices.
 options benefits not significant.
 maintain operate assets contractual obligations.
 no control fair value leased assets.
 power direct activities control economic performance.
 obligation absorb losses right receive benefits not primary beneficiary consolidate vies performance fixed-price purchase options not significant.
future minimum lease payments totaled $ 3. billion december 31 2013.
.
 leases locomotives freight cars.
 consolidated statements 2012 included $ 2486 million $ 1092 million depreciation $ 2467 million $ 966 million depreciation.
 charge income depreciation depreciation expense.
 future minimum lease payments capital leases non terms 2013.
 minimum leasepayments $ 4066 $ 2200
 interest
 94% capital lease payments locomotives.
 rent expense operating leases one month $ 618 million 2013 $ 631 million 2012 $ 637 million 2011.
 variable rental expense lease term.
 rentals sub-rentals significant.


part iii item 10.
 directors executive officers corporate governance part i 201celection directors governance 16 beneficial ownership reporting compliance proxy statement 2016 annual meeting.
 filed 120 days year.
 executive officers part i item 1.
.
 item 11.
 executive compensation 201ccompensation discussion analysis committee report proxy statement 2016 annual meeting.
 item 12.
 security ownership beneficial owners management stockholder matters ownership proxy statement 2016 annual meeting.
 table december 31  2015 equity plans plan category number securities issued outstanding options warrants rights weighted-average exercise price number securities future issuance equity compensation plans excluding plans 1442912. 4446967 item 13.
relationships transactions director independence 13 see transactions governance proxy statement 2016 annual meeting.
 14.
 accounting fees services 201caudit non-audit fees 201caudit committee pre-approval procedures proxy statement 2016 annual meeting.
 plan category issued options warrants rights weighted-averageexercise price issuance compensationplans
 equity compensation plans security holders 1442912 $.
 part iii item 10.
 directors executive officers corporate governance 201celection directors 201cnominees election board governance 16 beneficial ownership reporting compliance proxy statement 2016 annual meeting.
 filed 120 days close year.
 executive officers part i item 1.
.
 item 11.
compensation 11 201ccompensation discussion analysis committee report compensation proxy statement 2016 annual meeting.
 item 12.
 security ownership beneficial owners management stockholder matters proxy statement 2016 annual meeting.
 table december 31 2015 equity plans plan category securities issued options warrants rights weighted-average exercise price securities future issuance plans excluding 1442912 $ 86. 98 4446967 item 13.
 relationships transactions director independence transactions governance proxy statement 2016 annual meeting.
 item 14.
 accounting fees services 201caudit non-audit fees committee pre-approval procedures proxy statement 2016 annual meeting.


.
 expenses services increased 10% 2012 logistics management fees locomotive overhauls repairs.
 contract services increased $ 103 million increased demand transportation services logistics costs repair maintenance locomotives freight cars.
 road property rail ties ballast track material.
 depreciation up 1% 2012.
 longer service lives capital spending.
 expense.
 rental intermodal locomotive leases office rent.
 container costs logistics management increased automotive shipments $ 51 million increase freight car rental expense 2012.
 lower locomotive lease expenses expense.
 increased automotive intermodal shipments improved-cycle times rental expense.
 lower locomotive lease expense rental.
2013 expenses include taxes freight equipment damage utilities insurance personal injury environmental employee travel telephone software debt general.
 higher property taxes damaged freight property increased costs.
 safety lower liability personal injury reduced expense year-over-year costs.
 higher 2011 due to property taxes.
 personal injury expense increased 2012 liability reduction less 2011.
 non-operating items millions 2013 2012 2011 %.
 income $ 128 $ 108 $ 112 19 % 4 %
 interest expense
 income taxes 12 % 20 %
 increased higher gains real estate sales lease income $ 17 million settlement land lease contract.
 offset by interest tax refund.
 income decreased lower gains real estate higher environmental costs non-operating offset interest tax refund.
decreased lower interest rate 5. 7%. 6 0%. 2012
 increase-average debt $ 9. 6 billion 2013 9. 1 billion 2012 lower interest rate.
 lower interest rate 6. 0%. 2%. 2011 debt level.


cumulative return lkq corporation nasdaq stock market. peer group.
 12/31/2007 12/31/2008/31/2009/31/2010/31/2011/31/2012
 lkq corporation $ 100 $ 55 143 201
 nasdaq market. index $ 100 $ 59 86 98
 peer group $ 100  $ 83 139 $ 187 $ 210
 stock performance information material rule 14a section 18 securities exchange act 1934 incorporated securities act 1933 1934.
 common stock equity compensation plans december 31 2012 item 12 annual report form 10-k incorporated.


ansys.
 long-term incentive plan granted 100000 92500 80500 performance-based restricted stock units.
 based on performance shareholder return nasdaq composite index period employment.
 three-year period january 1.
 each stock unit relates one share company common stock.
 value 2012 2011 2010 estimated $ 33. 16 $ 32. 05 $ 25. 00 .
 monte carlo simulation model.
 fair grant date variables.
 share-based compensation expense recorded from grant date through.
 december 31 2012 employees earned 76500 restricted stock units issued first quarter 2013.
 compensation expense awards 2010 $ 2. 6 million $ 1. 6 million $ 590000.
 2014 $ 2. million $ 1. 2 million .
 monte carlo pricing model

 risk-free interest rate. 16%. 16 %. 35%. 35 %
 dividend yield 0%
 2014ansys stock price 28% 28 % 40% 40 %
 2014nasdaq composite index 20% 20 % 25% 25 %
. 80. 90
 correlation factor. 75. 70
 granted performance restricted stock units management employees maximum value $ 13. million annually three 1 2012.
.
.
 repurchase program increase stock repurchase program.
 repurchased. 5 million shares 2012 average per share $ 63. cost $ 95. million.
 2011 repurchased 247443 shares $ 51. cost $ 12. million.
. 5 million shares repurchase.
.
 adopted 1996 stockholders.
 amendment 2004. 6 million shares.
 2007.
purchase plan administered by compensation committee.
 offerings commence february 1 august 1 six months.
 employee shares 5% voting power participate.
 employee purchase shares payroll deductions to 10% cash compensation.
 maximum to 3840 shares adjusted by committee.
 accumulated payroll deductions used to purchase common stock last day equal to 90% fair market value first.
 purchase no more than $ 25000 common stock year.
 december 31  2012 1233385 shares issued 1184082 issued december 31  2011.
 total compensation expense $ 710000 $ 650000 $ 500000.


entergy corporation utility system energy new orleans provides electric gas service orleans city ordinances except service entergy louisiana.
 ordinances option orleans purchase electric gas utility properties.
 entergy texas certificate convenience necessity electric service 27 counties eastern texas franchises 68 municipalities.
 50-year franchises 25-year franchises.
 franchises expire 2013-2058.
 wholesale power sales.
 no distribution franchises.
 capability stations december 31 2011.
 total gas/oil nuclear
 entergy arkansas 4774 1668 1823 1209
 gulf states louisiana 3317 1980 974 363
 louisiana 5424 4265 1159
 mississippi 3229 2809
entergy new orleans 764 764
 texas 2538 2269 269
 system energy 1071
 total 21117 13755 5027 2261 74
 201cowned leased capability dependable load carrying capability operating conditions primary fuel.
 entergy system load capacity projections reviewed additional generating capacity interconnections.
 demand availability location economy.
 summer peak load averaged 21246 mw 2002-2011.
 long-term capacity resources 3000 mw less total peak.
 met capacity shortages short-term power purchases wholesale spot market.
 fall 2002 new resources requests proposals resources.
 long-term resource strategy capacity long-term resources owned contracted.
 "portfolio transformation strategy.
 nine years 4500 mw new long-term resources.
 transactions summer 2009.
summer 2009 transactions deactivations 500 mw short 2012 peak load reserve margin.
 remaining need nuclear uprate gulf limited-term resources.
 spot power


consolidated financial statements tax adopted fin 48 2007.
 statements.
 reconciliation unrecognized tax benefits.
 balance january 1 2007 $ 53
 additions additions reductions
 settlements
 balance december 31 2007 $ 70
 $ 57 million unrecognized tax benefits tax rate.
 positions twelve months.
 recognizes interest penalties unrecognized benefits.
 penalties less $ 1 million 2007.
 december 31 liability penalties interest $ 1 million $ 7 million.
 income tax returns.
 federal state international jurisdictions.
 concluded.
 federal income tax matters 2004.
 service examination.
 tax returns 2005 2006.
.
 tax examinations concluded 2002.
 concluded examinations jurisdictions.


compensation cost table expense programs 2018 2017 2016 awards retirement-eligible employees $ 669 659 555 deferred cash awards performance units 202 354 336 expense awards 435 474 509.
 millions 2018 2017 2016
 retirement $ 669 659 555
 amortization deferred cash awards 354 336
 deferred stock awards 474 509
 incentive compensation 640  694 710
 $ 2021 $ 2251 $ 2183
 stock awards.
 accrued compensation.
 amortization unvested awards non-retirement-eligible employees.


production early 2012.
 output first line contracted sale long-term agreement.
 march 2011 joint venture thai beverage beverage container manufacturing facility vietnam production first quarter 2012.
 acquisitions.
 october 2011 acquired interests qmcp gain $ 9. 2 million.
 constructing new beverage container facility first quarter 2012.
 2010 north american manufacturer.
 january 2011 acquired european supplier aluminum aerosol containers bottles.
 note 3 financial statements.
 sales long-term contracts aerospace technologies segment cost-to-cost.
 2011 contract mix 60 percent cost-type contracts 33 percent fixed-price contracts.
 time material contracts.
 contracted backlog december 31 $ 897 million 50 percent fixed price contracts.
 aerospace technologies contract revenue cost progress completion.
contract payment schedules limitations funding sales accounts include earned not billed.
 return on average invested capital economic value added before diluted earnings per share cash flow free cash flow.
 measures adjusted consolidation costs acquisitions dispositions.
 nonfinancial measures production efficiency spoilage rates quality control environmental health safety statistics production sales volumes utilization sustainability.
 measures performance contract revenue fees proposal win rates backlog.
 operations consolidated sales earnings.
 2010 2009
 net sales $ 8630. $ 7630. $ 6710.
 net earnings ball corporation 444.
 increase net sales 2011 driven demand metal packaging improved beverage container volumes consolidation latapack-ball acquisition joint ventures extruded aluminum businesses improved aerospace program performance.
 business segment net earnings corporation discontinued operations plastics consolidation debt refinancing equity earnings gains acquisitions.
 measures.
 higher sales due acquisitions.
 higher net earnings $ 105. 9 million equity gains.


american airlines.
 financial statements 2014 funding relief pension plans losses market slide 2008.
 2010 contribution defined benefit pension plans reduced $ 525 million to $ 460 million.
 payments retiree medical pension.
 2011
 2012 602
 2013
 2014 729
 2015 785
 2020 4959 989
 2008 settlement charge $ 103 million distributions defined benefit pension plans pilots retired.
.
 settlement accounting cost settlements exceeds service interest cost net pension expense.
 unrecognized gains losses recognized reduction benefit obligation.
.
 intangible assets $ 708 million $ 736 million december 31 2010 2009.
 indefinite life assets tested for impairment annually.
 changes network capacity open skies agreements.
fourth quarter 2010 company impairment testing international slots routes net carrying value reassessed recoverability.
 fair value routes latin america less carrying value.
 incurred impairment charge $ 28 million values.
 minimal market activity valuation measures fair value income approach.
 discounted.
 inputs unobservable reflect assumptions market level 3 fair value hierarchy.
 inputs developed information december 31


management jpmorgan chase co. annual report derivative contracts firm uses market-making activities.
 interest rates currencies markets.
 credit market risk.
 settlement mechanism affect credit risk.
 credit risk.
 exchange- traded derivatives futures options credit risk.
 credit risk legally enforceable netting arrangements collateral agreements.
 contracts note 5.
 table summarizes net derivative receivables.
.
 millions 2017 2016
 interest rate $ 24673 $ 28302
 credit derivatives
 foreign exchange
 equity
 commodity 6948
 cash collateral 56523 64078
 liquid securities derivative receivables
 collateral $ 40415 $ 41373
 collateral derivative instruments legal opinion not sought obtained.
receivables balance sheets were $ 56. 5 billion $ 64. 1 billion at december 31 2017 2016.
 decreased market-making activities reduced foreign exchange interest rate increased equity.
 receivables represent fair value contracts master netting agreements cash collateral firm.
 credit risk additional liquid securities.
 government agency securities government bonds cash collateral $ 16. 1 billion $ 22. 7 billion at december 31 2017 2016 when fair value firm.
 firm holds additional collateral cash government securities government securities corporate debt equity securities delivered clients non-daily call frequency settled.
 reduce balances available as security against potential exposure fair value.
 fair value include credit enhancements.
 see note 5.
net fair value derivative receivables capture future variability.
 firm calculates three measures derivatives credit loss peak derivative risk equivalent average exposure.
 incorporate netting collateral benefits.
 peak conservative exposure counterparty equivalent 97. 5%. confidence level.
 credit limits reporting exposure management.
 dre exposure risk derivative.
 less extreme derivative.
 avg expected fair value derivative receivables future collateral.
 primary metric pricing credit risk capital cva.
 three year avg exposure $ 29. billion $ 31. 1 billion at december 2017 2016 compared receivables net collateral $ 40. 4 billion $ 41. 4 billion 2016.
 fair value derivative receivables incorporates cva credit quality.
 avg counterparty credit spread.
 active risk management essential credit risk.
firm 2019s risk management


management financial condition results deposits provide products custody accounting administration pricing foreign exchange cash management financial asset management securities finance investment advisory.
 generate client deposits stable low-cost source funds.
 global custodian clients place deposits currencies.
 invest deposits investment securities short duration financial instruments.
 higher deposit inflows quarter year.
 deposit balances reflective funding period-end.
 table 33 client deposits average balance.
 balance 2014 wholesale certificates deposit $ 13. 76 billion balances 2013 $ 6. 87 billion $ 2. 50 billion.
 short-term funding commercial paper program $ 3. billion $ 2. 48 billion $ 1. 82 billion outstanding december 31 2014 2013.
 on-balance sheet liquid assets liquidity management strategy.
assets provide liquidity raise funds pledging securities borrowings sales.
 access to global capital markets funding from wholesale investors.
 state street bank membership allows liquidity against collateral.
 short-term secured funding securities lent sold.
 transactions short-term overnight collateralized by securities.
 balances $ 8. 93 billion $ 7. 95 billion as december 31 2014 2013.
 maintains line of credit with $ 800 million securities processing operations.
 cancelable.
 no balance outstanding.
 issue unsecured senior debt securities exceed $ 5 billion.
 $ 4. 1 billion available for issuance.
 issue additional $ 500 million subordinated debt.
 universal shelf registration public offering sale of debt capital common stock depositary shares preferred stock warrants.
issued past may issue future securities.
 future market conditions funding needs.
 credit liquidity high investment-grade ratings credit agencies.
 ratings diverse earnings market position risk management capital ratios diverse liquidity sources liquidity monitoring procedures preparedness regulatory developments.
 high ratings limit borrowing costs enhance liquidity unsecured funding depositors potential market debt offer products markets transactions.
 reduction liquidity capital


2014 included acquisition payment $ 86 million former shareholders.
 fund cash requirements 2017 debt repayments new investments share repurchases dividend payments acquisitions pension contributions short-term long-term borrowings.
 operating cash flow strong.
 december 31 2016 $ 327 million cash equivalents $ 184 million outside.
 2015 $ 26 million deferred tax liabilities pre-acquisition foreign earnings.
.
 remaining earnings repatriated 2016 deferred tax liabilities zero december 31.
 remaining reinvested foreign jurisdictions no intention repatriate.
 global business available international operations.
 subject income offset tax credits.
.
 $ 2. billion multi-year credit facility expires december 2019.
 banks.
 no borrowings december 2016 2015.
 supports $ 2. billion.
$ 2. billion european program.
 increased $ 200 million third quarter 2016.
 combined borrowing exceed $ 2. billion.
 december 31 2016 no outstanding.
 commercial paper programs.
 uncommitted credit lines $ 746 million banks global funding letters credit performance bonds guarantees.
 $ 554 million available year-end 2016.
 short-term borrowing program rated a-2 p-2 moody 2019s.
 long-term credit a- baa1.
 reduction credit ratings limit commercial paper affect increase cost.
 seek additional funding term notes bonds.
 draw $ 2. billion credit facility termination.
 compliance debt covenants credit agreements indentures.
 obligations long-term debt agreements operating leases noncancelable interest obligations.
 less 1 2-3 years 4-5 years 5

 notes payable $ 30
 commercial paper
 long-term debt 6652 510 967 1567 3608
 capital lease obligations
 operating leases 431 102 153 105
 interest 2261 218 396 360 1287
 $ 9379 $ 861 1517 2033 4968
 interest variable rate debt 2016.
 liability tax positions $ 76 million.
 estimate cash settlement.
 excluded contractual obligations.


systems incorporated notes financial statements review goodwill impairment annually.
 completed annual impairment test second quarter 2014.
 no impairment goodwill.
 significant risk impairment.
 amortize intangible assets finite over estimated useful lives review impairment.
 monitor events long-lived assets.
 assess recoverability future cash flows.
 less than carrying recognize impairment loss excess carrying amount over fair value.
 intangible asset impairment charges 2014 2013 2012.
 intangible assets amortized over estimated useful lives 1 to 14 years.
 amortization based economic benefits-line.
 weighted average useful lives assets.
 purchased technology
 customer contracts relationships
 trademarks
 acquired rights technology
 localization
 intangibles
development costs capitalization begins technological feasibility completion prototype no critical bugs release candidate.
 amortization begins software ready use economic benefits.
 costs between prototype availability material.
 internal use software capitalize costs customized systems development stage.
 include costs payroll expenses employees.
 capitalization begins preliminary project stage ceases complete ready.
 asset liability method accounting.
 expense recognized taxes payable refundable current year.
 deferred tax assets liabilities recognized future tax consequences differences financial reporting tax operating losses tax credit carryforwards.
 record valuation allowance reduce deferred tax assets.
 taxes statements.
 not reported as revenue.


consolidated financial statements 2014 reconciliation unrecognized tax benefits.
 balance september 29 2007 $ 7315
 increases prior years 351
 increases current 813
 decreases statutes limitations -605
 balance october 3 2008 $ 7874
 major tax jurisdictions october 3 2008. california iowa.
. tax years 1998.
 2002.
 2002.
 october 3 2008 statute limitations expired unrecognized tax benefit.
 $ 0. 6 million unrecognized tax benefit tax rate $. 5 million accrued interest reversed.
-to-date accrued interest unrecognized tax benefits $ 0. 4 million.
.
 authorized issue 525000000 shares common stock $. 25 per share 25000000 shares preferred stock.
 holders entitled dividends.
dividends paid common stock unless dividends preferred stock paid declared set aside.
 company 2019s liquidation dissolution holders common stock entitled share pro rata assets after payment plus unpaid dividends preferred stock.
 each holder one vote each share.
 no cumulate votes.
 certificate incorporation no holder preemptive right to purchase stock.
 march 2007 repurchased 4. 3 million common shares for $ 30. 1 million authorized board.
 no stock repurchase plans.
 october 3 2008 170322804 shares common stock issued 165591830 shares outstanding.
 preferred stock certificate permits issue 25000000 shares preferred stock rights preferences board directors without action.
 skyworks solutions .
 2008 annual report


statistical.
 expense repairs maintenance $ 2. 5 billion 2015. 4 billion 2014 2. 3 billion 2013.
 capital leases recorded lower net value minimum lease payments leased.
 amortization expense computed straight-line shorter estimated lives.
.
 accounts payable current liabilities.
.
.
.
 accounts payable $ 743 877
 income taxes
 wages
 interest
 casualty costs
 rents
 dividends
 accounts payable current liabilities 2612 $ 3303
 dividend declaration payable dates quarter.
 dividends fourth quarter 2014 dividend $ 438 million first quarter 484 million second quarter 479 million third quarter $ 476 million fourth quarter $ 467 million december 30.
.
instruments strategy risk use derivative instruments trading exposure interest rates fuel prices.
 not party to leveraged derivatives speculative.
 instruments hedge accounting maintain effectiveness.
 document relationships risk- management objectives strategies assessing effectiveness.
 changes market value charged to earnings.
 use swaps collars futures forward contracts mitigate risk adverse interest rates fuel prices limit benefits favorable interest rate fuel price movements.
 market credit risk address risk selecting value fluctuations hedged item.
 manage credit risk high credit standards counterparties settlements.
 not required collateral received hedging activities.
 interest rate manage exposure fluctuations adjusting fixed floating rate debt instruments portfolio.
 manage mix debt targeted amounts.
 employ derivatives swaps mix.
flexibility managing interest costs rate mix debt portfolio evaluating managing fixed-rate debt securities.
 swaps convert debt variable hedge risk.
 account swaps value hedges ineffectiveness


$. billion 2013.
 profits 2015 higher.
 closure 3% 3 % lower 2014 4% 4 % higher 2013.
 lower input costs 18 courtland foreign exchange lower sales price 52 million sales volumes $ 16 million higher operating costs $ 18 million maintenance downtime $ 26 million.
 profits $ 554 million closure courtland.
 accelerated depreciation courtland assets evaluated assets.
 net book value december 31 $ 470 million.
 no alternative uses.
 $ 464 million accelerated depreciation.
 profits $ 32 million foreign tax amnesty program gain $ 20 million legal contingency 2013 $ 118 million closure courtland mill $ 123 million impairment charge goodwill trade name intangible asset.
.
 profit
 printing papers net sales $ 1. billion 2015.billion 2014 2. 6 billion 2013.
 profits 2015 $ 179 million loss $ 398 million gain $ 156 million shutdown 2014 $ 36 million 154 2013.
 sales volumes 2015 decreased closure courtland mill.
 domestic increased export declined.
 sales price decreased.
 input costs lower.
 maintenance downtime costs $ 12 million higher 2015.
 profits impacted shutdown courtland mill.
 2016 sales volumes slightly.
 sales margins flat favorable product mix.
 input costs stable.
 maintenance downtime costs $ 14 million lower outage 2016 georgetown mill eastover riverdale mills.
 united steelworkers finch paper.
.
 anti-dumping petition producers china uncoated paper trade rules.
 countervailing-duties petition.
january 2016 doc announced countervailing duty rates china indonesia.
 australia brazil indonesia portugal.
 february 2016 itc concluded dumping investigations.
 market injured imports.
 five years.
 financial statements.
 brazilian papers net sales 2015 $ 878 million $. 2014. 2013.
 operating profits $ 186 million $ 177 million 2013.
 sales volumes lower weak economic conditions one-time events.
 sales price improved freesheet paper price increases.
 margins affected sales lower-margin export markets.
 raw material costs increased.
 operating costs higher maintenance downtime costs $ 4 million lower.


.
 retain 20% equity interest joint venture.
 december 31 acquired seven properties received net sale proceeds financing distributions $ 251. 6 million.
 january 2008 sold land to joint venture 50% equity interest received distribution $ 38. 3 million.
 november 2008 loan distributed loan proceeds $ 20. 4 million.
 property investment recurring leasing costs dividends distributions long-term debt maturities repurchases debt contractual obligations.
 development acquisition market outlook supply growth potential.
 liquidity.
 limiting new development expenditures.
 liquidity recurring leasing/capital expenditures real estate.
 summary recurring capital expenditures december 31 2008 2007 2006.
 recurring tenant improvements $ 36885 $ 45296 41895
leasing costs 28205 32238 32983
 building improvements 9724 8402 8122
 $ 74814 85936 83000
 dividends distributions federal tax distribute 90% taxable income.
 non-cash cash flow greater operating income.
 paid dividends share $ 1. 93. 91 $. 89 2008 2007 2006.
 earnings.
 distributions board directors subject cash financial condition capital requirements. 2009 annual dividend $ 1. 94 to $ 1. 00 cash.
 $ 145. 2 million per year.
 2008 six preferred shares.
 dividend rates 6. 5%. paid arrears quarterly.


market street commitments credit rating december 31.
 2009
 aaa/aaa 14% ( 14 % ) 19% ( 19 % )
 50 6
 72
 bbb/baa 3
 100%
 majority facilities not rated rating agencies.
 meet standards.
 evaluated design market street capital structure relationships variable interest holders.
 not primary beneficiary assets liabilities street not included consolidated balance sheet.
 considered changes variable interest holders risks.
 reviewed activities market street quarterly reconsideration event.
 equity investments limited partnerships affordable housing projects low credit.
 investments return capital facilitate sale affordable housing community reinvestment act.
 identification development operation multi-family housing leased residential tenants.
 funded debt equity.
 limited partner non-managing member.
we national syndicator of affordable housing equity 201clihtc investments.
 create funds subsidiaries sell interests to third parties purchase.
 purpose generate income servicing fees earn tax credits reduce tax liability.
 activities include selecting evaluating structuring negotiating closing fund investments operations.
 evaluate third party interests primary beneficiary.
 based on majority variability.
 primary sources variability tax credits tax benefits passive losses development cash flows.
 consolidated lihtc investments we absorb majority variability primary beneficiary.
 assets in equity investments liabilities noncontrolling.
 creditors equity investors recourse to general credit.
 consolidated assets liabilities in table business segment.
 investments not primary beneficiary significant variable interest based on.
investments disclosed in non-consolidated 2013 variable interests table.
 reflects maximum exposure to loss.
 equal to equity commitments adjusted for impairment partnership results.
 equity cost methods balance.
 increase recognized investments liability for unfunded equity commitments.
 liabilities reflected in consolidated balance sheet.
 city bank.
 sponsored special purpose entity credit risk transfer agreement mitigate losses nonconforming mortgage loans.
 formed with small equity contribution bankruptcy-remote entity creditors no recourse.
 interest issued asset-backed securities.
 equity.
 primary beneficiary absorb losses through holding asset-backed securities.
 consolidated assets liabilities


five-year performance comparison 2013 graph cumulative shareholder returns corporation peer group index dow jones s&p 500.
 investment common stock union pacific corporation index $ 100 december 31 2002 dividends reinvested.
 five-year cumulative return 2002 2003 2004 2005 2007 s&p 500 purchases equity securities repurchased 13266070 shares common stock average price $ 115. 66.
 first nine months 2007 repurchased 10639916 shares average price per share $ 112. 68.
 table common stock repurchases fourth quarter 2007 average.
 pershare
 oct. 1. 31 $ 128.
.
. 1986078.
.
shares purchased quarter 228354 shares delivered employees option prices tax obligations.
 january 30  2007 board authorized repurchase 20 million shares common stock december 31 2009.
 open market transactions.
 management discretion timing amount.


cash flows operations.
 fiscal year 2018 earnings redeemable noncontrollinginterests $ 2163. $ 1701. 1736.
 depreciation amortization 618. 603. 608.
-taxearnings joint ventures -84. -85. -88
 earnings joint ventures 113. 75.
 stock-based compensation 77. 95 89.
 deferred income taxes -504. 183. 120.
 contributions -31. -45.
. 35 118
. -148.
 restructuring costs 126. 117. 107
 assets liabilities 542. -194 298.
 -182. -86.
 cash operating activities $ 2841. 2415. 2764.
 2018 cash operations $ 2. 8 billion 2. 4 billion 2017.
$ 426 million increase driven by $ 462 million net earnings $ 736 million assets liabilities offset $ 688 million deferred income taxes.
 $ 638 million revaluing.
 deferred tax liabilities new.
 corporate tax rate.
 $ 736 million due accounts payable $ 476 million $ 264 million income taxes trade incentive accruals.
 core working capital net sales.
 2018 decreased 27 percent 1 percent.
 2017 increased 9 percent 2016 decreased 41 percent.
 generated $ 2. 4 billion cash $. billion 2016.
 $ 349 million decrease driven $ 493 million assets liabilities.
 income taxes incentive.
 timing accounts payable.
 $ 14 million loss divestiture $ 148 million gain 2016 investing activities.


value psu award amortized over performance period three years after death disability 58.
 pmi $ 34 million unrecognized compensation cost non-vested psu awards.
 cost recognized over two years death disability 58.
 2017 2016 no psu awards.
.
 unvested share awards non rights dividends participating securities included in pmi earnings per share calculation.
 basic diluted earnings per share calculated.
 net earnings pmi $ 6035 $ 6967 $ 6873
 earnings share-based awards
 earnings basic diluted $ 6021 $ 6948 $ 6849
-average shares
 issuable performance stock units
 2015 no antidilutive stock options.


entergy corporation financial statements bonds mandatory tender purchase 100% principal october 1 2003.
 june 1 2002 entergy louisiana remarketed $ 55 million.
 bonds 2030 interest rate 4. 9%. 2005.
 bonds mandatory tender purchase principal june 1 2005.
 fair value excludes lease debt due year.
 determined bid prices investment banking.
 annual-term debt maturities cash fund requirements december 31 2002 five years.
 2004
 2006
 sinking fund requirements $ 30. million annually cash property additions 167%.
 2002 damhead creek project sold buyer assumed obligations.
 2000 entergy business purchased fitzpatrick indian point 3 power plants.
 issued notes seven annual installments $ 108 million eight installments $ 20 million.
notes stated interest rate implicit interest rate 4. 8%.
 indian point 2 entergy non-utility nuclear business liable nypa additional $ 10 million per year 10 years september 2003.
 liability recorded indian point 2 september 2001.
 entergy corporation. 75%. notes consolidated debt ratio 65% or less capitalization.
 debt acceleration facility maturity.
 january 2003 entergy paid outstanding debt iowa wind project.
 supply system energy capital maintain equity capital 35% % capitalization permit operation grand gulf 1 pay indebtedness borrowed enable payments debt.


.
 2019s common equity stockholder matters issuer purchases graph compares annual return common stock 2019s 500 stock index peer group five years 31 2016.
 investment common stock s&p 500 index group $ 100 december 31 2011 dividends reinvested.
 2013 2014 2015 2016
 loews common stock. 108. 91 129. 64 113. 59 104. 128.
 s&p 500 index. 116. 153. 57 174. 177. 198.
 loews peer group. 113. 142. 85 150. 165.
 competitors chubb limited.
 energy transfer partners. ensco hartford financial services group. kinder morgan energy partners.
. noble spectra energy transocean.
 travelers companies.
 paid cash dividends since.
 dividends. loews stock 2016 2015.


aes corporation financial statements 2014 2017 2016 2015 unrecognized tax benefits 12 months december 31 2017 $ 5 million $ 15 million statute limitation lapses tax exam settlements.
 reconciliation unrecognized tax benefits.
 31, 2017 2016 2015
 balance january 1 $ 352  $ 364  $ 384
 additions current year tax positions
 additions prior years
 reductions -5 -7
 foreign currency translation -3
 settlements
 statute limitations -1
 balance december 31 $ 348 $ 352  $ 364
 company subsidiaries examination taxing authorities.
 assesses outcome unrecognized tax benefit.
 difficult predict outcome uncertain tax position accrued tax benefits.
 audit outcomes settlements future events tax benefits.
possible future examinations may exceed tax benefits december 31 2017.
 tax rate net income impacted.
.
 discontinued operations portfolio evaluation 2016 management shift distribution companies brazil reduce exposure brazilian.
 2017 converted preferred shares into listing novo mercado brazilian stock exchange.
 aes controlled maintained influence business.
 deconsolidated.
 17% ownership equity investment.
 recorded after-tax loss deconsolidation $ 611 million $ 455 million translation losses $ 243 million pension losses.
 2017 criteria met discontinued operation.
 results financial position reported consolidated financial statements.
 pre-tax loss 2017 2016 $ 633 million $ 192 million.
 pre-tax income 2015 $ 73 million.
 reported brazil sbu reportable segment.
agreement sale subsidiary june 2016.
 discontinued statements.
 after-tax loss $ 382 million pre-tax impairment charge $ 783 million offset tax benefit $ 266 million $ 135 million deferred taxes.
 carrying value sul asset group $ 1. 6 billion greater fair value less costs.
 impairment charge limited assets.
 october 31 2016 sale received proceeds $ 484 million.
 additional after-tax


risks related common stock stock price volatile.
.
 factors impact fluctuations 2019 operating results clinical trial results adverse events product development changes laws healthcare tax intellectual property laws changes reimbursement drug pricing litigation government proceedings investigation failure delays acquisitions strategic transactions perceptions expectations.
 trading price common stock biopharmaceutical companies experienced extreme price volume fluctuations unrelated to operating performance.
 anti-takeover provisions charter bylaws delaware law make third-party acquisition difficult frustrate management.
 charter discourage transactions change of control.
 special meetings called by chairman president secretary majority board request of stockholders 25% outstanding stock.
 authorized number of directors by resolution board.
 charter cumulative voting directors minority stockholder elect directors.
charter board of directors authority designate 5 shares preferred stock in series.
 rights holders common stock subject to affected by class series preferred stock future.
 delaware corporation anti-takeover provisions could make difficult for third party to acquire control.
 subject to section 203 delaware general laws prohibits 15% voting stock from merging or combining for three years after transaction unless merger approved.
.
.
.
.
 conduct primary operations at owned leased facilities.
 new haven connecticut corporate headquarters sales research development offices 514000 2030 dublin ireland global supply chain distribution administration offices.
 connecticut
 dublin
 commercial research development manufacturing
 lexington massachusetts
 bogart georgia
rhode island commercial research development manufacturing 67000
 zurich switzerland regional executive sales offices 69000
 administrative office space future.
 research development manufacturing activities.
 lease space.
 foreign countries global organization.


december 31 2015 future minimum payments lease financing.
 2016 $ 5754
 2017 5933
 2018 6113
 2019 6293
 2020 6477
 18810
 payments 49380
 less interest land lease expense -30463
 payments facility financing obligations 18917
 property landlord 23629
 value obligation 42546
 current portion
 long-term obligation $ 41210
 construction 2013 de-recognition asset liability sale-leaseback accounting.
 involvement.
 lease financing obligation payments reduction principal financing obligation interest expense land lease expense.
 asset depreciated life 30 years.
 lease de-recognize net book values remaining financing obligation.
 manufacturing supply chain third-party contract manufacturers reduce.
 purchase orders non- cancelable commitments.
purchase strategic component inventory non-cancelable including integrated circuits consigned contract manufacturers.
 2015 non-cancelable purchase commitments $ 43. 9 million.
 provided restricted deposits third-party.
 $ 2. 3 million deposits 2015 2014.
 classified balance sheets.
 agreements customers channel partners indemnification provisions intellectual property rights.
 repair infringement replace non-infringing refund customers


international networks segment owns operates networks december 31 2013 global networks regional networks.
 discovery channel 271 kids 76
 animal planet 200 sbs nordic 28
 tlc real time travel 162 dmax
 science 81 history
 investigation 74
 home health 64 espanol.
 turbo 52 familia.
 world 23 gxt
 sbs nordic networks sweden norway denmark.
 dmax networks. austria switzerland ireland.
 networks segment owns operates free-to-air networks 285 million viewers middle east december 31 2013.
 include dmax fatafeat quest real time giallo frisbee focus k2.
.
 primary sources revenue fees operators cable dth satellite advertising.
 markets vary.
.advanced digital television markets others analog varying investment digital.
 long-term distribution relationships renew contracts annually.
 distribution revenue international networks on subscribers rates market demand content.
 advertising revenue development pay free-to-air markets subscribers viewership demographics popularity programming sell commercial time channels.
 advertising sales business in-house teams external.
 advertising revenue growth from subscriber viewership growth localization strategy shift spending from analog multi-channel.
 mature markets growth revenue increasing viewership pricing launching new services.
 2013 distribution  advertising revenues 50% 47% 3% total net revenues.
 2014 agreement with tf1 acquire interest eurosport international increasing ownership stake from 20% to 51% million.
 acquisition excludes eurosport france subsidiary.
retain 20% equity eurosport france acquire 31% 2015 contingent regulatory matters.
 eurosport network focuses tennis skiing cycling reaches 133 million homes 54 countries 20 languages.
 brands hd asia-pacific.
 acquisition growth pay television.
 tf1 49% non-controlling interest two and half years acquisition.
 floor value equal fair value acquisition exercised 2015 priced fair value july 1 2016.
 acquisition second quarter 2014 regulatory approvals.


2014 acquired partner atmospheric industrial gases joint venture north america $ 22. increased ownership 50% to 100%.
 business combination results consolidated industrial gases segment.
 gain $ 17. $ 11. after-tax. per share revaluing equity fair value.
 note 6 consolidated financial statements details.
 transactions.
.
.
 2016 $ 121. increased $ 71. transition services agreements versum evonik sale assets investments gain $ 12. $ 7. after-tax. per share sale land favorable foreign exchange impact.
.
 $ 49. increased $ 3. lower foreign exchange losses contract settlements government subsidy.
 2015 gain $ 33. $ 28. after tax $. 13 per share sale two parcels land.
 items.
.
 $ 139. $.$ 151.
 capitalized interest 19. 32. 49.
 expense $ 120. $ 115. $ 102.
 2017.
 2016 interest decreased $ 8. lower debt balance $ 26 offset higher interest rate $ 19.
 carrying value projects exit energy-from-waste business.
 2016.
 2015 interest decreased $ 4.
 stronger.
 dollar foreign currency $ 6 offset higher debt balance $ 2.
 carrying value projects construction exit energy-from-waste.
 $ 29. 2017 cash time deposits sale pmd.
 2016 2015.
.
 loss extinguishment debt 2016 issued $ 425. notes air products exchanged $ 418.
 loss $ 6. $ 4. 3 after-tax $. per share.
 2015 payment $ 146. 3000000 unidades fomento.bonds due 2030 $ 130. net loss $ 16.-tax 07 share.


new orleans.
 revenue 2008 2007 fuel expenses gas power expenses regulatory charges.
 change net revenue 2008 2007.
.
 2007 net revenue $ 231.
 volume.
 gas.
.
.
.
 2008 revenue $ 252.
 volume/weather variance increase electricity usage 2008 2007.
 141000 electric 93000 gas returned since hurricane katrina 31 2008 132000 86000 gas 2007.
 retail electricity usage increased 184 gwh increase 4%.
 net gas revenue variance due base rates march november 2007.
 statements.
 revenue variance higher revenue storm reserve 2007 city council settlement agreement 2006.
 storm reserve $ 75 million ten-year restricted escrow account.
.
 base revenue variance due base rate recovery credit 2008.
.
operating revenues fuel power expenses $ 58. 9 million wholesale revenue average price energy $ 47. 7 million electric fuel recovery higher rates usage $ 22 million gas revenues rates march november 2007.
 fuel power market prices gas demand.


december 31 2014 modest working capital surplus.
 strong cash position liquidity uncertain economic environment.
 adequate access capital markets cash requirements financial capacity liabilities.
.
 2015 2014 2013
 $ 7344 $ 7385 6823
 investing -4476
 financing -3063
 $ -195
 decreased 2015 lower net income working capital offset tax payments.
 federal law 100% bonus depreciation 2011 50% 50 % 2012-2013.
 deferred 2011-2013 income tax expense positive cash flow.
 extended 50% bonus depreciation 2014 2015.
 extended depreciation 2019 delayed 2016.
 50% 50 % 2015 2016 2017 40% 40 % 2018 30% 30 % 2019.
 higher net income 2014 increased higher income tax payments.
2014 income tax payments higher income taxes deferred depreciation.
 investments locomotives freight cars $ 327 million early lease buyouts drove increase cash.
 early buyout headquarters $ 261 million.
 investments new locomotives freight cars containers commercial facility projects.
 $ 99 million early buyout locomotives freight cars long-term leases.


railroad collected $ 18. 8 billion $ 16. 3 billion receivables 31 2011 2010.
 used proceeds new receivables.
 costs receivables securitization facility include interest paper rates fees issuing costs fees unused commitment availability.
 included in interest expense $ 4 million $ 6 million for 2011 2010.
 included other income $ 9 million 2009.
 investors no recourse to assets except warranty indemnity claims.
 creditors recourse assets.
 august 2011 receivables securitization facility renewed 364-day period comparable terms conditions.
 contractual obligations commercial commitments financial condition.
 no known trend uncertainty results operations financial condition liquidity.
 commercial obligations financings commitments similar to corporations transportation industry.
tables identify obligations commitments december 31 2011 payments due obligations.
 2012 2013 2016 2016
 debt $ 12516 $ 538 852 887 8972
 operating leases 4528  525  489 415 372 347 2380
 capital lease obligations 2559 297 269
 purchase obligations 5137 2598 568
 post retirement benefits
 income tax contingencies
 contractualobligations $ 25096 $ 4015 $ 2204 2164 1565 13508
 excludes capital lease obligations $ 1874 million unamortized discount $ 364 million.
 interest component $ 5120 million.
 leases for locomotives freight cars equipment real estate.
represents obligations interest $ 685 million.
 purchase obligations locomotive maintenance fuel locomotives ties ballast goods.
 year settlement reflected column.
 retirement medical life insurance unfunded pension plan ten years.
 funded pension obligations.
 future cash flows income tax contingencies liability unrecognized tax benefits interest penalties december 31 2011.
.
 column.


cumulative return assumes reinvestment dividends.
 weighted market capitalization.
 purchases equity securities issuer not repurchased common stock since march 16 securities equity compensation plans proxy statement 2012 annual meeting 120 days after fiscal year.
.
 financial data.
 2011 2010 2009 2008 2007
 sales service revenues $ 6575 $ 6723 $ 6292
 impairment 290 2490
 operating income 110  248
 net earnings loss -94 94 135
 assets 6001 5203 5036 4760
 long-term debt 1830 105 283
 long-term obligations 3757 1559 1645 1761
 free cash flow 331 168 -269 121 364
 earnings loss per share $. 93. 77. -49.61 49. $ 5. 65
 diluted earnings share. 93. 2. 77. 54. 5
 long-term debt former parent 31 2010 due liabilities.
 free cash flow non-gaap cash capital expenditures.
 liquidity resources 7.


visa payment services acquires credit debit card transactions.
.
 affiliates.
 october 2007 issued shares visa.
 members reorganization.
 received share class b visa.
 common stock.
 members.
.
 indemnify visa judgments settlements.
 acquisition judgment loss sharing agreements visa banks.
 financial responsibilities adverse judgment settlements.
 2014 visa funded $ 450 million escrow account reduced conversion rate visa shares.
 obligation indemnify visa judgments settlements.
 sold commercial residential home equity loans securitization sale continuing involvement.
 recourse loan repurchase obligations transferred assets.
 service multi-family commercial mortgage loans sold fnma underwriting program.
 similar program fhlmc.
 assume one-third risk loss unpaid principal balances share.
december 31 2014 2013 unpaid principal balance loans $ 12. 3 billion $ 11. 7 billion.
 potential maximum exposure loss share $ 3. billion $. billion.
 reserve losses.
 $ 35 million $ 33 million included liabilities consolidated balance sheet.
 payment contractual interest collateral losses value losses.
 exposure activity recourse obligations reported corporate institutional banking segment.
 table 150 commercial mortgage recourse obligations.
 january 1 $ $
 reserve adjustments
 losses 2013 loan repurchases settlements
 31 $
 residential mortgage credit repurchase obligations repurchase obligations.
 origination covenants warranties.
 activity banking.
 fourth quarter 2013 pnc agreements fnma fhlmc resolve repurchase claims loans sold 2000 2008.
pnc paid $ 191 million settlements.
 repurchase obligations include brokered home equity loans sold private investors.
 lending repurchase limited.
 repurchase activity non-strategic assets portfolio.
 pnc financial services group.
 2013 form 10-k


commitment expiration commercial commitments millions dollars 2010.
 expiration 2010 2011 2012 2013 2014 2014
 credit facilities $ 1900
 sale receivables 600
 guarantees 416  29  76 24 8 214 65
 letters credit 22
 commercial commitments $ 2938  $ 651  $ 1924 214
 credit facility used december 31 2009.
 $ 400 million sale receivables program utilized december 31 2009.
 guaranteed obligations headquarters building equipment financings operations.
 letters credit drawn december 31 2009.
 railroad transfers accounts receivable union pacific receivables.
 bankruptcy subsidiary sale receivables facility.
 sells interest accounts receivable investors.
capacity sell interests was $ 600 million $ 700 million at 2009 2008.
 outstanding interest $ 400 million $ 584 million at.
 2009 upri reduced interest receivables.
 not included in financial statements.
 supported by $ 817 million $ 1015 million at 2009.
 interest retained was $ 417 million $ 431 million.
.
 sold at carrying value approximates fair value no gain loss.
 value fluctuate receivables affected by business volumes credit risks default dilution.
 change 2009.
 credit rating below investment grade investors discontinue facility.
 railroad sold receivables servicing asset liability servicing fees.
 collected $ 13. 8 billion $ 17. 8 billion 2009 2008.
 upri used proceeds to purchase new receivables.
 costs sale receivables program $ 9 million $ 23 million $ 35 million 2009 2008 2007.
 interest paper rates fees costs.
 decrease 2009 costs rates interest.


environmental liability includes remediation restoration monitoring excludes recoveries third parties.
 cost estimates based on information financial viability technology laws regulations.
 accrued ultimate costs sites.
 ultimate liability remediation difficult determine parties cost sharing arrangements contamination volumetric data speculative remediation.
 estimates may vary changes laws.
 expect obligations operations financial condition.
 contingently liable for $ 464 million guarantees.
 recorded liability $ 6 million fair value obligations december 31 2006.
 entered guarantees include obligations headquarters building equipment financings operations.
 final guarantee expires 2022.
 default guarantees.
 expect financial condition results operations liquidity.
 indemnification arrangements range to.
uncertainty claims determine probability estimate liability exposure indemnification arrangements.
 believe payments indemnity provisions.
 income taxes 2013 irs examinations issued notices deficiency tax years 1995 2002.
 proposed adjustments disallowance tax deductions donations.
 quarter irs advice unresolved deductions.
 dispute donation issue adjustments contest tax deficiencies appeals process litigation.
 irs examining federal income tax returns 2003 2004 2007.
 expect resolution effect consolidated financial statements.
.
 income years december 31 millions 2006 2005 2004.
 rental income $ 83 $ 59 $
 net gain non-operating asset dispositions 72 135
 interest income 29
 sale receivables fees
 non-operating environmental costs
 $ 118 $ 145 $


goodwill reviewed annually fourth quarter impairment.
 company performs impairment analysis intangible assets.
 changes membership state funding medical contracts provider networks.
 impairment loss recognized if value exceeds implied fair value.
 medical costs include paid inventory unpaid claims.
 estimates developed actuarial methods historical data payment patterns cost trends product mix utilization.
 continually reviewed adjustments reflected.
 actuarial methods.
 medical claims payable liability unpaid claims december 31 2006 payments may differ estimates.
 medicaid managed care segment from premiums.
 receives fixed premium per member month.
 payments revenue.
 states enact premium taxes recorded administrative expenses.
 contracts allow additional premium services.
 revenues recorded based membership eligibility data adjusted.
adjustments immaterial revenue reflected period.
 specialty services segment generates revenues state programs healthcare organizations subsidiaries.
 revenues recognized provided earned.
 premium revenues advance unearned.
 performance contracts revenue refund until.
 premiums service revenues recorded receivables net allowance trends judgment.
 receives payments allowance not significant revenues financial condition results.
 uncollectible accounts years december 31 summarized.
 2005
 allowances beginning $ 343 $ 462 $ 607
 write-offs uncollectible receivables
 end year $ 155 $ 343 $ 462
 revenues state medicaid managed care programs.
 contracts june 30 2007 december 31 2011 expected renewed.
contracts georgia indiana kansas texas wisconsin 15% 10% 17% 16% revenues 2006.
 purchased healthcare.
 program covers 90% inpatient healthcare expenses deductibles $ 300 to $ 500 member maximum $ 2000.
 medicaid subsidiaries inpatient charges daily per diem.
 risk-sharing program arizona costs threshold.
 reinsurance recoveries $ 3674 $ 4014 $ 3730 2006 2005 2004.
 expenses $ 4842 $ 4105 $ 6724 2004.
 medical costs.
 investment interest expense.
 cash equivalents deposits investments.


abiomed inc.
 subsidiaries financial statements 2014.
 income taxes 1 2007 adopted financial interpretation.
 accounting uncertainty income taxes fasb statement.
.
 accounting uncertainty income taxes financial statements.
.
.
 process uncertain tax positions.
.
 derecognition classification interest penalties accounting interim periods disclosure transition criteria tax position.
.
 recorded accounting $. million earnings long-term liabilities april 1 2007.
 adjustment failure tax returns 2003 2004 2005.
 initiated voluntary disclosure plan fiscal year 2009.
 interest penalties income tax consolidated statements.
 march 31 2009 remitted outstanding amounts owed 31 2008.
 no.
 liability march 31 2009.
 accrues uncertain tax positions penalties interest.
possible unrecognized tax benefit increase next 12 months not expected change significant company results financial position.
 reconciliation unrecognized tax benefits accrued interest march 31 2009.
 balance march 31 2008 $ 168
 reductions tax positions statute limitations -168
 balance march 31 2009 $ 2014
 company subsidiaries subject.
 federal income tax state foreign jurisdictions.
 accumulated losses since 1981.
 tax years examination.
 net operating loss tax credit carry forwards review.
.
 acquisition impella abiomed contingent payments shareholders approval. payment $ 5583333. $ 5583333 sale 1000 units $ 5583334.
. paid prior march 31 2009.
 april 2009 received fda 510 ( k clearance impella 5. product obligation pay milestone.
2009 company paid 1. 8 million remaining 664612 common stock.


handle demand changes.
 industrial engineering techniques productivity.
 2022 fuel prices uncertainty economy fuel price projections difficult volatile fuel prices sensitive global.
 domestic demand refining capacity geopolitical events weather conditions factors.
 reduce impact fuel price earnings recovery fuel surcharge programs expand fuel conservation efforts.
 capital plan capital investments $ 3. 2 billion positive train control revised business conditions laws affect.
 capital. 2015 spend $ 250 million 2011 ptc.
 $ 1. 4 billion 2015 federal administration.
 installing new system upgrading locomotives digital data communication equipment.
 testing technology.
 financial expectations cautious economic conditions anticipate volume increase 2010.
 volume price productivity gains offset higher costs fuel labor inflation depreciation casualty costs property taxes operating ratio improvement.
 revenues.

 freight revenues $ 16069 $ 13373 $ 17118 20% 20 % 22 %
 other revenues 896 770 852 16
 $ 16965 $ 14143 $ 17970 20% 20 % 21 %
 freight revenues six commodity groups.
 vary volume revenue.
 price traffic mix fuel surcharges.
 contractual incentives volumes reduction revenues.
 revenues.
 allocate transit time expenses.
 revenues subsidiaries commuter accessorial revenues equipment services.
 obligations.
 revenues volume six commodity groups increased 2010 economic improvement.
 volume growth automotive intermodal industrial.
 pricing gains fuel surcharges increased revenues 6% improvement.
 commodity groups decreased 2009 economic weakness.
 volume declines automotive industrial


equity compensation plan documents exhibits form 10-k incorporated.
 table information dec.
 31 2006 shares ppg common stock issued under equity compensation plans.
 securities outstanding options warrants rights average exercise price securities future issuance excluding 9413216 $ 58. 35 10265556 plans not approved 2089300 $ 70.
 securities issued options warrants rights weighted average exercise price number securities remaining future issuance
 plans approved 9413216 $ 58. 10265556
 not 2089300 $ 70.
 11502516 $ 60. 57 10265556
 plans approved ppg industries.
 omnibus plan industries.
 incentive plan.
.
 plans not approved ppg industries.
 2000 stock plan.
broad stock option plan granted employees subsidiaries july 1 1998 option purchase 100 shares common stock $ 70. per share.
 options exercisable july 1 2003 expire june 30 2008.
 2089300 shares issuable dec.
 31 2006.
 excluded equivalents ppg industries.
.
.
.
 491168 common stock equivalents plans dec.
 31 2006.
.
 selected financial data five years.
 31 2006 exhibit 99. form 10-k.
 eleven-year digest page 72 annual report net sales income loss before accounting changes effect earnings dividends per share total assets long-term debt 2002 2006.
.
 financial condition operations performance 2006 sales increased 8% $ 11. billion 2006 $ 10. 2 billion 2005.
sales increased 4% acquisitions 2% volumes prices.
 cost. 7%. 5%.
 expense increased. 9%. 4%
 store expansions advertising optical.
 charges decreased 81 million 2006.
 185 million environmental remediation 42 million legal settlements 44 million insurance recoveries marvin hurricane.
 pretax 132 million marvin insurance 61 million federal glass class action settlement 34 million hurricanes rita 27 million asset impairment 19 million debt refinancing.
 earnings increased $ 30 million 2006 higher equity earnings fiber glass joint ventures higher royalty income.
 net income earnings share $ 711 million $ 4. 27 $ 596 million $ 3. 49 2005.
2006 $ 106 million 64 cents environmental remediation new jersey louisiana $ 26 million 15 legal settlements 23 million business restructuring 17 million 10 cents asbestos $ 24 million 14 insurance recoveries.
 2005 $ 117 million 68 cents legal settlements $ 21 million hurricanes katrina rita $ 17 million 10 cents asset impairment chemicals 12 million 7 cents debt refinancing $ 13 million 8 cents increase 2006 annual report 10-k


net earnings companies m-i swaco joint venture 2010 eight months smith transaction.
 $ million 2011 increased $ 91 million due $ 4. 6 billion long-term debt schlumberger.
 expense $ 207 million decreased $ 14 million borrowing rates 3. 9%. to. 2%. 2 %.
 research engineering general administrative expenses revenue.
 2. 7%. 7 %. 3%. 3 % 5%. 5 %
. 1%. 1
 research engineering decreased 2011 increased $ 154 million $ 117 million.
 increases smith acquisition.
 income taxes schlumberger effective tax rate 24. 4%. 4 % 2011 17. 3%. 3 % 2010 19. 6%. 6 % 2009.
 tax rate sensitive geographic mix earnings.
.
.
 impacted charges credits financial.
effective tax rate 2011 24. 0%. 20. 6%. 6 2010.
 schlumberger generated larger pretax earnings north america 2011 improved market conditions activity acquired smith businesses.
 tax rate 2009 impacted charges credits.
 rate 2010 20. 6%. 6 % 19. 2%. 2 % 2009.
 increase attributable geographic mix earnings four months 2019 results acquisition smith schlumberger tax charges recorded charges credits 2011 2010.
 note 3 financial statements.


consolidated financial statements 2014 acquisitions recorded purchase method purchase price allocated assets acquired liabilities assumed estimated fair value.
 operating results included in consolidated statements.
 2008 acquired transactions rights.
.
 single point contact mastercard processing.
 acquired euroenvios money transfer.
.
 money.
 customer base branch locations.
 acquired money transfer branch locations united states.
 increase market presence dolex-branded money transfer.
 preliminary purchase price allocations acquisitions.
 $ 13536
 customer-related intangible assets 4091
 contract-based intangible assets 1031
 property equipment 267
 other current assets 502
 assets acquired 19427
 current liabilities -2347
 minority interest in equity subsidiary -486
 net assets acquired $ 16594
customer-related assets 14 years.
 contract-based 3 to 10 years.
 acquisitions not significant financial statements information.
 2008 acquired customer list merchant referral agreement $ 1. 7 million.
 $. 1 million expensed.
 remaining amortized 10 years.


.
 company leases land facilities equipment software leases through 2057.
 agreements include renewal escalation clauses taxes insurance maintenance costs.
 rental expense $ 92. 3 million 2019 $ 84. 9 million 2018 $ 58. 8 million 2017.
 schedule rental payments long-term leases november 2 2019.
 2020 79789
 2021 67993
 2022
 2023 37673
 2024
 190171 448721
.
 commitments contingencies claims charges litigation contractual patents trademarks personal injury environmental product liability insurance employment benefits.
 no assurance.
 matters financial position cash flows.
.
 retirement plans subsidiaries savings retirement plans.
 plan eligible.
 employees.
 contributions 5% compensation.
 contributes pre-tax contribution 3% compensation.
expense contribution plans.
 employees $ 47. 7 million 2019 $ 41. 4 million 2018 $ 35. 8 million 2017.
 non-qualified deferred compensation plan allows management highly-compensated employees non directors defer compensation.
 salary bonus commissions director fees.
 company provides contributions equal 8% deferred contributions.
 non-qualified maintained rabbi trust.
 investments deferred compensation plan investments current prepaid expenses assets balance sheets.
.
 deferred compensation obligation represents accumulated deferrals earnings.
 liability current portion accrued liabilities balance sheets.
 unsecured general obligation.
.
 financial statements


management credit ratings based on agencies assessment liquidity market credit operational risk management practices earnings capital base franchise reputation management corporate governance external operating environment government support.
 firm derivatives transacted under bilateral agreements with counterparties collateral terminate transactions changes credit ratings.
 assess impact agreements collateral termination payments downgrade by agencies.
.
 allocate portion gce additional collateral termination payments two-notch reduction long-term credit ratings collateral not available.
 table presents additional collateral termination payments one-notch two-notch downgrade credit ratings.
 millions december 2012 2011
 collateral payments one-notch downgrade $ 1534 $ 1303
 two-notch downgrade 2500
 millions $ 1303 global financial institution cash flows complex little relation to net earnings assets.
cash flow analysis liquidity.
 macro trends initiatives.
.
 cash equivalents increased $ 16. 66 billion $ 72. 67 billion.
 generated $ 9. 14 billion.
 $ 7. 52 billion bank deposits offset repayments borrowings.
.
 increased $ 16. 22 billion $ 56. billion 2011.
 generated $ 23. 13 billion.
 used $ 6. 91 billion financing repurchases offset increase bank deposits.
.
 increased $ 1. 50 billion $ 39. 79 billion.
 generated $ 7. 84 billion short-term secured financings.
 used $ 6. 34 billion securities offset decrease securities.


volumes fuel surcharges reduced freight revenue.
 international traffic decreased 24% economic weak imports non ports.
 weakness domestic housing automotive sectors demand international intermodal market decline.
 domestic traffic increased 8% 2009.
 new contract hub group. shipments second.
 price increases fuel surcharges revenue lower volume.
 international traffic declined 11% softening imports china loss customer contract.
 peak intermodal shipping season weak.
 housing automotive demand.
 domestic traffic declined 3% loss customer contract lower volumes less-than-truckload shippers.
 flood embargo hindered volume.
.
 decreased 26% $ 1. 2 billion.
 volume declined five commodity groups 19% % 32% 24% 24 % reductions industrial products automotive shipments.
energy shipments increased 9% 2009 2008.
 revenue mexico business increased 13% $ 1. 6 billion 2008.
 price improvements fuel surcharges offset 4% decline volume 2008.
 operating expenses.
 compensation benefits $ 4063  $ 4457  $ 4526 9 % 2
 fuel 1763  3983 3104
 purchased services materials 1614 1902 1856
 depreciation 1444 1387 1321
 equipment rents 1180 1326 1368
 687 840 733
 $ 10751  $ 13895 $ 12908 8%
 2009 intermodal revenue


entergy new orleans.
 volume/weather variance electricity usage residential commercial sectors 4% 4 % increase residential 3% 3 % commercial offset less favorable weather.
 operating revenues decreased $ 16. 2 million electric fuel cost recovery lower rates $ 15. 4 million gas revenues formula rate plan decreases 2011.
 offset wholesale revenue increased sales favorable/weather.
 net revenue fuel expenses gas power expenses regulatory charges.
 change net revenue 2010 2009.
.
 2009 net revenue $ 243.
.
.
 2009 settlement.
.
 2010 revenue $ 272.
 volume/weather variance increase 348 gwh 7% 7 % retail electricity usage favorable weather.
 net gas revenue variance favorable weather gas regulatory asset electric gas formula rate plans.
note 2 financial statements plan settlement.
 2009 settlement entergy orleans realigning non-fuel costs grand gulf fuel adjustment electric rates june 2009.
 settlement.
 operation maintenance expenses deferral $ 13. 4 million michoud plant maintenance costs entergy orleans $ 8. million fossil expenses higher plant outage costs scope michoud plant.
 2 financial statements 2010 rate plan.


provide to governmental agencies entities under environmental regulations landfill operations for closure costs performance collection landfill transfer station contracts.
 surety bonds letters of credit insurance policies trust deposits included in cash marketable securities assets consolidated balance sheets.
 determined by state environmental regulations.
.
 states require third-party engineering specialist determine costs.
 from obligation.
.
 varies by contract.
 assurance for insurance program collateral for performance obligations.
 increase in assurance requirements 2016.
 issued not considered indebtedness.
 not reflected in consolidated balance sheets record capping closure post-closure liabilities insurance liabilities incurred.
 no debt obligations operating leases assurances.
 no transactions obligations not disclosed in reported financial position results operations.
guaranteed third-party debt.
.
 operating activities purchases property proceeds sales consolidated.
 table calculates free cash flow 31 2015 2014 2013 millions.
 operating activities $ 1679. 7 $ 1529. 8 $ 1548.
 purchases property -945. 6. -862. 5 862. -880. 8 880.
 proceeds sales 21. 35. 23.
 cash flow $ 755. 3 $ 703. $ 691.
 changes free cash flow investing activities.


graph five-year comparison return common stock nasdaq composite s&p 500 information technology index april 2009 2014.
 past performance not indicative future.
 5 return netapp. nasdaq s&p 500.
. 100. 189. 284. 212. 190. 197.
 nasdaq composite. 144. 170. 182. 202. 253.
 s&p 500. 138. 162. 170. 199. 240.
 s&p 500. 143. 162. 186. 189. 236.
 factors market price common stock fluctuate.
.
 risk factors. unregistered securities


stock performance graph shareholder return series a c compared with 500 stock index peer group cbs news scripps network. time warner. viacom.
 walt disney.
 assumes $ 100 invested september 18 2008 s&p 500 index peer group companies reinvestment dividends september 18 2008 december 31 2009 2010 2011.
 cash borrowings revolving credit facility future financing transactions.
 management purchase shares open market prevailing prices securities laws requirements subject to stock price business conditions market conditions.
 repurchase program expiration date.
 funded cash.
 no repurchases series a b three months december 31 2011.
.
 2009 2010
 $ 102. $ 222. $ 301. $ 296.
 $ 78. $ 162. $ 225.217.
 83. 165. 75. 235.
 74. 86 92. 104.
 68. 79 100. 70 121. 138.


ownership environmental capital expenditures property acquisitions marathon ashland.
 original contributor no ownership.
 ashland net gain net loss.
 revenues increased $ 5. 822 billion 2004 2003 $ 6. 040 billion.
 increases rm&t segment higher acquisition costs crude oil refined products feedstocks manufacturing expenses.
 expenses increased $ 105 million 2004 $ 97 million.
 increase stock-based compensation business transformation outsourcing.
 impacted start-up costs project complying governmental regulations.
 increase 2003 employee benefit expenses.
 $ 24 million organizational business process changes.
 inventory market valuation reserve cost value.
 crude oil prices below $ 22 per barrel.
 2002 results income $ 71 million.
 net interest financial costs decreased $ 25 million 2004 2003 $ 82 million 2002.
decrease 2004 interest income.
 2003 capitalized interest construction projects interest rate swaps tax deficiencies.
 foreign currency gains $ 9 million $ 13 million $ 8 million 2004 2003 2002.
 loss 2002 retirement $ 337 million debt loss $ 53 million.
 ashland 38 percent increased $ 230 million 2004 $ 129 million.
.
 equatorial guinea holdings gepetrol 25 percent $ 7 million 2004 start-up costs.
 income taxes increased $ 143 million 2004 $ 215 million 388 million $ 720 million increases income taxes.
 tax rate 2004 36. percent. 2003 2002.
 higher rate 2002 10 percent tax profits north sea oil gas.
 one-time noncash deferred tax adjustment $ 61 million rate increase.
 tax rate.
tax rate 35. 0% 0 %. %
 foreign operations 1. 3. 4 5.
 local taxes federal tax. 2 3.
 federal tax. 3. 4
 tax rate 36. 6%. 6 %. 6 % 42. 1%. 1 %
 deferred tax effect supplemental tax.
 tax rate.


consolidated financial statements union pacific corporation subsidiary companies references 201ccorporation subsidiaries railroad company.
.
 class i railroad.
 network 31974 route miles pacific gulf coast ports midwest eastern.
 gateways mexican gateways.
 own 26012 miles operate remainder trackage rights leases.
 serve western two-thirds country coordinated schedules rail carriers freight atlantic pacific coast southeast southwest canada mexico.
 export import traffic gulf coast pacific coast ports mexican canadian borders.
 railroad subsidiaries affiliates reportable operating segment.
 net financial results segment.
 freight revenue commodity group 2014 2013 2012.
 agricultural products
 automotive
 chemicals
 coal
industrial products 4400 3822 3494
 intermodal 4489 4030 3955
 freight revenues $ 22560 $ 20684 $ 19686
 revenues 1428 1279
 operatingrevenues $ 23988 $ 21963 20926
 customers. outside.
 commodity mexico.
 $ 2. 3 billion 2014 $. 1 billion 2013 $ 1. 9 billion 2012.
 consolidated financial statements accounting principles.
.
.
 union pacific corporation subsidiaries.
 affiliated companies 50% equity method.
 intercompany transactions eliminated.
 no majority-owned investments consolidation.
 cash equivalents maturities three months less.
 receivable reduced allowance doubtful accounts.
 historical losses credit worthiness economic conditions.
 other assets.


management jpmorgan chase. annual report credit exposure net fair value derivative receivables capture future variability.
 firm calculates three measures derivatives credit loss peak risk equivalent average exposure.
 incorporate netting collateral benefits.
 peak exposure extreme 97. 5%. confidence level.
 exposure risk derivative exposure loan.
 loss derivative counterparty.
 less extreme primary credit approval derivative transactions.
 avg expected fair value derivative receivables future collateral.
 metric pricing credit capital cva.
 three year avg exposure $ 37. 5 billion $ 35. 4 billion december 2014 2013 receivables net collateral $ 59. 4 billion $ 51. 3 billion 2014 2013.
 fair value derivative receivables incorporates credit quality counterparties.
cva based on firm 2019s avg counterparty credit spread derivatives market.
 primary components credit spreads new deal activity market environment.
 believes active risk management credit risk derivatives.
 wrong-way risk correlation between exposure credit quality.
 factors influence correlations.
 firm adjust cva avg.
 manages exposure credit derivative transactions interest rate foreign exchange equity commodity derivative transactions.
 graph shows exposure profiles derivatives portfolio 10 years dre avg metrics.
 exposure after first year no new trades.
 table summarizes ratings profile by derivative counterparty derivative receivables.
 scale based on internal ratings s&p.
 profile derivative receivables 2014 2013 december 31 exposure net collateral %.
december 31 millions
 aaa/aaa-/aa3 $ 19202 32% % $ 12953 25% 25 %
 a+/a1 a-/a3 13940
 bbb+/baa1-/baa3 19008 15220
 bb+/ba1 b-/b3 6384 6806
 ccc+/caa1 837 3415 7
 $ 59371 100% 100 % $ 51324
 prior period amounts revised current period.


royal caribbean cruises ltd.
 financial statements 2012 determined fair value pullmantur unit $ 145. 5 mil lion recognized impairment charge $ 319. 2 million probability-weighted discounted cash flow model.
 charge recognized earnings fourth quarter 2012 reported pullmantur assets.
 fourth quarter 2014 assessment royal caribbean fair value less carrying two-step goodwill impair ment test.
 economic conditions capital results fuel prices foreign exchange rates.
 estimated fair value exceeded carrying value two-step goodwill impairment test.
 fair value exceeded financial performance solid.
 annual impairment review fourth quarter 2014.
 two-step goodwill impairment test.
 estimated fair value probability-weighted discounted cash flow model.
assumptions in discounted cash flow model operating results cost capital terminal value.
 transfer of vessels from cruise brands to pullmantur.
 2015 results.
 added future cash flows.
 assigned probability to.
 discounted cash flows.
 fair value carrying value by 52% no impairment goodwill.
 targeted at spanish portuguese latin american markets.
 economic instability uncertainties in forecasting results future cash flows.
 economic events impact business valuation.
 estimation of fair value discounted future cash flows includes uncertainties judgment revenues operating costs marketing expenses interest rates ship additions retirements industry competitive environment economic business conditions.
changes future cash flows transfers brands pullmantur fleet impairment charge pullmantur goodwill.
 transfers significant cash.
 transfers fail step impairment test.
.
 intangible assets reported balance sheets.
 indefinite-life intangible 2014pullmantur trademarks trade names $ 214112 $ 204866
 foreign currency translation adjustment
 $ 188038
 fourth quarter 2014 2013 2012 annual impairment review pullmantur trademarks names discounted cash flow model relief-from-royalty method fair value carrying value.
 royalty rate agreements.
 dis- count rate comparable pullmantur unit goodwill impairment test.


shareowner return performance graph material future filing securities act 1933 exchange act 1934.
 five year comparison shareowners 2019 returns class b common stock standard 500 index dow jones transportation average.
 quarterly stock price reinvested dividends $ 100 invested december 31 2008 500 index dow jones average class b common stock.
/31/2008
 united parcel service. $ 100. $ 107. 140. 145. 151. $ 221.
 standard poor 2019s 500 index. 126. 145. 148. 172. $ 228.
 dow jones transportation average. 118. 150. 161. 228.


restructuring liability 2004 non-operating interest income increased $ 1. 7 million $ 12. million 2005 10. 3 million 2004.
 higher returns invested funds.
 interest expense decreased $ 1. million $ 17. 3 million 2005 18. 3 million 2004 stock debt.
 common stock notes non- cash charge $ 48. 2 million.
.
 operating losses financed equity debt securities agreements royalties investment income employee.
 2006 cash equivalents securities $ 761. 8 million increase $ 354. 2 million $ 407. 5 million 2005.
 $ 313. 7 million proceeds 2006 offering common stock $ 165. million up-front payment $ 52. 4 million stock $ 30. million sale altus pharmaceuticals.
.
cash inflows offset by expenditures 2006 research development sales.
 capital expenditures property equipment $ 32. million.
 december 31 $ 42. million 2007 notes $ 59. 6 million 2011 notes.
 2007 due september 2007 convertible into common stock $ 92. per share.
 redeem 2011 notes march 5 2007.
 convertible common stock $ 14. 94 per share.
 holders convert stock issue 4. million.
 repay 2011 notes not converted $ 1003. per $ 1000 principal amount principal interest redemption date.
 liability december 31 payments 2004 cash sublease operating costs additional charge lease restructuring $ 293 17574.
 december 31 payments 2004 costs additional charge
 restructuring
restructuring liability 2004 non-operating interest income increased $ 1. 7 million $ 12. million 2005 10. 3 million 2004.
 higher returns invested funds.
 interest expense decreased $ 1. million $ 17. 3 million 2005 18. 3 million 2004 stock debt.
 common stock notes non- cash charge $ 48. 2 million.
.
 operating losses financed equity debt securities agreements royalties investment income employee.
 2006 cash equivalents securities $ 761. 8 million increase $ 354. 2 million $ 407. 5 million 2005.
 $ 313. 7 million proceeds 2006 offering common stock $ 165. million up-front payment $ 52. 4 million stock $ 30. million sale altus pharmaceuticals.
.
cash inflows offset expenditures 2006 research development.
 capital expenditures property equipment $ 32. 4 million.
 december 31 $ 42. million 2007 $ 59. 6 million 2011 notes.
 2007 due 2007 convertible common stock $ 92. per share.
 2011 notes march 5 2007.
 convertible stock $ 14. 94 per share.
 holders 4. million.
 repay 2011 notes not converted $ 1003. 19 per $ 1000 principal amount interest redemption date.
 liability 31 2004 cash sublease operating costs lease restructuring liability