financial condition 2008 sales top five customers 45% net sales.
 backlog $ 2. 3 billion december 31 2008 $ 2. 6 billion 2007.
 digital video customers increased purchases products demand digital entertainment ip hd/dvr devices.
 february 2008 acquired assets digital cable set-top dahua digital technology. cable set-tops.
 acquisition position cable market.
 mobility solutions designs manufactures sells installs services analog digital two-way radios wireless lan security products voice data communications wireless broadband solutions government public safety agencies retail energy utilities transportation manufacturing healthcare commercial customers.
 2009 net sales 32% ( 32 % consolidated net sales compared 27% 27 % 2008 21% 21 % 2007.
.
millions years 2009 2008 2007
 segment net sales $ 7008 8093 7729 13 % 5%
 operating earnings 1057 1496 1213 29 23%
 results 20142009 net sales $ 7. 0 billion 13% 13 % $ 8. 1 billion 2008.
 21% % decrease commercial enterprise 10% government public safety.
 regions.
 emea north america latin america higher asia.
 sales lower north america emea latin america higher asia earnings $ 1. 1 billion 2009 decrease 29% % $ 1. 5 billion 2008.
 gross margin 13% decrease unfavorable product mix.
 reorganization charges higher employee severance costs.
 offset decreased sg&a expenses r&d expenditures cost-reduction initiatives.
 gross margin decreased r&d expenditures sg&a expenses increased.
 sales north america 2019s business 58% 2009 57% 57 % 2008.
 regional shift 16% decline outside north america 12% 12 % decline.
 backlog $ 2. 4 billion december 2009 2008.
 emphasis mission-critical communication homeland security solutions.
 innovation mototrbo line apx fffd family.
 affected budgets demand large-scale mission critical communications systems.
 wins globe city statewide communications systems united states projects tetra systems middle east


.
 employee retirement plans 2013 equities fixed-income investments less liquid instruments public.
 value inadequate diversification operating risks.
 investments diversified classes.
 policies include manager oversight investment guidelines compliance audit reviews.
 company seeks input independent advisor investment policy.
 sponsors post-retirement benefit plans medical dental life insurance retirees dependents states age length service.
 unfunded post-retirement benefit obligation $ 13 million december 31 2010.
 contribute $ 30 million to $ 35 million qualified defined-benefit pension plans 2011.
 pay benefits $ 3 million $ 10 million unfunded foreign non-qualified domestic defined-benefit pension plans.
 benefits paid next five years pension plans millions qualified non-qualified.
 38
 $
.
2019 equity 2007 board authorized repurchase 50 million shares stock.
 december 31 2010 repurchase 27 million shares.
 repurchased retired three million shares $ 45 million dilutive impact.
 repurchased retired two million 2009 nine million 2008 $ 11 million $ 160 million.
 cash dividends share. 30. 2010. 2009. 2008.
 decreased quarterly cash dividend $. 075. 235.
 financial statements 2014


item 5.
 market 2019s equity stockholder issuer purchases class common stock trades new york stock exchange symbol.
 february 8 2019 73 stockholders.
 beneficial owners greater record holders portion.
 no established public trading market stock.
 287 holders non-voting february 8 2019 1. 1%. outstanding equity.
 stockholder return 2019s common stock s&p 500 financials index five-year period december 31 2018.
 $ 100 investment dividends.
 not publicly traded listed exchange.
 total returns stockholders december.
 2013 2014 2015 2016 2017
 mastercard $ 100. $ 103. 73 $ 118. 05 126. $ 186. 37 $ 233.
 s&p 500 financials.
 s&p 500 index. 157.


consolidated financial statements 2014 years 2007 2006 2005 purchase price cattle feeding business financed company divestiture not recognized assets liabilities results reflected financial statements 2004.
 september 24 2004 agreement swift foods control ownership $ 300 million assets feedlots live cattle.
 sold feedlots smithfield foods $ 70 million.
 gain $ 19 million net taxes $ 11. 6 million.
 retained live cattle inventory liquidated assets.
 assets liabilities results discontinued operations.
 2007 divestiture nutritional supplement business $ 8. 2 million pre-tax gain $ 6. 2 million $ 3. 5 million after tax.
 gain discontinued operations.
.
 comparative financial results.
 2006 2005
 net sales $ 727. 4131.
asset impairment charge. -240. 9. -59. 4.
 discontinued operations before taxes 92. 5 179. 7 157.
 gain disposal 64. 3 115. 5 26.
 135. 54. 124.
 tax -54. 9. -109. 8. -41.
 discontinued operations tax $ 80. 8. 5 55. 82.
 tax rate discontinued operations higher statutory nondeductibility goodwill divested.
 third 2006 dispose refrigerated pizza business revenues less $ 70 million.
 second quarter 2007 disposed $ 22. million no gain loss.
.
 liabilities balance sheets.
 second quarter 2007 disposal oat milling business $ 35. 8 million


goldman sachs group.
 subsidiaries management scenario analyses.
 conduct comprehensive capital analysis review dodd-frank act stress tests resolution recovery planning.
 capital management regulatory capital 2014.
 scenarios short long term macroeconomic firm- specific assumptions.
 longer-term balance sheet management strategy assets funding equity capital.
 maintaining funding liquidity capital stressed environment.
 consolidated statements financial condition.
 assets businesses non-gaap.
 management risks liquidity.
 balance sheet allocation.
 millions december 2015
 global core liquid assets 199120 182947
 cash 9180
 208300
 secured client financing 221325
 inventory 208836 230667
 financing agreements 63495
 receivables 39976
 institutional client services 312307 352751
 public equity 3991
equity 16985 17979
 23216 24768
 loans 45407 28938
 4646 3771
 investing lending 94245 79497
 inventory assets 406552 432248
 25218 22201
 $ 861395 855842
.
 $ 17. 29 billion $ 18. 24 billion 2015 2014 direct loans corporate private wealth clients fair value.
.
 note 9 consolidated financial statements.
 liquid assets cash.
 liquidity cash outflows collateral.
 management.
 cash balances currencies jurisdictions.
 financing.
 collateralized financing margin loans securities resale agreements government obligations.
 segregate cash securities regulatory requirements.
 short-term fair value daily margin risk.
.
 maintain inventory fixed income equity currency commodity products.
enter resale securities borrowing arrangements cover.
 receivables services relate securities transactions.
 investing lending.
 make investments originate loans.
 longer- term.
 debt securities loans public private equity securities real estate.
.
 less liquid non- financial property leasehold equipment goodwill intangible assets income tax-related receivables equity investments sale miscellaneous receivables.


part ii item 5.
 market 2019s equity matters issuer purchases.
 2019s common stock listed new york stock exchange.
 separation alcoa traded symbol 201caa. 201d november 1 2016 changed stock symbol. october 5 2016 shareholders approved 1-for-3 reverse stock split.
 three shares combined one value share.
 reduced 1. 3 billion to 0. 4 billion authorized shares 1. billion to 0. 6 billion.
 began trading reverse stock split-adjusted october 6  2016.
 two companies alcoa corporation.
 pro rata distribution 80. 1%. outstanding shares alcoa corporation shareholders.
 shareholders received one share alcoa stock three shares.
 retained 19. 9%. outstanding common stock alcoa separation.
disposition retained shares note c consolidated financial statements part ii item 8 form 10-k.
 table high low sales prices quarterly dividend amounts share common stock new york stock exchange adjusted reverse stock split october 6 2016.
 prices prior november 1 2016 reflect trading prices alcoa.
 separation november 1 2016 not comparable post-separation prices.
 30. 69 18. 64.
 28. 21 26.
 26. 27
 separation november 1 2016 27. 22. 74.
 30. 69 18. 34. 16 75.
 number holders common stock 12271 february 16 2018.


april 19 2018 norwegian bliss.
 export financing 80% contract price.
 $ 850. million loan rate 3. 92%. maturity april 19 2030.
 interest payable semiannually.
 april 4 2018 redeemed $ 135. million $ 700. million. senior notes due 2021 100% paid premium $ 5. 1 million accrued interest $ 1. 9 million.
 write off $ 1. 2 million fees.
 $ 565. million.
 2018 $ 270. million. amortization financing $ 6. million loss extinguishment.
 2017 $ 267. million. amortization 23 million loss extinguishment.
 2016 $ 276. million. amortization. million loss extinguishment.
 agreements liquidity limit debt-to-capital ratio dividends.
 ships property equipment pledged collateral debt.
compliance covenants 31 2018.
 scheduled repayments long-term debt capital lease obligations five years.
 2019 681218
 2020 682556
 2021 2549621
 2022 494186
 2023
 1767383
 6609866
 accrued interest liability $ 37. 2 million $ 31. 9 million december 2018 2017.
.
 genting hk apollo repurchased 1683168 shares $ 85. million.
 repurchased 4722312 $ 263. million.
 2012 option purchase norwegian sky.
 paid $ 259. 3 million genting december 31 2016 no further payments due.


purpose entity 201cspe 201d ).
 obtained term loan revolving loan from third party lender secured liens assets finance purchase accounts receivable $ 275 million term loan $ 25 million revolving loan.
 increased $ 35 million.
 quintilesims guaranteed obligations future subsidiaries receivable.
 assets spe available satisfy.
 december 31 2016 full $ 25 million revolving loan available.
 used proceeds repay revolving credit facility $ 150 million repay $ 25 million term loan pay fees expenses remainder working capital.
 debt agreements not exceed senior secured net indebtedness to ebitda maintain minimum interest coverage ratio.
 default company financing arrangements creditors actions acceleration amounts due.
 long-term debt arrangements contain restrictive covenants dividends.
information covenants part ii item 5 201cmarket common equity stockholder matters issuer purchases equity securities 2014dividend policy 201d note 11 financial statements annual report form 10-k.
 december 31 2016 company financial covenants financing arrangements.
 2016 2015 2014 cash flow activities.
 net cash activities $ $ 476 $ 433
 increased $ 384 million.
 net income adjusted non-cash items.
 lower payments income taxes $ 15 million lower cash sales accounts payable accrued expenses.
 lower cash two-day increase 2016-day 2015.
 timing cash receipts.


consolidated financial statements.
 income taxes federal tax return 2006 irs.
 2008 invited compliance assurance process voluntary program large corporations.
 conducts real-time audit issues tax return.
.
 tax uncertainties.
 subsidiaries file tax returns foreign jurisdictions.
 examination taxing authorities adopted provisions.
 uncertainty taxes january 1 2007.
.
 recognized decrease earnings january 1 2007 $ 37 million.
 unrecognized tax benefits $ 70 million.
 1 $ 51 million tax positions tax rate.
 reconciliation unrecognized tax benefits.
 balance january 1 2007 $
 additions tax positions
 additions prior years 3
 reductions
 settlements
 expiration statute limitations
 balance december 31 2007 $
company anticipates payments $ 2 million due state income tax examinations 12 months.
 state foreign tax returns unrecognized tax benefits decrease $ 7 million.
 december 31 2007 $ 42 million tax benefits effective rate.
 recognizes interest unrecognized tax benefits tax refund claims.
 recognizes penalties.
 recorded charges $ 4 million interest expense $ 2 million penalties.
 provision.
 federal income tax liabilities undistributed earnings subsidiaries.
 provided deferred taxes $ 126 million $ 361 million undistributed earnings domestic affiliate.
 determination deferred tax liability practicable.
 non distribution $ 850 million diamond offshore foreign subsidiary.
 recognized $ 59 million.
 tax expense.
 reinvest future earnings foreign activities.
income tax expense 2007 2006 2005 $ 1601 million 1557 million 639 million.
 income tax rate 35% minority interest.


purchase obligations capital projects pulpwood logs wood chips raw materials energy services fiber supply agree 2006 transformation plan sales.
 december 31 future commitments leases purchase obligations millions.
 lease obligations $ 144  $ 117 $ 94 $ 74 $ 60 $ 110
 purchase obligations 2329  462  362  352 323 1794
 $ 2473  $ 579 $ 456 $ 426 $ 383 $ 1904
 $ 76 million lease obligations 2007 23.
 $ 1. 3 billion purchase obliga tions 2007 2013 $ 335 million 2008 199 157 331.
 $ 2. billion fiber supply agreements transformation plan sales.
 rent expense $ 217 million $ 216 million $ 225 million 2006 2005 2004.
international paper agreement 2000 guarantee fee unsecured credit agreement financial institution third-party customer.
 fourth quarter 2006 customer cancelled paid fee $ 11 million included cost products consolidated statement.
 company no future obligations.
 sales businesses property equipment forestlands assets paper makes representations warranties indemnify buyers tax environmental liabilities breaches repre sentations warranties.
 liabilities probable liabilities recorded sale cost transaction.
 packaging purchase price subject post-closing adjust earnings first six months 2007 less targeted.
 adjustment five times shortfall.
 management adjustment future unrecorded liabilities consolidated financial statements.
 exterior siding roofing settlements class action lawsuits masonite. settled 1998 1999.
 sold premdor.
 2001.
liability settlements insurance recoveries retained company.
 first suit.
 filed december 1994 settled january 15 1998 hardboard.
 plaintiffs alleged hardboard siding failed moisture intrusion damage.
 class.
 property owners masonite hardboard siding 1980 1998.
 deadline expired 18 2005 1990 1998 claims by january 15 2008.
 second suit.
.
 masonite. filed 1997 settled january 6 1999 omniwood settlement.
 plaintiffs


.
 common equity issuer purchases securities graph compares annual return common stock 500 stock index peer group five years december 31 2015.
 value investment common stock s&p 500 index peer group $ 100 december 31 2010 dividends reinvested.
 2011 2012 2013 2014 2015
 loews common stock. 106
 s&p 500 index. 180.
 loews peer group.
 competitors ace.
 berkley chubb energy transfer partners. ensco hartford financial services group. kinder morgan energy partners.
. noble spectra energy transocean.
 travelers companies.
 paid quarterly dividends loews common stock since 1967.
 dividends $ 0. 0625 per share paid 2015 2014.


2010 granted. million rsus. employee.
 footnote.
-based compensation financial statements.
 new accounting standards.
 accounting policies accounting standards adoption standards.
 liquidity capital resources cash requirements credit facilities facility expires may 14 2012 letters credit $ 2. 4 billion borrowings.
 interest london interbank rate libor fixed spread credit ratings.
 pay quarterly fees public debt rating.
 institutions exhibit 10 restated credit agreement report form 8-k 16 2007.
 credit facility 2012 extend replace 2011.
 covenants maximum leverage debt ebitda not 4 to 1.
 public debt financial covenant financial ratios.
 satisfy covenants credit facility debt leverage covenant restrict borrowing guarantee levels.
credit facility cash capital liquidity growth debt service cash requirements.
 year-end 2010 borrowing capacity $ 2. 831 billion $ 2. 326 billion cash balance $ 505 million.
 $ 2. 404 billion bank commitments $ 78 million letters credit.
 repaid outstanding borrowings no outstanding balance year-end.
 anticipate capacity adequate liquidity needs.
 undrawn bank commitments available business conditions deteriorate.
 cash depreciation amortization expense last three fiscal years 2009.
 ratio assets to liabilities 1. 4 to 1. 0-end 2010. 2 to 1. year 2009.
 minimize working capital cash management strict credit-granting policies collection efforts.
 significant borrowing capacity additional.


net revenues increased $ 207. 5 million 24. 2%. $ 1063. 9 million $ 856. 4 million 2009.
 revenues product category summarized.
 apparel $ 853493 $ 201714. 9%.
 footwear 127175 136224.
 accessories 43882.
 sales 1024550.
 license revenues.
 1063927.
 sales increased $ 201. 5 million. $ 1024. 6 million 2010 from $ 823. 1 million 2009.
 increase $ 88. 9 million. increase direct consumer sales 19 additional stores 2010 growth increased distribution new offerings product training golf underwear offset $ 9. million decrease footwear sales.
 license revenues increased $ 6. 1 million. to $ 39. 4 million 2010 from $.million 2009.
 license revenues increased sales distribution volume growth.
 developed headwear bags 2011 products sold us.
 gross profit increased $ 120. 4 million to $ 530. 5 million 2010 $ 410. 1 million 2009.
 increased 200 points 49. 9%. 2010.
 100 point increase sales decreased sales markdowns returns improved sell-through rates liquidation sales inventory reserve reversals.
 footwear sport apparel gloves.
 difficult liquidate.
 administrative expenses increased $ 93. 3 million to $ 418. 2 million 2010 324. million 2009.
. 3%.
 marketing costs increased $ 19. 3 million to $ 128. 2 million 2010 108. 9 million 2009 sponsorship television digital costs personnel costs.
 increased expenses performance incentive plan.
 marketing costs decreased. 2010.7 % 2009 costs.


five-year return citi 2019s common stock 201cc 201d held 81805 stockholders january 31 2016 s&p 500 index financial index five december 31 2015.
 $ 100 invested december 31 2010 citi 2019s common stock s&p 500 index index dividends reinvested.
 five-year return s&p 500 financials.
 100.
 55. 102. 82
 83. 118. 106.
 110. 156 144
 114. 178. 166.
 110. 180.


jpmorgan chase. annual report five-year stock performance compare five-year return.
 return s&p 500 index kbw bank index financial index.
 s&p 500 index. equity benchmark companies economic sectors.
 kbw bank index performance banks thrifts publicly traded.
 national regional banks.
 s&p financial index financial companies components s&p 500.
 industry indices.
 investments $ 100 december 31 jpmorgan chase common stock.
 dividends reinvested.
.
 jpmorgan chase 100. 136. 186. 204. 221. 298.
 kbw bank index. 133. 183. 200. 201 258.
 s&p financial index. 128. 174. 197 242
 s&p 500 index. 115. 153. 174. 176 198
31 dollars


annual goodwill impairment test first to second quarter.
 with long-range planning forecasting.
 change preferable delay avoid impairment charge.
 company assessment goodwill non-amortizable assets impairment quantitative assessment annual impairment analysis.
 fair value unit to carrying value.
 exceeds impaired.
 discounted cash flow model market approach earnings multiples companies tobacco industry.
 december 31  2017 carrying value goodwill $ 7. 7 billion related to ten reporting units.
 estimated fair value exceeded carrying value.
 value non-amortizable assets discounted cash flow model relief-from-royalty method.
 carrying value.
 models include management assumptions forecasting operating cash flows subject to changes.
management considers historical experience information fair values estimated assumptions consistent with hypothetical marketplace participant.
 since march 28 2008 spin-off altria group. not recorded charge earnings for impairment goodwill non-amortizable intangible assets.
 marketing advertising costs incur costs products promotions.
 expensed.
.
 uncertainties estimating performance compliance.
 volume-based incentives management assesses estimates likelihood achieving targets records reduction revenue.
 promotions relies on estimated utilization rates historical experience.
 changes in assumptions change financial position operations cash flows.
 employee benefit plans.
 pensions postretirement health care postemployment benefits severance.
 record annual amounts plans calculations.
.
 include actuarial assumptions discount compensation turnover.
 review assumptions trends.
.
modifications amortized future periods.
 assumptions obligations experience.
-average discount rate assumptions pensions postretirement plans.
 pension plans. 51%. 51 %. 52 %
 postretirement plans. 79%. 79. 68%. %
 changes decrease 2018 pre-tax pension postretirement expense $ 164 million $ 199 million 2017 excluding.
 higher return $ 21 million lower amortization $ 12 million unrecognized actuarial gains/losses $ 10 million offset $ 8 million.
 return discount expense.
 fifty-point decrease discount 2018 pension postretirement expense $ 38 million $ 54 million.
 fifty-basis-point return 2018 pension expense $ 45 million.
.
.


guaranteed company guarantees joint venture partners guarantee table.
 non-recourse mortgage debt recourse borrower defaults limited value property collateralized.
 against other assets except exceptions loan documents footnote 7 financial statements.
 investments include joint ventures ownership interest properties total recourse mortgage encumbered properties average interest.
 ownership non recourse mortgage average interest rate average term
 15. 0%. 0 % 10573 $ 920. 5. 53%. 53 % 23.
 50. 0%. 0 % 9307 $ 642. 4. 29%. 29 %.
 48. 6%. 6 % 11519 $ 866. 5. 04%. 04 % 61.
 50. 1%. 1 % $ 144. 5. 52%. 52 % 22.
kimstone 33. 3%. 39 5595 $ 704. 45%. %
 55. 0%. % 2425 $ 112. 1 5. 05%.
 joint ventures prudential real estate investors.
 real estate investment trust.
 institutional investors.
 big shopping centers israeli public company.
 ventures blackstone.
 canadian pension plan investment board.
 february 2 2015 purchased remaining 66. 7%. interest 39-property kimstone portfolio purchase price $ 1. 4 billion $ 638. 0 million mortgage debt.
 unconsolidated real estate joint ventures varying structures.
 non-recourse mortgage loans $ 1. 2 billion.
 debt $ 4. 6 billion share $ 1. 8 billion.
 loans maturities one month to 19 years interest rates 1. 92%.92 %. 39%.
 $ 525. 7 million loan 2015 share $ 206. million.
 loans repaid cash debt refinancing capital contributions footnote 7.


westrock company financial statements 2014 earnings foreign subsidiaries subject repatriation provide taxes.
 unremitted earnings differences foreign subsidiaries indefinitely reinvested.
 taxes.
 september 30 2019 estimate outside basis difference subsidiaries approximately $ 1. 6 billion.
 purchase accounting adjustments undistributed earnings equity components.
 taxes due reversal differences.
 distribution dividends dispositions subject incremental.
 income taxes adjustment foreign tax credits withholding taxes jurisdictions.
 september 30 2019 determination unrecognized deferred tax liability undistributed foreign earnings not practicable.
 reconciliation unrecognized tax benefits.
 balance beginning fiscal year $ 127. $ 148. 166.
 additions purchase accounting.
 additions tax positions current year.
 prior fiscal years.
 reductions tax positions prior fiscal years 0. 5 5. 3 25. 6
 settlement 4. 29. 4 14. 1
 currency translation adjustments -1. 7. 7 6. 2.
 reductions statute 3. 2 2. 0 8. 1
 end fiscal year $ 224. 3 $ 127. 1 $ 148.
 2019 acquisition.
 2018 2017 acquisition.
 tax positions year foreign subsidiaries.
 2019 state foreign audit examinations.
 2018.
 2017.
 2018 unrecognized tax benefits $ 224. 3 million $ 127. 1 million interest penalties.
 unrecognized tax benefits $ 207. 5 million $ 108. 7 million effective tax rate.
 liabilities changing facts circumstances tax rate.
uncertain tax positions cash flows benefit.
.
 commitments contingencies 2014 tax liability estimated interest penalties unrecognized tax benefits.
 september 30 2019 liabilities $ 80. million.
 2018 liabilities $ 70. 4 million.
 results 2019 2017 expense $ 9. 7 million $ 5. 8 million $ 7. 4 million indirect benefits.
 tax benefits decrease $ 8. 7 million next twelve months expiration limitations settlement issues.


united parcel service.
 subsidiaries financial statements 2014 table summarizes unrecognized tax benefits.
 balance january 1 2007 $ 373
 additions 13
 additions prior 34
 reductions
 changes settlements
 lapses statute limitations
 balance december 31 2007 $ 355
 unrecognized tax benefits tax rate $ 134 million.
 tax benefits $ million claims prior years.
 net receivable prior year income tax matters.
 penalties.
 accrued penalties $ 5 million interest $ 36 million 2007.
 recognized liability penalties $ 6 million interest $ 75 million.
 receivable interest $ 116 million tax benefits refund claims.
.
.
.
.
 resolved.
 federal income tax matters 1999.
third quarter 2007 stipulation dismiss case justice withdrawing refund claim 1994 subsidiary france.
 write-off tax balances $ 37 million increase income tax expense.
 offset favorable developments.
 federal.
 state non.
 contingency matters.
 february 2008 irs completed audit tax years 1999 2002 limited issues appeals office 2009.
 2003 2004.
 2009.
 no subject.
 state local non.
 income tax examinations 1999.
 matters litigation.
 years elapse tax position.
 difficult predict outcome.
 unrecognized tax benefits increase decrease twelve months.
 timing interest deductions deductibility acquisition costs filing requirements allocation income expense jurisdictions foreign subsidiary consolidated return.
 changes settlement litigation examinations expiration statute limitations unforeseen circumstances.
 estimate change


five-year performance comparison 2013 graph shareholder returns corporation compared peer group index dj trans s&p 500.
 assumes $ 100 invested common stock union pacific corporation december 31 2007 dividends reinvested.
 purchases equity securities 2013 repurchased 13804709 shares common stock average price $ 115. 33.
 table common stock repurchases fourth quarter 2012 shares purchased average price paid share plan maximum.
 oct. 1. 31 1068414. 1028300 16041399
. 659631.
. 31 411683. 15035949
 2139728. 2033750
 shares purchased quarter 105978 shares delivered employees pay stock option prices excess tax withholding obligations.
1 2011 board authorized repurchase 40 million shares common stock march 31 2014.
 open market.
 management timing.


increased $ 64 million. $ 710 million 2013 $ 646 million 2012 due special charges $ 92 million post-petition interest unsecured obligations penalty interest 10. 5%. secured notes 7. 50%. senior secured notes.
 nonoperating expense $ 84 million 2013 foreign currency losses $ 55 million debt extinguishment charges $ 48 million.
 income 2012 $ 280 million special credit commercial dispute foreign currency losses.
 reorganization items revenues expenses gains losses provisions.
 reorganization items 2012 millions.
 pension postretirement benefits
 labor-related
 financing renegotiations rejections
 value conversion discount
 professional fees
 reorganization items $ $ 2179
 contributions reorganization reductions pay benefits deemed claim equity reorganized entity.
employee group received claim cost savings reductions pay benefits work rule changes.
 total value approximately $ 1. 7 billion.
 estimated modification financings aircraft entry orders unsecured facility agreements special revenue bonds.
 debtors recorded estimated claim rejection motion filed claim.
 note 2 american 2019s consolidated financial statements.
 debtors agreed allow post-petition unsecured claims obligations.
 31 2013 recorded reorganization charges claim amounts rejected special facility revenue bonds $ 180 million allowed unsecured claims 1990 1994 special facility revenue bonds improvements jfk.
 plan allowed unsecured creditors conversion discount 3. 5%.
 recorded fair value discount confirmation.


31 2006 company leased office laboratory connecticut san diego four foreign facilities japan singapore china netherlands leases june 2011.
 leases renewal options one to five years.
 annual payments.
 2007 5320
 2008 5335
 2009 5075
 2010 4659
 2011 4712
 2012 12798
 rent expense deferred gain sale $ 4723041 4737218 $ 1794234 31 2006 2005.
.
 2006 46857512 shares 4814744 shares sold employees consultants restricted stock agreements.
 five years.
 unvested shares repurchase original price.
 36000 shares repurchase.
 issued 12000 shares restricted stock award employee 2005 stock incentive plan performance.
 vest monthly three-year.
 stockholders approved.
 issuance options ceased.
2005 stock plan 11542358 shares 2019s common stock reserved available.
 automatic annual increase shares reserved issuance 5% last day preceding fiscal year determined board directors.
 illumina.
 financial statements 2014


management financial condition results consistent basel committee lcr.
 includes stringent requirements accelerated time line high-quality liquid assets outflow assumptions.
 proposed rules impact develop strategies compliance.
 principles lcr consistent liquidity management framework rule deposit liquidity funding business activities investment securities portfolio contingent credit.
 2014 basel committee revised proposal net stable funding one-year liquidity standard implementation 2018.
 changes operationally linked deposits reduction funding securities.
 evaluating.
 implementation strategies.
.
 banking regulators proposal nsfr.
 contractual cash obligations long-term contractual cash obligations due as december 31 2013.
 recorded consolidated statement condition operating leases interest long-term debt capital leases.
.
december 31 2013 millions payments less than 1year 1-3years 4-5years 5years
 long-term debt $ 10630 $ 1015 $ 2979 2260 4376
 operating leases 923  208 286 209 220
 capital lease obligations 1051 99 185 169 598
 cash obligations $ 12604 $ 1322 $ 3450 $ 2638 $ 5194
 long-term debt excludes capital lease obligations interest-rate swaps.
 payments exception floating-rate debt indexed rate december 31 2013.
 obligations settled cash less than one year deposits federal funds securities repurchase short-term borrowings.
 notes 8 9.
 obligations derivative instruments settlement.
 note 16.
obligations under pension post plans note 19 financial statements 8 not table.
 information cash obligations long-term debt capital leases notes 10 20.
 consolidated statement cash flows liquidity information.
 table commitments duration as december 31 2013.
 not recorded consolidated statement condition.


.
 december 31 2016 cash equivalents $ 683 million debt $ 10478 million current capitalized debt.
 $ 470 million foreign entities subject.
 income taxation repatriation.
 majority deposits-in-transit daily settlement activity.
 flows twelve months operating cash capital expenditures debt service.
 quarterly dividends.
 board investment opportunities results financial condition cash requirements future prospects.
 dividends limited debt agreements.
 regular quarterly dividend $ 0. 29 per common share payable march 31  2017.
 cash flows $ 1925 million $ 1131 million $ 1165 million 2016 2015 2014.
 net cash net earnings.
 increased $ 794 million 2016 decreased $ 34 million 2015.
 increase increased net earnings.
2015 decrease cash due to $ 88 million sale check warranty contracts gaming industry lower net earnings offset by changes working capital.
 expenditures investing principal capital expenditures computer software property equipment.
 invested $ 616 million $ 415 million $ 372 million 2016 2015 2014.
 expect invest 6%-7% 2017 revenue.
 used $ 0 million $ 1720 million $ 595 million cash 2016 for acquisitions equity investments.
 note 3.
 cash sale 2015 warranty contracts gaming industry 15.
.
 debt interest lease data processing maintenance.
 10.
 table summarizes contractual obligations commitments as december 31 , 2016 millions.
 less 1 year 1-3 years 3-5 years 5 years
debt 10591 1573 2536 6150
 2829 381 706 595 1147
 leases 401
 data processing maintenance 557 242 258
 obligations
 $ 14429 1068 2712 3264 7385


stock performance graph shareholder return $ 100 31 2012 reinvestment dividends 2019s common stock s&p 500 retail index.
 2012 2013 2014 2015 2016 2017
 2019reilly automotive inc. $ 100 $ 144  $ 215 $ 283 $ 311 $ 269
 s&p 500 retail index 144 158 197 206 265
 500 $ 100 130 157


alexion pharmaceuticals.
 financial statements 2014 years december 31 2007 2006 december 31 2005 july 31 2005 amounts thousands share 2006 completed final phase trial pexelizumab.
 pursue development.
 march 30 2007 collaboration agreement.
 terminated march 2007 remaining $ 10000 non license fee $ 5343  recognized revenue year december 31 2007 contract research revenues.
.
 research institutions universities contractors collaborators government agencies technologies services.
 agreements initial fee annual royalty payments.
 future payments milestones.
 minimum royalty payments sales products.
 clinical manufacturing development agreements trials.
 contract site services patient enrolment.
 scale-up.
 executed large-scale product supply agreement lonza sales long-term commercial manufacture soliris.
maintain rights provide minimum funding support.
 terminate.
 recognize expense obligation.
 minimum payments december 31 2007 next five years license agreements clinical manufacturing development agreements.
 2008 $ 707 2860
 2009 552 3750
 2010 322 7500
 2011 300 7500
 2012


asset pool 28% citi holdings december 31 2009 portfolio securities loans assets reduce sales portfolio run-off.
 december 31 had $ 154 billion assets.
 declined $ 197 billion 56% from 2007.
 reduced $ 87 billion year-ago.
 60% assets accounted accrual income volatility.
.
.
.
.
 net interest revenue $ 3173 $ 3332 2723 22%
 non-interest revenue -6855 ( -42906 -20619
 interest expense $ -3682 ( 3682 $ -39574 $ -17896 91% %
 total operating expenses $ 896  $ 988  $ 1070
 net credit losses $ 5420  $ 909  $ 436
 unfunded lending commitments -172
credit reserve -483 2844 378
 provisions credit losses benefits claims $ 5048 $ 3581 $ 885 41%
 loss operations before taxes $ -9626 -44143 -19851 78%
 income taxes -4323 -7740
 loss operations $ -5303 -26994 -12111 80%
 income loss noncontrolling interests -17 -205
 -5286 -26789 -12260 80% %
 assets $ 154 $ 241 $ 351
 2009.
 interest expense increased $ 35. billion 2009 negative revenue marks.
 marks $ 1. 9 billion 2009 38. billion 2008.
 positive $ 1. billion derivative positions $. billion subprime exposures.
 offset negative $ 1. 5 billion alt-a mortgages.write-downs commercial real estate negative. billion monoline insurers liabilities.
 private equity write-downs finance.
 operating expenses decreased 9% lower compensation transaction expenses.
 government loss-sharing agreement.
 provisions credit losses benefits claims increased. billion. credit losses reserve $. billion.
 assets declined 36% driven amortization prepayments sales marks charge-offs.
 sales 800 million pretax gains.
.
 interest expense decreased. billion negative revenue.
. write- downs subprime negative. billion monoline insurers positions.
 write-downs finance-downs investment real estate auction securities.
 negative marks $. billion 2008. 2007.
 operating expenses decreased 8% compensation transaction expenses.
 provisions credit losses benefits claims increased. billion.billion reserve credit losses. billion.
 assets 31% amortization prepayments sales marks charge-offs.


consolidated financial statements guidelines tax position.
 $ 1. 5 million increase unrecognized income tax benefits $ 1. million reduction 2007 retained earnings $. million additional paid capital.
 liabilities unrecognized income tax benefits $ 3. 8 million accrued interest penalties $. million.
 reconciliation tax benefits.
 balance june 1 2007 $ 3760
 additions 93
 50
 reductions
 settlements
 balance may 31 2008 $ 3713
 unrecognized tax benefits tax rate $ 3. 7 million.
 accrued interest.
 2008 recorded $. 3 million accrued interest penalty expense.
 anticipate decrease $ 1. million foreign operations 12 months expiration statute limitations.
 file income tax returns united states federal foreign.
subject authorities including united states canada.
 no longer income tax 31 2003.
 under audit internal revenue service united states 2004 to 2005 tax years.
 fiscal 2009.
 2007 board approved share repurchase program purchase $ 100 million global payments 2019 stock opportunities.
 repurchased 2. 3 million shares common stock fiscal 2008 $ 87. 0 million average $ 37. 85 per share.
 may $ 13. million remaining repurchase authorization.
 no repurchased 2007.
 four employee compensation plans.
 expense recognized straight-line.
 amortized.
 no share compensation capitalized fiscal 2008 2007 2006.


system energy resources.
 financial bank letters.
 2004 amended expire may 2009.
 refinance redeem debt maturity.
 debt common stock issuances require regulatory approval.
 subject tests bond agreements.
 capacity capital needs.
 short-term borrowing authorization ferc borrow march 31 2010 $ 200 million.
 note 4 financial statements short-term borrowing limits.
 order ferc long-term securities issuances.
 authorization extends through june 2009.
 receivables money pool december 31.
 2008 2007 2006 2005
 may 2007. million receivable replaced receivable entergy new orleans.
 note 4 financial statements.
 owns operates grand gulf.
 risks nuclear plant.
include risks disposal radioactive materials regulatory changes limitations insurance nuclear operations technological financial uncertainties decommissioning nuclear plants sufficiency funds decommissioning trusts.
 early shutdown grand gulf system energy additional funds decommissioning.
 environmental risks energy facilities operations authorities air water quality control substances hazardous wastes.
 management believes environmental regulations.
 change future compliance costs.
 accounting estimates financial statements accounting policies estimates judgments


return graph compares state street common stock s&p 500 s&p financial index kbw bank index five- year.
 investment $ 100 state street common stock index december 31 2008 reinvestment stock dividends.
 s&p financial index 81 companies 17 financial services 22 insurance 19 real estate 23 banking.
 kbw bank index banks publicly traded. 24 banks thrifts.
 state street corporation $ 100 111 118 105 125
 s&p 500 index 126 146 172
 s&p financial index 117
 kbw bank index 121


.
 locomotives freight cars.
 december 2009 2008 $ 2754 million $ 927 million depreciation $ 2024 million $ 869 million depreciation capital leases.
 charge income depreciation depreciation expense.
 future lease payments leases 2009 leases capital leases.
 2010 576
 2011
 2012
 2013
 2014
 lease payments $ 5312 $ 2975
 interest
 payments
 majority capital lease payments locomotives.
 rent expense leases one month $ 686 million 2009 $ 747 million 2008 $ 810 million 2007.
 variable rental expense term.
 contingent rentals sub-rentals.
.
 contingencies lawsuits pending against subsidiaries.
determine effect claims on results operations financial liquidity probable estimated recorded liability.
 expect lawsuits claims environmental costs commitments contingent liabilities guarantees results financial liquidity insurance recoveries.
 cost charged expense cost incidents.
 third-party actuaries expense liability.
 federal employers 2019 liability act governs compensation work-related accidents.
 damages assessed fault out-of-court settlements.
 offer services rehabilitation programs for employees injured


table details growth global average berths north american european cruise guests five years weighted-average supply berths royal caribbean cruises.
 north american european.
 weighted-averagesupply. north
 2009 363000 84050 17340000 10198000 5000000
 2010 391000 18800000 10781000 5540000
 2011 412000 92650 20227000 11625000
 2012 425000 20898000 11640000 6139000
 2013 432000 98750 21300000 11816000 6399000
 estimates cruise guests weighted-average supply berths based data association.
 statistical analysis.
 cruise line international association nights 2009 2012.
 2013 estimates.
 united states america canada.
 clia europe european cruise council 2009 2012.
2013 estimates.
 majority cruise guests 56% 56 % global cruise guests 2013.
 compound annual growth rate 3. 2%. 2009 to 2013.
 europe 30% global guests 2013.
 annual growth rate 6. 0%. 2009 to 2013.
 asia/pacific region higher growth rate small sector.
 asia/pacific region 4. 5%. global cruise guests 2013.
 compound annual growth rate 15% 15 % 2011 to 2013.
 cruise lines.
 carnival corporation plc costa cunard holland america iberocruceros disney msc norwegian oceania.
 compete vacation alternatives hotels sightseeing destinations.
 demand influenced political economic conditions.
 consumer spending.
operating strategies protect environment serve global guest base grow business enhance revenues brands expenditures ensure cash liquid ity maximizing return invested capital shareholder value maintenance ships transfer innovations brand fleet new cruise ships deploying markets itineraries optimize returns focus markets customer preferences expectations profitability


2012 2011 2010
 real $ 40. 42.
 euro 27. 26. 18
 pound sterling. 17.
 rupee.
 $ 90. 62.
 impact earnings 10% change.
 revenue $ 100. 8 million income $ 9. million unfavorable foreign currency impact 2012 stronger.
 dollar.
 foreign exchange risk management policy derivative instruments forward contracts options reduce volatility rate fluctuations.
 international operations revenues expenses local currency limits exposure risk.
 instruments.
 entered contracts hedge intercompany loans.
 $ 115. 6 million fair value.
 hedge risks not accounting.


.
 locomotives freight cars.
 consolidated statements december 2016 2015 $ 1997 million $ 1121 million depreciation $ 2273 million $ 1189 million depreciation capital leases.
 charge income depreciation depreciation expense.
 future lease payments 31 2016.
 461 221
 2018
 2019
 2021
 lease payments $ 3043 $ 1355
 interest
 1105
 96% 96 % capital lease payments locomotives.
 rent expense leases one month $ 535 million 2016 $ million 2015 $ 593 million 2014.
 variable rental expense term.
 contingent rentals sub-rentals not significant.
.
 lawsuits pending against subsidiaries.
determine effect claims on operations financial liquidity.
 recorded liability probable estimated.
 lawsuits claims environmental costs commitments contingent liabilities guarantees financial liquidity insurance recoveries.
 cost cost.
 actuarial analysis expense liability.
 federal employers 2019 liability act compensation work-related accidents.
 damages assessed fault out-court settlements.
 offer services rehabilitation programs for employees injured work.
 personal injury liability not discounted uncertainty timing future payments.
 94% recorded liability related asserted 6% 6 % unasserted claims 31.
 uncertainty future costs range $ 290 million to $ 317 million.
 record low end range loss probable.
 estimates vary litigation.


tower corporation subsidiaries financial statements 2014 table effect net loss per share fair value provisions.
 stock-based compensation.
 estimated fair value option calculated black-scholes option-pricing model.
 loss $ -1141879 ( $ -450094 $ -194628
 stock-based employee compensation expense fair value -38126 ( -50540 -51186
 $ -1180005 ( $ -500634
 loss share $ -5. 84. -2. 35. -1. 15
 -6. 61 -1. 46.
 value financial instruments december 31 2002 carrying amounts. 6 $ 450. $ 210. 9 $ 212. 7 million $ 1. fair values $ 291. 4 million $ 187. 2 million $ 144. 4 $ 780. million.
december 31 2001 carrying company 5. 25%. 6. senior $ 450. million $ 204. 1 million $ 212. 8 million $ 1. billion fair values $ 268. 3 million $ 173. 1 million $ 158. 2 million $ 805. million.
 quoted market prices.
 values financial instruments approximate fair values december 31 2002.
 401 ( k ) plan employees.
 matches 35% contributions 5% compensation.
 contributed $ 979000 $ 1540000 $ 1593000 31 2002 2001 2000.
 2001 issued.
 asset retirement obligations. standards liabilities retirement long-lived assets.
.
 effective january 1 2003.
 first quarter 2003 financial position results.
 august 2001 issued.
-lived.
.
long-lived assets retains fundamental provisions.
.
 144 clarifies measurement classification issues.
.
.
 144 supersedes accounting reporting disposal business segment.
 effects disposal extraordinary events transactions.
.
 retains requirement.
 report discontinued operations broadens disposal transactions.
.
 excludes goodwill intangible assets not amortized accounting.
.
 implemented.
 144 january 1 2002.
 impairment assessments decisions discontinued operations standard 2002.


american tower corporation subsidiaries financial statements loss retirement long obligations includes cash paid debt value cash convertible notes non-cash charges write-off deferred financing fees.
 includes gains repurchasing refinancing debt obligations.
 earnings per common share 2014basic diluted income 2012 2011 2010 common shares.
 income dilutive common share equivalents unvested restricted stock shares issuable stock options warrants treasury stock method conversion convertible notes.
 retirement plan company 401 ( k ) plan employees age employment requirements.
 matching contribution 31 2012 2011 2010 50% maximum 6% participant contributions.
 contributed $ 4. 4 million $ 2. 9 million $ 1. 9 million plan.
.
 prepaid current assets december 31.
income tax 57665 31384
 leases
 tax 22443 81276
 assets 19037 28031
 66790 59997
 december 222851 250273
 balances revised adjustments.


hologic inc.
 financial statements supply chain manufacturing margins.
 combination manufacturing efficiencies research new detector products.
 privately held warstein manufacturing united states.
 purchase price $ 31300 24100 cash 110 shares hologic common stock $ 5300 $ 1900 acquisition fees expenses.
 determined fair value shares eitf issue.
 99-12.
 110 shares contingent put options closing price below threshold.
 put options expired may 2 2007.
 acquisition one-year earn out eur 1700 $ 2000 payable cash 2006 earnings.
.
 purchase price.
 assets may 2 2006 $ 24800
 research development 600
 technology how
 customer relationship 800
 trade name
 deferred income taxes
 goodwill
 estimated purchase price $ 31300
company plan aeg 2019s activities.
 recorded liability $ 2100 eitf issue.
 95-3 termination.
 2007 reduced liability $ 241 goodwill.
 amounts paid september 29 2007.
 acquired minority interest equity securities german company.
 estimated value $ 1400.
 sold proceeds $ 2150.
 difference $ 750 reduction goodwill.
 final purchase price allocations completed year adjustments financial position results.
 no changes purchase price allocation form 10-k 30 2006.
 intangible assets identified valued.
 customer relationship trade name developed technology know how in-process research development identifiable values.
 fair value determined income.
 customer relationship dependency accounts.
 markets products distributors customers.
 trade name.
 developed technology know how


fourth quarter.
 635000 tons downtime 305000 lack-of-order.
.
 5680
 profit
 printing papers sales 2009 $ 2. 8 billion 3. 4 billion 2008. 5 billion 2007.
 earnings $ 746 million 405 million 2008 415 million 2007.
 sales volumes decreased weak demand reduced production capacity shutdown franklin mill conversion bastrop mill pulp.
 sales price lower declines freesheet paper export.
 shipments lower-margin export markets.
 input costs lower wood chemical costs energy costs.
 freight costs.
 maintenance downtime.
 operating costs.
 lack-of-order downtime increased 525000 tons 120000 tons shutdown paper franklin mill 135000.
earnings 2009 $ 671 million alternative fuel $ 223 million shutdown franklin mill $ 9 million 2008 $ 30 million shutdown paper machine.
 first-quarter sales volumes.
 price realizations higher.
 input costs wood energy chemicals.
 maintenance downtime lower operating costs favorable.
 papers net sales 2009 $ 960 mil increased $ 950 million 2008 $ 850 million 2007.
 profits $ 112 million $ 186 million 2008 $ 174 2007.
 volumes increased higher export shipments.
 sales price realizations lower lower export prices foreign exchange rates.
.
 costs energy.
 maintenance operating costs.
 foreign exchange.
 2010 sales volumes lower.
 profit margins higher geographic sales mix higher main costs.
 european papers net sales 2009 $ 1. bil lion. 2008. 2007.
profits 2009 $ 92 million 115 million inverurie mill $ 39 146 million 2008 $ 171 million 2007.
 sales volumes lower reduced freesheet paper inverurie mill.
 sales price decreased western margins increased poland russia currency devaluations.
 energy chemical costs.
 main tenance downtime costs higher manufacturing costs lower.
 profits foreign exchange impacts.
 2010 sales volumes decline demand.
 sales price realizations increase eastern europe


united states 1400-person sales force 300000 merchants $ 130 billion payments.
 goodwill $ 3. 2 billion merger north america growth not deductible income tax.
 merger assigning goodwill units.
 incurred transaction costs $ 24. 4 million selling administrative expenses consolidated statements.
 preliminary estimated values intangible assets.
 customer-related intangible assets 977400
 acquired technology 457000
 trademarks trade names 176000
 covenants-not-to-compete 28640
 acquired intangible assets
 income approach projected cash flows discounted present value.
 average cost capital debt.
.
 acquired technology valued replacement cost method deterioration obsolescence.
 trademarks trade names valued relief-from-royalty approach.
method assumes trade marks names value relieved royalties.
 future revenue brands royalty rate-average cost capital.
 discount rate capital.
 amortization acquired intangible assets 11 years.
 customer-related intangible assets 7-20 years.
 acquired technology 5 years.
 trademarks names 7 years.
 covenants-not-to-compete 1-4 years.
 heartland revenues income 4% less than. 5% revenues income 2016.
 unaudited pro forma information results operations merger.
 accounting policies pro forma adjustments financial information.
 amortization depreciation interest expense long-term debt reduction revenues operating expenses fair value adjustments acquisition-method elimination nonrecurring transaction costs merger.
.
 10-k annual report


unfunded credit commitments.
 december 31 millions
 commercial $ 39171 31009
 consumer 10875
 real estate
 $ 53347 44835
 commitments extend credit funds.
 2007 commercial commitments $ 8. 9 billion financial services companies.
 2006 $ 8. 3 billion.
 fixed expiration dates fee termination clauses credit quality.
 commitments expire unfunded cash requirements less total.
 home equity lines 80% unfunded credit commitments.
 market street $ 8. billion 2007 $ 5. 6 billion 2006 201ccommercial 201d categories.
.
 medical surgical hospitals 5%.
 pledged $ 1. 6 billion federal reserve bank $ 33. 5 billion federal home loan bank.
directors officers pnc affiliated companies loans subsidiary banks.
 same terms interest rates collateral risk collectibility unfavorable features.
 loans $ 13 million 2007 $ 18 million 2006.
 new loans $ 48 million funded repayments $ 53 million.


.
 2013 export sales.
 $ 246 million $ 277 million $ 275 million 2010 2008.
 intra-company sales two percent 2010 three percent 2009 one percent 2008.
 customer $ 1993 million $ 2053 million $ 2058 million 2010 2009 2008.
 cabinets plumbing architectural specialty products.
 sales operations.
 $ 5618 million $ 5952 million $ 7150 million 2010 2009 2008.
 sales property additions depreciation amortization discontinued.
 impairment charges plumbing products $ 1 million installation services $ 720 million.
 2009 plumbing 39 million specialty products $ 223 million.
 cabinets $ 59 million plumbing $ 203 million installation services $ 52 million specialty products $ 153 million.
.
2009 company recognized loss plan freeze future benefit accruals january 1 2010 domestic defined-benefit pension plans.
 consolidated financial statements.
 litigation settlement 2009 unit cabinets products.
 installation services segment.
 note financial statements.
 long-lived assets operations.
 $ 3684 million $ 617 million $ 4628 million $ 690 million $ 4887 million $ 770 million december 31 2010 2008.
 assets 2009 2008 excluded discontinued operations.
.
 income millions.
 2009
 income cash investments $ 6
 interest income
 financial investments
 $ 7 $ 29
 consolidated financial statements 2014


notional amounts derivative receivables december 31.
 billions
 interest rate $ 38493 $ 37022
 foreign exchange 2136 1886
 equity 458
 credit derivatives 2241 1071
 commodity 265
 $ 43593 $ 40514
 collateral receivables -6
 collateral $ 44
 notional amounts-party derivative contracts excluding options foreign exchange spot contracts exceed credit losses.
 notional principal amount change hands payments.
 firm held $ 33 billion collateral derivative receivables december 31 2005 $ 27 billion net cash $ 6 billion liquid securities collateral.
 $ 27 billion $ 50 billion derivative receivables.
excluded $ 33 billion collateral $ 10 billion clients transactions secures exposure portfolio.
 excluded credit enhancements letters credit surety receivables.
 firm held $ 41 billion collateral derivative receivables december 31 2004 $ 32 billion net cash $ 9 billion liquid securities collateral.
 benefit $ 32 billion $ 66 billion derivative receivables.
 excluded $ 41 billion $ 10 billion clients secures exposure.
 excluded credit enhancements letters credit surety receivables.
 jpmorgan chase & co.
.
 2005 annual report exposure profile derivatives december 31 2005 table summarizes amounts reported derivative receivables. cost replace market rates counterparty.
 transaction agreement netted mtm exposure collateral represents current credit risk.
credit exposure net value derivative receivables capture future variability.
 firm calculates three measures derivatives-related credit loss peak derivative risk equivalent average exposure.
 incorporate netting collateral benefits.
 peak exposure counterparty extreme 97. 5%. confidence level.
 total potential future credit risk derivatives portfolio not sum peak credit risks.
 credit risk reduced by offsetting transactions separate counter parties one generate credit loss.
 market diversification market-diversified peak measure portfolio aggregation counterparty peak measures maximum losses. if all terparties defaulted.
 derivative risk equivalent exposure riskiness derivative exposure loan.
 unexpected loss derivative counterparty exposure loan exposure.
 less extreme credit loss primary for credit approval derivative transactions.
average exposure expected value derivative receivables future collateral.
 pricing credit capital valuation adjustment.
 exposure $ 36 billion $ 38 billion 2005 2004 compared $ 44 billion $ 57 billion 2005 2004.
 graph exposure profiles derivatives 10 years mdp dre avg metrics.
 declining exposure first year no new trades.


jpmorgan chase. annual report chart shows december 31 posted market risk gains 220 261 days gains eight days exceeding $ 200 million.
 chart includes losses synthetic credit portfolio.
 posted gains 254 days.
 graph losses loss.
 41 days 261 exceeded var measure three.
 losses occurred second quarter 2012 due adverse effect market movements risk positions credit portfolio.
 portfolio experienced seven loss days none losses exceeded var measures.
 sensitivity one-basis-point increase jpmorgan chase 2019s credit spreads.
 impact shift credit curve.
 sensitivity not representative actual gain loss.
 results reflect movement credit spreads maturities changing exposure profile.
 adjustment sensitivity one basis-point increase 2019s credit spread.
 december 31 2012
 31 2011
economic-value stress testing risk.
 reflects loss adverse changes stress testing exposure unlikely events abnormal markets.
 runs weekly stress tests market risks credit equity interest rates currency commodity.
 grid-based approach calculates stress market rallies sell-offs


2017 form 10-k intangible assets amortized over lives tested.
 2016 customer relationship intangibles $ 96 million $ 27 million intellectual property $ 111 million $ 48 million resource industries impaired.
 fair value insignificant.
 fair value level 3 internal projections unobservable measurement inputs.
 impairment $ 132 million restructuring activities operating expense statement.
 note 25.
 amortization expense $ 323 million $ 326 million $ 337 million 2017 2016 2015.
 december 31 2017 expense expected millions.
 2022
.
 no impairments 2017 2015.
 annual impairment tests 2016 fair value unit above carrying value surface mining technology reporting unit.
.
 acquisition bucyrus international.
 2011.
product portfolio mining trucks shovels draglines hydraulic shovels parts.
 develops sells fleet management autonomous.
 annual impairment test 2016 fair value below carrying value second step.
 determined income.
 assets liabilities royalty dealer attrition technological obsolescence discount rates.
.
 recognized goodwill impairment charge $ 595 million $ 629 million october 1 2016.
 fair value determination level 3 internal projections unobservable measurement inputs.
 $ 17 million tax benefit.


analysis depreciation studies.
 changes estimated service lives depreciation rates implemented prospectively.
 group depreciation historical cost depreciable property retired replaced charged to accumulated depreciation no gain or loss recognized.
 historical cost assets estimated using inflation indices labor statistics estimated useful lives studies.
 indices selected correlate major costs asset classes.
 until monitor estimated service lives accumulated depreciation rates.
 determine accumulated depreciation deficient.
 deficiency amortized depreciation expense lives.
 retirements depreciable properties gain or loss recognized if retirement meets conditions unusual material varies significantly from retirement profile.
 gain or loss recognized land assets not railroad operations.
 asset capitalize costs use.
 assets self-constructed.
capital expenditures replacement track assets road properties performed employees track line expansion capacity projects.
 costs capital projects capitalized.
 direct costs material labor equipment.
 indirect costs capitalized construction.
 general administrative expenditures.
 repairs maintenance useful life safety efficiency.
 allocated statistical bases.
 expense repairs maintenance $ 2. 4 billion 2014. 3 billion 2013 $. 1 billion 2012.
 capital leases recorded net present value minimum lease payments value.
 amortization expense computed straight-line method estimated useful lives.
.
 accounts payable current liabilities.
.
.
.
 dividends
 income taxes
 wages
 casualty costs
 interest
 equipment rents
 accounts liabilities 3303


financed acquisition $ 1. billion loan $ 1. billion unsecured notes 61 million shares common stock.
 stock options converted into 4. 5 million shares common stock.
 detailed note 9 12.
 transaction accounted method assets acquired liabilities recognized fair values acquisition date.
 preliminary amounts.
 values not subject to change.
 amounts.
 no one year from acquisition preliminary values.
 working capital 391
 property equipment software 319
 intangible assets
 1800
 trademarks 890
 technology 215
 noncurrent assets 344
 long-term debt 346
 liabilities 361
 deferred tax liability 1035
 assets acquired 2217
 goodwill 2715
 consideration transferred $ 4932
cash equivalents investments receivables assets accounts payable liabilities.
 deferred costs investments.
 unfavorable lease obligations deferred revenues.
 assets $ 31 million deferred tax $ 62 million liabilities $ 32 million $. billion.
 relationships amortized 12 years.
 technology asset 7 years trademarks indefinite.
 goodwill synergies benefits combining hewitt aon future benefits


performance graph five-year period june 30 2019 market performance common stock s&p 500 index peer companies.
 historic not indicative future.
 5 year return jack henry associates. s&p 500 index peer group line graph.
 2014 2015 2016 2017 2018
. 110. 151. 182. 231. 240.
. 126. 142. 166. 224. 281.
. 127. 151. 177. 228. 286.
. 131. 150.
 comparison assumes $ 100 invested june 30 2014 reinvestments dividends.
 returns calculated market capitalization peer group members.
 peer companies computer software hardware services financial institutions.
 companies different 2019 2018.
 adjusted consolidations.
 peer group worldwide. black knight. bottomline technologies.broadridge solutions. cardtronics corelogic. euronet. exlservice. fidelity services. fiserv. fleetcor technologies. global payments. square. ss&c technologies. total system services. tyler. verint. wex.
. bottomline technology. broadridge cardtronics. corelogic. euronet. fidelity. fiserv. global payments. moneygram. ss&c technologies. services. tyler.


five-year shareholder return altria group.
 s&p 500 ii 5.
 common equity matters issuer purchases.
 compares shareholder return. common stock s&p 500 index.
.
 investment $ 100 common stock indices market close december 31 2011 reinvestment dividends quarterly.
 bloomberg return reinvestment dividends ex-dividend date.
 2016 group.
 peer group. consumer product companies competitors. subsidiaries campbell soup coca-cola colgate-palmolive conagra brands. general mills. hershey kellogg kimberly-clark kraft heinz mondel 0113z international. pepsico.
.
 october 1 2012 kraft foods.
.
 changed name.
 mondel 0113z international.
.
 2 2015 foods.
merged owned subsidiary.
 heinz holding corporation renamed heinz company.
 june 12 2015 reynolds american.
 acquired lorillard.
.
 november 9 2016 conagra foods.
 weston holdings.
 changed name conagra foods.
 conagra brands.
.
. 500
 2011 100.
 2012 111. 108. 115.
 2013 143. 135. 153.
 2014 193. 151. 174.
 2015 237. 177 176.
 2016 286. 61 192. 198.
.
.


performance retention awards 2009.
.
 nonvested january 1 2009 873 $ 50. 70
 granted 47. 28
 vested. 23
 forfeited 53.
 nonvested december 31 2009 1060 $.
 $ 22 million unrecognized compensation expense performance retention awards. 3 years.
 subject levels grants.
.
 defined benefit retirement income non-union employees.
 years service highest compensation reductions early retirements.
 defined contribution medical life insurance benefits retirees.
 funded january 1 2010 medicare-eligible retirees retiree medical program contribution health reimbursement account-of-pocket medical expenses.
 amendment projected benefit obligation december 31 2009.
 overfunded underfunded pension plans.
funded status pbo fair value assets.
 benefits salary increases.
 pbo equal accumulated benefit obligation affected salary increases.
 assets measured fair value.
 december 31 date retirement.


entergy arkansas.
 fuel power expenses increased deferred fuel 2004 cost.
 regulatory credits decreased over-recovery grand gulf costs.
 net revenue fuel power expenses regulatory credits.
 analysis change net revenue 2003 2002.
 2002 net revenue $ 1095.
 2002 settlement agreement -154.
 volume/weather.
 asset retirement obligation.
 wholesale revenue.
 deferred fuel cost revisions.
.
 2003 net revenue $ 998.
 2002 settlement agreement recovery ice storm costs 2000 offset.
 1997 settlement 11% return equity transition cost account offset stranded costs.
 ice storms left 226000 212500 entergy arkansas customers without electric power.
 recover charges power restoration.
 damage $ 195 million.
apsc approved settlement agreement 2002 entergy arkansas apsc staff attorney general.
 $ 153 million ice storm costs incremental offset against tca excess deferred amortized over 30 years.
 expenses exceeded tca funds $ 15. 8 million recorded regulatory asset june 2002.
 entergy arkansas $ 18. 1 million customers.
 apsc approved refund checks august 2002.
 tca procedure ceased 2001 earnings evaluation.
 remaining costs $ 32. 2 million addressed $ 22. 2 million capital additions $ 3. 8 million not recovered.
 net income $ 2. 2 million increase 2003 revenue offset operation maintenance expenses.


corporation subsidiaries financial statements.
 long-term obligations business acquisitions 2007 2006 2005 issued promissory notes $ 1. 7 million $ 7. 2 million $ 6. 4 million.
 interest annual rates 3. 6. payable maturity monthly installments.
 assumed liabilities business acquisition quarter 2005 promissory note balance $. 2 million.
 annual interest rate retired 2006.
 commitments contingencies leases office space warehouse distribution facilities trucks equipment.
 future minimum lease commitments 31 2007.
 2008
 rental expense leases $ 27. 4 million $ 18. 6 million $ 12. 2 million 2007 2006 2005.
 guaranty residual values truck equipment leases.
 original cost.
 responsible shortfall.
 more residual.
terminated operating leases december 31 2007 residual value $ 24. 0 million.
 december 2 2005 ford technologies complaint commission keystone five respondents four taiwan manufacturers.
 december 12 2005 ford amended complaint.
 infringed 14 design patents


october 2016 accelerated share repurchase agreement concluded received additional 44 thousand shares common stock.
 table.
 compares common stock s&p 500 index healthcare equipment index.
 initial investment $ 100 market december 30 2011 reinvestment dividends.
 5 year cumulative return&p 500 healthcare index.
 return
 lifesciences $ 127. $ 93. 180. 223. 265.
 s&p 500 116. 153. 174. 198
 500 healthcare equipment index 117. 150.


goldman sachs group.
 subsidiaries operating expenses influenced by compensation headcount business activity.
 salaries discretionary compensation amortization equity awards.
 discretionary compensation by net revenues financial performance labor markets business mix share compensation programs external environment.
 regulatory proceedings.
 operating expenses staff.
 2015 2013
 compensation benefits $ 12678 12691
 brokerage clearing exchange fees
 market development
 communications technology
 depreciation amortization
 occupancy
 professional fees
 insurance
 non-compensation expenses
 operating expenses 25042 22171
 staff period-end 36800
.
 changes reserves reinsurance business interest policyholder balances expenses property catastrophe reinsurance claims.
2013 majority reinsurance.
.
 $ 3. 37 billion agreement rmbs group.
 note 27 financial statements.
.
 operating expenses $ 25. billion 13% 13 % higher 2014.
 compensation benefits expenses $ 12. 68 billion unchanged.
 ratio revenues 37. 5%.
 staff increased 8% 8 % activity regulatory compliance.
 non-compensation expenses $ 12. 36 billion 30% % higher 2014 higher provisions mortgage litigation regulatory matters.
 offset lower depreciation amortization expenses reduction expenses sale metro.
 provisions litigation regulatory proceedings $ 4. 01 billion $ 754 million 2014.
 $ 148 million charitable contribution goldman sachs.
 compensation reduced.
 directors recipients.
.
 operating expenses $ 22. 17 billion unchanged 2013.
compensation benefits expenses $ 12. 69 billion 2014 unchanged.
 ratio revenues 36. 8%. 2013
 staff increased 3%.
 non-compensation expenses $ 9. 48 billion 4% 4 lower 2013.
 lower provisions litigation operating expenses decline insurance reserves.
 offset brokerage clearing exchange distribution fees.
 net provisions litigation regulatory proceedings 2014 $ 754 million $ 962 million 2013.
 charitable contribution $ 137 million goldman sachs gives.
 compensation reduced.
 asks directors recommendations recipients.


five-year performance comparison 2013 graph shareholder returns peer group index dj trans s&p 500.
 assumes $ 100 invested common stock union pacific corporation december 31 2009 dividends reinvested.
 historical not indicative future performance.
 purchases equity securities 2013 repurchased 33035204 shares common stock average $ 100.
 table common stock repurchases fourth quarter 2014 shares price paid maximum.
 oct. 1. 31 3087549 $ 107. 59 3075000 92618000
. 30 1877330. 1875000 90743000
 dec. 1. 31 2787108. 54 2786400 87956600
 7751987 $ 113. 77 7736400
 purchased 15587 shares stock option prices tax withholding obligations.
january 2014 authorized repurchase 120 million shares stock december 31 2017.
 open market.
 management discretion timing.


graph shows five-year comparison shareholder return common stock s&p mid cap 400 russell 1000 index published indices.
 2011 2016 $ 100 invested reinvestment dividends returns.
. corporation 100. 159. 275. 292. 401. 501.
&p mid cap 400 index. 117. 157. 172. 169. 204.
 russell 1000 index 100. 116. 155. 175. 177. 198.
 s&p midcap 400 russell 1000


grand gulf recovery variance due costs uprate.
 volume/weather variance favorable weather residential industrial sales refining.
 fuel recovery variance due deferral increased capacity costs expiration evangeline gas contract january 1 2013 adjustment deferred fuel costs third quarter 2012.
 note 2.
 miso deferral variance due deferral 2013 costs 2010.
 decommissioning trusts variance due lower regulatory credits higher income investments.
 no effect net income offset interest investment income.
 net revenue 2013 2012.
.
 net revenue $ 1854
-to-market -58
 nuclear volume
 fuel expenses
 price changes
 2013 net revenue
 revenue decreased $ 52 million due rising power prices electricity instruments additional financial power sales fourth quarter 2013 protective call options.
additional sales qualify hedge accounting increases forward prices negative mark-to-market variance.
 expected underlying transactions earnings first quarter 2014.
 note 16 financial statements derivative instruments decrease net revenue resupply options purchase power agreements plant.
 table entergy subsidiaries management financial


26 100 calculation adjusted net earnings.
 millions share 2010 2008
 net earnings ball corporation $ 468. $ 387. $ 319.
 discontinued operations tax.
 business consolidation activities.
 gains equity earnings tax.
 gain dispositions tax.
 debt refinancing costs.
 adjusted net earnings $ 433. $ 372. 337.
 diluted share operations $ 2.
 diluted share.
 debt refinancing december 31 2010 increased $ 216. 1 million $ 2. 8 billion 2. 6 billion 2009.
 replaced credit facilities 2011 2015.
 variable rates $ 200 million loan.
 dollars million british sterling million euros.
 multi-currency long-term revolving $ 850 million french multi $ 150.
 revolving credit facilities expire 2015.
 issued $ 500 million 5. 75 percent notes may 2021.
 proceeds purposes.
 2010 issued $ 500 million 6. 75 percent notes 2020.
 redemption $ 509 million. 875 percent 2012 price. 146 percent principal interest.
 april 21 2010 $ 8. 1 million premium unamortized financing costs.
 earnings.
 $ 976 million-currency revolving credit facilities.
 $ 20 million 52 million.
 372 million short-term uncommitted $ 76. 2 million outstanding due $ 175 million borrowings receivable securitization program.
 renewed receivables sales agreement one year.
 $ 125 million january april $ 175 million.
 december 2015 liquidity strong cash flow debt service.
recent financial conditions concerns credit risk company risk.
 credit ratings suppliers customers lenders.
 compliance loan agreements met debt obligations.
.
 agreements credit industrial bond agreements restrictions dividends investments financial ratios guarantees indebtedness.
 details debt receivables notes 12 6 consolidated financial statements 8.


accelerated.
 amortization expense intangibles $ 4. 2 million $ 4. 1 million $ 4. 1 million 2010 2009 2008.
 estimated annual amortization expense balance 2011 2015 $ 4. 8 million.
 long-lived assets reviewed.
 reduced to fair value.
 2010 recognized impairment charges $ 1. 3 million.
 no adjustments carrying value 2009 2008.
 fair value financial instruments debt reflected balance sheet.
 2010 fair value term loans approximated carrying value $ 590 million.
 2009 value $ 570 million below carrying value $ 596 million interest rate margins below.
 estimated fair value upfront cash payment.
 credit rating cash inflows outflows.
 cash equivalents net trade receivables accounts payable fair value.
apply market income financial assets liabilities cash surrender life deferred compensation interest rate swaps.
 value disclosures note 7. mechanical products six-month warranty.
 remanufactured engines three-year warranty.
 record estimated warranty costs.
 changes warranty reserve.
 balance january 1 2009 $ 540
 5033
 claims -4969
 december 31 2009
 acquisitions december 31 $ 2063
 self-insurance reserves medical benefits.
 purchase stop-loss insurance liability.


entergy new orleans.
 subsidiaries management financial receivables money pool december 31 years.
 2016 2015 2014 2013
 $ 14215 $ 15794 442 4737
 note 4 financial statements.
 orleans credit facility $ 25 million november 2018.
 letters credit $ 10 million borrowing capacity.
 december 31 2016 no cash borrowings $ 0. 8 million letter credit outstanding.
 uncommitted letter credit facility.
 $ 6. 2 million letter credit.
 note 4 financial statements.
 authorization october 2017 short-term borrowings not exceed $ 100 million.
 note 4 statements-term borrowing limits.
 long-term securities issuances authorized city council authorization extends june 2018.
 influence financial position results liquidity.
 rates determined regulatory.
city council.
 transfer entergy louisiana new orleans.
 2013 entergy louisiana rate case area regulated.
 rate increase $ 13 million three years. 4%. return common equity.
 2014 council rate increase $ 5. 56 million three years. 13%. return common equity.
 june 2014 council approved settlement 2022 $ 9. 3 million rate revenue increase four years $ 853 thousand annually four-year formula rate plan reports implemented october.
 return common equity. 95%. +/- 40 basis point bandwidth.
 increase bills billing cycle july 2014.
 compliance filings october 2014 rate riders ninemile 6 non-fuel cost recovery interim rider


human capital management human capital management.
 2013 organization design.
 structure 800 employee positions.
 incurred $ 110 million costs implementation severance pension termination benefits corporate property plant equipment impairments.
 december 2013 deferred $ 45 million approved apsc lpsc.
 note 2 financial statements note 13 restructuring charges.
 liquidity capital resources capital structure spending cash flow activity.
 balanced equity debt.
 debt capital 57. 9% (. 9 % 58. 7%. 7 % )
. 6%. 6 %. 8% 8 %
 56. 3%. 3 % 56. 9%. 9 %
. 5%. 5 %. 1%. 1 %
 debt 54. 8%. 8 % 55. 8%. 8 %
calculation excludes arkansas louisiana texas securitization bonds non-recourse to.
 net debt less cash equivalents.
 notes payable commercial paper capital lease obligations long-term debt maturing portion.
 capital debt shareholders equity subsidiaries preferred stock without sinking fund.
 capital less cash equivalents.
 entergy uses debt to capital ratios excluding bonds non.
 net debt to capital ratio outstanding debt.
 long-term debt most total debt.
 long-term debt principal maturities estimated interest payments as december 31  2013.
.
 amounts include payments entergy louisiana system energy sale-leaseback transactions included long-term debt.


priorities re-evaluated new ceo 2011.
 focused priorities 2022 geographic concentration strategy maximize shareholder value capital allocation platform expansion brazil chile colombia united states turkey poland united kingdom corporate debt reduction return capital shareholders dividend 2012 closing sales businesses exiting non markets optimizing profitability integration dpl management realignment utilities generation cost savings overhead costs business requirements systems automation allocation development spending completion 2400 mw construction program integration new projects businesses.
 december 31 2011 projects commenced operations fuel equity interest.
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 50 %.
 equity interest
 71% 71 51%laurel mountain us-wv wind 98 100%
 bulgaria coal 670
 joaquim brazil hydro 24% 24 %
 394 10% 10 %.
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 10 aes solar energy.
 joint venture riverstone holdings equity.
 kalipetrovo ugento soemina francavilla fontana latina cocomeri francofonte sabaudia siracusa manduria apollo rinaldone.
 joint venture.
.
 equity investment.
 risks.
.
.
 2010 120 mw-river hydroelectric plant panama damage.


edwards lifesciences corporation financial statements 13.
 common stock maintains nonemployee directors stock incentive compensation program.
 election receives grant stock options stock units market value $ 0. 2 million 20000 shares.
 grants vest three years service.
 annually director 40000 stock options 16000 restricted stock units common stock total combined annual award exceed $ 0. 2 million.
 grants vest one year.
 2. 8 million shares common stock authorized issuance.
 employee stock purchase plan united states international employees.
 employees purchase common stock 85% fair market value common stock.
 employees authorize withhold 12% compensation common stock purchases limitations.
 available employees outside.
 section 423 internal revenue code.
 authorized 13. 8 million shares.
value option award employee stock purchase subscription estimated date grant black-scholes option valuation model.
 risk-free interest rate estimated.
 treasury yield curve based expected term award.
 volatility historical volatility edwards lifesciences 2019 implied volatility traded options.
 term awards vesting period historical behavior.
 historical data forfeitures annual forfeiture rate 6.
 black-scholes option pricing model weighted-average assumptions options.
 risk-free interest rate. 1%. 4%
 dividend yield
 volatility 33% 33 % 31% 31 %
 life.
 fair value per share $ 31. $.


costa concordia incident instability european landscape.
 long term growth potential.
 europe served 102 ships 108000 berths 2008 117 ships 156000 berths 2012.
 9 ships 25000 berths expected european cruise market 2013 2017.
 table growth global north american european cruise markets guests weighted-average berths five years global cruise guests north american.
 north american european cruise guests
 2008 17184000 347000 10093000 219000 4500000
 2009 17340000 363000 10198000 222000 5000000
 2010 18800000 391000 10781000 5540000
 2011 20227000 412000 11625000
 2012 20823000 425000 12044000 254000 6040000
estimates global cruise guests weighted-average supply berths north america europe based data cruise seatrade insider cruise line international association.
 estimates incorporate statistical analysis.
 cruise line international association guests two consecutive nights 2008 2011.
 2012 represent estimates.
 clia european cruise council 2008 2011.
 2012 estimates.
 asia/pacific region higher growth small sector.
 cruise lines.
 competitors carnival corporation plc costa cunard holland america p disney msc cruises norwegian oceania cruises.
 lines compete with vacation alternatives resort hotels sightseeing destinations.
 demand influenced by political economic conditions.
 consumer spending.
operating strategies protect health safety security guests employees environment strengthen human capital serve global guest base grow business strengthen consumer engagement enhance revenues increase awareness market penetration brands globally focus cost efficiency manage operating expenditures ensure cash liquid ity return capital shareholder value invest fleet ships transfer innovations fleet new cruise ships capitalize portability flexibility ships markets itineraries optimize returns markets enhance technological capabilities customer preferences expectations profitability. 3/27/13


net income $ 4. 6 billion earnings $ 5. 79 per share best performance.
 freight revenues increased 7% $ 19. 8 billion volume growth 2% fuel surcharge pricing gains.
 frac sand coal intermodal shipments declines grain crude oil vehicles rock.
 diesel fuel $ 1. 81 per gallon 22% 22 2016.
 operating expenses $ 334 million.
 gross-ton miles increased 5% fuel expense.
 consumption rate improved 2%.
 cash flow $ 7. 2 billion $ 2. 2 billion reductions $ 3. 1 billion investing $ 2 billion dividends 10% increase quarterly dividend per share $ 0. 605 to $. 665.
 free cash flow dividends.
 financial.
 financial performance.
cash flow operating activities.
 table reconciles non.
 millions 2017 2016 2015
 cash operating activities $ 7230 $ 7525 $ 7344
 investing activities -3086 -3393 -4476
 dividends -1982 -1879 -2344 (
 free cash flow $ 2162 $ 2253 $ 524
 2018 outlook safety safe benefits employees customers shareholders communities.
 multi-faceted approach safety technology risk assessment training engagement quality control capital investments.
 safety culture practices.
 increase detection rail defects crossings educate safety.
 align resources customer demand efficient network ensure surge capability.
 fuel prices projections crude oil natural gas fluctuate.
 sensitive global.
 demand refining capacity geopolitical events weather conditions.
prices fluctuate impact earnings fuel surcharge programs price two months.
 lower fuel prices spending demand products.
 negative commodities coal domestic drilling shipments.


stock performance graph shows shareholder return dividend reinvested s&p 500 s&p information technology index dow jones.
 index five years 26 2015.
 assumes $ 100 invested common stock s&p 500.
 index market 24 2010.
 historic stock price performance not indicative future performance.
 $ 100 invested 9/25/10 index reinvestment dividends.
 last day fiscal year stock september 30th indexes.
 mcgraw hill financial.
.
 dow jones.
.
.
 2011 2012 2013 2014 2015
 apple. $ 100 138 170 254
 s&p 500 index
 s&p information technology index 104
 dow jones. supersector index 103 134 141 183
.


tangible acquired $ 17. 7 million.
 sigma-c.
 virtio corporation.
 acquired 15 2006 all-cash transaction.
.
 presence electronic system design.
 studio solution virtual prototyping technology code development.
.
 paid $ 9. 1 million cash outstanding shares $. 9 million deposited escrow paid former stockholders.
 prior investment virtio $ 1. 7 million.
.
 9076
 investment 1664
 acquisition-related costs
 purchase price
 costs. legal tax accounting fees facilities closure costs employee termination costs.
 paid $. 3 million acquisition costs.
. 4 million balance professional tax service fees facilities closure costs.
 pay $ 4. 3 million over three years former stockholders sales milestones.
 additional purchase price adjustment goodwill.
company agreed pay $. 9 million employee retention bonuses.
.
 performed preliminary valuation allocated purchase consideration assets liabilities.
 acquired $ 2. 5 million intangible $ 1. 9 million technology $. 4 million customer relationships $. 2 million non-compete agreements amortized five seven years.
 acquired assets $ 5. 5 million assumed liabilities $ 3. 2 million.
 excess purchase price $ 6. 7 million.
.
.
 acquired 2005 all-cash.
.
 leading electronic design automation vendor


indemnification obligations arise under arrangements predecessor companies.
 pnc subsidiaries provide indemnification to directors officers employees agents against liabilities pnc subsidiaries.
 advance individuals costs claims undertakings repay if entitled indemnification.
 responsible for similar indemnifications obligations officers directors at acquisition.
 advanced costs.
 to determine aggregate potential exposure obligation.
 visa indemnification payment services business acquires credit debit card transactions through.
.
.
 october 2007 restructuring issued shares visa.
 members.
 received share of visa.
 common stock members.
 obligated to indemnify visa for judgments settlements litigation.
 acquisition national city party to judgment loss sharing agreements with visa banks.
judgment loss sharing agreements responsibilities adverse judgment settlements litigation.
 2012 visa funded $ 150 million escrow account reduced conversion rate visa shares.
 indemnify visa judgments settlements exposure visa litigation.
 pnc sold residential home equity loans securitization continuing involvement.
 recourse loan repurchase obligations transferred assets.
-family loans fnma.
 participated similar program fhlmc.
 assume one-third risk loss unpaid principal balances.
 2011 unpaid principal balance $ 12. 8 billion $ 13. 0 billion.
 maximum exposure $ 3. 9 billion $ 4. billion 2011.
 reserve losses.
 $ 43 million $ 47 million consolidated balance sheet.
payment required programs contractual interest collateral loans losses value losses.
 exposure activity recourse obligations corporate institutional banking.
 table 154 analysis commercial mortgage recourse obligations.
 millions
 january $ 47 $ 54
 reserve adjustments
 losses 2013 loan repurchases settlements
 december 31 $ 43 $ 47
 residential home equity repurchase obligations non repurchase obligations investors.
 origination covenants representations warranties.
 first second-lien non-agency loan sale transactions.
 pnc financial services group.
 2013 form


operating income loss by segment summarized.
 2016 2015
 north america $ 408424 460961 -52537.
 emea 11420.
 asia-pacific 68338 36358 31980.
 latin america -33891 -30593.
 connected fitness -36820 -61301.
 total operating income $ 417471 $ 408547 8924.
 increase income income north america decreased $ 52. 5 million to 408. 4 million 2016 from. 2015 due gross margin $ 17. million expenses liquidation sports authority. $.-store.
 $ 11. million expenses shift north america.
 offset by increases revenue.
 income increased $ 8. 3 million to $ 11. 4 million 2016 from. million 2015 due sales growth reductions incentive compensation.
offset investments sports marketing infrastructure.
 income asia-pacific increased $ 31. 9 million $ 68. 3 million 2016 36. 4 million 2015 sales growth incentive compensation.
 direct-to-consumer new territories.
 latin america increased $ 3. 3 million $ 33. 9 million 2016 30. 6 million 2015 investments challenges.
 offset sales growth reductions incentive compensation.
 fitness decreased $ 24. 5 million $ 36. 8 million 2016 61. 3 million 2015 sales growth.
 revenues volume higher margin.
.
 inventory accounts payable accrued expenses.


estimated acquisition-date values assets acquired liabilities assumed purchase.
 cash $ 45826
 customer-related intangible assets 42721
 acquired technology 27954
 trade name 2901
 other assets 2337
 deferred income tax
 -49797
 net assets 62154
 goodwill 203828
 purchase consideration $ 265982
 $ 203. million acquisition-pacific growth australia new zealand payments asia-pacific north america markets.
 goodwill not deductible income tax.
 customer-related intangible assets 15 years.
 acquired technology 15 years.
 trade name 5 years.
 settlement funds card issuers merchants.
 funding.
 sponsorship direct membership.
 merchant service provider mastercard independent sales organization visa.
 sponsorship agreements sponsors.
agreements transactions control credit card transactions mastercard visa.
 standards restrict merchant funds funds until funded.
 direct membership model members payment networks transactions without third-party sponsorship.
 route clear transactions card network not settlement.
.
 adhere standards payment networks.
 maintain relationships financial institutions settlement.
 timing differences interchange fees merchant reserves differences received payment networks funded.
 intermediary balances reflected settlement processing assets obligations consolidated balance sheets.
 interchange reimbursement.
 receivable merchants discount fee.
 global payments inc.
 2017 10-k annual report 2013


union-represented american mainline employees covered by agreements not amendable.
 until negotiations outside traditional rla bargaining process no self-help permissible.
 piedmont mechanics stock clerks psa dispatchers have agreements amendable engaged in traditional rla negotiations.
 unions engage in concerted refusals strikes.
 risk disgruntled employees refusals harm operation financial performance.
.
 risk disputes strikes labor disruptions affect operations. affected by availability price jet fuel.
 one cent per gallon increase in fuel price 2016 annual fuel expense by $ 44 million.
 table shows annual aircraft fuel consumption costs for mainline operations 2015 2014.
.
 $. $ 6226 21. 6%.
2014 3644 2. 91 10592 33. 2%.
 fuel expenses for-owned third-party regional carriers were $ 1. 2 billion $ 2. 0 billion december 31 2015 2014.
 fuel hedging contracts.
 exposed to fluctuations prices.
 current policy not.
 prices.
 predict future availability price volatility cost.
 natural disasters political disruptions wars governmental policy strength.
 dollar petroleum pipelines terminals speculation energy futures production capacity environmental concerns events fuel supply shortages price volatility cost increases.
.
 business dependent on price availability aircraft fuel.
 high volatility increased prices disruptions operating results liquidity. public liability passenger liability property damage all-risk coverage damage aircraft.
 coverage injury public


tower corporation subsidiaries financial statements brazil acquisition 2011 acquired 100% shares 627 communications sites brazil $ 553. million increased $ 585. 4 million 39 sites december 31.
 2012 purchase price reduced $ 585. 3 million post closing price adjustments.
 allocation finalized 2012.
 table summarizes purchase consideration assets acquired liabilities assumed estimated fair value acquisition final purchase price preliminary allocation.
 current assets $ 9922
 non-current
 property equipment
 intangible assets 368000
 liabilities
 non-current liabilities -38519
 net assets acquired $ 488935 $ 437976
 goodwill
 consolidated balance sheets.
 december 31.
 $ 7. million accounts receivable contractual.
 customer-related intangibles $ 250.network location intangibles $ 118. million.
 amortized 20 years.
 long-term liabilities $ 30. million tax positions acquisition non-current assets $ 24. million indemnification asset.
 goodwill deductible tax.
 allocated international rental management segment.
 purchase 1500 towers vivo.
.
 purchased 800 communications sites $ 151. 7 million.
 purchased remaining 700 communications sites $ 126. 3 million.
 vivo amended agreement acquisition additional 300 communications sites.
 august 31 2012 purchased 192 communications sites $ 32. 7 million.


24 100 financial condition liquidity capital resources cash flows expenditures primary sources operating activities borrowings.
 cash flows short-term borrowings operating requirements principal interest payments debt dividend payments capital expenditures.
 cash flows.
 $ millions 2010 2008
 operating activities $ 515. 2 $ 559. 7 $ 627. 6
 investing activities -110. 2 110. -581. 4 ( 581. 4 -418. 0 418.
 financing activities -459. 6 ( 459. 100. 8 -205. 5 205. 5
 operating activities 2010 $ 250 million accounts receivable securitization program.
 $ 250 million reduction.
 new accounting guidance $ 250 million increase accounts receivable working capital outflow.
no accounts receivable sold under securitization program at december 31 2010.
 excluding $ 250 million change accounting cash flows $ 765. 2 million 2010 $ 559. 7 million 2009 $ 627. 6 million 2008.
 improvement due to higher earnings working capital changes offset higher pension funding.
 lower operating cash flows 2009 working capital increases higher pension funding income tax payments payment $ 70 million customer legal settlement.
.
 consolidated financial statements.
.
 superior measures.
.
 presentation earnings.
 available item 8.
 results stock buyback strategic investments debt.
 not defined.
 for discretionary expenditures.
 operating activities less additions property equipment.
 derived from cash statements adjusted for.


entergy texas.
 subsidiaries revenues fuel power expenses regulatory charges base rate increases volume/weather effect.
 expenses demand deferred fuel expense lower refunds average market price natural gas.
 regulatory charges distribution $ 17. 4 million 2007 production cost equalization remedy receipts.
 note 2.
 revenue fuel expenses gas power expenses regulatory charges.
 change net revenue 2010 2009.
.
 2009 $ 485.
 wholesale revenue.
 volume/weather.
 rough production cost equalization.
 retail electric price.
 securitization transition charge.
 purchased power capacity.
.
 2010 revenue $ 540.
 wholesale increased sales municipal co-op customers new contracts.
 increased electricity usage residential commercial sectors. increase favorable weather.
 electricity usage increased 777 gwh.
production cost equalization variance due additional $ 18. 6 million allocation second quarter 2009 2007 receipts texas retail customers entergy.
 december 2007.
 retail electric price variance due rate actions annual base rate increase $ 59 million august 2010 settlement december 2009 rate case.
.
 securitization transition charge variance due bonds.
 november 2009 entergy texas restoration funding issued bonds bonds.
 offset increase interest long-term debt no impact net income.
 note 5.


2008 2007 2006
 average value options $ 18. 47 $ 33. 81 20.
 volatility. 3845. 3677. 3534
 dividend yield 3. 75%. 75 %. 76%. 76 %.
 life options years 6.
 risk-free interest rate 2% 2 % 4% 4 5% 5 %
 black-scholes option valuation model options transferable.
 subjective assumptions price volatility.
 models.
 market value grant.
 total fair value awards 2008 2007 2006 $ 35384 $ 17840 $ 9413.
 stock compensation expense $ 38872 $ 22164 $ 11913. values options december 27 2008 $ 8. 2 million $ 8. 2 million.
 exercised $. 6 million.
value difference company closing stock price last $ 19. 39 december 27 2008 exercise price multiplied options exercised.
 $ 141. 7 million unrecognized compensation cost unvested compensation awards.
 five years.
.
 2000000 shares common stock reserved.
 equal 85% fair market value purchase enrollment date.
.
 2008 2007 2006 362902 120230 124693 shares purchased price $ 8782  $ 5730 $ 3569 .
 december 27 2008 663679 shares available future issuance.
.
 earnings per share diluted income share


hedged transaction recognized in earnings.
 changes fair value ineffective recognized in earnings.
 foreign currency hedges at december 2012 2011 $ 1. 3 billion $ 1. 7 billion.
 interest rate swaps $ 503 million $ 450 million.
 derivative instruments net earnings income during 2012 2011 2010.
 derivatives designated for hedge accounting.
 note 15 fair value measurements.
 stock-based compensation 2013 cost units measured at grant date estimated fair value.
 over three-year vesting period.
 taxes assess tax filing exposures.
 evaluate tax positions.
 no benefit recorded.
 record largest amount benefit.
 record interest penalties taxes tax expense on statements earnings.
.
 accumulated comprehensive loss 2013 changes in balance loss postretirement benefit plan adjustments.

 balance january 1 2010 $ -8564 ( -8595
 income -430 ( 430 -415
 balance december 31 2010 -8994 ( 8994 -16 -9010
 loss -2192 -2247 ( 2247
 balance december 31 2011 -11186 -71 -11257
 income
 balance december 31 2012 -13532 -13493 (
 postretirement benefit plan adjustments tax benefits december 31 2012 2011 2010 $ 7. 4 billion $ 6. 1 billion $ 4. 9 billion.
 deductions deferred taxes.
 note 7 9.
 january 1 2012 adopted guidance accounting standards income net loss statements.
 results financial position cash flows.


2019s jpmorgan chase co. annual report $ 57 million 2009.
 decreases cio mort gage banking driven market volatility position changes.
 reduce risk volatility.
 average ib diversification benefit $ 59 million 37% 37 % 2010 $ 82 million 28% 28 % 2009.
 increase diversification benefit 2010 positions correla tions decreased.
 positions market volatility diversification benefits.
 market risk- related revenue change transactions revenue private equity gains investments trading interest income brokerage commissions underwriting fees syndicated lending facilities mortgage fees.
 market risk revenue excludes gains losses.
 gains losses mortgage.
 gains 248 261 days 12 days exceeding $ 210 million.
 losses 95% confidence-level var actual loss.
2010 losses 13 days none exceeded.
 daily market risk gains losses 95% % confidence december 31 2010 average daily revenue $ 87 million losses table sensitivity one-basis-point increase jpmorgan chase 2019s credit spreads.
 impact-point shift credit curve.
 not actual revenue.
 valuation adjustment 1 point increase december 31 credit spread.
 2010 $ 35
 2009 $ 39


deferred revenue sanofi-aventis 2019 $ 85. million payment decreased 2010 amendments.
-aventis $ 30 million manufacturing capacity rensselaer new facilities $ 23. 4 million sanofi-aventis december 31 2010.
 deferred collaboration revenue $ 85. million.
 $ 79. 8 million-aventis deferred recognized future.
 2008 separate velocigene agreement sanofi-aventis.
 2010 2009 recognized $ 1. 6 million $ 2. 7 million.
 healthcare collaboration revenue cost sharing regeneron vegf trap-eye expenses performance milestone payments non-refundable $ 75. million payment 2006 $ 20. million milestone payment august 2007.
 collaboration revenue december 31.
 cost-sharing regeneron expenses.
 performance milestone payments.
deferred revenue milestone payments.
 bayer healthcare revenue $ 75. $ 67.
 vegf trap-eye development expenses increased 2010 costs phase 3 copernicus trial.
 earned $ 10. million milestone payments positive 52-week 6-month copernicus.
 july 2009 $ 20. million milestone payment first patient copernicus.
 deferred revenue $ 75. million up-front $ 20. million milestone payment $ 47. million deferred recognized revenue.
 licensing revenue velocimmune license agreements astrazeneca astellas $ 20. million payments deferred recognized revenue.
 2010 recognized $ 40. million revenue.
 astellas $ 165. million up-front payment deferred recognized seven-year period.
 $ 176. 6 million deferred.
 $ 25. 3 million $ 18.4 million arcalyst ae sales right return rebates estimated.
 limited return experience 2008 2009 sales deferred until right return rebates estimated.
 first quarter 2010 company determined


matter cash flows results operations.
.
 vote security holders november 14 2008 stockholders approve merger allied waste industries.
 special meeting.
 results voting.
 affirmative abstentions
 issue shares republic common stock securities convertible exercisable agreement plan merger june 22 2008 subsidiary. 141728743 297976
 adjourn meeting solicit additional proxies 134081897 8068370
 issue shares republic common stock securities convertible exercisable agreement plan merger june 22 2008 subsidiary waste industries.
.
.
 adjourn special meeting solicit additional proxies proposal.
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8068370 32617 p14076 035000000/28/2009 17:08 valid graphics