masco corporation consolidated financial statements.
 commitments contingencies litigation.
 subject claims charges litigation proceedings business contractual intellectual property personal injury environmental product liability construction defect insurance coverage personnel employment disputes class actions.
 adequate defenses not.
 no assurance prevail incur judgments settlements revise expectations impact results.
 2012 settlement agreement columbus drywall litigation.
 insulation companies pay $ 75 million dismissal prejudice release claims.
 deny conduct unlawful admit no wrongdoing settlement.
 settlement expense uncertainty.
 settlement expense second quarter 2012 paid fourth quarter 2012.
.
 accrues warranty liability estimated cost repair replace.
 third quarter 2012 $ 12 million increase future warranty claims analysis trends warranty claim activity costs.
company 2019s warranty liability millions.
 2012 2011
 balance january 1 $ 102 $ 107
 accruals warranties 42
 pre-existing warranties 16 8
 settlements cash -38 38
 -4 4 -3 3
 balance december 31 $ 118 $ 102
.
 private equity funds december 31 2012 commitments contribute $ 19 million additional capital contributions.
 obligated additional contributions call.
 control calls.
 funded cash increase carrying value investment.


discounted cash flow model fair value units believes fair value.
 significant assumptions estimates sales growth production costs capital spending discount rate.
 assumptions vary units.
 forecasts based plans historical relationships.
 wacc rate estimated valuation experts.
 arconic impairment charge carrying unit fair value without total goodwill.
 interim impairment evaluation operations decline financial performance interim impairment evaluation goodwill aen unit.
 estimated fair value carrying value no impairment goodwill.
 impairment tests 2017 2016 not impaired units except arconic forgings extrusions estimated fair value lower carrying value.
 recorded impairment goodwill afe $ 719.
 decrease due unfavorable performance margins higher discount rate risk-free rate return carrying value increased.
.
indefinite lives not amortized finite amortized periods.
 table details average lives software assets reporting segment.
 engineered products solutions
 rolled products
 transportation construction solutions
.
 contracts purchase orders standard terms conditions multi-year agreements.
 manufacture single performance obligations satisfied transfer control.
 produces fastening systems seamless rolled rings investment castings airfoils jet engine components aircraft parts aluminum sheet plate aluminum structural systems architectural extrusions vehicle wheels.
 transfer control assessed alternative use right payment.
 transfer revenue recognition upon shipment delivery title ownership risk customer shipping terms.
 vary product country origin.
 invoice issued at shipment.
 net 30-day terms.
 business units commercial terms.
 influenced by industry market conditions product line.
arconic receives payments for.
 recorded as deferred revenue until product delivered title risk passed customer.
 deferred revenue included in credits balance sheet.
.
 expenditures operations expensed capitalized.
 expenditures expensed.
 liabilities recorded when remediation costs probable estimated.
 site investigations consultant fees feasibility studies contractors monitoring expenses.
 estimates not discounted by claims recovery.
 recognized when probable.
 include costs responsible parties.
 liability reviewed adjusted remediation progress estimates technology.
.
 liabilities recorded unfavorable outcome


ownership interest in cellulose derivatives ventures exceeds 20% account using cost accounting influence due to local government investment limitations involvement inability provide timely financial information accounting principles.
.
 hold indirect ownership in german infraserv groups industrial parks support.
 ownership equity investments infraserv affiliates december 31 2016 percentages.
 infraserv.
.
.
 research development businesses innovation-oriented production technologies products applications.
 research and development expense $ 78 million  $ 119 million $ 86 million for years december 31 2016 2015 2014.
 sufficient strategic initiatives.
 confidential information patents trademarks copyrights preserve investment in research development manufacturing marketing.
 patents cover processes equipment products.
 register trademarks brand names.
.
industrial countries patent protection new substances formulations unique applications production processes.
 business regions intellectual property protection limited.
.
 security policies.
 data encryption controls disclosure trade secrets employee awareness training.
.
 aoplus ateva avicor britecoat celanese celanex celcon celfx celvolit clarifoil duroset ecovae factor fortron hostaform impet mowilith metalx nutrinova qorus slidex sunett tcx thermx tufcor vantage vectra vinamul vitaldose zenite products services celanese.
.
 fortron fortron.
 hostaform.
 mowilith celanese.
 monitor competitive developments defend infringements intellectual property.
celanese business segment patent trademark copyright secret.
 environmental.
 risk factors 2 accounting policies environmental 24 commitments contingencies financial statements.


purchases equity securities table purchases common stock fourth quarter 2011.
 shares purchased average price paid share maximum dollar value.
 average price dollar value
 1 2013 31 3228557 $. 3227800 $
 1813994 $. 1618110
 475685 $ 64.
 5518236 $.
 may 2010 approved $ 3. 5 billion share repurchase program.
 fourth quarter 2011.
 repurchased. million shares $ 3. 5 billion  $ 71. 18 per share.
 fourth quarter repurchased 672326 shares employees income tax withholdings restricted stock vesting option exercises.
 repurchases addition $ 3. 5 billion repurchase program.
devon energy corporation incentive savings plan employees purchase shares common stock devon stock fund administered fidelity management trust company.
 purchased 45000 shares stock 2011-prevailing stock prices.
 acquired shares open-market purchases.
 filed registration statement form s-8 january 26 , 2012 offers sales interests plan stock fund shares purchased.
 devon canada corporation savings plan canadian employees purchase shares stock canadian plan administered sun life assurance company canada.
 purchased 9000 shares 2011 prices.
 acquired shares open-market purchases.
 shares offered sold exemptions for offers sales securities outside.


hartford financial services group.
 financial statements.
 offers enhanced rates bonus annuity products.
 expense bonus deferred amortized contract policy costs.
 contract.
 unlocked amortization sales inducement asset.
 note 7.
 changes deferred sales inducement activity december 31.
 2011 2010
 balance $ 459 $ 438 $ 553
 sales inducements deferred
 amortization income -8
 2014 -28 -69
 balance end year $ 434 $ 459 $ 438
.
 reserves future policy benefits unpaid losses insurance calculated net level premium interest withdrawal mortality assumptions.
 standard actuarial american academy actuaries.
 reserves discount rates earned investment yield morbidity/mortality tables.
company 2019s disability claim reserves morbidity table early based experience gender elimination period diagnosis.
 reserves computed future policy obligations.
 benefits computed additions premiums interest policy obligations death.
 assumptions mortality morbidity premiums interest affect reserve levels operations provisions adverse deviation liability assumptions.
 liabilities group life disability contracts term life insurance policies include unpaid losses future policy benefits.
 claims events.
 estimates based on facts internal factors experience historical trends claim payment patterns loss payments unpaid claims loss control programs product mix.
 influenced external factors court decisions economic conditions public attitudes.
 effects inflation.


2019s net sales increased $ 533 million 8%.
 higher volume $ 420 million air missile defense $ 245 million fire control systems.
 lower sales volume $ 75 million services $ 20 million tactical missile.
 operating profit increased $ 96 million 10%.
 higher profit $ 60 million missile defense $ 25 million services.
 $ 35 million higher.
 increased orders lower sales fire control systems lower higher tactical missiles.
 increased orders missile defense.
 net sales 2013 comparable 2012.
 low double digit growth air missile defense decline volume logistics services.
 operating profit margin comparable 2012.
 combat systems missile defense systems radar systems mission sensors aircraft littoral combat ships simulation training services unmanned technologies platforms ship systems integration military commercial training systems.
2019s programs include aegis-41 tpq-53 radar mh-60 lcs ptds.
 operating results millions.
 2011
 net sales $ 7579 7443
 operating profit 737
 margins. 7%. %. 6%.
 backlog year-end
 net sales increased $ 447 million 6% 6 %.
 higher volume risk retirements $ 395 million ship aviation system programs $ 115 million training logistics $ 30 million increased volume warfare systems sensors.
 lower net sales $ 70 million undersea systems combat system $ 25 million lower volume other programs.
 operating profit 2012 increased $ 92 million 14% % 2011.
 higher profit $ 175 million aviation risk retirements reserves $ 55 million contract cost programs 2011 presidential helicopter.
increase lower profit $ 40 million undersea reduced rates lower volume international combat array $ 40 million lower volume.
 profit $ 150 million higher 2012 2011.


committed electro-mechanical systems.
 expenditures $ 48. 3 million $ 47. 3 million $ 45. 2 million years 2017 2016 2015.
 concentrate technology innovations new products improvements product cost quality safety sustainability.
 manage r&d team global group collaborative approach new technologies product platforms.
 regional local standards.
 global engineering center bangalore.
.
 construction projects second third quarters security product sales higher first fourth.
 interflex business higher sales fourth quarter project timing.
 revenue quarter 2017 2016 2015.
 2017 23% ( 23 % 26% 26 %
 2016 22% 22 26%
 2015 22% 22 % 25% 25 % 26% 26 27% 27 %
 10000 employees.
environmental regulation dedicated program hazardous materials manufacturing environmental concerns.
 engaged in site investigations remediation environmental cleanup past operations production facilities.
 evaluates remediation programs considers alternative methods.
 party to environmental lawsuits claims received notices violations.
 environmental protection agency state authorities.
 potentially responsible party for cleanup costs off-site waste disposal federal superfund state remediation sites.
 involvement minimal.
 bear entire cost remediation.
.
 additional lawsuits claims likely arise.
 incurred $ 3. 2 million $ 23. 3 million $ 4. million expenses 2017 2016 2015 for environmental remediation at sites owned leased.
 reserves for $ 28. 9 million $ 30. 6 million.
. remediation sites previously disposed.
evolving environmental laws compliance uncertain.


financial statements sumitomo mitsui financial group.
 provides credit loss protection on loan commitments investment-grade commercial lending.
 $ 32. 41 billion $ 31. 94 billion december 2012 2011.
 credit loss protection limited to 95% first loss maximum $ 950 million.
 protection 70% additional losses maximum $ 1. 13 billion $ 300 million protection provided 2012 2011.
 firm uses financial instruments mitigate credit risks.
 credit default swaps market index.
 warehouse financing.
 provides financing clients assets.
 secured commercial mortgage loans.
 resale borrowing agreements.
 contingent financing resale agreements.
 funding depends contractual conditions expire unused.
 private equity real estate assets funds.
 commitments include $ 872 million $ 1.62 billion real estate investments $ 6. 47 billion $ 7. 50 billion corporate investments.
 $ 6. 21 billion $ 8. 38 billion commitments funds funded market value.
 obligations long-term lease agreements office space expiring 2069.
 agreements escalation real estate taxes charges.
 future minimum rental payments sublease rentals.
 millions.
 2014 407
 2015 317
 306
 rent 2012 2011 2010 $ 374 million $ 475 million $ 508 million.
 leases include office space.
 rent expense growth. records liability fair value remaining lease rentals reduced sublease rentals leases future benefits.
 costs terminate lease fair value termination.


2016 annual report performance graph five-year period june 30 2016 market performance company common stock s&p 500 index peer companies 5 year return jack henry associates. s&p 500 index peer group line graph.
 2011 2012 2013 2014 2015 2016
. 161. 228.
. 174. 219. 251.
. 158. 170.
 comparison assumes $ 100 invested june 30 2011 reinvestments dividends.
 returns calculated market capitalization peer group members.
 peer companies computer software hardware services financial institutions.
 aci worldwide. bottomline. broadridge financial cardtronics. convergys. corelogic. dst. euronet. fidelity. moneygram. systems. tyler.verifone systems.
 heartland.
 removed peer group global payments.
.


sale equity securities.
 raise funds public offerings.
 proceeds.
 2004 received $ 40. 6 million sales common stock atc mexico.
 financial flexibility reduce interest costs.
.
 2004 refinanced previous $ 1. 1 billion senior secured credit facility.
 received $ 685. 5 million net proceeds borrowings $ 670. million principal interest.
 remaining proceeds $ 15. 5 million corporate purposes repurchase debt securities.
 new credit facility $ 400. million undrawn revolving loan commitments $ 19. 3 million undrawn letters credit december 2004 2011 $ 300. million term loan $ 398. august 31 2011.
 extends previous maturity dates 2007 to 2011 borrowings repurchase indebtedness without lender approval.
 guaranteed secured pledge assets.
maturity date loan a revolving loans accelerated august 15 2008 b october 31 2008 20448% % senior notes not refinanced parent company indebtedness maturity february 28 2012 new credit facility repaid prepaid redeemed repurchased retired consolidated leverage ratio debt operating cash flow june 30 2008 greater 4. 50 to 1.
 payments due 2008 a b $ 225. million $ 386. million.
.
 2004 raised $ 1. billion net proceeds sale debt securities private placements date proceeds.
 7. 50%. 50 % 2004 $ 225. $ 221.
.
. 125%. 125 %.
.
 $ 1070. 1050.
 7. 50%. 50 %.
 2004 sold $ 225. million 7. 50%.% senior notes 2012 placement.
. may 1 interest payable semiannually may november 1.


commitments capital leases operating leases debt purchase liabilities.
 satisfy cash flow.
 expected cash outflow december 31 2010 millions.
 2011 2012 2013 2014 2015
 capital leases $ 18 $ 19 $ 21 $ 112
 operating leases 348  268 205 150
 debt principal 345
 debt interest 322
 purchase commitments 642 463
 pension fundings 1200 196 752
 other liabilities 69  67
 $ 2944  $ 1334 $ 3515 $ 2059 $ 820 12884 23556
 capital lease obligations leases aircraft.
 note 7 consolidated financial statements.
interest on debt calculated fixed-rate debt variable rate debt 2010.
 calculations interest rate swap agreements.
 foreign currency.
 dollar principal amount future interest payments.
 purchase commitments agreements goods binding orders for aircraft engines parts.
 commitments purchase 20 boeing 767-300er freighters 2011 2013 two boeing 747-400f aircraft 2011.
 replacement existing capacity future growth.
 pension fundings cash contributions to pension plans.
 include ups pension plan ups pension plan.
.
 funding requirements estimated under pension protection act 2006 employee retirement income security act 1974.
 contributions could differ.
 not minimum funding requirements beyond 2015.
 minimum funding requirement cash contributions in 2011 ups retirement plan pension.
minimum funding requirement change asset returns discount rates.
 decline equity markets impact pension assets returns pension plans higher funding requirements.
 financial position cash flows.
 contractual payments liabilities include commitment payments investment partnerships.
 $ 284 million liabilities


agency securitizations sale agreements penalties remedies investor indemnification repurchase requests.
 origination sale residential mortgages ongoing business management assesses indemnification repurchase liabilities.
 establish for estimated losses on first second-lien mortgages home equity loans.
 claims future claims.
 loans originated 2006-2008.
 established indemnification liabilities loans sold 2005-2007.
 liabilities recognized when loans sold evaluated by management.
 adjustments recognized in residential mortgage revenue.
 no brokered home equity lending subsequent adjustments recognized home equity loans.
.
 evaluation based trends indemnification repurchase requests loss experience risks loan current economic conditions.
 considers estimated loss projections loan portfolio.
december 31 2011 indemnification repurchase liability $ 130 million $ 294 million included consolidated balance sheet.
 analysis changes liability.
 residential mortgages home equity loans
 january 1 $ 144 $ 150  $ 294  $ 229 $ 41 $ 270
 reserve adjustments 264
 losses 2013 loan repurchases settlements -163 -107 -270 -205 -240
 december 31 $ 83 $ 47 130 144 150 $ 294
 repurchase obligation loan portfolios $ 121. 4 billion $ 139. 8 billion 2010.
 $ 4. 5 billion $ 6. 5 billion.
 brokered home equity lending acquired.
 indemnification repurchase liabilities reflect estimated losses.
management indemnification repurchase liability estimation process uncertain imprecise future losses liability.
 factors estimate include volume claims housing prices economic conditions.
 december 31 2011 additional losses up to $ 85 million.
 based on higher investor demands lower claim rescissions lower home prices.
 two wholly-owned captive insurance subsidiaries provide reinsurance third-party insurers.
 subsidiaries assumes risk loss quota share agreement 100% reinsurance.
 loss percentage.
 share responsibility payment claims.
 subsidiaries provide reinsurance for accidental death dismemberment credit life accident health pnc financial services group.
 2013 form 10-k


fair value performance awards calculated market value snap-on 2019s common stock grant.
-average 2013 2012 2011 $ 77. 33 $ 60. 00 $ 55. 97 .
 vested units 148000 2013 213000 2012 54208 2011.
 213459 paid 2013 53990 2012 no paid 2011.
 units paid out performance period approval board.
 2013 performance rsus granted earned vest 2015.
 95047 rsus earned 2014.
 159970 rsus earned vested 2013 end paid out.
 1614 rsus earned 2012 2011 vested paid out third quarter 2013.
 changes 2019s non-vested performance awards 2013 value price per share.
 non-vested performance awards beginning year $ 59. 36
 granted 77. 33
 vested.
cancellations 69. 23
 non-vested performance awards end year 68. 13
 2013 $ 12. 9 million unrecognized compensation cost awards earnings 1. 6 years.
 stock appreciation rights issues cash-settled stock-settled sars.
 employees.
 contractual term ten years first second third anniversaries grant.
 exercise price equal market value common stock.
 cash-settled sars payment excess market value.
 no effect dilutive shares appreciation cash.
 2013 stock-settled sars equity instruments common stock stock appreciated price.
 dilutive shares appreciation settled.
 2013 annual report


loan activity.
 loans hotels.
 $ 35 million 2018 $ 94 million 2017.
 $ 131 million senior loans $ 149 million 2017.
.
 outflows $ 72 million 2018 $ 62 million 2017 $ 13 million 2016 joint ventures.
.
 increased $ 1109 million 2018 $ 9347 million $ 8238 million 2017 series x y z aa notes offset s notes $ 330 million commercial paper $ 126 million.
.
 long-term debt.
 diversifying financing sources optimizing debt reducing working capital.
 interest rate 3. percent maturity 4. years.
 fixed-rate debt total debt. to 1.
.
.
 purchased. million shares common stock 2018 $ 130. 2017. 8. 2016 $ 71. per
.7 million shares repurchase february 15 2019 increased common stock repurchase authorization 25 million shares.
 quarter 2018 purchases equity.
 dividends.
 board declared quarterly cash dividends $ 0. 33 per share february 9 paid march 30 $ 0. 41 per share may 4 paid $ 0. 41 per share august 9 paid september 28 $ 0. 41 per share november 8 paid december 31.
 cash dividend $ 0. 41 per share february 15 2019 payable march 29.
 summarizes year-end 2018:.
 less year 1-3 years 3-5 years after5 years
 debt $ 10483 4392 2054 2963
 capital lease obligations
 leases primary obligor 1295
purchase obligations 286 153 116 17 2014
 noncurrent liabilities 136 28 20
 contractual obligations $ 13208 1414 4877 2409 4508
 principal interest payments.
 transition tax $ 507 million 2017 tax act.
 unrecognized tax benefits-end 2018 $ million.
 commitments.
 minimal impact income cash flow.


purchase obligations $ 390 feedstock supply hyco facilities.
 feedstock supply natural gas.
 long-term-pay sales contracts matched feedstock obligations price increases.
 financial condition.
 note 17 consolidated financial statements.
 include product supply electric power natural gas supply pass-through contracts.
 commitments $ 540 additional plant equipment.
 materials energy capital equipment supplies services.
 majority purchases raw materials energy obtained market prices.
 future contribution equity 2015 joint venture air products acwa 20-year oxygen nitrogen supply agreement saudi aramco oil refinery power plant jazan.
 air products owns 25% joint venture guarantees repayment equity bridge loan.
 expect invest $ 100 joint venture.
 noncurrent liability $ 67. 5 future equity contributions advances.
30 2015 were $ 903.
 unrecognized benefits $ 97.
 excluded from contractual obligations impractical determine cash impact payments tax laws rates operating results.
 uncertainties settlement uncertain tax positions taxing authorities.
 note 23 income consolidated financial statements.
 sponsors defined benefit plans employees.
 pension plans.
.
 closed 2005 replaced with.
 shift reduce volatility expense contributions.
 fair market value assets defined benefit pension plans 30 2015 decreased to $ 3916. from $ 4114.
 projected benefit obligation $ 4787. $ 4738. 6
 note 16 retirement benefits consolidated financial statements.
.
 $ 135. 169.
 special terminations settlements curtailments 35. 19
 discount rate 4. 0% 6%
return. 4%. 4 %. 7%. 7% 7 %
 compensation. 5%. 5 %. 9 %. 8%. 8 %


abiomed.
 subsidiaries financial statements 2014 evidence arrangement exists delivery occurred services rendered seller price fixed collectibility assured.
 sab 104 requires title risks rewards ownership buyer before revenue recognized.
 guidance eitf 00-21 revenue arrangements.
 revenues product sales maintenance service agreements.
 majority revenues ab5000 bvs 5000 product lines consoles blood pumps.
 recognize revenues costs product shipment.
 maintenance service revenues recognized.
 government-sponsored research development contracts grants cost-plus-fixed-fee.
 revenues recognized work performed funds.
 more project recognizes revenue research development costs.
 translation foreign currencies assets liabilities.
 translated year-end exchange rates revenues expenses average exchange rates.
.
 adjustments reflected loss shareholders 2019 equity.
transaction gains losses income not material three years.
 accrues future warranty costs sales.
 products regulation quality standards.
 warranty costs revenues statements.
 table warranty reserve two fiscal years.
 balance $ 245 $ 231
 warranty expense -212 212 -257 ( 257
 end $ 231 $ 167


consolidated financial statements.
 2019 earnings share equal annual amounts averaging shares equivalents.
.
 fourth quarter 2016 net revenues losses $ 60 million sales markdowns investments funds invest ment management.
 $ 70 million provision wealth management brokerage.
 employee share-based awards.
 2017 quarter first second third fourth
 tax benefit $ 112 $
.
 evaluated adjustment disclosure statements recordable events.
 2017


performance graph compares shareholder returns standard 2019s information technology index 500 stock index past five years.
 investment $ 100 common stock index may 31 2003 reinvestment dividends.
 5 year return global payments. s&p 500 index information technology index.
 $ 100 invested 5/31/03 reinvestment dividends.
 year 31.
.
 2003 100.
 2004 137. 118. 121.
 2005 205.
 2006 276. 139.
 2007 238. 170.
 281. 159.
 purchases equity securities 2007 board approved share repurchase program purchase $ 100 million global payments 2019 stock market.
 repurchased 2. 3 million shares common stock.
 authorization no expiration.
 repurchased shares available future issuance.


united parcel service.
 financial condition liquidity summary cash.
 income $ 807 $ 3804 $ 3338
 non-cash activities 7301 4505 4398
 pension postretirement plan contributions -1436 -3240
 income tax receivables payables -319
 working capital noncurrent assets liabilities -148 -340
 -107
 net cash $ 7216 $ 7073 $ 3835
 depreciation amortization gains losses exchange deferred income taxes uncollectible accounts pension postretirement benefit stock compensation impairment charges non.
 cash 2010 2012.
 impacted lower contributions defined benefit pension postretirement plans offset working capital growth.
 cash flows income tax receivables payables discretionary pension contributions.
contributions company-sponsored pension plans varied minimum funding requirements.
 2012 $ 355 million pension.
 2011 $ 1. 2 billion contribution 2011 requirements $ 440 million 2011.
 2010 $ 2. 0 billion discretionary contributions retirement pension plans $ 980 million required ibt.
 remaining contributions 2010 2012 due international pension plans.
 postretirement medical benefit plans.
 minimum funding requirements ups ibt retirement plans.
 december 31 2012 worldwide holdings cash $ 7. 327 billion.
 $ 4. 211 billion european subsidiaries acquisition tnt.
.
.
 50%-60% remaining cash equivalents foreign subsidiaries.
.
 fluctuates receipts.
 united states primary source domestic operating needs capital expenditures share repurchases dividend payments.
untaxed earnings cash foreign subsidiaries subject tax repatriated dividends not all international cash balances dividend returned.
 indefinitely reinvested no accrual taxes.


management financial condition results operations millions operating income increased 2017 2016 decrease revenue $ 42. 1 decrease salaries expenses $ 28. 0 office general expenses $ 16. 9.
 decrease due lower bonuses incentive expense decrease base salaries benefits tax.
 expenses contingent acquisition obligations.
 operating income increased 2016 2015 increase revenue $ 58. 8 decrease office general expenses $ 3. 7 offset increase salaries expenses $ 38. 8.
 increase increases workforce.
 decrease office expenses lower production expenses pass-through costs.
 corporate charges separate office expenses shared service center managed expenses.
 expenses incentives bonuses benefits office employees.
 professional fees internal control compliance financial audits legal technology consulting services.
 rental expense depreciation leasehold improvements properties.
centrally managed expenses allocated divisions.
 charges technology projects.
 corporate expenses decreased 2017 $ 20. to $ 126. 2016 lower annual incentive expense.
 increased $ 5. to $ 147. 2015.
 liquidity capital resources cash flow data liquidity capital resources.
 2017 2016 2015
 net income adjusted operating $ 887. $ 1023. $ 848.
 working -29. -414. -99.
 non-current assets liabilities 24. -95.
 operating activities $ 881. $ 512. $ 688.
 investing -196. 263 -199.
 financing. 1004 -666. -490.
 net income adjusted for depreciation amortization fixed intangible restricted stock losses sales deferred income taxes.
reflects changes accounts receivable expenditures assets accounts payable accrued liabilities.
 seasonality use cash first nine months first quarter generate fourth quarter strong media spending.
 results impacted media budgets changing spending patterns.


company uses custom components not competitors new products utilize custom components from one source.
 new technologies capacity constraints exist until suppliers yields matured or manufacturing capacity increased.
 supply components delayed outsourcing partner delayed shipments financial condition operating results.
 business performance time to obtain quantities original or alternative.
 availability components if suppliers common components instead of customized.
 agreements for supply many components no guarantee agreements.
 to risks of supply shortages price increases financial condition results.
 hardware products manufactured by outsourcing partners in asia.
 small partners.
 sole- sourced suppliers for products.
 operating results if meet production commitments.
 purchase commitments cover for up to 150 days.
 leases equipment facilities retail space under noncancelable lease arrangements.
company off-balance sheet financing.
 major facility leases not 10 years multi-year renewal options.
 2015 463 retail stores.
 leases five to 20 years majority 10 years multi-year renewal options.
 future minimum lease payments noncancelable were $ 6. 3 billion $. billion retail space.
 rent expense $ 794 million $ 717 million $ 645 million in 2015 2014 2013.
 lease payments.
 772 2018 2019 715
 2020
 utilizes outsourcing partners manufacture sub-assemblies final assembly testing.
 demand 150.
 obtains components from suppliers.
 purchase orders supplier contracts orders.
 inventory prepayments.
 outstanding off-balance sheet third-party manufacturing commitments component purchase commitments of $ 29. 5 billion.
.
10-k 65


declined second lower resin costs.
 margins.
 raw material costs.
 freight costs operating costs increased.
 shorewood sales declined weaker demand home entertainment tobacco shipments consumer.
 sales margins improved.
 raw material costs lower freight.
 operating costs reorganization cost reduction.
 $ 7 million 2009 $ 30 million 2008.
 coated paperboard sales volumes increase price.
 raw material costs higher wood energy chemicals maintenance downtime costs.
 foodservice sales volumes.
 costs resins offset lower bleached board.
 shorewood decline.
 operating costs reorganization.
 consumer packaging net sales $ 315 million 300 2008 280 2007.
 operating earnings $ 66 million increased.
 sales volumes higher increased ship export.
 margins declined lower lower prices.
2010 sales volumes first quarter strong.
 margins improve increased price favorable geographic mix.
 input costs higher wood prices poland energy tariff increases russia.
 packaging sales $ 545 million 2009 390 million 2008 330 million 2007.
 earnings $ 24 million $ 13 million 2008 12 million 2007.
 improved earnings increased sales volumes higher lower input costs chemicals.
 loss 2008 $ 12 million pulp inventories shandong paper.
 start-up costs.
 diverse products services.
 sensitive advertising promotional spending.
 margins stable.
 best choice value.
 efficient customer service cost working capital management profitability.
.
 profit
 sales decreased 18% 2008 2007 profits decreased 51% 2007.
 sales printing papers graphic arts supplies equipment $ 4. 1 billion $.2008 4. 7 billion 2007.
 margins printing papers decreased 2007.
 revenue $ 1. 3 billion 1. 7 2008. 2007.
 margins higher improved product service mix.
 supplies revenue $ 1. 1 billion


discount brent narrower 2013 2012 2011.
 increase.
 production light sweet crude oil relationship pricing future.
 liquid hydrocarbon sales ngls unconventional liquids-rich plays.
 15 percent north america e&p hydrocarbon sales 2013 10 percent 2012 7 percent 2011.
 production.
 sold bid-week prices.
 prices 31 percent higher 2013.
 oil production sweet sold brent crude benchmark 3 percent lower 2013 2012.
 major-producing regions.
 prices higher.
.
. sales subject term contracts less volatile.
.
 fixed international e&p natural gas prices not track market price movements.
 sands mining crude oil.
 impacted operational problems outages.
 two-thirds output tracked wti one-third canadian heavy crude oil.
 discount to wti increasing.
wcs discount 2013 oil sands mining price realizations increased value synthetic crude oil sales 2012.
 operating cost structure fixed costs operation continue production downtime.
 per-unit costs sensitive production rates.
 variable costs natural gas diesel fuel markets oil prices.
 table benchmark prices revenues variable costs.
 2013 2012
 crude oil bbl $ 98. $ 94. $ 95.
 $ 72.
 natural gas sales index mmbtu $ 3. $. $
. natural gas sales index. monthly pricing differentials.
 index.


goldman sachs group.
 subsidiaries financial statements lending.
 commitments extended investment-grade non- investment-grade corporate borrowers.
 operating liquidity corporate purposes.
 extends contingent acquisition financing corporate commercial real estate financing.
 short-term.
 sumitomo mitsui financial group.
 provides credit loss protection loan commitments investment-grade.
 $ 26. 88 billion $ 27. 03 billion december 2016 2015.
 loss protection limited 95% first loss $ 950 million.
 protection 70% additional losses maximum $ 1. 13 billion $ 768 million 2015.
 uses financial instruments mitigate credit risks.
 credit default swaps underlying market index.
 warehouse financing.
 assets.
 secured assets consumer corporate loans.
resale repurchase lending firm three business days.
 contingent financing.
 funding depends contractual conditions expire unused.
 banks securities cash collateral margin deposit requirements.
 investment commitments private equity real estate assets funds.
 commitments $ 2. 10 billion $ 2. 86 billion december 2016 2015.
 funded market value date.
 obligations long-term noncancelable lease agreements office space expiring through 2069.
 subject escalation real estate taxes.
 future minimum rental payments rentals.
.
 290
 2018 282
 2019 238
 2020 206
 2021 159
 2022
 rent expense $ 244 million 2016 $ 249 million 2015 $ 309 million 2014.
 leases include office space excess requirements.
 rent expense growth.firm records liability remaining rentals reduced rentals ceased space future benefits.
 costs terminate lease before measured fair value.
 incurred exit costs $ 68 million excess office space.


contents areas business.
 regulation facilities operations suppliers additional permit requirements increased operating costs.
 future regulatory developments affect operations increase costs airline industry subsidiaries.
 part i item 1a.
 risk factors facilities infrastructure slots operate flight schedule expand route network impact operations business government regulation costs disruptions limits flexibility reductions demand competitive disadvantages subject environmental regulation costs.
 airline business labor intensive.
 salaries wages benefits largest expenses 31% operating expenses.
 active full-time employees december 31  2015.
 mainline operations wholly-owned regional carriers.
 pilots flight crew training instructors
 flight attendants
 maintenance personnel
 fleet service personnel
 passenger service personnel
 administrative
total|


supplier gasoline distillates resellers consumers midwest upper plains gulf coast southeastern united states.
 2007 refined products sales. billion gallons 1. 410 mmbpd.
 average sales price $ 86. 53 per barrel.
 refined products sales product group average sales price last three years.
 2007 2006 2005.
 gasoline 791 804
 distillates
 propane
 feedstocks special products 103
 heavy fuel oil
 asphalt
 sales price barrel $ 86.
. matching buy/sell volumes 24 77 mbpd 2006 2005.
.
 lower refined products sales volumes 2007.
.
 wholesale distribution petroleum products private marketers commercial industrial consumers spot market 69 percent refined products sales volumes 2007.
sold 49 gasoline 89 distillates.
 half propane home heating balance industrial consumers.
 propylene cumene aromatics aliphatics sulfur marketed.
 lube oils maleic anhydride slack wax extract pitch sold united states canada exported.
 asphalt midwest plains gulf coast southeastern.
 base 750 asphalt-paving contractors government entities shingle manufacturers.
 blended ethanol gasoline 15 years increased 2007.
 41 mbpd 2007 35 2006 2005.
 regulations.
 reformulated gasoline low-vapor-pressure gasoline nine states.
 biodiesel minnesota illinois kentucky.
 supplied petroleum 4400 outlets ohio michigan.
retail outlets georgia florida minnesota wisconsin north carolina tennessee virginia south carolina alabama pennsylvania texas.
 sales marathon-brand 16 percent refined product 2007.
 superamerica sells gasoline diesel fuel outlets.
 15 percent 2007.
 1636 outlets nine states petroleum 201cspeedway. revenues non-petroleum merchandise $ 2. 796 billion 2007 $ 2. 706 billion 2006.
.
 operates 59 valvoline oil outlets michigan northwest ohio.
 pilot travel centers largest operator 286 locations 37 states.
 offer diesel fuel gasoline services restaurants.
 50 percent interest in ptc.


american living launched jcpenney 2008 offers style modern spirit sensibility.
 essentials looks bedding home furnishings promises stylish clothing home products incredible value.
 jcpenney jcp.
 chaps translates lauren line men women children home.
 casual basics silhouettes classics enduring affordable.
 men 2019s collection department specialty stores.
 collections women children home.
 wholesale segment sells products upscale mid-tier department stores specialty stores golf pro shops domestically internationally.
 in-store product assortment presentation full-price sell-throughs.
 2011 ralph lauren products sold 10000 doors worldwide invested $ 35 million shop-within-shops stores.
 major.
.
 brands men 2019s distributed premier fashion retailers.
sell excess out-of-season products secondary distribution channels retail factory stores.
 japan wholesale products shop-within-shops premiere top-tier department stores women 2019s.
 asia wholesale mid top- tier department stores men women 2019s.
 concessions sales retail segment.
 number doors geographic location lauren-branded products wholesale primary channels april 2 2011.
 states canada
 3919 asia
 american living chaps-branded products wholesale sold domestically 1700 doors april.


cash flows period.
 2013 2012 2011
 cash operating activities $ 20776 $ 18884 $ 20963
 investing -18073 -10301
 financing -5498 -1408
 exchange rate fluctuations cash equivalents -9 -3 (
 increase cash equivalents $ -2804 $ 3413 $ -433
 operating adjusted non-cash items assets liabilities.
 2013 $ 1. 9 billion increase working capital offset lower net income 2013.
 taxes $ 1. 1 billion lower taxes overpayments.
 assets liabilities lower taxes lower inventories sell-through older-generation products offset 4th generation intel core processor.
2013 three largest customers 44% 44 % net revenue 43% 2012 2011 hewlett- packard 17% 17 % 19% 19 % 2011 dell 15% 15 % lenovo 12% 2011.
 34% 34 % accounts receivable december 28 2013 33% 33 % 2012.
 $ 2. 1 billion decrease cash lower net income working capital offset adjustments non-cash items.
 higher depreciation non-acquisition deferred tax liabilities.
 investing capital expenditures purchases sales maturities disposals acquisitions.
 increase cash 2013 purchases investments maturities sales licensed technology patents.
 capital expenditures $ 10. 7 billion 2013 $ 11. billion 2012 $ 10. 8 billion 2011.
investing increased 2012 due purchases trading assets offset decrease acquisitions.
 purchases $ 3. 2 billion equity securities q3 2012.
 financing activities repurchases common stock dividends issuance repayment long-term debt proceeds sale equity.
 management financial condition results operations


green realty corp.
 2012 annual report purchased sitq immobilier caisse depot placement quebec 31. 5%. interest 1515 broadway ownership 1750000 foot building.
 valued interests $ 1. 23 billion.
 sales agreement distressed sale minority dis count.
 acquired interest $ 458. mortgage.
 purchase price adjustment $ 475.
 acquired investment joint ventures.
 2011 city investment fund 49. 9%. 521 avenue ownership 460000 foot building.
 valued interests $ 245. 7 million $ 4. 5 million cash.
 $ 140. million mortgage.
 purchase price fair value adjust ment $ 13.
 refinanced $ 150. 2-year mortgage floating rate interest 200 points.
 interest $ 15.
purchase price liabilities 2011 acquisitions 51 east 180 110 1515 521 fifth 42nd street maiden lane broadway 44095 191523 34000 110100.
 east 42nd lane 110 east 42nd street 1515 broadway 521 fifth avenue
 44095 191523 34000 462700 110100
 33470 233230 46411 707938 146686
 market lease value
 in-place leases 98661
 liabilities
 87514 462645 86630 1314724
 adjustment mortgage
 market lease value
 liabilities
 purchase price allocation $ 80000 442325 84304 1234000 257143
 funded 81632 259228 70000
 equity investment 16000 40942 41432
assumed 2014 65000 458767 140000
 funded 200281835 2008259228 200270000 equity debt investment 16000 200840942 200241432 65000 140000 2010 acquisitions january 2010 sole owner 100 street. square foot office tower downtown manhattan foreclosure senior mezzanine loan.
 initial investment $ 40. 9 50% loan two loans acquired gramercy capital.
 2007.
 funded additional $ 15. agreement wachovia bank.
.
 gramercy declined trans ferred interests.
 restructured $ 139. 7 mortgage interest rate 350 points 30-day libor.
 2013 repaid march.
 2010 acquired 125 park avenue manhattan office tower $ 330.
 assumed $ 146. 25 in-place financ ing.
.. interest loan october.
 investments gramercy.
 45% 45 leased fee avenue $ 39. million mortgage debt $ 120. 4 45% herald square $ 25. 6 million debt $ 86. 1 million leased 292 avenue $ 19. 2 mortgage debt $ 59. 1.
 assets leased operators.


table contents 1b.
 unresolved staff comments no.
.
 december 31 2015 owned leased 126 manufacturing sites 14 technical centers.
 plants wholly partially owned leased.
 smaller manufacturing sites sales offices warehouses engineering centers joint ventures investments.
 presence 44 countries.
 regional distribution manufacturing sites north america europe middle east africa asia pacific south america.
 electrical architecture
 powertrain systems
 electronics safety
 14 technical centers four north middle east africa asia pacific one south america.
 77 primarily owned 63 primarily leased.
 review real estate portfolio strategies 2019 global plans operating expenses.
 evolving portfolio current future needs.
.
subject to actions claims suits investigations proceedings business including defects breach contracts competition antitrust product warranties intellectual property personal injury employment.
 financial position results operations cash flows.
 warranty matters future costs reserves cover warranty settlements.
 final amounts could differ from estimates.
 ignition switch recall 2014 customer initiated recall.
 received cooperated government agencies.
 delphi co-defendant gm in class action product liability lawsuits.
 december 2015 not named defendant in class action complaints.
 no assurances loss probable no reserve december 31 2015.
 unsecured creditors litigation partnership agreement delphi automotive llp entered july 12 2011 initial public offering.
fourth llp agreement distributions delphi automotive exceed $ 7. 2 billion pay claims dphh $ 32. 50 $ 67. 50 $ 7. 2 billion $ 300 million.
 december 2014 complaint filed bankruptcy redemption interests gm pbgc repurchase shares dividends $ 7. 2 billion.


devon energy subsidiaries financial statements debt maturities 31 2014 excluding premiums discounts.
 2015 $ 1432
 2016 350
 2017 875
 2019 1337
 2020 7263
 $ 11257
 $ 3. billion syndicated unsecured revolving line credit.
 maturity $ 30 million october 24 2017.
 $ 164 million october 24 2018.
 remaining $ 2. 8 billion october 24 2019.
 interest fixed rate options twelve months.
.
 borrow prime rate.
 annual fee $ 3. 8 million payable quarterly.
 december 31 2014 no borrowings.
 covenant.
 funded debt capitalization no greater 65 percent.
.
 noncash write-downs.
 debt-to- capitalization ratio 20. 9 percent.
 $ 3. billion short-term credit.
paper debt 1 90 days 365 interest.
 federal funds libor.
 december 2014 devon borrowings $ 932 million borrowing rate 0. 44 percent.
 november 13 2014 redeemed $ 1. 9 billion asset divestitures.
 redemption. 4% $ 500 million 2016. 2%. $ 650 million. $ 750 million 2017.
 redeemed $ 1. 9 billion 100 percent principal make-whole premium $ 40 million.
 unamortized discount $ 2 million debt issuance costs $ 6 million.
 2014 statement earnings.


wholesale distribution channels table presents doors geographic location products sold april 2 2016.
 americas
 europe 5625
 asia
 13502
. canada latin america.
 middle east.
 australia new zealand.
 three key wholesale customers sales volume.
 2016 sales macy's.
 11% 25% 25 % total net revenues revenues.
 sales three largest customers 24% 24 % 53%.
 products sold by sales forces.
 showrooms new york city.
 regional showrooms milan paris london munich madrid stockholm panama.
 shop-within-shops.
 brand recognition merchandising differentiate presentation.
 april 2 2016 25000 shop-within-shops channels.
 size 100 to 9200 square feet.
shop-within-shop assets include fixtures wall cases decorative items flooring.
 share cost with wholesale customers.
 stock replenishment.
 knit shirts chino pants shirts accessories home products ordered.
 ship within two to five days order receipt.
 sells 493 stores 3. 8 million square feet 583 concession shop-within-shops e-commerce sites.
 extension direct-to-consumer reach.
 omni-channel retailing strategy integrated shopping experience consistent message.
 ralph lauren stores feature apparel accessories watch jewelry fragrance home assortments exclusive merchandise.
 2016 opened 22 new closed 21.
 upscale street locations regional malls urban markets.


international networks generated $ 1637 million 2012 37% total consolidated revenues.
 national pan-regional networks.
 generates revenue every pay-television market centers london singapore miami.
 discovery channel animal planet tlc lead.
 largest international distribution fourteen networks 200 countries territories.
 december 31 2012 operated 180 feeds 40 languages customized.
 free-to-air networks. germany italy spain international expansion.
 owns operates networks december 31 2012 global networks networks.
 channel 246 networks dmax
 animal planet 183 discovery kids
 tlc real time travel living quest
 science history
 investigation
 home health espanol.
 familia.
 world
december 21 2012 international networks segment acquired 20% equity eurosport pay tf1 french $ 264 million costs.
 controlling interest eurosport 2014 one year.
 tf1 remaining interest one year.
 growth eurosport tennis skiing skating pay television.
 december 28 2012 acquired switchover media five italian channels children's entertainment.
. generated $ 105 million 2012 2% 2 % revenues.
 curriculum-based.
 subscriptions k-12 schools online development services digital textbooks student assessments hardcopy.
 global brand content licensing partnerships non corporations foundations trade associations.
 viewership innovation quality value distributors advertising customers.
 content sourced third-party producers independent producers.
 categories produced coproduced licensed.
produced content includes third parties retain editorial control own rights development production costs.
 coproduced content refers program rights third parties.
 licensed content films previously produced third parties.


property equipment recorded cost.
 depreciation amortization estimated lives.
 land improvements
 buildings
 furniture fixtures equipment
 improvements leased amortized lease term life.
 impairment long-lived evaluates carrying value operating performance future cash flows values.
 sfas 144 impairment reviews impairment stores two years cash flows negative.
 impairment carrying value exceeds undiscounted future cash flows.
 estimate historical operations future profitability.
 asset impaired impairment difference carrying value asset fair value.
 estimated future cash flows rate market value.
 assets adjusted fair value less cost to sell book.
 impairment charges $ 0. 2 million 2007 $ 9. 4 million 2006 $.million 2005 reduce value stores negative sales cash flows.
 majority 2006 charges strategic initiatives.
 amortizes lives indefinite.
 amortizable assets tested undiscounted cash flows impaired written fair value discounted values.
 indefinite lives tested annually written value.
 no impairment.


energy.
 $ 451. 420. 400.
 income 65. 44 62
 2013.
 2012 sales $ 451. higher lng project activity.
 income $ 65.
 sales backlog 2013 $ 402 450 2012.
 $ 250 backlog completed 2014.
.
 2011 sales $ 420. increased 5% $ 19. air separation unit activity.
 income $ 44. decreased 29% $ 18.
 sales backlog 2012 $ 450 $ 334 2011.
 foreign exchange gains losses.
 lifo inventory valuation adjustments.
 stranded costs discontinued operations.
.
 loss $ 4. $ 6.
 unfavorable lifo adjustment $ 11.
 costs discontinued operations $.
.
 loss $ 6. 39.year stranded costs lifo adjustment inventory favorable foreign exchange offset gains asset sales.


cross-border outstandings defined by bank regulatory rules payable by foreign countries regardless currency obligations.
 of deposits loan lease financing investment securities.
 risk conditions repayment obligations foreign exchange.
 outstandings to 1% 1 % ) of total assets december 31.
 united kingdom
 australia
 canada
 germany
 represented 5% 12% ( 9 % ) of total assets as of december 31 2008 2007 2006.
 cross-border outstandings to countries between. 75%. 1% ( 1 % ) of assets at 2008 to $. billion.
 no cross-border outstandings to countries between. 75%. and 1% ( 1 % ) of assets as december 31 2007.
cross-border outstandings to countries. 75%. 1% 1 % assets at december 31 2006 $ 1. 05 billion.
 economic management metrics capital risk profile regulatory requirements financial flexibility future initiatives.
 objective strong capital base financial flexibility growth cash management protection against loss depositors creditors.
 maintain optimal level capital risk attractive return shareholders short long term obligations regulatory requirements.
 capital management focuses on risk exposures capital position regulatory capital requirements evaluations credit rating agencies.
 capital committee oversees capital capital adequacy targets.
 primary regulator state street bank federal reserve.
 minimum capital requirements federal deposit insurance corporation improvement act


duke realty corporation report 2013 leasing costs tenant improvements lease-related costs properties first generation expenditures.
 improvements real estate investments lease-related costs deferred leasing costs. construction building shell site improvements.
 tenant improvements leasing costs second generation expenditures.
 building improvements second generation expenditures.
 liquidity second leasing expenditures.
 generation capital expenditures.
 tenant improvements $ 39892 $ 26643
 leasing costs
 building improvements
 capital expenditures $ 91798 $ 63884 99264
 development real estate investments $ 427355 264755
 other deferred leasing costs $ 35376 26311
generation tenant improvements leasing costs increased shift industrial leasing to key performance indicators capital intensive.
 renewal volume lower office leases increased from 2012.
 increased investment non-tenant building improvements.
 focus wholly owned projects.
 properties expected cost $ 572. 6 million 2013 $ 468. 8 million $ 124. 2 million 2012 2011.
 cash outflows $ 427. 4 million $ 264. 8 million $ 162. 1 million.
 capitalized $ 31. 3 million $ 30. 4 million $ 25. 3 million overhead costs leasing.
 capitalized $ 27. 1 million $ 20. $ 10. 4 million development.
 overhead costs leasing 35. 7%. 31. 1%. 20. 6%. costs.
capitalization overhead costs administrative expenses comparison management financial condition results operations.


containerboard group division tenneco packaging. financial statements april 1999.
 pension benefit plans status benefit excluding retirement reconciles 1998 statements assets liabilities actuarial value september 30 1998.
 benefit obligation -98512
 accumulated
 projected obligation
 146579
 unrecognized transition liability
 net gain
 prior service cost 13455
 prepaid pension cost december 31 1998
 weighted average discount rate 7.%. december 31 1998.
 long-term rate return assets 10%.
 management employees incentive compensation plans.
 payments targeted operating results goals.
.
 amounts $ 1599000 period april 11 1999.
 tenneco employee stock purchase plan.
.
 employees purchase.
 common stock payroll 15% discount.
 shares $ 21250.
average employee purchase right estimated black-scholes option pricing model 90 days $ 6. 31 december 31 1998.
.
 tenneco employee stock purchase plan april 1 1997.
 sold 36883 shares employees april 11 1999.
 1996 stock ownership plan common stock restricted stock performance units appreciation rights options.
 17000000 shares common stock december 31 2001.
 fair market value options granted calculated tenneco stock price past black-scholes pricing values fair value.
 stock option estimated black-sholes option pricing model assumptions


discloses purchases common stock fourth quarter 2015.
 shares purchased average price paid share not purchased plans dollar value.
 october 2015 1658771  $ 62. 12 842059 816712 $ 2. 0 billion
 november 2015 2412467  $ 71. 08 212878 2199589 $ 1. 8 billion
 december 2015 7008414 $ 70. 31 7007434 $ 1. 3 billion
 11079652  $ 69. 25 1055917 10023735 $ 1. 3 billion
 shares represent purchases fourth quarter 2015 open-market transactions stock-based compensation plans employees stock options vesting restricted stock compensation transactions.
 july 13 2015 board approved purchase $ 2.billion common stock no expiration $ 3 billion.
 completed purchases.
 december 31 $ 1. 3 billion 2. 5 billion program.


part iii item 10.
 directors executive officers corporate governance.
 section 406 sarbanes-oxley act 2002 adopted code ethics senior financial officers principal executive officer financial officer accounting officer controller.
 available website. hologic
 disclosure item 5. report form 8-k amendment waiver website.
 additional information proxy statement annual meeting stockholders commission 120 days fiscal year.
 item 11.
 executive compensation.
.
 item 12.
 security ownership management.
 equity compensation plans employees officers directors.
 table fiscal year 27 2008 shares common stock stock option plans equity incentives approved.
 securities exercise price adjusted two-for-one stock splits november 30 2005 april 2 2008.
equity compensation plan securities options warrants rights future approved holders.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
. 19977099 equity compensation plans approved security holders
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
 securities issued options warrants rights warrants future compensation plans equity compensation plans approved security holders.
 not approved holders.
 15953695.
 1997 employee equity incentive.
.
1997 employee equity incentive plan adopted board 1997 attract retain employees consultants advisors incentive assist performance goals enable participate long-term growth.


73 98 financial statements ball corporation subsidiaries 15.
 shareholders december 31 2006 550 million shares common stock 15 million preferred stock.
 120000 unissued shares stock.
 26 2006 purchase right each share.
 entitles purchase share price $ 185 per right.
 acquires 10 percent common stock rights exercisable entitle purchase shares 50 percent discount.
 rights expire 2016 redeemable redemption price $ 0. 001 per right.
 dilution.
 interfere merger business combinations.
 reduced share repurchase program 2006 $ 45. 7 million $ 358. 1 million 2005 $ 50 million 2004.
 contract repurchase 1200000 shares.
 settled january 5 2007 $ 51. 9 million.
 contributes 20 percent $ 500 employee payroll deduction purchase common stock.
contributions $ 3. 2 million 2006 3. 2 million 2005 2. 7 million 2004.
 earnings millions foreign currency translation pension postretirement items financial derivatives.
 foreign currency pension financial derivatives
 2003 80. 7 -93. 1 93. 11. -1 4.
 68. -33 33 4 34.
 2004 148. -126. 3 126. 10. 33.
 -74. 3 74. 6 43. -133 9 133.
 2005 74. -169. 169. -5. 4 7.
 57. 8. 6. 71.
 2006 131. -161. 9 161. 5 29.
 2005 distribution reinvest foreign earnings.
 no taxes foreign currency translation.
 minimum pension tax expense $ 2. 9 million 2006 tax benefits $ 27.. million 2005 2004.
 derivatives tax $. million 2006 $. 7 million 2005. 2 million 2004.


results second step december 31 2008 company recorded $ 9. 6 billion pretax $ 8. 7 billion after-tax goodwill impairment fourth quarter 2008 most goodwill allocated units.
 primary cause goodwill impairment deterioration financial markets global economic outlook mid-november year-end 2008.
 significant fair value adjustments purchase price allocation loans debt intangibles.
 adjustments assets implied fair value goodwill not reflected consolidated balance sheet.
 table shows units goodwill balances excess fair value allocated book value december 31 2009.
 allocated.
 north america banking 174%
 latin america
 securities
 services
 brokerage asset management
 local lending
 excluded no goodwill allocated.
no impairment noted in company 2019s consumer lending 2014cards unit test at november 30 2009 goodwill may sensitive to deterioration economic conditions.
 earnings transaction multiples selected from guideline companies acquisitions.
 performance financial condition return on equity net income growth.
 utilized discount rate risk uncertainty selected 2012 terminal year.
 small deterioration assumptions growth could affect impairment evaluation results.
 cash flows could experience future impairment charges $ 4683 million goodwill unit.
 charges affect tier 1 capital regulatory ratios common equity liquidity position.


consolidated financial statements.
 pension postretirement health care life insurance table benefits ten years pension postretirement plans december 31 2004.
 2005 $ 125
 2006
 2007
 2008 154
 2009 166
 2010-2014
 $ 1772 $ 352
.
 stock compensation plans may 2000 shareholders hartford approved incentive stock plan replaced 1995 stock plan.
 similar 1995 annual higher maximum limit.
 awards non-qualified incentive stock options performance shares restricted stock.
 stock appreciation rights stock options 2000.
 2004 amended grants restricted stock units january 1 2005.
 maximum limit 17211837 shares ten-year duration.
 options exercise price equal market price common stock maximum term ten years two.
options exercisable three year period grant market price appreciation common shares.
 no employee more 1000000 shares.
 2004 hartford incentive stock options 2000 plan.
 performance awards payable performance goals five years restricted stock subject to restriction.
 no more 20% shares.
 maximum award 200000 shares.
 2004 2003 2002 granted 315452 333712 40852 average prices $ 64. $ 38. $ 62.
 1996 hartford employee stock purchase plan.
 employees purchase common stock at 15% discount closing market price.
 sell 5400000 shares employees.
 2004 2003 2002 345262 443467 408304 shares sold.
 per share average fair value $ 9. 31 $ 11. $ 11. 70.
 1997 established employee stock purchase plans for international.
participants purchase stock hartford fixed price three-year.
 activity material.


auto parts.
 subsidiaries financial statements 2013 2007 2006 2005.
 stock repurchase program 2007 authorized new repurchase program $ 500000 expenses.
 cancelled replaced previous $ 300000 repurchase program.
 stock open market privately securities exchange commission.
 2007 repurchased 8341 shares cost $ 285869 average $ 34. 27 per share 1330 previous 300000 program.
 77 shares repurchased $ 2959 unsettled.
 retired 6329 shares.
 $ 260567 remaining current repurchase program.
 repurchased 4563 shares $ 155350 average $ 34. 04 per share.
 2006 retired 5117 shares repurchased.
 $ 192339 average $ 37. 59 per share.
.
adoption fin 48 2006 company $ 2275 liability unrecognized tax benefits retained earnings.
 table unrecognized tax benefits fiscal year 29 2007.
 balance 31 2006 $ 16453
 increases 1279
 decreases
 increases 5340
 settlements -539
 expiration statute limitations -271
 balance december 29 2007 $ 20409
 unrecognized tax benefits annual tax rate.
 fin 48 interest penalties tax expense.
 accrued penalties interest $ 709 $ 1827.
 liability penalties interest $ 1843 $ 4421 .
 tax contingencies expense.
 penalties.
 unrecognized tax benefits change 12 months.
 conclude $ 2000 to $ 3000 contingencies settlements expiration statute limitations.
 resolutions current income tax examinations.


2006 net revenues increased $ 149. 6 million. $ 430. 7 million 2006 281. 1 million 2005.
 net sales license revenues product category table.
 255681 189596 34. 9%. 9 %
 85695 53500 32195 60. 2%.
 31845 18784 13061 69. 5%.
 apparel 373221 261880 111341 42. 5%. 5 %
 footwear 26874
 accessories 14897. 3%.
 net sales 414992 271289 143703 53.
 license revenues 15697 9764.
 revenues $ 430689 281053 149636. 2%.
 sales increased $ 143. 7 million. $ 415. million 2006 $ 271. 3 million 2005.
 increase sales.9 million footwear sales football cleats second quarter 2006 baseball cleats fourth quarter volume growth coldgear retail customers stores expanded floor space average selling price apparel increased women youth market penetration product introductions compression training products.
 license revenues increased $ 5. 9 million. $ 15. 7 million 2006 $ 9. 8 million 2005.
 increased sales distribution volume growth new product offerings licensing agreements college bookstores golf pro shops.
 gross profit increased $ 79. 7 million $ 215. 6 million 2006 $ 135. 9 million 2005.
 profit increased 180 points 50. 1%. 3%.
 product costs supplier discounts 170 point increase decreased close-out sales 70 point increase customer incentives marketing expenditures 70 increase


buy/sell arrangements before april 2006 reported separate.
 adoption eitf issue.
 04-13 change accounting nontraditional derivative instruments effect net income.
 after april 2006 less than previous accounting practices.
.
 revised 2004 fasb issued.
-based payment revision.
 stock-based compensation. requires measure cost employee services equity instruments fair value.
.
 awards liabilities remeasured at fair value each reporting period.
 fair value method.
 grants january 1 2003.
.
 requires calculate excess tax benefits tax deficiencies.
 fasb issued.
 election tax effects share-based payment awards alternative transition election method.
 elected long-form method determine excess tax benefits january 1 2006.
 adopted.
123 r january 1 2006 awards granted modified cancelled adoption unvested january 1 2006.
.
 assumed forfeiture rate unvested awards liabilities measured fair value.
.
 recognized forfeitures intrinsic value method.
 adoption results operations financial position cash flows.
.
 january 1 2006 adopted.
 costs amendment.
. idle facility expense excessive spoilage double freight re-handling costs current-period charge.
 adoption results operations financial position cash flows.
.
 january 1 2006 adopted.
 changes error corrections replacement apb opinion.
 statement.
.
 recognize voluntary changes accounting principle new accounting pronouncement transition provisions prior periods financial statements.
.
 fasb interpretation.
 conditional asset retirement obligations statement.
.interpretation clarifies entity recognize liability legal obligation asset retirement conditional future event if liability fair value estimated.
 entity disclose description obligation liability reasons.
.
 clarifies entity information estimate value retirement obligation.
 adopted.
 december 31 2005.
 charge $ 19 million net taxes $ 12 million.
 cumulative effect change accounting principle 2005.
 assets increased $ 22 million liabilities increased $ 41 million.
 net income per share effect.
 2005 2004 not different.
 summarizes total liability asset retirement obligations.
.
 impact adoption.
 liability measured using information assumptions interest rates.
.
.
 31 2003
.
 adopted.
 nonmonetary assets amendment.
 july 1 2005.
 amendment eliminates apb opinion.
exception value nonmonetary exchanges replaces exception commercial substance.
.
 2013 january 1 adopted.
 suspended well costs amended guidance exploratory well costs.
 accounting reporting oil gas companies.
 costs drilling wells capitalized reserves.


republic services.
 financial statements quality institutions.
 balances fdic insured limits.
 monitor credit worthiness financial institutions deposits.
 credit risk accounts limited variety customers markets dispersion operations.
 small-container large-container municipal residential energy services customers united states puerto rico.
 credit evaluations require collateral receivables.
 allowance doubtful accounts credit risk age historical trends economic conditions.
 collection transfer recycling disposal energy services.
 recorded billed earned claims settled cash.
 estimated realizable value.
 provisions evaluated monthly historical collection experience age information economic conditions.
 review outstanding balances.
 reserves 90 days.
 past due receivable balances written-off collection unsuccessful.
 activity allowance doubtful accounts years ended december 31.
$ 44. $ 46. 7 $ 38. 9
 additions 30. 6 20. 4 22. 7
 accounts written-off. 7 35. 23. 9 14.
 end year $ 38. 9 $ 44. $ 46. 7
 restricted cash securities december 31 2017 $ 141. million securities $ 71. 4 million insurance workers compensation general liability auto liability.
 obtain funds tax-exempt bonds expenditures landfills transfer stations collection recycling centers.
 deposited trust accounts.
 restricted cash securities.
 financial assurance agencies collection contracts landfills environmental remediation permits business licenses.
 cash trust funds escrow accounts.
 cost.
 additions improvements maintenance repairs.


maturities marketable securities.
 millions sale cost fair value
 1 year $ 25. 4 $ 25.
 equity securities.
 $ 25. 7 $ 28.
 cash equivalents pledged collateral derivative contracts.
 $ 0. 9 million receivable pledged foreign uncommitted line credit.
 fair value carrying amounts long-term debt $ 14169. 7 million $ 14268. 8 million.
 estimated market quotations discounted cash flows borrowing rates.
 debt level 2 liability fair value.
 risk management exposed market risks interest rates commodity prices.
 derivative transactions.
 commodity price risk.
 derivatives manage price risk ingredients costs grains oils dairy products.
 certainty future price commodities.
manage exposures through purchase orders contracts futures options over-counter options swaps.
 offset market conditions acquire inputs close planned cost.
 use derivatives commodity prices.
 hedge accounting.
 changes recorded in cost sales statements earnings.
 criteria cash flow hedge accounting instruments effective certainty future price commodities.
 performance gains losses reported in unallocated corporate items outside results until affects earnings.
 reclassify gain loss to profit effects without mark-to-market volatility.


arconic subsidiaries file tax returns.
 federal foreign jurisdictions.
 no subject tax examinations 2006.
.
 years prior 2016 audited.
 tax authorities examining arconic income tax returns 2015.
 reconciliation unrecognized tax benefits excluding.
 2016 2015 2014
 balance beginning year $ 18 $ 7  $ 8
 additions tax current
 prior years
 reductions
 settlements tax authorities
 expiration statute of limitations
 foreign currency translation
 balance end year $ 28 $ 18  $ 7
 portion balance pertains state tax liabilities before federal tax benefits.
 unrecognized tax benefits annual effective tax rate 2016 2015 2014 6% 7% 4% 4 pretax income.
 changes unrecognized tax benefits impact consolidated operations 2017.
arconic policy interest penalties.
 2016 2015 2014 interest penalties.
 expiration statute limitations settlements refunded overpayments recognized interest $ 1 2015 2016 2014.
 accrued interest penalties $ 2 $ 1 .
.
 arrangement three financial institutions sell receivables without recourse.
 bankruptcy special purpose entity subsidiary.
 minimum funding $ 200 $ 400 receivables sold.
 sold $ 304 receivables $ 50 cash $ 254 deferred purchase price.
 received additional net cash funding $ 300 receivables sold $ 1758 $ $ 100 2016.
 no draws repayments 2015.
 deferred purchase price receivable $ 83 $ 249.
 reduced collections revolving program sale new receivables deferred purchase price.
change deferred purchase price receivable reflected receivables.
 operating cash flow receivables insignificant short-term interest rate risk.


management financial condition results operating income.
 operating income reconciliation
 10646 2016 income
 1250 lower platform unit cost
 905 lower expense
 625 higher gross margin
 -645 higher factory start-up costs 10nm process technology
 8166 2015 income
 higher platform unit costs
 lower gross margin
 435 lower start-up costs 14nm process technology
 lower production costs 14nm products
 lower operating expense
 224
 10327 2014 income
 higher gross margin selling prices lower sales.
 lower gross margin sales prices.
 platforms energy-efficient performance server network storage applications.
 lowering total cost ownership optimizations enterprise cloud communications segments.
2016 launched platforms processor e5 v4 clouds energy-efficient server network storage.
 xeon processor e7 v4 four cpus high performance real-time analytics in-memory computing industry-leading reliability availability serviceability.
 xeon phi 2122 knights 72 high-performance processor cores integrated memory common software programming.
 parallel compute memory bandwidth-intensive workloads.
 performance supercomputers calculations data artificial intelligence.
 2017 next generation xeon processors compute storage network phi deep learning single-socket products e3 xeon-d.


entergy texas.
 revenue 2008 2007 operating revenues fuel expenses gas power expenses regulatory charges.
 analysis change net revenue 2008 2007.
.
 2007 net revenue $ 442.
 volume/weather -4.
 reserve equalization.
 securitization transition charge.
 fuel recovery.
.
 2008 net revenue $ 440.
 volume/weather variance due decreased usage unbilled sales period.
 estimates.
 reserve equalization variance lower entergy system generation mix.
 securitization transition charge variance due issuance bonds.
 entergy gulf states reconstruction funding issued securitization bonds.
.
 fuel recovery variance due reserve potential rate refunds first quarter 2007.
 variance operational effects jurisdictional separation revenues fuel purchased power expenses.
operating revenues fuel power expenses regulatory charges increased $ 229. 3 million increase $ 157 million fuel cost recovery revenues higher rates usage offset interim fuel refunds november 2007.
 two 2008.
 increase $ 37. 1 million wholesale revenue cost energy transition charge securitization bonds.
 interim surcharge $ 10. 3 million under-recovered capacity costs july 2007.
 two-month 2008.
.


performance graph shows return company common stock dividend reinvestment&p 500 index dow jones financials index december 31 2010 2015.
 e*trade financial corporation 100. 49. 55. 122. 151. 185.
 s&p 500 index 100. 102. 118. 156. 178. 180.
 dow jones financials index. 87. 110. 148. 170.


30 94 capital spending.
 2007 $ 44. 5 million 27. 3 million pension plans debt reduction plan.
 consolidated cash flow.
 2007 2006 2005
 cash flows $ 673. 401. 558.
 pension funding.
 -308. -279.
 replacement fire-damaged assets 48.
 free cash flow $ 440. 183. 267.
 cash flows 2008 $ 650 million capital spending $ 350 million free cash flow $ 300 million.
 spending $ 259. million 48. 6 million recoveries 2007 below depreciation amortization expense $ 281 million.
 aerospace.
 $ 350 million spending $ 180 million sales growth.
 refinancing decreased. million $ 2358. 6 million 2451. million.
 higher foreign exchange rates.
december 31 2007 $ 705 million multi-currency credit.
 $ 345 million short-term credit $ 49. million outstanding.
 october 13 2005 refinanced senior credit redeemed 7. 75%. senior notes 2006.
 pretax debt refinancing $ 19. million. premium write unamortized debt costs.
 receivables sales agreement trade accounts packaging $ 250 million.
 off-balance sheet financing.
.
.
 funds sale $ 170 million $ 201. 3 million december 31 2007 2006 reduction accounts receivable consolidated balance sheets.
 not default loan met payment obligations.
.
 restrictions dividends investments financial ratios guarantees additional indebtedness.
 details receivables sales agreement notes 7 13 financial statements.


2019s 2017 tax rate includes $ 160. 9 million benefits act $ 6. 2 million special gains charges $ 25. 3 million discrete tax items.
 provisional net tax benefit $ 160. 9 million recorded december 31 2017 $ 321. million tax benefit deferred tax assets.
 expense one-time transition tax $ 160. 1 million.
 impact reduction.
.
.
 tax reform $ 7. 8 million.
 recorded discrete tax benefit $ 39. 7 million excess tax benefits accounting changes compensation.
.
 recorded expenses $ 14. 4 million adjustments 2016.
 federal income tax return international adjustments offset reserves uncertain tax positions limitations.
 net expense tax $ 3. 9 million.
 recognizing adjustments 2015.
income tax return offset settlement international tax matters deferred tax assets liabilities updated tax rates jurisdictions.
 net expense impacted by adjustments deferred tax positions release reserves tax positions expiration statute limitations.
 jurisdictions.
 2015 company recognized net benefits tax $ 63. 3 million.
 driven release $ 20. 6 million valuation allowances foreign deferred tax assets worthless stock deduction $ 39. million wholly-owned domestic subsidiary.
 reconciliation liability unrecognized tax benefits.
 millions 2017 2016 2015
 balance beginning year $ 75.
 additions tax positions current year.
 prior years.
 reductions.
 reductions tax positions due statute limitations.
 settlements.
 acquisitions.
 foreign currency translation.
end year $ 61. $ 75. 74.
 unrecognized tax benefits tax rate $ 47. million 2017 57. 5 million 2016 59. 2 million 2015.
 recognizes interest penalties benefits.
 released. 9 2. 9 1. 4 million.
. 3 10. 2 million 13. 1 million interest 2015.


financial condition results operations include net interest coverage debt-to-book capitalization ratios.
 company 3-year credit facility december 31 2005.
 never borrowed domestic revolving credit facilities.
 utilization.
 conditions borrowing.
 contractual obligations guarantees purchase commitments future payments debt lease purchase as december 31 2005.
 payments due by 2006.
 long-term debt obligations $ 4033  $ 119  $ 1222 $ 200 529 1961
 lease obligations 1150  438 190 134
 purchase obligations 992  418  28  539
 contractual obligations $ 6175  $ 975  $ 1440 $ 337 $ 113 $ 615  $ 2695
 non-cancelable commitments.
december 31 2005 long totaled $ 4. billion $ 5. billion 2004.
 note 4.
 decrease due to redemptions repurchases $ 1. billion 2005.
 remaining $ 118 million of. 6%. notes due january 1 2007 reclassified current maturities.
 lease obligations owns facilities office factory warehouse space land equipment non-cancelable leases.
 2005 minimum lease obligations totaled $ 1. 2 billion.
 $ 254 million 2005 $ 217 million 2004 $ 223 million 2003.
 purchase obligations purchase inventory software promotional research development agreements not cancelable.
 through 2015.
 payments $ 992 million.
 software components supplies materials.
 one to three years.
agreements obligate company purchases permit with advance notice 60 to 180 days.
 liable for termination charges based on work performed inventory materials canceled.
 liability other than. 2003 outsourcing contracts for administration technology services.
 contracts extend 10 years expire 2013.
 total payments approximately $ 3 billion over 10 years can.
 penalty less than annual payments.
 find another source for services in-house.
 performance/bid bonds standby letters of credit outstanding government enterprise mobility networks.
 maturities to three years


aeronautics profit 2011 increased $ 132 million 9% 2010.
 $ 115 million higher profit c-130 volume f-16 $ 50 million c-5 $ 20 million $ 70 million risk retirements.
 offset decline profit $ 75 million f-22 f-35 lower volume $ 55 million other programs f-35 lower profit rate adjustments.
 $ 90 million higher.
 decreased 2012 lower orders f-35 c-130 offset higher orders f-16.
 backlog increased 2011 higher orders f-35 higher sales c-130.
 mid digit decline net sales 2013.
 f-16 offset increase sales f-35 lrip contracts.
 operating profit decrease 2012 decline net sales changes aircraft mix slight decline operating margins.
 management services solutions civil defense intelligence government customers.
 smaller contracts.
&gs impacted downturn federal information technology budgets resolution october 1 2012.
 fiscal year.
 2019 operating results.
 2011
 net sales $ 8846 $ 9381 $ 9921
 operating profit
 margins. 1%. 1 %. 3%. 3 2%. 2 %
 backlog year-end
 net sales decreased $ 535 million 6% %.
 lower net sales $ million completion programs 2011.
 $ 255 million lower volume programs.
 higher net sales $ 140 million qtc acquired 2011 $ 65 million increased activity programs federal cyber security.
 operating profit 2012 decreased $ 66 million 8% 8 % 2011.
decrease lower profit $ 50 million odin contract 2011 $ 25 million reserves airborne surveillance $ 20 million lower volume c2bmc win-t.
 risk retirements $ 15 million twic $ 10 million increased activity programs federal cyber security.
 profit jtrs program reserves.
 net profit $ 20 million higher 2012 2011.


table information increases aap stores past five years beginning new 1 closed ending 1 include relocations renovations.
 store-based information systems efficiency service proprietary pos system electronic parts catalog system.
 information pos system pricing marketing merchandising strategies inventory.
 pos system integrated with epc parts selection ordering based year make model engine.
-based epc data management system time exchange data catalog deliver parts information.
 contains enhanced search engines navigation tools parts products.
 part available epc system ordered from.
 available parts accessories ordered electronically confirmation price availability delivery time.
 support store operations proprietary systems labor scheduling.
 store-level inventory management system provides real-time inventory tracking.
store-level system team check-hand inventory adjust stock levels process returns defective merchandise designate skus track transfers.
 stores use radio frequency hand-held devices accuracy inventory.
 standard operating procedure system web-based data management system access procedures on-line search.
 systems provide real-time information improved customer service productivity in-stock availability.
 merchandise handled teams locations roanoke minneapolis taipei.
 roanoke team parts minnesota team accessories oil chemicals.
 global sourcing team.
 fiscal 2011 purchased from 500 vendors no single vendor more 9% purchases.
 purchasing strategy agreements vendors payment terms volume.
 team developed vendor relationships category management process product offerings demand.
 global sourcing store sales gross margin inventory productivity.
2011 2010 2009 2008 2007
 beginning stores 3369 3264 3243 3153 2995
 new stores 1 ) 95 110  75  109  175
 closed -4 4 -5 ( 5 ) -54 54 ) -17 )
 ending stores 3460 3369 3264 3243 3153
 table increases stores past five years beginning new 1 ) closed ending 1 relocations renovations.
 store-based information systems proprietary pos system electronic parts.
 pricing marketing merchandising strategies replenish inventory.
 pos integrated epc parts selection ordering year make model engine.
 epc data management time data parts information.
 search engines-friendly navigation tools.
hard part accessory available epc system ordered from.
 available parts accessories ordered electronically from confirmation price availability delivery time.
 store operations with proprietary systems labor scheduling.
 store-level inventory management system real-time inventory tracking.
 check inventory adjust stock levels process returns defective merchandise designate track merchandise transfers.
 radio frequency hand-held devices accuracy inventory.
 standard operating procedure system web-based data management access procedures on-line search.
 provide real-time information improved customer service productivity in-stock availability.
 merchandise handled by merchandise teams roanoke minneapolis.
 roanoke parts minnesota accessories oil chemicals.
.
 fiscal 2011 purchased merchandise from 500 vendors no single vendor more than 9% purchases.
purchasing strategy agreements with vendors pricing payment volume.
 merchandising team developed strong vendor relationships category management process product demand.
 process global sourcing operation critical improving store sales gross margin inventory productivity.


reserves expansions funding approved joint venture agreement satisfied.
 table changes estimated net bitumen reserves 2008.
 millions barrels.
 421
 revisions -30
 extensions discoveries additions 6
 production
 end year 388
 revisions driven by price impact new royalty regime.
 estimated reserves forward-looking based assumptions commodity prices volumes physical data recoverability industry economic conditions cash flow operating considerations.
 recoveries different.
 estimation process item 7.
 financial condition results operations 2013 accounting estimates recoverable reserve quantities.
 operations not financial accounting standards.
 accounting requirements oil gas companies.
.
201cdisclosures oil gas amendment statements 19 25 33 39 securities exchange commission rule 4-10 bitumen production reserves information oil gas.
 release amending disclosure requirements reports 10-k december 31 2009 item.
 financial condition results 2013 accounting standards.
 expansion aosp approved 2006.
 mining extraction jackpine mine treatment muskeg river mine 2010 2011.
 50000 bpd net production capacity canadian oil sands.
 future expansions review.
 alberta government accepted expansion 1 capital costs muskeg river mine cost recovery pool.
 price royalties 2008 one percent gross mine revenue.
 2009 alberta royalty regime amended based canadian dollar texas price.
 nine percent gross revenue 25 40 percent net revenue.
minimum royalty $ 55. per barrel maximum $ 120. barrel linear increase royalty prices.
 oil sands mining aosp expansion.
 transportation logistics materials labor hazards weather delays approvals risks construction.
 seven refineries gulf coast midwest upper great plains refining capacity 1. 016 million barrels per day crude oil.


financial condition results operations capital resources growth funded cash debt financing.
 cash operations receivables borrowings cash fund debt payments march 2014 repayment $ 100. million. 85%. unsecured notes maturity interest dividends new receivables financial capital expenditures working capital restructuring activities pension plans share repurchases acquisitions.
 external funds available acceptable cost.
 february 7 2014 long-term debt commercial paper rated a3 p-2- standard poor f2 fitch.
 credit arrangements sound balance sheet financial flexibility growth acquisitions.
 assurances future financing terms debt ratings.
 consolidated balance sheets.
 2013 working capital $ 1080. 8 million increased $ 1. 0 million $ 1079. 8 million 2012.
 working capital position 2013 2012.
equivalents 217. 214.
 531. 497.
 374. 323.
 68. 62.
 434. 404.
 169. 166.
 1796. 1669.
 long-term debt -113. -5
 -155. -142.
 -446. -441. 441
 -715. 715. -589. 589.
 capital $ 1080. 8 1079.
 $ 217. 6 million 2013 $ 214. 5 million 2012.
 $ 3. 1 million increase $ 508. 8 million finance receivables 392. 6 million 24. 3 million pension plans 29. 2 million stock purchase option plan $ 8. 4 million sale property equipment.
 offset $ 651. 3 million finance receivables dividend payments $ 92. million repurchase 926000 shares common stock $ 82.million funding $ 70. 6 million capital expenditures 2013 acquisition challenger $ 38. 2 million.
 $ 217. 6 million cash equivalents 2013 $ 124. 3 million held outside united states.
 snap-on.
 funds permanently invested foreign operations working capital satisfy regulatory requirements business expansion repatriate funds.
.
 repatriation cash adverse net tax consequences.
.
 repatriation favorable net tax consequences.
 evaluates repatriate cash tax consequences.


minimum lease payments non-cancelable operating leases at may 31 2013 fiscal years 31.
 2014 $ 11057
 2015 8985
 2016 7378
 2017 6700
 2018 6164
 16812
 future minimum lease payments $ 57096
 party to claims lawsuits business.
 liabilities financial position liquidity results operations.
 unrelated to income sales property value-add business taxes.
 interpret operating tax matters united states foreign jurisdictions.
 taxing authorities additional taxes.
 may 31  2013 2012 liabilities for contingencies operating tax items.
 sponsorship depository processing agreements with banks.
 identification numbers visa mastercard.
 agreements contain financial covenants in compliance with as of may 31 , 2013.
canadian visa sponsorship expired march 2011.
 filed application superintendent financial institutions wholly owned loan company financial institution sponsor.
 december 12 2012 order business direct visa member bin transfer.
 2011 obtained temporary participation visa canada application pending.
 bin transfer september 30 2013.


expense.
 incurred $ 150.
 capitalized 13.
 expense $ 137. $ 130.
 increased. lu'an joint venture offset impacts currency lower interest rate debt balance.
 capitalized interest decreased 31% $ 6. carrying value projects lu'an project.
 $ 66. $ 61. lower pension settlement losses higher non-service pension income higher interest income.
 pension settlement losses $ 43. transfer pension assets obligations insurer.
.
 pension settlement loss $ 5. $
 pension plan.
 $ 1809. increased 18% 18 % $ 276.
 tax cuts jobs act positive pricing favorable volumes.
 income margin. increased
 $ 3468. increased 11% $ 352. positive pricing higher volumes unfavorable currency.
ebitda margin 38. 9%. increased 400 due higher volumes positive pricing india contract modification.
 contributed 80.
 tax rate equals operations.
 21. 26. 2019 2018.
.
 tax cuts jobs act.
 tax laws federal corporate income tax rate 35% to 21% 21 repatriation tax foreign earnings.
 net tax costs $ 43. 8 $ 180. 6 2019 2018.
 cost $ 56. 2 reversal benefit.
 foreign dividends.
.
 offset adjustment $ 12. 4
 foreign tax repatriation tax.
 rate net gain exchange equity affiliates $ 29. 1 not taxable.
 higher 2018 expense offset $ 35. tax benefit restructuring foreign subsidiaries $ 9. benefit audit settlement agreement higher excess tax benefits share-based compensation.
adjusted tax rate. 4%. 6%. 2019 2018.
 lower rate $. benefit foreign audit tax share compensation.


december 31 2014 authorized stock repurchase program $ 5. 5 billion remaining $ 738 million for future repurchases february 3  2016.
 management authorized purchase common stock open market prevailing prices securities laws legal requirements subject to stock price business market conditions.
 stock repurchases cash operations.
 fund revolving credit facility future financing transactions.
 no repurchases series a b common stock three months ended december 31 2014.
 announced stock repurchase program august 3 , 2010.
 cumulative shareholder return series a 500 index peer group.
.
.
 assumes $ 100 invested december 31 2009 in s&p 500 index peer group companies including reinvestment dividends years ended december 31 2010 2011 2012 2013 2014.
december 31.
 $ 100. 135. 96 133. 58 206. 98 294. 82 224. 65
 100. 138. 79 133. 61 200. 95 290. 40 233. 86
 100. 138. 35 142. 16 220. 59 316. 21 254. 30
 100. 112. 78. 78 127. 90 165. 76 $ 184. 64
 100. 118. 40 135. 18 182. 38 $ 291. 88 $ 319. 28
 equity compensation plan securities 2015 annual meeting.


2015 2014 $ 1. 5 billion $ 1. 3 billion.
 foreign currency hedges december 31 $ 4. 1 billion $ 804 million.
 derivative instruments net earnings income 2015 2013.
 derivatives hedge accounting.
 note 16 fair value measurements.
 2014 fasb new standard revenue disclosure requirements.
 july 9 2015 approved one-year deferral 2018 option adopt 2017.
 early adoption not.
 standard adopted retrospectively modified retrospective new existing contracts cumulative catch-up adjustment retained earnings date contracts.
 fasb changes new standard.
 evaluating methods adoption effect financial statements disclosures.
 revenue guidance impact revenue cost recognition contracts business segments.
 evaluation future periods.
 2015 fasb standard accounting adjustments preliminary amounts requirement.
adjustments recognized period including effect on earnings previous periods acquisition date.
 adopted standard january 1 2016 apply business adjustments after adoption.
 november 2015 fasb issued standard deferred income taxes assets liabilities noncurrent consolidated balance sheets.
 effective january 1 2017 early adoption permitted.
 adoption or prior periods.
 evaluating method adoption.
 2013 earnings per share.
 common shares basic computations 310. 316.
 dilutive effect equity awards.
 diluted 314. 322.
 basic diluted earnings common share dividing net earnings by weighted average number common shares periods.
 includes effects assumed vesting outstanding restricted stock units exercise stock options.
.4 million stock options 2013 anti-dilutive prices common stock.
 no anti-dilutive equity awards 2015 2014.


deferred compensation plan company executives board adopted illumina.
 plan effective january 1  2008.
 eligible participants contribute 80% base salary 100% other forms compensation including bonus commission director fees.
 company credit participants contributions earnings performance independent investment funds.
 make employer contributions accounts.
 vesting schedules discretion compensation committee.
 contributions 100% vested disability death retirement change control.
 benefits unsecured.
 participants eligible receive payment vested benefit end deferral period after termination employment.
 december 28 2008 no employer contributions plan.
 established rabbi trust directors executives.
.
.
 included assets trust in consolidated balance sheet.
 december 28 2008 assets liabilities $ 1. 3 million.
 assets classified as other assets accrued liabilities balance sheet.
values assets trust accrue company.
.
 segment information geographic data customers quarter 2008 reorganized structure life sciences business unit products services research market beadarray beadxpress sequencing lines.
 created diagnostics business unit molecular diagnostics.
 2008 limited activity diagnostics results reported chief executive.
.
 operated one reportable segment.
 revenue regions.
 united states $ 280064 $ 207692 103043
 kingdom 67973 34196 22840
 european countries 127397 75360
 asia-pacific 72740 35155
 other markets 25051 14396
 total $ 573225 $ 366799  $ 184586
 net revenues attributable geographic areas region destination.
.
 consolidated financial statements 2014


goldman sachs group.
 subsidiaries 9.
 changes disagreements accountants financial disclosure no changes disagreements last two years.
.
 controls procedures evaluation goldman sachs management chief executive officer financial officer disclosure controls procedures rule 13a-15.
 concluded effective.
 no change internal control financial reporting rule 13a-15 fourth quarter 31 2018 internal control.
 report report independent accounting firm part ii item 8 form 10-k.
 9b.
 information.
 10.
 directors executive officers corporate governance page 20 form 10-k.
 audit committee financial experts procedures shareholders recommend director nominees proxy statement 2019 annual meeting filed 120 days 2018.
 code business conduct ethics senior financial officers 2014 part i item 1 form 10-k.
.
executive compensation executive officer director compensation committee board 2019 proxy statement incorporated form 10-k.
 item 12.
 security ownership beneficial owners management stockholder matters common stock management 2019 proxy statement form 10-k.
 table information december 31  2018 securities issued outstanding restricted stock units equity compensation plans 2018.
 securities weighted average exercise price securities future issuance 17176475 68211649 approved.
 securities options weighted average price future issuance
 plans 17176475
 17176475
 2030 securities issued outstanding options rights includes 17176475 shares outstanding rsus.
 awards subject to vesting conditions award agreements underlying shares delivered net tax withholding.
 december 31  2018 no outstanding options.
shares rsus deliverable average exercise price.
 goldman sachs 2018 form


.
 management financial condition results operations 2013 highmount revenues profitability future growth depend natural gas ngl prices production.
 price volatility.
 weather political economic events competition supply demand gas pricing.
 natural gas prices decreased increased onshore production working gas storage reduced commercial demand.
 increase production increased production sources shale horizontal drilling.
 factors lower industrial demand economic downturn low crude oil prices.
 2009 highmount contracts five drilling rigs permian basin property sonora texas.
 estimated fee $ 23 million.
 highmount reduce 2009 production volumes decreased drilling activity.
 price gas production affected by hedging activities differences market prices.
 increase natural gas production returns capital investment program.
 affected commodity prices capital operating costs.
highmount 2019s operating income revenues less expenses affected by revenue production expenses taxes depreciation depletion amortization expenses.
 expenses represent wells equipment.
 labor repairs maintenance materials supplies fuel.
 2008 labor costs increased to higher salary levels.
 implemented retention programs compensation.
 production expenses affected by fuel materials supplies.
 higher cost environment continued.
 price natural gas declined operating expenses high.
 low commodity prices high expenses until december 2008 expenses costs.
 production ad valorem taxes increase when gas affected by production property values.
 calculates depletion using units-of-production method production.
 depletion expense affected by capital spending future development costs reserve changes drilling programs performance commodity prices.
 production sales statistics related operations.
december 31 2008 2007
 gas production 78. 9 34.
 72. 31.
 oil 351. 114.
 3507. 1512.
 102. 43.
 95. 41.
 prices hedging
 gas mcf $ 8. 25 5. 95
 51. 26.
 95. 83. 37
 mcfe 8. 48


entergy arkansas.
 operating revenues fuel power expenses increased $ 114 million wholesale revenue average price energy resale affiliated customers $ 106. 1 million production cost allocation rider revenues july 2007.
 deferred fuel expense no effect net income.
 payments seven-month collections twelve-month.
 increase $ 58. 9 million fuel cost recovery revenues changes rider decreased usage.
.
 offset decrease $ 14. 6 million volume.
 fuel purchased power expenses increased increase $ 106. 1 million deferred system agreement payments average market price purchased power.
 revenue fuel expenses gas resale power expenses regulatory credits.
 analysis change net revenue 2007 to 2006.
.
 revenue.
 wholesale revenue.
 transmission revenue.
 deferred fuel costs revisions.
.
 2007 net revenue $ 1110.
 wholesale lower revenues third quarter 2006 order coal plant co-owner contract dispute re-pricing revisions 2003 $ 5. 9 million power agreements.
 transmission revenue higher rates new customers 2006.
 deferred fuel cost revisions 2006 energy cost recovery increased net revenue $ 6. million.
 $ 173. 1 million fuel cost recovery.
.
 offset production cost allocation revenues $ 124. 1 million july 2007.


relative percentages operating companies income loss segment.
 2016 2015 2014
 smokeable products 86. 2%. 2 % 87. 4%. 4 %. 2%. 2 %
 smokeless products 13. 1 12. 8 13. 4
 1. 8 7
 -1. 1. -2. 2. 3.
 100. 0%. 0 %. 0%. 0 %. 0%. 0 %
 income note 16.
 operating results.
 financial condition results annual report form 10-k.
 tobacco altria group. operating companies pm usa usstc subsidiaries.
 sales distribution consumer engagement services.
. smokeable tobacco products cigarettes machine made large cigars smokeless tobacco usstc innovative tobacco products e-vapor.
pm usa largest cigarette company cigarette shipment volume 122. 9 billion units 2016 decrease 2. 5%. 2015.
 marlboro principal largest-selling 40 years.
 sherman sells super-premium cigarettes.
 middleton manufacture machine-made large cigars pipe tobacco.
 sources cigars.
 shipment volume 1. 4 billion units 2016 increase 5. 9%. 2015.
 black & mild principal cigar brand.
 sources cigars sells cigars.
 smokeless tobacco leading producer marketer moist smokeless tobacco.
.
 manufactured sold.
 shipment volume 853. 5 million units 2016 increase 4. 9%. from 2015.
 tobacco mark e-vapor developed products.
 overseas.
-vapor.
 acquired e-vapor business green smoke.
affiliates smoke selling e-vapor 2009.
 note 3.
 financial statements item 8 3.
 december 2013 altria group. subsidiaries agreements philip morris international.
. exclusive license sell e-vapor products outside states. sell two heated tobacco platforms.
 july 2015.
 expansion strategic framework pmi joint research development technology-sharing agreement.
. develop e-vapor products states. outside.
 exclusive technology licenses technical information sharing cooperation scientific assessment regulatory engagement approval e-vapor products.
 fourth quarter 2016 pmi submitted modified risk tobacco product application electronically heated tobacco product united states food drug administration pre-market tobacco application first quarter 2017.
 fda.
. exclusive license sell tobacco product united.
raw materials altria group. subsidiaries sell wholesalers armed services.
 market tobacco competitive brand recognition loyalty quality taste price innovation marketing packaging distribution.
 promotional activities