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dd4ba9e18 | notes to the consolidated financial statements competitive environment and general economic and business conditions , among other factors .
pullmantur is a brand targeted primarily at the spanish , portu- guese and latin american markets and although pullmantur has diversified its passenger sourcing over the past few years , spain still represents pullmantur 2019s largest market .
as previously disclosed , during 2012 european economies continued to demonstrate insta- bility in light of heightened concerns over sovereign debt issues as well as the impact of proposed auster- ity measures on certain markets .
the spanish econ- omy was more severely impacted than many other economies and there is significant uncertainty as to when it will recover .
in addition , the impact of the costa concordia incident has had a more lingering effect than expected and the impact in future years is uncertain .
these factors were identified in the past as significant risks which could lead to the impairment of pullmantur 2019s goodwill .
more recently , the spanish economy has progressively worsened and forecasts suggest the challenging operating environment will continue for an extended period of time .
the unemployment rate in spain reached 26% ( 26 % ) during the fourth quarter of 2012 and is expected to rise further in 2013 .
the international monetary fund , which had projected gdp growth of 1.8% ( 1.8 % ) a year ago , revised its 2013 gdp projections downward for spain to a contraction of 1.3% ( 1.3 % ) during the fourth quarter of 2012 and further reduced it to a contraction of 1.5% ( 1.5 % ) in january of 2013 .
during the latter half of 2012 new austerity measures , such as increases to the value added tax , cuts to benefits , the phasing out of exemptions and the suspension of government bonuses , were implemented by the spanish government .
we believe these austerity measures are having a larger impact on consumer confidence and discretionary spending than previously anticipated .
as a result , there has been a significant deterioration in bookings from guests sourced from spain during the 2013 wave season .
the combination of all of these factors has caused us to negatively adjust our cash flow projections , especially our closer-in net yield assumptions and the expectations regarding future capacity growth for the brand .
based on our updated cash flow projections , we determined the implied fair value of goodwill for the pullmantur reporting unit was $ 145.5 million and rec- ognized an impairment charge of $ 319.2 million .
this impairment charge was recognized in earnings during the fourth quarter of 2012 and is reported within impairment of pullmantur related assets within our consolidated statements of comprehensive income ( loss ) .
there have been no goodwill impairment charges related to the pullmantur reporting unit in prior periods .
see note 13 .
fair value measurements and derivative instruments for further discussion .
if the spanish economy weakens further or recovers more slowly than contemplated or if the economies of other markets ( e.g .
france , brazil , latin america ) perform worse than contemplated in our discounted cash flow model , or if there are material changes to the projected future cash flows used in the impair- ment analyses , especially in net yields , an additional impairment charge of the pullmantur reporting unit 2019s goodwill may be required .
note 4 .
intangible assets intangible assets are reported in other assets in our consolidated balance sheets and consist of the follow- ing ( in thousands ) : .
| 2012 | 2011
-------------------------------------------------------------------------- | ---------------- | --------------
indefinite-life intangible asset 2014pullmantur trademarks and trade names | $ 218883 | $ 225679
impairment charge | -17356 ( 17356 ) | 2014
foreign currency translation adjustment | 3339 | -6796 ( 6796 )
total | $ 204866 | $ 218883
during the fourth quarter of 2012 , we performed the annual impairment review of our trademarks and trade names using a discounted cash flow model and the relief-from-royalty method .
the royalty rate used is based on comparable royalty agreements in the tourism and hospitality industry .
these trademarks and trade names relate to pullmantur and we have used a discount rate comparable to the rate used in valuing the pullmantur reporting unit in our goodwill impairment test .
as described in note 3 .
goodwill , the continued deterioration of the spanish economy caused us to negatively adjust our cash flow projections for the pullmantur reporting unit , especially our closer-in net yield assumptions and the timing of future capacity growth for the brand .
based on our updated cash flow projections , we determined that the fair value of pullmantur 2019s trademarks and trade names no longer exceeded their carrying value .
accordingly , we recog- nized an impairment charge of approximately $ 17.4 million to write down trademarks and trade names to their fair value of $ 204.9 million .
this impairment charge was recognized in earnings during the fourth quarter of 2012 and is reported within impairment of pullmantur related assets within our consolidated statements of comprehensive income ( loss ) .
see note 13 .
fair value measurements and derivative instruments for further discussion .
if the spanish economy weakens further or recovers more slowly than contemplated or if the economies of other markets ( e.g .
france , brazil , latin america ) 0494.indd 76 3/27/13 12:53 pm |
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dd4c5bc8a | abiomed , inc .
and subsidiaries notes to consolidated financial statements 2014 ( continued ) note 14 .
income taxes ( continued ) and transition and defines the criteria that must be met for the benefits of a tax position to be recognized .
as a result of its adoption of fin no .
48 , the company has recorded the cumulative effect of the change in accounting principle of $ 0.3 million as a decrease to opening retained earnings and an increase to other long-term liabilities as of april 1 , 2007 .
this adjustment relates to state nexus for failure to file tax returns in various states for the years ended march 31 , 2003 , 2004 , and 2005 .
the company has initiated a voluntary disclosure plan .
the company has elected to recognize interest and/or penalties related to income tax matters in income tax expense in its consolidated statements of operations .
as of april 1 , 2007 , accrued interest was not significant and was recorded as part of the $ 0.3 million adjustment to the opening balance of retained earnings .
as of march 31 , 2008 , no penalties have been accrued which is consistent with the company 2019s discussions with states in connection with the company 2019s voluntary disclosure plan .
on a quarterly basis , the company accrues for the effects of uncertain tax positions and the related potential penalties and interest .
the company has recorded a liability for unrecognized tax benefits in other liabilities including accrued interest , of $ 0.2 million at march 31 , 2008 .
it is reasonably possible that the amount of the unrecognized tax benefit with respect to certain of the unrecognized tax positions will increase or decrease during the next 12 months ; however , it is not expected that the change will have a significant effect on the company 2019s results of operations or financial position .
a reconciliation of the beginning and ending balance of unrecognized tax benefits , excluding accrued interest recorded at march 31 , 2008 ( in thousands ) is as follows: .
balance at april 1 2007 | $ 224
--------------------------------------------------------------------------------- | ----------
reductions for tax positions for closing of the applicable statute of limitations | -56 ( 56 )
balance at march 31 2008 | $ 168
the company and its subsidiaries are subject to u.s .
federal income tax , as well as income tax of multiple state and foreign jurisdictions .
the company has accumulated significant losses since its inception in 1981 .
all tax years remain subject to examination by major tax jurisdictions , including the federal government and the commonwealth of massachusetts .
however , since the company has net operating loss and tax credit carry forwards which may be utilized in future years to offset taxable income , those years may also be subject to review by relevant taxing authorities if the carry forwards are utilized .
note 15 .
commitments and contingencies the company 2019s acquisition of impella provides that abiomed may be required to make additional contingent payments to impella 2019s former shareholders as follows : 2022 upon fda approval of the impella 2.5 device , a payment of $ 5583333 , and 2022 upon fda approval of the impella 5.0 device , a payment of $ 5583333 if the average market price per share of abiomed 2019s common stock , as determined in accordance with the purchase agreement , as of the date of one of these milestones is achieved is $ 22 or more , no additional contingent consideration will be required with respect to that milestone .
if the average market price is between $ 18 and $ 22 on the date of the company 2019s achievement of a milestone , the relevant milestone payment will be reduced ratably .
these milestone payments may be made , at the company 2019s option , with cash or stock or by a combination of cash or stock , except that no more than an aggregate of approximately $ 9.4 million of these milestone payments may be made in the form of stock .
if any of these contingent payments are made , they will result in an increase in the carrying value of goodwill .
in june 2008 , the company received 510 ( k ) clearance of its impella 2.5 , triggering an obligation to pay $ 5.6 million of contingent payments related to the may 2005 acquisition of impella .
these contingent payments may be made , at the company 2019s option , with cash , or stock or by a combination of cash or stock under circumstances described in the purchase agreement related to the company 2019s impella acquisition , except that approximately $ 1.8 million of the remaining $ 11.2 million potential contingent payments must be made in cash .
it is the company 2019s intent to satisfy the impella 2.5 510 ( k ) clearance contingent payment through issuance of common shares of company stock. |
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dd4c13c64 | contributions and expected benefit payments the funding of our qualified defined benefit pension plans is determined in accordance with erisa , as amended by the ppa , and in a manner consistent with cas and internal revenue code rules .
there were no contributions to our legacy qualified defined benefit pension plans during 2016 .
we do not plan to make contributions to our legacy pension plans in 2017 because none are required using current assumptions including investment returns on plan assets .
we made $ 23 million in contributions during 2016 to our newly established sikorsky pension plan and expect to make $ 45 million in contributions to this plan during 2017 .
the following table presents estimated future benefit payments , which reflect expected future employee service , as of december 31 , 2016 ( in millions ) : .
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 2013 2026
---------------------------------------- | ------ | ------ | ------ | ------ | ------ | --------------
qualified defined benefit pension plans | $ 2260 | $ 2340 | $ 2420 | $ 2510 | $ 2590 | $ 13920
retiree medical and life insurance plans | 180 | 180 | 190 | 190 | 190 | 870
defined contribution plans we maintain a number of defined contribution plans , most with 401 ( k ) features , that cover substantially all of our employees .
under the provisions of our 401 ( k ) plans , we match most employees 2019 eligible contributions at rates specified in the plan documents .
our contributions were $ 617 million in 2016 , $ 393 million in 2015 and $ 385 million in 2014 , the majority of which were funded in our common stock .
our defined contribution plans held approximately 36.9 million and 40.0 million shares of our common stock as of december 31 , 2016 and 2015 .
note 12 2013 stockholders 2019 equity at december 31 , 2016 and 2015 , our authorized capital was composed of 1.5 billion shares of common stock and 50 million shares of series preferred stock .
of the 290 million shares of common stock issued and outstanding as of december 31 , 2016 , 289 million shares were considered outstanding for consolidated balance sheet presentation purposes ; the remaining shares were held in a separate trust .
of the 305 million shares of common stock issued and outstanding as of december 31 , 2015 , 303 million shares were considered outstanding for consolidated balance sheet presentation purposes ; the remaining shares were held in a separate trust .
no shares of preferred stock were issued and outstanding at december 31 , 2016 or 2015 .
repurchases of common stock during 2016 , we repurchased 8.9 million shares of our common stock for $ 2.1 billion .
during 2015 and 2014 , we paid $ 3.1 billion and $ 1.9 billion to repurchase 15.2 million and 11.5 million shares of our common stock .
on september 22 , 2016 , our board of directors approved a $ 2.0 billion increase to our share repurchase program .
inclusive of this increase , the total remaining authorization for future common share repurchases under our program was $ 3.5 billion as of december 31 , 2016 .
as we repurchase our common shares , we reduce common stock for the $ 1 of par value of the shares repurchased , with the excess purchase price over par value recorded as a reduction of additional paid-in capital .
due to the volume of repurchases made under our share repurchase program , additional paid-in capital was reduced to zero , with the remainder of the excess purchase price over par value of $ 1.7 billion and $ 2.4 billion recorded as a reduction of retained earnings in 2016 and 2015 .
we paid dividends totaling $ 2.0 billion ( $ 6.77 per share ) in 2016 , $ 1.9 billion ( $ 6.15 per share ) in 2015 and $ 1.8 billion ( $ 5.49 per share ) in 2014 .
we have increased our quarterly dividend rate in each of the last three years , including a 10% ( 10 % ) increase in the quarterly dividend rate in the fourth quarter of 2016 .
we declared quarterly dividends of $ 1.65 per share during each of the first three quarters of 2016 and $ 1.82 per share during the fourth quarter of 2016 ; $ 1.50 per share during each of the first three quarters of 2015 and $ 1.65 per share during the fourth quarter of 2015 ; and $ 1.33 per share during each of the first three quarters of 2014 and $ 1.50 per share during the fourth quarter of 2014. |
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dd4bd519e | entergy mississippi , inc .
management's financial discussion and analysis the net wholesale revenue variance is primarily due to lower profit on joint account sales and reduced capacity revenue from the municipal energy agency of mississippi .
gross operating revenues , fuel and purchased power expenses , and other regulatory charges gross operating revenues increased primarily due to an increase of $ 152.5 million in fuel cost recovery revenues due to higher fuel rates , partially offset by a decrease of $ 43 million in gross wholesale revenues due to a decrease in net generation and purchases in excess of decreased net area demand resulting in less energy available for resale sales coupled with a decrease in system agreement remedy receipts .
fuel and purchased power expenses increased primarily due to increases in the average market prices of natural gas and purchased power , partially offset by decreased demand and decreased recovery from customers of deferred fuel costs .
other regulatory charges increased primarily due to increased recovery through the grand gulf rider of grand gulf capacity costs due to higher rates and increased recovery of costs associated with the power management recovery rider .
there is no material effect on net income due to quarterly adjustments to the power management recovery rider .
2007 compared to 2006 net revenue consists of operating revenues net of : 1 ) fuel , fuel-related expenses , and gas purchased for resale , 2 ) purchased power expenses , and 3 ) other regulatory charges ( credits ) .
following is an analysis of the change in net revenue comparing 2007 to 2006 .
amount ( in millions ) .
| amount ( in millions )
------------------------- | ----------------------
2006 net revenue | $ 466.1
base revenue | 7.9
volume/weather | 4.5
transmission revenue | 4.1
transmission equalization | 4.0
reserve equalization | 3.8
attala costs | -10.2 ( 10.2 )
other | 6.7
2007 net revenue | $ 486.9
the base revenue variance is primarily due to a formula rate plan increase effective july 2007 .
the formula rate plan filing is discussed further in "state and local rate regulation" below .
the volume/weather variance is primarily due to increased electricity usage primarily in the residential and commercial sectors , including the effect of more favorable weather on billed electric sales in 2007 compared to 2006 .
billed electricity usage increased 214 gwh .
the increase in usage was partially offset by decreased usage in the industrial sector .
the transmission revenue variance is due to higher rates and the addition of new transmission customers in late 2006 .
the transmission equalization variance is primarily due to a revision made in 2006 of transmission equalization receipts among entergy companies .
the reserve equalization variance is primarily due to a revision in 2006 of reserve equalization payments among entergy companies due to a ferc ruling regarding the inclusion of interruptible loads in reserve |
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dd4bf04da | table of contents ( 4 ) the increase in cash flows was primarily due to the timing of inventory purchases and longer payment terms with certain vendors .
in order to manage our working capital and operating cash needs , we monitor our cash conversion cycle , defined as days of sales outstanding in accounts receivable plus days of supply in inventory minus days of purchases outstanding in accounts payable , based on a rolling three-month average .
components of our cash conversion cycle are as follows: .
( in days ) | december 31 , 2017 | december 31 , 2016 | december 31 , 2015
------------------------------------------- | ------------------ | ------------------ | ------------------
days of sales outstanding ( dso ) ( 1 ) | 52 | 51 | 48
days of supply in inventory ( dio ) ( 2 ) | 12 | 12 | 13
days of purchases outstanding ( dpo ) ( 3 ) | -45 ( 45 ) | -44 ( 44 ) | -40 ( 40 )
cash conversion cycle | 19 | 19 | 21
( 1 ) represents the rolling three-month average of the balance of accounts receivable , net at the end of the period , divided by average daily net sales for the same three-month period .
also incorporates components of other miscellaneous receivables .
( 2 ) represents the rolling three-month average of the balance of merchandise inventory at the end of the period divided by average daily cost of sales for the same three-month period .
( 3 ) represents the rolling three-month average of the combined balance of accounts payable-trade , excluding cash overdrafts , and accounts payable-inventory financing at the end of the period divided by average daily cost of sales for the same three-month period .
the cash conversion cycle was 19 days at december 31 , 2017 and 2016 .
the increase in dso was primarily driven by higher net sales and related accounts receivable for third-party services such as saas , software assurance and warranties .
these services have an unfavorable impact on dso as the receivable is recognized on the consolidated balance sheet on a gross basis while the corresponding sales amount in the consolidated statement of operations is recorded on a net basis .
this also results in a favorable impact on dpo as the payable is recognized on the consolidated balance sheet without a corresponding cost of sales in the statement of operations because the cost paid to the vendor or third-party service provider is recorded as a reduction to net sales .
in addition , dpo also increased due to the mix of payables with certain vendors that have longer payment terms .
the cash conversion cycle was 19 and 21 days at december 31 , 2016 and 2015 , respectively .
the increase in dso was primarily driven by higher net sales and related accounts receivable for third-party services such as saas , software assurance and warranties .
these services have an unfavorable impact on dso as the receivable is recognized on the balance sheet on a gross basis while the corresponding sales amount in the statement of operations is recorded on a net basis .
these services have a favorable impact on dpo as the payable is recognized on the balance sheet without a corresponding cost of sale in the statement of operations because the cost paid to the vendor or third-party service provider is recorded as a reduction to net sales .
in addition to the impact of these services on dpo , dpo also increased due to the mix of payables with certain vendors that have longer payment terms .
investing activities net cash used in investing activities increased $ 15 million in 2017 compared to 2016 .
capital expenditures increased $ 17 million to $ 81 million from $ 64 million for 2017 and 2016 , respectively , primarily related to improvements to our information technology systems .
net cash used in investing activities decreased $ 289 million in 2016 compared to 2015 .
the decrease in cash used was primarily due to the completion of the acquisition of cdw uk in 2015 .
additionally , capital expenditures decreased $ 26 million to $ 64 million from $ 90 million for 2016 and 2015 , respectively , primarily due to spending for our new office location in 2015 .
financing activities net cash used in financing activities increased $ 514 million in 2017 compared to 2016 .
the increase was primarily driven by changes in accounts payable-inventory financing , which resulted in an increase in cash used for financing activities of $ 228 million and by share repurchases during 2017 , which resulted in an increase in cash used for financing activities of $ 167 million .
for more information on our share repurchase program , see part ii , item 5 , 201cmarket for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities . 201d the increase in cash used for accounts payable-inventory financing was primarily driven by the termination of one of our inventory financing agreements in the fourth quarter of 2016 , with amounts |
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dd4badcd4 | table of contents ( e ) other adjustments primarily include certain historical retention costs , unusual , non-recurring litigation matters , secondary-offering-related expenses and expenses related to the consolidation of office locations north of chicago .
during the year ended december 31 , 2013 , we recorded ipo- and secondary-offering related expenses of $ 75.0 million .
for additional information on the ipo- and secondary-offering related expenses , see note 10 ( stockholder 2019s equity ) to the accompanying consolidated financial statements .
( f ) includes the impact of consolidating five months for the year ended december 31 , 2015 of kelway 2019s financial results .
( 4 ) non-gaap net income excludes , among other things , charges related to the amortization of acquisition-related intangible assets , non-cash equity-based compensation , acquisition and integration expenses , and gains and losses from the extinguishment of long-term debt .
non-gaap net income is considered a non-gaap financial measure .
generally , a non-gaap financial measure is a numerical measure of a company 2019s performance , financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with gaap .
non-gaap measures used by us may differ from similar measures used by other companies , even when similar terms are used to identify such measures .
we believe that non-gaap net income provides meaningful information regarding our operating performance and cash flows including our ability to meet our future debt service , capital expenditures and working capital requirements .
the following unaudited table sets forth a reconciliation of net income to non-gaap net income for the periods presented: .
( in millions ) | years ended december 31 , 2015 | years ended december 31 , 2014 | years ended december 31 , 2013 | years ended december 31 , 2012 | years ended december 31 , 2011
--------------------------------------------------------------------- | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------ | ------------------------------
net income | $ 403.1 | $ 244.9 | $ 132.8 | $ 119.0 | $ 17.1
amortization of intangibles ( a ) | 173.9 | 161.2 | 161.2 | 163.7 | 165.7
non-cash equity-based compensation | 31.2 | 16.4 | 8.6 | 22.1 | 19.5
non-cash equity-based compensation related to equity investment ( b ) | 20.0 | 2014 | 2014 | 2014 | 2014
net loss on extinguishments of long-term debt | 24.3 | 90.7 | 64.0 | 17.2 | 118.9
acquisition and integration expenses ( c ) | 10.2 | 2014 | 2014 | 2014 | 2014
gain on remeasurement of equity investment ( d ) | -98.1 ( 98.1 ) | 2014 | 2014 | 2014 | 2014
other adjustments ( e ) | 3.7 | -0.3 ( 0.3 ) | 61.2 | -3.3 ( 3.3 ) | -15.6 ( 15.6 )
aggregate adjustment for income taxes ( f ) | -64.8 ( 64.8 ) | -103.0 ( 103.0 ) | -113.5 ( 113.5 ) | -71.6 ( 71.6 ) | -106.8 ( 106.8 )
non-gaap net income ( g ) | $ 503.5 | $ 409.9 | $ 314.3 | $ 247.1 | $ 198.8
acquisition and integration expenses ( c ) 10.2 2014 2014 2014 2014 gain on remeasurement of equity investment ( d ) ( 98.1 ) 2014 2014 2014 2014 other adjustments ( e ) 3.7 ( 0.3 ) 61.2 ( 3.3 ) ( 15.6 ) aggregate adjustment for income taxes ( f ) ( 64.8 ) ( 103.0 ) ( 113.5 ) ( 71.6 ) ( 106.8 ) non-gaap net income ( g ) $ 503.5 $ 409.9 $ 314.3 $ 247.1 $ 198.8 ( a ) includes amortization expense for acquisition-related intangible assets , primarily customer relationships , customer contracts and trade names .
( b ) represents our 35% ( 35 % ) share of an expense related to certain equity awards granted by one of the sellers to kelway coworkers in july 2015 prior to our acquisition of kelway .
( c ) primarily includes expenses related to the acquisition of kelway .
( d ) represents the gain resulting from the remeasurement of our previously held 35% ( 35 % ) equity investment to fair value upon the completion of the acquisition of kelway .
( e ) primarily includes expenses related to the consolidation of office locations north of chicago and secondary- offering-related expenses .
amount in 2013 primarily relates to ipo- and secondary-offering related expenses .
( f ) based on a normalized effective tax rate of 38.0% ( 38.0 % ) ( 39.0% ( 39.0 % ) prior to the kelway acquisition ) , except for the non- cash equity-based compensation from our equity investment and the gain resulting from the remeasurement of our previously held 35% ( 35 % ) equity investment to fair value upon the completion of the acquisition of kelway , which were tax effected at a rate of 35.4% ( 35.4 % ) .
the aggregate adjustment for income taxes also includes a $ 4.0 million deferred tax benefit recorded during the three months and year ended december 31 , 2015 as a result of a tax rate reduction in the united kingdom and additional tax expense during the year ended december 31 , 2015 of $ 3.3 million as a result of recording withholding tax on the unremitted earnings of our canadian subsidiary .
additionally , note that certain acquisition costs are non-deductible. |
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dd4bc09b0 | management 2019s discussion and analysis of financial condition and results of operations 2013 ( continued ) ( amounts in millions , except per share amounts ) liquidity and capital resources cash flow overview the following tables summarize key financial data relating to our liquidity , capital resources and uses of capital. .
cash flow data | years ended december 31 , 2018 | years ended december 31 , 2017 | years ended december 31 , 2016
------------------------------------------------------------------------------ | ------------------------------ | ------------------------------ | ------------------------------
net income adjusted to reconcile to net cash provided by operating activities1 | $ 1013.0 | $ 852.1 | $ 1018.6
net cash ( used in ) provided by working capital2 | -431.1 ( 431.1 ) | 5.3 | -410.3 ( 410.3 )
changes in other non-current assets and liabilities | -16.8 ( 16.8 ) | 24.4 | -95.5 ( 95.5 )
net cash provided by operating activities | $ 565.1 | $ 881.8 | $ 512.8
net cash used in investing activities | -2491.5 ( 2491.5 ) | -196.2 ( 196.2 ) | -263.9 ( 263.9 )
net cash provided by ( used in ) financing activities | 1853.2 | -1004.9 ( 1004.9 ) | -666.4 ( 666.4 )
1 reflects net income adjusted primarily for depreciation and amortization of fixed assets and intangible assets , amortization of restricted stock and other non-cash compensation , net losses on sales of businesses and deferred income taxes .
2 reflects changes in accounts receivable , accounts receivable billable to clients , other current assets , accounts payable and accrued liabilities .
operating activities due to the seasonality of our business , we typically use cash from working capital in the first nine months of a year , with the largest impact in the first quarter , and generate cash from working capital in the fourth quarter , driven by the seasonally strong media spending by our clients .
quarterly and annual working capital results are impacted by the fluctuating annual media spending budgets of our clients as well as their changing media spending patterns throughout each year across various countries .
the timing of media buying on behalf of our clients across various countries affects our working capital and operating cash flow and can be volatile .
in most of our businesses , our agencies enter into commitments to pay production and media costs on behalf of clients .
to the extent possible , we pay production and media charges after we have received funds from our clients .
the amounts involved , which substantially exceed our revenues , primarily affect the level of accounts receivable , accounts payable , accrued liabilities and contract liabilities .
our assets include both cash received and accounts receivable from clients for these pass-through arrangements , while our liabilities include amounts owed on behalf of clients to media and production suppliers .
our accrued liabilities are also affected by the timing of certain other payments .
for example , while annual cash incentive awards are accrued throughout the year , they are generally paid during the first quarter of the subsequent year .
net cash provided by operating activities during 2018 was $ 565.1 , which was a decrease of $ 316.7 as compared to 2017 , primarily as a result of an increase in working capital usage of $ 436.4 .
working capital in 2018 was impacted by the spending levels of our clients as compared to 2017 .
the working capital usage in both periods was primarily attributable to our media businesses .
net cash provided by operating activities during 2017 was $ 881.8 , which was an increase of $ 369.0 as compared to 2016 , primarily as a result of an improvement in working capital usage of $ 415.6 .
working capital in 2017 benefited from the spending patterns of our clients compared to 2016 .
investing activities net cash used in investing activities during 2018 consisted of payments for acquisitions of $ 2309.8 , related mostly to the acxiom acquisition , and payments for capital expenditures of $ 177.1 , related mostly to leasehold improvements and computer hardware and software. |
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dd4c51ee2 | the company had capital loss carryforwards for federal income tax purposes of $ 3844 and $ 4357 at december 31 , 2013 and 2012 , respectively .
the company has recognized a full valuation allowance for the capital loss carryforwards because the company does not believe these losses are more likely than not to be recovered .
the company files income tax returns in the united states federal jurisdiction and various state and foreign jurisdictions .
with few exceptions , the company is no longer subject to u.s .
federal , state or local or non-u.s income tax examinations by tax authorities for years before 2007 .
the company has state income tax examinations in progress and does not expect material adjustments to result .
the patient protection and affordable care act ( the 201cppaca 201d ) became law on march 23 , 2010 , and the health care and education reconciliation act of 2010 became law on march 30 , 2010 , which makes various amendments to certain aspects of the ppaca ( together , the 201cacts 201d ) .
the ppaca effectively changes the tax treatment of federal subsidies paid to sponsors of retiree health benefit plans that provide a benefit that is at least actuarially equivalent to the benefits under medicare part d .
the acts effectively make the subsidy payments taxable in tax years beginning after december 31 , 2012 and as a result , the company followed its original accounting for the underfunded status of the other postretirement benefits for the medicare part d adjustment and recorded a reduction in deferred tax assets and an increase in its regulatory assets amounting to $ 6241 and $ 6432 at december 31 , 2013 and 2012 , respectively .
the following table summarizes the changes in the company 2019s gross liability , excluding interest and penalties , for unrecognized tax benefits: .
balance at january 1 2012 | $ 158578
------------------------------------------------------ | ----------------
increases in current period tax positions | 40620
decreases in prior period measurement of tax positions | -18205 ( 18205 )
balance at december 31 2012 | $ 180993
increases in current period tax positions | 27229
decreases in prior period measurement of tax positions | -30275 ( 30275 )
balance at december 31 2013 | $ 177947
during the second quarter of 2013 , the company adopted updated income tax guidance , and as a result , reclassified as of december 31 , 2012 $ 74360 of unrecognized tax benefit from other long-term liabilities to deferred income taxes to conform to the current presentation in the accompanying consolidated balance sheets .
the total balance in the table above does not include interest and penalties of $ 242 and $ 260 as of december 31 , 2013 and 2012 , respectively , which is recorded as a component of income tax expense .
the majority of the increased tax position is attributable to temporary differences .
the increase in 2013 current period tax positions related primarily to the company 2019s change in tax accounting method filed in 2008 for repair and maintenance costs on its utility assets .
the company does not anticipate material changes to its unrecognized tax benefits within the next year .
if the company sustains all of its positions at december 31 , 2013 and 2012 , an unrecognized tax benefit of $ 7439 and $ 7532 , respectively , excluding interest and penalties , would impact the company 2019s effective tax rate. |
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dd4c33d0c | mastercard incorporated notes to consolidated financial statements 2014continued in september 2010 , the company 2019s board of directors authorized a plan for the company to repurchase up to $ 1 billion of its class a common stock in open market transactions .
the company did not repurchase any shares under this plan during 2010 .
as of february 16 , 2011 , the company had completed the repurchase of approximately 0.3 million shares of its class a common stock at a cost of approximately $ 75 million .
note 18 .
share based payment and other benefits in may 2006 , the company implemented the mastercard incorporated 2006 long-term incentive plan , which was amended and restated as of october 13 , 2008 ( the 201cltip 201d ) .
the ltip is a shareholder-approved omnibus plan that permits the grant of various types of equity awards to employees .
the company has granted restricted stock units ( 201crsus 201d ) , non-qualified stock options ( 201coptions 201d ) and performance stock units ( 201cpsus 201d ) under the ltip .
the rsus generally vest after three to four years .
the options , which expire ten years from the date of grant , generally vest ratably over four years from the date of grant .
the psus generally vest after three years .
additionally , the company made a one-time grant to all non-executive management employees upon the ipo for a total of approximately 440 thousand rsus ( the 201cfounders 2019 grant 201d ) .
the founders 2019 grant rsus vested three years from the date of grant .
the company uses the straight-line method of attribution for expensing equity awards .
compensation expense is recorded net of estimated forfeitures .
estimates are adjusted as appropriate .
upon termination of employment , excluding retirement , all of a participant 2019s unvested awards are forfeited .
however , when a participant terminates employment due to retirement , the participant generally retains all of their awards without providing additional service to the company .
eligible retirement is dependent upon age and years of service , as follows : age 55 with ten years of service , age 60 with five years of service and age 65 with two years of service .
compensation expense is recognized over the shorter of the vesting periods stated in the ltip , or the date the individual becomes eligible to retire .
there are 11550000 shares of class a common stock reserved for equity awards under the ltip .
although the ltip permits the issuance of shares of class b common stock , no such shares have been reserved for issuance .
shares issued as a result of option exercises and the conversions of rsus and psus are expected to be funded primarily with the issuance of new shares of class a common stock .
stock options the fair value of each option is estimated on the date of grant using a black-scholes option pricing model .
the following table presents the weighted-average assumptions used in the valuation and the resulting weighted- average fair value per option granted for the years ended december 31: .
| 2010 | 2009 | 2008
---------------------------------------------- | ---------------- | ---------------- | ----------------
risk-free rate of return | 2.7% ( 2.7 % ) | 2.5% ( 2.5 % ) | 3.2% ( 3.2 % )
expected term ( in years ) | 6.25 | 6.17 | 6.25
expected volatility | 32.7% ( 32.7 % ) | 41.7% ( 41.7 % ) | 37.9% ( 37.9 % )
expected dividend yield | 0.3% ( 0.3 % ) | 0.4% ( 0.4 % ) | 0.3% ( 0.3 % )
weighted-average fair value per option granted | $ 84.62 | $ 71.03 | $ 78.54
the risk-free rate of return was based on the u.s .
treasury yield curve in effect on the date of grant .
the company utilizes the simplified method for calculating the expected term of the option based on the vesting terms and the contractual life of the option .
the expected volatility for options granted during 2010 and 2009 was based on the average of the implied volatility of mastercard and a blend of the historical volatility of mastercard and the historical volatility of a group of companies that management believes is generally comparable to |
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dd4baa084 | likely than not that some portion or all of the deferred tax assets will not be realized .
the accruals for deferred tax assets and liabilities are subject to a significant amount of judgment by management and are reviewed and adjusted routinely based on changes in facts and circumstances .
material changes in these accruals may occur in the future , based on the progress of ongoing tax audits , changes in legislation and resolution of pending tax matters .
forward-looking estimates we are providing our 2011 forward-looking estimates in this section .
these estimates were based on our examination of historical operating trends , the information used to prepare our december 31 , 2010 , reserve reports and other data in our possession or available from third parties .
the forward-looking estimates in this report were prepared assuming demand , curtailment , producibility and general market conditions for our oil , gas and ngls during 2011 will be similar to 2010 , unless otherwise noted .
we make reference to the 201cdisclosure regarding forward-looking statements 201d at the beginning of this report .
amounts related to our canadian operations have been converted to u.s .
dollars using an estimated average 2011 exchange rate of $ 0.95 dollar to $ 1.00 canadian dollar .
during 2011 , our operations are substantially comprised of our ongoing north america onshore operations .
we also have international operations in brazil and angola that we are divesting .
we have entered into agreements to sell our assets in brazil for $ 3.2 billion and our assets in angola for $ 70 million , plus contingent consideration .
as a result of these divestitures , all revenues , expenses and capital related to our international operations are reported as discontinued operations in our financial statements .
additionally , all forward-looking estimates in this document exclude amounts related to our international operations , unless otherwise noted .
north america onshore operating items the following 2011 estimates relate only to our north america onshore assets .
oil , gas and ngl production set forth below are our estimates of oil , gas and ngl production for 2011 .
we estimate that our combined oil , gas and ngl production will total approximately 236 to 240 mmboe .
( mmbbls ) ( mmbbls ) ( mmboe ) .
| oil ( mmbbls ) | gas ( bcf ) | ngls ( mmbbls ) | total ( mmboe )
--------------------- | -------------- | ----------- | --------------- | ---------------
u.s . onshore | 17 | 736 | 34 | 174
canada | 28 | 199 | 3 | 64
north america onshore | 45 | 935 | 37 | 238
oil and gas prices we expect our 2011 average prices for the oil and gas production from each of our operating areas to differ from the nymex price as set forth in the following table .
the expected ranges for prices are exclusive of the anticipated effects of the financial contracts presented in the 201ccommodity price risk management 201d section below .
the nymex price for oil is determined using the monthly average of settled prices on each trading day for benchmark west texas intermediate crude oil delivered at cushing , oklahoma .
the nymex price for gas is determined using the first-of-month south louisiana henry hub price index as published monthly in inside |
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dd4c3143a | notes to consolidated financial statements 2014 ( continued ) ucs .
as of may 31 , 2009 , $ 55.0 million of the purchase price was held in escrow ( the 201cescrow account 201d ) .
prior to our acquisition of ucs , the former parent company of ucs pledged the company 2019s stock as collateral for a third party loan ( 201cthe loan 201d ) that matures on september 24 , 2009 .
upon repayment of this loan , the stock will be released to us and $ 35.0 million of the purchase price will be released to the seller .
the remaining $ 20.0 million will remain in escrow until january 1 , 2013 , to satisfy any liabilities discovered post-closing that existed at the purchase date .
the purpose of this acquisition was to establish an acquiring presence in the russian market and a foundation for other direct acquiring opportunities in central and eastern europe .
the purchase price was determined by analyzing the historical and prospective financial statements and applying relevant purchase price multiples .
this business acquisition was not significant to our consolidated financial statements and accordingly , we have not provided pro forma information relating to this acquisition .
upon acquisition of ucs global payments assumed an indirect guarantee of the loan .
in the event of a default by the third-party debtor , we would be required to transfer all of the shares of ucs to the trustee or pay the amount outstanding under the loan .
at may 31 , 2009 the maximum potential amount of future payments under the guarantee was $ 44.1 million which represents the total outstanding under the loan , consisting of $ 21.8 million due and paid on june 24 , 2009 and $ 22.3 million due on september 24 , 2009 .
should the third-party debtor default on the final payment , global payments would pay the total amount outstanding and seek to be reimbursed for any payments made from the $ 55 million held in the escrow account .
we did not record an obligation for this guarantee because we determined that the fair value of the guarantee is de minimis .
the following table summarizes the preliminary purchase price allocation ( in thousands ) : .
total current assets | $ 10657
----------------------------------------------------- | ----------------
goodwill | 35431
customer-related intangible assets | 16500
trademark | 3100
property and equipment | 19132
other long-term assets | 13101
total assets acquired | 97921
current liabilities | -7245 ( 7245 )
notes payable | -8227 ( 8227 )
deferred income taxes and other long-term liabilities | -7449 ( 7449 )
total liabilities assumed | -22921 ( 22921 )
net assets acquired | $ 75000
all of the goodwill associated with the acquisition is non-deductible for tax purposes .
the customer-related intangible assets have amortization periods of 9 to 15 years .
the trademark has an amortization period of 10 years .
global payments asia-pacific philippines incorporated on september 4 , 2008 , global payments asia-pacific , limited ( 201cgpap 201d ) , the entity through which we conduct our merchant acquiring business in the asia-pacific region , indirectly acquired global payments asia- pacific philippines incorporated ( 201cgpap philippines 201d ) , a newly formed company into which hsbc asia pacific contributed its merchant acquiring business in the philippines .
we own 56% ( 56 % ) of gpap and hsbc asia pacific |
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dd4be643a | shareowner return performance graph the following performance graph and related information shall not be deemed 201csoliciting material 201d or to be 201cfiled 201d with the sec , nor shall such information be incorporated by reference into any future filing under the securities act of 1933 or securities exchange act of 1934 , each as amended , except to the extent that the company specifically incorporates such information by reference into such filing .
the following graph shows a five-year comparison of cumulative total shareowners 2019 returns for our class b common stock , the standard & poor 2019s 500 index and the dow jones transportation average .
the comparison of the total cumulative return on investment , which is the change in the quarterly stock price plus reinvested dividends for each of the quarterly periods , assumes that $ 100 was invested on december 31 , 2012 in the standard & poor 2019s 500 index , the dow jones transportation average and our class b common stock. .
| 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | 12/31/2017
-------------------------------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
united parcel service inc . | $ 100.00 | $ 146.54 | $ 159.23 | $ 148.89 | $ 182.70 | $ 195.75
standard & poor 2019s 500 index | $ 100.00 | $ 132.38 | $ 150.49 | $ 152.55 | $ 170.79 | $ 208.06
dow jones transportation average | $ 100.00 | $ 141.38 | $ 176.83 | $ 147.19 | $ 179.37 | $ 213.49 |
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dd4b95602 | sources of blackrock 2019s operating cash primarily include investment advisory , administration fees and securities lending revenue , performance fees , revenue from blackrock solutions and advisory products and services , other revenue and distribution fees .
blackrock uses its cash to pay all operating expense , interest and principal on borrowings , income taxes , dividends on blackrock 2019s capital stock , repurchases of the company 2019s stock , capital expenditures and purchases of co-investments and seed investments .
for details of the company 2019s gaap cash flows from operating , investing and financing activities , see the consolidated statements of cash flows contained in part ii , item 8 of this filing .
cash flows from operating activities , excluding the impact of consolidated sponsored investment funds , primarily include the receipt of investment advisory and administration fees , securities lending revenue and performance fees offset by the payment of operating expenses incurred in the normal course of business , including year-end incentive compensation accrued for in the prior year .
cash outflows from investing activities , excluding the impact of consolidated sponsored investment funds , for 2016 were $ 58 million and primarily reflected $ 384 million of investment purchases , $ 119 million of purchases of property and equipment and $ 30 million related to an acquisition , partially offset by $ 441 million of net proceeds from sales and maturities of certain investments .
cash outflows from financing activities , excluding the impact of consolidated sponsored investment funds , for 2016 were $ 2831 million , primarily resulting from $ 1.4 billion of share repurchases , including $ 1.1 billion in open market- transactions and $ 274 million of employee tax withholdings related to employee stock transactions and $ 1.5 billion of cash dividend payments , partially offset by $ 82 million of excess tax benefits from vested stock-based compensation awards .
the company manages its financial condition and funding to maintain appropriate liquidity for the business .
liquidity resources at december 31 , 2016 and 2015 were as follows : ( in millions ) december 31 , december 31 , cash and cash equivalents ( 1 ) $ 6091 $ 6083 cash and cash equivalents held by consolidated vres ( 2 ) ( 53 ) ( 100 ) .
( in millions ) | december 31 2016 | december 31 2015
--------------------------------------------------------- | ---------------- | ----------------
cash and cash equivalents ( 1 ) | $ 6091 | $ 6083
cash and cash equivalents held by consolidated vres ( 2 ) | -53 ( 53 ) | -100 ( 100 )
subtotal | 6038 | 5983
credit facility 2014 undrawn | 4000 | 4000
total liquidity resources ( 3 ) | $ 10038 | $ 9983
total liquidity resources ( 3 ) $ 10038 $ 9983 ( 1 ) the percentage of cash and cash equivalents held by the company 2019s u.s .
subsidiaries was approximately 50% ( 50 % ) at both december 31 , 2016 and 2015 .
see net capital requirements herein for more information on net capital requirements in certain regulated subsidiaries .
( 2 ) the company cannot readily access such cash to use in its operating activities .
( 3 ) amounts do not reflect year-end incentive compensation accruals of approximately $ 1.3 billion and $ 1.5 billion for 2016 and 2015 , respectively , which were paid in the first quarter of the following year .
total liquidity resources increased $ 55 million during 2016 , primarily reflecting cash flows from operating activities , partially offset by cash payments of 2015 year-end incentive awards , share repurchases of $ 1.4 billion and cash dividend payments of $ 1.5 billion .
a significant portion of the company 2019s $ 2414 million of total investments , as adjusted , is illiquid in nature and , as such , cannot be readily convertible to cash .
share repurchases .
the company repurchased 3.3 million common shares in open market-transactions under its share repurchase program for $ 1.1 billion during 2016 .
at december 31 , 2016 , there were 3 million shares still authorized to be repurchased .
in january 2017 , the board of directors approved an increase in the shares that may be repurchased under the company 2019s existing share repurchase program to allow for the repurchase of an additional 6 million shares for a total up to 9 million shares of blackrock common stock .
net capital requirements .
the company is required to maintain net capital in certain regulated subsidiaries within a number of jurisdictions , which is partially maintained by retaining cash and cash equivalent investments in those subsidiaries or jurisdictions .
as a result , such subsidiaries of the company may be restricted in their ability to transfer cash between different jurisdictions and to their parents .
additionally , transfers of cash between international jurisdictions , including repatriation to the united states , may have adverse tax consequences that could discourage such transfers .
blackrock institutional trust company , n.a .
( 201cbtc 201d ) is chartered as a national bank that does not accept client deposits and whose powers are limited to trust and other fiduciary activities .
btc provides investment management services , including investment advisory and securities lending agency services , to institutional investors and other clients .
btc is subject to regulatory capital and liquid asset requirements administered by the office of the comptroller of the currency .
at december 31 , 2016 and 2015 , the company was required to maintain approximately $ 1.4 billion and $ 1.1 billion , respectively , in net capital in certain regulated subsidiaries , including btc , entities regulated by the financial conduct authority and prudential regulation authority in the united kingdom , and the company 2019s broker-dealers .
the company was in compliance with all applicable regulatory net capital requirements .
undistributed earnings of foreign subsidiaries .
as of december 31 , 2016 , the company has not provided for u.s .
federal and state income taxes on approximately $ 5.3 billion of undistributed earnings of its foreign subsidiaries .
such earnings are considered indefinitely reinvested outside the united states .
the company 2019s current plans do not demonstrate a need to repatriate these funds .
short-term borrowings 2016 revolving credit facility .
the company 2019s credit facility has an aggregate commitment amount of $ 4.0 billion and was amended in april 2016 to extend the maturity date to march 2021 ( the 201c2016 credit facility 201d ) .
the 2016 credit facility permits the company to request up to an additional $ 1.0 billion of borrowing capacity , subject to lender credit approval , increasing the overall size of the 2016 credit facility to an aggregate principal amount not to exceed $ 5.0 billion .
interest on borrowings outstanding accrues at a rate based on the applicable london interbank offered rate plus a spread .
the 2016 credit facility requires the company not to exceed a maximum leverage ratio ( ratio of net debt to |
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dd4bf094e | entergy texas , inc .
and subsidiaries management 2019s financial discussion and analysis results of operations net income 2017 compared to 2016 net income decreased $ 31.4 million primarily due to lower net revenue , higher depreciation and amortization expenses , higher other operation and maintenance expenses , and higher taxes other than income taxes .
2016 compared to 2015 net income increased $ 37.9 million primarily due to lower other operation and maintenance expenses , the asset write-off of its receivable associated with the spindletop gas storage facility in 2015 , and higher net revenue .
net revenue 2017 compared to 2016 net revenue consists of operating revenues net of : 1 ) fuel , fuel-related expenses , and gas purchased for resale , 2 ) purchased power expenses , and 3 ) other regulatory charges .
following is an analysis of the change in net revenue comparing 2017 to 2016 .
amount ( in millions ) .
| amount ( in millions )
------------------------ | ----------------------
2016 net revenue | $ 644.2
net wholesale revenue | -35.1 ( 35.1 )
purchased power capacity | -5.9 ( 5.9 )
transmission revenue | -5.4 ( 5.4 )
reserve equalization | 5.6
retail electric price | 19.0
other | 4.4
2017 net revenue | $ 626.8
the net wholesale revenue variance is primarily due to lower net capacity revenues resulting from the termination of the purchased power agreements between entergy louisiana and entergy texas in august 2016 .
the purchased power capacity variance is primarily due to increased expenses due to capacity cost changes for ongoing purchased power capacity contracts .
the transmission revenue variance is primarily due to a decrease in the amount of transmission revenues allocated by miso .
the reserve equalization variance is due to the absence of reserve equalization expenses in 2017 as a result of entergy texas 2019s exit from the system agreement in august 2016 .
see note 2 to the financial statements for a discussion of the system agreement. |
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dd4c54a20 | notes to consolidated financial statements ( continued ) note 7 2014income taxes ( continued ) as of september 30 , 2006 , the company has state and foreign tax loss and state credit carryforwards , the tax effect of which is $ 55 million .
certain of those carryforwards , the tax effect of which is $ 12 million , expire between 2016 and 2019 .
a portion of these carryforwards was acquired from the company 2019s previous acquisitions , the utilization of which is subject to certain limitations imposed by the internal revenue code .
the remaining benefits from tax losses and credits do not expire .
as of september 30 , 2006 and september 24 , 2005 , a valuation allowance of $ 5 million was recorded against the deferred tax asset for the benefits of state operating losses that may not be realized .
management believes it is more likely than not that forecasted income , including income that may be generated as a result of certain tax planning strategies , together with the tax effects of the deferred tax liabilities , will be sufficient to fully recover the remaining deferred tax assets .
a reconciliation of the provision for income taxes , with the amount computed by applying the statutory federal income tax rate ( 35% ( 35 % ) in 2006 , 2005 , and 2004 ) to income before provision for income taxes , is as follows ( in millions ) : 2006 2005 2004 as restated ( 1 ) as restated ( 1 ) .
| 2006 | 2005 as restated ( 1 ) | 2004 as restated ( 1 )
------------------------------------------------------ | ------------ | ---------------------- | ----------------------
computed expected tax | $ 987 | $ 633 | $ 129
state taxes net of federal effect | 86 | -19 ( 19 ) | -5 ( 5 )
indefinitely invested earnings of foreign subsidiaries | -224 ( 224 ) | -98 ( 98 ) | -31 ( 31 )
nondeductible executive compensation | 11 | 14 | 12
research and development credit net | -12 ( 12 ) | -26 ( 26 ) | -5 ( 5 )
other items | -19 ( 19 ) | -24 ( 24 ) | 4
provision for income taxes | $ 829 | $ 480 | $ 104
effective tax rate | 29% ( 29 % ) | 27% ( 27 % ) | 28% ( 28 % )
( 1 ) see note 2 , 201crestatement of consolidated financial statements . 201d the company 2019s income taxes payable has been reduced by the tax benefits from employee stock options .
the company receives an income tax benefit calculated as the difference between the fair market value of the stock issued at the time of the exercise and the option price , tax effected .
the net tax benefits from employee stock option transactions were $ 419 million , $ 428 million ( as restated ( 1 ) ) , and $ 83 million ( as restated ( 1 ) ) in 2006 , 2005 , and 2004 , respectively , and were reflected as an increase to common stock in the consolidated statements of shareholders 2019 equity. |
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dd4c5a100 | vertex pharmaceuticals incorporated notes to consolidated financial statements ( continued ) f .
marketable securities ( continued ) unrealized losses in the portfolio relate to various debt securities including u.s .
government securities , u.s .
government-sponsored enterprise securities , corporate debt securities and asset-backed securities .
for these securities , the unrealized losses are primarily due to increases in interest rates .
the investments held by the company are high investment grade and there were no adverse credit events .
because the company has the ability and intent to hold these investments until a recovery of fair value , which may be maturity , the company does not consider these investments to be other-than-temporarily impaired as of december 31 , 2006 and 2005 .
gross realized gains and losses for 2006 were $ 4000 and $ 88000 respectively .
gross realized gains and losses for 2005 were $ 15000 and $ 75000 , respectively .
gross realized gains and losses for 2004 were $ 628000 and $ 205000 , respectively .
g .
restricted cash at december 31 , 2006 and 2005 , the company held $ 30.3 million and $ 41.5 million respectively , in restricted cash .
at december 31 , 2006 and 2005 the balance was held in deposit with certain banks predominantly to collateralize conditional stand-by letters of credit in the names of the company 2019s landlords pursuant to certain operating lease agreements .
h .
property and equipment property and equipment consist of the following at december 31 ( in thousands ) : depreciation and amortization expense for the years ended december 31 , 2006 , 2005 and 2004 was $ 25.4 million , $ 26.3 million and $ 28.4 million , respectively .
in 2006 and 2005 , the company wrote off certain assets that were fully depreciated and no longer utilized .
there was no effect on the company 2019s net property and equipment .
additionally , the company wrote off or sold certain assets that were not fully depreciated .
the net loss on disposal of those assets was $ 10000 for 2006 , $ 344000 for 2005 and $ 43000 for 2004 .
i .
altus investment altus pharmaceuticals , inc .
( 201caltus 201d ) completed an initial public offering in january 2006 .
as of the completion of the offering , vertex owned 817749 shares of common stock and warrants to purchase 1962494 shares of common stock ( the 201caltus warrants 201d ) .
in addition , the company , as of the completion .
| 2006 | 2005
---------------------------------------------- | ------- | -------
furniture and equipment | $ 97638 | $ 98387
leasehold improvements | 74875 | 66318
computers | 19733 | 18971
software | 21274 | 18683
total property and equipment gross | 213520 | 202359
less accumulated depreciation and amortization | 151985 | 147826
total property and equipment net | $ 61535 | $ 54533
furniture and equipment $ 97638 $ 98387 leasehold improvements 74875 66318 computers 19733 18971 software 21274 18683 total property and equipment , gross 213520 202359 less accumulated depreciation and amortization 151985 147826 total property and equipment , net $ 61535 $ 54533 |
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dd4bf189e | approximately $ 55 million , which is reported as 201cinvestments 201d in the consolidated balance sheet and as 201cpurchases of marketable securities and investments 201d in the consolidated statement of cash flows .
the recovery of approximately $ 25 million of this investment in 2007 reduced 201cinvestments 201d and is shown in cash flows within 201cproceeds from sale of marketable securities and investments . 201d this investment is discussed in more detail under the preceding section entitled industrial and transportation business .
additional purchases of investments include additional survivor benefit insurance and equity investments .
cash flows from financing activities : years ended december 31 .
( millions ) | 2007 | 2006 | 2005
------------------------------------------------------ | ---------------- | ---------------- | ----------------
change in short-term debt 2014 net | $ -1222 ( 1222 ) | $ 882 | $ -258 ( 258 )
repayment of debt ( maturities greater than 90 days ) | -1580 ( 1580 ) | -440 ( 440 ) | -656 ( 656 )
proceeds from debt ( maturities greater than 90 days ) | 4024 | 693 | 429
total cash change in debt | $ 1222 | $ 1135 | $ -485 ( 485 )
purchases of treasury stock | -3239 ( 3239 ) | -2351 ( 2351 ) | -2377 ( 2377 )
reissuances of treasury stock | 796 | 523 | 545
dividends paid to stockholders | -1380 ( 1380 ) | -1376 ( 1376 ) | -1286 ( 1286 )
excess tax benefits from stock-based compensation | 74 | 60 | 54
distributions to minority interests and other 2014 net | -20 ( 20 ) | -52 ( 52 ) | -76 ( 76 )
net cash used in financing activities | $ -2547 ( 2547 ) | $ -2061 ( 2061 ) | $ -3625 ( 3625 )
total debt at december 31 , 2007 , was $ 4.920 billion , up from $ 3.553 billion at year-end 2006 .
the net change in short-term debt is primarily due to commercial paper activity .
in 2007 , the repayment of debt for maturities greater than 90 days is primarily comprised of commercial paper repayments of approximately $ 1.15 billion and the november 2007 redemption of approximately $ 322 million in convertible notes .
in 2007 , proceeds from debt included long-term debt and commercial paper issuances totaling approximately $ 4 billion .
this was comprised of eurobond issuances in december 2007 and july 2007 totaling approximately $ 1.5 billion in u.s .
dollars , a march 2007 long-term debt issuance of $ 750 million and a december 2007 fixed rate note issuance of $ 500 million , plus commercial paper issuances ( maturities greater than 90 days ) of approximately $ 1.25 billion .
increases in long-term debt have been used , in part , to fund share repurchase activities .
the company accelerated purchases of treasury stock when compared to prior years , buying back $ 3.2 billion in shares in 2007 .
total debt was 30% ( 30 % ) of total capital ( total capital is defined as debt plus equity ) , compared with 26% ( 26 % ) at year-end 2006 .
debt securities , including 2007 debt issuances , the company 2019s shelf registration , dealer remarketable securities and convertible notes , are all discussed in more detail in note 10 .
the company has a "well-known seasoned issuer" shelf registration statement , effective february 24 , 2006 , to register an indeterminate amount of debt or equity securities for future sales .
on june 15 , 2007 , the company registered 150718 shares of the company's common stock under this shelf on behalf of and for the sole benefit of the selling stockholders in connection with the company's acquisition of assets of diamond productions , inc .
the company intends to use the proceeds from future securities sales off this shelf for general corporate purposes .
in connection with this shelf registration , in june 2007 the company established a medium-term notes program through which up to $ 3 billion of medium-term notes may be offered .
in december 2007 , 3m issued a five-year , $ 500 million , fixed rate note with a coupon rate of 4.65% ( 4.65 % ) under this medium-term notes program .
this program has a remaining capacity of $ 2.5 billion as of december 31 , 2007 .
the company 2019s $ 350 million of dealer remarketable securities ( classified as current portion of long-term debt ) were remarketed for one year in december 2007 .
at december 31 , 2007 , $ 350 million of dealer remarketable securities ( final maturity 2010 ) and $ 62 million of floating rate notes ( final maturity 2044 ) are classified as current portion of long- term debt as the result of put provisions associated with these debt instruments .
the company has convertible notes with a book value of $ 222 million at december 31 , 2007 .
the next put option date for these convertible notes is november 2012 .
in november 2007 , 364598 outstanding bonds were redeemed resulting in a payout from 3m of approximately $ 322 million .
repurchases of common stock are made to support the company 2019s stock-based employee compensation plans and for other corporate purposes .
in february 2007 , 3m 2019s board of directors authorized a two-year share repurchase of up to $ 7.0 billion for the period from february 12 , 2007 to february 28 , 2009 .
as of december 31 , 2007 , approximately $ 4.1 billion remained available for repurchase .
refer to the table titled 201cissuer purchases of equity securities 201d in part ii , item 5 , for more information. |
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dd496f968 | notes to consolidated financial statements 2014 ( continued ) ( amounts in millions , except per share amounts ) guarantees we have certain contingent obligations under guarantees of certain of our subsidiaries ( 201cparent company guarantees 201d ) relating principally to credit facilities , guarantees of certain media payables and operating leases .
the amount of such parent company guarantees was $ 255.7 and $ 327.1 as of december 31 , 2008 and 2007 , respectively .
in the event of non-payment by the applicable subsidiary of the obligations covered by a guarantee , we would be obligated to pay the amounts covered by that guarantee .
as of december 31 , 2008 , there are no material assets pledged as security for such parent company guarantees .
contingent acquisition obligations we have structured certain acquisitions with additional contingent purchase price obligations in order to reduce the potential risk associated with negative future performance of the acquired entity .
in addition , we have entered into agreements that may require us to purchase additional equity interests in certain consolidated and unconsolidated subsidiaries .
the amounts relating to these transactions are based on estimates of the future financial performance of the acquired entity , the timing of the exercise of these rights , changes in foreign currency exchange rates and other factors .
we have not recorded a liability for these items since the definitive amounts payable are not determinable or distributable .
when the contingent acquisition obligations have been met and consideration is determinable and distributable , we record the fair value of this consideration as an additional cost of the acquired entity .
however , certain acquisitions contain deferred payments that are fixed and determinable on the acquisition date .
in such cases , we record a liability for the payment and record this consideration as an additional cost of the acquired entity on the acquisition date .
if deferred payments and purchases of additional interests after the effective date of purchase are contingent upon the future employment of the former owners then we recognize these payments as compensation expense .
compensation expense is determined based on the terms and conditions of the respective acquisition agreements and employment terms of the former owners of the acquired businesses .
this future expense will not be allocated to the assets and liabilities acquired and is amortized over the required employment terms of the former owners .
the following table details the estimated liability with respect to our contingent acquisition obligations and the estimated amount that would be paid in the event of exercise at the earliest exercise date .
we have certain put options that are exercisable at the discretion of the minority owners as of december 31 , 2008 .
as such , these estimated acquisition payments of $ 5.5 have been included within the total payments expected to be made in 2009 in the table below and , if not made in 2009 , will continue to carry forward into 2010 or beyond until they are exercised or expire .
all payments are contingent upon achieving projected operating performance targets and satisfying other conditions specified in the related agreements and are subject to revisions as the earn-out periods progress .
as of december 31 , 2008 , our estimated future contingent acquisition obligations payable in cash are as follows: .
| 2009 | 2010 | 2011 | 2012 | 2013 | thereafter | total
--------------------------------------------- | ------ | ------ | ------- | ------ | ------ | ---------- | -------
deferred acquisition payments | $ 67.5 | $ 32.1 | $ 30.1 | $ 4.5 | $ 5.7 | $ 2014 | $ 139.9
put and call options with affiliates1 | 11.8 | 34.3 | 73.6 | 70.8 | 70.2 | 2.2 | 262.9
total contingent acquisition payments | 79.3 | 66.4 | 103.7 | 75.3 | 75.9 | 2.2 | 402.8
less cash compensation expense included above | 2.6 | 1.3 | 0.7 | 0.7 | 0.3 | 2014 | 5.6
total | $ 76.7 | $ 65.1 | $ 103.0 | $ 74.6 | $ 75.6 | $ 2.2 | $ 397.2
1 we have entered into certain acquisitions that contain both put and call options with similar terms and conditions .
in such instances , we have included the related estimated contingent acquisition obligation in the period when the earliest related option is exercisable .
as a result of revisions made during 2008 to eitf topic no .
d-98 , classification and measurement of redeemable securities ( 201ceitf d-98 201d ) |
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dd4bcd4da | the years ended december 31 , 2008 , 2007 and 2006 , due to ineffectiveness and amounts excluded from the assessment of hedge effectiveness , was not significant .
for contracts outstanding at december 31 , 2008 , we have an obligation to purchase u.s .
dollars and sell euros , japanese yen , british pounds , canadian dollars , australian dollars and korean won and purchase swiss francs and sell u.s .
dollars at set maturity dates ranging from january 2009 through june 2011 .
the notional amounts of outstanding forward contracts entered into with third parties to purchase u.s .
dollars at december 31 , 2008 were $ 1343.0 million .
the notional amounts of outstanding forward contracts entered into with third parties to purchase swiss francs at december 31 , 2008 were $ 207.5 million .
the fair value of outstanding derivative instruments recorded on the balance sheet at december 31 , 2008 , together with settled derivatives where the hedged item has not yet affected earnings , was a net unrealized gain of $ 32.7 million , or $ 33.0 million net of taxes , which is deferred in other comprehensive income , of which $ 16.4 million , or $ 17.9 million , net of taxes , is expected to be reclassified to earnings over the next twelve months .
we also enter into foreign currency forward exchange contracts with terms of one month to manage currency exposures for assets and liabilities denominated in a currency other than an entity 2019s functional currency .
as a result , any foreign currency remeasurement gains/losses recognized in earnings under sfas no .
52 , 201cforeign currency translation , 201d are generally offset with gains/losses on the foreign currency forward exchange contracts in the same reporting period .
other comprehensive income 2013 other comprehensive income refers to revenues , expenses , gains and losses that under generally accepted accounting principles are included in comprehensive income but are excluded from net earnings as these amounts are recorded directly as an adjustment to stockholders 2019 equity .
other comprehensive income is comprised of foreign currency translation adjustments , unrealized foreign currency hedge gains and losses , unrealized gains and losses on available-for-sale securities and amortization of prior service costs and unrecognized gains and losses in actuarial assumptions .
in 2006 we adopted sfas 158 , 201cemployers 2019 accounting for defined benefit pension and other postretirement plans 2013 an amendment of fasb statements no .
87 , 88 , 106 and 132 ( r ) . 201d this statement required recognition of the funded status of our benefit plans in the statement of financial position and recognition of certain deferred gains or losses in other comprehensive income .
we recorded an unrealized loss of $ 35.4 million in other comprehensive income during 2006 related to the adoption of sfas 158 .
the components of accumulated other comprehensive income are as follows ( in millions ) : balance at december 31 , comprehensive income ( loss ) balance at december 31 .
| balance at december 31 2007 | other comprehensive income ( loss ) | balance at december 31 2008
---------------------------------------------------------------------------------------- | --------------------------- | ----------------------------------- | ---------------------------
foreign currency translation | $ 368.8 | $ -49.4 ( 49.4 ) | $ 319.4
foreign currency hedges | -45.4 ( 45.4 ) | 78.4 | 33.0
unrealized gain/ ( loss ) on securities | -1.9 ( 1.9 ) | 0.6 | -1.3 ( 1.3 )
unrecognized prior service cost and unrecognized gain/ ( loss ) in actuarial assumptions | -31.2 ( 31.2 ) | -79.9 ( 79.9 ) | -111.1 ( 111.1 )
accumulated other comprehensive income | $ 290.3 | $ -50.3 ( 50.3 ) | $ 240.0
during 2008 , we reclassified an investment previously accounted for under the equity method to an available-for-sale investment as we no longer exercised significant influence over the third-party investee .
the investment was marked-to- market in accordance with sfas 115 , 201caccounting for certain investments in debt and equity securities , 201d resulting in a net unrealized gain of $ 23.8 million recorded in other comprehensive income for 2008 .
this unrealized gain was reclassified to the income statement when we sold this investment in 2008 for total proceeds of $ 54.9 million and a gross realized gain of $ 38.8 million included in interest and other income .
the basis of these securities was determined based on the consideration paid at the time of acquisition .
treasury stock 2013 we account for repurchases of common stock under the cost method and present treasury stock as a reduction of shareholders equity .
we may reissue common stock held in treasury only for limited purposes .
accounting pronouncements 2013 in september 2006 , the fasb issued sfas no .
157 , 201cfair value measurements , 201d which defines fair value , establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements .
this statement does not require any new fair value measurements , but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information .
sfas no .
157 is effective for financial statements issued for fiscal years beginning after november 15 , 2007 and interim periods within those fiscal years .
in february 2008 , the fasb issued fasb staff position ( fsp ) no .
sfas 157-2 , which delays the effective date of certain provisions of sfas no .
157 relating to non-financial assets and liabilities measured at fair value on a non-recurring basis until fiscal years beginning after november 15 , 2008 .
the full adoption of sfas no .
157 is not expected to have a material impact on our consolidated financial statements or results of operations .
z i m m e r h o l d i n g s , i n c .
2 0 0 8 f o r m 1 0 - k a n n u a l r e p o r t notes to consolidated financial statements ( continued ) %%transmsg*** transmitting job : c48761 pcn : 046000000 ***%%pcmsg|46 |00009|yes|no|02/24/2009 19:24|0|0|page is valid , no graphics -- color : d| |
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dd4ba212c | 2022 the ability to identify suitable acquisition candidates and the ability to finance such acquisitions , which depends upon the availability of adequate cash reserves from operations or of acceptable financing terms and the variability of our stock price ; 2022 our ability to integrate any acquired business 2019 operations , services , clients , and personnel ; 2022 the effect of our substantial leverage , which may limit the funds available to make acquisitions and invest in our business ; 2022 changes in , or the failure to comply with , government regulations , including privacy regulations ; and 2022 other risks detailed elsewhere in this risk factors section and in our other filings with the securities and exchange commission .
we are not under any obligation ( and expressly disclaim any such obligation ) to update or alter our forward- looking statements , whether as a result of new information , future events or otherwise .
you should carefully consider the possibility that actual results may differ materially from our forward-looking statements .
item 1b .
unresolved staff comments .
item 2 .
properties .
our corporate headquarters are located in jacksonville , florida , in an owned facility .
fnf occupies and pays us rent for approximately 86000 square feet in this facility .
we lease office space as follows : number of locations ( 1 ) .
state | number of locations ( 1 )
---------------------------------------- | -------------------------
california | 44
texas | 21
florida | 18
georgia new york | 10
new jersey | 8
illinois massachusetts | 7
alabama arizona minnesota north carolina | 6
other | 64
( 1 ) represents the number of locations in each state listed .
we also lease approximately 72 locations outside the united states .
we believe our properties are adequate for our business as presently conducted .
item 3 .
legal proceedings .
in the ordinary course of business , the company is involved in various pending and threatened litigation matters related to operations , some of which include claims for punitive or exemplary damages .
the company believes that no actions , other than the matters listed below , depart from customary litigation incidental to its business .
as background to the disclosure below , please note the following : 2022 these matters raise difficult and complicated factual and legal issues and are subject to many uncertainties and complexities .
2022 the company reviews these matters on an on-going basis and follows the provisions of statement of financial accounting standards no .
5 , accounting for contingencies ( 201csfas 5 201d ) , when making accrual and disclosure decisions .
when assessing reasonably possible and probable outcomes , the company bases decisions on the assessment of the ultimate outcome following all appeals. |
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dd4b8fae0 | part iii item 10 .
directors , executive officers and corporate governance the information required by this item is incorporated by reference to the 201celection of directors 201d section , the 201cdirector selection process 201d section , the 201ccode of conduct 201d section , the 201cprincipal committees of the board of directors 201d section , the 201caudit committee 201d section and the 201csection 16 ( a ) beneficial ownership reporting compliance 201d section of the proxy statement for the annual meeting of stockholders to be held on may 21 , 2015 ( the 201cproxy statement 201d ) , except for the description of our executive officers , which appears in part i of this report on form 10-k under the heading 201cexecutive officers of ipg . 201d new york stock exchange certification in 2014 , our chief executive officer provided the annual ceo certification to the new york stock exchange , as required under section 303a.12 ( a ) of the new york stock exchange listed company manual .
item 11 .
executive compensation the information required by this item is incorporated by reference to the 201cexecutive compensation 201d section , the 201cnon- management director compensation 201d section , the 201ccompensation discussion and analysis 201d section and the 201ccompensation and leadership talent committee report 201d section of the proxy statement .
item 12 .
security ownership of certain beneficial owners and management and related stockholder matters the information required by this item is incorporated by reference to the 201coutstanding shares and ownership of common stock 201d section of the proxy statement , except for information regarding the shares of common stock to be issued or which may be issued under our equity compensation plans as of december 31 , 2014 , which is provided in the following table .
equity compensation plan information plan category number of shares of common stock to be issued upon exercise of outstanding options , warrants and rights ( a ) 123 weighted-average exercise price of outstanding stock options number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) equity compensation plans approved by security holders .
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15563666 9.70 41661517 equity compensation plans not approved by security holders .
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none 1 included a total of 5866475 performance-based share awards made under the 2009 and 2014 performance incentive plans representing the target number of shares of common stock to be issued to employees following the completion of the 2012-2014 performance period ( the 201c2014 ltip share awards 201d ) , the 2013-2015 performance period ( the 201c2015 ltip share awards 201d ) and the 2014-2016 performance period ( the 201c2016 ltip share awards 201d ) , respectively .
the computation of the weighted-average exercise price in column ( b ) of this table does not take the 2014 ltip share awards , the 2015 ltip share awards or the 2016 ltip share awards into account .
2 included a total of 98877 restricted share units and performance-based awards ( 201cshare unit awards 201d ) which may be settled in shares of common stock or cash .
the computation of the weighted-average exercise price in column ( b ) of this table does not take the share unit awards into account .
each share unit award actually settled in cash will increase the number of shares of common stock available for issuance shown in column ( c ) .
3 ipg has issued restricted cash awards ( 201cperformance cash awards 201d ) , half of which shall be settled in shares of common stock and half of which shall be settled in cash .
using the 2014 closing stock price of $ 20.77 , the awards which shall be settled in shares of common stock represent rights to an additional 2721405 shares .
these shares are not included in the table above .
4 included ( i ) 29045044 shares of common stock available for issuance under the 2014 performance incentive plan , ( ii ) 12181214 shares of common stock available for issuance under the employee stock purchase plan ( 2006 ) and ( iii ) 435259 shares of common stock available for issuance under the 2009 non-management directors 2019 stock incentive plan. .
plan category | number of shares of common stock to be issued upon exercise of outstanding options warrants and rights ( a ) 123 | weighted-average exercise price of outstanding stock options ( b ) | number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) ( c ) 4
---------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------
equity compensation plans approved by security holders | 15563666 | 9.70 | 41661517
equity compensation plans not approved by security holders | none | |
part iii item 10 .
directors , executive officers and corporate governance the information required by this item is incorporated by reference to the 201celection of directors 201d section , the 201cdirector selection process 201d section , the 201ccode of conduct 201d section , the 201cprincipal committees of the board of directors 201d section , the 201caudit committee 201d section and the 201csection 16 ( a ) beneficial ownership reporting compliance 201d section of the proxy statement for the annual meeting of stockholders to be held on may 21 , 2015 ( the 201cproxy statement 201d ) , except for the description of our executive officers , which appears in part i of this report on form 10-k under the heading 201cexecutive officers of ipg . 201d new york stock exchange certification in 2014 , our chief executive officer provided the annual ceo certification to the new york stock exchange , as required under section 303a.12 ( a ) of the new york stock exchange listed company manual .
item 11 .
executive compensation the information required by this item is incorporated by reference to the 201cexecutive compensation 201d section , the 201cnon- management director compensation 201d section , the 201ccompensation discussion and analysis 201d section and the 201ccompensation and leadership talent committee report 201d section of the proxy statement .
item 12 .
security ownership of certain beneficial owners and management and related stockholder matters the information required by this item is incorporated by reference to the 201coutstanding shares and ownership of common stock 201d section of the proxy statement , except for information regarding the shares of common stock to be issued or which may be issued under our equity compensation plans as of december 31 , 2014 , which is provided in the following table .
equity compensation plan information plan category number of shares of common stock to be issued upon exercise of outstanding options , warrants and rights ( a ) 123 weighted-average exercise price of outstanding stock options number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) equity compensation plans approved by security holders .
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15563666 9.70 41661517 equity compensation plans not approved by security holders .
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none 1 included a total of 5866475 performance-based share awards made under the 2009 and 2014 performance incentive plans representing the target number of shares of common stock to be issued to employees following the completion of the 2012-2014 performance period ( the 201c2014 ltip share awards 201d ) , the 2013-2015 performance period ( the 201c2015 ltip share awards 201d ) and the 2014-2016 performance period ( the 201c2016 ltip share awards 201d ) , respectively .
the computation of the weighted-average exercise price in column ( b ) of this table does not take the 2014 ltip share awards , the 2015 ltip share awards or the 2016 ltip share awards into account .
2 included a total of 98877 restricted share units and performance-based awards ( 201cshare unit awards 201d ) which may be settled in shares of common stock or cash .
the computation of the weighted-average exercise price in column ( b ) of this table does not take the share unit awards into account .
each share unit award actually settled in cash will increase the number of shares of common stock available for issuance shown in column ( c ) .
3 ipg has issued restricted cash awards ( 201cperformance cash awards 201d ) , half of which shall be settled in shares of common stock and half of which shall be settled in cash .
using the 2014 closing stock price of $ 20.77 , the awards which shall be settled in shares of common stock represent rights to an additional 2721405 shares .
these shares are not included in the table above .
4 included ( i ) 29045044 shares of common stock available for issuance under the 2014 performance incentive plan , ( ii ) 12181214 shares of common stock available for issuance under the employee stock purchase plan ( 2006 ) and ( iii ) 435259 shares of common stock available for issuance under the 2009 non-management directors 2019 stock incentive plan. |
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dd4bcf28a | management 2019s discussion and analysis 138 jpmorgan chase & co./2013 annual report the credit derivatives used in credit portfolio management activities do not qualify for hedge accounting under u.s .
gaap ; these derivatives are reported at fair value , with gains and losses recognized in principal transactions revenue .
in contrast , the loans and lending-related commitments being risk-managed are accounted for on an accrual basis .
this asymmetry in accounting treatment , between loans and lending-related commitments and the credit derivatives used in credit portfolio management activities , causes earnings volatility that is not representative , in the firm 2019s view , of the true changes in value of the firm 2019s overall credit exposure .
the effectiveness of the firm 2019s credit default swap ( 201ccds 201d ) protection as a hedge of the firm 2019s exposures may vary depending on a number of factors , including the named reference entity ( i.e. , the firm may experience losses on specific exposures that are different than the named reference entities in the purchased cds ) , and the contractual terms of the cds ( which may have a defined credit event that does not align with an actual loss realized by the firm ) and the maturity of the firm 2019s cds protection ( which in some cases may be shorter than the firm 2019s exposures ) .
however , the firm generally seeks to purchase credit protection with a maturity date that is the same or similar to the maturity date of the exposure for which the protection was purchased , and remaining differences in maturity are actively monitored and managed by the firm .
credit portfolio hedges the following table sets out the fair value related to the firm 2019s credit derivatives used in credit portfolio management activities , the fair value related to the cva ( which reflects the credit quality of derivatives counterparty exposure ) , as well as certain other hedges used in the risk management of cva .
these results can vary from period-to- period due to market conditions that affect specific positions in the portfolio .
net gains and losses on credit portfolio hedges year ended december 31 , ( in millions ) 2013 2012 2011 hedges of loans and lending- related commitments $ ( 142 ) $ ( 163 ) $ ( 32 ) .
year ended december 31 ( in millions ) | 2013 | 2012 | 2011
----------------------------------------------- | -------------- | -------------- | --------------
hedges of loans and lending-related commitments | $ -142 ( 142 ) | $ -163 ( 163 ) | $ -32 ( 32 )
cva and hedges of cva | -130 ( 130 ) | 127 | -769 ( 769 )
net gains/ ( losses ) | $ -272 ( 272 ) | $ -36 ( 36 ) | $ -801 ( 801 )
community reinvestment act exposure the community reinvestment act ( 201ccra 201d ) encourages banks to meet the credit needs of borrowers in all segments of their communities , including neighborhoods with low or moderate incomes .
the firm is a national leader in community development by providing loans , investments and community development services in communities across the united states .
at december 31 , 2013 and 2012 , the firm 2019s cra loan portfolio was approximately $ 18 billion and $ 16 billion , respectively .
at december 31 , 2013 and 2012 , 50% ( 50 % ) and 62% ( 62 % ) , respectively , of the cra portfolio were residential mortgage loans ; 26% ( 26 % ) and 13% ( 13 % ) , respectively , were commercial real estate loans ; 16% ( 16 % ) and 18% ( 18 % ) , respectively , were business banking loans ; and 8% ( 8 % ) and 7% ( 7 % ) , respectively , were other loans .
cra nonaccrual loans were 3% ( 3 % ) and 4% ( 4 % ) , respectively , of the firm 2019s total nonaccrual loans .
for the years ended december 31 , 2013 and 2012 , net charge-offs in the cra portfolio were 1% ( 1 % ) and 3% ( 3 % ) , respectively , of the firm 2019s net charge-offs in both years. |
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dd4b9cde4 | issuer purchases of equity securities during the three months ended december 31 , 2007 , we repurchased 8895570 shares of our class a common stock for an aggregate of $ 385.1 million pursuant to the $ 1.5 billion stock repurchase program publicly announced in february 2007 , as follows : period total number of shares purchased ( 1 ) average price paid per share total number of shares purchased as part of publicly announced plans or programs approximate dollar value of shares that may yet be purchased under the plans or programs ( in millions ) .
period | total number of shares purchased ( 1 ) | average price paid per share | total number of shares purchased as part of publicly announced plans or programs | approximate dollar value of shares that may yet be purchased under the plans or programs ( in millions )
-------------------- | -------------------------------------- | ---------------------------- | -------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------
october 2007 | 3493426 | $ 43.30 | 3493426 | $ 449.9
november 2007 | 2891719 | $ 44.16 | 2891719 | $ 322.2
december 2007 | 2510425 | $ 44.20 | 2510425 | $ 216.2
total fourth quarter | 8895570 | $ 43.27 | 8895570 | $ 216.2
( 1 ) issuer repurchases pursuant to the $ 1.5 billion stock repurchase program publicly announced in february 2007 .
under this program , our management was authorized through february 2008 to purchase shares from time to time through open market purchases or privately negotiated transactions at prevailing prices as permitted by securities laws and other legal requirements , and subject to market conditions and other factors .
to facilitate repurchases , we typically made purchases pursuant to trading plans under rule 10b5-1 of the exchange act , which allow us to repurchase shares during periods when we otherwise might be prevented from doing so under insider trading laws or because of self-imposed trading blackout periods .
subsequent to december 31 , 2007 , we repurchased 4.3 million shares of our class a common stock for an aggregate of $ 163.7 million pursuant to this program .
in february 2008 , our board of directors approved a new stock repurchase program , pursuant to which we are authorized to purchase up to an additional $ 1.5 billion of our class a common stock .
purchases under this stock repurchase program are subject to us having available cash to fund repurchases , as further described in item 1a of this annual report under the caption 201crisk factors 2014we anticipate that we may need additional financing to fund our stock repurchase programs , to refinance our existing indebtedness and to fund future growth and expansion initiatives 201d and item 7 of this annual report under the caption 201cmanagement 2019s discussion and analysis of financial condition and results of operations 2014liquidity and capital resources . 201d |
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dd4c51a78 | share-based compensation cost is recorded net of estimated forfeitures on a straight-line basis for awards with service conditions only , and on a graded-vesting basis for awards with service , performance and market conditions .
the company 2019s estimated forfeiture rate is based on an evaluation of historical , actual and trended forfeiture data .
for fiscal 2014 , 2013 , and 2012 , the company recorded share-based compensation cost of $ 172 million , $ 179 million and $ 147 million , respectively , in personnel on its consolidated statements of operations .
the amount of capitalized share-based compensation cost was immaterial during fiscal 2014 , 2013 and 2012 .
options options issued under the eip expire 10 years from the date of grant and vest ratably over 3 years from the date of grant , subject to earlier vesting in full under certain conditions .
during fiscal 2014 , 2013 and 2012 , the fair value of each stock option was estimated on the date of grant using a black-scholes option pricing model with the following weighted-average assumptions: .
| 2014 | 2013 | 2012
-------------------------------- | ---------------- | ---------------- | ----------------
expected term ( in years ) ( 1 ) | 4.80 | 6.08 | 6.02
risk-free rate of return ( 2 ) | 1.3% ( 1.3 % ) | 0.8% ( 0.8 % ) | 1.2% ( 1.2 % )
expected volatility ( 3 ) | 25.2% ( 25.2 % ) | 29.3% ( 29.3 % ) | 34.9% ( 34.9 % )
expected dividend yield ( 4 ) | 0.8% ( 0.8 % ) | 0.9% ( 0.9 % ) | 0.9% ( 0.9 % )
fair value per option granted | $ 44.11 | $ 39.03 | $ 29.65
( 1 ) beginning in fiscal 2014 , assumption is based on the company 2019s historical option exercises and those of a set of peer companies that management believes is generally comparable to visa .
the company 2019s data is weighted based on the number of years between the measurement date and visa 2019s initial public offering as a percentage of the options 2019 contractual term .
the relative weighting placed on visa 2019s data and peer data in fiscal 2014 was approximately 58% ( 58 % ) and 42% ( 42 % ) , respectively .
in fiscal 2013 and 2012 , assumption was fully based on peer companies 2019 data .
( 2 ) based upon the zero coupon u.s .
treasury bond rate over the expected term of the awards .
( 3 ) based on the company 2019s implied and historical volatility .
in fiscal 2013 and 2012 , historical volatility was a blend of visa 2019s historical volatility and those of comparable peer companies .
the relative weighting between visa historical volatility and the historical volatility of the peer companies was based on the percentage of years visa stock price information is available since its initial public offering compared to the expected term .
the expected volatilities ranged from 22% ( 22 % ) to 26% ( 26 % ) in fiscal ( 4 ) based on the company 2019s annual dividend rate on the date of grant. |
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dd4b87b10 | baker hughes , a ge company notes to consolidated and combined financial statements bhge 2017 form 10-k | 85 the total intrinsic value of rsus ( defined as the value of the shares awarded at the current market price ) vested and outstanding in 2017 was $ 17 million and $ 38 million , respectively .
the total fair value of rsus vested in 2017 was $ 19 million .
as of december 31 , 2017 , there was $ 98 million of total unrecognized compensation cost related to unvested rsus , which is expected to be recognized over a weighted average period of 2.5 years .
note 12 .
equity common stock we are authorized to issue 2 billion shares of class a common stock , 1.25 billion shares of class b common stock and 50 million shares of preferred stock each of which have a par value of $ 0.0001 per share .
on july 3 , 2017 , each share of baker hughes common stock was converted into one share of class a common stock in the company .
the number of class a common stock and class b common stock shares outstanding at december 31 , 2017 is 422 million and 707 million , respectively .
we have not issued any preferred stock .
ge owns all the issued and outstanding class b common stock .
each share of class a and class b common stock and the associated membership interest in bhge llc form a paired interest .
while each share of class b common stock has equal voting rights to a share of class a common stock , it has no economic rights , meaning holders of class b common stock have no right to dividends and any assets in the event of liquidation of the company .
former baker hughes stockholders immediately after the completion of the transactions received a special one-time cash dividend of $ 17.50 per share paid by the company to holders of record of the company's class a common stock .
in addition , during 2017 the company declared and paid regular dividends of $ 0.17 per share and $ 0.18 per share to holders of record of the company's class a common stock during the quarters ended september 30 , 2017 and december 31 , 2017 , respectively .
the following table presents the changes in number of shares outstanding ( in thousands ) : class a common class b common .
| class a common stock | class b common stock
------------------------------------------------------------ | -------------------- | --------------------
balance at december 31 2016 | 2014 | 2014
issue of shares on business combination at july 3 2017 | 427709 | 717111
issue of shares upon vesting of restricted stock units ( 1 ) | 290 | 2014
issue of shares on exercises of stock options ( 1 ) | 256 | 2014
stock repurchase program ( 2 ) ( 3 ) | -6047 ( 6047 ) | -10126 ( 10126 )
balance at december 31 2017 | 422208 | 706985
( 1 ) share amounts reflected above are net of shares withheld to satisfy the employee's tax withholding obligation .
( 2 ) on november 2 , 2017 , our board of directors authorized bhge llc to repurchase up to $ 3 billion of its common units from the company and ge .
the proceeds of this repurchase are to be used by bhge to repurchase class a common stock of the company on the open market , which if fully implemented would result in the repurchase of approximately $ 1.1 billion of class a common stock .
the class b common stock of the company , that is paired with repurchased common units , was repurchased by the company at par value .
the $ 3 billion repurchase authorization is the aggregate authorization for repurchases of class a and class b common stock together with its paired unit .
bhge llc had authorization remaining to repurchase up to approximately $ 2.5 billion of its common units from bhge and ge at december 31 , 2017 .
( 3 ) during 2017 , we repurchased and canceled 6046735 shares of class a common stock for a total of $ 187 million .
we also repurchased and canceled 10126467 shares of class b common stock from ge which is paired together with common units of bhge llc for $ 314 million. |
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dd4c131e2 | table of contents worldwide distribution channels the following table presents the number of doors by geographic location , in which ralph lauren-branded products distributed by our wholesale segment were sold to consumers in our primary channels of distribution as of april 3 , 2010 : number of location doors ( a ) .
location | number of doors ( a )
------------------------ | ---------------------
united states and canada | 4402
europe | 4421
japan | 117
total | 8940
( a ) in asia-pacific , our products are primarily distributed through concessions-based sales arrangements .
in addition , american living and chaps-branded products distributed by our wholesale segment were sold domestically through approximately 1700 doors as of april 3 , 2010 .
we have five key department-store customers that generate significant sales volume .
for fiscal 2010 , these customers in the aggregate accounted for approximately 45% ( 45 % ) of all wholesale revenues , with macy 2019s , inc .
representing approximately 18% ( 18 % ) of these revenues .
our product brands are sold primarily through their own sales forces .
our wholesale segment maintains its primary showrooms in new york city .
in addition , we maintain regional showrooms in atlanta , chicago , dallas , milan , paris , london , munich , madrid and stockholm .
shop-within-shops .
as a critical element of our distribution to department stores , we and our licensing partners utilize shop- within-shops to enhance brand recognition , to permit more complete merchandising of our lines by the department stores and to differentiate the presentation of products .
shop-within-shops fixed assets primarily include items such as customized freestanding fixtures , wall cases and components , decorative items and flooring .
as of april 3 , 2010 , we had approximately 14000 shop-within-shops dedicated to our ralph lauren-branded wholesale products worldwide .
excluding significantly larger shop-within-shops in key department store locations , the size of our shop-within-shops typically ranges from approximately 300 to 6000 square feet .
we normally share in the cost of these shop-within-shops with our wholesale customers .
basic stock replenishment program .
basic products such as knit shirts , chino pants and oxford cloth shirts can be ordered at any time through our basic stock replenishment programs .
we generally ship these products within three-to-five days of order receipt .
our retail segment as of april 3 , 2010 , our retail segment consisted of 179 full-price retail stores and 171 factory stores worldwide , totaling approximately 2.6 million square feet , 281 concessions-based shop-within-shops and two e-commerce websites .
the extension of our direct-to-consumer reach is a primary long-term strategic goal .
full-price retail stores our full-price retail stores reinforce the luxury image and distinct sensibility of our brands and feature exclusive lines that are not sold in domestic department stores .
we opened 3 new full-price stores and closed 3 full-price stores in fiscal 2010 .
in addition , we assumed 16 full-price stores in connection with the asia-pacific |
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dd4c4e3fa | notes to consolidated financial statements ( continued ) 1 .
basis of presentation and accounting policies ( continued ) sop 03-1 was effective for financial statements for fiscal years beginning after december 15 , 2003 .
at the date of initial application , january 1 , 2004 , the cumulative effect of the adoption of sop 03-1 on net income and other comprehensive income was comprised of the following individual impacts shown net of income tax benefit of $ 12 : in may 2003 , the financial accounting standards board ( 201cfasb 201d ) issued statement of financial accounting standards ( 201csfas 201d ) no .
150 , 201caccounting for certain financial instruments with characteristics of both liabilities and equity 201d .
sfas no .
150 establishes standards for classifying and measuring as liabilities certain financial instruments that embody obligations of the issuer and have characteristics of both liabilities and equity .
generally , sfas no .
150 requires liability classification for two broad classes of financial instruments : ( a ) instruments that represent , or are indexed to , an obligation to buy back the issuer 2019s shares regardless of whether the instrument is settled on a net-cash or gross-physical basis and ( b ) obligations that ( i ) can be settled in shares but derive their value predominately from another underlying instrument or index ( e.g .
security prices , interest rates , and currency rates ) , ( ii ) have a fixed value , or ( iii ) have a value inversely related to the issuer 2019s shares .
mandatorily redeemable equity and written options requiring the issuer to buyback shares are examples of financial instruments that should be reported as liabilities under this new guidance .
sfas no .
150 specifies accounting only for certain freestanding financial instruments and does not affect whether an embedded derivative must be bifurcated and accounted for separately .
sfas no .
150 was effective for instruments entered into or modified after may 31 , 2003 and for all other instruments beginning with the first interim reporting period beginning after june 15 , 2003 .
adoption of this statement did not have a material impact on the company 2019s consolidated financial condition or results of operations .
in january 2003 , the fasb issued interpretation no .
46 , 201cconsolidation of variable interest entities , an interpretation of arb no .
51 201d ( 201cfin 46 201d ) , which required an enterprise to assess whether consolidation of an entity is appropriate based upon its interests in a variable interest entity .
a vie is an entity in which the equity investors do not have the characteristics of a controlling financial interest or do not have sufficient equity at risk for the entity to finance its activities without additional subordinated financial support from other parties .
the initial determination of whether an entity is a vie shall be made on the date at which an enterprise becomes involved with the entity .
an enterprise shall consolidate a vie if it has a variable interest that will absorb a majority of the vies expected losses if they occur , receive a majority of the entity 2019s expected residual returns if they occur or both .
fin 46 was effective immediately for new vies established or purchased subsequent to january 31 , 2003 .
for vies established or purchased subsequent to january 31 , 2003 , the adoption of fin 46 did not have a material impact on the company 2019s consolidated financial condition or results of operations as there were no material vies which required consolidation .
in december 2003 , the fasb issued a revised version of fin 46 ( 201cfin 46r 201d ) , which incorporated a number of modifications and changes made to the original version .
fin 46r replaced the previously issued fin 46 and , subject to certain special provisions , was effective no later than the end of the first reporting period that ends after december 15 , 2003 for entities considered to be special- purpose entities and no later than the end of the first reporting period that ends after march 15 , 2004 for all other vies .
early adoption was permitted .
the company adopted fin 46r in the fourth quarter of 2003 .
the adoption of fin 46r did not result in the consolidation of any material vies but resulted in the deconsolidation of vies that issued mandatorily redeemable preferred securities of subsidiary trusts ( 201ctrust preferred securities 201d ) .
the company is not the primary beneficiary of the vies , which issued the trust preferred securities .
the company does not own any of the trust preferred securities which were issued to unrelated third parties .
these trust preferred securities are considered the principal variable interests issued by the vies .
as a result , the vies , which the company previously consolidated , are no longer consolidated .
the sole assets of the vies are junior subordinated debentures issued by the company with payment terms identical to the trust preferred securities .
previously , the trust preferred securities were reported as a separate liability on the company 2019s consolidated balance sheets as 201ccompany obligated mandatorily redeemable preferred securities of subsidiary trusts holding solely junior subordinated debentures 201d .
at december 31 , 2003 and 2002 , the impact of deconsolidation was to increase long-term debt and decrease the trust preferred securities by $ 952 and $ 1.5 billion , respectively .
( for further discussion , see note 14 for disclosure of information related to these vies as required under fin 46r. ) future adoption of new accounting standards in december 2004 , the fasb issued sfas no .
123 ( revised 2004 ) , 201cshare-based payment 201d ( 201csfas no .
123r 201d ) , which replaces sfas no .
123 , 201caccounting for stock-based compensation 201d ( 201csfas no .
123 201d ) and supercedes apb opinion no .
25 , 201caccounting for stock issued to employees 201d .
sfas no .
123r requires all companies to recognize compensation costs for share-based payments to employees based on the grant-date fair value of the award for financial statements for reporting periods beginning after june 15 , 2005 .
the pro forma disclosures previously permitted under sfas no .
123 will no longer be an alternative to financial statement recognition .
the transition methods include prospective and retrospective adoption options .
the prospective method requires that .
components of cumulative effect of adoption | net income | other comprehensive income
------------------------------------------------------------------ | ------------ | --------------------------
establishing gmdb and other benefit reserves for annuity contracts | $ -54 ( 54 ) | $ 2014
reclassifying certain separate accounts to general account | 30 | 294
other | 1 | -2 ( 2 )
total cumulative effect of adoption | $ -23 ( 23 ) | $ 292 |
|
dd4bda84c | on-balance sheet securitizations the company engages in on-balance sheet securitizations .
these are securitizations that do not qualify for sales treatment ; thus , the assets remain on the company 2019s balance sheet .
the following table presents the carrying amounts and classification of consolidated assets and liabilities transferred in transactions from the consumer credit card , student loan , mortgage and auto businesses , accounted for as secured borrowings : in billions of dollars december 31 , december 31 .
in billions of dollars | december 31 2008 | december 31 2007
----------------------------- | ---------------- | ----------------
cash | $ 0.3 | $ 0.1
available-for-sale securities | 0.1 | 0.2
loans | 7.5 | 7.4
allowance for loan losses | -0.1 ( 0.1 ) | -0.1 ( 0.1 )
total assets | $ 7.8 | $ 7.6
long-term debt | $ 6.3 | $ 5.8
other liabilities | 0.3 | 0.4
total liabilities | $ 6.6 | $ 6.2
all assets are restricted from being sold or pledged as collateral .
the cash flows from these assets are the only source used to pay down the associated liabilities , which are non-recourse to the company 2019s general assets .
citi-administered asset-backed commercial paper conduits the company is active in the asset-backed commercial paper conduit business as administrator of several multi-seller commercial paper conduits , and also as a service provider to single-seller and other commercial paper conduits sponsored by third parties .
the multi-seller commercial paper conduits are designed to provide the company 2019s customers access to low-cost funding in the commercial paper markets .
the conduits purchase assets from or provide financing facilities to customers and are funded by issuing commercial paper to third-party investors .
the conduits generally do not purchase assets originated by the company .
the funding of the conduit is facilitated by the liquidity support and credit enhancements provided by the company and by certain third parties .
as administrator to the conduits , the company is responsible for selecting and structuring of assets purchased or financed by the conduits , making decisions regarding the funding of the conduits , including determining the tenor and other features of the commercial paper issued , monitoring the quality and performance of the conduits 2019 assets , and facilitating the operations and cash flows of the conduits .
in return , the company earns structuring fees from clients for individual transactions and earns an administration fee from the conduit , which is equal to the income from client program and liquidity fees of the conduit after payment of interest costs and other fees .
this administration fee is fairly stable , since most risks and rewards of the underlying assets are passed back to the customers and , once the asset pricing is negotiated , most ongoing income , costs and fees are relatively stable as a percentage of the conduit 2019s size .
the conduits administered by the company do not generally invest in liquid securities that are formally rated by third parties .
the assets are privately negotiated and structured transactions that are designed to be held by the conduit , rather than actively traded and sold .
the yield earned by the conduit on each asset is generally tied to the rate on the commercial paper issued by the conduit , thus passing interest rate risk to the client .
each asset purchased by the conduit is structured with transaction-specific credit enhancement features provided by the third-party seller , including over- collateralization , cash and excess spread collateral accounts , direct recourse or third-party guarantees .
these credit enhancements are sized with the objective of approximating a credit rating of a or above , based on the company 2019s internal risk ratings .
substantially all of the funding of the conduits is in the form of short- term commercial paper .
as of december 31 , 2008 , the weighted average life of the commercial paper issued was approximately 37 days .
in addition , the conduits have issued subordinate loss notes and equity with a notional amount of approximately $ 80 million and varying remaining tenors ranging from six months to seven years .
the primary credit enhancement provided to the conduit investors is in the form of transaction-specific credit enhancement described above .
in addition , there are two additional forms of credit enhancement that protect the commercial paper investors from defaulting assets .
first , the subordinate loss notes issued by each conduit absorb any credit losses up to their full notional amount .
it is expected that the subordinate loss notes issued by each conduit are sufficient to absorb a majority of the expected losses from each conduit , thereby making the single investor in the subordinate loss note the primary beneficiary under fin 46 ( r ) .
second , each conduit has obtained a letter of credit from the company , which is generally 8-10% ( 8-10 % ) of the conduit 2019s assets .
the letters of credit provided by the company total approximately $ 5.8 billion and are included in the company 2019s maximum exposure to loss .
the net result across all multi-seller conduits administered by the company is that , in the event of defaulted assets in excess of the transaction-specific credit enhancement described above , any losses in each conduit are allocated in the following order : 2022 subordinate loss note holders 2022 the company 2022 the commercial paper investors the company , along with third parties , also provides the conduits with two forms of liquidity agreements that are used to provide funding to the conduits in the event of a market disruption , among other events .
each asset of the conduit is supported by a transaction-specific liquidity facility in the form of an asset purchase agreement ( apa ) .
under the apa , the company has agreed to purchase non-defaulted eligible receivables from the conduit at par .
any assets purchased under the apa are subject to increased pricing .
the apa is not designed to provide credit support to the conduit , as it generally does not permit the purchase of defaulted or impaired assets and generally reprices the assets purchased to consider potential increased credit risk .
the apa covers all assets in the conduits and is considered in the company 2019s maximum exposure to loss .
in addition , the company provides the conduits with program-wide liquidity in the form of short-term lending commitments .
under these commitments , the company has agreed to lend to the conduits in the event of a short-term disruption in the commercial paper market , subject to specified conditions .
the total notional exposure under the program-wide liquidity agreement is $ 11.3 billion and is considered in the company 2019s maximum exposure to loss .
the company receives fees for providing both types of liquidity agreement and considers these fees to be on fair market terms. |
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dd4b9e324 | flows of the company 2019s subsidiaries , the receipt of dividends and repayments of indebtedness from the company 2019s subsidiaries , compliance with delaware corporate and other laws , compliance with the contractual provisions of debt and other agreements , and other factors .
the company 2019s dividend rate on its common stock is determined by the board of directors on a quarterly basis and takes into consideration , among other factors , current and possible future developments that may affect the company 2019s income and cash flows .
when dividends on common stock are declared , they are typically paid in march , june , september and december .
historically , dividends have been paid quarterly to holders of record less than 30 days prior to the distribution date .
since the dividends on the company 2019s common stock are not cumulative , only declared dividends are paid .
during 2018 , 2017 and 2016 , the company paid $ 319 million , $ 289 million and $ 261 million in cash dividends , respectively .
the following table provides the per share cash dividends paid for the years ended december 31: .
| 2018 | 2017 | 2016
--------- | ------- | ------- | -------
december | $ 0.455 | $ 0.415 | $ 0.375
september | $ 0.455 | $ 0.415 | $ 0.375
june | $ 0.455 | $ 0.415 | $ 0.375
march | $ 0.415 | $ 0.375 | $ 0.34
on december 7 , 2018 , the company 2019s board of directors declared a quarterly cash dividend payment of $ 0.455 per share payable on march 1 , 2019 , to shareholders of record as of february 7 , 2019 .
equity forward transaction see note 4 2014acquisitions and divestitures for information regarding the forward sale agreements entered into by the company on april 11 , 2018 , and the subsequent settlement of these agreements on june 7 , 2018 .
regulatory restrictions the issuance of long-term debt or equity securities by the company or american water capital corp .
( 201cawcc 201d ) , the company 2019s wholly owned financing subsidiary , does not require authorization of any state puc if no guarantee or pledge of the regulated subsidiaries is utilized .
however , state puc authorization is required to issue long-term debt at most of the company 2019s regulated subsidiaries .
the company 2019s regulated subsidiaries normally obtain the required approvals on a periodic basis to cover their anticipated financing needs for a period of time or in connection with a specific financing .
under applicable law , the company 2019s subsidiaries can pay dividends only from retained , undistributed or current earnings .
a significant loss recorded at a subsidiary may limit the dividends that the subsidiary can distribute to american water .
furthermore , the ability of the company 2019s subsidiaries to pay upstream dividends or repay indebtedness to american water is subject to compliance with applicable regulatory restrictions and financial obligations , including , for example , debt service and preferred and preference stock dividends , as well as applicable corporate , tax and other laws and regulations , and other agreements or covenants made or entered into by the company and its subsidiaries .
note 10 : stock based compensation the company has granted stock options , stock units and dividend equivalents to non-employee directors , officers and other key employees of the company pursuant to the terms of its 2007 omnibus equity compensation plan ( the 201c2007 plan 201d ) .
stock units under the 2007 plan generally vest based on ( i ) continued employment with the company ( 201crsus 201d ) , or ( ii ) continued employment with the company where distribution of the shares is subject to the satisfaction in whole or in part of stated performance-based goals ( 201cpsus 201d ) .
the total aggregate number of shares of common stock that may be issued under the 2007 plan is 15.5 million .
as of |
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dd4be4e3c | comparison of five-year cumulative total return the following graph compares the cumulative total return on citigroup 2019s common stock with the s&p 500 index and the s&p financial index over the five-year period extending through december 31 , 2009 .
the graph assumes that $ 100 was invested on december 31 , 2004 in citigroup 2019s common stock , the s&p 500 index and the s&p financial index and that all dividends were reinvested .
citigroup s&p 500 index s&p financial index 2005 2006 2007 2008 2009 comparison of five-year cumulative total return for the years ended .
december 31 | citigroup | s&p 500 index | s&p financial index
----------- | --------- | ------------- | -------------------
2005 | 104.38 | 104.83 | 106.30
2006 | 124.02 | 121.20 | 126.41
2007 | 70.36 | 127.85 | 103.47
2008 | 18.71 | 81.12 | 47.36
2009 | 9.26 | 102.15 | 55.27 |
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dd4bf1af6 | asset category target allocation total quoted prices in active markets for identical assets ( level 1 ) significant observable inputs ( level 2 ) significant unobservable inputs .
| level 3
--------------------------------------- | ----------
balance as of january 1 2018 | $ 278
actual return on assets | -23 ( 23 )
purchases issuances and settlements net | -25 ( 25 )
balance as of december 31 2018 | $ 230
balance as of january 1 , 2017 .
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$ 140 actual return on assets .
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2 purchases , issuances and settlements , net .
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136 balance as of december 31 , 2017 .
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$ 278 the company 2019s postretirement benefit plans have different levels of funded status and the assets are held under various trusts .
the investments and risk mitigation strategies for the plans are tailored specifically for each trust .
in setting new strategic asset mixes , consideration is given to the likelihood that the selected asset allocation will effectively fund the projected plan liabilities and meet the risk tolerance criteria of the company .
the company periodically updates the long-term , strategic asset allocations for these plans through asset liability studies and uses various analytics to determine the optimal asset allocation .
considerations include plan liability characteristics , liquidity needs , funding requirements , expected rates of return and the distribution of returns .
in 2012 , the company implemented a de-risking strategy for the american water pension plan after conducting an asset-liability study to reduce the volatility of the funded status of the plan .
as part of the de-risking strategy , the company revised the asset allocations to increase the matching characteristics of fixed- income assets relative to liabilities .
the fixed income portion of the portfolio was designed to match the bond- |
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dd4ba28b6 | liquidity and capital resources during the past three years , we had sufficient financial resources to meet our operating requirements , to fund our capital spending , share repurchases and pension plans and to pay increasing dividends to our shareholders .
cash from operating activities was $ 1436 million , $ 1310 million , and $ 1345 million in 2011 , 2010 , and 2009 , respectively .
higher earnings increased cash from operations in 2011 compared to 2010 , but the increase was reduced by cash used to fund an increase in working capital of $ 212 million driven by our sales growth in 2011 .
cash provided by working capital was greater in 2009 than 2010 and that decline was more than offset by the cash from higher 2010 earnings .
operating working capital is a subset of total working capital and represents ( 1 ) trade receivables-net of the allowance for doubtful accounts , plus ( 2 ) inventories on a first-in , first-out ( 201cfifo 201d ) basis , less ( 3 ) trade creditors 2019 liabilities .
see note 3 , 201cworking capital detail 201d under item 8 of this form 10-k for further information related to the components of the company 2019s operating working capital .
we believe operating working capital represents the key components of working capital under the operating control of our businesses .
operating working capital at december 31 , 2011 and 2010 was $ 2.7 billion and $ 2.6 billion , respectively .
a key metric we use to measure our working capital management is operating working capital as a percentage of sales ( fourth quarter sales annualized ) .
( millions ) 2011 2010 operating working capital $ 2739 $ 2595 operating working capital as % ( % ) of sales 19.5% ( 19.5 % ) 19.2% ( 19.2 % ) the change in operating working capital elements , excluding the impact of currency and acquisitions , was an increase of $ 195 million during the year ended december 31 , 2011 .
this increase was the net result of an increase in receivables from customers associated with the 2011 increase in sales and an increase in fifo inventory slightly offset by an increase in trade creditors 2019 liabilities .
trade receivables from customers , net , as a percentage of fourth quarter sales , annualized , for 2011 was 17.9 percent , down slightly from 18.1 percent for 2010 .
days sales outstanding was 66 days in 2011 , level with 2010 .
inventories on a fifo basis as a percentage of fourth quarter sales , annualized , for 2011 was 13.1 percent level with 2010 .
inventory turnover was 5.0 times in 2011 and 4.6 times in 2010 .
total capital spending , including acquisitions , was $ 446 million , $ 341 million and $ 265 million in 2011 , 2010 , and 2009 , respectively .
spending related to modernization and productivity improvements , expansion of existing businesses and environmental control projects was $ 390 million , $ 307 million and $ 239 million in 2011 , 2010 , and 2009 , respectively , and is expected to be in the range of $ 450-$ 550 million during 2012 .
capital spending , excluding acquisitions , as a percentage of sales was 2.6% ( 2.6 % ) , 2.3% ( 2.3 % ) and 2.0% ( 2.0 % ) in 2011 , 2010 and 2009 , respectively .
capital spending related to business acquisitions amounted to $ 56 million , $ 34 million , and $ 26 million in 2011 , 2010 and 2009 , respectively .
we continue to evaluate acquisition opportunities and expect to use cash in 2012 to fund small to mid-sized acquisitions , as part of a balanced deployment of our cash to support growth in earnings .
in january 2012 , the company closed the previously announced acquisitions of colpisa , a colombian producer of automotive oem and refinish coatings , and dyrup , a european architectural coatings company .
the cost of these acquisitions , including assumed debt , was $ 193 million .
dividends paid to shareholders totaled $ 355 million , $ 360 million and $ 353 million in 2011 , 2010 and 2009 , respectively .
ppg has paid uninterrupted annual dividends since 1899 , and 2011 marked the 40th consecutive year of increased annual dividend payments to shareholders .
we did not have a mandatory contribution to our u.s .
defined benefit pension plans in 2011 ; however , we made voluntary contributions to these plans in 2011 totaling $ 50 million .
in 2010 and 2009 , we made voluntary contributions to our u.s .
defined benefit pension plans of $ 250 and $ 360 million ( of which $ 100 million was made in ppg stock ) , respectively .
we expect to make voluntary contributions to our u.s .
defined benefit pension plans in 2012 of up to $ 60 million .
contributions were made to our non-u.s .
defined benefit pension plans of $ 71 million , $ 87 million and $ 90 million ( of which approximately $ 20 million was made in ppg stock ) for 2011 , 2010 and 2009 , respectively , some of which were required by local funding requirements .
we expect to make mandatory contributions to our non-u.s .
plans in 2012 of approximately $ 90 million .
the company 2019s share repurchase activity in 2011 , 2010 and 2009 was 10.2 million shares at a cost of $ 858 million , 8.1 million shares at a cost of $ 586 million and 1.5 million shares at a cost of $ 59 million , respectively .
we expect to make share repurchases in 2012 as part of our cash deployment focused on earnings growth .
the amount of spending will depend on the level of acquisition spending and other uses of cash , but we currently expect to spend in the range of $ 250 million to $ 500 million on share repurchases in 2012 .
we can repurchase about 9 million shares under the current authorization from the board of directors .
26 2011 ppg annual report and form 10-k .
( millions ) | 2011 | 2010 |
---------------------------------------------- | ---------------- | ------ | --------
operating working capital | $ 2739 | $ 2595 |
operating working capital as % ( % ) of sales | 19.5% ( 19.5 % ) | 19.2 | % ( % )
liquidity and capital resources during the past three years , we had sufficient financial resources to meet our operating requirements , to fund our capital spending , share repurchases and pension plans and to pay increasing dividends to our shareholders .
cash from operating activities was $ 1436 million , $ 1310 million , and $ 1345 million in 2011 , 2010 , and 2009 , respectively .
higher earnings increased cash from operations in 2011 compared to 2010 , but the increase was reduced by cash used to fund an increase in working capital of $ 212 million driven by our sales growth in 2011 .
cash provided by working capital was greater in 2009 than 2010 and that decline was more than offset by the cash from higher 2010 earnings .
operating working capital is a subset of total working capital and represents ( 1 ) trade receivables-net of the allowance for doubtful accounts , plus ( 2 ) inventories on a first-in , first-out ( 201cfifo 201d ) basis , less ( 3 ) trade creditors 2019 liabilities .
see note 3 , 201cworking capital detail 201d under item 8 of this form 10-k for further information related to the components of the company 2019s operating working capital .
we believe operating working capital represents the key components of working capital under the operating control of our businesses .
operating working capital at december 31 , 2011 and 2010 was $ 2.7 billion and $ 2.6 billion , respectively .
a key metric we use to measure our working capital management is operating working capital as a percentage of sales ( fourth quarter sales annualized ) .
( millions ) 2011 2010 operating working capital $ 2739 $ 2595 operating working capital as % ( % ) of sales 19.5% ( 19.5 % ) 19.2% ( 19.2 % ) the change in operating working capital elements , excluding the impact of currency and acquisitions , was an increase of $ 195 million during the year ended december 31 , 2011 .
this increase was the net result of an increase in receivables from customers associated with the 2011 increase in sales and an increase in fifo inventory slightly offset by an increase in trade creditors 2019 liabilities .
trade receivables from customers , net , as a percentage of fourth quarter sales , annualized , for 2011 was 17.9 percent , down slightly from 18.1 percent for 2010 .
days sales outstanding was 66 days in 2011 , level with 2010 .
inventories on a fifo basis as a percentage of fourth quarter sales , annualized , for 2011 was 13.1 percent level with 2010 .
inventory turnover was 5.0 times in 2011 and 4.6 times in 2010 .
total capital spending , including acquisitions , was $ 446 million , $ 341 million and $ 265 million in 2011 , 2010 , and 2009 , respectively .
spending related to modernization and productivity improvements , expansion of existing businesses and environmental control projects was $ 390 million , $ 307 million and $ 239 million in 2011 , 2010 , and 2009 , respectively , and is expected to be in the range of $ 450-$ 550 million during 2012 .
capital spending , excluding acquisitions , as a percentage of sales was 2.6% ( 2.6 % ) , 2.3% ( 2.3 % ) and 2.0% ( 2.0 % ) in 2011 , 2010 and 2009 , respectively .
capital spending related to business acquisitions amounted to $ 56 million , $ 34 million , and $ 26 million in 2011 , 2010 and 2009 , respectively .
we continue to evaluate acquisition opportunities and expect to use cash in 2012 to fund small to mid-sized acquisitions , as part of a balanced deployment of our cash to support growth in earnings .
in january 2012 , the company closed the previously announced acquisitions of colpisa , a colombian producer of automotive oem and refinish coatings , and dyrup , a european architectural coatings company .
the cost of these acquisitions , including assumed debt , was $ 193 million .
dividends paid to shareholders totaled $ 355 million , $ 360 million and $ 353 million in 2011 , 2010 and 2009 , respectively .
ppg has paid uninterrupted annual dividends since 1899 , and 2011 marked the 40th consecutive year of increased annual dividend payments to shareholders .
we did not have a mandatory contribution to our u.s .
defined benefit pension plans in 2011 ; however , we made voluntary contributions to these plans in 2011 totaling $ 50 million .
in 2010 and 2009 , we made voluntary contributions to our u.s .
defined benefit pension plans of $ 250 and $ 360 million ( of which $ 100 million was made in ppg stock ) , respectively .
we expect to make voluntary contributions to our u.s .
defined benefit pension plans in 2012 of up to $ 60 million .
contributions were made to our non-u.s .
defined benefit pension plans of $ 71 million , $ 87 million and $ 90 million ( of which approximately $ 20 million was made in ppg stock ) for 2011 , 2010 and 2009 , respectively , some of which were required by local funding requirements .
we expect to make mandatory contributions to our non-u.s .
plans in 2012 of approximately $ 90 million .
the company 2019s share repurchase activity in 2011 , 2010 and 2009 was 10.2 million shares at a cost of $ 858 million , 8.1 million shares at a cost of $ 586 million and 1.5 million shares at a cost of $ 59 million , respectively .
we expect to make share repurchases in 2012 as part of our cash deployment focused on earnings growth .
the amount of spending will depend on the level of acquisition spending and other uses of cash , but we currently expect to spend in the range of $ 250 million to $ 500 million on share repurchases in 2012 .
we can repurchase about 9 million shares under the current authorization from the board of directors .
26 2011 ppg annual report and form 10-k |
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dd4c538a0 | the contracts were valued as of april 1 , 2002 , and an asset and a corresponding gain of $ 127 million , net of income taxes , was recorded as a cumulative effect of a change in accounting principle in the second quarter of 2002 .
the majority of the gain recorded relates to the warrior run contract , as the asset value of the deepwater contract on april 1 , 2002 , was less than $ 1 million .
the warrior run contract qualifies and was designated as a cash flow hedge as defined by sfas no .
133 and hedge accounting is applied for this contract subsequent to april 1 , 2002 .
the contract valuations were performed using current forward electricity and gas price quotes and current market data for other contract variables .
the forward curves used to value the contracts include certain assumptions , including projections of future electricity and gas prices in periods where future prices are not quoted .
fluctuations in market prices and their impact on the assumptions will cause the value of these contracts to change .
such fluctuations will increase the volatility of the company 2019s reported results of operations .
11 .
commitments , contingencies and risks operating leases 2014as of december 31 , 2002 , the company was obligated under long-term non-cancelable operating leases , primarily for office rental and site leases .
rental expense for operating leases , excluding amounts related to the sale/leaseback discussed below , was $ 31 million $ 32 million and $ 13 million in the years ended december 31 , 2002 , 2001and 2000 , respectively , including commitments of businesses classified as discontinued amounting to $ 6 million in 2002 , $ 16 million in 2001 and $ 6 million in 2000 .
the future minimum lease commitments under these leases are as follows ( in millions ) : discontinued total operations .
| total | discontinued operations
---------- | ----- | -----------------------
2003 | $ 30 | $ 4
2004 | 20 | 4
2005 | 15 | 3
2006 | 11 | 1
2007 | 9 | 1
thereafter | 84 | 1
total | $ 169 | $ 14
sale/leaseback 2014in may 1999 , a subsidiary of the company acquired six electric generating stations from new york state electric and gas ( 2018 2018nyseg 2019 2019 ) .
concurrently , the subsidiary sold two of the plants to an unrelated third party for $ 666 million and simultaneously entered into a leasing arrangement with the unrelated party .
this transaction has been accounted for as a sale/leaseback with operating lease treatment .
rental expense was $ 54 million , $ 58 million and $ 54 million in 2002 , 2001 and 2000 , respectively .
future minimum lease commitments are as follows ( in millions ) : in connection with the lease of the two power plants , the subsidiary is required to maintain a rent reserve account equal to the maximum semi-annual payment with respect to the sum of the basic rent ( other then deferrable basic rent ) and fixed charges expected to become due in the immediately succeeding three-year period .
at december 31 , 2002 , 2001 and 2000 , the amount deposited in the rent reserve account approximated |
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dd497c06e | with apb no .
25 .
instead , companies will be required to account for such transactions using a fair-value method and recognize the related expense associated with share-based payments in the statement of operations .
sfas 123r is effective for us as of january 1 , 2006 .
we have historically accounted for share-based payments to employees under apb no .
25 2019s intrinsic value method .
as such , we generally have not recognized compensation expense for options granted to employees .
we will adopt the provisions of sfas 123r under the modified prospective method , in which compensation cost for all share-based payments granted or modified after the effective date is recognized based upon the requirements of sfas 123r , and compensation cost for all awards granted to employees prior to the effective date that are unvested as of the effective date of sfas 123r is recognized based on sfas 123 .
tax benefits will be recognized related to the cost for share-based payments to the extent the equity instrument would ordinarily result in a future tax deduction under existing law .
tax expense will be recognized to write off excess deferred tax assets when the tax deduction upon settlement of a vested option is less than the expense recorded in the statement of operations ( to the extent not offset by prior tax credits for settlements where the tax deduction was greater than the fair value cost ) .
we estimate that we will recognize equity-based compensation expense of approximately $ 35 million to $ 38 million for the year ending december 31 , 2006 .
this amount is subject to revisions as we finalize certain assumptions related to 2006 , including the size and nature of awards and forfeiture rates .
sfas 123r also requires the benefits of tax deductions in excess of recognized compensation cost be reported as a financing cash flow rather than as operating cash flow as was previously required .
we cannot estimate what the future tax benefits will be as the amounts depend on , among other factors , future employee stock option exercises .
due to the our tax loss position , there was no operating cash inflow realized for december 31 , 2005 and 2004 for such excess tax deductions .
in march 2005 , the sec issued staff accounting bulletin ( sab ) no .
107 regarding the staff 2019s interpretation of sfas 123r .
this interpretation provides the staff 2019s views regarding interactions between sfas 123r and certain sec rules and regulations and provides interpretations of the valuation of share-based payments for public companies .
the interpretive guidance is intended to assist companies in applying the provisions of sfas 123r and investors and users of the financial statements in analyzing the information provided .
we will follow the guidance prescribed in sab no .
107 in connection with our adoption of sfas 123r .
information presented pursuant to the indentures of our 7.50% ( 7.50 % ) notes , 7.125% ( 7.125 % ) notes and ati 7.25% ( 7.25 % ) the following table sets forth information that is presented solely to address certain tower cash flow reporting requirements contained in the indentures for our 7.50% ( 7.50 % ) notes , 7.125% ( 7.125 % ) notes and ati 7.25% ( 7.25 % ) notes .
the information contained in note 19 to our consolidated financial statements is also presented to address certain reporting requirements contained in the indenture for our ati 7.25% ( 7.25 % ) notes .
the following table presents tower cash flow , adjusted consolidated cash flow and non-tower cash flow for the company and its restricted subsidiaries , as defined in the indentures for the applicable notes ( in thousands ) : .
tower cash flow for the three months ended december 31 2005 | $ 139590
----------------------------------------------------------------------------- | ------------------
consolidated cash flow for the twelve months ended december 31 2005 | $ 498266
less : tower cash flow for the twelve months ended december 31 2005 | -524804 ( 524804 )
plus : four times tower cash flow for the three months ended december 31 2005 | 558360
adjusted consolidated cash flow for the twelve months ended december 31 2005 | $ 531822
non-tower cash flow for the twelve months ended december 31 2005 | $ -30584 ( 30584 ) |
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dd4b89dc0 | 31mar201122064257 positions which were required to be capitalized .
there are no positions which we anticipate could change materially within the next twelve months .
liquidity and capital resources .
( dollars in thousands ) | fiscal years ended october 1 2010 | fiscal years ended october 2 2009 | fiscal years ended october 3 2008
------------------------------------------------ | --------------------------------- | --------------------------------- | ---------------------------------
cash and cash equivalents at beginning of period | $ 364221 | $ 225104 | $ 241577
net cash provided by operating activities | 222962 | 218805 | 182673
net cash used in investing activities | -95329 ( 95329 ) | -49528 ( 49528 ) | -94959 ( 94959 )
net cash used in financing activities | -38597 ( 38597 ) | -30160 ( 30160 ) | -104187 ( 104187 )
cash and cash equivalents at end of period ( 1 ) | $ 453257 | $ 364221 | $ 225104
( 1 ) does not include restricted cash balances cash flow from operating activities : cash provided from operating activities is net income adjusted for certain non-cash items and changes in certain assets and liabilities .
for fiscal year 2010 we generated $ 223.0 million in cash flow from operations , an increase of $ 4.2 million when compared to the $ 218.8 million generated in fiscal year 2009 .
during fiscal year 2010 , net income increased by $ 42.3 million to $ 137.3 million when compared to fiscal year 2009 .
despite the increase in net income , net cash provided by operating activities remained relatively consistent .
this was primarily due to : 2022 fiscal year 2010 net income included a deferred tax expense of $ 38.5 million compared to a $ 24.9 million deferred tax benefit included in 2009 net income due to the release of the tax valuation allowance in fiscal year 2009 .
2022 during fiscal year 2010 , the company invested in working capital as result of higher business activity .
compared to fiscal year 2009 , accounts receivable , inventory and accounts payable increased by $ 60.9 million , $ 38.8 million and $ 42.9 million , respectively .
cash flow from investing activities : cash flow from investing activities consists primarily of capital expenditures and acquisitions .
we had net cash outflows of $ 95.3 million in fiscal year 2010 , compared to $ 49.5 million in fiscal year 2009 .
the increase is primarily due to an increase of $ 49.8 million in capital expenditures .
we anticipate our capital spending to be consistent in fiscal year 2011 to maintain our projected growth rate .
cash flow from financing activities : cash flows from financing activities consist primarily of cash transactions related to debt and equity .
during fiscal year 2010 , we had net cash outflows of $ 38.6 million , compared to $ 30.2 million in fiscal year 2009 .
during the year we had the following significant transactions : 2022 we retired $ 53.0 million in aggregate principal amount ( carrying value of $ 51.1 million ) of 2007 convertible notes for $ 80.7 million , which included a $ 29.6 million premium paid for the equity component of the instrument .
2022 we received net proceeds from employee stock option exercises of $ 40.5 million in fiscal year 2010 , compared to $ 38.7 million in fiscal year 2009 .
skyworks / 2010 annual report 103 |
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dd4c17f9e | 58 2016 annual report note 12 .
business acquisition bayside business solutions , inc .
effective july 1 , 2015 , the company acquired all of the equity interests of bayside business solutions , an alabama-based company that provides technology solutions and payment processing services primarily for the financial services industry , for $ 10000 paid in cash .
this acquisition was funded using existing operating cash .
the acquisition of bayside business solutions expanded the company 2019s presence in commercial lending within the industry .
management has completed a purchase price allocation of bayside business solutions and its assessment of the fair value of acquired assets and liabilities assumed .
the recognized amounts of identifiable assets acquired and liabilities assumed , based upon their fair values as of july 1 , 2015 are set forth below: .
current assets | $ 1922
------------------------------ | --------------
long-term assets | 253
identifiable intangible assets | 5005
total liabilities assumed | -3279 ( 3279 )
total identifiable net assets | 3901
goodwill | 6099
net assets acquired | $ 10000
the goodwill of $ 6099 arising from this acquisition consists largely of the growth potential , synergies and economies of scale expected from combining the operations of the company with those of bayside business solutions , together with the value of bayside business solutions 2019 assembled workforce .
goodwill from this acquisition has been allocated to our banking systems and services segment .
the goodwill is not expected to be deductible for income tax purposes .
identifiable intangible assets from this acquisition consist of customer relationships of $ 3402 , $ 659 of computer software and other intangible assets of $ 944 .
the weighted average amortization period for acquired customer relationships , acquired computer software , and other intangible assets is 15 years , 5 years , and 20 years , respectively .
current assets were inclusive of cash acquired of $ 1725 .
the fair value of current assets acquired included accounts receivable of $ 178 .
the gross amount of receivables was $ 178 , none of which was expected to be uncollectible .
during fiscal year 2016 , the company incurred $ 55 in costs related to the acquisition of bayside business solutions .
these costs included fees for legal , valuation and other fees .
these costs were included within general and administrative expenses .
the results of bayside business solutions 2019 operations included in the company 2019s consolidated statement of income for the twelve months ended june 30 , 2016 included revenue of $ 4273 and after-tax net income of $ 303 .
the accompanying consolidated statements of income for the fiscal year ended june 30 , 2016 do not include any revenues and expenses related to this acquisition prior to the acquisition date .
the impact of this acquisition was considered immaterial to both the current and prior periods of our consolidated financial statements and pro forma financial information has not been provided .
banno , llc effective march 1 , 2014 , the company acquired all of the equity interests of banno , an iowa-based company that provides web and transaction marketing services with a focus on the mobile medium , for $ 27910 paid in cash .
this acquisition was funded using existing operating cash .
the acquisition of banno expanded the company 2019s presence in online and mobile technologies within the industry .
during fiscal year 2014 , the company incurred $ 30 in costs related to the acquisition of banno .
these costs included fees for legal , valuation and other fees .
these costs were included within general and administrative expenses .
the results of banno's operations included in the company's consolidated statements of income for the year ended june 30 , 2016 included revenue of $ 6393 and after-tax net loss of $ 1289 .
for the year ended june 30 , 2015 , our consolidated statements of income included revenue of $ 4175 and after-tax net loss of $ 1784 attributable to banno .
the results of banno 2019s operations included in the company 2019s consolidated statement of operations from the acquisition date to june 30 , 2014 included revenue of $ 848 and after-tax net loss of $ 1121 .
the accompanying consolidated statements of income for the twelve month period ended june 30 , 2016 do not include any revenues and expenses related to this acquisition prior to the acquisition date .
the impact of this acquisition was considered immaterial to both the current and prior periods of our consolidated financial statements and pro forma financial information has not been provided. |
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dd4bcbcf2 | item 6 .
selected financial data the following table represents our selected financial data .
the table should be read in conjunction with item 7 and item 8 of this report .
the table below reflects immaterial error corrections discussed in note 2 : summary of significant accounting policies in item 8. .
( $ in millions except per share amounts ) | year ended december 31 2012 | year ended december 31 2011 | year ended december 31 2010 | year ended december 31 2009 | year ended december 31 2008
------------------------------------------ | --------------------------- | --------------------------- | --------------------------- | --------------------------- | ---------------------------
sales and service revenues | $ 6708 | $ 6575 | $ 6723 | $ 6292 | $ 6189
goodwill impairment | 2014 | 290 | 2014 | 2014 | 2465
operating income ( loss ) | 358 | 100 | 241 | 203 | -2332 ( 2332 )
net earnings ( loss ) | 146 | -100 ( 100 ) | 131 | 119 | -2397 ( 2397 )
total assets | 6392 | 6069 | 5270 | 5097 | 4821
long-term debt ( 1 ) | 1779 | 1830 | 105 | 283 | 283
total long-term obligations | 4341 | 3838 | 1637 | 1708 | 1823
free cash flow ( 2 ) | 170 | 331 | 168 | -269 ( 269 ) | 121
dividends declared per share | $ 0.10 | $ 2014 | $ 2014 | $ 2014 | $ 2014
basic earnings ( loss ) per share ( 3 ) | $ 2.96 | $ -2.05 ( 2.05 ) | $ 2.68 | $ 2.44 | $ -49.14 ( 49.14 )
diluted earnings ( loss ) per share ( 3 ) | $ 2.91 | $ -2.05 ( 2.05 ) | $ 2.68 | $ 2.44 | $ -49.14 ( 49.14 )
basic earnings ( loss ) per share ( 3 ) $ 2.96 $ ( 2.05 ) $ 2.68 $ 2.44 $ ( 49.14 ) diluted earnings ( loss ) per share ( 3 ) $ 2.91 $ ( 2.05 ) $ 2.68 $ 2.44 $ ( 49.14 ) ( 1 ) long-term debt does not include amounts payable to our former parent as of and before december 31 , 2010 , as these amounts were due upon demand and included in current liabilities .
( 2 ) free cash flow is a non-gaap financial measure and represents cash from operating activities less capital expenditures .
see liquidity and capital resources in item 7 for more information on this measure .
( 3 ) on march 30 , 2011 , the record date of the stock distribution associated with the spin-off from northrop grumman , approximately 48.8 million shares of $ 0.01 par value hii common stock were distributed to northrop grumman stockholders .
this share amount was utilized for the calculation of basic and diluted earnings ( loss ) per share for the three months ended march 31 , 2011 , and all prior periods , as no common stock of the company existed prior to march 30 , 2011 , and the impact of dilutive securities in the three month period ended march 31 , 2011 , was not meaningful. |
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dd4c5f894 | item 2 .
properties a summary of our significant locations at december 31 , 2007 is shown in the following table .
all facilities are leased , except for 166000 square feet of our office in alpharetta , georgia .
square footage amounts are net of space that has been sublet or part of a facility restructuring. .
location | approximate square footage
------------------------ | --------------------------
alpharetta georgia | 219000
arlington virginia | 196000
jersey city new jersey | 107000
charlotte north carolina | 83000
menlo park california | 79000
sandy utah | 77000
toronto canada | 75000
new york new york | 60000
chicago illinois | 29000
all of our facilities are used by both our retail and institutional segments .
in addition to the significant facilities above , we also lease all of our 27 e*trade financial branches , ranging in space from 2500 to 13000 square feet .
all other leased facilities with space of less than 25000 square feet are not listed by location .
we believe our facilities space is adequate to meet our needs in 2008 .
item 3 .
legal proceedings in june 2002 , the company acquired from marketxt holdings , inc .
( formerly known as 201ctradescape corporation 201d ) the following entities : tradescape securities , llc ; tradescape technologies , llc ; and momentum securities , llc .
disputes subsequently arose between the parties regarding the responsibility for liabilities that first became known to the company after the sale .
on april 8 , 2004 , marketxt filed a complaint in the united states district court for the southern district of new york against the company , certain of its officers and directors , and other third parties , including softbank investment corporation ( 201csbi 201d ) and softbank corporation , alleging that defendants were preventing plaintiffs from obtaining certain contingent payments allegedly due , and as a result , claiming damages of $ 1.5 billion .
on april 9 , 2004 , the company filed a complaint in the united states district court for the southern district of new york against certain directors and officers of marketxt seeking declaratory relief and unspecified monetary damages for defendants 2019 fraud in connection with the 2002 sale , including , but not limited to , having presented the company with fraudulent financial statements regarding the condition of momentum securities , llc during the due diligence process .
subsequently , marketxt was placed into bankruptcy , and the company filed an adversary proceeding against marketxt and others in january 2005 , seeking declaratory relief , compensatory and punitive damages , in those chapter 11 bankruptcy proceedings in the united states bankruptcy court for the southern district of new york entitled , 201cin re marketxt holdings corp. , debtor . 201d in that same court , the company filed a separate adversary proceeding against omar amanat in those chapter 7 bankruptcy proceedings entitled , 201cin re amanat , omar shariff . 201d in october 2005 , marketxt answered the company 2019s adversary proceeding and asserted its counterclaims , subsequently amending its claims in 2006 to add a $ 326.0 million claim for 201cpromissory estoppel 201d in which market xt alleged , for the first time , that the company breached a prior promise to purchase the acquired entities in 1999-2000 .
in april 2006 , omar amanat answered the company 2019s separate adversary proceeding against him and asserted his counterclaims .
in separate motions before the bankruptcy court , the company has moved to dismiss certain counterclaims brought by marketxt including those described above , as well as certain counterclaims brought by mr .
amanat .
in a ruling dated september 29 , 2006 , the bankruptcy court in the marketxt case granted the company 2019s motion to dismiss four of the six bases upon which marketxt asserts its fraud claims against the company ; its conversion claim ; and its demand for punitive damages .
in the same ruling , the bankruptcy court denied in its entirety marketxt 2019s competing motion to dismiss the company 2019s claims against it .
on october 26 , 2006 , the bankruptcy court subsequently dismissed marketxt 2019s 201cpromissory estoppel 201d claim .
by order dated december 18 , 2007 , the united states bankruptcy |
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dd4c2f16c | table 20 : pro forma transitional basel iii tier 1 common capital ratio dollars in millions december 31 .
dollars in millions | december 31 2013
----------------------------------------------------------------------------------- | ----------------
basel i tier 1 common capital | $ 28484
less phased-in regulatory capital adjustments: |
basel iii quantitative limits | -228 ( 228 )
accumulated other comprehensive income ( a ) | 39
other intangibles | 381
all other adjustments | 210
estimated basel iii transitional tier 1 common capital ( with 2014 phase-ins ) | $ 28886
basel i risk-weighted assets calculated as applicable for 2014 | 272321
pro forma basel iii transitional tier 1 common capital ratio ( with 2014phase-ins ) | 10.6% ( 10.6 % )
estimated basel iii transitional tier 1 common capital ( with 2014 phase-ins ) $ 28886 basel i risk-weighted assets calculated as applicable for 2014 272321 pro forma basel iii transitional tier 1 common capital ratio ( with 2014 phase-ins ) 10.6% ( 10.6 % ) ( a ) represents net adjustments related to accumulated other comprehensive income for available for sale securities and pension and other postretirement benefit plans .
pnc utilizes these fully implemented and transitional basel iii capital ratios to assess its capital position , including comparison to similar estimates made by other financial institutions .
these basel iii capital estimates are likely to be impacted by any additional regulatory guidance , continued analysis by pnc as to the application of the rules to pnc , and in the case of ratios calculated using the advanced approaches , the ongoing evolution , validation and regulatory approval of pnc 2019s models integral to the calculation of advanced approaches risk-weighted assets .
the access to and cost of funding for new business initiatives , the ability to undertake new business initiatives including acquisitions , the ability to engage in expanded business activities , the ability to pay dividends or repurchase shares or other capital instruments , the level of deposit insurance costs , and the level and nature of regulatory oversight depend , in large part , on a financial institution 2019s capital strength .
we provide additional information regarding enhanced capital requirements and some of their potential impacts on pnc in item 1 business 2013 supervision and regulation , item 1a risk factors and note 22 regulatory matters in the notes to consolidated financial statements in item 8 of this report .
off-balance sheet arrangements and variable interest entities we engage in a variety of activities that involve unconsolidated entities or that are otherwise not reflected in our consolidated balance sheet that are generally referred to as 201coff-balance sheet arrangements . 201d additional information on these types of activities is included in the following sections of this report : 2022 commitments , including contractual obligations and other commitments , included within the risk management section of this item 7 , 2022 note 3 loan sale and servicing activities and variable interest entities in the notes to consolidated financial statements included in item 8 of this report , 2022 note 14 capital securities of subsidiary trusts and perpetual trust securities in the notes to consolidated financial statements included in item 8 of this report , and 2022 note 24 commitments and guarantees in the notes to consolidated financial statements included in item 8 of this report .
pnc consolidates variable interest entities ( vies ) when we are deemed to be the primary beneficiary .
the primary beneficiary of a vie is determined to be the party that meets both of the following criteria : ( i ) has the power to make decisions that most significantly affect the economic performance of the vie ; and ( ii ) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the vie .
a summary of vies , including those that we have consolidated and those in which we hold variable interests but have not consolidated into our financial statements , as of december 31 , 2013 and december 31 , 2012 is included in note 3 in the notes to consolidated financial statements included in item 8 of this report .
trust preferred securities and reit preferred securities we are subject to certain restrictions , including restrictions on dividend payments , in connection with $ 206 million in principal amount of an outstanding junior subordinated debenture associated with $ 200 million of trust preferred securities ( both amounts as of december 31 , 2013 ) that were issued by pnc capital trust c , a subsidiary statutory trust .
generally , if there is ( i ) an event of default under the debenture , ( ii ) pnc elects to defer interest on the debenture , ( iii ) pnc exercises its right to defer payments on the related trust preferred security issued by the statutory trust , or ( iv ) there is a default under pnc 2019s guarantee of such payment obligations , as specified in the applicable governing documents , then pnc would be subject during the period of such default or deferral to restrictions on dividends and other provisions protecting the status of the debenture holders similar to or in some ways more restrictive than those potentially imposed under the exchange agreement with pnc preferred funding trust ii .
see note 14 capital securities of subsidiary trusts and perpetual trust securities in the notes to consolidated financial statements in item 8 of this report for additional information on contractual limitations on dividend payments resulting from securities issued by pnc preferred funding trust i and pnc preferred funding trust ii .
see the liquidity risk management portion of the risk management section of this item 7 for additional information regarding our first quarter 2013 redemption of the reit preferred securities issued by pnc preferred funding trust iii and additional discussion of redemptions of trust preferred securities .
48 the pnc financial services group , inc .
2013 form 10-k |
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dd496d44c | risk and insurance brokerage services .
years ended december 31, | 2009 | 2008 | 2007
------------------------------- | ---------------- | ---------------- | ----------------
segment revenue | $ 6305 | $ 6197 | $ 5918
segment operating income | 900 | 846 | 954
segment operating income margin | 14.3% ( 14.3 % ) | 13.7% ( 13.7 % ) | 16.1% ( 16.1 % )
during 2009 we continued to see a soft market , which began in 2007 , in our retail brokerage product line .
in 2007 , we experienced a soft market in many business lines and in many geographic areas .
in a 2018 2018soft market , 2019 2019 premium rates flatten or decrease , along with commission revenues , due to increased competition for market share among insurance carriers or increased underwriting capacity .
changes in premiums have a direct and potentially material impact on the insurance brokerage industry , as commission revenues are generally based on a percentage of the premiums paid by insureds .
prices fell throughout 2007 , with the greatest declines seen in large and middle-market accounts .
prices continued to decline during 2008 , although the rate of decline slowed toward the end of the year .
in our reinsurance brokerage product line , pricing overall during 2009 was also down , although during a portion of the year it was flat to up slightly .
additionally , beginning in late 2008 and continuing throughout 2009 , we faced difficult conditions as a result of unprecedented disruptions in the global economy , the repricing of credit risk and the deterioration of the financial markets .
continued volatility and further deterioration in the credit markets have reduced our customers 2019 demand for our retail brokerage and reinsurance brokerage products , which have negatively hurt our operational results .
in addition , overall capacity in the industry could decrease if a significant insurer either fails or withdraws from writing insurance coverages that we offer our clients .
this failure could reduce our revenues and profitability , since we would no longer have access to certain lines and types of insurance .
risk and insurance brokerage services generated approximately 83% ( 83 % ) of our consolidated total revenues in 2009 .
revenues are generated primarily through fees paid by clients , commissions and fees paid by insurance and reinsurance companies , and investment income on funds held on behalf of clients .
our revenues vary from quarter to quarter throughout the year as a result of the timing of our clients 2019 policy renewals , the net effect of new and lost business , the timing of services provided to our clients , and the income we earn on investments , which is heavily influenced by short-term interest rates .
we operate in a highly competitive industry and compete with many retail insurance brokerage and agency firms , as well as with individual brokers , agents , and direct writers of insurance coverage .
specifically , we address the highly specialized product development and risk management needs of commercial enterprises , professional groups , insurance companies , governments , healthcare providers , and non-profit groups , among others ; provide affinity products for professional liability , life , disability income , and personal lines for individuals , associations , and businesses ; provide reinsurance services to insurance and reinsurance companies and other risk assumption entities by acting as brokers or intermediaries on all classes of reinsurance ; provide investment banking products and services , including mergers and acquisitions and other financial advisory services , capital raising , contingent capital financing , insurance-linked securitizations and derivative applications ; provide managing underwriting to independent agents and brokers as well as corporate clients ; provide actuarial , loss prevention , and administrative services to businesses and consumers ; and manage captive insurance companies .
in november 2008 we expanded our product offerings through the merger with benfield , a leading independent reinsurance intermediary .
benfield products have been integrated with our existing reinsurance products in 2009 .
in february 2009 , we completed the sale of the u.s .
operations of cananwill , our premium finance business .
in june and july of 2009 , we entered into agreements with third parties with respect to our |
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dd4bfa78c | 112 / sl green realty corp .
2017 annual report 20 .
commitments and contingencies legal proceedings as of december a031 , 2017 , the company and the operating partnership were not involved in any material litigation nor , to management 2019s knowledge , was any material litigation threat- ened against us or our portfolio which if adversely determined could have a material adverse impact on us .
environmental matters our management believes that the properties are in compliance in all material respects with applicable federal , state and local ordinances and regulations regarding environmental issues .
management is not aware of any environmental liability that it believes would have a materially adverse impact on our financial position , results of operations or cash flows .
management is unaware of any instances in which it would incur significant envi- ronmental cost if any of our properties were sold .
employment agreements we have entered into employment agreements with certain exec- utives , which expire between december a02018 and february a02020 .
the minimum cash-based compensation , including base sal- ary and guaranteed bonus payments , associated with these employment agreements total $ 5.4 a0million for 2018 .
in addition these employment agreements provide for deferred compen- sation awards based on our stock price and which were valued at $ 1.6 a0million on the grant date .
the value of these awards may change based on fluctuations in our stock price .
insurance we maintain 201call-risk 201d property and rental value coverage ( includ- ing coverage regarding the perils of flood , earthquake and terrorism , excluding nuclear , biological , chemical , and radiological terrorism ( 201cnbcr 201d ) ) , within three property insurance programs and liability insurance .
separate property and liability coverage may be purchased on a stand-alone basis for certain assets , such as the development of one vanderbilt .
additionally , our captive insurance company , belmont insurance company , or belmont , pro- vides coverage for nbcr terrorist acts above a specified trigger , although if belmont is required to pay a claim under our insur- ance policies , we would ultimately record the loss to the extent of belmont 2019s required payment .
however , there is no assurance that in the future we will be able to procure coverage at a reasonable cost .
further , if we experience losses that are uninsured or that exceed policy limits , we could lose the capital invested in the damaged properties as well as the anticipated future cash flows from those plan trustees adopted a rehabilitation plan consistent with this requirement .
no surcharges have been paid to the pension plan as of december a031 , 2017 .
for the pension plan years ended june a030 , 2017 , 2016 , and 2015 , the plan received contributions from employers totaling $ 257.8 a0million , $ 249.5 a0million , and $ 221.9 a0million .
our contributions to the pension plan represent less than 5.0% ( 5.0 % ) of total contributions to the plan .
the health plan was established under the terms of collective bargaining agreements between the union , the realty advisory board on labor relations , inc .
and certain other employees .
the health plan provides health and other benefits to eligible participants employed in the building service industry who are covered under collective bargaining agreements , or other writ- ten agreements , with the union .
the health plan is administered by a board of trustees with equal representation by the employ- ers and the union and operates under employer identification number a013-2928869 .
the health plan receives contributions in accordance with collective bargaining agreements or participa- tion agreements .
generally , these agreements provide that the employers contribute to the health plan at a fixed rate on behalf of each covered employee .
for the health plan years ended , june a030 , 2017 , 2016 , and 2015 , the plan received contributions from employers totaling $ 1.3 a0billion , $ 1.2 a0billion and $ 1.1 a0billion , respectively .
our contributions to the health plan represent less than 5.0% ( 5.0 % ) of total contributions to the plan .
contributions we made to the multi-employer plans for the years ended december a031 , 2017 , 2016 and 2015 are included in the table below ( in thousands ) : .
benefit plan | 2017 | 2016 | 2015
------------------------ | ------- | ------- | -------
pension plan | $ 3856 | $ 3979 | $ 2732
health plan | 11426 | 11530 | 8736
other plans | 1463 | 1583 | 5716
total plan contributions | $ 16745 | $ 17092 | $ 17184
401 ( k ) plan in august a01997 , we implemented a 401 ( k ) a0savings/retirement plan , or the 401 ( k ) a0plan , to cover eligible employees of ours , and any designated affiliate .
the 401 ( k ) a0plan permits eligible employees to defer up to 15% ( 15 % ) of their annual compensation , subject to certain limitations imposed by the code .
the employees 2019 elective deferrals are immediately vested and non-forfeitable upon contribution to the 401 ( k ) a0plan .
during a02003 , we amended our 401 ( k ) a0plan to pro- vide for discretionary matching contributions only .
for 2017 , 2016 and 2015 , a matching contribution equal to 50% ( 50 % ) of the first 6% ( 6 % ) of annual compensation was made .
for the year ended december a031 , 2017 , we made a matching contribution of $ 728782 .
for the years ended december a031 , 2016 and 2015 , we made matching contribu- tions of $ 566000 and $ 550000 , respectively. |
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dd4bfde14 | transfer agent and registrar for common stock the transfer agent and registrar for our common stock is : computershare shareowner services llc 480 washington boulevard 29th floor jersey city , new jersey 07310 telephone : ( 877 ) 363-6398 sales of unregistered securities not applicable .
repurchase of equity securities the following table provides information regarding our purchases of our equity securities during the period from october 1 , 2014 to december 31 , 2014 .
total number of shares ( or units ) purchased 1 average price paid per share ( or unit ) 2 total number of shares ( or units ) purchased as part of publicly announced plans or programs 3 maximum number ( or approximate dollar value ) of shares ( or units ) that may yet be purchased under the plans or programs 3 .
| total number ofshares ( or units ) purchased1 | average price paidper share ( or unit ) 2 | total number ofshares ( or units ) purchased as part ofpublicly announcedplans or programs3 | maximum number ( or approximate dollar value ) of shares ( or units ) that mayyet be purchased under theplans or programs3
--------------- | --------------------------------------------- | ----------------------------------------- | ------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
october 1 - 31 | 5854930 | $ 18.93 | 5849517 | $ 159819370
november 1 - 30 | 4266 | $ 20.29 | 2014 | $ 159819370
december 1 - 31 | 826744 | $ 19.67 | 826639 | $ 143559758
total | 6685940 | $ 19.02 | 6676156 |
1 included shares of our common stock , par value $ 0.10 per share , withheld under the terms of grants under employee stock-based compensation plans to offset tax withholding obligations that occurred upon vesting and release of restricted shares ( the 201cwithheld shares 201d ) .
we repurchased 5413 withheld shares in october 2014 , 4266 withheld shares in november 2014 and 105 withheld shares in december 2014 .
2 the average price per share for each of the months in the fiscal quarter and for the three-month period was calculated by dividing the sum of the applicable period of the aggregate value of the tax withholding obligations and the aggregate amount we paid for shares acquired under our stock repurchase program , described in note 5 to the consolidated financial statements , by the sum of the number of withheld shares and the number of shares acquired in our stock repurchase program .
3 in february 2014 , the board authorized a new share repurchase program to repurchase from time to time up to $ 300.0 million , excluding fees , of our common stock ( the 201c2014 share repurchase program 201d ) .
on february 13 , 2015 , we announced that our board had approved a new share repurchase program to repurchase from time to time up to $ 300.0 million , excluding fees , of our common stock .
the new authorization is in addition to any amounts remaining available for repurchase under the 2014 share repurchase program .
there is no expiration date associated with the share repurchase programs. |
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dd4988c1a | american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) at december 31 , 2005 , the company had net federal and state operating loss carryforwards available to reduce future taxable income of approximately $ 2.2 billion and $ 2.4 billion , respectively .
if not utilized , the company 2019s net operating loss carryforwards expire as follows ( in thousands ) : .
years ended december 31, | federal | state
------------------------ | --------- | ---------
2006 to 2010 | $ 5248 | $ 469747
2011 to 2015 | 10012 | 272662
2016 to 2020 | 397691 | 777707
2021 to 2025 | 1744552 | 897896
total | $ 2157503 | $ 2418012
sfas no .
109 , 201caccounting for income taxes , 201d requires that companies record a valuation allowance when it is 201cmore likely than not that some portion or all of the deferred tax assets will not be realized . 201d at december 31 , 2005 , the company has provided a valuation allowance of approximately $ 422.4 million , including approximately $ 249.5 million attributable to spectrasite , primarily related to net operating loss and capital loss carryforwards .
approximately $ 237.8 million of the spectrasite valuation allowance was assumed as of the acquisition date .
the balance of the valuation allowance primarily relates to net state deferred tax assets .
the company has not provided a valuation allowance for the remaining deferred tax assets , primarily its federal net operating loss carryforwards , as management believes the company will have sufficient time to realize these federal net operating loss carryforwards during the twenty-year tax carryforward period .
the company intends to recover a portion of its deferred tax asset through its federal income tax refund claims related to the carry back of certain federal net operating losses .
in june 2003 and october 2003 , the company filed federal income tax refund claims with the irs relating to the carry back of $ 380.0 million of net operating losses generated prior to 2003 , of which the company initially anticipated receiving approximately $ 90.0 million .
based on preliminary discussions with tax authorities , the company has revised its estimate of the net realizable value of the federal income tax refund claims and anticipates receiving a refund of approximately $ 65.0 million as a result of these claims by the end of 2006 .
there can be no assurances , however , with respect to the specific amount and timing of any refund .
the recoverability of the company 2019s remaining net deferred tax asset has been assessed utilizing stable state ( no growth ) projections based on its current operations .
the projections show a significant decrease in depreciation and interest expense in the later years of the carryforward period as a result of a significant portion of its assets being fully depreciated during the first fifteen years of the carryforward period and debt repayments reducing interest expense .
accordingly , the recoverability of the net deferred tax asset is not dependent on material improvements to operations , material asset sales or other non-routine transactions .
based on its current outlook of future taxable income during the carryforward period , management believes that the net deferred tax asset will be realized .
the realization of the company 2019s deferred tax assets as of december 31 , 2005 will be dependent upon its ability to generate approximately $ 1.3 billion in taxable income from january 1 , 2006 to december 31 , 2025 .
if the company is unable to generate sufficient taxable income in the future , or carry back losses , as described above , it will be required to reduce its net deferred tax asset through a charge to income tax expense , which would result in a corresponding decrease in stockholders 2019 equity .
from time to time the company is subject to examination by various tax authorities in jurisdictions in which the company has significant business operations .
the company regularly assesses the likelihood of additional assessments in each of the tax jurisdictions resulting from these examinations .
during the year ended |
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dd4bb2f36 | estimated future pension benefit payments for the next ten years under the plan ( in millions ) are as follows : estimated future payments: .
2009 | $ 14.9
----------------- | ------
2010 | 15.9
2011 | 16.2
2012 | 19.2
2013 | 21.9
2014 through 2018 | 142.2
bfi post retirement healthcare plan we acquired obligations under the bfi post retirement healthcare plan as part of our acquisition of allied .
this plan provides continued medical coverage for certain former employees following their retirement , including some employees subject to collective bargaining agreements .
eligibility for this plan is limited to certain of those employees who had ten or more years of service and were age 55 or older as of december 31 , 1998 , and certain employees in california who were hired on or before december 31 , 2005 and who retire on or after age 55 with at least thirty years of service .
liabilities acquired for this plan were $ 1.2 million and $ 1.3 million , respectively , at the acquisition date and at december 31 , 2008 .
multi-employer pension plans we contribute to 25 multi-employer pension plans under collective bargaining agreements covering union- represented employees .
we acquired responsibility for contributions for a portion of these plans as part of our acquisition of allied .
approximately 22% ( 22 % ) of our total current employees are participants in such multi- employer plans .
these plans generally provide retirement benefits to participants based on their service to contributing employers .
we do not administer these multi-employer plans .
in general , these plans are managed by a board of trustees with the unions appointing certain trustees and other contributing employers of the plan appointing certain members .
we generally are not represented on the board of trustees .
we do not have current plan financial information from the plans 2019 administrators , but based on the information available to us , it is possible that some of the multi-employer plans to which we contribute may be underfunded .
the pension protection act , enacted in august 2006 , requires underfunded pension plans to improve their funding ratios within prescribed intervals based on the level of their underfunding .
until the plan trustees develop the funding improvement plans or rehabilitation plans as required by the pension protection act , we are unable to determine the amount of assessments we may be subject to , if any .
accordingly , we cannot determine at this time the impact that the pension protection act may have on our consolidated financial position , results of operations or cash flows .
furthermore , under current law regarding multi-employer benefit plans , a plan 2019s termination , our voluntary withdrawal , or the mass withdrawal of all contributing employers from any under-funded , multi-employer pension plan would require us to make payments to the plan for our proportionate share of the multi- employer plan 2019s unfunded vested liabilities .
it is possible that there may be a mass withdrawal of employers contributing to these plans or plans may terminate in the near future .
we could have adjustments to our estimates for these matters in the near term that could have a material effect on our consolidated financial condition , results of operations or cash flows .
our pension expense for multi-employer plans was $ 21.8 million , $ 18.9 million and $ 17.3 million for the years ended december 31 , 2008 , 2007 and 2006 , respectively .
republic services , inc .
and subsidiaries notes to consolidated financial statements %%transmsg*** transmitting job : p14076 pcn : 133000000 ***%%pcmsg|131 |00027|yes|no|02/28/2009 21:12|0|0|page is valid , no graphics -- color : d| |
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dd4bf84f0 | measurement point december 31 the priceline group nasdaq composite index s&p 500 rdg internet composite .
measurement pointdecember 31 | the priceline group inc . | nasdaqcomposite index | s&p 500index | rdg internetcomposite
---------------------------- | ------------------------- | --------------------- | ------------ | ---------------------
2010 | 100.00 | 100.00 | 100.00 | 100.00
2011 | 117.06 | 100.53 | 102.11 | 102.11
2012 | 155.27 | 116.92 | 118.45 | 122.23
2013 | 290.93 | 166.19 | 156.82 | 199.42
2014 | 285.37 | 188.78 | 178.29 | 195.42
2015 | 319.10 | 199.95 | 180.75 | 267.25 |
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dd4c58f4e | the goldman sachs group , inc .
and subsidiaries notes to consolidated financial statements commercial lending .
the firm 2019s commercial lending commitments are extended to investment-grade and non- investment-grade corporate borrowers .
commitments to investment-grade corporate borrowers are principally used for operating liquidity and general corporate purposes .
the firm also extends lending commitments in connection with contingent acquisition financing and other types of corporate lending as well as commercial real estate financing .
commitments that are extended for contingent acquisition financing are often intended to be short-term in nature , as borrowers often seek to replace them with other funding sources .
sumitomo mitsui financial group , inc .
( smfg ) provides the firm with credit loss protection on certain approved loan commitments ( primarily investment-grade commercial lending commitments ) .
the notional amount of such loan commitments was $ 27.03 billion and $ 27.51 billion as of december 2015 and december 2014 , respectively .
the credit loss protection on loan commitments provided by smfg is generally limited to 95% ( 95 % ) of the first loss the firm realizes on such commitments , up to a maximum of approximately $ 950 million .
in addition , subject to the satisfaction of certain conditions , upon the firm 2019s request , smfg will provide protection for 70% ( 70 % ) of additional losses on such commitments , up to a maximum of $ 1.13 billion , of which $ 768 million of protection had been provided as of both december 2015 and december 2014 .
the firm also uses other financial instruments to mitigate credit risks related to certain commitments not covered by smfg .
these instruments primarily include credit default swaps that reference the same or similar underlying instrument or entity , or credit default swaps that reference a market index .
warehouse financing .
the firm provides financing to clients who warehouse financial assets .
these arrangements are secured by the warehoused assets , primarily consisting of consumer and corporate loans .
contingent and forward starting resale and securities borrowing agreements/forward starting repurchase and secured lending agreements the firm enters into resale and securities borrowing agreements and repurchase and secured lending agreements that settle at a future date , generally within three business days .
the firm also enters into commitments to provide contingent financing to its clients and counterparties through resale agreements .
the firm 2019s funding of these commitments depends on the satisfaction of all contractual conditions to the resale agreement and these commitments can expire unused .
letters of credit the firm has commitments under letters of credit issued by various banks which the firm provides to counterparties in lieu of securities or cash to satisfy various collateral and margin deposit requirements .
investment commitments the firm 2019s investment commitments of $ 6.05 billion and $ 5.16 billion as of december 2015 and december 2014 , respectively , include commitments to invest in private equity , real estate and other assets directly and through funds that the firm raises and manages .
of these amounts , $ 2.86 billion and $ 2.87 billion as of december 2015 and december 2014 , respectively , relate to commitments to invest in funds managed by the firm .
if these commitments are called , they would be funded at market value on the date of investment .
leases the firm has contractual obligations under long-term noncancelable lease agreements for office space expiring on various dates through 2069 .
certain agreements are subject to periodic escalation provisions for increases in real estate taxes and other charges .
the table below presents future minimum rental payments , net of minimum sublease rentals .
$ in millions december 2015 .
$ in millions | as of december 2015
----------------- | -------------------
2016 | $ 317
2017 | 313
2018 | 301
2019 | 258
2020 | 226
2021 - thereafter | 1160
total | $ 2575
rent charged to operating expense was $ 249 million for 2015 , $ 309 million for 2014 and $ 324 million for 2013 .
operating leases include office space held in excess of current requirements .
rent expense relating to space held for growth is included in 201coccupancy . 201d the firm records a liability , based on the fair value of the remaining lease rentals reduced by any potential or existing sublease rentals , for leases where the firm has ceased using the space and management has concluded that the firm will not derive any future economic benefits .
costs to terminate a lease before the end of its term are recognized and measured at fair value on termination .
176 goldman sachs 2015 form 10-k |
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dd4c47190 | notes to consolidated financial statements note 9 .
collateralized agreements and financings collateralized agreements are securities purchased under agreements to resell ( resale agreements or reverse repurchase agreements ) and securities borrowed .
collateralized financings are securities sold under agreements to repurchase ( repurchase agreements ) , securities loaned and other secured financings .
the firm enters into these transactions in order to , among other things , facilitate client activities , invest excess cash , acquire securities to cover short positions and finance certain firm activities .
collateralized agreements and financings are presented on a net-by-counterparty basis when a legal right of setoff exists .
interest on collateralized agreements and collateralized financings is recognized over the life of the transaction and included in 201cinterest income 201d and 201cinterest expense , 201d respectively .
see note 23 for further information about interest income and interest expense .
the table below presents the carrying value of resale and repurchase agreements and securities borrowed and loaned transactions. .
in millions | as of december 2012 | as of december 2011
----------------------------------------------- | ------------------- | -------------------
securities purchased under agreements toresell1 | $ 141334 | $ 187789
securities borrowed2 | 136893 | 153341
securities sold under agreements torepurchase1 | 171807 | 164502
securitiesloaned2 | 13765 | 7182
in millions 2012 2011 securities purchased under agreements to resell 1 $ 141334 $ 187789 securities borrowed 2 136893 153341 securities sold under agreements to repurchase 1 171807 164502 securities loaned 2 13765 7182 1 .
substantially all resale and repurchase agreements are carried at fair value under the fair value option .
see note 8 for further information about the valuation techniques and significant inputs used to determine fair value .
2 .
as of december 2012 and december 2011 , $ 38.40 billion and $ 47.62 billion of securities borrowed , and $ 1.56 billion and $ 107 million of securities loaned were at fair value , respectively .
resale and repurchase agreements a resale agreement is a transaction in which the firm purchases financial instruments from a seller , typically in exchange for cash , and simultaneously enters into an agreement to resell the same or substantially the same financial instruments to the seller at a stated price plus accrued interest at a future date .
a repurchase agreement is a transaction in which the firm sells financial instruments to a buyer , typically in exchange for cash , and simultaneously enters into an agreement to repurchase the same or substantially the same financial instruments from the buyer at a stated price plus accrued interest at a future date .
the financial instruments purchased or sold in resale and repurchase agreements typically include u.s .
government and federal agency , and investment-grade sovereign obligations .
the firm receives financial instruments purchased under resale agreements , makes delivery of financial instruments sold under repurchase agreements , monitors the market value of these financial instruments on a daily basis , and delivers or obtains additional collateral due to changes in the market value of the financial instruments , as appropriate .
for resale agreements , the firm typically requires delivery of collateral with a fair value approximately equal to the carrying value of the relevant assets in the consolidated statements of financial condition .
even though repurchase and resale agreements involve the legal transfer of ownership of financial instruments , they are accounted for as financing arrangements because they require the financial instruments to be repurchased or resold at the maturity of the agreement .
however , 201crepos to maturity 201d are accounted for as sales .
a repo to maturity is a transaction in which the firm transfers a security under an agreement to repurchase the security where the maturity date of the repurchase agreement matches the maturity date of the underlying security .
therefore , the firm effectively no longer has a repurchase obligation and has relinquished control over the underlying security and , accordingly , accounts for the transaction as a sale .
the firm had no repos to maturity outstanding as of december 2012 or december 2011 .
152 goldman sachs 2012 annual report |
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dd4b9710a | global brand concepts american living american living is the first brand developed under the newglobal brand concepts group .
american living is a full lifestyle brand , featuring menswear , womenswear , childrenswear , accessories and home furnishings with a focus on timeless , authentic american classics for every day .
american living is available exclusively at jcpenney in the u.s .
and online at jcp.com .
our wholesale segment our wholesale segment sells our products to leading upscale and certain mid-tier department stores , specialty stores and golf and pro shops , both domestically and internationally .
we have focused on elevating our brand and improving productivity by reducing the number of unproductive doors within department stores in which our products are sold , improving in-store product assortment and presentation , and improving full-price sell-throughs to consumers .
as of march 29 , 2008 , the end of fiscal 2008 , our products were sold through 10806 doors worldwide , and during fiscal 2008 , we invested approximately $ 49 million in shop-within-shops dedicated to our products primarily in domestic and international department stores .
we have also effected selective price increases on basic products and introduced new fashion offerings at higher price points .
department stores are our major wholesale customers in north america .
in europe , our wholesale sales are a varying mix of sales to both department stores and specialty shops , depending on the country .
our collection brands 2014 women 2019s ralph lauren collection and black label and men 2019s purple label collection and black label 2014 are distributed through a limited number of premier fashion retailers .
in addition , we sell excess and out- of-season products through secondary distribution channels , including our retail factory stores .
in japan , our products are distributed primarily through shop-within-shops at premiere department stores .
the mix of business is weighted to polo ralph lauren inmen 2019s andwomen 2019s blue label .
the distribution of men 2019s and women 2019s black label is also expanding through shop-within-shop presentations in top tier department stores across japan .
worldwide distribution channels the following table presents the approximate number of doors by geographic location , in which products distributed by our wholesale segment were sold to consumers as of march 29 , 2008 : location number of doors ( a ) .
location | number of doors ( a )
------------------------ | ---------------------
united states and canada | 8611
europe | 2075
japan | 120
total | 10806
( a ) in asia/pacific ( excluding japan ) , our products are distributed by our licensing partners .
the following department store chains werewholesale customers whose purchases represented more than 10% ( 10 % ) of our worldwide wholesale net sales for the year ended march 29 , 2008 : 2022 macy 2019s , inc .
( formerly known as federated department stores , inc. ) , which represented approximately 24% ( 24 % ) ; and 2022 dillard department stores , inc. , which represented approximately 12% ( 12 % ) .
our product brands are sold primarily through their own sales forces .
our wholesale segment maintains their primary showrooms in new york city .
in addition , we maintain regional showrooms in atlanta , chicago , dallas , los angeles , milan , paris , london , munich , madrid and stockholm. |
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dd4985fd8 | 2022 a financial safeguard package for cleared over-the-counter credit default swap contracts , and 2022 a financial safeguard package for cleared over-the-counter interest rate swap contracts .
in the unlikely event of a payment default by a clearing firm , we would first apply assets of the defaulting clearing firm to satisfy its payment obligation .
these assets include the defaulting firm 2019s guaranty fund contributions , performance bonds and any other available assets , such as assets required for membership and any associated trading rights .
in addition , we would make a demand for payment pursuant to any applicable guarantee provided to us by the parent company of the clearing firm .
thereafter , if the payment default remains unsatisfied , we would use the corporate contributions designated for the respective financial safeguard package .
we would then use guaranty fund contributions of other clearing firms within the respective financial safeguard package and funds collected through an assessment against solvent clearing firms within the respective financial safeguard package to satisfy the deficit .
we maintain a $ 5.0 billion 364-day multi-currency line of credit with a consortium of domestic and international banks to be used in certain situations by cme clearing .
we have the option to request an increase in the line from $ 5.0 billion to $ 7.0 billion .
we may use the proceeds to provide temporary liquidity in the unlikely event of a clearing firm default , in the event of a liquidity constraint or default by a depositary ( custodian of the collateral ) , or in the event of a temporary disruption with the payments systems that would delay payment of settlement variation between us and our clearing firms .
the credit agreement requires us to pledge certain assets to the line of credit custodian prior to drawing on the line of credit .
pledged assets may include clearing firm guaranty fund deposits held by us in the form of u.s .
treasury or agency securities , as well as select money market mutual funds approved for our select interest earning facility ( ief ) programs .
performance bond collateral of a defaulting clearing firm may also be used to secure a draw on the line .
in addition to the 364-day multi- currency line of credit , we also have the option to use our $ 1.8 billion multi-currency revolving senior credit facility to provide liquidity for our clearing house in the unlikely event of default .
aggregate performance bond deposits for clearing firms for all three cme financial safeguard packages was $ 86.8 billion , including $ 5.6 billion of cash performance bond deposits and $ 4.2 billion of letters of credit .
a defaulting firm 2019s performance bond deposits can be used in the event of default of that clearing firm .
the following shows the available assets at december 31 , 2012 in the event of a payment default by a clearing firm for the base financial safeguard package after first utilizing the defaulting firm 2019s available assets : ( in millions ) cme clearing available assets designated corporate contributions for futures and options ( 1 ) .
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$ 100.0 guaranty fund contributions ( 2 ) .
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2899.5 assessment powers ( 3 ) .
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7973.6 minimum total assets available for default ( 4 ) .
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$ 10973.1 ( 1 ) cme clearing designates $ 100.0 million of corporate contributions to satisfy a clearing firm default in the event that the defaulting clearing firm 2019s guaranty contributions and performance bonds do not satisfy the deficit .
( 2 ) guaranty fund contributions of clearing firms include guaranty fund contributions required of clearing firms , but do not include any excess deposits held by us at the direction of clearing firms .
( 3 ) in the event of a clearing firm default , if a loss continues to exist after the utilization of the assets of the defaulted firm , our designated working capital and the non-defaulting clearing firms 2019 guaranty fund contributions , we have the right to assess all non-defaulting clearing members as defined in the rules governing the guaranty fund .
( 4 ) represents the aggregate minimum resources available to satisfy any obligations not met by a defaulting firm subsequent to the liquidation of the defaulting firm 2019s performance bond collateral. .
( in millions ) | cme clearingavailable assets
---------------------------------------------------------------- | ----------------------------
designated corporate contributions for futures and options ( 1 ) | $ 100.0
guaranty fund contributions ( 2 ) | 2899.5
assessment powers ( 3 ) | 7973.6
minimum total assets available for default ( 4 ) | $ 10973.1
2022 a financial safeguard package for cleared over-the-counter credit default swap contracts , and 2022 a financial safeguard package for cleared over-the-counter interest rate swap contracts .
in the unlikely event of a payment default by a clearing firm , we would first apply assets of the defaulting clearing firm to satisfy its payment obligation .
these assets include the defaulting firm 2019s guaranty fund contributions , performance bonds and any other available assets , such as assets required for membership and any associated trading rights .
in addition , we would make a demand for payment pursuant to any applicable guarantee provided to us by the parent company of the clearing firm .
thereafter , if the payment default remains unsatisfied , we would use the corporate contributions designated for the respective financial safeguard package .
we would then use guaranty fund contributions of other clearing firms within the respective financial safeguard package and funds collected through an assessment against solvent clearing firms within the respective financial safeguard package to satisfy the deficit .
we maintain a $ 5.0 billion 364-day multi-currency line of credit with a consortium of domestic and international banks to be used in certain situations by cme clearing .
we have the option to request an increase in the line from $ 5.0 billion to $ 7.0 billion .
we may use the proceeds to provide temporary liquidity in the unlikely event of a clearing firm default , in the event of a liquidity constraint or default by a depositary ( custodian of the collateral ) , or in the event of a temporary disruption with the payments systems that would delay payment of settlement variation between us and our clearing firms .
the credit agreement requires us to pledge certain assets to the line of credit custodian prior to drawing on the line of credit .
pledged assets may include clearing firm guaranty fund deposits held by us in the form of u.s .
treasury or agency securities , as well as select money market mutual funds approved for our select interest earning facility ( ief ) programs .
performance bond collateral of a defaulting clearing firm may also be used to secure a draw on the line .
in addition to the 364-day multi- currency line of credit , we also have the option to use our $ 1.8 billion multi-currency revolving senior credit facility to provide liquidity for our clearing house in the unlikely event of default .
aggregate performance bond deposits for clearing firms for all three cme financial safeguard packages was $ 86.8 billion , including $ 5.6 billion of cash performance bond deposits and $ 4.2 billion of letters of credit .
a defaulting firm 2019s performance bond deposits can be used in the event of default of that clearing firm .
the following shows the available assets at december 31 , 2012 in the event of a payment default by a clearing firm for the base financial safeguard package after first utilizing the defaulting firm 2019s available assets : ( in millions ) cme clearing available assets designated corporate contributions for futures and options ( 1 ) .
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$ 100.0 guaranty fund contributions ( 2 ) .
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2899.5 assessment powers ( 3 ) .
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7973.6 minimum total assets available for default ( 4 ) .
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$ 10973.1 ( 1 ) cme clearing designates $ 100.0 million of corporate contributions to satisfy a clearing firm default in the event that the defaulting clearing firm 2019s guaranty contributions and performance bonds do not satisfy the deficit .
( 2 ) guaranty fund contributions of clearing firms include guaranty fund contributions required of clearing firms , but do not include any excess deposits held by us at the direction of clearing firms .
( 3 ) in the event of a clearing firm default , if a loss continues to exist after the utilization of the assets of the defaulted firm , our designated working capital and the non-defaulting clearing firms 2019 guaranty fund contributions , we have the right to assess all non-defaulting clearing members as defined in the rules governing the guaranty fund .
( 4 ) represents the aggregate minimum resources available to satisfy any obligations not met by a defaulting firm subsequent to the liquidation of the defaulting firm 2019s performance bond collateral. |
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dd4bd8b64 | in connection with our assessment of impairment we recorded gross other-than-temporary impairment of $ 1.15 billion for 2009 , compared to $ 122 million for 2008 .
of the total recorded , $ 227 million related to credit and was recognized in our consolidated statement of income .
the remaining $ 928 million related to factors other than credit , more fully discussed below , and was recognized , net of related taxes , in oci in our consolidated statement of condition .
the $ 227 million was composed of $ 151 million associated with expected credit losses , $ 54 million related to management 2019s decision to sell the impaired securities prior to their recovery in value , and $ 22 million related to adverse changes in the timing of expected future cash flows from the securities .
the majority of the impairment losses related to non-agency securities collateralized by mortgages , for which management concluded had experienced credit losses based on the present value of the securities 2019 expected future cash flows .
these securities are classified as asset-backed securities in the foregoing investment securities tables .
as described in note 1 , management periodically reviews the fair values of investment securities to determine if other-than-temporary impairment has occurred .
this review encompasses all investment securities and includes such quantitative factors as current and expected future interest rates and the length of time that a security 2019s cost basis has exceeded its fair value , and includes investment securities for which we have issuer- specific concerns regardless of quantitative factors .
gains and losses related to investment securities were as follows for the years ended december 31: .
( in millions ) | 2009 | 2008 | 2007
-------------------------------------------------------- | -------------- | ------------ | ------------
gross gains from sales of available-for-sale securities | $ 418 | $ 100 | $ 24
gross losses from sales of available-for-sale securities | -50 ( 50 ) | -32 ( 32 ) | -17 ( 17 )
gross losses from other-than-temporary impairment | -1155 ( 1155 ) | -122 ( 122 ) | -34 ( 34 )
losses not related to credit ( 1 ) | 928 | 2014 | 2014
net impairment losses | -227 ( 227 ) | -122 ( 122 ) | -34 ( 34 )
gains ( losses ) related to investment securities net | $ 141 | $ -54 ( 54 ) | $ -27 ( 27 )
( 1 ) these losses were recognized as a component of oci ; see note 12 .
we conduct periodic reviews to evaluate each security that is impaired .
impairment exists when the current fair value of an individual security is below its amortized cost basis .
for debt securities available for sale and held to maturity , other-than-temporary impairment is recorded in our consolidated statement of income when management intends to sell ( or may be required to sell ) securities before they recover in value , or when management expects the present value of cash flows expected to be collected to be less than the amortized cost of the impaired security ( a credit loss ) .
our review of impaired securities generally includes : 2022 the identification and evaluation of securities that have indications of possible other-than-temporary impairment , such as issuer-specific concerns including deteriorating financial condition or bankruptcy ; 2022 the analysis of expected future cash flows of securities , based on quantitative and qualitative factors ; 2022 the analysis of the collectability of those future cash flows , including information about past events , current conditions and reasonable and supportable forecasts ; 2022 the analysis of individual impaired securities , including consideration of the length of time the security has been in an unrealized loss position and the anticipated recovery period ; 2022 the discussion of evidential matter , including an evaluation of factors or triggers that could cause individual securities to be deemed other-than-temporarily impaired and those that would not support other-than-temporary impairment ; and 2022 documentation of the results of these analyses .
factors considered in determining whether impairment is other than temporary include : 2022 the length of time the security has been impaired; |
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dd4bbd6ac | item 7a .
quantitative and qualitative disclosures about market risk ( amounts in millions ) in the normal course of business , we are exposed to market risks related to interest rates , foreign currency rates and certain balance sheet items .
from time to time , we use derivative instruments , pursuant to established guidelines and policies , to manage some portion of these risks .
derivative instruments utilized in our hedging activities are viewed as risk management tools and are not used for trading or speculative purposes .
interest rates our exposure to market risk for changes in interest rates relates primarily to the fair market value and cash flows of our debt obligations .
the majority of our debt ( approximately 89% ( 89 % ) and 93% ( 93 % ) as of december 31 , 2013 and 2012 , respectively ) bears interest at fixed rates .
we do have debt with variable interest rates , but a 10% ( 10 % ) increase or decrease in interest rates would not be material to our interest expense or cash flows .
the fair market value of our debt is sensitive to changes in interest rates , and the impact of a 10% ( 10 % ) change in interest rates is summarized below .
increase/ ( decrease ) in fair market value as of december 31 , 10% ( 10 % ) increase in interest rates 10% ( 10 % ) decrease in interest rates .
as of december 31, | increase/ ( decrease ) in fair market value 10% ( 10 % ) increasein interest rates | increase/ ( decrease ) in fair market value 10% ( 10 % ) decreasein interest rates
------------------ | ---------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------
2013 | $ -26.9 ( 26.9 ) | $ 27.9
2012 | -27.5 ( 27.5 ) | 28.4
we have used interest rate swaps for risk management purposes to manage our exposure to changes in interest rates .
we do not have any interest rate swaps outstanding as of december 31 , 2013 .
we had $ 1642.1 of cash , cash equivalents and marketable securities as of december 31 , 2013 that we generally invest in conservative , short-term bank deposits or securities .
the interest income generated from these investments is subject to both domestic and foreign interest rate movements .
during 2013 and 2012 , we had interest income of $ 24.7 and $ 29.5 , respectively .
based on our 2013 results , a 100-basis-point increase or decrease in interest rates would affect our interest income by approximately $ 16.4 , assuming that all cash , cash equivalents and marketable securities are impacted in the same manner and balances remain constant from year-end 2013 levels .
foreign currency rates we are subject to translation and transaction risks related to changes in foreign currency exchange rates .
since we report revenues and expenses in u.s .
dollars , changes in exchange rates may either positively or negatively affect our consolidated revenues and expenses ( as expressed in u.s .
dollars ) from foreign operations .
the primary foreign currencies that impacted our results during 2013 were the australian dollar , brazilian real , euro , japanese yen and the south african rand .
based on 2013 exchange rates and operating results , if the u.s .
dollar were to strengthen or weaken by 10% ( 10 % ) , we currently estimate operating income would decrease or increase between 3% ( 3 % ) and 4% ( 4 % ) , assuming that all currencies are impacted in the same manner and our international revenue and expenses remain constant at 2013 levels .
the functional currency of our foreign operations is generally their respective local currency .
assets and liabilities are translated at the exchange rates in effect at the balance sheet date , and revenues and expenses are translated at the average exchange rates during the period presented .
the resulting translation adjustments are recorded as a component of accumulated other comprehensive loss , net of tax , in the stockholders 2019 equity section of our consolidated balance sheets .
our foreign subsidiaries generally collect revenues and pay expenses in their functional currency , mitigating transaction risk .
however , certain subsidiaries may enter into transactions in currencies other than their functional currency .
assets and liabilities denominated in currencies other than the functional currency are susceptible to movements in foreign currency until final settlement .
currency transaction gains or losses primarily arising from transactions in currencies other than the functional currency are included in office and general expenses .
we have not entered into a material amount of foreign currency forward exchange contracts or other derivative financial instruments to hedge the effects of potential adverse fluctuations in foreign currency exchange rates. |
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dd4b973b2 | stock price performance the following graph shows a comparison of the cumulative total return on our common stock , the standard & poor 2019s 500 index and the standard & poor 2019s retail index .
the graph assumes that the value of an investment in our common stock and in each such index was $ 100 on january 3 , 2009 , and that any dividends have been reinvested .
the comparison in the graph below is based solely on historical data and is not intended to forecast the possible future performance of our common stock .
comparison of cumulative total return among advance auto parts , inc. , s&p 500 index and s&p retail index company/index january 3 , january 2 , january 1 , december 31 , december 29 , december 28 .
company/index | january 3 2009 | january 2 2010 | january 1 2011 | december 31 2011 | december 29 2012 | december 28 2013
------------------ | -------------- | -------------- | -------------- | ---------------- | ---------------- | ----------------
advance auto parts | $ 100.00 | $ 119.28 | $ 195.80 | $ 206.86 | $ 213.14 | $ 327.63
s&p 500 index | 100.00 | 119.67 | 134.97 | 134.96 | 150.51 | 197.62
s&p retail index | 100.00 | 141.28 | 174.70 | 179.79 | 219.77 | 321.02 |
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dd4bc8ebc | stock performance graph the following graph provides a comparison of five year cumulative total stockholder returns of teleflex common stock , the standard & poor 2019s ( s&p ) 500 stock index and the s&p 500 healthcare equipment & supply index .
the annual changes for the five-year period shown on the graph are based on the assumption that $ 100 had been invested in teleflex common stock and each index on december 31 , 2010 and that all dividends were reinvested .
market performance .
company / index | 2010 | 2011 | 2012 | 2013 | 2014 | 2015
------------------------------------------- | ---- | ---- | ---- | ---- | ---- | ----
teleflex incorporated | 100 | 117 | 138 | 185 | 229 | 266
s&p 500 index | 100 | 102 | 118 | 157 | 178 | 181
s&p 500 healthcare equipment & supply index | 100 | 99 | 116 | 148 | 187 | 199
s&p 500 healthcare equipment & supply index 100 99 116 148 187 199 |
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dd4c34c0c | uncertain tax positions the following is a reconciliation of the company's beginning and ending amount of uncertain tax positions ( in millions ) : .
| 2015 | 2014
------------------------------------------------------------ | ---------- | ----------
balance at january 1 | $ 191 | $ 164
additions based on tax positions related to the current year | 31 | 31
additions for tax positions of prior years | 53 | 10
reductions for tax positions of prior years | -18 ( 18 ) | -6 ( 6 )
settlements | -32 ( 32 ) | 2014
business combinations | 2014 | 5
lapse of statute of limitations | -5 ( 5 ) | -11 ( 11 )
foreign currency translation | -2 ( 2 ) | -2 ( 2 )
balance at december 31 | $ 218 | $ 191
the company's liability for uncertain tax positions as of december 31 , 2015 , 2014 , and 2013 , includes $ 180 million , $ 154 million , and $ 141 million , respectively , related to amounts that would impact the effective tax rate if recognized .
it is possible that the amount of unrecognized tax benefits may change in the next twelve months ; however , we do not expect the change to have a significant impact on our consolidated statements of income or consolidated balance sheets .
these changes may be the result of settlements of ongoing audits .
at this time , an estimate of the range of the reasonably possible outcomes within the twelve months cannot be made .
the company recognizes interest and penalties related to uncertain tax positions in its provision for income taxes .
the company accrued potential interest and penalties of $ 2 million , $ 4 million , and $ 2 million in 2015 , 2014 , and 2013 , respectively .
the company recorded a liability for interest and penalties of $ 33 million , $ 31 million , and $ 27 million as of december 31 , 2015 , 2014 , and 2013 , respectively .
the company and its subsidiaries file income tax returns in their respective jurisdictions .
the company has substantially concluded all u.s .
federal income tax matters for years through 2007 .
material u.s .
state and local income tax jurisdiction examinations have been concluded for years through 2005 .
the company has concluded income tax examinations in its primary non-u.s .
jurisdictions through 2005 .
9 .
shareholders' equity distributable reserves as a u.k .
incorporated company , the company is required under u.k .
law to have available "distributable reserves" to make share repurchases or pay dividends to shareholders .
distributable reserves may be created through the earnings of the u.k .
parent company and , amongst other methods , through a reduction in share capital approved by the english companies court .
distributable reserves are not linked to a u.s .
gaap reported amount ( e.g. , retained earnings ) .
as of december 31 , 2015 and 2014 , the company had distributable reserves in excess of $ 2.1 billion and $ 4.0 billion , respectively .
ordinary shares in april 2012 , the company's board of directors authorized a share repurchase program under which up to $ 5.0 billion of class a ordinary shares may be repurchased ( "2012 share repurchase program" ) .
in november 2014 , the company's board of directors authorized a new $ 5.0 billion share repurchase program in addition to the existing program ( "2014 share repurchase program" and , together , the "repurchase programs" ) .
under each program , shares may be repurchased through the open market or in privately negotiated transactions , based on prevailing market conditions , funded from available capital .
during 2015 , the company repurchased 16.0 million shares at an average price per share of $ 97.04 for a total cost of $ 1.6 billion under the repurchase programs .
during 2014 , the company repurchased 25.8 million shares at an average price per share of $ 87.18 for a total cost of $ 2.3 billion under the 2012 share repurchase plan .
in august 2015 , the $ 5 billion of class a ordinary shares authorized under the 2012 share repurchase program was exhausted .
at december 31 , 2015 , the remaining authorized amount for share repurchase under the 2014 share repurchase program is $ 4.1 billion .
under the repurchase programs , the company repurchased a total of 78.1 million shares for an aggregate cost of $ 5.9 billion. |
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dd4ba0eee | determined that it will primarily be subject to the ietu in future periods , and as such it has recorded tax expense of approximately $ 20 million in 2007 for the deferred tax effects of the new ietu system .
as of december 31 , 2007 , the company had us federal net operating loss carryforwards of approximately $ 206 million which will begin to expire in 2023 .
of this amount , $ 47 million relates to the pre-acquisition period and is subject to limitation .
the remaining $ 159 million is subject to limitation as a result of the change in stock ownership in may 2006 .
this limitation is not expected to have a material impact on utilization of the net operating loss carryforwards .
the company also had foreign net operating loss carryforwards as of december 31 , 2007 of approximately $ 564 million for canada , germany , mexico and other foreign jurisdictions with various expiration dates .
net operating losses in canada have various carryforward periods and began expiring in 2007 .
net operating losses in germany have no expiration date .
net operating losses in mexico have a ten year carryforward period and begin to expire in 2009 .
however , these losses are not available for use under the new ietu tax regulations in mexico .
as the ietu is the primary system upon which the company will be subject to tax in future periods , no deferred tax asset has been reflected in the balance sheet as of december 31 , 2007 for these income tax loss carryforwards .
the company adopted the provisions of fin 48 effective january 1 , 2007 .
fin 48 clarifies the accounting for income taxes by prescribing a minimum recognition threshold a tax benefit is required to meet before being recognized in the financial statements .
fin 48 also provides guidance on derecognition , measurement , classification , interest and penalties , accounting in interim periods , disclosure and transition .
as a result of the implementation of fin 48 , the company increased retained earnings by $ 14 million and decreased goodwill by $ 2 million .
in addition , certain tax liabilities for unrecognized tax benefits , as well as related potential penalties and interest , were reclassified from current liabilities to long-term liabilities .
liabilities for unrecognized tax benefits as of december 31 , 2007 relate to various us and foreign jurisdictions .
a reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows : year ended december 31 , 2007 ( in $ millions ) .
| year ended december 31 2007 ( in $ millions )
----------------------------------------------- | ---------------------------------------------
balance as of january 1 2007 | 193
increases in tax positions for the current year | 2
increases in tax positions for prior years | 28
decreases in tax positions of prior years | -21 ( 21 )
settlements | -2 ( 2 )
balance as of december 31 2007 | 200
included in the unrecognized tax benefits of $ 200 million as of december 31 , 2007 is $ 56 million of tax benefits that , if recognized , would reduce the company 2019s effective tax rate .
the company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes .
as of december 31 , 2007 , the company has recorded a liability of approximately $ 36 million for interest and penalties .
this amount includes an increase of approximately $ 13 million for the year ended december 31 , 2007 .
the company operates in the united states ( including multiple state jurisdictions ) , germany and approximately 40 other foreign jurisdictions including canada , china , france , mexico and singapore .
examinations are ongoing in a number of those jurisdictions including , most significantly , in germany for the years 2001 to 2004 .
during the quarter ended march 31 , 2007 , the company received final assessments in germany for the prior examination period , 1997 to 2000 .
the effective settlement of those examinations resulted in a reduction to goodwill of approximately $ 42 million with a net expected cash outlay of $ 29 million .
the company 2019s celanese corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) %%transmsg*** transmitting job : y48011 pcn : 122000000 ***%%pcmsg|f-49 |00023|yes|no|02/26/2008 22:07|0|0|page is valid , no graphics -- color : d| |
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dd4c60c58 | intangible asset amortization expense amounted to $ 12 million , $ 4 million and $ 4 million for the years ended december 31 , 2018 , 2017 and 2016 , respectively .
estimated amortization expense for the next five years subsequent to december 31 , 2018 is as follows: .
| amount
---- | ------
2019 | $ 15
2020 | 13
2021 | 11
2022 | 10
2023 | 7
note 9 : shareholders 2019 equity common stock under the dividend reinvestment and direct stock purchase plan ( the 201cdrip 201d ) , shareholders may reinvest cash dividends and purchase additional company common stock , up to certain limits , through the plan administrator without commission fees .
shares purchased by participants through the drip may be newly issued shares , treasury shares , or at the company 2019s election , shares purchased by the plan administrator in the open market or in privately negotiated transactions .
purchases generally will be made and credited to drip accounts once each week .
as of december 31 , 2018 , there were approximately 4.2 million shares available for future issuance under the drip .
anti-dilutive stock repurchase program in february 2015 , the company 2019s board of directors authorized an anti-dilutive stock repurchase program , which allowed the company to purchase up to 10 million shares of its outstanding common stock over an unrestricted period of time .
the company repurchased 0.6 million shares and 0.7 million shares of common stock in the open market at an aggregate cost of $ 45 million and $ 54 million under this program for the years ended december 31 , 2018 and 2017 , respectively .
as of december 31 , 2018 , there were 5.5 million shares of common stock available for purchase under the program. |
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dd4bd2cd2 | american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) basis step-up from corporate restructuring represents the tax effects of increasing the basis for tax purposes of certain of the company 2019s assets in conjunction with its spin-off from american radio systems corporation , its former parent company .
at december 31 , 2006 , the company had net federal and state operating loss carryforwards available to reduce future taxable income of approximately $ 2.1 billion and $ 2.5 billion , respectively .
if not utilized , the company 2019s net operating loss carryforwards expire as follows ( in thousands ) : .
years ended december 31, | federal | state
------------------------ | --------- | ---------
2007 to 2011 | | $ 438967
2012 to 2016 | | 478502
2017 to 2021 | $ 617039 | 1001789
2022 to 2026 | 1476644 | 629354
total | $ 2093683 | $ 2548612
sfas no .
109 , 201caccounting for income taxes , 201d requires that companies record a valuation allowance when it is 201cmore likely than not that some portion or all of the deferred tax assets will not be realized . 201d at december 31 , 2006 , the company has provided a valuation allowance of approximately $ 308.2 million , including approximately $ 153.6 million attributable to spectrasite , primarily related to net operating loss and capital loss carryforwards assumed as of the acquisition date .
the balance of the valuation allowance primarily relates to net state deferred tax assets .
the company has not provided a valuation allowance for the remaining deferred tax assets , primarily its federal net operating loss carryforwards , as management believes the company will have sufficient time to realize these federal net operating loss carryforwards during the twenty-year tax carryforward period .
valuation allowances may be reversed if related deferred tax assets are deemed realizable based on changes in facts and circumstances relevant to the assets 2019 recoverability .
approximately $ 148.3 million of the spectrasite valuation allowances as of december 31 , 2006 will be recorded as a reduction to goodwill if the underlying deferred tax assets are utilized .
the company intends to recover a portion of its deferred tax asset through its federal income tax refund claims related to the carry back of certain federal net operating losses .
in june 2003 and october 2003 , the company filed federal income tax refund claims with the irs relating to the carry back of $ 380.0 million of net operating losses generated prior to 2003 , of which the company initially anticipated receiving approximately $ 90.0 million .
based on preliminary discussions with tax authorities , the company revised its estimate of the net realizable value of the federal income tax refund claims during the year ended december 31 , 2005 , and anticipates receiving a refund of approximately $ 65.0 million , plus interest .
the company expects settlement of this matter in the first half of 2007 , however , there can be no assurances with respect to the timing of any refund .
because of the uncertainty associated with the claim , the company has not recognized any amounts related to interest .
the recoverability of the company 2019s remaining net deferred tax asset has been assessed utilizing stable state ( no growth ) projections based on its current operations .
the projections show a significant decrease in depreciation in the later years of the carryforward period as a result of a significant portion of its assets being fully depreciated during the first fifteen years of the carryforward period .
accordingly , the recoverability of the net deferred tax asset is not dependent on material improvements to operations , material asset sales or other non-routine transactions .
based on its current outlook of future taxable income during the carryforward period , management believes that the net deferred tax asset will be realized .
the realization of the company 2019s deferred tax assets as of december 31 , 2006 will be dependent upon its ability to generate approximately $ 1.4 billion in taxable income from january 1 , 2007 to december 31 , 2026 .
if the company is unable to generate sufficient taxable income in the future , or carry back losses , as described above , it |
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dd4b87e12 | table of contents adobe inc .
notes to consolidated financial statements ( continued ) goodwill , purchased intangibles and other long-lived assets goodwill is assigned to one or more reporting segments on the date of acquisition .
we review our goodwill for impairment annually during our second quarter of each fiscal year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of any one of our reporting units below its respective carrying amount .
in performing our goodwill impairment test , we first perform a qualitative assessment , which requires that we consider events or circumstances including macroeconomic conditions , industry and market considerations , cost factors , overall financial performance , changes in management or key personnel , changes in strategy , changes in customers , changes in the composition or carrying amount of a reporting segment 2019s net assets and changes in our stock price .
if , after assessing the totality of events or circumstances , we determine that it is more likely than not that the fair values of our reporting segments are greater than the carrying amounts , then the quantitative goodwill impairment test is not performed .
if the qualitative assessment indicates that the quantitative analysis should be performed , we then evaluate goodwill for impairment by comparing the fair value of each of our reporting segments to its carrying value , including the associated goodwill .
to determine the fair values , we use the equal weighting of the market approach based on comparable publicly traded companies in similar lines of businesses and the income approach based on estimated discounted future cash flows .
our cash flow assumptions consider historical and forecasted revenue , operating costs and other relevant factors .
we completed our annual goodwill impairment test in the second quarter of fiscal 2018 .
we determined , after performing a qualitative review of each reporting segment , that it is more likely than not that the fair value of each of our reporting segments substantially exceeds the respective carrying amounts .
accordingly , there was no indication of impairment and the quantitative goodwill impairment test was not performed .
we did not identify any events or changes in circumstances since the performance of our annual goodwill impairment test that would require us to perform another goodwill impairment test during the fiscal year .
we amortize intangible assets with finite lives over their estimated useful lives and review them for impairment whenever an impairment indicator exists .
we continually monitor events and changes in circumstances that could indicate carrying amounts of our long-lived assets , including our intangible assets may not be recoverable .
when such events or changes in circumstances occur , we assess recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows .
if the future undiscounted cash flows are less than the carrying amount of these assets , we recognize an impairment loss based on any excess of the carrying amount over the fair value of the assets .
we did not recognize any intangible asset impairment charges in fiscal 2018 , 2017 or 2016 .
during fiscal 2018 , our intangible assets were amortized over their estimated useful lives ranging from 1 to 14 years .
amortization is based on the pattern in which the economic benefits of the intangible asset will be consumed or on a straight-line basis when the consumption pattern is not apparent .
the weighted average useful lives of our intangible assets were as follows : weighted average useful life ( years ) .
| weighted averageuseful life ( years )
------------------------------------ | -------------------------------------
purchased technology | 6
customer contracts and relationships | 9
trademarks | 9
acquired rights to use technology | 10
backlog | 2
other intangibles | 4
income taxes we use the asset and liability method of accounting for income taxes .
under this method , income tax expense is recognized for the amount of taxes payable or refundable for the current year .
in addition , deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities , and for operating losses and tax credit carryforwards .
we record a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not. |
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dd4c34acc | 2322 t .
r o w e p r i c e g r o u p a n n u a l r e p o r t 2 0 1 1 c o n t r a c t u a l o b l i g at i o n s the following table presents a summary of our future obligations ( in a0millions ) under the terms of existing operating leases and other contractual cash purchase commitments at december 31 , 2011 .
other purchase commitments include contractual amounts that will be due for the purchase of goods or services to be used in our operations and may be cancelable at earlier times than those indicated , under certain conditions that may involve termination fees .
because these obligations are generally of a normal recurring nature , we expect that we will fund them from future cash flows from operations .
the information presented does not include operating expenses or capital expenditures that will be committed in the normal course of operations in 2012 and future years .
the information also excludes the $ 4.7 a0million of uncertain tax positions discussed in note 9 to our consolidated financial statements because it is not possible to estimate the time period in which a payment might be made to the tax authorities. .
| total | 2012 | 2013-14 | 2015-16 | later
------------------------------ | ----- | ----- | ------- | ------- | -----
noncancelable operating leases | $ 185 | $ 31 | $ 63 | $ 57 | $ 34
other purchase commitments | 160 | 112 | 38 | 10 | -
total | $ 345 | $ 143 | $ 101 | $ 67 | $ 34
we also have outstanding commitments to fund additional contributions to investment partnerships in which we have an existing investment totaling $ 42.5 a0million at december 31 , 2011 .
c r i t i c a l a c c o u n t i n g p o l i c i e s the preparation of financial statements often requires the selection of specific accounting methods and policies from among several acceptable alternatives .
further , significant estimates and judgments may be required in selecting and applying those methods and policies in the recognition of the assets and liabilities in our balance sheet , the revenues and expenses in our statement of income , and the information that is contained in our significant accounting policies and notes to consolidated financial statements .
making these estimates and judgments requires the analysis of information concerning events that may not yet be complete and of facts and circumstances that may change over time .
accordingly , actual amounts or future results can differ materially from those estimates that we include currently in our consolidated financial statements , significant accounting policies , and notes .
we present those significant accounting policies used in the preparation of our consolidated financial statements as an integral part of those statements within this 2011 annual report .
in the following discussion , we highlight and explain further certain of those policies that are most critical to the preparation and understanding of our financial statements .
other than temporary impairments of available-for-sale securities .
we generally classify our investment holdings in sponsored mutual funds and the debt securities held for investment by our savings bank subsidiary as available-for-sale .
at the end of each quarter , we mark the carrying amount of each investment holding to fair value and recognize an unrealized gain or loss as a component of comprehensive income within the statement of stockholders 2019 equity .
we next review each individual security position that has an unrealized loss or impairment to determine if that impairment is other than temporary .
in determining whether a mutual fund holding is other than temporarily impaired , we consider many factors , including the duration of time it has existed , the severity of the impairment , any subsequent changes in value , and our intent and ability to hold the security for a period of time sufficient for an anticipated recovery in fair value .
subject to the other considerations noted above , with respect to duration of time , we believe a mutual fund holding with an unrealized loss that has persisted daily throughout the six months between quarter-ends is generally presumed to have an other than temporary impairment .
we may also recognize an other than temporary loss of less than six months in our statement of income if the particular circumstances of the underlying investment do not warrant our belief that a near-term recovery is possible .
an impaired debt security held by our savings bank subsidiary is considered to have an other than temporary loss that we will recognize in our statement of income if the impairment is caused by a change in credit quality that affects our ability to recover our amortized cost or if we intend to sell the security or believe that it is more likely than not that we will be required to sell the security before recovering cost .
minor impairments of 5% ( 5 % ) or less are generally considered temporary .
other than temporary impairments of equity method investments .
we evaluate our equity method investments , including our investment in uti , for impairment when events or changes in circumstances indicate that the carrying value of the investment exceeds its fair value , and the decline in fair value is other than temporary .
goodwill .
we internally conduct , manage and report our operations as one investment advisory business .
we do not have distinct operating segments or components that separately constitute a business .
accordingly , we attribute goodwill to a single reportable business segment and reporting unit 2014our investment advisory business .
we evaluate the carrying amount of goodwill in our balance sheet for possible impairment on an annual basis in the third quarter of each year using a fair value approach .
goodwill would be considered impaired whenever our historical carrying amount exceeds the fair value of our investment advisory business .
our annual testing has demonstrated that the fair value of our investment advisory business ( our market capitalization ) exceeds our carrying amount ( our stockholders 2019 equity ) and , therefore , no impairment exists .
should we reach a different conclusion in the future , additional work would be performed to ascertain the amount of the non-cash impairment charge to be recognized .
we must also perform impairment testing at other times if an event or circumstance occurs indicating that it is more likely than not that an impairment has been incurred .
the maximum future impairment of goodwill that we could incur is the amount recognized in our balance sheet , $ 665.7 a0million .
stock options .
we recognize stock option-based compensation expense in our consolidated statement of income using a fair value based method .
fair value methods use a valuation model for shorter-term , market-traded financial instruments to theoretically value stock option grants even though they are not available for trading and are of longer duration .
the black- scholes option-pricing model that we use includes the input of certain variables that are dependent on future expectations , including the expected lives of our options from grant date to exercise date , the volatility of our underlying common shares in the market over that time period , and the rate of dividends that we will pay during that time .
our estimates of these variables are made for the purpose of using the valuation model to determine an expense for each reporting period and are not subsequently adjusted .
unlike most of our expenses , the resulting charge to earnings using a fair value based method is a non-cash charge that is never measured by , or adjusted based on , a cash outflow .
provision for income taxes .
after compensation and related costs , our provision for income taxes on our earnings is our largest annual expense .
we operate in numerous states and countries through our various subsidiaries , and must allocate our income , expenses , and earnings under the various laws and regulations of each of these taxing jurisdictions .
accordingly , our provision for income taxes represents our total estimate of the liability that we have incurred in doing business each year in all of our locations .
annually , we file tax returns that represent our filing positions with each jurisdiction and settle our return liabilities .
each jurisdiction has the right to audit those returns and may take different positions with respect to income and expense allocations and taxable earnings determinations .
from time to time , we may also provide for estimated liabilities associated with uncertain tax return filing positions that are subject to , or in the process of , being audited by various tax authorities .
because the determination of our annual provision is subject to judgments and estimates , it is likely that actual results will vary from those recognized in our financial statements .
as a result , we recognize additions to , or reductions of , income tax expense during a reporting period that pertain to prior period provisions as our estimated liabilities are revised and actual tax returns and tax audits are settled .
we recognize any such prior period adjustment in the discrete quarterly period in which it is determined .
n e w ly i s s u e d b u t n o t y e t a d o p t e d a c c o u n t i n g g u i d a n c e in may 2011 , the fasb issued amended guidance clarifying how to measure and disclose fair value .
we do not believe the adoption of such amended guidance on january 1 , 2012 , will have a significant effect on our consolidated financial statements .
we have also considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our consolidated statements , including that which we have not yet adopted .
we do not believe that any such guidance will have a material effect on our financial position or results of operation. |
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dd4bdc4da | fair value of financial instruments : the company 2019s financial instruments include cash and cash equivalents , marketable securities , accounts receivable , certain investments , accounts payable , borrowings , and derivative contracts .
the fair values of cash and cash equivalents , accounts receivable , accounts payable , and short-term borrowings and current portion of long-term debt approximated carrying values because of the short-term nature of these instruments .
available-for-sale marketable securities and investments , in addition to certain derivative instruments , are recorded at fair values as indicated in the preceding disclosures .
for its long-term debt the company utilized third-party quotes to estimate fair values ( classified as level 2 ) .
information with respect to the carrying amounts and estimated fair values of these financial instruments follow: .
( millions ) | december 31 2012 carrying value | december 31 2012 fair value | december 31 2012 carrying value | fair value
---------------------------------------- | ------------------------------- | --------------------------- | ------------------------------- | ----------
long-term debt excluding current portion | $ 4916 | $ 5363 | $ 4484 | $ 5002
the fair values reflected above consider the terms of the related debt absent the impacts of derivative/hedging activity .
the carrying amount of long-term debt referenced above is impacted by certain fixed-to-floating interest rate swaps that are designated as fair value hedges and by the designation of fixed rate eurobond securities issued by the company as hedging instruments of the company 2019s net investment in its european subsidiaries .
3m 2019s fixed-rate bonds were trading at a premium at december 31 , 2012 and 2011 due to the low interest rates and tightening of 3m 2019s credit spreads. |
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dd4bfd414 | f0b7 free cash flow 2013 cash generated by operating activities totaled $ 6.2 billion , reduced by $ 3.6 billion for cash used in investing activities and a 37% ( 37 % ) increase in dividends paid , yielding free cash flow of $ 1.4 billion .
free cash flow is defined as cash provided by operating activities ( adjusted for the reclassification of our receivables securitization facility ) , less cash used in investing activities and dividends paid .
free cash flow is not considered a financial measure under accounting principles generally accepted in the u.s .
( gaap ) by sec regulation g and item 10 of sec regulation s-k and may not be defined and calculated by other companies in the same manner .
we believe free cash flow is important to management and investors in evaluating our financial performance and measures our ability to generate cash without additional external financings .
free cash flow should be considered in addition to , rather than as a substitute for , cash provided by operating activities .
the following table reconciles cash provided by operating activities ( gaap measure ) to free cash flow ( non-gaap measure ) : millions 2012 2011 2010 .
millions | 2012 | 2011 | 2010
----------------------------------------------------------------------------------------- | -------------- | -------------- | --------------
cash provided by operating activities | $ 6161 | $ 5873 | $ 4105
receivables securitization facility [a] | - | - | 400
cash provided by operating activities adjusted for the receivables securitizationfacility | 6161 | 5873 | 4505
cash used in investing activities | -3633 ( 3633 ) | -3119 ( 3119 ) | -2488 ( 2488 )
dividends paid | -1146 ( 1146 ) | -837 ( 837 ) | -602 ( 602 )
free cash flow | $ 1382 | $ 1917 | $ 1415
[a] effective january 1 , 2010 , a new accounting standard required us to account for receivables transferred under our receivables securitization facility as secured borrowings in our consolidated statements of financial position and as financing activities in our consolidated statements of cash flows .
the receivables securitization facility is included in our free cash flow calculation to adjust cash provided by operating activities as though our receivables securitization facility had been accounted for under the new accounting standard for all periods presented .
2013 outlook f0b7 safety 2013 operating a safe railroad benefits our employees , our customers , our shareholders , and the communities we serve .
we will continue using a multi-faceted approach to safety , utilizing technology , risk assessment , quality control , training and employee engagement , and targeted capital investments .
we will continue using and expanding the deployment of total safety culture throughout our operations , which allows us to identify and implement best practices for employee and operational safety .
derailment prevention and the reduction of grade crossing incidents are critical aspects of our safety programs .
we will continue our efforts to increase rail defect detection ; improve or close crossings ; and educate the public and law enforcement agencies about crossing safety through a combination of our own programs ( including risk assessment strategies ) , various industry programs and local community activities across our network .
f0b7 network operations 2013 we will continue focusing on our six critical initiatives to improve safety , service and productivity during 2013 .
we are seeing solid contributions from reducing variability , continuous improvements , and standard work .
resource agility allows us to respond quickly to changing market conditions and network disruptions from weather or other events .
the railroad continues to benefit from capital investments that allow us to build capacity for growth and harden our infrastructure to reduce failure .
f0b7 fuel prices 2013 uncertainty about the economy makes projections of fuel prices difficult .
we again could see volatile fuel prices during the year , as they are sensitive to global and u.s .
domestic demand , refining capacity , geopolitical events , weather conditions and other factors .
to reduce the impact of fuel price on earnings , we will continue seeking cost recovery from our customers through our fuel surcharge programs and expanding our fuel conservation efforts .
f0b7 capital plan 2013 in 2013 , we plan to make total capital investments of approximately $ 3.6 billion , including expenditures for positive train control ( ptc ) , which may be revised if business conditions warrant or if new laws or regulations affect our ability to generate sufficient returns on these investments .
( see further discussion in this item 7 under liquidity and capital resources 2013 capital plan. ) |
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dd4bfb628 | except for long-term debt , the carrying amounts of the company 2019s other financial instruments are measured at fair value or approximate fair value due to the short-term nature of these instruments .
asset retirement obligations 2014the company records all known asset retirement obligations within other current liabilities for which the liability 2019s fair value can be reasonably estimated , including certain asbestos removal , asset decommissioning and contractual lease restoration obligations .
the changes in the asset retirement obligation carrying amounts during 2011 , 2010 and 2009 were as follows : ( $ in millions ) retirement obligations .
( $ in millions ) | asset retirement obligations
---------------------------------------------------------- | ----------------------------
balance at january 1 2009 | $ 3
accretion expense | 0
payment of asset retirement obligation | 0
balance at december 31 2009 | 3
obligation relating to the future retirement of a facility | 17
accretion expense | 0
payment of asset retirement obligation | 0
balance at december 31 2010 | 20
obligation relating to the future retirement of a facility | 5
accretion expense | 0
payment of asset retirement obligation | 0
balance at december 31 2011 | $ 25
the company also has known conditional asset retirement obligations related to assets currently in use , such as certain asbestos remediation and asset decommissioning activities to be performed in the future , that were not reasonably estimable as of december 31 , 2011 and 2010 , due to insufficient information about the timing and method of settlement of the obligation .
accordingly , the fair value of these obligations has not been recorded in the consolidated financial statements .
environmental remediation and/or asset decommissioning of the relevant facilities may be required when the company ceases to utilize these facilities .
in addition , there may be conditional environmental asset retirement obligations that the company has not yet discovered .
income taxes 2014income tax expense and other income tax related information contained in the financial statements for periods before the spin-off are presented as if the company filed its own tax returns on a stand-alone basis , while similar information for periods after the spin-off reflect the company 2019s positions to be filed in its own tax returns in the future .
income tax expense and other related information are based on the prevailing statutory rates for u.s .
federal income taxes and the composite state income tax rate for the company for each period presented .
state and local income and franchise tax provisions are allocable to contracts in process and , accordingly , are included in general and administrative expenses .
deferred income taxes are recorded when revenues and expenses are recognized in different periods for financial statement purposes than for tax return purposes .
deferred tax asset or liability account balances are calculated at the balance sheet date using current tax laws and rates in effect .
determinations of the expected realizability of deferred tax assets and the need for any valuation allowances against these deferred tax assets were evaluated based upon the stand-alone tax attributes of the company , and an $ 18 million valuation allowance was deemed necessary as of december 31 , 2011 .
no valuation allowance was deemed necessary as of december 31 , 2010 .
uncertain tax positions meeting the more-likely-than-not recognition threshold , based on the merits of the position , are recognized in the financial statements .
we recognize the amount of tax benefit that is greater than 50% ( 50 % ) likely to be realized upon ultimate settlement with the related tax authority .
if a tax position does not meet the minimum statutory threshold to avoid payment of penalties , we recognize an expense for the amount of the penalty in the period the tax position is claimed or expected to be claimed in our tax return .
penalties , if probable and reasonably estimable , are recognized as a component of income tax expense .
we also recognize accrued interest related to uncertain tax positions in income tax expense .
the timing and amount of accrued interest is determined by the applicable tax law associated with an underpayment of income taxes .
see note 12 : income taxes .
under existing gaap , changes in accruals associated with uncertainties are recorded in earnings in the period they are determined. |
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dd4b9aab2 | ( $ 66 million net-of-tax ) as a result of customer credits to be realized by electric customers of entergy louisiana , consistent with the terms of the stipulated settlement in the business combination proceeding .
see note 2 to the financial statements for further discussion of the business combination and customer credits .
results of operations for 2015 also include the sale in december 2015 of the 583 mw rhode island state energy center for a realized gain of $ 154 million ( $ 100 million net-of-tax ) on the sale and the $ 77 million ( $ 47 million net-of-tax ) write-off and regulatory charges to recognize that a portion of the assets associated with the waterford 3 replacement steam generator project is no longer probable of recovery .
see note 14 to the financial statements for further discussion of the rhode island state energy center sale .
see note 2 to the financial statements for further discussion of the waterford 3 replacement steam generator prudence review proceeding .
net revenue utility following is an analysis of the change in net revenue comparing 2016 to 2015 .
amount ( in millions ) .
| amount ( in millions )
----------------------------------------------- | ----------------------
2015 net revenue | $ 5829
retail electric price | 289
louisiana business combination customer credits | 107
volume/weather | 14
louisiana act 55 financing savings obligation | -17 ( 17 )
other | -43 ( 43 )
2016 net revenue | $ 6179
the retail electric price variance is primarily due to : 2022 an increase in base rates at entergy arkansas , as approved by the apsc .
the new rates were effective february 24 , 2016 and began billing with the first billing cycle of april 2016 .
the increase included an interim base rate adjustment surcharge , effective with the first billing cycle of april 2016 , to recover the incremental revenue requirement for the period february 24 , 2016 through march 31 , 2016 .
a significant portion of the increase was related to the purchase of power block 2 of the union power station ; 2022 an increase in the purchased power and capacity acquisition cost recovery rider for entergy new orleans , as approved by the city council , effective with the first billing cycle of march 2016 , primarily related to the purchase of power block 1 of the union power station ; 2022 an increase in formula rate plan revenues for entergy louisiana , implemented with the first billing cycle of march 2016 , to collect the estimated first-year revenue requirement related to the purchase of power blocks 3 and 4 of the union power station ; and 2022 an increase in revenues at entergy mississippi , as approved by the mpsc , effective with the first billing cycle of july 2016 , and an increase in revenues collected through the storm damage rider .
see note 2 to the financial statements for further discussion of the rate proceedings .
see note 14 to the financial statements for discussion of the union power station purchase .
the louisiana business combination customer credits variance is due to a regulatory liability of $ 107 million recorded by entergy in october 2015 as a result of the entergy gulf states louisiana and entergy louisiana business combination .
consistent with the terms of the stipulated settlement in the business combination proceeding , electric customers of entergy louisiana will realize customer credits associated with the business combination ; accordingly , in october 2015 , entergy recorded a regulatory liability of $ 107 million ( $ 66 million net-of-tax ) .
these costs are being entergy corporation and subsidiaries management 2019s financial discussion and analysis |
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dd4c009b6 | shares of common stock issued , in treasury , and outstanding were ( in thousands of shares ) : .
| shares issued | treasury shares | shares outstanding
------------------------------------------------------------------ | ------------- | --------------- | ------------------
balance at december 29 2013 | 376832 | 2014 | 376832
exercise of stock options issuance of other stock awards and other | 178 | 2014 | 178
balance at december 28 2014 | 377010 | 2014 | 377010
exercise of warrants | 20480 | 2014 | 20480
issuance of common stock to sponsors | 221666 | 2014 | 221666
acquisition of kraft foods group inc . | 592898 | 2014 | 592898
exercise of stock options issuance of other stock awards and other | 2338 | -413 ( 413 ) | 1925
balance at january 3 2016 | 1214392 | -413 ( 413 ) | 1213979
exercise of stock options issuance of other stock awards and other | 4555 | -2058 ( 2058 ) | 2497
balance at december 31 2016 | 1218947 | -2471 ( 2471 ) | 1216476
note 13 .
financing arrangements we routinely enter into accounts receivable securitization and factoring programs .
we account for transfers of receivables pursuant to these programs as a sale and remove them from our consolidated balance sheet .
at december 31 , 2016 , our most significant program in place was the u.s .
securitization program , which was amended in may 2016 and originally entered into in october of 2015 .
under the program , we are entitled to receive cash consideration of up to $ 800 million ( which we elected to reduce to $ 500 million , effective february 21 , 2017 ) and a receivable for the remainder of the purchase price ( the 201cdeferred purchase price 201d ) .
this securitization program utilizes a bankruptcy- remote special-purpose entity ( 201cspe 201d ) .
the spe is wholly-owned by a subsidiary of kraft heinz and its sole business consists of the purchase or acceptance , through capital contributions of receivables and related assets , from a kraft heinz subsidiary and subsequent transfer of such receivables and related assets to a bank .
although the spe is included in our consolidated financial statements , it is a separate legal entity with separate creditors who will be entitled , upon its liquidation , to be satisfied out of the spe's assets prior to any assets or value in the spe becoming available to kraft heinz or its subsidiaries .
the assets of the spe are not available to pay creditors of kraft heinz or its subsidiaries .
this program expires in may 2017 .
in addition to the u.s .
securitization program , we have accounts receivable factoring programs denominated in australian dollars , new zealand dollars , british pound sterling , euros , and japanese yen .
under these programs , we generally receive cash consideration up to a certain limit and a receivable for the deferred purchase price .
there is no deferred purchase price associated with the japanese yen contract .
related to these programs , our aggregate cash consideration limit , after applying applicable hold-backs , was $ 245 million u.s .
dollars at december 31 , 2016 .
generally , each of these programs automatically renews annually until terminated by either party .
the cash consideration and carrying amount of receivables removed from the consolidated balance sheets in connection with the above programs were $ 904 million at december 31 , 2016 and $ 267 million at january 3 , 2016 .
the fair value of the deferred purchase price for the programs was $ 129 million at december 31 , 2016 and $ 583 million at january 3 , 2016 .
the deferred purchase price is included in sold receivables on the consolidated balance sheets and had a carrying value which approximated its fair value at december 31 , 2016 and january 3 , 2016 .
the proceeds from these sales are recognized on the consolidated statements of cash flows as a component of operating activities .
we act as servicer for these arrangements and have not recorded any servicing assets or liabilities for these arrangements as of december 31 , 2016 and january 3 , 2016 because they were not material to the financial statements. |
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dd49869a6 | the following table sets forth information concerning increases in the total number of our aap stores during the past five years: .
| 2012 | 2011 | 2010 | 2009 | 2008
---------------- | ---- | -------- | -------- | ---------- | ----------
beginning stores | 3460 | 3369 | 3264 | 3243 | 3153
new stores ( 1 ) | 116 | 95 | 110 | 75 | 109
stores closed | 2014 | -4 ( 4 ) | -5 ( 5 ) | -54 ( 54 ) | -19 ( 19 )
ending stores | 3576 | 3460 | 3369 | 3264 | 3243
( 1 ) does not include stores that opened as relocations of previously existing stores within the same general market area or substantial renovations of stores .
store technology .
our store-based information systems are comprised of a proprietary and integrated point of sale , electronic parts catalog , or epc , and store-level inventory management system ( collectively "store system" ) .
information maintained by our store system is used to formulate pricing , marketing and merchandising strategies and to replenish inventory accurately and rapidly .
our fully integrated system enables our store team members to assist our customers in their parts selection and ordering based on the year , make , model and engine type of their vehicles .
our store system provides real-time inventory tracking at the store level allowing store team members to check the quantity of on-hand inventory for any sku , adjust stock levels for select items for store specific events , automatically process returns and defective merchandise , designate skus for cycle counts and track merchandise transfers .
if a hard-to-find part or accessory is not available at one of our stores , the store system can determine whether the part is carried and in-stock through our hub or pdq ae networks or can be ordered directly from one of our vendors .
available parts and accessories are then ordered electronically from another store , hub , pdq ae or directly from the vendor with immediate confirmation of price , availability and estimated delivery time .
our centrally-based epc data management system enables us to reduce the time needed to ( i ) exchange data with our vendors and ( ii ) catalog and deliver updated , accurate parts information .
we also support our store operations with additional proprietary systems and customer driven labor scheduling capabilities .
all of these systems are tightly integrated and provide real-time , comprehensive information to store personnel , resulting in improved customer service levels , team member productivity and in-stock availability .
we plan to start rolling out a new and enhanced epc in fiscal 2013 which is expected to simplify and improve the customer experience .
among the improvements is a more efficient way to systematically identify add-on sales to ensure our customers have what they need to complete their automotive repair project .
store support center merchandising .
purchasing for virtually all of the merchandise for our stores is handled by our merchandise teams located in three primary locations : 2022 store support center in roanoke , virginia ; 2022 regional office in minneapolis , minnesota ; and 2022 global sourcing office in taipei , taiwan .
our roanoke team is primarily responsible for the parts categories and our minnesota team is primarily responsible for accessories , oil and chemicals .
our global sourcing team works closely with both teams .
in fiscal 2012 , we purchased merchandise from approximately 450 vendors , with no single vendor accounting for more than 9% ( 9 % ) of purchases .
our purchasing strategy involves negotiating agreements with most of our vendors to purchase merchandise over a specified period of time along with other terms , including pricing , payment terms and volume .
the merchandising team has developed strong vendor relationships in the industry and , in a collaborative effort with our vendor partners , utilizes a category management process where we manage the mix of our product offerings to meet customer demand .
we believe this process , which develops a customer-focused business plan for each merchandise category , and our global sourcing operation are critical to improving comparable store sales , gross margin and inventory productivity. |
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dd498628a | conditions and changes to regulatory capital requirements under basel iii capital standards .
beginning in 2014 , other comprehensive income related to available for sale securities ( as well as pension and other post-retirement plans ) are included in pnc 2019s regulatory capital ( subject to a phase-in schedule ) and , therefore will affect pnc 2019s regulatory capital ratios .
for additional information , see the supervision and regulation section in item 1 2013 business and the capital portion of the balance sheet review section in this item 7 of this report .
the duration of investment securities was 2.9 years at december 31 , 2013 .
we estimate that , at december 31 , 2013 , the effective duration of investment securities was 3.0 years for an immediate 50 basis points parallel increase in interest rates and 2.8 years for an immediate 50 basis points parallel decrease in interest rates .
comparable amounts at december 31 , 2012 were 2.3 years and 2.2 years , respectively .
we conduct a quarterly comprehensive security-level impairment assessment on all securities .
for securities in an unrealized loss position , we determine whether the loss represents otti .
for debt securities that we neither intend to sell nor believe we will be required to sell prior to expected recovery , we recognize the credit portion of otti charges in current earnings and include the noncredit portion of otti in net unrealized gains ( losses ) on otti securities on our consolidated statement of comprehensive income and net of tax in accumulated other comprehensive income ( loss ) on our consolidated balance sheet .
during 2013 and 2012 we recognized otti credit losses of $ 16 million and $ 111 million , respectively .
substantially all of the credit losses related to residential mortgage-backed and asset-backed securities collateralized by non-agency residential loans .
if current housing and economic conditions were to deteriorate from current levels , and if market volatility and illiquidity were to deteriorate from current levels , or if market interest rates were to increase or credit spreads were to widen appreciably , the valuation of our investment securities portfolio could be adversely affected and we could incur additional otti credit losses that would impact our consolidated income statement .
additional information regarding our investment securities is included in note 8 investment securities and note 9 fair value in the notes to consolidated financial statements included in item 8 of this report .
loans held for sale table 15 : loans held for sale in millions december 31 december 31 .
in millions | december 312013 | december 312012
---------------------------------------------------- | --------------- | ---------------
commercial mortgages at fair value | $ 586 | $ 772
commercial mortgages at lower of cost or fair value | 281 | 620
total commercial mortgages | 867 | 1392
residential mortgages at fair value | 1315 | 2096
residential mortgages at lower of cost or fair value | 41 | 124
total residential mortgages | 1356 | 2220
other | 32 | 81
total | $ 2255 | $ 3693
for commercial mortgages held for sale designated at fair value , we stopped originating these and continue to pursue opportunities to reduce these positions .
at december 31 , 2013 , the balance relating to these loans was $ 586 million compared to $ 772 million at december 31 , 2012 .
for commercial mortgages held for sale carried at lower of cost or fair value , we sold $ 2.8 billion in 2013 compared to $ 2.2 billion in 2012 .
all of these loan sales were to government agencies .
total gains of $ 79 million were recognized on the valuation and sale of commercial mortgage loans held for sale , net of hedges , in 2013 , and $ 41 million in 2012 .
residential mortgage loan origination volume was $ 15.1 billion in 2013 compared to $ 15.2 billion in 2012 .
substantially all such loans were originated under agency or federal housing administration ( fha ) standards .
we sold $ 14.7 billion of loans and recognized related gains of $ 568 million in 2013 .
the comparable amounts for 2012 were $ 13.8 billion and $ 747 million , respectively .
interest income on loans held for sale was $ 157 million in 2013 and $ 168 million in 2012 .
these amounts are included in other interest income on our consolidated income statement .
additional information regarding our loan sale and servicing activities is included in note 3 loan sales and servicing activities and variable interest entities and note 9 fair value in our notes to consolidated financial statements included in item 8 of this report .
goodwill and other intangible assets goodwill and other intangible assets totaled $ 11.3 billion at december 31 , 2013 and $ 10.9 billion at december 31 , 2012 .
the increase of $ .4 billion was primarily due to additions to and changes in value of mortgage and other loan servicing rights .
see additional information regarding our goodwill and intangible assets in note 10 goodwill and other intangible assets included in the notes to consolidated financial statements in item 8 of this report .
44 the pnc financial services group , inc .
2013 form 10-k |
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dd4c4643e | american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) company is currently unable to estimate the impact of the amount of such changes , if any , to previously recorded uncertain tax positions .
a reconciliation of the beginning and ending amount of unrecognized tax benefits for the year ending december 31 , 2007 is as follows ( in thousands ) : .
balance at january 1 2007 | $ 183953
------------------------------------------------------------- | ------------------
additions based on tax positions related to the current year | 2598
additions for tax positions of prior years | 5412
reductions for tax positions of prior years | -120016 ( 120016 )
cash advance in connection with proposed settlement | -6682 ( 6682 )
settlements with taxing authorities | -5372 ( 5372 )
reductions as a result of the lapse of statute of limitations | -669 ( 669 )
balance as of december 31 2007 | $ 59224
during the year ended december 31 , 2007 , the company recorded penalties and tax-related interest income of $ 2.5 million and interest income from tax refunds of $ 1.5 million for the year ended december 31 , 2007 .
as of december 31 , 2007 and january 1 , 2007 , the total unrecognized tax benefits included in other long-term liabilities in the consolidated balance sheets was $ 29.6 million and $ 34.3 million , respectively .
as of december 31 , 2007 and january 1 , 2007 , the total amount of accrued income tax-related interest and penalties included in other long-term liabilities in the consolidated balance sheets was $ 30.7 million and $ 33.2 million , respectively .
in the fourth quarter of 2007 , the company entered into a tax amnesty program with the mexican tax authority .
as of december 31 , 2007 , the company had met all of the administrative requirements of the program , which enabled the company to recognize certain tax benefits .
this was confirmed by the mexican tax authority on february 5 , 2008 .
these benefits include a reduction of uncertain tax benefits of $ 5.4 million along with penalties and interest of $ 12.5 million related to 2002 , all of which reduced income tax expense .
in connection with the above program , the company paid $ 6.7 million to the mexican tax authority as a settlement offer for other uncertain tax positions related to 2003 and 2004 .
this offer is currently under review by the mexican tax authority ; the company cannot yet determine the specific timing or the amount of any potential settlement .
during 2007 , the statute of limitations on certain unrecognized tax benefits lapsed , which resulted in a $ 0.7 million decrease in the liability for uncertain tax benefits , all of which reduced the income tax provision .
the company files numerous consolidated and separate income tax returns , including u.s .
federal and state tax returns and foreign tax returns in mexico and brazil .
as a result of the company 2019s ability to carry forward federal and state net operating losses , the applicable tax years remain open to examination until three years after the applicable loss carryforwards have been used or expired .
however , the company has completed u.s .
federal income tax examinations for tax years up to and including 2002 .
the company is currently undergoing u.s .
federal income tax examinations for tax years 2004 and 2005 .
additionally , it is subject to examinations in various u.s .
state jurisdictions for certain tax years , and is under examination in brazil for the 2001 through 2006 tax years and mexico for the 2002 tax year .
sfas no .
109 , 201caccounting for income taxes , 201d requires that companies record a valuation allowance when it is 201cmore likely than not that some portion or all of the deferred tax assets will not be realized . 201d at december 31 , 2007 , the company has provided a valuation allowance of approximately $ 88.2 million , including approximately |
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dd4bbc41e | valuation techniques 2013 cash equivalents are mostly comprised of short-term money-market instruments and are valued at cost , which approximates fair value .
u.s .
equity securities and international equity securities categorized as level 1 are traded on active national and international exchanges and are valued at their closing prices on the last trading day of the year .
for u.s .
equity securities and international equity securities not traded on an active exchange , or if the closing price is not available , the trustee obtains indicative quotes from a pricing vendor , broker , or investment manager .
these securities are categorized as level 2 if the custodian obtains corroborated quotes from a pricing vendor or categorized as level 3 if the custodian obtains uncorroborated quotes from a broker or investment manager .
commingled equity funds are public investment vehicles valued using the net asset value ( nav ) provided by the fund manager .
the nav is the total value of the fund divided by the number of shares outstanding .
commingled equity funds are categorized as level 1 if traded at their nav on a nationally recognized securities exchange or categorized as level 2 if the nav is corroborated by observable market data ( e.g. , purchases or sales activity ) .
fixed income securities categorized as level 2 are valued by the trustee using pricing models that use verifiable observable market data ( e.g .
interest rates and yield curves observable at commonly quoted intervals ) , bids provided by brokers or dealers , or quoted prices of securities with similar characteristics .
private equity funds , real estate funds , hedge funds , and fixed income securities categorized as level 3 are valued based on valuation models that include significant unobservable inputs and cannot be corroborated using verifiable observable market data .
valuations for private equity funds and real estate funds are determined by the general partners , while hedge funds are valued by independent administrators .
depending on the nature of the assets , the general partners or independent administrators use both the income and market approaches in their models .
the market approach consists of analyzing market transactions for comparable assets while the income approach uses earnings or the net present value of estimated future cash flows adjusted for liquidity and other risk factors .
commodities categorized as level 1 are traded on an active commodity exchange and are valued at their closing prices on the last trading day of the year .
commodities categorized as level 2 represent shares in a commingled commodity fund valued using the nav , which is corroborated by observable market data .
contributions and expected benefit payments we generally determine funding requirements for our defined benefit pension plans in a manner consistent with cas and internal revenue code rules .
in 2012 , we made contributions of $ 3.6 billion related to our qualified defined benefit pension plans .
we plan to make contributions of approximately $ 1.5 billion related to the qualified defined benefit pension plans in 2013 .
in 2012 , we made contributions of $ 235 million related to our retiree medical and life insurance plans .
we expect no required contributions related to the retiree medical and life insurance plans in 2013 .
the following table presents estimated future benefit payments , which reflect expected future employee service , as of december 31 , 2012 ( in millions ) : .
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 - 2022
---------------------------------------- | ------ | ------ | ------ | ------ | ------ | -----------
qualified defined benefit pension plans | $ 1900 | $ 1970 | $ 2050 | $ 2130 | $ 2220 | $ 12880
retiree medical and life insurance plans | 200 | 210 | 220 | 220 | 220 | 1080
defined contribution plans we maintain a number of defined contribution plans , most with 401 ( k ) features , that cover substantially all of our employees .
under the provisions of our 401 ( k ) plans , we match most employees 2019 eligible contributions at rates specified in the plan documents .
our contributions were $ 380 million in 2012 , $ 378 million in 2011 , and $ 379 million in 2010 , the majority of which were funded in our common stock .
our defined contribution plans held approximately 48.6 million and 52.1 million shares of our common stock as of december 31 , 2012 and 2011. |
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dd4c58b02 | management 2019s discussion and analysis 150 jpmorgan chase & co./2012 annual report wholesale credit portfolio as of december 31 , 2012 , wholesale exposure ( cib , cb and am ) increased by $ 70.9 billion from december 31 , 2011 , primarily driven by increases of $ 52.1 billion in lending- related commitments and $ 30.2 billion in loans due to increased client activity across most regions and most businesses .
the increase in loans was due to growth in cb and am .
these increases were partially offset by a $ 17.5 billion decrease in derivative receivables , primarily related to the decline in the u.s .
dollar , and tightening of credit spreads ; these changes resulted in reductions to interest rate , credit derivative , and foreign exchange balances .
wholesale credit portfolio december 31 , credit exposure nonperforming ( c ) ( d ) .
december 31 , ( in millions ) | december 31 , 2012 | december 31 , 2011 | 2012 | 2011
-------------------------------------------------------------------- | ------------------ | ------------------ | ------------ | ------------
loans retained | $ 306222 | $ 278395 | $ 1434 | $ 2398
loans held-for-sale | 4406 | 2524 | 18 | 110
loans at fair value | 2555 | 2097 | 93 | 73
loans 2013 reported | 313183 | 283016 | 1545 | 2581
derivative receivables | 74983 | 92477 | 239 | 297
receivables from customers and other ( a ) | 23648 | 17461 | 2014 | 2014
total wholesale credit-related assets | 411814 | 392954 | 1784 | 2878
lending-related commitments | 434814 | 382739 | 355 | 865
total wholesale credit exposure | $ 846628 | $ 775693 | $ 2139 | $ 3743
credit portfolio management derivatives notional net ( b ) | $ -27447 ( 27447 ) | $ -26240 ( 26240 ) | $ -25 ( 25 ) | $ -38 ( 38 )
liquid securities and other cash collateral held against derivatives | -13658 ( 13658 ) | -21807 ( 21807 ) | na | na
receivables from customers and other ( a ) 23648 17461 2014 2014 total wholesale credit- related assets 411814 392954 1784 2878 lending-related commitments 434814 382739 355 865 total wholesale credit exposure $ 846628 $ 775693 $ 2139 $ 3743 credit portfolio management derivatives notional , net ( b ) $ ( 27447 ) $ ( 26240 ) $ ( 25 ) $ ( 38 ) liquid securities and other cash collateral held against derivatives ( 13658 ) ( 21807 ) na na ( a ) receivables from customers and other primarily includes margin loans to prime and retail brokerage customers ; these are classified in accrued interest and accounts receivable on the consolidated balance sheets .
( b ) represents the net notional amount of protection purchased and sold through credit derivatives used to manage both performing and nonperforming wholesale credit exposures ; these derivatives do not qualify for hedge accounting under u.s .
gaap .
excludes the synthetic credit portfolio .
for additional information , see credit derivatives on pages 158 2013159 , and note 6 on pages 218 2013227 of this annual report .
( c ) excludes assets acquired in loan satisfactions .
( d ) prior to the first quarter of 2012 , reported amounts had only included defaulted derivatives ; effective in the first quarter of 2012 , reported amounts in all periods include both defaulted derivatives as well as derivatives that have been risk rated as nonperforming. |
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dd4c5ec82 | notes to consolidated financial statements the components of accumulated other comprehensive loss , net of related tax , are as follows: .
( millions ) as of december 31 | 2007 | 2006 | 2005
------------------------------------ | -------------- | ---------------- | ----------------
net derivative gains ( losses ) | $ 24 | $ 15 | $ -11 ( 11 )
net unrealized investment gains | 76 | 73 | 52
net foreign exchange translation | 284 | 118 | -119 ( 119 )
postretirement plans | -1110 ( 1110 ) | -1216 ( 1216 ) | -1077 ( 1077 )
accumulated other comprehensive loss | $ -726 ( 726 ) | $ -1010 ( 1010 ) | $ -1155 ( 1155 )
aon corporation |
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dd4bde83e | page 27 of 100 other liquidity items cash payments required for long-term debt maturities , rental payments under noncancellable operating leases , purchase obligations and other commitments in effect at december 31 , 2010 , are summarized in the following table: .
( $ in millions ) | payments due by period ( a ) total | payments due by period ( a ) less than1 year | payments due by period ( a ) 1-3 years | payments due by period ( a ) 3-5 years | payments due by period ( a ) more than5 years
----------------------------------------- | ---------------------------------- | -------------------------------------------- | -------------------------------------- | -------------------------------------- | ---------------------------------------------
long-term debt including capital leases | $ 2750.1 | $ 34.5 | $ 188.3 | $ 367.1 | $ 2160.2
interest payments on long-term debt ( b ) | 1267.5 | 160.5 | 316.4 | 304.2 | 486.4
operating leases | 93.2 | 31.1 | 37.1 | 16.6 | 8.4
purchase obligations ( c ) | 6586.9 | 2709.5 | 3779.4 | 98.0 | 2212
total payments on contractual obligations | $ 10697.7 | $ 2935.6 | $ 4321.2 | $ 785.9 | $ 2655.0
total payments on contractual obligations $ 10697.7 $ 2935.6 $ 4321.2 $ 785.9 $ 2655.0 ( a ) amounts reported in local currencies have been translated at the year-end 2010 exchange rates .
( b ) for variable rate facilities , amounts are based on interest rates in effect at year end and do not contemplate the effects of hedging instruments .
( c ) the company 2019s purchase obligations include contracted amounts for aluminum , steel and other direct materials .
also included are commitments for purchases of natural gas and electricity , aerospace and technologies contracts and other less significant items .
in cases where variable prices and/or usage are involved , management 2019s best estimates have been used .
depending on the circumstances , early termination of the contracts may or may not result in penalties and , therefore , actual payments could vary significantly .
the table above does not include $ 60.1 million of uncertain tax positions , the timing of which is uncertain .
contributions to the company 2019s defined benefit pension plans , not including the unfunded german plans , are expected to be in the range of $ 30 million in 2011 .
this estimate may change based on changes in the pension protection act and actual plan asset performance , among other factors .
benefit payments related to these plans are expected to be $ 71.4 million , $ 74.0 million , $ 77.1 million , $ 80.3 million and $ 84.9 million for the years ending december 31 , 2011 through 2015 , respectively , and a total of $ 483.1 million for the years 2016 through 2020 .
payments to participants in the unfunded german plans are expected to be between $ 21.8 million ( 20ac16.5 million ) to $ 23.2 million ( 20ac17.5 million ) in each of the years 2011 through 2015 and a total of $ 102.7 million ( 20ac77.5 million ) for the years 2016 through 2020 .
for the u.s .
pension plans in 2011 , we changed our return on asset assumption to 8.00 percent ( from 8.25 percent in 2010 ) and our discount rate assumption to an average of 5.55 percent ( from 6.00 percent in 2010 ) .
based on the changes in assumptions , pension expense in 2011 is anticipated to be relatively flat compared to 2010 .
a reduction of the expected return on pension assets assumption by a quarter of a percentage point would result in an estimated $ 2.9 million increase in the 2011 global pension expense , while a quarter of a percentage point reduction in the discount rate applied to the pension liability would result in an estimated $ 3.5 million of additional pension expense in 2011 .
additional information regarding the company 2019s pension plans is provided in note 14 accompanying the consolidated financial statements within item 8 of this report .
annual cash dividends paid on common stock were 20 cents per share in 2010 , 2009 and 2008 .
total dividends paid were $ 35.8 million in 2010 , $ 37.4 million in 2009 and $ 37.5 million in 2008 .
on january 26 , 2011 , the company 2019s board of directors approved an increase in the quarterly dividends to 7 cents per share .
share repurchases our share repurchases , net of issuances , totaled $ 506.7 million in 2010 , $ 5.1 million in 2009 and $ 299.6 million in 2008 .
on november 2 , 2010 , we acquired 2775408 shares of our publicly held common stock in a private transaction for $ 88.8 million .
on february 17 , 2010 , we entered into an accelerated share repurchase agreement to buy $ 125.0 million of our common shares using cash on hand and available borrowings .
we advanced the $ 125.0 million on february 22 , 2010 , and received 4323598 shares , which represented 90 percent of the total shares as calculated using the previous day 2019s closing price .
the agreement was settled on may 20 , 2010 , and the company received an additional 398206 shares .
net repurchases in 2008 included a $ 31 million settlement on january 7 , 2008 , of a forward contract entered into in december 2007 for the repurchase of 1350000 shares .
from january 1 through february 24 , 2011 , ball repurchased an additional $ 143.3 million of its common stock. |
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dd4bcb00e | cash and cash equivalents cash equivalents include highly-liquid investments with a maturity of three months or less when purchased .
accounts receivable and allowance for doubtful accounts accounts receivable are carried at the invoiced amounts , less an allowance for doubtful accounts , and generally do not bear interest .
the company estimates the balance of allowance for doubtful accounts by analyzing accounts receivable balances by age and applying historical write-off and collection trend rates .
the company 2019s estimates include separately providing for customer receivables based on specific circumstances and credit conditions , and when it is deemed probable that the balance is uncollectible .
account balances are written off against the allowance when it is determined the receivable will not be recovered .
the company 2019s allowance for doubtful accounts balance also includes an allowance for the expected return of products shipped and credits related to pricing or quantities shipped of $ 15 million , $ 14 million and $ 15 million as of december 31 , 2017 , 2016 , and 2015 , respectively .
returns and credit activity is recorded directly to sales as a reduction .
the following table summarizes the activity in the allowance for doubtful accounts: .
( millions ) | 2017 | 2016 | 2015
----------------- | -------------- | -------------- | --------------
beginning balance | $ 67.6 | $ 75.3 | $ 77.5
bad debt expense | 17.1 | 20.1 | 25.8
write-offs | -15.7 ( 15.7 ) | -24.6 ( 24.6 ) | -21.9 ( 21.9 )
other ( a ) | 2.5 | -3.2 ( 3.2 ) | -6.1 ( 6.1 )
ending balance | $ 71.5 | $ 67.6 | $ 75.3
( a ) other amounts are primarily the effects of changes in currency translations and the impact of allowance for returns and credits .
inventory valuations inventories are valued at the lower of cost or net realizable value .
certain u.s .
inventory costs are determined on a last-in , first-out ( 201clifo 201d ) basis .
lifo inventories represented 39% ( 39 % ) and 40% ( 40 % ) of consolidated inventories as of december 31 , 2017 and 2016 , respectively .
all other inventory costs are determined using either the average cost or first-in , first-out ( 201cfifo 201d ) methods .
inventory values at fifo , as shown in note 5 , approximate replacement cost .
property , plant and equipment property , plant and equipment assets are stated at cost .
merchandising and customer equipment consists principally of various dispensing systems for the company 2019s cleaning and sanitizing products , dishwashing machines and process control and monitoring equipment .
certain dispensing systems capitalized by the company are accounted for on a mass asset basis , whereby equipment is capitalized and depreciated as a group and written off when fully depreciated .
the company capitalizes both internal and external costs of development or purchase of computer software for internal use .
costs incurred for data conversion , training and maintenance associated with capitalized software are expensed as incurred .
expenditures for major renewals and improvements , which significantly extend the useful lives of existing plant and equipment , are capitalized and depreciated .
expenditures for repairs and maintenance are charged to expense as incurred .
upon retirement or disposition of plant and equipment , the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in income .
depreciation is charged to operations using the straight-line method over the assets 2019 estimated useful lives ranging from 5 to 40 years for buildings and leasehold improvements , 3 to 20 years for machinery and equipment , 3 to 15 years for merchandising and customer equipment and 3 to 7 years for capitalized software .
the straight-line method of depreciation reflects an appropriate allocation of the cost of the assets to earnings in proportion to the amount of economic benefits obtained by the company in each reporting period .
depreciation expense was $ 586 million , $ 561 million and $ 560 million for 2017 , 2016 and 2015 , respectively. |
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dd4c5c6e4 | 11 .
borrowings short-term borrowings the carrying value of short-term borrowings at december 31 , 2012 and 2011 , included $ 100 million under the 2012 revolving credit facility and $ 100 million under the 2011 revolving credit facility , respectively .
2012 revolving credit facility .
in march 2011 , the company entered into a five-year $ 3.5 billion unsecured revolving credit facility ( the 201c2011 credit facility 201d ) .
in march 2012 , the 2011 credit facility was amended to extend the maturity date by one year to march 2017 and in april 2012 the amount of the aggregate commitment was increased to $ 3.785 billion ( the 201c2012 credit facility 201d ) .
the 2012 credit facility permits the company to request an additional $ 1.0 billion of borrowing capacity , subject to lender credit approval , increasing the overall size of the 2012 credit facility to an aggregate principal amount not to exceed $ 4.785 billion .
interest on borrowings outstanding accrues at a rate based on the applicable london interbank offered rate plus a spread .
the 2012 credit facility requires the company not to exceed a maximum leverage ratio ( ratio of net debt to ebitda , where net debt equals total debt less unrestricted cash ) of 3 to 1 , which was satisfied with a ratio of less than 1 to 1 at december 31 , 2012 .
the 2012 credit facility provides back-up liquidity , funds ongoing working capital for general corporate purposes and funds various investment opportunities .
at december 31 , 2012 , the company had $ 100 million outstanding under this facility with an interest rate of 1.085% ( 1.085 % ) and a maturity during january 2013 .
during january 2013 , the company rolled over the $ 100 million in borrowings at an interest rate of 1.085% ( 1.085 % ) and a maturity during february 2013 .
during february 2013 , the company rolled over the $ 100 million in borrowings at an interest rate of 1.075% ( 1.075 % ) and a maturity during march 2013 .
commercial paper program .
on october 14 , 2009 , blackrock established a commercial paper program ( the 201ccp program 201d ) under which the company could issue unsecured commercial paper notes ( the 201ccp notes 201d ) on a private placement basis up to a maximum aggregate amount outstanding at any time of $ 3.0 billion .
on may 13 , 2011 , blackrock increased the maximum aggregate amount that may be borrowed under the cp program to $ 3.5 billion .
on may 17 , 2012 , blackrock increased the maximum aggregate amount to $ 3.785 billion .
the cp program is currently supported by the 2012 credit facility .
as of december 31 , 2012 and december 31 , 2011 , blackrock had no cp notes outstanding .
long-term borrowings the carrying value and fair value of long-term borrowings estimated using market prices at december 31 , 2012 included the following : ( dollar amounts in millions ) maturity amount unamortized discount carrying value fair value .
( dollar amounts in millions ) | maturity amount | unamortized discount | carrying value | fair value
--------------------------------- | --------------- | -------------------- | -------------- | ----------
floating rate notes due 2013 | $ 750 | $ 2014 | $ 750 | $ 750
3.50% ( 3.50 % ) notes due 2014 | 1000 | 2014 | 1000 | 1058
1.375% ( 1.375 % ) notes due 2015 | 750 | 2014 | 750 | 762
6.25% ( 6.25 % ) notes due 2017 | 700 | -3 ( 3 ) | 697 | 853
5.00% ( 5.00 % ) notes due 2019 | 1000 | -2 ( 2 ) | 998 | 1195
4.25% ( 4.25 % ) notes due 2021 | 750 | -4 ( 4 ) | 746 | 856
3.375% ( 3.375 % ) notes due 2022 | 750 | -4 ( 4 ) | 746 | 801
total long-term borrowings | $ 5700 | $ -13 ( 13 ) | $ 5687 | $ 6275 |
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dd4bbd300 | entergy arkansas , inc .
and subsidiaries management 2019s financial discussion and analysis results of operations net income 2016 compared to 2015 net income increased $ 92.9 million primarily due to higher net revenue and lower other operation and maintenance expenses , partially offset by a higher effective income tax rate and higher depreciation and amortization expenses .
2015 compared to 2014 net income decreased $ 47.1 million primarily due to higher other operation and maintenance expenses , partially offset by higher net revenue .
net revenue 2016 compared to 2015 net revenue consists of operating revenues net of : 1 ) fuel , fuel-related expenses , and gas purchased for resale , 2 ) purchased power expenses , and 3 ) other regulatory charges ( credits ) .
following is an analysis of the change in net revenue comparing 2016 to 2015 .
amount ( in millions ) .
| amount ( in millions )
--------------------- | ----------------------
2015 net revenue | $ 1362.2
retail electric price | 161.5
other | -3.2 ( 3.2 )
2016 net revenue | $ 1520.5
the retail electric price variance is primarily due to an increase in base rates , as approved by the apsc .
the new base rates were effective february 24 , 2016 and began billing with the first billing cycle of april 2016 .
the increase includes an interim base rate adjustment surcharge , effective with the first billing cycle of april 2016 , to recover the incremental revenue requirement for the period february 24 , 2016 through march 31 , 2016 .
a significant portion of the increase is related to the purchase of power block 2 of the union power station .
see note 2 to the financial statements for further discussion of the rate case .
see note 14 to the financial statements for further discussion of the union power station purchase. |
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dd4ba2eba | equity compensation plan information the following table presents the equity securities available for issuance under our equity compensation plans as of december 31 , 2018 .
equity compensation plan information plan category number of securities to be issued upon exercise of outstanding options , warrants and rights ( 1 ) weighted-average exercise price of outstanding options , warrants and rights number of securities remaining available for future issuance under equity compensation plans ( excluding securities reflected in column ( a ) ) ( a ) ( b ) ( c ) equity compensation plans approved by security holders 399165 $ 0.00 3995600 equity compensation plans not approved by security holders ( 2 ) 2014 2014 2014 .
plan category | number of securities to be issued upon exercise of outstanding options warrants and rights ( 1 ) ( a ) ( b ) | weighted-average exercise price of outstanding optionswarrants and rights | number of securities remaining available for future issuance under equity compensation plans ( excluding securitiesreflected in column ( a ) ) ( c )
---------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------
equity compensation plans approved by security holders | 399165 | $ 0.00 | 3995600
equity compensation plans not approved by security holders ( 2 ) | 2014 | 2014 | 2014
total | 399165 | $ 0.00 | 3995600
( 1 ) includes grants made under the huntington ingalls industries , inc .
2012 long-term incentive stock plan ( the "2012 plan" ) , which was approved by our stockholders on may 2 , 2012 , and the huntington ingalls industries , inc .
2011 long-term incentive stock plan ( the "2011 plan" ) , which was approved by the sole stockholder of hii prior to its spin-off from northrop grumman corporation .
of these shares , 27123 were stock rights granted under the 2011 plan .
in addition , this number includes 31697 stock rights , 5051 restricted stock rights , and 335293 restricted performance stock rights granted under the 2012 plan , assuming target performance achievement .
( 2 ) there are no awards made under plans not approved by security holders .
item 13 .
certain relationships and related transactions , and director independence information as to certain relationships and related transactions and director independence will be incorporated herein by reference to the proxy statement for our 2019 annual meeting of stockholders , to be filed within 120 days after the end of the company 2019s fiscal year .
item 14 .
principal accountant fees and services information as to principal accountant fees and services will be incorporated herein by reference to the proxy statement for our 2019 annual meeting of stockholders , to be filed within 120 days after the end of the company 2019s fiscal year. |
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dd4b9687c | nbcuniversal media , llc consolidated statement of comprehensive income .
year ended december 31 ( in millions ) | 2015 | 2014 | 2013
---------------------------------------------------------------------------- | ------------ | ------------ | ------------
net income | $ 3624 | $ 3297 | $ 2122
deferred gains ( losses ) on cash flow hedges net | -21 ( 21 ) | 25 | -5 ( 5 )
employee benefit obligations net | 60 | -106 ( 106 ) | 95
currency translation adjustments net | -121 ( 121 ) | -62 ( 62 ) | -41 ( 41 )
comprehensive income | 3542 | 3154 | 2171
net ( income ) loss attributable to noncontrolling interests | -210 ( 210 ) | -182 ( 182 ) | -154 ( 154 )
other comprehensive ( income ) loss attributable to noncontrolling interests | 29 | 2014 | 2014
comprehensive income attributable to nbcuniversal | $ 3361 | $ 2972 | $ 2017
see accompanying notes to consolidated financial statements .
147 comcast 2015 annual report on form 10-k |
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dd4ba1308 | entergy corporation and subsidiaries notes to financial statements ( a ) consists of pollution control revenue bonds and environmental revenue bonds .
( b ) the bonds are secured by a series of collateral first mortgage bonds .
( c ) in december 2005 , entergy corporation sold 10 million equity units with a stated amount of $ 50 each .
an equity unit consisted of ( 1 ) a note , initially due february 2011 and initially bearing interest at an annual rate of 5.75% ( 5.75 % ) , and ( 2 ) a purchase contract that obligated the holder of the equity unit to purchase for $ 50 between 0.5705 and 0.7074 shares of entergy corporation common stock on or before february 17 , 2009 .
entergy paid the holders quarterly contract adjustment payments of 1.875% ( 1.875 % ) per year on the stated amount of $ 50 per equity unit .
under the terms of the purchase contracts , entergy attempted to remarket the notes in february 2009 but was unsuccessful , the note holders put the notes to entergy , entergy retired the notes , and entergy issued 6598000 shares of common stock in the settlement of the purchase contracts .
( d ) pursuant to the nuclear waste policy act of 1982 , entergy's nuclear owner/licensee subsidiaries have contracts with the doe for spent nuclear fuel disposal service .
the contracts include a one-time fee for generation prior to april 7 , 1983 .
entergy arkansas is the only entergy company that generated electric power with nuclear fuel prior to that date and includes the one-time fee , plus accrued interest , in long-term ( e ) the fair value excludes lease obligations , long-term doe obligations , and the note payable to nypa , and includes debt due within one year .
it is determined using bid prices reported by dealer markets and by nationally recognized investment banking firms .
( f ) entergy gulf states louisiana remains primarily liable for all of the long-term debt issued by entergy gulf states , inc .
that was outstanding on december 31 , 2008 and 2007 .
under a debt assumption agreement with entergy gulf states louisiana , entergy texas assumed approximately 46% ( 46 % ) of this long-term debt .
the annual long-term debt maturities ( excluding lease obligations ) for debt outstanding as of december 31 , 2008 , for the next five years are as follows : amount ( in thousands ) .
| amount ( in thousands )
---- | -----------------------
2009 | $ 516019
2010 | $ 763036
2011 | $ 897367
2012 | $ 3625459
2013 | $ 579461
in november 2000 , entergy's non-utility nuclear business purchased the fitzpatrick and indian point 3 power plants in a seller-financed transaction .
entergy issued notes to nypa with seven annual installments of approximately $ 108 million commencing one year from the date of the closing , and eight annual installments of $ 20 million commencing eight years from the date of the closing .
these notes do not have a stated interest rate , but have an implicit interest rate of 4.8% ( 4.8 % ) .
in accordance with the purchase agreement with nypa , the purchase of indian point 2 in 2001 resulted in entergy's non-utility nuclear business becoming liable to nypa for an additional $ 10 million per year for 10 years , beginning in september 2003 .
this liability was recorded upon the purchase of indian point 2 in september 2001 , and is included in the note payable to nypa balance above .
in july 2003 , a payment of $ 102 million was made prior to maturity on the note payable to nypa .
under a provision in a letter of credit supporting these notes , if certain of the utility operating companies or system energy were to default on other indebtedness , entergy could be required to post collateral to support the letter of credit .
covenants in the entergy corporation notes require it to maintain a consolidated debt ratio of 65% ( 65 % ) or less of its total capitalization .
if entergy's debt ratio exceeds this limit , or if entergy or certain of the utility operating companies default on other indebtedness or are in bankruptcy or insolvency proceedings , an acceleration of the notes' maturity dates may occur .
entergy gulf states louisiana , entergy louisiana , entergy mississippi , entergy texas , and system energy have received ferc long-term financing orders authorizing long-term securities issuances .
entergy arkansas has |
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dd4bfeaee | as of may 26 , 2019 , we expect to pay approximately $ 2.0 million of unrecognized tax benefit liabilities and accrued interest within the next 12 months .
we are not able to reasonably estimate the timing of future cash flows beyond 12 months due to uncertainties in the timing of tax audit outcomes .
the remaining amount of our unrecognized tax liability was classified in other liabilities .
we report accrued interest and penalties related to unrecognized tax benefit liabilities in income tax expense .
for fiscal 2019 , we recognized $ 0.5 million of tax-related net interest and penalties , and had $ 26.0 million of accrued interest and penalties as of may 26 , 2019 .
for fiscal 2018 , we recognized a net benefit of $ 3.1 million of tax-related net interest and penalties , and had $ 27.3 million of accrued interest and penalties as of may 27 , 2018 .
note 15 .
leases , other commitments , and contingencies our leases are generally for warehouse space and equipment .
rent expense under all operating leases from continuing operations was $ 184.9 million in fiscal 2019 , $ 189.4 million in fiscal 2018 , and $ 188.1 million in fiscal 2017 .
some operating leases require payment of property taxes , insurance , and maintenance costs in addition to the rent payments .
contingent and escalation rent in excess of minimum rent payments and sublease income netted in rent expense were insignificant .
noncancelable future lease commitments are : in millions operating leases capital leases .
in millions | operating leases | capital leases
------------------------------------------------ | ---------------- | --------------
fiscal 2020 | $ 120.0 | $ 0.2
fiscal 2021 | 101.7 | 0.1
fiscal 2022 | 85.0 | -
fiscal 2023 | 63.8 | -
fiscal 2024 | 49.1 | -
after fiscal 2024 | 63.0 | -
total noncancelable future lease commitments | $ 482.6 | $ 0.3
less : interest | | -
present value of obligations under capitalleases | | $ 0.3
depreciation on capital leases is recorded as depreciation expense in our results of operations .
as of may 26 , 2019 , we have issued guarantees and comfort letters of $ 681.6 million for the debt and other obligations of consolidated subsidiaries , and guarantees and comfort letters of $ 133.9 million for the debt and other obligations of non-consolidated affiliates , mainly cpw .
in addition , off-balance sheet arrangements are generally limited to the future payments under non-cancelable operating leases , which totaled $ 482.6 million as of may 26 , 2019 .
note 16 .
business segment and geographic information we operate in the packaged foods industry .
our operating segments are as follows : north america retail ; convenience stores & foodservice ; europe & australia ; asia & latin america ; and pet .
our north america retail operating segment reflects business with a wide variety of grocery stores , mass merchandisers , membership stores , natural food chains , drug , dollar and discount chains , and e-commerce grocery providers .
our product categories in this business segment are ready-to-eat cereals , refrigerated yogurt , soup , meal kits , refrigerated and frozen dough products , dessert and baking mixes , frozen pizza and pizza snacks , grain , fruit and savory snacks , and a wide variety of organic products including refrigerated yogurt , nutrition bars , meal kits , salty snacks , ready-to-eat cereal , and grain snacks. |
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dd4ba561a | kimco realty corporation and subsidiaries notes to consolidated financial statements , continued other 2014 in connection with the construction of its development projects and related infrastructure , certain public agencies require posting of performance and surety bonds to guarantee that the company 2019s obligations are satisfied .
these bonds expire upon the completion of the improvements and infrastructure .
as of december 31 , 2010 , there were approximately $ 45.3 million in performance and surety bonds outstanding .
as of december 31 , 2010 , the company had accrued $ 3.8 million in connection with a legal claim related to a previously sold ground-up development project .
the company is currently negotiating with the plaintiff to settle this claim and believes that the prob- able settlement amount will approximate the amount accrued .
the company is subject to various other legal proceedings and claims that arise in the ordinary course of business .
management believes that the final outcome of such matters will not have a material adverse effect on the financial position , results of operations or liquidity of the company .
23 .
incentive plans : the company maintains two equity participation plans , the second amended and restated 1998 equity participation plan ( the 201cprior plan 201d ) and the 2010 equity participation plan ( the 201c2010 plan 201d ) ( collectively , the 201cplans 201d ) .
the prior plan provides for a maxi- mum of 47000000 shares of the company 2019s common stock to be issued for qualified and non-qualified options and restricted stock grants .
the 2010 plan provides for a maximum of 5000000 shares of the company 2019s common stock to be issued for qualified and non-qualified options , restricted stock , performance awards and other awards , plus the number of shares of common stock which are or become available for issuance under the prior plan and which are not thereafter issued under the prior plan , subject to certain conditions .
unless otherwise determined by the board of directors at its sole discretion , options granted under the plans generally vest ratably over a range of three to five years , expire ten years from the date of grant and are exercisable at the market price on the date of grant .
restricted stock grants generally vest ( i ) 100% ( 100 % ) on the fourth or fifth anniversary of the grant , ( ii ) ratably over three or four years or ( iii ) over three years at 50% ( 50 % ) after two years and 50% ( 50 % ) after the third year .
performance share awards may provide a right to receive shares of restricted stock based on the company 2019s performance relative to its peers , as defined , or based on other performance criteria as determined by the board of directors .
in addition , the plans provide for the granting of certain options and restricted stock to each of the company 2019s non-employee directors ( the 201cindependent directors 201d ) and permits such independent directors to elect to receive deferred stock awards in lieu of directors 2019 fees .
the company accounts for stock options in accordance with fasb 2019s compensation 2014stock compensation guidance which requires that all share based payments to employees , including grants of employee stock options , be recognized in the statement of operations over the service period based on their fair values .
the fair value of each option award is estimated on the date of grant using the black-scholes option pricing formula .
the assump- tion for expected volatility has a significant affect on the grant date fair value .
volatility is determined based on the historical equity of common stock for the most recent historical period equal to the expected term of the options plus an implied volatility measure .
the more significant assumptions underlying the determination of fair values for options granted during 2010 , 2009 and 2008 were as follows : year ended december 31 , 2010 2009 2008 .
2009 | year ended december 31 2010 2009 | year ended december 31 2010 2009 | year ended december 31 2010
--------------------------------------------------- | -------------------------------- | -------------------------------- | ---------------------------
weighted average fair value of options granted | $ 3.82 | $ 3.16 | $ 5.73
weighted average risk-free interest rates | 2.40% ( 2.40 % ) | 2.54% ( 2.54 % ) | 3.13% ( 3.13 % )
weighted average expected option lives ( in years ) | 6.25 | 6.25 | 6.38
weighted average expected volatility | 37.98% ( 37.98 % ) | 45.81% ( 45.81 % ) | 26.16% ( 26.16 % )
weighted average expected dividend yield | 4.21% ( 4.21 % ) | 5.48% ( 5.48 % ) | 4.33% ( 4.33 % ) |
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dd4bb81de | impairment of long-lived assets based on the projection of undiscounted cash flows whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable .
in the event such cash flows are not expected to be sufficient to recover the recorded value of the assets , the assets are written down to their estimated fair values ( see note 5 ) .
asset retirement obligations 2014effective january 1 , 2003 , the company adopted statement of financial accounting standards ( 2018 2018sfas 2019 2019 ) no .
143 , 2018 2018accounting for asset retirement obligations . 2019 2019 sfas no .
143 requires the company to record the fair value of a legal liability for an asset retirement obligation in the period in which it is incurred .
when a new liability is recorded the company will capitalize the costs of the liability by increasing the carrying amount of the related long-lived asset .
the liability is accreted to its present value each period and the capitalized cost is depreciated over the useful life of the related asset .
upon settlement of the liability , the company settles the obligation for its recorded amount or incurs a gain or loss upon settlement .
the company 2019s retirement obligations covered by sfas no .
143 include primarily active ash landfills , water treatment basins and the removal or dismantlement of certain plant and equipment .
as of december 31 , 2003 and 2002 , the company had recorded liabilities of approximately $ 29 million and $ 15 million , respectively , related to asset retirement obligations .
there are no assets that are legally restricted for purposes of settling asset retirement obligations .
upon adoption of sfas no .
143 , the company recorded an additional liability of approximately $ 13 million , a net asset of approximately $ 9 million , and a cumulative effect of a change in accounting principle of approximately $ 2 million , after income taxes .
amounts recorded related to asset retirement obligations during the years ended december 31 , 2003 were as follows ( in millions ) : .
balance at december 31 2002 | $ 15
------------------------------------------------------------------------- | --------
additional liability recorded from cumulative effect of accounting change | 13
accretion expense | 2
change in the timing of estimated cash flows | -1 ( 1 )
balance at december 31 2003 | $ 29
proforma net ( loss ) income and ( loss ) earnings per share have not been presented for the years ended december 31 , 2002 and 2001 because the proforma application of sfas no .
143 to prior periods would result in proforma net ( loss ) income and ( loss ) earnings per share not materially different from the actual amounts reported for those periods in the accompanying consolidated statements of operations .
had sfas 143 been applied during all periods presented the asset retirement obligation at january 1 , 2001 , december 31 , 2001 and december 31 , 2002 would have been approximately $ 21 million , $ 23 million and $ 28 million , respectively .
included in other long-term liabilities is the accrual for the non-legal obligations for removal of assets in service at ipalco amounting to $ 361 million and $ 339 million at december 31 , 2003 and 2002 , respectively .
deferred financing costs 2014financing costs are deferred and amortized over the related financing period using the effective interest method or the straight-line method when it does not differ materially from the effective interest method .
deferred financing costs are shown net of accumulated amortization of $ 202 million and $ 173 million as of december 31 , 2003 and 2002 , respectively .
project development costs 2014the company capitalizes the costs of developing new construction projects after achieving certain project-related milestones that indicate the project 2019s completion is probable .
these costs represent amounts incurred for professional services , permits , options , capitalized interest , and other costs directly related to construction .
these costs are transferred to construction in progress when significant construction activity commences , or expensed at the time the company determines that development of a particular project is no longer probable ( see note 5 ) . |
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dd498315c | 19 .
income taxes ( continued ) capital loss carryforwards of $ 69 million and $ 90 million , which were acquired in the bgi transaction and will expire on or before 2013 .
at december 31 , 2012 and 2011 , the company had $ 95 million and $ 95 million of valuation allowances for deferred income tax assets , respectively , recorded on the consolidated statements of financial condition .
the year- over-year increase in the valuation allowance primarily related to certain foreign deferred income tax assets .
goodwill recorded in connection with the quellos transaction has been reduced during the period by the amount of tax benefit realized from tax-deductible goodwill .
see note 9 , goodwill , for further discussion .
current income taxes are recorded net in the consolidated statements of financial condition when related to the same tax jurisdiction .
as of december 31 , 2012 , the company had current income taxes receivable and payable of $ 102 million and $ 121 million , respectively , recorded in other assets and accounts payable and accrued liabilities , respectively .
as of december 31 , 2011 , the company had current income taxes receivable and payable of $ 108 million and $ 102 million , respectively , recorded in other assets and accounts payable and accrued liabilities , respectively .
the company does not provide deferred taxes on the excess of the financial reporting over tax basis on its investments in foreign subsidiaries that are essentially permanent in duration .
the excess totaled $ 2125 million and $ 1516 million as of december 31 , 2012 and 2011 , respectively .
the determination of the additional deferred income taxes on the excess has not been provided because it is not practicable due to the complexities associated with its hypothetical calculation .
the following tabular reconciliation presents the total amounts of gross unrecognized tax benefits : year ended december 31 , ( dollar amounts in millions ) 2012 2011 2010 .
( dollar amounts in millions ) | year ended december 31 , 2012 | year ended december 31 , 2011 | year ended december 31 , 2010
-------------------------------------------------------- | ----------------------------- | ----------------------------- | -----------------------------
balance at january 1 | $ 349 | $ 307 | $ 285
additions for tax positions of prior years | 4 | 22 | 10
reductions for tax positions of prior years | -1 ( 1 ) | -1 ( 1 ) | -17 ( 17 )
additions based on tax positions related to current year | 69 | 46 | 35
lapse of statute of limitations | 2014 | 2014 | -8 ( 8 )
settlements | -29 ( 29 ) | -25 ( 25 ) | -2 ( 2 )
positions assumed in acquisitions | 12 | 2014 | 4
balance at december 31 | $ 404 | $ 349 | $ 307
included in the balance of unrecognized tax benefits at december 31 , 2012 , 2011 and 2010 , respectively , are $ 250 million , $ 226 million and $ 194 million of tax benefits that , if recognized , would affect the effective tax rate .
the company recognizes interest and penalties related to income tax matters as a component of income tax expense .
related to the unrecognized tax benefits noted above , the company accrued interest and penalties of $ 3 million during 2012 and in total , as of december 31 , 2012 , had recognized a liability for interest and penalties of $ 69 million .
the company accrued interest and penalties of $ 10 million during 2011 and in total , as of december 31 , 2011 , had recognized a liability for interest and penalties of $ 66 million .
the company accrued interest and penalties of $ 8 million during 2010 and in total , as of december 31 , 2010 , had recognized a liability for interest and penalties of $ 56 million .
pursuant to the amended and restated stock purchase agreement , the company has been indemnified by barclays for $ 73 million and guggenheim for $ 6 million of unrecognized tax benefits .
blackrock is subject to u.s .
federal income tax , state and local income tax , and foreign income tax in multiple jurisdictions .
tax years after 2007 remain open to u.s .
federal income tax examination , tax years after 2005 remain open to state and local income tax examination , and tax years after 2006 remain open to income tax examination in the united kingdom .
with few exceptions , as of december 31 , 2012 , the company is no longer subject to u.s .
federal , state , local or foreign examinations by tax authorities for years before 2006 .
the internal revenue service ( 201cirs 201d ) completed its examination of blackrock 2019s 2006 and 2007 tax years in march 2011 .
in november 2011 , the irs commenced its examination of blackrock 2019s 2008 and 2009 tax years , and while the impact on the consolidated financial statements is undetermined , it is not expected to be material .
in july 2011 , the irs commenced its federal income tax audit of the bgi group , which blackrock acquired in december 2009 .
the tax years under examination are 2007 through december 1 , 2009 , and while the impact on the consolidated financial statements is undetermined , it is not expected to be material .
the company is currently under audit in several state and local jurisdictions .
the significant state and local income tax examinations are in california for tax years 2004 through 2006 , new york city for tax years 2007 through 2008 , and new jersey for tax years 2003 through 2009 .
no state and local income tax audits cover years earlier than 2007 except for california , new jersey and new york city .
no state and local income tax audits are expected to result in an assessment material to the consolidated financial statements. |
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dd4c45e44 | r&d expense increased 36% ( 36 % ) during 2011 compared to 2010 , it declined slightly as a percentage of net sales , due to the 66% ( 66 % ) year-over-year growth in the company 2019s net sales during 2011 .
r&d expense increased 34% ( 34 % ) or $ 449 million to $ 1.8 billion in 2010 compared to 2009 .
this increase was due primarily to an increase in headcount and related expenses in the current year to support expanded r&d activities .
also contributing to this increase in r&d expense in 2010 was the capitalization in 2009 of software development costs of $ 71 million related to mac os x snow leopard .
although total r&d expense increased 34% ( 34 % ) during 2010 , it declined as a percentage of net sales given the 52% ( 52 % ) year-over-year increase in net sales in the company continues to believe that focused investments in r&d are critical to its future growth and competitive position in the marketplace and are directly related to timely development of new and enhanced products that are central to the company 2019s core business strategy .
as such , the company expects to make further investments in r&d to remain competitive .
selling , general and administrative expense ( 201csg&a 201d ) sg&a expense increased $ 2.1 billion or 38% ( 38 % ) to $ 7.6 billion during 2011 compared to 2010 .
this increase was due primarily to the company 2019s continued expansion of its retail segment , increased headcount and related costs , higher spending on professional services and marketing and advertising programs , and increased variable costs associated with the overall growth of the company 2019s net sales .
sg&a expense increased $ 1.4 billion or 33% ( 33 % ) to $ 5.5 billion in 2010 compared to 2009 .
this increase was due primarily to the company 2019s continued expansion of its retail segment , higher spending on marketing and advertising programs , increased share-based compensation expenses and variable costs associated with the overall growth of the company 2019s net sales .
other income and expense other income and expense for the three years ended september 24 , 2011 , are as follows ( in millions ) : .
| 2011 | 2010 | 2009
------------------------------ | ------------ | ------------ | ----------
interest and dividend income | $ 519 | $ 311 | $ 407
other expense net | -104 ( 104 ) | -156 ( 156 ) | -81 ( 81 )
total other income and expense | $ 415 | $ 155 | $ 326
total other income and expense increased $ 260 million or 168% ( 168 % ) to $ 415 million during 2011 compared to $ 155 million and $ 326 million in 2010 and 2009 , respectively .
the year-over-year increase in other income and expense during 2011 was due primarily to higher interest income and net realized gains on sales of marketable securities .
the overall decrease in other income and expense in 2010 compared to 2009 was attributable to the significant declines in interest rates on a year-over-year basis , partially offset by the company 2019s higher cash , cash equivalents and marketable securities balances .
additionally the company incurred higher premium expenses on its foreign exchange option contracts , which further reduced the total other income and expense .
the weighted average interest rate earned by the company on its cash , cash equivalents and marketable securities was 0.77% ( 0.77 % ) , 0.75% ( 0.75 % ) and 1.43% ( 1.43 % ) during 2011 , 2010 and 2009 , respectively .
during 2011 , 2010 and 2009 , the company had no debt outstanding and accordingly did not incur any related interest expense .
provision for income taxes the company 2019s effective tax rates were approximately 24.2% ( 24.2 % ) , 24.4% ( 24.4 % ) and 31.8% ( 31.8 % ) for 2011 , 2010 and 2009 , respectively .
the company 2019s effective rates for these periods differ from the statutory federal income tax rate of |
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dd4c34108 | part ii , item 8 fourth quarter of 2007 : 0160 schlumberger sold certain workover rigs for $ 32 million , resulting in a pretax gain of $ 24 million ( $ 17 million after-tax ) which is classified in interest and other income , net in the consolidated statement of income .
4 .
acquisitions acquisition of eastern echo holding plc on december 10 , 2007 , schlumberger completed the acquisition of eastern echo holding plc ( 201ceastern echo 201d ) for $ 838 million in cash .
eastern echo was a dubai-based marine seismic company that did not have any operations at the time of acquisition , but had signed contracts for the construction of six seismic vessels .
the purchase price has been allocated to the net assets acquired based upon their estimated fair values as follows : ( stated in millions ) .
cash and short-term investments | $ 266
----------------------------------------- | ------------
other current assets | 23
fixed income investments held to maturity | 54
vessels under construction | 694
accounts payable and accrued liabilities | -17 ( 17 )
long-term debt | -182 ( 182 )
total purchase price | $ 838
other acquisitions schlumberger has made other acquisitions and minority interest investments , none of which were significant on an individual basis , for cash payments , net of cash acquired , of $ 514 million during 2009 , $ 345 million during 2008 , and $ 281 million during 2007 .
pro forma results pertaining to the above acquisitions are not presented as the impact was not significant .
5 .
drilling fluids joint venture the mi-swaco drilling fluids joint venture is owned 40% ( 40 % ) by schlumberger and 60% ( 60 % ) by smith international , inc .
schlumberger records income relating to this venture using the equity method of accounting .
the carrying value of schlumberger 2019s investment in the joint venture on december 31 , 2009 and 2008 was $ 1.4 billion and $ 1.3 billion , respectively , and is included within investments in affiliated companies on the consolidated balance sheet .
schlumberger 2019s equity income from this joint venture was $ 131 million in 2009 , $ 210 million in 2008 and $ 178 million in 2007 .
schlumberger received cash distributions from the joint venture of $ 106 million in 2009 , $ 57 million in 2008 and $ 46 million in 2007 .
the joint venture agreement contains a provision under which either party to the joint venture may offer to sell its entire interest in the venture to the other party at a cash purchase price per percentage interest specified in an offer notice .
if the offer to sell is not accepted , the offering party will be obligated to purchase the entire interest of the other party at the same price per percentage interest as the prices specified in the offer notice. |
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dd4bad4e6 | performance graph the graph below compares the cumulative total shareholder return on pmi's common stock with the cumulative total return for the same period of pmi's compensation survey group and the s&p 500 index .
the graph assumes the investment of $ 100 as of december 31 , 2010 , in pmi common stock ( at prices quoted on the new york stock exchange ) and each of the indices as of the market close and reinvestment of dividends on a quarterly basis .
date pmi pmi compensation survey group ( 12 ) s&p 500 index .
date | pmi | pmi compensation survey group ( 12 ) | s&p 500 index
---------------- | -------- | ------------------------------------ | -------------
december 31 2010 | $ 100.00 | $ 100.00 | $ 100.00
december 31 2011 | $ 139.80 | $ 114.10 | $ 102.10
december 31 2012 | $ 154.60 | $ 128.00 | $ 118.50
december 31 2013 | $ 167.70 | $ 163.60 | $ 156.80
december 31 2014 | $ 164.20 | $ 170.10 | $ 178.30
december 31 2015 | $ 186.20 | $ 179.20 | $ 180.80
( 1 ) the pmi compensation survey group consists of the following companies with substantial global sales that are direct competitors ; or have similar market capitalization ; or are primarily focused on consumer products ( excluding high technology and financial services ) ; and are companies for which comparative executive compensation data are readily available : bayer ag , british american tobacco p.l.c. , the coca-cola company , diageo plc , glaxosmithkline , heineken n.v. , imperial brands plc ( formerly , imperial tobacco group plc ) , johnson & johnson , mcdonald's corp. , international , inc. , nestl e9 s.a. , novartis ag , pepsico , inc. , pfizer inc. , roche holding ag , unilever nv and plc and vodafone group plc .
( 2 ) on october 1 , 2012 , international , inc .
( nasdaq : mdlz ) , formerly kraft foods inc. , announced that it had completed the spin-off of its north american grocery business , kraft foods group , inc .
( nasdaq : krft ) .
international , inc .
was retained in the pmi compensation survey group index because of its global footprint .
the pmi compensation survey group index total cumulative return calculation weights international , inc.'s total shareholder return at 65% ( 65 % ) of historical kraft foods inc.'s market capitalization on december 31 , 2010 , based on international , inc.'s initial market capitalization relative to the combined market capitalization of international , inc .
and kraft foods group , inc .
on october 2 , 2012 .
note : figures are rounded to the nearest $ 0.10. |
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dd4bbdbfc | a black-scholes option-pricing model was used for purposes of estimating the fair value of state street 2019s employee stock options at the grant date .
the following were the weighted average assumptions for the years ended december 31 , 2001 , 2000 and 1999 , respectively : risk-free interest rates of 3.99% ( 3.99 % ) , 5.75% ( 5.75 % ) and 5.90% ( 5.90 % ) ; dividend yields of 1.08% ( 1.08 % ) , .73% ( .73 % ) and .92% ( .92 % ) ; and volatility factors of the expected market price of state street common stock of .30 , .30 and .30 .
the estimated weighted average life of the stock options granted was 4.1 years for the years ended december 31 , 2001 , 2000 and 1999 .
o t h e r u n r e a l i z e d c o m p r e h e n s i v e i n c o m e ( l o s s ) at december 31 , the components of other unrealized comprehensive income ( loss ) , net of related taxes , were as follows: .
( dollars in millions ) | 2001 | 2000
------------------------------------------------ | ---------- | ----------
unrealized gain on available-for-sale securities | $ 96 | $ 19
foreign currency translation | -27 ( 27 ) | -20 ( 20 )
other | 1 |
total | $ 70 | $ -1 ( 1 )
note j shareholders 2019 rights plan in 1988 , state street declared a dividend of one preferred share purchase right for each outstanding share of common stock .
in 1998 , the rights agreement was amended and restated , and in 2001 , the rights plan was impacted by the 2-for-1 stock split .
accordingly , a right may be exercised , under certain conditions , to purchase one eight-hundredths share of a series of participating preferred stock at an exercise price of $ 132.50 , subject to adjustment .
the rights become exercisable if a party acquires or obtains the right to acquire 10% ( 10 % ) or more of state street 2019s common stock or after commencement or public announcement of an offer for 10% ( 10 % ) or more of state street 2019s common stock .
when exercisable , under certain conditions , each right entitles the holder thereof to purchase shares of common stock , of either state street or of the acquirer , having a market value of two times the then-current exercise price of that right .
the rights expire in september 2008 , and may be redeemed at a price of $ .00125 per right , subject to adjustment , at any time prior to expiration or the acquisition of 10% ( 10 % ) of state street 2019s common stock .
under certain circumstances , the rights may be redeemed after they become exercisable and may be subject to automatic redemption .
note k regulatory matters r e g u l a t o r y c a p i t a l state street is subject to various regulatory capital requirements administered by federal banking agencies .
failure to meet minimum capital requirements can initiate certain mandatory and discretionary actions by regulators that , if undertaken , could have a direct material effect on state street 2019s financial condition .
under capital adequacy guidelines , state street must meet specific capital guidelines that involve quantitative measures of state street 2019s assets , liabilities and off-balance sheet items as calculated under regulatory accounting practices .
state street 2019s capital amounts and classification are subject to qualitative judgments by the regulators about components , risk weightings and other factors .
42 state street corporation |
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dd4bd6f58 | performance of the company 2019s obligations under the senior notes , including any repurchase obligations resulting from a change of control , is unconditionally guaranteed , jointly and severally , on an unsecured basis , by each of hii 2019s existing and future domestic restricted subsidiaries that guarantees debt under the credit facility ( the 201csubsidiary guarantors 201d ) .
the guarantees rank equally with all other unsecured and unsubordinated indebtedness of the guarantors .
the subsidiary guarantors are each directly or indirectly 100% ( 100 % ) owned by hii .
there are no significant restrictions on the ability of hii or any subsidiary guarantor to obtain funds from their respective subsidiaries by dividend or loan .
mississippi economic development revenue bonds 2014as of december 31 , 2011 and 2010 , the company had $ 83.7 million outstanding from the issuance of industrial revenue bonds issued by the mississippi business finance corporation .
these bonds accrue interest at a fixed rate of 7.81% ( 7.81 % ) per annum ( payable semi-annually ) and mature in 2024 .
while repayment of principal and interest is guaranteed by northrop grumman systems corporation , hii has agreed to indemnify northrop grumman systems corporation for any losses related to the guaranty .
in accordance with the terms of the bonds , the proceeds have been used to finance the construction , reconstruction , and renovation of the company 2019s interest in certain ship manufacturing and repair facilities , or portions thereof , located in the state of mississippi .
gulf opportunity zone industrial development revenue bonds 2014as of december 31 , 2011 and 2010 , the company had $ 21.6 million outstanding from the issuance of gulf opportunity zone industrial development revenue bonds ( 201cgo zone irbs 201d ) issued by the mississippi business finance corporation .
the go zone irbs were initially issued in a principal amount of $ 200 million , and in november 2010 , in connection with the anticipated spin-off , hii purchased $ 178 million of the bonds using the proceeds from a $ 178 million intercompany loan from northrop grumman .
see note 20 : related party transactions and former parent company equity .
the remaining bonds accrue interest at a fixed rate of 4.55% ( 4.55 % ) per annum ( payable semi-annually ) , and mature in 2028 .
in accordance with the terms of the bonds , the proceeds have been used to finance the construction , reconstruction , and renovation of the company 2019s interest in certain ship manufacturing and repair facilities , or portions thereof , located in the state of mississippi .
the estimated fair value of the company 2019s total long-term debt , including current portions , at december 31 , 2011 and 2010 , was $ 1864 million and $ 128 million , respectively .
the fair value of the total long-term debt was calculated based on recent trades for most of the company 2019s debt instruments or based on interest rates prevailing on debt with substantially similar risks , terms and maturities .
the aggregate amounts of principal payments due on long-term debt for each of the next five years and thereafter are : ( $ in millions ) .
2012 | $ 29
-------------------- | ------
2013 | 50
2014 | 79
2015 | 108
2016 | 288
thereafter | 1305
total long-term debt | $ 1859
14 .
investigations , claims , and litigation the company is involved in legal proceedings before various courts and administrative agencies , and is periodically subject to government examinations , inquiries and investigations .
pursuant to fasb accounting standard codification 450 contingencies , the company has accrued for losses associated with investigations , claims and litigation when , and to the extent that , loss amounts related to the investigations , claims and litigation are probable and can be reasonably estimated .
the actual losses that might be incurred to resolve such investigations , claims and litigation may be higher or lower than the amounts accrued .
for matters where a material loss is probable or reasonably possible and the amount of loss cannot be reasonably estimated , but the company is able to reasonably estimate a range of possible losses , such estimated range is required to be disclosed in these notes .
this estimated range would be based on information currently available to the company and would involve elements of judgment and significant uncertainties .
this estimated range of possible loss would not represent the company 2019s maximum possible loss exposure .
for matters as to which the company is not able to reasonably estimate a possible loss or range of loss , the company is required to indicate the reasons why it is unable to estimate the possible loss or range of loss .
for matters not specifically described in these notes , the company does not believe , based on information currently available to it , that it is reasonably possible that the liabilities , if any , arising from |
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dd497d842 | management 2019s discussion and analysis of financial condition and results of operations indemnification provisions : in addition , the company may provide indemnifications for losses that result from the breach of general warranties contained in certain commercial , intellectual property and divestiture agreements .
historically , the company has not made significant payments under these agreements , nor have there been significant claims asserted against the company .
however , there is an increasing risk in relation to intellectual property indemnities given the current legal climate .
in indemnification cases , payment by the company is conditioned on the other party making a claim pursuant to the procedures specified in the particular contract , which procedures typically allow the company to challenge the other party 2019s claims .
further , the company 2019s obligations under these agreements for indemnification based on breach of representations and warranties are generally limited in terms of duration , typically not more than 24 months , and for amounts not in excess of the contract value , and in some instances the company may have recourse against third parties for certain payments made by the company .
legal matters : the company is a defendant in various lawsuits , claims and actions , which arise in the normal course of business .
in the opinion of management , the ultimate disposition of these matters will not have a material adverse effect on the company 2019s consolidated financial position , liquidity or results of operations .
segment information the following commentary should be read in conjunction with the financial results of each operating business segment as detailed in note 12 , 2018 2018information by segment and geographic region , 2019 2019 to the company 2019s consolidated financial statements .
net sales and operating results for the company 2019s three operating business segments for 2009 , 2008 and 2007 are presented below .
mobile devices segment the mobile devices segment designs , manufactures , sells and services wireless handsets , including smartphones , with integrated software and accessory products , and licenses intellectual property .
in 2009 , the segment 2019s net sales represented 32% ( 32 % ) of the company 2019s consolidated net sales , compared to 40% ( 40 % ) in 2008 and 52% ( 52 % ) in 2007. .
( dollars in millions ) | years ended december 31 2009 | years ended december 31 2008 | years ended december 31 2007 | years ended december 31 2009 20142008 | 2008 20142007
--------------------------- | ---------------------------- | ---------------------------- | ---------------------------- | ------------------------------------- | ---------------
segment net sales | $ 7146 | $ 12099 | $ 18988 | ( 41 ) % ( % ) | ( 36 ) % ( % )
operating earnings ( loss ) | -1077 ( 1077 ) | -2199 ( 2199 ) | -1201 ( 1201 ) | ( 51 ) % ( % ) | 83% ( 83 % )
segment results 20142009 compared to 2008 in 2009 , the segment 2019s net sales were $ 7.1 billion , a decrease of 41% ( 41 % ) compared to net sales of $ 12.1 billion in 2008 .
the 41% ( 41 % ) decrease in net sales was primarily driven by a 45% ( 45 % ) decrease in unit shipments , partially offset by an 8% ( 8 % ) increase in average selling price ( 2018 2018asp 2019 2019 ) .
the segment 2019s net sales were negatively impacted by reduced product offerings in large market segments , particularly 3g products , including smartphones , and the segment 2019s limited product offerings in very low-tier products .
on a product technology basis , net sales decreased substantially for gsm , cdma and 3g technologies , partially offset by an increase in net sales for iden technology .
on a geographic basis , net sales decreased substantially in latin america , the europe , middle east and african region ( 2018 2018emea 2019 2019 ) and asia and , to a lesser extent , decreased in north america .
the segment incurred an operating loss of $ 1.1 billion in 2009 , an improvement of 51% ( 51 % ) compared to an operating loss of $ 2.2 billion in 2008 .
the decrease in the operating loss was primarily due to decreases in : ( i ) selling , general and administrative ( 2018 2018sg&a 2019 2019 ) expenses , primarily due to lower marketing expenses and savings from cost-reduction initiatives , ( ii ) research and development ( 2018 2018r&d 2019 2019 ) expenditures , reflecting savings from cost-reduction initiatives , ( iii ) lower excess inventory and other related charges in 2009 than in 2008 , when the charges included a $ 370 million charge due to a decision to consolidate software and silicon platforms , and ( iv ) the absence in 2009 of a comparable $ 150 million charge in 2008 related to settlement of a purchase commitment , partially offset by a decrease in gross margin , driven by the 41% ( 41 % ) decrease in net sales .
as a percentage of net sales in 2009 as compared to 2008 , gross margin and r&d expenditures increased and sg&a expenses decreased .
the segment 2019s industry typically experiences short life cycles for new products .
therefore , it is vital to the segment 2019s success that new , compelling products are continually introduced .
accordingly , a strong commitment to |
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dd497b9d4 | page 15 of 100 shareholder return performance the line graph below compares the annual percentage change in ball corporation 2019s cumulative total shareholder return on its common stock with the cumulative total return of the dow jones containers & packaging index and the s&p composite 500 stock index for the five-year period ended december 31 , 2010 .
it assumes $ 100 was invested on december 31 , 2005 , and that all dividends were reinvested .
the dow jones containers & packaging index total return has been weighted by market capitalization .
total return analysis .
| 12/31/05 | 12/31/06 | 12/31/07 | 12/31/08 | 12/31/09 | 12/31/10
------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------
ball corporation | $ 100.00 | $ 110.86 | $ 115.36 | $ 107.58 | $ 134.96 | $ 178.93
dj containers & packaging index | $ 100.00 | $ 112.09 | $ 119.63 | $ 75.00 | $ 105.34 | $ 123.56
s&p 500 index | $ 100.00 | $ 115.80 | $ 122.16 | $ 76.96 | $ 97.33 | $ 111.99
copyright a9 2011 standard & poor 2019s a division of the mcgraw-hill companies inc . all rights reserved . ( www.researchdatagroup.com/s&p.htm ) | copyright a9 2011 standard & poor 2019s a division of the mcgraw-hill companies inc . all rights reserved . ( www.researchdatagroup.com/s&p.htm ) | copyright a9 2011 standard & poor 2019s a division of the mcgraw-hill companies inc . all rights reserved . ( www.researchdatagroup.com/s&p.htm ) | copyright a9 2011 standard & poor 2019s a division of the mcgraw-hill companies inc . all rights reserved . ( www.researchdatagroup.com/s&p.htm ) | copyright a9 2011 standard & poor 2019s a division of the mcgraw-hill companies inc . all rights reserved . ( www.researchdatagroup.com/s&p.htm ) | copyright a9 2011 standard & poor 2019s a division of the mcgraw-hill companies inc . all rights reserved . ( www.researchdatagroup.com/s&p.htm ) | copyright a9 2011 standard & poor 2019s a division of the mcgraw-hill companies inc . all rights reserved . ( www.researchdatagroup.com/s&p.htm )
copyright a9 2011 dow jones & company . all rights reserved . | copyright a9 2011 dow jones & company . all rights reserved . | copyright a9 2011 dow jones & company . all rights reserved . | copyright a9 2011 dow jones & company . all rights reserved . | copyright a9 2011 dow jones & company . all rights reserved . | copyright a9 2011 dow jones & company . all rights reserved . | copyright a9 2011 dow jones & company . all rights reserved . |
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dd4bc4eb6 | notes to consolidated financial statements of annual compensation was made .
for the years ended december 31 , 2009 , 2008 and , 2007 , we made matching contributions of approxi- mately $ 450000 , $ 503000 and $ 457000 , respectively .
note 17 / commitments and contingencies we and our operating partnership are not presently involved in any mate- rial litigation nor , to our knowledge , is any material litigation threatened against us or our properties , other than routine litigation arising in the ordinary course of business .
management believes the costs , if any , incurred by us and our operating partnership related to this litigation will not materially affect our financial position , operating results or liquidity .
we have entered into employment agreements with certain executives , which expire between june 2010 and january 2013 .
the minimum cash-based compensation , including base salary and guaran- teed bonus payments , associated with these employment agreements totals approximately $ 7.8 million for 2010 .
in march 1998 , we acquired an operating sub-leasehold posi- tion at 420 lexington avenue .
the operating sub-leasehold position required annual ground lease payments totaling $ 6.0 million and sub- leasehold position payments totaling $ 1.1 million ( excluding an operating sub-lease position purchased january 1999 ) .
in june 2007 , we renewed and extended the maturity date of the ground lease at 420 lexington avenue through december 31 , 2029 , with an option for further exten- sion through 2080 .
ground lease rent payments through 2029 will total approximately $ 10.9 million per year .
thereafter , the ground lease will be subject to a revaluation by the parties thereto .
in june 2009 , we acquired an operating sub-leasehold posi- tion at 420 lexington avenue for approximately $ 7.7 million .
these sub-leasehold positions were scheduled to mature in december 2029 .
in october 2009 , we acquired the remaining sub-leasehold position for $ 7.6 million .
the property located at 711 third avenue operates under an operating sub-lease , which expires in 2083 .
under the sub-lease , we are responsible for ground rent payments of $ 1.55 million annually through july 2011 on the 50% ( 50 % ) portion of the fee we do not own .
the ground rent is reset after july 2011 based on the estimated fair market value of the property .
we have an option to buy out the sub-lease at a fixed future date .
the property located at 461 fifth avenue operates under a ground lease ( approximately $ 2.1 million annually ) with a term expiration date of 2027 and with two options to renew for an additional 21 years each , followed by a third option for 15 years .
we also have an option to purchase the ground lease for a fixed price on a specific date .
the property located at 625 madison avenue operates under a ground lease ( approximately $ 4.6 million annually ) with a term expiration date of 2022 and with two options to renew for an additional 23 years .
the property located at 1185 avenue of the americas oper- ates under a ground lease ( approximately $ 8.5 million in 2010 and $ 6.9 million annually thereafter ) with a term expiration of 2020 and with an option to renew for an additional 23 years .
in april 1988 , the sl green predecessor entered into a lease agreement for the property at 673 first avenue , which has been capitalized for financial statement purposes .
land was estimated to be approximately 70% ( 70 % ) of the fair market value of the property .
the portion of the lease attributed to land is classified as an operating lease and the remainder as a capital lease .
the initial lease term is 49 years with an option for an additional 26 years .
beginning in lease years 11 and 25 , the lessor is entitled to additional rent as defined by the lease agreement .
we continue to lease the 673 first avenue property , which has been classified as a capital lease with a cost basis of $ 12.2 million and cumulative amortization of $ 5.5 million and $ 5.2 million at december 31 , 2009 and 2008 , respectively .
the following is a schedule of future minimum lease payments under capital leases and noncancellable operating leases with initial terms in excess of one year as of december 31 , 2009 ( in thousands ) : non-cancellable december 31 , capital lease operating leases .
december 31, | capital lease | non-cancellable operating leases
------------------------------------------- | ---------------- | --------------------------------
2010 | $ 1451 | $ 31347
2011 | 1555 | 28929
2012 | 1555 | 28179
2013 | 1555 | 28179
2014 | 1555 | 28179
thereafter | 45649 | 580600
total minimum lease payments | 53320 | $ 725413
less amount representing interest | -36437 ( 36437 ) |
present value of net minimum lease payments | $ 16883 |
note 18 / financial instruments : derivatives and hedging we recognize all derivatives on the balance sheet at fair value .
derivatives that are not hedges must be adjusted to fair value through income .
if a derivative is a hedge , depending on the nature of the hedge , changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset , liability , or firm commitment through earn- ings , or recognized in other comprehensive income until the hedged item is recognized in earnings .
the ineffective portion of a derivative 2019s change in fair value will be immediately recognized in earnings .
reported net income and stockholders 2019 equity may increase or decrease prospectively , depending on future levels of interest rates and other variables affecting the fair values of derivative instruments and hedged items , but will have no effect on cash flows. |
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dd4b9a08a | the aes corporation notes to consolidated financial statements 2014 ( continued ) december 31 , 2018 , 2017 , and 2016 the following is a reconciliation of the beginning and ending amounts of unrecognized tax benefits for the periods indicated ( in millions ) : .
| 2018 | 2017 | 2016
------------------------------------------- | ------ | ----- | ------
balance at january 1 | $ 348 | $ 352 | $ 364
additions for current year tax positions | 2 | 2014 | 2
additions for tax positions of prior years | 146 | 2 | 1
reductions for tax positions of prior years | ( 26 ) | ( 5 ) | ( 1 )
settlements | 2014 | 2014 | ( 13 )
lapse of statute of limitations | ( 7 ) | ( 1 ) | ( 1 )
balance at december 31 | $ 463 | $ 348 | $ 352
the company and certain of its subsidiaries are currently under examination by the relevant taxing authorities for various tax years .
the company regularly assesses the potential outcome of these examinations in each of the taxing jurisdictions when determining the adequacy of the amount of unrecognized tax benefit recorded .
while it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position , we believe we have appropriately accrued for our uncertain tax benefits .
however , audit outcomes and the timing of audit settlements and future events that would impact our previously recorded unrecognized tax benefits and the range of anticipated increases or decreases in unrecognized tax benefits are subject to significant uncertainty .
it is possible that the ultimate outcome of current or future examinations may exceed our provision for current unrecognized tax benefits in amounts that could be material , but cannot be estimated as of december 31 , 2018 .
our effective tax rate and net income in any given future period could therefore be materially impacted .
22 .
discontinued operations due to a portfolio evaluation in the first half of 2016 , management decided to pursue a strategic shift of its distribution companies in brazil , sul and eletropaulo , to reduce the company's exposure to the brazilian distribution market .
the disposals of sul and eletropaulo were completed in october 2016 and june 2018 , respectively .
eletropaulo 2014 in november 2017 , eletropaulo converted its preferred shares into ordinary shares and transitioned the listing of those shares to the novo mercado , which is a listing segment of the brazilian stock exchange with the highest standards of corporate governance .
upon conversion of the preferred shares into ordinary shares , aes no longer controlled eletropaulo , but maintained significant influence over the business .
as a result , the company deconsolidated eletropaulo .
after deconsolidation , the company's 17% ( 17 % ) ownership interest was reflected as an equity method investment .
the company recorded an after-tax loss on deconsolidation of $ 611 million , which primarily consisted of $ 455 million related to cumulative translation losses and $ 243 million related to pension losses reclassified from aocl .
in december 2017 , all the remaining criteria were met for eletropaulo to qualify as a discontinued operation .
therefore , its results of operations and financial position were reported as such in the consolidated financial statements for all periods presented .
in june 2018 , the company completed the sale of its entire 17% ( 17 % ) ownership interest in eletropaulo through a bidding process hosted by the brazilian securities regulator , cvm .
gross proceeds of $ 340 million were received at our subsidiary in brazil , subject to the payment of taxes .
upon disposal of eletropaulo , the company recorded a pre-tax gain on sale of $ 243 million ( after-tax $ 199 million ) .
excluding the gain on sale , eletropaulo's pre-tax loss attributable to aes was immaterial for the year ended december 31 , 2018 .
eletropaulo's pre-tax loss attributable to aes , including the loss on deconsolidation , for the years ended december 31 , 2017 and 2016 was $ 633 million and $ 192 million , respectively .
prior to its classification as discontinued operations , eletropaulo was reported in the south america sbu reportable segment .
sul 2014 the company executed an agreement for the sale of sul , a wholly-owned subsidiary , in june 2016 .
the results of operations and financial position of sul are reported as discontinued operations in the consolidated financial statements for all periods presented .
upon meeting the held-for-sale criteria , the company recognized an after-tax loss of $ 382 million comprised of a pre-tax impairment charge of $ 783 million , offset by a tax benefit of $ 266 million related to the impairment of the sul long lived assets and a tax benefit of $ 135 million for deferred taxes related to the investment in sul .
prior to the impairment charge , the carrying value of the sul asset group of $ 1.6 billion was greater than its approximate fair value less costs to sell .
however , the impairment charge was limited to the carrying value of the long lived assets of the sul disposal group. |
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dd4b88394 | american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) 19 .
subsequent events 12.25% ( 12.25 % ) senior subordinated discount notes and warrants offering 2014in january 2003 , the company issued 808000 units , each consisting of ( 1 ) $ 1000 principal amount at maturity of the 12.25% ( 12.25 % ) senior subordinated discount notes due 2008 of a wholly owned subsidiary of the company ( ati notes ) and ( 2 ) a warrant to purchase 14.0953 shares of class a common stock of the company , for gross proceeds of $ 420.0 million .
the gross offering proceeds were allocated between the ati notes ( $ 367.4 million ) and the fair value of the warrants ( $ 52.6 million ) .
net proceeds from the offering aggregated approximately $ 397.0 million and were or will be used for the purposes described below under amended and restated loan agreement .
the ati notes accrue no cash interest .
instead , the accreted value of each ati note will increase between the date of original issuance and maturity ( august 1 , 2008 ) at a rate of 12.25% ( 12.25 % ) per annum .
the 808000 warrants that were issued together with the ati notes each represent the right to purchase 14.0953 shares of class a common stock at $ 0.01 per share .
the warrants are exercisable at any time on or after january 29 , 2006 and will expire on august 1 , 2008 .
as of the issuance date , the warrants represented approximately 5.5% ( 5.5 % ) of the company 2019s outstanding common stock ( assuming exercise of all warrants ) .
the indenture governing the ati notes contains covenants that , among other things , limit the ability of the issuer subsidiary and its guarantors to incur or guarantee additional indebtedness , create liens , pay dividends or make other equity distributions , enter into agreements restricting the restricted subsidiaries 2019 ability to pay dividends , purchase or redeem capital stock , make investments and sell assets or consolidate or merge with or into other companies .
the ati notes rank junior in right of payment to all existing and future senior indebtedness , including all indebtedness outstanding under the credit facilities , and are structurally senior in right of payment to all existing and future indebtedness of the company .
amended and restated loan agreement 2014on february 21 , 2003 , the company completed an amendment to its credit facilities .
the amendment provides for the following : 2022 prepayment of a portion of outstanding term loans .
the company agreed to prepay an aggregate of $ 200.0 million of the term loans outstanding under the credit facilities from a portion of the net proceeds of the ati notes offering completed in january 2003 .
this prepayment consisted of a $ 125.0 million prepayment of the term loan a and a $ 75.0 million prepayment of the term loan b , each to be applied to reduce future scheduled principal payments .
giving effect to the prepayment of $ 200.0 million of term loans under the credit facility and the issuance of the ati notes as discussed above as well as the paydown of debt from net proceeds of the sale of mtn ( $ 24.5 million in february 2003 ) , the company 2019s aggregate principal payments of long- term debt , including capital leases , for the next five years and thereafter are as follows ( in thousands ) : year ending december 31 .
2003 | $ 268496
---------- | ---------
2004 | 131262
2005 | 195082
2006 | 538479
2007 | 1065437
thereafter | 1408783
total | $ 3607539 |
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dd4c10fc8 | table of contents recoverability of goodwill is measured at the reporting unit level and begins with a qualitative assessment to determine if it is more likely than not that the fair value of each reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test prescribed by gaap .
for those reporting units where it is required , the first step compares the carrying amount of the reporting unit to its estimated fair value .
if the estimated fair value of a reporting unit exceeds its carrying amount , goodwill of the reporting unit is not impaired and the second step of the impairment test is not necessary .
to the extent that the carrying value of the reporting unit exceeds its estimated fair value , a second step is performed , wherein the reporting unit's carrying value of goodwill is compared to the implied fair value of goodwill .
to the extent that the carrying value exceeds the implied fair value , impairment exists and must be recognized .
the calculation of estimated fair value is based on two valuation techniques , a discounted cash flow model ( income approach ) and a market adjusted multiple of earnings and revenues ( market approach ) , with each method being weighted in the calculation .
the implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination .
the estimated fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit ( including any unrecognized intangible assets ) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit , as determined in the first step of the goodwill impairment test , was the price paid to acquire that reporting unit .
recoverability of other intangible assets with indefinite useful lives ( i.e .
trademarks ) is determined on a relief from royalty methodology ( income approach ) , which is based on the implied royalty paid , at an appropriate discount rate , to license the use of an asset rather than owning the asset .
the present value of the after-tax cost savings ( i.e .
royalty relief ) indicates the estimated fair value of the asset .
any excess of the carrying value over the estimated fair value is recognized as an impairment loss equal to that excess .
intangible assets such as patents , customer-related intangible assets and other intangible assets with finite useful lives are amortized on a straight-line basis over their estimated economic lives .
the weighted-average useful lives approximate the following: .
customer relationships | 25 | years
---------------------------- | -- | -----
trademarks | 25 | years
completed technology/patents | 10 | years
other | 25 | years
recoverability of intangible assets with finite useful lives is assessed in the same manner as property , plant and equipment as described above .
income taxes : for purposes of the company 2019s consolidated financial statements for periods prior to the spin-off , income tax expense has been recorded as if the company filed tax returns on a stand-alone basis separate from ingersoll rand .
this separate return methodology applies the accounting guidance for income taxes to the stand-alone financial statements as if the company was a stand-alone enterprise for the periods prior to the spin-off .
therefore , cash tax payments and items of current and deferred taxes may not be reflective of the company 2019s actual tax balances prior to or subsequent to the spin-off .
cash paid for income taxes for the year ended december 31 , 2015 was $ 80.6 million .
the income tax accounts reflected in the consolidated balance sheets as of december 31 , 2015 and 2014 include income taxes payable and deferred taxes allocated to the company at the time of the spin-off .
the calculation of the company 2019s income taxes involves considerable judgment and the use of both estimates and allocations .
deferred tax assets and liabilities are determined based on temporary differences between financial reporting and tax bases of assets and liabilities , applying enacted tax rates expected to be in effect for the year in which the differences are expected to reverse .
the company recognizes future tax benefits , such as net operating losses and tax credits , to the extent that realizing these benefits is considered in its judgment to be more likely than not .
the company regularly reviews the recoverability of its deferred tax assets considering its historic profitability , projected future taxable income , timing of the reversals of existing temporary differences and the feasibility of its tax planning strategies .
where appropriate , the company records a valuation allowance with respect to a future tax benefit .
product warranties : standard product warranty accruals are recorded at the time of sale and are estimated based upon product warranty terms and historical experience .
the company assesses the adequacy of its liabilities and will make adjustments as necessary based on known or anticipated warranty claims , or as new information becomes available. |
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dd4ba60c4 | other operating and administrative expenses increased slightly in 2015 due to increased expenses asso- ciated with our larger film slate .
other operating and administrative expenses increased in 2014 primarily due to the inclusion of fandango , which was previously presented in our cable networks segment .
advertising , marketing and promotion expenses advertising , marketing and promotion expenses consist primarily of expenses associated with advertising for our theatrical releases and the marketing of our films on dvd and in digital formats .
we incur significant marketing expenses before and throughout the release of a film in movie theaters .
as a result , we typically incur losses on a film prior to and during the film 2019s exhibition in movie theaters and may not realize profits , if any , until the film generates home entertainment and content licensing revenue .
the costs associated with producing and marketing films have generally increased in recent years and may continue to increase in the future .
advertising , marketing and promotion expenses increased in 2015 primarily due to higher promotional costs associated with our larger 2015 film slate and increased advertising expenses for fandango .
advertising , marketing and promotion expenses decreased in 2014 primarily due to fewer major film releases compared to theme parks segment results of operations year ended december 31 ( in millions ) 2015 2014 2013 % ( % ) change 2014 to 2015 % ( % ) change 2013 to 2014 .
year ended december 31 ( in millions ) | 2015 | 2014 | 2013 | % ( % ) change 2014 to 2015 | % ( % ) change 2013 to 2014
----------------------------------------------------- | ------ | ------ | ------ | ---------------------------- | ----------------------------
revenue | $ 3339 | $ 2623 | $ 2235 | 27.3% ( 27.3 % ) | 17.3% ( 17.3 % )
operating costs and expenses | 1875 | 1527 | 1292 | 22.8 | 18.1
operating income before depreciation and amortization | $ 1464 | $ 1096 | $ 943 | 33.5% ( 33.5 % ) | 16.3% ( 16.3 % )
operating income before depreciation and amortization $ 1464 $ 1096 $ 943 33.5% ( 33.5 % ) 16.3% ( 16.3 % ) theme parks segment 2013 revenue in 2015 , our theme parks segment revenue was generated primarily from ticket sales and guest spending at our universal theme parks in orlando , florida and hollywood , california , as well as from licensing and other fees .
in november 2015 , nbcuniversal acquired a 51% ( 51 % ) interest in universal studios japan .
guest spending includes in-park spending on food , beverages and merchandise .
guest attendance at our theme parks and guest spending depend heavily on the general environment for travel and tourism , including consumer spend- ing on travel and other recreational activities .
licensing and other fees relate primarily to our agreements with third parties that own and operate the universal studios singapore theme park , as well as from the universal studios japan theme park , to license the right to use the universal studios brand name and other intellectual property .
theme parks segment revenue increased in 2015 and 2014 primarily due to increases in guest attendance and increases in guest spending at our orlando and hollywood theme parks .
the increase in 2015 was pri- marily due to the continued success of our attractions , including the wizarding world of harry potter 2122 2014 diagon alley 2122 in orlando and the fast & furious 2122 2014 supercharged 2122 studio tour and the simpson 2019s springfield attraction in hollywood , both of which opened in 2015 .
in addition , theme parks segment revenue in 2015 includes $ 169 million of revenue attributable to universal studios japan for the period from november 13 , 2015 to december 31 , 2015 .
the increase in 2014 was primarily due to new attractions , such as the wizarding world of harry potter 2122 2014 diagon alley 2122 in orlando , which opened in july 2014 , and despicable me : minion mayhem in hollywood .
59 comcast 2015 annual report on form 10-k |
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dd4bd74e4 | in summary , our cash flows for each period were as follows : years ended ( in millions ) dec 30 , dec 31 , dec 26 .
years ended ( in millions ) | dec 302017 | dec 312016 | dec 262015
------------------------------------------------------ | ---------------- | ---------------- | --------------
net cash provided by operating activities | $ 22110 | $ 21808 | $ 19018
net cash used for investing activities | -15762 ( 15762 ) | -25817 ( 25817 ) | -8183 ( 8183 )
net cash provided by ( used for ) financing activities | -8475 ( 8475 ) | -5739 ( 5739 ) | 1912
net increase ( decrease ) in cash and cash equivalents | $ -2127 ( 2127 ) | $ -9748 ( 9748 ) | $ 12747
operating activities cash provided by operating activities is net income adjusted for certain non-cash items and changes in assets and liabilities .
for 2017 compared to 2016 , the $ 302 million increase in cash provided by operating activities was due to changes to working capital partially offset by adjustments for non-cash items and lower net income .
tax reform did not have an impact on our 2017 cash provided by operating activities .
the increase in cash provided by operating activities was driven by increased income before taxes and $ 1.0 billion receipts of customer deposits .
these increases were partially offset by increased inventory and accounts receivable .
income taxes paid , net of refunds , in 2017 compared to 2016 were $ 2.9 billion higher due to higher income before taxes , taxable gains on sales of asml , and taxes on the isecg divestiture .
we expect approximately $ 2.0 billion of additional customer deposits in 2018 .
for 2016 compared to 2015 , the $ 2.8 billion increase in cash provided by operating activities was due to adjustments for non-cash items and changes in working capital , partially offset by lower net income .
the adjustments for non-cash items were higher in 2016 primarily due to restructuring and other charges and the change in deferred taxes , partially offset by lower depreciation .
investing activities investing cash flows consist primarily of capital expenditures ; investment purchases , sales , maturities , and disposals ; and proceeds from divestitures and cash used for acquisitions .
our capital expenditures were $ 11.8 billion in 2017 ( $ 9.6 billion in 2016 and $ 7.3 billion in 2015 ) .
the decrease in cash used for investing activities in 2017 compared to 2016 was primarily due to higher net activity of available-for sale-investments in 2017 , proceeds from our divestiture of isecg in 2017 , and higher maturities and sales of trading assets in 2017 .
this activity was partially offset by higher capital expenditures in 2017 .
the increase in cash used for investing activities in 2016 compared to 2015 was primarily due to our completed acquisition of altera , net purchases of trading assets in 2016 compared to net sales of trading assets in 2015 , and higher capital expenditures in 2016 .
this increase was partially offset by lower investments in non-marketable equity investments .
financing activities financing cash flows consist primarily of repurchases of common stock , payment of dividends to stockholders , issuance and repayment of short-term and long-term debt , and proceeds from the sale of shares of common stock through employee equity incentive plans .
the increase in cash used for financing activities in 2017 compared to 2016 was primarily due to net long-term debt activity , which was a use of cash in 2017 compared to a source of cash in 2016 .
during 2017 , we repurchased $ 3.6 billion of common stock under our authorized common stock repurchase program , compared to $ 2.6 billion in 2016 .
as of december 30 , 2017 , $ 13.2 billion remained available for repurchasing common stock under the existing repurchase authorization limit .
we base our level of common stock repurchases on internal cash management decisions , and this level may fluctuate .
proceeds from the sale of common stock through employee equity incentive plans totaled $ 770 million in 2017 compared to $ 1.1 billion in 2016 .
our total dividend payments were $ 5.1 billion in 2017 compared to $ 4.9 billion in 2016 .
we have paid a cash dividend in each of the past 101 quarters .
in january 2018 , our board of directors approved an increase to our cash dividend to $ 1.20 per share on an annual basis .
the board has declared a quarterly cash dividend of $ 0.30 per share of common stock for q1 2018 .
the dividend is payable on march 1 , 2018 to stockholders of record on february 7 , 2018 .
cash was used for financing activities in 2016 compared to cash provided by financing activities in 2015 , primarily due to fewer debt issuances and the repayment of debt in 2016 .
this activity was partially offset by repayment of commercial paper in 2015 and fewer common stock repurchases in 2016 .
md&a - results of operations consolidated results and analysis 37 |
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dd4c1f514 | selling , general , and administrative expenses selling , general , and administrative expenses increased to $ 65.2 million in 2010 from $ 52.9 million in 2009 due primarily to increases in compensation expense and recruitment costs , principally in connection with higher headcount in 2010 , and an increase in non-cash compensation expense for the reasons described above .
cost of goods sold cost of goods sold in 2010 and 2009 was $ 2.1 million and $ 1.7 million , respectively , and consisted primarily of royalties and other period costs related to arcalyst ae commercial supplies .
to date , arcalyst ae shipments to our customers have primarily consisted of supplies of inventory manufactured and expensed as research and development costs prior to fda approval in 2008 ; therefore , the costs of these supplies were not included in costs of goods sold .
other income and expense investment income decreased to $ 2.1 million in 2010 from $ 4.5 million in 2009 , due primarily to lower yields on , and lower average balances of , cash and marketable securities .
interest expense increased to $ 9.1 million in 2010 from $ 2.3 million in 2009 .
interest expense is primarily attributable to the imputed interest portion of payments to our landlord , commencing in the third quarter of 2009 , to lease newly constructed laboratory and office facilities in tarrytown , new york .
income tax expense ( benefit ) in 2010 , we did not recognize any income tax expense or benefit .
in 2009 , we recognized a $ 4.1 million income tax benefit , consisting primarily of ( i ) $ 2.7 million resulting from a provision in the worker , homeownership , and business assistance act of 2009 that allowed us to claim a refund of u.s .
federal alternative minimum tax that we paid in 2008 , and ( ii ) $ 0.7 million resulting from a provision in the american recovery and reinvestment act of 2009 that allowed us to claim a refund for a portion of our unused pre-2006 research tax credits .
years ended december 31 , 2009 and 2008 net loss regeneron reported a net loss of $ 67.8 million , or $ 0.85 per share ( basic and diluted ) , for the year ended december 31 , 2009 , compared to a net loss of $ 79.1 million , or $ 1.00 per share ( basic and diluted ) for 2008 .
the decrease in our net loss in 2009 was principally due to higher collaboration revenue in connection with our antibody collaboration with sanofi-aventis , receipt of a $ 20.0 million substantive performance milestone payment in connection with our vegf trap-eye collaboration with bayer healthcare , and higher arcalyst ae sales , partly offset by higher research and development expenses , as detailed below .
revenues revenues in 2009 and 2008 consist of the following: .
( in millions ) | 2009 | 2008
----------------------------------- | ------- | -------
collaboration revenue | |
sanofi-aventis | $ 247.2 | $ 154.0
bayer healthcare | 67.3 | 31.2
total collaboration revenue | 314.5 | 185.2
technology licensing revenue | 40.0 | 40.0
net product sales | 18.4 | 6.3
contract research and other revenue | 6.4 | 7.0
total revenue | $ 379.3 | $ 238.5 |
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dd4c3fa1c | after reviewing earnings per share and operating cash flow results against the performance objectives in the above table , the personnel committee set the entergy achievement multiplier at 140% ( 140 % ) of target .
under the terms of the executive incentive plan , the entergy achievement multiplier is automatically increased by 25 percent for the members of the office of the chief executive ( including mr .
denault and mr .
smith , but not the other named executive officers ) , subject to the personnel committee's discretion to adjust the automatic multiplier downward or eliminate it altogether .
in accordance with section 162 ( m ) of the internal revenue code , the multiplier which entergy refers to as the management effectiveness factor is intended to provide the committee , through the exercise of negative discretion , a mechanism to take into consideration the specific achievement factors relating to the overall performance of entergy corporation .
in january 2009 , the committee exercised its negative discretion to eliminate the management effectiveness factor , reflecting the personnel committee's determination that the entergy achievement multiplier , in and of itself without the management effectiveness factor , was consistent with the performance levels achieved by management .
the annual incentive award for the named executive officers ( other than mr .
leonard , mr .
denault and mr .
smith ) is awarded from an incentive pool approved by the committee .
from this pool , each named executive officer's supervisor determines the annual incentive payment based on the entergy achievement multiplier .
the supervisor has the discretion to increase or decrease the multiple used to determine an incentive award based on individual and business unit performance .
the incentive awards are subject to the ultimate approval of entergy's chief executive officer .
the following table shows the executive and management incentive plans payments as a percentage of base salary for 2008 : named exeutive officer target percentage base salary 2008 annual incentive award .
named exeutive officer | target | percentage base salary | 2008 annual incentive award
------------------------- | -------------- | ---------------------- | ---------------------------
j . wayne leonard | 120% ( 120 % ) | 168% ( 168 % ) | $ 2169720
leo p . denault | 70% ( 70 % ) | 98% ( 98 % ) | $ 617400
richard j . smith | 70% ( 70 % ) | 98% ( 98 % ) | $ 632100
e . renae conley | 60% ( 60 % ) | 102% ( 102 % ) | $ 415000
hugh t . mcdonald | 50% ( 50 % ) | 50% ( 50 % ) | $ 160500
joseph f . domino | 50% ( 50 % ) | 72% ( 72 % ) | $ 230000
roderick k . west | 40% ( 40 % ) | 80% ( 80 % ) | $ 252000
haley fisackerly | 40% ( 40 % ) | 46% ( 46 % ) | $ 125700
theodore h . bunting jr . | 60% ( 60 % ) | 117% ( 117 % ) | $ 400023
carolyn shanks | 50% ( 50 % ) | 72% ( 72 % ) | $ 229134
jay a . lewis | 40% ( 40 % ) | 60% ( 60 % ) | $ 128505
while ms .
shanks and mr .
lewis are no longer ceo-entergy mississippi and principal financial officer for the subsidiaries , respectively , ms .
shanks continues to participate in the executive incentive plan , and mr .
lewis continues to participate in the management incentive plan as they remain employees of entergy since the contemplated enexus separation has not occurred and enexus remains a subsidiary of entergy .
nuclear retention plan some of entergy's executives , but not any of the named executive officers , participate in a special retention plan for officers and other leaders with special expertise in the nuclear industry .
the committee authorized the plan to attract and retain management talent in the nuclear power field , a field which requires unique technical and other expertise that is in great demand in the utility industry .
the plan provides for bonuses to be paid over a three-year employment period .
subject to continued employment with a participating company , a participating employee is eligible to receive a special cash bonus consisting of three payments , each consisting of an amount from 15% ( 15 % ) to 30% ( 30 % ) of such participant's base salary. |
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dd4c0fc0e | in september 2006 , the fasb issued sfas 158 , 201cemployers 2019 accounting for defined benefit pension and other postretirement plans , an amendment of fasb statements no .
87 , 88 , 106 , and 132 ( r ) . 201d sfas 158 requires companies to recognize the over-funded and under-funded status of defined benefit pension and other postretire- ment plans as assets or liabilities on their balance sheets .
in addition , changes in the funded status must be recognized through other comprehensive income in shareholders 2019 equity in the year in which the changes occur .
we adopted sfas 158 on september 28 , 2007 .
in accordance with the transition rules in sfas 158 , this standard is being adopted on a prospective basis .
the adoption of sfas 158 resulted in an immaterial adjustment to our balance sheet , and had no impact on our net earnings or cash flows .
comprehensive income ( loss ) the company accounts for comprehensive income ( loss ) in accordance with the provisions of sfas no .
130 , 201creporting comprehensive income 201d ( 201csfas no .
130 201d ) .
sfas no .
130 is a financial statement presentation standard that requires the company to disclose non-owner changes included in equity but not included in net income or loss .
accumulated comprehensive loss presented in the financial statements consists of adjustments to the company 2019s minimum pension liability as follows ( in thousands ) : pension adjustments accumulated comprehensive .
| pension adjustments | accumulated other comprehensive loss
-------------------------------------- | ------------------- | ------------------------------------
balance as of september 30 2005 | -1137 ( 1137 ) | -1137 ( 1137 )
change in period | 538 | 538
balance as of september 29 2006 | $ -599 ( 599 ) | $ -599 ( 599 )
pension adjustment | 159 | 159
adjustment to initially apply sfas 158 | 226 | 226
balance as of september 28 2007 | $ -214 ( 214 ) | $ -214 ( 214 )
recently issued accounting pronouncements fin 48 in july 2006 , the fasb issued fasb interpretation no .
48 , 201caccounting for uncertainty in income taxes 2014 an interpretation of fasb statement no .
109 201d ( fin 48 ) , which clarifies the accounting and disclosure for uncertainty in tax positions , as defined .
fin 48 seeks to reduce the diversity in practice associated with certain aspects of the recognition and measurement related to accounting for income taxes .
this interpretation is effective for fiscal years beginning after december 15 , 2006 , and is therefore effective for the company in fiscal year 2008 .
we are currently evaluating the impact that adopting fin 48 will have on the company 2019s financial position and results of operations , however at this time the company does not expect the impact to materially affect its results from operations or financial position .
sfas 157 in september 2006 , the fasb issued sfas no .
157 , 201cfair value measurements 201d ( 201csfas 157 201d ) which defines fair value , establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements .
sfas 157 is effective for financial statements issued for fiscal years beginning after november 15 , 2007 and interim periods within those fiscal years .
the company has not yet determined the impact that sfas 157 will have on its results from operations or financial position .
sab 108 in september 2006 , the securities and exchange commission issued staff accounting bulletin no .
108 , 201cconsidering the effects of prior year misstatements when quantifying misstatements in current year financial statements 201d ( 201csab 108 201d ) , which provides interpretive guidance on how the effects of the carryover or reversal of skyworks solutions , inc .
2007 annual report .
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notes to consolidated financial statements 2014 ( continued ) |
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dd4c5060a | entergy gulf states louisiana , l.l.c .
management 2019s financial discussion and analysis all debt and common and preferred equity/membership interest issuances by entergy gulf states louisiana require prior regulatory approval .
preferred equity/membership interest and debt issuances are also subject to issuance tests set forth in its bond indentures and other agreements .
entergy gulf states louisiana has sufficient capacity under these tests to meet its foreseeable capital needs .
entergy gulf states louisiana 2019s receivables from the money pool were as follows as of december 31 for each of the following years: .
2011 | 2010 | 2009 | 2008
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 23596 | $ 63003 | $ 50131 | $ 11589
see note 4 to the financial statements for a description of the money pool .
entergy gulf states louisiana has a credit facility in the amount of $ 100 million scheduled to expire in august 2012 .
no borrowings were outstanding under the credit facility as of december 31 , 2011 .
entergy gulf states louisiana obtained short-term borrowing authorization from the ferc under which it may borrow through october 2013 , up to the aggregate amount , at any one time outstanding , of $ 200 million .
see note 4 to the financial statements for further discussion of entergy gulf states louisiana 2019s short-term borrowing limits .
entergy gulf states louisiana has also obtained an order from the ferc authorizing long-term securities issuances through july 2013 .
hurricane gustav and hurricane ike in september 2008 , hurricane gustav and hurricane ike caused catastrophic damage to entergy gulf states louisiana 2019s service territory .
the storms resulted in widespread power outages , significant damage to distribution , transmission , and generation infrastructure , and the loss of sales during the power outages .
in october 2008 , entergy gulf states louisiana drew all of its $ 85 million funded storm reserve .
on october 15 , 2008 , the lpsc approved entergy gulf states louisiana 2019s request to defer and accrue carrying cost on unrecovered storm expenditures during the period the company seeks regulatory recovery .
the approval was without prejudice to the ultimate resolution of the total amount of prudently incurred storm cost or final carrying cost rate .
entergy gulf states louisiana and entergy louisiana filed their hurricane gustav and hurricane ike storm cost recovery case with the lpsc in may 2009 .
in september 2009 , entergy gulf states louisiana and entergy louisiana and the louisiana utilities restoration corporation ( lurc ) , an instrumentality of the state of louisiana , filed with the lpsc an application requesting that the lpsc grant financing orders authorizing the financing of entergy gulf states louisiana 2019s and entergy louisiana 2019s storm costs , storm reserves , and issuance costs pursuant to act 55 of the louisiana regular session of 2007 ( act 55 financings ) .
entergy gulf states louisiana 2019s and entergy louisiana 2019s hurricane katrina and hurricane rita storm costs were financed primarily by act 55 financings , as discussed below .
entergy gulf states louisiana and entergy louisiana also filed an application requesting lpsc approval for ancillary issues including the mechanism to flow charges and act 55 financing savings to customers via a storm cost offset rider .
in december 2009 , entergy gulf states louisiana and entergy louisiana entered into a stipulation agreement with the lpsc staff that provides for total recoverable costs of approximately $ 234 million for entergy gulf states louisiana and $ 394 million for entergy louisiana , including carrying costs .
under this stipulation , entergy gulf states louisiana agrees not to recover $ 4.4 million and entergy louisiana agrees not to recover $ 7.2 million of their storm restoration spending .
the stipulation also permits replenishing entergy gulf states louisiana's storm reserve in the amount of $ 90 million and entergy louisiana's storm reserve in the amount of $ 200 million when the act 55 financings are accomplished .
in march and april 2010 , entergy gulf states louisiana , entergy louisiana , and other parties to the proceeding filed with the lpsc an uncontested stipulated settlement that includes these terms and also includes entergy gulf states louisiana 2019s and entergy louisiana's proposals under the act 55 financings , which includes a commitment to pass on to customers a minimum of $ 15.5 |
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dd4979a3a | supplementary information on oil and gas producing activities ( unaudited ) 2017 proved reserves decreased by 647 mmboe primarily due to the following : 2022 revisions of previous estimates : increased by 49 mmboe primarily due to the acceleration of higher economic wells in the bakken into the 5-year plan resulting in an increase of 44 mmboe , with the remainder being due to revisions across the business .
2022 extensions , discoveries , and other additions : increased by 116 mmboe primarily due to an increase of 97 mmboe associated with the expansion of proved areas and wells to sales from unproved categories in oklahoma .
2022 purchases of reserves in place : increased by 28 mmboe from acquisitions of assets in the northern delaware basin in new mexico .
2022 production : decreased by 145 mmboe .
2022 sales of reserves in place : decreased by 695 mmboe including 685 mmboe associated with the sale of our canadian business and 10 mmboe associated with divestitures of certain conventional assets in oklahoma and colorado .
see item 8 .
financial statements and supplementary data - note 5 to the consolidated financial statements for information regarding these dispositions .
2016 proved reserves decreased by 67 mmboe primarily due to the following : 2022 revisions of previous estimates : increased by 63 mmboe primarily due to an increase of 151 mmboe associated with the acceleration of higher economic wells in the u.s .
resource plays into the 5-year plan and a decrease of 64 mmboe due to u.s .
technical revisions .
2022 extensions , discoveries , and other additions : increased by 60 mmboe primarily associated with the expansion of proved areas and new wells to sales from unproven categories in oklahoma .
2022 purchases of reserves in place : increased by 34 mmboe from acquisition of stack assets in oklahoma .
2022 production : decreased by 144 mmboe .
2022 sales of reserves in place : decreased by 84 mmboe associated with the divestitures of certain wyoming and gulf of mexico assets .
2015 proved reserves decreased by 35 mmboe primarily due to the following : 2022 revisions of previous estimates : decreased by 2 mmboe primarily resulting from an increase of 105 mmboe associated with drilling programs in u.s .
resource plays and an increase of 67 mmboe in discontinued operations due to technical reevaluation and lower royalty percentages related to lower realized prices , offset by a decrease of 173 mmboe which was largely due to reductions to our capital development program and adherence to the sec 5-year rule .
2022 extensions , discoveries , and other additions : increased by140 mmboe as a result of drilling programs in our u.s .
resource plays .
2022 production : decreased by 157 mmboe .
2022 sales of reserves in place : u.s .
conventional assets sales contributed to a decrease of 18 mmboe .
changes in proved undeveloped reserves as of december 31 , 2017 , 546 mmboe of proved undeveloped reserves were reported , a decrease of 6 mmboe from december 31 , 2016 .
the following table shows changes in proved undeveloped reserves for 2017 : ( mmboe ) .
beginning of year | 552
------------------------------------------ | ----------
revisions of previous estimates | 5
improved recovery | 2014
purchases of reserves in place | 15
extensions discoveries and other additions | 57
dispositions | 2014
transfers to proved developed | -83 ( 83 )
end of year | 546
revisions of prior estimates .
revisions of prior estimates increased 5 mmboe during 2017 , primarily due to a 44 mmboe increase in the bakken from an acceleration of higher economic wells into the 5-year plan , offset by a decrease of 40 mmboe in oklahoma due to the removal of less economic wells from the 5-year plan .
extensions , discoveries and other additions .
increased 57 mmboe through expansion of proved areas in oklahoma. |
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dd4bf297e | the increase in property operating expenses from our large market same store group is primarily the result of increases in real estate taxes of $ 3.2 million , personnel expenses of $ 1.9 million , water expenses of approximately $ 1.0 million , cable expenses of $ 0.5 million , and waste removal expenses of $ 0.2 million .
the increase in property operating expenses from our secondary market same store group is primarily a result of increases in other operating expenses of $ 1.5 million , real estate taxes of $ 1.1 million , and personnel expenses of $ 1.2 million .
the decrease in property operating expenses from our non-same store and other group is primarily the result of decreases in personnel expenses of $ 2.4 million and utility expenses of $ 1.7 million .
depreciation and amortization the following table shows our depreciation and amortization expense by segment for the years ended december 31 , 2015 and december 31 , 2014 ( dollars in thousands ) : year ended december 31 , 2015 year ended december 31 , 2014 increase percentage increase .
| year ended december 31 2015 | year ended december 31 2014 | increase | percentage increase
--------------------------- | --------------------------- | --------------------------- | ---------------- | -------------------
large market same store | $ 168872 | $ 174957 | $ -6085 ( 6085 ) | ( 3.5 ) % ( % )
secondary market same store | 85008 | 86058 | -1050 ( 1050 ) | ( 1.2 ) % ( % )
same store portfolio | 253880 | 261015 | -7135 ( 7135 ) | ( 2.7 ) % ( % )
non-same store and other | 40640 | 40797 | -157 ( 157 ) | ( 0.4 ) % ( % )
total | $ 294520 | $ 301812 | $ -7292 ( 7292 ) | ( 2.4 ) % ( % )
the decrease in depreciation and amortization expense is primarily due to a decrease of $ 19.4 million related to the amortization of the fair value of in-place leases and resident relationships acquired as a result of the merger from the year ended december 31 , 2014 to the year ended december 31 , 2015 .
this decrease was partially offset by an increase in depreciation expense of $ 11.7 million driven by an increase in gross real estate assets from the year ended december 31 , 2014 to the year ended december 31 , 2015 .
property management expenses property management expenses for the year ended december 31 , 2015 were approximately $ 31.0 million , a decrease of $ 1.1 million from the year ended december 31 , 2014 .
the majority of the decrease was related to a decrease in state franchise taxes of $ 2.1 million , partially offset by an increase in insurance expense of $ 0.6 million , an increase in payroll expense of $ 0.3 million , and an increase in incentive expense $ 0.3 million .
general and administrative expenses general and administrative expenses for the year ended december 31 , 2015 were approximately $ 25.7 million , an increase of $ 4.8 million from the year ended december 31 , 2014 .
the majority of the increase was related to increases in legal fees of $ 2.7 million and stock option expenses of $ 1.6 million .
merger and integration related expenses there were no merger or integration related expenses for the year ended december 31 , 2015 , as these expenses related primarily to severance , legal , professional , temporary systems , staffing , and facilities costs incurred for the acquisition and integration of colonial .
for the year ended december 31 , 2014 , merger and integration related expenses were approximately $ 3.2 million and $ 8.4 million , respectively .
interest expense interest expense for the year ended december 31 , 2015 was approximately $ 122.3 million , a decrease of $ 1.6 million from the year ended december 31 , 2014 .
the decrease was primarily the result of a decrease in amortization of deferred financing cost from the year ended december 31 , 2014 to the year ended december 31 , 2015 of approximately $ 0.9 million .
also , the overall debt balance decreased from $ 3.5 billion to $ 3.4 billion , a decrease of $ 85.1 million .
the average effective interest rate remained at 3.7% ( 3.7 % ) and the average years to rate maturity increased from 4.4 years to 4.8 years .
job title mid-america apartment 10-k revision 1 serial <12345678> date sunday , march 20 , 2016 job number 304352-1 type page no .
50 operator abigaels |