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dd4be5b20 | notes to consolidated financial statements the table below presents information regarding group inc . 2019s regulatory capital ratios and tier 1 leverage ratio under basel i , as implemented by the federal reserve board .
the information as of december 2013 reflects the revised market risk regulatory capital requirements .
these changes resulted in increased regulatory capital requirements for market risk .
the information as of december 2012 is prior to the implementation of these revised market risk regulatory capital requirements. .
$ in millions | as of december 2013 | as of december 2012
--------------------- | ------------------- | -------------------
tier 1 capital | $ 72471 | $ 66977
tier 2 capital | $ 13632 | $ 13429
total capital | $ 86103 | $ 80406
risk-weighted assets | $ 433226 | $ 399928
tier 1 capital ratio | 16.7% ( 16.7 % ) | 16.7% ( 16.7 % )
total capital ratio | 19.9% ( 19.9 % ) | 20.1% ( 20.1 % )
tier 1 leverage ratio | 8.1% ( 8.1 % ) | 7.3% ( 7.3 % )
revised capital framework the u.s .
federal bank regulatory agencies ( agencies ) have approved revised risk-based capital and leverage ratio regulations establishing a new comprehensive capital framework for u.s .
banking organizations ( revised capital framework ) .
these regulations are largely based on the basel committee 2019s december 2010 final capital framework for strengthening international capital standards ( basel iii ) and also implement certain provisions of the dodd-frank act .
under the revised capital framework , group inc .
is an 201cadvanced approach 201d banking organization .
below are the aspects of the rules that are most relevant to the firm , as an advanced approach banking organization .
definition of capital and capital ratios .
the revised capital framework introduced changes to the definition of regulatory capital , which , subject to transitional provisions , became effective across the firm 2019s regulatory capital and leverage ratios on january 1 , 2014 .
these changes include the introduction of a new capital measure called common equity tier 1 ( cet1 ) , and the related regulatory capital ratio of cet1 to rwas ( cet1 ratio ) .
in addition , the definition of tier 1 capital has been narrowed to include only cet1 and instruments such as perpetual non- cumulative preferred stock , which meet certain criteria .
certain aspects of the revised requirements phase in over time .
these include increases in the minimum capital ratio requirements and the introduction of new capital buffers and certain deductions from regulatory capital ( such as investments in nonconsolidated financial institutions ) .
in addition , junior subordinated debt issued to trusts is being phased out of regulatory capital .
the minimum cet1 ratio is 4.0% ( 4.0 % ) as of january 1 , 2014 and will increase to 4.5% ( 4.5 % ) on january 1 , 2015 .
the minimum tier 1 capital ratio increased from 4.0% ( 4.0 % ) to 5.5% ( 5.5 % ) on january 1 , 2014 and will increase to 6.0% ( 6.0 % ) beginning january 1 , 2015 .
the minimum total capital ratio remains unchanged at 8.0% ( 8.0 % ) .
these minimum ratios will be supplemented by a new capital conservation buffer that phases in , beginning january 1 , 2016 , in increments of 0.625% ( 0.625 % ) per year until it reaches 2.5% ( 2.5 % ) on january 1 , 2019 .
the revised capital framework also introduces a new counter-cyclical capital buffer , to be imposed in the event that national supervisors deem it necessary in order to counteract excessive credit growth .
risk-weighted assets .
in february 2014 , the federal reserve board informed us that we have completed a satisfactory 201cparallel run , 201d as required of advanced approach banking organizations under the revised capital framework , and therefore changes to rwas will take effect beginning with the second quarter of 2014 .
accordingly , the calculation of rwas in future quarters will be based on the following methodologies : 2030 during the first quarter of 2014 2014 the basel i risk-based capital framework adjusted for certain items related to existing capital deductions and the phase-in of new capital deductions ( basel i adjusted ) ; 2030 during the remaining quarters of 2014 2014 the higher of rwas computed under the basel iii advanced approach or the basel i adjusted calculation ; and 2030 beginning in the first quarter of 2015 2014 the higher of rwas computed under the basel iii advanced or standardized approach .
goldman sachs 2013 annual report 191 |
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dd4bce0f6 | entergy new orleans , inc .
management 2019s financial discussion and analysis also in addition to the contractual obligations , entergy new orleans has $ 53.7 million of unrecognized tax benefits and interest net of unused tax attributes and payments for which the timing of payments beyond 12 months cannot be reasonably estimated due to uncertainties in the timing of effective settlement of tax positions .
see note 3 to the financial statements for additional information regarding unrecognized tax benefits .
the planned capital investment estimate for entergy new orleans reflects capital required to support existing business .
the estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints , environmental compliance , market volatility , economic trends , changes in project plans , and the ability to access capital .
management provides more information on long-term debt and preferred stock maturities in notes 5 and 6 and to the financial statements .
as an indirect , wholly-owned subsidiary of entergy corporation , entergy new orleans pays dividends from its earnings at a percentage determined monthly .
entergy new orleans 2019s long-term debt indentures contain restrictions on the payment of cash dividends or other distributions on its common and preferred stock .
sources of capital entergy new orleans 2019s sources to meet its capital requirements include : internally generated funds ; cash on hand ; and debt and preferred stock issuances .
entergy new orleans may refinance , redeem , or otherwise retire debt and preferred stock prior to maturity , to the extent market conditions and interest and dividend rates are favorable .
entergy new orleans 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 )
$ 9074 | $ 21820 | $ 66149 | $ 60093
see note 4 to the financial statements for a description of the money pool .
entergy new orleans has 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 $ 100 million .
see note 4 to the financial statements for further discussion of entergy new orleans 2019s short-term borrowing limits .
the long-term securities issuances of entergy new orleans are limited to amounts authorized by the city council , and the current authorization extends through july 2012 .
entergy louisiana 2019s ninemile point unit 6 self-build project in june 2011 , entergy louisiana filed with the lpsc an application seeking certification that the public necessity and convenience would be served by entergy louisiana 2019s construction of a combined-cycle gas turbine generating facility ( ninemile 6 ) at its existing ninemile point electric generating station .
ninemile 6 will be a nominally-sized 550 mw unit that is estimated to cost approximately $ 721 million to construct , excluding interconnection and transmission upgrades .
entergy gulf states louisiana joined in the application , seeking certification of its purchase under a life-of-unit power purchase agreement of up to 35% ( 35 % ) of the capacity and energy generated by ninemile 6 .
the ninemile 6 capacity and energy is proposed to be allocated 55% ( 55 % ) to entergy louisiana , 25% ( 25 % ) to entergy gulf states louisiana , and 20% ( 20 % ) to entergy new orleans .
in february 2012 the city council passed a resolution authorizing entergy new orleans to purchase 20% ( 20 % ) of the ninemile 6 energy and capacity .
if approvals are obtained from the lpsc and other permitting agencies , ninemile 6 construction is |
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dd4983698 | republic services , inc .
notes to consolidated financial statements 2014 ( continued ) the following table summarizes the activity in our gross unrecognized tax benefits for the years ended december 31: .
| 2015 | 2014 | 2013
--------------------------------------------------------------------------- | -------------- | ------------ | --------------
balance at beginning of year | $ 70.1 | $ 72.0 | $ 84.7
additions based on tax positions related to current year | 0.2 | 0.8 | 0.3
additions for tax positions of prior years | 1.4 | 5.0 | 11.4
reductions for tax positions of prior years | -10.2 ( 10.2 ) | -6.0 ( 6.0 ) | -2.4 ( 2.4 )
reductions for tax positions resulting from lapse of statute of limitations | -0.6 ( 0.6 ) | -0.2 ( 0.2 ) | -1.3 ( 1.3 )
settlements | -13.9 ( 13.9 ) | -1.5 ( 1.5 ) | -20.7 ( 20.7 )
balance at end of year | $ 47.0 | $ 70.1 | $ 72.0
during 2015 , we settled tax matters in various states and puerto rico which reduced our gross unrecognized tax benefits by $ 13.9 million .
during 2014 , we settled tax matters in various jurisdictions and reduced our gross unrecognized tax benefits by $ 1.5 million .
during 2013 , we settled with the irs appeals division and the joint committee on taxation our 2009 and 2010 tax years .
the resolution of these tax periods in addition to various state tax resolutions during the year reduced our gross unrecognized tax benefits by $ 20.7 million .
included in our gross unrecognized tax benefits as of december 31 , 2015 and 2014 are $ 30.5 million and $ 45.6 million of unrecognized tax benefits ( net of the federal benefit on state matters ) that , if recognized , would affect our effective income tax rate in future periods .
we recognize interest and penalties as incurred within the provision for income taxes in our consolidated statements of income .
related to the unrecognized tax benefits previously noted , we recorded interest expense of approximately $ 1.2 million during 2015 and , in total as of december 31 , 2015 , have recognized a liability for penalties of $ 0.5 million and interest of $ 10.3 million .
during 2014 , we accrued interest of approximately $ 1.5 million and , in total as of december 31 , 2014 , had recognized a liability for penalties of $ 0.5 million and interest of $ 18.7 million .
during 2013 , we accrued interest of approximately $ 1.2 million and , in total as of december 31 , 2013 , had recognized a liability for penalties of $ 0.5 million and interest of $ 17.0 million .
gross unrecognized benefits that we expect to settle in the following twelve months are in the range of $ 0 to $ 10 million ; however , it is reasonably possible that the amount of unrecognized tax benefits may either increase or decrease in the next twelve months .
we are currently under examination or administrative review by state and local taxing authorities for various tax years .
these state audits are ongoing .
we believe the recorded liabilities for uncertain tax positions are adequate .
however , a significant assessment against us in excess of the liabilities recorded could have a material adverse effect on our consolidated financial position , results of operations or cash flows. |
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dd4bb7a0e | the following table sets forth the components of foreign currency translation adjustments for fiscal 2011 , 2010 and 2009 ( in thousands ) : beginning balance foreign currency translation adjustments income tax effect relating to translation adjustments for undistributed foreign earnings ending balance $ 7632 ( 2208 ) $ 10580 $ 10640 ( 4144 ) $ 7632 $ ( 431 ) 17343 ( 6272 ) $ 10640 stock repurchase program to facilitate our stock repurchase program , designed to return value to our stockholders and minimize dilution from stock issuances , we repurchase shares in the open market and also enter into structured repurchase agreements with third-parties .
authorization to repurchase shares to cover on-going dilution was not subject to expiration .
however , this repurchase program was limited to covering net dilution from stock issuances and was subject to business conditions and cash flow requirements as determined by our board of directors from time to time .
during the third quarter of fiscal 2010 , our board of directors approved an amendment to our stock repurchase program authorized in april 2007 from a non-expiring share-based authority to a time-constrained dollar-based authority .
as part of this amendment , the board of directors granted authority to repurchase up to $ 1.6 billion in common stock through the end of fiscal 2012 .
this amended program did not affect the $ 250.0 million structured stock repurchase agreement entered into during march 2010 .
as of december 3 , 2010 , no prepayments remain under that agreement .
during fiscal 2011 , 2010 and 2009 , we entered into several structured repurchase agreements with large financial institutions , whereupon we provided the financial institutions with prepayments totaling $ 695.0 million , $ 850.0 million and $ 350.0 million , respectively .
of the $ 850.0 million of prepayments during fiscal 2010 , $ 250.0 million was under the stock repurchase program prior to the program amendment and the remaining $ 600.0 million was under the amended $ 1.6 billion time-constrained dollar- based authority .
we enter into these agreements in order to take advantage of repurchasing shares at a guaranteed discount to the volume weighted average price ( 201cvwap 201d ) of our common stock over a specified period of time .
we only enter into such transactions when the discount that we receive is higher than the foregone return on our cash prepayments to the financial institutions .
there were no explicit commissions or fees on these structured repurchases .
under the terms of the agreements , there is no requirement for the financial institutions to return any portion of the prepayment to us .
the financial institutions agree to deliver shares to us at monthly intervals during the contract term .
the parameters used to calculate the number of shares deliverable are : the total notional amount of the contract , the number of trading days in the contract , the number of trading days in the interval and the average vwap of our stock during the interval less the agreed upon discount .
during fiscal 2011 , we repurchased approximately 21.8 million shares at an average price of $ 31.81 through structured repurchase agreements entered into during fiscal 2011 .
during fiscal 2010 , we repurchased approximately 31.2 million shares at an average price of $ 29.19 through structured repurchase agreements entered into during fiscal 2009 and fiscal 2010 .
during fiscal 2009 , we repurchased approximately 15.2 million shares at an average price per share of $ 27.89 through structured repurchase agreements entered into during fiscal 2008 and fiscal 2009 .
for fiscal 2011 , 2010 and 2009 , the prepayments were classified as treasury stock on our consolidated balance sheets at the payment date , though only shares physically delivered to us by december 2 , 2011 , december 3 , 2010 and november 27 , 2009 were excluded from the computation of earnings per share .
as of december 2 , 2011 and december 3 , 2010 , no prepayments remained under these agreements .
as of november 27 , 2009 , approximately $ 59.9 million of prepayments remained under these agreements .
subsequent to december 2 , 2011 , as part of our $ 1.6 billion stock repurchase program , we entered into a structured stock repurchase agreement with a large financial institution whereupon we provided them with a prepayment of $ 80.0 million .
this amount will be classified as treasury stock on our consolidated balance sheets .
upon completion of the $ 80.0 million stock table of contents adobe systems incorporated notes to consolidated financial statements ( continued ) jarcamo typewritten text .
| 2011 | 2010 | 2009
--------------------------------------------------------------------------------------- | -------------- | -------------- | --------------
beginning balance | $ 7632 | $ 10640 | $ -431 ( 431 )
foreign currency translation adjustments | 5156 | -4144 ( 4144 ) | 17343
income tax effect relating to translation adjustments forundistributed foreign earnings | -2208 ( 2208 ) | 1136 | -6272 ( 6272 )
ending balance | $ 10580 | $ 7632 | $ 10640
the following table sets forth the components of foreign currency translation adjustments for fiscal 2011 , 2010 and 2009 ( in thousands ) : beginning balance foreign currency translation adjustments income tax effect relating to translation adjustments for undistributed foreign earnings ending balance $ 7632 ( 2208 ) $ 10580 $ 10640 ( 4144 ) $ 7632 $ ( 431 ) 17343 ( 6272 ) $ 10640 stock repurchase program to facilitate our stock repurchase program , designed to return value to our stockholders and minimize dilution from stock issuances , we repurchase shares in the open market and also enter into structured repurchase agreements with third-parties .
authorization to repurchase shares to cover on-going dilution was not subject to expiration .
however , this repurchase program was limited to covering net dilution from stock issuances and was subject to business conditions and cash flow requirements as determined by our board of directors from time to time .
during the third quarter of fiscal 2010 , our board of directors approved an amendment to our stock repurchase program authorized in april 2007 from a non-expiring share-based authority to a time-constrained dollar-based authority .
as part of this amendment , the board of directors granted authority to repurchase up to $ 1.6 billion in common stock through the end of fiscal 2012 .
this amended program did not affect the $ 250.0 million structured stock repurchase agreement entered into during march 2010 .
as of december 3 , 2010 , no prepayments remain under that agreement .
during fiscal 2011 , 2010 and 2009 , we entered into several structured repurchase agreements with large financial institutions , whereupon we provided the financial institutions with prepayments totaling $ 695.0 million , $ 850.0 million and $ 350.0 million , respectively .
of the $ 850.0 million of prepayments during fiscal 2010 , $ 250.0 million was under the stock repurchase program prior to the program amendment and the remaining $ 600.0 million was under the amended $ 1.6 billion time-constrained dollar- based authority .
we enter into these agreements in order to take advantage of repurchasing shares at a guaranteed discount to the volume weighted average price ( 201cvwap 201d ) of our common stock over a specified period of time .
we only enter into such transactions when the discount that we receive is higher than the foregone return on our cash prepayments to the financial institutions .
there were no explicit commissions or fees on these structured repurchases .
under the terms of the agreements , there is no requirement for the financial institutions to return any portion of the prepayment to us .
the financial institutions agree to deliver shares to us at monthly intervals during the contract term .
the parameters used to calculate the number of shares deliverable are : the total notional amount of the contract , the number of trading days in the contract , the number of trading days in the interval and the average vwap of our stock during the interval less the agreed upon discount .
during fiscal 2011 , we repurchased approximately 21.8 million shares at an average price of $ 31.81 through structured repurchase agreements entered into during fiscal 2011 .
during fiscal 2010 , we repurchased approximately 31.2 million shares at an average price of $ 29.19 through structured repurchase agreements entered into during fiscal 2009 and fiscal 2010 .
during fiscal 2009 , we repurchased approximately 15.2 million shares at an average price per share of $ 27.89 through structured repurchase agreements entered into during fiscal 2008 and fiscal 2009 .
for fiscal 2011 , 2010 and 2009 , the prepayments were classified as treasury stock on our consolidated balance sheets at the payment date , though only shares physically delivered to us by december 2 , 2011 , december 3 , 2010 and november 27 , 2009 were excluded from the computation of earnings per share .
as of december 2 , 2011 and december 3 , 2010 , no prepayments remained under these agreements .
as of november 27 , 2009 , approximately $ 59.9 million of prepayments remained under these agreements .
subsequent to december 2 , 2011 , as part of our $ 1.6 billion stock repurchase program , we entered into a structured stock repurchase agreement with a large financial institution whereupon we provided them with a prepayment of $ 80.0 million .
this amount will be classified as treasury stock on our consolidated balance sheets .
upon completion of the $ 80.0 million stock table of contents adobe systems incorporated notes to consolidated financial statements ( continued ) jarcamo typewritten text |
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dd4c62ddc | zimmer biomet holdings , inc .
2015 form 10-k annual report notes to consolidated financial statements ( continued ) these unaudited pro forma results have been prepared for comparative purposes only and include adjustments such as inventory step-up , amortization of acquired intangible assets and interest expense on debt incurred to finance the merger .
material , nonrecurring pro forma adjustments directly attributable to the biomet merger include : 2022 the $ 90.4 million of merger compensation expense for unvested lvb stock options and lvb stock-based awards was removed from net earnings for the year ended december 31 , 2015 and recognized as an expense in the year ended december 31 , 2014 .
2022 the $ 73.0 million of retention plan expense was removed from net earnings for the year ended december 31 , 2015 and recognized as an expense in the year ended december 31 , 2014 .
2022 transaction costs of $ 17.7 million was removed from net earnings for the year ended december 31 , 2015 and recognized as an expense in the year ended december 31 , other acquisitions we made a number of business acquisitions during the years 2014 and 2013 .
in october 2014 , we acquired etex holdings , inc .
( 201cetex 201d ) .
the etex acquisition enhanced our biologics portfolio through the addition of etex 2019s bone void filler products .
in may 2013 , we acquired the business assets of knee creations , llc ( 201cknee creations 201d ) .
the knee creations acquisition enhanced our product portfolio of joint preservation solutions .
in june 2013 , we acquired normed medizin-technik gmbh ( 201cnormed 201d ) .
the normed acquisition strengthened our extremities and trauma product portfolios and brought new product development capabilities in the foot and ankle and hand and wrist markets .
the results of operations of these acquired companies have been included in our consolidated results of operations subsequent to the transaction dates , and the respective assets and liabilities of the acquired companies have been recorded at their estimated fair values in our consolidated statement of financial position as of the transaction dates , with any excess purchase price being recorded as goodwill .
pro forma financial information and other information required by gaap have not been included for these acquisitions as they , individually and in the aggregate , did not have a material impact upon our financial position or results of operations .
5 .
share-based compensation our share-based payments primarily consist of stock options and restricted stock units ( 201crsus 201d ) .
share-based compensation expense was as follows ( in millions ) : .
for the years ended december 31, | 2015 | 2014 | 2013
-------------------------------- | -------------- | -------------- | --------------
total expense pre-tax | $ 46.4 | $ 49.4 | $ 48.5
tax benefit related to awards | -14.5 ( 14.5 ) | -15.5 ( 15.5 ) | -15.6 ( 15.6 )
total expense net of tax | $ 31.9 | $ 33.9 | $ 32.9
stock options we had two equity compensation plans in effect at december 31 , 2015 : the 2009 stock incentive plan ( 201c2009 plan 201d ) and the stock plan for non-employee directors .
the 2009 plan succeeded the 2006 stock incentive plan ( 201c2006 plan 201d ) and the teamshare stock option plan ( 201cteamshare plan 201d ) .
no further awards have been granted under the 2006 plan or under the teamshare plan since may 2009 , and shares remaining available for grant under those plans have been merged into the 2009 plan .
vested stock options previously granted under the 2006 plan , the teamshare plan and another prior plan , the 2001 stock incentive plan , remained outstanding as of december 31 , 2015 .
we have reserved the maximum number of shares of common stock available for award under the terms of each of these plans .
we have registered 57.9 million shares of common stock under these plans .
the 2009 plan provides for the grant of nonqualified stock options and incentive stock options , long-term performance awards in the form of performance shares or units , restricted stock , rsus and stock appreciation rights .
the compensation and management development committee of the board of directors determines the grant date for annual grants under our equity compensation plans .
the date for annual grants under the 2009 plan to our executive officers is expected to occur in the first quarter of each year following the earnings announcements for the previous quarter and full year .
in 2015 , the compensation and management development committee set the closing date as the grant date for awards to our executive officers .
the stock plan for non-employee directors provides for awards of stock options , restricted stock and rsus to non-employee directors .
it has been our practice to issue shares of common stock upon exercise of stock options from previously unissued shares , except in limited circumstances where they are issued from treasury stock .
the total number of awards which may be granted in a given year and/or over the life of the plan under each of our equity compensation plans is limited .
at december 31 , 2015 , an aggregate of 5.6 million shares were available for future grants and awards under these plans .
stock options granted to date under our plans vest over four years and have a maximum contractual life of 10 years .
as established under our equity compensation plans , vesting may accelerate upon retirement after the first anniversary date of the award if certain criteria are met .
we recognize expense related to stock options on a straight-line basis over the requisite service period , less awards expected to be forfeited using estimated forfeiture rates .
due to the accelerated retirement provisions , the requisite service period of our stock options range from one to four years .
stock options are granted with an exercise price equal to the market price of our common stock on the date of grant , except in limited circumstances where local law may dictate otherwise. |
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dd4c13e26 | future minimum operating lease payments for leases with remaining terms greater than one year for each of the years in the five years ending december 31 , 2015 , and thereafter in the aggregate , are as follows ( in millions ) : .
2011 | $ 65.1
---------- | -------
2012 | 47.6
2013 | 35.7
2014 | 27.8
2015 | 24.3
thereafter | 78.1
total | $ 278.6
in addition , the company has operating lease commitments relating to office equipment and computer hardware with annual lease payments of approximately $ 16.3 million per year which renew on a short-term basis .
rent expense incurred under all operating leases during the years ended december 31 , 2010 , 2009 and 2008 was $ 116.1 million , $ 100.2 million and $ 117.0 million , respectively .
included in discontinued operations in the consolidated statements of earnings was rent expense of $ 2.0 million , $ 1.8 million and $ 17.0 million for the years ended december 31 , 2010 , 2009 and 2008 , respectively .
data processing and maintenance services agreements .
the company has agreements with various vendors , which expire between 2011 and 2017 , for portions of its computer data processing operations and related functions .
the company 2019s estimated aggregate contractual obligation remaining under these agreements was approximately $ 554.3 million as of december 31 , 2010 .
however , this amount could be more or less depending on various factors such as the inflation rate , foreign exchange rates , the introduction of significant new technologies , or changes in the company 2019s data processing needs .
( 16 ) employee benefit plans stock purchase plan fis employees participate in an employee stock purchase plan ( espp ) .
eligible employees may voluntarily purchase , at current market prices , shares of fis 2019 common stock through payroll deductions .
pursuant to the espp , employees may contribute an amount between 3% ( 3 % ) and 15% ( 15 % ) of their base salary and certain commissions .
shares purchased are allocated to employees based upon their contributions .
the company contributes varying matching amounts as specified in the espp .
the company recorded an expense of $ 14.3 million , $ 12.4 million and $ 14.3 million , respectively , for the years ended december 31 , 2010 , 2009 and 2008 , relating to the participation of fis employees in the espp .
included in discontinued operations in the consolidated statements of earnings was expense of $ 0.1 million and $ 3.0 million for the years ended december 31 , 2009 and 2008 , respectively .
401 ( k ) profit sharing plan the company 2019s employees are covered by a qualified 401 ( k ) plan .
eligible employees may contribute up to 40% ( 40 % ) of their pretax annual compensation , up to the amount allowed pursuant to the internal revenue code .
the company generally matches 50% ( 50 % ) of each dollar of employee contribution up to 6% ( 6 % ) of the employee 2019s total eligible compensation .
the company recorded expense of $ 23.1 million , $ 16.6 million and $ 18.5 million , respectively , for the years ended december 31 , 2010 , 2009 and 2008 , relating to the participation of fis employees in the 401 ( k ) plan .
included in discontinued operations in the consolidated statements of earnings was expense of $ 0.1 million and $ 3.9 million for the years ended december 31 , 2009 and 2008 , respectively .
fidelity national information services , inc .
and subsidiaries notes to consolidated financial statements 2014 ( continued ) %%transmsg*** transmitting job : g26369 pcn : 083000000 ***%%pcmsg|83 |00006|yes|no|03/28/2011 17:32|0|0|page is valid , no graphics -- color : n| |
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dd4c0d670 | table of contents stock performance graph * $ 100 invested on 11/17/11 in our stock or 10/31/11 in the relevant index , including reinvestment of dividends .
fiscal year ending december 31 , 2015 .
( 1 ) delphi automotive plc ( 2 ) s&p 500 2013 standard & poor 2019s 500 total return index ( 3 ) automotive supplier peer group 2013 russell 3000 auto parts index , including american axle & manufacturing , borgwarner inc. , cooper tire & rubber company , dana holding corp. , delphi automotive plc , dorman products inc. , federal-mogul corp. , ford motor co. , fuel systems solutions inc. , general motors co. , gentex corp. , gentherm inc. , genuine parts co. , johnson controls inc. , lear corp. , lkq corp. , meritor inc. , standard motor products inc. , stoneridge inc. , superior industries international , tenneco inc. , tesla motors inc. , the goodyear tire & rubber co. , tower international inc. , visteon corp. , and wabco holdings inc .
company index november 17 , december 31 , december 31 , december 31 , december 31 , december 31 .
company index | november 17 2011 | december 31 2011 | december 31 2012 | december 31 2013 | december 31 2014 | december 31 2015
------------------------------------ | ---------------- | ---------------- | ---------------- | ---------------- | ---------------- | ----------------
delphi automotive plc ( 1 ) | $ 100.00 | $ 100.98 | $ 179.33 | $ 285.81 | $ 350.82 | $ 418.67
s&p 500 ( 2 ) | 100.00 | 100.80 | 116.93 | 154.80 | 175.99 | 178.43
automotive supplier peer group ( 3 ) | 100.00 | 89.62 | 109.96 | 166.26 | 176.25 | 171.91
dividends the company has declared and paid cash dividends of $ 0.25 per ordinary share in each quarter of 2014 and 2015 .
in addition , in january 2016 , the board of directors increased the annual dividend rate to $ 1.16 per ordinary share , and declared a regular quarterly cash dividend of $ 0.29 per ordinary share , payable on february 29 , 2016 to shareholders of record at the close of business on february 17 , 2016. |
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dd4b9675a | mw mamonal plant .
approximately $ 77 million of the purchase price was allocated to goodwill and is being amortized over 32 years .
the termocandelaria power plant has been included in discontinued operations in the accompanying consolidated financial statements .
the table below presents supplemental unaudited pro forma operating results as if all of the acquisitions had occurred at the beginning of the periods shown ( in millions , except per share amounts ) .
no pro forma operating results are provided for 2001 , because the impact would not have been material .
the pro forma amounts include certain adjustments , primarily for depreciation and amortization based on the allocated purchase price and additional interest expense : year ended december 31 , 2000 .
| year ended december 31 2000
--------------------------------- | ---------------------------
revenue | $ 8137
income before extraordinary items | 833
net income | 822
basic earnings per share | $ 1.67
diluted earnings per share | $ 1.61
the pro forma results are based upon assumptions and estimates that the company believes are reasonable .
the pro forma results do not purport to be indicative of the results that actually would have been obtained had the acquisitions occurred at the beginning of the periods shown , nor are they intended to be a projection of future results .
3 .
discontinued operations effective january 1 , 2001 , the company adopted sfas no .
144 .
this statement addresses financial accounting and reporting for the impairment or disposal of long-lived assets .
sfas no .
144 requires a component of an entity that either has been disposed of or is classified as held for sale to be reported as discontinued operations if certain conditions are met .
during the year , the company decided to exit certain of its businesses .
these businesses included power direct , geoutilities , termocandelaria , ib valley and several telecommunications businesses in brazil and the u.s .
the businesses were either disposed of or abandoned during the year or were classified as held for sale at december 31 , 2001 .
for those businesses disposed of or abandoned , the company determined that significant adverse changes in legal factors and/or the business climate , such as unfavorable market conditions and low tariffs , negatively affected the value of these assets .
the company has certain businesses that are held for sale , including termocandelaria .
the company has approved and committed to a plan to sell these assets , they are available for immediate sale , and a plan has been established to locate a buyer at a reasonable fair market value price .
the company believes it will sell these assets within one year and it is unlikely that significant changes will be made to the plan to sell .
at december 31 , 2001 , the assets and liabilities associated with the discontinued operations are segregated on the consolidated balance sheets .
a majority of the long-lived assets related to discontinued operations are for the termocandelaria competitive supply business located in colombia .
the revenues associated with the discontinued operations were $ 287 million , $ 74 million and $ 7 million for the years ended december 31 , 2001 , 2000 and 1999 , respectively .
the pretax losses associated with the discontinued operations were $ 58 million , $ 31 million and $ 4 million for each of the years ended december 31 , 2001 , 2000 and 1999 , respectively .
the loss on disposal and impairment write-downs for those businesses held for sale , net of tax associated with the discontinued operations , was $ 145 million for the year ended december 31 , 2001. |
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dd497c6ae | federal realty investment trust schedule iii summary of real estate and accumulated depreciation 2014continued three years ended december 31 , 2005 reconciliation of accumulated depreciation and amortization .
balance december 31 2002 | $ 450697000
-------------------------------------------------------------------- | ----------------------
additions during period 2014depreciation and amortization expense | 68125000
deductions during period 2014disposition and retirements of property | -4645000 ( 4645000 )
balance december 31 2003 | 514177000
additions during period 2014depreciation and amortization expense | 82551000
deductions during period 2014disposition and retirements of property | -1390000 ( 1390000 )
balance december 31 2004 | 595338000
additions during period 2014depreciation and amortization expense | 83656000
deductions during period 2014disposition and retirements of property | -15244000 ( 15244000 )
balance december 31 2005 | $ 663750000 |
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dd4bae1de | zimmer biomet holdings , inc .
2018 form 10-k annual report ( 8 ) we have incurred other various expenses from specific events or projects that we consider highly variable or have a significant impact to our operating results that we have excluded from our non-gaap financial measures .
this includes legal entity and operational restructuring as well as our costs of complying with our dpa with the u.s .
government related to certain fcpa matters involving biomet and certain of its subsidiaries .
under the dpa , which has a three-year term , we are subject to oversight by an independent compliance monitor , which monitorship commenced in july 2017 .
the excluded costs include the fees paid to the independent compliance monitor and to external legal counsel assisting in the matter .
( 9 ) represents the tax effects on the previously specified items .
the tax effect for the u.s .
jurisdiction is calculated based on an effective rate considering federal and state taxes , as well as permanent items .
for jurisdictions outside the u.s. , the tax effect is calculated based upon the statutory rates where the items were incurred .
( 10 ) the 2016 period includes negative effects from finalizing the tax accounts for the biomet merger .
under the applicable u.s .
gaap rules , these measurement period adjustments are recognized on a prospective basis in the period of change .
( 11 ) the 2017 tax act resulted in a net favorable provisional adjustment due to the reduction of deferred tax liabilities for unremitted earnings and revaluation of deferred tax liabilities to a 21 percent rate , which was partially offset by provisional tax charges related to the toll charge provision of the 2017 tax act .
in 2018 , we finalized our estimates of the effects of the 2017 tax act based upon final guidance issued by u.s .
tax authorities .
( 12 ) other certain tax adjustments in 2018 primarily related to changes in tax rates on deferred tax liabilities recorded on intangible assets recognized in acquisition-related accounting and adjustments from internal restructuring transactions that provide us access to offshore funds in a tax efficient manner .
in 2017 , other certain tax adjustments relate to tax benefits from lower tax rates unrelated to the impact of the 2017 tax act , net favorable resolutions of various tax matters and net favorable adjustments from internal restructuring transactions .
the 2016 adjustment primarily related to a favorable adjustment to certain deferred tax liabilities recognized as part of acquisition-related accounting and favorable resolution of certain tax matters with taxing authorities offset by internal restructuring transactions that provide us access to offshore funds in a tax efficient manner .
( 13 ) diluted share count used in adjusted diluted eps : year ended december 31 , 2018 .
| year endeddecember 31 2018
------------------------------------- | --------------------------
diluted shares | 203.5
dilutive shares assuming net earnings | 1.5
adjusted diluted shares | 205.0
liquidity and capital resources cash flows provided by operating activities were $ 1747.4 million in 2018 compared to $ 1582.3 million and $ 1632.2 million in 2017 and 2016 , respectively .
the increase in operating cash flows in 2018 compared to 2017 was driven by additional cash flows from our sale of accounts receivable in certain countries , lower acquisition and integration expenses and lower quality remediation expenses , as well as certain significant payments made in the 2017 period .
in the 2017 period , we made payments related to the u.s .
durom cup settlement program , and we paid $ 30.5 million in settlement payments to resolve previously-disclosed fcpa matters involving biomet and certain of its subsidiaries as discussed in note 19 to our consolidated financial statements included in item 8 of this report .
the decline in operating cash flows in 2017 compared to 2016 was driven by additional investments in inventory , additional expenses for quality remediation and the significant payments made in the 2017 period as discussed in the previous sentence .
these unfavorable items were partially offset by $ 174.0 million of incremental cash flows in 2017 from our sale of accounts receivable in certain countries .
cash flows used in investing activities were $ 416.6 million in 2018 compared to $ 510.8 million and $ 1691.5 million in 2017 and 2016 , respectively .
instrument and property , plant and equipment additions reflected ongoing investments in our product portfolio and optimization of our manufacturing and logistics network .
in 2018 , we entered into receive-fixed-rate , pay-fixed-rate cross-currency interest rate swaps .
our investing cash flows reflect the net cash inflows from the fixed- rate interest rate receipts/payments , as well as the termination of certain of these swaps that were in a gain position in the year .
the 2016 period included cash outflows for the acquisition of ldr holding corporation ( 201cldr 201d ) and other business acquisitions .
additionally , the 2016 period reflects the maturity of available-for-sale debt securities .
as these investments matured , we used the cash to pay off debt and have not reinvested in any additional debt securities .
cash flows used in financing activities were $ 1302.2 million in 2018 .
our primary use of available cash in 2018 was for debt repayment .
we received net proceeds of $ 749.5 million from the issuance of additional senior notes and borrowed $ 400.0 million from our multicurrency revolving facility to repay $ 1150.0 million of senior notes that became due on april 2 , 2018 .
we subsequently repaid the $ 400.0 million of multicurrency revolving facility borrowings .
also in 2018 , we borrowed another $ 675.0 million under a new u.s .
term loan c and used the cash proceeds along with cash generated from operations throughout the year to repay an aggregate of $ 835.0 million on u.s .
term loan a , $ 450.0 million on u.s .
term loan b , and we subsequently repaid $ 140.0 million on u.s .
term loan c .
overall , we had approximately $ 1150 million of net principal repayments on our senior notes and term loans in 2018 .
in 2017 , our primary use of available cash was also for debt repayment compared to 2016 when we were not able to repay as much debt due to financing requirements to complete the ldr and other business acquisitions .
additionally in 2017 , we had net cash inflows of $ 103.5 million on factoring programs that had not been remitted to the third party .
in 2018 , we had net cash outflows related to these factoring programs as we remitted the $ 103.5 million and collected only $ 66.8 million which had not yet been remitted by the end of the year .
since our factoring programs started at the end of 2016 , we did not have similar cash flows in that year .
in january 2019 , we borrowed an additional $ 200.0 million under u.s .
term loan c and used those proceeds , along with cash on hand , to repay the remaining $ 225.0 million outstanding under u.s .
term loan b .
in february , may , august and december 2018 , our board of directors declared cash dividends of $ 0.24 per share .
we expect to continue paying cash dividends on a quarterly basis ; however , future dividends are subject to approval of the board of directors and may be adjusted as business needs or market conditions change .
as further discussed in note 11 to our consolidated financial statements , our debt facilities restrict the payment of dividends in certain circumstances. |
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dd4b91d40 | federal realty investment trust schedule iii summary of real estate and accumulated depreciation 2014continued three years ended december 31 , 2009 reconciliation of accumulated depreciation and amortization ( in thousands ) .
balance december 31 2006 | $ 740507
-------------------------------------------------------------------- | ----------------
additions during period 2014depreciation and amortization expense | 96454
deductions during period 2014disposition and retirements of property | -80258 ( 80258 )
balance december 31 2007 | 756703
additions during period 2014depreciation and amortization expense | 101321
deductions during period 2014disposition and retirements of property | -11766 ( 11766 )
balance december 31 2008 | 846258
additions during period 2014depreciation and amortization expense | 103.698
deductions during period 2014disposition and retirements of property | -11869 ( 11869 )
balance december 31 2009 | $ 938087 |
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dd4ba16fa | guarantees we adopted fasb interpretation no .
45 ( 201cfin 45 201d ) , 201cguarantor 2019s accounting and disclosure requirements for guarantees , including indirect guarantees of indebtedness of others 201d at the beginning of our fiscal 2003 .
see 201crecent accounting pronouncements 201d for further information regarding fin 45 .
the lease agreements for our three office buildings in san jose , california provide for residual value guarantees .
these lease agreements were in place prior to december 31 , 2002 and are disclosed in note 14 .
in the normal course of business , we provide indemnifications of varying scope to customers against claims of intellectual property infringement made by third parties arising from the use of our products .
historically , costs related to these indemnification provisions have not been significant and we are unable to estimate the maximum potential impact of these indemnification provisions on our future results of operations .
we have commitments to make certain milestone and/or retention payments typically entered into in conjunction with various acquisitions , for which we have made accruals in our consolidated financial statements .
in connection with our purchases of technology assets during fiscal 2003 , we entered into employee retention agreements totaling $ 2.2 million .
we are required to make payments upon satisfaction of certain conditions in the agreements .
as permitted under delaware law , we have agreements whereby we indemnify our officers and directors for certain events or occurrences while the officer or director is , or was serving , at our request in such capacity .
the indemnification period covers all pertinent events and occurrences during the officer 2019s or director 2019s lifetime .
the maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited ; however , we have director and officer insurance coverage that limits our exposure and enables us to recover a portion of any future amounts paid .
we believe the estimated fair value of these indemnification agreements in excess of applicable insurance coverage is minimal .
as part of our limited partnership interests in adobe ventures , we have provided a general indemnification to granite ventures , an independent venture capital firm and sole general partner of adobe ventures , for certain events or occurrences while granite ventures is , or was serving , at our request in such capacity provided that granite ventures acts in good faith on behalf of the partnerships .
we are unable to develop an estimate of the maximum potential amount of future payments that could potentially result from any hypothetical future claim , but believe the risk of having to make any payments under this general indemnification to be remote .
we accrue for costs associated with future obligations which include costs for undetected bugs that are discovered only after the product is installed and used by customers .
the accrual remaining at the end of fiscal 2003 primarily relates to new releases of our creative suites products during the fourth quarter of fiscal 2003 .
the table below summarizes the activity related to the accrual during fiscal 2003 : balance at november 29 , 2002 accruals payments balance at november 28 , 2003 .
balance at november 29 2002 | accruals | payments | balance at november 28 2003
--------------------------- | -------- | ---------------- | ---------------------------
$ 2014 | $ 5554 | $ -2369 ( 2369 ) | $ 3185
advertising expenses we expense all advertising costs as incurred and classify these costs under sales and marketing expense .
advertising expenses for fiscal years 2003 , 2002 , and 2001 were $ 24.0 million , $ 26.7 million and $ 30.5 million , respectively .
foreign currency and other hedging instruments statement of financial accounting standards no .
133 ( 201csfas no .
133 201d ) , 201caccounting for derivative instruments and hedging activities , 201d establishes accounting and reporting standards for derivative instruments and hedging activities and requires us to recognize these as either assets or liabilities on the balance sheet and measure them at fair value .
as described in note 15 , gains and losses resulting from |
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dd4c36eda | the intrinsic value of restricted stock awards vested during the years ended december 31 , 2016 , 2015 and 2014 was $ 25 million , $ 31 million and $ 17 million , respectively .
restricted stock awards made to employees have vesting periods ranging from 1 year with variable vesting dates to 10 years .
following is a summary of the future vesting of our outstanding restricted stock awards : vesting of restricted shares .
year | vesting of restricted shares
----------------- | ----------------------------
2017 | 1476832
2018 | 2352443
2019 | 4358728
2020 | 539790
2021 | 199850
thereafter | 110494
total outstanding | 9038137
the related compensation costs less estimated forfeitures is generally recognized ratably over the vesting period of the restricted stock awards .
upon vesting , the grants will be paid in our class p common shares .
during 2016 , 2015 and 2014 , we recorded $ 66 million , $ 52 million and $ 51 million , respectively , in expense related to restricted stock awards and capitalized approximately $ 9 million , $ 15 million and $ 6 million , respectively .
at december 31 , 2016 and 2015 , unrecognized restricted stock awards compensation costs , less estimated forfeitures , was approximately $ 133 million and $ 154 million , respectively .
pension and other postretirement benefit plans savings plan we maintain a defined contribution plan covering eligible u.s .
employees .
we contribute 5% ( 5 % ) of eligible compensation for most of the plan participants .
certain plan participants 2019 contributions and company contributions are based on collective bargaining agreements .
the total expense for our savings plan was approximately $ 48 million , $ 46 million , and $ 42 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively .
pension plans our u.s .
pension plan is a defined benefit plan that covers substantially all of our u.s .
employees and provides benefits under a cash balance formula .
a participant in the cash balance plan accrues benefits through contribution credits based on a combination of age and years of service , times eligible compensation .
interest is also credited to the participant 2019s plan account .
a participant becomes fully vested in the plan after three years , and may take a lump sum distribution upon termination of employment or retirement .
certain collectively bargained and grandfathered employees continue to accrue benefits through career pay or final pay formulas .
two of our subsidiaries , kinder morgan canada inc .
and trans mountain pipeline inc .
( as general partner of trans mountain pipeline l.p. ) , are sponsors of pension plans for eligible canadian and trans mountain pipeline employees .
the plans include registered defined benefit pension plans , supplemental unfunded arrangements ( which provide pension benefits in excess of statutory limits ) and defined contributory plans .
benefits under the defined benefit components accrue through career pay or final pay formulas .
the net periodic benefit costs , contributions and liability amounts associated with our canadian plans are not material to our consolidated income statements or balance sheets ; however , we began to include the activity and balances associated with our canadian plans ( including our canadian opeb plans discussed below ) in the following disclosures on a prospective basis beginning in 2016 .
the associated net periodic benefit costs for these combined canadian plans of $ 12 million and $ 10 million for the years ended december 31 , 2015 and 2014 , respectively , were reported separately in prior years .
other postretirement benefit plans we and certain of our u.s .
subsidiaries provide other postretirement benefits ( opeb ) , including medical benefits for closed groups of retired employees and certain grandfathered employees and their dependents , and limited postretirement life insurance benefits for retired employees .
our canadian subsidiaries also provide opeb benefits to current and future retirees and their dependents .
medical benefits under these opeb plans may be subject to deductibles , co-payment provisions , dollar |
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dd496d30c | the acquisition date is on or after the beginning of the first annual reporting period beginning on or after december 15 , 2008 .
we will evaluate how the new requirements of statement no .
141 ( r ) would impact any business combinations completed in 2009 or thereafter .
in december 2007 , the fasb also issued statement of financial accounting standards no .
160 , noncontrolling interests in consolidated financial statements 2014an amendment of accounting research bulletin no .
51 .
a noncontrolling interest , sometimes called a minority interest , is the portion of equity in a subsidiary not attributable , directly or indirectly , to a parent .
statement no .
160 establishes accounting and reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary .
under statement no .
160 , noncontrolling interests in a subsidiary must be reported as a component of consolidated equity separate from the parent 2019s equity .
additionally , the amounts of consolidated net income attributable to both the parent and the noncontrolling interest must be reported separately on the face of the income statement .
statement no .
160 is effective for fiscal years beginning on or after december 15 , 2008 and earlier adoption is prohibited .
we do not expect the adoption of statement no .
160 to have a material impact on our financial statements and related disclosures .
2008 estimates the forward-looking statements provided in this discussion are based on our examination of historical operating trends , the information that was used to prepare the december 31 , 2007 reserve reports and other data in our possession or available from third parties .
these forward-looking statements were prepared assuming demand , curtailment , producibility and general market conditions for our oil , natural gas and ngls during 2008 will be substantially similar to those of 2007 , unless otherwise noted .
we make reference to the 201cdisclosure regarding forward-looking statements 201d at the beginning of this report .
amounts related to canadian operations have been converted to u.s .
dollars using a projected average 2008 exchange rate of $ 0.98 u.s .
dollar to $ 1.00 canadian dollar .
in january 2007 , we announced our intent to divest our west african oil and gas assets and terminate our operations in west africa , including equatorial guinea , cote d 2019ivoire , gabon and other countries in the region .
in november 2007 , we announced an agreement to sell our operations in gabon for $ 205.5 million .
we are finalizing purchase and sales agreements and obtaining the necessary partner and government approvals for the remaining properties in this divestiture package .
we are optimistic we can complete these sales during the first half of 2008 .
all west african related revenues , expenses and capital will be reported as discontinued operations in our 2008 financial statements .
accordingly , all forward-looking estimates in the following discussion exclude amounts related to our operations in west africa , unless otherwise noted .
though we have completed several major property acquisitions and dispositions in recent years , these transactions are opportunity driven .
thus , the following forward-looking estimates do not include any financial and operating effects of potential property acquisitions or divestitures that may occur during 2008 , except for west africa as previously discussed .
oil , gas and ngl production set forth below are our estimates of oil , gas and ngl production for 2008 .
we estimate that our combined 2008 oil , gas and ngl production will total approximately 240 to 247 mmboe .
of this total , approximately 92% ( 92 % ) is estimated to be produced from reserves classified as 201cproved 201d at december 31 , 2007 .
the following estimates for oil , gas and ngl production are calculated at the midpoint of the estimated range for total production .
oil gas ngls total ( mmbbls ) ( bcf ) ( mmbbls ) ( mmboe ) .
| oil ( mmbbls ) | gas ( bcf ) | ngls ( mmbbls ) | total ( mmboe )
-------------- | -------------- | ----------- | --------------- | ---------------
u.s . onshore | 12 | 626 | 23 | 140
u.s . offshore | 8 | 68 | 1 | 20
canada | 23 | 198 | 4 | 60
international | 23 | 2 | 2014 | 23
total | 66 | 894 | 28 | 243 |
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dd4c4d824 | entergy louisiana , inc .
management's financial discussion and analysis results of operations net income 2004 compared to 2003 net income decreased $ 18.7 million primarily due to lower net revenue , partially offset by lower other operation and maintenance expenses .
2003 compared to 2002 net income increased slightly primarily due to higher net revenue and lower interest charges , almost entirely offset by higher other operation and maintenance expenses , higher depreciation and amortization expenses , and higher taxes other than income taxes .
net revenue 2004 compared to 2003 net revenue , which is entergy louisiana's measure of gross margin , consists of operating revenues net of : 1 ) fuel , fuel-related , and purchased power expenses and 2 ) other regulatory credits .
following is an analysis of the change in net revenue comparing 2004 to 2003. .
| ( in millions )
------------------------------- | ---------------
2003 net revenue | $ 973.7
price applied to unbilled sales | -31.9 ( 31.9 )
deferred fuel cost revisions | -29.4 ( 29.4 )
rate refund provisions | -12.2 ( 12.2 )
volume/weather | 17.0
summer capacity charges | 11.8
other | 2.3
2004 net revenue | $ 931.3
the price applied to the unbilled sales variance is due to a decrease in the fuel price included in unbilled sales in 2004 caused primarily by the effect of nuclear plant outages in 2003 on average fuel costs .
the deferred fuel cost revisions variance resulted from a revised unbilled sales pricing estimate made in the first quarter of 2003 to more closely align the fuel component of that pricing with expected recoverable fuel costs .
rate refund provisions caused a decrease in net revenue due to additional provisions recorded in 2004 compared to 2003 for potential rate actions and refunds .
the volume/weather variance is due to a total increase of 620 gwh in weather-adjusted usage in all sectors , partially offset by the effect of milder weather on billed sales in the residential and commercial sectors .
the summer capacity charges variance is due to the amortization in 2003 of deferred capacity charges for the summer of 2001 compared to the absence of the amortization in 2004 .
the amortization of these capacity charges began in august 2002 and ended in july 2003. |
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dd4c159ec | products and software , as well as ongoing investment in next-generation technologies , partially offset by savings from cost-reduction initiatives .
reorganization of business charges increased due to employee severance costs and expenses related to the exit of a facility .
sg&a expenses decreased , primarily due to lower marketing expenses and savings from cost-reduction initiatives , partially offset by increased expenditures on information technology upgrades .
as a percentage of net sales in 2007 as compared to 2006 , gross margin and operating margin decreased , and sg&a expenses and r&d expenditures increased .
the segment 2019s backlog was $ 647 million at december 31 , 2007 , compared to $ 1.4 billion at december 31 , 2006 .
this decrease in backlog was primarily due to a decline in customer demand driven by the segment 2019s limited product portfolio .
the segment shipped 159.1 million units in 2007 , a 27% ( 27 % ) decrease compared to shipments of 217.4 million units in 2006 .
the overall decrease reflects decreased unit shipments of products for all technologies .
for the full year 2007 , unit shipments : ( i ) decreased substantially in asia and emea , ( ii ) decreased in north america , and ( iii ) increased in latin america .
although unit shipments by the segment decreased in 2007 , total unit shipments in the worldwide handset market increased by approximately 16% ( 16 % ) .
the segment estimates its worldwide market share was approximately 14% ( 14 % ) for the full year 2007 , a decrease of approximately 8 percentage points versus full year 2006 .
in 2007 , asp decreased approximately 9% ( 9 % ) compared to 2006 .
the overall decrease in asp was driven primarily by changes in the product-tier and geographic mix of sales .
by comparison , asp decreased approximately 11% ( 11 % ) in 2006 and 10% ( 10 % ) in 2005 .
the segment has several large customers located throughout the world .
in 2007 , aggregate net sales to the segment 2019s five largest customers accounted for approximately 42% ( 42 % ) of the segment 2019s net sales .
besides selling directly to carriers and operators , the segment also sells products through a variety of third-party distributors and retailers , which account for approximately 33% ( 33 % ) of the segment 2019s net sales .
the largest of these distributors was brightstar corporation .
although the u.s .
market continued to be the segment 2019s largest individual market , many of our customers , and more than 54% ( 54 % ) of our segment 2019s 2007 net sales , were outside the u.s .
the largest of these international markets were brazil , china and mexico .
home and networks mobility segment the home and networks mobility segment designs , manufactures , sells , installs and services : ( i ) digital video , internet protocol video and broadcast network interactive set-tops , end-to-end video delivery systems , broadband access infrastructure platforms , and associated data and voice customer premise equipment to cable television and telecom service providers ( collectively , referred to as the 201chome business 201d ) , and ( ii ) wireless access systems , including cellular infrastructure systems and wireless broadband systems , to wireless service providers ( collectively , referred to as the 201cnetwork business 201d ) .
in 2008 , the segment 2019s net sales represented 33% ( 33 % ) of the company 2019s consolidated net sales , compared to 27% ( 27 % ) in 2007 and 21% ( 21 % ) in 2006 .
( dollars in millions ) 2008 2007 2006 2008 20142007 2007 20142006 years ended december 31 percent change .
( dollars in millions ) | years ended december 31 2008 | years ended december 31 2007 | years ended december 31 2006 | years ended december 31 2008 20142007 | 2007 20142006
----------------------- | ---------------------------- | ---------------------------- | ---------------------------- | ------------------------------------- | ---------------
segment net sales | $ 10086 | $ 10014 | $ 9164 | 1% ( 1 % ) | 9% ( 9 % )
operating earnings | 918 | 709 | 787 | 29% ( 29 % ) | ( 10 ) % ( % )
segment results 20142008 compared to 2007 in 2008 , the segment 2019s net sales increased 1% ( 1 % ) to $ 10.1 billion , compared to $ 10.0 billion in 2007 .
the 1% ( 1 % ) increase in net sales primarily reflects a 16% ( 16 % ) increase in net sales in the home business , partially offset by an 11% ( 11 % ) decrease in net sales in the networks business .
the 16% ( 16 % ) increase in net sales in the home business is primarily driven by a 17% ( 17 % ) increase in net sales of digital entertainment devices , reflecting a 19% ( 19 % ) increase in unit shipments to 18.0 million units , partially offset by lower asp due to product mix shift and pricing pressure .
the 11% ( 11 % ) decrease in net sales in the networks business was primarily driven by : ( i ) the absence of net sales by the embedded communication computing group ( 201cecc 201d ) that was divested at the end of 2007 , and ( ii ) lower net sales of iden , gsm and cdma infrastructure equipment , partially offset by higher net sales of umts infrastructure equipment .
on a geographic basis , the 1% ( 1 % ) increase in net sales was primarily driven by higher net sales in latin america and asia , partially offset by lower net sales in north america .
the increase in net sales in latin america was 63management 2019s discussion and analysis of financial condition and results of operations %%transmsg*** transmitting job : c49054 pcn : 066000000 ***%%pcmsg|63 |00024|yes|no|02/24/2009 12:31|0|0|page is valid , no graphics -- color : n| |
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dd4c04688 | the descriptions and fair value methodologies for the u.s .
and international pension plan assets are as follows : cash and cash equivalents the carrying amounts of cash and cash equivalents approximate fair value due to the short-term maturity .
equity securities equity securities are valued at the closing market price reported on a u.s .
or international exchange where the security is actively traded and are therefore classified as level 1 assets .
equity mutual and pooled funds shares of mutual funds are valued at the net asset value ( nav ) of the fund and are classified as level 1 assets .
units of pooled funds are valued at the per unit nav determined by the fund manager based on the value of the underlying traded holdings and are classified as level 2 assets .
corporate and government bonds corporate and government bonds are classified as level 2 assets , as they are either valued at quoted market prices from observable pricing sources at the reporting date or valued based upon comparable securities with similar yields and credit ratings .
other pooled funds other pooled funds classified as level 2 assets are valued at the nav of the shares held at year end , which is based on the fair value of the underlying investments .
securities and interests classified as level 3 are carried at the estimated fair value .
the estimated fair value is based on the fair value of the underlying investment values , which includes estimated bids from brokers or other third-party vendor sources that utilize expected cash flow streams and other uncorroborated data including counterparty credit quality , default risk , discount rates , and the overall capital market liquidity .
insurance contracts insurance contracts are classified as level 3 assets , as they are carried at contract value , which approximates the estimated fair value .
the estimated fair value is based on the fair value of the underlying investment of the insurance company and discount rates that require inputs with limited observability .
contributions and projected benefit payments pension contributions to funded plans and benefit payments for unfunded plans for fiscal year 2018 were $ 68.3 .
contributions for funded plans resulted primarily from contractual and regulatory requirements .
benefit payments to unfunded plans were due primarily to the timing of retirements .
we anticipate contributing $ 45 to $ 65 to the defined benefit pension plans in fiscal year 2019 .
these contributions are anticipated to be driven primarily by contractual and regulatory requirements for funded plans and benefit payments for unfunded plans , which are dependent upon timing of retirements .
projected benefit payments , which reflect expected future service , are as follows: .
| u.s . | international
--------- | ------- | -------------
2019 | $ 165.5 | $ 52.8
2020 | 152.4 | 53.9
2021 | 157.0 | 55.6
2022 | 163.7 | 56.0
2023 | 167.9 | 60.6
2024-2028 | 900.2 | 336.8
these estimated benefit payments are based on assumptions about future events .
actual benefit payments may vary significantly from these estimates. |
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dd4c4da04 | part i item 1 .
business .
merck & co. , inc .
( 201cmerck 201d or the 201ccompany 201d ) is a global health care company that delivers innovative health solutions through its prescription medicines , vaccines , biologic therapies , animal health , and consumer care products , which it markets directly and through its joint ventures .
the company 2019s operations are principally managed on a products basis and are comprised of four operating segments , which are the pharmaceutical , animal health , consumer care and alliances segments , and one reportable segment , which is the pharmaceutical segment .
the pharmaceutical segment includes human health pharmaceutical and vaccine products marketed either directly by the company or through joint ventures .
human health pharmaceutical products consist of therapeutic and preventive agents , generally sold by prescription , for the treatment of human disorders .
the company sells these human health pharmaceutical products primarily to drug wholesalers and retailers , hospitals , government agencies and managed health care providers such as health maintenance organizations , pharmacy benefit managers and other institutions .
vaccine products consist of preventive pediatric , adolescent and adult vaccines , primarily administered at physician offices .
the company sells these human health vaccines primarily to physicians , wholesalers , physician distributors and government entities .
the company also has animal health operations that discover , develop , manufacture and market animal health products , including vaccines , which the company sells to veterinarians , distributors and animal producers .
additionally , the company has consumer care operations that develop , manufacture and market over-the- counter , foot care and sun care products , which are sold through wholesale and retail drug , food chain and mass merchandiser outlets , as well as club stores and specialty channels .
the company was incorporated in new jersey in for financial information and other information about the company 2019s segments , see item 7 .
201cmanagement 2019s discussion and analysis of financial condition and results of operations 201d and item 8 .
201cfinancial statements and supplementary data 201d below .
all product or service marks appearing in type form different from that of the surrounding text are trademarks or service marks owned , licensed to , promoted or distributed by merck , its subsidiaries or affiliates , except as noted .
all other trademarks or services marks are those of their respective owners .
product sales sales of the company 2019s top pharmaceutical products , as well as total sales of animal health and consumer care products , were as follows: .
( $ in millions ) | 2013 | 2012 | 2011
----------------------- | ------- | ------- | -------
total sales | $ 44033 | $ 47267 | $ 48047
pharmaceutical | 37437 | 40601 | 41289
januvia | 4004 | 4086 | 3324
zetia | 2658 | 2567 | 2428
remicade | 2271 | 2076 | 2667
gardasil | 1831 | 1631 | 1209
janumet | 1829 | 1659 | 1363
isentress | 1643 | 1515 | 1359
vytorin | 1643 | 1747 | 1882
nasonex | 1335 | 1268 | 1286
proquad/m-m-rii/varivax | 1306 | 1273 | 1202
singulair | 1196 | 3853 | 5479
animal health | 3362 | 3399 | 3253
consumer care | 1894 | 1952 | 1840
other revenues ( 1 ) | 1340 | 1315 | 1665
other revenues ( 1 ) 1340 1315 1665 ( 1 ) other revenues are primarily comprised of alliance revenue , miscellaneous corporate revenues and third-party manufacturing sales .
on october 1 , 2013 , the company divested a substantial portion of its third-party manufacturing sales .
table of contents |
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dd4bb03d0 | it can issue debt securities , preferred stock , common stock , warrants , share purchase contracts or share purchase units without a predetermined limit .
securities can be sold in one or more separate offerings with the size , price and terms to be determined at the time of sale .
emerson 2019s financial structure provides the flexibility necessary to achieve its strategic objectives .
the company has been successful in efficiently deploying cash where needed worldwide to fund operations , complete acquisitions and sustain long-term growth .
at september 30 , 2017 , $ 3.1 billion of the company 2019s cash was held outside the u.s .
( primarily in europe and asia ) , $ 1.4 billion of which income taxes have been provided for , and was generally available for repatriation to the u.s .
under current tax law , repatriated cash may be subject to u.s .
federal income taxes , net of available foreign tax credits .
the company routinely repatriates a portion of its non-u.s .
cash from earnings each year , or otherwise when it can be accomplished tax efficiently , and provides for u.s .
income taxes as appropriate .
the company has been able to readily meet all its funding requirements and currently believes that sufficient funds will be available to meet the company 2019s needs in the foreseeable future through operating cash flow , existing resources , short- and long-term debt capacity or backup credit lines .
contractual obligations at september 30 , 2017 , the company 2019s contractual obligations , including estimated payments , are as follows : amounts due by period less more than 1 2013 3 3 2013 5 than ( dollars in millions ) total 1 year years years 5 years long-term debt ( including interest ) $ 5342 428 1434 966 2514 .
( dollars in millions ) | amounts due by period total | amounts due by period less than 1 year | amounts due by period 1 - 3years | amounts due by period 3 - 5years | amounts due by period more than5 years
------------------------------------- | --------------------------- | -------------------------------------- | -------------------------------- | -------------------------------- | --------------------------------------
long-term debt ( including interest ) | $ 5342 | 428 | 1434 | 966 | 2514
operating leases | 536 | 171 | 206 | 80 | 79
purchase obligations | 746 | 655 | 71 | 14 | 6
total | $ 6624 | 1254 | 1711 | 1060 | 2599
purchase obligations consist primarily of inventory purchases made in the normal course of business to meet operational requirements .
the table above does not include $ 2.0 billion of other noncurrent liabilities recorded in the balance sheet and summarized in note 19 , which consist primarily of pension and postretirement plan liabilities , deferred income taxes and unrecognized tax benefits , because it is not certain when these amounts will become due .
see notes 11 and 12 for estimated future benefit payments and note 14 for additional information on deferred income taxes .
financial instruments the company is exposed to market risk related to changes in interest rates , foreign currency exchange rates and commodity prices , and selectively uses derivative financial instruments , including forwards , swaps and purchased options to manage these risks .
the company does not hold derivatives for trading or speculative purposes .
the value of derivatives and other financial instruments is subject to change as a result of market movements in rates and prices .
sensitivity analysis is one technique used to forecast the impact of these movements .
based on a hypothetical 10 percent increase in interest rates , a 10 percent decrease in commodity prices or a 10 percent weakening in the u.s .
dollar across all currencies , the potential losses in future earnings , fair value or cash flows are not material .
sensitivity analysis has limitations ; for example , a weaker u.s .
dollar would benefit future earnings through favorable translation of non-u.s .
operating results , and lower commodity prices would benefit future earnings through lower cost of sales .
see notes 1 , and 8 through 10 .
critical accounting policies preparation of the company 2019s financial statements requires management to make judgments , assumptions and estimates regarding uncertainties that could affect reported revenue , expenses , assets , liabilities and equity .
note 1 describes the significant accounting policies used in preparation of the consolidated financial statements .
the most significant areas where management judgments and estimates impact the primary financial statements are described below .
actual results in these areas could differ materially from management 2019s estimates under different assumptions or conditions .
revenue recognition the company recognizes a large majority of its revenue through the sale of manufactured products and records the sale when products are shipped or delivered , title and risk of loss pass to the customer , and collection is reasonably assured .
in certain circumstances , revenue is recognized using the percentage-of- completion method , as performance occurs , or in accordance with asc 985-605 related to software .
sales arrangements sometimes involve delivering multiple elements , which requires management judgment that affects the amount and timing of revenue recognized .
in these instances , the revenue assigned to each element is based on vendor-specific objective evidence , third-party evidence or a management estimate of the relative selling price .
revenue is recognized for delivered elements if they have value to the customer on a stand-alone basis and performance related to the undelivered items is probable and substantially in the company 2019s control , or the undelivered elements are inconsequential or perfunctory and there are no unsatisfied contingencies related to payment .
the vast majority of deliverables are tangible products , with a smaller portion attributable to installation , service or maintenance .
management believes that all relevant criteria and conditions are considered when recognizing revenue. |
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dd4bcbef0 | jpmorgan chase & co./2009 annual report 181 the following table shows the current credit risk of derivative receivables after netting adjustments , and the current liquidity risk of derivative payables after netting adjustments , as of december 31 , 2009. .
december 31 2009 ( in millions ) | derivative receivables | derivative payables
------------------------------------------------------ | ---------------------- | --------------------
gross derivative fair value | $ 1565518 | $ 1519183
nettingadjustment 2013 offsetting receivables/payables | -1419840 ( 1419840 ) | -1419840 ( 1419840 )
nettingadjustment 2013 cash collateral received/paid | -65468 ( 65468 ) | -39218 ( 39218 )
carrying value on consolidated balance sheets | $ 80210 | $ 60125
in addition to the collateral amounts reflected in the table above , at december 31 , 2009 , the firm had received and posted liquid secu- rities collateral in the amount of $ 15.5 billion and $ 11.7 billion , respectively .
the firm also receives and delivers collateral at the initiation of derivative transactions , which is available as security against potential exposure that could arise should the fair value of the transactions move in the firm 2019s or client 2019s favor , respectively .
furthermore , the firm and its counterparties hold collateral related to contracts that have a non-daily call frequency for collateral to be posted , and collateral that the firm or a counterparty has agreed to return but has not yet settled as of the reporting date .
at december 31 , 2009 , the firm had received $ 16.9 billion and delivered $ 5.8 billion of such additional collateral .
these amounts were not netted against the derivative receivables and payables in the table above , because , at an individual counterparty level , the collateral exceeded the fair value exposure at december 31 , 2009 .
credit derivatives credit derivatives are financial instruments whose value is derived from the credit risk associated with the debt of a third-party issuer ( the reference entity ) and which allow one party ( the protection purchaser ) to transfer that risk to another party ( the protection seller ) .
credit derivatives expose the protection purchaser to the creditworthiness of the protection seller , as the protection seller is required to make payments under the contract when the reference entity experiences a credit event , such as a bankruptcy , a failure to pay its obligation or a restructuring .
the seller of credit protection receives a premium for providing protection but has the risk that the underlying instrument referenced in the contract will be subject to a credit event .
the firm is both a purchaser and seller of protection in the credit derivatives market and uses these derivatives for two primary purposes .
first , in its capacity as a market-maker in the dealer/client business , the firm actively risk manages a portfolio of credit derivatives by purchasing and selling credit protection , pre- dominantly on corporate debt obligations , to meet the needs of customers .
as a seller of protection , the firm 2019s exposure to a given reference entity may be offset partially , or entirely , with a contract to purchase protection from another counterparty on the same or similar reference entity .
second , the firm uses credit derivatives to mitigate credit risk associated with its overall derivative receivables and traditional commercial credit lending exposures ( loans and unfunded commitments ) as well as to manage its exposure to residential and commercial mortgages .
see note 3 on pages 156--- 173 of this annual report for further information on the firm 2019s mortgage-related exposures .
in accomplishing the above , the firm uses different types of credit derivatives .
following is a summary of various types of credit derivatives .
credit default swaps credit derivatives may reference the credit of either a single refer- ence entity ( 201csingle-name 201d ) or a broad-based index , as described further below .
the firm purchases and sells protection on both single- name and index-reference obligations .
single-name cds and index cds contracts are both otc derivative contracts .
single- name cds are used to manage the default risk of a single reference entity , while cds index are used to manage credit risk associated with the broader credit markets or credit market segments .
like the s&p 500 and other market indices , a cds index is comprised of a portfolio of cds across many reference entities .
new series of cds indices are established approximately every six months with a new underlying portfolio of reference entities to reflect changes in the credit markets .
if one of the reference entities in the index experi- ences a credit event , then the reference entity that defaulted is removed from the index .
cds can also be referenced against spe- cific portfolios of reference names or against customized exposure levels based on specific client demands : for example , to provide protection against the first $ 1 million of realized credit losses in a $ 10 million portfolio of exposure .
such structures are commonly known as tranche cds .
for both single-name cds contracts and index cds , upon the occurrence of a credit event , under the terms of a cds contract neither party to the cds contract has recourse to the reference entity .
the protection purchaser has recourse to the protection seller for the difference between the face value of the cds contract and the fair value of the reference obligation at the time of settling the credit derivative contract , also known as the recovery value .
the protection purchaser does not need to hold the debt instrument of the underlying reference entity in order to receive amounts due under the cds contract when a credit event occurs .
credit-linked notes a credit linked note ( 201ccln 201d ) is a funded credit derivative where the issuer of the cln purchases credit protection on a referenced entity from the note investor .
under the contract , the investor pays the issuer par value of the note at the inception of the transaction , and in return , the issuer pays periodic payments to the investor , based on the credit risk of the referenced entity .
the issuer also repays the investor the par value of the note at maturity unless the reference entity experiences a specified credit event .
in that event , the issuer is not obligated to repay the par value of the note , but rather , the issuer pays the investor the difference between the par value of the note |
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dd4c3c0e2 | the aes corporation notes to consolidated financial statements 2014 ( continued ) december 31 , 2011 , 2010 , and 2009 may require the government to acquire an ownership interest and the current expectation of future losses .
our evaluation indicated that the long-lived assets were no longer recoverable and , accordingly , they were written down to their estimated fair value of $ 24 million based on a discounted cash flow analysis .
the long-lived assets had a carrying amount of $ 66 million prior to the recognition of asset impairment expense .
kelanitissa is a build- operate-transfer ( bot ) generation facility and payments under its ppa are scheduled to decline over the ppa term .
it is possible that further impairment charges may be required in the future as kelanitissa gets closer to the bot date .
kelanitissa is reported in the asia generation reportable segment .
asset impairment expense for the year ended december 31 , 2010 consisted of : ( in millions ) .
| 2010 ( in millions )
------------------------------ | --------------------
southland ( huntington beach ) | $ 200
tisza ii | 85
deepwater | 79
other | 25
total | $ 389
southland 2014in september 2010 , a new environmental policy on the use of ocean water to cool generation facilities was issued in california that requires generation plants to comply with the policy by december 31 , 2020 and would require significant capital expenditure or plants 2019 shutdown .
the company 2019s huntington beach gas-fired generation facility in california , which is part of aes 2019 southland business , was impacted by the new policy .
the company performed an asset impairment test and determined the fair value of the asset group using a discounted cash flow analysis .
the carrying value of the asset group of $ 288 million exceeded the fair value of $ 88 million resulting in the recognition of asset impairment expense of $ 200 million for the year ended december 31 , 2010 .
southland is reported in the north america generation reportable segment .
tisza ii 2014during the third quarter of 2010 , the company entered into annual negotiations with the offtaker of tisza ii .
as a result of these preliminary negotiations , as well as the further deterioration of the economic environment in hungary , the company determined that an indicator of impairment existed at september 30 , 2010 .
thus , the company performed an asset impairment test and determined that based on the undiscounted cash flow analysis , the carrying amount of the tisza ii asset group was not recoverable .
the fair value of the asset group was then determined using a discounted cash flow analysis .
the carrying value of the tisza ii asset group of $ 160 million exceeded the fair value of $ 75 million resulting in the recognition of asset impairment expense of $ 85 million during the year ended december 31 , 2010 .
deepwater 2014in 2010 , deepwater , our 160 mw petcoke-fired merchant power plant located in texas , experienced deteriorating market conditions due to increasing petcoke prices and diminishing power prices .
as a result , deepwater incurred operating losses and was shut down from time to time to avoid negative operating margin .
in the fourth quarter of 2010 , management concluded that , on an undiscounted cash flow basis , the carrying amount of the asset group was no longer recoverable .
the fair value of deepwater was determined using a discounted cash flow analysis and $ 79 million of impairment expense was recognized .
deepwater is reported in the north america generation reportable segment. |
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dd4bfb808 | schedule iii page 6 of 6 host hotels & resorts , inc. , and subsidiaries host hotels & resorts , l.p. , and subsidiaries real estate and accumulated depreciation december 31 , 2018 ( in millions ) ( b ) the change in accumulated depreciation and amortization of real estate assets for the fiscal years ended december 31 , 2018 , 2017 and 2016 is as follows: .
balance at december 31 2015 | $ 5666
------------------------------------ | ------------
depreciation and amortization | 572
dispositions and other | -159 ( 159 )
depreciation on assets held for sale | -130 ( 130 )
balance at december 31 2016 | 5949
depreciation and amortization | 563
dispositions and other | -247 ( 247 )
depreciation on assets held for sale | 7
balance at december 31 2017 | 6272
depreciation and amortization | 546
dispositions and other | -344 ( 344 )
depreciation on assets held for sale | -101 ( 101 )
balance at december 31 2018 | $ 6373
( c ) the aggregate cost of real estate for federal income tax purposes is approximately $ 10458 million at december 31 , 2018 .
( d ) the total cost of properties excludes construction-in-progress properties. |
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dd4c65154 | news corporation notes to the consolidated financial statements consideration transferred over the fair value of the net tangible and intangible assets acquired was recorded as goodwill .
the allocation is as follows ( in millions ) : assets acquired: .
cash | $ 108
----------------------------- | ------
other current assets | 28
intangible assets | 216
deferred income taxes | 153
goodwill | 552
other non-current assets | 69
total assets acquired | $ 1126
liabilities assumed: |
current liabilities | $ 50
deferred income taxes | 52
borrowings | 129
other non-current liabilities | 3
total liabilities assumed | 234
net assets acquired | $ 892
the acquired intangible assets relate to the license of the realtor.com ae trademark , which has a fair value of approximately $ 116 million and an indefinite life , and customer relationships , other tradenames and certain multiple listing service agreements with an aggregate fair value of approximately $ 100 million , which are being amortized over a weighted-average useful life of approximately 15 years .
the company also acquired technology , primarily associated with the realtor.com ae website , that has a fair value of approximately $ 39 million , which is being amortized over 4 years .
the acquired technology has been recorded in property , plant and equipment , net in the consolidated balance sheets as of the date of acquisition .
move had u.s .
federal net operating loss carryforwards ( 201cnols 201d ) of $ 947 million ( $ 332 million tax-effected ) at the date of acquisition .
the nols are subject to limitations as promulgated under section 382 of the internal revenue code of 1986 , as amended ( the 201ccode 201d ) .
section 382 of the code limits the amount of acquired nols that we can use on an annual basis to offset future u.s .
consolidated taxable income .
valuation allowances and unrecognized tax benefits were recorded against these nols in the amount of $ 484 million ( $ 170 million tax- effected ) as part of the purchase price allocation .
accordingly , the company expected approximately $ 463 million of nols could be utilized , and recorded a net deferred tax asset of $ 162 million as part of the purchase price allocation .
as a result of management 2019s plan to dispose of its digital education business , the company increased its estimated utilization of move 2019s nols by $ 167 million ( $ 58 million tax-effected ) and released valuation allowances equal to that amount .
upon filing its fiscal 2015 federal income tax return , the company reduced move 2019s nols by $ 298 million which represents the amount expected to expire unutilized due to the section 382 limitation discussed above .
as of june 30 , 2016 , the remaining move nols expected to be utilized are $ 573 million ( $ 201 million tax-effected ) .
the utilization of these nols is dependent on generating sufficient u.s .
taxable income prior to expiration which begins in varying amounts starting in 2021 .
the deferred tax assets established for move 2019s nols , net of valuation allowance and unrecognized tax benefits , are included in non- current deferred tax assets on the balance sheets. |
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dd4b9cec0 | consolidated income statement review our consolidated income statement is presented in item 8 of this report .
net income for 2012 was $ 3.0 billion compared with $ 3.1 billion for 2011 .
revenue growth of 8 percent and a decline in the provision for credit losses were more than offset by a 16 percent increase in noninterest expense in 2012 compared to 2011 .
further detail is included in the net interest income , noninterest income , provision for credit losses and noninterest expense portions of this consolidated income statement review .
net interest income table 2 : net interest income and net interest margin year ended december 31 dollars in millions 2012 2011 .
year ended december 31dollars in millions | 2012 | 2011
----------------------------------------- | ---------------- | ----------------
net interest income | $ 9640 | $ 8700
net interest margin | 3.94% ( 3.94 % ) | 3.92% ( 3.92 % )
changes in net interest income and margin result from the interaction of the volume and composition of interest-earning assets and related yields , interest-bearing liabilities and related rates paid , and noninterest-bearing sources of funding .
see the statistical information ( unaudited ) 2013 average consolidated balance sheet and net interest analysis and analysis of year-to-year changes in net interest income in item 8 of this report and the discussion of purchase accounting accretion of purchased impaired loans in the consolidated balance sheet review in this item 7 for additional information .
the increase in net interest income in 2012 compared with 2011 was primarily due to the impact of the rbc bank ( usa ) acquisition , organic loan growth and lower funding costs .
purchase accounting accretion remained stable at $ 1.1 billion in both periods .
the net interest margin was 3.94% ( 3.94 % ) for 2012 and 3.92% ( 3.92 % ) for 2011 .
the increase in the comparison was primarily due to a decrease in the weighted-average rate accrued on total interest- bearing liabilities of 29 basis points , largely offset by a 21 basis point decrease on the yield on total interest-earning assets .
the decrease in the rate on interest-bearing liabilities was primarily due to the runoff of maturing retail certificates of deposit and the redemption of additional trust preferred and hybrid capital securities during 2012 , in addition to an increase in fhlb borrowings and commercial paper as lower-cost funding sources .
the decrease in the yield on interest-earning assets was primarily due to lower rates on new loan volume and lower yields on new securities in the current low rate environment .
with respect to the first quarter of 2013 , we expect net interest income to decline by two to three percent compared to fourth quarter 2012 net interest income of $ 2.4 billion , due to a decrease in purchase accounting accretion of up to $ 50 to $ 60 million , including lower expected cash recoveries .
for the full year 2013 , we expect net interest income to decrease compared with 2012 , assuming an expected decline in purchase accounting accretion of approximately $ 400 million , while core net interest income is expected to increase in the year-over-year comparison .
we believe our net interest margin will come under pressure in 2013 , due to the expected decline in purchase accounting accretion and assuming that the current low rate environment continues .
noninterest income noninterest income totaled $ 5.9 billion for 2012 and $ 5.6 billion for 2011 .
the overall increase in the comparison was primarily due to an increase in residential mortgage loan sales revenue driven by higher loan origination volume , gains on sales of visa class b common shares and higher corporate service fees , largely offset by higher provision for residential mortgage repurchase obligations .
asset management revenue , including blackrock , totaled $ 1.2 billion in 2012 compared with $ 1.1 billion in 2011 .
this increase was primarily due to higher earnings from our blackrock investment .
discretionary assets under management increased to $ 112 billion at december 31 , 2012 compared with $ 107 billion at december 31 , 2011 driven by stronger average equity markets , positive net flows and strong sales performance .
for 2012 , consumer services fees were $ 1.1 billion compared with $ 1.2 billion in 2011 .
the decline reflected the regulatory impact of lower interchange fees on debit card transactions partially offset by customer growth .
as further discussed in the retail banking portion of the business segments review section of this item 7 , the dodd-frank limits on interchange rates were effective october 1 , 2011 and had a negative impact on revenue of approximately $ 314 million in 2012 and $ 75 million in 2011 .
this impact was partially offset by higher volumes of merchant , customer credit card and debit card transactions and the impact of the rbc bank ( usa ) acquisition .
corporate services revenue increased by $ .3 billion , or 30 percent , to $ 1.2 billion in 2012 compared with $ .9 billion in 2011 due to higher commercial mortgage servicing revenue and higher merger and acquisition advisory fees in 2012 .
the major components of corporate services revenue are treasury management revenue , corporate finance fees , including revenue from capital markets-related products and services , and commercial mortgage servicing revenue , including commercial mortgage banking activities .
see the product revenue portion of this consolidated income statement review for further detail .
the pnc financial services group , inc .
2013 form 10-k 39 |
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dd4bb78a6 | improvements are amortized using the straight-line method over the lesser of the remaining respective lease term or estimated useful lives ranging from 1 to 15 years .
goodwill , purchased intangibles and other long-lived assets we review our goodwill for impairment annually , or more frequently , if facts and circumstances warrant a review .
we completed our annual impairment test in the second quarter of fiscal 2011 and determined that there was no impairment .
in the fourth quarter of fiscal 2011 , we announced changes to our business strategy which resulted in a reduction of forecasted revenue for certain of our products .
we performed an update to our goodwill impairment test for the enterprise reporting unit and determined there was no impairment .
goodwill is assigned to one or more reporting segments on the date of acquisition .
we 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 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 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 2011 , 2010 or 2009 .
our intangible assets are amortized over their estimated useful lives of 1 to 13 years .
amortization is based on the pattern in which the economic benefits of the intangible asset will be consumed .
the weighted average useful lives of our intangibles assets was as follows: .
| weighted averageuseful life ( years )
------------------------------------ | -------------------------------------
purchased technology | 6
customer contracts and relationships | 10
trademarks | 7
acquired rights to use technology | 9
localization | 1
other intangibles | 3
weighted average useful life ( years ) software development costs capitalization of software development costs for software to be sold , leased , or otherwise marketed begins upon the establishment of technological feasibility , which is generally the completion of a working prototype that has been certified as having no critical bugs and is a release candidate .
amortization begins once the software is ready for its intended use , generally based on the pattern in which the economic benefits will be consumed .
to date , software development costs incurred between completion of a working prototype and general availability of the related product have not been material .
internal use software we capitalize costs associated with customized internal-use software systems that have reached the application development stage .
such capitalized costs include external direct costs utilized in developing or obtaining the applications and payroll and payroll-related expenses for employees , who are directly associated with the development of the applications .
capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose .
table of contents adobe systems incorporated notes to consolidated financial statements ( continued ) |
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dd4c51c44 | notes to consolidated financial statements 2014 ( continued ) the risk-free interest rate is based on the yield of a zero coupon united states treasury security with a maturity equal to the expected life of the option from the date of the grant .
our assumption on expected volatility is based on our historical volatility .
the dividend yield assumption is calculated using our average stock price over the preceding year and the annualized amount of our current quarterly dividend .
we based our assumptions on the expected lives of the options on our analysis of the historical exercise patterns of the options and our assumption on the future exercise pattern of options .
restricted stock shares awarded under the restricted stock program , issued under the 2000 plan and 2005 plan , are held in escrow and released to the grantee upon the grantee 2019s satisfaction of conditions of the grantee 2019s restricted stock agreement .
the grant date fair value of restricted stock awards is based on the quoted fair market value of our common stock at the award date .
compensation expense is recognized ratably during the escrow period of the award .
grants of restricted shares are subject to forfeiture if a grantee , among other conditions , leaves our employment prior to expiration of the restricted period .
grants of restricted shares generally vest one year after the date of grant with respect to 25% ( 25 % ) of the shares granted , an additional 25% ( 25 % ) after two years , an additional 25% ( 25 % ) after three years , and the remaining 25% ( 25 % ) after four years .
the following table summarizes the changes in non-vested restricted stock awards for the years ended may 31 , 2010 and 2009 ( share awards in thousands ) : shares weighted average grant-date fair value .
| shares | weighted average grant-date fair value
------------------------- | ------------ | --------------------------------------
non-vested at may 31 2008 | 518 | $ 39
granted | 430 | 43
vested | -159 ( 159 ) | 39
forfeited | -27 ( 27 ) | 41
non-vested at may 31 2009 | 762 | 42
granted | 420 | 42
vested | -302 ( 302 ) | 41
forfeited | -167 ( 167 ) | 43
non-vested at may 31 2010 | 713 | 42
the weighted average grant-date fair value of share awards granted in the year ended may 31 , 2008 was $ 38 .
the total fair value of share awards vested during the years ended may 31 , 2010 , 2009 and 2008 was $ 12.4 million , $ 6.2 million and $ 4.1 million , respectively .
we recognized compensation expense for restricted stock of $ 12.1 million , $ 9.0 million , and $ 5.7 million in the years ended may 31 , 2010 , 2009 and 2008 .
as of may 31 , 2010 , there was $ 21.1 million of total unrecognized compensation cost related to unvested restricted stock awards that is expected to be recognized over a weighted average period of 2.5 years .
employee stock purchase plan we have an employee stock purchase plan under which the sale of 2.4 million shares of our common stock has been authorized .
employees may designate up to the lesser of $ 25000 or 20% ( 20 % ) of their annual compensation for the purchase of stock .
the price for shares purchased under the plan is 85% ( 85 % ) of the market value on the last day of the quarterly purchase period .
as of may 31 , 2010 , 0.9 million shares had been issued under this plan , with 1.5 million shares reserved for future issuance. |
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dd4c59cf0 | notes to consolidated financial statements the following table sets forth the activity related to the 2005 restructuring plan liabilities .
( millions ) .
balance at january 1 2005 | $ 2014
---------------------------- | ------------
expensed in 2005 | 141
cash payments in 2005 | -23 ( 23 )
foreign currency revaluation | -2 ( 2 )
balance at december 31 2005 | 116
expensed in 2006 | 155
cash payments in 2006 | -141 ( 141 )
foreign currency revaluation | 4
balance at december 31 2006 | 134
expensed in 2007 | 38
cash payments in 2007 | -110 ( 110 )
foreign currency revaluation | 1
balance at december 31 2007 | $ 63
aon 2019s unpaid restructuring liabilities are included in both accounts payable and accrued liabilities and other non-current liabilities in the consolidated statements of financial position .
aon corporation |
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dd4bec3f8 | equity compensation plan information the following table presents the equity securities available for issuance under our equity compensation plans as of december 31 , 2015 .
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 ( 2 ) 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 1424356 $ 33.90 4281952 equity compensation plans not approved by security holders ( 3 ) 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 ( 2 ) | 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 | 1424356 | $ 33.90 | 4281952
equity compensation plans not approved by security holders ( 3 ) | 2014 | 2014 | 2014
total | 1424356 | $ 33.90 | 4281952
( 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 , 533397 were subject to stock options and 54191 were stock rights granted under the 2011 plan .
in addition , this number includes 35553 stock rights , 10279 restricted stock rights , and 790936 restricted performance stock rights granted under the 2012 plan , assuming target performance achievement .
( 2 ) this is the weighted average exercise price of the 533397 outstanding stock options only .
( 3 ) 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 2016 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 2016 annual meeting of stockholders , to be filed within 120 days after the end of the company 2019s fiscal year. |
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dd4be5d3c | during 2014 , 2013 and 2012 , netherland , sewell & associates , inc .
( "nsai" ) prepared a certification of the prior year's reserves for the alba field in e.g .
the nsai summary reports are filed as an exhibit to this annual report on form 10-k .
members of the nsai team have multiple years of industry experience , having worked for large , international oil and gas companies before joining nsai .
the senior technical advisor has over 35 years of practical experience in petroleum geosciences , with over 15 years experience in the estimation and evaluation of reserves .
the second team member has over 10 years of practical experience in petroleum engineering , with 5 years experience in the estimation and evaluation of reserves .
both are registered professional engineers in the state of texas .
ryder scott company ( "ryder scott" ) also performed audits of the prior years' reserves of several of our fields in 2014 , 2013 and 2012 .
their summary reports are filed as exhibits to this annual report on form 10-k .
the team lead for ryder scott has over 20 years of industry experience , having worked for a major international oil and gas company before joining ryder scott .
he is a member of spe , where he served on the oil and gas reserves committee , and is a registered professional engineer in the state of texas .
changes in proved undeveloped reserves as of december 31 , 2014 , 728 mmboe of proved undeveloped reserves were reported , an increase of 101 mmboe from december 31 , 2013 .
the following table shows changes in total proved undeveloped reserves for 2014 : ( mmboe ) .
beginning of year | 627
------------------------------------------ | ------------
revisions of previous estimates | 1
improved recovery | 1
purchases of reserves in place | 4
extensions discoveries and other additions | 227
dispositions | -29 ( 29 )
transfers to proved developed | -103 ( 103 )
end of year | 728
significant additions to proved undeveloped reserves during 2014 included 121 mmboe in the eagle ford and 61 mmboe in the bakken shale plays due to development drilling .
transfers from proved undeveloped to proved developed reserves included 67 mmboe in the eagle ford , 26 mmboe in the bakken and 1 mmboe in the oklahoma resource basins due to development drilling and completions .
costs incurred in 2014 , 2013 and 2012 relating to the development of proved undeveloped reserves , were $ 3149 million , $ 2536 million and $ 1995 million .
a total of 102 mmboe was booked as extensions , discoveries or other additions due to the application of reliable technology .
technologies included statistical analysis of production performance , decline curve analysis , pressure and rate transient analysis , reservoir simulation and volumetric analysis .
the statistical nature of production performance coupled with highly certain reservoir continuity or quality within the reliable technology areas and sufficient proved undeveloped locations establish the reasonable certainty criteria required for booking proved reserves .
projects can remain in proved undeveloped reserves for extended periods in certain situations such as large development projects which take more than five years to complete , or the timing of when additional gas compression is needed .
of the 728 mmboe of proved undeveloped reserves at december 31 , 2014 , 19 percent of the volume is associated with projects that have been included in proved reserves for more than five years .
the majority of this volume is related to a compression project in e.g .
that was sanctioned by our board of directors in 2004 .
the timing of the installation of compression is being driven by the reservoir performance with this project intended to maintain maximum production levels .
performance of this field since the board sanctioned the project has far exceeded expectations .
estimates of initial dry gas in place increased by roughly 10 percent between 2004 and 2010 .
during 2012 , the compression project received the approval of the e.g .
government , allowing design and planning work to progress towards implementation , with completion expected by mid-2016 .
the other component of alba proved undeveloped reserves is an infill well approved in 2013 and to be drilled in the second quarter of 2015 .
proved undeveloped reserves for the north gialo development , located in the libyan sahara desert , were booked for the first time in 2010 .
this development , which is anticipated to take more than five years to develop , is executed by the operator and encompasses a multi-year drilling program including the design , fabrication and installation of extensive liquid handling and gas recycling facilities .
anecdotal evidence from similar development projects in the region lead to an expected project execution time frame of more than five years from the time the reserves were initially booked .
interruptions associated with the civil unrest in 2011 and third-party labor strikes and civil unrest in 2013-2014 have also extended the project duration .
as of december 31 , 2014 , future development costs estimated to be required for the development of proved undeveloped crude oil and condensate , ngls , natural gas and synthetic crude oil reserves related to continuing operations for the years 2015 through 2019 are projected to be $ 2915 million , $ 2598 million , $ 2493 million , $ 2669 million and $ 2745 million. |
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dd4bd1fa8 | the pnc financial services group , inc .
2013 form 10-k 65 liquidity and capital management liquidity risk has two fundamental components .
the first is potential loss assuming we were unable to meet our funding requirements at a reasonable cost .
the second is the potential inability to operate our businesses because adequate contingent liquidity is not available .
we manage liquidity risk at the consolidated company level ( bank , parent company and nonbank subsidiaries combined ) to help ensure that we can obtain cost-effective funding to meet current and future obligations under both normal 201cbusiness as usual 201d and stressful circumstances , and to help ensure that we maintain an appropriate level of contingent liquidity .
management monitors liquidity through a series of early warning indicators that may indicate a potential market , or pnc-specific , liquidity stress event .
in addition , management performs a set of liquidity stress tests over multiple time horizons with varying levels of severity and maintains a contingency funding plan to address a potential liquidity stress event .
in the most severe liquidity stress simulation , we assume that our liquidity position is under pressure , while the market in general is under systemic pressure .
the simulation considers , among other things , the impact of restricted access to both secured and unsecured external sources of funding , accelerated run-off of customer deposits , valuation pressure on assets and heavy demand to fund committed obligations .
parent company liquidity guidelines are designed to help ensure that sufficient liquidity is available to meet our parent company obligations over the succeeding 24-month period .
liquidity-related risk limits are established within our enterprise liquidity management policy and supporting policies .
management committees , including the asset and liability committee , and the board of directors and its risk committee regularly review compliance with key established limits .
in addition to these liquidity monitoring measures and tools described above , we also monitor our liquidity by reference to the liquidity coverage ratio ( lcr ) which is further described in the supervision and regulation section in item 1 of this report .
pnc and pnc bank calculate the lcr on a daily basis and as of december 31 , 2018 , the lcr for pnc and pnc bank exceeded the fully phased-in requirement of 100% ( 100 % ) .
we provide additional information regarding regulatory liquidity requirements and their potential impact on us in the supervision and regulation section of item 1 business and item 1a risk factors of this report .
sources of liquidity our largest source of liquidity on a consolidated basis is the customer deposit base generated by our banking businesses .
these deposits provide relatively stable and low-cost funding .
total deposits increased to $ 267.8 billion at december 31 , 2018 from $ 265.1 billion at december 31 , 2017 driven by growth in interest-bearing deposits partially offset by a decrease in noninterest-bearing deposits .
see the funding sources section of the consolidated balance sheet review in this report for additional information related to our deposits .
additionally , certain assets determined by us to be liquid as well as unused borrowing capacity from a number of sources are also available to manage our liquidity position .
at december 31 , 2018 , our liquid assets consisted of short-term investments ( federal funds sold , resale agreements , trading securities and interest-earning deposits with banks ) totaling $ 22.1 billion and securities available for sale totaling $ 63.4 billion .
the level of liquid assets fluctuates over time based on many factors , including market conditions , loan and deposit growth and balance sheet management activities .
our liquid assets included $ 2.7 billion of securities available for sale and trading securities pledged as collateral to secure public and trust deposits , repurchase agreements and for other purposes .
in addition , $ 4.9 billion of securities held to maturity were also pledged as collateral for these purposes .
we also obtain liquidity through various forms of funding , including long-term debt ( senior notes , subordinated debt and fhlb borrowings ) and short-term borrowings ( securities sold under repurchase agreements , commercial paper and other short-term borrowings ) .
see note 10 borrowed funds and the funding sources section of the consolidated balance sheet review in this report for additional information related to our borrowings .
total senior and subordinated debt , on a consolidated basis , decreased due to the following activity : table 24 : senior and subordinated debt .
in billions | 2018
-------------------- | ------------
january 1 | $ 33.3
issuances | 4.5
calls and maturities | -6.8 ( 6.8 )
other | -.1 ( .1 )
december 31 | $ 30.9 |
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dd4be1700 | credit commitments and lines of credit the table below summarizes citigroup 2019s credit commitments : in millions of dollars u.s .
outside of u.s .
december 31 , december 31 .
in millions of dollars | u.s . | outside ofu.s . | december 312018 | december 31 2017
------------------------------------------------------------------------------ | -------- | --------------- | --------------- | ----------------
commercial and similar letters of credit | $ 823 | $ 4638 | $ 5461 | $ 5000
one- to four-family residential mortgages | 1056 | 1615 | 2671 | 2674
revolving open-end loans secured by one- to four-family residential properties | 10019 | 1355 | 11374 | 12323
commercial real estate construction and land development | 9565 | 1728 | 11293 | 11151
credit card lines | 605857 | 90150 | 696007 | 678300
commercial and other consumer loan commitments | 185849 | 102918 | 288767 | 272655
other commitments and contingencies | 2560 | 761 | 3321 | 3071
total | $ 815729 | $ 203165 | $ 1018894 | $ 985174
the majority of unused commitments are contingent upon customers maintaining specific credit standards .
commercial commitments generally have floating interest rates and fixed expiration dates and may require payment of fees .
such fees ( net of certain direct costs ) are deferred and , upon exercise of the commitment , amortized over the life of the loan or , if exercise is deemed remote , amortized over the commitment period .
commercial and similar letters of credit a commercial letter of credit is an instrument by which citigroup substitutes its credit for that of a customer to enable the customer to finance the purchase of goods or to incur other commitments .
citigroup issues a letter on behalf of its client to a supplier and agrees to pay the supplier upon presentation of documentary evidence that the supplier has performed in accordance with the terms of the letter of credit .
when a letter of credit is drawn , the customer is then required to reimburse citigroup .
one- to four-family residential mortgages a one- to four-family residential mortgage commitment is a written confirmation from citigroup to a seller of a property that the bank will advance the specified sums enabling the buyer to complete the purchase .
revolving open-end loans secured by one- to four-family residential properties revolving open-end loans secured by one- to four-family residential properties are essentially home equity lines of credit .
a home equity line of credit is a loan secured by a primary residence or second home to the extent of the excess of fair market value over the debt outstanding for the first mortgage .
commercial real estate , construction and land development commercial real estate , construction and land development include unused portions of commitments to extend credit for the purpose of financing commercial and multifamily residential properties as well as land development projects .
both secured-by-real-estate and unsecured commitments are included in this line , as well as undistributed loan proceeds , where there is an obligation to advance for construction progress payments .
however , this line only includes those extensions of credit that , once funded , will be classified as total loans , net on the consolidated balance sheet .
credit card lines citigroup provides credit to customers by issuing credit cards .
the credit card lines are cancelable by providing notice to the cardholder or without such notice as permitted by local law .
commercial and other consumer loan commitments commercial and other consumer loan commitments include overdraft and liquidity facilities as well as commercial commitments to make or purchase loans , purchase third-party receivables , provide note issuance or revolving underwriting facilities and invest in the form of equity .
other commitments and contingencies other commitments and contingencies include committed or unsettled regular-way reverse repurchase agreements and all other transactions related to commitments and contingencies not reported on the lines above .
unsettled reverse repurchase and securities lending agreements and unsettled repurchase and securities borrowing agreements in addition , in the normal course of business , citigroup enters into reverse repurchase and securities borrowing agreements , as well as repurchase and securities lending agreements , which settle at a future date .
at december 31 , 2018 , and 2017 , citigroup had $ 36.1 billion and $ 35.0 billion unsettled reverse repurchase and securities borrowing agreements , respectively , and $ 30.7 billion and $ 19.1 billion unsettled repurchase and securities lending agreements , respectively .
for a further discussion of securities purchased under agreements to resell and securities borrowed , and securities sold under agreements to repurchase and securities loaned , including the company 2019s policy for offsetting repurchase and reverse repurchase agreements , see note 11 to the consolidated financial statements. |
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dd4bff188 | mastercard incorporated notes to consolidated financial statements 2014 ( continued ) ( in thousands , except percent and per share data ) note 17 .
commitments at december 31 , 2008 , the company had the following future minimum payments due under non-cancelable agreements : capital leases operating leases sponsorship , licensing & .
| total | capital leases | operating leases | sponsorship licensing & other
---------- | -------- | -------------- | ---------------- | -----------------------------
2009 | $ 372320 | $ 8435 | $ 40327 | $ 323558
2010 | 140659 | 2758 | 18403 | 119498
2011 | 80823 | 1978 | 11555 | 67290
2012 | 50099 | 1819 | 9271 | 39009
2013 | 50012 | 36837 | 7062 | 6113
thereafter | 21292 | 2014 | 19380 | 1912
total | $ 715205 | $ 51827 | $ 105998 | $ 557380
included in the table above are capital leases with imputed interest expense of $ 9483 and a net present value of minimum lease payments of $ 42343 .
in addition , at december 31 , 2008 , $ 92300 of the future minimum payments in the table above for leases , sponsorship , licensing and other agreements was accrued .
consolidated rental expense for the company 2019s office space , which is recognized on a straight line basis over the life of the lease , was approximately $ 42905 , $ 35614 and $ 31467 for the years ended december 31 , 2008 , 2007 and 2006 , respectively .
consolidated lease expense for automobiles , computer equipment and office equipment was $ 7694 , $ 7679 and $ 8419 for the years ended december 31 , 2008 , 2007 and 2006 , respectively .
in january 2003 , mastercard purchased a building in kansas city , missouri for approximately $ 23572 .
the building is a co-processing data center which replaced a back-up data center in lake success , new york .
during 2003 , mastercard entered into agreements with the city of kansas city for ( i ) the sale-leaseback of the building and related equipment which totaled $ 36382 and ( ii ) the purchase of municipal bonds for the same amount which have been classified as municipal bonds held-to-maturity .
the agreements enabled mastercard to secure state and local financial benefits .
no gain or loss was recorded in connection with the agreements .
the leaseback has been accounted for as a capital lease as the agreement contains a bargain purchase option at the end of the ten-year lease term on april 1 , 2013 .
the building and related equipment are being depreciated over their estimated economic life in accordance with the company 2019s policy .
rent of $ 1819 is due annually and is equal to the interest due on the municipal bonds .
the future minimum lease payments are $ 45781 and are included in the table above .
a portion of the building was subleased to the original building owner for a five-year term with a renewal option .
as of december 31 , 2008 , the future minimum sublease rental income is $ 4416 .
note 18 .
obligations under litigation settlements on october 27 , 2008 , mastercard and visa inc .
( 201cvisa 201d ) entered into a settlement agreement ( the 201cdiscover settlement 201d ) with discover financial services , inc .
( 201cdiscover 201d ) relating to the u.s .
federal antitrust litigation amongst the parties .
the discover settlement ended all litigation between the parties for a total of $ 2750000 .
in july 2008 , mastercard and visa had entered into a judgment sharing agreement that allocated responsibility for any judgment or settlement of the discover action between the parties .
accordingly , the mastercard share of the discover settlement was $ 862500 , which was paid to discover in november 2008 .
in addition , in connection with the discover settlement , morgan stanley , discover 2019s former parent company , paid mastercard $ 35000 in november 2008 , pursuant to a separate agreement .
the net impact of $ 827500 is included in litigation settlements for the year ended december 31 , 2008. |
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dd4c229ee | notes to consolidated financial statements 2013 ( continued ) ( amounts in millions , except per share amounts ) guarantees we have guaranteed certain obligations of our subsidiaries relating principally to operating leases and credit facilities of certain subsidiaries .
the amount of parent company guarantees on lease obligations was $ 410.3 and $ 385.1 as of december 31 , 2012 and 2011 , respectively , and the amount of parent company guarantees primarily relating to credit facilities was $ 283.4 and $ 327.5 as of december 31 , 2012 and 2011 , 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 , 2012 , there were no material assets pledged as security for such parent company guarantees .
contingent acquisition obligations the following table details the estimated future contingent acquisition obligations payable in cash as of december 31 .
| 2013 | 2014 | 2015 | 2016 | 2017 | thereafter | total
--------------------------------------------------------------------- | ------------ | ------------ | ------------ | ------------ | ------ | ---------- | ------------
deferred acquisition payments | $ 26.0 | $ 12.4 | $ 9.7 | $ 46.4 | $ 18.9 | $ 2.0 | $ 115.4
redeemable noncontrolling interests and call options with affiliates1 | 20.5 | 43.8 | 32.9 | 5.7 | 2.2 | 10.6 | 115.7
total contingent acquisition payments | 46.5 | 56.2 | 42.6 | 52.1 | 21.1 | 12.6 | 231.1
less : cash compensation expense included above | -0.7 ( 0.7 ) | -0.6 ( 0.6 ) | -0.8 ( 0.8 ) | -0.2 ( 0.2 ) | 0.0 | 0.0 | -2.3 ( 2.3 )
total | $ 45.8 | $ 55.6 | $ 41.8 | $ 51.9 | $ 21.1 | $ 12.6 | $ 228.8
1 we have entered into certain acquisitions that contain both redeemable noncontrolling interests and call options with similar terms and conditions .
we have certain redeemable noncontrolling interests that are exercisable at the discretion of the noncontrolling equity owners as of december 31 , 2012 .
these estimated payments of $ 16.4 are included within the total payments expected to be made in 2013 , and will continue to be carried forward into 2014 or beyond until exercised or expired .
redeemable noncontrolling interests are included in the table at current exercise price payable in cash , not at applicable redemption value in accordance with the authoritative guidance for classification and measurement of redeemable securities .
the estimated amounts listed would be paid in the event of exercise at the earliest exercise date .
see note 6 for further information relating to the payment structure of our acquisitions .
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 .
legal matters we are involved in various legal proceedings , and subject to investigations , inspections , audits , inquiries and similar actions by governmental authorities , arising in the normal course of business .
we evaluate all cases each reporting period and record liabilities for losses from legal proceedings when we determine that it is probable that the outcome in a legal proceeding will be unfavorable and the amount , or potential range , of loss can be reasonably estimated .
in certain cases , we cannot reasonably estimate the potential loss because , for example , the litigation is in its early stages .
while any outcome related to litigation or such governmental proceedings in which we are involved cannot be predicted with certainty , management believes that the outcome of these matters , individually and in the aggregate , will not have a material adverse effect on our financial condition , results of operations or cash flows .
note 15 : recent accounting standards impairment of indefinite-lived intangible assets in july 2012 , the financial accounting standards board ( 201cfasb 201d ) issued amended guidance to simplify impairment testing of indefinite-lived intangible assets other than goodwill .
the amended guidance permits an entity to first assess qualitative factors to determine whether it is 201cmore likely than not 201d that the indefinite-lived intangible asset is impaired .
if , after assessing qualitative factors , an entity concludes that it is not 201cmore likely than not 201d that the indefinite-lived intangible |
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dd496f152 | dish network corporation notes to consolidated financial statements - continued 9 .
acquisitions dbsd north america and terrestar transactions on march 2 , 2012 , the fcc approved the transfer of 40 mhz of aws-4 wireless spectrum licenses held by dbsd north america and terrestar to us .
on march 9 , 2012 , we completed the dbsd transaction and the terrestar transaction , pursuant to which we acquired , among other things , certain satellite assets and wireless spectrum licenses held by dbsd north america and terrestar .
in addition , during the fourth quarter 2011 , we and sprint entered into a mutual release and settlement agreement ( the 201csprint settlement agreement 201d ) pursuant to which all issues then being disputed relating to the dbsd transaction and the terrestar transaction were resolved between us and sprint , including , but not limited to , issues relating to costs allegedly incurred by sprint to relocate users from the spectrum then licensed to dbsd north america and terrestar .
the total consideration to acquire the dbsd north america and terrestar assets was approximately $ 2.860 billion .
this amount includes $ 1.364 billion for the dbsd transaction , $ 1.382 billion for the terrestar transaction , and the net payment of $ 114 million to sprint pursuant to the sprint settlement agreement .
see note 16 for further information .
as a result of these acquisitions , we recognized the acquired assets and assumed liabilities based on our estimates of fair value at their acquisition date , including $ 102 million in an uncertain tax position in 201clong-term deferred revenue , distribution and carriage payments and other long-term liabilities 201d on our consolidated balance sheets .
subsequently , in the third quarter 2013 , this uncertain tax position was resolved and $ 102 million was reversed and recorded as a decrease in 201cincome tax ( provision ) benefit , net 201d on our consolidated statements of operations and comprehensive income ( loss ) for the year ended december 31 , 2013 .
10 .
discontinued operations as of december 31 , 2013 , blockbuster had ceased all material operations .
accordingly , our consolidated balance sheets , consolidated statements of operations and comprehensive income ( loss ) and consolidated statements of cash flows have been recast to present blockbuster as discontinued operations for all periods presented and the amounts presented in the notes to our consolidated financial statements relate only to our continuing operations , unless otherwise noted .
during the years ended december 31 , 2013 , 2012 and 2011 , the revenue from our discontinued operations was $ 503 million , $ 1.085 billion and $ 974 million , respectively .
201cincome ( loss ) from discontinued operations , before income taxes 201d for the same periods was a loss of $ 54 million , $ 62 million and $ 3 million , respectively .
in addition , 201cincome ( loss ) from discontinued operations , net of tax 201d for the same periods was a loss of $ 47 million , $ 37 million and $ 7 million , respectively .
as of december 31 , 2013 , the net assets from our discontinued operations consisted of the following : december 31 , 2013 ( in thousands ) .
| as of december 31 2013 ( in thousands )
-------------------------------------------------- | ---------------------------------------
current assets from discontinued operations | $ 68239
noncurrent assets from discontinued operations | 9965
current liabilities from discontinued operations | -49471 ( 49471 )
long-term liabilities from discontinued operations | -19804 ( 19804 )
net assets from discontinued operations | $ 8929 |
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dd4bcfe2e | equity equity at december 31 , 2014 was $ 6.6 billion , a decrease of $ 1.6 billion from december 31 , 2013 .
the decrease resulted primarily due to share repurchases of $ 2.3 billion , $ 273 million of dividends to shareholders , and an increase in accumulated other comprehensive loss of $ 760 million , partially offset by net income of $ 1.4 billion .
the $ 760 million increase in accumulated other comprehensive loss from december 31 , 2013 , primarily reflects the following : 2022 negative net foreign currency translation adjustments of $ 504 million , which are attributable to the strengthening of the u.s .
dollar against certain foreign currencies , 2022 an increase of $ 260 million in net post-retirement benefit obligations , 2022 net derivative gains of $ 5 million , and 2022 net investment losses of $ 1 million .
review by segment general we serve clients through the following segments : 2022 risk solutions acts as an advisor and insurance and reinsurance broker , helping clients manage their risks , via consultation , as well as negotiation and placement of insurance risk with insurance carriers through our global distribution network .
2022 hr solutions partners with organizations to solve their most complex benefits , talent and related financial challenges , and improve business performance by designing , implementing , communicating and administering a wide range of human capital , retirement , investment management , health care , compensation and talent management strategies .
risk solutions .
years ended december 31 ( millions except percentage data ) | 2014 | 2013 | 2012
----------------------------------------------------------- | ---------------- | ---------------- | ----------------
revenue | $ 7834 | $ 7789 | $ 7632
operating income | 1648 | 1540 | 1493
operating margin | 21.0% ( 21.0 % ) | 19.8% ( 19.8 % ) | 19.6% ( 19.6 % )
the demand for property and casualty insurance generally rises as the overall level of economic activity increases and generally falls as such activity decreases , affecting both the commissions and fees generated by our brokerage business .
the economic activity that impacts property and casualty insurance is described as exposure units , and is most closely correlated with employment levels , corporate revenue and asset values .
during 2014 , pricing was flat on average globally , and we would still consider this to be a "soft market." in a soft market , 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 .
additionally , continuing through 2014 , we faced difficult conditions as a result of continued weakness in the global economy , the repricing of credit risk and the deterioration of the financial markets .
weak economic conditions in many markets around the globe have reduced our customers' demand for our retail brokerage and reinsurance brokerage products , which have had a negative impact on our operational results .
risk solutions generated approximately 65% ( 65 % ) of our consolidated total revenues in 2014 .
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' 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 |
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dd4ba3e6e | entergy louisiana , llc management's financial discussion and analysis net revenue 2008 compared to 2007 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 2008 to 2007 .
amount ( in millions ) .
| amount ( in millions )
------------------------ | ----------------------
2007 net revenue | $ 991.1
retail electric price | -17.1 ( 17.1 )
purchased power capacity | -12.0 ( 12.0 )
net wholesale revenue | -7.4 ( 7.4 )
other | 4.6
2008 net revenue | $ 959.2
the retail electric price variance is primarily due to the cessation of the interim storm recovery through the formula rate plan upon the act 55 financing of storm costs and a credit passed on to customers as a result of the act 55 storm cost financing , partially offset by increases in the formula rate plan effective october 2007 .
refer to "hurricane rita and hurricane katrina" and "state and local rate regulation" below for a discussion of the interim recovery of storm costs , the act 55 storm cost financing , and the formula rate plan filing .
the purchased power capacity variance is due to the amortization of deferred capacity costs effective september 2007 as a result of the formula rate plan filing in may 2007 .
purchased power capacity costs are offset in base revenues due to a base rate increase implemented to recover incremental deferred and ongoing purchased power capacity charges .
see "state and local rate regulation" below for a discussion of the formula rate plan filing .
the net wholesale revenue variance is primarily due to provisions recorded for potential rate refunds related to the treatment of interruptible load in pricing entergy system affiliate sales .
gross operating revenue and , fuel and purchased power expenses gross operating revenues increased primarily due to an increase of $ 364.7 million in fuel cost recovery revenues due to higher fuel rates offset by decreased usage .
the increase was partially offset by a decrease of $ 56.8 million in gross wholesale revenue due to a decrease in system agreement rough production cost equalization credits .
fuel and purchased power expenses increased primarily due to increases in the average market prices of natural gas and purchased power , partially offset by a decrease in the recovery from customers of deferred fuel costs. |
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dd4bcdaf2 | a summary of the company 2019s significant contractual obligations as of december 31 , 2015 , follows : contractual obligations .
( millions ) | total | payments due by year 2016 | payments due by year 2017 | payments due by year 2018 | payments due by year 2019 | payments due by year 2020 | payments due by year after 2020
---------------------------------------------------- | ------- | ------------------------- | ------------------------- | ------------------------- | ------------------------- | ------------------------- | -------------------------------
long-term debt including current portion ( note 10 ) | $ 9878 | $ 1125 | $ 744 | $ 993 | $ 622 | $ 1203 | $ 5191
interest on long-term debt | 2244 | 174 | 157 | 153 | 149 | 146 | 1465
operating leases ( note 14 ) | 943 | 234 | 191 | 134 | 86 | 72 | 226
capital leases ( note 14 ) | 59 | 11 | 6 | 4 | 3 | 3 | 32
unconditional purchase obligations and other | 1631 | 1228 | 160 | 102 | 54 | 56 | 31
total contractual cash obligations | $ 14755 | $ 2772 | $ 1258 | $ 1386 | $ 914 | $ 1480 | $ 6945
long-term debt payments due in 2016 and 2017 include floating rate notes totaling $ 126 million ( classified as current portion of long-term debt ) , and $ 96 million ( included as a separate floating rate note in the long-term debt table ) , respectively , as a result of put provisions associated with these debt instruments .
interest projections on both floating and fixed rate long-term debt , including the effects of interest rate swaps , are based on effective interest rates as of december 31 , 2015 .
unconditional purchase obligations are defined as an agreement to purchase goods or services that is enforceable and legally binding on the company .
included in the unconditional purchase obligations category above are certain obligations related to take or pay contracts , capital commitments , service agreements and utilities .
these estimates include both unconditional purchase obligations with terms in excess of one year and normal ongoing purchase obligations with terms of less than one year .
many of these commitments relate to take or pay contracts , in which 3m guarantees payment to ensure availability of products or services that are sold to customers .
the company expects to receive consideration ( products or services ) for these unconditional purchase obligations .
contractual capital commitments are included in the preceding table , but these commitments represent a small part of the company 2019s expected capital spending in 2016 and beyond .
the purchase obligation amounts do not represent the entire anticipated purchases in the future , but represent only those items for which the company is contractually obligated .
the majority of 3m 2019s products and services are purchased as needed , with no unconditional commitment .
for this reason , these amounts will not provide a reliable indicator of the company 2019s expected future cash outflows on a stand-alone basis .
other obligations , included in the preceding table within the caption entitled 201cunconditional purchase obligations and other , 201d include the current portion of the liability for uncertain tax positions under asc 740 , which is expected to be paid out in cash in the next 12 months .
the company is not able to reasonably estimate the timing of the long-term payments or the amount by which the liability will increase or decrease over time ; therefore , the long-term portion of the net tax liability of $ 208 million is excluded from the preceding table .
refer to note 8 for further details .
as discussed in note 11 , the company does not have a required minimum cash pension contribution obligation for its u.s .
plans in 2016 and company contributions to its u.s .
and international pension plans are expected to be largely discretionary in future years ; therefore , amounts related to these plans are not included in the preceding table .
financial instruments the company enters into foreign exchange forward contracts , options and swaps to hedge against the effect of exchange rate fluctuations on cash flows denominated in foreign currencies and certain intercompany financing transactions .
the company manages interest rate risks using a mix of fixed and floating rate debt .
to help manage borrowing costs , the company may enter into interest rate swaps .
under these arrangements , the company agrees to exchange , at specified intervals , the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount .
the company manages commodity price risks through negotiated supply contracts , price protection agreements and forward contracts. |
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dd4c4ee72 | stockholder return performance graph the following graph compares the cumulative 5-year total stockholder return on our common stock relative to the cumulative total return of the nasdaq composite index and the s&p 400 information technology index .
the graph assumes that the value of the investment in our common stock on january 2 , 2010 and in each index on december 31 , 2009 ( including reinvestment of dividends ) was $ 100 and tracks it each year thereafter on the last day of cadence 2019s fiscal year through january 3 , 2015 and , for each index , on the last day of the calendar comparison of 5 year cumulative total return* among cadence design systems , inc. , the nasdaq composite index , and s&p 400 information technology cadence design systems , inc .
nasdaq composite s&p 400 information technology 12/28/13 1/3/151/1/11 12/31/11 12/29/121/2/10 *$ 100 invested on 1/2/10 in stock or 12/31/09 in index , including reinvestment of dividends .
indexes calculated on month-end basis .
copyright a9 2014 s&p , a division of the mcgraw-hill companies inc .
all rights reserved. .
| 1/2/2010 | 1/1/2011 | 12/31/2011 | 12/29/2012 | 12/28/2013 | 1/3/2015
------------------------------ | -------- | -------- | ---------- | ---------- | ---------- | --------
cadence design systems inc . | 100.00 | 137.90 | 173.62 | 224.37 | 232.55 | 314.36
nasdaq composite | 100.00 | 117.61 | 118.70 | 139.00 | 196.83 | 223.74
s&p 400 information technology | 100.00 | 128.72 | 115.22 | 135.29 | 173.25 | 187.84
the stock price performance included in this graph is not necessarily indicative of future stock price performance. |
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dd4bacbf4 | were more than offset by higher raw material and energy costs ( $ 312 million ) , increased market related downtime ( $ 187 million ) and other items ( $ 30 million ) .
com- pared with 2003 , higher 2005 earnings in the brazilian papers , u.s .
coated papers and u.s .
market pulp busi- nesses were offset by lower earnings in the u.s .
un- coated papers and the european papers businesses .
the printing papers segment took 995000 tons of downtime in 2005 , including 540000 tons of lack-of-order down- time to align production with customer demand .
this compared with 525000 tons of downtime in 2004 , of which 65000 tons related to lack-of-orders .
printing papers in millions 2005 2004 2003 .
in millions | 2005 | 2004 | 2003
---------------- | ------ | ------ | ------
sales | $ 7860 | $ 7670 | $ 7280
operating profit | $ 552 | $ 581 | $ 464
uncoated papers sales totaled $ 4.8 billion in 2005 compared with $ 5.0 billion in 2004 and 2003 .
sales price realizations in the united states averaged 4.4% ( 4.4 % ) higher in 2005 than in 2004 , and 4.6% ( 4.6 % ) higher than 2003 .
favorable pricing momentum which began in 2004 carried over into the beginning of 2005 .
demand , however , began to weaken across all grades as the year progressed , resulting in lower price realizations in the second and third quarters .
however , prices stabilized as the year ended .
total shipments for the year were 7.2% ( 7.2 % ) lower than in 2004 and 4.2% ( 4.2 % ) lower than in 2003 .
to continue matching our productive capacity with customer demand , the business announced the perma- nent closure of three uncoated freesheet machines and took significant lack-of-order downtime during the period .
demand showed some improvement toward the end of the year , bolstered by the introduction our new line of vision innovation paper products ( vip technologiestm ) , with improved brightness and white- ness .
mill operations were favorable compared to last year , and the rebuild of the no .
1 machine at the east- over , south carolina mill was completed as planned in the fourth quarter .
however , the favorable impacts of improved mill operations and lower overhead costs were more than offset by record high input costs for energy and wood and higher transportation costs compared to 2004 .
the earnings decline in 2005 compared with 2003 was principally due to lower shipments , higher down- time and increased costs for wood , energy and trans- portation , partially offset by lower overhead costs and favorable mill operations .
average sales price realizations for our european operations remained relatively stable during 2005 , but averaged 1% ( 1 % ) lower than in 2004 , and 6% ( 6 % ) below 2003 levels .
sales volumes rose slightly , up 1% ( 1 % ) in 2005 com- pared with 2004 and 5% ( 5 % ) compared to 2003 .
earnings were lower than in 2004 , reflecting higher wood and energy costs and a compression of margins due to un- favorable foreign currency exchange movements .
earn- ings were also adversely affected by downtime related to the rebuild of three paper machines during the year .
coated papers sales in the united states were $ 1.6 bil- lion in 2005 , compared with $ 1.4 billion in 2004 and $ 1.3 billion in 2003 .
the business reported an operating profit in 2005 versus a small operating loss in 2004 .
the earnings improvement was driven by higher average sales prices and improved mill operations .
price realiza- tions in 2005 averaged 13% ( 13 % ) higher than 2004 .
higher input costs for raw materials and energy partially offset the benefits from improved prices and operations .
sales volumes were about 1% ( 1 % ) lower in 2005 versus 2004 .
market pulp sales from our u.s .
and european facilities totaled $ 757 million in 2005 compared with $ 661 mil- lion and $ 571 million in 2004 and 2003 , respectively .
operating profits in 2005 were up 86% ( 86 % ) from 2004 .
an operating loss had been reported in 2003 .
higher aver- age prices and sales volumes , lower overhead costs and improved mill operations in 2005 more than offset in- creases in raw material , energy and chemical costs .
u.s .
softwood and hardwood pulp prices improved through the 2005 first and second quarters , then declined during the third quarter , but recovered somewhat toward year end .
softwood pulp prices ended the year about 2% ( 2 % ) lower than 2004 , but were 15% ( 15 % ) higher than 2003 , while hardwood pulp prices ended the year about 15% ( 15 % ) higher than 2004 and 10% ( 10 % ) higher than 2003 .
u.s .
pulp sales volumes were 12% ( 12 % ) higher than in 2004 and 19% ( 19 % ) higher than in 2003 , reflecting increased global demand .
euro- pean pulp volumes increased 15% ( 15 % ) and 2% ( 2 % ) compared with 2004 and 2003 , respectively , while average sales prices increased 4% ( 4 % ) and 11% ( 11 % ) compared with 2004 and 2003 , respectively .
brazilian paper sales were $ 684 million in 2005 com- pared with $ 592 million in 2004 and $ 540 million in 2003 .
sales volumes for uncoated freesheet paper , coated paper and wood chips were down from 2004 , but average price realizations improved for exported un- coated freesheet and coated groundwood paper grades .
favorable currency translation , as yearly average real exchange rates versus the u.s .
dollar were 17% ( 17 % ) higher in 2005 than in 2004 , positively impacted reported sales in u.s .
dollars .
average sales prices for domestic un- coated paper declined 4% ( 4 % ) in local currency versus 2004 , while domestic coated paper prices were down 3% ( 3 % ) .
operating profits in 2005 were down 9% ( 9 % ) from 2004 , but were up 2% ( 2 % ) from 2003 .
earnings in 2005 were neg- atively impacted by a weaker product and geographic sales mix for both uncoated and coated papers , reflecting increased competition and softer demand , particularly in the printing , commercial and editorial market segments. |
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dd4b8c4ee | note 9 .
commitments and contingencies operating leases we are obligated under noncancelable operating leases for corporate office space , warehouse and distribution facilities , trucks and certain equipment .
the future minimum lease commitments under these leases at december 31 , 2009 are as follows ( in thousands ) : years ending december 31: .
2010 | $ 55178
----------------------------- | --------
2011 | 45275
2012 | 36841
2013 | 30789
2014 | 22094
thereafter | 59263
future minimum lease payments | $ 249440
rental expense for operating leases was approximately $ 57.2 million , $ 49.0 million and $ 26.6 million during the years ended december 31 , 2009 , 2008 and 2007 , respectively .
we guarantee the residual values of the majority of our truck and equipment operating leases .
the residual values decline over the lease terms to a defined percentage of original cost .
in the event the lessor does not realize the residual value when a piece of equipment is sold , we would be responsible for a portion of the shortfall .
similarly , if the lessor realizes more than the residual value when a piece of equipment is sold , we would be paid the amount realized over the residual value .
had we terminated all of our operating leases subject to these guarantees at december 31 , 2009 , the guaranteed residual value would have totaled approximately $ 27.8 million .
litigation and related contingencies in december 2005 and may 2008 , ford global technologies , llc filed complaints with the international trade commission against us and others alleging that certain aftermarket parts imported into the u.s .
infringed on ford design patents .
the parties settled these matters in april 2009 pursuant to a settlement arrangement that expires in september 2011 .
pursuant to the settlement , we ( and our designees ) became the sole distributor in the united states of aftermarket automotive parts that correspond to ford collision parts that are covered by a united states design patent .
we have paid ford an upfront fee for these rights and will pay a royalty for each such part we sell .
the amortization of the upfront fee and the royalty expenses are reflected in cost of goods sold on the accompanying consolidated statements of income .
we also have certain other contingencies resulting from litigation , claims and other commitments and are subject to a variety of environmental and pollution control laws and regulations incident to the ordinary course of business .
we currently expect that the resolution of such contingencies will not materially affect our financial position , results of operations or cash flows .
note 10 .
business combinations on october 1 , 2009 , we acquired greenleaf auto recyclers , llc ( 201cgreenleaf 201d ) from ssi for $ 38.8 million , net of cash acquired .
greenleaf is the entity through which ssi operated its late model automotive parts recycling business .
we recorded a gain on bargain purchase for the greenleaf acquisition totaling $ 4.3 million , which is |
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dd4c4e9fe | february 2018 which had no remaining authority .
at december 31 , 2018 , we had remaining authority to issue up to $ 6.0 billion of debt securities under our shelf registration .
receivables securitization facility 2013 as of december 31 , 2018 , and 2017 , we recorded $ 400 million and $ 500 million , respectively , of borrowings under our receivables facility , as secured debt .
( see further discussion of our receivables securitization facility in note 11 ) .
16 .
variable interest entities we have entered into various lease transactions in which the structure of the leases contain variable interest entities ( vies ) .
these vies were created solely for the purpose of doing lease transactions ( principally involving railroad equipment and facilities ) and have no other activities , assets or liabilities outside of the lease transactions .
within these lease arrangements , we have the right to purchase some or all of the assets at fixed prices .
depending on market conditions , fixed-price purchase options available in the leases could potentially provide benefits to us ; however , these benefits are not expected to be significant .
we maintain and operate the assets based on contractual obligations within the lease arrangements , which set specific guidelines consistent within the railroad industry .
as such , we have no control over activities that could materially impact the fair value of the leased assets .
we do not hold the power to direct the activities of the vies and , therefore , do not control the ongoing activities that have a significant impact on the economic performance of the vies .
additionally , we do not have the obligation to absorb losses of the vies or the right to receive benefits of the vies that could potentially be significant to the vies .
we are not considered to be the primary beneficiary and do not consolidate these vies because our actions and decisions do not have the most significant effect on the vie 2019s performance and our fixed-price purchase options are not considered to be potentially significant to the vies .
the future minimum lease payments associated with the vie leases totaled $ 1.7 billion as of december 31 , 2018 .
17 .
leases we lease certain locomotives , freight cars , and other property .
the consolidated statements of financial position as of december 31 , 2018 , and 2017 included $ 1454 million , net of $ 912 million of accumulated depreciation , and $ 1635 million , net of $ 953 million of accumulated depreciation , respectively , for properties held under capital leases .
a charge to income resulting from the depreciation for assets held under capital leases is included within depreciation expense in our consolidated statements of income .
future minimum lease payments for operating and capital leases with initial or remaining non-cancelable lease terms in excess of one year as of december 31 , 2018 , were as follows : millions operating leases capital leases .
millions | operatingleases | capitalleases
--------------------------------------- | --------------- | -------------
2019 | $ 419 | $ 148
2020 | 378 | 155
2021 | 303 | 159
2022 | 272 | 142
2023 | 234 | 94
later years | 1040 | 200
total minimum lease payments | $ 2646 | $ 898
amount representing interest | n/a | -144 ( 144 )
present value of minimum lease payments | n/a | $ 754
approximately 97% ( 97 % ) of capital lease payments relate to locomotives .
rent expense for operating leases with terms exceeding one month was $ 397 million in 2018 , $ 480 million in 2017 , and $ 535 million in 2016 .
when cash rental payments are not made on a straight-line basis , we recognize variable rental expense on a straight-line basis over the lease term .
contingent rentals and sub-rentals are not significant .
18 .
commitments and contingencies asserted and unasserted claims 2013 various claims and lawsuits are pending against us and certain of our subsidiaries .
we cannot fully determine the effect of all asserted and unasserted claims on our consolidated results of operations , financial condition , or liquidity .
to the extent possible , we have recorded |
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dd4bbfb96 | management 2019s discussion and analysis 110 jpmorgan chase & co .
/ 2008 annual report the allowance for credit losses increased $ 13.7 billion from the prior year to $ 23.8 billion .
the increase included $ 4.1 billion of allowance related to noncredit-impaired loans acquired in the washington mutual transaction and the related accounting conformity provision .
excluding held-for-sale loans , loans carried at fair value , and pur- chased credit-impaired consumer loans , the allowance for loan losses represented 3.62% ( 3.62 % ) of loans at december 31 , 2008 , compared with 1.88% ( 1.88 % ) at december 31 , 2007 .
the consumer allowance for loan losses increased $ 10.5 billion from the prior year as a result of the washington mutual transaction and increased allowance for loan loss in residential real estate and credit card .
the increase included additions to the allowance for loan losses of $ 4.7 billion driven by higher estimated losses for residential mort- gage and home equity loans as the weak labor market and weak overall economic conditions have resulted in increased delinquencies , while continued weak housing prices have driven a significant increase in loss severity .
the allowance for loan losses related to credit card increased $ 4.3 billion from the prior year primarily due to the acquired allowance and subsequent conforming provision for loan loss related to the washington mutual bank acquisition and an increase in provision for loan losses of $ 2.3 billion in 2008 over 2007 , as higher estimated net charge-offs are expected in the port- folio resulting from the current economic conditions .
the wholesale allowance for loan losses increase of $ 3.4 billion from december 31 , 2007 , reflected the effect of a weakening credit envi- ronment and the transfer of $ 4.9 billion of funded and unfunded leveraged lending commitments to retained loans from held-for-sale .
to provide for the risk of loss inherent in the firm 2019s process of extending credit , an allowance for lending-related commitments is held for both wholesale and consumer , which is reported in other lia- bilities .
the wholesale component is computed using a methodology similar to that used for the wholesale loan portfolio , modified for expected maturities and probabilities of drawdown and has an asset- specific component and a formula-based component .
for a further discussion on the allowance for lending-related commitment see note 15 on pages 178 2013180 of this annual report .
the allowance for lending-related commitments for both wholesale and consumer was $ 659 million and $ 850 million at december 31 , 2008 and 2007 , respectively .
the decrease reflects the reduction in lending-related commitments at december 31 , 2008 .
for more information , see page 102 of this annual report .
the following table presents the allowance for loan losses and net charge-offs ( recoveries ) by business segment at december 31 , 2008 and 2007 .
net charge-offs ( recoveries ) december 31 , allowance for loan losses year ended .
december 31 , ( in millions ) | december 31 , 2008 | december 31 , 2007 | 2008 | 2007
------------------------------ | ------------------ | ------------------ | -------- | --------
investment bank | $ 3444 | $ 1329 | $ 105 | $ 36
commercial banking | 2826 | 1695 | 288 | 44
treasury & securities services | 74 | 18 | -2 ( 2 ) | 2014
asset management | 191 | 112 | 11 | -8 ( 8 )
corporate/private equity | 10 | 2014 | 2014 | 2014
total wholesale | 6545 | 3154 | 402 | 72
retail financial services | 8918 | 2668 | 4877 | 1350
card services | 7692 | 3407 | 4556 | 3116
corporate/private equity | 9 | 5 | 2014 | 2014
total consumer 2013 reported | 16619 | 6080 | 9433 | 4466
credit card 2013 securitized | 2014 | 2014 | 3612 | 2380
total consumer 2013 managed | 16619 | 6080 | 13045 | 6846
total | $ 23164 | $ 9234 | $ 13477 | $ 6918 |
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dd4c1eb78 | liquidity and capital resources we currently expect to fund all of our cash requirements which are reasonably foreseeable for 2018 , including scheduled debt repayments , new investments in the business , share repurchases , dividend payments , possible business acquisitions and pension contributions , with cash from operating activities , and as needed , additional short-term and/or long-term borrowings .
we continue to expect our operating cash flow to remain strong .
as of december 31 , 2017 , we had $ 211 million of cash and cash equivalents on hand , of which $ 151 million was held outside of the as of december 31 , 2016 , we had $ 327 million of cash and cash equivalents on hand , of which $ 184 million was held outside of the u.s .
as of december 31 , 2015 , we had $ 26 million of deferred tax liabilities for pre-acquisition foreign earnings associated with the legacy nalco entities and legacy champion entities that we intended to repatriate .
these liabilities were recorded as part of the respective purchase price accounting of each transaction .
the remaining foreign earnings were repatriated in 2016 , reducing the deferred tax liabilities to zero at december 31 , 2016 .
as of december 31 , 2017 we had a $ 2.0 billion multi-year credit facility , which expires in november 2022 .
the credit facility has been established with a diverse syndicate of banks .
there were no borrowings under our credit facility as of december 31 , 2017 or 2016 .
the credit facility supports our $ 2.0 billion u.s .
commercial paper program and $ 2.0 billion european commercial paper program .
combined borrowing under these two commercial paper programs may not exceed $ 2.0 billion .
at year-end , we had no amount outstanding under the european commercial paper program and no amount outstanding under the u.s .
commercial paper program .
additionally , we have uncommitted credit lines of $ 660 million with major international banks and financial institutions to support our general global funding needs .
most of these lines are used to support global cash pooling structures .
approximately $ 643 million of these credit lines were available for use as of year-end 2017 .
bank supported letters of credit , surety bonds and guarantees total $ 198 million and represent commercial business transactions .
we do not have any other significant unconditional purchase obligations or commercial commitments .
as of december 31 , 2017 , our short-term borrowing program was rated a-2 by standard & poor 2019s and p-2 by moody 2019s .
as of december 31 , 2017 , standard & poor 2019s and moody 2019s rated our long-term credit at a- ( stable outlook ) and baa1 ( stable outlook ) , respectively .
a reduction in our credit ratings could limit or preclude our ability to issue commercial paper under our current programs , or could also adversely affect our ability to renew existing , or negotiate new , credit facilities in the future and could increase the cost of these facilities .
should this occur , we could seek additional sources of funding , including issuing additional term notes or bonds .
in addition , we have the ability , at our option , to draw upon our $ 2.0 billion of committed credit facility .
we are in compliance with our debt covenants and other requirements of our credit agreements and indentures .
a schedule of our various obligations as of december 31 , 2017 are summarized in the following table: .
( millions ) | total | payments due by period less than 1 year | payments due by period 2-3 years | payments due by period 4-5 years | payments due by period more than 5 years
------------------------- | ------- | --------------------------------------- | -------------------------------- | -------------------------------- | ----------------------------------------
notes payable | $ 15 | $ 15 | $ - | $ - | $ -
one-time transition tax | 160 | 13 | 26 | 26 | 95
long-term debt | 7303 | 549 | 696 | 1513 | 4545
capital lease obligations | 5 | 1 | 1 | 1 | 2
operating leases | 617 | 131 | 211 | 160 | 115
interest* | 2753 | 242 | 436 | 375 | 1700
total | $ 10853 | $ 951 | $ 1370 | $ 2075 | $ 6457
* interest on variable rate debt was calculated using the interest rate at year-end 2017 .
during the fourth quarter of 2017 , we recorded a one-time transition tax related to enactment of the tax act .
the expense is primarily related to the one-time transition tax , which is payable over eight years .
as discussed further in note 12 , this balance is a provisional amount and is subject to adjustment during the measurement period of up to one year following the enactment of the tax act , as provided by recent sec guidance .
as of december 31 , 2017 , our gross liability for uncertain tax positions was $ 68 million .
we are not able to reasonably estimate the amount by which the liability will increase or decrease over an extended period of time or whether a cash settlement of the liability will be required .
therefore , these amounts have been excluded from the schedule of contractual obligations. |
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dd4c2663e | note 9 2014goodwill and other intangibles , net goodwill the following table outlines the activity in the carrying value of the company 2019s goodwill , which is all assigned to the company 2019s trading and investing segment ( dollars in thousands ) : .
| trading & investing
--------------------------- | -------------------
balance at december 31 2011 | $ 1934232
activity | 2014
balance at december 31 2012 | 1934232
impairment of goodwill | -142423 ( 142423 )
balance at december 31 2013 | $ 1791809
goodwill is evaluated for impairment on an annual basis and when events or changes indicate the carrying value of an asset exceeds its fair value and the loss may not be recoverable .
at december 31 , 2013 and 2012 , the company 2019s trading and investing segment had two reporting units ; market making and retail brokerage .
at the end of june 2013 , the company decided to exit its market making business .
based on this decision in the second quarter of 2013 , the company conducted an interim goodwill impairment test for the market making reporting unit , using the expected sale structure of the market making business .
this structure assumed a shorter period of cash flows related to an order flow arrangement , compared to prior estimates of fair value .
based on the results of the first step of the goodwill impairment test , the company determined that the carrying value of the market making reporting unit , including goodwill , exceeded the fair value for that reporting unit as of june 30 , 2013 .
the company proceeded to the second step of the goodwill impairment test to measure the amount of goodwill impairment .
as a result of the evaluation , it was determined that the entire carrying amount of goodwill allocated to the market making reporting unit was impaired , and the company recognized a $ 142.4 million impairment of goodwill during the second quarter of 2013 .
for the year ended december 31 , 2013 , the company performed its annual goodwill assessment for the retail brokerage reporting unit , electing to qualitatively assess whether it was more likely than not that the fair value was less than the carrying value .
as a result of this assessment , the company determined that the first step of the goodwill impairment test was not necessary , and concluded that goodwill was not impaired at december 31 , 2013 .
at december 31 , 2013 , goodwill is net of accumulated impairment losses of $ 142.4 million related to the trading and investing segment and $ 101.2 million in the balance sheet management segment .
at december 31 , 2012 , goodwill is net of accumulated impairment losses of $ 101.2 million in the balance sheet management segment. |
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dd4b9da64 | maturities of debt the scheduled maturities of the outstanding debt balances , excluding debt fair value adjustments as of december 31 , 2014 , are summarized as follows ( in millions ) : .
year | total
---------- | -------
2015 | $ 2717
2016 | 1684
2017 | 3059
2018 | 2328
2019 | 2819
thereafter | 28422
total | $ 41029
_______ interest rates , interest rate swaps and contingent debt the weighted average interest rate on all of our borrowings was 5.02% ( 5.02 % ) during 2014 and 5.08% ( 5.08 % ) during 2013 .
information on our interest rate swaps is contained in note 13 .
for information about our contingent debt agreements , see note 12 .
subsequent event subsequent to december 31 , 2014 , additional ep trust i preferred securities were converted , primarily consisting of 969117 ep trust i preferred securities converted on january 14 , 2015 , into ( i ) 697473 of our class p common stock ; ( ii ) approximately $ 24 million in cash ; and ( iii ) 1066028 in warrants .
9 .
share-based compensation and employee benefits share-based compensation kinder morgan , inc .
class p shares stock compensation plan for non-employee directors we have a stock compensation plan for non-employee directors , in which our eligible non-employee directors participate .
the plan recognizes that the compensation paid to each eligible non-employee director is fixed by our board , generally annually , and that the compensation is payable in cash .
pursuant to the plan , in lieu of receiving some or all of the cash compensation , each eligible non-employee director may elect to receive shares of class p common stock .
each election will be generally at or around the first board meeting in january of each calendar year and will be effective for the entire calendar year .
an eligible director may make a new election each calendar year .
the total number of shares of class p common stock authorized under the plan is 250000 .
during 2014 , 2013 and 2012 , we made restricted class p common stock grants to our non-employee directors of 6210 , 5710 and 5520 , respectively .
these grants were valued at time of issuance at $ 220000 , $ 210000 and $ 185000 , respectively .
all of the restricted stock grants made to non-employee directors vest during a six-month period .
table of contents |
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dd4bc783c | equity compensation plan information the following table presents the equity securities available for issuance under our equity compensation plans as of december 31 , 2014 .
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 ( 2 ) 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 1955024 $ 36.06 4078093 equity compensation plans not approved by security holders ( 3 ) 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 ( 2 ) | 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 | 1955024 | $ 36.06 | 4078093
equity compensation plans not approved by security holders ( 3 ) | 2014 | 2014 | 2014
total | 1955024 | $ 36.06 | 4078093
( 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 , 644321 were subject to stock options , 539742 were subject to outstanding restricted performance stock rights , and 63022 were stock rights granted under the 2011 plan .
in addition , this number includes 33571 stock rights , 11046 restricted stock rights and 663322 restricted performance stock rights granted under the 2012 plan , assuming target performance achievement .
( 2 ) this is the weighted average exercise price of the 644321 outstanding stock options only .
( 3 ) 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 2015 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 2015 annual meeting of stockholders to be filed within 120 days after the end of the company 2019s fiscal year .
this proof is printed at 96% ( 96 % ) of original size this line represents final trim and will not print |
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dd4bb7fc2 | management 2019s discussion and analysis jpmorgan chase & co./2009 annual report 130 the following histogram illustrates the daily market risk 2013related gains and losses for ib and consumer/cio positions for 2009 .
the chart shows that the firm posted market risk 2013related gains on 227 out of 261 days in this period , with 69 days exceeding $ 160 million .
the inset graph looks at those days on which the firm experienced losses and depicts the amount by which the 95% ( 95 % ) confidence level var exceeded the actual loss on each of those days .
losses were sustained on 34 days during 2009 and exceeded the var measure on one day due to high market volatility in the first quarter of 2009 .
under the 95% ( 95 % ) confidence interval , the firm would expect to incur daily losses greater than that pre- dicted by var estimates about twelve times a year .
the following table provides information about the gross sensitivity of dva to a one-basis-point increase in jpmorgan chase 2019s credit spreads .
this sensitivity represents the impact from a one-basis-point parallel shift in jpmorgan chase 2019s entire credit curve .
as credit curves do not typically move in a parallel fashion , the sensitivity multiplied by the change in spreads at a single maturity point may not be representative of the actual revenue recognized .
debit valuation adjustment sensitivity 1 basis point increase in ( in millions ) jpmorgan chase credit spread .
( in millions ) | 1 basis point increase in jpmorgan chase credit spread
---------------- | ------------------------------------------------------
december 31 2009 | $ 39
december 31 2008 | $ 37
loss advisories and drawdowns loss advisories and drawdowns are tools used to highlight to senior management trading losses above certain levels and initiate discus- sion of remedies .
economic value stress testing while var reflects the risk of loss due to adverse changes in normal markets , stress testing captures the firm 2019s exposure to unlikely but plausible events in abnormal markets .
the firm conducts economic- value stress tests using multiple scenarios that assume credit spreads widen significantly , equity prices decline and significant changes in interest rates across the major currencies .
other scenar- ios focus on the risks predominant in individual business segments and include scenarios that focus on the potential for adverse movements in complex portfolios .
scenarios were updated more frequently in 2009 and , in some cases , redefined to reflect the signifi- cant market volatility which began in late 2008 .
along with var , stress testing is important in measuring and controlling risk .
stress testing enhances the understanding of the firm 2019s risk profile and loss potential , and stress losses are monitored against limits .
stress testing is also utilized in one-off approvals and cross-business risk measurement , as well as an input to economic capital allocation .
stress-test results , trends and explanations based on current market risk positions are reported to the firm 2019s senior management and to the lines of business to help them better measure and manage risks and to understand event risk 2013sensitive positions. |
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dd4bef38c | j.p .
morgan chase & co .
/ 2003 annual report 49 off 2013balance sheet arrangements and contractual cash obligations special-purpose entities special-purpose entities ( 201cspes 201d ) , special-purpose vehicles ( 201cspvs 201d ) , or variable-interest entities ( 201cvies 201d ) , are an important part of the financial markets , providing market liquidity by facili- tating investors 2019 access to specific portfolios of assets and risks .
spes are not operating entities ; typically they are established for a single , discrete purpose , have a limited life and have no employees .
the basic spe structure involves a company selling assets to the spe .
the spe funds the asset purchase by selling securities to investors .
to insulate investors from creditors of other entities , including the seller of the assets , spes are often structured to be bankruptcy-remote .
spes are critical to the functioning of many investor markets , including , for example , the market for mortgage-backed securities , other asset-backed securities and commercial paper .
jpmorgan chase is involved with spes in three broad categories of transactions : loan securi- tizations ( through 201cqualifying 201d spes ) , multi-seller conduits , and client intermediation .
capital is held , as appropriate , against all spe-related transactions and related exposures such as deriva- tive transactions and lending-related commitments .
the firm has no commitments to issue its own stock to support any spe transaction , and its policies require that transactions with spes be conducted at arm 2019s length and reflect market pric- ing .
consistent with this policy , no jpmorgan chase employee is permitted to invest in spes with which the firm is involved where such investment would violate the firm 2019s worldwide rules of conduct .
these rules prohibit employees from self- dealing and prohibit employees from acting on behalf of the firm in transactions with which they or their family have any significant financial interest .
for certain liquidity commitments to spes , the firm could be required to provide funding if the credit rating of jpmorgan chase bank were downgraded below specific levels , primarily p-1 , a-1 and f1 for moody 2019s , standard & poor 2019s and fitch , respectively .
the amount of these liquidity commitments was $ 34.0 billion at december 31 , 2003 .
if jpmorgan chase bank were required to provide funding under these commitments , the firm could be replaced as liquidity provider .
additionally , with respect to the multi-seller conduits and structured commercial loan vehicles for which jpmorgan chase bank has extended liq- uidity commitments , the bank could facilitate the sale or refi- nancing of the assets in the spe in order to provide liquidity .
of these liquidity commitments to spes , $ 27.7 billion is included in the firm 2019s total other unfunded commitments to extend credit included in the table on the following page .
as a result of the consolidation of multi-seller conduits in accordance with fin 46 , $ 6.3 billion of these commitments are excluded from the table , as the underlying assets of the spe have been included on the firm 2019s consolidated balance sheet .
the following table summarizes certain revenue information related to vies with which the firm has significant involvement , and qualifying spes: .
year ended december 31 2003 ( in millions ) | year ended december 31 2003 vies | year ended december 31 2003 ( a ) | year ended december 31 2003 spes | total
------------------------------------------- | -------------------------------- | --------------------------------- | -------------------------------- | ------
revenue | $ 79 | | $ 979 | $ 1058
( a ) includes consolidated and nonconsolidated asset-backed commercial paper conduits for a consistent presentation of 2003 results .
the revenue reported in the table above represents primarily servicing fee income .
the firm also has exposure to certain vie vehicles arising from derivative transactions with vies ; these transactions are recorded at fair value on the firm 2019s consolidated balance sheet with changes in fair value ( i.e. , mark-to-market gains and losses ) recorded in trading revenue .
such mtm gains and losses are not included in the revenue amounts reported in the table above .
for a further discussion of spes and the firm 2019s accounting for spes , see note 1 on pages 86 201387 , note 13 on pages 100 2013103 , and note 14 on pages 103 2013106 of this annual report .
contractual cash obligations in the normal course of business , the firm enters into various con- tractual obligations that may require future cash payments .
contractual obligations at december 31 , 2003 , include long-term debt , trust preferred capital securities , operating leases , contractual purchases and capital expenditures and certain other liabilities .
for a further discussion regarding long-term debt and trust preferred capital securities , see note 18 on pages 109 2013111 of this annual report .
for a further discussion regarding operating leases , see note 27 on page 115 of this annual report .
the accompanying table summarizes jpmorgan chase 2019s off 2013 balance sheet lending-related financial instruments and signifi- cant contractual cash obligations , by remaining maturity , at december 31 , 2003 .
contractual purchases include commit- ments for future cash expenditures , primarily for services and contracts involving certain forward purchases of securities and commodities .
capital expenditures primarily represent future cash payments for real estate 2013related obligations and equip- ment .
contractual purchases and capital expenditures at december 31 , 2003 , reflect the minimum contractual obligation under legally enforceable contracts with contract terms that are both fixed and determinable .
excluded from the following table are a number of obligations to be settled in cash , primarily in under one year .
these obligations are reflected on the firm 2019s consolidated balance sheet and include deposits ; federal funds purchased and securities sold under repurchase agreements ; other borrowed funds ; purchases of debt and equity instruments that settle within standard market timeframes ( e.g .
regular-way ) ; derivative payables that do not require physical delivery of the underlying instrument ; and certain purchases of instruments that resulted in settlement failures. |
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dd4c616da | american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) the 7.50% ( 7.50 % ) notes mature on may 1 , 2012 and interest is payable semi-annually in arrears on may 1 and november 1 each year beginning may 1 , 2004 .
the company may redeem the 7.50% ( 7.50 % ) notes after may 1 , 2008 .
the initial redemption price on the 7.50% ( 7.50 % ) notes is 103.750% ( 103.750 % ) of the principal amount , subject to a ratable decline after may 1 of the following year to 100% ( 100 % ) of the principal amount in 2010 and thereafter .
the company may also redeem up to 35% ( 35 % ) of the 7.50% ( 7.50 % ) notes any time prior to february 1 , 2007 ( at a price equal to 107.50% ( 107.50 % ) of the principal amount of the notes plus accrued and unpaid interest , if any ) , with the net cash proceeds of certain public equity offerings within sixty days after the closing of any such offering .
the 7.50% ( 7.50 % ) notes rank equally with the 5.0% ( 5.0 % ) convertible notes and its 93 20448% ( 20448 % ) notes and are structurally and effectively junior to indebtedness outstanding under the credit facilities , the ati 12.25% ( 12.25 % ) notes and the ati 7.25% ( 7.25 % ) notes .
the indenture for the 7.50% ( 7.50 % ) notes contains certain covenants that restrict the company 2019s ability to incur more debt ; guarantee indebtedness ; issue preferred stock ; pay dividends ; make certain investments ; merge , consolidate or sell assets ; enter into transactions with affiliates ; and enter into sale leaseback transactions .
6.25% ( 6.25 % ) notes redemption 2014in february 2004 , the company completed the redemption of all of its outstanding $ 212.7 million principal amount of 6.25% ( 6.25 % ) notes .
the 6.25% ( 6.25 % ) notes were redeemed pursuant to the terms of the indenture at 102.083% ( 102.083 % ) of the principal amount plus unpaid and accrued interest .
the total aggregate redemption price was $ 221.9 million , including $ 4.8 million in accrued interest .
the company will record a charge of $ 7.1 million in the first quarter of 2004 from the loss on redemption and write-off of deferred financing fees .
other debt repurchases 2014from january 1 , 2004 to march 11 , 2004 , the company repurchased $ 36.2 million principal amount of its 5.0% ( 5.0 % ) notes for approximately $ 36.1 million in cash and made a $ 21.0 million voluntary prepayment of term loan a under its credit facilities .
giving effect to the issuance of the 7.50% ( 7.50 % ) notes and the use of the net proceeds to redeem all of the outstanding 6.25% ( 6.25 % ) notes ; repurchases of $ 36.2 million principal amount of the 5.0% ( 5.0 % ) notes ; and a voluntary prepayment of $ 21.0 million of the term a loan under the credit facilities ; 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 .
2004 | $ 73684
----------------------------------------------------------------------------- | ------------------
2005 | 109435
2006 | 145107
2007 | 688077
2008 | 808043
thereafter | 1875760
total cash obligations | 3700106
accreted value of original issue discount of the ati 12.25% ( 12.25 % ) notes | -339601 ( 339601 )
accreted value of the related warrants | -44247 ( 44247 )
total | $ 3316258
atc mexico holding 2014in january 2004 , mr .
gearon exercised his previously disclosed right to require the company to purchase his 8.7% ( 8.7 % ) interest in atc mexico .
giving effect to the january 2004 exercise of options described below , the company owns an 88% ( 88 % ) interest in atc mexico , which is the subsidiary through which the company conducts its mexico operations .
the purchase price for mr .
gearon 2019s interest in atc mexico is subject to review by an independent financial advisor , and is payable in cash or shares of the company 2019s class a common stock , at the company 2019s option .
the company intends to pay the purchase price in shares of its class a common stock , and closing is expected to occur in the second quarter of 2004 .
in addition , the company expects that payment of a portion of the purchase price will be contingent upon atc mexico meeting certain performance objectives. |
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dd4bea18e | holders of grupo gondi manage the joint venture and we provide technical and commercial resources .
we believe the joint venture is helping us to grow our presence in the attractive mexican market .
we have included the financial results of the joint venture in our corrugated packaging segment since the date of formation .
we are accounting for the investment on the equity method .
on january 19 , 2016 , we completed the packaging acquisition .
the entities acquired provide value-added folding carton and litho-laminated display packaging solutions .
we believe the transaction has provided us with attractive and complementary customers , markets and facilities .
we have included the financial results of the acquired entities in our consumer packaging segment since the date of the acquisition .
on october 1 , 2015 , we completed the sp fiber acquisition .
the transaction included the acquisition of mills located in dublin , ga and newberg , or , which produce lightweight recycled containerboard and kraft and bag paper .
the newberg mill also produced newsprint .
as part of the transaction , we also acquired sp fiber's 48% ( 48 % ) interest in green power solutions of georgia , llc ( fffdgps fffd ) , which we consolidate .
gps is a joint venture providing steam to the dublin mill and electricity to georgia power .
subsequent to the transaction , we announced the permanent closure of the newberg mill due to the decline in market conditions of the newsprint business and our need to balance supply and demand in our containerboard system .
we have included the financial results of the acquired entities in our corrugated packaging segment since the date of the acquisition .
see fffdnote 2 .
mergers , acquisitions and investment fffdtt of the notes to consolidated financial statements for additional information .
see also item 1a .
fffdrisk factors fffd fffdwe may be unsuccessful in making and integrating mergers , acquisitions and investments and completing divestitures fffd .
business .
( in millions ) | year ended september 30 , 2018 | year ended september 30 , 2017 | year ended september 30 , 2016
--------------- | ------------------------------ | ------------------------------ | ------------------------------
net sales | $ 16285.1 | $ 14859.7 | $ 14171.8
segment income | $ 1685.0 | $ 1193.5 | $ 1226.2
in fiscal 2018 , we continued to pursue our strategy of offering differentiated paper and packaging solutions that help our customers win .
we successfully executed this strategy in fiscal 2018 in a rapidly changing cost and price environment .
net sales of $ 16285.1 million for fiscal 2018 increased $ 1425.4 million , or 9.6% ( 9.6 % ) , compared to fiscal 2017 .
the increase was primarily a result of an increase in corrugated packaging segment sales , driven by higher selling price/mix and the contributions from acquisitions , and increased consumer packaging segment sales , primarily due to the contribution from acquisitions ( primarily the mps acquisition ) .
these increases were partially offset by the absence of net sales from hh&b in fiscal 2018 due to the sale of hh&b in april 2017 and lower land and development segment sales compared to the prior year period due to the timing of real estate sales as we monetize the portfolio and lower merchandising display sales in the consumer packaging segment .
segment income increased $ 491.5 million in fiscal 2018 compared to fiscal 2017 , primarily due to increased corrugated packaging segment income .
with respect to segment income , we experienced higher levels of cost inflation during fiscal 2018 as compared to fiscal 2017 , which was partially offset by recycled fiber deflation .
the primary inflationary items were freight costs , chemical costs , virgin fiber costs and wage and other costs .
productivity improvements in fiscal 2018 more than offset the net impact of cost inflation .
while it is difficult to predict specific inflationary items , we expect higher cost inflation to continue through fiscal 2019 .
our corrugated packaging segment increased its net sales by $ 695.1 million in fiscal 2018 to $ 9103.4 million from $ 8408.3 million in fiscal 2017 .
the increase in net sales was primarily due to higher corrugated selling price/mix and higher corrugated volumes ( including acquisitions ) , which were partially offset by lower net sales from recycling operations due to lower recycled fiber costs , lower sales related to the deconsolidation of a foreign joint venture in fiscal 2017 and the impact of foreign currency .
north american box shipments increased 4.1% ( 4.1 % ) on a per day basis in fiscal 2018 compared to fiscal 2017 .
segment income attributable to the corrugated packaging segment in fiscal 2018 increased $ 454.0 million to $ 1207.9 million compared to $ 753.9 million in fiscal 2017 .
the increase was primarily due to higher selling price/mix , lower recycled fiber costs and productivity improvements which were partially offset by higher levels of cost inflation and other items , including increased depreciation and amortization .
our consumer packaging segment increased its net sales by $ 838.9 million in fiscal 2018 to $ 7291.4 million from $ 6452.5 million in fiscal 2017 .
the increase in net sales was primarily due to an increase in net sales from acquisitions ( primarily the mps acquisition ) and higher selling price/mix partially offset by the absence of net sales from hh&b in fiscal 2018 due to the hh&b sale in april 2017 and lower volumes .
segment income attributable to |
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dd4c58e5e | notes to consolidated financial statements 2014 ( continued ) ( amounts in millions , except per share amounts ) withholding taxes on temporary differences resulting from earnings for certain foreign subsidiaries which are permanently reinvested outside the u.s .
it is not practicable to determine the amount of unrecognized deferred tax liability associated with these temporary differences .
pursuant to the provisions of fasb interpretation no .
48 , accounting for uncertainty in income taxes ( 201cfin 48 201d ) , the following table summarizes the activity related to our unrecognized tax benefits: .
| 2008 | 2007
-------------------------------------------------------------------- | -------------- | ----------------
balance at beginning of period | $ 134.8 | $ 266.9
increases as a result of tax positions taken during a prior year | 22.8 | 7.9
decreases as a result of tax positions taken during a prior year | -21.3 ( 21.3 ) | -156.3 ( 156.3 )
settlements with taxing authorities | -4.5 ( 4.5 ) | -1.0 ( 1.0 )
lapse of statutes of limitation | -1.7 ( 1.7 ) | -2.4 ( 2.4 )
increases as a result of tax positions taken during the current year | 18.7 | 19.7
balance at end of period | $ 148.8 | $ 134.8
included in the total amount of unrecognized tax benefits of $ 148.8 as of december 31 , 2008 , is $ 131.8 of tax benefits that , if recognized , would impact the effective tax rate and $ 17.1 of tax benefits that , if recognized , would result in adjustments to other tax accounts , primarily deferred taxes .
the total amount of accrued interest and penalties as of december 31 , 2008 and 2007 is $ 33.5 and $ 33.6 , of which $ 0.7 and $ 9.2 is included in the 2008 and 2007 consolidated statement of operations , respectively .
in accordance with our accounting policy , interest and penalties accrued on unrecognized tax benefits are classified as income taxes in the consolidated statements of operations .
we have not elected to change this classification with the adoption of fin 48 .
with respect to all tax years open to examination by u.s .
federal and various state , local , and non-u.s .
tax authorities , we currently anticipate that the total unrecognized tax benefits will decrease by an amount between $ 45.0 and $ 55.0 in the next twelve months , a portion of which will affect the effective tax rate , primarily as a result of the settlement of tax examinations and the lapsing of statutes of limitation .
this net decrease is related to various items of income and expense , including transfer pricing adjustments and restatement adjustments .
for this purpose , we expect to complete our discussions with the irs appeals division regarding the years 1997 through 2004 within the next twelve months .
we also expect to effectively settle , within the next twelve months , various uncertainties for 2005 and 2006 .
in december 2007 , the irs commenced its examination for the 2005 and 2006 tax years .
in addition , we have various tax years under examination by tax authorities in various countries , such as the u.k. , and in various states , such as new york , in which we have significant business operations .
it is not yet known whether these examinations will , in the aggregate , result in our paying additional taxes .
we have established tax reserves that we believe to be adequate in relation to the potential for additional assessments in each of the jurisdictions in which we are subject to taxation .
we regularly assess the likelihood of additional tax assessments in those jurisdictions and adjust our reserves as additional information or events require .
on may 1 , 2007 , the irs completed its examination of our 2003 and 2004 income tax returns and proposed a number of adjustments to our taxable income .
we have appealed a number of these items .
in addition , during the second quarter of 2007 , there were net reversals of tax reserves , primarily related to previously unrecognized tax benefits related to various items of income and expense , including approximately $ 80.0 for certain worthless securities deductions associated with investments in consolidated subsidiaries , which was a result of the completion of the tax examination. |
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dd4bb1e4c | aeronautics 2019 operating profit for 2012 increased $ 69 million , or 4% ( 4 % ) , compared to 2011 .
the increase was attributable to higher operating profit of approximately $ 105 million from c-130 programs due to an increase in risk retirements ; about $ 50 million from f-16 programs due to higher aircraft deliveries partially offset by a decline in risk retirements ; approximately $ 50 million from f-35 production contracts due to increased production volume and risk retirements ; and about $ 50 million from the completion of purchased intangible asset amortization on certain f-16 contracts .
partially offsetting the increases was lower operating profit of about $ 90 million from the f-35 development contract primarily due to the inception-to-date effect of reducing the profit booking rate in the second quarter of 2012 ; approximately $ 50 million from decreased production volume and risk retirements on the f-22 program partially offset by a resolution of a contractual matter in the second quarter of 2012 ; and approximately $ 45 million primarily due to a decrease in risk retirements on other sustainment activities partially offset by various other aeronautics programs due to increased risk retirements and volume .
operating profit for c-5 programs was comparable to 2011 .
adjustments not related to volume , including net profit booking rate adjustments and other matters described above , were approximately $ 30 million lower for 2012 compared to 2011 .
backlog backlog decreased in 2013 compared to 2012 mainly due to lower orders on f-16 , c-5 , and c-130 programs , partially offset by higher orders on the f-35 program .
backlog decreased in 2012 compared to 2011 mainly due to lower orders on f-35 and c-130 programs , partially offset by higher orders on f-16 programs .
trends we expect aeronautics 2019 net sales to increase in 2014 in the mid-single digit percentage range as compared to 2013 primarily due to an increase in net sales from f-35 production contracts .
operating profit is expected to increase slightly from 2013 , resulting in a slight decrease in operating margins between the years due to program mix .
information systems & global solutions our is&gs business segment provides advanced technology systems and expertise , integrated information technology solutions , and management services across a broad spectrum of applications for civil , defense , intelligence , and other government customers .
is&gs has a portfolio of many smaller contracts as compared to our other business segments .
is&gs has been impacted by the continued downturn in federal information technology budgets .
is&gs 2019 operating results included the following ( in millions ) : .
| 2013 | 2012 | 2011
------------------- | -------------- | -------------- | --------------
net sales | $ 8367 | $ 8846 | $ 9381
operating profit | 759 | 808 | 874
operating margins | 9.1% ( 9.1 % ) | 9.1% ( 9.1 % ) | 9.3% ( 9.3 % )
backlog at year-end | 8300 | 8700 | 9300
2013 compared to 2012 is&gs 2019 net sales decreased $ 479 million , or 5% ( 5 % ) , for 2013 compared to 2012 .
the decrease was attributable to lower net sales of about $ 495 million due to decreased volume on various programs ( command and control programs for classified customers , ngi , and eram programs ) ; and approximately $ 320 million due to the completion of certain programs ( such as total information processing support services , the transportation worker identification credential ( twic ) , and odin ) .
the decrease was partially offset by higher net sales of about $ 340 million due to the start-up of certain programs ( such as the disa gsm-o and the national science foundation antarctic support ) .
is&gs 2019 operating profit decreased $ 49 million , or 6% ( 6 % ) , for 2013 compared to 2012 .
the decrease was primarily attributable to lower operating profit of about $ 55 million due to certain programs nearing the end of their lifecycles , partially offset by higher operating profit of approximately $ 15 million due to the start-up of certain programs .
adjustments not related to volume , including net profit booking rate adjustments and other matters , were comparable for 2013 compared to 2012 compared to 2011 is&gs 2019 net sales for 2012 decreased $ 535 million , or 6% ( 6 % ) , compared to 2011 .
the decrease was attributable to lower net sales of approximately $ 485 million due to the substantial completion of various programs during 2011 ( primarily jtrs ; odin ; and u.k .
census ) ; and about $ 255 million due to lower volume on numerous other programs ( primarily hanford; |
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dd4b89762 | management 2019s discussion and analysis net interest income 2013 versus 2012 .
net interest income on the consolidated statements of earnings was $ 3.39 billion for 2013 , 13% ( 13 % ) lower than 2012 .
the decrease compared with 2012 was primarily due to lower average yields on financial instruments owned , at fair value , partially offset by lower interest expense on financial instruments sold , but not yet purchased , at fair value and collateralized financings .
2012 versus 2011 .
net interest income on the consolidated statements of earnings was $ 3.88 billion for 2012 , 25% ( 25 % ) lower than 2011 .
the decrease compared with 2011 was primarily due to lower average yields on financial instruments owned , at fair value and collateralized agreements .
see 201cstatistical disclosures 2014 distribution of assets , liabilities and shareholders 2019 equity 201d for further information about our sources of net interest income .
operating expenses our operating expenses are primarily influenced by compensation , headcount and levels of business activity .
compensation and benefits includes salaries , discretionary compensation , amortization of equity awards and other items such as benefits .
discretionary compensation is significantly impacted by , among other factors , the level of net revenues , overall financial performance , prevailing labor markets , business mix , the structure of our share-based compensation programs and the external environment .
the table below presents our operating expenses and total staff ( which includes employees , consultants and temporary staff ) . .
$ in millions | year ended december 2013 | year ended december 2012 | year ended december 2011
------------------------------------------------ | ------------------------ | ------------------------ | ------------------------
compensation and benefits | $ 12613 | $ 12944 | $ 12223
brokerage clearing exchange anddistribution fees | 2341 | 2208 | 2463
market development | 541 | 509 | 640
communications and technology | 776 | 782 | 828
depreciation and amortization | 1322 | 1738 | 1865
occupancy | 839 | 875 | 1030
professional fees | 930 | 867 | 992
insurance reserves1 | 176 | 598 | 529
other expenses | 2931 | 2435 | 2072
total non-compensation expenses | 9856 | 10012 | 10419
total operating expenses | $ 22469 | $ 22956 | $ 22642
total staff at period-end | 32900 | 32400 | 33300
1 .
related revenues are included in 201cmarket making 201d in the consolidated statements of earnings .
goldman sachs 2013 annual report 45 |
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dd498b1f4 | stock performance graph * $ 100 invested on 11/17/11 in our stock or 10/31/11 in the relevant index , including reinvestment of dividends .
fiscal year ending december 31 , 2014 .
( 1 ) delphi automotive plc ( 2 ) s&p 500 2013 standard & poor 2019s 500 total return index ( 3 ) automotive supplier peer group 2013 russell 3000 auto parts index , including american axle & manufacturing , borgwarner inc. , cooper tire & rubber company , dana holding corp. , delphi automotive plc , dorman products inc. , federal-mogul corp. , ford motor co. , fuel systems solutions inc. , general motors co. , gentex corp. , gentherm inc. , genuine parts co. , johnson controls inc. , lkq corp. , lear corp. , meritor inc. , remy international inc. , standard motor products inc. , stoneridge inc. , superior industries international , trw automotive holdings corp. , tenneco inc. , tesla motors inc. , the goodyear tire & rubber co. , tower international inc. , visteon corp. , and wabco holdings inc .
company index november 17 , december 31 , december 31 , december 31 , december 31 .
company index | november 17 2011 | december 31 2011 | december 31 2012 | december 31 2013 | december 31 2014
------------------------------------ | ---------------- | ---------------- | ---------------- | ---------------- | ----------------
delphi automotive plc ( 1 ) | $ 100.00 | $ 100.98 | $ 179.33 | $ 285.81 | $ 350.82
s&p 500 ( 2 ) | 100.00 | 100.80 | 116.93 | 154.80 | 175.99
automotive supplier peer group ( 3 ) | 100.00 | 89.27 | 110.41 | 166.46 | 178.05
dividends on february 26 , 2013 , the board of directors approved the initiation of dividend payments on the company's ordinary shares .
the board of directors declared a regular quarterly cash dividend of $ 0.17 per ordinary share that was paid in each quarter of 2013 .
in january 2014 , the board of directors increased the quarterly dividend rate to $ 0.25 per ordinary share , which was paid in each quarter of 2014 .
in addition , in january 2015 , the board of directors declared a regular quarterly cash dividend of $ 0.25 per ordinary share , payable on february 27 , 2015 to shareholders of record at the close of business on february 18 , 2015. |
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dd4b87c00 | the aes corporation notes to consolidated financial statements 2014 ( continued ) december 31 , 2011 , 2010 , and 2009 ( 1 ) weighted average interest rate at december 31 , 2011 .
( 2 ) the company has interest rate swaps and interest rate option agreements in an aggregate notional principal amount of approximately $ 3.6 billion on non-recourse debt outstanding at december 31 , 2011 .
the swap agreements economically change the variable interest rates on the portion of the debt covered by the notional amounts to fixed rates ranging from approximately 1.44% ( 1.44 % ) to 6.98% ( 6.98 % ) .
the option agreements fix interest rates within a range from 1.00% ( 1.00 % ) to 7.00% ( 7.00 % ) .
the agreements expire at various dates from 2016 through 2028 .
( 3 ) multilateral loans include loans funded and guaranteed by bilaterals , multilaterals , development banks and other similar institutions .
( 4 ) non-recourse debt of $ 704 million and $ 945 million as of december 31 , 2011 and 2010 , respectively , was excluded from non-recourse debt and included in current and long-term liabilities of held for sale and discontinued businesses in the accompanying consolidated balance sheets .
non-recourse debt as of december 31 , 2011 is scheduled to reach maturity as set forth in the table below : december 31 , annual maturities ( in millions ) .
december 31, | annual maturities ( in millions )
----------------------- | ---------------------------------
2012 | $ 2152
2013 | 1389
2014 | 1697
2015 | 851
2016 | 2301
thereafter | 7698
total non-recourse debt | $ 16088
as of december 31 , 2011 , aes subsidiaries with facilities under construction had a total of approximately $ 1.4 billion of committed but unused credit facilities available to fund construction and other related costs .
excluding these facilities under construction , aes subsidiaries had approximately $ 1.2 billion in a number of available but unused committed revolving credit lines to support their working capital , debt service reserves and other business needs .
these credit lines can be used in one or more of the following ways : solely for borrowings ; solely for letters of credit ; or a combination of these uses .
the weighted average interest rate on borrowings from these facilities was 14.75% ( 14.75 % ) at december 31 , 2011 .
on october 3 , 2011 , dolphin subsidiary ii , inc .
( 201cdolphin ii 201d ) , a newly formed , wholly-owned special purpose indirect subsidiary of aes , entered into an indenture ( the 201cindenture 201d ) with wells fargo bank , n.a .
( the 201ctrustee 201d ) as part of its issuance of $ 450 million aggregate principal amount of 6.50% ( 6.50 % ) senior notes due 2016 ( the 201c2016 notes 201d ) and $ 800 million aggregate principal amount of 7.25% ( 7.25 % ) senior notes due 2021 ( the 201c7.25% ( 201c7.25 % ) 2021 notes 201d , together with the 2016 notes , the 201cnotes 201d ) to finance the acquisition ( the 201cacquisition 201d ) of dpl .
upon closing of the acquisition on november 28 , 2011 , dolphin ii was merged into dpl with dpl being the surviving entity and obligor .
the 2016 notes and the 7.25% ( 7.25 % ) 2021 notes are included under 201cnotes and bonds 201d in the non-recourse detail table above .
see note 23 2014acquisitions and dispositions for further information .
interest on the 2016 notes and the 7.25% ( 7.25 % ) 2021 notes accrues at a rate of 6.50% ( 6.50 % ) and 7.25% ( 7.25 % ) per year , respectively , and is payable on april 15 and october 15 of each year , beginning april 15 , 2012 .
prior to september 15 , 2016 with respect to the 2016 notes and july 15 , 2021 with respect to the 7.25% ( 7.25 % ) 2021 notes , dpl may redeem some or all of the 2016 notes or 7.25% ( 7.25 % ) 2021 notes at par , plus a 201cmake-whole 201d amount set forth in |
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dd498d95e | table of contents notes to consolidated financial statements of american airlines group inc .
information generated by market transactions involving comparable assets , as well as pricing guides and other sources .
the current market for the aircraft , the maintenance condition of the aircraft and the expected proceeds from the sale of the assets , among other factors , were considered .
the market approach was utilized to value certain intangible assets such as airport take off and landing slots when sufficient market information was available .
the income approach was primarily used to value intangible assets , including customer relationships , marketing agreements , certain international route authorities , and the us airways tradename .
the income approach indicates value for a subject asset based on the present value of cash flows projected to be generated by the asset .
projected cash flows are discounted at a required market rate of return that reflects the relative risk of achieving the cash flows and the time value of money .
the cost approach , which estimates value by determining the current cost of replacing an asset with another of equivalent economic utility , was used , as appropriate , for certain assets for which the market and income approaches could not be applied due to the nature of the asset .
the cost to replace a given asset reflects the estimated reproduction or replacement cost for the asset , less an allowance for loss in value due to depreciation .
the fair value of us airways 2019 dividend miles loyalty program liability was determined based on the weighted average equivalent ticket value of outstanding miles which were expected to be redeemed for future travel at december 9 , 2013 .
the weighted average equivalent ticket value contemplates differing classes of service , domestic and international itineraries and the carrier providing the award travel .
pro-forma impact of the merger the company 2019s unaudited pro-forma results presented below include the effects of the merger as if it had been consummated as of january 1 , 2012 .
the pro-forma results include the depreciation and amortization associated with the acquired tangible and intangible assets , lease and debt fair value adjustments , the elimination of any deferred gains or losses , adjustments relating to reflecting the fair value of the loyalty program liability and the impact of income changes on profit sharing expense , among others .
in addition , the pro-forma results below reflect the impact of higher wage rates related to memorandums of understanding with us airways 2019 pilots that became effective upon closing of the merger , as well as the elimination of the company 2019s reorganization items , net and merger transition costs .
however , the pro-forma results do not include any anticipated synergies or other expected benefits of the merger .
accordingly , the unaudited pro-forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisition been consummated as of january 1 , 2012 .
december 31 , ( in millions ) .
| december 31 2013 ( in millions )
---------- | --------------------------------
revenue | $ 40678
net income | 2526
5 .
basis of presentation and summary of significant accounting policies ( a ) basis of presentation the consolidated financial statements for the full years of 2015 and 2014 and the period from december 9 , 2013 to december 31 , 2013 include the accounts of the company and its wholly-owned subsidiaries .
for the periods prior to december 9 , 2013 , the consolidated financial statements do not include the accounts of us airways group .
all significant intercompany transactions have been eliminated .
the preparation of financial statements in accordance with accounting principles generally accepted in the united states ( gaap ) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities , revenues and expenses , and the disclosure of contingent assets and liabilities at the date of the financial statements .
actual results could differ from those estimates .
the most significant areas |
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dd4c20130 | securities have historically returned approximately 10% ( 10 % ) annually over long periods of time , while u.s .
debt securities have returned approximately 6% ( 6 % ) annually over long periods .
application of these historical returns to the plan 2019s allocation ranges for equities and bonds produces a result between 7.25% ( 7.25 % ) and 8.75% ( 8.75 % ) and is one point of reference , among many other factors , that is taken into consideration .
we also examine the plan 2019s actual historical returns over various periods and consider the current economic environment .
recent experience is considered in our evaluation with appropriate consideration that , especially for short time periods , recent returns are not reliable indicators of future returns .
while annual returns can vary significantly ( actual returns for 2012 , 2011 , and 2010 were +15.29% ( +15.29 % ) , +.11% ( +.11 % ) , and +14.87% ( +14.87 % ) , respectively ) , the selected assumption represents our estimated long-term average prospective returns .
acknowledging the potentially wide range for this assumption , we also annually examine the assumption used by other companies with similar pension investment strategies , so that we can ascertain whether our determinations markedly differ from others .
in all cases , however , this data simply informs our process , which places the greatest emphasis on our qualitative judgment of future investment returns , given the conditions existing at each annual measurement date .
taking into consideration all of these factors , the expected long-term return on plan assets for determining net periodic pension cost for 2012 was 7.75% ( 7.75 % ) , the same as it was for 2011 .
after considering the views of both internal and external capital market advisors , particularly with regard to the effects of the recent economic environment on long-term prospective fixed income returns , we are reducing our expected long-term return on assets to 7.50% ( 7.50 % ) for determining pension cost for under current accounting rules , the difference between expected long-term returns and actual returns is accumulated and amortized to pension expense over future periods .
each one percentage point difference in actual return compared with our expected return causes expense in subsequent years to increase or decrease by up to $ 8 million as the impact is amortized into results of operations .
we currently estimate a pretax pension expense of $ 73 million in 2013 compared with pretax expense of $ 89 million in 2012 .
this year-over-year expected decrease reflects the impact of favorable returns on plan assets experienced in 2012 as well as the effects of the lower discount rate required to be used in the table below reflects the estimated effects on pension expense of certain changes in annual assumptions , using 2013 estimated expense as a baseline .
table 27 : pension expense - sensitivity analysis change in assumption ( a ) estimated increase to 2013 pension expense ( in millions ) .
change in assumption ( a ) | estimatedincrease to 2013pensionexpense ( in millions )
------------------------------------------------------------ | -------------------------------------------------------
.5% ( .5 % ) decrease in discount rate | $ 21
.5% ( .5 % ) decrease in expected long-term return on assets | $ 19
.5% ( .5 % ) increase in compensation rate | $ 2
( a ) the impact is the effect of changing the specified assumption while holding all other assumptions constant .
our pension plan contribution requirements are not particularly sensitive to actuarial assumptions .
investment performance has the most impact on contribution requirements and will drive the amount of required contributions in future years .
also , current law , including the provisions of the pension protection act of 2006 , sets limits as to both minimum and maximum contributions to the plan .
we do not expect to be required by law to make any contributions to the plan during 2013 .
we maintain other defined benefit plans that have a less significant effect on financial results , including various nonqualified supplemental retirement plans for certain employees , which are described more fully in note 15 employee benefit plans in the notes to consolidated financial statements in item 8 of this report .
the pnc financial services group , inc .
2013 form 10-k 77 |
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dd4c51212 | management 2019s discussion and analysis 120 jpmorgan chase & co./2014 annual report wholesale credit portfolio the firm 2019s wholesale businesses are exposed to credit risk through underwriting , lending and trading activities with and for clients and counterparties , as well as through various operating services such as cash management and clearing activities .
a portion of the loans originated or acquired by the firm 2019s wholesale businesses is generally retained on the balance sheet .
the firm distributes a significant percentage of the loans it originates into the market as part of its syndicated loan business and to manage portfolio concentrations and credit risk .
the wholesale credit environment remained favorable throughout 2014 driving an increase in client activity .
growth in loans retained was driven primarily by activity in commercial banking , while growth in lending-related commitments reflected increased activity in both the corporate & investment bank and commercial banking .
discipline in underwriting across all areas of lending continues to remain a key point of focus , consistent with evolving market conditions and the firm 2019s risk management activities .
the wholesale portfolio is actively managed , in part by conducting ongoing , in-depth reviews of client credit quality and transaction structure , inclusive of collateral where applicable ; and of industry , product and client concentrations .
during the year , wholesale criticized assets decreased from 2013 , including a reduction in nonaccrual loans by 40% ( 40 % ) .
wholesale credit portfolio december 31 , credit exposure nonperforming ( d ) .
december 31 , ( in millions ) | december 31 , 2014 | december 31 , 2013 | 2014 | 2013
-------------------------------------------------------------------- | ------------------ | ------------------ | ------ | ----------
loans retained | $ 324502 | $ 308263 | $ 599 | $ 821
loans held-for-sale | 3801 | 11290 | 4 | 26
loans at fair value | 2611 | 2011 | 21 | 197
loans 2013 reported | 330914 | 321564 | 624 | 1044
derivative receivables | 78975 | 65759 | 275 | 415
receivables from customers and other ( a ) | 28972 | 26744 | 2014 | 2014
total wholesale credit-related assets | 438861 | 414067 | 899 | 1459
lending-related commitments ( b ) | 472056 | 446232 | 103 | 206
total wholesale credit exposure | $ 910917 | $ 860299 | $ 1002 | $ 1665
credit portfolio management derivatives notional net ( c ) | $ -26703 ( 26703 ) | $ -27996 ( 27996 ) | $ 2014 | $ -5 ( 5 )
liquid securities and other cash collateral held against derivatives | -19604 ( 19604 ) | -14435 ( 14435 ) | na | na
receivables from customers and other ( a ) 28972 26744 2014 2014 total wholesale credit- related assets 438861 414067 899 1459 lending-related commitments ( b ) 472056 446232 103 206 total wholesale credit exposure $ 910917 $ 860299 $ 1002 $ 1665 credit portfolio management derivatives notional , net ( c ) $ ( 26703 ) $ ( 27996 ) $ 2014 $ ( 5 ) liquid securities and other cash collateral held against derivatives ( 19604 ) ( 14435 ) na na ( a ) receivables from customers and other include $ 28.8 billion and $ 26.5 billion of margin loans at december 31 , 2014 and 2013 , respectively , to prime and retail brokerage customers ; these are classified in accrued interest and accounts receivable on the consolidated balance sheets .
( b ) includes unused advised lines of credit of $ 105.2 billion and $ 102.0 billion as of december 31 , 2014 and 2013 , respectively .
an advised line of credit is a revolving credit line which specifies the maximum amount the firm may make available to an obligor , on a nonbinding basis .
the borrower receives written or oral advice of this facility .
the firm may cancel this facility at any time by providing the borrower notice or , in some cases , without notice as permitted by law .
( c ) 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 .
for additional information , see credit derivatives on page 127 , and note 6 .
( d ) excludes assets acquired in loan satisfactions. |
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dd4bf3fd6 | new accounting pronouncements information regarding new accounting pronouncements is included in note 1 to the consolidated financial statements .
financial condition and liquidity the company generates significant ongoing cash flow .
increases in long-term debt have been used , in part , to fund share repurchase activities and acquisitions .
on november 15 , 2007 , 3m ( safety , security and protection services business ) announced that it had entered into a definitive agreement for 3m 2019s acquisition of 100 percent of the outstanding shares of aearo holding corp .
e83a a global leader in the personal protection industry that manufactures and markets personal protection and energy absorbing products e83a for approximately $ 1.2 billion .
the sale is expected to close towards the end of the first quarter of 2008 .
at december 31 .
( millions ) | 2007 | 2006 | 2005
------------------------------------------------------ | ------ | ------ | ------
total debt | $ 4920 | $ 3553 | $ 2381
less : cash cash equivalents and marketable securities | 2955 | 2084 | 1072
net debt | $ 1965 | $ 1469 | $ 1309
cash , cash equivalents and marketable securities at december 31 , 2007 totaled approximately $ 3 billion , helped by strong cash flow generation and by the timing of debt issuances .
at december 31 , 2006 , cash balances were higher due to the significant pharmaceuticals sales proceeds received in december 2006 .
3m believes its ongoing cash flows provide ample cash to fund expected investments and capital expenditures .
the company has sufficient access to capital markets to meet currently anticipated growth and acquisition investment funding needs .
the company does not utilize derivative instruments linked to the company 2019s stock .
however , the company does have contingently convertible debt that , if conditions for conversion are met , is convertible into shares of 3m common stock ( refer to note 10 in this document ) .
the company 2019s financial condition and liquidity are strong .
various assets and liabilities , including cash and short-term debt , can fluctuate significantly from month to month depending on short-term liquidity needs .
working capital ( defined as current assets minus current liabilities ) totaled $ 4.476 billion at december 31 , 2007 , compared with $ 1.623 billion at december 31 , 2006 .
working capital was higher primarily due to increases in cash and cash equivalents , short-term marketable securities , receivables and inventories and decreases in short-term debt and accrued income taxes .
the company 2019s liquidity remains strong , with cash , cash equivalents and marketable securities at december 31 , 2007 totaling approximately $ 3 billion .
primary short-term liquidity needs are provided through u.s .
commercial paper and euro commercial paper issuances .
as of december 31 , 2007 , outstanding total commercial paper issued totaled $ 349 million and averaged $ 1.249 billion during 2007 .
the company believes it unlikely that its access to the commercial paper market will be restricted .
in june 2007 , the company established a medium-term notes program through which up to $ 3 billion of medium-term notes may be offered , with remaining shelf borrowing capacity of $ 2.5 billion as of december 31 , 2007 .
on april 30 , 2007 , the company replaced its $ 565-million credit facility with a new $ 1.5-billion five-year credit facility , which has provisions for the company to request an increase of the facility up to $ 2 billion ( at the lenders 2019 discretion ) , and providing for up to $ 150 million in letters of credit .
as of december 31 , 2007 , there are $ 110 million in letters of credit drawn against the facility .
at december 31 , 2007 , available short-term committed lines of credit internationally totaled approximately $ 67 million , of which $ 13 million was utilized .
debt covenants do not restrict the payment of dividends .
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 .
the company intends to use the proceeds from future securities sales off this shelf for general corporate purposes .
at december 31 , 2007 , certain debt agreements ( $ 350 million of dealer remarketable securities and $ 87 million of esop debt ) had ratings triggers ( bbb-/baa3 or lower ) that would require repayment of debt .
the company has an aa credit rating , with a stable outlook , from standard & poor 2019s and an aa1 credit rating , with a negative outlook , from moody 2019s investors service .
in addition , under the $ 1.5-billion five-year credit facility agreement , 3m is required to maintain its ebitda to interest ratio as of the end of each fiscal quarter at not less than 3.0 to 1 .
this is calculated ( as defined in the agreement ) as the ratio of consolidated total ebitda for the four consecutive quarters then ended to total interest expense on all funded debt for the same period .
at december 31 , 2007 , this ratio was approximately 35 to 1. |
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dd4c4bdc6 | in july , 2002 , marathon received a notice of enforcement from the state of texas for alleged excess air emissions from its yates gas plant and production operations on its kloh lease .
a settlement of this matter was finalized in 2004 , with marathon and its co-owners paying a civil penalty of $ 74000 and the donation of land as a supplemental environmental project in lieu of a further penalty of $ 74000 .
marathon is owner of a 38% ( 38 % ) interest in the facilities .
in may , 2003 , marathon received a consolidated compliance order & notice or potential penalty from the state of louisiana for alleged various air permit regulatory violations .
this matter was settled for a civil penalty of $ 148628 and awaits formal closure with the state .
in august of 2004 , the west virginia department of environmental protection ( 2018 2018wvdep 2019 2019 ) submitted a draft consent order to map regarding map 2019s handling of alleged hazardous waste generated from tank cleanings in the state of west virginia .
the proposed order seeks a civil penalty of $ 337900 .
map has met with the wvdep and discussions are ongoing in an attempt to resolve this matter .
item 4 .
submission of matters to a vote of security holders not applicable .
part ii item 5 .
market for registrant 2019s common equity and related stockholder matters and issuer purchases of equity securities the principal market on which the company 2019s common stock is traded is the new york stock exchange .
the company 2019s common stock is also traded on the chicago stock exchange and the pacific exchange .
information concerning the high and low sales prices for the common stock as reported in the consolidated transaction reporting system and the frequency and amount of dividends paid during the last two years is set forth in 2018 2018selected quarterly financial data ( unaudited ) 2019 2019 on page f-41 .
as of january 31 , 2005 , there were 58340 registered holders of marathon common stock .
the board of directors intends to declare and pay dividends on marathon common stock based on the financial condition and results of operations of marathon oil corporation , although it has no obligation under delaware law or the restated certificate of incorporation to do so .
in determining its dividend policy with respect to marathon common stock , the board will rely on the financial statements of marathon .
dividends on marathon common stock are limited to legally available funds of marathon .
the following table provides information about purchases by marathon and its affiliated purchaser during the fourth quarter ended december 31 , 2004 of equity securities that are registered by marathon pursuant to section 12 of the exchange act : issuer purchases of equity securities .
| ( a ) | ( b ) | ( c ) | ( d )
---------------------- | -------------------------------------------- | ---------------------------- | -------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------
period | total number of shares purchased ( 1 ) ( 2 ) | average price paid per share | total number of shares purchased as part of publicly announced plans or programs ( 1 ) | maximum number of shares that may yet be purchased under the plans or programs
10/01/04 2013 10/31/04 | 6015 | $ 40.51 | n/a | n/a
11/01/04 2013 11/30/04 | 5145 | $ 38.94 | n/a | n/a
12/01/04 2013 12/31/04 | 34526 | $ 37.07 | n/a | n/a
total: | 45686 | $ 37.73 | n/a | n/a
( 1 ) 42749 shares were repurchased in open-market transactions under the marathon oil corporation dividend reinvestment and direct stock purchase plan ( the 2018 2018plan 2019 2019 ) by the administrator of the plan .
stock needed to meet the requirements of the plan are either purchased in the open market or issued directly by marathon .
( 2 ) 2936 shares of restricted stock were delivered by employees to marathon , upon vesting , to satisfy tax withholding requirements .
item 6 .
selected financial data see page f-49 through f-51. |
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dd4c46786 | security ownership of 5% ( 5 % ) holders , directors , nominees and executive officers shares of common stock percent of common stock name of beneficial owner beneficially owned ( 1 ) outstanding .
name of beneficial owner | shares of common stock beneficially owned ( 1 ) | | percent of common stock outstanding
---------------------------------------------------------------------- | ----------------------------------------------- | ---------- | -----------------------------------
fidelity investments | 56583870 | -2 ( 2 ) | 6.49% ( 6.49 % )
steven p . jobs | 5546451 | | *
william v . campbell | 112900 | -3 ( 3 ) | *
timothy d . cook | 13327 | -4 ( 4 ) | *
millard s . drexler | 230000 | -5 ( 5 ) | *
tony fadell | 288702 | -6 ( 6 ) | *
albert a . gore jr . | 70000 | -7 ( 7 ) | *
ronald b . johnson | 1450620 | -8 ( 8 ) | *
arthur d . levinson | 365015 | -9 ( 9 ) | *
peter oppenheimer | 14873 | -10 ( 10 ) | *
eric e . schmidt | 12284 | -11 ( 11 ) | *
jerome b . york | 90000 | -12 ( 12 ) | *
all current executive officers and directors as a group ( 14 persons ) | 8352396 | -13 ( 13 ) | 1.00% ( 1.00 % )
all current executive officers and directors as a group ( 14 persons ) 8352396 ( 13 ) 1.00% ( 1.00 % ) ( 1 ) represents shares of the company 2019s common stock held and options held by such individuals that were exercisable at the table date or within 60 days thereafter .
this does not include options or restricted stock units that vest more than 60 days after the table date .
( 2 ) based on a form 13g/a filed february 14 , 2007 by fmr corp .
fmr corp .
lists its address as 82 devonshire street , boston , ma 02109 , in such filing .
( 3 ) includes 110000 shares of the company 2019s common stock that mr .
campbell has the right to acquire by exercise of stock options .
( 4 ) excludes 600000 unvested restricted stock units .
( 5 ) includes 40000 shares of the company 2019s common stock that mr .
drexler holds indirectly and 190000 shares of the company 2019s common stock that mr .
drexler has the right to acquire by exercise of stock options .
( 6 ) includes 275 shares of the company 2019s common stock that mr .
fadell holds indirectly , 165875 shares of the company 2019s common stock that mr .
fadell has the right to acquire by exercise of stock options within 60 days after the table date , 1157 shares of the company 2019s common stock held by mr .
fadell 2019s spouse , and 117375 shares of the company 2019s common stock that mr .
fadell 2019s spouse has the right to acquire by exercise of stock options within 60 days after the table date .
excludes 210000 unvested restricted stock units held by mr .
fadell and 40000 unvested restricted stock units held by mr .
fadell 2019s spouse .
( 7 ) consists of 70000 shares of the company 2019s common stock that mr .
gore has the right to acquire by exercise of stock options .
( 8 ) includes 1300000 shares of the company 2019s common stock that mr .
johnson has the right to acquire by exercise of stock options and excludes 450000 unvested restricted stock units .
( 9 ) includes 2000 shares of the company 2019s common stock held by dr .
levinson 2019s spouse and 110000 shares of the company 2019s common stock that dr .
levinson has the right to acquire by exercise of stock options .
( 10 ) excludes 450000 unvested restricted stock units. |
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dd4c49d50 | contractual obligations we summarize our enforceable and legally binding contractual obligations at september 30 , 2018 , and the effect these obligations are expected to have on our liquidity and cash flow in future periods in the following table .
certain amounts in this table are based on management fffds estimates and assumptions about these obligations , including their duration , the possibility of renewal , anticipated actions by third parties and other factors , including estimated minimum pension plan contributions and estimated benefit payments related to postretirement obligations , supplemental retirement plans and deferred compensation plans .
because these estimates and assumptions are subjective , the enforceable and legally binding obligations we actually pay in future periods may vary from those presented in the table. .
( in millions ) | payments due by period total | payments due by period fiscal 2019 | payments due by period fiscal 2020and 2021 | payments due by period fiscal 2022and 2023 | payments due by period thereafter
--------------------------------------------------------------------------------- | ---------------------------- | ---------------------------------- | ------------------------------------------ | ------------------------------------------ | ---------------------------------
long-term debt including current portionexcluding capital lease obligations ( 1 ) | $ 6039.0 | $ 726.6 | $ 824.8 | $ 1351.0 | $ 3136.6
operating lease obligations ( 2 ) | 615.8 | 132.1 | 199.9 | 118.4 | 165.4
capital lease obligations ( 3 ) | 152.5 | 5.0 | 6.7 | 2.7 | 138.1
purchase obligations and other ( 4 ) ( 5 ) ( 6 ) | 2210.5 | 1676.6 | 224.1 | 114.9 | 194.9
total | $ 9017.8 | $ 2540.3 | $ 1255.5 | $ 1587.0 | $ 3635.0
( 1 ) includes only principal payments owed on our debt assuming that all of our long-term debt will be held to maturity , excluding scheduled payments .
we have excluded $ 205.2 million of fair value of debt step-up , deferred financing costs and unamortized bond discounts from the table to arrive at actual debt obligations .
see fffdnote 13 .
debt fffd fffd of the notes to consolidated financial statements for information on the interest rates that apply to our various debt instruments .
( 2 ) see fffdnote 14 .
operating leases fffd of the notes to consolidated financial statements for additional information .
( 3 ) the fair value step-up of $ 18.5 million is excluded .
see fffdnote 13 .
debt fffd fffd capital lease and other indebtednesstt fffd of the notes to consolidated financial statements for additional information .
( 4 ) purchase obligations include agreements to purchase goods or services that are enforceable and legally binding and that specify all significant terms , including : fixed or minimum quantities to be purchased ; fixed , minimum or variable price provision ; and the approximate timing of the transaction .
purchase obligations exclude agreements that are cancelable without penalty .
( 5 ) we have included in the table future estimated minimum pension plan contributions and estimated benefit payments related to postretirement obligations , supplemental retirement plans and deferred compensation plans .
our estimates are based on factors , such as discount rates and expected returns on plan assets .
future contributions are subject to changes in our underfunded status based on factors such as investment performance , discount rates , returns on plan assets and changes in legislation .
it is possible that our assumptions may change , actual market performance may vary or we may decide to contribute different amounts .
we have excluded $ 247.8 million of multiemployer pension plan withdrawal liabilities recorded as of september 30 , 2018 due to lack of definite payout terms for certain of the obligations .
see fffdnote 4 .
retirement plans fffd multiemployer plans fffd of the notes to consolidated financial statements for additional information .
( 6 ) we have not included the following items in the table : fffd an item labeled fffdother long-term liabilities fffd reflected on our consolidated balance sheet because these liabilities do not have a definite pay-out scheme .
fffd $ 158.4 million from the line item fffdpurchase obligations and other fffd for certain provisions of the financial accounting standards board fffds ( fffdfasb fffd ) accounting standards codification ( fffdasc fffd ) 740 , fffdincome taxes fffd associated with liabilities for uncertain tax positions due to the uncertainty as to the amount and timing of payment , if any .
in addition to the enforceable and legally binding obligations presented in the table above , we have other obligations for goods and services and raw materials entered into in the normal course of business .
these contracts , however , are subject to change based on our business decisions .
expenditures for environmental compliance see item 1 .
fffdbusiness fffd fffd governmental regulation fffd environmental and other matters fffd , fffdbusiness fffd fffd governmental regulation fffd cercla and other remediation costs fffd , and fffd fffdbusiness fffd fffd governmental regulation fffd climate change fffd for a discussion of our expenditures for environmental compliance. |
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dd4bd938e | 14 .
capital stock and earnings per share we are authorized to issue 250 million shares of preferred stock , none of which were issued or outstanding as of december 31 , 2009 .
the numerator for both basic and diluted earnings per share is net earnings available to common stockholders .
the denominator for basic earnings per share is the weighted average number of common shares outstanding during the period .
the denominator for diluted earnings per share is weighted average shares outstanding adjusted for the effect of dilutive stock options and other equity awards .
the following is a reconciliation of weighted average shares for the basic and diluted share computations for the years ending december 31 ( in millions ) : .
| 2009 | 2008 | 2007
---------------------------------------------------------------------- | ----- | ----- | -----
weighted average shares outstanding for basic net earnings per share | 215.0 | 227.3 | 235.5
effect of dilutive stock options and other equity awards | 0.8 | 1.0 | 2.0
weighted average shares outstanding for diluted net earnings per share | 215.8 | 228.3 | 237.5
weighted average shares outstanding for basic net earnings per share 215.0 227.3 235.5 effect of dilutive stock options and other equity awards 0.8 1.0 2.0 weighted average shares outstanding for diluted net earnings per share 215.8 228.3 237.5 for the year ended december 31 , 2009 , an average of 14.3 million options to purchase shares of common stock were not included in the computation of diluted earnings per share as the exercise prices of these options were greater than the average market price of the common stock .
for the years ended december 31 , 2008 and 2007 , an average of 11.2 million and 3.1 million options , respectively , were not included .
during 2009 , we repurchased approximately 19.8 million shares of our common stock at an average price of $ 46.56 per share for a total cash outlay of $ 923.7 million , including commissions .
in april 2008 , we announced that our board of directors authorized a $ 1.25 billion share repurchase program which was originally set to expire on december 31 , 2009 .
in september 2009 , the board of directors extended this program to december 31 , 2010 .
approximately $ 211.1 million remains authorized for future repurchases under this plan .
15 .
segment data we design , develop , manufacture and market orthopaedic reconstructive implants , dental implants , spinal implants , trauma products and related surgical products which include surgical supplies and instruments designed to aid in surgical procedures and post-operation rehabilitation .
we also provide other healthcare-related services .
revenue related to these services currently represents less than 1 percent of our total net sales .
we manage operations through three major geographic segments 2013 the americas , which is comprised principally of the united states and includes other north , central and south american markets ; europe , which is comprised principally of europe and includes the middle east and africa ; and asia pacific , which is comprised primarily of japan and includes other asian and pacific markets .
this structure is the basis for our reportable segment information discussed below .
management evaluates reportable segment performance based upon segment operating profit exclusive of operating expenses pertaining to global operations and corporate expenses , share-based compensation expense , settlement , certain claims , acquisition , integration , realignment and other expenses , net curtailment and settlement , inventory step-up , in-process research and development write-offs and intangible asset amortization expense .
global operations include research , development engineering , medical education , brand management , corporate legal , finance , and human resource functions and u.s .
and puerto rico-based manufacturing operations and logistics .
intercompany transactions have been eliminated from segment operating profit .
management reviews accounts receivable , inventory , property , plant and equipment , goodwill and intangible assets by reportable segment exclusive of u.s .
and puerto rico-based manufacturing operations and logistics and corporate assets .
z i m m e r h o l d i n g s , i n c .
2 0 0 9 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 : c55340 pcn : 060000000 ***%%pcmsg|60 |00007|yes|no|02/24/2010 01:32|0|0|page is valid , no graphics -- color : d| |
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dd4c391d0 | edwards lifesciences corporation notes to consolidated financial statements ( continued ) 7 .
acquisitions ( continued ) transaction closed on january 23 , 2017 , and the consideration paid included the issuance of approximately 2.8 million shares of the company 2019s common stock ( fair value of $ 266.5 million ) and cash of $ 86.2 million .
the company recognized in 201ccontingent consideration liabilities 201d a $ 162.9 million liability for the estimated fair value of the contingent milestone payments .
the fair value of the contingent milestone payments will be remeasured each quarter , with changes in the fair value recognized within operating expenses on the consolidated statements of operations .
for further information on the fair value of the contingent milestone payments , see note 10 .
in connection with the acquisition , the company placed $ 27.6 million of the purchase price into escrow to satisfy any claims for indemnification made in accordance with the merger agreement .
any funds remaining 15 months after the acquisition date will be disbursed to valtech 2019s former shareholders .
acquisition-related costs of $ 0.6 million and $ 4.1 million were recorded in 201cselling , general , and administrative expenses 201d during the years ended december 31 , 2017 and 2016 , respectively .
prior to the close of the transaction , valtech spun off its early- stage transseptal mitral valve replacement technology program .
concurrent with the closing , the company entered into an agreement for an exclusive option to acquire that program and its associated intellectual property for approximately $ 200.0 million , subject to certain adjustments , plus an additional $ 50.0 million if a certain european regulatory approval is obtained within 10 years of the acquisition closing date .
the option expires two years after the closing date of the transaction , but can be extended by up to one year depending on the results of certain clinical trials .
valtech is a developer of a transcatheter mitral and tricuspid valve repair system .
the company plans to add this technology to its portfolio of mitral and tricuspid repair products .
the acquisition was accounted for as a business combination .
tangible and intangible assets acquired were recorded based on their estimated fair values at the acquisition date .
the excess of the purchase price over the fair value of net assets acquired was recorded to goodwill .
the following table summarizes the fair values of the assets acquired and liabilities assumed ( in millions ) : .
current assets | $ 22.7
----------------------------------------- | --------------
property and equipment net | 1.2
goodwill | 316.5
developed technology | 109.2
ipr&d | 87.9
other assets | 0.8
current liabilities assumed | -5.1 ( 5.1 )
deferred income taxes | -17.6 ( 17.6 )
total purchase price | 515.6
less : cash acquired | -4.3 ( 4.3 )
total purchase price net of cash acquired | $ 511.3
goodwill includes expected synergies and other benefits the company believes will result from the acquisition .
goodwill was assigned to the company 2019s rest of world segment and is not deductible for tax purposes .
ipr&d has been capitalized at fair value as an intangible asset with an indefinite life and will be assessed for impairment in subsequent periods .
the fair value of the ipr&d was determined using the income approach .
this approach determines fair value based on cash flow projections which are discounted to present value using a risk-adjusted rate of return .
the discount rates used to determine the fair value of the ipr&d ranged from 18.0% ( 18.0 % ) to 20.0% ( 20.0 % ) .
completion of successful design developments , bench testing , pre-clinical studies |
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dd4bf7820 | impairment of long-lived assets , goodwill and intangible assets - we assess our long-lived assets for impairment based on statement 144 , 201caccounting for the impairment or disposal of long-lived assets . 201d a long-lived asset is tested for impairment whenever events or changes in circumstances indicate that its carrying amount may exceed its fair value .
fair values are based on the sum of the undiscounted future cash flows expected to result from the use and eventual disposition of the assets .
we assess our goodwill and intangible assets for impairment at least annually based on statement 142 , 201cgoodwill and other intangible assets . 201d there were no impairment charges resulting from the july 1 , 2007 , impairment tests and no events indicating an impairment have occurred subsequent to that date .
an initial assessment is made by comparing the fair value of the operations with goodwill , as determined in accordance with statement 142 , to the book value of each reporting unit .
if the fair value is less than the book value , an impairment is indicated , and we must perform a second test to measure the amount of the impairment .
in the second test , we calculate the implied fair value of the goodwill by deducting the fair value of all tangible and intangible net assets of the operations with goodwill from the fair value determined in step one of the assessment .
if the carrying value of the goodwill exceeds this calculated implied fair value of the goodwill , we will record an impairment charge .
at december 31 , 2007 , we had $ 600.7 million of goodwill recorded on our consolidated balance sheet as shown below. .
| ( thousands of dollars )
--------------- | ------------------------
oneok partners | $ 431418
distribution | 157953
energy services | 10255
other | 1099
total goodwill | $ 600725
( thousands of dollars ) intangible assets with a finite useful life are amortized over their estimated useful life , while intangible assets with an indefinite useful life are not amortized .
all intangible assets are subject to impairment testing .
our oneok partners segment had $ 443.0 million of intangible assets recorded on our consolidated balance sheet as of december 31 , 2007 , of which $ 287.5 million is being amortized over an aggregate weighted-average period of 40 years , while the remaining balance has an indefinite life .
during 2006 , we recorded a goodwill and asset impairment related to oneok partners 2019 black mesa pipeline of $ 8.4 million and $ 3.6 million , respectively , which were recorded as depreciation and amortization .
the reduction to our net income , net of minority interests and income taxes , was $ 3.0 million .
in the third quarter of 2005 , we made the decision to sell our spring creek power plant , located in oklahoma , and exit the power generation business .
in october 2005 , we concluded that our spring creek power plant had been impaired and recorded an impairment expense of $ 52.2 million .
this conclusion was based on our statement 144 impairment analysis of the results of operations for this plant through september 30 , 2005 , and also the net sales proceeds from the anticipated sale of the plant .
the sale was completed on october 31 , 2006 .
this component of our business is accounted for as discontinued operations in accordance with statement 144 .
see 201cdiscontinued operations 201d on page 46 for additional information .
our total unamortized excess cost over underlying fair value of net assets accounted for under the equity method was $ 185.6 million as of december 31 , 2007 and 2006 .
based on statement 142 , this amount , referred to as equity method goodwill , should continue to be recognized in accordance with apb opinion no .
18 , 201cthe equity method of accounting for investments in common stock . 201d accordingly , we included this amount in investment in unconsolidated affiliates on our accompanying consolidated balance sheets .
pension and postretirement employee benefits - we have defined benefit retirement plans covering certain full-time employees .
we sponsor welfare plans that provide postretirement medical and life insurance benefits to certain employees who retire with at least five years of service .
our actuarial consultant calculates the expense and liability related to these plans and uses statistical and other factors that attempt to anticipate future events .
these factors include assumptions about the discount rate , expected return on plan assets , rate of future compensation increases , age and employment periods .
in determining the projected benefit obligations and costs , assumptions can change from period to period and result in material changes in the costs and liabilities we recognize .
see note j of the notes to consolidated financial statements in this annual report on form 10-k for additional information. |
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dd4bf481e | 29 annual report 2012 duke realty corporation | | those indirect costs not allocated to or absorbed by these operations are charged to general and administrative expenses .
we regularly review our total overhead cost structure relative to our leasing , development and construction volume and adjust the level of total overhead , generally through changes in our level of staffing in various functional departments , as necessary in order to control overall general and administrative expense .
general and administrative expenses increased from $ 43.1 million in 2011 to $ 46.4 million in 2012 .
the following table sets forth the factors that led to the increase in general and administrative expenses from 2011 to 2012 ( in millions ) : .
general and administrative expenses - 2011 | $ 43.1
-------------------------------------------------------------------------------------- | --------------
reduction to overall pool of overhead costs ( 1 ) | -11.0 ( 11.0 )
increased absorption of costs by wholly-owned development and leasing activities ( 2 ) | -14.7 ( 14.7 )
reduced allocation of costs to service operations and rental operations ( 3 ) | 29.0
general and administrative expenses - 2012 | $ 46.4
( 1 ) we reduced our total pool of overhead costs , through staff reductions and other measures , as the result of changes in our product mix and anticipated future levels of third-party construction , leasing , management and other operational activities .
( 2 ) we increased our focus on development of wholly-owned properties , and also significantly increased our leasing activity during 2012 , which resulted in an increased absorption of overhead costs .
we capitalized $ 30.4 million and $ 20.0 million of our total overhead costs to leasing and development , respectively , for consolidated properties during 2012 , compared to capitalizing $ 25.3 million and $ 10.4 million of such costs , respectively , for 2011 .
combined overhead costs capitalized to leasing and development totaled 31.1% ( 31.1 % ) and 20.6% ( 20.6 % ) of our overall pool of overhead costs for 2012 and 2011 , respectively .
( 3 ) the reduction in the allocation of overhead costs to service operations and rental operations resulted from reduced volumes of third-party construction projects as well as due to reducing our overall investment in office properties , which are more management intensive .
interest expense interest expense allocable to continuing operations increased from $ 220.5 million in 2011 to $ 245.2 million in 2012 .
we had $ 47.4 million of interest expense allocated to discontinued operations in 2011 , associated with the properties that were disposed of during 2011 , compared to the allocation of only $ 3.1 million of interest expense to discontinued operations for 2012 .
total interest expense , combined for continuing and discontinued operations , decreased from $ 267.8 million in 2011 to $ 248.3 million in 2012 .
the reduction in total interest expense was primarily the result of a lower weighted average borrowing rate in 2012 , due to refinancing some higher rate bonds in 2011 and 2012 , as well as a slight decrease in our average level of borrowings compared to 2011 .
also , due to an increase in properties under development from 2011 , which met the criteria for capitalization of interest and were financed in part by common equity issuances during 2012 , a $ 5.0 million increase in capitalized interest also contributed to the decrease in total interest expense in 2012 .
acquisition-related activity during 2012 , we recognized approximately $ 4.2 million in acquisition costs , compared to $ 2.3 million of such costs in 2011 .
the increase from 2011 to 2012 is the result of acquiring a higher volume of medical office properties , where a higher level of acquisition costs are incurred than other property types , in 2012 .
during 2011 , we also recognized a $ 1.1 million gain related to the acquisition of a building from one of our 50%-owned unconsolidated joint ventures .
discontinued operations subject to certain criteria , the results of operations for properties sold during the year to unrelated parties , or classified as held-for-sale at the end of the period , are required to be classified as discontinued operations .
the property specific components of earnings that are classified as discontinued operations include rental revenues , rental expenses , real estate taxes , allocated interest expense and depreciation expense , as well as the net gain or loss on the disposition of properties .
the operations of 150 buildings are currently classified as discontinued operations .
these 150 buildings consist of 114 office , 30 industrial , four retail , and two medical office properties .
as a result , we classified operating losses , before gain on sales , of $ 1.5 million , $ 1.8 million and $ 7.1 million in discontinued operations for the years ended december 31 , 2012 , 2011 and 2010 , respectively .
of these properties , 28 were sold during 2012 , 101 properties were sold during 2011 and 19 properties were sold during 2010 .
the gains on disposal of these properties of $ 13.5 million , $ 100.9 million and $ 33.1 million for the years ended december 31 , 2012 , 2011 and |
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dd4c0f3ee | our international networks segment also owns and operates the following regional television networks , which reached the following number of subscribers and viewers via pay and fta or broadcast networks , respectively , as of december 31 , 2017 : television service international subscribers/viewers ( millions ) .
| television service | internationalsubscribers/viewers ( millions )
------------------------------- | ------------------ | ---------------------------------------------
quest | fta | 66
dsport | fta | 43
nordic broadcast networks ( a ) | broadcast | 34
quest red | fta | 27
giallo | fta | 25
frisbee | fta | 25
focus | fta | 25
k2 | fta | 25
nove | fta | 25
discovery hd world | pay | 17
dkiss | pay | 15
shed | pay | 12
discovery hd theater | pay | 11
discovery history | pay | 10
discovery civilization | pay | 8
discovery world | pay | 6
discovery en espanol ( u.s. ) | pay | 6
discovery familia ( u.s. ) | pay | 6
discovery historia | pay | 6
( a ) number of subscribers corresponds to the sum of the subscribers to each of the nordic broadcast networks in sweden , norway , finland and denmark subject to retransmission agreements with pay-tv providers .
the nordic broadcast networks include kanal 5 , kanal 9 , and kanal 11 in sweden , tv norge , max , fem and vox in norway , tv 5 , kutonen , and frii in finland , and kanal 4 , kanal 5 , 6'eren , and canal 9 in denmark .
similar to u.s .
networks , a significant source of revenue for international networks relates to fees charged to operators who distribute our linear networks .
such operators primarily include cable and dth satellite service providers , internet protocol television ( "iptv" ) and over-the-top operators ( "ott" ) .
international television markets vary in their stages of development .
some markets , such as the u.k. , are more advanced digital television markets , while others remain in the analog environment with varying degrees of investment from operators to expand channel capacity or convert to digital technologies .
common practice in international markets results in long-term contractual distribution relationships with terms generally shorter than similar customers in the u.s .
distribution revenue for our international networks segment is largely dependent on the number of subscribers that receive our networks or content , the rates negotiated in the distributor agreements , and the market demand for the content that we provide .
the other significant source of revenue for international networks relates to advertising sold on our television networks and across other distribution platforms , similar to u.s .
networks .
advertising revenue is dependent upon a number of factors , including the development of pay and fta television markets , the number of subscribers to and viewers of our channels , viewership demographics , the popularity of our programming , and our ability to sell commercial time over all media platforms .
in certain markets , our advertising sales business operates with in-house sales teams , while we rely on external sales representation services in other markets .
during 2017 , distribution , advertising and other revenues were 57% ( 57 % ) , 41% ( 41 % ) and 2% ( 2 % ) , respectively , of total net revenues for this segment .
while the company has traditionally operated cable networks , in recent years an increasing portion of the company's international advertising revenue is generated by fta or broadcast networks , unlike u.s .
networks .
during 2017 , fta or broadcast networks generated 54% ( 54 % ) of international networks' advertising revenue and pay-tv networks generated 46% ( 46 % ) of international networks' advertising revenue .
international networks' largest cost is content expense for localized programming disseminated via more than 400 unique distribution feeds .
while our international networks segment maximizes the use of programming from u.s .
networks , we also develop local programming that is tailored to individual market preferences and license the rights to air films , television series and sporting events from third parties .
international networks amortizes the cost of capitalized content rights based on the proportion of current estimated revenues relative to the estimated remaining total lifetime revenues , which results in either an accelerated method or a straight-line method over the estimated useful lives of the content of up to five years .
content acquired from u.s .
networks and content developed locally airing on the same network is amortized similarly , as amortization rates vary by network .
more than half of international networks' content is amortized using an accelerated amortization method , while the remainder is amortized on a straight-line basis .
the costs for multi-year sports programming arrangements are expensed when the event is broadcast based on the estimated relative value of each component of the arrangement .
while international networks and u.s .
networks have similarities with respect to the nature of operations , the generation of revenue and the categories of expense , international networks have a lower segment margin due to lower economies of scale from being in over 220 markets requiring additional cost for localization to satisfy market variations .
international networks also include sports and fta broadcast channels , which drive higher costs from sports rights and production and investment in broad entertainment programming for broadcast networks .
on june 23 , 2016 , the u.k .
held a referendum in which voters approved an exit from the european union ( 201ce.u . 201d ) , commonly referred to as 201cbrexit . 201d after a preliminary phase of negotiations towards the end of 2017 , the u.k .
government and the e.u .
will in 2018 negotiate the main principles of the u.k . 2019s future relationship with the e.u. , as well as a transitional period .
brexit may have an adverse impact on advertising , subscribers , distributors and employees , as described in item 1a , risk factors , below .
we continue to monitor the situation and plan for potential effects to our distribution and licensing agreements , unusual foreign currency exchange rate fluctuations , and changes to the legal and regulatory landscape .
education and other education and other generated revenues of $ 158 million during 2017 , which represented 2% ( 2 % ) of our total consolidated revenues .
education is comprised of curriculum-based product and service offerings and generates revenues primarily from subscriptions charged to k-12 schools for access to an online suite of curriculum-based vod tools , professional development services , digital textbooks and , to a lesser extent , student assessments and publication of hard copy curriculum-based content .
other is comprised of our wholly-owned production studio , which provides services to our u.s .
networks and international networks segments at cost .
on february 26 , 2018 , the company announced the planned sale of a controlling equity stake in its education business in the first half of 2018 , to francisco partners for cash of $ 120 million .
no loss is expected upon sale .
the company will retain an equity interest .
additionally , the company will have ongoing license agreements which are considered to be at fair value .
as of december 31 , 2017 , the company determined that the education business did not meet the held for sale criteria , as defined in gaap as management had not committed to a plan to sell the assets .
on april 28 , 2017 , the company sold raw and betty to all3media .
all3media is a u.k .
based television , film and digital production and distribution company .
the company owns 50% ( 50 % ) of all3media and accounts for its investment in all3media under the equity method of accounting .
raw and betty were components of the studios operating segment reported with education and other .
on november 12 , 2015 , we paid $ 195 million to acquire 5 million shares , or approximately 3% ( 3 % ) , of lions gate entertainment corp .
( "lionsgate" ) , an entertainment company involved in the production of movies and television which is accounted for as an available-for-sale ( "afs" ) security .
during 2016 , we determined that the decline in value of our investment in lionsgate is other- than-temporary in nature and , as such , the cost basis was adjusted to the fair value of the investment as of september 30 , 2016 .
( see note 4 to the accompanying consolidated financial statements. ) content development our content development strategy is designed to increase viewership , maintain innovation and quality leadership , and provide value for our network distributors and advertising customers .
our content is sourced from a wide range of third-party producers , which include some of the world 2019s leading nonfiction production companies , as well as independent producers and wholly-owned production studios .
our production arrangements fall into three categories : produced , coproduced and licensed .
produced content includes content that we engage third parties or wholly owned production studios to develop and produce .
we retain editorial control and own most or all of the rights , in exchange for paying all development and production costs .
production of digital-first content such as virtual reality and short-form video is typically done through wholly-owned production studios .
coproduced content refers to program rights on which we have collaborated with third parties to finance and develop either because at times world-wide rights are not available for acquisition or we save costs by collaborating with third parties .
licensed content is comprised of films or |
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dd4bedf0a | discussion and analysis of financial condition and results of operations 2014liquidity and capital resources 2014 factors affecting sources of liquidity . 201d recent sales of unregistered securities during the year ended december 31 , 2005 , we issued an aggregate of 4670335 shares of our class a common stock upon conversion of $ 57.1 million principal amount of our 3.25% ( 3.25 % ) notes .
pursuant to the terms of the indenture , the holders of the 3.25% ( 3.25 % ) notes received 81.808 shares of class a common stock for every $ 1000 principal amount of notes converted .
the shares were issued to the noteholders in reliance on the exemption from registration set forth in section 3 ( a ) ( 9 ) of the securities act of 1933 , as amended .
no underwriters were engaged in connection with such issuances .
in connection with the conversion , we paid such holders an aggregate of $ 4.9 million , calculated based on the accrued and unpaid interest on the notes and the discounted value of the future interest payments on the notes .
subsequent to december 31 , 2005 , we issued shares of class a common stock upon conversions of additional 3.25% ( 3.25 % ) notes , as set forth in item 9b of this annual report under the caption 201cother information . 201d during the year ended december 31 , 2005 , we issued an aggregate of 398412 shares of our class a common stock upon exercises of 55729 warrants assumed in our merger with spectrasite , inc .
in august 2005 , in connection with our merger with spectrasite , inc. , we assumed approximately 1.0 million warrants to purchase shares of spectrasite , inc .
common stock .
upon completion of the merger , each warrant to purchase shares of spectrasite , inc .
common stock automatically converted into a warrant to purchase 7.15 shares of class a common stock at an exercise price of $ 32 per warrant .
net proceeds from these warrant exercises were approximately $ 1.8 million .
the shares of class a common stock issued to the warrantholders upon exercise of the warrants were issued in reliance on the exemption from registration set forth in section 3 ( a ) ( 9 ) of the securities act of 1933 , as amended .
no underwriters were engaged in connection with such issuances .
subsequent to december 31 , 2005 , we issued shares of class a common stock upon exercises of additional warrants , as set forth in item 9b of this annual report under the caption 201cother information . 201d issuer purchases of equity securities in november 2005 , we announced that our board of directors had approved a stock repurchase program pursuant to which we intend to repurchase up to $ 750.0 million of our class a common stock through december 2006 .
during the fourth quarter of 2005 , we repurchased 2836519 shares of our class a common stock for an aggregate of $ 76.6 million pursuant to our stock repurchase program , 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 ( 1 ) 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 ( 1 ) | approximate dollar value of shares that may yet be purchased under the plans or programs ( in millions )
---------------------- | -------------------------------------- | ---------------------------- | -------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------
11/17/05 2013 11/30/05 | 874306 | $ 26.25 | 874306 | $ 727.0
12/1/05 2013 12/31/05 | 1962213 | $ 27.29 | 1962213 | $ 673.4
total fourth quarter | 2836519 | $ 26.97 | 2836519 | $ 673.4
( 1 ) all issuer repurchases were made pursuant to the stock repurchase program publicly announced in november 2005 .
pursuant to the program , we intend to repurchase up to $ 750.0 million of our class a common stock during the period november 2005 through december 2006 .
under the program , our management is authorized to purchase shares from time to time in 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 entered into a trading plan under rule 10b5-1 of the securities exchange act of 1934 , which allows 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 .
the program may be discontinued at any time .
since december 31 , 2005 , we have continued to repurchase shares of our class a common stock pursuant to our stock repurchase program .
between january 1 , 2006 and march 9 , 2006 , we repurchased 3.9 million shares of class a common stock for an aggregate of $ 117.4 million pursuant to the stock repurchase program. |
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dd4be669c | guarantees to third parties .
we have , however , issued guar- antees and comfort letters of $ 171 million for the debt and other obligations of unconsolidated affiliates , primarily for cpw .
in addition , off-balance sheet arrangements are gener- ally limited to the future payments under noncancelable operating leases , which totaled $ 408 million at may 28 , at may 28 , 2006 , we had invested in four variable interest entities ( vies ) .
we are the primary beneficiary ( pb ) of general mills capital , inc .
( gm capital ) , a subsidiary that we consolidate as set forth in note eight to the consoli- dated financial statements appearing on pages 43 and 44 in item eight of this report .
we also have an interest in a contract manufacturer at our former facility in geneva , illi- nois .
even though we are the pb , we have not consolidated this entity because it is not material to our results of oper- ations , financial condition , or liquidity at may 28 , 2006 .
this entity had property and equipment of $ 50 million and long-term debt of $ 50 million at may 28 , 2006 .
we are not the pb of the remaining two vies .
our maximum exposure to loss from these vies is limited to the $ 150 million minority interest in gm capital , the contract manufactur- er 2019s debt and our $ 6 million of equity investments in the two remaining vies .
the following table summarizes our future estimated cash payments under existing contractual obligations , including payments due by period .
the majority of the purchase obligations represent commitments for raw mate- rial and packaging to be utilized in the normal course of business and for consumer-directed marketing commit- ments that support our brands .
the net fair value of our interest rate and equity swaps was $ 159 million at may 28 , 2006 , based on market values as of that date .
future changes in market values will impact the amount of cash ultimately paid or received to settle those instruments in the future .
other long-term obligations primarily consist of income taxes , accrued compensation and benefits , and miscella- neous liabilities .
we are unable to estimate the timing of the payments for these items .
we do not have significant statutory or contractual funding requirements for our defined-benefit retirement and other postretirement benefit plans .
further information on these plans , including our expected contributions for fiscal 2007 , is set forth in note thirteen to the consolidated financial statements appearing on pages 47 through 50 in item eight of this report .
in millions , payments due by fiscal year total 2007 2008-09 2010-11 2012 and thereafter .
in millionspayments dueby fiscal year | total | 2007 | 2008-09 | 2010-11 | 2012 andthereafter
------------------------------------- | ------ | ------ | ------- | ------- | ------------------
long-term debt | $ 4546 | $ 2131 | $ 971 | $ 55 | $ 1389
accrued interest | 152 | 152 | 2013 | 2013 | 2013
operating leases | 408 | 92 | 142 | 89 | 85
purchaseobligations | 2351 | 2068 | 144 | 75 | 64
total | $ 7457 | $ 4443 | $ 1257 | $ 219 | $ 1538
significant accounting estimates for a complete description of our significant accounting policies , please see note one to the consolidated financial statements appearing on pages 35 through 37 in item eight of this report .
our significant accounting estimates are those that have meaningful impact on the reporting of our financial condition and results of operations .
these poli- cies include our accounting for trade and consumer promotion activities ; goodwill and other intangible asset impairments ; income taxes ; and pension and other postretirement benefits .
trade and consumer promotion activities we report sales net of certain coupon and trade promotion costs .
the consumer coupon costs recorded as a reduction of sales are based on the estimated redemption value of those coupons , as determined by historical patterns of coupon redemption and consideration of current market conditions such as competitive activity in those product categories .
the trade promotion costs include payments to customers to perform merchandising activities on our behalf , such as advertising or in-store displays , discounts to our list prices to lower retail shelf prices , and payments to gain distribution of new products .
the cost of these activi- ties is recognized as the related revenue is recorded , which generally precedes the actual cash expenditure .
the recog- nition of these costs requires estimation of customer participation and performance levels .
these estimates are made based on the quantity of customer sales , the timing and forecasted costs of promotional activities , and other factors .
differences between estimated expenses and actual costs are normally insignificant and are recognized as a change in management estimate in a subsequent period .
our accrued trade and consumer promotion liability was $ 339 million as of may 28 , 2006 , and $ 283 million as of may 29 , 2005 .
our unit volume in the last week of each quarter is consis- tently higher than the average for the preceding weeks of the quarter .
in comparison to the average daily shipments in the first 12 weeks of a quarter , the final week of each quarter has approximately two to four days 2019 worth of incre- mental shipments ( based on a five-day week ) , reflecting increased promotional activity at the end of the quarter .
this increased activity includes promotions to assure that our customers have sufficient inventory on hand to support major marketing events or increased seasonal demand early in the next quarter , as well as promotions intended to help achieve interim unit volume targets .
if , due to quarter-end promotions or other reasons , our customers purchase more product in any reporting period than end-consumer demand will require in future periods , our sales level in future reporting periods could be adversely affected. |
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dd4c0fb0a | five-year performance comparison 2013 the following graph provides an indicator of cumulative total shareholder returns for the corporation as compared to the peer group index ( described above ) , the dj trans , and the s&p 500 .
the graph assumes that $ 100 was invested in the common stock of union pacific corporation and each index on december 31 , 2012 and that all dividends were reinvested .
the information below is historical in nature and is not necessarily indicative of future performance .
purchases of equity securities 2013 during 2017 , we repurchased 37122405 shares of our common stock at an average price of $ 110.50 .
the following table presents common stock repurchases during each month for the fourth quarter of 2017 : period total number of shares purchased [a] average price paid per share total number of shares purchased as part of a publicly announced plan or program [b] maximum number of shares remaining under the plan or program [b] .
period | total number of shares purchased [a] | average price paid per share | total number of shares purchased as part of a publicly announcedplan or program [b] | maximum number of shares remaining under the plan or program [b]
------------------------ | ------------------------------------ | ---------------------------- | ----------------------------------------------------------------------------------- | ----------------------------------------------------------------
oct . 1 through oct . 31 | 3831636 | $ 113.61 | 3800000 | 89078662
nov . 1 through nov . 30 | 3005225 | 117.07 | 2937410 | 86141252
dec . 1 through dec . 31 | 2718319 | 130.76 | 2494100 | 83647152
total | 9555180 | $ 119.58 | 9231510 | n/a
[a] total number of shares purchased during the quarter includes approximately 323670 shares delivered or attested to upc by employees to pay stock option exercise prices , satisfy excess tax withholding obligations for stock option exercises or vesting of retention units , and pay withholding obligations for vesting of retention shares .
[b] effective january 1 , 2017 , our board of directors authorized the repurchase of up to 120 million shares of our common stock by december 31 , 2020 .
these repurchases may be made on the open market or through other transactions .
our management has sole discretion with respect to determining the timing and amount of these transactions. |
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dd4be678c | disclosure of , the issuance of certain types of guarantees .
the adoption of fasb interpretation no .
45 did not have a signif- icant impact on the net income or equity of the company .
in january 2003 , fasb interpretation no .
46 , 201cconsolidation of variable interest entities , an interpretation of arb 51 , 201d was issued .
the primary objectives of this interpretation , as amended , are to provide guidance on the identification and consolidation of variable interest entities , or vies , which are entities for which control is achieved through means other than through voting rights .
the company has completed an analysis of this interpretation and has determined that it does not have any vies .
4 .
acquisitions family health plan , inc .
effective january 1 , 2004 , the company commenced opera- tions in ohio through the acquisition from family health plan , inc .
of certain medicaid-related assets for a purchase price of approximately $ 6800 .
the cost to acquire the medicaid-related assets will be allocated to the assets acquired and liabilities assumed according to estimated fair values .
hmo blue texas effective august 1 , 2003 , the company acquired certain medicaid-related contract rights of hmo blue texas in the san antonio , texas market for $ 1045 .
the purchase price was allocated to acquired contracts , which are being amor- tized on a straight-line basis over a period of five years , the expected period of benefit .
group practice affiliates during 2003 , the company acquired a 100% ( 100 % ) ownership interest in group practice affiliates , llc , a behavioral healthcare services company ( 63.7% ( 63.7 % ) in march 2003 and 36.3% ( 36.3 % ) in august 2003 ) .
the consolidated financial state- ments include the results of operations of gpa since march 1 , 2003 .
the company paid $ 1800 for its purchase of gpa .
the cost to acquire the ownership interest has been allocated to the assets acquired and liabilities assumed according to estimated fair values and is subject to adjustment when additional information concerning asset and liability valuations are finalized .
the preliminary allocation has resulted in goodwill of approximately $ 3895 .
the goodwill is not amortized and is not deductible for tax purposes .
pro forma disclosures related to the acquisition have been excluded as immaterial .
scriptassist in march 2003 , the company purchased contract and name rights of scriptassist , llc ( scriptassist ) , a medication com- pliance company .
the purchase price of $ 563 was allocated to acquired contracts , which are being amortized on a straight-line basis over a period of five years , the expected period of benefit .
the investor group who held membership interests in scriptassist included one of the company 2019s executive officers .
university health plans , inc .
on december 1 , 2002 , the company purchased 80% ( 80 % ) of the outstanding capital stock of university health plans , inc .
( uhp ) in new jersey .
in october 2003 , the company exercised its option to purchase the remaining 20% ( 20 % ) of the outstanding capital stock .
centene paid a total purchase price of $ 13258 .
the results of operations for uhp are included in the consolidated financial statements since december 1 , 2002 .
the acquisition of uhp resulted in identified intangible assets of $ 3800 , representing purchased contract rights and provider network .
the intangibles are being amortized over a ten-year period .
goodwill of $ 7940 is not amortized and is not deductible for tax purposes .
changes during 2003 to the preliminary purchase price allocation primarily consisted of the purchase of the remaining 20% ( 20 % ) of the outstanding stock and the recognition of intangible assets and related deferred tax liabilities .
the following unaudited pro forma information presents the results of operations of centene and subsidiaries as if the uhp acquisition described above had occurred as of january 1 , 2001 .
these pro forma results may not necessar- ily reflect the actual results of operations that would have been achieved , nor are they necessarily indicative of future results of operations. .
| 2002 | 2001
--------------------------------- | -------- | --------
revenue | $ 567048 | $ 395155
net earnings | 25869 | 11573
diluted earnings per common share | 1.48 | 1.00
diluted earnings per common share 1.48 1.00 texas universities health plan in june 2002 , the company purchased schip contracts in three texas service areas .
the cash purchase price of $ 595 was recorded as purchased contract rights , which are being amortized on a straight-line basis over five years , the expected period of benefit .
bankers reserve in march 2002 , the company acquired bankers reserve life insurance company of wisconsin for a cash purchase price of $ 3527 .
the company allocated the purchase price to net tangible and identifiable intangible assets based on their fair value .
centene allocated $ 479 to identifiable intangible assets , representing the value assigned to acquired licenses , which are being amortized on a straight-line basis over a notes to consolidated financial statements ( continued ) centene corporation and subsidiaries |
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dd4bd3b46 | table of contents valero energy corporation and subsidiaries notes to consolidated financial statements ( continued ) commodity price risk we are exposed to market risks related to the volatility in the price of crude oil , refined products ( primarily gasoline and distillate ) , grain ( primarily corn ) , and natural gas used in our operations .
to reduce the impact of price volatility on our results of operations and cash flows , we use commodity derivative instruments , including futures , swaps , and options .
we use the futures markets for the available liquidity , which provides greater flexibility in transacting our hedging and trading operations .
we use swaps primarily to manage our price exposure .
our positions in commodity derivative instruments are monitored and managed on a daily basis by a risk control group to ensure compliance with our stated risk management policy that has been approved by our board of directors .
for risk management purposes , we use fair value hedges , cash flow hedges , and economic hedges .
in addition to the use of derivative instruments to manage commodity price risk , we also enter into certain commodity derivative instruments for trading purposes .
our objective for entering into each type of hedge or trading derivative is described below .
fair value hedges fair value hedges are used to hedge price volatility in certain refining inventories and firm commitments to purchase inventories .
the level of activity for our fair value hedges is based on the level of our operating inventories , and generally represents the amount by which our inventories differ from our previous year-end lifo inventory levels .
as of december 31 , 2012 , we had the following outstanding commodity derivative instruments that were entered into to hedge crude oil and refined product inventories and commodity derivative instruments related to the physical purchase of crude oil and refined products at a fixed price .
the information presents the notional volume of outstanding contracts by type of instrument and year of maturity ( volumes in thousands of barrels ) .
notional contract volumes by year of maturity derivative instrument 2013 .
derivative instrument | notionalcontractvolumes byyear ofmaturity 2013
------------------------------- | ----------------------------------------------
crude oil and refined products: |
futures 2013 long | 1052
futures 2013 short | 4857
physical contracts - long | 3805 |
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dd496ed24 | mandatorily redeemable securities of subsidiary trusts total mandatorily redeemable securities of subsidiary trusts ( trust preferred securities ) , which qualify as tier 1 capital , were $ 23.899 billion at december 31 , 2008 , as compared to $ 23.594 billion at december 31 , 2007 .
in 2008 , citigroup did not issue any new enhanced trust preferred securities .
the frb issued a final rule , with an effective date of april 11 , 2005 , which retains trust preferred securities in tier 1 capital of bank holding companies , but with stricter quantitative limits and clearer qualitative standards .
under the rule , after a five-year transition period , the aggregate amount of trust preferred securities and certain other restricted core capital elements included in tier 1 capital of internationally active banking organizations , such as citigroup , would be limited to 15% ( 15 % ) of total core capital elements , net of goodwill , less any associated deferred tax liability .
the amount of trust preferred securities and certain other elements in excess of the limit could be included in tier 2 capital , subject to restrictions .
at december 31 , 2008 , citigroup had approximately 11.8% ( 11.8 % ) against the limit .
the company expects to be within restricted core capital limits prior to the implementation date of march 31 , 2009 .
the frb permits additional securities , such as the equity units sold to adia , to be included in tier 1 capital up to 25% ( 25 % ) ( including the restricted core capital elements in the 15% ( 15 % ) limit ) of total core capital elements , net of goodwill less any associated deferred tax liability .
at december 31 , 2008 , citigroup had approximately 16.1% ( 16.1 % ) against the limit .
the frb granted interim capital relief for the impact of adopting sfas 158 at december 31 , 2008 and december 31 , 2007 .
the frb and the ffiec may propose amendments to , and issue interpretations of , risk-based capital guidelines and reporting instructions .
these may affect reported capital ratios and net risk-weighted assets .
capital resources of citigroup 2019s depository institutions citigroup 2019s subsidiary depository institutions in the united states are subject to risk-based capital guidelines issued by their respective primary federal bank regulatory agencies , which are similar to the frb 2019s guidelines .
to be 201cwell capitalized 201d under federal bank regulatory agency definitions , citigroup 2019s depository institutions must have a tier 1 capital ratio of at least 6% ( 6 % ) , a total capital ( tier 1 + tier 2 capital ) ratio of at least 10% ( 10 % ) and a leverage ratio of at least 5% ( 5 % ) , and not be subject to a regulatory directive to meet and maintain higher capital levels .
at december 31 , 2008 , all of citigroup 2019s subsidiary depository institutions were 201cwell capitalized 201d under the federal regulatory agencies 2019 definitions , including citigroup 2019s primary depository institution , citibank , n.a. , as noted in the following table : citibank , n.a .
components of capital and ratios under regulatory guidelines in billions of dollars at year end 2008 2007 .
in billions of dollars at year end | 2008 | 2007
----------------------------------------- | ---------------- | ----------------
tier 1 capital | $ 71.0 | $ 82.0
total capital ( tier 1 and tier 2 ) | 108.4 | 121.6
tier 1 capital ratio | 9.94% ( 9.94 % ) | 8.98% ( 8.98 % )
total capital ratio ( tier 1 and tier 2 ) | 15.18 | 13.33
leverage ratio ( 1 ) | 5.82 | 6.65
leverage ratio ( 1 ) 5.82 6.65 ( 1 ) tier 1 capital divided by adjusted average assets .
citibank , n.a .
had a net loss for 2008 amounting to $ 6.2 billion .
during 2008 , citibank , n.a .
received contributions from its parent company of $ 6.1 billion .
citibank , n.a .
did not issue any additional subordinated notes in 2008 .
total subordinated notes issued to citicorp holdings inc .
that were outstanding at december 31 , 2008 and december 31 , 2007 and included in citibank , n.a . 2019s tier 2 capital , amounted to $ 28.2 billion .
citibank , n.a .
received an additional $ 14.3 billion in capital contribution from its parent company in january 2009 .
the impact of this contribution is not reflected in the table above .
the substantial events in 2008 impacting the capital of citigroup , and the potential future events discussed on page 94 under 201ccitigroup regulatory capital ratios , 201d also affected , or could affect , citibank , n.a. |
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dd496f77e | table of contents adobe inc .
notes to consolidated financial statements ( continued ) certain states and foreign jurisdictions to fully utilize available tax credits and other attributes .
the deferred tax assets are offset by a valuation allowance to the extent it is more likely than not that they are not expected to be realized .
we provide u.s .
income taxes on the earnings of foreign subsidiaries unless the subsidiaries 2019 earnings are considered permanently reinvested outside the united states or are exempted from taxation as a result of the new territorial tax system .
to the extent that the foreign earnings previously treated as permanently reinvested are repatriated , the related u.s .
tax liability may be reduced by any foreign income taxes paid on these earnings .
as of november 30 , 2018 , the cumulative amount of earnings upon which u.s .
income taxes have not been provided is approximately $ 275 million .
the unrecognized deferred tax liability for these earnings is approximately $ 57.8 million .
as of november 30 , 2018 , we have net operating loss carryforwards of approximately $ 881.1 million for federal and $ 349.7 million for state .
we also have federal , state and foreign tax credit carryforwards of approximately $ 8.8 million , $ 189.9 million and $ 14.9 million , respectively .
the net operating loss carryforward assets and tax credits will expire in various years from fiscal 2019 through 2036 .
the state tax credit carryforwards and a portion of the federal net operating loss carryforwards can be carried forward indefinitely .
the net operating loss carryforward assets and certain credits are reduced by the valuation allowance and are subject to an annual limitation under internal revenue code section 382 , the carrying amount of which are expected to be fully realized .
as of november 30 , 2018 , a valuation allowance of $ 174.5 million has been established for certain deferred tax assets related to certain state and foreign assets .
for fiscal 2018 , the total change in the valuation allowance was $ 80.9 million .
accounting for uncertainty in income taxes during fiscal 2018 and 2017 , our aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows ( in thousands ) : .
| 2018 | 2017
---------------------------------------------------------------------------- | ---------------- | ----------------
beginning balance | $ 172945 | $ 178413
gross increases in unrecognized tax benefits 2013 prior year tax positions | 16191 | 3680
gross decreases in unrecognized tax benefits 2013 prior year tax positions | -4000 ( 4000 ) | -30166 ( 30166 )
gross increases in unrecognized tax benefits 2013 current year tax positions | 60721 | 24927
settlements with taxing authorities | 2014 | -3876 ( 3876 )
lapse of statute of limitations | -45922 ( 45922 ) | -8819 ( 8819 )
foreign exchange gains and losses | -3783 ( 3783 ) | 8786
ending balance | $ 196152 | $ 172945
the combined amount of accrued interest and penalties related to tax positions taken on our tax returns were approximately $ 24.6 million and $ 23.6 million for fiscal 2018 and 2017 , respectively .
these amounts were included in long-term income taxes payable in their respective years .
we file income tax returns in the united states on a federal basis and in many u.s .
state and foreign jurisdictions .
we are subject to the continual examination of our income tax returns by the irs and other domestic and foreign tax authorities .
our major tax jurisdictions are ireland , california and the united states .
for ireland , california and the united states , the earliest fiscal years open for examination are 2008 , 2014 and 2015 , respectively .
we regularly assess the likelihood of outcomes resulting from these examinations to determine the adequacy of our provision for income taxes and have reserved for potential adjustments that may result from these examinations .
we believe such estimates to be reasonable ; however , there can be no assurance that the final determination of any of these examinations will not have an adverse effect on our operating results and financial position .
the timing of the resolution of income tax examinations is highly uncertain as are the amounts and timing of tax payments that are part of any audit settlement process .
these events could cause large fluctuations in the balance of short-term and long- term assets , liabilities and income taxes payable .
we believe that within the next 12 months , it is reasonably possible that either certain audits will conclude or statutes of limitations on certain income tax examination periods will expire , or both .
given the uncertainties described above , we can only determine a range of estimated potential effect in underlying unrecognized tax benefits ranging from $ 0 to approximately $ 45 million. |
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dd4b8ece4 | 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 , 2015 to december 31 , 2015 .
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 may yet be purchased under the plans or programs3
--------------- | --------------------------------------------- | ----------------------------------------- | ------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------
october 1 - 31 | 2140511 | $ 20.54 | 2139507 | $ 227368014
november 1 - 30 | 1126378 | $ 22.95 | 1124601 | $ 201557625
december 1 - 31 | 1881992 | $ 22.97 | 1872650 | $ 158553178
total | 5148881 | $ 21.96 | 5136758 |
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 1004 withheld shares in october 2015 , 1777 withheld shares in november 2015 and 9342 withheld shares in december 2015 .
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 2015 , the board authorized a share repurchase program to repurchase from time to time up to $ 300.0 million , excluding fees , of our common stock ( the 201c2015 share repurchase program 201d ) .
on february 12 , 2016 , 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 for repurchase under the 2015 share repurchase program .
there is no expiration date associated with the share repurchase programs. |
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dd4c2b8f0 | entergy texas , inc .
and subsidiaries management 2019s financial discussion and analysis in addition to the contractual obligations given above , entergy texas expects to contribute approximately $ 17 million to its qualified pension plans and approximately $ 3.2 million to other postretirement health care and life insurance plans in 2017 , although the 2017 required pension contributions will be known with more certainty when the january 1 , 2017 valuations are completed , which is expected by april 1 , 2017 .
see 201ccritical accounting estimates - qualified pension and other postretirement benefits 201d below for a discussion of qualified pension and other postretirement benefits funding .
also in addition to the contractual obligations , entergy texas has $ 15.6 million of unrecognized tax benefits and interest net of unused tax attributes and payments for which the timing of payments beyond 12 months cannot be reasonably estimated due to uncertainties in the timing of effective settlement of tax positions .
see note 3 to the financial statements for additional information regarding unrecognized tax benefits .
in addition to routine capital spending to maintain operations , the planned capital investment estimate for entergy texas includes specific investments such as the montgomery county power station discussed below ; transmission projects to enhance reliability , reduce congestion , and enable economic growth ; distribution spending to enhance reliability and improve service to customers , including initial investment to support advanced metering ; system improvements ; and other investments .
estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints and requirements , environmental compliance , business opportunities , market volatility , economic trends , business restructuring , changes in project plans , and the ability to access capital .
management provides more information on long-term debt in note 5 to the financial statements .
as discussed above in 201ccapital structure , 201d entergy texas routinely evaluates its ability to pay dividends to entergy corporation from its earnings .
sources of capital entergy texas 2019s sources to meet its capital requirements include : 2022 internally generated funds ; 2022 cash on hand ; 2022 debt or preferred stock issuances ; and 2022 bank financing under new or existing facilities .
entergy texas may refinance , redeem , or otherwise retire debt prior to maturity , to the extent market conditions and interest and dividend rates are favorable .
all debt and common and preferred stock issuances by entergy texas require prior regulatory approval .
debt issuances are also subject to issuance tests set forth in its bond indenture and other agreements .
entergy texas has sufficient capacity under these tests to meet its foreseeable capital needs .
entergy texas 2019s receivables from or ( payables to ) the money pool were as follows as of december 31 for each of the following years. .
2016 | 2015 | 2014 | 2013
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 681 | ( $ 22068 ) | $ 306 | $ 6287
see note 4 to the financial statements for a description of the money pool .
entergy texas has a credit facility in the amount of $ 150 million scheduled to expire in august 2021 .
the credit facility allows entergy texas to issue letters of credit against 50% ( 50 % ) of the borrowing capacity of the facility .
as of december 31 , 2016 , there were no cash borrowings and $ 4.7 million of letters of credit outstanding under the credit facility .
in addition , entergy texas is a party to an uncommitted letter of credit facility as a means to post collateral |
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dd4b9a936 | increased by $ 105.6 million , or 3.4% ( 3.4 % ) , from 2006 to 2007 .
the following table reflects the components of our revenue growth for the years ended december 31 , 2008 , 2007 and 2006: .
| 2008 | 2007 | 2006
-------------------------------------- | ---------------- | -------------- | --------------
core price | 4.0% ( 4.0 % ) | 4.2% ( 4.2 % ) | 3.4% ( 3.4 % )
fuel surcharges | 1.8 | .2 | 1.1
environmental fees | .4 | .2 | .4
recycling commodities | .1 | .9 | -.1 ( .1 )
total price | 6.3 | 5.5 | 4.8
core volume ( 1 ) | -3.9 ( 3.9 ) | -1.5 ( 1.5 ) | 2.4
non-core volume | .1 | -.1 ( .1 ) | 2014
total volume | -3.8 ( 3.8 ) | -1.6 ( 1.6 ) | 2.4
total internal growth | 2.5 | 3.9 | 7.2
acquisitions net of divestitures ( 2 ) | 13.4 | -.5 ( .5 ) | -.1 ( .1 )
taxes ( 3 ) | .1 | 2014 | .1
total revenue growth | 16.0% ( 16.0 % ) | 3.4% ( 3.4 % ) | 7.2% ( 7.2 % )
( 1 ) core volume growth for the year ended december 31 , 2006 includes .8% ( .8 % ) associated with hauling waste from the city of toronto to one of our landfills in michigan .
this hauling service is provided to the city at a rate that approximates our cost .
( 2 ) includes the impact of the acquisition of allied in december 2008 .
( 3 ) represents new taxes levied on landfill volumes in certain states that are passed on to customers .
25aa 2008 : during the year ended december 31 , 2008 , our core revenue growth continued to benefit from a broad-based pricing initiative .
in addition , 14.7% ( 14.7 % ) of our revenue growth is due to our acquisition of allied in december 2008 .
revenue growth also benefited from higher fuel surcharges and environmental fees .
however , during 2008 we experienced lower prices for commodities .
we also experienced a decrease in core volumes primarily due to lower commercial and industrial collection volumes and lower landfill volumes resulting from the slowdown in the economy .
we expect to continue to experience lower volumes until economic conditions improve .
25aa 2007 : during the year ended december 31 , 2007 , our revenue growth from core pricing continued to benefit from a broad-based pricing initiative .
our revenue growth also benefited from higher prices for commodities .
however , we experienced a decrease in core volume growth primarily due to lower industrial collection and landfill volumes resulting from the slowdown in residential construction .
25aa 2006 : during the year ended december 31 , 2006 , our revenue growth continued to benefit from our broad-based pricing initiative .
we experienced core volume growth in our collection and landfill lines of business .
this core volume growth was partially offset by hurricane clean-up efforts that took place during the fourth quarter of 2005 .
25aa 2009 outlook : we anticipate internal revenue from core operations to decrease approximately 4.0% ( 4.0 % ) during 2009 .
this decrease is the expected net of growth in core pricing of approximately 4.0% ( 4.0 % ) and an expected decrease in volume of approximately 8.0% ( 8.0 % ) .
our projections assume no deterioration or improvement in the overall economy from that experienced during the fourth quarter of 2008 .
however , our internal growth may remain flat or may decline in 2009 depending on economic conditions and our success in implementing pricing initiatives .
cost of operations .
cost of operations was $ 2.4 billion , $ 2.0 billion and $ 1.9 billion , or , as a percentage of revenue , 65.6% ( 65.6 % ) , 63.1% ( 63.1 % ) and 62.7% ( 62.7 % ) , for the years ended december 31 , 2008 , 2007 and 2006 , respectively .
the increase in cost of operations in aggregate dollars for the year ended december 31 , 2008 versus the comparable 2007 period is primarily a result of our acquisition of allied in december 2008 .
the remaining increase in cost of operations in aggregate dollars and the increase as a percentage of revenue is primarily due to charges we recorded during 2008 of $ 98.0 million related to estimated costs to comply with f&os issued by the oepa and the aoc issued by the epa in response to environmental conditions at our countywide facility in ohio , $ 21.9 million related to environmental conditions at our closed disposal facility %%transmsg*** transmitting job : p14076 pcn : 048000000 ***%%pcmsg|46 |00044|yes|no|02/28/2009 17:08|0|0|page is valid , no graphics -- color : d| |
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dd4be2290 | entergy corporation and subsidiaries notes to financial statements liability to $ 60 million , and recorded the $ 2.7 million difference as a credit to interest expense .
the $ 60 million remaining liability was eliminated upon payment of the cash portion of the purchase price .
as of december 31 , 2016 , entergy louisiana , in connection with the waterford 3 lease obligation , had a future minimum lease payment ( reflecting an interest rate of 8.09% ( 8.09 % ) ) of $ 57.5 million , including $ 2.3 million in interest , due january 2017 that is recorded as long-term debt .
in february 2017 the leases were terminated and the leased assets were conveyed to entergy louisiana .
grand gulf lease obligations in 1988 , in two separate but substantially identical transactions , system energy sold and leased back undivided ownership interests in grand gulf for the aggregate sum of $ 500 million .
the initial term of the leases expired in july 2015 .
system energy renewed the leases for fair market value with renewal terms expiring in july 2036 .
at the end of the new lease renewal terms , system energy has the option to repurchase the leased interests in grand gulf or renew the leases at fair market value .
in the event that system energy does not renew or purchase the interests , system energy would surrender such interests and their associated entitlement of grand gulf 2019s capacity and energy .
system energy is required to report the sale-leaseback as a financing transaction in its financial statements .
for financial reporting purposes , system energy expenses the interest portion of the lease obligation and the plant depreciation .
however , operating revenues include the recovery of the lease payments because the transactions are accounted for as a sale and leaseback for ratemaking purposes .
consistent with a recommendation contained in a ferc audit report , system energy initially recorded as a net regulatory asset the difference between the recovery of the lease payments and the amounts expensed for interest and depreciation and continues to record this difference as a regulatory asset or liability on an ongoing basis , resulting in a zero net balance for the regulatory asset at the end of the lease term .
the amount was a net regulatory liability of $ 55.6 million and $ 55.6 million as of december 31 , 2016 and 2015 , respectively .
as of december 31 , 2016 , system energy , in connection with the grand gulf sale and leaseback transactions , had future minimum lease payments ( reflecting an implicit rate of 5.13% ( 5.13 % ) ) that are recorded as long-term debt , as follows : amount ( in thousands ) .
| amount ( in thousands )
------------------------------------------- | -----------------------
2017 | $ 17188
2018 | 17188
2019 | 17188
2020 | 17188
2021 | 17188
years thereafter | 257812
total | 343752
less : amount representing interest | 309393
present value of net minimum lease payments | $ 34359 |
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dd4be687c | note 17 .
accumulated other comprehensive losses : pmi's accumulated other comprehensive losses , net of taxes , consisted of the following: .
( losses ) earnings ( in millions ) | ( losses ) earnings 2017 | ( losses ) earnings 2016 | 2015
-------------------------------------------- | ------------------------ | ------------------------ | ----------------
currency translation adjustments | $ -5761 ( 5761 ) | $ -6091 ( 6091 ) | $ -6129 ( 6129 )
pension and other benefits | -2816 ( 2816 ) | -3565 ( 3565 ) | -3332 ( 3332 )
derivatives accounted for as hedges | 42 | 97 | 59
total accumulated other comprehensive losses | $ -8535 ( 8535 ) | $ -9559 ( 9559 ) | $ -9402 ( 9402 )
reclassifications from other comprehensive earnings the movements in accumulated other comprehensive losses and the related tax impact , for each of the components above , that are due to current period activity and reclassifications to the income statement are shown on the consolidated statements of comprehensive earnings for the years ended december 31 , 2017 , 2016 , and 2015 .
for the years ended december 31 , 2017 , 2016 , and 2015 , $ 2 million , $ ( 5 ) million and $ 1 million of net currency translation adjustment gains/ ( losses ) were transferred from other comprehensive earnings to marketing , administration and research costs in the consolidated statements of earnings , respectively , upon liquidation of subsidiaries .
for additional information , see note 13 .
benefit plans and note 15 .
financial instruments for disclosures related to pmi's pension and other benefits and derivative financial instruments .
note 18 .
contingencies : tobacco-related litigation legal proceedings covering a wide range of matters are pending or threatened against us , and/or our subsidiaries , and/or our indemnitees in various jurisdictions .
our indemnitees include distributors , licensees and others that have been named as parties in certain cases and that we have agreed to defend , as well as to pay costs and some or all of judgments , if any , that may be entered against them .
pursuant to the terms of the distribution agreement between altria group , inc .
( "altria" ) and pmi , pmi will indemnify altria and philip morris usa inc .
( "pm usa" ) , a u.s .
tobacco subsidiary of altria , for tobacco product claims based in substantial part on products manufactured by pmi or contract manufactured for pmi by pm usa , and pm usa will indemnify pmi for tobacco product claims based in substantial part on products manufactured by pm usa , excluding tobacco products contract manufactured for pmi .
it is possible that there could be adverse developments in pending cases against us and our subsidiaries .
an unfavorable outcome or settlement of pending tobacco-related litigation could encourage the commencement of additional litigation .
damages claimed in some of the tobacco-related litigation are significant and , in certain cases in brazil , canada and nigeria , range into the billions of u.s .
dollars .
the variability in pleadings in multiple jurisdictions , together with the actual experience of management in litigating claims , demonstrate that the monetary relief that may be specified in a lawsuit bears little relevance to the ultimate outcome .
much of the tobacco-related litigation is in its early stages , and litigation is subject to uncertainty .
however , as discussed below , we have to date been largely successful in defending tobacco-related litigation .
we and our subsidiaries record provisions in the consolidated financial statements for pending litigation when we determine that an unfavorable outcome is probable and the amount of the loss can be reasonably estimated .
at the present time , while it is reasonably possible that an unfavorable outcome in a case may occur , after assessing the information available to it ( i ) management has not concluded that it is probable that a loss has been incurred in any of the pending tobacco-related cases ; ( ii ) management is unable to estimate the possible loss or range of loss for any of the pending tobacco-related cases ; and ( iii ) accordingly , no estimated loss has been accrued in the consolidated financial statements for unfavorable outcomes in these cases , if any .
legal defense costs are expensed as incurred. |
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dd4bea698 | hologic , inc .
notes to consolidated financial statements ( continued ) ( in thousands , except per share data ) determination of the measurement date for the market price of acquirer securities issued in a purchase business combination .
the components and allocation of the purchase price , consists of the following approximate amounts: .
net tangible assets acquired as of july 13 2006 | $ 800
----------------------------------------------- | --------
in-process research and development | 10200
developed technology and know how | 39500
customer relationship | 15700
trade name | 3300
order backlog | 800
deferred income taxes | 4400
goodwill | 145900
estimated purchase price | $ 220600
the company has begun to assess and formulate a plan to restructure certain of r2 2019s historical activities .
as of the acquisition date the company recorded a liability of approximately $ 798 in accordance with eitf issue no .
95-3 , recognition of liabilities in connection with a purchase business combination , related to the termination of certain employees and loss related to the abandonment of certain lease space under this plan of which approximately $ 46 has been paid as of september 30 , 2006 .
the company believes this plan will be finalized within one year from the acquisition date and will record any additional liabilities at such time resulting in an increase to goodwill .
the final purchase price allocations will be completed within one year of the acquisition and any adjustments are not expected to have a material impact on the company 2019s financial position or results of operation .
as part of the purchase price allocation , all intangible assets that were a part of the acquisition were identified and valued .
it was determined that only customer relationships , trademarks and developed technology had separately identifiable values .
customer relationships represent r2 2019s strong active customer base , dominant market position and strong partnership with several large companies .
trademarks represent the r2 product names that the company intends to continue to use .
developed technology represents currently marketable purchased products that the company continues to resell as well as utilize to enhance and incorporate into the company 2019s existing products .
the estimated $ 10200 of purchase price allocated to in-process research and development projects primarily related to r2s digital cad products .
the projects are expected to add direct digital algorithm capabilities as well as a new platform technology to analyze images and breast density measurement .
the project is approximately 20% ( 20 % ) complete and the company expects to spend approximately $ 3100 over the year to complete .
the deferred income tax asset relates to the tax effect of acquired net operating loss carry forwards that the company believes are realizable partially offset by acquired identifiable intangible assets , and fair value adjustments to acquired inventory as such amounts are not deductible for tax purposes .
acquisition of suros surgical systems , inc .
on july 27 , 2006 , the company completed the acquisition of suros surgical systems , inc. , pursuant to an agreement and plan of merger dated april 17 , 2006 .
the results of operations for suros have been included in the company 2019s consolidated financial statements from the date of acquisition as part of its mammography business segment .
suros surgical , located in indianapolis , indiana , develops , manufactures and sells minimally invasive interventional breast biopsy technology and products for biopsy , tissue removal and biopsy site marking. |
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dd4c5feac | notes to the consolidated financial statements union pacific corporation and subsidiary companies for purposes of this report , unless the context otherwise requires , all references herein to the 201ccorporation 201d , 201ccompany 201d , 201cupc 201d , 201cwe 201d , 201cus 201d , and 201cour 201d mean union pacific corporation and its subsidiaries , including union pacific railroad company , which will be separately referred to herein as 201cuprr 201d or the 201crailroad 201d .
1 .
nature of operations operations and segmentation 2013 we are a class i railroad operating in the u.s .
our network includes 32084 route miles , linking pacific coast and gulf coast ports with the midwest and eastern u.s .
gateways and providing several corridors to key mexican gateways .
we own 26064 miles and operate on the remainder pursuant to trackage rights or leases .
we serve the western two-thirds of the country and maintain coordinated schedules with other rail carriers for the handling of freight to and from the atlantic coast , the pacific coast , the southeast , the southwest , canada , and mexico .
export and import traffic is moved through gulf coast and pacific coast ports and across the mexican and canadian borders .
the railroad , along with its subsidiaries and rail affiliates , is our one reportable operating segment .
although we provide and analyze revenue by commodity group , we treat the financial results of the railroad as one segment due to the integrated nature of our rail network .
the following table provides freight revenue by commodity group: .
millions | 2015 | 2014 | 2013
------------------------ | ------- | ------- | -------
agricultural products | $ 3581 | $ 3777 | $ 3276
automotive | 2154 | 2103 | 2077
chemicals | 3543 | 3664 | 3501
coal | 3237 | 4127 | 3978
industrial products | 3808 | 4400 | 3822
intermodal | 4074 | 4489 | 4030
total freight revenues | $ 20397 | $ 22560 | $ 20684
other revenues | 1416 | 1428 | 1279
total operating revenues | $ 21813 | $ 23988 | $ 21963
although our revenues are principally derived from customers domiciled in the u.s. , the ultimate points of origination or destination for some products transported by us are outside the u.s .
each of our commodity groups includes revenue from shipments to and from mexico .
included in the above table are freight revenues from our mexico business which amounted to $ 2.2 billion in 2015 , $ 2.3 billion in 2014 , and $ 2.1 billion in 2013 .
basis of presentation 2013 the consolidated financial statements are presented in accordance with accounting principles generally accepted in the u.s .
( gaap ) as codified in the financial accounting standards board ( fasb ) accounting standards codification ( asc ) .
certain prior period amounts in the statement of cash flows and income tax footnote have been aggregated or disaggregated further to conform to the current period financial presentation .
2 .
significant accounting policies principles of consolidation 2013 the consolidated financial statements include the accounts of union pacific corporation and all of its subsidiaries .
investments in affiliated companies ( 20% ( 20 % ) to 50% ( 50 % ) owned ) are accounted for using the equity method of accounting .
all intercompany transactions are eliminated .
we currently have no less than majority-owned investments that require consolidation under variable interest entity requirements .
cash and cash equivalents 2013 cash equivalents consist of investments with original maturities of three months or less .
accounts receivable 2013 accounts receivable includes receivables reduced by an allowance for doubtful accounts .
the allowance is based upon historical losses , credit worthiness of customers , and current |
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dd4bd7f7a | adobe systems incorporated notes to consolidated financial statements ( continued ) we review our goodwill for impairment annually , or more frequently , if facts and circumstances warrant a review .
we completed our annual impairment test in the second quarter of fiscal 2013 .
we elected to use the step 1 quantitative assessment for our three reporting units 2014digital media , digital marketing and print and publishing 2014and determined that there was no impairment of goodwill .
there is no significant risk of material goodwill impairment in any of our reporting units , based upon the results of our annual goodwill impairment test .
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 2013 , 2012 or 2011 .
our intangible assets are amortized over their estimated useful lives of 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 | 10
trademarks | 8
acquired rights to use technology | 8
localization | 1
other intangibles | 3
software development costs capitalization of software development costs for software to be sold , leased , or otherwise marketed begins upon the establishment of technological feasibility , which is generally the completion of a working prototype that has been certified as having no critical bugs and is a release candidate .
amortization begins once the software is ready for its intended use , generally based on the pattern in which the economic benefits will be consumed .
to date , software development costs incurred between completion of a working prototype and general availability of the related product have not been material .
internal use software we capitalize costs associated with customized internal-use software systems that have reached the application development stage .
such capitalized costs include external direct costs utilized in developing or obtaining the applications and payroll and payroll-related expenses for employees , who are directly associated with the development of the applications .
capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose .
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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dd4c3eb94 | note 18 2013 earnings per share ( eps ) basic eps is calculated by dividing net earnings attributable to allegion plc by the weighted-average number of ordinary shares outstanding for the applicable period .
diluted eps is calculated after adjusting the denominator of the basic eps calculation for the effect of all potentially dilutive ordinary shares , which in the company 2019s case , includes shares issuable under share-based compensation plans .
the following table summarizes the weighted-average number of ordinary shares outstanding for basic and diluted earnings per share calculations: .
in millions | 2018 | 2017 | 2016
------------------------------------------- | ---- | ---- | ----
weighted-average number of basic shares | 95.0 | 95.1 | 95.8
shares issuable under incentive stock plans | 0.7 | 0.9 | 1.1
weighted-average number of diluted shares | 95.7 | 96.0 | 96.9
at december 31 , 2018 , 0.1 million stock options were excluded from the computation of weighted-average diluted shares outstanding because the effect of including these shares would have been anti-dilutive .
note 19 2013 net revenues net revenues are recognized based on the satisfaction of performance obligations under the terms of a contract .
a performance obligation is a promise in a contract to transfer control of a distinct product or to provide a service , or a bundle of products or services , to a customer , and is the unit of account under asc 606 .
the company has two principal revenue streams , tangible product sales and services .
approximately 99% ( 99 % ) of consolidated net revenues involve contracts with a single performance obligation , which is the transfer of control of a product or bundle of products to a customer .
transfer of control typically occurs when goods are shipped from the company's facilities or at other predetermined control transfer points ( for instance , destination terms ) .
net revenues are measured as the amount of consideration expected to be received in exchange for transferring control of the products and takes into account variable consideration , such as sales incentive programs including discounts and volume rebates .
the existence of these programs does not preclude revenue recognition but does require the company's best estimate of the variable consideration to be made based on expected activity , as these items are reserved for as a deduction to net revenues over time based on the company's historical rates of providing these incentives and annual forecasted sales volumes .
the company also offers a standard warranty with most product sales and the value of such warranty is included in the contractual price .
the corresponding cost of the warranty obligation is accrued as a liability ( see note 20 ) .
the company's remaining net revenues involve services , including installation and consulting .
unlike the single performance obligation to ship a product or bundle of products , the service revenue stream delays revenue recognition until the service performance obligations are satisfied .
in some instances , customer acceptance provisions are included in sales arrangements to give the buyer the ability to ensure the service meets the criteria established in the order .
in these instances , revenue recognition is deferred until the performance obligations are satisfied , which could include acceptance terms specified in the arrangement being fulfilled through customer acceptance or a demonstration that established criteria have been satisfied .
during the year ended december 31 , 2018 , no adjustments related to performance obligations satisfied in previous periods were recorded .
upon adoption of asc 606 , the company used the practical expedients to omit the disclosure of remaining performance obligations for contracts with an original expected duration of one year or less and for contracts where the company has the right to invoice for performance completed to date .
the transaction price is not adjusted for the effects of a significant financing component , as the time period between control transfer of goods and services is less than one year .
sales , value-added and other similar taxes collected by the company are excluded from net revenues .
the company has also elected to account for shipping and handling activities that occur after control of the related goods transfers as fulfillment activities instead of performance obligations .
these activities are included in cost of goods sold in the consolidated statements of comprehensive income .
the company 2019s payment terms are generally consistent with the industries in which their businesses operate .
the following table shows the company's net revenues for the years ended december 31 , based on the two principal revenue streams , tangible product sales and services , disaggregated by business segment .
net revenues are shown by tangible product sales and services , as contract terms , conditions and economic factors affecting the nature , amount , timing and uncertainty around revenue recognition and cash flows are substantially similar within each of the two principal revenue streams: |
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dd4bb60a0 | 2022 international .
in general , our international markets are less advanced with respect to the current technologies deployed for wireless services .
as a result , demand for our communications sites is driven by continued voice network investments , new market entrants and initial 3g data network deployments .
for example , in india , nationwide voice networks continue to be deployed as wireless service providers are beginning their initial investments in 3g data networks , as a result of recent spectrum auctions .
in mexico and brazil , where nationwide voice networks have been deployed , some incumbent wireless service providers continue to invest in their 3g data networks , and recent spectrum auctions have enabled other incumbent wireless service providers and new market entrants to begin their initial investments in 3g data networks .
in markets such as chile and peru , recent spectrum auctions have attracted new market entrants , who are expected to begin their investment in deploying nationwide voice and 3g data networks .
we believe demand for our tower sites will continue in our international markets as wireless service providers seek to remain competitive by increasing the coverage of their networks while also investing in next generation data networks .
rental and management operations new site revenue growth .
during the year ended december 31 , 2010 , we grew our portfolio of communications sites through acquisitions and construction activities , including the acquisition and construction of approximately 7800 sites .
we continue to evaluate opportunities to acquire larger communications site portfolios , both domestically and internationally , that we believe we can effectively integrate into our existing portfolio. .
new sites ( acquired or constructed ) | 2010 | 2009 | 2008
------------------------------------- | ---- | ---- | ----
domestic | 947 | 528 | 160
international ( 1 ) | 6865 | 3022 | 801
( 1 ) the majority of sites acquired or constructed internationally during 2010 and 2009 were in india and our newly launched operations in chile , colombia and peru .
network development services segment revenue growth .
as we continue to focus on growing our rental and management operations , we anticipate that our network development services revenue will continue to represent a small percentage of our total revenues .
through our network development services segment , we offer tower-related services , including site acquisition , zoning and permitting services and structural analysis services , which primarily support our site leasing business and the addition of new tenants and equipment on our sites .
rental and management operations expenses .
our rental and management operations expenses include our direct site level expenses and consist primarily of ground rent , property taxes , repairs and maintenance and utilities .
these segment level expenses exclude all segment and corporate level selling , general , administrative and development expenses , which are aggregated into one line item entitled selling , general , administrative and development expense .
in general , our rental and management segment level selling , general and administrative expenses do not significantly increase as a result of adding incremental tenants to our legacy sites and typically increase only modestly year-over-year .
as a result , leasing additional space to new tenants on our legacy sites provides significant incremental cash flow .
in geographic areas where we have recently launched operations or are focused on materially expanding our site footprint , we may incur additional segment level selling , general and administrative expenses as we increase our presence in these areas .
our profit margin growth is therefore positively impacted by the addition of new tenants to our legacy sites and can be temporarily diluted by our development activities .
reit election .
as we review our tax strategy and assess the utilization of our federal and state nols , we are actively considering an election to a reit for u.s .
federal and , where applicable , state income tax purposes .
we may make the determination to elect reit status for the taxable year beginning january 1 , 2012 , as early as the second half of 2011 , subject to the approval of our board of directors , although there is no certainty as to the timing of a reit election or whether we will make a reit election at all. |
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dd4c29028 | the discount rate assumption was determined for the pension and postretirement benefit plans independently .
at year-end 2011 , the company began using an approach that approximates the process of settlement of obligations tailored to the plans 2019 expected cash flows by matching the plans 2019 cash flows to the coupons and expected maturity values of individually selected bonds .
the yield curve was developed for a universe containing the majority of u.s.-issued aa-graded corporate bonds , all of which were non callable ( or callable with make-whole provisions ) .
historically , for each plan , the discount rate was developed as the level equivalent rate that would produce the same present value as that using spot rates aligned with the projected benefit payments .
the expected long-term rate of return on plan assets is based on historical and projected rates of return , prior to administrative and investment management fees , for current and planned asset classes in the plans 2019 investment portfolios .
assumed projected rates of return for each of the plans 2019 projected asset classes were selected after analyzing historical experience and future expectations of the returns and volatility of the various asset classes .
based on the target asset allocation for each asset class , the overall expected rate of return for the portfolio was developed , adjusted for historical and expected experience of active portfolio management results compared to the benchmark returns and for the effect of expenses paid from plan assets .
the company 2019s pension expense increases as the expected return on assets decreases .
in the determination of year end 2014 projected benefit plan obligations , the company adopted a new table based on the society of actuaries rp 2014 mortality table including a generational bb-2d projection scale .
the adoption resulted in a significant increase to pension and other postretirement benefit plans 2019 projected benefit obligations .
assumed health care cost trend rates have a significant effect on the amounts reported for the other postretirement benefit plans .
the health care cost trend rate is based on historical rates and expected market conditions .
a one-percentage-point change in assumed health care cost trend rates would have the following effects : one-percentage-point increase one-percentage-point decrease effect on total of service and interest cost components .
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$ 5943 $ ( 4887 ) effect on other postretirement benefit obligation .
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$ 105967 $ ( 86179 ) .
| one-percentage-point increase | one-percentage-point decrease
------------------------------------------------------- | ----------------------------- | -----------------------------
effect on total of service and interest cost components | $ 5943 | $ -4887 ( 4887 )
effect on other postretirement benefit obligation | $ 105967 | $ -86179 ( 86179 )
the discount rate assumption was determined for the pension and postretirement benefit plans independently .
at year-end 2011 , the company began using an approach that approximates the process of settlement of obligations tailored to the plans 2019 expected cash flows by matching the plans 2019 cash flows to the coupons and expected maturity values of individually selected bonds .
the yield curve was developed for a universe containing the majority of u.s.-issued aa-graded corporate bonds , all of which were non callable ( or callable with make-whole provisions ) .
historically , for each plan , the discount rate was developed as the level equivalent rate that would produce the same present value as that using spot rates aligned with the projected benefit payments .
the expected long-term rate of return on plan assets is based on historical and projected rates of return , prior to administrative and investment management fees , for current and planned asset classes in the plans 2019 investment portfolios .
assumed projected rates of return for each of the plans 2019 projected asset classes were selected after analyzing historical experience and future expectations of the returns and volatility of the various asset classes .
based on the target asset allocation for each asset class , the overall expected rate of return for the portfolio was developed , adjusted for historical and expected experience of active portfolio management results compared to the benchmark returns and for the effect of expenses paid from plan assets .
the company 2019s pension expense increases as the expected return on assets decreases .
in the determination of year end 2014 projected benefit plan obligations , the company adopted a new table based on the society of actuaries rp 2014 mortality table including a generational bb-2d projection scale .
the adoption resulted in a significant increase to pension and other postretirement benefit plans 2019 projected benefit obligations .
assumed health care cost trend rates have a significant effect on the amounts reported for the other postretirement benefit plans .
the health care cost trend rate is based on historical rates and expected market conditions .
a one-percentage-point change in assumed health care cost trend rates would have the following effects : one-percentage-point increase one-percentage-point decrease effect on total of service and interest cost components .
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$ 5943 $ ( 4887 ) effect on other postretirement benefit obligation .
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$ 105967 $ ( 86179 ) |
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dd4c111ee | the aes corporation notes to consolidated financial statements 2014 ( continued ) december 31 , 2011 , 2010 , and 2009 the preliminary allocation of the purchase price to the fair value of assets acquired and liabilities assumed is as follows ( in millions ) : .
cash | $ 116
----------------------------------------- | --------------
accounts receivable | 278
inventory | 124
other current assets | 41
property plant and equipment | 2549
intangible assets subject to amortization | 166
intangible assets 2014indefinite-lived | 5
regulatory assets | 201
other noncurrent assets | 58
current liabilities | -401 ( 401 )
non-recourse debt | -1255 ( 1255 )
deferred taxes | -558 ( 558 )
regulatory liabilities | -117 ( 117 )
other noncurrent liabilities | -195 ( 195 )
redeemable preferred stock | -18 ( 18 )
net identifiable assets acquired | 994
goodwill | 2489
net assets acquired | $ 3483
at december 31 , 2011 , the assets acquired and liabilities assumed in the acquisition were recorded at provisional amounts based on the preliminary purchase price allocation .
the company is in the process of obtaining additional information to identify and measure all assets acquired and liabilities assumed in the acquisition within the measurement period , which could be up to one year from the date of acquisition .
such provisional amounts will be retrospectively adjusted to reflect any new information about facts and circumstances that existed at the acquisition date that , if known , would have affected the measurement of these amounts .
additionally , key input assumptions and their sensitivity to the valuation of assets acquired and liabilities assumed are currently being reviewed by management .
it is likely that the value of the generation business related property , plant and equipment , the intangible asset related to the electric security plan with its regulated customers and long-term coal contracts , the 4.9% ( 4.9 % ) equity ownership interest in the ohio valley electric corporation , and deferred taxes could change as the valuation process is finalized .
dpler , dpl 2019s wholly-owned competitive retail electric service ( 201ccres 201d ) provider , will also likely have changes in its initial purchase price allocation for the valuation of its intangible assets for the trade name , and customer relationships and contracts .
as noted in the table above , the preliminary purchase price allocation has resulted in the recognition of $ 2.5 billion of goodwill .
factors primarily contributing to a price in excess of the fair value of the net tangible and intangible assets include , but are not limited to : the ability to expand the u.s .
utility platform in the mid-west market , the ability to capitalize on utility management experience gained from ipl , enhanced ability to negotiate with suppliers of fuel and energy , the ability to capture value associated with aes 2019 u.s .
tax position , a well- positioned generating fleet , the ability of dpl to leverage its assembled workforce to take advantage of growth opportunities , etc .
our ability to realize the benefit of dpl 2019s goodwill depends on the realization of expected benefits resulting from a successful integration of dpl into aes 2019 existing operations and our ability to respond to the changes in the ohio utility market .
for example , utilities in ohio continue to face downward pressure on operating margins due to the evolving regulatory environment , which is moving towards a market-based competitive pricing mechanism .
at the same time , the declining energy prices are also reducing operating |
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dd4b902a6 | december 18 , 2007 , we issued an additional 23182197 shares of common stock to citadel .
the issuances were exempt from registration pursuant to section 4 ( 2 ) of the securities act of 1933 , and each purchaser has represented to us that it is an 201caccredited investor 201d as defined in regulation d promulgated under the securities act of 1933 , and that the common stock was being acquired for investment .
we did not engage in a general solicitation or advertising with regard to the issuances of the common stock and have not offered securities to the public in connection with the issuances .
see item 1 .
business 2014citadel investment .
performance graph the following performance graph shows the cumulative total return to a holder of the company 2019s common stock , assuming dividend reinvestment , compared with the cumulative total return , assuming dividend reinvestment , of the standard & poor 2019s ( 201cs&p 201d ) 500 and the s&p super cap diversified financials during the period from december 31 , 2002 through december 31 , 2007. .
| 12/02 | 12/03 | 12/04 | 12/05 | 12/06 | 12/07
------------------------------------ | ------ | ------ | ------ | ------ | ------ | ------
e*trade financial corporation | 100.00 | 260.29 | 307.61 | 429.22 | 461.32 | 73.05
s&p 500 | 100.00 | 128.68 | 142.69 | 149.70 | 173.34 | 182.87
s&p super cap diversified financials | 100.00 | 139.29 | 156.28 | 170.89 | 211.13 | 176.62
2022 $ 100 invested on 12/31/02 in stock or index-including reinvestment of dividends .
fiscal year ending december 31 .
2022 copyright a9 2008 , standard & poor 2019s , a division of the mcgraw-hill companies , inc .
all rights reserved .
www.researchdatagroup.com/s&p.htm |
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dd4c4fb38 | 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
---------------------------- | ------------------------- | --------------------- | ------------ | ---------------------
2011 | 100.00 | 100.00 | 100.00 | 100.00
2012 | 132.64 | 116.41 | 116.00 | 119.34
2013 | 248.53 | 165.47 | 153.58 | 195.83
2014 | 243.79 | 188.69 | 174.60 | 192.42
2015 | 272.59 | 200.32 | 177.01 | 264.96
2016 | 313.45 | 216.54 | 198.18 | 277.56 |
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dd4c00dee | part ii item 5 .
market for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities .
equity compensation plans 2019 information is incorporated by reference from part iii , item 12 , 201csecurity ownership of certain beneficial owners and management and related stockholder matters , 201d of this document , and should be considered an integral part of item 5 .
at january 31 , 2016 , there were 84607 shareholders of record .
3m 2019s stock is listed on the new york stock exchange , inc .
( nyse ) , the chicago stock exchange , inc. , and the swx swiss exchange .
cash dividends declared and paid totaled $ 1.025 per share for each of the second , third , and fourth quarters of 2015 .
cash dividends declared in the fourth quarter of 2014 included a dividend paid in november 2014 of $ 0.855 per share and a dividend paid in march 2015 of $ 1.025 per share .
cash dividends declared and paid totaled $ 0.855 per share for each of the second and third quarters of 2014 .
cash dividends declared in the fourth quarter of 2013 include a dividend paid in march 2014 of $ 0.855 per share .
stock price comparisons follow : stock price comparisons ( nyse composite transactions ) .
( per share amounts ) | first quarter | second quarter | third quarter | fourth quarter | total
--------------------- | ------------- | -------------- | ------------- | -------------- | --------
2015 high | $ 170.50 | $ 167.70 | $ 157.94 | $ 160.09 | $ 170.50
2015 low | 157.74 | 153.92 | 134.00 | 138.57 | 134.00
2014 high | $ 139.29 | $ 145.53 | $ 147.87 | $ 168.16 | $ 168.16
2014 low | 123.61 | 132.02 | 138.43 | 130.60 | 123.61
issuer purchases of equity securities repurchases of 3m common stock are made to support the company 2019s stock-based employee compensation plans and for other corporate purposes .
in february 2014 , 3m 2019s board of directors authorized the repurchase of up to $ 12 billion of 3m 2019s outstanding common stock , with no pre-established end date .
in february 2016 , 3m 2019s board of directors replaced the company 2019s february 2014 repurchase program with a new repurchase program .
this new program authorizes the repurchase of up to $ 10 billion of 3m 2019s outstanding common stock , with no pre-established end date. |
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dd4c515dc | management 2019s discussion and analysis operating expenses our operating expenses are primarily influenced by compensation , headcount and levels of business activity .
in addition , see 201cuse of estimates 201d for expenses that may arise from litigation and regulatory proceedings .
compensation and benefits includes salaries , discretionary compensation , amortization of equity awards and other items such as benefits .
discretionary compensation is significantly impacted by , among other factors , the level of net revenues , overall financial performance , prevailing labor markets , business mix , the structure of our share-based compensation programs and the external environment .
the table below presents our operating expenses and total staff ( which includes employees , consultants and temporary staff ) . .
$ in millions | year ended december 2014 | year ended december 2013 | year ended december 2012
------------------------------------------------ | ------------------------ | ------------------------ | ------------------------
compensation and benefits | $ 12691 | $ 12613 | $ 12944
brokerage clearing exchange anddistribution fees | 2501 | 2341 | 2208
market development | 549 | 541 | 509
communications and technology | 779 | 776 | 782
depreciation and amortization | 1337 | 1322 | 1738
occupancy | 827 | 839 | 875
professional fees | 902 | 930 | 867
insurance reserves1 | 2014 | 176 | 598
other expenses | 2585 | 2931 | 2435
total non-compensation expenses | 9480 | 9856 | 10012
total operating expenses | $ 22171 | $ 22469 | $ 22956
total staff at period-end | 34000 | 32900 | 32400
1 .
consists of changes in reserves related to our americas reinsurance business , including interest credited to policyholder account balances , and expenses related to property catastrophe reinsurance claims .
in april 2013 , we completed the sale of a majority stake in our americas reinsurance business and no longer consolidate this business .
2014 versus 2013 .
operating expenses on the consolidated statements of earnings were $ 22.17 billion for 2014 , essentially unchanged compared with 2013 .
compensation and benefits expenses on the consolidated statements of earnings were $ 12.69 billion for 2014 , essentially unchanged compared with 2013 .
the ratio of compensation and benefits to net revenues for 2014 was 36.8% ( 36.8 % ) compared with 36.9% ( 36.9 % ) for 2013 .
total staff increased 3% ( 3 % ) during 2014 .
non-compensation expenses on the consolidated statements of earnings were $ 9.48 billion for 2014 , 4% ( 4 % ) lower than 2013 .
the decrease compared with 2013 included a decrease in other expenses , due to lower net provisions for litigation and regulatory proceedings and lower operating expenses related to consolidated investments , as well as a decline in insurance reserves , reflecting the sale of our americas reinsurance business in 2013 .
these decreases were partially offset by an increase in brokerage , clearing , exchange and distribution fees .
net provisions for litigation and regulatory proceedings for 2014 were $ 754 million compared with $ 962 million for 2013 ( both primarily comprised of net provisions for mortgage-related matters ) .
2014 included a charitable contribution of $ 137 million to goldman sachs gives , our donor-advised fund .
compensation was reduced to fund this charitable contribution to goldman sachs gives .
the firm asks its participating managing directors to make recommendations regarding potential charitable recipients for this contribution .
2013 versus 2012 .
operating expenses on the consolidated statements of earnings were $ 22.47 billion for 2013 , 2% ( 2 % ) lower than 2012 .
compensation and benefits expenses on the consolidated statements of earnings were $ 12.61 billion for 2013 , 3% ( 3 % ) lower compared with $ 12.94 billion for 2012 .
the ratio of compensation and benefits to net revenues for 2013 was 36.9% ( 36.9 % ) compared with 37.9% ( 37.9 % ) for 2012 .
total staff increased 2% ( 2 % ) during 2013 .
non-compensation expenses on the consolidated statements of earnings were $ 9.86 billion for 2013 , 2% ( 2 % ) lower than 2012 .
the decrease compared with 2012 included a decline in insurance reserves , reflecting the sale of our americas reinsurance business , and a decrease in depreciation and amortization expenses , primarily reflecting lower impairment charges and lower operating expenses related to consolidated investments .
these decreases were partially offset by an increase in other expenses , due to higher net provisions for litigation and regulatory proceedings , and higher brokerage , clearing , exchange and distribution fees .
net provisions for litigation and regulatory proceedings for 2013 were $ 962 million ( primarily comprised of net provisions for mortgage-related matters ) compared with $ 448 million for 2012 ( including a settlement with the board of governors of the federal reserve system ( federal reserve board ) regarding the independent foreclosure review ) .
2013 included a charitable contribution of $ 155 million to goldman sachs gives , our donor-advised fund .
compensation was reduced to fund this charitable contribution to goldman sachs gives .
the firm asks its participating managing directors to make recommendations regarding potential charitable recipients for this contribution .
38 goldman sachs 2014 annual report |
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dd4bf1060 | stock total return performance the following graph compares our total return to stockholders with the returns of the standard & poor 2019s composite 500 index ( 201cs&p 500 201d ) and the dow jones us select health care providers index ( 201cpeer group 201d ) for the five years ended december 31 , 2018 .
the graph assumes an investment of $ 100 in each of our common stock , the s&p 500 , and the peer group on december 31 , 2013 , and that dividends were reinvested when paid. .
| 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | 12/31/2017 | 12/31/2018
---------- | ---------- | ---------- | ---------- | ---------- | ---------- | ----------
hum | $ 100 | $ 140 | $ 176 | $ 202 | $ 247 | $ 287
s&p 500 | $ 100 | $ 114 | $ 115 | $ 129 | $ 157 | $ 150
peer group | $ 100 | $ 128 | $ 135 | $ 137 | $ 173 | $ 191
the stock price performance included in this graph is not necessarily indicative of future stock price performance. |
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dd4b94856 | the goldman sachs group , inc .
and subsidiaries management 2019s discussion and analysis investing & lending investing & lending includes our investing activities and the origination of loans , including our relationship lending activities , to provide financing to clients .
these investments and loans are typically longer-term in nature .
we make investments , some of which are consolidated , including through our merchant banking business and our special situations group , in debt securities and loans , public and private equity securities , infrastructure and real estate entities .
some of these investments are made indirectly through funds that we manage .
we also make unsecured and secured loans to retail clients through our digital platforms , marcus and goldman sachs private bank select ( gs select ) , respectively .
the table below presents the operating results of our investing & lending segment. .
$ in millions | year ended december 2017 | year ended december 2016 | year ended december 2015
------------------------- | ------------------------ | ------------------------ | ------------------------
equity securities | $ 4578 | $ 2573 | $ 3781
debt securities and loans | 2003 | 1507 | 1655
total net revenues | 6581 | 4080 | 5436
operating expenses | 2796 | 2386 | 2402
pre-taxearnings | $ 3785 | $ 1694 | $ 3034
operating environment .
during 2017 , generally higher global equity prices and tighter credit spreads contributed to a favorable environment for our equity and debt investments .
results also reflected net gains from company- specific events , including sales , and corporate performance .
this environment contrasts with 2016 , where , in the first quarter of 2016 , market conditions were difficult and corporate performance , particularly in the energy sector , was impacted by a challenging macroeconomic environment .
however , market conditions improved during the rest of 2016 as macroeconomic concerns moderated .
if macroeconomic concerns negatively affect company-specific events or corporate performance , or if global equity markets decline or credit spreads widen , net revenues in investing & lending would likely be negatively impacted .
2017 versus 2016 .
net revenues in investing & lending were $ 6.58 billion for 2017 , 61% ( 61 % ) higher than 2016 .
net revenues in equity securities were $ 4.58 billion , including $ 3.82 billion of net gains from private equities and $ 762 million in net gains from public equities .
net revenues in equity securities were 78% ( 78 % ) higher than 2016 , primarily reflecting a significant increase in net gains from private equities , which were positively impacted by company- specific events and corporate performance .
in addition , net gains from public equities were significantly higher , as global equity prices increased during the year .
of the $ 4.58 billion of net revenues in equity securities , approximately 60% ( 60 % ) was driven by net gains from company-specific events , such as sales , and public equities .
net revenues in debt securities and loans were $ 2.00 billion , 33% ( 33 % ) higher than 2016 , reflecting significantly higher net interest income ( 2017 included approximately $ 1.80 billion of net interest income ) .
net revenues in debt securities and loans for 2017 also included an impairment of approximately $ 130 million on a secured operating expenses were $ 2.80 billion for 2017 , 17% ( 17 % ) higher than 2016 , due to increased compensation and benefits expenses , reflecting higher net revenues , increased expenses related to consolidated investments , and increased expenses related to marcus .
pre-tax earnings were $ 3.79 billion in 2017 compared with $ 1.69 billion in 2016 .
2016 versus 2015 .
net revenues in investing & lending were $ 4.08 billion for 2016 , 25% ( 25 % ) lower than 2015 .
net revenues in equity securities were $ 2.57 billion , including $ 2.17 billion of net gains from private equities and $ 402 million in net gains from public equities .
net revenues in equity securities were 32% ( 32 % ) lower than 2015 , primarily reflecting a significant decrease in net gains from private equities , driven by company-specific events and corporate performance .
net revenues in debt securities and loans were $ 1.51 billion , 9% ( 9 % ) lower than 2015 , reflecting significantly lower net revenues related to relationship lending activities , due to the impact of changes in credit spreads on economic hedges .
losses related to these hedges were $ 596 million in 2016 , compared with gains of $ 329 million in 2015 .
this decrease was partially offset by higher net gains from investments in debt instruments and higher net interest income .
see note 9 to the consolidated financial statements for further information about economic hedges related to our relationship lending activities .
operating expenses were $ 2.39 billion for 2016 , essentially unchanged compared with 2015 .
pre-tax earnings were $ 1.69 billion in 2016 , 44% ( 44 % ) lower than 2015 .
goldman sachs 2017 form 10-k 61 |
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dd4becf7e | during the year ended december 31 , 2011 , we granted 354660 performance share units having a fair value based on our grant date closing stock price of $ 28.79 .
these units are payable in stock and are subject to certain financial performance criteria .
the fair value of these performance share unit awards is based on the grant date closing stock price of each respective award grant and will apply to the number of units ultimately awarded .
the number of shares ultimately issued for each award will be based on our financial performance as compared to peer group companies over the performance period and can range from zero to 200% ( 200 % ) .
as of december 31 , 2011 , estimated share payouts for outstanding non-vested performance share unit awards ranged from 150% ( 150 % ) to 195% ( 195 % ) .
for the legacy frontier performance share units assumed at july 1 , 2011 , performance is based on market performance criteria , which is calculated as the total shareholder return achieved by hollyfrontier stockholders compared with the average shareholder return achieved by an equally-weighted peer group of independent refining companies over a three-year period .
these share unit awards are payable in stock based on share price performance relative to the defined peer group and can range from zero to 125% ( 125 % ) of the initial target award .
these performance share units were valued at july 1 , 2011 using a monte carlo valuation model , which simulates future stock price movements using key inputs including grant date and measurement date stock prices , expected stock price performance , expected rate of return and volatility of our stock price relative to the peer group over the three-year performance period .
the fair value of these performance share units at july 1 , 2011 was $ 8.6 million .
of this amount , $ 7.3 million relates to post-merger services and will be recognized ratably over the remaining service period through 2013 .
a summary of performance share unit activity and changes during the year ended december 31 , 2011 is presented below: .
performance share units | grants
----------------------------------------------- | ------------------
outstanding at january 1 2011 ( non-vested ) | 556186
granted ( 1 ) | 354660
vesting and transfer of ownership to recipients | -136058 ( 136058 )
outstanding at december 31 2011 ( non-vested ) | 774788
( 1 ) includes 225116 non-vested performance share grants under the legacy frontier plan that were outstanding and retained by hollyfrontier at july 1 , 2011 .
for the year ended december 31 , 2011 we issued 178148 shares of our common stock having a fair value of $ 2.6 million related to vested performance share units .
based on the weighted average grant date fair value of $ 20.71 there was $ 11.7 million of total unrecognized compensation cost related to non-vested performance share units .
that cost is expected to be recognized over a weighted-average period of 1.1 years .
note 7 : cash and cash equivalents and investments in marketable securities our investment portfolio at december 31 , 2011 consisted of cash , cash equivalents and investments in debt securities primarily issued by government and municipal entities .
we also hold 1000000 shares of connacher oil and gas limited common stock that was received as partial consideration upon the sale of our montana refinery in we invest in highly-rated marketable debt securities , primarily issued by government and municipal entities that have maturities at the date of purchase of greater than three months .
we also invest in other marketable debt securities with the maximum maturity or put date of any individual issue generally not greater than two years from the date of purchase .
all of these instruments , including investments in equity securities , are classified as available- for-sale .
as a result , they are reported at fair value using quoted market prices .
interest income is recorded as earned .
unrealized gains and losses , net of related income taxes , are reported as a component of accumulated other comprehensive income .
upon sale , realized gains and losses on the sale of marketable securities are computed based on the specific identification of the underlying cost of the securities sold and the unrealized gains and losses previously reported in other comprehensive income are reclassified to current earnings. |
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dd4becb14 | part i item 1 .
business our company founded in 1886 , american water works company , inc. , ( the 201ccompany , 201d 201camerican water 201d or 201caww 201d ) is a delaware holding company .
american water is the most geographically diversified , as well as the largest publicly-traded , united states water and wastewater utility company , as measured by both operating revenues and population served .
as a holding company , we conduct substantially all of our business operations through our subsidiaries .
our approximately 6400 employees provide an estimated 15 million people with drinking water , wastewater and/or other water-related services in 47 states and one canadian province .
operating segments we report our results of operations in two operating segments : the regulated businesses and the market- based operations .
additional information with respect to our operating segment results is included in the section entitled 201citem 7 2014management 2019s discussion and analysis of financial condition and results of operations , 201d and note 18 of the consolidated financial statements .
regulated businesses our primary business involves the ownership of subsidiaries that provide water and wastewater utility services to residential , commercial , industrial and other customers , including sale for resale and public authority customers .
we report the results of this business in our regulated businesses segment .
our subsidiaries that provide these services are generally subject to economic regulation by certain state commissions or other entities engaged in economic regulation , hereafter referred to as public utility commissions , or 201cpucs , 201d of the states in which we operate .
the federal and state governments also regulate environmental , health and safety , and water quality matters .
our regulated businesses segment operating revenues were $ 2674.3 million for 2014 , $ 2539.9 for 2013 , $ 2564.4 million for 2012 , accounting for 88.8% ( 88.8 % ) , 90.1% ( 90.1 % ) and 89.9% ( 89.9 % ) , respectively , of total operating revenues for the same periods .
the following table sets forth our regulated businesses operating revenues , number of customers and an estimate of population served as of december 31 , 2014 : operating revenues ( in millions ) % ( % ) of total number of customers % ( % ) of total estimated population served ( in millions ) % ( % ) of total .
new jersey | operatingrevenues ( in millions ) $ 652.3 | % ( % ) of total 24.5% ( 24.5 % ) | number ofcustomers 648066 | % ( % ) of total 20.2% ( 20.2 % ) | estimatedpopulationserved ( in millions ) 2.7 | % ( % ) of total 22.7% ( 22.7 % )
----------------------------- | ----------------------------------------- | ---------------------------------- | ------------------------- | ---------------------------------- | --------------------------------------------- | ----------------------------------
pennsylvania | 605.4 | 22.6% ( 22.6 % ) | 666415 | 20.7% ( 20.7 % ) | 2.2 | 18.5% ( 18.5 % )
missouri | 270.2 | 10.1% ( 10.1 % ) | 464498 | 14.4% ( 14.4 % ) | 1.5 | 12.7% ( 12.7 % )
illinois ( a ) | 262.3 | 9.8% ( 9.8 % ) | 312017 | 9.7% ( 9.7 % ) | 1.3 | 10.9% ( 10.9 % )
california | 209.8 | 7.8% ( 7.8 % ) | 174198 | 5.4% ( 5.4 % ) | 0.6 | 5.0% ( 5.0 % )
indiana | 200.6 | 7.5% ( 7.5 % ) | 293666 | 9.1% ( 9.1 % ) | 1.2 | 10.1% ( 10.1 % )
west virginia ( b ) | 127.0 | 4.7% ( 4.7 % ) | 170371 | 5.3% ( 5.3 % ) | 0.6 | 5.0% ( 5.0 % )
subtotal ( top seven states ) | 2327.6 | 87.0% ( 87.0 % ) | 2729231 | 84.8% ( 84.8 % ) | 10.1 | 84.9% ( 84.9 % )
other ( c ) | 346.7 | 13.0% ( 13.0 % ) | 489961 | 15.2% ( 15.2 % ) | 1.8 | 15.1% ( 15.1 % )
total regulated businesses | $ 2674.3 | 100.0% ( 100.0 % ) | 3219192 | 100.0% ( 100.0 % ) | 11.9 | 100.0% ( 100.0 % )
( a ) includes illinois-american water company , which we refer to as ilawc and american lake water company , also a regulated subsidiary in illinois. |
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dd4bc907e | management 2019s discussion and analysis of financial condition and results of operations state street corporation | 89 $ 65.35 billion and $ 87.20 billion as of december 31 , 2017 and december 31 , 2016 , respectively .
table 29 : components of average hqla by type of ( in millions ) december 31 , december 31 .
( in millions ) | december 31 2017 | december 31 2016
---------------------------- | ---------------- | ----------------
excess central bank balances | $ 33584 | $ 48407
u.s . treasuries | 10278 | 17770
other investment securities | 13422 | 15442
foreign government | 8064 | 5585
total | $ 65348 | $ 87204
with respect to highly liquid short-term investments presented in the preceding table , due to the continued elevated level of client deposits as of december 31 , 2017 , we maintained cash balances in excess of regulatory requirements governing deposits with the federal reserve of approximately $ 33.58 billion at the federal reserve , the ecb and other non-u.s .
central banks , compared to $ 48.40 billion as of december 31 , 2016 .
the lower levels of deposits with central banks as of december 31 , 2017 compared to december 31 , 2016 was due to normal deposit volatility .
liquid securities carried in our asset liquidity include securities pledged without corresponding advances from the frbb , the fhlb , and other non- u.s .
central banks .
state street bank is a member of the fhlb .
this membership allows for advances of liquidity in varying terms against high-quality collateral , which helps facilitate asset-and-liability management .
access to primary , intra-day and contingent liquidity provided by these utilities is an important source of contingent liquidity with utilization subject to underlying conditions .
as of december 31 , 2017 and december 31 , 2016 , we had no outstanding primary credit borrowings from the frbb discount window or any other central bank facility , and as of the same dates , no fhlb advances were outstanding .
in addition to the securities included in our asset liquidity , we have significant amounts of other unencumbered investment securities .
the aggregate fair value of those securities was $ 66.10 billion as of december 31 , 2017 , compared to $ 54.40 billion as of december 31 , 2016 .
these securities are available sources of liquidity , although not as rapidly deployed as those included in our asset liquidity .
measures of liquidity include lcr , nsfr and tlac which are described in "supervision and regulation" included under item 1 , business , of this form 10-k .
uses of liquidity significant uses of our liquidity could result from the following : withdrawals of client deposits ; draw- downs of unfunded commitments to extend credit or to purchase securities , generally provided through lines of credit ; and short-duration advance facilities .
such circumstances would generally arise under stress conditions including deterioration in credit ratings .
a recurring significant use of our liquidity involves our deployment of hqla from our investment portfolio to post collateral to financial institutions and participants in our agency lending program serving as sources of securities under our enhanced custody program .
we had unfunded commitments to extend credit with gross contractual amounts totaling $ 26.49 billion and $ 26.99 billion as of december 31 , 2017 and december 31 , 2016 , respectively .
these amounts do not reflect the value of any collateral .
as of december 31 , 2017 , approximately 72% ( 72 % ) of our unfunded commitments to extend credit expire within one year .
since many of our commitments are expected to expire or renew without being drawn upon , the gross contractual amounts do not necessarily represent our future cash requirements .
information about our resolution planning and the impact actions under our resolution plans could have on our liquidity is provided in "supervision and regulation" included under item 1 .
business , of this form 10-k .
funding deposits we provide products and services including custody , accounting , administration , daily pricing , foreign exchange services , cash management , financial asset management , securities finance and investment advisory services .
as a provider of these products and services , we generate client deposits , which have generally provided a stable , low-cost source of funds .
as a global custodian , clients place deposits with state street entities in various currencies .
as of december 31 , 2017 and december 31 , 2016 , approximately 60% ( 60 % ) of our average client deposit balances were denominated in u.s .
dollars , approximately 20% ( 20 % ) in eur , 10% ( 10 % ) in gbp and 10% ( 10 % ) in all other currencies .
for the past several years , we have frequently experienced higher client deposit inflows toward the end of each fiscal quarter or the end of the fiscal year .
as a result , we believe average client deposit balances are more reflective of ongoing funding than period-end balances. |
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dd4bd368c | american tower corporation and subsidiaries notes to consolidated financial statements assessments in each of the tax jurisdictions resulting from these examinations .
the company believes that adequate provisions have been made for income taxes for all periods through december 31 , 2010 .
12 .
stock-based compensation the company recognized stock-based compensation of $ 52.6 million , $ 60.7 million and $ 54.8 million for the years ended december 31 , 2010 , 2009 and 2008 , respectively .
stock-based compensation for the year ended december 31 , 2009 included $ 6.9 million related to the modification of the vesting and exercise terms for certain employee 2019s equity awards .
the company did not capitalize any stock-based compensation during the years ended december 31 , 2010 and 2009 .
summary of stock-based compensation plans 2014the company maintains equity incentive plans that provide for the grant of stock-based awards to its directors , officers and employees .
under the 2007 equity incentive plan ( 201c2007 plan 201d ) , which provides for the grant of non-qualified and incentive stock options , as well as restricted stock units , restricted stock and other stock-based awards , exercise prices in the case of non-qualified and incentive stock options are not less than the fair market value of the underlying common stock on the date of grant .
equity awards typically vest ratably over various periods , generally four years , and generally expire ten years from the date of grant .
stock options 2014as of december 31 , 2010 , the company had the ability to grant stock-based awards with respect to an aggregate of 22.0 million shares of common stock under the 2007 plan .
the fair value of each option grant is estimated on the date of grant using the black-scholes option pricing model based on the assumptions noted in the table below .
the risk-free treasury rate is based on the u.s .
treasury yield in effect at the accounting measurement date .
the expected life ( estimated period of time outstanding ) was estimated using the vesting term and historical exercise behavior of company employees .
the expected volatility was based on historical volatility for a period equal to the expected life of the stock options .
key assumptions used to apply this pricing model are as follows: .
| 2010 | 2009 | 2008
-------------------------------------------------------------- | ------------------------------------------ | ------------------------------------------ | ------------------------------------------
range of risk-free interest rate | 1.41% ( 1.41 % ) 2013 2.39% ( 2.39 % ) | 1.41% ( 1.41 % ) 2013 2.04% ( 2.04 % ) | 1.44% ( 1.44 % ) 2013 3.05% ( 3.05 % )
weighted average risk-free interest rate | 2.35% ( 2.35 % ) | 1.71% ( 1.71 % ) | 1.89% ( 1.89 % )
expected life of option grants | 4.60 years | 4.00 years | 4.00 years
range of expected volatility of underlying stock price | 37.11% ( 37.11 % ) 2013 37.48% ( 37.48 % ) | 36.00% ( 36.00 % ) 2013 36.63% ( 36.63 % ) | 28.51% ( 28.51 % ) 2013 35.30% ( 35.30 % )
weighted average expected volatility of underlying stock price | 37.14% ( 37.14 % ) | 36.23% ( 36.23 % ) | 29.10% ( 29.10 % )
expected annual dividends | n/a | n/a | n/a
the weighted average grant date fair value per share during the years ended december 31 , 2010 , 2009 and 2008 was $ 15.03 , $ 8.90 and $ 9.55 , respectively .
the intrinsic value of stock options exercised during the years ended december 31 , 2010 , 2009 and 2008 was $ 62.7 million , $ 40.1 million and $ 99.1 million , respectively .
as of december 31 , 2010 , total unrecognized compensation expense related to unvested stock options was approximately $ 27.7 million and is expected to be recognized over a weighted average period of approximately two years .
the amount of cash received from the exercise of stock options was approximately $ 129.1 million during the year ended december 31 , 2010 .
during the year ended december 31 , 2010 , the company realized approximately $ 0.3 million of state tax benefits from the exercise of stock options. |
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dd4c30b66 | assumed health care cost trend rates for the u.s .
retiree health care benefit plan as of december 31 are as follows: .
| 2017 | 2016
------------------------------------------------- | ---------------- | ----------------
assumed health care cost trend rate for next year | 7.50% ( 7.50 % ) | 6.75% ( 6.75 % )
ultimate trend rate | 5.00% ( 5.00 % ) | 5.00% ( 5.00 % )
year in which ultimate trend rate is reached | 2028 | 2024
a one percentage point increase or decrease in health care cost trend rates over all future periods would have increased or decreased the accumulated postretirement benefit obligation for the u.s .
retiree health care benefit plan as of december 31 , 2017 , by $ 1 million .
the service cost and interest cost components of 2017 plan expense would have increased or decreased by less than $ 1 million .
deferred compensation arrangements we have a deferred compensation plan that allows u.s .
employees whose base salary and management responsibility exceed a certain level to defer receipt of a portion of their cash compensation .
payments under this plan are made based on the participant 2019s distribution election and plan balance .
participants can earn a return on their deferred compensation based on notional investments in the same investment funds that are offered in our defined contribution plans .
as of december 31 , 2017 , our liability to participants of the deferred compensation plans was $ 255 million and is recorded in other long-term liabilities on our consolidated balance sheets .
this amount reflects the accumulated participant deferrals and earnings thereon as of that date .
as of december 31 , 2017 , we held $ 236 million in mutual funds related to these plans that are recorded in long-term investments on our consolidated balance sheets , and serve as an economic hedge against changes in fair values of our other deferred compensation liabilities .
we record changes in the fair value of the liability and the related investment in sg&a as discussed in note 8 .
11 .
debt and lines of credit short-term borrowings we maintain a line of credit to support commercial paper borrowings , if any , and to provide additional liquidity through bank loans .
as of december 31 , 2017 , we had a variable-rate revolving credit facility from a consortium of investment-grade banks that allows us to borrow up to $ 2 billion until march 2022 .
the interest rate on borrowings under this credit facility , if drawn , is indexed to the applicable london interbank offered rate ( libor ) .
as of december 31 , 2017 , our credit facility was undrawn and we had no commercial paper outstanding .
long-term debt we retired $ 250 million of maturing debt in march 2017 and another $ 375 million in june 2017 .
in may 2017 , we issued an aggregate principal amount of $ 600 million of fixed-rate , long-term debt .
the offering consisted of the reissuance of $ 300 million of 2.75% ( 2.75 % ) notes due in 2021 at a premium and the issuance of $ 300 million of 2.625% ( 2.625 % ) notes due in 2024 at a discount .
we incurred $ 3 million of issuance and other related costs .
the proceeds of the offerings were $ 605 million , net of the original issuance discount and premium , and were used for the repayment of maturing debt and general corporate purposes .
in november 2017 , we issued a principal amount of $ 500 million of fixed-rate , long-term debt due in 2027 .
we incurred $ 3 million of issuance and other related costs .
the proceeds of the offering were $ 494 million , net of the original issuance discount , and were used for general corporate purposes .
in may 2016 , we issued a principal amount of $ 500 million of fixed-rate , long-term debt due in 2022 .
we incurred $ 3 million of issuance and other related costs .
the proceeds of the offering were $ 499 million , net of the original issuance discount , and were used toward the repayment of a portion of $ 1.0 billion of maturing debt retired in may 2016 .
in may 2015 , we issued a principal amount of $ 500 million of fixed-rate , long-term debt due in 2020 .
we incurred $ 3 million of issuance and other related costs .
the proceeds of the offering were $ 498 million , net of the original issuance discount , and were used toward the repayment of a portion of the debt that matured in august 2015 .
we retired $ 250 million of maturing debt in april 2015 and another $ 750 million in august 2015 .
texas instruments 2022 2017 form 10-k 51 |
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dd4bcd872 | the internal revenue code .
therefore , cash needed to execute our strategy and invest in new properties , as well as to pay our debt at maturity , must come from one or more of the following sources : 2022 cash not distributed to shareholders , 2022 proceeds of property dispositions , or 2022 proceeds derived from the issuance of new debt or equity securities .
it is management 2019s intention that we continually have access to the capital resources necessary to expand and develop our business .
as a result , we intend to operate with and maintain a conservative capital structure that will allow us to maintain strong debt service coverage and fixed-charge coverage ratios as part of our commitment to investment-grade debt ratings .
we may , from time to time , seek to obtain funds by the following means : 2022 additional equity offerings , 2022 unsecured debt financing and/or mortgage financings , and 2022 other debt and equity alternatives , including formation of joint ventures , in a manner consistent with our intention to operate with a conservative debt structure .
cash and cash equivalents were $ 30.5 million and $ 35.0 million at december 31 , 2004 and december 31 , 2003 , respectively .
summary of cash flows for the year ended december 31 , 2004 ( in thousands ) .
| for the year ended december 31 2004 ( in thousands )
--------------------------------------------- | ----------------------------------------------------
cash provided by operating activities | $ 161113
cash used in investing activities | -154273 ( 154273 )
cash used by financing activities | -11333 ( 11333 )
decrease in cash and cash equivalents | -4493 ( 4493 )
cash and cash equivalents beginning of period | 34968
cash and cash equivalents end of period | $ 30475
the cash provided by operating activities is primarily attributable to the operation of our properties and the change in working capital related to our operations .
we used cash of $ 154.3 million during the twelve months ended december 31 , 2004 in investing activities , including the following : 2022 $ 101.7 million for our acquisition of westgate mall , shaw 2019s plaza and several parcels of land , 2022 capital expenditures of $ 59.2 million for development and redevelopment of properties including santana row , 2022 maintenance capital expenditures of approximately $ 36.9 million , 2022 $ 9.4 million capital contribution to a real estate partnership , and 2022 an additional $ 3.2 million net advance under an existing mortgage note receivable ; offset by 2022 $ 41.8 million in net sale proceeds from the sale of properties , and |
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dd4c36b88 | ( c ) includes the effects of items not considered in the assessment of the operating performance of our business segments which increased operating profit by $ 230 million , $ 150 million after tax ( $ 0.34 per share ) .
also includes expenses of $ 16 million , $ 11 million after tax ( $ 0.03 per share ) for a debt exchange , and a reduction in income tax expense of $ 62 million ( $ 0.14 per share ) resulting from a tax benefit related to claims we filed for additional extraterritorial income exclusion ( eti ) tax benefits .
on a combined basis , these items increased earnings by $ 201 million after tax ( $ 0.45 per share ) .
( d ) includes the effects of items not considered in the assessment of the operating performance of our business segments which , on a combined basis , increased operating profit by $ 173 million , $ 113 million after tax ( $ 0.25 per share ) .
( e ) includes the effects of items not considered in the assessment of the operating performance of our business segments which decreased operating profit by $ 61 million , $ 54 million after tax ( $ 0.12 per share ) .
also includes a charge of $ 154 million , $ 100 million after tax ( $ 0.22 per share ) for the early repayment of debt , and a reduction in income tax expense resulting from the closure of an internal revenue service examination of $ 144 million ( $ 0.32 per share ) .
on a combined basis , these items reduced earnings by $ 10 million after tax ( $ 0.02 per share ) .
( f ) includes the effects of items not considered in the assessment of the operating performance of our business segments which , on a combined basis , decreased operating profit by $ 7 million , $ 6 million after tax ( $ 0.01 per share ) .
also includes a charge of $ 146 million , $ 96 million after tax ( $ 0.21 per share ) for the early repayment of debt .
( g ) we define return on invested capital ( roic ) as net earnings plus after-tax interest expense divided by average invested capital ( stockholders 2019 equity plus debt ) , after adjusting stockholders 2019 equity by adding back adjustments related to postretirement benefit plans .
we believe that reporting roic provides investors with greater visibility into how effectively we use the capital invested in our operations .
we use roic to evaluate multi-year investment decisions and as a long-term performance measure , and also use it as a factor in evaluating management performance under certain of our incentive compensation plans .
roic is not a measure of financial performance under generally accepted accounting principles , and may not be defined and calculated by other companies in the same manner .
roic should not be considered in isolation or as an alternative to net earnings as an indicator of performance .
we calculate roic as follows : ( in millions ) 2007 2006 2005 2004 2003 .
( in millions ) | 2007 | 2006 | 2005 | 2004 | 2003
------------------------------------------------- | ---------------- | ---------------- | ---------------- | ---------------- | --------------
net earnings | $ 3033 | $ 2529 | $ 1825 | $ 1266 | $ 1053
interest expense ( multiplied by 65% ( 65 % ) ) 1 | 229 | 235 | 241 | 276 | 317
return | $ 3262 | $ 2764 | $ 2066 | $ 1542 | $ 1370
average debt2 5 | $ 4416 | $ 4727 | $ 5077 | $ 5932 | $ 6612
average equity3 5 | 7661 | 7686 | 7590 | 7015 | 6170
average benefit plan adjustments3 4 5 | 3171 | 2006 | 1545 | 1296 | 1504
average invested capital | $ 15248 | $ 14419 | $ 14212 | $ 14243 | $ 14286
return on invested capital | 21.4% ( 21.4 % ) | 19.2% ( 19.2 % ) | 14.5% ( 14.5 % ) | 10.8% ( 10.8 % ) | 9.6% ( 9.6 % )
1 represents after-tax interest expense utilizing the federal statutory rate of 35% ( 35 % ) .
2 debt consists of long-term debt , including current maturities of long-term debt , and short-term borrowings ( if any ) .
3 equity includes non-cash adjustments , primarily for unrecognized benefit plan actuarial losses and prior service costs in 2007 and 2006 , the adjustment for the adoption of fas 158 in 2006 , and the additional minimum pension liability in years prior to 2007 .
4 average benefit plan adjustments reflect the cumulative value of entries identified in our statement of stockholders equity under the captions 201cpostretirement benefit plans , 201d 201cadjustment for adoption of fas 158 201d and 201cminimum pension liability . 201d the total of annual benefit plan adjustments to equity were : 2007 = $ 1706 million ; 2006 = ( $ 1883 ) million ; 2005 = ( $ 105 ) million ; 2004 = ( $ 285 ) million ; 2003 = $ 331 million ; 2002 = ( $ 1537 million ) ; and 2001 = ( $ 33 million ) .
as these entries are recorded in the fourth quarter , the value added back to our average equity in a given year is the cumulative impact of all prior year entries plus 20% ( 20 % ) of the current year entry value .
5 yearly averages are calculated using balances at the start of the year and at the end of each quarter. |
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dd4c5a402 | table of contents configuration , amenities provided to passengers , loyalty programs , the automation of travel agent reservation systems , onboard products , markets served and other services .
we compete with both major network airlines and low-cost carriers throughout our network .
international in addition to our extensive domestic service , we provide international service to canada , central and south america , asia , europe , australia and new zealand .
in providing international air transportation , we compete with u.s .
airlines , foreign investor-owned airlines and foreign state- owned or state-affiliated airlines , including carriers based in the middle east , the three largest of which we believe benefit from significant government subsidies .
in order to increase our ability to compete for international air transportation service , which is subject to extensive government regulation , u.s .
and foreign carriers have entered into marketing relationships , alliances , cooperation agreements and jbas to exchange traffic between each other 2019s flights and route networks .
see 201cticket distribution and marketing agreements 201d above for further discussion .
employees and labor relations the airline business is labor intensive .
in 2016 , mainline and regional salaries , wages and benefits were our largest expense and represented approximately 35% ( 35 % ) of our total operating expenses .
labor relations in the air transportation industry are regulated under the railway labor act ( rla ) , which vests in the national mediation board ( nmb ) certain functions with respect to disputes between airlines and labor unions relating to union representation and collective bargaining agreements ( cbas ) .
when an rla cba becomes amendable , if either party to the agreement wishes to modify its terms , it must notify the other party in the manner prescribed under the rla and as agreed by the parties .
under the rla , the parties must meet for direct negotiations , and , if no agreement is reached , either party may request the nmb to appoint a federal mediator .
the rla prescribes no set timetable for the direct negotiation and mediation process .
it is not unusual for those processes to last for many months and even for several years .
if no agreement is reached in mediation , the nmb in its discretion may declare under the rla at some time that an impasse exists , and if an impasse is declared , the nmb proffers binding arbitration to the parties .
either party may decline to submit to binding arbitration .
if arbitration is rejected by either party , an initial 30-day 201ccooling off 201d period commences .
following the conclusion of that 30-day 201ccooling off 201d period , if no agreement has been reached , 201cself-help 201d ( as described below ) can begin unless a presidential emergency board ( peb ) is established .
a peb examines the parties 2019 positions and recommends a solution .
the peb process lasts for 30 days and ( if no resolution is reached ) is followed by another 201ccooling off 201d period of 30 days .
at the end of a 201ccooling off 201d period ( unless an agreement is reached , a peb is established or action is taken by congress ) , the labor organization may exercise 201cself-help , 201d such as a strike , and the airline may resort to its own 201cself-help , 201d including the imposition of any or all of its proposed amendments to the cba and the hiring of new employees to replace any striking workers .
the table below presents our approximate number of active full-time equivalent employees as of december 31 , 2016 .
mainline operations wholly-owned regional carriers total .
| mainline operations | wholly-owned regional carriers | total
------------------------------------------- | ------------------- | ------------------------------ | ------
pilots and flight crew training instructors | 13400 | 3400 | 16800
flight attendants | 24700 | 2200 | 26900
maintenance personnel | 14900 | 2000 | 16900
fleet service personnel | 16600 | 3500 | 20100
passenger service personnel | 15900 | 7100 | 23000
administrative and other | 16000 | 2600 | 18600
total | 101500 | 20800 | 122300 |