| _id | dd4c36fde |
| title |  |
| text | repurchase of equity securities the following table provides information regarding our purchases of our equity securities during the period from october 1 , 2012 to december 31 , 2012 .
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 .

1 includes 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 13566 withheld shares in october 2012 , 1419 withheld shares in november 2012 and 7959 withheld shares in december 2012 , for a total of 22944 withheld shares during the three-month period .

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 on february 24 , 2012 , we announced in a press release that our board had approved a share repurchase program to repurchase from time to time up to $ 300.0 million of our common stock ( the 201c2012 share repurchase program 201d ) , in addition to amounts available on existing authorizations .
on november 20 , 2012 , we announced in a press release that our board had authorized an increase in our 2012 share repurchase program to $ 400.0 million of our common stock .

on february 22 , 2013 , we announced that our board had approved a new share repurchase program to repurchase from time to time up to $ 300.0 million of our common stock .
the new authorization is in addition to any amounts remaining available for repurchase under the 2012 share repurchase program .
there is no expiration date associated with the share repurchase programs.

 |
| table | | total number ofshares ( or units ) purchased1 | average price paidper share ( or unit ) 2 | total number ofshares ( or units ) purchased as part ofpublicly announcedplans or programs3 | maximum number ( or approximate dollar value ) of shares ( or units ) that mayyet be purchased under theplans or programs3
--------------- | --------------------------------------------- | ----------------------------------------- | ------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
october 1 - 31  | 13566                                         | $ 10.26                                   | 0                                                                                | $ 148858924
november 1 - 30 | 5345171                                       | $ 9.98                                    | 5343752                                                                                | $ 195551133
december 1 - 31 | 8797959                                       | $ 10.87                                   | 8790000                                                                                | $ 99989339
total           | 14156696                                      | $ 10.53                                   | 14133752                                                                                | |


| _id | dd4987432 |
| title |  |
| text | 2022 net revenues in our connected fitness operating segment increased $ 34.2 million to $ 53.4 million in 2015 from $ 19.2 million in 2014 primarily due to revenues generated from our two connected fitness acquisitions in 2015 and growth in our existing connected fitness business .
operating income ( loss ) by segment is summarized below: .

the increase in total operating income was driven by the following : 2022 operating income in our north america operating segment increased $ 88.6 million to $ 461.0 million in 2015 from $ 372.4 million in 2014 primarily due to the items discussed above in the consolidated results of operations .

2022 operating income in our emea operating segment increased $ 14.9 million to $ 3.1 million in 2015 from a loss of $ 11.8 million in 2014 primarily due to sales growth discussed above in the consolidated results of operations .
2022 operating income in our asia-pacific operating segment increased $ 14.5 million to $ 36.4 million in 2015 from $ 21.9 million in 2014 primarily due to sales growth discussed above in the consolidated results of operations .

2022 operating loss in our latin america operating segment increased $ 15.2 million to $ 30.6 million in 2015 from $ 15.4 million in 2014 primarily due to increased investments to support growth in the region and the economic challenges in brazil during the period .
this increase in operating loss was offset by sales growth discussed above .

2022 operating loss in our connected fitness segment increased $ 48.2 million to $ 61.3 million in 2015 from $ 13.1 million in 2014 primarily due to investments to support growth in our connected fitness business , including the impact of our two connected fitness acquisitions in 2015 .
these acquisitions contributed $ 23.6 million to the operating loss for the connected fitness segment in 2015 .

seasonality historically , we have recognized a majority of our net revenues and a significant portion of our income from operations in the last two quarters of the year , driven primarily by increased sales volume of our products during the fall selling season , including our higher priced cold weather products , along with a larger proportion of higher margin direct to consumer sales .

seasonality could have an impact on the timing of accruals if the sales in the last two quarters of the year do not materialize .
the level of our working capital generally reflects the seasonality and growth in our business .
we generally expect inventory , accounts payable and certain accrued expenses to be higher in the second and third quarters in preparation for the fall selling season.

 |
| table | ( in thousands )       | year ended december 31 , 2015 | year ended december 31 , 2014 | year ended december 31 , $ change | year ended december 31 , % (  % ) change
---------------------- | ----------------------------- | ----------------------------- | --------------------------------- | ----------------------------------------
north america          | $ 460961                      | $ 372347                      | $ 88614                           | 23.8% ( 23.8 % )
emea                   | 3122                          | -11763 ( 11763 )              | 14885                             | 126.5
asia-pacific           | 36358                         | 21858                         | 14500                             | 66.3
latin america          | -30593 ( 30593 )              | -15423 ( 15423 )              | -15170 ( 15170 )                  | -98.4 ( 98.4 )
connected fitness      | -61301 ( 61301 )              | -13064 ( 13064 )              | -48237 ( 48237 )                  | -369.2 ( 369.2 )
total operating income | $ 408547                      | $ 353955                      | $ 54592                           | 15.4% ( 15.4 % ) |


| _id | dd4c20842 |
| title |  |
| text | shareholder value award program svas are granted to officers and management and are payable in shares of our common stock .
the number of shares actually issued , if any , varies depending on our stock price at the end of the three-year vesting period compared to pre-established target stock prices .
we measure the fair value of the sva unit on the grant date using a monte carlo simulation model .

the model utilizes multiple input variables that determine the probability of satisfying the market condition stipulated in the award grant and calculates the fair value of the award .
expected volatilities utilized in the model are based on implied volatilities from traded options on our stock , historical volatility of our stock price , and other factors .
similarly , the dividend yield is based on historical experience and our estimate of future dividend yields .

the risk-free interest rate is derived from the u.s .
treasury yield curve in effect at the time of grant .
the weighted-average fair values of the sva units granted during the years ended december 31 , 2018 , 2017 , and 2016 were $ 48.51 , $ 66.25 , and $ 48.68 , respectively , determined using the following assumptions: .

pursuant to this program , approximately 0.7 million shares , 1.1 million shares , and 1.0 million shares were issued during the years ended december 31 , 2018 , 2017 , and 2016 , respectively .
approximately 1.0 million shares are expected to be issued in 2019 .
as of december 31 , 2018 , the total remaining unrecognized compensation cost related to nonvested svas was $ 55.7 million , which will be amortized over the weighted-average remaining requisite service period of 20 months .

restricted stock units rsus are granted to certain employees and are payable in shares of our common stock .
rsu shares are accounted for at fair value based upon the closing stock price on the date of grant .
the corresponding expense is amortized over the vesting period , typically three years .
the fair values of rsu awards granted during the years ended december 31 , 2018 , 2017 , and 2016 were $ 70.95 , $ 72.47 , and $ 71.46 , respectively .

the number of shares ultimately issued for the rsu program remains constant with the exception of forfeitures .
pursuant to this program , 1.3 million , 1.4 million , and 1.3 million shares were granted and approximately 1.0 million , 0.9 million , and 0.6 million shares were issued during the years ended december 31 , 2018 , 2017 , and 2016 , respectively .
approximately 0.8 million shares are expected to be issued in 2019 .

as of december 31 , 2018 , the total remaining unrecognized compensation cost related to nonvested rsus was $ 112.2 million , which will be amortized over the weighted- average remaining requisite service period of 21 months .
note 12 : shareholders' equity during 2018 , 2017 , and 2016 , we repurchased $ 4.15 billion , $ 359.8 million and $ 540.1 million , respectively , of shares associated with our share repurchase programs .
a payment of $ 60.0 million was made in 2016 for shares repurchased in 2017 .

during 2018 , we repurchased $ 2.05 billion of shares , which completed the $ 5.00 billion share repurchase program announced in october 2013 and our board authorized an $ 8.00 billion share repurchase program .
there were $ 2.10 billion repurchased under the $ 8.00 billion program in 2018 .
as of december 31 , 2018 , there were $ 5.90 billion of shares remaining under the 2018 program .
we have 5.0 million authorized shares of preferred stock .

as of december 31 , 2018 and 2017 , no preferred stock was issued .
we have an employee benefit trust that held 50.0 million shares of our common stock at both december 31 , 2018 and 2017 , to provide a source of funds to assist us in meeting our obligations under various employee benefit plans .
the cost basis of the shares held in the trust was $ 3.01 billion at both december 31 , 2018 and 2017 , and is shown as a reduction of shareholders 2019 equity .

any dividend transactions between us and the trust are eliminated .
stock held by the trust is not considered outstanding in the computation of eps .
the assets of the trust were not used to fund any of our obligations under these employee benefit plans during the years ended december 31 , 2018 , 2017 , and

 |
| table | ( percents )            | 2018             | 2017             | 2016
----------------------- | ---------------- | ---------------- | ----------------
expected dividend yield | 2.50% ( 2.50 % ) | 2.50% ( 2.50 % ) | 2.00% ( 2.00 % )
risk-free interest rate | 2.31             | 1.38             | 0.92
volatility              | 22.26            | 22.91            | 21.68 |


| _id | dd4980a42 |
| title |  |
| text | jpmorgan chase & co./2014 annual report 63 five-year stock performance the following table and graph compare the five-year cumulative total return for jpmorgan chase & co .
( 201cjpmorgan chase 201d or the 201cfirm 201d ) common stock with the cumulative return of the s&p 500 index , the kbw bank index and the s&p financial index .
the s&p 500 index is a commonly referenced u.s .
equity benchmark consisting of leading companies from different economic sectors .

the kbw bank index seeks to reflect the performance of banks and thrifts that are publicly traded in the u.s .
and is composed of 24 leading national money center and regional banks and thrifts .
the s&p financial index is an index of 85 financial companies , all of which are components of the s&p 500 .
the firm is a component of all three industry indices .

the following table and graph assume simultaneous investments of $ 100 on december 31 , 2009 , in jpmorgan chase common stock and in each of the above indices .
the comparison assumes that all dividends are reinvested .
december 31 , ( in dollars ) 2009 2010 2011 2012 2013 2014 .

 |
| table | december 31 ( in dollars ) | 2009     | 2010     | 2011    | 2012     | 2013     | 2014
-------------------------- | -------- | -------- | ------- | -------- | -------- | --------
jpmorgan chase             | $ 100.00 | $ 102.30 | $ 81.87 | $ 111.49 | $ 152.42 | $ 167.48
kbw bank index             | 100.00   | 123.36   | 94.75   | 125.91   | 173.45   | 189.69
s&p financial index        | 100.00   | 112.13   | 93.00   | 119.73   | 162.34   | 186.98
s&p 500 index              | 100.00   | 115.06   | 117.48  | 136.27   | 180.39   | 205.07 |


| _id | dd4b8af54 |
| title |  |
| text | business subsequent to the acquisition .
the liabilities for these payments are classified as level 3 liabilities because the related fair value measurement , which is determined using an income approach , includes significant inputs not observable in the market .
financial assets and liabilities not measured at fair value our debt is reflected on the consolidated balance sheets at cost .

based on market conditions as of december 31 , 2018 and 2017 , the fair value of our credit agreement borrowings reasonably approximated the carrying values of $ 1.7 billion and $ 2.0 billion , respectively .
in addition , based on market conditions , the fair values of the outstanding borrowings under the receivables facility reasonably approximated the carrying values of $ 110 million and $ 100 million at december 31 , 2018 and december 31 , 2017 , respectively .

as of december 31 , 2018 and december 31 , 2017 , the fair values of the u.s .
notes ( 2023 ) were approximately $ 574 million and $ 615 million , respectively , compared to a carrying value of $ 600 million at each date .
as of december 31 , 2018 and december 31 , 2017 , the fair values of the euro notes ( 2024 ) were approximately $ 586 million and $ 658 million compared to carrying values of $ 573 million and $ 600 million , respectively .

as of december 31 , 2018 , the fair value of the euro notes ( 2026/28 ) approximated the carrying value of $ 1.1 billion .
the fair value measurements of the borrowings under our credit agreement and receivables facility are classified as level 2 within the fair value hierarchy since they are determined based upon significant inputs observable in the market , including interest rates on recent financing transactions with similar terms and maturities .

we estimated the fair value by calculating the upfront cash payment a market participant would require at december 31 , 2018 to assume these obligations .
the fair value of our u.s .
notes ( 2023 ) is classified as level 1 within the fair value hierarchy since it is determined based upon observable market inputs including quoted market prices in an active market .

the fair values of our euro notes ( 2024 ) and euro notes ( 2026/28 ) are determined based upon observable market inputs including quoted market prices in markets that are not active , and therefore are classified as level 2 within the fair value hierarchy .
note 13 .
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 , 2018 are as follows ( in thousands ) : years ending december 31: .

rental expense for operating leases was approximately $ 300 million , $ 247 million , and $ 212 million during the years ended december 31 , 2018 , 2017 and 2016 , 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 , 2018 , our portion of the guaranteed residual value would have totaled approximately $ 76 million .

we have not recorded a liability for the guaranteed residual value of equipment under operating leases as the recovery on disposition of the equipment under the leases is expected to approximate the guaranteed residual value .
litigation and related contingencies we have certain 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.

 |
| table | 2019                          | $ 294269
----------------------------- | ---------
2020                          | 256172
2021                          | 210632
2022                          | 158763
2023                          | 131518
thereafter                    | 777165
future minimum lease payments | $ 1828519 |


| _id | dd4b8ebcc |
| title |  |
| text | consolidated income statement review our consolidated income statement is presented in item 8 of this report .
net income for 2008 was $ 882 million and for 2007 was $ 1.467 billion .
total revenue for 2008 increased 7% ( 7 % ) compared with 2007 .
we created positive operating leverage in the year-to-date comparison as total noninterest expense increased 3% ( 3 % ) in the comparison .
net interest income and net interest margin year ended december 31 dollars in millions 2008 2007 .

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 statistical information 2013 analysis of year-to-year changes in net interest ( unaudited ) income and average consolidated balance sheet and net interest analysis in item 8 of this report for additional information .

the 31% ( 31 % ) increase in net interest income for 2008 compared with 2007 was favorably impacted by the $ 16.5 billion , or 17% ( 17 % ) , increase in average interest-earning assets and a decrease in funding costs .
the 2008 net interest margin was positively affected by declining rates paid on deposits and borrowings compared with the prior year .

the reasons driving the higher interest-earning assets in these comparisons are further discussed in the balance sheet highlights portion of the executive summary section of this item 7 .
the net interest margin was 3.37% ( 3.37 % ) for 2008 and 3.00% ( 3.00 % ) for 2007 .
the following factors impacted the comparison : 2022 a decrease in the rate paid on interest-bearing liabilities of 140 basis points .

the rate paid on interest-bearing deposits , the single largest component , decreased 123 basis points .
2022 these factors were partially offset by a 77 basis point decrease in the yield on interest-earning assets .
the yield on loans , the single largest component , decreased 109 basis points .

2022 in addition , the impact of noninterest-bearing sources of funding decreased 26 basis points due to lower interest rates and a lower proportion of noninterest- bearing sources of funding to interest-earning assets .
for comparing to the broader market , during 2008 the average federal funds rate was 1.94% ( 1.94 % ) compared with 5.03% ( 5.03 % ) for 2007 .

we expect our full-year 2009 net interest income to benefit from the impact of interest accretion of discounts resulting from purchase accounting marks and deposit pricing alignment related to our national city acquisition .
we also currently expect our 2009 net interest margin to improve on a year-over-year basis .
noninterest income summary noninterest income was $ 3.367 billion for 2008 and $ 3.790 billion for 2007 .

noninterest income for 2008 included the following : 2022 gains of $ 246 million related to the mark-to-market adjustment on our blackrock ltip shares obligation , 2022 losses related to our commercial mortgage loans held for sale of $ 197 million , net of hedges , 2022 impairment and other losses related to alternative investments of $ 179 million , 2022 income from hilliard lyons totaling $ 164 million , including the first quarter gain of $ 114 million from the sale of this business , 2022 net

million from the sale of this business , 2022 net securities losses of $ 206 million , 2022 a first quarter gain of $ 95 million related to the redemption of a portion of our visa class b common shares related to visa 2019s march 2008 initial public offering , 2022 a third quarter $ 61 million reversal of a legal contingency reserve established in connection with an acquisition due to a settlement , 2022 trading losses of $ 55 million , 2022 a $ 35 million impairment charge on commercial mortgage servicing

charge on commercial mortgage servicing rights , and 2022 equity management losses of $ 24 million .

noninterest income for 2007 included the following : 2022 the impact of $ 82 million gain recognized in connection with our transfer of blackrock shares to satisfy a portion of pnc 2019s ltip obligation and a $ 209 million net loss on our ltip shares obligation , 2022 income from hilliard lyons totaling $ 227 million , 2022 trading income of $ 104 million , 2022 equity management gains of $ 102 million , and 2022 gains related to our commercial mortgage loans held for sale of $ 3 million , net of hedges .

apart from the impact of these items , noninterest income increased $ 16 million in 2008 compared with 2007 .
additional analysis fund servicing fees increased $ 69 million in 2008 , to $ 904 million , compared with $ 835 million in 2007 .
the impact of the december 2007 acquisition of albridge solutions inc .
( 201calbridge solutions 201d ) and growth in global investment servicing 2019s offshore operations were the primary drivers of this increase .

global investment servicing provided fund accounting/ administration services for $ 839 billion of net fund investment assets and provided custody services for $ 379 billion of fund

 |
| table | year ended december 31 dollars in millions | 2008             | 2007
------------------------------------------ | ---------------- | ----------------
net interest income                        | $ 3823           | $ 2915
net interest margin                        | 3.37% ( 3.37 % ) | 3.00% ( 3.00 % ) |


| _id | dd4bf6650 |
| title |  |
| text | note 4 : property , plant and equipment the following table summarizes the major classes of property , plant and equipment by category as of december 31 : 2015 2014 range of remaining useful weighted average useful life utility plant : land and other non-depreciable assets .
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$ 141 $ 137 sources of supply .
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705 681 12 to 127 years 51 years treatment and pumping facilities .
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3070 2969 3 to 101 years 39 years transmission and distribution facilities .
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8516 7963 9 to 156 years 83 years services , meters and fire hydrants .
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3250 3062 8 to 93 years 35 years general structures and equipment .
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1227 1096 1 to 154 years 39 years waste treatment , pumping and disposal .
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313 281 2 to 115 years 46 years waste collection .
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473 399 5 to 109 years 56 years construction work in progress .
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404 303 total utility plant .
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18099 16891 nonutility property .
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405 378 3 to 50 years 6 years total property , plant and equipment .
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$ 18504 $ 17269 property , plant and equipment depreciation expense amounted to $ 405 , $ 392 , and $ 374 for the years ended december 31 , 2015 , 2014 and 2013 , respectively and was included in depreciation and amortization expense in the accompanying consolidated statements of operations .

the provision for depreciation expressed as a percentage of the aggregate average depreciable asset balances was 3.13% ( 3.13 % ) for the year ended december 31 , 2015 and 3.20% ( 3.20 % ) for years december 31 , 2014 and 2013 .
note 5 : allowance for uncollectible accounts the following table summarizes the changes in the company 2019s allowances for uncollectible accounts for the years ended december 31: .

 |
| table | | 2015         | 2014         | 2013
--------------------------------- | ------------ | ------------ | ------------
balance as of january 1           | $ -35 ( 35 ) | $ -34 ( 34 ) | $ -27 ( 27 )
amounts charged to expense        | -32 ( 32 )   | -37 ( 37 )   | -27 ( 27 )
amounts written off               | 38           | 43           | 24
recoveries of amounts written off | -10 ( 10 )   | -7 ( 7 )     | -4 ( 4 )
balance as of december 31         | $ -39 ( 39 ) | $ -35 ( 35 ) | $ -34 ( 34 ) |


| _id | dd4c17756 |
| title |  |
| text | nonoperating income ( expense ) .
blackrock also uses operating margin , as adjusted , to monitor corporate performance and efficiency and as a benchmark to compare its performance with other companies .
management uses both gaap and non-gaap financial measures in evaluating blackrock 2019s financial performance .
the non-gaap measure by itself may pose limitations because it does not include all of blackrock 2019s revenues and expenses .

operating income used for measuring operating margin , as adjusted , is equal to operating income , as adjusted , excluding the impact of closed-end fund launch costs and related commissions .
management believes the exclusion of such costs and related commissions is useful because these costs can fluctuate considerably and revenues associated with the expenditure of these costs will not fully impact blackrock 2019s results until future periods .

revenue used for operating margin , as adjusted , excludes distribution and servicing costs paid to related parties and other third parties .
management believes the exclusion of such costs is useful because it creates consistency in the treatment for certain contracts for similar services , which due to the terms of the contracts , are accounted for under gaap on a net basis within investment advisory , administration fees and securities lending revenue .

amortization of deferred sales commissions is excluded from revenue used for operating margin measurement , as adjusted , because such costs , over time , substantially offset distribution fee revenue the company earns .
for each of these items , blackrock excludes from revenue used for operating margin , as adjusted , the costs related to each of these items as a proxy for such offsetting revenues .

( b ) nonoperating income ( expense ) , less net income ( loss ) attributable to noncontrolling interests , as adjusted , is presented below .
the compensation expense offset is recorded in operating income .
this compensation expense has been included in nonoperating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted , to offset returns on investments set aside for these plans , which are reported in nonoperating income ( expense ) , gaap basis .

management believes nonoperating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted , provides comparability of information among reporting periods and is an effective measure for reviewing blackrock 2019s nonoperating contribution to results .

as compensation expense associated with ( appreciation ) depreciation on investments related to certain deferred compensation plans , which is included in operating income , substantially offsets the gain ( loss ) on the investments set aside for these plans , management believes nonoperating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted , provides a useful measure , for both management and investors , of blackrock 2019s nonoperating results that impact book value .

during 2013 , the noncash , nonoperating pre-tax gain of $ 80 million related to the contributed pennymac investment has been excluded from nonoperating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted due to its nonrecurring nature and because the more than offsetting associated charitable contribution expense of $ 124 million is reported in operating income .

( in millions ) 2013 2012 2011 nonoperating income ( expense ) , gaap basis $ 116 $ ( 54 ) $ ( 114 ) less : net income ( loss ) attributable to nci 19 ( 18 ) 2 .

gain related to charitable contribution ( 80 ) 2014 2014 compensation expense related to ( appreciation ) depreciation on deferred compensation plans ( 10 ) ( 6 ) 3 nonoperating income ( expense ) , less net income ( loss ) attributable to nci , as adjusted $ 7 $ ( 42 ) $ ( 113 ) ( c ) net income attributable to blackrock , as adjusted : management believes net income attributable to blackrock , inc. , as adjusted , and diluted earnings per common share , as adjusted , are useful measures of blackrock

, as adjusted , are useful measures of blackrock 2019s profitability and financial performance .

net income attributable to blackrock , inc. , as adjusted , equals net income attributable to blackrock , inc. , gaap basis , adjusted for significant nonrecurring items , charges that ultimately will not impact blackrock 2019s book value or certain tax items that do not impact cash flow .
see note ( a ) operating income , as adjusted , and operating margin , as adjusted , for information on the pnc ltip funding obligation , merrill lynch compensation contribution , charitable contribution , u.k .

lease exit costs , contribution to stifs and restructuring charges .
the 2013 results included a tax benefit of approximately $ 48 million recognized in connection with the charitable contribution .
the tax benefit has been excluded from net income attributable to blackrock , inc. , as adjusted due to the nonrecurring nature of the charitable contribution .

during 2013 , income tax changes included adjustments related to the revaluation of certain deferred income tax liabilities , including the effect of legislation enacted in the united kingdom and domestic state and local income tax changes .

during 2012 , income tax changes included adjustments related to the revaluation of certain deferred income tax liabilities , including the effect of legislation enacted in the united kingdom and the state and local income tax effect resulting from changes in the company 2019s organizational structure .
during 2011 , income tax changes included adjustments related to the revaluation of certain deferred income tax liabilities due to a state tax election and enacted u.k. , japan , u.s .

state and local tax legislation .
the resulting decrease in income taxes has been excluded from net income attributable to blackrock , inc. , as adjusted , as these items will not have a cash flow impact and to ensure comparability among periods presented.

 |
| table | ( in millions )                                                                              | 2013       | 2012         | 2011
-------------------------------------------------------------------------------------------- | ---------- | ------------ | --------------
nonoperating income ( expense ) gaap basis                                                   | $ 116      | $ -54 ( 54 ) | $ -114 ( 114 )
less : net income ( loss ) attributable to nci                                               | 19         | -18 ( 18 )   | 2
nonoperating income ( expense )                                                              | 97         | -36 ( 36 )   | -116 ( 116 )
gain related to charitable contribution                                                      | -80 ( 80 ) | 2014         | 2014
compensation expense related to ( appreciation ) depreciation on deferred compensation plans | -10 ( 10 ) | -6 ( 6 )     | 3
nonoperating income ( expense ) less net income ( loss ) attributable to nci as adjusted     | $ 7        | $ -42 ( 42 ) | $ -113 ( 113 ) |


| _id | dd4bff354 |
| title |  |
| text | table of contents celanese purchases of its equity securities information regarding repurchases of our common stock during the three months ended december 31 , 2017 is as follows : period number of shares purchased ( 1 ) average price paid per share total number of shares purchased as part of publicly announced program approximate dollar value of shares remaining that may be purchased under the program ( 2 ) .

___________________________ ( 1 ) represents shares withheld from employees to cover their statutory minimum withholding requirements for personal income taxes related to the vesting of restricted stock units .
( 2 ) our board of directors has authorized the aggregate repurchase of $ 3.9 billion of our common stock since february 2008 , including an increase of $ 1.5 billion on july 17 , 2017 .

see note 17 - stockholders' equity in the accompanying consolidated financial statements for further information.

 |
| table | period               | totalnumberof sharespurchased ( 1 ) | averageprice paidper share | total numberof sharespurchased aspart of publiclyannounced program | approximatedollarvalue of sharesremaining thatmay bepurchased underthe program ( 2 )
-------------------- | ----------------------------------- | -------------------------- | ------------------------------------------------------------------ | ------------------------------------------------------------------------------------
october 1 - 31 2017  | 10676                               | $ 104.10                   | 2014                                                               | $ 1531000000
november 1 - 30 2017 | 924                                 | $ 104.02                   | 2014                                                               | $ 1531000000
december 1 - 31 2017 | 38605                               | $ 106.36                   | 2014                                                               | $ 1531000000
total                | 50205                               |                            | 2014                                                               | |


| _id | dd4c0eb56 |
| title |  |
| text | in asset positions , which totaled $ 41.2 million at june 30 , 2009 .
to manage this risk , we have established strict counterparty credit guidelines that are continually monitored and reported to management .
accordingly , management believes risk of loss under these hedging contracts is remote .
certain of our derivative fi nancial instruments contain credit-risk-related contingent features .

as of june 30 , 2009 , we were in compliance with such features and there were no derivative financial instruments with credit-risk-related contingent features that were in a net liability position .
the est{e lauder companies inc .
111 market risk we use a value-at-risk model to assess the market risk of our derivative fi nancial instruments .

value-at-risk rep resents the potential losses for an instrument or portfolio from adverse changes in market factors for a specifi ed time period and confi dence level .
we estimate value- at-risk across all of our derivative fi nancial instruments using a model with historical volatilities and correlations calculated over the past 250-day period .

the high , low and average measured value-at-risk for the twelve months ended june 30 , 2009 and 2008 related to our foreign exchange and interest rate contracts are as follows: .

the change in the value-at-risk measures from the prior year related to our foreign exchange contracts refl ected an increase in foreign exchange volatilities and a different portfolio mix .
the change in the value-at-risk measures from the prior year related to our interest rate contracts refl ected higher interest rate volatilities .
the model esti- mates were made assuming normal market conditions and a 95 percent confi dence level .

we used a statistical simulation model that valued our derivative fi nancial instruments against one thousand randomly generated market price paths .
our calculated value-at-risk exposure represents an esti mate of reasonably possible net losses that would be recognized on our portfolio of derivative fi nancial instru- ments assuming hypothetical movements in future market rates and is not necessarily indicative of actual results , which may or may not occur .

it does not represent the maximum possible loss or any expected loss that may occur , since actual future gains and losses will differ from those estimated , based upon actual fl uctuations in market rates , operating exposures , and the timing thereof , and changes in our portfolio of derivative fi nancial instruments during the year .

we believe , however , that any such loss incurred would be offset by the effects of market rate movements on the respective underlying transactions for which the deriva- tive fi nancial instrument was intended .
off-balance sheet arrangements we do not maintain any off-balance sheet arrangements , transactions , obligations or other relationships with unconsolidated entities that would be expected to have a material current or future effect upon our fi nancial condi- tion or results of operations .

recently adopted accounting standards in may 2009 , the financial accounting standards board ( 201cfasb 201d ) issued statement of financial accounting standards ( 201csfas 201d ) no .
165 , 201csubsequent events 201d ( 201csfas no .
165 201d ) .
sfas no .

165 201d ) .
sfas no .
165 requires the disclosure of the date through which an entity has evaluated subsequent events for potential recognition or disclosure in the fi nan- cial statements and whether that date represents the date the fi nancial statements were issued or were available to be issued .

this standard also provides clarifi cation about circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its fi nancial statements and the disclosures that an entity should make about events or transactions that occurred after the balance sheet date .
this standard is effective for interim and annual periods beginning with our fi scal year ended june 30 , 2009 .

the adoption of this standard did not have a material impact on our consoli- dated fi nancial statements .
in march 2008 , the fasb issued sfas no .
161 , 201cdisclosures about derivative instruments and hedging activities 2014 an amendment of fasb statement no .
133 201d ( 201csfas no .
161 201d ) .
sfas no .

133 201d ( 201csfas no .
161 201d ) .
sfas no .
161 requires companies to provide qualitative disclosures about their objectives and strategies for using derivative instruments , quantitative disclosures of the fair values of , and gains and losses on , these derivative instruments in a tabular format , as well as more information about liquidity by requiring disclosure of a derivative contract 2019s credit-risk-related contingent

 |
| table | ( in millions )            | june 30 2009 high | june 30 2009 low | june 30 2009 average | june 30 2009 high | june 30 2009 low | average
-------------------------- | ----------------- | ---------------- | -------------------- | ----------------- | ---------------- | -------
foreign exchange contracts | $ 28.4            | $ 14.2           | $ 21.6               | $ 18.8            | $ 5.3            | $ 11.3
interest rate contracts    | 34.3              | 23.0             | 29.5                 | 28.8              | 12.6             | 20.0 |


| _id | dd498e070 |
| title |  |
| text | simplify the presentation of deferred income taxes and reduce complexity without decreasing the usefulness of information provided to users of financial statements .
the adoption of this pronouncement did not have a significant impact on the company 2019s financial position , results of operations and cash flows .
3 .

3 .
acquisitions endomondo on january 5 , 2015 , the company acquired 100% ( 100 % ) of the outstanding equity of endomondo , a denmark- based digital connected fitness company , to expand the under armour connected fitness community .
the purchase price was $ 85.0 million , adjusted for working capital .
the company recognized $ 0.6 million and $ 0.8 million in acquisition related costs that were expensed during the three months ended march 31 , 2015 and december 31 , 2014 , respectively .

these costs are included in the consolidated statements of income in the line item entitled 201cselling , general and administrative expenses . 201d pro forma results are not presented , as the acquisition was not considered material to the consolidated company .
myfitnesspal on march 17 , 2015 , the company acquired 100% ( 100 % ) of the outstanding equity of mfp , a digital nutrition and connected fitness company , to expand the under armour connected fitness community .

the final adjusted transaction value totaled $ 474.0 million .
the total consideration of $ 463.9 million was adjusted to reflect the accelerated vesting of certain share awards of mfp , which are not conditioned upon continued employment , and transaction costs borne by the selling shareholders .

the acquisition was funded with $ 400.0 million of increased term loan borrowings and a draw on the revolving credit facility , with the remaining amount funded by cash on the company recognized $ 5.7 million of acquisition related costs that were expensed during the three months ended march 31 , 2015 .

these costs are included in the consolidated statement of income in the line item entitled 201cselling , general and administrative expenses . 201d the following represents the pro forma consolidated income statement as if mfp had been included in the consolidated results of the company for the year ended december 31 , 2015 and december 31 , 2014: .

these amounts have been calculated after applying the company 2019s accounting policies and adjusting the results of mfp to reflect the acquisition as if it closed on january 1 , 2014 .
pro forma net income for the year ended december 31 , 2014 includes $ 5.7 million in transaction expenses which were included in the consolidated statement of income for the year ended december 31 , 2015 , but excluded from the calculation of pro forma net income for december 31 , 2015.

 |
| table | ( in thousands ) | year ended december 31 , 2015 | year ended december 31 , 2014
---------------- | ----------------------------- | -----------------------------
net revenues     | $ 3967008                     | $ 3098341
net income       | 231277                        | 189659 |


| _id | dd4bf11a0 |
| title |  |
| text | borrowings reflect net proceeds received from the issuance of senior notes in june 2015 .
see liquidity and capital resources below for additional information .
in november 2015 , we repaid our $ 1 billion 0.90% ( 0.90 % ) senior notes upon maturity .
in october 2015 , we announced an adjustment to our quarterly dividend .
see capital requirements below for additional information .
additions to property , plant and equipment are our most significant use of cash and cash equivalents .

the following table shows capital expenditures related to continuing operations by segment and reconciles to additions to property , plant and equipment as presented in the consolidated statements of cash flows for 2015 , 2014 and 2013: .

( a ) reflects reimbursements earned from the governments of canada and alberta related to funds previously expended for quest ccs capital equipment .
quest ccs was successfully completed and commissioned in the fourth quarter of 2015 .
during 2014 , we acquired 29 million shares at a cost of $ 1 billion and in 2013 acquired 14 million shares at a cost of $ 500 million .
there were no share repurchases in 2015 .
see item 8 .

see item 8 .
financial statements and supplementary data 2013 note 23 to the consolidated financial statements for discussion of purchases of common stock .

liquidity and capital resources on june 10 , 2015 , we issued $ 2 billion aggregate principal amount of unsecured senior notes which consist of the following series : 2022 $ 600 million of 2.70% ( 2.70 % ) senior notes due june 1 , 2020 2022 $ 900 million of 3.85% ( 3.85 % ) senior notes due june 1 , 2025 2022 $ 500 million of 5.20% ( 5.20 % ) senior notes due june 1 , 2045 interest on each series of senior notes is payable semi-annually beginning december 1 , 2015 .

we used the aggregate net proceeds to repay our $ 1 billion 0.90% ( 0.90 % ) senior notes on november 2 , 2015 , and the remainder for general corporate purposes .
in may 2015 , we amended our $ 2.5 billion credit facility to increase the facility size by $ 500 million to a total of $ 3.0 billion and extend the maturity date by an additional year such that the credit facility now matures in may 2020 .

the amendment additionally provides us the ability to request two one-year extensions to the maturity date and an option to increase the commitment amount by up to an additional $ 500 million , subject to the consent of any increasing lenders .
the sub-facilities for swing-line loans and letters of credit remain unchanged allowing up to an aggregate amount of $ 100 million and $ 500 million , respectively .

fees on the unused commitment of each lender , as well as the borrowing options under the credit facility , remain unchanged .
our main sources of liquidity are cash and cash equivalents , internally generated cash flow from operations , capital market transactions , our committed revolving credit facility and sales of non-core assets .

our working capital requirements are supported by these sources and we may issue either commercial paper backed by our $ 3.0 billion revolving credit facility or draw on our $ 3.0 billion revolving credit facility to meet short-term cash requirements or issue debt or equity securities through the shelf registration statement discussed below as part of our longer-term liquidity and capital management .

because of the alternatives available to us as discussed above , we believe that our short-term and long-term liquidity is adequate to fund not only our current operations , but also our near-term and long-term funding requirements including our capital spending programs , dividend payments , defined benefit plan contributions , repayment of debt maturities and other amounts that may ultimately be paid in connection with contingencies .

general economic conditions , commodity prices , and financial , business and other factors could affect our operations and our ability to access the capital markets .

a downgrade in our credit ratings could negatively impact our cost of capital and our ability to access the capital markets , increase the interest rate and fees we pay on our unsecured revolving credit facility , restrict our access to the commercial paper market , or require us to post letters of credit or other forms of collateral for certain

 |
| table | ( in millions )                           | year ended december 31 , 2015 | year ended december 31 , 2014 | year ended december 31 , 2013
----------------------------------------- | ----------------------------- | ----------------------------- | -----------------------------
north america e&p                         | $ 2553                        | $ 4698                        | $ 3649
international e&p                         | 368                           | 534                           | 456
oil sands mining ( a )                    | -10 ( 10 )                    | 212                           | 286
corporate                                 | 25                            | 51                            | 58
total capital expenditures                | 2936                          | 5495                          | 4449
change in capital expenditure accrual     | 540                           | -335 ( 335 )                  | -6 ( 6 )
additions to property plant and equipment | $ 3476                        | $ 5160                        | $ 4443 |


| _id | dd497567e |
| title |  |
| text | in our primary disbursement accounts which were reclassified as accounts payable and other accrued liabilities on our consolidated balance sheet .
concentration of credit risk financial instruments that potentially subject us to concentrations of credit risk consist of cash and cash equivalents , trade accounts receivable and derivative instruments .
we place our cash and cash equivalents with high quality financial institutions .
such balances may be in excess of fdic insured limits .

in order to manage the related credit exposure , we continually monitor the credit worthiness of the financial institutions where we have deposits .
concentrations of credit risk with respect to trade accounts receivable are limited due to the wide variety of customers and markets in which we provide services , as well as the dispersion of our operations across many geographic areas .
we provide services to commercial , industrial , municipal and residential customers in the united states and puerto rico .

we perform ongoing credit evaluations of our customers , but do not require collateral to support customer receivables .
we establish an allowance for doubtful accounts based on various factors including the credit risk of specific customers , age of receivables outstanding , historical trends , economic conditions and other information .
no customer exceeded 5% ( 5 % ) of our outstanding accounts receivable balance at december 31 , 2009 or 2008 .

accounts receivable , net of allowance for doubtful accounts accounts receivable represent receivables from customers for collection , transfer , recycling , disposal and other services .
our receivables are recorded when billed or when the related revenue is earned , if earlier , and represent claims against third parties that will be settled in cash .
the carrying value of our receivables , net of the allowance for doubtful accounts , represents their estimated net realizable value .

provisions for doubtful accounts are evaluated on a monthly basis and are recorded based on our historical collection experience , the age of the receivables , specific customer information and economic conditions .
we also review outstanding balances on an account-specific basis .
in general , reserves are provided for accounts receivable in excess of ninety days old .
past due receivable balances are written-off when our collection efforts have been unsuccess- ful in collecting amounts due .

the following table reflects the activity in our allowance for doubtful accounts for the years ended december 31 , 2009 , 2008 and 2007: .

subsequent to our acquisition of allied , we recorded a provision for doubtful accounts of $ 14.2 million to adjust the allowance acquired from allied to conform to republic 2019s accounting policies .
we also recorded $ 5.4 million to provide for specific bankruptcy exposures in 2008 .
in 2007 , we recorded a $ 4.3 million reduction in our allowance for doubtful accounts as a result of refining our estimate of the allowance based on our historical collection experience .

restricted cash as of december 31 , 2009 , we had $ 236.6 million of restricted cash , of which $ 93.1 million was proceeds from the issuance of tax-exempt bonds and other tax-exempt financings and will be used to fund capital republic services , inc .
and subsidiaries notes to consolidated financial statements , continued

 |
| table | | 2009           | 2008           | 2007
---------------------------- | -------------- | -------------- | ------------
balance at beginning of year | $ 65.7         | $ 14.7         | $ 18.8
additions charged to expense | 27.3           | 36.5           | 3.9
accounts written-off         | -37.8 ( 37.8 ) | -12.7 ( 12.7 ) | -7.8 ( 7.8 )
acquisitions                 | -              | 27.2           | -0.2 ( 0.2 )
balance at end of year       | $ 55.2         | $ 65.7         | $ 14.7 |


| _id | dd4bce2b8 |
| title |  |
| text | for the year ended december 31 , 2005 , we realized net losses of $ 1 million on sales of available-for- sale securities .
unrealized gains of $ 1 million were included in other comprehensive income at december 31 , 2004 , net of deferred taxes of less than $ 1 million , related to these sales .
for the year ended december 31 , 2004 , we realized net gains of $ 26 million on sales of available-for- sale securities .

unrealized gains of $ 11 million were included in other comprehensive income at december 31 , 2003 , net of deferred taxes of $ 7 million , related to these sales .
note 13 .
equity-based compensation the 2006 equity incentive plan was approved by shareholders in april 2006 , and 20000000 shares of common stock were approved for issuance for stock and stock-based awards , including stock options , stock appreciation rights , restricted stock , deferred stock and performance awards .

in addition , up to 8000000 shares from our 1997 equity incentive plan , that were available to issue or become available due to cancellations and forfeitures , may be awarded under the 2006 plan .
the 1997 plan expired on december 18 , 2006 .
as of december 31 , 2006 , 1305420 shares from the 1997 plan have been added to and may be awarded from the 2006 plan .
as of december 31 , 2006 , 106045 awards have been made under the 2006 plan .

we have stock options outstanding from previous plans , including the 1997 plan , under which no further grants can be made .
the exercise price of non-qualified and incentive stock options and stock appreciation rights may not be less than the fair value of such shares at the date of grant .
stock options and stock appreciation rights issued under the 2006 plan and the prior 1997 plan generally vest over four years and expire no later than ten years from the date of grant .

for restricted stock awards issued under the 2006 plan and the prior 1997 plan , stock certificates are issued at the time of grant and recipients have dividend and voting rights .
in general , these grants vest over three years .
for deferred stock awards issued under the 2006 plan and the prior 1997 plan , no stock is issued at the time of grant .
generally , these grants vest over two- , three- or four-year periods .

performance awards granted under the 2006 equity incentive plan and the prior 1997 plan are earned over a performance period based on achievement of goals , generally over two- to three- year periods .
payment for performance awards is made in shares of our common stock or in cash equal to the fair market value of our common stock , based on certain financial ratios after the conclusion of each performance period .

we record compensation expense , equal to the estimated fair value of the options on the grant date , on a straight-line basis over the options 2019 vesting period .
we use a black-scholes option-pricing model to estimate the fair value of the options granted .
the weighted-average assumptions used in connection with the option-pricing model were as follows for the years indicated. .

compensation expense related to stock options , stock appreciation rights , restricted stock awards , deferred stock awards and performance awards , which we record as a component of salaries and employee benefits expense in our consolidated statement of income , was $ 208 million , $ 110 million and $ 74 million for the years ended december 31 , 2006 , 2005 and 2004 , respectively .

the related total income tax benefit recorded in our consolidated statement of income was $ 83 million , $ 44 million and $ 30 million for 2006 , 2005 and 2004 , respectively .
seq 87 copyarea : 38 .
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 |
| table | | 2006             | 2005             | 2004
---------------------------------- | ---------------- | ---------------- | ----------------
dividend yield                     | 1.41% ( 1.41 % ) | 1.85% ( 1.85 % ) | 1.35% ( 1.35 % )
expected volatility                | 26.50            | 28.70            | 27.10
risk-free interest rate            | 4.60             | 4.19             | 3.02
expected option lives ( in years ) | 7.8              | 7.8              | 5.0 |


| _id | dd4bda2ac |
| title |  |
| text | additionally , the latin american soft alloy extrusions business previously included in corporate was moved into the new transportation and construction solutions segment .

the remaining engineered products and solutions segment consists of the alcoa fastening systems and rings ( renamed to include portions of the firth rixson business acquired in november 2014 ) , alcoa power and propulsion ( includes the tital business acquired in march 2015 ) , alcoa forgings and extrusions ( includes the other portions of firth rixson ) , and alcoa titanium and engineered products ( a new business unit that consists solely of the rti international metals business acquired in july 2015 )

metals business acquired in july 2015 ) business units .

segment information for all prior periods presented was updated to reflect the new segment structure .
atoi for all reportable segments totaled $ 1906 in 2015 , $ 1968 in 2014 , and $ 1267 in 2013 .
the following information provides shipments , sales , and atoi data for each reportable segment , as well as certain production , realized price , and average cost data , for each of the three years in the period ended december 31 , 2015 .

see note q to the consolidated financial statements in part ii item 8 of this form 10-k for additional information .
alumina .

* includes all production-related costs , including raw materials consumed ; conversion costs , such as labor , materials , and utilities ; depreciation , depletion , and amortization ; and plant administrative expenses .
this segment represents a portion of alcoa 2019s upstream operations and consists of the company 2019s worldwide refining system .

alumina mines bauxite , from which alumina is produced and then sold directly to external smelter customers , as well as to the primary metals segment ( see primary metals below ) , or to customers who process it into industrial chemical products .
more than half of alumina 2019s production is sold under supply contracts to third parties worldwide , while the remainder is used internally by the primary metals segment .

alumina produced by this segment and used internally is transferred to the primary metals segment at prevailing market prices .
a portion of this segment 2019s third- party sales are completed through the use of agents , alumina traders , and distributors .
generally , the sales of this segment are transacted in u.s .
dollars while costs and expenses of this segment are transacted in the local currency of the respective operations , which are the australian dollar , the brazilian real , the u.s .

dollar , and the euro .
awac is an unincorporated global joint venture between alcoa and alumina limited and consists of a number of affiliated operating entities , which own , or have an interest in , or operate the bauxite mines and alumina refineries within the alumina segment ( except for the poc 0327os de caldas refinery in brazil and a portion of the sa 0303o lul 0301s refinery in brazil ) .

alcoa owns 60% ( 60 % ) and alumina limited owns 40% ( 40 % ) of these individual entities , which are consolidated by the company for financial reporting purposes .
as such , the results and analysis presented for the alumina segment are inclusive of alumina limited 2019s 40% ( 40 % ) interest .
in december 2014 , awac completed the sale of its ownership stake in jamalco , a bauxite mine and alumina refinery joint venture in jamaica , to noble group ltd .

jamalco was 55% ( 55 % ) owned by a subsidiary of awac , and , while owned by awac , 55% ( 55 % ) of both the operating results and assets and liabilities of this joint venture were included in the alumina segment .

as it relates to awac 2019s previous 55% ( 55 % ) ownership stake , the refinery ( awac 2019s share of the capacity was 779 kmt-per-year ) generated sales ( third-party and intersegment ) of approximately $ 200 in 2013 , and the refinery and mine combined , at the time of divestiture , had approximately 500 employees .
see restructuring and other charges in results of operations above.

 |
| table | | 2015   | 2014   | 2013
------------------------------------------------------------ | ------ | ------ | ------
alumina production ( kmt )                                   | 15720  | 16606  | 16618
third-party alumina shipments ( kmt )                        | 10755  | 10652  | 9966
alcoa 2019s average realized price per metric ton of alumina | $ 317  | $ 324  | $ 328
alcoa 2019s average cost per metric ton of alumina*          | $ 237  | $ 282  | $ 295
third-party sales                                            | $ 3455 | $ 3509 | $ 3326
intersegment sales                                           | 1687   | 1941   | 2235
total sales                                                  | $ 5142 | $ 5450 | $ 5561
atoi                                                         | $ 746  | $ 370  | $ 259 |


| _id | dd4bbe606 |
| title |  |
| text | 2022 integration of new projects .
during 2010 , the following projects were acquired or commenced commercial operations : project location fuel aes equity interest ( percent , rounded ) .

damlapinar ( 4 ) .
.
.
.
.
.
.
.
.
.
.
.
.
.
turkey hydro 16 51% ( 51 % ) ( 1 ) jianghe rural electrification development co .
ltd .
( 201cjhrh 201d ) and aes china hydropower investment co .
ltd .
entered into an agreement to acquire a 49% ( 49 % ) interest in this joint venture in june 2010 .

acquisition of 35% ( 35 % ) ownership was completed in june 2010 and the transfer of the remaining 14% ( 14 % ) ownership , which is subject to approval by the chinese government , is expected to be completed in may 2011 .
( 2 ) guacolda is an equity method investment indirectly held by aes through gener .
the aes equity interest reflects the 29% ( 29 % ) noncontrolling interests in gener .
( 3 ) joint venture with guohua energy investment co .
ltd .
( 4 ) joint venture with i.c .
energy .

ltd .
( 4 ) joint venture with i.c .
energy .
key trends and uncertainties our operations continue to face many risks as discussed in item 1a . 2014risk factors of this form 10-k .
some of these challenges are also described above in key drivers of results in 2010 .
we continue to monitor our operations and address challenges as they arise .
development .

development .
during the past year , the company has successfully acquired and completed construction of a number of projects , totaling approximately 2404 mw , including the acquisition of ballylumford in the united kingdom and completion of construction of a number of projects in europe , chile and china .
however , as discussed in item 1a . 2014risk factors 2014our business is subject to substantial development uncertainties of this form 10-k , our development projects are subject to uncertainties .

certain delays have occurred at the 670 mw maritza coal-fired project in bulgaria , and the project has not yet begun commercial operations .
as noted in note 10 2014debt included in item 8 of this form 10-k , as a result of these delays the project debt is in default and the company is working with its lenders to resolve the default .
in addition , as noted in item 3 . 2014legal proceedings , the company is in litigation with the contractor regarding the cause of delays .

at this time , we believe that maritza will commence commercial operations for at least some of the project 2019s capacity by the second half of 2011 .
however , commencement of commercial operations could be delayed beyond this time frame .

there can be no assurance that maritza will achieve commercial operations , in whole or in part , by the second half of 2011 , resolve the default with the lenders or prevail in the litigation referenced above , which could result in the loss of some or all of our investment or require additional funding for the project .
any of these events could have a material adverse effect on the company 2019s operating results or financial position .
global economic conditions .

global economic conditions .
during the past few years , economic conditions in some countries where our subsidiaries conduct business have deteriorated .
although the economic conditions in several of these countries have improved in recent months , our businesses could be impacted in the event these recent trends do not continue.

 |
| table | project           | location       | fuel  | gross mw | aes equity interest ( percent rounded )
----------------- | -------------- | ----- | -------- | ---------------------------------------
ballylumford      | united kingdom | gas   | 1246     | 100% ( 100 % )
jhrh ( 1 )        | china          | hydro | 379      | 35% ( 35 % )
nueva ventanas    | chile          | coal  | 272      | 71% ( 71 % )
st . nikola       | bulgaria       | wind  | 156      | 89% ( 89 % )
guacolda 4 ( 2 )  | chile          | coal  | 152      | 35% ( 35 % )
dong qi ( 3 )     | china          | wind  | 49       | 49% ( 49 % )
huanghua ii ( 3 ) | china          | wind  | 49       | 49% ( 49 % )
st . patrick      | france         | wind  | 35       | 100% ( 100 % )
north rhins       | scotland       | wind  | 22       | 100% ( 100 % )
kepezkaya         | turkey         | hydro | 28       | 51% ( 51 % )
damlapinar ( 4 )  | turkey         | hydro | 16       | 51% ( 51 % ) |


| _id | dd4ba9922 |
| title |  |
| text | through the certegy merger , the company has an obligation to service $ 200 million ( aggregate principal amount ) of unsecured 4.75% ( 4.75 % ) fixed-rate notes due in 2008 .
the notes were recorded in purchase accounting at a discount of $ 5.7 million , which is being amortized over the term of the notes .
the notes accrue interest at a rate of 4.75% ( 4.75 % ) per year , payable semi-annually in arrears on each march 15 and september 15 .

on april 11 , 2005 , fis entered into interest rate swap agreements which have effectively fixed the interest rate at approximately 5.4% ( 5.4 % ) through april 2008 on $ 350 million of the term loan facilities ( or its replacement debt ) and at approximately 5.2% ( 5.2 % ) through april 2007 on an additional $ 350 million of the term loan .
the company has designated these interest rate swaps as cash flow hedges in accordance with sfas no .
133 .

133 .
the estimated fair value of the cash flow hedges results in an asset to the company of $ 4.9 million and $ 5.2 million , as of december 31 , 2006 and december 31 , 2005 , respectively , which is included in the accompanying consolidated balance sheets in other noncurrent assets and as a component of accumulated other comprehensive earnings , net of deferred taxes .

a portion of the amount included in accumulated other comprehensive earnings is reclassified into interest expense as a yield adjustment as interest payments are made on the term loan facilities .
the company 2019s existing cash flow hedges are highly effective and there is no current impact on earnings due to hedge ineffectiveness .
it is the policy of the company to execute such instruments with credit-worthy banks and not to enter into derivative financial instruments for speculative purposes .

principal maturities at december 31 , 2006 ( and at december 31 , 2006 after giving effect to the debt refinancing completed on january 18 , 2007 ) for the next five years and thereafter are as follows ( in thousands ) : december 31 , january 18 , 2007 refinancing .

fidelity national information services , inc .
and subsidiaries and affiliates consolidated and combined financial statements notes to consolidated and combined financial statements 2014 ( continued )

 |
| table | | december 31 2006 | january 18 2007 refinancing
---------- | ---------------- | ---------------------------
2007       | $ 61661          | $ 96161
2008       | 257541           | 282041
2009       | 68129            | 145129
2010       | 33586            | 215586
2011       | 941875           | 165455
thereafter | 1646709          | 2105129
total      | $ 3009501        | $ 3009501 |


| _id | dd4b95bc0 |
| title |  |
| text | the analysis of our depreciation studies .
changes in the estimated service lives of our assets and their related depreciation rates are implemented prospectively .
under group depreciation , the historical cost ( net of salvage ) of depreciable property that is retired or replaced in the ordinary course of business is charged to accumulated depreciation and no gain or loss is recognized .

the historical cost of certain track assets is estimated using ( i ) inflation indices published by the bureau of labor statistics and ( ii ) the estimated useful lives of the assets as determined by our depreciation studies .
the indices were selected because they closely correlate with the major costs of the properties comprising the applicable track asset classes .

because of the number of estimates inherent in the depreciation and retirement processes and because it is impossible to precisely estimate each of these variables until a group of property is completely retired , we continually monitor the estimated service lives of our assets and the accumulated depreciation associated with each asset class to ensure our depreciation rates are appropriate .

in addition , we determine if the recorded amount of accumulated depreciation is deficient ( or in excess ) of the amount indicated by our depreciation studies .
any deficiency ( or excess ) is amortized as a component of depreciation expense over the remaining service lives of the applicable classes of assets .

for retirements of depreciable railroad properties that do not occur in the normal course of business , a gain or loss may be recognized if the retirement meets each of the following three conditions : ( i ) is unusual , ( ii ) is material in amount , and ( iii ) varies significantly from the retirement profile identified through our depreciation studies .
a gain or loss is recognized in other income when we sell land or dispose of assets that are not part of our railroad operations .

when we purchase an asset , we capitalize all costs necessary to make the asset ready for its intended use .
however , many of our assets are self-constructed .
a large portion of our capital expenditures is for replacement of existing track assets and other road properties , which is typically performed by our employees , and for track line expansion and other capacity projects .
costs that are directly attributable to capital projects ( including overhead costs ) are capitalized .

direct costs that are capitalized as part of self- constructed assets include material , labor , and work equipment .
indirect costs are capitalized if they clearly relate to the construction of the asset .
general and administrative expenditures are expensed as incurred .

normal repairs and maintenance , including rail grinding , are also expensed as incurred , while costs incurred that extend the useful life of an asset , improve the safety of our operations or improve operating efficiency are capitalized .
these costs are allocated using appropriate statistical bases .
total expense for repairs and maintenance incurred was $ 2.1 billion for 2012 , $ 2.2 billion for 2011 , and $ 2.0 billion for 2010 .

assets held under capital leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease .
amortization expense is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the period of the related lease .
12 .
accounts payable and other current liabilities dec .
31 , dec .
31 , millions 2012 2011 .

 |
| table | millions                                            | dec . 31 2012 | dec . 312011
--------------------------------------------------- | ------------- | ------------
accounts payable                                    | $ 825         | $ 819
accrued wages and vacation                          | 376           | 363
income and other taxes                              | 368           | 482
dividends payable                                   | 318           | 284
accrued casualty costs                              | 213           | 249
interest payable                                    | 172           | 197
equipment rents payable                             | 95            | 90
other                                               | 556           | 624
total accounts payable and othercurrent liabilities | $ 2923        | $ 3108 |


| _id | dd4bd230e |
| title |  |
| text | fis gaming business on june 1 , 2015 , we acquired certain assets of certegy check services , inc. , a wholly-owned subsidiary of fidelity national information services , inc .
( 201cfis 201d ) .

( 201cfis 201d ) .
under the purchase arrangement , we acquired substantially all of the assets of its gaming business related to licensed gaming operators ( the 201cfis gaming business 201d ) , including relationships with gaming clients in approximately 260 locations as of the acquisition date , for $ 237.5 million , funded from borrowings on our revolving credit facility and cash on hand .
we acquired the fis gaming business to expand our direct distribution and service offerings in the gaming market .

the estimated acquisition-date fair values of major classes of assets acquired and liabilities assumed , including a reconciliation to the total purchase consideration , were as follows ( in thousands ) : .

goodwill arising from the acquisition , included in the north america segment , was attributable to an expected growth opportunities , including cross-selling opportunities at existing and acquired gaming client locations and operating synergies in the gaming business , and an assembled workforce .
goodwill associated with this acquisition is deductible for income tax purposes .
the customer-related intangible assets have an estimated amortization period of 15 years .

valuation of identified intangible assets for the acquisitions discussed above , the estimated fair values of customer-related intangible assets were determined using the income approach , which was based on projected cash flows discounted to their present value using discount rates that consider the timing and risk of the forecasted cash flows .
the discount rates used represented the average estimated value of a market participant 2019s cost of capital and debt , derived using customary market metrics .

acquired technologies were valued using the replacement cost method , which required us to estimate the costs to construct an asset of equivalent utility at prices available at the time of the valuation analysis , with adjustments in value for physical deterioration and functional and economic obsolescence .
trademarks and trade names were valued using the 201crelief-from-royalty 201d approach .

this method assumes that trademarks and trade names have value to the extent that their owner is relieved of the obligation to pay royalties for the benefits received from them .
this method required us to estimate the future revenues for the related brands , the appropriate royalty rate and the weighted-average cost of capital .
the discount rates used represented the average estimated value of a market participant 2019s cost of capital and debt , derived using customary market metrics .

note 3 2014 revenues we are a leading worldwide provider of payment technology and software solutions delivering innovative services to our customers globally .
our technologies , services and employee expertise enable us to provide a broad range of solutions that allow our customers to accept various payment types and operate their businesses more efficiently .
we distribute our services across a variety of channels to customers .

the disclosures in this note are applicable for the year ended december 31 , 2018 .
global payments inc .
| 2018 form 10-k annual report 2013 79

 |
| table | customer-related intangible assets | $ 143400
---------------------------------- | ------------
liabilities                        | -150 ( 150 )
total identifiable net assets      | 143250
goodwill                           | 94250
total purchase consideration       | $ 237500 |


| _id | dd4bdd344 |
| title |  |
| text | hologic , inc .
notes to consolidated financial statements ( continued ) ( in thousands , except per share data ) failure of the company to develop new products and product enhancements on a timely basis or within budget could harm the company 2019s results of operations and financial condition .

for additional risks that may affect the company 2019s business and prospects following completion of the merger , see 201crisk factors 201d in item 1a of the company 2019s form 10-k for the year ended september 29 , 2007 .
goodwill the preliminary purchase price allocation has resulted in goodwill of approximately $ 3895100 .

the factors contributing to the recognition of this amount of goodwill are based upon several strategic and synergistic benefits that are expected to be realized from the combination .
these benefits include the expectation that the company 2019s complementary products and technologies will create a leading women 2019s healthcare company with an enhanced presence in hospitals , private practices and healthcare organizations .

the company also expects to realize substantial synergies through the use of cytyc 2019s ob/gyn and breast surgeon sales channel to cross-sell the company 2019s existing and future products .
the merger provides the company broader channel coverage within the united states and expanded geographic reach internationally , as well as increased scale and scope for further expanding operations through product development and complementary strategic transactions .

supplemental unaudited pro-forma information the following unaudited pro forma information presents the consolidated results of operations of the company and cytyc as if the acquisitions had occurred at the beginning of fiscal 2007 , with pro forma adjustments to give effect to amortization of intangible assets , an increase in interest expense on acquisition financing and certain other adjustments together with related tax effects: .

the $ 368200 charge for acquired in-process research and development that was a direct result of the transaction is excluded from the unaudited pro forma information above .
the unaudited pro forma results are not necessarily indicative of the results that the company would have attained had the acquisitions of cytyc occurred at the beginning of the periods presented .

prior to the close of the merger the board of directors of both hologic and cytyc approved a modification to certain outstanding equity awards for cytyc employees .
the modification provided for the acceleration of vesting upon the close of merger for those awards that did not provide for acceleration upon a change of control as part of the original terms of the award .

this modification was made so that the company will not incur stock based compensation charges that it otherwise would have if the awards had continued to vest under their original terms .
credit agreement on october 22 , 2007 , company and certain of its domestic subsidiaries , entered into a senior secured credit agreement with goldman sachs credit partners l.p .
and certain other lenders , ( collectively , the 201clenders 201d ) .

pursuant to the terms and conditions of the credit agreement , the lenders have committed to provide senior secured financing in an aggregate amount of up to $ 2550000 .
as of the closing of the cytyc merger , the company borrowed $ 2350000 under the credit facilities.

 |
| table | ( approximate amounts in thousands except per share data ) | 2007
---------------------------------------------------------- | ---------
net revenue                                                | $ 1472400
net income                                                 | $ 62600
net income per share 2014basic                             | $ 0.52
net income per share 2014assuming dilution                 | $ 0.50 |


| _id | dd4985e7a |
| title |  |
| text | company has a contingent liability relating to proper disposition of these balances , which amounted to $ 1926.8 mil- lion at december 31 , 2007 .
as a result of holding these customers 2019 assets in escrow , the company has ongoing programs for realizing economic benefits during the year through favorable borrowing and vendor arrangements with various banks .

there were no loans outstanding as of december 31 , 2007 and these balances were invested in short term , high grade investments that minimize the risk to principal .
leases the company leases certain of its property under leases which expire at various dates .
several of these agreements include escalation clauses and provide for purchases and renewal options for periods ranging from one to five years .

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 , 2012 , and thereafter in the aggregate , are as follows ( in thousands ) : .

in addition , the company has operating lease commitments relating to office equipment and computer hardware with annual lease payments of approximately $ 16.0 million per year which renew on a short-term basis .
rent expense incurred under all operating leases during the years ended december 31 , 2007 , 2006 and 2005 was $ 106.4 million , $ 81.5 million and $ 61.1 million , respectively .
data processing and maintenance services agreements .

the company has agreements with various vendors , which expire between 2008 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 $ 888.3 million as of december 31 , 2007 .

however , this amount could be more or less depending on various factors such as the inflation rate , the introduction of significant new technologies , or changes in the company 2019s data processing needs .
( 17 ) employee benefit plans stock purchase plan prior to the certegy merger ( note 6 ) , fis employees participated in the fidelity national financial , inc .
employee stock purchase plan ( espp ) .

employee stock purchase plan ( espp ) .
subsequent to the certegy merger , the company instituted its own plan with the same terms as the fidelity national financial , inc .
plan .
under the terms of both plans and subsequent amendments , eligible employees may voluntarily purchase , at current market prices , shares of fnf 2019s ( prior to the certegy merger ) or fis 2019s ( post certegy merger ) 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 $ 15.2 million , $ 13.1 million and $ 11.1 million , respectively , for the years ended december 31 , 2007 , 2006 and 2005 relating to the participation of fis employees in the espp .
fidelity national information services , inc .
and subsidiaries and affiliates notes to consolidated and combined financial statements 2014 ( continued )

 |
| table | 2008       | 83382
---------- | --------
2009       | 63060
2010       | 35269
2011       | 21598
2012       | 14860
thereafter | 30869
total      | $ 249038 |


| _id | dd4bf864e |
| title |  |
| text | other-than-temporary impairments on investment securities .
in april 2009 , the fasb revised the authoritative guidance for the recognition and presentation of other-than-temporary impairments .
this new guidance amends the recognition guidance for other-than-temporary impairments of debt securities and expands the financial statement disclosures for other-than-temporary impairments on debt and equity securities .

for available for sale debt securities that the company has no intent to sell and more likely than not will not be required to sell prior to recovery , only the credit loss component of the impairment would be recognized in earnings , while the rest of the fair value loss would be recognized in accumulated other comprehensive income ( loss ) .
the company adopted this guidance effective april 1 , 2009 .

upon adoption the company recognized a cumulative-effect adjustment increase in retained earnings ( deficit ) and decrease in accumulated other comprehensive income ( loss ) as follows : ( dollars in thousands ) .

measurement of fair value in inactive markets .
in april 2009 , the fasb revised the authoritative guidance for fair value measurements and disclosures , which reaffirms that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions .

it also reaffirms the need to use judgment in determining if a formerly active market has become inactive and in determining fair values when the market has become inactive .
there was no impact to the company 2019s financial statements upon adoption .
fair value disclosures about pension plan assets .
in december 2008 , the fasb revised the authoritative guidance for employers 2019 disclosures about pension plan assets .

this new guidance requires additional disclosures about the components of plan assets , investment strategies for plan assets and significant concentrations of risk within plan assets .
the company , in conjunction with fair value measurement of plan assets , separated plan assets into the three fair value hierarchy levels and provided a roll forward of the changes in fair value of plan assets classified as level 3 in the 2009 annual consolidated financial statements .

these disclosures had no effect on the company 2019s accounting for plan benefits and obligations .
revisions to earnings per share calculation .
in june 2008 , the fasb revised the authoritative guidance for earnings per share for determining whether instruments granted in share-based payment transactions are participating securities .

this new guidance requires unvested share-based payment awards that contain non- forfeitable rights to dividends be considered as a separate class of common stock and included in the earnings per share calculation using the two-class method .
the company 2019s restricted share awards meet this definition and are therefore included in the basic earnings per share calculation .
additional disclosures for derivative instruments .

in march 2008 , the fasb issued authoritative guidance for derivative instruments and hedging activities , which requires enhanced disclosures on derivative instruments and hedged items .
on january 1 , 2009 , the company adopted the additional disclosure for the equity index put options .
no comparative information for periods prior to the effective date was required .
this guidance had no impact on how the company records its derivatives.

 |
| table | cumulative-effect adjustment gross | $ 65658
---------------------------------- | --------------
tax                                | -8346 ( 8346 )
cumulative-effect adjustment net   | $ 57312 |


| _id | dd4c0aec0 |
| title |  |
| text | table of contents statutory surplus the table below sets forth statutory surplus for the company 2019s insurance companies as of december 31 , 2012 and 2011: .

statutory capital and surplus for the u.s .
life insurance subsidiaries , including domestic captive insurance subsidiaries , decreased by $ 978 , primarily due to variable annuity surplus impacts of approximately $ 425 , a $ 200 increase in reserves on a change in valuation basis , $ 200 transfer of the mutual funds business from the u.s .
life insurance companies to the life holding company , and an increase in the asset valuation reserve of $ 115 .

as a result of the january 2013 statutory gain from the sale of the retirement plans and individual life businesses , the company's pro forma january 2 , 2013 u.s .
life statutory surplus was estimated to be $ 8.1 billion , before approximately $ 1.5 billion in extraordinary dividends and return of capital to hfsg holding company .

statutory capital and surplus for the property and casualty insurance subsidiaries increased by $ 233 , primarily due to statutory net income , after tax , of $ 727 , unrealized gains of $ 249 , and an increase in statutory admitted deferred tax assets of $ 77 , capital contributions of $ 14 , and an increase of statutory admitted assets of $ 7 , partially offset by dividends to the hfsg holding company of $ 841 .

both net income and dividends are net of interest payments and dividends , respectively , on an intercompany note between hartford holdings , inc .
and hartford fire insurance company .
the company also holds regulatory capital and surplus for its operations in japan .
under the accounting practices and procedures governed by japanese regulatory authorities , the company 2019s statutory capital and surplus was $ 1.1 billion and $ 1.3 billion as of december 31 , 2012 and 2011 , respectively .

statutory capital the company 2019s stockholders 2019 equity , as prepared using u.s .
generally accepted accounting principles ( 201cu.s .
gaap 201d ) was $ 22.4 billion as of december 31 , 2012 .
the company 2019s estimated aggregate statutory capital and surplus , as prepared in accordance with the national association of insurance commissioners 2019 accounting practices and procedures manual ( 201cu.s .
stat 201d ) was $ 14.1 billion as of december 31 , 2012 .
significant differences between u.s .

significant differences between u.s .
gaap stockholders 2019 equity and aggregate statutory capital and surplus prepared in accordance with u.s .
stat include the following : 2022 u.s .
stat excludes equity of non-insurance and foreign insurance subsidiaries not held by u.s .
insurance subsidiaries .
2022 costs incurred by the company to acquire insurance policies are deferred under u.s .
gaap while those costs are expensed immediately under u.s .

2022 temporary differences between the book and tax basis of an asset or liability which are recorded as deferred tax assets are evaluated for recoverability under u.s .
gaap while those amounts deferred are subject to limitations under u.s .
stat .
2022 the assumptions used in the determination of life benefit reserves is prescribed under u.s .
stat , while the assumptions used under u.s .
gaap are generally the company 2019s best estimates .

the methodologies for determining life insurance reserve amounts may also be different .
for example , reserving for living benefit reserves under u.s .
stat is generally addressed by the commissioners 2019 annuity reserving valuation methodology and the related actuarial guidelines , while under u.s .
gaap , those same living benefits may be considered embedded derivatives and recorded at fair value or they may be considered sop 03-1 reserves .

the sensitivity of these life insurance reserves to changes in equity markets , as applicable , will be different between u.s .
gaap and u.s .
stat .
2022 the difference between the amortized cost and fair value of fixed maturity and other investments , net of tax , is recorded as an increase or decrease to the carrying value of the related asset and to equity under u.s .
gaap , while u.s .

gaap , while u.s .
stat only records certain securities at fair value , such as equity securities and certain lower rated bonds required by the naic to be recorded at the lower of amortized cost or fair value .
2022 u.s .
stat for life insurance companies establishes a formula reserve for realized and unrealized losses due to default and equity risks associated with certain invested assets ( the asset valuation reserve ) , while u.s .
gaap does not .

gaap does not .
also , for those realized gains and losses caused by changes in interest rates , u.s .
stat for life insurance companies defers and amortizes the gains and losses , caused by changes in interest rates , into income over the original life to maturity of the asset sold ( the interest maintenance reserve ) while u.s .
gaap does not .
2022 goodwill arising from the acquisition of a business is tested for recoverability on an annual basis ( or more frequently , as necessary ) for u.s .

gaap , while under u.s .
stat goodwill is amortized over a period not to exceed 10 years and the amount of goodwill is limited.

 |
| table | | 2012    | 2011
---------------------------------------------------------------------------------- | ------- | -------
u.s . life insurance subsidiaries includes domestic captive insurance subsidiaries | $ 6410  | $ 7388
property and casualty insurance subsidiaries                                       | 7645    | 7412
total                                                                              | $ 14055 | $ 14800 |