| _id | dd4c277dc |
| title |  |
| text | entergy corporation notes to consolidated financial statements sale and leaseback transactions waterford 3 lease obligations in 1989 , entergy louisiana sold and leased back 9.3% ( 9.3 % ) of its interest in waterford 3 for the aggregate sum of $ 353.6 million .
the lease has an approximate term of 28 years .
the lessors financed the sale-leaseback through the issuance of waterford 3 secured lease obligation bonds .
the lease payments made by entergy louisiana are sufficient to service the debt .

in 1994 , entergy louisiana did not exercise its option to repurchase the 9.3% ( 9.3 % ) interest in waterford 3 .
as a result , entergy louisiana issued $ 208.2 million of non-interest bearing first mortgage bonds as collateral for the equity portion of certain amounts payable under the lease .
in 1997 , the lessors refinanced the outstanding bonds used to finance the purchase of waterford 3 at lower interest rates , which reduced the annual lease payments .

upon the occurrence of certain events , entergy louisiana may be obligated to assume the outstanding bonds used to finance the purchase of the unit and to pay an amount sufficient to withdraw from the lease transaction .

such events include lease events of default , events of loss , deemed loss events , or certain adverse "financial events." "financial events" include , among other things , failure by entergy louisiana , following the expiration of any applicable grace or cure period , to maintain ( i ) total equity capital ( including preferred stock ) at least equal to 30% ( 30 % ) of adjusted capitalization , or ( ii ) a fixed charge coverage ratio of at least 1.50 computed on a rolling 12 month basis .

as of december 31 , 2003 , entergy louisiana's total equity capital ( including preferred stock ) was 49.82% ( 49.82 % ) of adjusted capitalization and its fixed charge coverage ratio for 2003 was 4.06 .
as of december 31 , 2003 , entergy louisiana had future minimum lease payments ( reflecting an overall implicit rate of 7.45% ( 7.45 % ) ) in connection with the waterford 3 sale and leaseback transactions , which are recorded as long-term debt , as follows: .

grand gulf 1 lease obligations in december 1988 , system energy sold 11.5% ( 11.5 % ) of its undivided ownership interest in grand gulf 1 for the aggregate sum of $ 500 million .
subsequently , system energy leased back its interest in the unit for a term of 26-1/2 years .
system energy has the option of terminating the lease and repurchasing the 11.5% ( 11.5 % ) interest in the unit at certain intervals during the lease .

furthermore , at the end of the lease term , system energy has the option of renewing the lease or repurchasing the 11.5% ( 11.5 % ) interest in grand gulf 1 .
system energy is required to report the sale-leaseback as a financing transaction in its financial statements .
for financial reporting purposes , system energy expenses the interest portion of the lease obligation and the plant

 |
| table | | ( in thousands )
------------------------------------------- | ----------------
2004                                        | $ 31739
2005                                        | 14554
2006                                        | 18262
2007                                        | 18754
2008                                        | 22606
years thereafter                            | 366514
total                                       | 472429
less : amount representing interest         | 209895
present value of net minimum lease payments | $ 262534 |


| _id | dd4bb8fa8 |
| title |  |
| text | generate cash without additional external financings .
free cash flow should be considered in addition to , rather than as a substitute for , cash provided by operating activities .
the following table reconciles cash provided by operating activities ( gaap measure ) to free cash flow ( non-gaap measure ) : millions 2014 2013 2012 .

2015 outlook f0b7 safety 2013 operating a safe railroad benefits all our constituents : our employees , customers , shareholders and the communities we serve .
we will continue using a multi-faceted approach to safety , utilizing technology , risk assessment , quality control , training and employee engagement , and targeted capital investments .

we will continue using and expanding the deployment of total safety culture and courage to care throughout our operations , which allows us to identify and implement best practices for employee and operational safety .

we will continue our efforts to increase detection of rail defects ; improve or close crossings ; and educate the public and law enforcement agencies about crossing safety through a combination of our own programs ( including risk assessment strategies ) , industry programs and local community activities across our network .
f0b7 network operations 2013 in 2015 , we will continue to add resources to support growth , improve service , and replenish our surge capability .

f0b7 fuel prices 2013 with the dramatic drop in fuel prices at the end of 2014 , there is even more uncertainty around the projections of fuel prices .
we again could see volatile fuel prices during the year , as they are sensitive to global and u.s .
domestic demand , refining capacity , geopolitical events , weather conditions and other factors .
as prices fluctuate there will be a timing impact on earnings , as our fuel surcharge programs trail fluctuations in fuel price by approximately two months .

lower fuel prices could have a positive impact on the economy by increasing consumer discretionary spending that potentially could increase demand for various consumer products that we transport .
alternatively , lower fuel prices will likely have a negative impact on other commodities such as coal , frac sand and crude oil shipments .
f0b7 capital plan 2013 in 2015 , we expect our capital plan to be approximately $ 4.3 billion , including expenditures for ptc and 218 locomotives .

the capital plan may be revised if business conditions warrant or if new laws or regulations affect our ability to generate sufficient returns on these investments .
( see further discussion in this item 7 under liquidity and capital resources 2013 capital plan. ) f0b7 financial expectations 2013 we expect the overall u.s .
economy to continue to improve at a moderate pace .
one of the biggest uncertainties is the outlook for energy markets , which will bring both challenges and opportunities .

on balance , we expect to see positive volume growth for 2015 versus the prior year .
in the current environment , we expect continued margin improvement driven by continued pricing opportunities , ongoing productivity initiatives and the ability to leverage our resources as we improve the fluidity of our network.

 |
| table | millions                              | 2014           | 2013           | 2012
------------------------------------- | -------------- | -------------- | --------------
cash provided by operating activities | $ 7385         | $ 6823         | $ 6161
cash used in investing activities     | -4249 ( 4249 ) | -3405 ( 3405 ) | -3633 ( 3633 )
dividends paid                        | -1632 ( 1632 ) | -1333 ( 1333 ) | -1146 ( 1146 )
free cash flow                        | $ 1504         | $ 2085         | $ 1382 |


| _id | dd4bc7a6c |
| title |  |
| text | management 2019s discussion and analysis net revenues in equities were $ 8.21 billion for 2012 , essentially unchanged compared with 2011 .
net revenues in securities services were significantly higher compared with 2011 , reflecting a gain of $ 494 million on the sale of our hedge fund administration business .

in addition , equities client execution net revenues were higher than 2011 , primarily reflecting significantly higher results in cash products , principally due to increased levels of client activity .
these increases were offset by lower commissions and fees , reflecting declines in the united states , europe and asia .
our average daily volumes during 2012 were lower in each of these regions compared with 2011 , consistent with listed cash equity market volumes .

during 2012 , equities operated in an environment generally characterized by an increase in global equity prices and lower volatility levels .

the net loss attributable to the impact of changes in our own credit spreads on borrowings for which the fair value option was elected was $ 714 million ( $ 433 million and $ 281 million related to fixed income , currency and commodities client execution and equities client execution , respectively ) for 2012 , compared with a net gain of $ 596 million ( $ 399 million and $ 197 million related to fixed income , currency and commodities client execution and equities client execution , respectively ) for

equities client execution , respectively ) for 2011 .

during 2012 , institutional client services operated in an environment generally characterized by continued broad market concerns and uncertainties , although positive developments helped to improve market conditions .
these developments included certain central bank actions to ease monetary policy and address funding risks for european financial institutions .
in addition , the u.s .
economy posted stable to improving economic data , including favorable developments in unemployment and housing .

these improvements resulted in tighter credit spreads , higher global equity prices and lower levels of volatility .
however , concerns about the outlook for the global economy and continued political uncertainty , particularly the political debate in the united states surrounding the fiscal cliff , generally resulted in client risk aversion and lower activity levels .
also , uncertainty over financial regulatory reform persisted .

operating expenses were $ 12.48 billion for 2012 , 3% ( 3 % ) lower than 2011 , primarily due to lower brokerage , clearing , exchange and distribution fees , and lower impairment charges , partially offset by higher net provisions for litigation and regulatory proceedings .
pre- tax earnings were $ 5.64 billion in 2012 , 27% ( 27 % ) higher than 2011 .
investing & lending investing & lending includes our investing activities and the origination of loans to provide financing to clients .

these investments , some of which are consolidated , and loans are typically longer-term in nature .
we make investments , directly and indirectly through funds that we manage , in debt securities and loans , public and private equity securities , and real estate entities .
the table below presents the operating results of our investing & lending segment. .

2013 versus 2012 .
net revenues in investing & lending were $ 7.02 billion for 2013 , 19% ( 19 % ) higher than 2012 , reflecting a significant increase in net gains from investments in equity securities , driven by company-specific events and stronger corporate performance , as well as significantly higher global equity prices .

in addition , net gains and net interest income from debt securities and loans were slightly higher , while other net revenues , related to our consolidated investments , were lower compared with 2012 .
if equity markets decline or credit spreads widen , net revenues in investing & lending would likely be negatively impacted .
operating expenses were $ 2.68 billion for 2013 , essentially unchanged compared with 2012 .

operating expenses during 2013 included lower impairment charges and lower operating expenses related to consolidated investments , partially offset by increased compensation and benefits expenses due to higher net revenues compared with 2012 .
pre-tax earnings were $ 4.33 billion in 2013 , 34% ( 34 % ) higher than 2012 .
52 goldman sachs 2013 annual report

 |
| table | in millions                | year ended december 2013 | year ended december 2012 | year ended december 2011
-------------------------- | ------------------------ | ------------------------ | ------------------------
equity securities          | $ 3930                   | $ 2800                   | $ 603
debt securities and loans  | 1947                     | 1850                     | 96
other                      | 1141                     | 1241                     | 1443
total net revenues         | 7018                     | 5891                     | 2142
operating expenses         | 2684                     | 2666                     | 2673
pre-tax earnings/ ( loss ) | $ 4334                   | $ 3225                   | $ -531 ( 531 ) |


| _id | dd4b92d62 |
| title |  |
| text | marathon oil corporation notes to consolidated financial statements the changes in the carrying amount of goodwill for the years ended december 31 , 2007 , and 2008 , were as follows : ( in millions ) e&p osm rm&t total .

( a ) adjustments related to prior period income tax and royalty adjustments .
( b ) goodwill was allocated to the norwegian outside-operated properties sold in 2008 .
17 .
fair value measurements as defined in sfas no .
157 , 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 .
sfas no .

sfas no .
157 describes three approaches to measuring the fair value of assets and liabilities : the market approach , the income approach and the cost approach , each of which includes multiple valuation techniques .
the market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities .

the income approach uses valuation techniques to measure fair value by converting future amounts , such as cash flows or earnings , into a single present value amount using current market expectations about those future amounts .
the cost approach is based on the amount that would currently be required to replace the service capacity of an asset .
this is often referred to as current replacement cost .

the cost approach assumes that the fair value would not exceed what it would cost a market participant to acquire or construct a substitute asset of comparable utility , adjusted for obsolescence .
sfas no .
157 does not prescribe which valuation technique should be used when measuring fair value and does not prioritize among the techniques .
sfas no .
157 establishes a fair value hierarchy that prioritizes the inputs used in applying the various valuation techniques .

inputs broadly refer to the assumptions that market participants use to make pricing decisions , including assumptions about risk .
level 1 inputs are given the highest priority in the fair value hierarchy while level 3 inputs are given the lowest priority .
the three levels of the fair value hierarchy are as follows .
2022 level 1 2013 observable inputs that reflect unadjusted quoted prices for identical assets or liabilities in active markets as of the reporting date .

active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis .
2022 level 2 2013 observable market-based inputs or unobservable inputs that are corroborated by market data .
these are inputs other than quoted prices in active markets included in level 1 , which are either directly or indirectly observable as of the reporting date .

2022 level 3 2013 unobservable inputs that are not corroborated by market data and may be used with internally developed methodologies that result in management 2019s best estimate of fair value .
we use a market or income approach for recurring fair value measurements and endeavor to use the best information available .
accordingly , valuation techniques that maximize the use of observable inputs are favored .

financial assets and liabilities are classified in their entirety based on the lowest priority level of input that is significant to the fair value measurement .
the assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement of assets and liabilities within the levels of the fair value hierarchy.

 |
| table | ( in millions )                | e&p        | osm            | rm&t     | total
------------------------------ | ---------- | -------------- | -------- | --------------
balance as of december 31 2006 | $ 519      | $ 2013         | $ 879    | $ 1398
acquired                       | 71         | 1437           | 2013     | 1508
adjusted ( a )                 | 2013       | 2013           | -7 ( 7 ) | -7 ( 7 )
balance as of december 31 2007 | 590        | 1437           | 872      | 2899
adjusted ( a )                 | -17 ( 17 ) | -25 ( 25 )     | 7        | -35 ( 35 )
impaired                       | 2013       | -1412 ( 1412 ) | 2013     | -1412 ( 1412 )
disposed ( b )                 | -5 ( 5 )   |                | 2013     | -5 ( 5 )
balance as of december 31 2008 | $ 568      | $ 2013         | $ 879    | $ 1447 |


| _id | dd4bbc202 |
| title |  |
| text | performance graph the table below compares the cumulative total shareholder return on our common stock with the cumulative total return of ( i ) the standard & poor 2019s 500 composite stock index ( 201cs&p 500 index 201d ) , ( ii ) the standard & poor 2019s industrials index ( 201cs&p industrials index 201d ) and ( iii ) the standard & poor 2019s consumer durables & apparel index ( 201cs&p consumer durables & apparel index 201d ) , from december 31 , 2005 through december 31 , 2010 , when the closing price

december 31 , 2010 , when the closing price of our common stock was $ 12.66 .

the graph assumes investments of $ 100 on december 31 , 2005 in our common stock and in each of the three indices and the reinvestment of dividends .

performance graph 201020092008200720062005 s&p 500 index s&p industrials index s&p consumer durables & apparel index the table below sets forth the value , as of december 31 for each of the years indicated , of a $ 100 investment made on december 31 , 2005 in each of our common stock , the s&p 500 index , the s&p industrials index and the s&p consumer durables & apparel index and includes the reinvestment of dividends. .

in july 2007 , our board of directors authorized the purchase of up to 50 million shares of our common stock in open-market transactions or otherwise .
at december 31 , 2010 , we had remaining authorization to repurchase up to 27 million shares .
during 2010 , we repurchased and retired three million shares of our common stock , for cash aggregating $ 45 million to offset the dilutive impact of the 2010 grant of three million shares of long-term stock awards .

we did not purchase any shares during the three months ended december 31 , 2010.

 |
| table | | 2006     | 2007     | 2008    | 2009    | 2010
------------------------------------- | -------- | -------- | ------- | ------- | --------
masco                                 | $ 101.79 | $ 76.74  | $ 42.81 | $ 54.89 | $ 51.51
s&p 500 index                         | $ 115.61 | $ 121.95 | $ 77.38 | $ 97.44 | $ 111.89
s&p industrials index                 | $ 113.16 | $ 126.72 | $ 76.79 | $ 92.30 | $ 116.64
s&p consumer durables & apparel index | $ 106.16 | $ 84.50  | $ 56.13 | $ 76.51 | $ 99.87 |


| _id | dd4c52c70 |
| title |  |
| text | net impairment we recognized $ 16.9 million and $ 14.9 million of net impairment during the years ended december 31 , 2012 and 2011 , respectively , on certain securities in our non-agency cmo portfolio due to continued deterioration in the expected credit performance of the underlying loans in those specific securities .

the gross other-than-temporary impairment ( 201cotti 201d ) and the noncredit portion of otti , which was or had been previously recorded through other comprehensive income ( loss ) , are shown in the table below ( dollars in millions ) : year ended december 31 , 2012 2011 .

provision for loan losses provision for loan losses decreased 20% ( 20 % ) to $ 354.6 million for the year ended december 31 , 2012 compared to 2011 .
the decrease in provision for loan losses was driven primarily by improving credit trends , as evidenced by the lower levels of delinquent loans in the one- to four-family and home equity loan portfolios , and loan portfolio run-off .

the decrease was partially offset by $ 50 million in charge-offs associated with newly identified bankruptcy filings during the third quarter of 2012 , with approximately 80% ( 80 % ) related to prior years .
we utilize third party loan servicers to obtain bankruptcy data on our borrowers and during the third quarter of 2012 , we identified an increase in bankruptcies reported by one specific servicer .

in researching this increase , we discovered that the servicer had not been reporting historical bankruptcy data on a timely basis .
as a result , we implemented an enhanced procedure around all servicer reporting to corroborate bankruptcy reporting with independent third party data .

through this additional process , approximately $ 90 million of loans were identified in which servicers failed to report the bankruptcy filing to us , approximately 90% ( 90 % ) of which were current at the end of the third quarter of 2012 .
as a result , these loans were written down to the estimated current value of the underlying property less estimated selling costs , or approximately $ 40 million , during the third quarter of 2012 .

these charge-offs resulted in an increase to provision for loan losses of $ 50 million for the year ended december 31 , 2012 .
the provision for loan losses has declined four consecutive years , down 78% ( 78 % ) from its peak of $ 1.6 billion for the year ended december 31 , 2008 .
we expect provision for loan losses to continue to decline over the long term , although it is subject to variability in any given quarter.

 |
| table | | year ended december 31 2012 | 2011
-------------------------------------------------------------------------------------------------------------- | --------------------------- | ----------------
other-than-temporary impairment ( 201cotti 201d )                                                              | $ -19.8 ( 19.8 )            | $ -9.2 ( 9.2 )
less : noncredit portion of otti recognized into ( out of ) other comprehensive income ( loss ) ( before tax ) | 2.9                         | -5.7 ( 5.7 )
net impairment                                                                                | $ -16.9 ( 16.9 )            | $ -14.9 ( 14.9 ) |


| _id | dd4bd3484 |
| title |  |
| text | underlying physical transaction occurs .
we have not qualified commodity derivative instruments used in our osm or rm&t segments for hedge accounting .
as a result , we recognize in net income all changes in the fair value of derivative instruments used in those operations .

open commodity derivative positions as of december 31 , 2008 and sensitivity analysis at december 31 , 2008 , our e&p segment held open derivative contracts to mitigate the price risk on natural gas held in storage or purchased to be marketed with our own natural gas production in amounts that were in line with normal levels of activity .

at december 31 , 2008 , we had no significant open derivative contracts related to our future sales of liquid hydrocarbons and natural gas and therefore remained substantially exposed to market prices of these commodities .
the osm segment holds crude oil options which were purchased by western for a three year period ( january 2007 to december 2009 ) .

the premiums for the purchased put options had been partially offset through the sale of call options for the same three-year period , resulting in a net premium liability .
payment of the net premium liability is deferred until the settlement of the option contracts .
as of december 31 , 2008 , the following put and call options were outstanding: .

in the first quarter of 2009 , we sold derivative instruments at an average exercise price of $ 50.50 which effectively offset the open put options for the remainder of 2009 .
at december 31 , 2008 , the number of open derivative contracts held by our rm&t segment was lower than in previous periods .

starting in the second quarter of 2008 , we decreased our use of derivatives to mitigate crude oil price risk between the time that domestic spot crude oil purchases are priced and when they are actually refined into salable petroleum products .
instead , we are addressing this price risk through other means , including changes in contractual terms and crude oil acquisition practices .

additionally , in previous periods , certain contracts in our rm&t segment for the purchase or sale of commodities were not qualified or designated as normal purchase or normal sales under generally accepted accounting principles and therefore were accounted for as derivative instruments .
during the second quarter of 2008 , as we decreased our use of derivatives , we began to designate such contracts for the normal purchase and normal sale exclusion.

 |
| table | option expiration date                          | 2009
----------------------------------------------- | -------
option contract volumes ( barrels per day ) :   |
put options purchased                           | 20000
call options sold                               | 15000
average exercise price ( dollars per barrel ) : |
put options                                     | $ 50.50
call options                                    | $ 90.50 |


| _id | dd497be3e |
| title |  |
| text | impairment the following table presents net unrealized losses on securities available for sale as of december 31: .

the net unrealized amounts presented above excluded the remaining net unrealized losses related to reclassifications of securities available for sale to securities held to maturity .
these unrealized losses related to reclassifications totaled $ 303 million , or $ 189 million after-tax , and $ 523 million , or $ 317 million after-tax , as of december 31 , 2011 and 2010 , respectively , and were recorded in accumulated other comprehensive income , or oci .

refer to note 12 to the consolidated financial statements included under item 8 .
the decline in these remaining after-tax unrealized losses related to reclassifications from december 31 , 2010 to december 31 , 2011 resulted primarily from amortization .
we conduct periodic reviews of individual securities to assess whether other-than-temporary impairment exists .
to the extent that other-than-temporary impairment is identified , the impairment is broken into a credit component and a non-credit component .

the credit component is recorded in our consolidated statement of income , and the non-credit component is recorded in oci to the extent that we do not intend to sell the security .
our assessment of other-than-temporary impairment involves an evaluation , more fully described in note 3 , of economic and security-specific factors .
such factors are based on estimates , derived by management , which contemplate current market conditions and security-specific performance .

to the extent that market conditions are worse than management 2019s expectations , other-than-temporary impairment could increase , in particular , the credit component that would be recorded in our consolidated statement of income .
given the exposure of our investment securities portfolio , particularly mortgage- and asset-backed securities , to residential mortgage and other consumer credit risks , the performance of the u.s .

housing market is a significant driver of the portfolio 2019s credit performance .
as such , our assessment of other-than-temporary impairment relies to a significant extent on our estimates of trends in national housing prices .
generally , indices that measure trends in national housing prices are published in arrears .
as of september 30 , 2011 , national housing prices , according to the case-shiller national home price index , had declined by approximately 31.3% ( 31.3 % ) peak-to-current .

overall , management 2019s expectation , for purposes of its evaluation of other-than-temporary impairment as of december 31 , 2011 , was that housing prices would decline by approximately 35% ( 35 % ) peak-to-trough .
the performance of certain mortgage products and vintages of securities continues to deteriorate .
in addition , management continues to believe that housing prices will decline further as indicated above .

the combination of these factors has led to an increase in management 2019s overall loss expectations .
our investment portfolio continues to be sensitive to management 2019s estimates of future cumulative losses .
ultimately , other-than- temporary impairment is based on specific cusip-level detailed analysis of the unique characteristics of each security .
in addition , we perform sensitivity analysis across each significant product type within the non-agency u.s .
residential mortgage-backed portfolio .

residential mortgage-backed portfolio .
we estimate , for example , that other-than-temporary impairment of the investment portfolio could increase by approximately $ 10 million to $ 50 million , if national housing prices were to decline by 37% ( 37 % ) to 39% ( 39 % ) peak-to-trough , compared to management 2019s expectation of 35% ( 35 % ) described above .

this sensitivity estimate is based on a number of factors , including , but not limited to , the level of housing prices and the timing of defaults .
to the extent that such factors differ substantially from management 2019s current expectations , resulting loss estimates may differ materially from those stated .
excluding the securities for which other-than-temporary impairment was recorded in 2011 , management considers the aggregate decline in fair value of the remaining

 |
| table | ( in millions )               | 2011           | 2010
----------------------------- | -------------- | --------------
fair value                    | $ 99832        | $ 81881
amortized cost                | 100013         | 82329
net unrealized loss pre-tax   | $ -181 ( 181 ) | $ -448 ( 448 )
net unrealized loss after-tax | $ -113 ( 113 ) | $ -270 ( 270 ) |


| _id | dd4c0e962 |
| title |  |
| text | cost amount could have a material adverse effect on our business .
these changes may include , for example , an increase or reduction in the number of persons enrolled or eligible to enroll due to the federal government 2019s decision to increase or decrease u.s .
military presence around the world .
in the event government reimbursements were to decline from projected amounts , our failure to reduce the health care costs associated with these programs could have a material adverse effect on our business .

during 2004 , we completed a contractual transition of our tricare business .
on july 1 , 2004 , our regions 2 and 5 contract servicing approximately 1.1 million tricare members became part of the new north region , which was awarded to another contractor .
on august 1 , 2004 , our regions 3 and 4 contract became part of our new south region contract .
on november 1 , 2004 , the region 6 contract with approximately 1 million members became part of the south region contract .

the members added with the region 6 contract essentially offset the members lost four months earlier with the expiration of our regions 2 and 5 contract .
for the year ended december 31 , 2005 , tricare premium revenues were approximately $ 2.4 billion , or 16.9% ( 16.9 % ) of our total premiums and aso fees .
part of the tricare transition during 2004 included the carve out of the tricare senior pharmacy and tricare for life program which we previously administered on as aso basis .

on june 1 , 2004 and august 1 , 2004 , administrative services under these programs were transferred to another contractor .
for the year ended december 31 , 2005 , tricare administrative services fees totaled $ 50.1 million , or 0.4% ( 0.4 % ) of our total premiums and aso fees .

our products marketed to commercial segment employers and members consumer-choice products over the last several years , we have developed and offered various commercial products designed to provide options and choices to employers that are annually facing substantial premium increases driven by double-digit medical cost inflation .

these consumer-choice products , which can be offered on either a fully insured or aso basis , provided coverage to approximately 371100 members at december 31 , 2005 , representing approximately 11.7% ( 11.7 % ) of our total commercial medical membership as detailed below .
consumer-choice membership other commercial membership commercial medical membership .

these products are often offered to employer groups as 201cbundles 201d , where the subscribers are offered various hmo and ppo options , with various employer contribution strategies as determined by the employer .
paramount to our consumer-choice product strategy , we have developed a group of innovative consumer products , styled as 201csmart 201d products , that we believe will be a long-term solution for employers .

we believe this new generation of products provides more ( 1 ) choices for the individual consumer , ( 2 ) transparency of provider costs , and ( 3 ) benefit designs that engage consumers in the costs and effectiveness of health care choices .

innovative tools and technology are available to assist consumers with these decisions , including the trade-offs between higher premiums and point-of-service costs at the time consumers choose their plans , and to suggest ways in which the consumers can maximize their individual benefits at the point they use their plans .
we believe that when consumers can make informed choices about the cost and effectiveness of their health care , a sustainable long term solution for employers can be realized .

smart products , which accounted for approximately 65.1% ( 65.1 % ) of enrollment in all of our consumer-choice plans as of december 31 , 2005 , only are sold to employers who use humana as their sole health insurance carrier.

 |
| table | | consumer-choice membership | other commercial membership | commercial medical membership
---------------------------- | -------------------------- | --------------------------- | -----------------------------
fully insured                | 184000                     | 1815800                     | 1999800
administrative services only | 187100                     | 983900                      | 1171000
total commercial medical     | 371100                     | 2799700                     | 3170800 |


| _id | dd4b9cbaa |
| title |  |
| text | for the valuation of the 4199466 performance-based options granted in 2005 : the risk free interest rate was 4.2% ( 4.2 % ) , the volatility factor for the expected market price of the common stock was 44% ( 44 % ) , the expected dividend yield was zero and the objective time to exercise was 4.7 years with an objective in the money assumption of 2.95 years .
it was also expected that the initial public offering assumption would occur within a 9 month period from grant date .

the fair value of the performance-based options was calculated to be $ 5.85 .
the fair value for fis options granted in 2006 was estimated at the date of grant using a black-scholes option- pricing model with the following weighted average assumptions .
the risk free interest rates used in the calculation are the rate that corresponds to the weighted average expected life of an option .
the risk free interest rate used for options granted during 2006 was 4.9% ( 4.9 % ) .

a volatility factor for the expected market price of the common stock of 30% ( 30 % ) was used for options granted in 2006 .
the expected dividend yield used for 2006 was 0.5% ( 0.5 % ) .
a weighted average expected life of 6.4 years was used for 2006 .
the weighted average fair value of each option granted during 2006 was $ 15.52 .

at december 31 , 2006 , the total unrecognized compensation cost related to non-vested stock option grants is $ 86.1 million , which is expected to be recognized in pre-tax income over a weighted average period of 1.9 years .
the company intends to limit dilution caused by option exercises , including anticipated exercises , by repurchasing shares on the open market or in privately negotiated transactions .
during 2006 , the company repurchased 4261200 shares at an average price of $ 37.60 .

on october 25 , 2006 , the company 2019s board of directors approved a plan authorizing the repurchase of up to an additional $ 200 million worth of the company 2019s common stock .
defined benefit plans certegy pension plan in connection with the certegy merger , the company announced that it will terminate and settle the certegy u.s .
retirement income plan ( usrip ) .

retirement income plan ( usrip ) .
the estimated impact of this settlement was reflected in the purchase price allocation as an increase in the pension liability , less the fair value of the pension plan assets , based on estimates of the total cost to settle the liability through the purchase of annuity contracts or lump sum settlements to the beneficiaries .
the final settlement will not occur until after an irs determination has been obtained , which is expected to be received in 2007 .

in addition to the net pension plan obligation of $ 21.6 million , the company assumed liabilities of $ 8.0 million for certegy 2019s supplemental executive retirement plan ( 201cserp 201d ) and $ 3.0 mil- lion for a postretirement benefit plan .
a reconciliation of the changes in the fair value of plan assets of the usrip for the period from february 1 , 2006 through december 31 , 2006 is as follows ( in thousands ) : .

benefits paid in the above table include only those amounts paid directly from plan assets .
as of december 31 , 2006 and for 2007 through the pay out of the pension liability , the assets are being invested in u.s .
treasury bonds due to the short duration until final payment .
fidelity national information services , inc .
and subsidiaries and affiliates consolidated and combined financial statements notes to consolidated and combined financial statements 2014 ( continued )

 |
| table | | 2006
--------------------------------------------- | ------------
fair value of plan assets at acquisition date | $ 57369
actual return on plan assets                  | 8200
benefits paid                                 | -797 ( 797 )
fair value of plan assets at end of year      | $ 64772 |


| _id | dd4c4ff98 |
| title |  |
| text | the aes corporation notes to consolidated financial statements 2014 ( continued ) december 31 , 2010 , 2009 , and 2008 recourse debt as of december 31 , 2010 is scheduled to reach maturity as set forth in the table below : december 31 , annual maturities ( in millions ) .

recourse debt transactions during 2010 , the company redeemed $ 690 million aggregate principal of its 8.75% ( 8.75 % ) second priority senior secured notes due 2013 ( 201cthe 2013 notes 201d ) .
the 2013 notes were redeemed at a redemption price equal to 101.458% ( 101.458 % ) of the principal amount redeemed .

the company recognized a pre-tax loss on the redemption of the 2013 notes of $ 15 million for the year ended december 31 , 2010 , which is included in 201cother expense 201d in the accompanying consolidated statement of operations .
on july 29 , 2010 , the company entered into a second amendment ( 201camendment no .

2 201d ) to the fourth amended and restated credit and reimbursement agreement , dated as of july 29 , 2008 , among the company , various subsidiary guarantors and various lending institutions ( the 201cexisting credit agreement 201d ) that amends and restates the existing credit agreement ( as so amended and restated by amendment no .
2 , the 201cfifth amended and restated credit agreement 201d ) .

the fifth amended and restated credit agreement adjusted the terms and conditions of the existing credit agreement , including the following changes : 2022 the aggregate commitment for the revolving credit loan facility was increased to $ 800 million ; 2022 the final maturity date of the revolving credit loan facility was extended to january 29 , 2015 ; 2022 changes to the facility fee applicable to the revolving credit loan facility ; 2022 the interest rate margin applicable to the revolving credit loan

margin applicable to the revolving credit loan facility is now based on the credit rating assigned to the loans under the credit agreement , with pricing currently at libor + 3.00% ( 3.00 % ) ; 2022 there is an undrawn fee of 0.625% ( 0.625 % ) per annum ; 2022 the company may incur a combination of additional term loan and revolver commitments so long as total term loan and revolver commitments ( including those currently outstanding ) do not exceed $ 1.4 billion ; and 2022 the negative pledge ( i.e. , a

billion ; and 2022 the negative pledge ( i.e. , a cap on first lien debt ) of $ 3.0 billion .

recourse debt covenants and guarantees certain of the company 2019s obligations under the senior secured credit facility are guaranteed by its direct subsidiaries through which the company owns its interests in the aes shady point , aes hawaii , aes warrior run and aes eastern energy businesses .

the company 2019s obligations under the senior secured credit facility are , subject to certain exceptions , secured by : ( i ) all of the capital stock of domestic subsidiaries owned directly by the company and 65% ( 65 % ) of the capital stock of certain foreign subsidiaries owned directly or indirectly by the company ; and

 |
| table | december 31,        | annual maturities ( in millions )
------------------- | ---------------------------------
2011                | $ 463
2012                | 2014
2013                | 2014
2014                | 497
2015                | 500
thereafter          | 3152
total recourse debt | $ 4612 |


| _id | dd4baa93a |
| title |  |
| text | table of contents the following performance graph is not 201csoliciting material , 201d is not deemed filed with the sec , and is not to be incorporated by reference into any of valero 2019s filings under the securities act of 1933 or the securities exchange act of 1934 , as amended , respectively .
this performance graph and the related textual information are based on historical data and are not indicative of future performance .

the following line graph compares the cumulative total return 1 on an investment in our common stock against the cumulative total return of the s&p 500 composite index and an index of peer companies ( that we selected ) for the five-year period commencing december 31 , 2008 and ending december 31 , 2013 .
our peer group comprises the following 11 companies : alon usa energy , inc. ; bp plc ; cvr energy , inc. ; delek us holdings , inc .

( dk ) ; hollyfrontier corporation ; marathon petroleum corporation ; pbf energy inc .
( pbf ) ; phillips 66 ; royal dutch shell plc ; tesoro corporation ; and western refining , inc .
our peer group previously included hess corporation , but it has exited the refining business , and was replaced in our peer group by dk and pbf who are also engaged in refining operations .

comparison of 5 year cumulative total return1 among valero energy corporation , the s&p 500 index , old peer group , and new peer group .

____________ 1 assumes that an investment in valero common stock and each index was $ 100 on december 31 , 2008 .
201ccumulative total return 201d is based on share price appreciation plus reinvestment of dividends from december 31 , 2008 through december 31 , 2013.

 |
| table | | 12/2008  | 12/2009 | 12/2010  | 12/2011  | 12/2012  | 12/2013
------------------- | -------- | ------- | -------- | -------- | -------- | --------
valero common stock | $ 100.00 | $ 79.77 | $ 111.31 | $ 102.57 | $ 170.45 | $ 281.24
s&p 500             | 100.00   | 126.46  | 145.51   | 148.59   | 172.37   | 228.19
old peer group      | 100.00   | 126.98  | 122.17   | 127.90   | 138.09   | 170.45
new peer group      | 100.00   | 127.95  | 120.42   | 129.69   | 136.92   | 166.57 |


| _id | dd4bb0038 |
| title |  |
| text | jpmorgan chase & co .
/ 2007 annual report 117 nonrecurring fair value changes the following table presents the total change in value of financial instruments for which a fair value adjustment has been included in the consolidated statement of income for the year ended december 31 , 2007 , related to financial instruments held at december 31 , 2007 .
year ended december 31 , 2007 ( in millions ) 2007 .

in the above table , loans principally include changes in fair value for loans carried on the balance sheet at the lower of cost or fair value ; and accounts payable , accrued expense and other liabilities principally includes the change in fair value for unfunded lending-related commitments within the leveraged lending portfolio .
level 3 assets analysis level 3 assets ( including assets measured at the lower of cost or fair value ) were 5% ( 5 % ) of total firm assets at december 31 , 2007 .

these assets increased during 2007 principally during the second half of the year , when liquidity in mortgages and other credit products fell dra- matically .
the increase was primarily due to an increase in leveraged loan balances within level 3 as the ability of the firm to syndicate this risk to third parties became limited by the credit environment .
in addi- tion , there were transfers from level 2 to level 3 during 2007 .

these transfers were principally for instruments within the mortgage market where inputs which are significant to their valuation became unob- servable during the year .

subprime and alt-a whole loans , subprime home equity securities , commercial mortgage-backed mezzanine loans and credit default swaps referenced to asset-backed securities consti- tuted the majority of the affected instruments , reflecting a significant decline in liquidity in these instruments in the third and fourth quarters of 2007 , as new issue activity was nonexistent and independent pric- ing information was no longer available for these assets .

transition in connection with the initial adoption of sfas 157 , the firm recorded the following on january 1 , 2007 : 2022 a cumulative effect increase to retained earnings of $ 287 million , primarily related to the release of profit previously deferred in accordance with eitf 02-3 ; 2022 an increase to pretax income of $ 166 million ( $ 103 million after-tax ) related to the incorporation of the firm 2019s creditworthiness in the valuation of liabilities recorded at fair value ; and 2022 an increase to

recorded at fair value ; and 2022 an increase to pretax income of $ 464 million ( $ 288 million after-tax ) related to valuations of nonpublic private equity investments .

prior to the adoption of sfas 157 , the firm applied the provisions of eitf 02-3 to its derivative portfolio .
eitf 02-3 precluded the recogni- tion of initial trading profit in the absence of : ( a ) quoted market prices , ( b ) observable prices of other current market transactions or ( c ) other observable data supporting a valuation technique .

in accor- dance with eitf 02-3 , the firm recognized the deferred profit in principal transactions revenue on a systematic basis ( typically straight- line amortization over the life of the instruments ) and when observ- able market data became available .
prior to the adoption of sfas 157 the firm did not incorporate an adjustment into the valuation of liabilities carried at fair value on the consolidated balance sheet .

commencing january 1 , 2007 , in accor- dance with the requirements of sfas 157 , an adjustment was made to the valuation of liabilities measured at fair value to reflect the credit quality of the firm .
prior to the adoption of sfas 157 , privately held investments were initially valued based upon cost .
the carrying values of privately held investments were adjusted from cost to reflect both positive and neg- ative changes evidenced by financing events with third-party capital providers .

the investments were also subject to ongoing impairment reviews by private equity senior investment professionals .
the increase in pretax income related to nonpublic private equity investments in connection with the adoption of sfas 157 was due to there being sufficient market evidence to support an increase in fair values using the sfas 157 methodology , although there had not been an actual third-party market transaction related to such investments .

financial disclosures required by sfas 107 sfas 107 requires disclosure of the estimated fair value of certain financial instruments and the methods and significant assumptions used to estimate their fair values .
many but not all of the financial instruments held by the firm are recorded at fair value on the consolidated balance sheets .
financial instruments within the scope of sfas 107 that are not carried at fair value on the consolidated balance sheets are discussed below .

additionally , certain financial instruments and all nonfinancial instruments are excluded from the scope of sfas 107 .
accordingly , the fair value disclosures required by sfas 107 provide only a partial estimate of the fair value of jpmorgan chase .
for example , the firm has developed long-term relationships with its customers through its deposit base and credit card accounts , commonly referred to as core deposit intangibles and credit card relationships .

in the opinion of management , these items , in the aggregate , add significant value to jpmorgan chase , but their fair value is not disclosed in this note .
financial instruments for which fair value approximates carrying value certain financial instruments that are not carried at fair value on the consolidated balance sheets are carried at amounts that approxi- mate fair value due to their short-term nature and generally negligi- ble credit risk .

these instruments include cash and due from banks , deposits with banks , federal funds sold , securities purchased under resale agreements with short-dated maturities , securities borrowed , short-term receivables and accrued interest receivable , commercial paper , federal funds purchased , securities sold under repurchase agreements with short-dated maturities , other borrowed funds , accounts payable and accrued liabilities .

in addition , sfas 107 requires that the fair value for deposit liabilities with no stated matu- rity ( i.e. , demand , savings and certain money market deposits ) be equal to their carrying value .
sfas 107 does not allow for the recog- nition of the inherent funding value of these instruments.

 |
| table | year ended december 31 2007 ( in millions )            | 2007
------------------------------------------------------ | --------------
loans                                                  | $ -720 ( 720 )
other assets                                           | -161 ( 161 )
accounts payable accrued expense and other liabilities | 2
total nonrecurring fair value gains ( losses )         | $ -879 ( 879 ) |


| _id | dd4bb4610 |
| title |  |
| text | long-term product offerings include active and index strategies .
our active strategies seek to earn attractive returns in excess of a market benchmark or performance hurdle while maintaining an appropriate risk profile .
we offer two types of active strategies : those that rely primarily on fundamental research and those that utilize primarily quantitative models to drive portfolio construction .

in contrast , index strategies seek to closely track the returns of a corresponding index , generally by investing in substantially the same underlying securities within the index or in a subset of those securities selected to approximate a similar risk and return profile of the index .
index strategies include both our non-etf index products and ishares etfs .
althoughmany clients use both active and index strategies , the application of these strategies may differ .

for example , clients may use index products to gain exposure to a market or asset class .
in addition , institutional non-etf index assignments tend to be very large ( multi-billion dollars ) and typically reflect low fee rates .
this has the potential to exaggerate the significance of net flows in institutional index products on blackrock 2019s revenues and earnings .

equity year-end 2014 equity aum of $ 2.451 trillion increased by $ 133.4 billion , or 6% ( 6 % ) , from the end of 2013 due to net new business of $ 52.4 billion and net market appreciation and foreign exchange movements of $ 81.0 billion .
net inflows were driven by $ 59.6 billion and $ 17.7 billion into ishares and non-etf index accounts , respectively .

index inflows were offset by active net outflows of $ 24.9 billion , with outflows of $ 18.0 billion and $ 6.9 billion from fundamental and scientific active equity products , respectively .
blackrock 2019s effective fee rates fluctuate due to changes in aummix .
approximately half of blackrock 2019s equity aum is tied to international markets , including emerging markets , which tend to have higher fee rates than similar u.s .
equity strategies .

equity strategies .
accordingly , fluctuations in international equity markets , which do not consistently move in tandemwith u.s .
markets , may have a greater impact on blackrock 2019s effective equity fee rates and revenues .
fixed income fixed income aum ended 2014 at $ 1.394 trillion , increasing $ 151.5 billion , or 12% ( 12 % ) , from december 31 , 2013 .
the increase in aum reflected $ 96.4 billion in net new business and $ 55.1 billion in net market appreciation and foreign exchange movements .

in 2014 , net new business was diversified across fixed income offerings , with strong flows into our unconstrained , total return and high yield products .
flagship funds in these product areas include our unconstrained strategic income opportunities and fixed income global opportunities funds , with net inflows of $ 13.3 billion and $ 4.2 billion , respectively ; our total return fund with net inflows of $ 2.1 billion ; and our high yield bond fund with net inflows of $ 2.1 billion .

fixed income net inflows were positive across investment styles , with ishares , non- etf index , and active net inflows of $ 40.0 billion , $ 28.7 billion and $ 27.7 billion , respectively .
multi-asset class blackrock 2019s multi-asset class teammanages a variety of balanced funds and bespoke mandates for a diversified client base that leverages our broad investment expertise in global equities , currencies , bonds and commodities , and our extensive risk management capabilities .

investment solutions might include a combination of long-only portfolios and alternative investments as well as tactical asset allocation overlays .
component changes in multi-asset class aum for 2014 are presented below .
( in millions ) december 31 , 2013 net inflows ( outflows ) market change fx impact december 31 , 2014 .

flows reflected ongoing institutional demand for our solutions-based advice with $ 15.1 billion , or 52% ( 52 % ) , of net inflows coming from institutional clients .
defined contribution plans of institutional clients remained a significant driver of flows , and contributed $ 12.8 billion to institutional multi- asset class net new business in 2014 , primarily into target date and target risk product offerings .

retail net inflows of $ 13.4 billion were driven by particular demand for our multi- asset income fund , which raised $ 6.3 billion in 2014 .
the company 2019s multi-asset strategies include the following : 2022 asset allocation and balanced products represented 48% ( 48 % ) of multi-asset class aum at year-end , with growth in aum driven by net new business of $ 18.4 billion .

these strategies combine equity , fixed income and alternative components for investors seeking a tailored solution relative to a specific benchmark and within a risk budget .
in certain cases , these strategies seek to minimize downside risk through diversification , derivatives strategies and tactical asset allocation decisions .
flagship products in this category include our global allocation andmulti-asset income suites .
2022 target date and target risk products grew 10% ( 10 % ) organically in 2014 .

institutional investors represented 90% ( 90 % ) of target date and target risk aum , with defined contribution plans accounting for over 80% ( 80 % ) of aum .
the remaining 10% ( 10 % ) of target date and target risk aum consisted of retail client investments .
flows were driven by defined contribution investments in our lifepath and lifepath retirement income ae offerings .

lifepath products utilize a proprietary asset allocation model that seeks to balance risk and return over an investment horizon based on the investor 2019s expected retirement timing .
2022 fiduciary management services are complex mandates in which pension plan sponsors or endowments and foundations retain blackrock to assume responsibility for some or all aspects of planmanagement .

these customized services require strong partnership with the clients 2019 investment staff and trustees in order to tailor investment strategies to meet client-specific risk budgets and return objectives.

 |
| table | ( in millions )               | december 31 2013 | net inflows ( outflows ) | market change  | fx impact          | december 31 2014
----------------------------- | ---------------- | ------------------------ | -------------- | ------------------ | ----------------
asset allocation and balanced | $ 169604         | $ 18387                  | $ -827 ( 827 ) | $ -4132 ( 4132 )   | $ 183032
target date/risk              | 111408           | 10992                    | 7083           | -872 ( 872 )       | 128611
fiduciary                     | 60202            | -474 ( 474 )             | 14788          | -8322 ( 8322 )     | 66194
multi-asset                   | $ 341214         | $ 28905                  | $ 21044        | $ -13326 ( 13326 ) | $ 377837 |


| _id | dd4982f7c |
| title |  |
| text | the following table summarizes our future estimated cash payments under existing contractual obligations , including payments due by period: .

( a ) amounts represent the expected cash payments of our long-term debt and do not include $ 0.3 million for capital leases or $ 72.0 million for net unamortized debt issuance costs , premiums and discounts , and fair value adjustments .
( b ) operating leases represents the minimum rental commitments under non-cancelable operating leases .

( c ) the majority of the purchase obligations represent commitments for raw material and packaging to be utilized in the normal course of business and for consumer marketing spending commitments that support our brands .
for purposes of this table , arrangements are considered purchase obligations if a contract specifies all significant terms , including fixed or minimum quantities to be purchased , a pricing structure , and approximate timing of the transaction .

most arrangements are cancelable without a significant penalty and with short notice ( usually 30 days ) .
any amounts reflected on the consolidated balance sheets as accounts payable and accrued liabilities are excluded from the table above .
( d ) the fair value of our foreign exchange , equity , commodity , and grain derivative contracts with a payable position to the counterparty was $ 17.3 million as of may 26 , 2019 , based on fair market values as of that date .

future changes in market values will impact the amount of cash ultimately paid or received to settle those instruments in the future .
other long-term obligations mainly consist of liabilities for accrued compensation and benefits , including the underfunded status of certain of our defined benefit pension , other postretirement benefit , and postemployment benefit plans , and miscellaneous liabilities .

we expect to pay approximately $ 20 million of benefits from our unfunded postemployment benefit plans and approximately $ 18 million of deferred compensation in fiscal 2020 .
we are unable to reliably estimate the amount of these payments beyond fiscal 2020 .
as of may 26 , 2019 , our total liability for uncertain tax positions and accrued interest and penalties was $ 165.1 million .

significant accounting estimates for a complete description of our significant accounting policies , please see note 2 to the consolidated financial statements in item 8 of this report .
our significant accounting estimates are those that have a meaningful impact on the reporting of our financial condition and results of operations .

these estimates include our accounting for promotional expenditures , valuation of long-lived assets , intangible assets , redeemable interest , stock-based compensation , income taxes , and defined benefit pension , other postretirement benefit , and postemployment benefit plans .

revenue recognition our revenues are reported net of variable consideration and consideration payable to our customers , including trade promotion , consumer coupon redemption and other costs , including estimated allowances for returns , unsalable product , and prompt pay discounts .
trade promotions are recorded using significant judgment of estimated participation and performance levels for offered programs at the time of sale .

differences between estimated expenses and actual costs are recognized as a change in management estimate in a subsequent period .
our accrued trade liabilities were $ 484 million as of may 26 , 2019 , and $ 500 million as of may 27 , 2018 .
because these amounts are significant , if our estimates are inaccurate we would have to make adjustments in subsequent periods that could have a significant effect on our results of operations.

 |
| table | in millions                       | payments due by fiscal year total | payments due by fiscal year 2020 | payments due by fiscal year 2021 -22 | payments due by fiscal year 2023 -24 | payments due by fiscal year 2025 and thereafter
--------------------------------- | --------------------------------- | -------------------------------- | ------------------------------------ | ------------------------------------ | -----------------------------------------------
long-term debt ( a )              | $ 13093.0                         | $ 1396.3                         | $ 3338.4                             | $ 2810.2                             | $ 5548.1
accrued interest                  | 92.6                              | 92.6                             | -                                    | -                                    | -
operating leases ( b )            | 482.6                             | 120.0                            | 186.7                                | 112.9                                | 63.0
capital leases                    | 0.3                               | 0.2                              | 0.1                                  | -                                    | -
purchase obligations ( c )        | 2961.8                            | 2605.1                           | 321.9                                | 27.6                                 | 7.2
total contractual obligations     | 16630.3                           | 4214.2                           | 3847.1                               | 2950.7                               | 5618.3
other long-term obligations ( d ) | 1302.4                            | -                                | -                                    | -                                    | -
total long-term obligations       | $ 17932.7                         | $ 4214.2                         | $ 3847.1                             | $ 2950.7                             | $ 5618.3 |


| _id | dd4bc75f8 |
| title |  |
| text | stock performance graph * $ 100 invested on 11/17/11 in our stock or 10/31/11 in the relevant index , including reinvestment of dividends .
fiscal year ending december 31 , 2013 .

( 1 ) delphi automotive plc ( 2 ) s&p 500 2013 standard & poor 2019s 500 total return index ( 3 ) automotive supplier peer group 2013 russell 3000 auto parts index , including american axle & manufacturing , borgwarner inc. , cooper tire & rubber company , dana holding corp. , delphi automotive plc , dorman products inc. , federal-mogul corp. , ford motor co. , fuel systems solutions inc. , general motors co. , gentex corp. , gentherm inc. , genuine parts co. , johnson controls inc. , lkq corp. , lear

co. , johnson controls inc. , lkq corp. , lear corp. , meritor inc. , remy international inc. , standard motor products inc. , stoneridge inc. , superior industries international , trw automotive holdings corp. , tenneco inc. , tesla motors inc. , the goodyear tire & rubber co. , tower international inc. , visteon corp. , and wabco holdings inc .

company index november 17 , december 31 , december 31 , december 31 .

dividends on february 26 , 2013 , the board of directors approved the initiation of dividend payments on the company's ordinary shares .
the board of directors declared a regular quarterly cash dividend of $ 0.17 per ordinary share that was paid in each quarter of 2013 .
in addition , in january 2014 , the board of directors declared a regular quarterly cash dividend of $ 0.25 per ordinary share , payable on february 27 , 2014 to shareholders of record at the close of business on february 18 , 2014 .

in october 2011 , the board of managers of delphi automotive llp approved a distribution of approximately $ 95 million , which was paid on december 5 , 2011 , principally in respect of taxes , to members of delphi automotive llp who held membership interests as of the close of business on october 31 , 2011.

 |
| table | company index                        | november 17 2011 | december 31 2011 | december 31 2012 | december 31 2013
------------------------------------ | ---------------- | ---------------- | ---------------- | ----------------
delphi automotive plc ( 1 )          | $ 100.00         | $ 100.98         | $ 179.33         | $ 285.81
s&p 500 ( 2 )                        | 100.00           | 100.80           | 116.93           | 154.80
automotive supplier peer group ( 3 ) | 100.00           | 89.27            | 110.41           | 166.46 |


| _id | dd4ba81f8 |
| title |  |
| text | table of contents the company concluded that the acquisition of sentinelle medical did not represent a material business combination , and therefore , no pro forma financial information has been provided herein .
subsequent to the acquisition date , the company 2019s results of operations include the results of sentinelle medical , which is included within the company 2019s breast health reporting segment .

the company accounted for the sentinelle medical acquisition as a purchase of a business under asc 805 .
the purchase price was comprised of an $ 84.8 million cash payment , which was net of certain adjustments , plus three contingent payments up to a maximum of an additional $ 250.0 million in cash .

the contingent payments are based on a multiple of incremental revenue growth during the two-year period following the completion of the acquisition as follows : six months after acquisition , 12 months after acquisition , and 24 months after acquisition .

pursuant to asc 805 , the company recorded its estimate of the fair value of the contingent consideration liability based on future revenue projections of the sentinelle medical business under various potential scenarios and weighted probability assumptions of these outcomes .
as of the date of acquisition , these cash flow projections were discounted using a rate of 16.5% ( 16.5 % ) .

the discount rate is based on the weighted-average cost of capital of the acquired business plus a credit risk premium for non-performance risk related to the liability pursuant to asc 820 .

this analysis resulted in an initial contingent consideration liability of $ 29.5 million , which will be adjusted periodically as a component of operating expenses based on changes in the fair value of the liability driven by the accretion of the liability for the time value of money and changes in the assumptions pertaining to the achievement of the defined revenue growth milestones .

this fair value measurement was based on significant inputs not observable in the market and thus represented a level 3 measurement as defined in asc during each quarter in fiscal 2011 , the company has re-evaluated its assumptions and updated the revenue and probability assumptions for future earn-out periods and lowered its projections .

as a result of these adjustments , which were partially offset by the accretion of the liability , and using a current discount rate of approximately 17.0% ( 17.0 % ) , the company recorded a reversal of expense of $ 14.3 million in fiscal 2011 to record the contingent consideration liability at fair value .

in addition , during the second quarter of fiscal 2011 , the first earn-out period ended , and the company adjusted the fair value of the contingent consideration liability for actual results during the earn-out period .
this payment of $ 4.3 million was made in the third quarter of fiscal 2011 .
at september 24 , 2011 , the fair value of the liability is $ 10.9 million .
the company did not issue any equity awards in connection with this acquisition .

the company incurred third-party transaction costs of $ 1.2 million , which were expensed within general and administrative expenses in fiscal 2010 .
the purchase price was as follows: .

source : hologic inc , 10-k , november 23 , 2011 powered by morningstar ae document research 2120 the information contained herein may not be copied , adapted or distributed and is not warranted to be accurate , complete or timely .
the user assumes all risks for any damages or losses arising from any use of this information , except to the extent such damages or losses cannot be limited or excluded by applicable law .
past financial performance is no guarantee of future results.

 |
| table | cash                     | $ 84751
------------------------ | --------
contingent consideration | 29500
total purchase price     | $ 114251 |


| _id | dd4c31ebc |
| title |  |
| text | synopsys , inc .
notes to consolidated financial statements 2014continued acquired identifiable intangible assets of $ 107.3 million , resulting in total goodwill of $ 257.6 million .
identifiable intangible assets are being amortized over three to eight years .
acquisition-related costs directly attributable to the business combination were $ 6.6 million for fiscal 2012 and were expensed as incurred in the consolidated statements of operations .

these costs consisted primarily of employee separation costs and professional services .
acquisition of magma design automation , inc .
( magma ) on february 22 , 2012 , the company acquired magma , a chip design software provider , at a per- share price of $ 7.35 .
additionally , the company assumed unvested restricted stock units ( rsus ) and stock options , collectively called 201cequity awards . 201d the aggregate purchase price was approximately $ 550.2 million .

this acquisition enables the company to more rapidly meet the needs of leading-edge semiconductor designers for more sophisticated design tools .
the company allocated the total purchase consideration of $ 550.2 million ( including $ 6.8 million related to equity awards assumed ) to the assets acquired and liabilities assumed based on their respective fair values at the acquisition date , including acquired identifiable intangible assets of $ 184.3 million , resulting in total goodwill of $ 316.3 million .

identifiable intangible assets are being amortized over three to ten years .
acquisition-related costs directly attributable to the business combination totaling $ 33.5 million for fiscal 2012 were expensed as incurred in the consolidated statements of operations and consist primarily of employee separation costs , contract terminations , professional services , and facilities closure costs .

other fiscal 2012 acquisitions during fiscal 2012 , the company acquired five other companies , including emulation & verification engineering , s.a .
( eve ) , for cash and allocated the total purchase consideration of $ 213.2 million to the assets acquired and liabilities assumed based on their respective fair values , resulting in total goodwill of $ 118.1 million .

acquired identifiable intangible assets totaling $ 73.3 million were valued using appropriate valuation methods such as income or cost methods and are being amortized over their respective useful lives ranging from one to eight years .
during fiscal 2012 , acquisition-related costs totaling $ 6.8 million were expensed as incurred in the consolidated statements of operations .

fiscal 2011 acquisitions during fiscal 2011 , the company completed two acquisitions for cash and allocated the total purchase consideration of $ 37.4 million to the assets and liabilities acquired based on their respective fair values at the acquisition date resulting in goodwill of $ 30.6 million .
acquired identifiable intangible assets of $ 9.3 million are being amortized over two to ten years .
note 4 .
goodwill and intangible assets goodwill: .

 |
| table | | ( in thousands )
-------------------------- | ----------------
balance at october 31 2011 | $ 1289286
additions                  | 687195
other adjustments ( 1 )    | 506
balance at october 31 2012 | $ 1976987
additions                  | 2014
other adjustments ( 1 )    | -1016 ( 1016 )
balance at october 31 2013 | $ 1975971 |


| _id | dd4c4d108 |
| title |  |
| text | the following shares were excluded from the calculation of average shares outstanding 2013 diluted as their effect was anti- dilutive ( shares in millions ) . .

( 1 ) the average exercise price of options per share was $ 26.79 , $ 33.32 , and $ 26.93 for 2018 , 2017 , and 2016 , respectively .
in 2017 , had arconic generated sufficient net income , 30 million , 14 million , 5 million , and 1 million potential shares of common stock related to the mandatory convertible preferred stock , convertible notes , stock awards , and stock options , respectively , would have been included in diluted average shares outstanding .

the mandatory convertible preferred stock converted on october 2 , 2017 ( see note i ) .
in 2016 , had arconic generated sufficient net income , 28 million , 10 million , 4 million , and 1 million potential shares of common stock related to the mandatory convertible preferred stock , convertible notes , stock awards , and stock options , respectively , would have been included in diluted average shares outstanding.

 |
| table | | 2018 | 2017 | 2016
------------------------------------- | ---- | ---- | ----
mandatory convertible preferred stock | n/a  | 39   | 39
convertible notes                     | 2014 | 14   | 14
stock options ( 1 )                   | 9    | 11   | 13
stock awards                          | 2014 | 7    | 8 |


| _id | dd4b95a76 |
| title |  |
| text | table of contents .

the company issued 35000 , 115485 and 39900 performance-based restricted stock awards during 2016 , 2015 and 2014 , respectively .
of the cumulative performance-based restricted stock awards issued , defined operating metrics were assigned to 63462 , 51795 and 20667 awards with grant-date fair values of $ 84.61 , $ 86.38 and $ 81.52 during 2016 , 2015 and 2014 , respectively .

the grant-date fair value of the awards is being recorded from the grant date through the conclusion of the measurement period associated with each operating metric based on management's estimates concerning the probability of vesting .
as of december 31 , 2016 , 7625 units of the total 2014 awards granted were earned and will be issued in 2017 .

total compensation expense associated with the awards recorded for the years ended december 31 , 2016 , 2015 and 2014 was $ 0.4 million , $ 0.4 million and $ 0.1 million , respectively .
in addition , in 2016 , 2015 and 2014 , the company granted restricted stock units of 488622 , 344500 and 364150 , respectively , that will vest over a three- or four-year period with weighted-average grant-date fair values of $ 88.51 , $ 86.34 and $ 82.13 , respectively .

during 2016 and 2015 , 162019 and 85713 shares vested and were released , respectively .
as of december 31 , 2016 , 2015 and 2014 , 838327 , 571462 and 344750 units were outstanding , respectively .
total compensation expense is being recorded over the service period and was $ 19.1 million , $ 12.5 million and $ 5.8 million for the years ended december 31 , 2016 , 2015 and 2014 , respectively .

in conjunction with a 2015 acquisition , ansys issued 68451 shares of replacement restricted stock with a weighted-average grant-date fair value of $ 90.48 .
of the $ 6.2 million grant-date fair value , $ 3.5 million , related to partially vested awards , was recorded as non-cash purchase price consideration .
the remaining fair value will be recognized as stock compensation expense through the conclusion of the service period .

during the years ended december 31 , 2016 and 2015 , the company recorded $ 1.2 million and $ 0.6 million , respectively , of stock compensation expense related to these awards .
in conjunction with a 2011 acquisition , the company granted performance-based restricted stock awards .
vesting was determined based on the achievements of certain revenue and operating income targets of the entity post-acquisition .

total compensation expense associated with the awards recorded for the year ended december 31 , 2014 was $ 4.7 million .
the company has granted deferred stock awards to non-affiliate independent directors , which are rights to receive shares of common stock upon termination of service as a director .
in 2015 and prior , the deferred stock awards were granted quarterly in arrears and vested immediately upon grant .

associated with these awards , the company established a non-qualified 409 ( a ) deferred compensation plan with assets held under a rabbi trust to provide directors an opportunity to diversify their vested awards .
during open trading windows and at their elective option , the directors may convert their company shares into a variety of non-company-stock investment options in order to diversify their holdings .

as of december 31 , 2016 , 5000 shares have been diversified and 184099 undiversified deferred stock awards have vested with the underlying shares remaining unissued until the service termination of the respective director owners .
in may 2016 , the company granted 38400 deferred stock awards which will vest in full on the one-year anniversary of the grant .

total compensation expense associated with the awards recorded for the years ended december 31 , 2016 , 2015 and 2014 was $ 1.9 million , $ 4.0 million and $ 3.5 million , respectively.

 |
| table | assumptions used in monte carlo lattice pricing model | year ended december 31 , 2016 | year ended december 31 , 2015 | year ended december 31 , 2014
----------------------------------------------------- | ----------------------------- | ----------------------------- | -----------------------------
risk-free interest rate                               | 1.0% ( 1.0 % )                | 1.1% ( 1.1 % )                | 0.7% ( 0.7 % )
expected dividend yield                               | 2014% ( 2014 % )              | 2014% ( 2014 % )              | 2014% ( 2014 % )
expected volatility 2014ansys stock price             | 21% ( 21 % )                  | 23% ( 23 % )                  | 25% ( 25 % )
expected volatility 2014nasdaq composite index        | 16% ( 16 % )                  | 14% ( 14 % )                  | 15% ( 15 % )
expected term                                         | 2.8 years                     | 2.8 years                     | 2.8 years
correlation factor                                    | 0.65                          | 0.60                          | 0.70 |


| _id | dd4ba327a |
| title |  |
| text | of sales , competitive supply gross margin declined in south america , europe/africa and the caribbean and remained relatively flat in north america and asia .
large utilities gross margin increased $ 201 million , or 37% ( 37 % ) , to $ 739 million in 2001 from $ 538 million in 2000 .
excluding businesses acquired or that commenced commercial operations during 2001 and 2000 , large utilities gross margin increased 10% ( 10 % ) to $ 396 million in 2001 .

large utilities gross margin as a percentage of revenues increased to 30% ( 30 % ) in 2001 from 25% ( 25 % ) in 2000 .
in the caribbean ( which includes venezuela ) , large utility gross margin increased $ 166 million and was due to a full year of contribution from edc which was acquired in june 2000 .
also , in north america , the gross margin contributions from both ipalco and cilcorp increased .

growth distribution gross margin increased $ 165 million , or 126% ( 126 % ) to $ 296 million in 2001 from $ 131 million in 2000 .
excluding businesses acquired during 2001 and 2000 , growth distribution gross margin increased 93% ( 93 % ) to $ 268 million in 2001 .
growth distribution gross margin as a percentage of revenue increased to 18% ( 18 % ) in 2001 from 10% ( 10 % ) in 2000 .

growth distribution business gross margin , as well as gross margin as a percentage of sales , increased in south america and the caribbean , but decreased in europe/africa and asia .
in south america , growth distribution margin increased $ 157 million and was 38% ( 38 % ) of revenues .
the increase is due primarily to sul 2019s sales of excess energy into the southeast market where rationing was taking place .

in the caribbean , growth distribution margin increased $ 39 million and was 5% ( 5 % ) of revenues .
the increase is due mainly to lower losses at ede este and an increase in contribution from caess .
in europe/africa , growth distribution margin decreased $ 10 million and was negative due to losses at sonel .
in asia , growth distribution margin decreased $ 18 million and was negative due primarily to an increase in losses at telasi .

the breakdown of aes 2019s gross margin for the years ended december 31 , 2001 and 2000 , based on the geographic region in which they were earned , is set forth below. .

* includes venezuela and colombia .
selling , general and administrative expenses selling , general and administrative expenses increased $ 38 million , or 46% ( 46 % ) , to $ 120 million in 2001 from $ 82 million in 2000 .
selling , general and administrative expenses as a percentage of revenues remained constant at 1% ( 1 % ) in 2001 and 2000 .
the overall increase in selling , general and administrative expenses is due to increased development activities .

interest expense , net net interest expense increased $ 327 million , or 29% ( 29 % ) , to $ 1.5 billion in 2001 from $ 1.1 billion in 2000 .
net interest expense as a percentage of revenues increased to 16% ( 16 % ) in 2001 from 15% ( 15 % ) in 2000 .

net interest expense increased overall primarily due to interest expense at new businesses , additional corporate interest expense arising from senior debt issued during 2001 to finance new investments and mark-to-market losses on interest rate related derivative instruments.

 |
| table | north america | 2001 $ 912 million | % (  % ) of revenue 25% ( 25 % ) | 2000 $ 844 million | % (  % ) of revenue 25% ( 25 % ) | % (  % ) change 8% ( 8 % )
------------- | ------------------ | -------------------------------- | ------------------ | -------------------------------- | --------------------------
south america | $ 522 million      | 30% ( 30 % )                     | $ 416 million      | 36% ( 36 % )                     | 25% ( 25 % )
caribbean*    | $ 457 million      | 25% ( 25 % )                     | $ 226 million      | 21% ( 21 % )                     | 102% ( 102 % )
europe/africa | $ 310 million      | 22% ( 22 % )                     | $ 371 million      | 29% ( 29 % )                     | ( 16% ( 16 % ) )
asia          | $ 101 million      | 15% ( 15 % )                     | $ 138 million      | 22% ( 22 % )                     | ( 27% ( 27 % ) ) |


| _id | dd496cd4e |
| title |  |
| text | 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 track structure expansion ( capacity projects ) and replacement ( program projects ) , which is typically performed by our employees .
approximately 13% ( 13 % ) of our full-time equivalent employees are dedicated to the construction of capital assets .

costs that are directly attributable or overhead costs that relate directly to capital projects 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 .
these costs are allocated using appropriate statistical bases .
the capitalization of indirect costs is consistent with fasb statement no .

67 , accounting for costs and initial rental operations of real estate projects .
general and administrative expenditures are expensed as incurred .
normal repairs and maintenance 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 .

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 .
10 .
accounts payable and other current liabilities dec .
31 , dec .
31 , millions of dollars 2008 2007 .

11 .
fair value measurements during the first quarter of 2008 , we fully adopted fasb statement no .
157 , fair value measurements ( fas 157 ) .
fas 157 established a framework for measuring fair value and expanded disclosures about fair value measurements .
the adoption of fas 157 had no impact on our financial position or results of operations .
fas 157 applies to all assets and liabilities that are measured and reported on a fair value basis .

this enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values .
the statement requires that each asset and liability carried at fair value be classified into one of the following categories : level 1 : quoted market prices in active markets for identical assets or liabilities .

level 2 : observable market based inputs or unobservable inputs that are corroborated by market data .
level 3 : unobservable inputs that are not corroborated by market data.

 |
| table | millions of dollars                                  | dec . 31 2008 | dec . 31 2007
---------------------------------------------------- | ------------- | -------------
accounts payable                                     | $ 629         | $ 732
accrued wages and vacation                           | 367           | 394
accrued casualty costs                               | 390           | 371
income and other taxes                               | 207           | 343
dividends and interest                               | 328           | 284
equipment rents payable                              | 93            | 103
other                                                | 546           | 675
total accounts payable and other current liabilities | $ 2560        | $ 2902 |


| _id | dd4be1aac |
| title |  |
| text | entergy new orleans , inc .
management's financial discussion and analysis ( 1 ) includes approximately $ 30 million annually for maintenance capital , which is planned spending on routine capital projects that are necessary to support reliability of service , equipment or systems and to support normal customer growth .
( 2 ) purchase obligations represent the minimum purchase obligation or cancellation charge for contractual obligations to purchase goods or services .

for entergy new orleans , almost all of the total consists of unconditional fuel and purchased power obligations , including its obligations under the unit power sales agreement , which is discussed in note 8 to the financial statements .

in addition to the contractual obligations given above , entergy new orleans expects to make payments of approximately $ 113 million for the years 2009-2011 related to hurricane katrina and hurricane gustav restoration work and its gas rebuild project , of which $ 32 million is expected to be incurred in 2009 .
also , entergy new orleans expects to contribute $ 1.7 million to its pension plan and $ 5.9 million to its other postretirement plans in 2009 .

guidance pursuant to the pension protection act of 2006 rules , effective for the 2008 plan year and beyond , may affect the level of entergy new orleans' pension contributions in the future .
also in addition to the contractual obligations , entergy new orleans has $ 26.1 million of unrecognized tax benefits and interest for which the timing of payments beyond 12 months cannot be reasonably estimated due to uncertainties in the timing of effective settlement of tax positions .

see note 3 to the financial statements for additional information regarding unrecognized tax benefits .
the planned capital investment estimate for entergy new orleans reflects capital required to support existing business .
the estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints , environmental compliance , market volatility , economic trends , and the ability to access capital .

management provides more information on long-term debt and preferred stock maturities in notes 5 and 6 and to the financial statements .
sources of capital entergy new orleans' sources to meet its capital requirements include : internally generated funds ; cash on hand ; and debt and preferred stock issuances .
entergy new orleans' receivables from or ( payables to ) the money pool were as follows as of december 31 for each of the following years: .

see note 4 to the financial statements for a description of the money pool .
as discussed above in "bankruptcy proceedings" , entergy new orleans issued notes due in three years in satisfaction of its affiliate prepetition accounts payable , including its indebtedness to the entergy system money pool of $ 37.2 million .

entergy new orleans has obtained short-term borrowing authorization from the ferc under which it may borrow through march 2010 , up to the aggregate amount , at any one time outstanding , of $ 100 million .
see note 4 to the financial statements for further discussion of entergy new orleans' short-term borrowing limits .
the long- term securities issuances of entergy new orleans are limited to amounts authorized by the city council , and the current authorization extends through august 2010.

 |
| table | 2008             | 2007             | 2006             | 2005
---------------- | ---------------- | ---------------- | ----------------
( in thousands ) | ( in thousands ) | ( in thousands ) | ( in thousands )
$ 60093          | $ 47705          | ( $ 37166 )      | ( $ 37166 ) |


| _id | dd4c4cb72 |
| title |  |
| text | note 5 loans , commitments to extend credit and concentrations of credit risk loans outstanding were as follows: .

concentrations of credit risk exist when changes in economic , industry or geographic factors similarly affect groups of counterparties whose aggregate exposure is material in relation to our total credit exposure .
loans outstanding and related unfunded commitments are concentrated in our primary geographic markets .
at december 31 , 2007 , no specific industry concentration exceeded 5% ( 5 % ) of total commercial loans outstanding and unfunded commitments .

in the normal course of business , we originate or purchase loan products whose contractual features , when concentrated , may increase our exposure as a holder and servicer of those loan products .

possible product terms and features that may create a concentration of credit risk would include loan products whose terms permit negative amortization , a high loan-to-value ratio , features that may expose the borrower to future increases in repayments above increases in market interest rates , below-market interest rates and interest-only loans , among others .
we originate interest-only loans to commercial borrowers .

these products are standard in the financial services industry and the features of these products are considered during the underwriting process to mitigate the increased risk of this product feature that may result in borrowers not being able to make interest and principal payments when due .
we do not believe that these product features create a concentration of credit risk .

we also originate home equity loans and lines of credit that result in a credit concentration of high loan-to-value ratio loan products at the time of origination .
in addition , these loans are concentrated in our primary geographic markets as discussed above .
at december 31 , 2007 , $ 2.7 billion of the $ 14.4 billion of home equity loans ( included in 201cconsumer 201d in the table above ) had a loan-to-value ratio greater than 90% ( 90 % ) .

these loans are collateralized primarily by 1-4 family residential properties .
as part of our asset and liability management activities , we also periodically purchase residential mortgage loans that are collateralized by 1-4 family residential properties .
at december 31 , 2007 , $ 3.0 billion of the $ 9.6 billion of residential mortgage loans were interest- only loans .
we realized net gains from sales of commercial mortgages of $ 39 million in 2007 , $ 55 million in 2006 and $ 61 million in 2005 .

gains on sales of education loans totaled $ 24 million in 2007 , $ 33 million in 2006 and $ 19 million in 2005 .
loans held for sale are reported separately on the consolidated balance sheet and are not included in the table above .
interest income from total loans held for sale was $ 184 million for 2007 , $ 157 million for 2006 and $ 104 million for 2005 and is included in other interest income in our consolidated income statement.

 |
| table | december 31 - in millions          | 2007         | 2006
---------------------------------- | ------------ | ------------
commercial                         | $ 28607      | $ 20584
commercial real estate             | 8906         | 3532
consumer                           | 18326        | 16515
residential mortgage               | 9557         | 6337
lease financing                    | 3500         | 3556
other                              | 413          | 376
total loans                        | 69309        | 50900
unearned income                    | -990 ( 990 ) | -795 ( 795 )
total loans net of unearned income | $ 68319      | $ 50105 |