| _id | dd4bdca34 |
| title |  |
| text | capital resources and liquidity capital resources overview capital is generally generated via earnings from operating businesses .
this is augmented through issuance of common stock , convertible preferred stock , preferred stock , subordinated debt , and equity issued through awards under employee benefit plans .
capital is used primarily to support assets in the company 2019s businesses and to absorb unexpected market , credit or operational losses .

the company 2019s uses of capital , particularly to pay dividends and repurchase common stock , became severely restricted during the latter half of 2008 .
see 201cthe company , 201d 201cmanagement 2019s discussion and analysis 2013 events in 2008 , 201d 201ctarp and other regulatory programs , 201d 201crisk factors 201d and 201ccommon equity 201d on pages 2 , 9 , 44 , 47 and 95 , respectively .

citigroup 2019s capital management framework is designed to ensure that citigroup and its principal subsidiaries maintain sufficient capital consistent with the company 2019s risk profile , all applicable regulatory standards and guidelines , and external rating agency considerations .
the capital management process is centrally overseen by senior management and is reviewed at the consolidated , legal entity , and country level .

senior management oversees the capital management process of citigroup and its principal subsidiaries mainly through citigroup 2019s finance and asset and liability committee ( finalco ) .
the committee is composed of the senior-most management of citigroup for the purpose of engaging management in decision-making and related discussions on capital and liquidity items .

among other things , the committee 2019s responsibilities include : determining the financial structure of citigroup and its principal subsidiaries ; ensuring that citigroup and its regulated entities are adequately capitalized ; determining appropriate asset levels and return hurdles for citigroup and individual businesses ; reviewing the funding and capital markets plan for citigroup ; and monitoring interest-rate risk , corporate and bank liquidity , the impact of currency translation on non-u.s .

earnings and capital .
the finalco has established capital targets for citigroup and for significant subsidiaries .
at december 31 , 2008 , these targets exceeded the regulatory standards .

common and preferred stock issuances as discussed under 201cevents in 2008 201d on page 9 , during 2008 , the company issued $ 45 billion in preferred stock and warrants under tarp , $ 12.5 billion of convertible preferred stock in a private offering , $ 11.7 billion of non-convertible preferred stock in public offerings , $ 3.2 billion of convertible preferred stock in public offerings , and $ 4.9 billion of common stock in public offerings .

on january 23 , 2009 , pursuant to our prior agreement with the purchasers of the $ 12.5 billion convertible preferred stock issued in the private offering , the conversion price was reset from $ 31.62 per share to $ 26.35 per share .
the reset will result in citigroup 2019s issuing approximately 79 million additional common shares if converted .
there will be no impact to net income , total stockholders 2019 equity or capital ratios due to the reset .

however , the reset will result in a reclassification from retained earnings to additional paid-in capital of $ 1.2 billion to reflect the benefit of the reset to the preferred stockholders .
capital ratios citigroup is subject to risk-based capital ratio guidelines issued by the federal reserve board ( frb ) .
capital adequacy is measured via two risk- based ratios , tier 1 and total capital ( tier 1 + tier 2 capital ) .

tier 1 capital is considered core capital while total capital also includes other items such as subordinated debt and loan loss reserves .
both measures of capital are stated as a percentage of risk-weighted assets .
risk-weighted assets are measured primarily on their perceived credit risk and include certain off-balance-sheet exposures , such as unfunded loan commitments and letters of credit , and the notional amounts of derivative and foreign- exchange contracts .

citigroup is also subject to the leverage ratio requirement , a non-risk-based asset ratio , which is defined as tier 1 capital as a percentage of adjusted average assets .
to be 201cwell capitalized 201d under federal bank regulatory agency definitions , a bank holding company must have a tier 1 capital ratio of at least 6% ( 6 % ) , a total capital ratio of at least 10% ( 10 % ) , and a leverage ratio of at least 3% ( 3 % ) , and not be subject to an frb directive to maintain higher capital levels .

as noted in the following table , citigroup maintained a 201cwell capitalized 201d position during both 2008 and 2007 .
citigroup regulatory capital ratios at year end 2008 2007 .

leverage ( 1 ) 6.08 4.03 ( 1 ) tier 1 capital divided by adjusted average assets .
events occurring during 2008 , including the transactions with the u.s .
government , affected citigroup 2019s capital ratios , and any additional u.s .
government financial involvement with the company could further impact the company 2019s capital ratios .

in addition , future operations will affect capital levels , and changes that the fasb has proposed regarding off-balance-sheet assets , consolidation and sale treatment could also have an impact on capital ratios .
see also note 23 to the consolidated financial statements on page 175 , including 201cfunding liquidity facilities and subordinate interests . 201d

 |
| table | at year end                         | 2008               | 2007
----------------------------------- | ------------------ | ----------------
tier 1 capital                      | 11.92% ( 11.92 % ) | 7.12% ( 7.12 % )
total capital ( tier 1 and tier 2 ) | 15.70              | 10.70
leverage ( 1 )                      | 6.08               | 4.03 |


| _id | dd4bdf694 |
| title |  |
| text | direct the activities of the vies and , therefore , do not control the ongoing activities that have a significant impact on the economic performance of the vies .

additionally , we do not have the obligation to absorb losses of the vies or the right to receive benefits of the vies that could potentially be significant to the we are not considered to be the primary beneficiary and do not consolidate these vies because our actions and decisions do not have the most significant effect on the vie 2019s performance and our fixed-price purchase options are not considered to be potentially significant to the vies .

the future minimum lease payments associated with the vie leases totaled $ 3.0 billion as of december 31 , 2014 .
17 .
leases we lease certain locomotives , freight cars , and other property .
the consolidated statements of financial position as of december 31 , 2014 and 2013 included $ 2454 million , net of $ 1210 million of accumulated depreciation , and $ 2486 million , net of $ 1092 million of accumulated depreciation , respectively , for properties held under capital leases .

a charge to income resulting from the depreciation for assets held under capital leases is included within depreciation expense in our consolidated statements of income .
future minimum lease payments for operating and capital leases with initial or remaining non-cancelable lease terms in excess of one year as of december 31 , 2014 , were as follows : millions operating leases capital leases .

approximately 95% ( 95 % ) of capital lease payments relate to locomotives .
rent expense for operating leases with terms exceeding one month was $ 593 million in 2014 , $ 618 million in 2013 , and $ 631 million in 2012 .
when cash rental payments are not made on a straight-line basis , we recognize variable rental expense on a straight-line basis over the lease term .
contingent rentals and sub-rentals are not significant .
18 .

18 .
commitments and contingencies asserted and unasserted claims 2013 various claims and lawsuits are pending against us and certain of our subsidiaries .
we cannot fully determine the effect of all asserted and unasserted claims on our consolidated results of operations , financial condition , or liquidity ; however , to the extent possible , where asserted and unasserted claims are considered probable and where such claims can be reasonably estimated , we have recorded a liability .

we do not expect that any known lawsuits , claims , environmental costs , commitments , contingent liabilities , or guarantees will have a material adverse effect on our consolidated results of operations , financial condition , or liquidity after taking into account liabilities and insurance recoveries previously recorded for these matters .

personal injury 2013 the cost of personal injuries to employees and others related to our activities is charged to expense based on estimates of the ultimate cost and number of incidents each year .
we use an actuarial analysis to measure the expense and liability , including unasserted claims .
the federal employers 2019 liability act ( fela ) governs compensation for work-related accidents .
under fela , damages are assessed based on a finding of fault through litigation or out-of-court settlements .

we offer a comprehensive variety of services and rehabilitation programs for employees who are injured at work .
our personal injury liability is not discounted to present value due to the uncertainty surrounding the timing of future payments .
approximately 93% ( 93 % ) of the recorded liability is related to asserted claims and approximately 7% ( 7 % ) is related to unasserted claims at december 31 , 2014 .
because of the uncertainty

 |
| table | millions                               | operatingleases | capitalleases
-------------------------------------- | --------------- | -------------
2015                                   | $ 508           | $ 253
2016                                   | 484             | 249
2017                                   | 429             | 246
2018                                   | 356             | 224
2019                                   | 323             | 210
later years                            | 1625            | 745
total minimum leasepayments            | $ 3725          | $ 1927
amount representing interest           | n/a             | -407 ( 407 )
present value of minimum leasepayments | n/a             | $ 1520 |


| _id | dd4bf0cc8 |
| title |  |
| text | 1 2 4 n o t e s effective january 1 , 2011 , all u.s .
employees , including u.s .
legacy bgi employees , will participate in the brsp .
all plan assets in the two legacy bgi plans , including the 401k plan and retirement plan ( see below ) , were merged into the brsp on january 1 , 2011 .
under the combined brsp , employee contributions of up to 8% ( 8 % ) of eligible compensation , as defined by the plan and subject to irc limitations , will be matched by the company at 50% ( 50 % ) .

in addition , the company will continue to make an annual retirement contribution to eligible participants equal to 3-5% ( 3-5 % ) of eligible compensation .
blackrock institutional trust company 401 ( k ) savings plan ( formerly the bgi 401 ( k ) savings plan ) the company assumed a 401 ( k ) plan ( the 201cbgi plan 201d ) covering employees of former bgi as a result of the bgi transaction .

as part of the bgi plan , employee contributions for participants with at least one year of service were matched at 200% ( 200 % ) of participants 2019 pre-tax contributions up to 2% ( 2 % ) of base salary and overtime , and matched 100% ( 100 % ) of the next 2% ( 2 % ) of base salary and overtime , as defined by the plan and subject to irc limitations .
the maximum matching contribution a participant would have received is an amount equal to 6% ( 6 % ) of base salary up to the irc limitations .

the bgi plan expense was $ 12 million for the year ended december 31 , 2010 and immaterial to the company 2019s consolidated financial statements for the year ended december 31 , 2009 .
effective january 1 , 2011 , the net assets of this plan merged into the brsp .
blackrock institutional trust company retirement plan ( formerly the bgi retirement plan ) the company assumed a defined contribution money purchase pension plan ( 201cbgi retirement plan 201d ) as a result of the bgi transaction .

all salaried employees of former bgi and its participating affiliates who were u.s .
residents on the u.s .
payroll were eligible to participate .
for participants earning less than $ 100000 in base salary , the company contributed 6% ( 6 % ) of a participant 2019s total compensation ( base salary , overtime and performance bonus ) up to $ 100000 .

for participants earning $ 100000 or more in base salary , the company contributed 6% ( 6 % ) of a participant 2019s base salary and overtime up to the irc limita- tion of $ 245000 in 2010 .
these contributions were 25% ( 25 % ) vested once the participant has completed two years of service and then vested at a rate of 25% ( 25 % ) for each additional year of service completed .
employees with five or more years of service under the retirement plan were 100% ( 100 % ) vested in their entire balance .

the retirement plan expense was $ 13 million for the year ended december 31 , 2010 and immaterial to the company 2019s consolidated financial statements for the year ended december 31 , 2009 .
effective january 1 , 2011 , the net assets of this plan merged into the brsp .

blackrock group personal pension plan blackrock investment management ( uk ) limited ( 201cbim 201d ) , a wholly-owned subsidiary of the company , contributes to the blackrock group personal pension plan , a defined contribution plan for all employees of bim .
bim contributes between 6% ( 6 % ) and 15% ( 15 % ) of each employee 2019s eligible compensation .
the expense for this plan was $ 22 million , $ 13 million and $ 16 million for the years ended december 31 , 2010 , 2009 and 2008 , respectively .

defined benefit plans in 2009 , prior to the bgi transaction , the company had several defined benefit pension plans in japan , germany , luxembourg and jersey .
all accrued benefits under these defined benefit plans are currently frozen and the plans are closed to new participants .
in 2008 , the defined benefit pension values in luxembourg were transferred into a new defined contribution plan for such employees , removing future liabilities .

participant benefits under the plans will not change with salary increases or additional years of service .
through the bgi transaction , the company assumed defined benefit pension plans in japan and germany which are closed to new participants .
during 2010 , these plans merged into the legacy blackrock plans in japan ( the 201cjapan plan 201d ) and germany .

at december 31 , 2010 and 2009 , the plan assets for these plans were approximately $ 19 million and $ 10 million , respectively , and the unfunded obligations were less than $ 6 million and $ 3 million , respectively , which were recorded in accrued compensation and benefits on the consolidated statements of financial condition .
benefit payments for the next five years and in aggregate for the five years thereafter are not expected to be material .

defined benefit plan assets for the japan plan of approximately $ 16 million are invested using a total return investment approach whereby a mix of equity securities , debt securities and other investments are used to preserve asset values , diversify risk and achieve the target investment return benchmark .
investment strategies and asset allocations are based on consideration of plan liabilities and the funded status of the plan .

investment performance and asset allocation are measured and monitored on an ongoing basis .
the current target allocations for the plan assets are 45-50% ( 45-50 % ) for u.s .
and international equity securities , 50-55% ( 50-55 % ) for u.s .
and international fixed income securities and 0-5% ( 0-5 % ) for cash and cash equivalents .
the table below provides the fair value of the defined benefit japan plan assets at december 31 , 2010 by asset category .

the table also identifies the level of inputs used to determine the fair value of assets in each category .
quoted prices significant in active other markets for observable identical assets inputs december 31 , ( dollar amounts in millions ) ( level 1 ) ( level 2 ) 2010 .

the assets and unfunded obligation for the defined benefit pension plan in germany and jersey were immaterial to the company 2019s consolidated financial statements at december 31 , 2010 .

post-retirement benefit plans prior to the bgi transaction , the company had requirements to deliver post-retirement medical benefits to a closed population based in the united kingdom and through the bgi transaction , the company assumed a post-retirement benefit plan to a closed population of former bgi employees in the united kingdom .

for the years ended december 31 , 2010 , 2009 and 2008 , expenses and unfunded obligations for these benefits were immaterial to the company 2019s consolidated financial statements .
in addition , through the bgi transaction , the company assumed a requirement to deliver post-retirement medical benefits to a

 |
| table | ( dollar amounts in millions ) | quoted prices inactive marketsfor identical assets ( level 1 ) | significant other observable inputs ( level 2 ) | december 31 2010
------------------------------ | -------------------------------------------------------------- | ----------------------------------------------- | ----------------
cash and cash equivalents      | $ 9                                                            | $ 2014                                          | $ 9
equity securities              | 4                                                              | 2014                                            | 4
fixed income securities        | 2014                                                           | 3                                               | 3
fair value of plan assets      | $ 13                                                           | $ 3                                             | $ 16 |


| _id | dd4c18d4a |
| title |  |
| text | jpmorgan chase & co./2016 annual report 103 risk in the derivatives portfolio .
in addition , the firm 2019s risk management process takes into consideration the potential impact of wrong-way risk , which is broadly defined as the potential for increased correlation between the firm 2019s exposure to a counterparty ( avg ) and the counterparty 2019s credit quality .
many factors may influence the nature and magnitude of these correlations over time .

to the extent that these correlations are identified , the firm may adjust the cva associated with that counterparty 2019s avg .
the firm risk manages exposure to changes in cva by entering into credit derivative transactions , as well as interest rate , foreign exchange , equity and commodity derivative transactions .
the accompanying graph shows exposure profiles to the firm 2019s current derivatives portfolio over the next 10 years as calculated by the peak , dre and avg metrics .

the three measures generally show that exposure will decline after the first year , if no new trades are added to the portfolio .
exposure profile of derivatives measures december 31 , 2016 ( in billions ) the following table summarizes the ratings profile by derivative counterparty of the firm 2019s derivative receivables , including credit derivatives , net of all collateral , at the dates indicated .

the ratings scale is based on the firm 2019s internal ratings , which generally correspond to the ratings as defined by s&p and moody 2019s .
ratings profile of derivative receivables rating equivalent 2016 2015 ( a ) december 31 , ( in millions , except ratios ) exposure net of all collateral % (  % ) of exposure net of all collateral exposure net of all collateral % (  % ) of exposure net of all collateral .

( a ) prior period amounts have been revised to conform with the current period presentation .
as previously noted , the firm uses collateral agreements to mitigate counterparty credit risk .

the percentage of the firm 2019s derivatives transactions subject to collateral agreements 2014 excluding foreign exchange spot trades , which are not typically covered by collateral agreements due to their short maturity 2014 was 90% ( 90 % ) as of december 31 , 2016 , largely unchanged compared with 87% ( 87 % ) as of december 31 , 2015 .

credit derivatives the firm uses credit derivatives for two primary purposes : first , in its capacity as a market-maker , and second , as an end-user to manage the firm 2019s own credit risk associated with various exposures .
for a detailed description of credit derivatives , see credit derivatives in note 6 .

credit portfolio management activities included in the firm 2019s end-user activities are credit derivatives used to mitigate the credit risk associated with traditional lending activities ( loans and unfunded commitments ) and derivatives counterparty exposure in the firm 2019s wholesale businesses ( collectively , 201ccredit portfolio management 201d activities ) .
information on credit portfolio management activities is provided in the table below .

for further information on derivatives used in credit portfolio management activities , see credit derivatives in note 6 .
the firm also uses credit derivatives as an end-user to manage other exposures , including credit risk arising from certain securities held in the firm 2019s market-making businesses .

these credit derivatives are not included in credit portfolio management activities ; for further information on these credit derivatives as well as credit derivatives used in the firm 2019s capacity as a market-maker in credit derivatives , see credit derivatives in note 6.

 |
| table | rating equivalent december 31 ( in millions except ratios ) | rating equivalent exposure net of all collateral | rating equivalent % (  % ) of exposure netof all collateral | exposure net of all collateral | % (  % ) of exposure netof all collateral
----------------------------------------------------------- | ------------------------------------------------ | ----------------------------------------------------------- | ------------------------------ | -----------------------------------------
aaa/aaa to aa-/aa3                                          | $ 11449                                          | 28% ( 28 % )                                                | $ 10371                        | 24% ( 24 % )
a+/a1 to a-/a3                                              | 8505                                             | 20                                                          | 10595                          | 25
bbb+/baa1 to bbb-/baa3                                      | 13127                                            | 32                                                          | 13807                          | 32
bb+/ba1 to b-/b3                                            | 7308                                             | 18                                                          | 7500                           | 17
ccc+/caa1 and below                                         | 984                                              | 2                                                           | 824                            | 2
total                                                       | $ 41373                                          | 100% ( 100 % )                                              | $ 43097                        | 100% ( 100 % ) |


| _id | dd4bdc296 |
| title |  |
| text | institutions .
international paper continually monitors its positions with and the credit quality of these financial institutions and does not expect non- performance by the counterparties .
note 14 capital stock the authorized capital stock at both december 31 , 2006 and 2005 , consisted of 990850000 shares of common stock , $ 1 par value ; 400000 shares of cumulative $ 4 preferred stock , without par value ( stated value $ 100 per share ) ; and 8750000 shares of serial preferred stock , $ 1 par value .

the serial preferred stock is issuable in one or more series by the board of directors without further shareholder action .
in july 2006 , in connection with the planned use of projected proceeds from the company 2019s trans- formation plan , international paper 2019s board of direc- tors authorized a share repurchase program to acquire up to $ 3.0 billion of the company 2019s stock .

in a modified 201cdutch auction 201d tender offer completed in september 2006 , international paper purchased 38465260 shares of its common stock at a price of $ 36.00 per share , plus costs to acquire the shares , for a total cost of approximately $ 1.4 billion .

in addition , in december 2006 , the company purchased an addi- tional 1220558 shares of its common stock in the open market at an average price of $ 33.84 per share , plus costs to acquire the shares , for a total cost of approximately $ 41 million .
following the completion of these share repurchases , international paper had approximately 454 million shares of common stock issued and outstanding .
note 15 retirement plans u.s .

note 15 retirement plans u.s .
defined benefit plans international paper maintains pension plans that provide retirement benefits to substantially all domestic employees hired prior to july 1 , 2004 .
these employees generally are eligible to participate in the plans upon completion of one year of service and attainment of age 21 .

employees hired after june 30 , 2004 , who are not eligible for these pension plans receive an additional company contribution to their savings plan ( see 201cother plans 201d on page 83 ) .
the plans provide defined benefits based on years of credited service and either final average earnings ( salaried employees ) , hourly job rates or specified benefit rates ( hourly and union employees ) .

for its qualified defined benefit pension plan , interna- tional paper makes contributions that are sufficient to fully fund its actuarially determined costs , gen- erally equal to the minimum amounts required by the employee retirement income security act ( erisa ) .
in addition , international paper made volun- tary contributions of $ 1.0 billion to the qualified defined benefit plan in 2006 , and does not expect to make any contributions in 2007 .

the company also has two unfunded nonqualified defined benefit pension plans : a pension restoration plan available to employees hired prior to july 1 , 2004 that provides retirement benefits based on eligible compensation in excess of limits set by the internal revenue service , and a supplemental retirement plan for senior managers ( serp ) , which is an alternative retirement plan for senior vice presi- dents and above who are designated by the chief executive officer as participants .

these nonqualified plans are only funded to the extent of benefits paid , which are expected to be $ 41 million in 2007 .
net periodic pension expense service cost is the actuarial present value of benefits attributed by the plans 2019 benefit formula to services rendered by employees during the year .
interest cost represents the increase in the projected benefit obli- gation , which is a discounted amount , due to the passage of time .

the expected return on plan assets reflects the computed amount of current year earn- ings from the investment of plan assets using an estimated long-term rate of return .
net periodic pension expense for qualified and nonqualified u.s .
defined benefit plans comprised the following : in millions 2006 2005 2004 .

( a ) excludes $ 9.1 million , $ 6.5 million and $ 3.4 million in 2006 , 2005 and 2004 , respectively , in curtailment losses , and $ 8.7 million , $ 3.6 million and $ 1.4 million in 2006 , 2005 and 2004 , respectively , of termination benefits , in connection with cost reduction programs and facility rationalizations that were recorded in restructuring and other charges in the con- solidated statement of operations .

also excludes $ 77.2 million and $ 14.3 million in 2006 and 2005 , respectively , in curtailment losses , and $ 18.6 million and $ 7.6 million of termination bene- fits in 2006 and 2005 , respectively , related to certain divest- itures recorded in net losses on sales and impairments of businesses held for sale in the consolidated statement of oper- ations.

 |
| table | in millions                        | 2006         | 2005         | 2004
---------------------------------- | ------------ | ------------ | ------------
service cost                       | $ 141        | $ 129        | $ 115
interest cost                      | 506          | 474          | 467
expected return on plan assets     | -540 ( 540 ) | -556 ( 556 ) | -592 ( 592 )
actuarial loss                     | 243          | 167          | 94
amortization of prior service cost | 27           | 29           | 27
net periodic pension expense ( a ) | $ 377        | $ 243        | $ 111 |


| _id | dd4c619b4 |
| title |  |
| text | consumer loan balances , net of unearned income .

in billions of dollars 2008 2007 2006 2008 2007 2006 on-balance-sheet ( 1 ) $ 515.7 $ 557.8 $ 478.2 $ 548.8 $ 516.4 $ 446.2 securitized receivables ( all in na cards ) 105.9 108.1 99.6 106.9 98.9 96.4 credit card receivables held-for-sale ( 2 ) 2014 1.0 2014 0.5 3.0 0.3 total managed ( 3 ) $ 621.6 $ 666.9 $ 577.8 $ 656.2 $ 618.3 $ 542.9 ( 1 ) total loans and total average loans exclude certain interest and fees on credit cards of approximately $ 3 billion and $ 2 billion , respectively , for 2008 , $ 3

and $ 2 billion , respectively , for 2008 , $ 3 billion and $ 2 billion , respectively , for 2007 , and $ 2 billion and $ 3 billion , respectively , for 2006 , which are included in consumer loans on the consolidated balance sheet .

( 2 ) included in other assets on the consolidated balance sheet .
( 3 ) this table presents loan information on a held basis and shows the impact of securitization to reconcile to a managed basis .
managed-basis reporting is a non-gaap measure .
held-basis reporting is the related gaap measure .
see a discussion of managed-basis reporting on page 57 .

citigroup 2019s total allowance for loans , leases and unfunded lending commitments of $ 30.503 billion is available to absorb probable credit losses inherent in the entire portfolio .
for analytical purposes only , the portion of citigroup 2019s allowance for loan losses attributed to the consumer portfolio was $ 22.366 billion at december 31 , 2008 , $ 12.393 billion at december 31 , 2007 and $ 6.006 billion at december 31 , 2006 .

the increase in the allowance for loan losses from december 31 , 2007 of $ 9.973 billion included net builds of $ 11.034 billion .
the builds consisted of $ 10.785 billion in global cards and consumer banking ( $ 8.216 billion in north america and $ 2.569 billion in regions outside north america ) , and $ 249 million in global wealth management .

the build of $ 8.216 billion in north america primarily reflected an increase in the estimate of losses across all portfolios based on weakening leading credit indicators , including increased delinquencies on first and second mortgages , unsecured personal loans , credit cards and auto loans .
the build also reflected trends in the u.s .
macroeconomic environment , including the housing market downturn , rising unemployment and portfolio growth .

the build of $ 2.569 billion in regions outside north america primarily reflected portfolio growth the impact of recent acquisitions , and credit deterioration in mexico , brazil , the u.k. , spain , greece , india and colombia .

on-balance-sheet consumer loans of $ 515.7 billion decreased $ 42.1 billion , or 8% ( 8 % ) , from december 31 , 2007 , primarily driven by a decrease in residential real estate lending in north america consumer banking as well as the impact of foreign currency translation across global cards , consumer banking and gwm .

citigroup mortgage foreclosure moratoriums on february 13 , 2009 , citigroup announced the initiation of a foreclosure moratorium on all citigroup-owned first mortgage loans that are the principal residence of the owner as well as all loans serviced by the company where the company has reached an understanding with the owner .
the moratorium was effective february 12 , 2009 , and will extend until the earlier of the u.s .
government 2019s loan modification program ( described below ) or march 12 , 2009 .

the company will not initiate or complete any new foreclosures on eligible owners during this time .

the above foreclosure moratorium expands on the company 2019s current foreclosure moratorium pursuant to which citigroup will not initiate or complete a foreclosure sale on any eligible owner where citigroup owns the mortgage and the owner is seeking to stay in the home ( which is the owner 2019s primary residence ) , is working in good faith with the company and has sufficient income for affordable mortgage payments .

since the start of the housing crisis in 2007 , citigroup has worked successfully with approximately 440000 homeowners to avoid potential foreclosure on combined mortgages totaling approximately $ 43 billion .
proposed u.s .
mortgage modification legislation in january 2009 , both the u.s .

senate and house of representatives introduced legislation ( the legislation ) that would give bankruptcy courts the authority to modify mortgage loans originated on borrowers 2019 principal residences in chapter 13 bankruptcy .
support for some version of this legislation has been endorsed by the obama administration .

the modification provisions of the legislation require that the mortgage loan to be modified be originated prior to the effective date of the legislation , and that the debtor receive a notice of foreclosure and attempt to contact the mortgage lender/servicer regarding modification of the loan .
it is difficult to project the impact the legislation may have on the company 2019s consumer secured and unsecured lending portfolio and capital market positions .

any impact will be dependent on numerous factors , including the final form of the legislation , the implementation guidelines for the administration 2019s housing plan , the number of borrowers who file for bankruptcy after enactment of the legislation and the response of the markets and credit rating agencies .
consumer credit outlook consumer credit losses in 2009 are expected to increase from prior-year levels due to the following : 2022 continued deterioration in the u.s .

housing and labor markets and higher levels of bankruptcy filings are expected to drive higher losses in both the secured and unsecured portfolios .
2022 negative economic outlook around the globe , most notably in emea , will continue to lead to higher credit costs in global cards and consumer banking.

 |
| table | in billions of dollars                      | end of period 2008 | end of period 2007 | end of period 2006 | end of period 2008 | end of period 2007 | 2006
------------------------------------------- | ------------------ | ------------------ | ------------------ | ------------------ | ------------------ | -------
on-balance-sheet ( 1 )                      | $ 515.7            | $ 557.8            | $ 478.2            | $ 548.8            | $ 516.4            | $ 446.2
securitized receivables ( all inna cards )  | 105.9              | 108.1              | 99.6               | 106.9              | 98.9               | 96.4
credit card receivables held-for-sale ( 2 ) | 2014               | 1.0                | 2014               | 0.5                | 3.0                | 0.3
total managed ( 3 )                         | $ 621.6            | $ 666.9            | $ 577.8            | $ 656.2            | $ 618.3            | $ 542.9 |


| _id | dd4bc16bc |
| title |  |
| text | table of contents notes to consolidated financial statements of american airlines group inc .
secured financings are collateralized by assets , primarily aircraft , engines , simulators , rotable aircraft parts , airport leasehold rights , route authorities and airport slots .
at december 31 , 2015 , the company was operating 35 aircraft under capital leases .
leases can generally be renewed at rates based on fair market value at the end of the lease term for a number of additional years .

at december 31 , 2015 , the maturities of long-term debt and capital lease obligations are as follows ( in millions ) : .

( a ) 2013 credit facilities on june 27 , 2013 , american and aag entered into a credit and guaranty agreement ( as amended , restated , amended and restated or otherwise modified , the 2013 credit agreement ) with deutsche bank ag new york branch , as administrative agent , and certain lenders that originally provided for a $ 1.9 billion term loan facility scheduled to mature on june 27 , 2019 ( the 2013 term loan facility ) and a $ 1.0 billion revolving credit facility scheduled to mature on june 27 ,

credit facility scheduled to mature on june 27 , 2018 ( the 2013 revolving facility ) .

the maturity of the term loan facility was subsequently extended to june 2020 and the revolving credit facility commitments were subsequently increased to $ 1.4 billion with an extended maturity date of october 10 , 2020 , all of which is further described below .

on may 21 , 2015 , american amended and restated the 2013 credit agreement pursuant to which it refinanced the 2013 term loan facility ( the $ 1.9 billion 2015 term loan facility and , together with the 2013 revolving facility , the 2013 credit facilities ) to extend the maturity date to june 2020 and reduce the libor margin from 3.00% ( 3.00 % ) to 2.75% ( 2.75 % ) .

in addition , american entered into certain amendments to reflect the ability for american to make future modifications to the collateral pledged , subject to certain restrictions .

the $ 1.9 billion 2015 term loan facility is repayable in annual installments , with the first installment in an amount equal to 1.25% ( 1.25 % ) of the principal amount commencing on june 27 , 2016 and installments thereafter , in an amount equal to 1.0% ( 1.0 % ) of the principal amount , with any unpaid balance due on the maturity date .
as of december 31 , 2015 , $ 1.9 billion of principal was outstanding under the $ 1.9 billion 2015 term loan facility .

voluntary prepayments may be made by american at any time .
on october 10 , 2014 , american and aag amended the 2013 credit agreement to extend the maturity date of the 2013 revolving facility to october 10 , 2019 and increased the commitments thereunder to an aggregate principal amount of $ 1.4 billion while reducing the letter of credit commitments thereunder to $ 300 million .

on october 26 , 2015 , american , aag , us airways group and us airways amended the 2013 credit agreement to extend the maturity date of the 2013 revolving facility to october 10 , 2020 .
the 2013 revolving facility provides that american may from time to time borrow , repay and reborrow loans thereunder and have letters of credit issued thereunder .
as of december 31 , 2015 , there were no borrowings or letters of credit outstanding under the 2013 revolving facility .

the 2013 credit facilities bear interest at an index rate plus an applicable index margin or , at american 2019s option , libor ( subject to a floor of 0.75% ( 0.75 % ) , with respect to the $ 1.9 billion 2015 term loan facility ) plus a libor margin of 3.00% ( 3.00 % ) with respect to the 2013 revolving facility and 2.75% ( 2.75 % ) with respect to the $ 1.9 billion 2015 term loan facility ; provided that american 2019s corporate credit rating is ba3 or higher from moody 2019s and bb- or higher from s&p ,

from moody 2019s and bb- or higher from s&p , the applicable libor margin would be 2.50% ( 2.50 % ) for the $ 1.9 billion 2015 term loan

 |
| table | 2016                | $ 2266
------------------- | -------
2017                | 1598
2018                | 2134
2019                | 3378
2020                | 3587
2021 and thereafter | 7844
total               | $ 20807 |


| _id | dd4c36192 |
| title |  |
| text | liquidity monitoring and measurement stress testing liquidity stress testing is performed for each of citi 2019s major entities , operating subsidiaries and/or countries .
stress testing and scenario analyses are intended to quantify the potential impact of an adverse liquidity event on the balance sheet and liquidity position , and to identify viable funding alternatives that can be utilized .

these scenarios include assumptions about significant changes in key funding sources , market triggers ( such as credit ratings ) , potential uses of funding and geopolitical and macroeconomic conditions .
these conditions include expected and stressed market conditions as well as company-specific events .
liquidity stress tests are conducted to ascertain potential mismatches between liquidity sources and uses over a variety of time horizons and over different stressed conditions .

liquidity limits are set accordingly .
to monitor the liquidity of an entity , these stress tests and potential mismatches are calculated with varying frequencies , with several tests performed daily .
given the range of potential stresses , citi maintains contingency funding plans on a consolidated basis and for individual entities .
these plans specify a wide range of readily available actions for a variety of adverse market conditions or idiosyncratic stresses .

short-term liquidity measurement : liquidity coverage ratio ( lcr ) in addition to internal liquidity stress metrics that citi has developed for a 30-day stress scenario , citi also monitors its liquidity by reference to the lcr , as calculated pursuant to the u.s .
lcr rules .
generally , the lcr is designed to ensure that banks maintain an adequate level of hqla to meet liquidity needs under an acute 30-day stress scenario .

the lcr is calculated by dividing hqla by estimated net outflows over a stressed 30-day period , with the net outflows determined by applying prescribed outflow factors to various categories of liabilities , such as deposits , unsecured and secured wholesale borrowings , unused lending commitments and derivatives- related exposures , partially offset by inflows from assets maturing within 30 days .

banks are required to calculate an add-on to address potential maturity mismatches between contractual cash outflows and inflows within the 30-day period in determining the total amount of net outflows .
the minimum lcr requirement is 100% ( 100 % ) , effective january 2017 .
pursuant to the federal reserve board 2019s final rule regarding lcr disclosures , effective april 1 , 2017 , citi began to disclose lcr in the prescribed format .

the table below sets forth the components of citi 2019s lcr calculation and hqla in excess of net outflows for the periods indicated : in billions of dollars dec .
31 , sept .
30 , dec .
31 .

note : amounts set forth in the table above are presented on an average basis .
as set forth in the table above , citi 2019s lcr increased year- over-year , as the increase in the hqla ( as discussed above ) more than offset an increase in modeled net outflows .
the increase in modeled net outflows was primarily driven by changes in assumptions , including changes in methodology to better align citi 2019s outflow assumptions with those embedded in its resolution planning .

sequentially , citi 2019s lcr remained unchanged .
long-term liquidity measurement : net stable funding ratio ( nsfr ) in 2016 , the federal reserve board , the fdic and the occ issued a proposed rule to implement the basel iii nsfr requirement .
the u.s.-proposed nsfr is largely consistent with the basel committee 2019s final nsfr rules .
in general , the nsfr assesses the availability of a bank 2019s stable funding against a required level .

a bank 2019s available stable funding would include portions of equity , deposits and long-term debt , while its required stable funding would be based on the liquidity characteristics of its assets , derivatives and commitments .
prescribed factors would be required to be applied to the various categories of asset and liabilities classes .
the ratio of available stable funding to required stable funding would be required to be greater than 100% ( 100 % ) .

while citi believes that it is compliant with the proposed u.s .
nsfr rules as of december 31 , 2017 , it will need to evaluate a final version of the rules , which are expected to be released during 2018 .
citi expects that the nsfr final rules implementation period will be communicated along with the final version of the rules.

 |
| table | in billions of dollars         | dec . 31 2017  | sept . 30 2017 | dec . 31 2016
------------------------------ | -------------- | -------------- | --------------
hqla                           | $ 446.4        | $ 448.6        | $ 403.7
net outflows                   | 364.3          | 365.1          | 332.5
lcr                            | 123% ( 123 % ) | 123% ( 123 % ) | 121% ( 121 % )
hqla in excess of net outflows | $ 82.1         | $ 83.5         | $ 71.3 |


| _id | dd4bf82d4 |
| title |  |
| text | annual report on form 10-k 108 fifth third bancorp part ii item 5 .
market for registrant 2019s common equity , related stockholder matters and issuer purchases of equity securities the information required by this item is included in the corporate information found on the inside of the back cover and in the discussion of dividend limitations that the subsidiaries can pay to the bancorp discussed in note 26 of the notes to the consolidated financial statements .

additionally , as of december 31 , 2008 , the bancorp had approximately 60025 shareholders of record .
issuer purchases of equity securities period shares purchased average paid per shares purchased as part of publicly announced plans or programs maximum shares that may be purchased under the plans or programs .

( a ) the bancorp repurchased 25394 , 7526 and 40 shares during october , november and december of 2008 in connection with various employee compensation plans of the bancorp .
these purchases are not included against the maximum number of shares that may yet be purchased under the board of directors authorization.

 |
| table | period        | sharespurchased ( a ) | averagepricepaid pershare | sharespurchasedas part ofpubliclyannouncedplans orprograms | maximumshares thatmay bepurchasedunder theplans orprograms
------------- | --------------------- | ------------------------- | ---------------------------------------------------------- | ----------------------------------------------------------
october 2008  | 25394                 | $ -                       | -                                                          | 19201518
november 2008 | 7526                  | -                         | -                                                          | 19201518
december 2008 | 40                    | -                         | -                                                          | 19201518
total         | 32960                 | $ -                       | -                                                          | 19201518 |


| _id | dd4c61c98 |
| title |  |
| text | see note 8 of the notes to consolidated financial statements in item 8 .
financial statements and supplementary data for a further discussion of these transactions .

capital resources outlook for 2007 international paper expects to be able to meet pro- jected capital expenditures , service existing debt and meet working capital and dividend requirements during 2007 through current cash balances and cash from operations and divestiture proceeds , supple- mented as required by its various existing credit facilities .

international paper has approximately $ 3.0 billion of committed liquidity , which we believe is adequate to cover expected operating cash flow variability during our industry 2019s economic cycles .

in march 2006 , international paper replaced its matur- ing $ 750 million revolving bank credit agreement with a 364-day $ 500 million fully committed revolv- ing bank credit agreement that expires in march 2007 and has a facility fee of 0.08% ( 0.08 % ) payable quarterly , and replaced its $ 1.25 billion revolving bank credit agreement with a $ 1.5 billion fully committed revolv- ing bank credit agreement that expires in march 2011 and has a facility fee of 0.10% ( 0.10 % ) payable quarterly .

in addition , in october 2006 , the company amended its existing receivables securitization program that pro- vides for up to $ 1.2 billion of commercial paper- based financings with a facility fee of 0.20% ( 0.20 % ) and an expiration date in november 2007 , to provide up to $ 1.0 billion of available commercial paper-based financings with a facility fee of 0.10% ( 0.10 % ) and an expira- tion date of october 2009 .

at december 31 , 2006 , there were no borrowings under either of the bank credit agreements or the receivables securitization program .
additionally , international paper investments ( luxembourg ) s.ar.l. , a wholly-owned subsidiary of international paper , has a $ 100 million bank credit agreement maturing in december 2007 , with $ 40 million in borrowings outstanding as of december 31 , 2006 .

the company will continue to rely upon debt and capital markets for the majority of any necessary long-term funding not provided by operating cash flow or divestiture proceeds .
funding decisions will be guided by our capital structure planning and liability management practices .
the primary goals of the company 2019s capital structure planning are to maximize financial flexibility and preserve liquidity while reducing interest expense .

the majority of international paper 2019s debt is accessed through global public capital markets where we have a wide base of investors .
the company was in compliance with all its debt covenants at december 31 , 2006 .

principal financial covenants include maintenance of a minimum net worth , defined as the sum of common stock , paid-in capital and retained earnings , less treasury stock , plus any goodwill impairment charges , of $ 9 billion ; and a maximum total debt to capital ratio , defined as total debt divided by total debt plus net worth , of maintaining an investment grade credit rating is an important element of international paper 2019s financing strategy .

in the third quarter of 2006 , standard & poor 2019s reaffirmed the company 2019s long-term credit rating of bbb , revised its ratings outlook from neg- ative to stable , and upgraded its short-term credit rating from a-3 to a-2 .
at december 31 , 2006 , the company also held long-term credit ratings of baa3 ( stable outlook ) and a short-term credit rating of p-3 from moody 2019s investor services .

contractual obligations for future payments under existing debt and lease commitments and purchase obligations at december 31 , 2006 , were as follows : in millions 2007 2008 2009 2010 2011 thereafter .

( a ) total debt includes scheduled principal payments only .
( b ) included in these amounts are $ 76 million of lease obligations related to discontinued operations and businesses held for sale that are due as follows : 2007 - $ 23 million ; 2008 - $ 19 million ; 2009 - $ 15 million ; 2010 - $ 7 million ; 2011 - $ 5 million ; and thereafter - $ 7 million .

( c ) included in these amounts are $ 1.3 billion of purchase obliga- tions related to discontinued operations and businesses held for sale that are due as follows : 2007 - $ 335 million ; 2008 - $ 199 million ; 2009 - $ 157 million ; 2010 - $ 143 million ; 2011 - $ 141 million ; and thereafter - $ 331 million .
( d ) includes $ 2.2 billion relating to fiber supply agreements entered into at the time of the transformation plan forestland sales .

transformation plan in july 2005 , the company had announced a plan to focus its business portfolio on two key global plat- form businesses : uncoated papers ( including dis- tribution ) and packaging .
the plan 2019s other elements include exploring strategic options for other busi- nesses , including possible sale or spin-off , returning value to shareholders , strengthening the balance sheet , selective reinvestment to strengthen the paper

 |
| table | in millions                 | 2007   | 2008  | 2009   | 2010   | 2011  | thereafter
--------------------------- | ------ | ----- | ------ | ------ | ----- | ----------
total debt ( a )            | $ 692  | $ 129 | $ 1143 | $ 1198 | $ 381 | $ 3680
lease obligations ( b )     | 144    | 117   | 94     | 74     | 60    | 110
purchase obligations ( cd ) | 2329   | 462   | 362    | 352    | 323   | 1794
total                       | $ 3165 | $ 708 | $ 1599 | $ 1624 | $ 764 | $ 5584 |


| _id | dd4b8aa86 |
| title |  |
| text | corporate income taxes other than withholding taxes on certain investment income and premium excise taxes .
if group or its bermuda subsidiaries were to become subject to u.s .
income tax , there could be a material adverse effect on the company 2019s financial condition , results of operations and cash flows .
united kingdom .
bermuda re 2019s uk branch conducts business in the uk and is subject to taxation in the uk .

bermuda re believes that it has operated and will continue to operate its bermuda operation in a manner which will not cause them to be subject to uk taxation .
if bermuda re 2019s bermuda operations were to become subject to uk income tax , there could be a material adverse impact on the company 2019s financial condition , results of operations and cash flow .
ireland .
holdings ireland and ireland re conduct business in ireland and are subject to taxation in ireland .
available information .

available information .
the company 2019s annual reports on form 10-k , quarterly reports on form 10-q , current reports on form 8- k , proxy statements and amendments to those reports are available free of charge through the company 2019s internet website at http://www.everestregroup.com as soon as reasonably practicable after such reports are electronically filed with the securities and exchange commission ( the 201csec 201d ) .
item 1a .

item 1a .
risk factors in addition to the other information provided in this report , the following risk factors should be considered when evaluating an investment in our securities .
if the circumstances contemplated by the individual risk factors materialize , our business , financial condition and results of operations could be materially and adversely affected and the trading price of our common shares could decline significantly .

risks relating to our business fluctuations in the financial markets could result in investment losses .
prolonged and severe disruptions in the public debt and equity markets , such as occurred during 2008 , could result in significant realized and unrealized losses in our investment portfolio .
although financial markets have significantly improved since 2008 , they could deteriorate in the future .

such declines in the financial markets could result in significant realized and unrealized losses on investments and could have a material adverse impact on our results of operations , equity , business and insurer financial strength and debt ratings .
our results could be adversely affected by catastrophic events .
we are exposed to unpredictable catastrophic events , including weather-related and other natural catastrophes , as well as acts of terrorism .

any material reduction in our operating results caused by the occurrence of one or more catastrophes could inhibit our ability to pay dividends or to meet our interest and principal payment obligations .
subsequent to april 1 , 2010 , we define a catastrophe as an event that causes a loss on property exposures before reinsurance of at least $ 10.0 million , before corporate level reinsurance and taxes .
prior to april 1 , 2010 , we used a threshold of $ 5.0 million .

by way of illustration , during the past five calendar years , pre-tax catastrophe losses , net of contract specific reinsurance but before cessions under corporate reinsurance programs , were as follows: .

 |
| table | calendar year:          | pre-tax catastrophe losses
----------------------- | --------------------------
( dollars in millions ) |
2013                    | $ 195.0
2012                    | 410.0
2011                    | 1300.4
2010                    | 571.1
2009                    | 67.4 |


| _id | dd4bc486c |
| title |  |
| text | investment tax credits have been deferred by the regulated utility subsidiaries and are being amortized to income over the average estimated service lives of the related assets .
the company recognizes accrued interest and penalties related to tax positions as a component of income tax expense and accounts for sales tax collected from customers and remitted to taxing authorities on a net basis .
see note 14 2014income taxes for additional information .

allowance for funds used during construction afudc is a non-cash credit to income with a corresponding charge to utility plant that represents the cost of borrowed funds or a return on equity funds devoted to plant under construction .
the regulated utility subsidiaries record afudc to the extent permitted by the pucs .
the portion of afudc attributable to borrowed funds is shown as a reduction of interest , net on the consolidated statements of operations .

any portion of afudc attributable to equity funds would be included in other , net on the consolidated statements of operations .
afudc is provided in the following table for the years ended december 31: .

environmental costs the company 2019s water and wastewater operations and the operations of its market-based businesses are subject to u.s .
federal , state , local and foreign requirements relating to environmental protection , and as such , the company periodically becomes subject to environmental claims in the normal course of business .
environmental expenditures that relate to current operations or provide a future benefit are expensed or capitalized as appropriate .

remediation costs that relate to an existing condition caused by past operations are accrued , on an undiscounted basis , when it is probable that these costs will be incurred and can be reasonably estimated .

a conservation agreement entered into by a subsidiary of the company with the national oceanic and atmospheric administration in 2010 and amended in 2017 required the subsidiary to , among other provisions , implement certain measures to protect the steelhead trout and its habitat in the carmel river watershed in the state of california .
the subsidiary agreed to pay $ 1 million annually commencing in 2010 with the final payment being made in 2021 .

remediation costs accrued amounted to $ 4 million and $ 6 million as of december 31 , 2018 and 2017 , respectively .
derivative financial instruments the company uses derivative financial instruments for purposes of hedging exposures to fluctuations in interest rates .
these derivative contracts are entered into for periods consistent with the related underlying exposures and do not constitute positions independent of those exposures .

the company does not enter into derivative contracts for speculative purposes and does not use leveraged instruments .
all derivatives are recognized on the balance sheet at fair value .

on the date the derivative contract is entered into , the company may designate the derivative as a hedge of the fair value of a recognized asset or liability ( fair-value hedge ) or a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability ( cash-flow hedge ) .
changes in the fair value of a fair-value hedge , along with the gain or loss on the underlying hedged item , are recorded in current-period earnings .

the gains and losses on the effective portion of cash-flow hedges are recorded in other comprehensive income , until earnings are affected by the variability of cash flows .
any ineffective portion of designated cash-flow hedges is recognized in current-period earnings.

 |
| table | | 2018 | 2017 | 2016
----------------------------------------------------- | ---- | ---- | ----
allowance for other funds used during construction    | $ 24 | $ 19 | $ 15
allowance for borrowed funds used during construction | 13   | 8    | 6 |


| _id | dd4bce934 |
| title |  |
| text | asbestos claims the company and several of its us subsidiaries are defendants in asbestos cases .
during the year ended december 31 , 2010 , asbestos case activity is as follows: .

because many of these cases involve numerous plaintiffs , the company is subject to claims significantly in excess of the number of actual cases .
the company has reserves for defense costs related to claims arising from these matters .

award proceedings in relation to domination agreement and squeeze-out on october 1 , 2004 , celanese gmbh and the company 2019s subsidiary , bcp holdings gmbh ( 201cbcp holdings 201d ) , a german limited liability company , entered into a domination agreement pursuant to which the bcp holdings became obligated to offer to acquire all outstanding celanese gmbh shares from the minority shareholders of celanese gmbh in return for payment of fair cash compensation ( the 201cpurchaser offer 201d ) .

the amount of this fair cash compensation was determined to be a41.92 per share in accordance with applicable german law .
all minority shareholders who elected not to sell their shares to the bcp holdings under the purchaser offer were entitled to remain shareholders of celanese gmbh and to receive from the bcp holdings a gross guaranteed annual payment of a3.27 per celanese gmbh share less certain corporate taxes in lieu of any dividend .

as of march 30 , 2005 , several minority shareholders of celanese gmbh had initiated special award proceedings seeking the court 2019s review of the amounts of the fair cash compensation and of the guaranteed annual payment offered in the purchaser offer under the domination agreement .

in the purchaser offer , 145387 shares were tendered at the fair cash compensation of a41.92 , and 924078 shares initially remained outstanding and were entitled to the guaranteed annual payment under the domination agreement .

as a result of these proceedings , the amount of the fair cash consideration and the guaranteed annual payment paid under the domination agreement could be increased by the court so that all minority shareholders , including those who have already tendered their shares in the purchaser offer for the fair cash compensation , could claim the respective higher amounts .
on december 12 , 2006 , the court of first instance appointed an expert to assist the court in determining the value of celanese gmbh .

on may 30 , 2006 the majority shareholder of celanese gmbh adopted a squeeze-out resolution under which all outstanding shares held by minority shareholders should be transferred to bcp holdings for a fair cash compensation of a66.99 per share ( the 201csqueeze-out 201d ) .
this shareholder resolution was challenged by shareholders but the squeeze-out became effective after the disputes were settled on december 22 , 2006 .

award proceedings were subsequently filed by 79 shareholders against bcp holdings with the frankfurt district court requesting the court to set a higher amount for the squeeze-out compensation .

pursuant to a settlement agreement between bcp holdings and certain former celanese gmbh shareholders , if the court sets a higher value for the fair cash compensation or the guaranteed payment under the purchaser offer or the squeeze-out compensation , former celanese gmbh shareholders who ceased to be shareholders of celanese gmbh due to the squeeze-out will be entitled to claim for their shares the higher of the compensation amounts determined by the court in these different proceedings related to the

in these different proceedings related to the purchaser offer and the squeeze-out .

if the fair cash compensation determined by the court is higher than the squeeze-out compensation of a 66.99 , then 1069465 shares will be entitled to an adjustment .
if the court confirms the value of the fair cash compensation under the domination agreement but determines a higher value for the squeeze-out compensation , 924078 shares %%transmsg*** transmitting job : d77691 pcn : 148000000 ***%%pcmsg|148 |00010|yes|no|02/08/2011 16:10|0|0|page is valid , no graphics -- color : n|

 |
| table | | asbestos cases
---------------------- | --------------
as of december 31 2009 | 526
case adjustments       | 2
new cases filed        | 41
resolved cases         | -70 ( 70 )
as of december 31 2010 | 499 |


| _id | dd4c56aaa |
| title |  |
| text | management 2019s discussion and analysis of financial conditionand results of operations d u k e r e a l t y c o r p o r a t i o n 1 3 2 0 0 2 a n n u a l r e p o r t the $ 19.5 million decrease in interest expense is primarily attributable to lower outstanding balances on the company 2019s lines of credit associated with the financing of the company 2019s investment and operating activities .

the company has maintained a significantly lower balance on its lines of credit throughout 2001 compared to 2000 , as a result of its property dispositions proceeds used to fund future development , combined with a lower development level as a result of the slower economy .
additionally , the company paid off $ 128.5 million of secured mortgage loans throughout 2001 , as well as an $ 85 million unsecured term loan .

these decreases were partially offset by an increase in interest expense on unsecured debt as a result of the company issuing $ 175.0 million of debt in february 2001 , as well as a decrease in the amount of interest capitalized in 2001 versus 2000 , because of the decrease in development activity by the company .

as a result of the above-mentioned items , earnings from rental operations increased $ 28.9 million from $ 225.2 million for the year ended december 31 , 2000 , to $ 254.1 million for the year ended december 31 , 2001 .
service operations service operations revenues decreased from $ 82.8 million for the year ended december 31 , 2000 , to $ 80.5 million for the year ended december 31 , 2001 .

the company experienced a decrease of $ 4.3 million in net general contractor revenues from third party jobs because of a decrease in the volume of construction in 2001 , compared to 2000 , as well as slightly lower profit margins .
this decrease is the effect of businesses delaying or terminating plans to expand in the wake of the slowed economy .

property management , maintenance and leasing fee revenues decreased approximately $ 2.7 million mainly because of a decrease in landscaping maintenance revenue associated with the sale of the landscape business in the third quarter of 2001 ( see discussion below ) .

construction management and development activity income represents construction and development fees earned on projects where the company acts as the construction manager along with profits from the company 2019s held for sale program whereby the company develops a property for sale upon completion .
the increase in revenues of $ 2.2 million in 2001 is primarily because of an increase in profits on the sale of properties from the held for sale program .

other income increased approximately $ 2.4 million in 2001 over 2000 ; due to a $ 1.8 million gain the company recognized on the sale of its landscape business in the third quarter of 2001 .
the sale of the landscape business resulted in a total net profit of over $ 9 million after deducting all related expenses .
this gain will be recognized in varying amounts over the next seven years because the company has an on-going contract to purchase future services from the buyer .

service operations expenses decreased by $ 4.7 million for the year ended december 31 , 2001 , compared to the same period in 2000 , as the company reduced total overhead costs throughout 2001 in an effort to minimize the effects of decreased construction and development activity .
the primary savings were experienced in employee salary and related costs through personnel reductions and reduced overhead costs from the sale of the landscaping business .

as a result , earnings from service operations increased from $ 32.8 million for the year ended december 31 , 2000 , to $ 35.1 million for the year ended december 31 , 2001 .
general and administrative expense general and administrative expense decreased from $ 21.1 million in 2000 to $ 15.6 million for the year ended december 31 , 2001 , through overhead cost reduction efforts .

in late 2000 and continuing throughout 2001 , the company introduced several cost cutting measures to reduce the amount of overhead , including personnel reductions , centralization of responsibilities and reduction of employee costs such as travel and entertainment .

other income and expenses gain on sale of land and depreciable property dispositions , net of impairment adjustment , was comprised of the following amounts in 2001 and 2000 : gain on sales of depreciable properties represent sales of previously held for investment rental properties .
beginning in 2000 and continuing into 2001 , the company pursued favorable opportunities to dispose of real estate assets that no longer meet long-term investment objectives .

gain on land sales represents sales of undeveloped land owned by the company .
the company pursues opportunities to dispose of land in markets with a high concentration of undeveloped land and those markets where the land no longer meets strategic development plans of the company .
the company recorded a $ 4.8 million asset impairment adjustment in 2001 on a single property that was sold in 2002 .

other expense for the year ended december 31 , 2001 , includes a $ 1.4 million expense related to an interest rate swap that does not qualify for hedge accounting .
net income available for common shares net income available for common shares for the year ended december 31 , 2001 was $ 230.0 million compared to $ 213.0 million for the year ended december 31 , 2000 .

this increase results primarily from the operating result fluctuations in rental and service operations and earnings from sales of real estate assets explained above. .

 |
| table | | 2001           | 2000
--------------------------------------- | -------------- | ------------
gain on sales of depreciable properties | $ 45428        | $ 52067
gain on land sales                      | 5080           | 9165
impairment adjustment                   | -4800 ( 4800 ) | -540 ( 540 )
total                                   | $ 45708        | $ 60692 |


| _id | dd4b8ce1c |
| title |  |
| text | through current cash balances and cash from oper- ations .
additionally , the company has existing credit facilities totaling $ 2.5 billion .
the company was in compliance with all its debt covenants at december 31 , 2012 .
the company 2019s financial covenants require the maintenance of a minimum net worth of $ 9 billion and a total debt-to- capital ratio of less than 60% ( 60 % ) .

net worth is defined as the sum of common stock , paid-in capital and retained earnings , less treasury stock plus any cumulative goodwill impairment charges .
the calcu- lation also excludes accumulated other compre- hensive income/loss and nonrecourse financial liabilities of special purpose entities .
the total debt- to-capital ratio is defined as total debt divided by the sum of total debt plus net worth .

at december 31 , 2012 , international paper 2019s net worth was $ 13.9 bil- lion , and the total-debt-to-capital ratio was 42% ( 42 % ) .
the company will continue to rely upon debt and capital markets for the majority of any necessary long-term funding not provided by operating cash flows .
funding decisions will be guided by our capi- tal structure planning objectives .

the primary goals of the company 2019s capital structure planning are to maximize financial flexibility and preserve liquidity while reducing interest expense .
the majority of international paper 2019s debt is accessed through global public capital markets where we have a wide base of investors .
maintaining an investment grade credit rating is an important element of international paper 2019s financing strategy .

at december 31 , 2012 , the company held long-term credit ratings of bbb ( stable outlook ) and baa3 ( stable outlook ) by s&p and moody 2019s , respectively .
contractual obligations for future payments under existing debt and lease commitments and purchase obligations at december 31 , 2012 , were as follows: .

( a ) total debt includes scheduled principal payments only .
( b ) represents debt obligations borrowed from non-consolidated variable interest entities for which international paper has , and intends to effect , a legal right to offset these obligations with investments held in the entities .

accordingly , in its con- solidated balance sheet at december 31 , 2012 , international paper has offset approximately $ 5.2 billion of interests in the entities against this $ 5.2 billion of debt obligations held by the entities ( see note 11 variable interest entities and preferred securities of subsidiaries on pages 69 through 72 in item 8 .
financial statements and supplementary data ) .

financial statements and supplementary data ) .
( c ) includes $ 3.6 billion relating to fiber supply agreements entered into at the time of the 2006 transformation plan forest- land sales and in conjunction with the 2008 acquisition of weyerhaeuser company 2019s containerboard , packaging and recycling business .
( d ) not included in the above table due to the uncertainty as to the amount and timing of the payment are unrecognized tax bene- fits of approximately $ 620 million .

we consider the undistributed earnings of our for- eign subsidiaries as of december 31 , 2012 , to be indefinitely reinvested and , accordingly , no u.s .
income taxes have been provided thereon .
as of december 31 , 2012 , the amount of cash associated with indefinitely reinvested foreign earnings was approximately $ 840 million .

we do not anticipate the need to repatriate funds to the united states to sat- isfy domestic liquidity needs arising in the ordinary course of business , including liquidity needs asso- ciated with our domestic debt service requirements .
pension obligations and funding at december 31 , 2012 , the projected benefit obliga- tion for the company 2019s u.s .
defined benefit plans determined under u.s .
gaap was approximately $ 4.1 billion higher than the fair value of plan assets .

approximately $ 3.7 billion of this amount relates to plans that are subject to minimum funding require- ments .
under current irs funding rules , the calcu- lation of minimum funding requirements differs from the calculation of the present value of plan benefits ( the projected benefit obligation ) for accounting purposes .
in december 2008 , the worker , retiree and employer recovery act of 2008 ( wera ) was passed by the u.s .

congress which provided for pension funding relief and technical corrections .
funding contributions depend on the funding method selected by the company , and the timing of its implementation , as well as on actual demo- graphic data and the targeted funding level .
the company continually reassesses the amount and timing of any discretionary contributions and elected to make voluntary contributions totaling $ 44 million and $ 300 million for the years ended december 31 , 2012 and 2011 , respectively .

at this time , we expect that required contributions to its plans in 2013 will be approximately $ 31 million , although the company may elect to make future voluntary contributions .
the timing and amount of future contributions , which could be material , will depend on a number of factors , including the actual earnings and changes in values of plan assets and changes in interest rates .
ilim holding s.a .

ilim holding s.a .
shareholder 2019s agreement in october 2007 , in connection with the for- mation of the ilim holding s.a .
joint venture , international paper entered into a share- holder 2019s agreement that includes provisions relating to the reconciliation of disputes among the partners .
this agreement provides that at

 |
| table | in millions                                 | 2013   | 2014   | 2015   | 2016   | 2017   | thereafter
------------------------------------------- | ------ | ------ | ------ | ------ | ------ | ----------
maturities of long-term debt ( a )          | $ 444  | $ 708  | $ 479  | $ 571  | $ 216  | $ 7722
debt obligations with right of offset ( b ) | 2014   | 2014   | 2014   | 5173   | 2014   | 2014
lease obligations                           | 198    | 136    | 106    | 70     | 50     | 141
purchase obligations ( c )                  | 3213   | 828    | 722    | 620    | 808    | 2654
total ( d )                                 | $ 3855 | $ 1672 | $ 1307 | $ 6434 | $ 1074 | $ 10517 |


| _id | dd4b8874a |
| title |  |
| text | management 2019s discussion and analysis fully phased-in capital ratios the table below presents our estimated ratio of cet1 to rwas calculated under the basel iii advanced rules and the standardized capital rules on a fully phased-in basis. .

although the fully phased-in capital ratios are not applicable until 2019 , we believe that the estimated ratios in the table above are meaningful because they are measures that we , our regulators and investors use to assess our ability to meet future regulatory capital requirements .

the estimated fully phased-in basel iii advanced and standardized cet1 ratios are non-gaap measures as of both december 2014 and december 2013 and may not be comparable to similar non-gaap measures used by other companies ( as of those dates ) .
these estimated ratios are based on our current interpretation , expectations and understanding of the revised capital framework and may evolve as we discuss its interpretation and application with our regulators .

see note 20 to the consolidated financial statements for information about our transitional capital ratios , which represent our binding ratios as of december 2014 .

in the table above : 2030 the deduction for goodwill and identifiable intangible assets , net of deferred tax liabilities , represents goodwill of $ 3.65 billion and $ 3.71 billion as of december 2014 and december 2013 , respectively , and identifiable intangible assets of $ 515 million and $ 671 million as of december 2014 and december 2013 , respectively , net of associated deferred tax liabilities of $ 964 million and $ 908 million as of december 2014 and december 2013 , respectively .

2030 the deduction for investments in nonconsolidated financial institutions represents the amount by which our investments in the capital of nonconsolidated financial institutions exceed certain prescribed thresholds .
the decrease from december 2013 to december 2014 primarily reflects reductions in our fund investments .

2030 other adjustments primarily include the overfunded portion of our defined benefit pension plan obligation , net of associated deferred tax liabilities , and disallowed deferred tax assets , credit valuation adjustments on derivative liabilities and debt valuation adjustments , as well as other required credit risk-based deductions .
supplementary leverage ratio the revised capital framework introduces a new supplementary leverage ratio for advanced approach banking organizations .

under amendments to the revised capital framework , the u.s .
federal bank regulatory agencies approved a final rule that implements the supplementary leverage ratio aligned with the definition of leverage established by the basel committee .

the supplementary leverage ratio compares tier 1 capital to a measure of leverage exposure , defined as the sum of our quarterly average assets less certain deductions plus certain off-balance-sheet exposures , including a measure of derivatives exposures and commitments .
the revised capital framework requires a minimum supplementary leverage ratio of 5.0% ( 5.0 % ) ( comprised of the minimum requirement of 3.0% ( 3.0 % ) and a 2.0% ( 2.0 % ) buffer ) for u.s .

banks deemed to be g-sibs , effective on january 1 , 2018 .
certain disclosures regarding the supplementary leverage ratio are required beginning in the first quarter of 2015 .

as of december 2014 , our estimated supplementary leverage ratio was 5.0% ( 5.0 % ) , including tier 1 capital on a fully phased-in basis of $ 73.17 billion ( cet1 of $ 64.26 billion plus perpetual non-cumulative preferred stock of $ 9.20 billion less other adjustments of $ 290 million ) divided by total leverage exposure of $ 1.45 trillion ( total quarterly average assets of $ 873 billion plus adjustments of $ 579 billion , primarily comprised of off-balance-sheet exposure related to derivatives and

exposure related to derivatives and commitments ) .

we believe that the estimated supplementary leverage ratio is meaningful because it is a measure that we , our regulators and investors use to assess our ability to meet future regulatory capital requirements .
the supplementary leverage ratio is a non-gaap measure and may not be comparable to similar non-gaap measures used by other companies .
this estimated supplementary leverage ratio is based on our current interpretation and understanding of the u.s .

federal bank regulatory agencies 2019 final rule and may evolve as we discuss its interpretation and application with our regulators .
60 goldman sachs 2014 annual report

 |
| table | $ in millions                                                                              | as of december 2014 | as of december 2013
------------------------------------------------------------------------------------------ | ------------------- | -------------------
common shareholders 2019 equity                                                            | $ 73597             | $ 71267
deductions for goodwill and identifiable intangible assets net of deferred tax liabilities | -3196 ( 3196 )      | -3468 ( 3468 )
deductions for investments in nonconsolidated financial institutions                       | -4928 ( 4928 )      | -9091 ( 9091 )
other adjustments                                                                          | -1213 ( 1213 )      | -489 ( 489 )
cet1                                                                                | $ 64260             | $ 58219
basel iii advanced rwas                                                                    | $ 577869            | $ 594662
basel iii advanced cet1 ratio                                                              | 11.1% ( 11.1 % )    | 9.8% ( 9.8 % )
standardized rwas                                                                          | $ 627444            | $ 635092
standardized cet1 ratio                                                                    | 10.2% ( 10.2 % )    | 9.2% ( 9.2 % ) |


| _id | dd4bc1e96 |
| title |  |
| text | remitted to the u.s .
due to foreign tax credits and exclusions that may become available at the time of remittance .

at december 31 , 2010 , aon had domestic federal operating loss carryforwards of $ 56 million that will expire at various dates from 2011 to 2024 , state operating loss carryforwards of $ 610 million that will expire at various dates from 2011 to 2031 , and foreign operating and capital loss carryforwards of $ 720 million and $ 251 million , respectively , nearly all of which are subject to indefinite carryforward .

unrecognized tax provisions the following is a reconciliation of the company 2019s beginning and ending amount of unrecognized tax benefits ( in millions ) : .

as of december 31 , 2010 , $ 85 million of unrecognized tax benefits would impact the effective tax rate if recognized .
aon does not expect the unrecognized tax positions to change significantly over the next twelve months , except for a potential reduction of unrecognized tax benefits in the range of $ 10-$ 15 million relating to anticipated audit settlements .
the company recognizes penalties and interest related to unrecognized income tax benefits in its provision for income taxes .

aon accrued potential penalties of less than $ 1 million during each of 2010 , 2009 and 2008 .
aon accrued interest of less than $ 1 million in 2010 , $ 2 million during 2009 and less than $ 1 million in 2008 .
aon has recorded a liability for penalties of $ 5 million and for interest of $ 18 million for both december 31 , 2010 and 2009 .
aon and its subsidiaries file income tax returns in the u.s .
federal jurisdiction as well as various state and international jurisdictions .

aon has substantially concluded all u.s .
federal income tax matters for years through 2006 .
material u.s .
state and local income tax jurisdiction examinations have been concluded for years through 2002 .
aon has concluded income tax examinations in its primary international jurisdictions through 2004.

 |
| table | | 2010     | 2009
------------------------------------------------------------ | -------- | ----------
balance at january 1                                         | $ 77     | $ 86
additions based on tax positions related to the current year | 7        | 2
additions for tax positions of prior years                   | 4        | 5
reductions for tax positions of prior years                  | -7 ( 7 ) | -11 ( 11 )
settlements                                                  | -1 ( 1 ) | -10 ( 10 )
lapse of statute of limitations                              | -5 ( 5 ) | -3 ( 3 )
acquisitions                                                 | 26       | 6
foreign currency translation                                 | -1 ( 1 ) | 2
balance at december 31                                       | $ 100    | $ 77 |


| _id | dd4b88bfa |
| title |  |
| text | z i m m e r h o l d i n g s , i n c .
a n d s u b s i d i a r i e s 2 0 0 2 f o r m 1 0 - k notes to consolidated financial statements ( continued ) rating as of december 31 , 2002 met such requirement .
fair value commitments under the credit facility are subject to certain the carrying value of the company 2019s borrowings approxi- fees , including a facility and a utilization fee .
mates fair value due to their short-term maturities and uncommitted credit facilities variable interest rates .

the company has a $ 26 million uncommitted unsecured 8 .
derivative financial instruments revolving line of credit .
the purpose of this credit line is to support the working capital needs , letters of credit and the company is exposed to market risk due to changes overdraft needs for the company .
the uncommitted credit in currency exchange rates .

as a result , the company utilizes agreement contains customary affirmative and negative cove- foreign exchange forward contracts to offset the effect of nants and events of default , none of which are considered exchange rate fluctuations on anticipated foreign currency restrictive to the operation of the business .

in addition , this transactions , primarily intercompany sales and purchases uncommitted credit agreement provides for unconditional expected to occur within the next twelve to twenty-four and irrevocable guarantees by the company .
in the event the months .
the company does not hold financial instruments company 2019s long-term debt ratings by both standard and for trading or speculative purposes .

for derivatives which poor 2019s ratings services and moody 2019s investor 2019s service , inc. , qualify as hedges of future cash flows , the effective portion fall below bb- and ba3 , then the company may be required of changes in fair value is temporarily recorded in other to repay all outstanding and contingent obligations .
the comprehensive income , then recognized in earnings when company 2019s credit rating as of december 31 , 2002 met such the hedged item affects earnings .

the ineffective portion of requirement .
this uncommitted credit line matures on a derivative 2019s change in fair value , if any , is reported in july 31 , 2003 .
outstanding borrowings under this uncommit- earnings .
the net amount recognized in earnings during the ted line of credit as of december 31 , 2002 were $ 0.5 million years ended december 31 , 2002 and 2001 , due to ineffective- with a weighted average interest rate of 6.35 percent .

ness and amounts excluded from the assessment of hedge the company also has a $ 15 million uncommitted effectiveness , was not significant .
revolving unsecured line of credit .
the purpose of this line of the notional amounts of outstanding foreign exchange credit is to support short-term working capital needs of the forward contracts , principally japanese yen and the euro , company .

the agreement for this uncommitted unsecured entered into with third parties , at december 31 , 2002 , was line of credit contains customary covenants , none of which $ 252 million .
the fair value of derivative instruments recorded are considered restrictive to the operation of the business .
in accrued liabilities at december 31 , 2002 , was $ 13.8 million , this uncommitted line matures on july 31 , 2003 .

there were or $ 8.5 million net of taxes , which is deferred in other no borrowings under this uncommitted line of credit as of comprehensive income and is expected to be reclassified to december 31 , 2002 .
earnings over the next two years , of which , $ 7.7 million , or the company has a $ 20 million uncommitted revolving $ 4.8 million , net of taxes , is expected to be reclassified to unsecured line of credit .
the purpose of this line of credit is earnings over the next twelve months .

to support short-term working capital needs of the company .
the pricing is based upon money market rates .
the agree- 9 .
capital stock and earnings per share ment for this uncommitted unsecured line of credit contains as discussed in note 14 , all of the shares of company customary covenants , none of which are considered restrictive common stock were distributed at the distribution by the to the operation of the business .

this uncommitted line former parent to its stockholders in the form of a dividend matures on july 31 , 2003 .
there were no borrowings under of one share of company common stock , and the associated this uncommitted line of credit as of december 31 , 2002 .
preferred stock purchase right , for every ten shares of the company was in compliance with all covenants common stock of the former parent .

in july 2001 the board under all three of the uncommitted credit facilities as of of directors of the company adopted a rights agreement december 31 , 2002 .
the company had no long-term debt intended to have anti-takeover effects .
under this agreement as of december 31 , 2002 .
one right attaches to each share of company common stock .

outstanding debt as of december 31 , 2002 and 2001 , the rights will not become exercisable until the earlier of : consist of the following ( in millions ) : a ) the company learns that a person or group acquired , or 2002 2001 obtained the right to acquire , beneficial ownership of securi- credit facility $ 156.2 $ 358.2 ties representing more than 20 percent of the shares of uncommitted credit facilities 0.5 5.7 company common stock then outstanding , or b ) such date , if any , as may be designated by

b ) such date , if any , as may be designated by the board of directorstotal debt $ 156.7 $ 363.9 following the commencement of , or first public disclosure of the company paid $ 13.0 million and $ 4.6 million in an intention to commence , a tender offer or exchange offer interest charges during 2002 and 2001 , respectively. .

z i m m e r h o l d i n g s , i n c .
a n d s u b s i d i a r i e s 2 0 0 2 f o r m 1 0 - k notes to consolidated financial statements ( continued ) rating as of december 31 , 2002 met such requirement .
fair value commitments under the credit facility are subject to certain the carrying value of the company 2019s borrowings approxi- fees , including a facility and a utilization fee .
mates fair value due to their short-term maturities and uncommitted credit facilities variable interest rates .

the company has a $ 26 million uncommitted unsecured 8 .
derivative financial instruments revolving line of credit .
the purpose of this credit line is to support the working capital needs , letters of credit and the company is exposed to market risk due to changes overdraft needs for the company .
the uncommitted credit in currency exchange rates .

as a result , the company utilizes agreement contains customary affirmative and negative cove- foreign exchange forward contracts to offset the effect of nants and events of default , none of which are considered exchange rate fluctuations on anticipated foreign currency restrictive to the operation of the business .

in addition , this transactions , primarily intercompany sales and purchases uncommitted credit agreement provides for unconditional expected to occur within the next twelve to twenty-four and irrevocable guarantees by the company .
in the event the months .
the company does not hold financial instruments company 2019s long-term debt ratings by both standard and for trading or speculative purposes .

for derivatives which poor 2019s ratings services and moody 2019s investor 2019s service , inc. , qualify as hedges of future cash flows , the effective portion fall below bb- and ba3 , then the company may be required of changes in fair value is temporarily recorded in other to repay all outstanding and contingent obligations .
the comprehensive income , then recognized in earnings when company 2019s credit rating as of december 31 , 2002 met such the hedged item affects earnings .

the ineffective portion of requirement .
this uncommitted credit line matures on a derivative 2019s change in fair value , if any , is reported in july 31 , 2003 .
outstanding borrowings under this uncommit- earnings .
the net amount recognized in earnings during the ted line of credit as of december 31 , 2002 were $ 0.5 million years ended december 31 , 2002 and 2001 , due to ineffective- with a weighted average interest rate of 6.35 percent .

ness and amounts excluded from the assessment of hedge the company also has a $ 15 million uncommitted effectiveness , was not significant .
revolving unsecured line of credit .
the purpose of this line of the notional amounts of outstanding foreign exchange credit is to support short-term working capital needs of the forward contracts , principally japanese yen and the euro , company .

the agreement for this uncommitted unsecured entered into with third parties , at december 31 , 2002 , was line of credit contains customary covenants , none of which $ 252 million .
the fair value of derivative instruments recorded are considered restrictive to the operation of the business .
in accrued liabilities at december 31 , 2002 , was $ 13.8 million , this uncommitted line matures on july 31 , 2003 .

there were or $ 8.5 million net of taxes , which is deferred in other no borrowings under this uncommitted line of credit as of comprehensive income and is expected to be reclassified to december 31 , 2002 .
earnings over the next two years , of which , $ 7.7 million , or the company has a $ 20 million uncommitted revolving $ 4.8 million , net of taxes , is expected to be reclassified to unsecured line of credit .
the purpose of this line of credit is earnings over the next twelve months .

to support short-term working capital needs of the company .
the pricing is based upon money market rates .
the agree- 9 .
capital stock and earnings per share ment for this uncommitted unsecured line of credit contains as discussed in note 14 , all of the shares of company customary covenants , none of which are considered restrictive common stock were distributed at the distribution by the to the operation of the business .

this uncommitted line former parent to its stockholders in the form of a dividend matures on july 31 , 2003 .
there were no borrowings under of one share of company common stock , and the associated this uncommitted line of credit as of december 31 , 2002 .
preferred stock purchase right , for every ten shares of the company was in compliance with all covenants common stock of the former parent .

in july 2001 the board under all three of the uncommitted credit facilities as of of directors of the company adopted a rights agreement december 31 , 2002 .
the company had no long-term debt intended to have anti-takeover effects .
under this agreement as of december 31 , 2002 .
one right attaches to each share of company common stock .

outstanding debt as of december 31 , 2002 and 2001 , the rights will not become exercisable until the earlier of : consist of the following ( in millions ) : a ) the company learns that a person or group acquired , or 2002 2001 obtained the right to acquire , beneficial ownership of securi- credit facility $ 156.2 $ 358.2 ties representing more than 20 percent of the shares of uncommitted credit facilities 0.5 5.7 company common stock then outstanding , or b ) such date , if any , as may be designated by

b ) such date , if any , as may be designated by the board of directorstotal debt $ 156.7 $ 363.9 following the commencement of , or first public disclosure of the company paid $ 13.0 million and $ 4.6 million in an intention to commence , a tender offer or exchange offer interest charges during 2002 and 2001 , respectively.

 |
| table | | 2002    | 2001
----------------------------- | ------- | -------
credit facility               | $ 156.2 | $ 358.2
uncommitted credit facilities | 0.5     | 5.7
total debt                    | $ 156.7 | $ 363.9 |