| _id | dd4ba28b6 |
| title |  |
| text | liquidity and capital resources during the past three years , we had sufficient financial resources to meet our operating requirements , to fund our capital spending , share repurchases and pension plans and to pay increasing dividends to our shareholders .
cash from operating activities was $ 1436 million , $ 1310 million , and $ 1345 million in 2011 , 2010 , and 2009 , respectively .

higher earnings increased cash from operations in 2011 compared to 2010 , but the increase was reduced by cash used to fund an increase in working capital of $ 212 million driven by our sales growth in 2011 .
cash provided by working capital was greater in 2009 than 2010 and that decline was more than offset by the cash from higher 2010 earnings .

operating working capital is a subset of total working capital and represents ( 1 ) trade receivables-net of the allowance for doubtful accounts , plus ( 2 ) inventories on a first-in , first-out ( 201cfifo 201d ) basis , less ( 3 ) trade creditors 2019 liabilities .
see note 3 , 201cworking capital detail 201d under item 8 of this form 10-k for further information related to the components of the company 2019s operating working capital .

we believe operating working capital represents the key components of working capital under the operating control of our businesses .
operating working capital at december 31 , 2011 and 2010 was $ 2.7 billion and $ 2.6 billion , respectively .
a key metric we use to measure our working capital management is operating working capital as a percentage of sales ( fourth quarter sales annualized ) .

( millions ) 2011 2010 operating working capital $ 2739 $ 2595 operating working capital as % (  % ) of sales 19.5% ( 19.5 % ) 19.2% ( 19.2 % ) the change in operating working capital elements , excluding the impact of currency and acquisitions , was an increase of $ 195 million during the year ended december 31 , 2011 .

this increase was the net result of an increase in receivables from customers associated with the 2011 increase in sales and an increase in fifo inventory slightly offset by an increase in trade creditors 2019 liabilities .
trade receivables from customers , net , as a percentage of fourth quarter sales , annualized , for 2011 was 17.9 percent , down slightly from 18.1 percent for 2010 .
days sales outstanding was 66 days in 2011 , level with 2010 .

inventories on a fifo basis as a percentage of fourth quarter sales , annualized , for 2011 was 13.1 percent level with 2010 .
inventory turnover was 5.0 times in 2011 and 4.6 times in 2010 .
total capital spending , including acquisitions , was $ 446 million , $ 341 million and $ 265 million in 2011 , 2010 , and 2009 , respectively .

spending related to modernization and productivity improvements , expansion of existing businesses and environmental control projects was $ 390 million , $ 307 million and $ 239 million in 2011 , 2010 , and 2009 , respectively , and is expected to be in the range of $ 450-$ 550 million during 2012 .
capital spending , excluding acquisitions , as a percentage of sales was 2.6% ( 2.6 % ) , 2.3% ( 2.3 % ) and 2.0% ( 2.0 % ) in 2011 , 2010 and 2009 , respectively .

capital spending related to business acquisitions amounted to $ 56 million , $ 34 million , and $ 26 million in 2011 , 2010 and 2009 , respectively .
we continue to evaluate acquisition opportunities and expect to use cash in 2012 to fund small to mid-sized acquisitions , as part of a balanced deployment of our cash to support growth in earnings .

in january 2012 , the company closed the previously announced acquisitions of colpisa , a colombian producer of automotive oem and refinish coatings , and dyrup , a european architectural coatings company .
the cost of these acquisitions , including assumed debt , was $ 193 million .
dividends paid to shareholders totaled $ 355 million , $ 360 million and $ 353 million in 2011 , 2010 and 2009 , respectively .

ppg has paid uninterrupted annual dividends since 1899 , and 2011 marked the 40th consecutive year of increased annual dividend payments to shareholders .
we did not have a mandatory contribution to our u.s .
defined benefit pension plans in 2011 ; however , we made voluntary contributions to these plans in 2011 totaling $ 50 million .
in 2010 and 2009 , we made voluntary contributions to our u.s .

defined benefit pension plans of $ 250 and $ 360 million ( of which $ 100 million was made in ppg stock ) , respectively .
we expect to make voluntary contributions to our u.s .
defined benefit pension plans in 2012 of up to $ 60 million .
contributions were made to our non-u.s .

contributions were made to our non-u.s .
defined benefit pension plans of $ 71 million , $ 87 million and $ 90 million ( of which approximately $ 20 million was made in ppg stock ) for 2011 , 2010 and 2009 , respectively , some of which were required by local funding requirements .
we expect to make mandatory contributions to our non-u.s .
plans in 2012 of approximately $ 90 million .

plans in 2012 of approximately $ 90 million .
the company 2019s share repurchase activity in 2011 , 2010 and 2009 was 10.2 million shares at a cost of $ 858 million , 8.1 million shares at a cost of $ 586 million and 1.5 million shares at a cost of $ 59 million , respectively .
we expect to make share repurchases in 2012 as part of our cash deployment focused on earnings growth .

the amount of spending will depend on the level of acquisition spending and other uses of cash , but we currently expect to spend in the range of $ 250 million to $ 500 million on share repurchases in 2012 .
we can repurchase about 9 million shares under the current authorization from the board of directors .
26 2011 ppg annual report and form 10-k .

liquidity and capital resources during the past three years , we had sufficient financial resources to meet our operating requirements , to fund our capital spending , share repurchases and pension plans and to pay increasing dividends to our shareholders .
cash from operating activities was $ 1436 million , $ 1310 million , and $ 1345 million in 2011 , 2010 , and 2009 , respectively .

higher earnings increased cash from operations in 2011 compared to 2010 , but the increase was reduced by cash used to fund an increase in working capital of $ 212 million driven by our sales growth in 2011 .
cash provided by working capital was greater in 2009 than 2010 and that decline was more than offset by the cash from higher 2010 earnings .

operating working capital is a subset of total working capital and represents ( 1 ) trade receivables-net of the allowance for doubtful accounts , plus ( 2 ) inventories on a first-in , first-out ( 201cfifo 201d ) basis , less ( 3 ) trade creditors 2019 liabilities .
see note 3 , 201cworking capital detail 201d under item 8 of this form 10-k for further information related to the components of the company 2019s operating working capital .

we believe operating working capital represents the key components of working capital under the operating control of our businesses .
operating working capital at december 31 , 2011 and 2010 was $ 2.7 billion and $ 2.6 billion , respectively .
a key metric we use to measure our working capital management is operating working capital as a percentage of sales ( fourth quarter sales annualized ) .

( millions ) 2011 2010 operating working capital $ 2739 $ 2595 operating working capital as % (  % ) of sales 19.5% ( 19.5 % ) 19.2% ( 19.2 % ) the change in operating working capital elements , excluding the impact of currency and acquisitions , was an increase of $ 195 million during the year ended december 31 , 2011 .

this increase was the net result of an increase in receivables from customers associated with the 2011 increase in sales and an increase in fifo inventory slightly offset by an increase in trade creditors 2019 liabilities .
trade receivables from customers , net , as a percentage of fourth quarter sales , annualized , for 2011 was 17.9 percent , down slightly from 18.1 percent for 2010 .
days sales outstanding was 66 days in 2011 , level with 2010 .

inventories on a fifo basis as a percentage of fourth quarter sales , annualized , for 2011 was 13.1 percent level with 2010 .
inventory turnover was 5.0 times in 2011 and 4.6 times in 2010 .
total capital spending , including acquisitions , was $ 446 million , $ 341 million and $ 265 million in 2011 , 2010 , and 2009 , respectively .

spending related to modernization and productivity improvements , expansion of existing businesses and environmental control projects was $ 390 million , $ 307 million and $ 239 million in 2011 , 2010 , and 2009 , respectively , and is expected to be in the range of $ 450-$ 550 million during 2012 .
capital spending , excluding acquisitions , as a percentage of sales was 2.6% ( 2.6 % ) , 2.3% ( 2.3 % ) and 2.0% ( 2.0 % ) in 2011 , 2010 and 2009 , respectively .

capital spending related to business acquisitions amounted to $ 56 million , $ 34 million , and $ 26 million in 2011 , 2010 and 2009 , respectively .
we continue to evaluate acquisition opportunities and expect to use cash in 2012 to fund small to mid-sized acquisitions , as part of a balanced deployment of our cash to support growth in earnings .

in january 2012 , the company closed the previously announced acquisitions of colpisa , a colombian producer of automotive oem and refinish coatings , and dyrup , a european architectural coatings company .
the cost of these acquisitions , including assumed debt , was $ 193 million .
dividends paid to shareholders totaled $ 355 million , $ 360 million and $ 353 million in 2011 , 2010 and 2009 , respectively .

ppg has paid uninterrupted annual dividends since 1899 , and 2011 marked the 40th consecutive year of increased annual dividend payments to shareholders .
we did not have a mandatory contribution to our u.s .
defined benefit pension plans in 2011 ; however , we made voluntary contributions to these plans in 2011 totaling $ 50 million .
in 2010 and 2009 , we made voluntary contributions to our u.s .

defined benefit pension plans of $ 250 and $ 360 million ( of which $ 100 million was made in ppg stock ) , respectively .
we expect to make voluntary contributions to our u.s .
defined benefit pension plans in 2012 of up to $ 60 million .
contributions were made to our non-u.s .

contributions were made to our non-u.s .
defined benefit pension plans of $ 71 million , $ 87 million and $ 90 million ( of which approximately $ 20 million was made in ppg stock ) for 2011 , 2010 and 2009 , respectively , some of which were required by local funding requirements .
we expect to make mandatory contributions to our non-u.s .
plans in 2012 of approximately $ 90 million .

plans in 2012 of approximately $ 90 million .
the company 2019s share repurchase activity in 2011 , 2010 and 2009 was 10.2 million shares at a cost of $ 858 million , 8.1 million shares at a cost of $ 586 million and 1.5 million shares at a cost of $ 59 million , respectively .
we expect to make share repurchases in 2012 as part of our cash deployment focused on earnings growth .

the amount of spending will depend on the level of acquisition spending and other uses of cash , but we currently expect to spend in the range of $ 250 million to $ 500 million on share repurchases in 2012 .
we can repurchase about 9 million shares under the current authorization from the board of directors .
26 2011 ppg annual report and form 10-k

 |
| table | ( millions )                                   | 2011             | 2010   |
---------------------------------------------- | ---------------- | ------ | --------
operating working capital                      | $ 2739           | $ 2595 |
operating working capital as % (  % ) of sales | 19.5% ( 19.5 % ) | 19.2   | % (  % ) |


| _id | dd4c538a0 |
| title |  |
| text | the contracts were valued as of april 1 , 2002 , and an asset and a corresponding gain of $ 127 million , net of income taxes , was recorded as a cumulative effect of a change in accounting principle in the second quarter of 2002 .
the majority of the gain recorded relates to the warrior run contract , as the asset value of the deepwater contract on april 1 , 2002 , was less than $ 1 million .
the warrior run contract qualifies and was designated as a cash flow hedge as defined by sfas no .

133 and hedge accounting is applied for this contract subsequent to april 1 , 2002 .
the contract valuations were performed using current forward electricity and gas price quotes and current market data for other contract variables .
the forward curves used to value the contracts include certain assumptions , including projections of future electricity and gas prices in periods where future prices are not quoted .

fluctuations in market prices and their impact on the assumptions will cause the value of these contracts to change .
such fluctuations will increase the volatility of the company 2019s reported results of operations .
11 .
commitments , contingencies and risks operating leases 2014as of december 31 , 2002 , the company was obligated under long-term non-cancelable operating leases , primarily for office rental and site leases .

rental expense for operating leases , excluding amounts related to the sale/leaseback discussed below , was $ 31 million $ 32 million and $ 13 million in the years ended december 31 , 2002 , 2001and 2000 , respectively , including commitments of businesses classified as discontinued amounting to $ 6 million in 2002 , $ 16 million in 2001 and $ 6 million in 2000 .
the future minimum lease commitments under these leases are as follows ( in millions ) : discontinued total operations .

sale/leaseback 2014in may 1999 , a subsidiary of the company acquired six electric generating stations from new york state electric and gas ( 2018 2018nyseg 2019 2019 ) .
concurrently , the subsidiary sold two of the plants to an unrelated third party for $ 666 million and simultaneously entered into a leasing arrangement with the unrelated party .
this transaction has been accounted for as a sale/leaseback with operating lease treatment .

rental expense was $ 54 million , $ 58 million and $ 54 million in 2002 , 2001 and 2000 , respectively .
future minimum lease commitments are as follows ( in millions ) : in connection with the lease of the two power plants , the subsidiary is required to maintain a rent reserve account equal to the maximum semi-annual payment with respect to the sum of the basic rent ( other then deferrable basic rent ) and fixed charges expected to become due in the immediately succeeding three-year period .

at december 31 , 2002 , 2001 and 2000 , the amount deposited in the rent reserve account approximated

 |
| table | | total | discontinued operations
---------- | ----- | -----------------------
2003       | $ 30  | $ 4
2004       | 20    | 4
2005       | 15    | 3
2006       | 11    | 1
2007       | 9     | 1
thereafter | 84    | 1
total      | $ 169 | $ 14 |


| _id | dd497c06e |
| title |  |
| text | with apb no .
25 .
instead , companies will be required to account for such transactions using a fair-value method and recognize the related expense associated with share-based payments in the statement of operations .
sfas 123r is effective for us as of january 1 , 2006 .
we have historically accounted for share-based payments to employees under apb no .
25 2019s intrinsic value method .
as such , we generally have not recognized compensation expense for options granted to employees .

we will adopt the provisions of sfas 123r under the modified prospective method , in which compensation cost for all share-based payments granted or modified after the effective date is recognized based upon the requirements of sfas 123r , and compensation cost for all awards granted to employees prior to the effective date that are unvested as of the effective date of sfas 123r is recognized based on sfas 123 .

tax benefits will be recognized related to the cost for share-based payments to the extent the equity instrument would ordinarily result in a future tax deduction under existing law .
tax expense will be recognized to write off excess deferred tax assets when the tax deduction upon settlement of a vested option is less than the expense recorded in the statement of operations ( to the extent not offset by prior tax credits for settlements where the tax deduction was greater than the fair value cost ) .

we estimate that we will recognize equity-based compensation expense of approximately $ 35 million to $ 38 million for the year ending december 31 , 2006 .
this amount is subject to revisions as we finalize certain assumptions related to 2006 , including the size and nature of awards and forfeiture rates .
sfas 123r also requires the benefits of tax deductions in excess of recognized compensation cost be reported as a financing cash flow rather than as operating cash flow as was previously required .

we cannot estimate what the future tax benefits will be as the amounts depend on , among other factors , future employee stock option exercises .
due to the our tax loss position , there was no operating cash inflow realized for december 31 , 2005 and 2004 for such excess tax deductions .
in march 2005 , the sec issued staff accounting bulletin ( sab ) no .
107 regarding the staff 2019s interpretation of sfas 123r .

this interpretation provides the staff 2019s views regarding interactions between sfas 123r and certain sec rules and regulations and provides interpretations of the valuation of share-based payments for public companies .
the interpretive guidance is intended to assist companies in applying the provisions of sfas 123r and investors and users of the financial statements in analyzing the information provided .
we will follow the guidance prescribed in sab no .

107 in connection with our adoption of sfas 123r .
information presented pursuant to the indentures of our 7.50% ( 7.50 % ) notes , 7.125% ( 7.125 % ) notes and ati 7.25% ( 7.25 % ) the following table sets forth information that is presented solely to address certain tower cash flow reporting requirements contained in the indentures for our 7.50% ( 7.50 % ) notes , 7.125% ( 7.125 % ) notes and ati 7.25% ( 7.25 % ) notes .

the information contained in note 19 to our consolidated financial statements is also presented to address certain reporting requirements contained in the indenture for our ati 7.25% ( 7.25 % ) notes .
the following table presents tower cash flow , adjusted consolidated cash flow and non-tower cash flow for the company and its restricted subsidiaries , as defined in the indentures for the applicable notes ( in thousands ) : .

 |
| table | tower cash flow for the three months ended december 31 2005                   | $ 139590
----------------------------------------------------------------------------- | ------------------
consolidated cash flow for the twelve months ended december 31 2005           | $ 498266
less : tower cash flow for the twelve months ended december 31 2005           | -524804 ( 524804 )
plus : four times tower cash flow for the three months ended december 31 2005 | 558360
adjusted consolidated cash flow for the twelve months ended december 31 2005  | $ 531822
non-tower cash flow for the twelve months ended december 31 2005              | $ -30584 ( 30584 ) |


| _id | dd4b89dc0 |
| title |  |
| text | 31mar201122064257 positions which were required to be capitalized .
there are no positions which we anticipate could change materially within the next twelve months .
liquidity and capital resources .

( 1 ) does not include restricted cash balances cash flow from operating activities : cash provided from operating activities is net income adjusted for certain non-cash items and changes in certain assets and liabilities .
for fiscal year 2010 we generated $ 223.0 million in cash flow from operations , an increase of $ 4.2 million when compared to the $ 218.8 million generated in fiscal year 2009 .

during fiscal year 2010 , net income increased by $ 42.3 million to $ 137.3 million when compared to fiscal year 2009 .
despite the increase in net income , net cash provided by operating activities remained relatively consistent .
this was primarily due to : 2022 fiscal year 2010 net income included a deferred tax expense of $ 38.5 million compared to a $ 24.9 million deferred tax benefit included in 2009 net income due to the release of the tax valuation allowance in fiscal year 2009 .

2022 during fiscal year 2010 , the company invested in working capital as result of higher business activity .
compared to fiscal year 2009 , accounts receivable , inventory and accounts payable increased by $ 60.9 million , $ 38.8 million and $ 42.9 million , respectively .
cash flow from investing activities : cash flow from investing activities consists primarily of capital expenditures and acquisitions .

we had net cash outflows of $ 95.3 million in fiscal year 2010 , compared to $ 49.5 million in fiscal year 2009 .
the increase is primarily due to an increase of $ 49.8 million in capital expenditures .
we anticipate our capital spending to be consistent in fiscal year 2011 to maintain our projected growth rate .
cash flow from financing activities : cash flows from financing activities consist primarily of cash transactions related to debt and equity .

during fiscal year 2010 , we had net cash outflows of $ 38.6 million , compared to $ 30.2 million in fiscal year 2009 .
during the year we had the following significant transactions : 2022 we retired $ 53.0 million in aggregate principal amount ( carrying value of $ 51.1 million ) of 2007 convertible notes for $ 80.7 million , which included a $ 29.6 million premium paid for the equity component of the instrument .

2022 we received net proceeds from employee stock option exercises of $ 40.5 million in fiscal year 2010 , compared to $ 38.7 million in fiscal year 2009 .
skyworks / 2010 annual report 103

 |
| table | ( dollars in thousands )                         | fiscal years ended october 1 2010 | fiscal years ended october 2 2009 | fiscal years ended october 3 2008
------------------------------------------------ | --------------------------------- | --------------------------------- | ---------------------------------
cash and cash equivalents at beginning of period | $ 364221                          | $ 225104                          | $ 241577
net cash provided by operating activities        | 222962                            | 218805                            | 182673
net cash used in investing activities            | -95329 ( 95329 )                  | -49528 ( 49528 )                  | -94959 ( 94959 )
net cash used in financing activities            | -38597 ( 38597 )                  | -30160 ( 30160 )                  | -104187 ( 104187 )
cash and cash equivalents at end of period ( 1 ) | $ 453257                          | $ 364221                          | $ 225104 |


| _id | dd4c17f9e |
| title |  |
| text | 58 2016 annual report note 12 .
business acquisition bayside business solutions , inc .
effective july 1 , 2015 , the company acquired all of the equity interests of bayside business solutions , an alabama-based company that provides technology solutions and payment processing services primarily for the financial services industry , for $ 10000 paid in cash .
this acquisition was funded using existing operating cash .

the acquisition of bayside business solutions expanded the company 2019s presence in commercial lending within the industry .
management has completed a purchase price allocation of bayside business solutions and its assessment of the fair value of acquired assets and liabilities assumed .
the recognized amounts of identifiable assets acquired and liabilities assumed , based upon their fair values as of july 1 , 2015 are set forth below: .

the goodwill of $ 6099 arising from this acquisition consists largely of the growth potential , synergies and economies of scale expected from combining the operations of the company with those of bayside business solutions , together with the value of bayside business solutions 2019 assembled workforce .
goodwill from this acquisition has been allocated to our banking systems and services segment .
the goodwill is not expected to be deductible for income tax purposes .

identifiable intangible assets from this acquisition consist of customer relationships of $ 3402 , $ 659 of computer software and other intangible assets of $ 944 .
the weighted average amortization period for acquired customer relationships , acquired computer software , and other intangible assets is 15 years , 5 years , and 20 years , respectively .
current assets were inclusive of cash acquired of $ 1725 .
the fair value of current assets acquired included accounts receivable of $ 178 .

the gross amount of receivables was $ 178 , none of which was expected to be uncollectible .
during fiscal year 2016 , the company incurred $ 55 in costs related to the acquisition of bayside business solutions .
these costs included fees for legal , valuation and other fees .
these costs were included within general and administrative expenses .

the results of bayside business solutions 2019 operations included in the company 2019s consolidated statement of income for the twelve months ended june 30 , 2016 included revenue of $ 4273 and after-tax net income of $ 303 .
the accompanying consolidated statements of income for the fiscal year ended june 30 , 2016 do not include any revenues and expenses related to this acquisition prior to the acquisition date .

the impact of this acquisition was considered immaterial to both the current and prior periods of our consolidated financial statements and pro forma financial information has not been provided .
banno , llc effective march 1 , 2014 , the company acquired all of the equity interests of banno , an iowa-based company that provides web and transaction marketing services with a focus on the mobile medium , for $ 27910 paid in cash .
this acquisition was funded using existing operating cash .

the acquisition of banno expanded the company 2019s presence in online and mobile technologies within the industry .
during fiscal year 2014 , the company incurred $ 30 in costs related to the acquisition of banno .
these costs included fees for legal , valuation and other fees .
these costs were included within general and administrative expenses .

the results of banno's operations included in the company's consolidated statements of income for the year ended june 30 , 2016 included revenue of $ 6393 and after-tax net loss of $ 1289 .
for the year ended june 30 , 2015 , our consolidated statements of income included revenue of $ 4175 and after-tax net loss of $ 1784 attributable to banno .

the results of banno 2019s operations included in the company 2019s consolidated statement of operations from the acquisition date to june 30 , 2014 included revenue of $ 848 and after-tax net loss of $ 1121 .
the accompanying consolidated statements of income for the twelve month period ended june 30 , 2016 do not include any revenues and expenses related to this acquisition prior to the acquisition date .

the impact of this acquisition was considered immaterial to both the current and prior periods of our consolidated financial statements and pro forma financial information has not been provided.

 |
| table | current assets                 | $ 1922
------------------------------ | --------------
long-term assets               | 253
identifiable intangible assets | 5005
total liabilities assumed      | -3279 ( 3279 )
total identifiable net assets  | 3901
goodwill                       | 6099
net assets acquired            | $ 10000 |


| _id | dd4bcbcf2 |
| title |  |
| text | item 6 .
selected financial data the following table represents our selected financial data .
the table should be read in conjunction with item 7 and item 8 of this report .
the table below reflects immaterial error corrections discussed in note 2 : summary of significant accounting policies in item 8. .

basic earnings ( loss ) per share ( 3 ) $ 2.96 $ ( 2.05 ) $ 2.68 $ 2.44 $ ( 49.14 ) diluted earnings ( loss ) per share ( 3 ) $ 2.91 $ ( 2.05 ) $ 2.68 $ 2.44 $ ( 49.14 ) ( 1 ) long-term debt does not include amounts payable to our former parent as of and before december 31 , 2010 , as these amounts were due upon demand and included in current liabilities .
( 2 ) free cash flow is a non-gaap financial measure and represents cash from operating activities less capital expenditures .

see liquidity and capital resources in item 7 for more information on this measure .
( 3 ) on march 30 , 2011 , the record date of the stock distribution associated with the spin-off from northrop grumman , approximately 48.8 million shares of $ 0.01 par value hii common stock were distributed to northrop grumman stockholders .

this share amount was utilized for the calculation of basic and diluted earnings ( loss ) per share for the three months ended march 31 , 2011 , and all prior periods , as no common stock of the company existed prior to march 30 , 2011 , and the impact of dilutive securities in the three month period ended march 31 , 2011 , was not meaningful.

 |
| table | ( $ in millions except per share amounts ) | year ended december 31 2012 | year ended december 31 2011 | year ended december 31 2010 | year ended december 31 2009 | year ended december 31 2008
------------------------------------------ | --------------------------- | --------------------------- | --------------------------- | --------------------------- | ---------------------------
sales and service revenues                 | $ 6708                      | $ 6575                      | $ 6723                      | $ 6292                      | $ 6189
goodwill impairment                        | 2014                        | 290                         | 2014                        | 2014                        | 2465
operating income ( loss )                  | 358                         | 100                         | 241                         | 203                         | -2332 ( 2332 )
net earnings ( loss )                      | 146                         | -100 ( 100 )                | 131                         | 119                         | -2397 ( 2397 )
total assets                               | 6392                        | 6069                        | 5270                        | 5097                        | 4821
long-term debt ( 1 )                       | 1779                        | 1830                        | 105                         | 283                         | 283
total long-term obligations                | 4341                        | 3838                        | 1637                        | 1708                        | 1823
free cash flow ( 2 )                       | 170                         | 331                         | 168                         | -269 ( 269 )                | 121
dividends declared per share               | $ 0.10                      | $ 2014                      | $ 2014                      | $ 2014                      | $ 2014
basic earnings ( loss ) per share ( 3 )    | $ 2.96                      | $ -2.05 ( 2.05 )            | $ 2.68                      | $ 2.44                      | $ -49.14 ( 49.14 )
diluted earnings ( loss ) per share ( 3 )  | $ 2.91                      | $ -2.05 ( 2.05 )            | $ 2.68                      | $ 2.44                      | $ -49.14 ( 49.14 ) |


| _id | dd4c5f894 |
| title |  |
| text | item 2 .
properties a summary of our significant locations at december 31 , 2007 is shown in the following table .
all facilities are leased , except for 166000 square feet of our office in alpharetta , georgia .
square footage amounts are net of space that has been sublet or part of a facility restructuring. .

all of our facilities are used by both our retail and institutional segments .
in addition to the significant facilities above , we also lease all of our 27 e*trade financial branches , ranging in space from 2500 to 13000 square feet .
all other leased facilities with space of less than 25000 square feet are not listed by location .
we believe our facilities space is adequate to meet our needs in 2008 .
item 3 .
legal proceedings in june 2002 , the company acquired from marketxt holdings , inc .

( formerly known as 201ctradescape corporation 201d ) the following entities : tradescape securities , llc ; tradescape technologies , llc ; and momentum securities , llc .
disputes subsequently arose between the parties regarding the responsibility for liabilities that first became known to the company after the sale .

on april 8 , 2004 , marketxt filed a complaint in the united states district court for the southern district of new york against the company , certain of its officers and directors , and other third parties , including softbank investment corporation ( 201csbi 201d ) and softbank corporation , alleging that defendants were preventing plaintiffs from obtaining certain contingent payments allegedly due , and as a result , claiming damages of $ 1.5 billion .

on april 9 , 2004 , the company filed a complaint in the united states district court for the southern district of new york against certain directors and officers of marketxt seeking declaratory relief and unspecified monetary damages for defendants 2019 fraud in connection with the 2002 sale , including , but not limited to , having presented the company with fraudulent financial statements regarding the condition of momentum securities , llc during the due diligence process .

subsequently , marketxt was placed into bankruptcy , and the company filed an adversary proceeding against marketxt and others in january 2005 , seeking declaratory relief , compensatory and punitive damages , in those chapter 11 bankruptcy proceedings in the united states bankruptcy court for the southern district of new york entitled , 201cin re marketxt holdings corp. , debtor . 201d in that same court , the company filed a separate adversary proceeding against omar amanat in those chapter 7 bankruptcy

against omar amanat in those chapter 7 bankruptcy proceedings entitled , 201cin re amanat , omar shariff . 201d in october 2005 , marketxt answered the company 2019s adversary proceeding and asserted its counterclaims , subsequently amending its claims in 2006 to add a $ 326.0 million claim for 201cpromissory estoppel 201d in which market xt alleged , for the first time , that the company breached a prior promise to purchase the acquired entities in 1999-2000 .

in april 2006 , omar amanat answered the company 2019s separate adversary proceeding against him and asserted his counterclaims .
in separate motions before the bankruptcy court , the company has moved to dismiss certain counterclaims brought by marketxt including those described above , as well as certain counterclaims brought by mr .
amanat .

amanat .
in a ruling dated september 29 , 2006 , the bankruptcy court in the marketxt case granted the company 2019s motion to dismiss four of the six bases upon which marketxt asserts its fraud claims against the company ; its conversion claim ; and its demand for punitive damages .
in the same ruling , the bankruptcy court denied in its entirety marketxt 2019s competing motion to dismiss the company 2019s claims against it .

on october 26 , 2006 , the bankruptcy court subsequently dismissed marketxt 2019s 201cpromissory estoppel 201d claim .
by order dated december 18 , 2007 , the united states bankruptcy

 |
| table | location                 | approximate square footage
------------------------ | --------------------------
alpharetta georgia       | 219000
arlington virginia       | 196000
jersey city new jersey   | 107000
charlotte north carolina | 83000
menlo park california    | 79000
sandy utah               | 77000
toronto canada           | 75000
new york new york        | 60000
chicago illinois         | 29000 |


| _id | dd4c2f16c |
| title |  |
| text | table 20 : pro forma transitional basel iii tier 1 common capital ratio dollars in millions december 31 .

estimated basel iii transitional tier 1 common capital ( with 2014 phase-ins ) $ 28886 basel i risk-weighted assets calculated as applicable for 2014 272321 pro forma basel iii transitional tier 1 common capital ratio ( with 2014 phase-ins ) 10.6% ( 10.6 % ) ( a ) represents net adjustments related to accumulated other comprehensive income for available for sale securities and pension and other postretirement benefit plans .

pnc utilizes these fully implemented and transitional basel iii capital ratios to assess its capital position , including comparison to similar estimates made by other financial institutions .

these basel iii capital estimates are likely to be impacted by any additional regulatory guidance , continued analysis by pnc as to the application of the rules to pnc , and in the case of ratios calculated using the advanced approaches , the ongoing evolution , validation and regulatory approval of pnc 2019s models integral to the calculation of advanced approaches risk-weighted assets .

the access to and cost of funding for new business initiatives , the ability to undertake new business initiatives including acquisitions , the ability to engage in expanded business activities , the ability to pay dividends or repurchase shares or other capital instruments , the level of deposit insurance costs , and the level and nature of regulatory oversight depend , in large part , on a financial institution 2019s capital strength .

we provide additional information regarding enhanced capital requirements and some of their potential impacts on pnc in item 1 business 2013 supervision and regulation , item 1a risk factors and note 22 regulatory matters in the notes to consolidated financial statements in item 8 of this report .

off-balance sheet arrangements and variable interest entities we engage in a variety of activities that involve unconsolidated entities or that are otherwise not reflected in our consolidated balance sheet that are generally referred to as 201coff-balance sheet arrangements . 201d additional information on these types of activities is included in the following sections of this report : 2022 commitments , including contractual obligations and other commitments , included within the risk management section

, included within the risk management section of this item 7 , 2022 note 3 loan sale and servicing activities and variable interest entities in the notes to consolidated financial statements included in item 8 of this report , 2022 note 14 capital securities of subsidiary trusts and perpetual trust securities in the notes to consolidated financial statements included in item 8 of this report , and 2022 note 24 commitments and guarantees in the notes to consolidated financial statements included in item 8

financial statements included in item 8 of this report .

pnc consolidates variable interest entities ( vies ) when we are deemed to be the primary beneficiary .
the primary beneficiary of a vie is determined to be the party that meets both of the following criteria : ( i ) has the power to make decisions that most significantly affect the economic performance of the vie ; and ( ii ) has the obligation to absorb losses or the right to receive benefits that in either case could potentially be significant to the vie .

a summary of vies , including those that we have consolidated and those in which we hold variable interests but have not consolidated into our financial statements , as of december 31 , 2013 and december 31 , 2012 is included in note 3 in the notes to consolidated financial statements included in item 8 of this report .

trust preferred securities and reit preferred securities we are subject to certain restrictions , including restrictions on dividend payments , in connection with $ 206 million in principal amount of an outstanding junior subordinated debenture associated with $ 200 million of trust preferred securities ( both amounts as of december 31 , 2013 ) that were issued by pnc capital trust c , a subsidiary statutory trust .

generally , if there is ( i ) an event of default under the debenture , ( ii ) pnc elects to defer interest on the debenture , ( iii ) pnc exercises its right to defer payments on the related trust preferred security issued by the statutory trust , or ( iv ) there is a default under pnc 2019s guarantee of such payment obligations , as specified in the applicable governing documents , then pnc would be subject during the period of such default or deferral to restrictions on dividends and other provisions

to restrictions on dividends and other provisions protecting the status of the debenture holders similar to or in some ways more restrictive than those potentially imposed under the exchange agreement with pnc preferred funding trust ii .

see note 14 capital securities of subsidiary trusts and perpetual trust securities in the notes to consolidated financial statements in item 8 of this report for additional information on contractual limitations on dividend payments resulting from securities issued by pnc preferred funding trust i and pnc preferred funding trust ii .

see the liquidity risk management portion of the risk management section of this item 7 for additional information regarding our first quarter 2013 redemption of the reit preferred securities issued by pnc preferred funding trust iii and additional discussion of redemptions of trust preferred securities .
48 the pnc financial services group , inc .
2013 form 10-k

 |
| table | dollars in millions                                                                 | december 31 2013
----------------------------------------------------------------------------------- | ----------------
basel i tier 1 common capital                                                       | $ 28484
less phased-in regulatory capital adjustments:                                      |
basel iii quantitative limits                                                       | -228 ( 228 )
accumulated other comprehensive income ( a )                                        | 39
other intangibles                                                                   | 381
all other adjustments                                                               | 210
estimated basel iii transitional tier 1 common capital ( with 2014 phase-ins )      | $ 28886
basel i risk-weighted assets calculated as applicable for 2014                      | 272321
pro forma basel iii transitional tier 1 common capital ratio ( with 2014phase-ins ) | 10.6% ( 10.6 % ) |


| _id | dd496d44c |
| title |  |
| text | risk and insurance brokerage services .

during 2009 we continued to see a soft market , which began in 2007 , in our retail brokerage product line .
in 2007 , we experienced a soft market in many business lines and in many geographic areas .
in a 2018 2018soft market , 2019 2019 premium rates flatten or decrease , along with commission revenues , due to increased competition for market share among insurance carriers or increased underwriting capacity .

changes in premiums have a direct and potentially material impact on the insurance brokerage industry , as commission revenues are generally based on a percentage of the premiums paid by insureds .
prices fell throughout 2007 , with the greatest declines seen in large and middle-market accounts .
prices continued to decline during 2008 , although the rate of decline slowed toward the end of the year .

in our reinsurance brokerage product line , pricing overall during 2009 was also down , although during a portion of the year it was flat to up slightly .
additionally , beginning in late 2008 and continuing throughout 2009 , we faced difficult conditions as a result of unprecedented disruptions in the global economy , the repricing of credit risk and the deterioration of the financial markets .

continued volatility and further deterioration in the credit markets have reduced our customers 2019 demand for our retail brokerage and reinsurance brokerage products , which have negatively hurt our operational results .
in addition , overall capacity in the industry could decrease if a significant insurer either fails or withdraws from writing insurance coverages that we offer our clients .

this failure could reduce our revenues and profitability , since we would no longer have access to certain lines and types of insurance .
risk and insurance brokerage services generated approximately 83% ( 83 % ) of our consolidated total revenues in 2009 .
revenues are generated primarily through fees paid by clients , commissions and fees paid by insurance and reinsurance companies , and investment income on funds held on behalf of clients .

our revenues vary from quarter to quarter throughout the year as a result of the timing of our clients 2019 policy renewals , the net effect of new and lost business , the timing of services provided to our clients , and the income we earn on investments , which is heavily influenced by short-term interest rates .

we operate in a highly competitive industry and compete with many retail insurance brokerage and agency firms , as well as with individual brokers , agents , and direct writers of insurance coverage .

specifically , we address the highly specialized product development and risk management needs of commercial enterprises , professional groups , insurance companies , governments , healthcare providers , and non-profit groups , among others ; provide affinity products for professional liability , life , disability income , and personal lines for individuals , associations , and businesses ; provide reinsurance services to insurance and reinsurance companies and other risk assumption entities by acting as

and other risk assumption entities by acting as brokers or intermediaries on all classes of reinsurance ; provide investment banking products and services , including mergers and acquisitions and other financial advisory services , capital raising , contingent capital financing , insurance-linked securitizations and derivative applications ; provide managing underwriting to independent agents and brokers as well as corporate clients ; provide actuarial , loss prevention , and administrative services to

loss prevention , and administrative services to businesses and consumers ; and manage captive insurance companies .

in november 2008 we expanded our product offerings through the merger with benfield , a leading independent reinsurance intermediary .
benfield products have been integrated with our existing reinsurance products in 2009 .
in february 2009 , we completed the sale of the u.s .
operations of cananwill , our premium finance business .
in june and july of 2009 , we entered into agreements with third parties with respect to our

 |
| table | years ended december 31,        | 2009             | 2008             | 2007
------------------------------- | ---------------- | ---------------- | ----------------
segment revenue                 | $ 6305           | $ 6197           | $ 5918
segment operating income        | 900              | 846              | 954
segment operating income margin | 14.3% ( 14.3 % ) | 13.7% ( 13.7 % ) | 16.1% ( 16.1 % ) |


| _id | dd4bfa78c |
| title |  |
| text | 112 / sl green realty corp .
2017 annual report 20 .
commitments and contingencies legal proceedings as of december a031 , 2017 , the company and the operating partnership were not involved in any material litigation nor , to management 2019s knowledge , was any material litigation threat- ened against us or our portfolio which if adversely determined could have a material adverse impact on us .

environmental matters our management believes that the properties are in compliance in all material respects with applicable federal , state and local ordinances and regulations regarding environmental issues .
management is not aware of any environmental liability that it believes would have a materially adverse impact on our financial position , results of operations or cash flows .

management is unaware of any instances in which it would incur significant envi- ronmental cost if any of our properties were sold .
employment agreements we have entered into employment agreements with certain exec- utives , which expire between december a02018 and february a02020 .
the minimum cash-based compensation , including base sal- ary and guaranteed bonus payments , associated with these employment agreements total $ 5.4 a0million for 2018 .

in addition these employment agreements provide for deferred compen- sation awards based on our stock price and which were valued at $ 1.6 a0million on the grant date .
the value of these awards may change based on fluctuations in our stock price .

insurance we maintain 201call-risk 201d property and rental value coverage ( includ- ing coverage regarding the perils of flood , earthquake and terrorism , excluding nuclear , biological , chemical , and radiological terrorism ( 201cnbcr 201d ) ) , within three property insurance programs and liability insurance .
separate property and liability coverage may be purchased on a stand-alone basis for certain assets , such as the development of one vanderbilt .

additionally , our captive insurance company , belmont insurance company , or belmont , pro- vides coverage for nbcr terrorist acts above a specified trigger , although if belmont is required to pay a claim under our insur- ance policies , we would ultimately record the loss to the extent of belmont 2019s required payment .
however , there is no assurance that in the future we will be able to procure coverage at a reasonable cost .

further , if we experience losses that are uninsured or that exceed policy limits , we could lose the capital invested in the damaged properties as well as the anticipated future cash flows from those plan trustees adopted a rehabilitation plan consistent with this requirement .
no surcharges have been paid to the pension plan as of december a031 , 2017 .

for the pension plan years ended june a030 , 2017 , 2016 , and 2015 , the plan received contributions from employers totaling $ 257.8 a0million , $ 249.5 a0million , and $ 221.9 a0million .
our contributions to the pension plan represent less than 5.0% ( 5.0 % ) of total contributions to the plan .
the health plan was established under the terms of collective bargaining agreements between the union , the realty advisory board on labor relations , inc .
and certain other employees .

and certain other employees .
the health plan provides health and other benefits to eligible participants employed in the building service industry who are covered under collective bargaining agreements , or other writ- ten agreements , with the union .
the health plan is administered by a board of trustees with equal representation by the employ- ers and the union and operates under employer identification number a013-2928869 .

the health plan receives contributions in accordance with collective bargaining agreements or participa- tion agreements .
generally , these agreements provide that the employers contribute to the health plan at a fixed rate on behalf of each covered employee .
for the health plan years ended , june a030 , 2017 , 2016 , and 2015 , the plan received contributions from employers totaling $ 1.3 a0billion , $ 1.2 a0billion and $ 1.1 a0billion , respectively .

our contributions to the health plan represent less than 5.0% ( 5.0 % ) of total contributions to the plan .
contributions we made to the multi-employer plans for the years ended december a031 , 2017 , 2016 and 2015 are included in the table below ( in thousands ) : .

401 ( k ) plan in august a01997 , we implemented a 401 ( k ) a0savings/retirement plan , or the 401 ( k ) a0plan , to cover eligible employees of ours , and any designated affiliate .
the 401 ( k ) a0plan permits eligible employees to defer up to 15% ( 15 % ) of their annual compensation , subject to certain limitations imposed by the code .
the employees 2019 elective deferrals are immediately vested and non-forfeitable upon contribution to the 401 ( k ) a0plan .

during a02003 , we amended our 401 ( k ) a0plan to pro- vide for discretionary matching contributions only .
for 2017 , 2016 and 2015 , a matching contribution equal to 50% ( 50 % ) of the first 6% ( 6 % ) of annual compensation was made .
for the year ended december a031 , 2017 , we made a matching contribution of $ 728782 .
for the years ended december a031 , 2016 and 2015 , we made matching contribu- tions of $ 566000 and $ 550000 , respectively.

 |
| table | benefit plan             | 2017    | 2016    | 2015
------------------------ | ------- | ------- | -------
pension plan             | $ 3856  | $ 3979  | $ 2732
health plan              | 11426   | 11530   | 8736
other plans              | 1463    | 1583    | 5716
total plan contributions | $ 16745 | $ 17092 | $ 17184 |


| _id | dd4bfde14 |
| title |  |
| text | transfer agent and registrar for common stock the transfer agent and registrar for our common stock is : computershare shareowner services llc 480 washington boulevard 29th floor jersey city , new jersey 07310 telephone : ( 877 ) 363-6398 sales of unregistered securities not applicable .
repurchase of equity securities the following table provides information regarding our purchases of our equity securities during the period from october 1 , 2014 to december 31 , 2014 .

total number of shares ( or units ) purchased 1 average price paid per share ( or unit ) 2 total number of shares ( or units ) purchased as part of publicly announced plans or programs 3 maximum number ( or approximate dollar value ) of shares ( or units ) that may yet be purchased under the plans or programs 3 .

1 included shares of our common stock , par value $ 0.10 per share , withheld under the terms of grants under employee stock-based compensation plans to offset tax withholding obligations that occurred upon vesting and release of restricted shares ( the 201cwithheld shares 201d ) .
we repurchased 5413 withheld shares in october 2014 , 4266 withheld shares in november 2014 and 105 withheld shares in december 2014 .

2 the average price per share for each of the months in the fiscal quarter and for the three-month period was calculated by dividing the sum of the applicable period of the aggregate value of the tax withholding obligations and the aggregate amount we paid for shares acquired under our stock repurchase program , described in note 5 to the consolidated financial statements , by the sum of the number of withheld shares and the number of shares acquired in our stock repurchase program .

3 in february 2014 , the board authorized a new share repurchase program to repurchase from time to time up to $ 300.0 million , excluding fees , of our common stock ( the 201c2014 share repurchase program 201d ) .
on february 13 , 2015 , we announced that our board had approved a new share repurchase program to repurchase from time to time up to $ 300.0 million , excluding fees , of our common stock .

the new authorization is in addition to any amounts remaining available for repurchase under the 2014 share repurchase program .
there is no expiration date associated with the share repurchase programs.

 |
| table | | total number ofshares ( or units ) purchased1 | average price paidper share ( or unit ) 2 | total number ofshares ( or units ) purchased as part ofpublicly announcedplans or programs3 | maximum number ( or approximate dollar value ) of shares ( or units ) that mayyet be purchased under theplans or programs3
--------------- | --------------------------------------------- | ----------------------------------------- | ------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------
october 1 - 31  | 5854930                                       | $ 18.93                                   | 5849517                                                                                | $ 159819370
november 1 - 30 | 4266                                          | $ 20.29                                   | 2014                                                                                | $ 159819370
december 1 - 31 | 826744                                        | $ 19.67                                   | 826639                                                                                | $ 143559758
total           | 6685940                                       | $ 19.02                                   | 6676156                                                                                | |


| _id | dd4988c1a |
| title |  |
| text | american tower corporation and subsidiaries notes to consolidated financial statements 2014 ( continued ) at december 31 , 2005 , the company had net federal and state operating loss carryforwards available to reduce future taxable income of approximately $ 2.2 billion and $ 2.4 billion , respectively .
if not utilized , the company 2019s net operating loss carryforwards expire as follows ( in thousands ) : .

sfas no .
109 , 201caccounting for income taxes , 201d requires that companies record a valuation allowance when it is 201cmore likely than not that some portion or all of the deferred tax assets will not be realized . 201d at december 31 , 2005 , the company has provided a valuation allowance of approximately $ 422.4 million , including approximately $ 249.5 million attributable to spectrasite , primarily related to net operating loss and capital loss carryforwards .

approximately $ 237.8 million of the spectrasite valuation allowance was assumed as of the acquisition date .
the balance of the valuation allowance primarily relates to net state deferred tax assets .

the company has not provided a valuation allowance for the remaining deferred tax assets , primarily its federal net operating loss carryforwards , as management believes the company will have sufficient time to realize these federal net operating loss carryforwards during the twenty-year tax carryforward period .
the company intends to recover a portion of its deferred tax asset through its federal income tax refund claims related to the carry back of certain federal net operating losses .

in june 2003 and october 2003 , the company filed federal income tax refund claims with the irs relating to the carry back of $ 380.0 million of net operating losses generated prior to 2003 , of which the company initially anticipated receiving approximately $ 90.0 million .

based on preliminary discussions with tax authorities , the company has revised its estimate of the net realizable value of the federal income tax refund claims and anticipates receiving a refund of approximately $ 65.0 million as a result of these claims by the end of 2006 .
there can be no assurances , however , with respect to the specific amount and timing of any refund .

the recoverability of the company 2019s remaining net deferred tax asset has been assessed utilizing stable state ( no growth ) projections based on its current operations .
the projections show a significant decrease in depreciation and interest expense in the later years of the carryforward period as a result of a significant portion of its assets being fully depreciated during the first fifteen years of the carryforward period and debt repayments reducing interest expense .

accordingly , the recoverability of the net deferred tax asset is not dependent on material improvements to operations , material asset sales or other non-routine transactions .
based on its current outlook of future taxable income during the carryforward period , management believes that the net deferred tax asset will be realized .

the realization of the company 2019s deferred tax assets as of december 31 , 2005 will be dependent upon its ability to generate approximately $ 1.3 billion in taxable income from january 1 , 2006 to december 31 , 2025 .

if the company is unable to generate sufficient taxable income in the future , or carry back losses , as described above , it will be required to reduce its net deferred tax asset through a charge to income tax expense , which would result in a corresponding decrease in stockholders 2019 equity .
from time to time the company is subject to examination by various tax authorities in jurisdictions in which the company has significant business operations .

the company regularly assesses the likelihood of additional assessments in each of the tax jurisdictions resulting from these examinations .
during the year ended

 |
| table | years ended december 31, | federal   | state
------------------------ | --------- | ---------
2006 to 2010             | $ 5248    | $ 469747
2011 to 2015             | 10012     | 272662
2016 to 2020             | 397691    | 777707
2021 to 2025             | 1744552   | 897896
total                    | $ 2157503 | $ 2418012 |


| _id | dd4bb2f36 |
| title |  |
| text | estimated future pension benefit payments for the next ten years under the plan ( in millions ) are as follows : estimated future payments: .

bfi post retirement healthcare plan we acquired obligations under the bfi post retirement healthcare plan as part of our acquisition of allied .
this plan provides continued medical coverage for certain former employees following their retirement , including some employees subject to collective bargaining agreements .

eligibility for this plan is limited to certain of those employees who had ten or more years of service and were age 55 or older as of december 31 , 1998 , and certain employees in california who were hired on or before december 31 , 2005 and who retire on or after age 55 with at least thirty years of service .
liabilities acquired for this plan were $ 1.2 million and $ 1.3 million , respectively , at the acquisition date and at december 31 , 2008 .

multi-employer pension plans we contribute to 25 multi-employer pension plans under collective bargaining agreements covering union- represented employees .
we acquired responsibility for contributions for a portion of these plans as part of our acquisition of allied .
approximately 22% ( 22 % ) of our total current employees are participants in such multi- employer plans .
these plans generally provide retirement benefits to participants based on their service to contributing employers .

we do not administer these multi-employer plans .
in general , these plans are managed by a board of trustees with the unions appointing certain trustees and other contributing employers of the plan appointing certain members .
we generally are not represented on the board of trustees .

we do not have current plan financial information from the plans 2019 administrators , but based on the information available to us , it is possible that some of the multi-employer plans to which we contribute may be underfunded .
the pension protection act , enacted in august 2006 , requires underfunded pension plans to improve their funding ratios within prescribed intervals based on the level of their underfunding .

until the plan trustees develop the funding improvement plans or rehabilitation plans as required by the pension protection act , we are unable to determine the amount of assessments we may be subject to , if any .
accordingly , we cannot determine at this time the impact that the pension protection act may have on our consolidated financial position , results of operations or cash flows .

furthermore , under current law regarding multi-employer benefit plans , a plan 2019s termination , our voluntary withdrawal , or the mass withdrawal of all contributing employers from any under-funded , multi-employer pension plan would require us to make payments to the plan for our proportionate share of the multi- employer plan 2019s unfunded vested liabilities .
it is possible that there may be a mass withdrawal of employers contributing to these plans or plans may terminate in the near future .

we could have adjustments to our estimates for these matters in the near term that could have a material effect on our consolidated financial condition , results of operations or cash flows .
our pension expense for multi-employer plans was $ 21.8 million , $ 18.9 million and $ 17.3 million for the years ended december 31 , 2008 , 2007 and 2006 , respectively .
republic services , inc .

republic services , inc .
and subsidiaries notes to consolidated financial statements %%transmsg*** transmitting job : p14076 pcn : 133000000 ***%%pcmsg|131 |00027|yes|no|02/28/2009 21:12|0|0|page is valid , no graphics -- color : d|

 |
| table | 2009              | $ 14.9
----------------- | ------
2010              | 15.9
2011              | 16.2
2012              | 19.2
2013              | 21.9
2014 through 2018 | 142.2 |


| _id | dd4bf84f0 |
| title |  |
| text | measurement point december 31 the priceline group nasdaq composite index s&p 500 rdg internet composite .

 |
| table | measurement pointdecember 31 | the priceline group inc . | nasdaqcomposite index | s&p 500index | rdg internetcomposite
---------------------------- | ------------------------- | --------------------- | ------------ | ---------------------
2010                         | 100.00                    | 100.00                | 100.00       | 100.00
2011                         | 117.06                    | 100.53                | 102.11       | 102.11
2012                         | 155.27                    | 116.92                | 118.45       | 122.23
2013                         | 290.93                    | 166.19                | 156.82       | 199.42
2014                         | 285.37                    | 188.78                | 178.29       | 195.42
2015                         | 319.10                    | 199.95                | 180.75       | 267.25 |


| _id | dd4c58f4e |
| title |  |
| text | the goldman sachs group , inc .
and subsidiaries notes to consolidated financial statements commercial lending .
the firm 2019s commercial lending commitments are extended to investment-grade and non- investment-grade corporate borrowers .
commitments to investment-grade corporate borrowers are principally used for operating liquidity and general corporate purposes .

the firm also extends lending commitments in connection with contingent acquisition financing and other types of corporate lending as well as commercial real estate financing .
commitments that are extended for contingent acquisition financing are often intended to be short-term in nature , as borrowers often seek to replace them with other funding sources .
sumitomo mitsui financial group , inc .

sumitomo mitsui financial group , inc .
( smfg ) provides the firm with credit loss protection on certain approved loan commitments ( primarily investment-grade commercial lending commitments ) .
the notional amount of such loan commitments was $ 27.03 billion and $ 27.51 billion as of december 2015 and december 2014 , respectively .

the credit loss protection on loan commitments provided by smfg is generally limited to 95% ( 95 % ) of the first loss the firm realizes on such commitments , up to a maximum of approximately $ 950 million .

in addition , subject to the satisfaction of certain conditions , upon the firm 2019s request , smfg will provide protection for 70% ( 70 % ) of additional losses on such commitments , up to a maximum of $ 1.13 billion , of which $ 768 million of protection had been provided as of both december 2015 and december 2014 .
the firm also uses other financial instruments to mitigate credit risks related to certain commitments not covered by smfg .

these instruments primarily include credit default swaps that reference the same or similar underlying instrument or entity , or credit default swaps that reference a market index .
warehouse financing .
the firm provides financing to clients who warehouse financial assets .
these arrangements are secured by the warehoused assets , primarily consisting of consumer and corporate loans .

contingent and forward starting resale and securities borrowing agreements/forward starting repurchase and secured lending agreements the firm enters into resale and securities borrowing agreements and repurchase and secured lending agreements that settle at a future date , generally within three business days .
the firm also enters into commitments to provide contingent financing to its clients and counterparties through resale agreements .

the firm 2019s funding of these commitments depends on the satisfaction of all contractual conditions to the resale agreement and these commitments can expire unused .
letters of credit the firm has commitments under letters of credit issued by various banks which the firm provides to counterparties in lieu of securities or cash to satisfy various collateral and margin deposit requirements .

investment commitments the firm 2019s investment commitments of $ 6.05 billion and $ 5.16 billion as of december 2015 and december 2014 , respectively , include commitments to invest in private equity , real estate and other assets directly and through funds that the firm raises and manages .
of these amounts , $ 2.86 billion and $ 2.87 billion as of december 2015 and december 2014 , respectively , relate to commitments to invest in funds managed by the firm .

if these commitments are called , they would be funded at market value on the date of investment .
leases the firm has contractual obligations under long-term noncancelable lease agreements for office space expiring on various dates through 2069 .
certain agreements are subject to periodic escalation provisions for increases in real estate taxes and other charges .
the table below presents future minimum rental payments , net of minimum sublease rentals .
$ in millions december 2015 .

rent charged to operating expense was $ 249 million for 2015 , $ 309 million for 2014 and $ 324 million for 2013 .
operating leases include office space held in excess of current requirements .

rent expense relating to space held for growth is included in 201coccupancy . 201d the firm records a liability , based on the fair value of the remaining lease rentals reduced by any potential or existing sublease rentals , for leases where the firm has ceased using the space and management has concluded that the firm will not derive any future economic benefits .
costs to terminate a lease before the end of its term are recognized and measured at fair value on termination .

176 goldman sachs 2015 form 10-k

 |
| table | $ in millions     | as of december 2015
----------------- | -------------------
2016              | $ 317
2017              | 313
2018              | 301
2019              | 258
2020              | 226
2021 - thereafter | 1160
total             | $ 2575 |


| _id | dd4c47190 |
| title |  |
| text | notes to consolidated financial statements note 9 .
collateralized agreements and financings collateralized agreements are securities purchased under agreements to resell ( resale agreements or reverse repurchase agreements ) and securities borrowed .
collateralized financings are securities sold under agreements to repurchase ( repurchase agreements ) , securities loaned and other secured financings .

the firm enters into these transactions in order to , among other things , facilitate client activities , invest excess cash , acquire securities to cover short positions and finance certain firm activities .
collateralized agreements and financings are presented on a net-by-counterparty basis when a legal right of setoff exists .

interest on collateralized agreements and collateralized financings is recognized over the life of the transaction and included in 201cinterest income 201d and 201cinterest expense , 201d respectively .
see note 23 for further information about interest income and interest expense .
the table below presents the carrying value of resale and repurchase agreements and securities borrowed and loaned transactions. .

in millions 2012 2011 securities purchased under agreements to resell 1 $ 141334 $ 187789 securities borrowed 2 136893 153341 securities sold under agreements to repurchase 1 171807 164502 securities loaned 2 13765 7182 1 .
substantially all resale and repurchase agreements are carried at fair value under the fair value option .
see note 8 for further information about the valuation techniques and significant inputs used to determine fair value .
2 .

2 .
as of december 2012 and december 2011 , $ 38.40 billion and $ 47.62 billion of securities borrowed , and $ 1.56 billion and $ 107 million of securities loaned were at fair value , respectively .

resale and repurchase agreements a resale agreement is a transaction in which the firm purchases financial instruments from a seller , typically in exchange for cash , and simultaneously enters into an agreement to resell the same or substantially the same financial instruments to the seller at a stated price plus accrued interest at a future date .

a repurchase agreement is a transaction in which the firm sells financial instruments to a buyer , typically in exchange for cash , and simultaneously enters into an agreement to repurchase the same or substantially the same financial instruments from the buyer at a stated price plus accrued interest at a future date .
the financial instruments purchased or sold in resale and repurchase agreements typically include u.s .
government and federal agency , and investment-grade sovereign obligations .

the firm receives financial instruments purchased under resale agreements , makes delivery of financial instruments sold under repurchase agreements , monitors the market value of these financial instruments on a daily basis , and delivers or obtains additional collateral due to changes in the market value of the financial instruments , as appropriate .

for resale agreements , the firm typically requires delivery of collateral with a fair value approximately equal to the carrying value of the relevant assets in the consolidated statements of financial condition .
even though repurchase and resale agreements involve the legal transfer of ownership of financial instruments , they are accounted for as financing arrangements because they require the financial instruments to be repurchased or resold at the maturity of the agreement .

however , 201crepos to maturity 201d are accounted for as sales .
a repo to maturity is a transaction in which the firm transfers a security under an agreement to repurchase the security where the maturity date of the repurchase agreement matches the maturity date of the underlying security .
therefore , the firm effectively no longer has a repurchase obligation and has relinquished control over the underlying security and , accordingly , accounts for the transaction as a sale .

the firm had no repos to maturity outstanding as of december 2012 or december 2011 .
152 goldman sachs 2012 annual report

 |
| table | in millions                                     | as of december 2012 | as of december 2011
----------------------------------------------- | ------------------- | -------------------
securities purchased under agreements toresell1 | $ 141334            | $ 187789
securities borrowed2                            | 136893              | 153341
securities sold under agreements torepurchase1  | 171807              | 164502
securitiesloaned2                               | 13765               | 7182 |


| _id | dd4b9710a |
| title |  |
| text | global brand concepts american living american living is the first brand developed under the newglobal brand concepts group .
american living is a full lifestyle brand , featuring menswear , womenswear , childrenswear , accessories and home furnishings with a focus on timeless , authentic american classics for every day .
american living is available exclusively at jcpenney in the u.s .
and online at jcp.com .

and online at jcp.com .
our wholesale segment our wholesale segment sells our products to leading upscale and certain mid-tier department stores , specialty stores and golf and pro shops , both domestically and internationally .
we have focused on elevating our brand and improving productivity by reducing the number of unproductive doors within department stores in which our products are sold , improving in-store product assortment and presentation , and improving full-price sell-throughs to consumers .

as of march 29 , 2008 , the end of fiscal 2008 , our products were sold through 10806 doors worldwide , and during fiscal 2008 , we invested approximately $ 49 million in shop-within-shops dedicated to our products primarily in domestic and international department stores .
we have also effected selective price increases on basic products and introduced new fashion offerings at higher price points .
department stores are our major wholesale customers in north america .

in europe , our wholesale sales are a varying mix of sales to both department stores and specialty shops , depending on the country .
our collection brands 2014 women 2019s ralph lauren collection and black label and men 2019s purple label collection and black label 2014 are distributed through a limited number of premier fashion retailers .
in addition , we sell excess and out- of-season products through secondary distribution channels , including our retail factory stores .

in japan , our products are distributed primarily through shop-within-shops at premiere department stores .
the mix of business is weighted to polo ralph lauren inmen 2019s andwomen 2019s blue label .
the distribution of men 2019s and women 2019s black label is also expanding through shop-within-shop presentations in top tier department stores across japan .

worldwide distribution channels the following table presents the approximate number of doors by geographic location , in which products distributed by our wholesale segment were sold to consumers as of march 29 , 2008 : location number of doors ( a ) .

( a ) in asia/pacific ( excluding japan ) , our products are distributed by our licensing partners .
the following department store chains werewholesale customers whose purchases represented more than 10% ( 10 % ) of our worldwide wholesale net sales for the year ended march 29 , 2008 : 2022 macy 2019s , inc .
( formerly known as federated department stores , inc. ) , which represented approximately 24% ( 24 % ) ; and 2022 dillard department stores , inc. , which represented approximately 12% ( 12 % ) .

our product brands are sold primarily through their own sales forces .
our wholesale segment maintains their primary showrooms in new york city .
in addition , we maintain regional showrooms in atlanta , chicago , dallas , los angeles , milan , paris , london , munich , madrid and stockholm.

 |
| table | location                 | number of doors ( a )
------------------------ | ---------------------
united states and canada | 8611
europe                   | 2075
japan                    | 120
total                    | 10806 |


| _id | dd4985fd8 |
| title |  |
| text | 2022 a financial safeguard package for cleared over-the-counter credit default swap contracts , and 2022 a financial safeguard package for cleared over-the-counter interest rate swap contracts .
in the unlikely event of a payment default by a clearing firm , we would first apply assets of the defaulting clearing firm to satisfy its payment obligation .

these assets include the defaulting firm 2019s guaranty fund contributions , performance bonds and any other available assets , such as assets required for membership and any associated trading rights .
in addition , we would make a demand for payment pursuant to any applicable guarantee provided to us by the parent company of the clearing firm .
thereafter , if the payment default remains unsatisfied , we would use the corporate contributions designated for the respective financial safeguard package .

we would then use guaranty fund contributions of other clearing firms within the respective financial safeguard package and funds collected through an assessment against solvent clearing firms within the respective financial safeguard package to satisfy the deficit .
we maintain a $ 5.0 billion 364-day multi-currency line of credit with a consortium of domestic and international banks to be used in certain situations by cme clearing .

we have the option to request an increase in the line from $ 5.0 billion to $ 7.0 billion .
we may use the proceeds to provide temporary liquidity in the unlikely event of a clearing firm default , in the event of a liquidity constraint or default by a depositary ( custodian of the collateral ) , or in the event of a temporary disruption with the payments systems that would delay payment of settlement variation between us and our clearing firms .

the credit agreement requires us to pledge certain assets to the line of credit custodian prior to drawing on the line of credit .
pledged assets may include clearing firm guaranty fund deposits held by us in the form of u.s .
treasury or agency securities , as well as select money market mutual funds approved for our select interest earning facility ( ief ) programs .
performance bond collateral of a defaulting clearing firm may also be used to secure a draw on the line .

in addition to the 364-day multi- currency line of credit , we also have the option to use our $ 1.8 billion multi-currency revolving senior credit facility to provide liquidity for our clearing house in the unlikely event of default .
aggregate performance bond deposits for clearing firms for all three cme financial safeguard packages was $ 86.8 billion , including $ 5.6 billion of cash performance bond deposits and $ 4.2 billion of letters of credit .

a defaulting firm 2019s performance bond deposits can be used in the event of default of that clearing firm .
the following shows the available assets at december 31 , 2012 in the event of a payment default by a clearing firm for the base financial safeguard package after first utilizing the defaulting firm 2019s available assets : ( in millions ) cme clearing available assets designated corporate contributions for futures and options ( 1 ) .
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$ 100.0 guaranty fund contributions ( 2 ) .
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$ 100.0 guaranty fund contributions ( 2 ) .
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2899.5 assessment powers ( 3 ) .
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7973.6 minimum total assets available for default ( 4 ) .
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$ 10973.1 ( 1 ) cme clearing designates $ 100.0 million of corporate contributions to satisfy a clearing firm default in the event that the defaulting clearing firm 2019s guaranty contributions and performance bonds do not satisfy the deficit .

( 2 ) guaranty fund contributions of clearing firms include guaranty fund contributions required of clearing firms , but do not include any excess deposits held by us at the direction of clearing firms .

( 3 ) in the event of a clearing firm default , if a loss continues to exist after the utilization of the assets of the defaulted firm , our designated working capital and the non-defaulting clearing firms 2019 guaranty fund contributions , we have the right to assess all non-defaulting clearing members as defined in the rules governing the guaranty fund .

( 4 ) represents the aggregate minimum resources available to satisfy any obligations not met by a defaulting firm subsequent to the liquidation of the defaulting firm 2019s performance bond collateral. .

2022 a financial safeguard package for cleared over-the-counter credit default swap contracts , and 2022 a financial safeguard package for cleared over-the-counter interest rate swap contracts .
in the unlikely event of a payment default by a clearing firm , we would first apply assets of the defaulting clearing firm to satisfy its payment obligation .

these assets include the defaulting firm 2019s guaranty fund contributions , performance bonds and any other available assets , such as assets required for membership and any associated trading rights .
in addition , we would make a demand for payment pursuant to any applicable guarantee provided to us by the parent company of the clearing firm .
thereafter , if the payment default remains unsatisfied , we would use the corporate contributions designated for the respective financial safeguard package .

we would then use guaranty fund contributions of other clearing firms within the respective financial safeguard package and funds collected through an assessment against solvent clearing firms within the respective financial safeguard package to satisfy the deficit .
we maintain a $ 5.0 billion 364-day multi-currency line of credit with a consortium of domestic and international banks to be used in certain situations by cme clearing .

we have the option to request an increase in the line from $ 5.0 billion to $ 7.0 billion .
we may use the proceeds to provide temporary liquidity in the unlikely event of a clearing firm default , in the event of a liquidity constraint or default by a depositary ( custodian of the collateral ) , or in the event of a temporary disruption with the payments systems that would delay payment of settlement variation between us and our clearing firms .

the credit agreement requires us to pledge certain assets to the line of credit custodian prior to drawing on the line of credit .
pledged assets may include clearing firm guaranty fund deposits held by us in the form of u.s .
treasury or agency securities , as well as select money market mutual funds approved for our select interest earning facility ( ief ) programs .
performance bond collateral of a defaulting clearing firm may also be used to secure a draw on the line .

in addition to the 364-day multi- currency line of credit , we also have the option to use our $ 1.8 billion multi-currency revolving senior credit facility to provide liquidity for our clearing house in the unlikely event of default .
aggregate performance bond deposits for clearing firms for all three cme financial safeguard packages was $ 86.8 billion , including $ 5.6 billion of cash performance bond deposits and $ 4.2 billion of letters of credit .

a defaulting firm 2019s performance bond deposits can be used in the event of default of that clearing firm .
the following shows the available assets at december 31 , 2012 in the event of a payment default by a clearing firm for the base financial safeguard package after first utilizing the defaulting firm 2019s available assets : ( in millions ) cme clearing available assets designated corporate contributions for futures and options ( 1 ) .
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$ 100.0 guaranty fund contributions ( 2 ) .
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$ 100.0 guaranty fund contributions ( 2 ) .
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2899.5 assessment powers ( 3 ) .
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7973.6 minimum total assets available for default ( 4 ) .
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$ 10973.1 ( 1 ) cme clearing designates $ 100.0 million of corporate contributions to satisfy a clearing firm default in the event that the defaulting clearing firm 2019s guaranty contributions and performance bonds do not satisfy the deficit .

( 2 ) guaranty fund contributions of clearing firms include guaranty fund contributions required of clearing firms , but do not include any excess deposits held by us at the direction of clearing firms .

( 3 ) in the event of a clearing firm default , if a loss continues to exist after the utilization of the assets of the defaulted firm , our designated working capital and the non-defaulting clearing firms 2019 guaranty fund contributions , we have the right to assess all non-defaulting clearing members as defined in the rules governing the guaranty fund .

( 4 ) represents the aggregate minimum resources available to satisfy any obligations not met by a defaulting firm subsequent to the liquidation of the defaulting firm 2019s performance bond collateral.

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| table | ( in millions )                                                  | cme clearingavailable assets
---------------------------------------------------------------- | ----------------------------
designated corporate contributions for futures and options ( 1 ) | $ 100.0
guaranty fund contributions ( 2 )                                | 2899.5
assessment powers ( 3 )                                          | 7973.6
minimum total assets available for default ( 4 )                 | $ 10973.1 |


| _id | dd4bd8b64 |
| title |  |
| text | in connection with our assessment of impairment we recorded gross other-than-temporary impairment of $ 1.15 billion for 2009 , compared to $ 122 million for 2008 .
of the total recorded , $ 227 million related to credit and was recognized in our consolidated statement of income .
the remaining $ 928 million related to factors other than credit , more fully discussed below , and was recognized , net of related taxes , in oci in our consolidated statement of condition .

the $ 227 million was composed of $ 151 million associated with expected credit losses , $ 54 million related to management 2019s decision to sell the impaired securities prior to their recovery in value , and $ 22 million related to adverse changes in the timing of expected future cash flows from the securities .

the majority of the impairment losses related to non-agency securities collateralized by mortgages , for which management concluded had experienced credit losses based on the present value of the securities 2019 expected future cash flows .
these securities are classified as asset-backed securities in the foregoing investment securities tables .
as described in note 1 , management periodically reviews the fair values of investment securities to determine if other-than-temporary impairment has occurred .

this review encompasses all investment securities and includes such quantitative factors as current and expected future interest rates and the length of time that a security 2019s cost basis has exceeded its fair value , and includes investment securities for which we have issuer- specific concerns regardless of quantitative factors .
gains and losses related to investment securities were as follows for the years ended december 31: .

( 1 ) these losses were recognized as a component of oci ; see note 12 .
we conduct periodic reviews to evaluate each security that is impaired .
impairment exists when the current fair value of an individual security is below its amortized cost basis .

for debt securities available for sale and held to maturity , other-than-temporary impairment is recorded in our consolidated statement of income when management intends to sell ( or may be required to sell ) securities before they recover in value , or when management expects the present value of cash flows expected to be collected to be less than the amortized cost of the impaired security ( a credit loss ) .

our review of impaired securities generally includes : 2022 the identification and evaluation of securities that have indications of possible other-than-temporary impairment , such as issuer-specific concerns including deteriorating financial condition or bankruptcy ; 2022 the analysis of expected future cash flows of securities , based on quantitative and qualitative factors ; 2022 the analysis of the collectability of those future cash flows , including information about past events , current conditions

about past events , current conditions and reasonable and supportable forecasts ; 2022 the analysis of individual impaired securities , including consideration of the length of time the security has been in an unrealized loss position and the anticipated recovery period ; 2022 the discussion of evidential matter , including an evaluation of factors or triggers that could cause individual securities to be deemed other-than-temporarily impaired and those that would not support other-than-temporary impairment

would not support other-than-temporary impairment ; and 2022 documentation of the results of these analyses .

factors considered in determining whether impairment is other than temporary include : 2022 the length of time the security has been impaired;

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| table | ( in millions )                                          | 2009           | 2008         | 2007
-------------------------------------------------------- | -------------- | ------------ | ------------
gross gains from sales of available-for-sale securities  | $ 418          | $ 100        | $ 24
gross losses from sales of available-for-sale securities | -50 ( 50 )     | -32 ( 32 )   | -17 ( 17 )
gross losses from other-than-temporary impairment        | -1155 ( 1155 ) | -122 ( 122 ) | -34 ( 34 )
losses not related to credit ( 1 )                       | 928            | 2014         | 2014
net impairment losses                                    | -227 ( 227 )   | -122 ( 122 ) | -34 ( 34 )
gains ( losses ) related to investment securities net    | $ 141          | $ -54 ( 54 ) | $ -27 ( 27 ) |


| _id | dd4bbd6ac |
| title |  |
| text | item 7a .
quantitative and qualitative disclosures about market risk ( amounts in millions ) in the normal course of business , we are exposed to market risks related to interest rates , foreign currency rates and certain balance sheet items .
from time to time , we use derivative instruments , pursuant to established guidelines and policies , to manage some portion of these risks .

derivative instruments utilized in our hedging activities are viewed as risk management tools and are not used for trading or speculative purposes .
interest rates our exposure to market risk for changes in interest rates relates primarily to the fair market value and cash flows of our debt obligations .
the majority of our debt ( approximately 89% ( 89 % ) and 93% ( 93 % ) as of december 31 , 2013 and 2012 , respectively ) bears interest at fixed rates .

we do have debt with variable interest rates , but a 10% ( 10 % ) increase or decrease in interest rates would not be material to our interest expense or cash flows .
the fair market value of our debt is sensitive to changes in interest rates , and the impact of a 10% ( 10 % ) change in interest rates is summarized below .
increase/ ( decrease ) in fair market value as of december 31 , 10% ( 10 % ) increase in interest rates 10% ( 10 % ) decrease in interest rates .

we have used interest rate swaps for risk management purposes to manage our exposure to changes in interest rates .
we do not have any interest rate swaps outstanding as of december 31 , 2013 .
we had $ 1642.1 of cash , cash equivalents and marketable securities as of december 31 , 2013 that we generally invest in conservative , short-term bank deposits or securities .
the interest income generated from these investments is subject to both domestic and foreign interest rate movements .

during 2013 and 2012 , we had interest income of $ 24.7 and $ 29.5 , respectively .
based on our 2013 results , a 100-basis-point increase or decrease in interest rates would affect our interest income by approximately $ 16.4 , assuming that all cash , cash equivalents and marketable securities are impacted in the same manner and balances remain constant from year-end 2013 levels .

foreign currency rates we are subject to translation and transaction risks related to changes in foreign currency exchange rates .
since we report revenues and expenses in u.s .
dollars , changes in exchange rates may either positively or negatively affect our consolidated revenues and expenses ( as expressed in u.s .
dollars ) from foreign operations .

dollars ) from foreign operations .
the primary foreign currencies that impacted our results during 2013 were the australian dollar , brazilian real , euro , japanese yen and the south african rand .
based on 2013 exchange rates and operating results , if the u.s .

dollar were to strengthen or weaken by 10% ( 10 % ) , we currently estimate operating income would decrease or increase between 3% ( 3 % ) and 4% ( 4 % ) , assuming that all currencies are impacted in the same manner and our international revenue and expenses remain constant at 2013 levels .
the functional currency of our foreign operations is generally their respective local currency .

assets and liabilities are translated at the exchange rates in effect at the balance sheet date , and revenues and expenses are translated at the average exchange rates during the period presented .
the resulting translation adjustments are recorded as a component of accumulated other comprehensive loss , net of tax , in the stockholders 2019 equity section of our consolidated balance sheets .

our foreign subsidiaries generally collect revenues and pay expenses in their functional currency , mitigating transaction risk .
however , certain subsidiaries may enter into transactions in currencies other than their functional currency .
assets and liabilities denominated in currencies other than the functional currency are susceptible to movements in foreign currency until final settlement .

currency transaction gains or losses primarily arising from transactions in currencies other than the functional currency are included in office and general expenses .
we have not entered into a material amount of foreign currency forward exchange contracts or other derivative financial instruments to hedge the effects of potential adverse fluctuations in foreign currency exchange rates.

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| table | as of december 31, | increase/ ( decrease ) in fair market value 10% ( 10 % ) increasein interest rates | increase/ ( decrease ) in fair market value 10% ( 10 % ) decreasein interest rates
------------------ | ---------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------
2013               | $ -26.9 ( 26.9 )                                                                   | $ 27.9
2012               | -27.5 ( 27.5 )                                                                     | 28.4 |