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<table>
<tr>
<td>
</td>
<td>
Year Ended December 31, 2017
</td>
<td>
2016
</td>
<td>
2015
</td>
</tr>
<tr>
<td>
Beginning balance
</td>
<td>
$96,838
</td>
<td>
$98,966
</td>
<td>
$85,207
</td>
</tr>
<tr>
<td>
Expense (benefit)
</td>
<td>
30,445
</td>
<td>
(2,128)
</td>
<td>
13,759
</td>
</tr>
<tr>
<td>
Ending balance
</td>
<td>
$127,283
</td>
<td>
$96,838
</td>
<td>
$98,966
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Year Ended
</td>
</tr>
<tr>
<td>
</td>
<td>
December 31, 2017
</td>
<td>
December 31, 2016
</td>
<td>
December 31, 2015
</td>
</tr>
<tr>
<td>
Development projects:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Triple-net
</td>
<td>
$283,472
</td>
<td>
$46,094
</td>
<td>
$104,844
</td>
</tr>
<tr>
<td>
Seniors housing operating
</td>
<td>
3,634
</td>
<td>
18,979
</td>
<td>
19,869
</td>
</tr>
<tr>
<td>
Outpatient medical
</td>
<td>
63,036
</td>
<td>
108,001
</td>
<td>
16,592
</td>
</tr>
<tr>
<td>
Total development projects
</td>
<td>
350,142
</td>
<td>
173,074
</td>
<td>
141,305
</td>
</tr>
<tr>
<td>
Expansion projects
</td>
<td>
10,336
</td>
<td>
11,363
</td>
<td>
38,808
</td>
</tr>
<tr>
<td>
Total construction in progress conversions
</td>
<td>
$360,478
</td>
<td>
$184,437
</td>
<td>
$180,113
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
December 31, 2017
</td>
<td>
December 31, 2016
</td>
</tr>
<tr>
<td>
Assets:
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
In place lease intangibles
</td>
<td>
$1,352,139
</td>
<td>
$1,252,143
</td>
</tr>
<tr>
<td>
Above market tenant leases
</td>
<td>
58,443
</td>
<td>
61,700
</td>
</tr>
<tr>
<td>
Below market ground leases
</td>
<td>
58,784
</td>
<td>
61,628
</td>
</tr>
<tr>
<td>
Lease commissions
</td>
<td>
33,105
</td>
<td>
27,413
</td>
</tr>
<tr>
<td>
Gross historical cost
</td>
<td>
1,502,471
</td>
<td>
1,402,884
</td>
</tr>
<tr>
<td>
Accumulated amortization
</td>
<td>
(1,125,437)
</td>
<td>
(966,714)
</td>
</tr>
<tr>
<td>
Net book value
</td>
<td>
$377,034
</td>
<td>
$436,170
</td>
</tr>
<tr>
<td>
Weighted-average amortization period in years
</td>
<td>
15.1
</td>
<td>
13.7
</td>
</tr>
<tr>
<td>
Liabilities:
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Below market tenant leases
</td>
<td>
$60,430
</td>
<td>
$89,468
</td>
</tr>
<tr>
<td>
Above market ground leases
</td>
<td>
8,540
</td>
<td>
8,107
</td>
</tr>
<tr>
<td>
Gross historical cost
</td>
<td>
68,970
</td>
<td>
97,575
</td>
</tr>
<tr>
<td>
Accumulated amortization
</td>
<td>
(39,629)
</td>
<td>
(52,134)
</td>
</tr>
<tr>
<td>
Net book value
</td>
<td>
$29,341
</td>
<td>
$45,441
</td>
</tr>
<tr>
<td>
Weighted-average amortization period in years
</td>
<td>
20.1
</td>
<td>
15.2
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Type of Property
</td>
<td>
NOI
<sup>
(1)
</sup>
</td>
<td>
Percentage of NOI
</td>
<td>
Number of Properties
</td>
</tr>
<tr>
<td>
Triple-net
</td>
<td>
$967,084
</td>
<td>
43.3%
</td>
<td>
573
</td>
</tr>
<tr>
<td>
Seniors housing operating
</td>
<td>
880,026
</td>
<td>
39.5%
</td>
<td>
443
</td>
</tr>
<tr>
<td>
Outpatient medical
</td>
<td>
384,068
</td>
<td>
17.2%
</td>
<td>
270
</td>
</tr>
<tr>
<td>
Totals
</td>
<td>
$2,231,178
</td>
<td>
100.0%
</td>
<td>
1,286
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Outpatient Medical
</td>
</tr>
<tr>
<td>
Property Location
</td>
<td>
Number of Properties
</td>
<td>
Total Investment
</td>
<td>
Annualized Revenues
</td>
</tr>
<tr>
<td>
Alaska
</td>
<td>
2
</td>
<td>
$23,414
</td>
<td>
$2,423
</td>
</tr>
<tr>
<td>
Alabama
</td>
<td>
3
</td>
<td>
30,119
</td>
<td>
5,515
</td>
</tr>
<tr>
<td>
Arkansas
</td>
<td>
1
</td>
<td>
22,730
</td>
<td>
2,067
</td>
</tr>
<tr>
<td>
Arizona
</td>
<td>
4
</td>
<td>
62,649
</td>
<td>
9,453
</td>
</tr>
<tr>
<td>
California
</td>
<td>
32
</td>
<td>
866,727
</td>
<td>
91,492
</td>
</tr>
<tr>
<td>
Colorado
</td>
<td>
2
</td>
<td>
32,967
</td>
<td>
5,025
</td>
</tr>
<tr>
<td>
Connecticut
</td>
<td>
1
</td>
<td>
41,686
</td>
<td>
3,939
</td>
</tr>
<tr>
<td>
Florida
</td>
<td>
36
</td>
<td>
436,149
</td>
<td>
50,703
</td>
</tr>
<tr>
<td>
Georgia
</td>
<td>
10
</td>
<td>
169,521
</td>
<td>
28,178
</td>
</tr>
<tr>
<td>
Iowa
</td>
<td>
1
</td>
<td>
6,615
</td>
<td>
1,303
</td>
</tr>
<tr>
<td>
Illinois
</td>
<td>
5
</td>
<td>
49,505
</td>
<td>
8,749
</td>
</tr>
<tr>
<td>
Indiana
</td>
<td>
9
</td>
<td>
162,463
</td>
<td>
20,157
</td>
</tr>
<tr>
<td>
Kansas
</td>
<td>
7
</td>
<td>
72,142
</td>
<td>
12,695
</td>
</tr>
<tr>
<td>
Kentucky
</td>
<td>
1
</td>
<td>
7,297
</td>
<td>
679
</td>
</tr>
<tr>
<td>
Maryland
</td>
<td>
5
</td>
<td>
93,869
</td>
<td>
11,817
</td>
</tr>
<tr>
<td>
Maine
</td>
<td>
1
</td>
<td>
19,290
</td>
<td>
2,824
</td>
</tr>
<tr>
<td>
Michigan
</td>
<td>
2
</td>
<td>
30,159
</td>
<td>
4,141
</td>
</tr>
<tr>
<td>
Minnesota
</td>
<td>
8
</td>
<td>
165,704
</td>
<td>
26,127
</td>
</tr>
<tr>
<td>
Missouri
</td>
<td>
8
</td>
<td>
144,391
</td>
<td>
17,451
</td>
</tr>
<tr>
<td>
North Carolina
</td>
<td>
3
</td>
<td>
53,499
</td>
<td>
7,086
</td>
</tr>
<tr>
<td>
Nebraska
</td>
<td>
2
</td>
<td>
33,727
</td>
<td>
5,379
</td>
</tr>
<tr>
<td>
New Hampshire
</td>
<td>
1
</td>
<td>
13,344
</td>
<td>
1,758
</td>
</tr>
<tr>
<td>
New Jersey
</td>
<td>
8
</td>
<td>
266,546
</td>
<td>
44,194
</td>
</tr>
<tr>
<td>
New Mexico
</td>
<td>
3
</td>
<td>
31,760
</td>
<td>
3,731
</td>
</tr>
<tr>
<td>
Nevada
</td>
<td>
5
</td>
<td>
43,466
</td>
<td>
4,200
</td>
</tr>
<tr>
<td>
New York
</td>
<td>
8
</td>
<td>
109,193
</td>
<td>
7,214
</td>
</tr>
<tr>
<td>
Ohio
</td>
<td>
5
</td>
<td>
51,894
</td>
<td>
9,845
</td>
</tr>
<tr>
<td>
Oklahoma
</td>
<td>
2
</td>
<td>
23,633
</td>
<td>
3,318
</td>
</tr>
<tr>
<td>
Oregon
</td>
<td>
1
</td>
<td>
9,279
</td>
<td>
1,453
</td>
</tr>
<tr>
<td>
South Carolina
</td>
<td>
1
</td>
<td>
24,844
</td>
<td>
2,615
</td>
</tr>
<tr>
<td>
Tennessee
</td>
<td>
6
</td>
<td>
64,569
</td>
<td>
7,831
</td>
</tr>
<tr>
<td>
Texas
</td>
<td>
55
</td>
<td>
892,224
</td>
<td>
89,447
</td>
</tr>
<tr>
<td>
Virginia
</td>
<td>
2
</td>
<td>
31,824
</td>
<td>
4,846
</td>
</tr>
<tr>
<td>
Washington
</td>
<td>
6
</td>
<td>
170,665
</td>
<td>
20,456
</td>
</tr>
<tr>
<td>
Wisconsin
</td>
<td>
20
</td>
<td>
244,483
</td>
<td>
32,779
</td>
</tr>
<tr>
<td>
Total domestic
</td>
<td>
266
</td>
<td>
4,502,347
</td>
<td>
550,890
</td>
</tr>
<tr>
<td>
United Kingdom
</td>
<td>
4
</td>
<td>
286,434
</td>
<td>
25,880
</td>
</tr>
<tr>
<td>
Grand total
</td>
<td>
270
</td>
<td>
$4,788,781
</td>
<td>
$576,770
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
Properties
</td>
<td>
Investment Amount (1)
</td>
<td>
Capitalization Rates
<sup>
(2)
</sup>
</td>
<td>
Book Amount (3)
</td>
</tr>
<tr>
<td>
Triple-net
</td>
<td>
9
</td>
<td>
$170,076
</td>
<td>
6.4%
</td>
<td>
$281,875
</td>
</tr>
<tr>
<td>
Seniors housing operating
</td>
<td>
8
</td>
<td>
375,400
</td>
<td>
6.6%
</td>
<td>
539,173
</td>
</tr>
<tr>
<td>
Outpatient medical
</td>
<td>
9
</td>
<td>
196,544
</td>
<td>
5.9%
</td>
<td>
224,232
</td>
</tr>
<tr>
<td>
Totals
</td>
<td>
26
</td>
<td>
$742,020
</td>
<td>
6.3%
</td>
<td>
$1,045,280
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
Year Ended
</td>
<td colspan="2">
One Year Change
</td>
<td rowspan="2">
Year Ended December 31, 2017
</td>
<td colspan="2">
One Year Change
</td>
<td colspan="2">
Two Year Change
</td>
</tr>
<tr>
<td>
</td>
<td>
December 31, 2015
</td>
<td>
December 31, 2016
</td>
<td>
$
</td>
<td>
%
</td>
<td>
$
</td>
<td>
%
</td>
<td>
$
</td>
<td>
%
</td>
</tr>
<tr>
<td>
NOI
</td>
<td>
$1,175,806
</td>
<td>
$1,208,860
</td>
<td>
$33,054
</td>
<td>
3%
</td>
<td>
$967,084
</td>
<td>
$(241,776)
</td>
<td>
-20%
</td>
<td>
$(208,722)
</td>
<td>
-18%
</td>
</tr>
<tr>
<td>
Non-cash NOI attributable to same store properties
<sup>
(1)
</sup>
</td>
<td>
(48,890)
</td>
<td>
(38,899)
</td>
<td>
9,991
</td>
<td>
-20%
</td>
<td>
(28,602)
</td>
<td>
10,297
</td>
<td>
-26%
</td>
<td>
20,288
</td>
<td>
-41%
</td>
</tr>
<tr>
<td>
NOI attributable to non same store properties
<sup>
(2)
</sup>
</td>
<td>
(498,131)
</td>
<td>
(574,049)
</td>
<td>
(75,918)
</td>
<td>
15%
</td>
<td>
(333,279)
</td>
<td>
240,770
</td>
<td>
-42%
</td>
<td>
164,852
</td>
<td>
-33%
</td>
</tr>
<tr>
<td>
SSNOI
<sup>
(1)
</sup>
</td>
<td>
$628,785
</td>
<td>
$595,912
</td>
<td>
$(32,873)
</td>
<td>
-5%
</td>
<td>
$605,203
</td>
<td>
$9,291
</td>
<td>
2%
</td>
<td>
$(23,582)
</td>
<td>
-4%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Year Ended December 31,
</td>
</tr>
<tr>
<td>
</td>
<td>
2015
</td>
<td>
2016
</td>
<td>
2017
</td>
</tr>
<tr>
<td>
Net income
</td>
<td>
$888,549
</td>
<td>
$1,082,070
</td>
<td>
$540,613
</td>
</tr>
<tr>
<td>
Net income attributable to common stockholders
</td>
<td>
818,344
</td>
<td>
1,012,397
</td>
<td>
463,595
</td>
</tr>
<tr>
<td>
Funds from operations attributable to common stockholders
</td>
<td>
1,409,640
</td>
<td>
1,582,940
</td>
<td>
1,165,576
</td>
</tr>
<tr>
<td>
Consolidated net operating income
</td>
<td>
2,237,569
</td>
<td>
2,404,177
</td>
<td>
2,232,716
</td>
</tr>
<tr>
<td>
Same store net operating income
</td>
<td>
1,523,666
</td>
<td>
1,499,511
</td>
<td>
1,519,193
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
Sales Price
</td>
<td rowspan="2">
Dividends Paid Per Share
</td>
</tr>
<tr>
<td>
</td>
<td>
High
</td>
<td>
Low
</td>
</tr>
<tr>
<td>
2017
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
First Quarter
</td>
<td>
$71.17
</td>
<td>
$64.63
</td>
<td>
$0.87
</td>
</tr>
<tr>
<td>
Second Quarter
</td>
<td>
78.17
</td>
<td>
68.66
</td>
<td>
0.87
</td>
</tr>
<tr>
<td>
Third Quarter
</td>
<td>
75.91
</td>
<td>
69.77
</td>
<td>
0.87
</td>
</tr>
<tr>
<td>
Fourth Quarter
</td>
<td>
70.87
</td>
<td>
63.06
</td>
<td>
0.87
</td>
</tr>
<tr>
<td>
2016
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
First Quarter
</td>
<td>
$70.45
</td>
<td>
$52.80
</td>
<td>
$0.86
</td>
</tr>
<tr>
<td>
Second Quarter
</td>
<td>
76.24
</td>
<td>
66.55
</td>
<td>
0.86
</td>
</tr>
<tr>
<td>
Third Quarter
</td>
<td>
80.19
</td>
<td>
72.34
</td>
<td>
0.86
</td>
</tr>
<tr>
<td>
Fourth Quarter
</td>
<td>
74.85
</td>
<td>
59.39
</td>
<td>
0.86
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
December 31, 2017
</td>
<td colspan="2">
December 31, 2016
</td>
</tr>
<tr>
<td>
</td>
<td>
Principal balance
</td>
<td>
Fair value change
</td>
<td>
Principal balance
</td>
<td>
Fair value change
</td>
</tr>
<tr>
<td>
Senior unsecured notes
</td>
<td>
$7,710,219
</td>
<td>
$(500,951)
</td>
<td>
$7,568,832
</td>
<td>
$(521,203)
</td>
</tr>
<tr>
<td>
Secured debt
</td>
<td>
1,749,958
</td>
<td>
(63,492)
</td>
<td>
2,489,276
</td>
<td>
(73,944)
</td>
</tr>
<tr>
<td>
Totals
</td>
<td>
$9,460,177
</td>
<td>
$(564,443)
</td>
<td>
$10,058,108
</td>
<td>
$(595,147)
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Nature of Critical Accounting Estimate
</td>
<td>
Assumptions/Approach Used
</td>
</tr>
<tr>
<td>
Principles of ConsolidationThe consolidated financial statements include our accounts, the accounts of our wholly-owned subsidiaries, and the accounts of joint venture entities in which we own a majority voting interest with the ability to control operations and where no substantive participating rights or substantive kick out rights have been granted to the noncontrolling interests. In addition, we consolidate those entities deemed to be variable interest entities (“VIEs”) in which we are determined to be the primary beneficiary. All material intercompany transactions and balances have been eliminated in consolidation.
</td>
<td>
We make judgments about which entities are VIEs based on an assessment of whether (i) the equity investors as a group, if any, do not have a controlling financial interest, or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. Wemake judgments with respect to our level of influence or control of an entity and whether we are (or are not) the primary beneficiary of a VIE. Consideration of various factors includes, but is not limited to, our ability to direct the activities that most significantly impact the entity's economic performance, our form of ownership interest, our representation on the entity's governing body, the size and seniority of our investment, our ability and the rights of other investors to participate in policy making decisions, replace the manager and/or liquidate the entity, if applicable. Our ability to correctly assess our influence or control over an entity at inception of our involvement or on a continuous basis when determining the primary beneficiary of a VIE affects the presentation of these entities in our consolidated financial statements. If we perform a primary beneficiary analysis at a date other than at inception of the VIE, our assumptions may be different and may result in the identification of a different primary beneficiary.
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Year Ended December 31,
</td>
</tr>
<tr>
<td>
FFO Reconciliation:
</td>
<td>
2015
</td>
<td>
2016
</td>
<td>
2017
</td>
</tr>
<tr>
<td>
Net income attributable to common stockholders
</td>
<td>
$818,344
</td>
<td>
$1,012,397
</td>
<td>
$463,595
</td>
</tr>
<tr>
<td>
Depreciation and amortization
</td>
<td>
826,240
</td>
<td>
901,242
</td>
<td>
921,720
</td>
</tr>
<tr>
<td>
Impairment of assets
</td>
<td>
2,220
</td>
<td>
37,207
</td>
<td>
124,483
</td>
</tr>
<tr>
<td>
Loss (gain) on real estate dispositions, net
</td>
<td>
(280,387)
</td>
<td>
(364,046)
</td>
<td>
(344,250)
</td>
</tr>
<tr>
<td>
Noncontrolling interests
</td>
<td>
(39,271)
</td>
<td>
(71,527)
</td>
<td>
(60,018)
</td>
</tr>
<tr>
<td>
Unconsolidated entities
</td>
<td>
82,494
</td>
<td>
67,667
</td>
<td>
60,046
</td>
</tr>
<tr>
<td>
Funds from operations attributable to common stockholders
</td>
<td>
$1,409,640
</td>
<td>
$1,582,940
</td>
<td>
$1,165,576
</td>
</tr>
<tr>
<td>
Average common shares outstanding:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Basic
</td>
<td>
348,240
</td>
<td>
358,275
</td>
<td>
367,237
</td>
</tr>
<tr>
<td>
Diluted
</td>
<td>
349,424
</td>
<td>
360,227
</td>
<td>
369,001
</td>
</tr>
<tr>
<td>
Per share data:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Net income attributable to common stockholders
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Basic
</td>
<td>
$2.35
</td>
<td>
$2.83
</td>
<td>
$1.26
</td>
</tr>
<tr>
<td>
Diluted
</td>
<td>
2.34
</td>
<td>
2.81
</td>
<td>
1.26
</td>
</tr>
<tr>
<td>
Funds from operations attributable to common stockholders
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Basic
</td>
<td>
$4.05
</td>
<td>
$4.42
</td>
<td>
$3.17
</td>
</tr>
<tr>
<td>
Diluted
</td>
<td>
4.03
</td>
<td>
4.39
</td>
<td>
3.16
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
Year Ended
</td>
<td colspan="2">
One Year Change
</td>
<td rowspan="2">
Year Ended December 31, 2017
</td>
<td colspan="2">
One Year Change
</td>
<td colspan="2">
Two Year Change
</td>
</tr>
<tr>
<td>
</td>
<td>
December 31, 2015
</td>
<td>
December 31, 2016
</td>
<td>
$
</td>
<td>
%
</td>
<td>
$
</td>
<td>
%
</td>
<td>
$
</td>
<td>
%
</td>
</tr>
<tr>
<td>
NOI
</td>
<td>
$701,262
</td>
<td>
$814,114
</td>
<td>
$112,852
</td>
<td>
16%
</td>
<td>
$880,026
</td>
<td>
$65,912
</td>
<td>
8%
</td>
<td>
$178,764
</td>
<td>
25%
</td>
</tr>
<tr>
<td>
Non-cash NOI attributable to same store properties
<sup>
(1)
</sup>
</td>
<td>
1,003
</td>
<td>
1,990
</td>
<td>
987
</td>
<td>
98%
</td>
<td>
1,242
</td>
<td>
(748)
</td>
<td>
-38%
</td>
<td>
239
</td>
<td>
24%
</td>
</tr>
<tr>
<td>
NOI attributable to non same store properties
<sup>
(2)
</sup>
</td>
<td>
(83,880)
</td>
<td>
(190,459)
</td>
<td>
(106,579)
</td>
<td>
127%
</td>
<td>
(246,731)
</td>
<td>
(56,272)
</td>
<td>
30%
</td>
<td>
(162,851)
</td>
<td>
194%
</td>
</tr>
<tr>
<td>
SSNOI
<sup>
(1)
</sup>
</td>
<td>
$618,385
</td>
<td>
$625,645
</td>
<td>
$7,260
</td>
<td>
1%
</td>
<td>
$634,537
</td>
<td>
$8,892
</td>
<td>
1%
</td>
<td>
$16,152
</td>
<td>
3%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
December 31, 2017
</td>
<td colspan="2">
December 31, 2016
</td>
</tr>
<tr>
<td>
</td>
<td>
Carrying value
</td>
<td>
Fair value change
</td>
<td>
Carrying value
</td>
<td>
Fair value change
</td>
</tr>
<tr>
<td>
Foreign currency exchange contracts
</td>
<td>
$23,238
</td>
<td>
$12,929
</td>
<td>
$87,962
</td>
<td>
$722
</td>
</tr>
<tr>
<td>
Debt designated as hedges
</td>
<td>
1,620,273
</td>
<td>
16,203
</td>
<td>
1,481,591
</td>
<td>
13,000
</td>
</tr>
<tr>
<td>
Totals
</td>
<td>
$1,643,511
</td>
<td>
$29,132
</td>
<td>
$1,569,553
</td>
<td>
$13,722
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Year Ended December 31,
</td>
</tr>
<tr>
<td>
</td>
<td>
2015
</td>
<td>
2016
</td>
<td>
2017
</td>
</tr>
<tr>
<td>
Net debt to book capitalization ratio
</td>
<td>
44.8%
</td>
<td>
42.9%
</td>
<td>
42.9%
</td>
</tr>
<tr>
<td>
Net debt to undepreciated book capitalization ratio
</td>
<td>
39.5%
</td>
<td>
37.4%
</td>
<td>
36.3%
</td>
</tr>
<tr>
<td>
Net debt to market capitalization ratio
</td>
<td>
32.5%
</td>
<td>
31.1%
</td>
<td>
31.2%
</td>
</tr>
<tr>
<td>
Adjusted interest coverage ratio
</td>
<td>
4.24x
</td>
<td>
4.21x
</td>
<td>
4.36x
</td>
</tr>
<tr>
<td>
Adjusted fixed charge coverage ratio
</td>
<td>
3.35x
</td>
<td>
3.34x
</td>
<td>
3.54x
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
December 31, 2017
</td>
<td>
December 31, 2016
</td>
</tr>
<tr>
<td>
Assets
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Net real property owned
</td>
<td>
$1,002,137
</td>
<td>
$989,596
</td>
</tr>
<tr>
<td>
Cash and cash equivalents
</td>
<td>
12,308
</td>
<td>
10,501
</td>
</tr>
<tr>
<td>
Receivables and other assets
</td>
<td>
16,330
</td>
<td>
12,102
</td>
</tr>
<tr>
<td>
Total assets
<sup>
(1)
</sup>
</td>
<td>
$1,030,775
</td>
<td>
$1,012,199
</td>
</tr>
<tr>
<td>
Liabilities and equity
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Secured debt
</td>
<td>
$471,103
</td>
<td>
$450,255
</td>
</tr>
<tr>
<td>
Accrued expenses and other liabilities
</td>
<td>
14,832
</td>
<td>
13,803
</td>
</tr>
<tr>
<td>
Redeemable noncontrolling interests
</td>
<td>
171,898
</td>
<td>
185,556
</td>
</tr>
<tr>
<td>
Total equity
</td>
<td>
372,942
</td>
<td>
362,585
</td>
</tr>
<tr>
<td>
Total liabilities and equity
</td>
<td>
$1,030,775
</td>
<td>
$1,012,199
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
12/31/12
</td>
<td>
12/31/13
</td>
<td>
12/31/14
</td>
<td>
12/31/15
</td>
<td>
12/31/16
</td>
<td>
12/31/17
</td>
</tr>
<tr>
<td>
S & P 500
</td>
<td>
100.00
</td>
<td>
132.39
</td>
<td>
150.51
</td>
<td>
152.59
</td>
<td>
170.84
</td>
<td>
208.14
</td>
</tr>
<tr>
<td>
Welltower Inc.
</td>
<td>
100.00
</td>
<td>
91.58
</td>
<td>
136.01
</td>
<td>
128.23
</td>
<td>
132.55
</td>
<td>
132.81
</td>
</tr>
<tr>
<td>
FTSE NAREIT Equity
</td>
<td>
100.00
</td>
<td>
102.47
</td>
<td>
133.35
</td>
<td>
137.61
</td>
<td>
149.33
</td>
<td>
157.14
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Year Ended December 31,
</td>
</tr>
<tr>
<td>
SSNOI Reconciliation:
</td>
<td>
2015
</td>
<td>
2016
</td>
<td>
2017
</td>
</tr>
<tr>
<td>
NOI:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Triple-net
</td>
<td>
$1,175,806
</td>
<td>
$1,208,860
</td>
<td>
$967,084
</td>
</tr>
<tr>
<td>
Seniors housing operating
</td>
<td>
701,262
</td>
<td>
814,114
</td>
<td>
880,026
</td>
</tr>
<tr>
<td>
Outpatient medical
</td>
<td>
359,410
</td>
<td>
380,264
</td>
<td>
384,068
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
2,236,478
</td>
<td>
2,403,238
</td>
<td>
2,231,178
</td>
</tr>
<tr>
<td>
Adjustments:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Triple-net:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Non-cash NOI on same store properties
</td>
<td>
(48,890)
</td>
<td>
(38,899)
</td>
<td>
(28,602)
</td>
</tr>
<tr>
<td>
NOI attributable to non same store properties
</td>
<td>
(498,131)
</td>
<td>
(574,049)
</td>
<td>
(333,279)
</td>
</tr>
<tr>
<td>
Subtotal
</td>
<td>
(547,021)
</td>
<td>
(612,948)
</td>
<td>
(361,881)
</td>
</tr>
<tr>
<td>
Seniors housing operating:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Non-cash NOI on same store properties
</td>
<td>
1,003
</td>
<td>
1,990
</td>
<td>
1,242
</td>
</tr>
<tr>
<td>
NOI attributable to non same store properties
</td>
<td>
(83,880)
</td>
<td>
(190,459)
</td>
<td>
(246,731)
</td>
</tr>
<tr>
<td>
Subtotal
</td>
<td>
(82,877)
</td>
<td>
(188,469)
</td>
<td>
(245,489)
</td>
</tr>
<tr>
<td>
Outpatient medical:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Non-cash NOI on same store properties
</td>
<td>
(6,095)
</td>
<td>
(3,073)
</td>
<td>
(1,764)
</td>
</tr>
<tr>
<td>
NOI attributable to non same store properties
</td>
<td>
(76,819)
</td>
<td>
(99,237)
</td>
<td>
(102,851)
</td>
</tr>
<tr>
<td>
Subtotal
</td>
<td>
(82,914)
</td>
<td>
(102,310)
</td>
<td>
(104,615)
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
(712,812)
</td>
<td>
(903,727)
</td>
<td>
(711,985)
</td>
</tr>
<tr>
<td>
SSNOI by segment:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Triple-net
</td>
<td>
628,785
</td>
<td>
595,912
</td>
<td>
605,203
</td>
</tr>
<tr>
<td>
Seniors housing operating
</td>
<td>
618,385
</td>
<td>
625,645
</td>
<td>
634,537
</td>
</tr>
<tr>
<td>
Outpatient medical
</td>
<td>
276,496
</td>
<td>
277,954
</td>
<td>
279,453
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
$1,523,666
</td>
<td>
$1,499,511
</td>
<td>
$1,519,193
</td>
</tr>
<tr>
<td>
SSNOI Property Reconciliation:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Total properties
</td>
<td>
1,286
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Acquisitions
</td>
<td>
(231)
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Developments
</td>
<td>
(33)
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Disposals/Held-for-sale
</td>
<td>
(71)
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Segment transitions
</td>
<td>
(28)
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Other
<sup>
(1)
</sup>
</td>
<td>
(9)
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Same store properties
</td>
<td>
914
</td>
<td>
</td>
<td>
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
Properties
</td>
<td>
Proceeds (1)
</td>
<td>
Capitalization Rates
<sup>
(2)
</sup>
</td>
<td>
Book Amount (3)
</td>
</tr>
<tr>
<td>
Triple-net
</td>
<td>
59
</td>
<td>
$1,190,791
</td>
<td>
6.9%
</td>
<td>
$916,689
</td>
</tr>
<tr>
<td>
Seniors housing operating
</td>
<td>
3
</td>
<td>
105,349
</td>
<td>
4.6%
</td>
<td>
74,832
</td>
</tr>
<tr>
<td>
Outpatient medical
</td>
<td>
3
</td>
<td>
23,590
</td>
<td>
8.3%
</td>
<td>
19,697
</td>
</tr>
<tr>
<td>
Totals
</td>
<td>
65
</td>
<td>
$1,319,730
</td>
<td>
6.7%
</td>
<td>
$1,011,218
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
Year Ended December 31, 2017
</td>
<td>
2016
</td>
<td>
2015
</td>
</tr>
<tr>
<td>
Stock options
</td>
<td>
$10
</td>
<td>
$266
</td>
<td>
$698
</td>
</tr>
<tr>
<td>
Restricted stock
</td>
<td>
19,092
</td>
<td>
28,603
</td>
<td>
30,146
</td>
</tr>
<tr>
<td>
</td>
<td>
$19,102
</td>
<td>
$28,869
</td>
<td>
$30,844
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Year Ended December 31,
</td>
</tr>
<tr>
<td>
</td>
<td>
2015
</td>
<td>
2016
</td>
<td>
2017
</td>
</tr>
<tr>
<td>
Book capitalization:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Borrowings under primary unsecured credit facility
</td>
<td>
$835,000
</td>
<td>
$645,000
</td>
<td>
$719,000
</td>
</tr>
<tr>
<td>
Long-term debt obligations
<sup>
(1)
</sup>
</td>
<td>
12,132,686
</td>
<td>
11,713,245
</td>
<td>
11,012,936
</td>
</tr>
<tr>
<td>
Cash & cash equivalents
<sup>
(2)
</sup>
</td>
<td>
(484,754)
</td>
<td>
(557,659)
</td>
<td>
(249,620)
</td>
</tr>
<tr>
<td>
Total net debt
</td>
<td>
12,482,932
</td>
<td>
11,800,586
</td>
<td>
11,482,316
</td>
</tr>
<tr>
<td>
Total equity
</td>
<td>
15,175,885
</td>
<td>
15,281,472
</td>
<td>
14,925,452
</td>
</tr>
<tr>
<td>
Redeemable noncontrolling interest
</td>
<td>
183,083
</td>
<td>
398,433
</td>
<td>
375,194
</td>
</tr>
<tr>
<td>
Book capitalization
</td>
<td>
$27,841,900
</td>
<td>
$27,480,491
</td>
<td>
$26,782,962
</td>
</tr>
<tr>
<td>
Net debt to book capitalization ratio
</td>
<td>
44.8%
</td>
<td>
42.9%
</td>
<td>
42.9%
</td>
</tr>
<tr>
<td>
Undepreciated book capitalization:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Total net debt
</td>
<td>
$12,482,932
</td>
<td>
$11,800,586
</td>
<td>
$11,482,316
</td>
</tr>
<tr>
<td>
Accumulated depreciation and amortization
</td>
<td>
3,796,297
</td>
<td>
4,093,494
</td>
<td>
4,838,370
</td>
</tr>
<tr>
<td>
Total equity
</td>
<td>
15,175,885
</td>
<td>
15,281,472
</td>
<td>
14,925,452
</td>
</tr>
<tr>
<td>
Redeemable noncontrolling interest
</td>
<td>
183,083
</td>
<td>
398,433
</td>
<td>
375,194
</td>
</tr>
<tr>
<td>
Undepreciated book capitalization
</td>
<td>
$31,638,197
</td>
<td>
$31,573,985
</td>
<td>
$31,621,332
</td>
</tr>
<tr>
<td>
Net debt to undepreciated book capitalization ratio
</td>
<td>
39.5%
</td>
<td>
37.4%
</td>
<td>
36.3%
</td>
</tr>
<tr>
<td>
Market capitalization:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Common shares outstanding
</td>
<td>
354,778
</td>
<td>
362,602
</td>
<td>
371,732
</td>
</tr>
<tr>
<td>
Period end share price
</td>
<td>
$68.03
</td>
<td>
$66.93
</td>
<td>
$63.77
</td>
</tr>
<tr>
<td>
Common equity market capitalization
</td>
<td>
$24,135,547
</td>
<td>
$24,268,952
</td>
<td>
$23,705,350
</td>
</tr>
<tr>
<td>
Total net debt
</td>
<td>
12,482,932
</td>
<td>
11,800,586
</td>
<td>
11,482,316
</td>
</tr>
<tr>
<td>
Noncontrolling interests
<sup>
(3)
</sup>
</td>
<td>
768,408
</td>
<td>
873,512
</td>
<td>
877,499
</td>
</tr>
<tr>
<td>
Preferred stock
</td>
<td>
1,006,250
</td>
<td>
1,006,250
</td>
<td>
718,503
</td>
</tr>
<tr>
<td>
Market capitalization:
</td>
<td>
$38,393,137
</td>
<td>
$37,949,300
</td>
<td>
$36,783,668
</td>
</tr>
<tr>
<td>
Net debt to market capitalization ratio
</td>
<td>
32.5%
</td>
<td>
31.1%
</td>
<td>
31.2%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
2018
</td>
<td>
$1,098,987
</td>
</tr>
<tr>
<td>
2019
</td>
<td>
1,056,731
</td>
</tr>
<tr>
<td>
2020
</td>
<td>
1,034,583
</td>
</tr>
<tr>
<td>
2021
</td>
<td>
980,716
</td>
</tr>
<tr>
<td>
2022
</td>
<td>
944,028
</td>
</tr>
<tr>
<td>
Thereafter
</td>
<td>
7,771,145
</td>
</tr>
<tr>
<td>
Totals
</td>
<td>
$12,886,190
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Year Ended December 31,
</td>
</tr>
<tr>
<td>
</td>
<td>
2017
</td>
<td>
2016
</td>
<td>
2015
</td>
</tr>
<tr>
<td>
Rental income related to above/below market tenant leases, net
</td>
<td>
$875
</td>
<td>
$919
</td>
<td>
$(2,746)
</td>
</tr>
<tr>
<td>
Property operating expenses related to above/below market ground leases, net
</td>
<td>
(1,231)
</td>
<td>
(1,241)
</td>
<td>
(1,272)
</td>
</tr>
<tr>
<td>
Depreciation and amortization related to in place lease intangibles and lease commissions
</td>
<td>
(145,132)
</td>
<td>
(132,141)
</td>
<td>
(115,855)
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
Assets
</td>
<td>
Liabilities
</td>
</tr>
<tr>
<td>
2018
</td>
<td>
$111,339
</td>
<td>
$3,765
</td>
</tr>
<tr>
<td>
2019
</td>
<td>
55,336
</td>
<td>
3,306
</td>
</tr>
<tr>
<td>
2020
</td>
<td>
34,402
</td>
<td>
2,809
</td>
</tr>
<tr>
<td>
2021
</td>
<td>
20,419
</td>
<td>
2,321
</td>
</tr>
<tr>
<td>
2022
</td>
<td>
17,213
</td>
<td>
1,856
</td>
</tr>
<tr>
<td>
Thereafter
</td>
<td>
138,325
</td>
<td>
15,284
</td>
</tr>
<tr>
<td>
Totals
</td>
<td>
$377,034
</td>
<td>
$29,341
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Year Ended December 31,
</td>
</tr>
<tr>
<td>
</td>
<td>
2014
</td>
<td>
2015
</td>
<td>
2016
</td>
</tr>
<tr>
<td>
Net debt to book capitalization ratio
</td>
<td>
43%
</td>
<td>
45%
</td>
<td>
43%
</td>
</tr>
<tr>
<td>
Net debt to undepreciated book capitalization ratio
</td>
<td>
38%
</td>
<td>
40%
</td>
<td>
37%
</td>
</tr>
<tr>
<td>
Net debt to market capitalization ratio
</td>
<td>
28%
</td>
<td>
33%
</td>
<td>
31%
</td>
</tr>
<tr>
<td>
Adjusted interest coverage ratio
</td>
<td>
3.73x
</td>
<td>
4.20x
</td>
<td>
4.19x
</td>
</tr>
<tr>
<td>
Adjusted fixed charge coverage ratio
</td>
<td>
2.96x
</td>
<td>
3.32x
</td>
<td>
3.32x
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
Properties
</td>
<td>
Proceeds (1)
</td>
<td>
Capitalization Rates
<sup>
(2)
</sup>
</td>
<td>
Book Amount (3)
</td>
</tr>
<tr>
<td>
Triple-net
</td>
<td>
151
</td>
<td>
$2,288,211
</td>
<td>
8.8%
</td>
<td>
$1,773,614
</td>
</tr>
<tr>
<td>
Outpatient medical
</td>
<td>
7
</td>
<td>
80,300
</td>
<td>
7.9%
</td>
<td>
78,786
</td>
</tr>
<tr>
<td>
Totals
</td>
<td>
158
</td>
<td>
$2,368,511
</td>
<td>
8.8%
</td>
<td>
$1,852,400
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
Sales Price
</td>
<td rowspan="2">
Dividends Paid Per Share
</td>
</tr>
<tr>
<td>
</td>
<td>
High
</td>
<td>
Low
</td>
</tr>
<tr>
<td>
2016
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
First Quarter
</td>
<td>
$70.45
</td>
<td>
$52.80
</td>
<td>
$0.86
</td>
</tr>
<tr>
<td>
Second Quarter
</td>
<td>
76.24
</td>
<td>
66.55
</td>
<td>
0.86
</td>
</tr>
<tr>
<td>
Third Quarter
</td>
<td>
80.19
</td>
<td>
72.34
</td>
<td>
0.86
</td>
</tr>
<tr>
<td>
Fourth Quarter
</td>
<td>
74.85
</td>
<td>
59.39
</td>
<td>
0.86
</td>
</tr>
<tr>
<td>
2015
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
First Quarter
</td>
<td>
$84.88
</td>
<td>
$73.20
</td>
<td>
$0.825
</td>
</tr>
<tr>
<td>
Second Quarter
</td>
<td>
79.60
</td>
<td>
65.48
</td>
<td>
0.825
</td>
</tr>
<tr>
<td>
Third Quarter
</td>
<td>
70.22
</td>
<td>
61.00
</td>
<td>
0.825
</td>
</tr>
<tr>
<td>
Fourth Quarter
</td>
<td>
71.25
</td>
<td>
58.21
</td>
<td>
0.825
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Type of Property
</td>
<td>
Net Operating Income (NOI)
<sup>
(1)
</sup>
</td>
<td>
Percentage of NOI
</td>
<td>
Number of Properties
</td>
</tr>
<tr>
<td>
Triple-net
</td>
<td>
$1,208,860
</td>
<td>
50.3%
</td>
<td>
631
</td>
</tr>
<tr>
<td>
Seniors housing operating
</td>
<td>
814,114
</td>
<td>
33.9%
</td>
<td>
420
</td>
</tr>
<tr>
<td>
Outpatient medical
</td>
<td>
380,264
</td>
<td>
15.8%
</td>
<td>
262
</td>
</tr>
<tr>
<td>
Totals
</td>
<td>
$2,403,238
</td>
<td>
100.0%
</td>
<td>
1,313
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
Year Ended
</td>
<td colspan="2">
One Year Change
</td>
<td rowspan="2">
Year Ended December 31, 2016
</td>
<td colspan="2">
One Year Change
</td>
<td colspan="2">
Two Year Change
</td>
</tr>
<tr>
<td>
</td>
<td>
December 31, 2014
</td>
<td>
December 31, 2015
</td>
<td>
$
</td>
<td>
%
</td>
<td>
$
</td>
<td>
%
</td>
<td>
$
</td>
<td>
%
</td>
</tr>
<tr>
<td>
Beginning cash and cash equivalents
</td>
<td>
$158,780
</td>
<td>
$473,726
</td>
<td>
$314,946
</td>
<td>
198%
</td>
<td>
$360,908
</td>
<td>
$(112,818)
</td>
<td>
-24%
</td>
<td>
$202,128
</td>
<td>
127%
</td>
</tr>
<tr>
<td>
Cash provided from (used in):
</td>
<td>
</td>
<td>
</td>
<td>
</td>
<td>
</td>
<td>
</td>
<td>
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Operating activities
</td>
<td>
1,138,670
</td>
<td>
1,373,468
</td>
<td>
234,798
</td>
<td>
21%
</td>
<td>
1,628,695
</td>
<td>
255,227
</td>
<td>
19%
</td>
<td>
490,025
</td>
<td>
43%
</td>
</tr>
<tr>
<td>
Investing activities
</td>
<td>
(2,126,206)
</td>
<td>
(3,484,160)
</td>
<td>
(1,357,954)
</td>
<td>
64%
</td>
<td>
(309,503)
</td>
<td>
3,174,657
</td>
<td>
-91%
</td>
<td>
1,816,703
</td>
<td>
-85%
</td>
</tr>
<tr>
<td>
Financing activities
</td>
<td>
1,303,172
</td>
<td>
2,006,449
</td>
<td>
703,277
</td>
<td>
54%
</td>
<td>
(1,240,448)
</td>
<td>
(3,246,897)
</td>
<td>
n/a
</td>
<td>
(2,543,620)
</td>
<td>
n/a
</td>
</tr>
<tr>
<td>
Effect of foreign currency translation on cash and cash equivalents
</td>
<td>
(690)
</td>
<td>
(8,575)
</td>
<td>
(7,885)
</td>
<td>
1,143%
</td>
<td>
(20,274)
</td>
<td>
(11,699)
</td>
<td>
136%
</td>
<td>
(19,584)
</td>
<td>
2,838%
</td>
</tr>
<tr>
<td>
Ending cash and cash equivalents
</td>
<td>
$473,726
</td>
<td>
$360,908
</td>
<td>
$(112,818)
</td>
<td>
-24%
</td>
<td>
$419,378
</td>
<td>
$58,470
</td>
<td>
16%
</td>
<td>
$(54,348)
</td>
<td>
-11%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
Occupancy
<sup>
(1)
</sup>
</td>
<td colspan="2">
Coverages
<sup>
(1,2)
</sup>
</td>
<td colspan="2">
Average Annualized Revenues
<sup>
(3)
</sup>
</td>
<td>
</td>
</tr>
<tr>
<td>
</td>
<td>
2016
</td>
<td>
2015
</td>
<td>
2016
</td>
<td>
2015
</td>
<td>
2016
</td>
<td>
2015
</td>
<td>
</td>
</tr>
<tr>
<td>
Triple-net
<sup>
(4)
</sup>
</td>
<td>
86.5%
</td>
<td>
87.2%
</td>
<td>
1.43x
</td>
<td>
1.49x
</td>
<td>
$16,841
</td>
<td>
$15,966
</td>
<td>
per bed/unit
</td>
</tr>
<tr>
<td>
Seniors housing operating
<sup>
(5)
</sup>
</td>
<td>
88.7%
</td>
<td>
91.2%
</td>
<td>
n/a
</td>
<td>
n/a
</td>
<td>
59,627
</td>
<td>
60,260
</td>
<td>
per unit
</td>
</tr>
<tr>
<td>
Outpatient medical
<sup>
(6)
</sup>
</td>
<td>
94.7%
</td>
<td>
95.1%
</td>
<td>
n/a
</td>
<td>
n/a
</td>
<td>
33
</td>
<td>
32
</td>
<td>
per sq. ft.
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
Year Ended
</td>
<td colspan="2">
One Year Change
</td>
<td rowspan="2">
Year Ended December 31, 2016
</td>
<td colspan="2">
One Year Change
</td>
<td colspan="2">
Two Year Change
</td>
</tr>
<tr>
<td>
</td>
<td>
December 31, 2014
</td>
<td>
December 31, 2015
</td>
<td>
$
</td>
<td>
%
</td>
<td>
$
</td>
<td>
%
</td>
<td>
$
</td>
<td>
%
</td>
</tr>
<tr>
<td>
SSNOI
<sup>
(1)
</sup>
</td>
<td>
$625,732
</td>
<td>
$614,044
</td>
<td>
$(11,688)
</td>
<td>
-2%
</td>
<td>
$619,850
</td>
<td>
$5,806
</td>
<td>
1%
</td>
<td>
$(5,882)
</td>
<td>
-1%
</td>
</tr>
<tr>
<td>
Non-cash NOI attributable to same store properties
</td>
<td>
(1,044)
</td>
<td>
(1,003)
</td>
<td>
41
</td>
<td>
-4%
</td>
<td>
(2,404)
</td>
<td>
(1,401)
</td>
<td>
140%
</td>
<td>
(1,360)
</td>
<td>
130%
</td>
</tr>
<tr>
<td>
NOI attributable to non same store properties
<sup>
(2)
</sup>
</td>
<td>
6,575
</td>
<td>
88,221
</td>
<td>
81,646
</td>
<td>
1,242%
</td>
<td>
196,668
</td>
<td>
108,447
</td>
<td>
123%
</td>
<td>
190,093
</td>
<td>
2,891%
</td>
</tr>
<tr>
<td>
NOI
</td>
<td>
$631,263
</td>
<td>
$701,262
</td>
<td>
$69,999
</td>
<td>
11%
</td>
<td>
$814,114
</td>
<td>
$112,852
</td>
<td>
16%
</td>
<td>
$182,851
</td>
<td>
29%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
December 31, 2016
</td>
<td colspan="2">
December 31, 2015
</td>
</tr>
<tr>
<td>
</td>
<td>
Carrying value
</td>
<td>
Fair value change
</td>
<td>
Carrying value
</td>
<td>
Fair value change
</td>
</tr>
<tr>
<td>
Foreign currency exchange contracts
</td>
<td>
$87,962
</td>
<td>
$722
</td>
<td>
$117,452
</td>
<td>
$1,915
</td>
</tr>
<tr>
<td>
Debt designated as hedges
</td>
<td>
1,481,591
</td>
<td>
13,000
</td>
<td>
1,728,979
</td>
<td>
13,000
</td>
</tr>
<tr>
<td>
Totals
</td>
<td>
$1,569,553
</td>
<td>
$13,722
</td>
<td>
$1,846,431
</td>
<td>
$14,915
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
Year Ended
</td>
<td colspan="2">
One Year Change
</td>
<td rowspan="2">
Year Ended December 31, 2016
</td>
<td colspan="2">
One Year Change
</td>
<td colspan="2">
Two Year Change
</td>
</tr>
<tr>
<td>
</td>
<td>
December 31, 2014
</td>
<td>
December 31, 2015
</td>
<td>
$
</td>
<td>
%
</td>
<td>
$
</td>
<td>
%
</td>
<td>
$
</td>
<td>
%
</td>
</tr>
<tr>
<td>
New development
</td>
<td>
$197,881
</td>
<td>
$244,561
</td>
<td>
$46,680
</td>
<td>
24%
</td>
<td>
$403,131
</td>
<td>
$158,570
</td>
<td>
65%
</td>
<td>
$205,250
</td>
<td>
104%
</td>
</tr>
<tr>
<td>
Recurring capital expenditures, tenant improvements and lease commissions
</td>
<td>
59,134
</td>
<td>
64,458
</td>
<td>
5,324
</td>
<td>
9%
</td>
<td>
66,332
</td>
<td>
1,874
</td>
<td>
3%
</td>
<td>
7,198
</td>
<td>
12%
</td>
</tr>
<tr>
<td>
Renovations, redevelopments and other capital improvements
</td>
<td>
73,646
</td>
<td>
123,294
</td>
<td>
49,648
</td>
<td>
67%
</td>
<td>
152,814
</td>
<td>
29,520
</td>
<td>
24%
</td>
<td>
79,168
</td>
<td>
107%
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
$330,661
</td>
<td>
$432,313
</td>
<td>
$101,652
</td>
<td>
31%
</td>
<td>
$622,277
</td>
<td>
$189,964
</td>
<td>
44%
</td>
<td>
$291,616
</td>
<td>
88%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
December 31, 2016
</td>
<td colspan="2">
December 31, 2015
</td>
</tr>
<tr>
<td>
</td>
<td>
Principal balance
</td>
<td>
Fair value change
</td>
<td>
Principal balance
</td>
<td>
Fair value change
</td>
</tr>
<tr>
<td>
Senior unsecured notes
</td>
<td>
$7,568,832
</td>
<td>
$(521,203)
</td>
<td>
$7,965,107
</td>
<td>
$(519,901)
</td>
</tr>
<tr>
<td>
Secured debt
</td>
<td>
2,489,276
</td>
<td>
(73,944)
</td>
<td>
2,757,123
</td>
<td>
(91,376)
</td>
</tr>
<tr>
<td>
Totals
</td>
<td>
$10,058,108
</td>
<td>
$(595,147)
</td>
<td>
$10,722,230
</td>
<td>
$(611,277)
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Outpatient Medical
</td>
</tr>
<tr>
<td>
Property Location
</td>
<td>
Number of Properties
</td>
<td>
Total Investment
</td>
<td>
Annualized Revenues
</td>
</tr>
<tr>
<td>
Alaska
</td>
<td>
1
</td>
<td>
$21,859
</td>
<td>
$2,562
</td>
</tr>
<tr>
<td>
Alabama
</td>
<td>
3
</td>
<td>
30,531
</td>
<td>
5,233
</td>
</tr>
<tr>
<td>
Arkansas
</td>
<td>
1
</td>
<td>
22,845
</td>
<td>
2,079
</td>
</tr>
<tr>
<td>
Arizona
</td>
<td>
4
</td>
<td>
65,537
</td>
<td>
8,466
</td>
</tr>
<tr>
<td>
California
</td>
<td>
29
</td>
<td>
841,277
</td>
<td>
80,417
</td>
</tr>
<tr>
<td>
Colorado
</td>
<td>
3
</td>
<td>
29,924
</td>
<td>
4,097
</td>
</tr>
<tr>
<td>
Connecticut
</td>
<td>
1
</td>
<td>
41,153
</td>
<td>
2,318
</td>
</tr>
<tr>
<td>
Florida
</td>
<td>
33
</td>
<td>
400,031
</td>
<td>
48,218
</td>
</tr>
<tr>
<td>
Georgia
</td>
<td>
10
</td>
<td>
175,245
</td>
<td>
24,572
</td>
</tr>
<tr>
<td>
Iowa
</td>
<td>
1
</td>
<td>
6,794
</td>
<td>
1,653
</td>
</tr>
<tr>
<td>
Illinois
</td>
<td>
5
</td>
<td>
51,613
</td>
<td>
8,920
</td>
</tr>
<tr>
<td>
Indiana
</td>
<td>
8
</td>
<td>
146,612
</td>
<td>
18,383
</td>
</tr>
<tr>
<td>
Kansas
</td>
<td>
7
</td>
<td>
75,300
</td>
<td>
12,673
</td>
</tr>
<tr>
<td>
Kentucky
</td>
<td>
1
</td>
<td>
7,677
</td>
<td>
752
</td>
</tr>
<tr>
<td>
Maryland
</td>
<td>
5
</td>
<td>
85,994
</td>
<td>
13,394
</td>
</tr>
<tr>
<td>
Maine
</td>
<td>
1
</td>
<td>
20,470
</td>
<td>
2,980
</td>
</tr>
<tr>
<td>
Michigan
</td>
<td>
2
</td>
<td>
22,315
</td>
<td>
1,931
</td>
</tr>
<tr>
<td>
Minnesota
</td>
<td>
8
</td>
<td>
172,680
</td>
<td>
28,877
</td>
</tr>
<tr>
<td>
Missouri
</td>
<td>
7
</td>
<td>
142,631
</td>
<td>
18,383
</td>
</tr>
<tr>
<td>
North Carolina
</td>
<td>
3
</td>
<td>
55,776
</td>
<td>
7,199
</td>
</tr>
<tr>
<td>
Nebraska
</td>
<td>
2
</td>
<td>
35,186
</td>
<td>
5,465
</td>
</tr>
<tr>
<td>
New Hampshire
</td>
<td>
1
</td>
<td>
14,009
</td>
<td>
806
</td>
</tr>
<tr>
<td>
New Jersey
</td>
<td>
7
</td>
<td>
205,118
</td>
<td>
42,169
</td>
</tr>
<tr>
<td>
New Mexico
</td>
<td>
3
</td>
<td>
33,235
</td>
<td>
3,715
</td>
</tr>
<tr>
<td>
Nevada
</td>
<td>
5
</td>
<td>
45,069
</td>
<td>
4,194
</td>
</tr>
<tr>
<td>
New York
</td>
<td>
8
</td>
<td>
102,417
</td>
<td>
6,849
</td>
</tr>
<tr>
<td>
Ohio
</td>
<td>
7
</td>
<td>
67,209
</td>
<td>
11,365
</td>
</tr>
<tr>
<td>
Oklahoma
</td>
<td>
2
</td>
<td>
24,987
</td>
<td>
3,262
</td>
</tr>
<tr>
<td>
Oregon
</td>
<td>
1
</td>
<td>
9,506
</td>
<td>
1,575
</td>
</tr>
<tr>
<td>
South Carolina
</td>
<td>
1
</td>
<td>
25,853
</td>
<td>
2,138
</td>
</tr>
<tr>
<td>
Tennessee
</td>
<td>
7
</td>
<td>
78,058
</td>
<td>
10,499
</td>
</tr>
<tr>
<td>
Texas
</td>
<td>
53
</td>
<td>
891,821
</td>
<td>
97,226
</td>
</tr>
<tr>
<td>
Virginia
</td>
<td>
2
</td>
<td>
33,073
</td>
<td>
5,103
</td>
</tr>
<tr>
<td>
Washington
</td>
<td>
6
</td>
<td>
179,100
</td>
<td>
20,751
</td>
</tr>
<tr>
<td>
Wisconsin
</td>
<td>
20
</td>
<td>
267,226
</td>
<td>
27,991
</td>
</tr>
<tr>
<td>
Total domestic
</td>
<td>
258
</td>
<td>
4,428,131
</td>
<td>
536,215
</td>
</tr>
<tr>
<td>
United Kingdom
</td>
<td>
4
</td>
<td>
267,204
</td>
<td>
23,849
</td>
</tr>
<tr>
<td>
Grand total
</td>
<td>
262
</td>
<td>
$4,695,335
</td>
<td>
$560,064
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Year Ended December 31,
</td>
</tr>
<tr>
<td>
</td>
<td>
2014
</td>
<td>
2015
</td>
<td>
2016
</td>
</tr>
<tr>
<td>
Net income attributable to common stockholders
</td>
<td>
$446,745
</td>
<td>
$818,344
</td>
<td>
$1,012,397
</td>
</tr>
<tr>
<td>
Funds from operations attributable to common stockholders
</td>
<td>
1,174,081
</td>
<td>
1,409,640
</td>
<td>
1,593,143
</td>
</tr>
<tr>
<td>
Net operating income from continuing operations
</td>
<td>
1,940,188
</td>
<td>
2,237,569
</td>
<td>
2,404,177
</td>
</tr>
<tr>
<td>
Same store net operating income
</td>
<td>
1,404,158
</td>
<td>
1,425,795
</td>
<td>
1,445,748
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
Properties
</td>
<td>
Investment Amount (1)
</td>
<td>
Capitalization Rates
<sup>
(2)
</sup>
</td>
<td>
Book Amount (3)
</td>
</tr>
<tr>
<td>
Triple-net
</td>
<td>
14
</td>
<td>
$450,537
</td>
<td>
6.7%
</td>
<td>
$526,814
</td>
</tr>
<tr>
<td>
Seniors housing operating
</td>
<td>
34
</td>
<td>
1,680,165
</td>
<td>
6.2%
</td>
<td>
1,801,446
</td>
</tr>
<tr>
<td>
Outpatient medical
</td>
<td>
3
</td>
<td>
51,434
</td>
<td>
6.3%
</td>
<td>
56,386
</td>
</tr>
<tr>
<td>
Totals
</td>
<td>
51
</td>
<td>
$2,182,136
</td>
<td>
6.3%
</td>
<td>
$2,384,646
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
12/31/11
</td>
<td>
12/31/12
</td>
<td>
12/31/13
</td>
<td>
12/31/14
</td>
<td>
12/31/15
</td>
<td>
12/31/16
</td>
</tr>
<tr>
<td>
S & P 500
</td>
<td>
100.00
</td>
<td>
116.00
</td>
<td>
153.57
</td>
<td>
174.60
</td>
<td>
177.01
</td>
<td>
198.18
</td>
</tr>
<tr>
<td>
Welltower Inc.
</td>
<td>
100.00
</td>
<td>
118.21
</td>
<td>
108.27
</td>
<td>
160.79
</td>
<td>
151.58
</td>
<td>
156.69
</td>
</tr>
<tr>
<td>
FTSE NAREIT Equity
</td>
<td>
100.00
</td>
<td>
118.06
</td>
<td>
120.97
</td>
<td>
157.43
</td>
<td>
162.46
</td>
<td>
176.30
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Year Ended December 31,
</td>
</tr>
<tr>
<td>
Same Store NOI Reconciliation:
</td>
<td>
2014
</td>
<td>
2015
</td>
<td>
2016
</td>
</tr>
<tr>
<td>
Net operating income from continuing operations:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Triple-net
</td>
<td>
$1,027,134
</td>
<td>
$1,175,806
</td>
<td>
$1,208,860
</td>
</tr>
<tr>
<td>
Seniors housing operating
</td>
<td>
631,263
</td>
<td>
701,262
</td>
<td>
814,114
</td>
</tr>
<tr>
<td>
Outpatient medical
</td>
<td>
281,114
</td>
<td>
359,410
</td>
<td>
380,264
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
1,939,511
</td>
<td>
2,236,478
</td>
<td>
2,403,238
</td>
</tr>
<tr>
<td>
Adjustments:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Triple-net:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Non-cash NOI on same store properties
</td>
<td>
(43,448)
</td>
<td>
(53,578)
</td>
<td>
(44,215)
</td>
</tr>
<tr>
<td>
NOI attributable to non same store properties
</td>
<td>
(447,455)
</td>
<td>
(556,040)
</td>
<td>
(588,881)
</td>
</tr>
<tr>
<td>
Subtotal
</td>
<td>
(490,903)
</td>
<td>
(609,618)
</td>
<td>
(633,096)
</td>
</tr>
<tr>
<td>
Seniors housing operating:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Non-cash NOI on same store properties
</td>
<td>
1,044
</td>
<td>
1,003
</td>
<td>
2,404
</td>
</tr>
<tr>
<td>
NOI attributable to non same store properties
</td>
<td>
(6,575)
</td>
<td>
(88,221)
</td>
<td>
(196,668)
</td>
</tr>
<tr>
<td>
Subtotal
</td>
<td>
(5,531)
</td>
<td>
(87,218)
</td>
<td>
(194,264)
</td>
</tr>
<tr>
<td>
Outpatient medical:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Non-cash NOI on same store properties
</td>
<td>
(8,015)
</td>
<td>
(5,186)
</td>
<td>
(2,440)
</td>
</tr>
<tr>
<td>
NOI attributable to non same store properties
</td>
<td>
(30,904)
</td>
<td>
(108,661)
</td>
<td>
(127,690)
</td>
</tr>
<tr>
<td>
Subtotal
</td>
<td>
(38,919)
</td>
<td>
(113,847)
</td>
<td>
(130,130)
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
(535,353)
</td>
<td>
(810,683)
</td>
<td>
(957,490)
</td>
</tr>
<tr>
<td>
Same store net operating income:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Triple-net
</td>
<td>
536,231
</td>
<td>
566,188
</td>
<td>
575,764
</td>
</tr>
<tr>
<td>
Seniors housing operating
</td>
<td>
625,732
</td>
<td>
614,044
</td>
<td>
619,850
</td>
</tr>
<tr>
<td>
Outpatient medical
</td>
<td>
242,195
</td>
<td>
245,563
</td>
<td>
250,134
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
$1,404,158
</td>
<td>
$1,425,795
</td>
<td>
$1,445,748
</td>
</tr>
<tr>
<td>
Same Store NOI Property Reconciliation:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Total properties
</td>
<td>
1,313
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Acquisitions
</td>
<td>
(335)
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Developments
</td>
<td>
(44)
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Disposals/Held-for-sale
</td>
<td>
(72)
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Segment transitions
</td>
<td>
(2)
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Other
<sup>
(1)
</sup>
</td>
<td>
(9)
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Same store properties
</td>
<td>
851
</td>
<td>
</td>
<td>
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
Year Ended
</td>
<td colspan="2">
One Year Change
</td>
<td rowspan="2">
Year Ended December 31, 2016
</td>
<td colspan="2">
One Year Change
</td>
<td colspan="2">
Two Year Change
</td>
</tr>
<tr>
<td>
</td>
<td>
December 31, 2014
</td>
<td>
December 31, 2015
</td>
<td>
Amount%
</td>
<td>
</td>
<td>
Amount%
</td>
<td>
</td>
<td>
Amount%
</td>
<td>
</td>
</tr>
<tr>
<td>
Net income attributable to common stockholders
</td>
<td>
$446,745
</td>
<td>
$818,344
</td>
<td>
$371,599
</td>
<td>
83%
</td>
<td>
$1,012,397
</td>
<td>
$194,053
</td>
<td>
24%
</td>
<td>
$565,652
</td>
<td>
127%
</td>
</tr>
<tr>
<td>
Funds from operations attributable to common stockholders
</td>
<td>
1,174,081
</td>
<td>
1,409,640
</td>
<td>
235,559
</td>
<td>
20%
</td>
<td>
1,593,143
</td>
<td>
183,503
</td>
<td>
13%
</td>
<td>
419,062
</td>
<td>
36%
</td>
</tr>
<tr>
<td>
Adjusted EBITDA
</td>
<td>
1,813,241
</td>
<td>
2,091,754
</td>
<td>
278,513
</td>
<td>
15%
</td>
<td>
2,246,507
</td>
<td>
154,753
</td>
<td>
7%
</td>
<td>
433,266
</td>
<td>
24%
</td>
</tr>
<tr>
<td>
Net operating income from continuing operations
</td>
<td>
1,940,188
</td>
<td>
2,237,569
</td>
<td>
297,381
</td>
<td>
15%
</td>
<td>
2,404,177
</td>
<td>
166,608
</td>
<td>
7%
</td>
<td>
463,989
</td>
<td>
24%
</td>
</tr>
<tr>
<td>
Same store NOI
</td>
<td>
1,404,158
</td>
<td>
1,425,795
</td>
<td>
21,637
</td>
<td>
2%
</td>
<td>
1,445,748
</td>
<td>
19,953
</td>
<td>
1%
</td>
<td>
41,590
</td>
<td>
3%
</td>
</tr>
<tr>
<td>
Per share data (fully diluted):
</td>
<td>
</td>
<td>
</td>
<td>
</td>
<td>
</td>
<td>
</td>
<td>
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Net income attributable to common stockholders
</td>
<td>
$1.45
</td>
<td>
$2.34
</td>
<td>
$0.89
</td>
<td>
61%
</td>
<td>
$2.81
</td>
<td>
$0.47
</td>
<td>
20%
</td>
<td>
$1.36
</td>
<td>
94%
</td>
</tr>
<tr>
<td>
Funds from operations attributable to common stockholders
</td>
<td>
3.82
</td>
<td>
4.03
</td>
<td>
0.21
</td>
<td>
5%
</td>
<td>
4.42
</td>
<td>
0.39
</td>
<td>
10%
</td>
<td>
0.60
</td>
<td>
16%
</td>
</tr>
<tr>
<td>
Adjusted interest coverage ratio
</td>
<td>
3.73x
</td>
<td>
4.20x
</td>
<td>
0.47x
</td>
<td>
13%
</td>
<td>
4.19x
</td>
<td>
-0.01x
</td>
<td>
0%
</td>
<td>
0.46x
</td>
<td>
12%
</td>
</tr>
<tr>
<td>
Adjusted fixed charge coverage ratio
</td>
<td>
2.96x
</td>
<td>
3.32x
</td>
<td>
0.36x
</td>
<td>
12%
</td>
<td>
3.32x
</td>
<td>
0.00x
</td>
<td>
0%
</td>
<td>
0.36x
</td>
<td>
12%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Nature of Critical Accounting Estimate
</td>
<td>
Assumptions/Approach Used
</td>
</tr>
<tr>
<td>
Principles of ConsolidationThe consolidated financial statements include our accounts, the accounts of our wholly-owned subsidiaries and the accounts of joint venture entities in which we own a majority voting interest with the ability to control operations and where no substantive participating rights or substantive kick out rights have been granted to the noncontrolling interests. In addition, we consolidate those entities deemed to be variable interest entities (VIEs) in which we are determined to be the primary beneficiary. All material intercompany transactions and balances have been eliminated in consolidation.
</td>
<td>
We make judgments about which entities are VIEs based on an assessment of whether (i) the equity investors as a group, if any, do not have a controlling financial interest, or (ii) the equity investment at risk is insufficient to finance that entity’s activities without additional subordinated financial support. Wemake judgments with respect to our level of influence or control of an entity and whether we are (or are not) the primary beneficiary of a VIE. Consideration of various factors includes, but is not limited to, our ability to direct the activities that most significantly impact the entity's economic performance, our form of ownership interest, our representation on the entity's governing body, the size and seniority of our investment, our ability and the rights of other investors to participate in policy making decisions, replace the manager and/or liquidate the entity, if applicable. Our ability to correctly assess our influence or control over an entity at inception of our involvement or on a continuous basis when determining the primary beneficiary of a VIE affects the presentation of these entities in our consolidated financial statements. If we perform a primary beneficiary analysis at a date other than at inception of the variable interest entity, our assumptions may be different and may result in the identification of a different primary beneficiary.
</td>
</tr>
<tr>
<td>
Income TaxesAs part of the process of preparing our consolidated financial statements, significant management judgment is required to evaluate our compliance with REIT requirements.
</td>
<td>
Our determinations are based on interpretation of tax laws, and our conclusions may have an impact on the income tax expense recognized. Adjustments to income tax expense may be required as a result of: (i) audits conducted by federal, state and international tax authorities, (ii) our ability to qualify as a REIT, (iii) the potential for built-in-gain recognized related to prior-tax-free acquisitions of C corporations and (iv) changes in tax laws. Adjustments required in any given period are included in income.
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Jurisdiction:
</td>
<td>
Tax Years that Remain Subject to Examination(Fiscal Year Ending):
</td>
</tr>
<tr>
<td>
United States – Federal
</td>
<td>
2008 and forward
</td>
</tr>
<tr>
<td>
United States – Various States
</td>
<td>
2008 and forward
</td>
</tr>
<tr>
<td>
Australia
</td>
<td>
2012 and forward
</td>
</tr>
<tr>
<td>
Canada
</td>
<td>
2010 and forward
</td>
</tr>
<tr>
<td>
France
</td>
<td>
2013 and forward
</td>
</tr>
<tr>
<td>
Germany
</td>
<td>
2010 and forward
</td>
</tr>
<tr>
<td>
India
</td>
<td>
1998 and forward
</td>
</tr>
<tr>
<td>
United Kingdom
</td>
<td>
2013 and forward
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
As of
</td>
</tr>
<tr>
<td>
Asset Category
</td>
<td>
March 31, 2019
</td>
<td>
March 31, 2018
</td>
</tr>
<tr>
<td>
Equity securities
</td>
<td>
26%
</td>
<td>
25%
</td>
</tr>
<tr>
<td>
Debt securities
</td>
<td>
45%
</td>
<td>
53%
</td>
</tr>
<tr>
<td>
Alternatives
</td>
<td>
25%
</td>
<td>
18%
</td>
</tr>
<tr>
<td>
Cash and other
</td>
<td>
4%
</td>
<td>
4%
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
100%
</td>
<td>
100%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Software
</td>
<td>
2 to 10 years
</td>
</tr>
<tr>
<td>
Customer related intangibles
</td>
<td>
Expected customer service life
</td>
</tr>
<tr>
<td>
Acquired contract related intangibles
</td>
<td>
Contract life and first contract renewal, where applicable
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Item
</td>
<td>
</td>
<td>
Page
</td>
</tr>
<tr>
<td>
</td>
<td>
PART I
</td>
<td>
</td>
</tr>
<tr>
<td>
1.
</td>
<td>
Business
</td>
<td>
1
</td>
</tr>
<tr>
<td>
1A.
</td>
<td>
Risk Factors
</td>
<td>
8
</td>
</tr>
<tr>
<td>
1B.
</td>
<td>
Unresolved Staff Comments
</td>
<td>
26
</td>
</tr>
<tr>
<td>
2.
</td>
<td>
Properties
</td>
<td>
27
</td>
</tr>
<tr>
<td>
3.
</td>
<td>
Legal Proceedings
</td>
<td>
27
</td>
</tr>
<tr>
<td>
4.
</td>
<td>
Mine Safety Disclosures
</td>
<td>
27
</td>
</tr>
<tr>
<td>
</td>
<td>
PART II
</td>
<td>
</td>
</tr>
<tr>
<td>
5.
</td>
<td>
Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
</td>
<td>
28
</td>
</tr>
<tr>
<td>
6.
</td>
<td>
Selected Financial Data
</td>
<td>
30
</td>
</tr>
<tr>
<td>
7.
</td>
<td>
Management’s Discussion and Analysis of Financial Condition and Results of Operations
</td>
<td>
32
</td>
</tr>
<tr>
<td>
7A.
</td>
<td>
Quantitative and Qualitative Disclosures about Market Risk
</td>
<td>
50
</td>
</tr>
<tr>
<td>
8.
</td>
<td>
Financial Statements and Supplementary Data
</td>
<td>
52
</td>
</tr>
<tr>
<td>
9.
</td>
<td>
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
</td>
<td>
137
</td>
</tr>
<tr>
<td>
9A.
</td>
<td>
Controls and Procedures
</td>
<td>
137
</td>
</tr>
<tr>
<td>
9B.
</td>
<td>
Other Information
</td>
<td>
141
</td>
</tr>
<tr>
<td>
</td>
<td>
PART III
</td>
<td>
</td>
</tr>
<tr>
<td>
10.
</td>
<td>
Directors, Executive Officers and Corporate Governance
</td>
<td>
141
</td>
</tr>
<tr>
<td>
11.
</td>
<td>
Executive Compensation
</td>
<td>
141
</td>
</tr>
<tr>
<td>
12.
</td>
<td>
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
</td>
<td>
141
</td>
</tr>
<tr>
<td>
13.
</td>
<td>
Certain Relationships and Related Transactions, and Director Independence
</td>
<td>
142
</td>
</tr>
<tr>
<td>
14.
</td>
<td>
Principal Accountant Fees and Services
</td>
<td>
142
</td>
</tr>
<tr>
<td>
</td>
<td>
PART IV
</td>
<td>
</td>
</tr>
<tr>
<td>
15.
</td>
<td>
Exhibits, Financial Statement Schedules
</td>
<td>
142
</td>
</tr>
<tr>
<td>
16.
</td>
<td>
Form 10-K Summary
</td>
<td>
148
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
Return 2018
</td>
<td>
Return 2019
</td>
</tr>
<tr>
<td>
DXC Technology Company
</td>
<td>
48.7%
</td>
<td>
(24.4)%
</td>
</tr>
<tr>
<td>
S&P 500 Index
</td>
<td>
12.0%
</td>
<td>
9.8%
</td>
</tr>
<tr>
<td>
S&P North American Technology Index
</td>
<td>
30.0%
</td>
<td>
17.9%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
Number of securities to be issued upon exercise of outstanding options, warrants and rights
</td>
<td rowspan="2">
Weighted-average exercise price of outstanding options, warrants and rights (b)(c)
</td>
<td>
Number of securities remaining available for future issuance under equity compensation plans excluding securities reflected in column (a)
</td>
</tr>
<tr>
<td>
Plan Category(a)
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Equity compensation plans approved by security holders
</td>
<td>
5,204,293
</td>
<td>
13.54
</td>
<td>
21,937,273
</td>
</tr>
<tr>
<td>
Equity compensation plans not approved by security holders
</td>
<td>
—
</td>
<td>
—
</td>
<td>
—
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
5,204,293
</td>
<td>
—
</td>
<td>
21,937,273
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
ExhibitNumber
</td>
<td>
Description of Exhibit
</td>
</tr>
<tr>
<td>
2.1
</td>
<td>
Agreement and Plan of Merger, dated as of May 24, 2016, by and among Computer Sciences Corporation, Hewlett Packard Enterprise Company, Everett SpinCo, Inc. (now known as DXC Technology Company) and Everett Merger Sub, Inc. (incorporated by reference to Exhibit 2.1 to Hewlett Packard Enterprise Company's Current Report on Form 8-K (filed May 26, 2016) (file no. 001-37483))
</td>
</tr>
<tr>
<td>
2.2
</td>
<td>
First Amendment to Agreement and Plan of Merger, dated as of November 2, 2016, by and among Computer Sciences Corporation, Hewlett Packard Enterprise Company, Everett SpinCo, Inc. (now known as DXC Technology Company), New Everett Merger Sub Inc. and Everett Merger Sub Inc. (incorporated by reference to Exhibit 2.1 to Hewlett Packard Enterprise Company's Current Report on Form 8-K (filed November 2, 2016) (file no. 001-37483))
</td>
</tr>
<tr>
<td>
2.3
</td>
<td>
Second Amendment to Agreement and Plan of Merger, dated as of December 6, 2016, by and among Hewlett Packard Enterprise Company, Computer Sciences Corporation, Everett SpinCo, Inc. (now known as DXC Technology Company), Everett Merger Sub Inc. and New Everett Merger Sub Inc. (incorporated by reference to Exhibit 2.3 to Amendment No. 1 to Form 10 of Everett SpinCo, Inc. (filed December 7, 2016) (file no. 000-55712))
</td>
</tr>
<tr>
<td>
2.4
</td>
<td>
Separation and Distribution Agreement, dated May 24, 2016, between Hewlett Packard Enterprise Company and Everett SpinCo, Inc. (now known as DXC Technology Company) (incorporated by reference to Exhibit 2.2 to Hewlett Packard Enterprise Company's Form 8-K (filed May 26, 2016) (file no. 001-37483))
</td>
</tr>
<tr>
<td>
2.5
</td>
<td>
First Amendment to the Separation and Distribution Agreement, dated November 2, 2016, by and between Hewlett Packard Enterprise Company and Everett SpinCo, Inc. (now known as DXC Technology Company) (incorporated by reference to Exhibit 2.2 to Hewlett Packard Enterprise Company's Form 8-K (filed November 2, 2016) (file no. 001-37483))
</td>
</tr>
<tr>
<td>
2.6
</td>
<td>
Second Amendment to the Separation and Distribution Agreement, dated December 6, 2016, by and between Hewlett Packard Enterprise Company and Everett SpinCo, Inc. (now known as DXC Technology Company)(incorporated by reference to Exhibit 2.6 to Everett SpinCo, Inc.'s Amendment No. 1 to Form 10 (filed December 7, 2016) (file no. 000-55712))
</td>
</tr>
<tr>
<td>
2.7
</td>
<td>
Third Amendment to the Separation and Distribution Agreement, dated January 27, 2017, by and between Hewlett Packard Enterprise Company and Everett SpinCo, Inc. (now known as DXC Technology Company) (incorporated by reference to Exhibit 2.7 to Everett SpinCo Inc.'s Form 10 (filed February 14, 2017) (file no. 000-55712))
</td>
</tr>
<tr>
<td>
2.8
</td>
<td>
Fourth Amendment to the Separation and Distribution Agreement, dated March 31, 2017, by and between Hewlett Packard Enterprise Company and Everett SpinCo, Inc. (now known as DXC Technology Company) (incorporated by reference to Exhibit 2.6 to DXC Technology Company's Form 8-K (filed April 6, 2017) (file no. 001-38033))
</td>
</tr>
<tr>
<td>
2.9
</td>
<td>
Employee Matters Agreement, dated as of March 31, 2017, by and among the Computer Sciences Corporation, Hewlett Packard Enterprise Company and Everett SpinCo, Inc. (now known as DXC Technology Company) (incorporated by reference to Exhibit 2.1 to DXC Technology Company's Form 8-K (filed April 6, 2017) (file no. 001-38033))
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
Page
</td>
</tr>
<tr>
<td>
Report of Independent Registered Public Accounting Firm
</td>
<td>
53
</td>
</tr>
<tr>
<td>
Consolidated Balance Sheets as of March 31, 2019 and March 31, 2018
</td>
<td>
54
</td>
</tr>
<tr>
<td>
Consolidated Statements of Operations for the Fiscal Years Ended March 31, 2019, March 31, 2018 and March 31, 2017
</td>
<td>
55
</td>
</tr>
<tr>
<td>
Consolidated Statements of Comprehensive Income (Loss) for the Fiscal Years Ended March 31, 2019, March 31, 2018 and March 31, 2017
</td>
<td>
56
</td>
</tr>
<tr>
<td>
Consolidated Statements of Cash Flows for the Fiscal Years Ended March 31, 2019, March 31, 2018 and March 31, 2017
</td>
<td>
57
</td>
</tr>
<tr>
<td>
Consolidated Statements of Changes in Equity for the Fiscal Years Ended March 31, 2019, March 31, 2018 and March 31, 2017
</td>
<td>
59
</td>
</tr>
<tr>
<td>
Notes to Consolidated Financial Statements
</td>
<td>
</td>
</tr>
<tr>
<td>
Note 1–Summary of Significant Accounting Policies
</td>
<td>
61
</td>
</tr>
<tr>
<td>
Note 2–Acquisitions
</td>
<td>
73
</td>
</tr>
<tr>
<td>
Note 3–Divestitures
</td>
<td>
77
</td>
</tr>
<tr>
<td>
Note 4–Earnings Per Share
</td>
<td>
81
</td>
</tr>
<tr>
<td>
Note 5–Receivables
</td>
<td>
82
</td>
</tr>
<tr>
<td>
Note 6–Fair Value
</td>
<td>
84
</td>
</tr>
<tr>
<td>
Note 7–Derivative Instruments
</td>
<td>
85
</td>
</tr>
<tr>
<td>
Note 8–Property and Equipment
</td>
<td>
88
</td>
</tr>
<tr>
<td>
Note 9–Intangible Assets
</td>
<td>
89
</td>
</tr>
<tr>
<td>
Note 10–Goodwill
</td>
<td>
90
</td>
</tr>
<tr>
<td>
Note 11–Income Taxes
</td>
<td>
91
</td>
</tr>
<tr>
<td>
Note 12–Debt
</td>
<td>
101
</td>
</tr>
<tr>
<td>
Note 13–Pension and Other Benefit Plans
</td>
<td>
104
</td>
</tr>
<tr>
<td>
Note 14–Stockholders' Equity
</td>
<td>
111
</td>
</tr>
<tr>
<td>
Note 15–Stock Incentive Plans
</td>
<td>
112
</td>
</tr>
<tr>
<td>
Note 16–Cash Flows
</td>
<td>
118
</td>
</tr>
<tr>
<td>
Note 17–Other Income
</td>
<td>
119
</td>
</tr>
<tr>
<td>
Note 18–Segment and Geographic Information
</td>
<td>
119
</td>
</tr>
<tr>
<td>
Note 19–Revenue
</td>
<td>
121
</td>
</tr>
<tr>
<td>
Note 20–Restructuring Costs
</td>
<td>
124
</td>
</tr>
<tr>
<td>
Note 21–Commitments and Contingencies
</td>
<td>
127
</td>
</tr>
<tr>
<td>
Note 22–Reconciliation of Previously Reported Amounts to Recast Financial Statements
</td>
<td>
134
</td>
</tr>
<tr>
<td>
Note 23–Subsequent Events
</td>
<td>
134
</td>
</tr>
<tr>
<td>
Supplementary Data
</td>
<td>
135
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Fiscal Years Ended
</td>
</tr>
<tr>
<td>
</td>
<td>
March 31, 2019
</td>
<td>
March 31, 2018
</td>
<td>
March 31, 2017
</td>
</tr>
<tr>
<td>
Statutory rate
</td>
<td>
21.0%
</td>
<td>
31.5%
</td>
<td>
(35.0)%
</td>
</tr>
<tr>
<td>
State income tax, net of federal tax
</td>
<td>
3.2
</td>
<td>
2.0
</td>
<td>
(4.0)
</td>
</tr>
<tr>
<td>
United States Tax Reform
</td>
<td>
(3.4)
</td>
<td>
(40.6)
</td>
<td>
—
</td>
</tr>
<tr>
<td>
Change in Indefinite Reinvestment Assertion
</td>
<td>
(3.1)
</td>
<td>
3.3
</td>
<td>
—
</td>
</tr>
<tr>
<td>
Loss of attributes due to merger
</td>
<td>
—
</td>
<td>
5.1
</td>
<td>
—
</td>
</tr>
<tr>
<td>
Change in uncertain tax positions
</td>
<td>
(1.5)
</td>
<td>
(0.2)
</td>
<td>
(3.4)
</td>
</tr>
<tr>
<td>
Foreign tax rate differential
</td>
<td>
(18.4)
</td>
<td>
(5.7)
</td>
<td>
(40.0)
</td>
</tr>
<tr>
<td>
Capitalized transaction costs
</td>
<td>
0.1
</td>
<td>
1.0
</td>
<td>
12.1
</td>
</tr>
<tr>
<td>
Change in valuation allowances
</td>
<td>
16.9
</td>
<td>
(7.7)
</td>
<td>
34.3
</td>
</tr>
<tr>
<td>
Excess tax benefits for stock compensation
</td>
<td>
(1.1)
</td>
<td>
(3.0)
</td>
<td>
(11.3)
</td>
</tr>
<tr>
<td>
Prepaid tax asset amortization
</td>
<td>
—
</td>
<td>
0.3
</td>
<td>
7.1
</td>
</tr>
<tr>
<td>
Income Tax and Foreign Tax Credits
</td>
<td>
(0.6)
</td>
<td>
(7.6)
</td>
<td>
(2.0)
</td>
</tr>
<tr>
<td>
U.S. Tax on Foreign Income
</td>
<td>
2.4
</td>
<td>
2.1
</td>
<td>
(2.6)
</td>
</tr>
<tr>
<td>
Withholding Taxes
</td>
<td>
3.5
</td>
<td>
2.3
</td>
<td>
(1.1)
</td>
</tr>
<tr>
<td>
Other items, net
</td>
<td>
—
</td>
<td>
(1.4)
</td>
<td>
3.4
</td>
</tr>
<tr>
<td>
Effective tax rate
</td>
<td>
19.0%
</td>
<td>
(18.6)%
</td>
<td>
(42.5)%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Buildings
</td>
<td>
Up to 40 years
</td>
</tr>
<tr>
<td>
Computers and related equipment
</td>
<td>
4 to 5 years
</td>
</tr>
<tr>
<td>
Furniture and other equipment
</td>
<td>
3 to 15 years
</td>
</tr>
<tr>
<td>
Leasehold improvements
</td>
<td>
Shorter of lease term or useful life up to 20 years
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
10.43*
</td>
<td>
Form of Service Based Restricted Stock Unit Award under the DXC Technology Company 2017 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.6 to the Company’s Periodic Report on Form 8-K (filed April 6, 2017) (file no. 001-38033))
</td>
</tr>
<tr>
<td>
10.44*
</td>
<td>
Form of Restricted Stock Unit Agreement under the DXC Technology Company 2017 Non-Employee Director Incentive Plan (incorporated by reference to Exhibit 10.7 to the Company’s Periodic Report on Form 8-K (filed April 6, 2017) (file no. 001-38033))
</td>
</tr>
<tr>
<td>
10.45*
</td>
<td>
Supplemental Performance Based Restricted Stock Unit Award to J. Michael Lawrie dated June 15, 2017 (incorporated by reference to Exhibit 10.7 to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2017 (filed August 9, 2017) (file no. 001-38033))
</td>
</tr>
<tr>
<td>
10.46*
</td>
<td>
DXC Technology Company Severance Plan for Senior Management and Key Employees (incorporated by reference to Exhibit 10.11 to the Company’s Periodic Report on Form 8-K (filed April 6, 2017) (file no. 001-38033))
</td>
</tr>
<tr>
<td>
10.47*
</td>
<td>
Amendment to the DXC Technology Corporation Severance Plan for Senior Management and Key Employees (incorporated by reference to Exhibit 10.2 to DXC Technology Company's Quarterly Report on Form 10-Q (filed November 8, 2018) (file no. 001-38033))
</td>
</tr>
<tr>
<td>
10.48*
</td>
<td>
Employment Agreement with J. Michael Lawrie dated February 7, 2012 (incorporated by reference to Exhibit 10.1 to Computer Sciences Corporation's Form 8-K (filed February 8, 2012) (file no. 001-4850))
</td>
</tr>
<tr>
<td>
10.49*
</td>
<td>
Amendment to Employment Agreement, effective as of March 27, 2017 (incorporated by reference to Exhibit 10.1 to Computer Sciences Corporation's Form 8-K (filed March 28, 2017) (file no. 001-4850))
</td>
</tr>
<tr>
<td>
10.50*
</td>
<td>
Amendment to Employment Agreement with J. Michael Lawrie dated April 3, 2017 (incorporated by reference to Exhibit 10.12 to the Company’s Periodic Report on Form 8-K (filed April 6, 2017) (file no. 001-38033))
</td>
</tr>
<tr>
<td>
10.51*
</td>
<td>
Amendment to the CEO Employment Agreement dated August 15, 2018, between J. Michael Lawrie and the Company (incorporated by reference to Exhibit 10.1 to DXC Technology Company’s Current Report on Form 8-K (filed August 20, 2018) (file no. 001-38033))
</td>
</tr>
<tr>
<td>
10.52*
</td>
<td>
Form of Director Indemnification Agreement (incorporated by reference to Exhibit 10.16 to the Company’s Periodic Report on Form 8-K (filed April 6, 2017) (file no. 001-38033))
</td>
</tr>
<tr>
<td>
10.53*
</td>
<td>
Form of Career Share Restricted Stock Unit Award under the DXC Technology Company 2017 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.45 to DXC Technology Company's Annual Report on Form 10-K (filed May 29, 2018) (file no. 001-38033))
</td>
</tr>
<tr>
<td>
21
</td>
<td>
Significant Active Subsidiaries and Affiliates of the Registrant (filed herewith)
</td>
</tr>
<tr>
<td>
23
</td>
<td>
Consent of Independent Registered Public Accounting Firm
</td>
</tr>
<tr>
<td>
31.1
</td>
<td>
Section 302 Certification of the Chief Executive Officer
</td>
</tr>
<tr>
<td>
31.2
</td>
<td>
Section 302 Certification of the Chief Financial Officer
</td>
</tr>
<tr>
<td>
32.1
</td>
<td>
Section 906 Certification of Chief Executive Officer
</td>
</tr>
<tr>
<td>
32.2
</td>
<td>
Section 906 Certification of Chief Financial Officer
</td>
</tr>
<tr>
<td>
101.INS
</td>
<td>
XBRL Instance
</td>
</tr>
<tr>
<td>
101.SCH
</td>
<td>
XBRL Taxonomy Extension Schema
</td>
</tr>
<tr>
<td>
101.CAL
</td>
<td>
XBRL Taxonomy Extension Calculation
</td>
</tr>
<tr>
<td>
101.LAB
</td>
<td>
XBRL Taxonomy Extension Labels
</td>
</tr>
<tr>
<td>
101.PRE
</td>
<td>
XBRL Taxonomy Extension Presentation
</td>
</tr>
<tr>
<td>
</td>
<td>
*Management contract or compensatory plan or agreement
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Fiscal Years Ended
</td>
</tr>
<tr>
<td>
</td>
<td>
March 31, 2018
</td>
<td>
March 31, 2017
</td>
<td>
April 1, 2016
</td>
</tr>
<tr>
<td>
Statutory rate
</td>
<td>
31.5%
</td>
<td>
(35.0)%
</td>
<td>
35.0%
</td>
</tr>
<tr>
<td>
State income tax, net of federal tax
</td>
<td>
2.5
</td>
<td>
(4.0)
</td>
<td>
(145.7)
</td>
</tr>
<tr>
<td>
United States Tax Reform
</td>
<td>
(31.7)
</td>
<td>
—
</td>
<td>
—
</td>
</tr>
<tr>
<td>
Change in Indefinite Reinvestment Assertion
</td>
<td>
2.6
</td>
<td>
—
</td>
<td>
—
</td>
</tr>
<tr>
<td>
Loss of attributes due to merger
</td>
<td>
4.0
</td>
<td>
—
</td>
<td>
—
</td>
</tr>
<tr>
<td>
Change in uncertain tax positions
</td>
<td>
(0.1)
</td>
<td>
(3.4)
</td>
<td>
(685.0)
</td>
</tr>
<tr>
<td>
Foreign tax rate differential
</td>
<td>
(4.5)
</td>
<td>
(41.1)
</td>
<td>
(377.4)
</td>
</tr>
<tr>
<td>
Capitalized transaction costs
</td>
<td>
1.1
</td>
<td>
12.1
</td>
<td>
22.3
</td>
</tr>
<tr>
<td>
Change in valuation allowances
</td>
<td>
(6.0)
</td>
<td>
34.3
</td>
<td>
743.6
</td>
</tr>
<tr>
<td>
Excess tax benefits for stock compensation
</td>
<td>
(2.3)
</td>
<td>
(11.3)
</td>
<td>
(230.0)
</td>
</tr>
<tr>
<td>
Prepaid tax asset amortization
</td>
<td>
0.3
</td>
<td>
7.1
</td>
<td>
78.8
</td>
</tr>
<tr>
<td>
Income Tax and Foreign Tax Credits
</td>
<td>
(6.0)
</td>
<td>
(2.0)
</td>
<td>
(58.0)
</td>
</tr>
<tr>
<td>
Other items, net
</td>
<td>
2.0
</td>
<td>
0.8
</td>
<td>
(3.6)
</td>
</tr>
<tr>
<td>
Effective tax rate
</td>
<td>
(6.6)%
</td>
<td>
(42.5)%
</td>
<td>
(620.0)%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Software
</td>
<td>
2 to 10 years
</td>
</tr>
<tr>
<td>
Outsourcing contract costs
</td>
<td>
Contract life, excluding option years
</td>
</tr>
<tr>
<td>
Customer related intangibles
</td>
<td>
Expected customer service life
</td>
</tr>
<tr>
<td>
Acquired contract related intangibles
</td>
<td>
Contract life and first contract renewal, where applicable
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
As of
</td>
</tr>
<tr>
<td>
Asset Category
</td>
<td>
March 31, 2018
</td>
<td>
March 31, 2017
</td>
</tr>
<tr>
<td>
Equity securities
</td>
<td>
25%
</td>
<td>
33%
</td>
</tr>
<tr>
<td>
Debt securities
</td>
<td>
53%
</td>
<td>
33%
</td>
</tr>
<tr>
<td>
Alternatives
</td>
<td>
18%
</td>
<td>
25%
</td>
</tr>
<tr>
<td>
Cash and other
</td>
<td>
4%
</td>
<td>
9%
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
100%
</td>
<td>
100%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
DXC Technology Company
</td>
<td>
48.7%
</td>
</tr>
<tr>
<td>
S&P 500 Index
</td>
<td>
12.0%
</td>
</tr>
<tr>
<td>
S&P North American Technology Index
</td>
<td>
30.0%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Item
</td>
<td>
</td>
<td>
Page
</td>
</tr>
<tr>
<td>
</td>
<td>
PART I
</td>
<td>
</td>
</tr>
<tr>
<td>
1.
</td>
<td>
Business
</td>
<td>
2
</td>
</tr>
<tr>
<td>
1A.
</td>
<td>
Risk Factors
</td>
<td>
10
</td>
</tr>
<tr>
<td>
1B.
</td>
<td>
Unresolved Staff Comments
</td>
<td>
28
</td>
</tr>
<tr>
<td>
2.
</td>
<td>
Properties
</td>
<td>
28
</td>
</tr>
<tr>
<td>
3.
</td>
<td>
Legal Proceedings
</td>
<td>
28
</td>
</tr>
<tr>
<td>
4.
</td>
<td>
Mine Safety Disclosures
</td>
<td>
28
</td>
</tr>
<tr>
<td>
</td>
<td>
PART II
</td>
<td>
</td>
</tr>
<tr>
<td>
5.
</td>
<td>
Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
</td>
<td>
29
</td>
</tr>
<tr>
<td>
6.
</td>
<td>
Selected Financial Data
</td>
<td>
32
</td>
</tr>
<tr>
<td>
7.
</td>
<td>
Management’s Discussion and Analysis of Financial Condition and Results of Operations
</td>
<td>
34
</td>
</tr>
<tr>
<td>
7A.
</td>
<td>
Quantitative and Qualitative Disclosures about Market Risk
</td>
<td>
57
</td>
</tr>
<tr>
<td>
8.
</td>
<td>
Financial Statements and Supplementary Data
</td>
<td>
59
</td>
</tr>
<tr>
<td>
9.
</td>
<td>
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
</td>
<td>
139
</td>
</tr>
<tr>
<td>
9A.
</td>
<td>
Controls and Procedures
</td>
<td>
139
</td>
</tr>
<tr>
<td>
9B.
</td>
<td>
Other Information
</td>
<td>
141
</td>
</tr>
<tr>
<td>
</td>
<td>
PART III
</td>
<td>
</td>
</tr>
<tr>
<td>
10.
</td>
<td>
Directors, Executive Officers and Corporate Governance
</td>
<td>
141
</td>
</tr>
<tr>
<td>
11.
</td>
<td>
Executive Compensation
</td>
<td>
141
</td>
</tr>
<tr>
<td>
12.
</td>
<td>
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
</td>
<td>
141
</td>
</tr>
<tr>
<td>
13.
</td>
<td>
Certain Relationships and Related Transactions, and Director Independence
</td>
<td>
142
</td>
</tr>
<tr>
<td>
14.
</td>
<td>
Principal Accountant Fees and Services
</td>
<td>
142
</td>
</tr>
<tr>
<td>
</td>
<td>
PART IV
</td>
<td>
</td>
</tr>
<tr>
<td>
15.
</td>
<td>
Exhibits, Financial Statement Schedules
</td>
<td>
142
</td>
</tr>
<tr>
<td>
16.
</td>
<td>
Form 10-K Summary
</td>
<td>
147
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
March 31, 2018
</td>
<td>
March 31, 2017
</td>
<td>
April 1, 2016
</td>
</tr>
<tr>
<td>
Discount rates
</td>
<td>
2.5%
</td>
<td>
3.1%
</td>
<td>
3.0%
</td>
</tr>
<tr>
<td>
Expected long-term rates of return on assets
</td>
<td>
4.9%
</td>
<td>
6.3%
</td>
<td>
6.3%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Fiscal Years Ended
</td>
<td colspan="3">
Percentage of Revenues
</td>
</tr>
<tr>
<td>
(in millions)
</td>
<td>
March 31, 2018
</td>
<td>
March 31, 2017
<sup>
(1)
</sup>
</td>
<td>
April 1, 2016
<sup>
(1)
</sup>
</td>
<td>
2018
</td>
<td>
2017
<sup>
(1)
</sup>
</td>
<td>
2016
<sup>
(1)
</sup>
</td>
</tr>
<tr>
<td>
Costs of services (excludes depreciation and amortization and restructuring costs)
</td>
<td>
$17,944
</td>
<td>
$5,545
</td>
<td>
$5,185
</td>
<td>
73.0%
</td>
<td>
72.9%
</td>
<td>
73.0%
</td>
</tr>
<tr>
<td>
Selling, general and administrative (excludes depreciation and amortization and restructuring costs)
</td>
<td>
2,010
</td>
<td>
1,279
</td>
<td>
1,059
</td>
<td>
8.2
</td>
<td>
16.8
</td>
<td>
14.9
</td>
</tr>
<tr>
<td>
Depreciation and amortization
</td>
<td>
1,964
</td>
<td>
647
</td>
<td>
658
</td>
<td>
8.0
</td>
<td>
8.5
</td>
<td>
9.3
</td>
</tr>
<tr>
<td>
Restructuring costs
</td>
<td>
803
</td>
<td>
238
</td>
<td>
23
</td>
<td>
3.3
</td>
<td>
3.1
</td>
<td>
0.3
</td>
</tr>
<tr>
<td>
Interest expense, net
</td>
<td>
246
</td>
<td>
82
</td>
<td>
85
</td>
<td>
1.0
</td>
<td>
1.1
</td>
<td>
1.2
</td>
</tr>
<tr>
<td>
Debt extinguishment costs
</td>
<td>
—
</td>
<td>
—
</td>
<td>
95
</td>
<td>
—
</td>
<td>
—
</td>
<td>
1.3
</td>
</tr>
<tr>
<td>
Other income, net
</td>
<td>
(82)
</td>
<td>
(10)
</td>
<td>
(9)
</td>
<td>
(0.3)
</td>
<td>
(0.1)
</td>
<td>
(0.1)
</td>
</tr>
<tr>
<td>
Total costs and expenses
</td>
<td>
$22,885
</td>
<td>
$7,781
</td>
<td>
$7,096
</td>
<td>
93.2%
</td>
<td>
102.3%
</td>
<td>
99.9%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
Number of securities to be issued upon exercise of outstanding options, warrants and rights
</td>
<td rowspan="2">
Weighted-average exercise price of outstanding options, warrants and rights (b)(c)
</td>
<td>
Number of securities remaining available for future issuance under equity compensation plans excluding securities reflected in column (a)
</td>
</tr>
<tr>
<td>
Plan Category(a)
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Equity compensation plans approved by security holders
</td>
<td>
6,985,503
</td>
<td>
15.80
</td>
<td>
22,426,057
</td>
</tr>
<tr>
<td>
Equity compensation plans not approved by security holders
</td>
<td>
—
</td>
<td>
—
</td>
<td>
—
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
6,985,503
</td>
<td>
15.80
</td>
<td>
22,426,057
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
Page
</td>
</tr>
<tr>
<td>
Report of Independent Registered Public Accounting Firm
</td>
<td>
60
</td>
</tr>
<tr>
<td>
Consolidated Balance Sheets as of March 31, 2018 and March 31, 2017
</td>
<td>
61
</td>
</tr>
<tr>
<td>
Consolidated Statements of Operations for the Fiscal Years Ended March 31, 2018, March 31, 2017 and April 1, 2016
</td>
<td>
62
</td>
</tr>
<tr>
<td>
Consolidated Statements of Comprehensive Income (Loss) for the Fiscal Years Ended March 31, 2018, March 31, 2017 and April 1, 2016
</td>
<td>
63
</td>
</tr>
<tr>
<td>
Consolidated Statements of Cash Flows for the Fiscal Years Ended March 31, 2018, March 31, 2017 and April 1, 2016
</td>
<td>
64
</td>
</tr>
<tr>
<td>
Consolidated Statements of Changes in Equity for the Fiscal Years Ended March 31, 2018, March 31, 2017 and April 1, 2016
</td>
<td>
66
</td>
</tr>
<tr>
<td>
Notes to Consolidated Financial Statements
</td>
<td>
</td>
</tr>
<tr>
<td>
Note 1–Summary of Significant Accounting Policies
</td>
<td>
68
</td>
</tr>
<tr>
<td>
Note 2–Acquisitions
</td>
<td>
78
</td>
</tr>
<tr>
<td>
Note 3–Divestitures
</td>
<td>
85
</td>
</tr>
<tr>
<td>
Note 4–Earnings Per Share
</td>
<td>
86
</td>
</tr>
<tr>
<td>
Note 5–Receivables
</td>
<td>
87
</td>
</tr>
<tr>
<td>
Note 6–Fair Value
</td>
<td>
89
</td>
</tr>
<tr>
<td>
Note 7–Derivative Instruments
</td>
<td>
91
</td>
</tr>
<tr>
<td>
Note 8–Property and Equipment
</td>
<td>
93
</td>
</tr>
<tr>
<td>
Note 9–Intangible Assets
</td>
<td>
94
</td>
</tr>
<tr>
<td>
Note 10–Goodwill
</td>
<td>
95
</td>
</tr>
<tr>
<td>
Note 11–Income Taxes
</td>
<td>
96
</td>
</tr>
<tr>
<td>
Note 12–Debt
</td>
<td>
107
</td>
</tr>
<tr>
<td>
Note 13–Pension and Other Benefit Plans
</td>
<td>
110
</td>
</tr>
<tr>
<td>
Note 14–Stockholders' Equity
</td>
<td>
116
</td>
</tr>
<tr>
<td>
Note 15–Stock Incentive Plans
</td>
<td>
118
</td>
</tr>
<tr>
<td>
Note 16–Cash Flows
</td>
<td>
124
</td>
</tr>
<tr>
<td>
Note 17–Other Income/Expense
</td>
<td>
124
</td>
</tr>
<tr>
<td>
Note 18–Segment and Geographic Information
</td>
<td>
125
</td>
</tr>
<tr>
<td>
Note 19–Restructuring Costs
</td>
<td>
128
</td>
</tr>
<tr>
<td>
Note 20–Commitments and Contingencies
</td>
<td>
131
</td>
</tr>
<tr>
<td>
Note 21–Subsequent Events
</td>
<td>
137
</td>
</tr>
<tr>
<td>
Supplementary Data
</td>
<td>
138
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
ExhibitNumber
</td>
<td>
Description of Exhibit
</td>
</tr>
<tr>
<td>
2.1
</td>
<td>
Agreement and Plan of Merger, dated as of May 24, 2016, by and among Computer Sciences Corporation, Hewlett Packard Enterprise Company, Everett SpinCo, Inc. (now known as DXC Technology Company) and Everett Merger Sub, Inc. (incorporated by reference to Exhibit 2.1 to Hewlett Packard Enterprise Company's Current Report on Form 8-K (filed May 26, 2016) (file no. 001-37483))
</td>
</tr>
<tr>
<td>
2.2
</td>
<td>
First Amendment to Agreement and Plan of Merger, dated as of November 2, 2016, by and among Computer Sciences Corporation, Hewlett Packard Enterprise Company, Everett SpinCo, Inc. (now known as DXC Technology Company), New Everett Merger Sub Inc. and Everett Merger Sub Inc. (incorporated by reference to Exhibit 2.1 to Hewlett Packard Enterprise Company's Current Report on Form 8-K (filed November 2, 2016) (file no. 001-37483))
</td>
</tr>
<tr>
<td>
2.3
</td>
<td>
Second Amendment to Agreement and Plan of Merger, dated as of December 6, 2016, by and among Hewlett Packard Enterprise Company, Computer Sciences Corporation, Everett SpinCo, Inc. (now known as DXC Technology Company), Everett Merger Sub Inc. and New Everett Merger Sub Inc. (incorporated by reference to Exhibit 2.3 to Amendment No. 1 to Form 10 of Everett SpinCo, Inc. (filed December 7, 2016) (file no. 000-55712))
</td>
</tr>
<tr>
<td>
2.4
</td>
<td>
Separation and Distribution Agreement, dated May 24, 2016, between Hewlett Packard Enterprise Company and Everett SpinCo, Inc. (now known as DXC Technology Company) (incorporated by reference to Exhibit 2.2 to Hewlett Packard Enterprise Company's Form 8-K (filed May 26, 2016) (file no. 001-37483))
</td>
</tr>
<tr>
<td>
2.5
</td>
<td>
First Amendment to the Separation and Distribution Agreement, dated November 2, 2016, by and between Hewlett Packard Enterprise Company and Everett SpinCo, Inc. (now known as DXC Technology Company) (incorporated by reference to Exhibit 2.2 to Hewlett Packard Enterprise Company's Form 8-K (filed November 2, 2016) (file no. 001-37483))
</td>
</tr>
<tr>
<td>
2.6
</td>
<td>
Second Amendment to the Separation and Distribution Agreement, dated December 6, 2016, by and between Hewlett Packard Enterprise Company and Everett SpinCo, Inc. (now known as DXC Technology Company)(incorporated by reference to Exhibit 2.6 to Everett SpinCo, Inc.'s Amendment No. 1 to Form 10 (filed December 7, 2016) (file no. 000-55712))
</td>
</tr>
<tr>
<td>
2.7
</td>
<td>
Third Amendment to the Separation and Distribution Agreement, dated January 27, 2017, by and between Hewlett Packard Enterprise Company and Everett SpinCo, Inc. (now known as DXC Technology Company) (incorporated by reference to Exhibit 2.7 to Everett SpinCo Inc.'s Form 10 (filed February 14, 2017) (file no. 000-55712))
</td>
</tr>
<tr>
<td>
2.8
</td>
<td>
Fourth Amendment to the Separation and Distribution Agreement, dated March 31, 2017, by and between Hewlett Packard Enterprise Company and Everett SpinCo, Inc. (now known as DXC Technology Company) (incorporated by reference to Exhibit 2.6 to DXC Technology Company's Form 8-K (filed April 6, 2017) (file no. 001-38033))
</td>
</tr>
<tr>
<td>
2.9
</td>
<td>
Employee Matters Agreement, dated as of March 31, 2017, by and among the Computer Sciences Corporation, Hewlett Packard Enterprise Company and Everett SpinCo, Inc. (now known as DXC Technology Company) (incorporated by reference to Exhibit 2.1 to DXC Technology Company's Form 8-K (filed April 6, 2017) (file no. 001-38033))
</td>
</tr>
<tr>
<td>
2.10
</td>
<td>
Tax Matters Agreement, dated as of March 31, 2017, by and among the Computer Sciences Corporation, Hewlett Packard Enterprise Company and Everett SpinCo, Inc. (now known as DXC Technology Company) (incorporated by reference to Exhibit 2.2 to DXC Technology Company's Form 8-K (filed April 6, 2017) (file no. 001-38033))
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Buildings
</td>
<td>
Up to 40 years
</td>
</tr>
<tr>
<td>
Computers and related equipment
</td>
<td>
4 to 5 years
</td>
</tr>
<tr>
<td>
Furniture and other equipment
</td>
<td>
3 to 15 years
</td>
</tr>
<tr>
<td>
Leasehold improvements
</td>
<td>
Shorter of lease term or useful life up to 20 years
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
10.44*
</td>
<td>
Form of Director Indemnification Agreement (incorporated by reference to Exhibit 10.16 to the Company’s Periodic Report on Form 8-K (filed April 6, 2017) (file no. 001-38033))
</td>
</tr>
<tr>
<td>
10.45*
</td>
<td>
Form of Career Share Restricted Stock Unit Award under the DXC Technology Company 2017 Omnibus Incentive Plan (filed herewith)
</td>
</tr>
<tr>
<td>
12.1
</td>
<td>
Calculation of Ratio of Earnings to Fixed Charges and Ratio of Earnings to Combined Fixed Charges and Preference Dividends
</td>
</tr>
<tr>
<td>
21
</td>
<td>
Significant Active Subsidiaries and Affiliates of the Registrant (filed herewith)
</td>
</tr>
<tr>
<td>
23
</td>
<td>
Consent of Independent Registered Public Accounting Firm
</td>
</tr>
<tr>
<td>
31.1
</td>
<td>
Section 302 Certification of the Chief Executive Officer
</td>
</tr>
<tr>
<td>
31.2
</td>
<td>
Section 302 Certification of the Chief Financial Officer
</td>
</tr>
<tr>
<td>
32.1
</td>
<td>
Section 906 Certification of Chief Executive Officer
</td>
</tr>
<tr>
<td>
32.2
</td>
<td>
Section 906 Certification of Chief Financial Officer
</td>
</tr>
<tr>
<td>
101.INS
</td>
<td>
XBRL Instance
</td>
</tr>
<tr>
<td>
101.SCH
</td>
<td>
XBRL Taxonomy Extension Schema
</td>
</tr>
<tr>
<td>
101.CAL
</td>
<td>
XBRL Taxonomy Extension Calculation
</td>
</tr>
<tr>
<td>
101.LAB
</td>
<td>
XBRL Taxonomy Extension Labels
</td>
</tr>
<tr>
<td>
101.PRE
</td>
<td>
XBRL Taxonomy Extension Presentation
</td>
</tr>
<tr>
<td>
</td>
<td>
*Management contract or compensatory plan or agreement
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
As of March 31, 2018
</td>
</tr>
<tr>
<td>
</td>
<td>
Reserved for issuance
</td>
<td>
Available for future grants
</td>
</tr>
<tr>
<td>
DXC Employee Equity Plan
</td>
<td>
34,200,000
</td>
<td>
22,302,423
</td>
</tr>
<tr>
<td>
DXC Director Equity Plan
</td>
<td>
230,000
</td>
<td>
123,634
</td>
</tr>
<tr>
<td>
DXC Share Purchase Plan
</td>
<td>
250,000
</td>
<td>
248,526
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
34,680,000
</td>
<td>
22,674,583
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="4">
Year Ended December 31, 2010
</td>
</tr>
<tr>
<td>
</td>
<td>
FirstQuarter(2)
</td>
<td>
SecondQuarter
</td>
<td>
ThirdQuarter
</td>
<td>
FourthQuarter(3)
</td>
</tr>
<tr>
<td>
</td>
<td colspan="4">
(in millions, except per share amounts)
</td>
</tr>
<tr>
<td>
Revenues
</td>
<td>
$3,023
</td>
<td>
$1,756
</td>
<td>
$1,908
</td>
<td>
$2,098
</td>
</tr>
<tr>
<td>
Operating income
</td>
<td>
357
</td>
<td>
263
</td>
<td>
327
</td>
<td>
302
</td>
</tr>
<tr>
<td>
Net income
</td>
<td>
114
</td>
<td>
81
</td>
<td>
123
</td>
<td>
124
</td>
</tr>
<tr>
<td>
Basic earnings per share(1)
</td>
<td>
$0.29
</td>
<td>
$0.20
</td>
<td>
$0.29
</td>
<td>
$0.29
</td>
</tr>
<tr>
<td>
Diluted earnings per share(1)
</td>
<td>
$0.29
</td>
<td>
$0.20
</td>
<td>
$0.29
</td>
<td>
$0.29
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
Moody’s
</td>
<td colspan="2">
S&P
</td>
<td colspan="2">
Fitch
</td>
</tr>
<tr>
<td>
Company/Instrument
</td>
<td>
Rating
</td>
<td>
Outlook (1)
</td>
<td>
Rating
</td>
<td>
Outlook(2)
</td>
<td>
Rating
</td>
<td>
Outlook(3)
</td>
</tr>
<tr>
<td>
CenterPoint Energy SeniorUnsecured Debt
</td>
<td>
Ba1
</td>
<td>
Positive
</td>
<td>
BBB-
</td>
<td>
Stable
</td>
<td>
BBB-
</td>
<td>
Stable
</td>
</tr>
<tr>
<td>
CenterPoint Houston SeniorSecured Debt
</td>
<td>
A3
</td>
<td>
Stable
</td>
<td>
BBB+
</td>
<td>
Stable
</td>
<td>
A-
</td>
<td>
Stable
</td>
</tr>
<tr>
<td>
CERC Corp. Senior UnsecuredDebt
</td>
<td>
Baa3
</td>
<td>
Positive
</td>
<td>
BBB
</td>
<td>
Stable
</td>
<td>
BBB
</td>
<td>
Stable
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Year Ended December 31,
</td>
</tr>
<tr>
<td>
</td>
<td>
2008
</td>
<td>
2009
</td>
<td>
2010
</td>
</tr>
<tr>
<td>
</td>
<td colspan="3">
(in millions)
</td>
</tr>
<tr>
<td>
Current income tax expense (benefit):
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Federal
</td>
<td>
$(221)
</td>
<td>
$(103)
</td>
<td>
$40
</td>
</tr>
<tr>
<td>
State
</td>
<td>
11
</td>
<td>
10
</td>
<td>
24
</td>
</tr>
<tr>
<td>
Total current expense (benefit)
</td>
<td>
(210)
</td>
<td>
(93)
</td>
<td>
64
</td>
</tr>
<tr>
<td>
Deferred income tax expense (benefit):
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Federal
</td>
<td>
437
</td>
<td>
251
</td>
<td>
220
</td>
</tr>
<tr>
<td>
State
</td>
<td>
50
</td>
<td>
18
</td>
<td>
(21)
</td>
</tr>
<tr>
<td>
Total deferred expense
</td>
<td>
487
</td>
<td>
269
</td>
<td>
199
</td>
</tr>
<tr>
<td>
Total income tax expense
</td>
<td>
$277
</td>
<td>
$176
</td>
<td>
$263
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
December 31,
</td>
</tr>
<tr>
<td>
</td>
<td>
2009
</td>
<td>
2010
</td>
</tr>
<tr>
<td>
</td>
<td colspan="2">
(in millions)
</td>
</tr>
<tr>
<td>
Securitized regulatory assets
</td>
<td>
$2,886
</td>
<td>
$2,597
</td>
</tr>
<tr>
<td>
Unrecognized equity return
</td>
<td>
(232)
</td>
<td>
(216)
</td>
</tr>
<tr>
<td>
Unamortized loss on reacquired debt
</td>
<td>
67
</td>
<td>
61
</td>
</tr>
<tr>
<td>
Pension and postretirement-related regulatory asset (1)
</td>
<td>
813
</td>
<td>
838
</td>
</tr>
<tr>
<td>
Other long-term regulatory assets
</td>
<td>
143
</td>
<td>
166
</td>
</tr>
<tr>
<td>
Total regulatory assets (1)
</td>
<td>
3,677
</td>
<td>
3,446
</td>
</tr>
<tr>
<td>
Estimated removal costs
</td>
<td>
818
</td>
<td>
868
</td>
</tr>
<tr>
<td>
Other long-term regulatory liabilities
</td>
<td>
103
</td>
<td>
121
</td>
</tr>
<tr>
<td>
Total regulatory liabilities
</td>
<td>
921
</td>
<td>
989
</td>
</tr>
<tr>
<td>
Total regulatory assets and liabilities, net
</td>
<td>
$2,756
</td>
<td>
$2,457
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Year Ended December 31,
</td>
</tr>
<tr>
<td>
Revenues by Products and Services:
</td>
<td>
2008
</td>
<td>
2009
</td>
<td>
2010
</td>
</tr>
<tr>
<td>
</td>
<td colspan="3">
(in millions)
</td>
</tr>
<tr>
<td>
Electric delivery sales
</td>
<td>
$1,916
</td>
<td>
$2,013
</td>
<td>
$2,205
</td>
</tr>
<tr>
<td>
Retail gas sales
</td>
<td>
6,216
</td>
<td>
4,540
</td>
<td>
4,412
</td>
</tr>
<tr>
<td>
Wholesale gas sales
</td>
<td>
2,295
</td>
<td>
902
</td>
<td>
1,250
</td>
</tr>
<tr>
<td>
Gas transport
</td>
<td>
756
</td>
<td>
691
</td>
<td>
785
</td>
</tr>
<tr>
<td>
Energy products and services
</td>
<td>
139
</td>
<td>
135
</td>
<td>
133
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
$11,322
</td>
<td>
$8,281
</td>
<td>
$8,785
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="4">
Outstanding OptionsYear Ended December 31, 2010
</td>
</tr>
<tr>
<td>
</td>
<td>
Shares (Thousands)
</td>
<td>
Weighted-AverageExercise Price
</td>
<td>
Remaining AverageContractualLife (Years)
</td>
<td>
AggregateIntrinsicValue (Millions)
</td>
</tr>
<tr>
<td>
Outstanding at December 31, 2009
</td>
<td>
4,513
</td>
<td>
$17.95
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Expired
</td>
<td>
(399)
</td>
<td>
17.25
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Cancelled
</td>
<td>
(207)
</td>
<td>
31.48
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Exercised
</td>
<td>
(830)
</td>
<td>
10.05
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Outstanding at December 31, 2010
</td>
<td>
3,077
</td>
<td>
19.27
</td>
<td>
1.3
</td>
<td>
$12
</td>
</tr>
<tr>
<td>
Exercisable at December 31, 2010
</td>
<td>
3,077
</td>
<td>
19.27
</td>
<td>
1.3
</td>
<td>
12
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Year Ended December 31,
</td>
</tr>
<tr>
<td>
</td>
<td>
2008
</td>
<td>
2009
</td>
<td>
2010
</td>
</tr>
<tr>
<td>
Revenues
</td>
<td>
$650
</td>
<td>
$598
</td>
<td>
$601
</td>
</tr>
<tr>
<td>
Expenses:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Natural gas
</td>
<td>
155
</td>
<td>
97
</td>
<td>
93
</td>
</tr>
<tr>
<td>
Operation and maintenance
</td>
<td>
133
</td>
<td>
166
</td>
<td>
153
</td>
</tr>
<tr>
<td>
Depreciation and amortization
</td>
<td>
46
</td>
<td>
48
</td>
<td>
52
</td>
</tr>
<tr>
<td>
Taxes other than income taxes
</td>
<td>
23
</td>
<td>
31
</td>
<td>
33
</td>
</tr>
<tr>
<td>
Total expenses
</td>
<td>
357
</td>
<td>
342
</td>
<td>
331
</td>
</tr>
<tr>
<td>
Operating Income
</td>
<td>
$293
</td>
<td>
$256
</td>
<td>
$270
</td>
</tr>
<tr>
<td>
Equity in earnings of unconsolidated affiliates
</td>
<td>
$36
</td>
<td>
$7
</td>
<td>
$19
</td>
</tr>
<tr>
<td>
Transportation throughput (in Bcf)
</td>
<td>
1,538
</td>
<td>
1,592
</td>
<td>
1,693
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="4">
Outstanding and Non-Vested SharesYear Ended December 31, 2010
</td>
</tr>
<tr>
<td>
</td>
<td>
Shares (Thousands)
</td>
<td>
Weighted-AverageGrant DateFair Value
</td>
<td>
Remaining AverageContractualLife (Years)
</td>
<td>
Aggregate Intrinsic Value (Millions)
</td>
</tr>
<tr>
<td>
Outstanding at December 31, 2009
</td>
<td>
2,583
</td>
<td>
$14.62
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Granted
</td>
<td>
1,130
</td>
<td>
14.21
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Forfeited or cancelled
</td>
<td>
(350)
</td>
<td>
17.24
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Vested and released to participants
</td>
<td>
(295)
</td>
<td>
18.09
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Outstanding at December 31, 2010
</td>
<td>
3,068
</td>
<td>
13.84
</td>
<td>
1.1
</td>
<td>
$37
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
Residential
</td>
<td>
Commercial/Industrial
</td>
<td>
Total Customers
</td>
</tr>
<tr>
<td>
Arkansas
</td>
<td>
390,668
</td>
<td>
48,033
</td>
<td>
438,701
</td>
</tr>
<tr>
<td>
Louisiana
</td>
<td>
232,135
</td>
<td>
17,347
</td>
<td>
249,482
</td>
</tr>
<tr>
<td>
Minnesota
</td>
<td>
738,868
</td>
<td>
67,489
</td>
<td>
806,357
</td>
</tr>
<tr>
<td>
Mississippi
</td>
<td>
109,608
</td>
<td>
12,683
</td>
<td>
122,291
</td>
</tr>
<tr>
<td>
Oklahoma
</td>
<td>
93,388
</td>
<td>
10,620
</td>
<td>
104,008
</td>
</tr>
<tr>
<td>
Texas
</td>
<td>
1,451,666
</td>
<td>
90,719
</td>
<td>
1,542,385
</td>
</tr>
<tr>
<td>
Total Gas Operations
</td>
<td>
3,016,333
</td>
<td>
246,891
</td>
<td>
3,263,224
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Natural Gas Distribution
</td>
<td>
$746
</td>
</tr>
<tr>
<td>
Interstate Pipelines
</td>
<td>
579
</td>
</tr>
<tr>
<td>
Competitive Natural Gas Sales and Services
</td>
<td>
335
</td>
</tr>
<tr>
<td>
Field Services
</td>
<td>
25
</td>
</tr>
<tr>
<td>
Other Operations
</td>
<td>
11
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
$1,696
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Year Ended December 31,
</td>
</tr>
<tr>
<td>
</td>
<td>
2008
</td>
<td>
2009
</td>
<td>
2010
</td>
</tr>
<tr>
<td>
</td>
<td colspan="3">
(in millions,
</td>
</tr>
<tr>
<td>
</td>
<td colspan="3">
except per share amounts)
</td>
</tr>
<tr>
<td>
Revenues
</td>
<td>
$11,322
</td>
<td>
$8,281
</td>
<td>
$8,785
</td>
</tr>
<tr>
<td>
Expenses:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Natural gas
</td>
<td>
7,466
</td>
<td>
4,371
</td>
<td>
4,574
</td>
</tr>
<tr>
<td>
Operation and maintenance
</td>
<td>
1,502
</td>
<td>
1,664
</td>
<td>
1,719
</td>
</tr>
<tr>
<td>
Depreciation and amortization
</td>
<td>
708
</td>
<td>
743
</td>
<td>
864
</td>
</tr>
<tr>
<td>
Taxes other than income taxes
</td>
<td>
373
</td>
<td>
379
</td>
<td>
379
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
10,049
</td>
<td>
7,157
</td>
<td>
7,536
</td>
</tr>
<tr>
<td>
Operating Income
</td>
<td>
1,273
</td>
<td>
1,124
</td>
<td>
1,249
</td>
</tr>
<tr>
<td>
Other Income (Expense):
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Gain (loss) on marketable securities
</td>
<td>
(139)
</td>
<td>
82
</td>
<td>
67
</td>
</tr>
<tr>
<td>
Gain (loss) on indexed debt securities
</td>
<td>
128
</td>
<td>
(68)
</td>
<td>
(31)
</td>
</tr>
<tr>
<td>
Interest and other finance charges
</td>
<td>
(468)
</td>
<td>
(513)
</td>
<td>
(481)
</td>
</tr>
<tr>
<td>
Interest on transition and system restoration bonds
</td>
<td>
(136)
</td>
<td>
(131)
</td>
<td>
(140)
</td>
</tr>
<tr>
<td>
Equity in earnings of unconsolidated affiliates
</td>
<td>
51
</td>
<td>
15
</td>
<td>
29
</td>
</tr>
<tr>
<td>
Other, net
</td>
<td>
14
</td>
<td>
39
</td>
<td>
12
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
(550)
</td>
<td>
(576)
</td>
<td>
(544)
</td>
</tr>
<tr>
<td>
Income Before Income Taxes
</td>
<td>
723
</td>
<td>
548
</td>
<td>
705
</td>
</tr>
<tr>
<td>
Income tax expense
</td>
<td>
(277)
</td>
<td>
(176)
</td>
<td>
(263)
</td>
</tr>
<tr>
<td>
Net Income
</td>
<td>
$446
</td>
<td>
$372
</td>
<td>
$442
</td>
</tr>
<tr>
<td>
Basic Earnings Per Share
</td>
<td>
$1.32
</td>
<td>
$1.02
</td>
<td>
$1.08
</td>
</tr>
<tr>
<td>
Diluted Earnings Per Share
</td>
<td>
$1.30
</td>
<td>
$1.01
</td>
<td>
$1.07
</td>
</tr>
<tr>
<td>
Dividends Declared Per Share
</td>
<td>
$0.73
</td>
<td>
$0.76
</td>
<td>
$0.78
</td>
</tr>
<tr>
<td>
Weighted Average Shares Outstanding, Basic
</td>
<td>
336
</td>
<td>
365
</td>
<td>
410
</td>
</tr>
<tr>
<td>
Weighted Average Shares Outstanding, Diluted
</td>
<td>
344
</td>
<td>
368
</td>
<td>
413
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Year Ended December 31,
</td>
</tr>
<tr>
<td>
</td>
<td>
2008
</td>
<td>
2009
</td>
<td>
2010
</td>
</tr>
<tr>
<td>
Revenues
</td>
<td>
$11,322
</td>
<td>
$8,281
</td>
<td>
$8,785
</td>
</tr>
<tr>
<td>
Expenses
</td>
<td>
10,049
</td>
<td>
7,157
</td>
<td>
7,536
</td>
</tr>
<tr>
<td>
Operating Income
</td>
<td>
1,273
</td>
<td>
1,124
</td>
<td>
1,249
</td>
</tr>
<tr>
<td>
Gain (Loss) on Marketable Securities
</td>
<td>
(139)
</td>
<td>
82
</td>
<td>
67
</td>
</tr>
<tr>
<td>
Gain (Loss) on Indexed Debt Securities
</td>
<td>
128
</td>
<td>
(68)
</td>
<td>
(31)
</td>
</tr>
<tr>
<td>
Interest and Other Finance Charges
</td>
<td>
(468)
</td>
<td>
(513)
</td>
<td>
(481)
</td>
</tr>
<tr>
<td>
Interest on Transition and System Restoration Bonds
</td>
<td>
(136)
</td>
<td>
(131)
</td>
<td>
(140)
</td>
</tr>
<tr>
<td>
Equity in Earnings of Unconsolidated Affiliates
</td>
<td>
51
</td>
<td>
15
</td>
<td>
29
</td>
</tr>
<tr>
<td>
Other Income, net
</td>
<td>
14
</td>
<td>
39
</td>
<td>
12
</td>
</tr>
<tr>
<td>
Income Before Income Taxes
</td>
<td>
723
</td>
<td>
548
</td>
<td>
705
</td>
</tr>
<tr>
<td>
Income Tax Expense
</td>
<td>
(277)
</td>
<td>
(176)
</td>
<td>
(263)
</td>
</tr>
<tr>
<td>
Net Income
</td>
<td>
$446
</td>
<td>
$372
</td>
<td>
$442
</td>
</tr>
<tr>
<td>
Basic Earnings Per Share
</td>
<td>
$1.32
</td>
<td>
$1.02
</td>
<td>
$1.08
</td>
</tr>
<tr>
<td>
Diluted Earnings Per Share
</td>
<td>
$1.30
</td>
<td>
$1.01
</td>
<td>
$1.07
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="4">
Year Ended December 31, 2009
</td>
</tr>
<tr>
<td>
</td>
<td>
FirstQuarter
</td>
<td>
SecondQuarter
</td>
<td>
ThirdQuarter
</td>
<td>
FourthQuarter
</td>
</tr>
<tr>
<td>
</td>
<td colspan="4">
(in millions, except per share amounts)
</td>
</tr>
<tr>
<td>
Revenues
</td>
<td>
$2,766
</td>
<td>
$1,640
</td>
<td>
$1,576
</td>
<td>
$2,299
</td>
</tr>
<tr>
<td>
Operating income
</td>
<td>
285
</td>
<td>
253
</td>
<td>
287
</td>
<td>
299
</td>
</tr>
<tr>
<td>
Net income
</td>
<td>
67
</td>
<td>
86
</td>
<td>
114
</td>
<td>
105
</td>
</tr>
<tr>
<td>
Basic earnings per share(1)
</td>
<td>
$0.19
</td>
<td>
$0.24
</td>
<td>
$0.31
</td>
<td>
$0.27
</td>
</tr>
<tr>
<td>
Diluted earnings per share(1)
</td>
<td>
$0.19
</td>
<td>
$0.24
</td>
<td>
$0.31
</td>
<td>
$0.27
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
December 31, 2009
</td>
<td colspan="2">
December 31, 2010
</td>
</tr>
<tr>
<td>
</td>
<td>
CarryingAmount
</td>
<td>
FairValue
</td>
<td>
CarryingAmount
</td>
<td>
FairValue
</td>
</tr>
<tr>
<td>
</td>
<td colspan="4">
(in millions)
</td>
</tr>
<tr>
<td>
Financial liabilities:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Long-term debt
</td>
<td>
$9,900
</td>
<td>
$10,413
</td>
<td>
$9,303
</td>
<td>
$10,071
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
2013
</td>
<td>
2012
</td>
</tr>
<tr>
<td>
$1.1 billion unsecured revolving credit facility, LIBOR plus 1.75%, currently 1.91% and a facility fee of 0.3675%, due 2016
</td>
<td>
$435,000
</td>
<td>
$48,000
</td>
</tr>
<tr>
<td>
$850 million unsecured revolving credit facility, LIBOR plus 1.75%, currently 1.92% and a facility fee of 0.3675%, due 2018
</td>
<td>
295,000
</td>
<td>
12,000
</td>
</tr>
<tr>
<td>
Unsecured senior notes and senior debentures, 5.25% to 11.88%, due 2015, 2016, 2018, 2022 and 2027
</td>
<td>
1,703,040
</td>
<td>
2,698,531
</td>
</tr>
<tr>
<td>
€745 million unsecured senior notes, 5.63%, due 2014
</td>
<td>
1,028,126
</td>
<td>
1,004,940
</td>
</tr>
<tr>
<td>
$570 million unsecured term loan, 4.02%, due through 2013
</td>
<td>
—
</td>
<td>
40,714
</td>
</tr>
<tr>
<td>
$589 million unsecured term loan, 4.47%, due through 2014
</td>
<td>
42,071
</td>
<td>
126,214
</td>
</tr>
<tr>
<td>
$530 million unsecured term loan, LIBOR plus 0.51%, currently 0.87%, due through 2015
</td>
<td>
113,571
</td>
<td>
189,286
</td>
</tr>
<tr>
<td>
$519 million unsecured term loan, LIBOR plus 0.45%, currently 0.81%, due through 2020
</td>
<td>
302,835
</td>
<td>
346,097
</td>
</tr>
<tr>
<td>
$420 million unsecured term loan, 5.41%, due through 2021
<sup>
(1)
</sup>
</td>
<td>
274,974
</td>
<td>
318,230
</td>
</tr>
<tr>
<td>
$420 million unsecured term loan, LIBOR plus 2.10%, currently 2.46%, due through 2021
<sup>
(1)
</sup>
</td>
<td>
280,000
</td>
<td>
315,000
</td>
</tr>
<tr>
<td>
€159.4 million unsecured term loan, EURIBOR plus 1.58%, currently 1.92%, due through 2021
<sup>
(1)
</sup>
</td>
<td>
146,452
</td>
<td>
157,643
</td>
</tr>
<tr>
<td>
$524.5 million unsecured term loan, LIBOR plus 0.50%, currently 0.90%, due through 2021
</td>
<td>
349,667
</td>
<td>
393,375
</td>
</tr>
<tr>
<td>
$566.1 million unsecured term loan, LIBOR plus 0.37%, currently 0.74%, due through 2022
</td>
<td>
400,966
</td>
<td>
448,138
</td>
</tr>
<tr>
<td>
$1.1 billion unsecured term loan, LIBOR plus 2.10%, currently 2.46%, due through 2022
<sup>
(2)
</sup>
</td>
<td>
690,978
</td>
<td>
767,754
</td>
</tr>
<tr>
<td>
$632.0 million unsecured term loan, LIBOR plus 0.40%, currently 0.80%, due through 2023
</td>
<td>
526,632
</td>
<td>
579,295
</td>
</tr>
<tr>
<td>
$673.5 million unsecured term loan, LIBOR plus 0.40%, currently 0.77%, due through 2024
</td>
<td>
617,351
</td>
<td>
673,474
</td>
</tr>
<tr>
<td>
$290.0 million unsecured term loan, LIBOR plus 2.5%, currently 2.67%, due 2016
</td>
<td>
290,000
</td>
<td>
290,000
</td>
</tr>
<tr>
<td>
€365 million unsecured term loan, EURIBOR plus 3.0%, currently 3.23%, due 2017
</td>
<td>
502,934
</td>
<td>
—
</td>
</tr>
<tr>
<td>
$7.3 million unsecured term loan, LIBOR plus 2.5%, currently 2.93%, due through 2023
</td>
<td>
5,391
</td>
<td>
5,867
</td>
</tr>
<tr>
<td>
$30.3 million unsecured term loan, LIBOR plus 3.75%, currently 3.99%, due through 2021
</td>
<td>
15,073
</td>
<td>
22,458
</td>
</tr>
<tr>
<td>
Capital lease obligations
</td>
<td>
54,743
</td>
<td>
52,931
</td>
</tr>
<tr>
<td>
</td>
<td>
8,074,804
</td>
<td>
8,489,947
</td>
</tr>
<tr>
<td>
Less-current portion
</td>
<td>
(1,563,378)
</td>
<td>
(1,519,483)
</td>
</tr>
<tr>
<td>
Long-term portion
</td>
<td>
$6,511,426
</td>
<td>
$6,970,464
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="2">
NYSECommon Stock
</td>
<td colspan="2">
OSECommon Stock
<sup>
(1)
</sup>
</td>
</tr>
<tr>
<td>
</td>
<td>
High
</td>
<td>
Low
</td>
<td>
High
</td>
<td>
Low
</td>
</tr>
<tr>
<td>
2013
</td>
<td>
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Fourth Quarter
</td>
<td>
$47.66
</td>
<td>
$35.97
</td>
<td>
292.60
</td>
<td>
216.10
</td>
</tr>
<tr>
<td>
Third Quarter
</td>
<td>
40.71
</td>
<td>
33.31
</td>
<td>
241.80
</td>
<td>
201.40
</td>
</tr>
<tr>
<td>
Second Quarter
</td>
<td>
38.62
</td>
<td>
31.35
</td>
<td>
224.90
</td>
<td>
178.00
</td>
</tr>
<tr>
<td>
First Quarter
</td>
<td>
38.56
</td>
<td>
31.72
</td>
<td>
213.50
</td>
<td>
184.10
</td>
</tr>
<tr>
<td>
2012
</td>
<td>
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Fourth Quarter
</td>
<td>
$36.18
</td>
<td>
$30.26
</td>
<td>
202.50
</td>
<td>
169.70
</td>
</tr>
<tr>
<td>
Third Quarter
</td>
<td>
31.97
</td>
<td>
22.45
</td>
<td>
182.90
</td>
<td>
134.50
</td>
</tr>
<tr>
<td>
Second Quarter
</td>
<td>
29.45
</td>
<td>
22.12
</td>
<td>
167.60
</td>
<td>
134.60
</td>
</tr>
<tr>
<td>
First Quarter
</td>
<td>
31.96
</td>
<td>
25.40
</td>
<td>
183.70
</td>
<td>
149.30
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
</td>
<td colspan="3">
Fair Value Measurements at December 31, 2013 Using
</td>
<td>
</td>
<td colspan="3">
Fair Value Measurements at December 31, 2012 Using
</td>
</tr>
<tr>
<td>
Description
</td>
<td>
Total Carrying Amount
</td>
<td>
Total Fair Value
</td>
<td>
Level 3
</td>
<td>
Total Impairment
</td>
<td>
Total Carrying Amount
</td>
<td>
Total Fair Value
</td>
<td>
Level 3
</td>
<td>
Total Impairment
</td>
</tr>
<tr>
<td>
Pullmantur Goodwill
<sup>
(1)
</sup>
</td>
<td>
$152,107
</td>
<td>
$—
</td>
<td>
—
</td>
<td>
$—
</td>
<td>
$145,539
</td>
<td>
$145,539
</td>
<td>
145,539
</td>
<td>
$319,214
</td>
</tr>
<tr>
<td>
Indefinite-life intangible asset-Pullmantur trademarks and trade names
<sup>
(2)
</sup>
</td>
<td>
$214,112
</td>
<td>
$—
</td>
<td>
—
</td>
<td>
$—
</td>
<td>
$204,866
</td>
<td>
$204,866
</td>
<td>
204,866
</td>
<td>
$17,356
</td>
</tr>
<tr>
<td>
Long-lived assets-Pullmantur aircraft
<sup>
(3)
</sup>
</td>
<td>
$49,507
</td>
<td>
$49,507
</td>
<td>
49,507
</td>
<td>
$13,529
</td>
<td>
$62,288
</td>
<td>
$62,288
</td>
<td>
62,288
</td>
<td>
$48,874
</td>
</tr>
<tr>
<td>
Assets held for sale
<sup>
(4)
</sup>
</td>
<td>
$—
</td>
<td>
$—
</td>
<td>
—
</td>
<td>
$19,985
</td>
<td>
$19,168
</td>
<td>
$—
</td>
<td>
—
</td>
<td>
$—
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Year
</td>
<td>
North America(1)
</td>
<td>
Europe(2)
</td>
</tr>
<tr>
<td>
2009
</td>
<td>
3.0%
</td>
<td>
1.0%
</td>
</tr>
<tr>
<td>
2010
</td>
<td>
3.1%
</td>
<td>
1.1%
</td>
</tr>
<tr>
<td>
2011
</td>
<td>
3.4%
</td>
<td>
1.1%
</td>
</tr>
<tr>
<td>
2012
</td>
<td>
3.3%
</td>
<td>
1.2%
</td>
</tr>
<tr>
<td>
2013
</td>
<td>
3.4%
</td>
<td>
1.2%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
</td>
<td colspan="2">
Amount of Gain (Loss) Recognizedin Income on Derivative
</td>
</tr>
<tr>
<td>
Derivatives Not Designated as HedgingInstruments under ASC 815-20
</td>
<td>
Location of Gain (Loss)Recognized in Incomeon Derivative
</td>
<td>
Year Ended December 31, 2013
</td>
<td>
Year Ended December 31, 2012
</td>
</tr>
<tr>
<td>
In thousands
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Foreign currency forward contracts
</td>
<td>
Other (expense) income
</td>
<td>
$(21,244)
</td>
<td>
$7,152
</td>
</tr>
<tr>
<td>
Fuel swaps
</td>
<td>
Other (expense) income
</td>
<td>
243
</td>
<td>
(3,058)
</td>
</tr>
<tr>
<td>
Fuel call options
</td>
<td>
Other (expense) income
</td>
<td>
(23)
</td>
<td>
(5,613)
</td>
</tr>
<tr>
<td>
</td>
<td>
</td>
<td>
$(21,024)
</td>
<td>
$(1,519)
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
2013
</td>
<td>
2012
</td>
</tr>
<tr>
<td>
Ships
</td>
<td>
$20,858,553
</td>
<td>
$20,855,606
</td>
</tr>
<tr>
<td>
Ship improvements
</td>
<td>
1,683,644
</td>
<td>
1,341,137
</td>
</tr>
<tr>
<td>
Ships under construction
</td>
<td>
563,676
</td>
<td>
169,274
</td>
</tr>
<tr>
<td>
Land, buildings and improvements, including leasehold improvements and port facilities
</td>
<td>
394,120
</td>
<td>
377,821
</td>
</tr>
<tr>
<td>
Computer hardware and software, transportation equipment and other
</td>
<td>
771,304
</td>
<td>
698,865
</td>
</tr>
<tr>
<td>
Total property and equipment
</td>
<td>
24,271,297
</td>
<td>
23,442,703
</td>
</tr>
<tr>
<td>
Less—accumulated depreciation and amortization
</td>
<td>
(6,753,545)
</td>
<td>
(5,991,669)
</td>
</tr>
<tr>
<td>
</td>
<td>
$17,517,752
</td>
<td>
$17,451,034
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Year
</td>
<td>
Weighted-AverageSupply ofBerthsMarketedGlobally(1)
</td>
<td>
Royal Caribbean Cruises Ltd. Total Berths
</td>
<td>
GlobalCruiseGuests(1)
</td>
<td>
North AmericanCruiseGuests(2)
</td>
<td>
EuropeanCruiseGuests (3)
</td>
</tr>
<tr>
<td>
2009
</td>
<td>
363,000
</td>
<td>
84,050
</td>
<td>
17,340,000
</td>
<td>
10,198,000
</td>
<td>
5,000,000
</td>
</tr>
<tr>
<td>
2010
</td>
<td>
391,000
</td>
<td>
92,300
</td>
<td>
18,800,000
</td>
<td>
10,781,000
</td>
<td>
5,540,000
</td>
</tr>
<tr>
<td>
2011
</td>
<td>
412,000
</td>
<td>
92,650
</td>
<td>
20,227,000
</td>
<td>
11,625,000
</td>
<td>
5,894,000
</td>
</tr>
<tr>
<td>
2012
</td>
<td>
425,000
</td>
<td>
98,650
</td>
<td>
20,898,000
</td>
<td>
11,640,000
</td>
<td>
6,139,000
</td>
</tr>
<tr>
<td>
2013
</td>
<td>
432,000
</td>
<td>
98,750
</td>
<td>
21,300,000
</td>
<td>
11,816,000
</td>
<td>
6,399,000
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Period
</td>
<td>
Total number of shares purchased
</td>
<td>
Average price paid per share
</td>
<td>
Total number of shares purchased as part of publicly announced plans or programs
</td>
<td>
Maximum number of shares that may yet be purchased under the plans or programs
</td>
</tr>
<tr>
<td>
November 1, 2014-November 30, 2014
<sup>
(1)
</sup>
</td>
<td>
3,500,000
</td>
<td>
$67.45
</td>
<td>
—
</td>
<td>
—
</td>
</tr>
<tr>
<td>
Total this quarter
</td>
<td>
3,500,000
</td>
<td>
$67.45
</td>
<td>
—
</td>
<td>
—
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
2014
</td>
<td>
2013
</td>
<td>
2012
</td>
</tr>
<tr>
<td>
Passenger ticket revenues:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
United States
</td>
<td>
53%
</td>
<td>
52%
</td>
<td>
51%
</td>
</tr>
<tr>
<td>
All other countries
</td>
<td>
47%
</td>
<td>
48%
</td>
<td>
49%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
2014
</td>
<td>
2013
</td>
</tr>
<tr>
<td>
Indefinite-life intangible asset—Pullmantur trademarks and trade names
</td>
<td>
$214,112
</td>
<td>
$204,866
</td>
</tr>
<tr>
<td>
Foreign currency translation adjustment
</td>
<td>
(26,074)
</td>
<td>
9,246
</td>
</tr>
<tr>
<td>
Total
</td>
<td>
$188,038
</td>
<td>
$214,112
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
2014
</td>
<td>
2013
</td>
</tr>
<tr>
<td>
Ships
</td>
<td>
$21,620,336
</td>
<td>
$20,858,553
</td>
</tr>
<tr>
<td>
Ship improvements
</td>
<td>
1,904,524
</td>
<td>
1,683,644
</td>
</tr>
<tr>
<td>
Ships under construction
</td>
<td>
561,779
</td>
<td>
563,676
</td>
</tr>
<tr>
<td>
Land, buildings and improvements, including leasehold improvements and port facilities
</td>
<td>
349,339
</td>
<td>
394,120
</td>
</tr>
<tr>
<td>
Computer hardware and software, transportation equipment and other
</td>
<td>
889,579
</td>
<td>
771,304
</td>
</tr>
<tr>
<td>
Total property and equipment
</td>
<td>
25,325,557
</td>
<td>
24,271,297
</td>
</tr>
<tr>
<td>
Less—accumulated depreciation and amortization
</td>
<td>
(7,089,989)
</td>
<td>
(6,753,545)
</td>
</tr>
<tr>
<td>
</td>
<td>
$18,235,568
</td>
<td>
$17,517,752
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Year
</td>
<td>
Weighted-AverageSupply ofBerthsMarketedGlobally(1)
</td>
<td>
Royal Caribbean Cruises Ltd. Total Berths
</td>
<td>
GlobalCruiseGuests(1)
</td>
<td>
North AmericanCruiseGuests(2)
</td>
<td>
EuropeanCruiseGuests (3)
</td>
</tr>
<tr>
<td>
2010
</td>
<td>
391,000
</td>
<td>
92,300
</td>
<td>
18,800,000
</td>
<td>
10,781,000
</td>
<td>
5,540,000
</td>
</tr>
<tr>
<td>
2011
</td>
<td>
412,000
</td>
<td>
92,650
</td>
<td>
20,227,000
</td>
<td>
11,625,000
</td>
<td>
5,894,000
</td>
</tr>
<tr>
<td>
2012
</td>
<td>
425,000
</td>
<td>
98,650
</td>
<td>
20,898,000
</td>
<td>
11,640,000
</td>
<td>
6,139,000
</td>
</tr>
<tr>
<td>
2013
</td>
<td>
432,000
</td>
<td>
98,750
</td>
<td>
21,300,000
</td>
<td>
11,816,000
</td>
<td>
6,399,000
</td>
</tr>
<tr>
<td>
2014
</td>
<td>
448,000
</td>
<td>
105,750
</td>
<td>
22,006,063
</td>
<td>
12,260,238
</td>
<td>
6,535,365
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive (Loss) Income into Income
</td>
</tr>
<tr>
<td>
Details about Accumulated Other Comprehensive Income (Loss) Components
</td>
<td>
Year Ended December 31, 2014
</td>
<td>
Year Ended December 31, 2013
</td>
<td>
Affected Line Item in Statements of Comprehensive Income (Loss)
</td>
</tr>
<tr>
<td>
Gain (loss) on cash flow derivative hedges:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Cross currency swaps
</td>
<td>
$(261)
</td>
<td>
$(3,531)
</td>
<td>
Interest expense, net of interest capitalized
</td>
</tr>
<tr>
<td>
Foreign currency forward contracts
</td>
<td>
(1,887)
</td>
<td>
(1,797)
</td>
<td>
Depreciation and amortization expenses
</td>
</tr>
<tr>
<td>
Foreign currency forward contracts
</td>
<td>
(4,291)
</td>
<td>
27,423
</td>
<td>
Other (expense) income
</td>
</tr>
<tr>
<td>
Foreign currency forward contracts
</td>
<td>
(57)
</td>
<td>
(440)
</td>
<td>
Interest expense, net of interest capitalized
</td>
</tr>
<tr>
<td>
Fuel swaps
</td>
<td>
(27,984)
</td>
<td>
47,944
</td>
<td>
Fuel
</td>
</tr>
<tr>
<td>
</td>
<td>
(34,480)
</td>
<td>
69,599
</td>
<td>
</td>
</tr>
<tr>
<td>
Amortization of defined benefit plans:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Actuarial loss
</td>
<td>
(888)
</td>
<td>
(1,753)
</td>
<td>
Payroll and related
</td>
</tr>
<tr>
<td>
Prior service costs
</td>
<td>
(836)
</td>
<td>
(836)
</td>
<td>
Payroll and related
</td>
</tr>
<tr>
<td>
</td>
<td>
(1,724)
</td>
<td>
(2,589)
</td>
<td>
</td>
</tr>
<tr>
<td>
Release of foreign cumulative translation due to sale of Pullmantur's non-core businesses:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Foreign cumulative translation
</td>
<td>
(1,997)
</td>
<td>
—
</td>
<td>
Other operating
</td>
</tr>
<tr>
<td>
Total reclassifications for the period
</td>
<td>
$(38,201)
</td>
<td>
$67,010
</td>
<td>
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Year
</td>
<td>
North America(1)
</td>
<td>
Europe(2)
</td>
</tr>
<tr>
<td>
2010
</td>
<td>
3.1%
</td>
<td>
1.1%
</td>
</tr>
<tr>
<td>
2011
</td>
<td>
3.4%
</td>
<td>
1.1%
</td>
</tr>
<tr>
<td>
2012
</td>
<td>
3.3%
</td>
<td>
1.2%
</td>
</tr>
<tr>
<td>
2013
</td>
<td>
3.4%
</td>
<td>
1.2%
</td>
</tr>
<tr>
<td>
2014
</td>
<td>
3.5%
</td>
<td>
1.3%
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
Ships
</td>
<td>
Years generally 30
</td>
</tr>
<tr>
<td>
Ship improvements
</td>
<td>
3-20
</td>
</tr>
<tr>
<td>
Buildings and improvements
</td>
<td>
10-40
</td>
</tr>
<tr>
<td>
Computer hardware and software
</td>
<td>
3-5
</td>
</tr>
<tr>
<td>
Transportation equipment and other
</td>
<td>
3-30
</td>
</tr>
<tr>
<td>
Leasehold improvements
</td>
<td>
Shorter of remaining lease term or useful life 3-30
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
2015
</td>
<td>
$18,154
</td>
</tr>
<tr>
<td>
2016
</td>
<td>
16,279
</td>
</tr>
<tr>
<td>
2017
</td>
<td>
12,471
</td>
</tr>
<tr>
<td>
2018
</td>
<td>
9,919
</td>
</tr>
<tr>
<td>
2019
</td>
<td>
7,699
</td>
</tr>
<tr>
<td>
Thereafter
</td>
<td>
124,997
</td>
</tr>
<tr>
<td>
</td>
<td>
$189,519
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td colspan="3">
Year Ended December 31,
</td>
</tr>
<tr>
<td>
</td>
<td>
2014
</td>
<td>
2013
</td>
<td>
2012
</td>
</tr>
<tr>
<td>
</td>
<td colspan="3">
(in thousands, except per share data)
</td>
</tr>
<tr>
<td>
Passenger ticket revenues
</td>
<td>
$5,893,847
</td>
<td>
$5,722,718
</td>
<td>
$5,594,595
</td>
</tr>
<tr>
<td>
Onboard and other revenues
</td>
<td>
2,180,008
</td>
<td>
2,237,176
</td>
<td>
2,093,429
</td>
</tr>
<tr>
<td>
Total revenues
</td>
<td>
8,073,855
</td>
<td>
7,959,894
</td>
<td>
7,688,024
</td>
</tr>
<tr>
<td>
Cruise operating expenses:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Commissions, transportation and other
</td>
<td>
1,372,785
</td>
<td>
1,314,595
</td>
<td>
1,289,255
</td>
</tr>
<tr>
<td>
Onboard and other
</td>
<td>
582,750
</td>
<td>
568,615
</td>
<td>
529,453
</td>
</tr>
<tr>
<td>
Payroll and related
</td>
<td>
847,641
</td>
<td>
841,737
</td>
<td>
828,198
</td>
</tr>
<tr>
<td>
Food
</td>
<td>
478,130
</td>
<td>
469,653
</td>
<td>
449,649
</td>
</tr>
<tr>
<td>
Fuel
</td>
<td>
947,391
</td>
<td>
924,414
</td>
<td>
909,691
</td>
</tr>
<tr>
<td>
Other operating
</td>
<td>
1,077,584
</td>
<td>
1,186,256
</td>
<td>
1,151,188
</td>
</tr>
<tr>
<td>
Total cruise operating expenses
</td>
<td>
5,306,281
</td>
<td>
5,305,270
</td>
<td>
5,157,434
</td>
</tr>
<tr>
<td>
Marketing, selling and administrative expenses
</td>
<td>
1,048,952
</td>
<td>
1,044,819
</td>
<td>
1,011,543
</td>
</tr>
<tr>
<td>
Depreciation and amortization expenses
</td>
<td>
772,445
</td>
<td>
754,711
</td>
<td>
730,493
</td>
</tr>
<tr>
<td>
Impairment of Pullmantur related assets
</td>
<td>
—
</td>
<td>
—
</td>
<td>
385,444
</td>
</tr>
<tr>
<td>
Restructuring and related impairment charges
</td>
<td>
4,318
</td>
<td>
56,946
</td>
<td>
—
</td>
</tr>
<tr>
<td>
</td>
<td>
7,131,996
</td>
<td>
7,161,746
</td>
<td>
7,284,914
</td>
</tr>
<tr>
<td>
Operating Income
</td>
<td>
941,859
</td>
<td>
798,148
</td>
<td>
403,110
</td>
</tr>
<tr>
<td>
Other income (expense):
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Interest income
</td>
<td>
10,344
</td>
<td>
13,898
</td>
<td>
21,331
</td>
</tr>
<tr>
<td>
Interest expense, net of interest capitalized
</td>
<td>
(258,299)
</td>
<td>
(332,422)
</td>
<td>
(355,785)
</td>
</tr>
<tr>
<td>
Extinguishment of unsecured senior notes
</td>
<td>
—
</td>
<td>
(4,206)
</td>
<td>
(7,501)
</td>
</tr>
<tr>
<td>
Other income (expense) (including $33.5 million deferred tax benefit related to the reversal of a valuation allowance in 2014 and ($28.5) million net deferred tax expense related to impairments in 2012)
</td>
<td>
70,242
</td>
<td>
(1,726)
</td>
<td>
(42,868)
</td>
</tr>
<tr>
<td>
</td>
<td>
(177,713)
</td>
<td>
(324,456)
</td>
<td>
(384,823)
</td>
</tr>
<tr>
<td>
Net Income
</td>
<td>
$764,146
</td>
<td>
$473,692
</td>
<td>
$18,287
</td>
</tr>
<tr>
<td>
Basic Earnings per Share:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Net income
</td>
<td>
$3.45
</td>
<td>
$2.16
</td>
<td>
$0.08
</td>
</tr>
<tr>
<td>
Diluted Earnings per Share:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Net income
</td>
<td>
$3.43
</td>
<td>
$2.14
</td>
<td>
$0.08
</td>
</tr>
<tr>
<td>
Comprehensive (Loss) Income
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Net Income
</td>
<td>
$764,146
</td>
<td>
$473,692
</td>
<td>
$18,287
</td>
</tr>
<tr>
<td>
Other comprehensive (loss) income:
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Foreign currency translation adjustments
</td>
<td>
(26,102)
</td>
<td>
1,529
</td>
<td>
(2,764)
</td>
</tr>
<tr>
<td>
Change in defined benefit plans
</td>
<td>
(7,213)
</td>
<td>
10,829
</td>
<td>
(4,567)
</td>
</tr>
<tr>
<td>
(Loss) gain on cash flow derivative hedges
</td>
<td>
(869,350)
</td>
<td>
127,829
</td>
<td>
(51,247)
</td>
</tr>
<tr>
<td>
Total other comprehensive (loss) income
</td>
<td>
(902,665)
</td>
<td>
140,187
</td>
<td>
(58,578)
</td>
</tr>
<tr>
<td>
Comprehensive (Loss) Income
</td>
<td>
$(138,519)
</td>
<td>
$613,879
</td>
<td>
$(40,291)
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
Changes related to cash flow derivative hedges
</td>
<td>
Changes in definedbenefit plans
</td>
<td>
Foreign currency translation adjustments
</td>
<td>
Accumulated other comprehensive (loss) income
</td>
</tr>
<tr>
<td>
Accumulated comprehensive loss at January 1, 2013
</td>
<td>
$(84,505)
</td>
<td>
$(34,823)
</td>
<td>
$(15,188)
</td>
<td>
$(134,516)
</td>
</tr>
<tr>
<td>
Other comprehensive income before reclassifications
</td>
<td>
197,428
</td>
<td>
8,240
</td>
<td>
1,529
</td>
<td>
207,197
</td>
</tr>
<tr>
<td>
Amounts reclassified from accumulated other comprehensive income (loss)
</td>
<td>
(69,599)
</td>
<td>
2,589
</td>
<td>
—
</td>
<td>
(67,010)
</td>
</tr>
<tr>
<td>
Net current-period other comprehensive income
</td>
<td>
127,829
</td>
<td>
10,829
</td>
<td>
1,529
</td>
<td>
140,187
</td>
</tr>
<tr>
<td>
Accumulated comprehensive income (loss) at January 1, 2014
</td>
<td>
43,324
</td>
<td>
(23,994)
</td>
<td>
(13,659)
</td>
<td>
5,671
</td>
</tr>
<tr>
<td>
Other comprehensive loss before reclassifications
</td>
<td>
(903,830)
</td>
<td>
(8,937)
</td>
<td>
(28,099)
</td>
<td>
(940,866)
</td>
</tr>
<tr>
<td>
Amounts reclassified from accumulated other comprehensive income (loss)
</td>
<td>
34,480
</td>
<td>
1,724
</td>
<td>
1,997
</td>
<td>
38,201
</td>
</tr>
<tr>
<td>
Net current-period other comprehensive loss
</td>
<td>
(869,350)
</td>
<td>
(7,213)
</td>
<td>
(26,102)
</td>
<td>
(902,665)
</td>
</tr>
<tr>
<td>
Accumulated comprehensive loss at December 31, 2014
</td>
<td>
$(826,026)
</td>
<td>
$(31,207)
</td>
<td>
$(39,761)
</td>
<td>
$(896,994)
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
2014
</td>
<td>
2013
</td>
</tr>
<tr>
<td>
$1.1 billion unsecured revolving credit facility, LIBOR plus 1.75%, currently 1.92% and a facility fee of 0.37%, due 2016
</td>
<td>
$713,000
</td>
<td>
$435,000
</td>
</tr>
<tr>
<td>
$1.2 billion unsecured revolving credit facility, LIBOR plus 1.75%, currently 1.91% and a facility fee of 0.37%, due 2018
</td>
<td>
778,000
</td>
<td>
295,000
</td>
</tr>
<tr>
<td>
Unsecured senior notes and senior debentures, 5.25% to 11.88%, due 2015, 2016, 2018, 2022 and 2027
</td>
<td>
1,721,190
</td>
<td>
1,703,040
</td>
</tr>
<tr>
<td>
€745 million unsecured senior notes, 5.63%, due 2014
</td>
<td>
—
</td>
<td>
1,028,126
</td>
</tr>
<tr>
<td>
$589 million unsecured term loan, 4.47%, due through 2014
</td>
<td>
—
</td>
<td>
42,071
</td>
</tr>
<tr>
<td>
$530 million unsecured term loan, LIBOR plus 0.51%, currently 0.83%, due through 2015
</td>
<td>
37,857
</td>
<td>
113,571
</td>
</tr>
<tr>
<td>
$519 million unsecured term loan, LIBOR plus 0.45%, currently 0.77%, due through 2020
</td>
<td>
259,573
</td>
<td>
302,835
</td>
</tr>
<tr>
<td>
$420 million unsecured term loan, 5.41%, due through 2021
</td>
<td>
241,827
</td>
<td>
274,974
</td>
</tr>
<tr>
<td>
$420 million unsecured term loan, LIBOR plus 1.85%, currently 2.17%, due through 2021
</td>
<td>
245,000
</td>
<td>
280,000
</td>
</tr>
<tr>
<td>
€159.4 million unsecured term loan, EURIBOR plus 1.58%, currently 1.77%, due through 2021
</td>
<td>
112,540
</td>
<td>
146,452
</td>
</tr>
<tr>
<td>
$524.5 million unsecured term loan, LIBOR plus 0.50%, currently 0.83%, due through 2021
</td>
<td>
305,958
</td>
<td>
349,667
</td>
</tr>
<tr>
<td>
$566.1 million unsecured term loan, LIBOR plus 0.37%, currently 0.69%, due through 2022
</td>
<td>
353,793
</td>
<td>
400,966
</td>
</tr>
<tr>
<td>
$1.1 billion unsecured term loan, LIBOR plus 1.85%, currently 2.17%, due through 2022
</td>
<td>
614,203
</td>
<td>
690,978
</td>
</tr>
<tr>
<td>
$632.0 million unsecured term loan, LIBOR plus 0.40%, currently 0.73%, due through 2023
</td>
<td>
473,969
</td>
<td>
526,632
</td>
</tr>
<tr>
<td>
$673.5 million unsecured term loan, LIBOR plus 0.40%, currently 0.73%, due through 2024
</td>
<td>
561,228
</td>
<td>
617,351
</td>
</tr>
<tr>
<td>
$65.0 million unsecured term loan, LIBOR plus 2.12%, currently 2.29%, due through 2019
</td>
<td>
51,100
</td>
<td>
—
</td>
</tr>
<tr>
<td>
$1.0 million unsecured term loan, 3.00%, due through 2015
</td>
<td>
750
</td>
<td>
—
</td>
</tr>
<tr>
<td>
$380.0 million unsecured term loan, LIBOR plus 2.12%, currently 2.29%, due through 2018
</td>
<td>
380,000
</td>
<td>
—
</td>
</tr>
<tr>
<td>
$791.1 million unsecured term loan, LIBOR plus 1.30%, currently 1.62%, due through 2026
</td>
<td>
791,108
</td>
<td>
—
</td>
</tr>
<tr>
<td>
$290.0 million unsecured term loan, LIBOR plus 2.5%, currently 2.67%, due 2016
</td>
<td>
290,000
</td>
<td>
290,000
</td>
</tr>
<tr>
<td>
€365 million unsecured term loan, EURIBOR plus 2.30%, currently 2.32%, due 2017
</td>
<td>
441,687
</td>
<td>
502,934
</td>
</tr>
<tr>
<td>
$7.3 million unsecured term loan, LIBOR plus 2.5%, currently 2.82%, due through 2023
</td>
<td>
4,915
</td>
<td>
5,391
</td>
</tr>
<tr>
<td>
$30.3 million unsecured term loan, LIBOR plus 3.75%, currently 3.99%, due through 2021
</td>
<td>
13,603
</td>
<td>
15,073
</td>
</tr>
<tr>
<td>
Capital lease obligations
</td>
<td>
52,647
</td>
<td>
54,743
</td>
</tr>
<tr>
<td>
</td>
<td>
8,443,948
</td>
<td>
8,074,804
</td>
</tr>
<tr>
<td>
Less—current portion
</td>
<td>
(799,630)
</td>
<td>
(1,563,378)
</td>
</tr>
<tr>
<td>
Long-term portion
</td>
<td>
$7,644,318
</td>
<td>
$6,511,426
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
</td>
<td>
</td>
<td colspan="2">
Amount of Gain (Loss) Recognizedin Income on Derivative
</td>
</tr>
<tr>
<td>
Derivatives Not Designated as HedgingInstruments under ASC 815-20
</td>
<td>
Location of Gain (Loss)Recognized in Incomeon Derivative
</td>
<td>
Year Ended December 31, 2014
</td>
<td>
Year Ended December 31, 2013
</td>
</tr>
<tr>
<td>
(In thousands)
</td>
<td>
</td>
<td>
</td>
<td>
</td>
</tr>
<tr>
<td>
Foreign currency forward contracts
</td>
<td>
Other income (expense)
</td>
<td>
$(48,791)
</td>
<td>
$(21,244)
</td>
</tr>
<tr>
<td>
Fuel swaps
</td>
<td>
Other income (expense)
</td>
<td>
(1,795)
</td>
<td>
243
</td>
</tr>
<tr>
<td>
Fuel call options
</td>
<td>
Other income (expense)
</td>
<td>
—
</td>
<td>
(23)
</td>
</tr>
<tr>
<td>
</td>
<td>
</td>
<td>
$(50,586)
</td>
<td>
$(21,024)
</td>
</tr>
</table>
|
|
<table>
<tr>
<td>
2015
</td>
<td>
$799,630
</td>
</tr>
<tr>
<td>
2016
</td>
<td>
1,856,302
</td>
</tr>
<tr>
<td>
2017
</td>
<td>
920,687
</td>
</tr>
<tr>
<td>
2018
</td>
<td>
1,785,083
</td>
</tr>
<tr>
<td>
2019
</td>
<td>
529,197
</td>
</tr>
<tr>
<td>
Thereafter
</td>
<td>
2,553,049
</td>
</tr>
<tr>
<td>
</td>
<td>
$8,443,948
</td>
</tr>
</table>
|
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