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e03617aa35b9924b0fd230e9d045ff139b9220155af9372c6ea20830a20bf08e-108
/tmp/hf-datasets-cache/medium/datasets/52128918645359-config-parquet-and-info-argimi-test_bnf-7df02e14/hub/datasets--argimi--test_bnf/snapshots/fe518dbc930963537ce0278577b5972656334856/e0/document-e03617aa35b9924b0fd230e9d045ff139b9220155af9372c6ea20830a20bf08e.tar.gz
Business Segments Business segments data for the years ended December 31 are presented in the following tables. Business Segments a. Included PT Freeport Indonesia’s sales to PT Smelting totaling $2.1 billion in 2012 and $2.3 billion in 2011 and 2010. b. Included a credit of $234 million for the reversal of a net deferred tax liability. Refer to Note 12 for further discussion. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 107
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0.7250052558051215, 0.7961805902346216 ], "ocr": false, "ocr_confidence": 1, "text": "— " }, { "bbox": [ 0.7566209182240604, 0.7956283646400528, 0.7691271414164624, 0.7961805902346216 ], "ocr": false, "ocr_confidence": 1, "text": "— " }, { "bbox": [ 0.7991044786241319, 0.7956283646400528, 0.8116107018165339, 0.7961805902346216 ], "ocr": false, "ocr_confidence": 1, "text": "— " }, { "bbox": [ 0.8453899707669527, 0.7917332312073371, 0.8599472544551675, 0.798714897849343 ], "ocr": false, "ocr_confidence": 1, "text": "157 " }, { "bbox": [ 0.8893868440116932, 0.7916247435290404, 0.9129735410603044, 0.7998193297723327 ], "ocr": false, "ocr_confidence": 1, "text": "2,983" }, { "bbox": [ 0.07963488460366243, 0.8040793447783499, 0.2447668337354473, 0.8124415657737039 ], "ocr": false, "ocr_confidence": 1, "text": "Total assets at December 31, 2010 " }, { "bbox": [ 0.3356745102826287, 0.8042469795304116, 0.35859839744817196, 0.8124415657737039 ], "ocr": false, "ocr_confidence": 1, "text": "1,940 " }, { "bbox": [ 0.38548675237917435, 0.8043554672087082, 0.40897341958837574, 0.8124415657737039 ], "ocr": false, "ocr_confidence": 1, "text": "4,477 " }, { "bbox": [ 0.4378752365610958, 0.8042469795304116, 0.46126187393088747, 0.8124415657737039 ], "ocr": false, "ocr_confidence": 1, "text": "6,417 " }, { "bbox": [ 0.4802588169870813, 0.8042469795304116, 0.5040831223032833, 0.8124415657737039 ], "ocr": false, "ocr_confidence": 1, "text": "4,272 " }, { "bbox": [ 0.5241680768580218, 0.8042469795304116, 0.5481049780752144, 0.8124415657737039 ], "ocr": false, "ocr_confidence": 1, "text": "3,263 " }, { "bbox": [ 0.5701784620098039, 0.8042469795304116, 0.5938402063706342, 0.8124415657737039 ], "ocr": false, "ocr_confidence": 1, "text": "7,535 " }, { "bbox": [ 0.6126995211333232, 0.8042469795304116, 0.6363112505744485, 0.8124415657737039 ], "ocr": false, "ocr_confidence": 1, "text": "6,048 " }, { "bbox": [ 0.6548829920151654, 0.8042469795304116, 0.6788573919558057, 0.8124415657737039 ], "ocr": false, "ocr_confidence": 1, "text": "3,640 " }, { "bbox": [ 0.7016937156128727, 0.8042469795304116, 0.7243299795911203, 0.8124415657737039 ], "ocr": false, "ocr_confidence": 1, "text": "1,897 " }, { "bbox": [ 0.7528316024082159, 0.8042469795304116, 0.7671887266869638, 0.8113371338507142 ], "ocr": false, "ocr_confidence": 1, "text": "311 " }, { "bbox": [ 0.7882866952933517, 0.8042469795304116, 0.8109229592715993, 0.8124415657737039 ], "ocr": false, "ocr_confidence": 1, "text": "1,317 " }, { "bbox": [ 0.8366106818704044, 0.8042469795304116, 0.8586966321359273, 0.8124415657737039 ], "ocr": false, "ocr_confidence": 1, "text": "2,221 " }, { "bbox": [ 0.8839592029845792, 0.8042469795304116, 0.9129610747293709, 0.8124415657737039 ], "ocr": false, "ocr_confidence": 1, "text": "29,386" }, { "bbox": [ 0.08037279789743859, 0.8165536552968652, 0.17962205176259957, 0.8256949029787622 ], "ocr": false, "ocr_confidence": 1, "text": "Capital expenditures " }, { "bbox": [ 0.3483308779647927, 0.8169776839439316, 0.35831082412619997, 0.8238212893707584 ], "ocr": false, "ocr_confidence": 1, "text": "47 " }, { "bbox": [ 0.39440374436721304, 0.8168691962656348, 0.4091985864576951, 0.8239593505859375 ], "ocr": false, "ocr_confidence": 1, "text": "186 " }, { "bbox": [ 0.4459918651705474, 0.8168691962656348, 0.46149953206380206, 0.8239593505859375 ], "ocr": false, "ocr_confidence": 1, "text": "233 " }, { "bbox": [ 0.4891757341771344, 0.8168691962656348, 0.5039705762676164, 0.8239593505859375 ], "ocr": false, "ocr_confidence": 1, "text": "106 " }, { "bbox": [ 0.532247156878702, 0.8168691962656348, 0.5483051374846813, 0.8239593505859375 ], "ocr": false, "ocr_confidence": 1, "text": "364 " }, { "bbox": [ 0.5781949610491983, 0.8168691962656348, 0.5938902711556628, 0.8239593505859375 ], "ocr": false, "ocr_confidence": 1, "text": "470 " }, { "bbox": [ 0.6206785713145936, 0.8168691962656348, 0.6363238166360294, 0.8239593505859375 ], "ocr": false, "ocr_confidence": 1, "text": "436 " }, { "bbox": [ 0.6640125349456188, 0.8168691962656348, 0.6788574418211295, 0.8239593505859375 ], "ocr": false, "ocr_confidence": 1, "text": "100 " }, { "bbox": [ 0.714487661723218, 0.8168691962656348, 0.7245926701165493, 0.8239593505859375 ], "ocr": false, "ocr_confidence": 1, "text": "89 " }, { "bbox": [ 0.7639496747185203, 0.8169776839439316, 0.7684393988715278, 0.8238212893707584 ], "ocr": false, "ocr_confidence": 1, "text": "7 " }, { "bbox": [ 0.801093157599954, 0.8168691962656348, 0.8111481510735805, 0.8239593505859375 ], "ocr": false, "ocr_confidence": 1, "text": "28 " }, { "bbox": [ 0.8499674080244077, 0.8168691962656348, 0.8602225110421773, 0.8239593505859375 ], "ocr": false, "ocr_confidence": 1, "text": "49 " }, { "bbox": [ 0.8900872523488562, 0.8168691962656348, 0.913061204299428, 0.8250637825089272 ], "ocr": false, "ocr_confidence": 1, "text": "1,412" }, { "bbox": [ 0.0801499809315002, 0.8394899079293916, 0.5793269038979524, 0.8475603623823686 ], "ocr": false, "ocr_confidence": 1, "text": "a. Included PT Freeport Indonesia’s sales to PT Smelting totaling $2.1 billion in 2012 and $2.3 billion in 2011 and 2010." }, { "bbox": [ 0.08030018775291692, 0.8502251307169596, 0.5921584983277165, 0.8582955851699366 ], "ocr": false, "ocr_confidence": 1, "text": "b. Included a credit of $234 million for the reversal of a net deferred tax liability. Refer to Note 12 for further discussion." }, { "bbox": [ 0.9534329682393791, 0.9652386337819726, 0.9685881371591606, 0.9715580795750474 ], "ocr": false, "ocr_confidence": 1, "text": "107" } ]
[ { "bbox": [ 0.07904133765526067, 0.1360850478663589, 0.1993926428501902, 0.14803383567116477 ], "data": [], "index_in_doc": 1404, "label": "section_header", "text": "Business Segments" }, { "bbox": [ 0.0790349673601537, 0.15336894025706282, 0.45395057029973446, 0.17899792603772097 ], "data": [], "index_in_doc": 1405, "label": "text", "text": "Business segments data for the years ended December 31 are presented in the following tables." }, { "bbox": [ 0.07908000821381612, 0.19405904442372948, 0.19971749050165313, 0.205973076097893 ], "data": [], "index_in_doc": 1406, "label": "section_header", "text": "Business Segments" }, { "bbox": [ 0.07779014188479753, 0.20940206508443812, 0.9163070379518995, 0.8265408602627841 ], "data": [ { "html_seq": "<table><tr><td></td><th colspan=\"3\">North America Copper Mines</th><th colspan=\"3\">South America</th><th>Indonesia</th><th colspan=\"2\">Africa</th><td></td><th>Atlantic Copper</th><td></td><th colspan=\"2\">Corporate,</th></tr><tr><td></td><th>Morenci</th><th>Other Mines</th><th>Total</th><th>Cerro Verde</th><th>Other Mines</th><th>Total</th><th>Grasberg</th><th>Tenke</th><th>Molybdenum</th><th>Rod & Refining</th><th>Smelting & Refining</th><th>Other & Eliminations</th><th colspan=\"2\">FCX Total</th></tr><tr><td>Year Ended December 31, 2012</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Unaffiliated customers</td><td>$ 156</td><td>$ 50</td><td>$ 206</td><td>$1,767</td><td>$ 2,143</td><td>$ 3,910</td><td>$3,611 a</td><td>$1,349</td><td>$1,255</td><td>$4,989</td><td>$2,683</td><td>$ 7</td><td colspan=\"2\">$18,010</td></tr><tr><td>Intersegment</td><td>1,846</td><td>3,438</td><td>5,284</td><td>388</td><td>430</td><td>818</td><td>310</td><td>10</td><td>-</td><td>27</td><td>26</td><td>(6,475)</td><td colspan=\"2\">-</td></tr><tr><td>Production and delivery</td><td>1,076</td><td>1,936</td><td>3,012</td><td>813</td><td>1,301</td><td>2,114</td><td>2,349</td><td>615</td><td>1,033</td><td>4,993</td><td>2,640</td><td>(6,374)</td><td colspan=\"2\">10,382</td></tr><tr><td>Depreciation, depletion and amortization</td><td>122</td><td>240</td><td>362</td><td>139</td><td>148</td><td>287</td><td>212</td><td>176</td><td>65</td><td>9</td><td>42</td><td>26</td><td colspan=\"2\">1,179</td></tr><tr><td>Selling, general and administrative expenses</td><td>2</td><td>2</td><td>4</td><td>3</td><td>3</td><td>6</td><td>121</td><td>6</td><td>13</td><td>-</td><td>19</td><td>262</td><td colspan=\"2\">431</td></tr><tr><td>Exploration and research expenses</td><td>1</td><td>-</td><td>1</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>3</td><td>-</td><td>-</td><td>281</td><td colspan=\"2\">285</td></tr><tr><td>Environmental obligations and shutdown costs</td><td>(11)</td><td>38</td><td>27</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>(49)</td><td colspan=\"2\">(22)</td></tr><tr><td>Gain on insurance settlement</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>(59)</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td colspan=\"2\">(59)</td></tr><tr><td>Operating income (loss)</td><td>812</td><td>1,272</td><td>2,084</td><td>1,200</td><td>1,121</td><td>2,321</td><td>1,298</td><td>562</td><td>141</td><td>14</td><td>8</td><td>(614)</td><td colspan=\"2\">5,814</td></tr><tr><td>Interest expense, net</td><td>1</td><td>5</td><td>6</td><td>7</td><td>-</td><td>7</td><td>5</td><td>1</td><td>-</td><td>-</td><td>12</td><td>155</td><td colspan=\"2\">186</td></tr><tr><td>Provision for income taxes</td><td>-</td><td>-</td><td>-</td><td>228 b</td><td>329</td><td>557 b</td><td>497</td><td>112</td><td>-</td><td>-</td><td>-</td><td>344</td><td colspan=\"2\">1,510</td></tr><tr><td>Total assets at December 31, 2012</td><td>2,445</td><td>5,834</td><td>8,279</td><td>5,821</td><td>4,342</td><td>10,163</td><td>6,591</td><td>4,622</td><td>2,634</td><td>242</td><td>992</td><td>1,917</td><td colspan=\"2\">35,440</td></tr><tr><td>Capital expenditures</td><td>266</td><td>561</td><td>827</td><td>558</td><td>373</td><td>931</td><td>843</td><td>539</td><td>258</td><td>6</td><td>16</td><td>74</td><td colspan=\"2\">3,494</td></tr><tr><td>Year Ended December 31, 2011</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Unaffiliated customers</td><td>$ 418</td><td>$ 180</td><td>$ 598</td><td>$ 2,115</td><td>$ 2,457</td><td>$ 4,572</td><td>$ 4,504 a</td><td>$ 1,282</td><td>$ 1,424</td><td>$ 5,523</td><td>$ 2,969</td><td>$ 8</td><td colspan=\"2\">$ 20,880</td></tr><tr><td>Intersegment</td><td>1,697</td><td>3,338</td><td>5,035</td><td>417</td><td>269</td><td>686</td><td>542</td><td>7</td><td>-</td><td>26</td><td>15</td><td>(6,311)</td><td colspan=\"2\">-</td></tr><tr><td>Production and delivery</td><td>984</td><td>1,645</td><td>2,629</td><td>827</td><td>1,078</td><td>1,905</td><td>1,791</td><td>591</td><td>1,036</td><td>5,527</td><td>2,991</td><td>(6,572)</td><td colspan=\"2\">9,898</td></tr><tr><td>Depreciation, depletion and amortization</td><td>116</td><td>163</td><td>279</td><td>135</td><td>123</td><td>258</td><td>215</td><td>140</td><td>60</td><td>8</td><td>40</td><td>22</td><td colspan=\"2\">1,022</td></tr><tr><td>Selling, general and administrative expenses</td><td>2</td><td>2</td><td>4</td><td>4</td><td>3</td><td>7</td><td>124</td><td>8</td><td>15</td><td>-</td><td>22</td><td>235</td><td colspan=\"2\">415</td></tr><tr><td>Exploration and research expenses</td><td>7</td><td>-</td><td>7</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>3</td><td>-</td><td>-</td><td>261</td><td colspan=\"2\">271</td></tr><tr><td>Environmental obligations and shutdown costs</td><td>4</td><td>(15)</td><td>(11)</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>1</td><td>-</td><td>144</td><td colspan=\"2\">134</td></tr><tr><td>Operating income (loss)</td><td>1,002</td><td>1,723</td><td>2,725</td><td>1,566</td><td>1,522</td><td>3,088</td><td>2,916</td><td>550</td><td>310</td><td>13</td><td>(69)</td><td>(393)</td><td colspan=\"2\">9,140</td></tr><tr><td>Interest expense, net</td><td>2</td><td>6</td><td>8</td><td>1</td><td>-</td><td>1</td><td>8</td><td>6</td><td>-</td><td>-</td><td>15</td><td>274</td><td colspan=\"2\">312</td></tr><tr><td>Provision for income taxes</td><td>-</td><td>-</td><td>-</td><td>553</td><td>522</td><td>1,075</td><td>1,256</td><td>120</td><td>-</td><td>-</td><td>-</td><td>636</td><td colspan=\"2\">3,087</td></tr><tr><td>Total assets at December 31, 2011</td><td>2,006</td><td>5,086</td><td>7,092</td><td>5,110</td><td>3,604</td><td>8,714</td><td>5,349</td><td>3,890</td><td>2,434</td><td>259</td><td>1,109</td><td>3,223</td><td colspan=\"2\">32,070</td></tr><tr><td>Capital expenditures</td><td>95</td><td>400</td><td>495</td><td>198</td><td>405</td><td>603</td><td>648</td><td>193</td><td>461</td><td>10</td><td>32</td><td>92</td><td colspan=\"2\">2,534</td></tr><tr><td>Year Ended December 31, 2010</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Unaffiliated customers</td><td>$ 59</td><td>$ 52</td><td>$ 111</td><td>$ 1,957</td><td>$ 2,449</td><td>$ 4,406</td><td>$ 5,230 a</td><td>$ 1,106</td><td>$ 1,205</td><td>$ 4,444</td><td>$ 2,473</td><td>$ 7</td><td colspan=\"2\">$ 18,982</td></tr><tr><td>Intersegment</td><td>1,465</td><td>2,597</td><td>4,062</td><td>453</td><td>132</td><td>585</td><td>1,147</td><td>-</td><td>-</td><td>26</td><td>18</td><td>(5,838)</td><td colspan=\"2\">-</td></tr><tr><td>Production and delivery</td><td>691</td><td>1,361</td><td>2,052</td><td>705</td><td>973</td><td>1,678</td><td>1,946</td><td>488</td><td>784</td><td>4,442</td><td>2,470</td><td>(5,525)</td><td colspan=\"2\">8,335</td></tr><tr><td>Depreciation, depletion and amortization</td><td>134</td><td>139</td><td>273</td><td>148</td><td>102</td><td>250</td><td>257</td><td>128</td><td>51</td><td>8</td><td>38</td><td>31</td><td colspan=\"2\">1,036</td></tr><tr><td>Selling, general and administrative expenses</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>117</td><td>-</td><td>11</td><td>-</td><td>20</td><td>233</td><td colspan=\"2\">381</td></tr><tr><td>Exploration and research expenses</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>2</td><td>-</td><td>-</td><td>141</td><td colspan=\"2\">143</td></tr><tr><td>Environmental obligations and shutdown costs</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>1</td><td>-</td><td>18</td><td colspan=\"2\">19</td></tr><tr><td>Operating income (loss)</td><td>699</td><td>1,149</td><td>1,848</td><td>1,557</td><td>1,506</td><td>3,063</td><td>4,057</td><td>490</td><td>357</td><td>19</td><td>(37)</td><td>(729)</td><td colspan=\"2\">9,068</td></tr><tr><td>Interest expense, net</td><td>4</td><td>10</td><td>14</td><td>-</td><td>-</td><td>-</td><td>-</td><td>5</td><td>-</td><td>-</td><td>10 -</td><td colspan=\"3\">462</td></tr><tr><td>Provision for income taxes</td><td>-</td><td>-</td><td>-</td><td>516</td><td>483</td><td>999</td><td>1,709</td><td>118</td><td>-</td><td>-</td><td></td><td>157</td><td colspan=\"2\">2,983</td></tr><tr><td>Total assets at December 31, 2010</td><td>1,940</td><td>4,477</td><td>6,417</td><td>4,272</td><td>3,263</td><td>7,535</td><td>6,048</td><td>3,640</td><td>1,897</td><td></td><td>311</td><td>1,317</td><td>2,221</td><td>29,386</td></tr><tr><td>Capital expenditures</td><td>47</td><td>186</td><td>233</td><td>106</td><td>364</td><td>470</td><td>436</td><td>100</td><td>89</td><td>7</td><td>28</td><td>49</td><td colspan=\"2\">1,412</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 1407, "label": "table", "text": "" }, { "bbox": [ 0.07820614958121107, 0.8385753438930319, 0.5793269038979524, 0.8477874909988558 ], "data": [], "index_in_doc": 1408, "label": "footnote", "text": "a. Included PT Freeport Indonesia’s sales to PT Smelting totaling $2.1 billion in 2012 and $2.3 billion in 2011 and 2010." }, { "bbox": [ 0.07821792403077768, 0.8497583408548375, 0.5932738360236672, 0.8584445991901436 ], "data": [], "index_in_doc": 1409, "label": "footnote", "text": "b. Included a credit of $234 million for the reversal of a net deferred tax liability. Refer to Note 12 for further discussion." }, { "bbox": [ 0.5283113866070517, 0.05665164523654514, 0.914825439453125, 0.06819884945647885 ], "data": [], "index_in_doc": 1410, "label": "page_header", "text": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS" }, { "bbox": [ 0.9518389733009089, 0.9639884101019965, 0.9690895828546262, 0.9715580795750474 ], "data": [], "index_in_doc": 1411, "label": "page_footer", "text": "107" } ]
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108 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 18: SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED) Recoverable proven and probable reserves have been calculated as of December 31, 2012, in accordance with Industry Guide 7 as required by the Securities Exchange Act of 1934. FCX's proven and probable reserves may not be comparable to similar information regarding mineral reserves disclosed in accordance with the guidance in other countries. Proven and probable reserves were determined by the use of mapping, drilling, sampling, assaying and evaluation methods generally applied in the mining industry, as more fully discussed below. The term "reserve," as used in the reserve data presented here, means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination. The term "proven reserves" means reserves for which (i) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes; (ii) grade and/or quality are computed from the results of detailed sampling; and (iii) the sites for inspection, sampling and measurements are spaced so closely and the geologic character is sufficiently defined that size, shape, depth and mineral content of reserves are well established. The term "probable reserves" means reserves for which quantity and grade are computed from information similar to that used for proven reserves but the sites for sampling are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation. FCX's reserve estimates are based on the latest available geological and geotechnical studies. FCX conducts ongoing studies of its ore bodies to optimize economic values and to manage risk. FCX revises its mine plans and estimates of proven and probable mineral reserves as required in accordance with the latest available studies. Estimated recoverable proven and probable reserves at December 31, 2012, were determined using long-term average prices of $2.00 per pound for copper, $750 per ounce for gold and $10 per pound for molybdenum, consistent with the long-term average prices used at year-end 2011 and 2010. For the three-year period ended December 31, 2012, LME spot copper prices averaged $3.67 per pound, London PM gold prices averaged $1,480 per ounce and the weekly average price for molybdenum quoted by Metals Week averaged $14.64 per pound. The recoverable proven and probable reserves presented in the table below represent the estimated metal quantities from which FCX expects to be paid after application of estimated metallurgical recovery rates and smelter recovery rates, where applicable. Recoverable reserves are that part of a mineral deposit that FCX estimates can be economically and legally extracted or produced at the time of the reserve determination. a. Consolidated recoverable copper reserves included 2.9 billion pounds in leach stockpiles and 1.4 billion pounds in mill stockpiles. b. Consolidated basis reserves represented estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 0.84 billion pounds of cobalt at Tenke and 321.4 million ounces of silver in Indonesia, South America and North America, which were determined using long-term average prices of $10 per pound for cobalt and $15 per ounce for silver. c. Net equity interest reserves represented estimated consolidated basis metal quantities further reduced for noncontrolling interest ownership. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 0.47 billion pounds of cobalt at Tenke and 264.2 million ounces of silver in Indonesia, South America and North America.
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FCX’s proven " }, { "bbox": [ 0.08727004481296913, 0.21841060754024622, 0.430003346960529, 0.22731233847261678 ], "ocr": false, "ocr_confidence": 1, "text": "and probable reserves may not be comparable to similar " }, { "bbox": [ 0.08764857248543134, 0.2337960907907197, 0.475628821678411, 0.24292207968355428 ], "ocr": false, "ocr_confidence": 1, "text": "information regarding mineral reserves disclosed in accordance " }, { "bbox": [ 0.08674010108498965, 0.24941554214015152, 0.4388356925615298, 0.25845383152817236 ], "ocr": false, "ocr_confidence": 1, "text": "with the guidance in other countries. Proven and probable " }, { "bbox": [ 0.08777475045397391, 0.26485959447995583, 0.43761179805581085, 0.2739855833727904 ], "ocr": false, "ocr_confidence": 1, "text": "reserves were determined by the use of mapping, drilling, " }, { "bbox": [ 0.08713125091752195, 0.2805376149187184, 0.47651203629238154, 0.28951733521740847 ], "ocr": false, "ocr_confidence": 1, "text": "sampling, assaying and evaluation methods generally applied in " }, { "bbox": [ 0.08671486299801497, 0.29592309816919193, 0.4563237607868668, 0.3050490870620265 ], "ocr": false, "ocr_confidence": 1, "text": "the mining industry, as more fully discussed below. The term " }, { "bbox": [ 0.08779998230778314, 0.31160111860795453, 0.48519299077052697, 0.32050284954032515 ], "ocr": false, "ocr_confidence": 1, "text": "“reserve,” as used in the reserve data presented here, means that " }, { "bbox": [ 0.08762333439845665, 0.32698660185842804, 0.4605001811108558, 0.33611259075126265 ], "ocr": false, "ocr_confidence": 1, "text": "part of a mineral deposit that can be economically and legally " }, { "bbox": [ 0.08724480672599444, 0.34251835370304606, 0.46931996065027576, 0.35156635322956126 ], "ocr": false, "ocr_confidence": 1, "text": "extracted or produced at the time of the reserve determination. " }, { "bbox": [ 0.08677795509886897, 0.35805010554766414, 0.4861772325303819, 0.3670981050741793 ], "ocr": false, "ocr_confidence": 1, "text": "The term “proven reserves” means reserves for which (i) quantity " }, { "bbox": [ 0.08764857248543134, 0.3735818573922822, 0.4591627432629953, 0.38262985691879736 ], "ocr": false, "ocr_confidence": 1, "text": "is computed from dimensions revealed in outcrops, trenches, " }, { "bbox": [ 0.08674010108498965, 0.3892598392987492, 0.45730790281607436, 0.39823959812973486 ], "ocr": false, "ocr_confidence": 1, "text": "workings or drill holes; (ii) grade and/or quality are computed " }, { "bbox": [ 0.0868031869526782, 0.40464536108151833, 0.43729639988319546, 0.4137713499743529 ], "ocr": false, "ocr_confidence": 1, "text": "from the results of detailed sampling; and (iii) the sites for " }, { "bbox": [ 0.08764857248543134, 0.42032334298798535, 0.467364342384089, 0.42930310181897097 ], "ocr": false, "ocr_confidence": 1, "text": "inspection, sampling and measurements are spaced so closely " }, { "bbox": [ 0.08727004481296913, 0.43570886477075443, 0.48150869132646545, 0.444834853663589 ], "ocr": false, "ocr_confidence": 1, "text": "and the geologic character is sufficiently defined that size, shape, " }, { "bbox": [ 0.08728266073987374, 0.45124061661537246, 0.472297718322355, 0.46028861614188765 ], "ocr": false, "ocr_confidence": 1, "text": "depth and mineral content of reserves are well established. The " }, { "bbox": [ 0.08671486299801497, 0.46677236845999054, 0.4819754806219363, 0.4758203679865057 ], "ocr": false, "ocr_confidence": 1, "text": "term “probable reserves” means reserves for which quantity and " }, { "bbox": [ 0.08724480672599444, 0.48230412030460856, 0.4573459001927594, 0.4914301091974432 ], "ocr": false, "ocr_confidence": 1, "text": "grade are computed from information similar to that used for " }, { "bbox": [ 0.08762333439845665, 0.49783587214922664, 0.4841078714607588, 0.5069618610420612 ], "ocr": false, "ocr_confidence": 1, "text": "proven reserves but the sites for sampling are farther apart or are " }, { "bbox": [ 0.08730789259368298, 0.5133676239938447, 0.45231134751263785, 0.5224936128866793 ], "ocr": false, "ocr_confidence": 1, "text": "otherwise less adequately spaced. The degree of assurance, " }, { "bbox": [ 0.08727004481296913, 0.5288993373061671, 0.4702157413258272, 0.5380253261990018 ], "ocr": false, "ocr_confidence": 1, "text": "although lower than that for proven reserves, is high enough to " }, { "bbox": [ 0.08727004481296913, 0.5444310891507852, 0.391241908852571, 0.5534790886773003 ], "ocr": false, "ocr_confidence": 1, "text": "assume continuity between points of observation." }, { "bbox": [ 0.10229765823463989, 0.559767829047309, 0.445548213385289, 0.5671583233457623 ], "ocr": false, "ocr_confidence": 1, "text": "FCX’s reserve estimates are based on the latest available " }, { "bbox": [ 0.08724480672599444, 0.575172848171658, 0.4888394424338746, 0.5843671162923177 ], "ocr": false, "ocr_confidence": 1, "text": "geological and geotechnical studies. FCX conducts ongoing studies " }, { "bbox": [ 0.08730789259368298, 0.5906461465238321, 0.4616479811325572, 0.5997721354166666 ], "ocr": false, "ocr_confidence": 1, "text": "of its ore bodies to optimize economic values and to manage " }, { "bbox": [ 0.08777475045397391, 0.6059828864203559, 0.4514028511795343, 0.6150991651746962 ], "ocr": false, "ocr_confidence": 1, "text": "risk. FCX revises its mine plans and estimates of proven and " }, { "bbox": [ 0.08762333439845665, 0.621602414834379, 0.47007686639922897, 0.6305041842990451 ], "ocr": false, "ocr_confidence": 1, "text": "probable mineral reserves as required in accordance with the " }, { "bbox": [ 0.08776212829390383, 0.6370074339587279, 0.22796935037849775, 0.6441834189675071 ], "ocr": false, "ocr_confidence": 1, "text": "latest available studies." }, { "bbox": [ 0.5328907686121324, 0.13726945356889206, 0.8688735463260825, 0.14617118450126262 ], "ocr": false, "ocr_confidence": 1, "text": "Estimated recoverable proven and probable reserves at " }, { "bbox": [ 0.5183552262050654, 0.1526744341609454, 0.8943613089767157, 0.1616541544596354 ], "ocr": false, "ocr_confidence": 1, "text": "December 31, 2012, were determined using long-term average " }, { "bbox": [ 0.518266914716733, 0.1675626966688368, 0.9136031406377655, 0.17705921211627998 ], "ocr": false, "ocr_confidence": 1, "text": "prices of $2.00 per pound for copper, $750 per ounce for gold and " }, { "bbox": [ 0.5175729390063317, 0.18296767726089014, 0.8949039434295853, 0.19246419270833334 ], "ocr": false, "ocr_confidence": 1, "text": "$10 per pound for molybdenum, consistent with the long-term " }, { "bbox": [ 0.5179136188980801, 0.19888945300169666, 0.9144990210439644, 0.20786917330038668 ], "ocr": false, "ocr_confidence": 1, "text": "average prices used at year-end 2011 and 2010. For the three-year " }, { "bbox": [ 0.518266914716733, 0.21429443359375, 0.8656182382621017, 0.2231961645261206 ], "ocr": false, "ocr_confidence": 1, "text": "period ended December 31, 2012, LME spot copper prices " }, { "bbox": [ 0.5179136188980801, 0.2291826190370502, 0.8929605920330371, 0.23867913448449338 ], "ocr": false, "ocr_confidence": 1, "text": "averaged $3.67 per pound, London PM gold prices averaged " }, { "bbox": [ 0.5175729390063317, 0.24458767669369477, 0.905401691112643, 0.2540841921411379 ], "ocr": false, "ocr_confidence": 1, "text": "$1,480 per ounce and the weekly average price for molybdenum " }, { "bbox": [ 0.5178379233366524, 0.2599926572857481, 0.8284590478036918, 0.2694891727331913 ], "ocr": false, "ocr_confidence": 1, "text": "quoted by Metals Week averaged $14.64 per pound. " }, { "bbox": [ 0.5321336634018842, 0.2759144330265546, 0.8865885017744077, 0.2848161639589252 ], "ocr": false, "ocr_confidence": 1, "text": "The recoverable proven and probable reserves presented " }, { "bbox": [ 0.5182921465705422, 0.2911732220890546, 0.9082659553079044, 0.30022122161556974 ], "ocr": false, "ocr_confidence": 1, "text": "in the table below represent the estimated metal quantities from " }, { "bbox": [ 0.5173836502374387, 0.3065099234532828, 0.8850111618540646, 0.3156262022076231 ], "ocr": false, "ocr_confidence": 1, "text": "which FCX expects to be paid after application of estimated " }, { "bbox": [ 0.5183552262050654, 0.32212945186730585, 0.9061708138659109, 0.3311091721659959 ], "ocr": false, "ocr_confidence": 1, "text": "metallurgical recovery rates and smelter recovery rates, where " }, { "bbox": [ 0.5179136188980801, 0.33738816386521464, 0.9200003630195568, 0.3464361633917298 ], "ocr": false, "ocr_confidence": 1, "text": "applicable. Recoverable reserves are that part of a mineral deposit " }, { "bbox": [ 0.5173584183836295, 0.3527249422940341, 0.9061209485421773, 0.3619191718823982 ], "ocr": false, "ocr_confidence": 1, "text": "that FCX estimates can be economically and legally extracted or " }, { "bbox": [ 0.518266914716733, 0.3681982021139126, 0.822920157239328, 0.3772462016404277 ], "ocr": false, "ocr_confidence": 1, "text": "produced at the time of the reserve determination." }, { "bbox": [ 0.6870704102360345, 0.3894638678040167, 0.8837242375791462, 0.39564783886225535 ], "ocr": false, "ocr_confidence": 1, "text": "Recoverable Proven and Probable Reserves" }, { "bbox": [ 0.7439655977136949, 0.39956460817895756, 0.8270478092767055, 0.4067383583145912 ], "ocr": false, "ocr_confidence": 1, "text": "December 31, 2012" }, { "bbox": [ 0.6850808336843852, 0.41603824345752444, 0.7147981730941074, 0.42364617550011835 ], "ocr": false, "ocr_confidence": 1, "text": "Copper" }, { "bbox": [ 0.7155496435227737, 0.41488104155569366, 0.7186492221807342, 0.41853999128245345 ], "ocr": false, "ocr_confidence": 1, "text": "a " }, { "bbox": [ 0.7762465134165646, 0.41603824345752444, 0.7941109152401195, 0.42220175386679293 ], "ocr": false, "ocr_confidence": 1, "text": "Gold " }, { "bbox": [ 0.8433282390918607, 0.416161354142006, 0.8971868776807598, 0.42364617550011835 ], "ocr": false, "ocr_confidence": 1, "text": "Molybdenum" }, { "bbox": [ 0.6698568506178513, 0.4266171696210148, 0.7339221729951746, 0.43438104186395204 ], "ocr": false, "ocr_confidence": 1, "text": "(billion pounds) " }, { "bbox": [ 0.7520096224117903, 0.4266171696210148, 0.8184328266218597, 0.4337819417317708 ], "ocr": false, "ocr_confidence": 1, "text": "(million ounces) " }, { "bbox": [ 0.8381559085222631, 0.4266171696210148, 0.9022212807649101, 0.43438104186395204 ], "ocr": false, "ocr_confidence": 1, "text": "(billion pounds)" }, { "bbox": [ 0.518323661455142, 0.44345643785264754, 0.5900675954382404, 0.45058367950747713 ], "ocr": false, "ocr_confidence": 1, "text": "North America " }, { "bbox": [ 0.6986141329497294, 0.4436910610006313, 0.7178709740732231, 0.45057292899700124 ], "ocr": false, "ocr_confidence": 1, "text": "38.8 " }, { "bbox": [ 0.7827661053027982, 0.4436910610006313, 0.7963803858538858, 0.45057292899700124 ], "ocr": false, "ocr_confidence": 1, "text": "0.4 " }, { "bbox": [ 0.8653859655841504, 0.4436910610006313, 0.8846552231732536, 0.45057292899700124 ], "ocr": false, "ocr_confidence": 1, "text": "2.69" }, { "bbox": [ 0.517970365636489, 0.45593647041706126, 0.5907741870755464, 0.4632782213615649 ], "ocr": false, "ocr_confidence": 1, "text": "South America " }, { "bbox": [ 0.6986141329497294, 0.4563173236268939, 0.7178709740732231, 0.4631991916232639 ], "ocr": false, "ocr_confidence": 1, "text": "38.8 " }, { "bbox": [ 0.7831273297079249, 0.4563173236268939, 0.7963181040645425, 0.46312220409663035 ], "ocr": false, "ocr_confidence": 1, "text": "1.2 " }, { "bbox": [ 0.8654855965009702, 0.4563173236268939, 0.8846178241804534, 0.4631991916232639 ], "ocr": false, "ocr_confidence": 1, "text": "0.73" }, { "bbox": [ 0.5184119729434743, 0.46870896310517285, 0.5655136607051675, 0.4758362047600024 ], "ocr": false, "ocr_confidence": 1, "text": "Indonesia " }, { "bbox": [ 0.6986141329497294, 0.4689435862531566, 0.7178709740732231, 0.4758254542495265 ], "ocr": false, "ocr_confidence": 1, "text": "31.0 " }, { "bbox": [ 0.7770363801445057, 0.4689435862531566, 0.7963056377336091, 0.4758254542495265 ], "ocr": false, "ocr_confidence": 1, "text": "30.9 " }, { "bbox": [ 0.8724360247842626, 0.4727743514860519, 0.8848918839996937, 0.4735347092753709 ], "ocr": false, "ocr_confidence": 1, "text": "—" }, { "bbox": [ 0.5174278309142667, 0.48130597971906564, 0.5467764661203023, 0.488462467386265 ], "ocr": false, "ocr_confidence": 1, "text": "Africa " }, { "bbox": [ 0.7044807384216708, 0.48156984887941917, 0.7178832409428615, 0.48845171687578914 ], "ocr": false, "ocr_confidence": 1, "text": "7.9 " }, { "bbox": [ 0.7840862398833232, 0.48540061411231455, 0.7965420990987541, 0.48616097190163354 ], "ocr": false, "ocr_confidence": 1, "text": "— " }, { "bbox": [ 0.8724358253229677, 0.48540061411231455, 0.8848916845383987, 0.48616097190163354 ], "ocr": false, "ocr_confidence": 1, "text": "—" }, { "bbox": [ 0.5312315498302186, 0.4938152582958491, 0.6242740606170853, 0.5011374733664773 ], "ocr": false, "ocr_confidence": 1, "text": "Consolidated basis" }, { "bbox": [ 0.6254529766007966, 0.4923497594968237, 0.6286046146567351, 0.49745413269659483 ], "ocr": false, "ocr_confidence": 1, "text": "b" }, { "bbox": [ 0.693445143356822, 0.4941961115056818, 0.7179084727966708, 0.5010779795020518 ], "ocr": false, "ocr_confidence": 1, "text": "116.5 " }, { "bbox": [ 0.7770365297404769, 0.4941961115056818, 0.7963307199914471, 0.5010779795020518 ], "ocr": false, "ocr_confidence": 1, "text": "32.5 " }, { "bbox": [ 0.8653861650454453, 0.4941961115056818, 0.884667888965482, 0.5010779795020518 ], "ocr": false, "ocr_confidence": 1, "text": "3.42" }, { "bbox": [ 0.5313955568799785, 0.5103756297718395, 0.6229113410500919, 0.5192676505657158 ], "ocr": false, "ocr_confidence": 1, "text": "Net equity interest" }, { "bbox": [ 0.623532164330576, 0.5102093243839765, 0.6266056634242239, 0.5138682741107363 ], "ocr": false, "ocr_confidence": 1, "text": "c" }, { "bbox": [ 0.6987013474009396, 0.5106102529198232, 0.7178958568697661, 0.5174921209161932 ], "ocr": false, "ocr_confidence": 1, "text": "93.2 " }, { "bbox": [ 0.7770363801445057, 0.5106102529198232, 0.7963803858538858, 0.5174921209161932 ], "ocr": false, "ocr_confidence": 1, "text": "29.4 " }, { "bbox": [ 0.8653859655841504, 0.5106102529198232, 0.8846427568423203, 0.5174921209161932 ], "ocr": false, "ocr_confidence": 1, "text": "3.08" }, { "bbox": [ 0.517935908697789, 0.5332763748939591, 0.9102652555976818, 0.5411184291646938 ], "ocr": false, "ocr_confidence": 1, "text": "a. Consolidated recoverable copper reserves included 2.9 billion pounds in leach stockpiles " }, { "bbox": [ 0.5310035157047845, 0.5441384748979048, 0.6946492413290186, 0.551853642319188 ], "ocr": false, "ocr_confidence": 1, "text": "and 1.4 billion pounds in mill stockpiles." }, { "bbox": [ 0.5180861030528748, 0.5547468397352431, 0.8976589028352226, 0.5625888940059778 ], "ocr": false, "ocr_confidence": 1, "text": "b. Consolidated basis reserves represented estimated metal quantities after reduction " }, { "bbox": [ 0.5304026884191176, 0.5654820528897372, 0.9163590973498774, 0.5733241071604719 ], "ocr": false, "ocr_confidence": 1, "text": "for joint venture partner interests at the Morenci mine in North America and the Grasberg " }, { "bbox": [ 0.530982073615579, 0.5762172660442314, 0.8852242862477022, 0.582570432412504 ], "ocr": false, "ocr_confidence": 1, "text": "minerals district in Indonesia. Excluded from the table above were FCX’s estimated " }, { "bbox": [ 0.5311108258814593, 0.5870540117976641, 0.9040853462967218, 0.5947945720017559 ], "ocr": false, "ocr_confidence": 1, "text": "recoverable proven and probable reserves of 0.84 billion pounds of cobalt at Tenke and " }, { "bbox": [ 0.5304026884191176, 0.5976877308855153, 0.9176143072789011, 0.6049883678706005 ], "ocr": false, "ocr_confidence": 1, "text": "321.4 million ounces of silver in Indonesia, South America and North America, which were " }, { "bbox": [ 0.5309284185272416, 0.6081945245916193, 0.8914143680747039, 0.6162649983107441 ], "ocr": false, "ocr_confidence": 1, "text": "determined using long-term average prices of $10 per pound for cobalt and $15 per " }, { "bbox": [ 0.5309284185272416, 0.6192596897934423, 0.5987770728815615, 0.6254690536344895 ], "ocr": false, "ocr_confidence": 1, "text": "ounce for silver." }, { "bbox": [ 0.5180324479645374, 0.6300202957307449, 0.9043965059168199, 0.6377354631520281 ], "ocr": false, "ocr_confidence": 1, "text": "c. Net equity interest reserves represented estimated consolidated basis metal quantities " }, { "bbox": [ 0.5304026884191176, 0.6407301546347262, 0.8954916561351103, 0.6484707148388179 ], "ocr": false, "ocr_confidence": 1, "text": "further reduced for noncontrolling interest ownership. Excluded from the table above " }, { "bbox": [ 0.5304026884191176, 0.6513638737225773, 0.9105656443078534, 0.659205927993312 ], "ocr": false, "ocr_confidence": 1, "text": "were FCX’s estimated recoverable proven and probable reserves of 0.47 billion pounds " }, { "bbox": [ 0.5309284185272416, 0.6620990868770715, 0.9029374465443729, 0.6693997238621567 ], "ocr": false, "ocr_confidence": 1, "text": "of cobalt at Tenke and 264.2 million ounces of silver in Indonesia, South America and " }, { "bbox": [ 0.5312288072374132, 0.6729612254133128, 0.5960519828048407, 0.6791451772054037 ], "ocr": false, "ocr_confidence": 1, "text": "North America." }, { "bbox": [ 0.03194003323324365, 0.9652386337819726, 0.04730114282346239, 0.9715580795750474 ], "ocr": false, "ocr_confidence": 1, "text": "108 " } ]
[ { "bbox": [ 0.03068133584814134, 0.9642302387892597, 0.04730114282346239, 0.9717658457129893 ], "data": [], "index_in_doc": 1412, "label": "page_footer", "text": "108" }, { "bbox": [ 0.08684949313893038, 0.05688962069424716, 0.47321883058236314, 0.0680155898585464 ], "data": [], "index_in_doc": 1413, "label": "page_header", "text": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS" }, { "bbox": [ 0.0861554862627017, 0.13599796487827492, 0.39669692594241474, 0.1622367627692945 ], "data": [], "index_in_doc": 1414, "label": "section_header", "text": "NOTE 18: SUPPLEMENTARY MINERAL RESERVE INFORMATION (UNAUDITED)" }, { "bbox": [ 0.08577167909908918, 0.16987995186237373, 0.486390656115962, 0.5538250316273082 ], "data": [], "index_in_doc": 1415, "label": "text", "text": "Recoverable proven and probable reserves have been calculated as of December 31, 2012, in accordance with Industry Guide 7 as required by the Securities Exchange Act of 1934. FCX's proven and probable reserves may not be comparable to similar information regarding mineral reserves disclosed in accordance with the guidance in other countries. Proven and probable reserves were determined by the use of mapping, drilling, sampling, assaying and evaluation methods generally applied in the mining industry, as more fully discussed below. The term \"reserve,\" as used in the reserve data presented here, means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination. The term \"proven reserves\" means reserves for which (i) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes; (ii) grade and/or quality are computed from the results of detailed sampling; and (iii) the sites for inspection, sampling and measurements are spaced so closely and the geologic character is sufficiently defined that size, shape, depth and mineral content of reserves are well established. The term \"probable reserves\" means reserves for which quantity and grade are computed from information similar to that used for proven reserves but the sites for sampling are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation." }, { "bbox": [ 0.08590912663079554, 0.5592965020073785, 0.4896136015848397, 0.644558684994476 ], "data": [], "index_in_doc": 1416, "label": "text", "text": "FCX's reserve estimates are based on the latest available geological and geotechnical studies. FCX conducts ongoing studies of its ore bodies to optimize economic values and to manage risk. FCX revises its mine plans and estimates of proven and probable mineral reserves as required in accordance with the latest available studies." }, { "bbox": [ 0.5163985607670802, 0.13616049410116793, 0.9150504317938113, 0.2702469488587042 ], "data": [], "index_in_doc": 1417, "label": "text", "text": "Estimated recoverable proven and probable reserves at December 31, 2012, were determined using long-term average prices of $2.00 per pound for copper, $750 per ounce for gold and $10 per pound for molybdenum, consistent with the long-term average prices used at year-end 2011 and 2010. For the three-year period ended December 31, 2012, LME spot copper prices averaged $3.67 per pound, London PM gold prices averaged $1,480 per ounce and the weekly average price for molybdenum quoted by Metals Week averaged $14.64 per pound." }, { "bbox": [ 0.5159958982779309, 0.2745767458520754, 0.9214329937704249, 0.37734996911251184 ], "data": [], "index_in_doc": 1418, "label": "text", "text": "The recoverable proven and probable reserves presented in the table below represent the estimated metal quantities from which FCX expects to be paid after application of estimated metallurgical recovery rates and smelter recovery rates, where applicable. Recoverable reserves are that part of a mineral deposit that FCX estimates can be economically and legally extracted or produced at the time of the reserve determination." }, { "bbox": [ 0.516326904296875, 0.3879633431482797, 0.9066007526871426, 0.5211540376297151 ], "data": [ { "html_seq": "<table><tr><td></td><th colspan=\"3\">Recoverable Proven and Probable Reserves December 31, 2012</th></tr><tr><td></td><th>Copper a (billion pounds)</th><th>Gold (million ounces)</th><th>Molybdenum (billion pounds)</th></tr><tr><td>North America</td><td>38.8</td><td>0.4</td><td>2.69</td></tr><tr><td>South America</td><td>38.8</td><td>1.2</td><td>0.73</td></tr><tr><td>Indonesia</td><td>31.0</td><td>30.9</td><td>-</td></tr><tr><td>Africa</td><td>7.9</td><td>-</td><td>-</td></tr><tr><td>Consolidated basis b</td><td>116.5</td><td>32.5</td><td>3.42</td></tr><tr><td>Net equity interest c</td><td>93.2</td><td>29.4</td><td>3.08</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 1419, "label": "table", "text": "" }, { "bbox": [ 0.5161939633438011, 0.5327320291538431, 0.9111774918300654, 0.5520547809022845 ], "data": [], "index_in_doc": 1420, "label": "footnote", "text": "a. Consolidated recoverable copper reserves included 2.9 billion pounds in leach stockpiles and 1.4 billion pounds in mill stockpiles." }, { "bbox": [ 0.5168819552153544, 0.553809348982994, 0.9187172285092422, 0.627042596990412 ], "data": [], "index_in_doc": 1421, "label": "footnote", "text": "b. Consolidated basis reserves represented estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 0.84 billion pounds of cobalt at Tenke and 321.4 million ounces of silver in Indonesia, South America and North America, which were determined using long-term average prices of $10 per pound for cobalt and $15 per ounce for silver." }, { "bbox": [ 0.5158697390088848, 0.6297258704599707, 0.9115965600107231, 0.6802314989494554 ], "data": [], "index_in_doc": 1422, "label": "footnote", "text": "c. Net equity interest reserves represented estimated consolidated basis metal quantities further reduced for noncontrolling interest ownership. Excluded from the table above were FCX’s estimated recoverable proven and probable reserves of 0.47 billion pounds of cobalt at Tenke and 264.2 million ounces of silver in Indonesia, South America and North America." } ]
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS a. Included estimated recoverable metals contained in stockpiles. b. Amounts not shown because of rounding. c. Consolidated basis reserves represented estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia. d. Net equity interest reserves represented estimated consolidated basis metal quantities further reduced for noncontrolling interest ownership. 109
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Included estimated recoverable metals contained in stockpiles." }, { "bbox": [ 0.08030018775291692, 0.7889395241785531, 0.27119700113932294, 0.7966800458503492 ], "ocr": false, "ocr_confidence": 1, "text": "b. Amounts not shown because of rounding." }, { "bbox": [ 0.08024654513091044, 0.7995732240002564, 0.9129805222056271, 0.8074152590048433 ], "ocr": false, "ocr_confidence": 1, "text": "c. Consolidated basis reserves represented estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district " }, { "bbox": [ 0.09321760663799211, 0.8104353432703499, 0.14689358231288935, 0.8166193143285886 ], "ocr": false, "ocr_confidence": 1, "text": "in Indonesia." }, { "bbox": [ 0.08007488375395731, 0.8211452021743312, 0.7014094334022671, 0.8288857238461272 ], "ocr": false, "ocr_confidence": 1, "text": "d. Net equity interest reserves represented estimated consolidated basis metal quantities further reduced for noncontrolling interest ownership." }, { "bbox": [ 0.8541462218839359, 0.16109651507753314, 0.8567712322559232, 0.16407382849491003 ], "ocr": false, "ocr_confidence": 1, "text": "a" }, { "bbox": [ 0.9534329682393791, 0.9652386337819726, 0.9688054502399919, 0.9715580795750474 ], "ocr": false, "ocr_confidence": 1, "text": "109" } ]
[ { "bbox": [ 0.5281783459233302, 0.05665280120541351, 0.9149144989213133, 0.06820601646346275 ], "data": [], "index_in_doc": 1423, "label": "section_header", "text": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS" }, { "bbox": [ 0.07768473282359005, 0.13513908000907512, 0.9138470818014706, 0.7669488155480587 ], "data": [ { "html_seq": "<table><tr><td></td><td></td><th colspan=\"6\">100% Basis</th></tr><tr><td></td><td></td><th colspan=\"3\">Average Ore Grade</th><th colspan=\"3\">Recoverable Proven and Probable Reserves a</th></tr><tr><td>Year-End</td><th>Ore (million metric tons)</th><th>Copper (%)</th><th>Gold (grams)</th><th>Molybdenum (%)</th><th>Copper (billion pounds)</th><th>Gold (million ounces)</th><th>Molybdenum (billion pounds)</th></tr><tr><td>2008</td><td>14,067</td><td>0.48</td><td>0.17</td><td>0.01</td><td>118.8</td><td>53.4</td><td>2.49</td></tr><tr><td>2009</td><td>13,807</td><td>0.49</td><td>0.17</td><td>0.01</td><td>120.9</td><td>49.8</td><td>2.60</td></tr><tr><td>2010</td><td>18,516</td><td>0.42</td><td>0.12</td><td>0.01</td><td>137.9</td><td>47.9</td><td>3.41</td></tr><tr><td>2011</td><td>17,739</td><td>0.43</td><td>0.12</td><td>0.01</td><td>136.7</td><td>46.1</td><td>3.43</td></tr><tr><td>2012</td><td>17,394</td><td>0.43</td><td>0.12</td><td>0.01</td><td>133.5</td><td>44.4</td><td>3.44</td></tr><tr><td>By Area at December 31, 2012:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>North America</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Developed and producing:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Morenci</td><td>4,018</td><td>0.27</td><td>-</td><td>- b</td><td>15.4</td><td>-</td><td>0.15</td></tr><tr><td>Bagdad</td><td>1,731</td><td>0.27</td><td>- b</td><td>0.01</td><td>8.3</td><td>0.1</td><td>0.40</td></tr><tr><td>Safford</td><td>186</td><td>0.42</td><td>-</td><td>-</td><td>1.4</td><td>-</td><td>-</td></tr><tr><td>Sierrita</td><td>2,723</td><td>0.23</td><td>- b</td><td>0.03</td><td>12.0</td><td>0.1</td><td>1.15</td></tr><tr><td>Miami</td><td>41</td><td>0.51</td><td>-</td><td>-</td><td>0.4</td><td>-</td><td>-</td></tr><tr><td>Tyrone</td><td>138</td><td>0.28</td><td>-</td><td>-</td><td>0.6</td><td>-</td><td>-</td></tr><tr><td>Chino</td><td>391</td><td>0.42</td><td>0.02</td><td>- b</td><td>2.7</td><td>0.2</td><td>0.01</td></tr><tr><td>Henderson</td><td>113</td><td>-</td><td>-</td><td>0.17</td><td>-</td><td>-</td><td>0.36</td></tr><tr><td>Climax</td><td>198</td><td>-</td><td>-</td><td>0.16</td><td>-</td><td>-</td><td>0.64</td></tr><tr><td>Undeveloped:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cobre</td><td>73</td><td>0.39</td><td>-</td><td>-</td><td>0.3</td><td>-</td><td>-</td></tr><tr><td>South America</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Developed and producing:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Cerro Verde</td><td>4,194</td><td>0.37</td><td>-</td><td>0.01</td><td>30.4</td><td>-</td><td>0.73</td></tr><tr><td>El Abra</td><td>725</td><td>0.44</td><td>-</td><td>-</td><td>4.1</td><td>-</td><td>-</td></tr><tr><td>Candelaria</td><td>315</td><td>0.57</td><td>0.13</td><td>-</td><td>4.2</td><td>1.2</td><td>-</td></tr><tr><td>Ojos del Salado</td><td>5</td><td>0.98</td><td>0.24</td><td>-</td><td>0.1</td><td>- b</td><td>-</td></tr><tr><td>Indonesia</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Developed and producing:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Grasberg open pit</td><td>258</td><td>0.90</td><td>0.98</td><td>-</td><td>4.3</td><td>6.5</td><td>-</td></tr><tr><td>Deep Ore Zone</td><td>176</td><td>0.57</td><td>0.71</td><td>-</td><td>1.9</td><td>3.1</td><td>-</td></tr><tr><td>Big Gossan</td><td>54</td><td>2.26</td><td>0.97</td><td>-</td><td>2.5</td><td>1.1</td><td>-</td></tr><tr><td>Undeveloped:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Grasberg block cave</td><td>999</td><td>1.01</td><td>0.78</td><td>-</td><td>18.8</td><td>16.2</td><td>-</td></tr><tr><td>Kucing Liar</td><td>420</td><td>1.25</td><td>1.07</td><td>-</td><td>9.9</td><td>6.7</td><td>-</td></tr><tr><td>Deep Mill Level Zone</td><td>517</td><td>0.84</td><td>0.70</td><td>-</td><td>8.3</td><td>9.2</td><td>-</td></tr><tr><td>Africa</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Developed and producing:</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Tenke</td><td>119</td><td>3.26</td><td>-</td><td>-</td><td>7.9</td><td>-</td><td>-</td></tr><tr><td>Total 100% basis</td><td>17,394</td><td>0.43</td><td>0.12</td><td>0.01</td><td>133.5</td><td>44.4</td><td>3.44</td></tr><tr><td>Consolidated basisc</td><td></td><td></td><td></td><td></td><td>116.5</td><td>32.5</td><td>3.42</td></tr><tr><td>FCX's equity share d</td><td></td><td></td><td></td><td></td><td>93.2</td><td>29.4</td><td>3.08</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 1424, "label": "table", "text": "" }, { "bbox": [ 0.07843463249455869, 0.7774114897756865, 0.3652364693435968, 0.786428740530303 ], "data": [], "index_in_doc": 1425, "label": "footnote", "text": "a. Included estimated recoverable metals contained in stockpiles." }, { "bbox": [ 0.0784093383090948, 0.7879328872218276, 0.27119700113932294, 0.7972601688269413 ], "data": [], "index_in_doc": 1426, "label": "footnote", "text": "b. Amounts not shown because of rounding." }, { "bbox": [ 0.07844898124146306, 0.798543525464607, 0.9139145994498059, 0.8185790090849905 ], "data": [], "index_in_doc": 1427, "label": "footnote", "text": "c. Consolidated basis reserves represented estimated metal quantities after reduction for joint venture partner interests at the Morenci mine in North America and the Grasberg minerals district in Indonesia." }, { "bbox": [ 0.07791355232787288, 0.8207175514914773, 0.7024794933842677, 0.8295506949376579 ], "data": [], "index_in_doc": 1428, "label": "footnote", "text": "d. Net equity interest reserves represented estimated consolidated basis metal quantities further reduced for noncontrolling interest ownership." }, { "bbox": [ 0.9520216798470691, 0.9639867917455808, 0.9691394481783598, 0.9715972283873895 ], "data": [], "index_in_doc": 1429, "label": "page_footer", "text": "109" } ]
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110 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 19. QUARTERLY FINANCIAL INFORMATION (UNAUDITED) a. Included a gain of $59 million ($31 million to net income attributable to FCX common stockholders or $0.03 per share) in the fourth quarter and for the year for the settlement of the insurance claim for business interruption and property damage relating to the 2011 incidents affecting PT Freeport Indonesia ’ s concentrate pipelines. Refer to Note 13 for further discussion. b. Included a charge of $16 million ($8 million to net income attributable to FCX common stockholders or $0.01 per share) in the fourth quarter and for the year associated with labor agreements at Candelaria. Also included charges of $9 million ($7 million to net income attributable to FCX common stockholders or $0.01 per share) for costs associated with the PXP and MMR transactions. c. Included a net tax benefit of $208 million ($108 million attributable to noncontrolling interests and $100 million to net income attributable to FCX common stockholders or $0.11 per share) in the third quarter and $205 million ($107 million attributable to noncontrolling interests and $98 million to net income attributable to FCX common stockholders or $0.11 per share) for the year associated with adjustments to Cerro Verde ’ s deferred income taxes. Refer to Note 12 for further discussion. d. Included losses on early extinguishment of debt totaling $149 million ($0.16 per share) in the first quarter and for the year. Refer to Note 9 for further discussion. e. Included charges totaling $116 million ($50 million to net income attributable to common stock or $0.05 per share) in the fourth quarter and for the year primarily associated with bonuses for new labor agreements and other employee costs at PT Freeport Indonesia, Cerro Verde and El Abra. f. Included losses on early extinguishment of debt totaling $6 million ($0.01 per share) in the first quarter, $54 million ($0.06 per share) in the second quarter and $60 million ($0.06 per share) for the year. Refer to Note 9 for further discussion. g. Included additional taxes of $50 million ($0.05 per share) in the third quarter and $49 million ($0.05 per share) for the year associated with Cerro Verde ’ s election to pay a special mining burden during the remaining term of its current stability agreement. Refer to Note 12 for further discussion. NOTE 20. SUBSEQUENT EVENTS On January 21, 2013, FCX, through a newly formed joint venture, entered into a definitive agreement with OM Group, Inc. to acquire a large-scale cobalt refinery located in Kokkola, Finland, and the related sales and marketing business. The acquisition would provide direct end-market access for the cobalt hydroxide production at Tenke. FCX will be the operator of the joint venture with an effective 56 percent ownership interest, with the remaining effective ownership interests held by its partners in TFM, including 24 percent by Lundin Mining Corporation and 20 percent by La Générale des Carrières et des Mines (Gécamines). Under the terms of the agreement, initial consideration of $325 million (subject to working capital adjustments) will be paid at closing, with the potential for additional consideration of up to $110 million over a period of three years, contingent upon the achievement of revenue-based performance targets. The acquisition is subject to customary closing conditions, including required regulatory approvals, and is expected to close in second-quarter 2013. On February 14, 2013, FCX entered into an agreement for a bank term loan (the Term Loan) in connection with the proposed acquisitions of PXP and MMR. No amounts are currently available to FCX under the Term Loan. The Term Loan will be drawn at the closing of the acquisitions and will provide for an aggregate principal amount of up to $4.0 billion that may be used to fund the cash portion of the merger consideration for both transactions, to refinance certain of PXP's and MMR's outstanding debt, or for general corporate purposes. The Term Loan will mature in annual amounts equal to 10 percent in the second year, 15 percent in the third year and 20 percent in the fourth year of the aggregate principal amount, and the remainder will mature five years from the date of the first borrowing. The Term Loan will bear interest determined by reference to FCX's credit ratings (currently LIBOR plus 1.50 percent). In connection with the completion of the Term Loan, FCX's interim financing commitments associated with the proposed acquisitions of PXP and MMR were reduced from $9.5 billion to $5.5 billion. FCX is pursuing permanent financing for an additional $5.5 billion to replace the remaining interim financing commitments.
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"ocr_confidence": 1, "text": "0.78 " }, { "bbox": [ 0.9002515007467831, 0.2683883050475458, 0.9197027667675143, 0.2752701730439157 ], "ocr": false, "ocr_confidence": 1, "text": "3.20" }, { "bbox": [ 0.08765931222953048, 0.28063371446397567, 0.44819267123353246, 0.2896719267874053 ], "ocr": false, "ocr_confidence": 1, "text": "Diluted net income per share attributable to FCX common stockholders " }, { "bbox": [ 0.5668993183210784, 0.2810145676738084, 0.5862500059838388, 0.28789643567017836 ], "ocr": false, "ocr_confidence": 1, "text": "0.80" }, { "bbox": [ 0.5871050466898999, 0.2791683312618371, 0.5902566348805147, 0.28427262739701703 ], "ocr": false, "ocr_confidence": 1, "text": "d " }, { "bbox": [ 0.6485944261737898, 0.2810145676738084, 0.6680331759982638, 0.28789643567017836 ], "ocr": false, "ocr_confidence": 1, "text": "0.74 " }, { "bbox": [ 0.7302980111315359, 0.2810145676738084, 0.7496486987942964, 0.28789643567017836 ], "ocr": false, "ocr_confidence": 1, "text": "0.86" }, { 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"ocr": false, "ocr_confidence": 1, "text": "$ 5,814 " }, { "bbox": [ 0.7171523648928972, 0.3131987446486348, 0.7495248831954657, 0.32187621762054136 ], "ocr": false, "ocr_confidence": 1, "text": "$ 5,195 " }, { "bbox": [ 0.7988484201867596, 0.3131987446486348, 0.8313229629416871, 0.32187621762054136 ], "ocr": false, "ocr_confidence": 1, "text": "$ 4,162 " }, { "bbox": [ 0.8821758195465687, 0.3131987446486348, 0.9195061976613562, 0.32187621762054136 ], "ocr": false, "ocr_confidence": 1, "text": "$20,880" }, { "bbox": [ 0.08756999720155803, 0.32608825991852114, 0.1766582439148348, 0.33512647224195075 ], "ocr": false, "ocr_confidence": 1, "text": "Operating income " }, { "bbox": [ 0.5615856694240197, 0.32640021738379893, 0.5861199572195415, 0.33450248024680396 ], "ocr": false, "ocr_confidence": 1, "text": "2,936 " }, { "bbox": [ 0.6432818244485294, 0.32640021738379893, 0.6675739662320006, 0.33450248024680396 ], "ocr": false, "ocr_confidence": 1, "text": "2,757 " }, { "bbox": [ 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"ocr_confidence": 1, "text": "1,861 " }, { "bbox": [ 0.6440209282769097, 0.3390264800100615, 0.6678414936938317, 0.3471287428730666 ], "ocr": false, "ocr_confidence": 1, "text": "1,726 " }, { "bbox": [ 0.7257170334360958, 0.3390264800100615, 0.7497542636846405, 0.3471287428730666 ], "ocr": false, "ocr_confidence": 1, "text": "1,294 " }, { "bbox": [ 0.8151876412185968, 0.3390264800100615, 0.8312337040122039, 0.3460367376154119 ], "ocr": false, "ocr_confidence": 1, "text": "866 " }, { "bbox": [ 0.8950866499757455, 0.3391337539210464, 0.9192258548113256, 0.3471287428730666 ], "ocr": false, "ocr_confidence": 1, "text": "5,747" }, { "bbox": [ 0.08768464381398719, 0.35148705376519096, 0.34442193523731107, 0.3603790360267716 ], "ocr": false, "ocr_confidence": 1, "text": "Net income attributable to noncontrolling interests " }, { "bbox": [ 0.5697297239615247, 0.3516527426363242, 0.5862346474641289, 0.3586630002416746 ], "ocr": false, "ocr_confidence": 1, "text": "362 " }, { "bbox": [ 0.651425779255387, 0.3516527426363242, 0.6678160125134038, 0.3586630002416746 ], "ocr": false, "ocr_confidence": 1, "text": "358 " }, { "bbox": [ 0.7334787705365349, 0.3516527426363242, 0.7480081795087827, 0.35852651885061554 ], "ocr": false, "ocr_confidence": 1, "text": "241 " }, { "bbox": [ 0.8151748258303972, 0.3516527426363242, 0.8312208886240043, 0.3586630002416746 ], "ocr": false, "ocr_confidence": 1, "text": "226 " }, { "bbox": [ 0.8956345701529309, 0.3516527426363242, 0.9192129895578023, 0.3597550054993292 ], "ocr": false, "ocr_confidence": 1, "text": "1,187" }, { "bbox": [ 0.08767185959161497, 0.3639670092650134, 0.35884931975719975, 0.3712892243356416 ], "ocr": false, "ocr_confidence": 1, "text": "Net income attributable to FCX common stockholders " }, { "bbox": [ 0.562299292071972, 0.36427900526258683, 0.5861581041921977, 0.3723812295932962 ], "ocr": false, "ocr_confidence": 1, "text": "1,499" }, { "bbox": [ 0.5866794461518331, 0.36248074155865295, 0.5889542024899153, 0.36754319162079785 ], "ocr": false, "ocr_confidence": 1, "text": "f" }, { "bbox": [ 0.6440127503638174, 0.3642790437948824, 0.6678206001231873, 0.37238126812559186 ], "ocr": false, "ocr_confidence": 1, "text": "1,368" }, { "bbox": [ 0.6683787925570619, 0.36248074155865295, 0.670653548895144, 0.36754319162079785 ], "ocr": false, "ocr_confidence": 1, "text": "f" }, { "bbox": [ 0.7257248124265983, 0.3639470880681818, 0.753655178095001, 0.37238126812559186 ], "ocr": false, "ocr_confidence": 1, "text": "1,053g" }, { "bbox": [ 0.8151380750868056, 0.3642790437948824, 0.8312861623327716, 0.3712892628679372 ], "ocr": false, "ocr_confidence": 1, "text": "640" }, { "bbox": [ 0.832254995707593, 0.3639470880681818, 0.8354847727258221, 0.3676060377949416 ], "ocr": false, "ocr_confidence": 1, "text": "e" }, { "bbox": [ 0.8947853636897467, 0.36248074155865295, 0.9359012179904513, 0.37238126812559186 ], "ocr": false, "ocr_confidence": 1, "text": "4,560e,f,g" }, { "bbox": [ 0.08774836546455334, 0.37659331042357164, 0.4411062602124183, 0.3856315612792969 ], "ocr": false, "ocr_confidence": 1, "text": "Basic net income per share attributable to FCX common stockholders " }, { "bbox": [ 0.5679836397856669, 0.37690530642114506, 0.5861326728770936, 0.3839155254941998 ], "ocr": false, "ocr_confidence": 1, "text": "1.58 " }, { "bbox": [ 0.6496797449448529, 0.3770125417998343, 0.6680581585254545, 0.3837790441031408 ], "ocr": false, "ocr_confidence": 1, "text": "1.44 " }, { "bbox": [ 0.7313758002387153, 0.3770125417998343, 0.7480208951663347, 0.3837790441031408 ], "ocr": false, "ocr_confidence": 1, "text": "1.11 " }, { "bbox": [ 0.8122944551355699, 0.37690530642114506, 0.8309915081348295, 0.3839155254941998 ], "ocr": false, "ocr_confidence": 1, "text": "0.67 " }, { "bbox": [ 0.9004395927479064, 0.37690530642114506, 0.9179513968673407, 0.3839155254941998 ], "ocr": false, "ocr_confidence": 1, "text": "4.81" }, { "bbox": [ 0.0876464095770144, 0.3892195730498343, 0.44817975611468547, 0.3982578239055595 ], "ocr": false, "ocr_confidence": 1, "text": "Diluted net income per share attributable to FCX common stockholders " }, { "bbox": [ 0.5679709241281148, 0.3896388044260969, 0.5858905268650428, 0.3965417881204624 ], "ocr": false, "ocr_confidence": 1, "text": "1.57" }, { "bbox": [ 0.5866794461518331, 0.3877332668111782, 0.5889542024899153, 0.3927957168733231 ], "ocr": false, "ocr_confidence": 1, "text": "f" }, { "bbox": [ 0.6496715670317607, 0.38953156904740766, 0.6678460813036152, 0.3965417881204624 ], "ocr": false, "ocr_confidence": 1, "text": "1.43" }, { "bbox": [ 0.6683787925570619, 0.3877332668111782, 0.670653548895144, 0.3927957168733231 ], "ocr": false, "ocr_confidence": 1, "text": "f" }, { "bbox": [ 0.7313836789598652, 0.38919961332070707, 0.753655178095001, 0.3965417881204624 ], "ocr": false, "ocr_confidence": 1, "text": "1.10g" }, { "bbox": [ 0.8122959510952819, 0.38953156904740766, 0.8309930040945415, 0.3965417881204624 ], "ocr": false, "ocr_confidence": 1, "text": "0.67" }, { "bbox": [ 0.832254995707593, 0.38919961332070707, 0.8354847727258221, 0.39285856304746686 ], "ocr": false, "ocr_confidence": 1, "text": "e" }, { "bbox": [ 0.9004441803576899, 0.3877332668111782, 0.9359012179904513, 0.3965417881204624 ], "ocr": false, "ocr_confidence": 1, "text": "4.78e,f,g" }, { "bbox": [ 0.08729867374195772, 0.41203812878541274, 0.9258797838796977, 0.4201086025045376 ], "ocr": false, "ocr_confidence": 1, "text": "a. Included a gain of $59 million ($31 million to net income attributable to FCX common stockholders or $0.03 per share) in the fourth quarter and for the year for the settlement of the insurance claim " }, { "bbox": [ 0.09976549086227916, 0.42310325545494004, 0.5639666389016544, 0.43084381565903174 ], "ocr": false, "ocr_confidence": 1, "text": "for business interruption and property damage relating to the 2011 incidents affecting PT Freeport Indonesia" }, { "bbox": [ 0.5653601752387153, 0.42318683200412327, 0.5673110562991472, 0.4252387152777778 ], "ocr": false, "ocr_confidence": 1, "text": "’" }, { "bbox": [ 0.5680377436619178, 0.4231003655327691, 0.8401405484068627, 0.4308409257368608 ], "ocr": false, "ocr_confidence": 1, "text": "s concentrate pipelines. Refer to Note 13 for further discussion." }, { "bbox": [ 0.0874430463204976, 0.4335056651722301, 0.9168296265446283, 0.44157613889135494 ], "ocr": false, "ocr_confidence": 1, "text": "b. Included a charge of $16 million ($8 million to net income attributable to FCX common stockholders or $0.01 per share) in the fourth quarter and for the year associated with labor agreements at " }, { "bbox": [ 0.10044627719455296, 0.4442409168590199, 0.9121089760774101, 0.45231139057814473 ], "ocr": false, "ocr_confidence": 1, "text": "Candelaria. Also included charges of $9 million ($7 million to net income attributable to FCX common stockholders or $0.01 per share) for costs associated with the PXP and MMR transactions." }, { "bbox": [ 0.08738940369849112, 0.45497613001351406, 0.9211208368438522, 0.4630466037326389 ], "ocr": false, "ocr_confidence": 1, "text": "c. Included a net tax benefit of $208 million ($108 million attributable to noncontrolling interests and $100 million to net income attributable to FCX common stockholders or $0.11 per share) in the " }, { "bbox": [ 0.09965235267589295, 0.4657113431680082, 0.9102953742532169, 0.47378181688713306 ], "ocr": false, "ocr_confidence": 1, "text": "third quarter and $205 million ($107 million attributable to noncontrolling interests and $98 million to net income attributable to FCX common stockholders or $0.11 per share) for the year " }, { "bbox": [ 0.1003604465060764, 0.47667501430318815, 0.28748074699850645, 0.48451706857392285 ], "ocr": false, "ocr_confidence": 1, "text": "associated with adjustments to Cerro Verde" }, { "bbox": [ 0.2887171826331444, 0.4768484481657394, 0.2906680636935764, 0.4789003314393939 ], "ocr": false, "ocr_confidence": 1, "text": "’" }, { "bbox": [ 0.29139477598900887, 0.4767619816943853, 0.5667054419424019, 0.4829713455354325 ], "ocr": false, "ocr_confidence": 1, "text": "s deferred income taxes. Refer to Note 12 for further discussion." }, { "bbox": [ 0.08722649368585325, 0.4871672813338463, 0.7838983473434947, 0.49523775505297113 ], "ocr": false, "ocr_confidence": 1, "text": "d. Included losses on early extinguishment of debt totaling $149 million ($0.16 per share) in the first quarter and for the year. Refer to Note 9 for further discussion." }, { "bbox": [ 0.08729086358562793, 0.49790253302063603, 0.9309789121540544, 0.5059730067397609 ], "ocr": false, "ocr_confidence": 1, "text": "e. Included charges totaling $116 million ($50 million to net income attributable to common stock or $0.05 per share) in the fourth quarter and for the year primarily associated with bonuses for new " }, { "bbox": [ 0.10042287165822547, 0.5088661656235204, 0.5094996433632046, 0.5167082198942551 ], "ocr": false, "ocr_confidence": 1, "text": "labor agreements and other employee costs at PT Freeport Indonesia, Cerro Verde and El Abra." }, { "bbox": [ 0.08670078227722566, 0.5197028728446575, 0.09128196566712622, 0.5258360968695747 ], "ocr": false, "ocr_confidence": 1, "text": "f. " }, { "bbox": [ 0.10066963021272148, 0.5193729593296244, 0.9258829752604166, 0.5274434330487492 ], "ocr": false, "ocr_confidence": 1, "text": "Included losses on early extinguishment of debt totaling $6 million ($0.01 per share) in the first quarter, $54 million ($0.06 per share) in the second quarter and $60 million ($0.06 per share) for the " }, { "bbox": [ 0.09975768693911484, 0.5304381245314472, 0.2846142139310151, 0.538178684735539 ], "ocr": false, "ocr_confidence": 1, "text": "year. Refer to Note 9 for further discussion." }, { "bbox": [ 0.08725867551915786, 0.5408434241709082, 0.7408545998965993, 0.5489138978900332 ], "ocr": false, "ocr_confidence": 1, "text": "g. Included additional taxes of $50 million ($0.05 per share) in the third quarter and $49 million ($0.05 per share) for the year associated with Cerro Verde" }, { "bbox": [ 0.7421132505329606, 0.5412423875596788, 0.7440641315933926, 0.5432942708333334 ], "ocr": false, "ocr_confidence": 1, "text": "’" }, { "bbox": [ 0.7447908189561632, 0.5411813138711332, 0.9203884149688522, 0.5488964812924163 ], "ocr": false, "ocr_confidence": 1, "text": "s election to pay a special mining burden " }, { "bbox": [ 0.10029282912709354, 0.5518911342428188, 0.5256129744785284, 0.5596316944469105 ], "ocr": false, "ocr_confidence": 1, "text": "during the remaining term of its current stability agreement. Refer to Note 12 for further discussion. " }, { "bbox": [ 0.0875947740342882, 0.5883585997302123, 0.29702943290760314, 0.5972948170671559 ], "ocr": false, "ocr_confidence": 1, "text": "NOTE 20. SUBSEQUENT EVENTS" }, { "bbox": [ 0.0873457466075623, 0.6054391571969697, 0.47768551695580574, 0.6146334253176294 ], "ocr": false, "ocr_confidence": 1, "text": "On January 21, 2013, FCX, through a newly formed joint venture, " }, { "bbox": [ 0.08724480672599444, 0.6210391882694128, 0.48916755626404207, 0.6301651771622475 ], "ocr": false, "ocr_confidence": 1, "text": "entered into a definitive agreement with OM Group, Inc. to acquire " }, { "bbox": [ 0.08727004481296913, 0.6365709401140309, 0.45084765066508375, 0.6456969290068655 ], "ocr": false, "ocr_confidence": 1, "text": "a large-scale cobalt refinery located in Kokkola, Finland, and " }, { "bbox": [ 0.08671486299801497, 0.652248922020498, 0.47511151880999797, 0.6612286808514836 ], "ocr": false, "ocr_confidence": 1, "text": "the related sales and marketing business. The acquisition would " }, { "bbox": [ 0.08762333439845665, 0.6676344438032671, 0.44393277635761336, 0.6766824433297822 ], "ocr": false, "ocr_confidence": 1, "text": "provide direct end-market access for the cobalt hydroxide " }, { "bbox": [ 0.08762333439845665, 0.6830979356862078, 0.4785056519352533, 0.6922141759082524 ], "ocr": false, "ocr_confidence": 1, "text": "production at Tenke. FCX will be the operator of the joint venture " }, { "bbox": [ 0.08674010108498965, 0.6986979282263553, 0.42856493183210786, 0.7077459277528705 ], "ocr": false, "ocr_confidence": 1, "text": "with an effective 56 percent ownership interest, with the " }, { "bbox": [ 0.08777475045397391, 0.7142296800709734, 0.48578544068180657, 0.7233556882299558 ], "ocr": false, "ocr_confidence": 1, "text": "remaining effective ownership interests held by its partners in TFM, " }, { "bbox": [ 0.08764857248543134, 0.7296931912200619, 0.4775461433759702, 0.7388874400745739 ], "ocr": false, "ocr_confidence": 1, "text": "including 24 percent by Lundin Mining Corporation and 20 percent " }, { "bbox": [ 0.08762333439845665, 0.74522494306468, 0.4660772186478758, 0.7543411832867246 ], "ocr": false, "ocr_confidence": 1, "text": "by La Générale des Carrières et des Mines (Gécamines). Under " }, { "bbox": [ 0.08671486299801497, 0.7604544475825146, 0.47956499087265114, 0.76995094376381 ], "ocr": false, "ocr_confidence": 1, "text": "the terms of the agreement, initial consideration of $325 million " }, { "bbox": [ 0.08754763260386349, 0.7765029367774424, 0.4681969935597937, 0.785482695608428 ], "ocr": false, "ocr_confidence": 1, "text": "(subject to working capital adjustments) will be paid at closing, " }, { "bbox": [ 0.08674010108498965, 0.7915179512717507, 0.48501596887127246, 0.8009364388205789 ], "ocr": false, "ocr_confidence": 1, "text": "with the potential for additional consideration of up to $110 million " }, { "bbox": [ 0.08730789259368298, 0.8074201911386817, 0.46467675103081596, 0.8165461992976641 ], "ocr": false, "ocr_confidence": 1, "text": "over a period of three years, contingent upon the achievement " }, { "bbox": [ 0.08730789259368298, 0.8229519429832998, 0.48261899262471913, 0.8320779511422822 ], "ocr": false, "ocr_confidence": 1, "text": "of revenue-based performance targets. The acquisition is subject " }, { "bbox": [ 0.08671486299801497, 0.8386299441559146, 0.4670740264693117, 0.8476096933538263 ], "ocr": false, "ocr_confidence": 1, "text": "to customary closing conditions, including required regulatory " }, { "bbox": [ 0.08727004481296913, 0.8541616960005327, 0.4453590243470435, 0.8630634461990511 ], "ocr": false, "ocr_confidence": 1, "text": "approvals, and is expected to close in second-quarter 2013." }, { "bbox": [ 0.5326856226702921, 0.5885911806665286, 0.9198078828699449, 0.5977854487871883 ], "ocr": false, "ocr_confidence": 1, "text": "On February 14, 2013, FCX entered into an agreement for a bank " }, { "bbox": [ 0.5173551272722631, 0.6042107090805516, 0.8734001209533292, 0.6131124785452178 ], "ocr": false, "ocr_confidence": 1, "text": "term loan (the Term Loan) in connection with the proposed " }, { "bbox": [ 0.5179103277867136, 0.619469459610756, 0.9160604040607129, 0.6285174591372712 ], "ocr": false, "ocr_confidence": 1, "text": "acquisitions of PXP and MMR. No amounts are currently available " }, { "bbox": [ 0.5173551272722631, 0.6348061995072798, 0.9065592647377961, 0.6421966938057331 ], "ocr": false, "ocr_confidence": 1, "text": "to FCX under the Term Loan. The Term Loan will be drawn at the " }, { "bbox": [ 0.5177336549447253, 0.6502794593271582, 0.8801378237655739, 0.6594054482199929 ], "ocr": false, "ocr_confidence": 1, "text": "closing of the acquisitions and will provide for an aggregate " }, { "bbox": [ 0.5182636236053666, 0.6653139518968987, 0.9168804891748366, 0.6747324779780224 ], "ocr": false, "ocr_confidence": 1, "text": "principal amount of up to $4.0 billion that may be used to fund the " }, { "bbox": [ 0.5177336549447253, 0.6810894397774128, 0.9153665779462827, 0.6902154479363952 ], "ocr": false, "ocr_confidence": 1, "text": "cash portion of the merger consideration for both transactions, to " }, { "bbox": [ 0.518415014728222, 0.6964944589017618, 0.8930710935904309, 0.7056204670607441 ], "ocr": false, "ocr_confidence": 1, "text": "refinance certain of PXP’s and MMR’s outstanding debt, or for " }, { "bbox": [ 0.5178850959329044, 0.7120456888218119, 0.6888037787543403, 0.7210254476527975 ], "ocr": false, "ocr_confidence": 1, "text": "general corporate purposes. " }, { "bbox": [ 0.5321178062289369, 0.7274507079461608, 0.8687185648999183, 0.7363524581446792 ], "ocr": false, "ocr_confidence": 1, "text": "The Term Loan will mature in annual amounts equal to " }, { "bbox": [ 0.5187934925353604, 0.7428556885382142, 0.8930581286062602, 0.7517574387367325 ], "ocr": false, "ocr_confidence": 1, "text": "10 percent in the second year, 15 percent in the third year and " }, { "bbox": [ 0.5178976619944853, 0.7581144390684186, 0.9065589655458538, 0.7672404472274009 ], "ocr": false, "ocr_confidence": 1, "text": "20 percent in the fourth year of the aggregate principal amount, " }, { "bbox": [ 0.5178976619944853, 0.7735194581927676, 0.8888689427593954, 0.7825674577192827 ], "ocr": false, "ocr_confidence": 1, "text": "and the remainder will mature five years from the date of the " }, { "bbox": [ 0.5175065183951184, 0.7889244580509687, 0.9068365159377553, 0.7980504662099511 ], "ocr": false, "ocr_confidence": 1, "text": "first borrowing. The Term Loan will bear interest determined by " }, { "bbox": [ 0.5184023489359937, 0.8042611979474925, 0.8760873632493362, 0.8134554468020044 ], "ocr": false, "ocr_confidence": 1, "text": "reference to FCX’s credit ratings (currently LIBOR plus 1.50 " }, { "bbox": [ 0.5182509578131382, 0.8197344385012232, 0.8946605009191176, 0.8287824380277383 ], "ocr": false, "ocr_confidence": 1, "text": "percent). In connection with the completion of the Term Loan, " }, { "bbox": [ 0.518225725959329, 0.8350711976638948, 0.8701823116127961, 0.8442654368853328 ], "ocr": false, "ocr_confidence": 1, "text": "FCX’s interim financing commitments associated with the " }, { "bbox": [ 0.5182509578131382, 0.8505444382176255, 0.8863329918555964, 0.8595924377441406 ], "ocr": false, "ocr_confidence": 1, "text": "proposed acquisitions of PXP and MMR were reduced from " }, { "bbox": [ 0.5175569821027369, 0.8655789404204397, 0.9055873895782272, 0.8750754366017351 ], "ocr": false, "ocr_confidence": 1, "text": "$9.5 billion to $5.5 billion. FCX is pursuing permanent financing " }, { "bbox": [ 0.5174308228336908, 0.8809839402786409, 0.8884653328290952, 0.8904804364599362 ], "ocr": false, "ocr_confidence": 1, "text": "for an additional $5.5 billion to replace the remaining interim " }, { "bbox": [ 0.5175065183951184, 0.8967594377922289, 0.6658269844803155, 0.9058854363181374 ], "ocr": false, "ocr_confidence": 1, "text": "financing commitments." }, { "bbox": [ 0.03194003323324365, 0.9652386337819726, 0.04730114282346239, 0.9715580795750474 ], "ocr": false, "ocr_confidence": 1, "text": "110 " } ]
[ { "bbox": [ 0.030413689956166386, 0.964113717127328, 0.047964205149731605, 0.9718090018840752 ], "data": [], "index_in_doc": 1430, "label": "page_footer", "text": "110" }, { "bbox": [ 0.08665703168881485, 0.05681602400962753, 0.47321883058236314, 0.06819253015999842 ], "data": [], "index_in_doc": 1431, "label": "page_header", "text": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS" }, { "bbox": [ 0.0864413392310049, 0.13600235755997475, 0.4962070938808466, 0.1473774765477036 ], "data": [], "index_in_doc": 1432, "label": "section_header", "text": "NOTE 19. QUARTERLY FINANCIAL INFORMATION (UNAUDITED)" }, { "bbox": [ 0.08549392301272722, 0.16060954392558396, 0.9451045616000306, 0.3988697552921796 ], "data": [ { "html_seq": "<table><tr><td></td><th>First Quarter</th><th>Second Quarter</th><th>Third Quarter</th><th>Fourth Quarter</th><td></td><th>Year</th></tr><tr><td>2012</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues</td><td>$4,605</td><td>$ 4,475</td><td>$ 4,417</td><td>$ 4,513</td><td></td><td>$18,010</td></tr><tr><td>Operating income</td><td>1,734</td><td>1,311</td><td>1,411</td><td>1,358</td><td>a,b</td><td>5,814a,b</td></tr><tr><td>Net income</td><td>1,001</td><td>894</td><td>1,140 c</td><td>945</td><td></td><td>3,980 c</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>237</td><td>184</td><td>316 c</td><td>202</td><td></td><td>939 c</td></tr><tr><td>Net income attributable to FCX common stockholders</td><td>764 d</td><td>710</td><td>824 c</td><td>743a,b</td><td></td><td>3,041a,b,c,d</td></tr><tr><td>Basic net income per share attributable to FCX common stockholders</td><td>0.81</td><td>0.75</td><td>0.87</td><td>0.78</td><td></td><td>3.20</td></tr><tr><td>Diluted net income per share attributable to FCX common stockholders</td><td>0.80 d</td><td>0.74</td><td>0.86 c</td><td>0.78a,b</td><td></td><td>3.19a,b,c,d</td></tr><tr><td>2011</td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues</td><td>$5,709</td><td>$ 5,814</td><td>$ 5,195</td><td>$ 4,162</td><td></td><td>$20,880</td></tr><tr><td>Operating income</td><td>2,936</td><td>2,757</td><td>2,150</td><td>1,297 e</td><td></td><td>9,140 e</td></tr><tr><td>Net income</td><td>1,861</td><td>1,726</td><td>1,294</td><td>866</td><td></td><td>5,747</td></tr><tr><td>Net income attributable to noncontrolling interests</td><td>362</td><td>358</td><td>241</td><td>226</td><td></td><td>1,187</td></tr><tr><td>Net income attributable to FCX common stockholders</td><td>1,499 f</td><td>1,368 f</td><td>1,053g</td><td>640 e</td><td></td><td>4,560e,f,g</td></tr><tr><td>Basic net income per share attributable to FCX common stockholders</td><td>1.58</td><td>1.44</td><td>1.11</td><td>0.67</td><td></td><td>4.81</td></tr><tr><td>Diluted net income per share attributable to FCX common stockholders</td><td>1.57 f</td><td>1.43 f</td><td>1.10g</td><td>0.67 e</td><td></td><td>4.78e,f,g</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 1433, "label": "table", "text": "" }, { "bbox": [ 0.08541420082640803, 0.4114389515886403, 0.9269811094196794, 0.43084381565903174 ], "data": [], "index_in_doc": 1434, "label": "footnote", "text": "a. Included a gain of $59 million ($31 million to net income attributable to FCX common stockholders or $0.03 per share) in the fourth quarter and for the year for the settlement of the insurance claim for business interruption and property damage relating to the 2011 incidents affecting PT Freeport Indonesia ’ s concentrate pipelines. Refer to Note 13 for further discussion." }, { "bbox": [ 0.08554780249502145, 0.4335056651722301, 0.9188694174772774, 0.4528131966639047 ], "data": [], "index_in_doc": 1435, "label": "footnote", "text": "b. Included a charge of $16 million ($8 million to net income attributable to FCX common stockholders or $0.01 per share) in the fourth quarter and for the year associated with labor agreements at Candelaria. Also included charges of $9 million ($7 million to net income attributable to FCX common stockholders or $0.01 per share) for costs associated with the PXP and MMR transactions." }, { "bbox": [ 0.08598607505848205, 0.45467411388050427, 0.9211620256012562, 0.4852455601547704 ], "data": [], "index_in_doc": 1436, "label": "footnote", "text": "c. Included a net tax benefit of $208 million ($108 million attributable to noncontrolling interests and $100 million to net income attributable to FCX common stockholders or $0.11 per share) in the third quarter and $205 million ($107 million attributable to noncontrolling interests and $98 million to net income attributable to FCX common stockholders or $0.11 per share) for the year associated with adjustments to Cerro Verde ’ s deferred income taxes. Refer to Note 12 for further discussion." }, { "bbox": [ 0.08531853420282501, 0.4862366493302162, 0.7847133960599214, 0.4955002755829782 ], "data": [], "index_in_doc": 1437, "label": "footnote", "text": "d. Included losses on early extinguishment of debt totaling $149 million ($0.16 per share) in the first quarter and for the year. Refer to Note 9 for further discussion." }, { "bbox": [ 0.0855649437000549, 0.4974962484956992, 0.9309789121540544, 0.5173991810191761 ], "data": [], "index_in_doc": 1438, "label": "footnote", "text": "e. Included charges totaling $116 million ($50 million to net income attributable to common stock or $0.05 per share) in the fourth quarter and for the year primarily associated with bonuses for new labor agreements and other employee costs at PT Freeport Indonesia, Cerro Verde and El Abra." }, { "bbox": [ 0.08515551822637421, 0.5185284084743924, 0.9266576829299428, 0.5390198832810528 ], "data": [], "index_in_doc": 1439, "label": "footnote", "text": "f. Included losses on early extinguishment of debt totaling $6 million ($0.01 per share) in the first quarter, $54 million ($0.06 per share) in the second quarter and $60 million ($0.06 per share) for the year. Refer to Note 9 for further discussion." }, { "bbox": [ 0.08589124991223702, 0.5404199927744239, 0.9216034334469465, 0.559916448111486 ], "data": [], "index_in_doc": 1440, "label": "footnote", "text": "g. Included additional taxes of $50 million ($0.05 per share) in the third quarter and $49 million ($0.05 per share) for the year associated with Cerro Verde ’ s election to pay a special mining burden during the remaining term of its current stability agreement. Refer to Note 12 for further discussion." }, { "bbox": [ 0.08583248362821691, 0.5871176286177202, 0.2974134956309998, 0.5973924964365332 ], "data": [], "index_in_doc": 1441, "label": "section_header", "text": "NOTE 20. SUBSEQUENT EVENTS" }, { "bbox": [ 0.08515339895011553, 0.6042981003270005, 0.4898476195491217, 0.8638471352933633 ], "data": [], "index_in_doc": 1442, "label": "text", "text": "On January 21, 2013, FCX, through a newly formed joint venture, entered into a definitive agreement with OM Group, Inc. to acquire a large-scale cobalt refinery located in Kokkola, Finland, and the related sales and marketing business. The acquisition would provide direct end-market access for the cobalt hydroxide production at Tenke. FCX will be the operator of the joint venture with an effective 56 percent ownership interest, with the remaining effective ownership interests held by its partners in TFM, including 24 percent by Lundin Mining Corporation and 20 percent by La Générale des Carrières et des Mines (Gécamines). Under the terms of the agreement, initial consideration of $325 million (subject to working capital adjustments) will be paid at closing, with the potential for additional consideration of up to $110 million over a period of three years, contingent upon the achievement of revenue-based performance targets. The acquisition is subject to customary closing conditions, including required regulatory approvals, and is expected to close in second-quarter 2013." }, { "bbox": [ 0.5159700680402369, 0.587908619582051, 0.9199150933159722, 0.7214475689512311 ], "data": [], "index_in_doc": 1443, "label": "text", "text": "On February 14, 2013, FCX entered into an agreement for a bank term loan (the Term Loan) in connection with the proposed acquisitions of PXP and MMR. No amounts are currently available to FCX under the Term Loan. The Term Loan will be drawn at the closing of the acquisitions and will provide for an aggregate principal amount of up to $4.0 billion that may be used to fund the cash portion of the merger consideration for both transactions, to refinance certain of PXP's and MMR's outstanding debt, or for general corporate purposes." }, { "bbox": [ 0.5156728208454606, 0.7264647050337358, 0.9084815729677288, 0.9059617013642283 ], "data": [], "index_in_doc": 1444, "label": "text", "text": "The Term Loan will mature in annual amounts equal to 10 percent in the second year, 15 percent in the third year and 20 percent in the fourth year of the aggregate principal amount, and the remainder will mature five years from the date of the first borrowing. The Term Loan will bear interest determined by reference to FCX's credit ratings (currently LIBOR plus 1.50 percent). In connection with the completion of the Term Loan, FCX's interim financing commitments associated with the proposed acquisitions of PXP and MMR were reduced from $9.5 billion to $5.5 billion. FCX is pursuing permanent financing for an additional $5.5 billion to replace the remaining interim financing commitments." } ]
{ "filename": "NYSE_FCX_2012.pdf", "page": 111 }
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Also on February 14, 2013, FCX and PT Freeport Indonesia entered into a new senior unsecured revolving credit facility, which will refinance and replace FCX's existing revolving credit facility upon completion of the proposed acquisition of PXP. No amounts are currently available to FCX under the new revolving credit facility. At the closing of the acquisition of PXP, the new revolving credit facility will be available for five years in an aggregate principal amount of $3.0 billion, with $500 million available to PT Freeport Indonesia. The Term Loan and new revolving credit facility both contain customary affirmative covenants and representations, and also contain a number of negative covenants that, among other things, restrict, subject to certain exceptions, the ability of FCX's subsidiaries that are not borrowers or guarantors to incur additional indebtedness (including guarantee obligations) and FCX's ability or the ability of FCX's subsidiaries to: create liens on assets; enter into sale and leaseback transactions; engage in mergers, liquidations and dissolutions; and sell assets. The Term Loan and new revolving credit facility also contain financial ratios governing maximum total leverage and minimum interest coverage. FCX evaluated events after December 31, 2012, and through the date the financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these financial statements. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 111
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" }, { "bbox": [ 0.08070807363472733, 0.19867490517972697, 0.42653272042866625, 0.20779118393406723 ], "ocr": false, "ocr_confidence": 1, "text": "No amounts are currently available to FCX under the new " }, { "bbox": [ 0.08063237184013416, 0.21414816499960543, 0.46235427357792075, 0.22327415389244 ], "ocr": false, "ocr_confidence": 1, "text": "revolving credit facility. At the closing of the acquisition of PXP, " }, { "bbox": [ 0.07957248438417522, 0.22955314559165876, 0.4533325893427032, 0.23867913448449338 ], "ocr": false, "ocr_confidence": 1, "text": "the new revolving credit facility will be available for five years " }, { "bbox": [ 0.08050619387159161, 0.24458767669369477, 0.46865031921785644, 0.2540841921411379 ], "ocr": false, "ocr_confidence": 1, "text": "in an aggregate principal amount of $3.0 billion, with $500 million " }, { "bbox": [ 0.0801276661991294, 0.26045088334517047, 0.289542728000217, 0.26941118336687186 ], "ocr": false, "ocr_confidence": 1, "text": "available to PT Freeport Indonesia. " }, { "bbox": [ 0.09433513217502171, 0.27576816443241003, 0.47312962151820365, 0.28489415332524465 ], "ocr": false, "ocr_confidence": 1, "text": "The Term Loan and new revolving credit facility both contain " }, { "bbox": [ 0.0799510182898029, 0.2911732220890546, 0.4450174967447917, 0.30022122161556974 ], "ocr": false, "ocr_confidence": 1, "text": "customary affirmative covenants and representations, and " }, { "bbox": [ 0.0801276661991294, 0.30657820268110797, 0.47537565542981514, 0.3157041915739425 ], "ocr": false, "ocr_confidence": 1, "text": "also contain a number of negative covenants that, among other " }, { "bbox": [ 0.07957248438417522, 0.3219831832731613, 0.44489098841847935, 0.3311091721659959 ], "ocr": false, "ocr_confidence": 1, "text": "things, restrict, subject to certain exceptions, the ability of " }, { "bbox": [ 0.08045572393080767, 0.33731988463738954, 0.4773691214767157, 0.34651415275804925 ], "ocr": false, "ocr_confidence": 1, "text": "FCX’s subsidiaries that are not borrowers or guarantors to incur " }, { "bbox": [ 0.0801276661991294, 0.3529394130514126, 0.4404369678372651, 0.3619191718823982 ], "ocr": false, "ocr_confidence": 1, "text": "additional indebtedness (including guarantee obligations) " }, { "bbox": [ 0.0801276661991294, 0.3681299228860874, 0.46139516394122754, 0.3772462016404277 ], "ocr": false, "ocr_confidence": 1, "text": "and FCX’s ability or the ability of FCX’s subsidiaries to: create " }, { "bbox": [ 0.08061974968006408, 0.3837494127678149, 0.4445254257301879, 0.3919979056926689 ], "ocr": false, "ocr_confidence": 1, "text": "liens on assets; enter into sale and leaseback transactions; " }, { "bbox": [ 0.08010242811215469, 0.3991543933598682, 0.47890841415505003, 0.40813415219085386 ], "ocr": false, "ocr_confidence": 1, "text": "engage in mergers, liquidations and dissolutions; and sell assets. " }, { "bbox": [ 0.07963557648502924, 0.4144131824223682, 0.4555910895852482, 0.4235391713152028 ], "ocr": false, "ocr_confidence": 1, "text": "The Term Loan and new revolving credit facility also contain " }, { "bbox": [ 0.0797365163665971, 0.4298182015467172, 0.4804852055568321, 0.43894419043955174 ], "ocr": false, "ocr_confidence": 1, "text": "financial ratios governing maximum total leverage and minimum " }, { "bbox": [ 0.08050619387159161, 0.4453694122006195, 0.19096105238970587, 0.4543491710316051 ], "ocr": false, "ocr_confidence": 1, "text": "interest coverage. " }, { "bbox": [ 0.09515527962080014, 0.46055988350299876, 0.4622401318518944, 0.46975415162365847 ], "ocr": false, "ocr_confidence": 1, "text": "FCX evaluated events after December 31, 2012, and through " }, { "bbox": [ 0.07957243451885149, 0.47603318185517285, 0.4824162402184181, 0.485081181381688 ], "ocr": false, "ocr_confidence": 1, "text": "the date the financial statements were issued, and determined any " }, { "bbox": [ 0.08010237824683096, 0.49158443104137073, 0.4549098295323989, 0.5005641898723564 ], "ocr": false, "ocr_confidence": 1, "text": "events or transactions occurring during this period that would " }, { "bbox": [ 0.08063232197481043, 0.5069894501657197, 0.46740124272365197, 0.5159692089967053 ], "ocr": false, "ocr_confidence": 1, "text": "require recognition or disclosure are appropriately addressed in " }, { "bbox": [ 0.07957243451885149, 0.5222482392282197, 0.2418606826682496, 0.5295704542988479 ], "ocr": false, "ocr_confidence": 1, "text": "these financial statements." }, { "bbox": [ 0.9534329682393791, 0.9653181812979958, 0.9675816554649204, 0.9714873728125987 ], "ocr": false, "ocr_confidence": 1, "text": "111" } ]
[ { "bbox": [ 0.07814217860402625, 0.1360361889155224, 0.4690505881714665, 0.2698504515368529 ], "data": [], "index_in_doc": 1445, "label": "text", "text": "Also on February 14, 2013, FCX and PT Freeport Indonesia entered into a new senior unsecured revolving credit facility, which will refinance and replace FCX's existing revolving credit facility upon completion of the proposed acquisition of PXP. No amounts are currently available to FCX under the new revolving credit facility. At the closing of the acquisition of PXP, the new revolving credit facility will be available for five years in an aggregate principal amount of $3.0 billion, with $500 million available to PT Freeport Indonesia." }, { "bbox": [ 0.07787564221550436, 0.2747447466609454, 0.4810303831412122, 0.45450260663273356 ], "data": [], "index_in_doc": 1446, "label": "text", "text": "The Term Loan and new revolving credit facility both contain customary affirmative covenants and representations, and also contain a number of negative covenants that, among other things, restrict, subject to certain exceptions, the ability of FCX's subsidiaries that are not borrowers or guarantors to incur additional indebtedness (including guarantee obligations) and FCX's ability or the ability of FCX's subsidiaries to: create liens on assets; enter into sale and leaseback transactions; engage in mergers, liquidations and dissolutions; and sell assets. The Term Loan and new revolving credit facility also contain financial ratios governing maximum total leverage and minimum interest coverage." }, { "bbox": [ 0.07814932181165109, 0.460178837631688, 0.48270221785003065, 0.5305597709886956 ], "data": [], "index_in_doc": 1447, "label": "text", "text": "FCX evaluated events after December 31, 2012, and through the date the financial statements were issued, and determined any events or transactions occurring during this period that would require recognition or disclosure are appropriately addressed in these financial statements." }, { "bbox": [ 0.5284731497172437, 0.05684908471926294, 0.9150104398041768, 0.06820732656151357 ], "data": [], "index_in_doc": 1448, "label": "section_header", "text": "NOTES TO CONSOLIDATED FINANCIAL STATEMENTS" }, { "bbox": [ 0.9512895571640114, 0.9638772829614505, 0.9690225638595282, 0.9714873728125987 ], "data": [], "index_in_doc": 1449, "label": "page_footer", "text": "111" } ]
{ "filename": "NYSE_FCX_2012.pdf", "page": 112 }
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112 Performance graph The following graph compares the change in the cumulative total stockholder return on our common stock with the cumulative total return of the S&P 500 Stock Index and the cumulative total return of the S&P 500 Materials Index from 2008 through 2012. Our comparative peer group is the S&P 500 Materials Index, which closely mirrors the benchmarks of other large metals producers. This comparison assumes $100 invested on December 31, 2007, in (a) Freeport-McMoRan Copper & Gold Inc. common stock, (b) the S&P 500 Stock Index and (c) the S&P 500 Materials Index. Comparison of Cumulative Total Return* Freeport-McMoRan Copper & Gold Inc., S&P 500 Stock Index and S&P 500 Materials Index - *Total return assumes reinvestment of dividends.
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" }, { "bbox": [ 0.4635011261584712, 0.6311176569774898, 0.5008342967313879, 0.6393608324455492 ], "ocr": false, "ocr_confidence": 1, "text": "$ 100.00 " }, { "bbox": [ 0.5403033487157884, 0.6311176569774898, 0.5743641074186836, 0.6393608324455492 ], "ocr": false, "ocr_confidence": 1, "text": "$ 24.50 " }, { "bbox": [ 0.6089245166653902, 0.6311176569774898, 0.6445465586543863, 0.6393608324455492 ], "ocr": false, "ocr_confidence": 1, "text": "$ 80.48 " }, { "bbox": [ 0.6808180466196896, 0.6311176569774898, 0.7198375128453074, 0.6393608324455492 ], "ocr": false, "ocr_confidence": 1, "text": "$122.82 " }, { "bbox": [ 0.7625164455837674, 0.6311176569774898, 0.7965772541519863, 0.6393608324455492 ], "ocr": false, "ocr_confidence": 1, "text": "$ 77.60 " }, { "bbox": [ 0.8311500798643024, 0.6311176569774898, 0.869819690978605, 0.6393608324455492 ], "ocr": false, "ocr_confidence": 1, "text": "$ 74.47" }, { "bbox": [ 0.20947554843877655, 0.6604267467151989, 0.3150426827225031, 0.6678426337964607 ], "ocr": false, "ocr_confidence": 1, "text": "S&P 500 Stock Index " }, { "bbox": [ 0.47189455717996837, 0.6607419023610125, 0.5008342967313879, 0.6678229437934028 ], "ocr": false, "ocr_confidence": 1, "text": "100.00 " }, { "bbox": [ 0.5502205642999387, 0.6607419023610125, 0.5743641074186836, 0.6678229437934028 ], "ocr": false, "ocr_confidence": 1, "text": "63.00 " }, { "bbox": [ 0.6181172888263379, 0.6607419023610125, 0.6443217159096711, 0.6678229437934028 ], "ocr": false, "ocr_confidence": 1, "text": "79.67 " }, { "bbox": [ 0.6940327064663756, 0.6607419023610125, 0.7194877574646396, 0.6678229437934028 ], "ocr": false, "ocr_confidence": 1, "text": "91.67 " }, { "bbox": [ 0.7701604007895476, 0.6607419023610125, 0.7950409035277523, 0.6678229437934028 ], "ocr": false, "ocr_confidence": 1, "text": "93.61 " }, { "bbox": [ 0.8384942946091197, 0.6607419023610125, 0.8700945486430249, 0.6678229437934028 ], "ocr": false, "ocr_confidence": 1, "text": "108.59" }, { "bbox": [ 0.20946308210784315, 0.6894699443470348, 0.3322666891260085, 0.6968858506944444 ], "ocr": false, "ocr_confidence": 1, "text": "S&P 500 Materials Index " }, { "bbox": [ 0.47188209084903493, 0.6897850807267006, 0.5008218304004545, 0.6968661606913865 ], "ocr": false, "ocr_confidence": 1, "text": "100.00 " }, { "bbox": [ 0.5504079083212061, 0.6897850807267006, 0.574514002581827, 0.6968661606913865 ], "ocr": false, "ocr_confidence": 1, "text": "54.34 " }, { "bbox": [ 0.6184420118144914, 0.6897850807267006, 0.6445589751199959, 0.6968661606913865 ], "ocr": false, "ocr_confidence": 1, "text": "80.75 " }, { "bbox": [ 0.6931208691565819, 0.6897850807267006, 0.7194877075993158, 0.6968661606913865 ], "ocr": false, "ocr_confidence": 1, "text": "98.67 " }, { "bbox": [ 0.7700355380189186, 0.6897850807267006, 0.7965397055632149, 0.6968661606913865 ], "ocr": false, "ocr_confidence": 1, "text": "89.05 " }, { "bbox": [ 0.8382444693372141, 0.6897850807267006, 0.8700445835886438, 0.6968661606913865 ], "ocr": false, "ocr_confidence": 1, "text": "102.38" }, { "bbox": [ 0.47080794191048814, 0.6084168944695983, 0.49402718138850593, 0.6154979359019886 ], "ocr": false, "ocr_confidence": 1, "text": "2007 " }, { "bbox": [ 0.5469107035717933, 0.6084168944695983, 0.5704421997070312, 0.6154979359019886 ], "ocr": false, "ocr_confidence": 1, "text": "2008 " }, { "bbox": [ 0.6162312825520834, 0.6084168944695983, 0.6398127437417024, 0.6154979359019886 ], "ocr": false, "ocr_confidence": 1, "text": "2009" }, { "bbox": [ 0.6286090526705473, 0.5911328094174163, 0.6977922526839512, 0.5994842991684423 ], "ocr": false, "ocr_confidence": 1, "text": "December 31," }, { "bbox": [ 0.6902856764450572, 0.6084168944695983, 0.7128554699467677, 0.6154979359019886 ], "ocr": false, "ocr_confidence": 1, "text": "2010 " }, { "bbox": [ 0.7683619081584456, 0.6084168944695983, 0.7890331791896447, 0.6154979359019886 ], "ocr": false, "ocr_confidence": 1, "text": "2011 " }, { "bbox": [ 0.8397059222452001, 0.6084168944695983, 0.8622631995506536, 0.6154979359019886 ], "ocr": false, "ocr_confidence": 1, "text": "2012" }, { "bbox": [ 0.13937795551773768, 0.7192276270702632, 0.3849727406221278, 0.7265745991408222 ], "ocr": false, "ocr_confidence": 1, "text": "*Total return assumes reinvestment of dividends." }, { "bbox": [ 0.10148383745181015, 0.1371231849747475, 0.49186108159083947, 0.14624917386758207 ], "ocr": false, "ocr_confidence": 1, "text": "The following graph compares the change in the cumulative total " }, { "bbox": [ 0.08713757758047067, 0.1526744341609454, 0.4715970606585733, 0.15985038063742898 ], "ocr": false, "ocr_confidence": 1, "text": "stockholder return on our common stock with the cumulative " }, { "bbox": [ 0.08672118966096366, 0.1679332232234454, 0.4848959929023693, 0.17525543829407356 ], "ocr": false, "ocr_confidence": 1, "text": "total return of the S&P 500 Stock Index and the cumulative total " }, { "bbox": [ 0.08778107711692261, 0.18333820381549873, 0.472593718884038, 0.19246419270833334 ], "ocr": false, "ocr_confidence": 1, "text": "return of the S&P 500 Materials Index from 2008 through 2012. " }, { "bbox": [ 0.087352073270511, 0.1987431844075521, 0.49377895180695974, 0.20786917330038668 ], "ocr": false, "ocr_confidence": 1, "text": "Our comparative peer group is the S&P 500 Materials Index, which " }, { "bbox": [ 0.5179292267444087, 0.1371231849747475, 0.9074109644671671, 0.14624917386758207 ], "ocr": false, "ocr_confidence": 1, "text": "closely mirrors the benchmarks of other large metals producers. " }, { "bbox": [ 0.5176137787064695, 0.15215763901219223, 0.9137196260340074, 0.16157616509331596 ], "ocr": false, "ocr_confidence": 1, "text": "This comparison assumes $100 invested on December 31, 2007, " }, { "bbox": [ 0.5184844272588592, 0.16786494399562027, 0.8949698653875613, 0.17698122274996053 ], "ocr": false, "ocr_confidence": 1, "text": "in (a) Freeport-McMoRan Copper & Gold Inc. common stock, " }, { "bbox": [ 0.5183835497089461, 0.18333820381549873, 0.9148169623480903, 0.1914501768169981 ], "ocr": false, "ocr_confidence": 1, "text": "(b) the S&P 500 Stock Index and (c) the S&P 500 Materials Index." }, { "bbox": [ 0.03194003323324365, 0.9652386337819726, 0.04732401854072521, 0.9714873728125987 ], "ocr": false, "ocr_confidence": 1, "text": "112 " } ]
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Stockhkholder r Information INVESTOR INQUIRIES The Investor Relations Department will be pleased to receive any inquiries about the company. Our Principles of Business Conduct and our annual report on Form 10-K filed with the Securities and Exchange Commission, which includes certifications of our Chief Executive Officer and Chief Financial Officer, are available on our website. Additionally, copies will be furnished without charge to any stockholder of the company entitled to vote at its annual meeting upon written request. The Investor Relations Department can be contacted as follows: Freeport-McMoRan Copper & Gold Inc. Investor Relations Department 333 North Central Avenue Phoenix, Arizona 85004 Telephone (602) 366-8400 www.fcx.com TRANSFER AGENT Questions about lost certificates, lost or missing dividend checks, or notifications of change of address should be directed to the Freeport-McMoRan Copper & Gold Inc. transfer agent, registrar and dividend disbursement agent: Computershare 250 Royall Street Canton, MA 02021 www.computershare.com/investor NOTICE OF ANNUAL MEETING The annual meeting of stockholders will be held in late June or July 2013. Notice of the annual meeting will be sent to stockholders. In accordance with SEC rules, we will report the voting results of our annual meeting on a Form 8-K that will be available on our website (www.fcx.com). FCX COMMON STOCK FCX's common stock trades on the New York Stock Exchange (NYSE) under the symbol "FCX." The FCX common stock price is reported daily in the financial press under "FMCG" in most listings of NYSE securities. As of December 31, 2012, the number of holders of record of FCX's common stock was 16,214. NYSE composite tape common stock price ranges during 2012 and 2011 were: COMMON STOCK DIVIDENDS In February 2012, the Board of Directors authorized an increase in the cash dividend on FCX common stock to the current annual rate of $1.25 per share ($0.3125 per share quarterly). Dividends are paid quarterly as declared by the Board of Directors. The Board of Directors also authorized a supplemental common stock dividend that was paid in June 2011. Below is a summary of dividends on FCX common stock for 2012 and 2011: Below is a summary of dividends on FCX common stock for 2012 and 2011: The declaration of dividends is at the discretion of the Board of Directors and will depend on FCX's financial results, cash requirements, future prospects and other factors deemed relevant by the Board of Directors. TAX WITHHOLDING - NONRESIDENT ALIEN STOCKHOLDERS Nonresident aliens who own stock in a United States corporation are generally subject to a federal withholding tax on 100 percent of the dividends paid on preferred and/or common stock. However, when 80 percent or more of a corporation's income is generated outside the United States, the withholding percentage is not calculated on 100 percent of the dividend, but rather on that portion of the dividend attributable to income generated in the United States. We have determined that, for quarterly dividends paid in 2012 to nonresident alien stockholders, 100 percent of the dividend amount was subject to federal withholding tax. For quarterly dividends paid in 2013, we estimate that 100 percent of the total dividend amount is subject to federal withholding tax unless exempted by tax treaty. The withholding tax rate may also be reduced by tax treaty. If you have any questions, please contact the Investor Relations Department. FCX BENEFICIAL OWNER The beneficial owner of more than five percent of our outstanding common stock as of December 31, 2012, is BlackRock, Inc. (8.85 percent).
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Our Principles of Business Conduct " }, { "bbox": [ 0.09477394079071244, 0.15187781748145518, 0.47876619825176164, 0.16095856945924084 ], "ocr": false, "ocr_confidence": 1, "text": "and our annual report on Form 10-K filed with the Securities and " }, { "bbox": [ 0.09505253212124694, 0.16443241003787878, 0.48185605317159413, 0.1736599700619476 ], "ocr": false, "ocr_confidence": 1, "text": "Exchange Commission, which includes certifications of our Chief " }, { "bbox": [ 0.09505253212124694, 0.1770555130159012, 0.48140013451669733, 0.18554918693773675 ], "ocr": false, "ocr_confidence": 1, "text": "Executive Officer and Chief Financial Officer, are available on our " }, { "bbox": [ 0.09424207724776923, 0.1897471264155224, 0.4614553015216503, 0.19890617601799243 ], "ocr": false, "ocr_confidence": 1, "text": "website. Additionally, copies will be furnished without charge " }, { "bbox": [ 0.09421675189647799, 0.20237022939354482, 0.47078824510761336, 0.2114509813713305 ], "ocr": false, "ocr_confidence": 1, "text": "to any stockholder of the company entitled to vote at its annual " }, { "bbox": [ 0.09521715625438815, 0.21514006335325916, 0.4870733622631995, 0.22415238197403725 ], "ocr": false, "ocr_confidence": 1, "text": "meeting upon written request. The Investor Relations Department " }, { "bbox": [ 0.09459665086534289, 0.22761643534958964, 0.26194346808140573, 0.23496523770419034 ], "ocr": false, "ocr_confidence": 1, "text": "can be contacted as follows:" }, { "bbox": [ 0.09510318905699487, 0.250396728515625, 0.3266787310830908, 0.25954599091500946 ], "ocr": false, "ocr_confidence": 1, "text": "Freeport-McMoRan Copper & Gold Inc." }, { "bbox": [ 0.0952298220466165, 0.26323507289693815, 0.27599982966005415, 0.2721690938930319 ], "ocr": false, "ocr_confidence": 1, "text": "Investor Relations Department" }, { "bbox": [ 0.0945586597218233, 0.2756429344716698, 0.24781111174938725, 0.2830602472478693 ], "ocr": false, "ocr_confidence": 1, "text": "333 North Central Avenue" }, { "bbox": [ 0.09521715625438815, 0.28842263269906093, 0.233754725238077, 0.296759788436119 ], "ocr": false, "ocr_confidence": 1, "text": "Phoenix, Arizona 85004" }, { "bbox": [ 0.0942800683912888, 0.3011044588955966, 0.24563299440870098, 0.31003847989169037 ], "ocr": false, "ocr_confidence": 1, "text": "Telephone (602) 366-8400" }, { "bbox": [ 0.09424207724776923, 0.31358083089192706, 0.1746040045046339, 0.3209296332465278 ], "ocr": false, "ocr_confidence": 1, "text": "www.fcx.com" }, { "bbox": [ 0.09421062469482422, 0.3372853597005208, 0.23803738363428054, 0.3476325141059028 ], "ocr": false, "ocr_confidence": 1, "text": "TRANSFER AGENT" }, { "bbox": [ 0.09493856492385365, 0.35857603285047746, 0.4839834574780433, 0.3677351209852431 ], "ocr": false, "ocr_confidence": 1, "text": "Questions about lost certificates, lost or missing dividend checks, " }, { "bbox": [ 0.09481193193423203, 0.37119913582849984, 0.4649504119274663, 0.38035822396326546 ], "ocr": false, "ocr_confidence": 1, "text": "or notifications of change of address should be directed to the " }, { "bbox": [ 0.09510318905699487, 0.3837537669172191, 0.4724217832478043, 0.3929813269412879 ], "ocr": false, "ocr_confidence": 1, "text": "Freeport-McMoRan Copper & Gold Inc. transfer agent, registrar " }, { "bbox": [ 0.09477394079071244, 0.3965921498308278, 0.2978315166398591, 0.4056044299193103 ], "ocr": false, "ocr_confidence": 1, "text": "and dividend disbursement agent:" }, { "bbox": [ 0.09481193193423203, 0.41922567348287565, 0.18633030910117954, 0.4283749744145557 ], "ocr": false, "ocr_confidence": 1, "text": "Computershare" }, { "bbox": [ 0.09477394079071244, 0.43191724835020123, 0.19511869841930912, 0.4409980773925781 ], "ocr": false, "ocr_confidence": 1, "text": "250 Royall Street" }, { "bbox": [ 0.09481193193423203, 0.44447187943892047, 0.2017796584983277, 0.452965553360756 ], "ocr": false, "ocr_confidence": 1, "text": "Canton, MA 02021" }, { "bbox": [ 0.09424207724776923, 0.4573102623525292, 0.3007061278897952, 0.46624428334862295 ], "ocr": false, "ocr_confidence": 1, "text": "www.computershare.com/investor" }, { "bbox": [ 0.09525310291963465, 0.4808459426417495, 0.3296680824429381, 0.4911931741117227 ], "ocr": false, "ocr_confidence": 1, "text": "NOTICE OF ANNUAL MEETING" }, { "bbox": [ 0.0942800683912888, 0.5021366543240018, 0.4537306143567453, 0.5112957424587674 ], "ocr": false, "ocr_confidence": 1, "text": "The annual meeting of stockholders will be held in late June " }, { "bbox": [ 0.09481193193423203, 0.5147597573020242, 0.4346975189408446, 0.5239188454367898 ], "ocr": false, "ocr_confidence": 1, "text": "or July 2013. 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In accordance with SEC rules, we will report the " }, { "bbox": [ 0.09430539374258004, 0.5400059632580689, 0.46919260461345996, 0.5491650513928346 ], "ocr": false, "ocr_confidence": 1, "text": "voting results of our annual meeting on a Form 8-K that will be " }, { "bbox": [ 0.09477394079071244, 0.5526290662360914, 0.3365308973524306, 0.5607704779114386 ], "ocr": false, "ocr_confidence": 1, "text": "available on our website (www.fcx.com)." }, { "bbox": [ 0.09518120958914164, 0.5763004958027541, 0.26751454671223956, 0.5866477272727273 ], "ocr": false, "ocr_confidence": 1, "text": "FCX COMMON STOCK " }, { "bbox": [ 0.09510318905699487, 0.5975227355957031, 0.45988504247727735, 0.6067502956197719 ], "ocr": false, "ocr_confidence": 1, "text": "FCX’s common stock trades on the New York Stock Exchange " }, { "bbox": [ 0.09505253212124694, 0.6101458385737255, 0.4833756490470537, 0.6192951395054056 ], "ocr": false, "ocr_confidence": 1, "text": "(NYSE) under the symbol “FCX.” The FCX common stock price is " }, { "bbox": [ 0.09528047274919896, 0.622768941551748, 0.49325307210286456, 0.6319965015758168 ], "ocr": false, "ocr_confidence": 1, "text": "reported daily in the financial press under “FMCG” in most listings " }, { "bbox": [ 0.09481193193423203, 0.6354605164190735, 0.4523503421957976, 0.6438857184516059 ], "ocr": false, "ocr_confidence": 1, "text": "of NYSE securities. As of December 31, 2012, the number of " }, { "bbox": [ 0.09524248160567939, 0.6480151475077928, 0.4129924898833231, 0.6565088214296283 ], "ocr": false, "ocr_confidence": 1, "text": "holders of record of FCX’s common stock was 16,214." }, { "bbox": [ 0.09535645503623813, 0.6709324615170257, 0.46692587659249896, 0.6800915496517913 ], "ocr": false, "ocr_confidence": 1, "text": "NYSE composite tape common stock price ranges during 2012 " }, { "bbox": [ 0.09477394079071244, 0.6837023340090357, 0.18387361912945516, 0.6909043668496488 ], "ocr": false, "ocr_confidence": 1, "text": "and 2011 were:" }, { "bbox": [ 0.09510931625864864, 0.844356074477687, 0.32233476327135674, 0.8547032963145863 ], "ocr": false, "ocr_confidence": 1, "text": "COMMON STOCK DIVIDENDS" }, { "bbox": [ 0.0952298220466165, 0.8656467861599393, 0.4627974267099418, 0.8747275959361683 ], "ocr": false, "ocr_confidence": 1, "text": "In February 2012, the Board of Directors authorized an increase " }, { "bbox": [ 0.09515383975957734, 0.8782013979825106, 0.4729028838911867, 0.8856186914925623 ], "ocr": false, "ocr_confidence": 1, "text": "in the cash dividend on FCX common stock to the current annual " }, { "bbox": [ 0.09528047274919896, 0.8905211650963986, 0.4833247864168454, 0.8999738115252871 ], "ocr": false, "ocr_confidence": 1, "text": "rate of $1.25 per share ($0.3125 per share quarterly). Dividends are " }, { "bbox": [ 0.0951285144082861, 0.9035161047270803, 0.4793105281256383, 0.9125969145033095 ], "ocr": false, "ocr_confidence": 1, "text": "paid quarterly as declared by the Board of Directors. The Board of " }, { "bbox": [ 0.09521715625438815, 0.9162859964852381, 0.4773350634606056, 0.9252200271144058 ], "ocr": false, "ocr_confidence": 1, "text": "Directors also authorized a supplemental common stock dividend " }, { "bbox": [ 0.09421675189647799, 0.9287780944747154, 0.4702299030777676, 0.9378589042509445 ], "ocr": false, "ocr_confidence": 1, "text": "that was paid in June 2011. Below is a summary of dividends on " }, { "bbox": [ 0.09510318905699487, 0.9413358611289901, 0.31816886453067555, 0.9487531594555787 ], "ocr": false, "ocr_confidence": 1, "text": "FCX common stock for 2012 and 2011:" }, { "bbox": [ 0.5177441765280331, 0.49896937668925584, 0.8775999779794731, 0.5063181790438566 ], "ocr": false, "ocr_confidence": 1, "text": "The declaration of dividends is at the discretion of the Board " }, { "bbox": [ 0.5182760400709763, 0.511524007777975, 0.8736616147109886, 0.5206733087096551 ], "ocr": false, "ocr_confidence": 1, "text": "of Directors and will depend on FCX’s financial results, cash " }, { "bbox": [ 0.5187446245181015, 0.5242155826453007, 0.9119557898029004, 0.5332964116876776 ], "ocr": false, "ocr_confidence": 1, "text": "requirements, future prospects and other factors deemed relevant " }, { "bbox": [ 0.5185926350113613, 0.536838685623323, 0.6699328952365451, 0.5459195146657 ], "ocr": false, "ocr_confidence": 1, "text": "by the Board of Directors." }, { "bbox": [ 0.5176732181723601, 0.5605031793767755, 0.6884608050577001, 0.5708504108467487 ], "ocr": false, "ocr_confidence": 1, "text": "TAX WITHHOLDING – " }, { "bbox": [ 0.518715702630336, 0.5769198639224274, 0.8185913983513328, 0.5872670953924005 ], "ocr": false, "ocr_confidence": 1, "text": "NONRESIDENT ALIEN STOCKHOLDERS" }, { "bbox": [ 0.5188190235811121, 0.5982080324731692, 0.9055971631816789, 0.6072888615155461 ], "ocr": false, "ocr_confidence": 1, "text": "Nonresident aliens who own stock in a United States corporation " }, { "bbox": [ 0.5182364968692555, 0.6108311354511916, 0.9021526660794527, 0.6199902235859572 ], "ocr": false, "ocr_confidence": 1, "text": "are generally subject to a federal withholding tax on 100 percent " }, { "bbox": [ 0.5182744942459405, 0.623454238429214, 0.8577802072163501, 0.6325350674715909 ], "ocr": false, "ocr_confidence": 1, "text": "of the dividends paid on preferred and/or common stock. " }, { "bbox": [ 0.5187050813163807, 0.6360773414072364, 0.896530251097835, 0.6451581704496133 ], "ocr": false, "ocr_confidence": 1, "text": "However, when 80 percent or more of a corporation’s income is " }, { "bbox": [ 0.5182112151501226, 0.6487004443852589, 0.9039130117378983, 0.6578595325200245 ], "ocr": false, "ocr_confidence": 1, "text": "generated outside the United States, the withholding percentage " }, { "bbox": [ 0.5186164207707823, 0.6613235858955768, 0.9119668599047692, 0.6704044149379538 ], "ocr": false, "ocr_confidence": 1, "text": "is not calculated on 100 percent of the dividend, but rather on that " }, { "bbox": [ 0.5185910891863256, 0.6739466888735993, 0.8912369472528595, 0.683105777008365 ], "ocr": false, "ocr_confidence": 1, "text": "portion of the dividend attributable to income generated in the " }, { "bbox": [ 0.5187683604121988, 0.6865698111177695, 0.8993667901731005, 0.6956506208939985 ], "ocr": false, "ocr_confidence": 1, "text": "United States. We have determined that, for quarterly dividends " }, { "bbox": [ 0.5185910891863256, 0.6991929140957919, 0.9067622166053921, 0.708273723872021 ], "ocr": false, "ocr_confidence": 1, "text": "paid in 2012 to nonresident alien stockholders, 100 percent of the " }, { "bbox": [ 0.5182491626614839, 0.7118160170738144, 0.8535632962494893, 0.72097510520858 ], "ocr": false, "ocr_confidence": 1, "text": "dividend amount was subject to federal withholding tax." }, { "bbox": [ 0.5185657576018688, 0.734811590175436, 0.9120175230736826, 0.7437456304376776 ], "ocr": false, "ocr_confidence": 1, "text": "For quarterly dividends paid in 2013, we estimate that 100 percent " }, { "bbox": [ 0.5182744942459405, 0.7472879236394708, 0.9050147362004698, 0.7564470117742365 ], "ocr": false, "ocr_confidence": 1, "text": "of the total dividend amount is subject to federal withholding tax " }, { "bbox": [ 0.5187050813163807, 0.7600577961314808, 0.9074207380706188, 0.769070114752259 ], "ocr": false, "ocr_confidence": 1, "text": "unless exempted by tax treaty. The withholding tax rate may also " }, { "bbox": [ 0.5185910891863256, 0.772680918375651, 0.6643341164183773, 0.7816149586378925 ], "ocr": false, "ocr_confidence": 1, "text": "be reduced by tax treaty." }, { "bbox": [ 0.5186924155241524, 0.7953829331831499, 0.8382025824652778, 0.804463742959379 ], "ocr": false, "ocr_confidence": 1, "text": "If you have any questions, please contact the Investor " }, { "bbox": [ 0.5186544181474673, 0.8081528249413076, 0.6502271166034773, 0.8170868652035491 ], "ocr": false, "ocr_confidence": 1, "text": "Relations Department." }, { "bbox": [ 0.518643796833512, 0.8317152659098307, 0.7113775116166258, 0.8420624973798039 ], "ocr": false, "ocr_confidence": 1, "text": "FCX BENEFICIAL OWNER" }, { "bbox": [ 0.5177426307029973, 0.8530059872251569, 0.9113083384395425, 0.8621650849929964 ], "ocr": false, "ocr_confidence": 1, "text": "The beneficial owner of more than five percent of our outstanding " }, { "bbox": [ 0.5180592256433824, 0.8656290902031792, 0.8634533850975286, 0.8740542826026377 ], "ocr": false, "ocr_confidence": 1, "text": "common stock as of December 31, 2012, is BlackRock, Inc. 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"0.25 " }, { "bbox": [ 0.7357059054904513, 0.39838447956123735, 0.8044771680644914, 0.40785922426165955 ], "ocr": false, "ocr_confidence": 1, "text": "Apr. 15, 2011 " }, { "bbox": [ 0.8385424645118464, 0.39838447956123735, 0.901130726134855, 0.4075965881347656 ], "ocr": false, "ocr_confidence": 1, "text": "May 1, 2011" }, { "bbox": [ 0.5179150151271447, 0.4177986299148714, 0.6428431093303206, 0.42716224747474746 ], "ocr": false, "ocr_confidence": 1, "text": "Supplemental Dividend " }, { "bbox": [ 0.679091559516059, 0.4181016478875671, 0.7012745477015676, 0.4253238716510811 ], "ocr": false, "ocr_confidence": 1, "text": "0.50 " }, { "bbox": [ 0.7353006998697916, 0.41795013890121924, 0.8044771680644914, 0.42716224747474746 ], "ocr": false, "ocr_confidence": 1, "text": "May 15, 2011 " }, { "bbox": [ 0.834477144129136, 0.41795013890121924, 0.901130726134855, 0.426212773178563 ], "ocr": false, "ocr_confidence": 1, "text": "June 1, 2011" }, { "bbox": [ 0.5173398684832006, 0.4373642892548532, 0.5934574900109784, 0.4448996264525134 ], "ocr": false, "ocr_confidence": 1, "text": "Third Quarter " }, { "bbox": [ 0.6789608126372294, 0.43766730722754893, 0.7013137418460222, 0.444889530991063 ], "ocr": false, "ocr_confidence": 1, "text": "0.25 " }, { "bbox": [ 0.7348954443838082, 0.43751579824120107, 0.8044640534843495, 0.44672790681472935 ], "ocr": false, "ocr_confidence": 1, "text": "July 15, 2011 " }, { "bbox": [ 0.8363987043792126, 0.43751579824120107, 0.901130726134855, 0.44675823173137624 ], "ocr": false, "ocr_confidence": 1, "text": "Aug. 1, 2011" }, { "bbox": [ 0.5181242001602073, 0.45692994859483504, 0.6011830248863869, 0.46446528579249524 ], "ocr": false, "ocr_confidence": 1, "text": "Fourth Quarter " }, { "bbox": [ 0.6789608126372294, 0.45723296656753076, 0.7013137418460222, 0.4644551903310448 ], "ocr": false, "ocr_confidence": 1, "text": "0.25 " }, { "bbox": [ 0.7364901873021344, 0.4569602349791864, 0.8044901829139859, 0.46534409185852665 ], "ocr": false, "ocr_confidence": 1, "text": "Oct. 15, 2011 " }, { "bbox": [ 0.8376536649816176, 0.4570814575811829, 0.9011437908496732, 0.46534409185852665 ], "ocr": false, "ocr_confidence": 1, "text": "Nov. 1, 2011" }, { "bbox": [ 0.09571895724028544, 0.05839523161300505, 0.31567006329305813, 0.06780181268248896 ], "ocr": false, "ocr_confidence": 1, "text": "Stockhkholder r Information" }, { "bbox": [ 0.26729229696435863, 0.7061129868632615, 0.290115830165888, 0.7133352106267755 ], "ocr": false, "ocr_confidence": 1, "text": "2012 " }, { "bbox": [ 0.415985107421875, 0.7061129868632615, 0.4373968785105188, 0.7133352106267755 ], "ocr": false, "ocr_confidence": 1, "text": "2011" }, { "bbox": [ 0.22735441120621425, 0.7282316805136324, 0.2514655169318704, 0.7348162718493529 ], "ocr": false, "ocr_confidence": 1, "text": "HIGH " }, { "bbox": [ 0.3019181295158037, 0.7282316805136324, 0.3247138877320134, 0.7348162718493529 ], "ocr": false, "ocr_confidence": 1, "text": "LOW " }, { "bbox": [ 0.3744115891799428, 0.7282316805136324, 0.39852269490559894, 0.7348162718493529 ], "ocr": false, "ocr_confidence": 1, "text": "HIGH " }, { "bbox": [ 0.45210929322086907, 0.7282316805136324, 0.47490502650441685, 0.7348162718493529 ], "ocr": false, "ocr_confidence": 1, "text": "LOW" }, { "bbox": [ 0.09507009718153211, 0.7518958274764244, 0.1665210723876953, 0.7594311839402325 ], "ocr": false, "ocr_confidence": 1, "text": "First Quarter " }, { "bbox": [ 0.21854722266103707, 0.7514210710621844, 0.256978602191202, 0.7602897605510673 ], "ocr": false, "ocr_confidence": 1, "text": "$ 48.96 " }, { "bbox": [ 0.2927302441565819, 0.7514210710621844, 0.3305080139559079, 0.7602897605510673 ], "ocr": false, "ocr_confidence": 1, "text": "$ 36.76 " }, { "bbox": [ 0.365985147314134, 0.7516230958880801, 0.40382826562021296, 0.7600776402637212 ], "ocr": false, "ocr_confidence": 1, "text": "$ 61.35 " }, { "bbox": [ 0.44039034375957414, 0.7516230958880801, 0.4793053919972937, 0.7600776402637212 ], "ocr": false, "ocr_confidence": 1, "text": "$ 46.20" }, { "bbox": [ 0.09484788483264399, 0.7714614868164062, 0.18337075227226307, 0.7790675500426629 ], "ocr": false, "ocr_confidence": 1, "text": "Second Quarter " }, { "bbox": [ 0.22793284896152471, 0.771764504789102, 0.25693940804674736, 0.778986728552616 ], "ocr": false, "ocr_confidence": 1, "text": "39.43 " }, { "bbox": [ 0.30347532384535847, 0.771764504789102, 0.3304949492410897, 0.778986728552616 ], "ocr": false, "ocr_confidence": 1, "text": "31.16 " }, { "bbox": [ 0.37560603821199706, 0.7717847149781506, 0.4038152009053947, 0.7790473398536143 ], "ocr": false, "ocr_confidence": 1, "text": "58.75 " }, { "bbox": [ 0.4500635683146957, 0.7717847149781506, 0.4792531331380208, 0.7790473398536143 ], "ocr": false, "ocr_confidence": 1, "text": "46.06" }, { "bbox": [ 0.09427274442186542, 0.7910271461563881, 0.1703903846491396, 0.7985625026201961 ], "ocr": false, "ocr_confidence": 1, "text": "Third Quarter " }, { "bbox": [ 0.22801131204841962, 0.7913301641290839, 0.2570047814861622, 0.7985523878925979 ], "ocr": false, "ocr_confidence": 1, "text": "43.65 " }, { "bbox": [ 0.3022335276884191, 0.7913301641290839, 0.3304949741737515, 0.7985523878925979 ], "ocr": false, "ocr_confidence": 1, "text": "31.08 " }, { "bbox": [ 0.3755929984298407, 0.7913503743181325, 0.40380216112323836, 0.7986129991935961 ], "ocr": false, "ocr_confidence": 1, "text": "56.78 " }, { "bbox": [ 0.4498936771567351, 0.7913503743181325, 0.478991739111009, 0.7986129991935961 ], "ocr": false, "ocr_confidence": 1, "text": "30.37" }, { "bbox": [ 0.09505705739937577, 0.8105928054963699, 0.17811586965922438, 0.8181281619601779 ], "ocr": false, "ocr_confidence": 1, "text": "Fourth Quarter " }, { "bbox": [ 0.22790671953188826, 0.8108958234690656, 0.2569655374763838, 0.8181180472325797 ], "ocr": false, "ocr_confidence": 1, "text": "42.89 " }, { "bbox": [ 0.3014753503737107, 0.8108958234690656, 0.3305864770428028, 0.8181180472325797 ], "ocr": false, "ocr_confidence": 1, "text": "30.54 " }, { "bbox": [ 0.37452109343086193, 0.8109160336581144, 0.4038675096299913, 0.818178658533578 ], "ocr": false, "ocr_confidence": 1, "text": "43.50 " }, { "bbox": [ 0.45039038564644607, 0.8109160336581144, 0.4792270037083844, 0.818178658533578 ], "ocr": false, "ocr_confidence": 1, "text": "28.85" }, { "bbox": [ 0.6992506638071896, 0.16634245593138416, 0.722074172076057, 0.17356471822719383 ], "ocr": false, "ocr_confidence": 1, "text": "2012" }, { "bbox": [ 0.6586780922085631, 0.1859358970565025, 0.7054705650977839, 0.19252052692451863 ], "ocr": false, "ocr_confidence": 1, "text": "AMOUNT " }, { "bbox": [ 0.8370294508591197, 0.1860419379340278, 0.8874706193512562, 0.192423271410393 ], "ocr": false, "ocr_confidence": 1, "text": "PAYMENT" }, { "bbox": [ 0.6539999768624898, 0.19792961351799243, 0.7104803845773335, 0.20451424338600852 ], "ocr": false, "ocr_confidence": 1, "text": "PER SHARE " }, { "bbox": [ 0.7287467507755055, 0.19792961351799243, 0.799089868084278, 0.20451424338600852 ], "ocr": false, "ocr_confidence": 1, "text": "RECORD DATE " }, { "bbox": [ 0.8492793662875306, 0.19803565439551768, 0.8749232074014501, 0.2044169878718829 ], "ocr": false, "ocr_confidence": 1, "text": "DATE" }, { "bbox": [ 0.5181242001602073, 0.221594993514244, 0.5895751753663705, 0.2291303692441998 ], "ocr": false, "ocr_confidence": 1, "text": "First Quarter " }, { "bbox": [ 0.6560588163488051, 0.22112027563229955, 0.7012614331214256, 0.2299889458550347 ], "ocr": false, "ocr_confidence": 1, "text": "$ 0.2500 " }, { "bbox": [ 0.7345686270520578, 0.22174650250059186, 0.8058627758150786, 0.2300091367779356 ], "ocr": false, "ocr_confidence": 1, "text": "Jan. 13, 2012 " }, { "bbox": [ 0.8387515996795853, 0.22174650250059186, 0.9022679547079249, 0.2300091367779356 ], "ocr": false, "ocr_confidence": 1, "text": "Feb. 1, 2012" }, { "bbox": [ 0.5179019504123263, 0.24116061432193023, 0.6064248178519455, 0.24876665828203914 ], "ocr": false, "ocr_confidence": 1, "text": "Second Quarter " }, { "bbox": [ 0.6663856257021038, 0.24146363229462595, 0.7013006272658803, 0.2486858945904356 ], "ocr": false, "ocr_confidence": 1, "text": "0.3125 " }, { "bbox": [ 0.7354313470179739, 0.2413121233082781, 0.8058627259497549, 0.2507869065409959 ], "ocr": false, "ocr_confidence": 1, "text": "Apr. 13, 2012 " }, { "bbox": [ 0.8383071001838235, 0.2413121233082781, 0.9025293487349367, 0.25052427041410197 ], "ocr": false, "ocr_confidence": 1, "text": "May 1, 2012" }, { "bbox": [ 0.5173268037683824, 0.2607263121942077, 0.5934444252961601, 0.2682616879241635 ], "ocr": false, "ocr_confidence": 1, "text": "Third Quarter " }, { "bbox": [ 0.6663856257021038, 0.2610293301669034, 0.7013006272658803, 0.2682515924627131 ], "ocr": false, "ocr_confidence": 1, "text": "0.3125 " }, { "bbox": [ 0.7346078211965125, 0.2608778211805556, 0.8058496612349367, 0.27008996828637943 ], "ocr": false, "ocr_confidence": 1, "text": "July 13, 2012 " }, { "bbox": [ 0.8361502753363715, 0.2608778211805556, 0.9025162840201184, 0.27012025467073075 ], "ocr": false, "ocr_confidence": 1, "text": "Aug. 1, 2012" }, { "bbox": [ 0.5180980707305709, 0.2802919330018939, 0.6011568954567504, 0.28782730873184975 ], "ocr": false, "ocr_confidence": 1, "text": "Fourth Quarter " }, { "bbox": [ 0.6663725609872856, 0.28059495097458964, 0.7012875625510621, 0.28781721327039933 ], "ocr": false, "ocr_confidence": 1, "text": "0.3125 " }, { "bbox": [ 0.7362287434097988, 0.28032221938624524, 0.8058627259497549, 0.28870607626558553 ], "ocr": false, "ocr_confidence": 1, "text": "Oct. 15, 2012 " }, { "bbox": [ 0.8373921712239584, 0.2804434419882418, 0.9025162840201184, 0.28870607626558553 ], "ocr": false, "ocr_confidence": 1, "text": "Nov. 1, 2012" }, { "bbox": [ 0.5187683604121988, 0.12652318164555712, 0.8991007088056577, 0.1356724440449416 ], "ocr": false, "ocr_confidence": 1, "text": "Below is a summary of dividends on FCX common stock for 2012 " }, { "bbox": [ 0.5182364968692555, 0.13936152602687027, 0.5732463263218699, 0.14656359739977903 ], "ocr": false, "ocr_confidence": 1, "text": "and 2011:" } ]
[ { "bbox": [ 0.09439810584573184, 0.056853939788510104, 0.31567370346169066, 0.06827753240411932 ], "data": [], "index_in_doc": 1459, "label": "page_header", "text": "Stockhkholder r Information" }, { "bbox": [ 0.09299731410406774, 0.10418477684560448, 0.26360849617353455, 0.11568805424854009 ], "data": [], "index_in_doc": 1460, "label": "section_header", "text": "INVESTOR INQUIRIES" }, { "bbox": [ 0.09256923276614519, 0.12580139468414614, 0.4870733622631995, 0.2365586251923532 ], "data": [], "index_in_doc": 1461, "label": "text", "text": "The Investor Relations Department will be pleased to receive any inquiries about the company. Our Principles of Business Conduct and our annual report on Form 10-K filed with the Securities and Exchange Commission, which includes certifications of our Chief Executive Officer and Chief Financial Officer, are available on our website. Additionally, copies will be furnished without charge to any stockholder of the company entitled to vote at its annual meeting upon written request. The Investor Relations Department can be contacted as follows:" }, { "bbox": [ 0.09301355773327398, 0.24919737228239425, 0.32680314506580627, 0.32211373069069604 ], "data": [], "index_in_doc": 1462, "label": "text", "text": "Freeport-McMoRan Copper & Gold Inc. Investor Relations Department 333 North Central Avenue Phoenix, Arizona 85004 Telephone (602) 366-8400 www.fcx.com" }, { "bbox": [ 0.09228896471410016, 0.3368124913687658, 0.23882946936912786, 0.34781777738320707 ], "data": [], "index_in_doc": 1463, "label": "section_header", "text": "TRANSFER AGENT" }, { "bbox": [ 0.0930582432965048, 0.35795088488646226, 0.48406768000982947, 0.4062070750226878 ], "data": [], "index_in_doc": 1464, "label": "text", "text": "Questions about lost certificates, lost or missing dividend checks, or notifications of change of address should be directed to the Freeport-McMoRan Copper & Gold Inc. transfer agent, registrar and dividend disbursement agent:" }, { "bbox": [ 0.09330136168236826, 0.4183284489795415, 0.30092379002789266, 0.4671263646597814 ], "data": [], "index_in_doc": 1465, "label": "text", "text": "Computershare 250 Royall Street Canton, MA 02021 www.computershare.com/investor" }, { "bbox": [ 0.09323443618475222, 0.47968064895784013, 0.3296680824429381, 0.4911931741117227 ], "data": [], "index_in_doc": 1466, "label": "section_header", "text": "NOTICE OF ANNUAL MEETING" }, { "bbox": [ 0.09273601980770335, 0.5010518931379222, 0.47034962972005206, 0.5615365384805082 ], "data": [], "index_in_doc": 1467, "label": "text", "text": "The annual meeting of stockholders will be held in late June or July 2013. Notice of the annual meeting will be sent to stockholders. In accordance with SEC rules, we will report the voting results of our annual meeting on a Form 8-K that will be available on our website (www.fcx.com)." }, { "bbox": [ 0.09303064907298368, 0.5756425183228772, 0.26751454671223956, 0.5870863789259785 ], "data": [], "index_in_doc": 1468, "label": "section_header", "text": "FCX COMMON STOCK" }, { "bbox": [ 0.09282734814812155, 0.5969795072921599, 0.4933139576631434, 0.6569148362284959 ], "data": [], "index_in_doc": 1469, "label": "text", "text": "FCX's common stock trades on the New York Stock Exchange (NYSE) under the symbol \"FCX.\" The FCX common stock price is reported daily in the financial press under \"FMCG\" in most listings of NYSE securities. As of December 31, 2012, the number of holders of record of FCX's common stock was 16,214." }, { "bbox": [ 0.09300716250550513, 0.6702584931344697, 0.4672620686051113, 0.692475058815696 ], "data": [], "index_in_doc": 1470, "label": "text", "text": "NYSE composite tape common stock price ranges during 2012 and 2011 were:" }, { "bbox": [ 0.09271326875374987, 0.7004658092151989, 0.4822199703042024, 0.8234840932518545 ], "data": [ { "html_seq": "<table><tr><td></td><th colspan=\"2\">2012</th><th colspan=\"2\">2011</th></tr><tr><td></td><th>HIGH</th><th>LOW</th><th>HIGH</th><th>LOW</th></tr><tr><td>First Quarter</td><td>$ 48.96</td><td>$ 36.76</td><td>$ 61.35</td><td>$ 46.20</td></tr><tr><td>Second Quarter</td><td>39.43</td><td>31.16</td><td>58.75</td><td>46.06</td></tr><tr><td>Third Quarter</td><td>43.65</td><td>31.08</td><td>56.78</td><td>30.37</td></tr><tr><td>Fourth Quarter</td><td>42.89</td><td>30.54</td><td>43.50</td><td>28.85</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 1471, "label": "table", "text": "" }, { "bbox": [ 0.09349303152046952, 0.8434374260179924, 0.3228570277394812, 0.8547032963145863 ], "data": [], "index_in_doc": 1472, "label": "section_header", "text": "COMMON STOCK DIVIDENDS" }, { "bbox": [ 0.09286548265444687, 0.8647593488596906, 0.4843713598313674, 0.9380835330847538 ], "data": [], "index_in_doc": 1473, "label": "text", "text": "In February 2012, the Board of Directors authorized an increase in the cash dividend on FCX common stock to the current annual rate of $1.25 per share ($0.3125 per share quarterly). Dividends are paid quarterly as declared by the Board of Directors. The Board of Directors also authorized a supplemental common stock dividend that was paid in June 2011. Below is a summary of dividends on" }, { "bbox": [ 0.09510318905699487, 0.9413358611289901, 0.31816886453067555, 0.9487531594555787 ], "data": [], "index_in_doc": 1474, "label": "text", "text": "FCX common stock for 2012 and 2011:" }, { "bbox": [ 0.516953362358941, 0.12540343313506155, 0.8998696320976307, 0.14786144218059502 ], "data": [], "index_in_doc": 1475, "label": "text", "text": "Below is a summary of dividends on FCX common stock for 2012 and 2011:" }, { "bbox": [ 0.5154941035251991, 0.15967906605113635, 0.9080451516544118, 0.2960058655401673 ], "data": [ { "html_seq": "<table><tr><th colspan=\"4\">2012</th></tr><tr><td></td><th>AMOUNT</th><td></td><th>PAYMENT</th></tr><tr><td></td><th>PER SHARE</th><th>RECORD DATE</th><th>DATE</th></tr><tr><td>First Quarter</td><td>$ 0.2500</td><td>Jan. 13, 2012</td><td>Feb. 1, 2012</td></tr><tr><td>Second Quarter</td><td>0.3125</td><td>Apr. 13, 2012</td><td>May 1, 2012</td></tr><tr><td>Third Quarter</td><td>0.3125</td><td>July 13, 2012</td><td>Aug. 1, 2012</td></tr><tr><td>Fourth Quarter</td><td>0.3125</td><td>Oct. 15, 2012</td><td>Nov. 1, 2012</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 1476, "label": "table", "text": "" }, { "bbox": [ 0.5152500626308466, 0.32221846147017047, 0.9047130509918812, 0.4673483877470999 ], "data": [ { "html_seq": "<table><tr><td></td><th colspan=\"3\">2011</th></tr><tr><td></td><th>AMOUNT</th><td></td><th>PAYMENT DATE</th></tr><tr><td></td><th>PER SHARE</th><th>RECORD DATE</th><td></td></tr><tr><td>First Quarter</td><td>$ 0.25</td><td>Jan. 15, 2011</td><td>Feb. 1, 2011</td></tr><tr><td>Second Quarter</td><td>0.25</td><td>Apr. 15, 2011</td><td>May 1, 2011</td></tr><tr><td>Supplemental Dividend</td><td>0.50</td><td>May 15, 2011</td><td>June 1, 2011</td></tr><tr><td>Third Quarter</td><td>0.25</td><td>July 15, 2011</td><td>Aug. 1, 2011</td></tr><tr><td>Fourth Quarter</td><td>0.25</td><td>Oct. 15, 2011</td><td>Nov. 1, 2011</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 1477, "label": "table", "text": "" }, { "bbox": [ 0.5162558960758783, 0.49753593676017993, 0.9119618733723959, 0.5459195146657 ], "data": [], "index_in_doc": 1478, "label": "text", "text": "The declaration of dividends is at the discretion of the Board of Directors and will depend on FCX's financial results, cash requirements, future prospects and other factors deemed relevant by the Board of Directors." }, { "bbox": [ 0.515882055743847, 0.5590330952345722, 0.8192888147690717, 0.5872670953924005 ], "data": [], "index_in_doc": 1479, "label": "section_header", "text": "TAX WITHHOLDING - NONRESIDENT ALIEN STOCKHOLDERS" }, { "bbox": [ 0.5160938337737438, 0.5971074730458886, 0.9121784883386949, 0.7215084499782987 ], "data": [], "index_in_doc": 1480, "label": "text", "text": "Nonresident aliens who own stock in a United States corporation are generally subject to a federal withholding tax on 100 percent of the dividends paid on preferred and/or common stock. However, when 80 percent or more of a corporation's income is generated outside the United States, the withholding percentage is not calculated on 100 percent of the dividend, but rather on that portion of the dividend attributable to income generated in the United States. We have determined that, for quarterly dividends paid in 2012 to nonresident alien stockholders, 100 percent of the dividend amount was subject to federal withholding tax." }, { "bbox": [ 0.5162865133846507, 0.7336271652067551, 0.9125916724111519, 0.7816149586378925 ], "data": [], "index_in_doc": 1481, "label": "text", "text": "For quarterly dividends paid in 2013, we estimate that 100 percent of the total dividend amount is subject to federal withholding tax unless exempted by tax treaty. The withholding tax rate may also be reduced by tax treaty." }, { "bbox": [ 0.5167306139578227, 0.794409241339173, 0.8384028416053921, 0.8170868652035491 ], "data": [], "index_in_doc": 1482, "label": "text", "text": "If you have any questions, please contact the Investor Relations Department." }, { "bbox": [ 0.5165052226945466, 0.830675452646583, 0.7119847715290544, 0.8420624973798039 ], "data": [], "index_in_doc": 1483, "label": "section_header", "text": "FCX BENEFICIAL OWNER" }, { "bbox": [ 0.5163158341950062, 0.8520090122415562, 0.9124935374540442, 0.8873330125905047 ], "data": [], "index_in_doc": 1484, "label": "text", "text": "The beneficial owner of more than five percent of our outstanding common stock as of December 31, 2012, is BlackRock, Inc. (8.85 percent)." } ]
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333 North Central Avenue Phoenix, Arizona 85004 602.366.8100 www.fcx.com
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Alexandria Real Estate EQuities, inG. 1998 ANNUAL REPORT Under market conditions, as well as during volatile times, Alexandria's strategy is solid, providing shareholders with a steady and consistent growth opportun Growing a quality asset base and servicing our tenants is foremost on our minds By providing state-of-the-art facilities that meet the demanding needs of the scientific research community; ARE is becoming the landlord of choice for the life science industry in its target marketsattracting tenants that are the leaders in their business segments good ity.
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[]
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ourniche focus made us less susceptible to swings impacting the broader REIT market, Alexandria Real Estate Equities, Inc. 's performance compared to NAREIT Index and S&P 500 Index (Total return performance 28, 1997 to December 1998) May 31 , ALEXANDRIA IS THE ONLY PUBLICLY TRADED REAL ESTATE INVESTMENT TRUST REIT) THAT FILLS A UNIQUE NICHE WITH ^ PRINCIPAL INVESTMENT FOCUS ON STRATEGICALLY LOCATED PROPERTIES CONTAINING OFFICE/LABORATORY SPACE. ALEXANDRIA ACQUIRES AND MANAGES FACILITIES, AS WELL AS EXPANDS AND CONVERTS SPACE TO MEETTHE NEEDS OF LIFE SCIENCE INDUSTRY TENANTS. ALEXANDRIA WILL ALSO BUILD-TO-SUITAND RETROFIT SPACE AS TENANTS REQUIRE. THE COMPANY'$ STRATEGY IS TO BE THE LANDLORD OF CHOICE TO ORGANIZATIONS WHICH UTILIZE OFFICE/LABORATORY SPACE. COVER PHOTO: 620 MEMORIAL DRIVE, CAMBRIDGE, MASSACHUSETTS COVER QUOTE: JOEL $. MARCUS, CEO
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[ shAReholder Letter ] JER RY M . SU DARSKY CHAIRMA N O F THE BOARD JER RY M . SU DARSKY CHAIRMA N O F THE BOARD JOEI 5 . MA RCUS CHTEF EXECUTIVE OFFICER Deah was our Shareholders as a company During year; we continued to year successfully execute our niche operating strategy; with the objective of becom the landlord of choice for the life science industry in our target markets. In fact, we now own and operate 17 properties in the suburban Washington D.C_ We believe we are now the largest public real estate investment trust (REIT) owning office/laboratory space in that market, and believe that we have developed a very positive reputation among the laboratory user tenant base located there. We are to have achieved this so quickly: 1ing region. proud goal The year was a volatile year for the stock market; and the REIT industry was particularly susceptible to adverse market conditions. Our niche however; made us less susceptible to swings impacting the broader REIT market. Due to the stable demand and limited supply characteristics of laboratory space, our asset base was less sensitive to the traditional supply/ demand cycles affecting office properties generally. focus,
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At the same time, the tightening of the financial markets resulted in a decrease in competition for quality acquisitions. This presented us with an opportunity to make better quality deals at higher yields. During the year; we increased our line of credit by SIoo million, at more favorable rates, which has provided us with additional financial fexibility to be opportunistic in our target markets. An important factor contributing to our steady growth is the broad and diverse industry segments in which our tenants operate. Scientific research expenditures by both the private and public sectors continued to grow. For example, the last I2 consecutive years, there has been an increase in annual research development spending by the pharmaceutical industry; growing during and infrastructure to include ally-based operations and have opened our third such operation in the suburban Washington; D.C. market. With a focus on build a strong franchise in each of ouI target markets , these operations allow uS to be more regioning expertise needed to successfully integrate these disparate industries , providing positive results for our tenants and shareholders . two the year; we named James H. Richardson as President. Jim joined us in August 1997 as Senior Vice President for Acquisitions. Jim's experience in real estate acquisitions and development; specializing in the life science sector; has served our company well. Jim has not only proven himself as an astute deal negotiator; but also a skilled strategist and manager. During During we enhanced our operational 1998, UNIQUE BLEND OF REAL ESTATE EXPERIENCE AND LIFE SCIENCE KNOWLEDGE IS REQUIRED To OPERATE IN THE OFFICE/LA BO RATORY NICHE from billion to over S18 billion according to the Pharmaceutical Research and Manufacturers of America. Research and development spending by the pharmaceutical industry last year increased II%. This is coupled with the National Institutes of Health (NIH) budget, which was increased over to 6 billion this fiscal year; and which is anticipated to double in five years. This year represented the largest annual increase in the NIH's Spending increases reflect the aging of the U.S. population and suggest that the demand for office/laboratory space to accommodate the increase in scientific research should continue to be strong. 53.4 today 14% SI5. budget. A blend of real estate experience and life science knowledge is required to operate in the office/laboratory niche. The skills of our management team enable us to be the focused leader within this niche. With more than 150 years of combined experience in both real estate and life science, our management team has the unique responsive to tenants by maintaining an important presence in the community in which live and work. they inteanaland [xtennalstaatrqig Growth Models Since our founding, we have recognized the need for multiple business models and strategies to achieve our growth objectives. Our strategy has been to limit inherent risk by realizing consistently strong internal while adhering to a strict discipline with respect to acquisitions and external growth. Our three operating models: 1) acquire and manage 2) expand, retrofit and convert and 3) build-to-suit, have enabled us to generate growth through multiple sources while serving the important and complex facilitie needs of the life science industry. growth In our first full year as a publicly-traded company we achieved significant growth both internally and externally, making positive progress utilizing each of our operating models. Since our initial public offering, the number of
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false, "ocr_confidence": 1, "text": "budget." }, { "bbox": [ 0.1410349821347183, 0.7702421093262896, 0.2022381099778614, 0.792468328384148 ], "ocr": false, "ocr_confidence": 1, "text": "unique" } ]
[ { "bbox": [ 0.08384369329475397, 0.038720564408735794, 0.5036697413047645, 0.22937713006530144 ], "data": [], "index_in_doc": 18, "label": "text", "text": "At the same time, the tightening of the financial markets resulted in a decrease in competition for quality acquisitions. This presented us with an opportunity to make better quality deals at higher yields. During the year; we increased our line of credit by SIoo million, at more favorable rates, which has provided us with additional financial fexibility to be opportunistic in our target markets." }, { "bbox": [ 0.08384369329475397, 0.2314814557932844, 0.5054924302894331, 0.29419191919191917 ], "data": [], "index_in_doc": 19, "label": "text", "text": "An important factor contributing to our steady growth is the broad and diverse industry segments in which our tenants operate. Scientific" }, { "bbox": [ 0.08323613261753335, 0.2971380214498501, 0.3608924189643758, 0.4680134551693695 ], "data": [], "index_in_doc": 20, "label": "text", "text": "research expenditures by both the private and public sectors continued to grow. For example, the last I2 consecutive years, there has been an increase in annual research development spending by the pharmaceutical industry; growing during and" }, { "bbox": [ 0.6598416694691919, 0.2903676659169823, 0.942330205073648, 0.4671717171717172 ], "data": [], "index_in_doc": 21, "label": "text", "text": "infrastructure to include ally-based operations and have opened our third such operation in the suburban Washington; D.C. market. With a focus on build a strong franchise in each of ouI target markets , these operations allow uS to be more regioning" }, { "bbox": [ 0.5188587790943002, 0.036616161616161616, 0.9435453681461293, 0.09722222222222222 ], "data": [], "index_in_doc": 22, "label": "text", "text": "expertise needed to successfully integrate these disparate industries , providing positive results for our tenants and shareholders . two" }, { "bbox": [ 0.5188587790943002, 0.10231850363991478, 0.9435453681461293, 0.27314812245995107 ], "data": [], "index_in_doc": 23, "label": "text", "text": "the year; we named James H. Richardson as President. Jim joined us in August 1997 as Senior Vice President for Acquisitions. Jim's experience in real estate acquisitions and development; specializing in the life science sector; has served our company well. Jim has not only proven himself as an astute deal negotiator; but also a skilled strategist and manager. During" }, { "bbox": [ 0.5522747623545751, 0.2748316755198469, 0.9417226791614607, 0.2958753951872238 ], "data": [], "index_in_doc": 24, "label": "text", "text": "During we enhanced our operational 1998," }, { "bbox": [ 0.4374453563204555, 0.3316498573380287, 0.5996646759559577, 0.3425925669043955 ], "data": [], "index_in_doc": 25, "label": "text", "text": "UNIQUE BLEND OF" }, { "bbox": [ 0.3779041735506068, 0.35437709153300584, 0.6415865226033347, 0.36447810163401595 ], "data": [], "index_in_doc": 26, "label": "text", "text": "REAL ESTATE EXPERIENCE AND" }, { "bbox": [ 0.38154955151994396, 0.37710436426027855, 0.6367260371855697, 0.38720537436128866 ], "data": [], "index_in_doc": 27, "label": "text", "text": "LIFE SCIENCE KNOWLEDGE IS" }, { "bbox": [ 0.3754739308417243, 0.398569010724925, 0.644016793124244, 0.4107744236185093 ], "data": [], "index_in_doc": 28, "label": "text", "text": "REQUIRED To OPERATE IN THE" }, { "bbox": [ 0.3888403074586182, 0.4200336571895715, 0.6306503886953234, 0.43350169634578206 ], "data": [], "index_in_doc": 29, "label": "text", "text": "OFFICE/LA BO RATORY NICHE" }, { "bbox": [ 0.08323613261753335, 0.4684822776100852, 0.5048848487531924, 0.7693602629382201 ], "data": [], "index_in_doc": 30, "label": "text", "text": "from billion to over S18 billion according to the Pharmaceutical Research and Manufacturers of America. Research and development spending by the pharmaceutical industry last year increased II%. This is coupled with the National Institutes of Health (NIH) budget, which was increased over to 6 billion this fiscal year; and which is anticipated to double in five years. This year represented the largest annual increase in the NIH's Spending increases reflect the aging of the U.S. population and suggest that the demand for office/laboratory space to accommodate the increase in scientific research should continue to be strong. 53.4 today 14% SI5. budget." }, { "bbox": [ 0.08384369329475397, 0.7702421130556049, 0.5030621597685239, 0.9196127930072823 ], "data": [], "index_in_doc": 31, "label": "text", "text": "A blend of real estate experience and life science knowledge is required to operate in the office/laboratory niche. The skills of our management team enable us to be the focused leader within this niche. With more than 150 years of combined experience in both real estate and life science, our management team has the unique" }, { "bbox": [ 0.5182512531821131, 0.4680134551693695, 0.9417226791614607, 0.5290404040404041 ], "data": [], "index_in_doc": 32, "label": "text", "text": "responsive to tenants by maintaining an important presence in the community in which live and work. they" }, { "bbox": [ 0.5206814680789688, 0.5395623024063881, 0.924710896763203, 0.5484006862447719 ], "data": [], "index_in_doc": 33, "label": "text", "text": "inteanaland [xtennalstaatrqig Growth Models" }, { "bbox": [ 0.5182512531821131, 0.5547138175579033, 0.9435453681461293, 0.8127104441324869 ], "data": [], "index_in_doc": 34, "label": "text", "text": "Since our founding, we have recognized the need for multiple business models and strategies to achieve our growth objectives. Our strategy has been to limit inherent risk by realizing consistently strong internal while adhering to a strict discipline with respect to acquisitions and external growth. Our three operating models: 1) acquire and manage 2) expand, retrofit and convert and 3) build-to-suit, have enabled us to generate growth through multiple sources while serving the important and complex facilitie needs of the life science industry. growth" }, { "bbox": [ 0.5176436716458723, 0.8131313131313131, 0.9441528940583165, 0.9204545454545454 ], "data": [], "index_in_doc": 35, "label": "text", "text": "In our first full year as a publicly-traded company we achieved significant growth both internally and externally, making positive progress utilizing each of our operating models. Since our initial public offering, the number of" } ]
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buildings in our portfolio has more than tripled. During we completed approximately million in acquisitions, acquiring 29 properties, which added approximately I. 85 million square feet to our portfolio. Adhering to our targeted acquisition strategy and strict criteria, all of our acquisitions are located in one of the seven identified target markets that we believe represent dominant hubs for scientific research in the United States. We are steadily progressing in our of building an important business franchise in each of these target markets. 1998, 5240 1998 key goal We have consistently maintained focus on maximizing our internal growth potential through contractual rental rate increases , Hutchinson Cancer Research Center) . When purchased approximately three years ago, a major consideration was to substantially re-lease the building. We successfully re-leased 89% of the 0o0 square feet that in raising rental rates on the expiring space from an average of 77 per square foot to S31.29 per square foot. We are currently in the process of the remainder of the available space. expired 1998, 82,5 524: leasing Conversions present us with another important growth opportunity. Due to the demanding facility needs of the life science industry; we have an important opportunity to convert existing office into laboratory space at generally higher rents retenanting and releasing, effective cost control, and expansions and conversions. During the year; we reported same-store growth of 4.0% on a generally accepted accounting principles basis, representing strong internal growth that we believe will have a greater impact on our results as our portfolio increases in size. Occupancy rates for our operating properties at the end of the year were approximately 96%, with substantially all of the vacancies in office/warehouse, rather than laboratory space. A substantial number of ouI existing leases are at rents below market, which should allow for positive growth in the future. In rent escalations were included in approximately 83% of our leases, with increases generally fixed between 2.5% to 4% annually. being 1998, During the year; we initiated our first two development projects, breaking ground on Alexandria Research Center at Torrey Pines (San California) and on Alexandria Research Center at Gaithersburg (Maryland). The Torrey Pines facility is comprised of two buildings, encompassing approximately 90,000 square feet, with leasing underway. Alexandria Research Center at Gaithersburg represents our largest development project to date, comprising four buildings and approximately 348,000 square feet. The first building in the complex, comprisI20,000 square feet, is constructed on a build-to-suit basis. Occupancy is expected to commence by the end of 1999. The remainder of the land is for future build-to-suit opportunities. These projects significantly expand our presence in the San and suburban Washington; D.C. markets and are representative of the development Diego, being ing Diego Also in we completed our largest lease roll-overs to date in the Alexandria Seattle Life Sciences Center (formerly known as the Fred 1998,
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0.5702861952861953 ], "ocr": false, "ocr_confidence": 1, "text": "California)" }, { "bbox": [ 0.7211772749338621, 0.553030303030303, 0.7606688696016809, 0.5686026936026936 ], "ocr": false, "ocr_confidence": 1, "text": "and" }, { "bbox": [ 0.7703898775199134, 0.5563973063973064, 0.7959075233052733, 0.5664983164983165 ], "ocr": false, "ocr_confidence": 1, "text": "on" }, { "bbox": [ 0.8074512202081742, 0.5534511784511784, 0.9058764253802766, 0.5669191919191919 ], "ocr": false, "ocr_confidence": 1, "text": "Alexandria" }, { "bbox": [ 0.0534655435502779, 0.5757575757575758, 0.23634200501202388, 0.5938552188552189 ], "ocr": false, "ocr_confidence": 1, "text": "representing strong" }, { "bbox": [ 0.24181007196602955, 0.5761784511784511, 0.3135025053629931, 0.5888047138047138 ], "ocr": false, "ocr_confidence": 1, "text": "internal" }, { "bbox": [ 0.32018569830677784, 0.5753367003367004, 0.38944787972418327, 0.5942760942760943 ], "ocr": false, "ocr_confidence": 1, "text": "growth" }, { "bbox": 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false, "ocr_confidence": 1, "text": "believe will have a greater impact on our results as" }, { "bbox": [ 0.48726552190139627, 0.5942760942760943, 0.8390444959424292, 0.6165824915824916 ], "ocr": false, "ocr_confidence": 1, "text": "The Torrey Pines facility is comprised" }, { "bbox": [ 0.844512562896435, 0.5968013468013468, 0.8675999567022368, 0.6102693602693603 ], "ocr": false, "ocr_confidence": 1, "text": "of" }, { "bbox": [ 0.872460460661353, 0.5984848484848485, 0.9052688623853872, 0.6094276094276094 ], "ocr": false, "ocr_confidence": 1, "text": "two" }, { "bbox": [ 0.055895795529835986, 0.6220538720538721, 0.0874890712640911, 0.632996632996633 ], "ocr": false, "ocr_confidence": 1, "text": "our" }, { "bbox": [ 0.0874890712640911, 0.6165824915824916, 0.31714788333233024, 0.6376262626262627 ], "ocr": false, "ocr_confidence": 1, "text": "portfolio increases in size." }, { "bbox": [ 0.32565376526078355, 0.6195286195286196, 0.4696461950496002, 0.6363636363636364 ], "ocr": false, "ocr_confidence": 1, "text": "Occupancy rates" }, { "bbox": [ 0.4854428329167277, 0.6157407407407408, 0.9064839883751661, 0.6384680134680135 ], "ocr": false, "ocr_confidence": 1, "text": "buildings, encompassing approximately 90,000" }, { "bbox": [ 0.055895795529835986, 0.6414141414141414, 0.11665209501878814, 0.6540404040404041 ], "ocr": false, "ocr_confidence": 1, "text": "for our" }, { "bbox": [ 0.11665209501878814, 0.6401515151515151, 0.47086132103937917, 0.6590909090909091 ], "ocr": false, "ocr_confidence": 1, "text": "operating properties at the end of the year" }, { "bbox": [ 0.48665795890650676, 0.6367845117845118, 0.9076991143649452, 0.6586700336700336 ], "ocr": false, "ocr_confidence": 1, "text": "square feet, with leasing underway. Alexandria" }, { "bbox": [ 0.05711092151961502, 0.6658249158249159, 0.09842520517210249, 0.6759259259259259 ], "ocr": false, "ocr_confidence": 1, "text": "were" }, { "bbox": [ 0.09842520517210249, 0.6599326599326599, 0.4738991360138268, 0.6805555555555556 ], "ocr": false, "ocr_confidence": 1, "text": "approximately 96%, with substantially all of" }, { "bbox": [ 0.48787308489628584, 0.6620370370370371, 0.6573831604704623, 0.6759259259259259 ], "ocr": false, "ocr_confidence": 1, "text": "Research Center at" }, { "bbox": [ 0.6579907234653518, 0.6582491582491583, 0.871245334671574, 0.6792929292929293 ], "ocr": false, "ocr_confidence": 1, "text": "Gaithersburg represents" }, { "bbox": [ 0.873675586651132, 0.6641414141414141, 0.9064839883751661, 0.6742424242424242 ], "ocr": false, "ocr_confidence": 1, "text": "our" }, { "bbox": [ 0.055895795529835986, 0.6843434343434344, 0.17133276455884508, 0.6978114478114478 ], "ocr": false, "ocr_confidence": 1, "text": "the vacancies" }, { "bbox": [ 0.2314815010529077, 0.6830808080808081, 0.4696461950496002, 0.6990740740740741 ], "ocr": false, "ocr_confidence": 1, "text": "in office/warehouse, rather" }, { "bbox": [ 0.4854428329167277, 0.6813973063973063, 0.9089142403547242, 0.7015993265993266 ], "ocr": false, "ocr_confidence": 1, "text": "largest development project to date, comprising" }, { "bbox": [ 0.05528823253494646, 0.704124579124579, 0.24120250897114007, 0.7226430976430976 ], "ocr": false, "ocr_confidence": 1, "text": "than laboratory space." }, { "bbox": [ 0.2545688948587095, 0.704124579124579, 0.4732915730189373, 0.7201178451178452 ], "ocr": false, "ocr_confidence": 1, "text": "A substantial number of" }, { "bbox": [ 0.48848064789117535, 0.7053872053872053, 0.5261495535743257, 0.718013468013468 ], "ocr": false, "ocr_confidence": 1, "text": "four" }, { "bbox": [ 0.5261495535743257, 0.7015993265993266, 0.9076991143649452, 0.7239057239057239 ], "ocr": false, "ocr_confidence": 1, "text": "buildings and approximately 348,000 square" }, { "bbox": [ 0.05711092151961502, 0.7297979797979798, 0.08870419725387015, 0.73989898989899 ], "ocr": false, "ocr_confidence": 1, "text": "ouI" }, { "bbox": [ 0.09234957522320728, 0.7243265993265993, 0.22176049313467538, 0.7453703703703705 ], "ocr": false, "ocr_confidence": 1, "text": "existing leases" }, { "bbox": [ 0.22844368607846008, 0.7297979797979798, 0.25760670983315714, 0.73989898989899 ], "ocr": false, "ocr_confidence": 1, "text": "are" }, { "bbox": [ 0.26489746577183143, 0.728956228956229, 0.2855546075980751, 0.73989898989899 ], "ocr": false, "ocr_confidence": 1, "text": "at" }, { "bbox": [ 0.2904151115571913, 0.728956228956229, 0.3365898991687949, 0.73989898989899 ], "ocr": false, "ocr_confidence": 1, "text": "rents" }, { "bbox": [ 0.34327309211257967, 0.726010101010101, 0.4696461950496002, 0.7411616161616161 ], "ocr": false, "ocr_confidence": 1, "text": "below market," }, { "bbox": [ 0.48848064789117535, 0.7264309764309764, 0.5273646795641047, 0.73989898989899 ], "ocr": false, "ocr_confidence": 1, "text": "feet." }, { "bbox": [ 0.535870561492558, 0.723063973063973, 0.9083066773598347, 0.7445286195286195 ], "ocr": false, "ocr_confidence": 1, "text": "The first building in the complex, compris-" }, { "bbox": [ 0.0565033585247255, 0.747895622895623, 0.17680083151285078, 0.7630471380471381 ], "ocr": false, "ocr_confidence": 1, "text": "which should" }, { "bbox": [ 0.1810537724770774, 0.7462121212121212, 0.4337999783511184, 0.7664141414141414 ], "ocr": false, "ocr_confidence": 1, "text": "allow for positive growth in" }, { "bbox": [ 0.4398756083000136, 0.7491582491582492, 0.47146888403426873, 0.7617845117845118 ], "ocr": false, "ocr_confidence": 1, "text": "the" }, { "bbox": [ 0.521896612610099, 0.7466329966329966, 0.7236075269134201, 0.7638888888888888 ], "ocr": false, "ocr_confidence": 1, "text": "I20,000 square feet, is" }, { "bbox": [ 0.7764655074688085, 0.7466329966329966, 0.9058764253802766, 0.7617845117845118 ], "ocr": false, "ocr_confidence": 1, "text": "constructed on" }, { "bbox": [ 0.05528823253494646, 0.7697811447811448, 0.1154369690290091, 0.7836700336700336 ], "ocr": false, "ocr_confidence": 1, "text": "future." }, { "bbox": [ 0.12880335491657857, 0.771043771043771, 0.15067562273260135, 0.7836700336700336 ], "ocr": false, "ocr_confidence": 1, "text": "In" }, { "bbox": [ 0.21021679623177444, 0.7702020202020202, 0.34509578109724826, 0.7836700336700336 ], "ocr": false, "ocr_confidence": 1, "text": "rent escalations" }, { "bbox": [ 0.3499562850563644, 0.7702020202020202, 0.4696461950496002, 0.7836700336700336 ], "ocr": false, "ocr_confidence": 1, "text": "were included" }, { "bbox": [ 0.4890882108860648, 0.7731481481481483, 0.5000243447940762, 0.7824074074074073 ], "ocr": false, "ocr_confidence": 1, "text": "a" }, { "bbox": [ 0.5060999747429715, 0.7689393939393939, 0.6677117313835842, 0.7840909090909091 ], "ocr": false, "ocr_confidence": 1, "text": "build-to-suit basis." }, { "bbox": [ 0.6804705542762641, 0.7668350168350169, 0.9064839883751661, 0.7882996632996634 ], "ocr": false, "ocr_confidence": 1, "text": "Occupancy is expected to" }, { "bbox": [ 0.055895795529835986, 0.7929292929292929, 0.07655293735607971, 0.8047138047138047 ], "ocr": false, "ocr_confidence": 1, "text": "in" }, { "bbox": [ 0.07655293735607971, 0.7904040404040404, 0.47086132103937917, 0.8093434343434344 ], "ocr": false, "ocr_confidence": 1, "text": "approximately 83% of our leases, with increases" }, { "bbox": [ 0.48787308489628584, 0.7899831649831649, 0.9107369293393929, 0.8085016835016835 ], "ocr": false, "ocr_confidence": 1, "text": "commence by the end of 1999. The remainder of" }, { "bbox": [ 0.0565033585247255, 0.8127104377104377, 0.42468653342777557, 0.8303872053872053 ], "ocr": false, "ocr_confidence": 1, "text": "generally fixed between 2.5% to 4% annually." }, { "bbox": [ 0.48787308489628584, 0.8114478114478114, 0.9070915513700557, 0.8303872053872053 ], "ocr": false, "ocr_confidence": 1, "text": "the land is for future build-to-suit opportunities." }, { "bbox": [ 0.09113444923342823, 0.8350168350168351, 0.15310587471215942, 0.8484848484848485 ], "ocr": false, "ocr_confidence": 1, "text": "Also in" }, { "bbox": [ 0.20900167024199542, 0.8375420875420876, 0.2345193160273553, 0.8476430976430976 ], "ocr": false, "ocr_confidence": 1, "text": "we" }, { "bbox": [ 0.23573444201713437, 0.8333333333333334, 0.47086132103937917, 0.8522727272727273 ], "ocr": false, "ocr_confidence": 1, "text": "completed our largest lease" }, { "bbox": [ 0.48848064789117535, 0.8320707070707071, 0.9076991143649452, 0.8526936026936027 ], "ocr": false, "ocr_confidence": 1, "text": "These projects significantly expand our presence" }, { "bbox": [ 0.05528823253494646, 0.8569023569023568, 0.1354865478603633, 0.8695286195286195 ], "ocr": false, "ocr_confidence": 1, "text": "roll-overs" }, { "bbox": [ 0.14034705181947948, 0.8556397306397306, 0.47207644702915824, 0.8707912457912458 ], "ocr": false, "ocr_confidence": 1, "text": "to date in the Alexandria Seattle Life" }, { "bbox": [ 0.48848064789117535, 0.8560606060606061, 0.5808302231143826, 0.8695286195286195 ], "ocr": false, "ocr_confidence": 1, "text": "in the San" }, { "bbox": [ 0.6355108926544396, 0.8535353535353535, 0.9064839883751661, 0.8741582491582492 ], "ocr": false, "ocr_confidence": 1, "text": "and suburban Washington; D.C." }, { "bbox": [ 0.0565033585247255, 0.8783670033670034, 0.13123360689613664, 0.8914141414141414 ], "ocr": false, "ocr_confidence": 1, "text": "Sciences" }, { "bbox": [ 0.13913192582970044, 0.8775252525252525, 0.28859242257252277, 0.8943602693602694 ], "ocr": false, "ocr_confidence": 1, "text": "Center (formerly" }, { "bbox": [ 0.29406048952652847, 0.877946127946128, 0.3548167890154806, 0.8905723905723906 ], "ocr": false, "ocr_confidence": 1, "text": "known" }, { "bbox": [ 0.3621075449541548, 0.8804713804713805, 0.3839798127701776, 0.8905723905723906 ], "ocr": false, "ocr_confidence": 1, "text": "as" }, { "bbox": [ 0.39127056870885185, 0.877946127946128, 0.422863844443107, 0.8914141414141414 ], "ocr": false, "ocr_confidence": 1, "text": "the" }, { "bbox": [ 0.42893947439200225, 0.877946127946128, 0.47025375804448966, 0.8914141414141414 ], "ocr": false, "ocr_confidence": 1, "text": "Fred" }, { "bbox": [ 0.48848064789117535, 0.875, 0.9089142403547242, 0.8952020202020202 ], "ocr": false, "ocr_confidence": 1, "text": "markets and are representative of the development" }, { "bbox": [ 0.1173842719808188, 0.06116720200714845, 0.17060058759681443, 0.07603818519823871 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.4197995177887111, 0.058139118866955726, 0.4648122027704323, 0.07696189123405438 ], "ocr": false, "ocr_confidence": 1, "text": "5240" }, { "bbox": [ 0.6934388577341882, 0.12515089818608996, 0.761674515026216, 0.13747536444017266 ], "ocr": false, "ocr_confidence": 1, "text": "expired" }, { "bbox": [ 0.7844105620173638, 0.12474099974099978, 0.8402128863172168, 0.1387270137270138 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.48673692861654183, 0.12252900959036178, 0.5151344499562792, 0.13883462677327457 ], "ocr": false, "ocr_confidence": 1, "text": "82,5" }, { "bbox": [ 0.08780162432747117, 0.1693123288032235, 0.13760424677654132, 0.1829603984695038 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.5122688662361724, 0.16629709743067597, 0.5503588118256009, 0.1830295018959233 ], "ocr": false, "ocr_confidence": 1, "text": "524:" }, { "bbox": [ 0.8409475522474471, 0.18354177262595295, 0.9039733690752587, 0.2057679916838114 ], "ocr": false, "ocr_confidence": 1, "text": "leasing" }, { "bbox": [ 0.18714754273800424, 0.1869189520199574, 0.21688184886352757, 0.20702044191943653 ], "ocr": false, "ocr_confidence": 1, "text": "key" }, { "bbox": [ 0.1161728162879286, 0.2564908633148149, 0.15844565740213515, 0.2679199110959594 ], "ocr": false, "ocr_confidence": 1, "text": "goal" }, { "bbox": [ 0.5432302853004128, 0.5518095406468158, 0.6020259600663352, 0.5736113347740597 ], "ocr": false, "ocr_confidence": 1, "text": "Diego," }, { "bbox": [ 0.17804765727154162, 0.681866127375786, 0.22719686031976924, 0.7023931318834733 ], "ocr": false, "ocr_confidence": 1, "text": "being" }, { "bbox": [ 0.7248407932152308, 0.7454206355216408, 0.7746246781721083, 0.7655221254211201 ], "ocr": false, "ocr_confidence": 1, "text": "being" }, { "bbox": [ 0.4891063511980964, 0.7471041372051426, 0.5194482203185092, 0.7672056271046218 ], "ocr": false, "ocr_confidence": 1, "text": "ing" }, { "bbox": [ 0.15376017332204045, 0.772047397047397, 0.2083473716321144, 0.7860334110334111 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.15388371676200097, 0.8377056220221818, 0.2045784502228167, 0.8495839402673804 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.5845326792098144, 0.8531582356447152, 0.6336311255436761, 0.8745353670488876 ], "ocr": false, "ocr_confidence": 1, "text": "Diego" } ]
[ { "bbox": [ 0.04982016673977521, 0.03451175882358744, 0.47086133958073034, 0.29250844319661456 ], "data": [], "index_in_doc": 36, "label": "text", "text": "buildings in our portfolio has more than tripled. During we completed approximately million in acquisitions, acquiring 29 properties, which added approximately I. 85 million square feet to our portfolio. Adhering to our targeted acquisition strategy and strict criteria, all of our acquisitions are located in one of the seven identified target markets that we believe represent dominant hubs for scientific research in the United States. We are steadily progressing in our of building an important business franchise in each of these target markets. 1998, 5240 1998 key goal" }, { "bbox": [ 0.05285798055538837, 0.29545454545454547, 0.47025375804448966, 0.35648149432558 ], "data": [], "index_in_doc": 37, "label": "text", "text": "We have consistently maintained focus on maximizing our internal growth potential through contractual rental rate increases ," }, { "bbox": [ 0.48240499940092896, 0.0357743850862137, 0.9064840069165173, 0.2251683244801531 ], "data": [], "index_in_doc": 38, "label": "text", "text": "Hutchinson Cancer Research Center) . When purchased approximately three years ago, a major consideration was to substantially re-lease the building. We successfully re-leased 89% of the 0o0 square feet that in raising rental rates on the expiring space from an average of 77 per square foot to S31.29 per square foot. We are currently in the process of the remainder of the available space. expired 1998, 82,5 524: leasing" }, { "bbox": [ 0.48362016247341033, 0.22937713006530144, 0.9076991143649452, 0.35648149432558 ], "data": [], "index_in_doc": 39, "label": "text", "text": "Conversions present us with another important growth opportunity. Due to the demanding facility needs of the life science industry; we have an important opportunity to convert existing office into laboratory space at generally higher rents" }, { "bbox": [ 0.13205336638440426, 0.38050071639244004, 0.8284709381563986, 0.4606027314157197 ], "data": [], "index_in_doc": 40, "label": "picture", "text": "" }, { "bbox": [ 0.052250416401664404, 0.4869528491087634, 0.4738991360138268, 0.8303872118092547 ], "data": [], "index_in_doc": 41, "label": "text", "text": "retenanting and releasing, effective cost control, and expansions and conversions. During the year; we reported same-store growth of 4.0% on a generally accepted accounting principles basis, representing strong internal growth that we believe will have a greater impact on our results as our portfolio increases in size. Occupancy rates for our operating properties at the end of the year were approximately 96%, with substantially all of the vacancies in office/warehouse, rather than laboratory space. A substantial number of ouI existing leases are at rents below market, which should allow for positive growth in the future. In rent escalations were included in approximately 83% of our leases, with increases generally fixed between 2.5% to 4% annually. being 1998," }, { "bbox": [ 0.48544285145807886, 0.4869528491087634, 0.9107369107980416, 0.8952020202020202 ], "data": [], "index_in_doc": 42, "label": "text", "text": "During the year; we initiated our first two development projects, breaking ground on Alexandria Research Center at Torrey Pines (San California) and on Alexandria Research Center at Gaithersburg (Maryland). The Torrey Pines facility is comprised of two buildings, encompassing approximately 90,000 square feet, with leasing underway. Alexandria Research Center at Gaithersburg represents our largest development project to date, comprising four buildings and approximately 348,000 square feet. The first building in the complex, comprisI20,000 square feet, is constructed on a build-to-suit basis. Occupancy is expected to commence by the end of 1999. The remainder of the land is for future build-to-suit opportunities. These projects significantly expand our presence in the San and suburban Washington; D.C. markets and are representative of the development Diego, being ing Diego" }, { "bbox": [ 0.05528823369378091, 0.8333333333333334, 0.47207644702915824, 0.894360272571294 ], "data": [], "index_in_doc": 43, "label": "text", "text": "Also in we completed our largest lease roll-overs to date in the Alexandria Seattle Life Sciences Center (formerly known as the Fred 1998," } ]
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opportunities that exist in our office/laboratory market niche. Our growing tenant base includes many of the leaders in the life science industry segments. During the year we welcomed Pfizer Inc. to our life science tenant We are proud of this tenant base, which also includes Novartis AG, the U.S. Food and Drug Administration; Scripps Research Institute, MedImmune, Agouron Pharmaceuticals , Inc:. (Warner Lambert) , University of Washington; and the Gillette Company to name just a few. We consider ourselves strategic partners with our tenants with respect to their scientific research work, contributing high quality office/laboratory space and facilities management that meet the unique needs of this broad and diverse industry. base Inc , Financial Hiohlioht Our financial performance was consistent with the we set for ourselves last year. Funds from Operations (FFO) for the year were approximately 7 million on revenues of approximately S61 million; exceeding consensus analysts' FFO per share estimates for each quarter Importantly, the second half of the year, we expanded our unsecured credit to up to million; while reducing the interest rate schedule. This has enabled uS to achieve balance sheet flexibility a tighter credit environment We also strengthened our financial position the year through a unit placement of I,I5o,000 shares, netting uS approximately $32.7 million. goals 529-, during facility 5250 during greater during JERRY M . SU DARSKY CHAIRMAN OF THE BOARD 10EL 5 . MARCUS CHLEF EXECUTIVE OFFICER qutldok Foa 1889 As we enter the last year of the 2oth Century, we believe that our operational infrastructure is substantially in place to support our continued growth. We intend to continue to execute our multi-prong business strategy; maintaining a balance between internal and external growth, while managing balance sheet flexibility. 1999 will be an important year in managing the roll-over of leases in our portfolio. Forty-seven leases, representing approximately I0% of the square feet in our portfolio, will expire the We are into the releasing process on of the expiring leases. Due to our extensive network and experience in the life science industry; we believe we have a heightened ability to locate attractive tenants and negotiate favorable lease terms. As many of the leases are currently at rental rates below market, we also view this as an opportunity to increase rental rates, with the potential of adding to our FFO 1999. during well year: many growth during We are proud to be prominently positioned within the REIT industry enjoying broad analyst coverage and outperforming many of our peers. As we enter 1999, our mission remains the same: provide 9 unique growth opportunity for our shareholders and become the landlord of choice for the life science industry in each of our target markets . In closing, we would like to thank our shareholders, tenants and employees for their continuing support and confidence in us.
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false, "ocr_confidence": 1, "text": "network and experience in the life science industry;" }, { "bbox": [ 0.09113444923342823, 0.3644781144781145, 0.2138621742011116, 0.3779461279461279 ], "ocr": false, "ocr_confidence": 1, "text": "that meet the" }, { "bbox": [ 0.21629242618066968, 0.36195286195286197, 0.5054924117480819, 0.38257575757575757 ], "ocr": false, "ocr_confidence": 1, "text": "unique needs of this broad and" }, { "bbox": [ 0.523111738599878, 0.3632154882154882, 0.806236094218395, 0.380050505050505 ], "ocr": false, "ocr_confidence": 1, "text": "we believe we have a heightened" }, { "bbox": [ 0.8044134052337265, 0.36026936026936024, 0.9405075160889793, 0.3808922558922559 ], "ocr": false, "ocr_confidence": 1, "text": "ability to locate" }, { "bbox": [ 0.0899193232436492, 0.3838383838383838, 0.23208906404779722, 0.40235690235690236 ], "ocr": false, "ocr_confidence": 1, "text": "diverse industry." }, { "bbox": [ 0.5225041756049885, 0.3846801346801347, 0.6014873649406264, 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exceeding consensus" }, { "bbox": [ 0.5589579552983599, 0.5151515151515151, 0.5881209790530569, 0.5277777777777778 ], "ocr": false, "ocr_confidence": 1, "text": "We" }, { "bbox": [ 0.591766357022394, 0.5168350168350168, 0.620929380777091, 0.5269360269360269 ], "ocr": false, "ocr_confidence": 1, "text": "are" }, { "bbox": [ 0.62214450676687, 0.5105218855218855, 0.9411150790838689, 0.531986531986532 ], "ocr": false, "ocr_confidence": 1, "text": "proud to be prominently positioned" }, { "bbox": [ 0.0905268862385387, 0.5357744107744108, 0.5036697227634134, 0.5526094276094277 ], "ocr": false, "ocr_confidence": 1, "text": "analysts' FFO per share estimates for each quarter" }, { "bbox": [ 0.5225041756049885, 0.5328282828282829, 0.9417226420787583, 0.5542929292929293 ], "ocr": false, "ocr_confidence": 1, "text": "within the REIT industry enjoying broad analyst" }, { "bbox": [ 0.09174201222831775, 0.5576599326599326, 0.20353360328798972, 0.5744949494949495 ], "ocr": false, "ocr_confidence": 1, "text": "Importantly," }, { "bbox": [ 0.281909229628738, 0.5580808080808081, 0.31471763135277214, 0.5715488215488216 ], "ocr": false, "ocr_confidence": 1, "text": "the" }, { "bbox": [ 0.3220083872914464, 0.5572390572390572, 0.3864100647497357, 0.5707070707070707 ], "ocr": false, "ocr_confidence": 1, "text": "second" }, { "bbox": [ 0.39552350967307853, 0.5568181818181818, 0.46721594307004205, 0.571969696969697 ], "ocr": false, "ocr_confidence": 1, "text": "half of" }, { "bbox": [ 0.47268401002404775, 0.5580808080808081, 0.5054924117480819, 0.5715488215488216 ], "ocr": false, "ocr_confidence": 1, "text": "the" }, { "bbox": [ 0.5212890496152095, 0.5585016835016835, 0.6033100539252949, 0.5736531986531986 ], "ocr": false, "ocr_confidence": 1, "text": "coverage" }, { "bbox": [ 0.6130310618435272, 0.5563973063973064, 0.6525226565113461, 0.571969696969697 ], "ocr": false, "ocr_confidence": 1, "text": "and" }, { "bbox": [ 0.6610285384397995, 0.5555555555555556, 0.7977302122899418, 0.5744949494949495 ], "ocr": false, "ocr_confidence": 1, "text": "outperforming" }, { "bbox": [ 0.8092739091928427, 0.5606060606060606, 0.8615243267533416, 0.5732323232323232 ], "ocr": false, "ocr_confidence": 1, "text": "many" }, { "bbox": [ 0.872460460661353, 0.5572390572390572, 0.8967629804569338, 0.5707070707070707 ], "ocr": false, "ocr_confidence": 1, "text": "of" }, { "bbox": [ 0.9052688623853872, 0.5597643097643097, 0.9392923900992004, 0.5698653198653199 ], "ocr": false, "ocr_confidence": 1, "text": "our" }, { "bbox": [ 0.09113444923342823, 0.5816498316498316, 0.16039663065083368, 0.5942760942760943 ], "ocr": false, "ocr_confidence": 1, "text": "year, we" }, { "bbox": [ 0.15918150466105463, 0.5761784511784511, 0.24727813892003525, 0.5984848484848485 ], "ocr": false, "ocr_confidence": 1, "text": "expanded" }, { "bbox": [ 0.2448478869404772, 0.5778619528619529, 0.4252940964226651, 0.5942760942760943 ], "ocr": false, "ocr_confidence": 1, "text": "our unsecured credit" }, { "bbox": [ 0.4836201439320591, 0.5808080808080808, 0.5042772857583029, 0.5925925925925926 ], "ocr": false, "ocr_confidence": 1, "text": "to" }, { "bbox": [ 0.52068148662032, 0.5787037037037037, 0.5771848451450455, 0.595117845117845 ], "ocr": false, "ocr_confidence": 1, "text": "peers." }, { "bbox": [ 0.5881209790530569, 0.5791245791245792, 0.6148537508281958, 0.5925925925925926 ], "ocr": false, "ocr_confidence": 1, "text": "As" }, { "bbox": [ 0.6178915658026434, 0.5787037037037037, 0.9398999530940898, 0.5963804713804713 ], "ocr": false, "ocr_confidence": 1, "text": "we enter 1999, our mission remains" }, { "bbox": [ 0.0905268862385387, 0.6022727272727273, 0.14156217780925853, 0.6174242424242424 ], "ocr": false, "ocr_confidence": 1, "text": "up to" }, { "bbox": [ 0.19259746937997835, 0.5972222222222222, 0.5054924117480819, 0.619107744107744 ], "ocr": false, "ocr_confidence": 1, "text": "million; while reducing the interest" }, { "bbox": [ 0.5225041756049885, 0.601010101010101, 0.6099932468690796, 0.6144781144781145 ], "ocr": false, "ocr_confidence": 1, "text": "the same:" }, { "bbox": [ 0.6112083728588587, 0.5980639730639731, 0.6835083692507118, 0.6182659932659933 ], "ocr": false, "ocr_confidence": 1, "text": "provide" }, { "bbox": [ 0.6871537472200488, 0.6039562289562289, 0.6968747551382812, 0.6132154882154882 ], "ocr": false, "ocr_confidence": 1, "text": "9" }, { "bbox": [ 0.7017352590973974, 0.5989057239057238, 0.9411150790838689, 0.6178451178451179 ], "ocr": false, "ocr_confidence": 1, "text": "unique growth opportunity" }, { "bbox": [ 0.0905268862385387, 0.6216329966329966, 0.26307477678716285, 0.6367845117845118 ], "ocr": false, "ocr_confidence": 1, "text": "rate schedule. 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[ { "bbox": [ 0.08991932092598029, 0.039562263874092486, 0.5060999562016203, 0.07513227366437816 ], "data": [], "index_in_doc": 44, "label": "text", "text": "opportunities that exist in our office/laboratory market niche." }, { "bbox": [ 0.08809663194131173, 0.082912483600655, 0.5073151192741017, 0.4023568895128038 ], "data": [], "index_in_doc": 45, "label": "text", "text": "Our growing tenant base includes many of the leaders in the life science industry segments. During the year we welcomed Pfizer Inc. to our life science tenant We are proud of this tenant base, which also includes Novartis AG, the U.S. Food and Drug Administration; Scripps Research Institute, MedImmune, Agouron Pharmaceuticals , Inc:. (Warner Lambert) , University of Washington; and the Gillette Company to name just a few. We consider ourselves strategic partners with our tenants with respect to their scientific research work, contributing high quality office/laboratory space and facilities management that meet the unique needs of this broad and diverse industry. base Inc ," }, { "bbox": [ 0.09000939712759613, 0.4099326470885614, 0.2624918830599949, 0.4200336571895715 ], "data": [], "index_in_doc": 46, "label": "section_header", "text": "Financial Hiohlioht" }, { "bbox": [ 0.0897192133935601, 0.42592593877002444, 0.5079226451862888, 0.7470538784759213 ], "data": [], "index_in_doc": 47, "label": "text", "text": "Our financial performance was consistent with the we set for ourselves last year. Funds from Operations (FFO) for the year were approximately 7 million on revenues of approximately S61 million; exceeding consensus analysts' FFO per share estimates for each quarter Importantly, the second half of the year, we expanded our unsecured credit to up to million; while reducing the interest rate schedule. This has enabled uS to achieve balance sheet flexibility a tighter credit environment We also strengthened our financial position the year through a unit placement of I,I5o,000 shares, netting uS approximately $32.7 million. goals 529-, during facility 5250 during greater during" }, { "bbox": [ 0.19806553169864624, 0.7886469677241161, 0.44559936975722436, 0.8425904861604324 ], "data": [], "index_in_doc": 48, "label": "picture", "text": "" }, { "bbox": [ 0.18773696542086216, 0.8686868686868687, 0.4068752108846928, 0.8919182209053425 ], "data": [], "index_in_doc": 49, "label": "text", "text": "JERRY M . SU DARSKY CHAIRMAN OF THE BOARD" }, { "bbox": [ 0.6178915658026434, 0.8686868686868687, 0.8444393245593435, 0.8922558890448676 ], "data": [], "index_in_doc": 50, "label": "text", "text": "10EL 5 . MARCUS CHLEF EXECUTIVE OFFICER" }, { "bbox": [ 0.5225445401264691, 0.04419191919191919, 0.66185097715331, 0.05260945329762468 ], "data": [], "index_in_doc": 51, "label": "section_header", "text": "qutldok Foa 1889" }, { "bbox": [ 0.5206814680789688, 0.06018521087338226, 0.9402853536193515, 0.20875418306601168 ], "data": [], "index_in_doc": 52, "label": "text", "text": "As we enter the last year of the 2oth Century, we believe that our operational infrastructure is substantially in place to support our continued growth. We intend to continue to execute our multi-prong business strategy; maintaining a balance between internal and external growth, while managing balance sheet flexibility." }, { "bbox": [ 0.5200739421667816, 0.2112794355912642, 0.9417226791614607, 0.5109427480986624 ], "data": [], "index_in_doc": 53, "label": "text", "text": "1999 will be an important year in managing the roll-over of leases in our portfolio. Forty-seven leases, representing approximately I0% of the square feet in our portfolio, will expire the We are into the releasing process on of the expiring leases. Due to our extensive network and experience in the life science industry; we believe we have a heightened ability to locate attractive tenants and negotiate favorable lease terms. As many of the leases are currently at rental rates below market, we also view this as an opportunity to increase rental rates, with the potential of adding to our FFO 1999. during well year: many growth during" }, { "bbox": [ 0.5206814680789688, 0.510521898365984, 0.9429377309858351, 0.6813973128193557 ], "data": [], "index_in_doc": 54, "label": "text", "text": "We are proud to be prominently positioned within the REIT industry enjoying broad analyst coverage and outperforming many of our peers. As we enter 1999, our mission remains the same: provide 9 unique growth opportunity for our shareholders and become the landlord of choice for the life science industry in each of our target markets ." }, { "bbox": [ 0.5206814680789688, 0.6851851916072345, 0.942330205073648, 0.7474747474747475 ], "data": [], "index_in_doc": 55, "label": "text", "text": "In closing, we would like to thank our shareholders, tenants and employees for their continuing support and confidence in us." }, { "bbox": [ 0.5830074968986809, 0.7939497051816998, 0.8627394712844717, 0.8526678374319365 ], "data": [], "index_in_doc": 56, "label": "picture", "text": "" } ]
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{ ,893 H|4fa6} 4 m 7 5 ] Strategic Growth Of Portfolio ARE's portfolio of properties has more than tripled in size since the IPO, reflecting the existing need for quality laboratory space. At the end of ARE had a total of SI properties , comprising approximately 3.6 million square feet. 1998,
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STRATEGY; ExEcution And FinanCIAL PERFORMANCE ARE surpassed consensus analysts' FFO estimates every reporting quarter since its IPO, achieving FFO of approximately compared to last year: Same store growth of 6.5% on a cash basis is among the highest for REITs. Demonstrating prudent fiscal planning, ARE increased its credit line the year at more favorable rates, enabling the company to maintain balance sheet flexibility: growth 35%, during ENHANCEMENT OF MANAGEMENT TEAM An experienced management team in both the real estate and life science industries is the to ARE's success. During the year; ARE enhanced its management team with the appointments of James H. Richardson to President and Vincent R. Ciruzzi to Vice President Construction and Development. The expertise that management possesses uniquely qualifies ARE to be the landlord of choice for the life science industry: key Asset AND TENANT SERVICES Emphasizing its commitment to tenants, ARE is establishing regionally-based operations enabling the company to be more responsive to tenants' facilities needs. Working side-by-side with its tenants , ARE provides value-added services and capital to ensure quality facility management and state-of-the-art improvements, when required, to achieve maximum tenant satisfaction. complex inteRnal Growth In addition to achieving consistent growth through rent escalations and lease roll-overs, the nature of ARE's tenant base provides the company with a growth model for converting standard office space into higher rent laboratory space. Lease roll-overs with respect to rental space which is currently below market, may provide for future FFO growth. unique EXTERnAL GRowth ARE completed approximately million in acquisitions, acquiring 29 properties, which added approximately 1.85 million square feet to its portfolio. During the year; ARE had the financial flexibility to be opportunistic in a real estate market that had seen a decrease in well capitalized buyers, resulting in better quality transactions at higher yields for the company: AREs acquisition strategy has been focused on high quality facilities in seven scientific research hubs with the of developing a strategic franchise in each such market. 1998, $240 During goal key initiated first DEvELOPMEnT ProJects (San diego & GAIthERSBURg) Initiating its first development project, ARE commenced construction in April on Alexandria Research Center at Torrey Pines in San Later in the year, construction of Alexandria Research Center at Gaithersburg, Maryland began. These projects ARE's presence in these two hubs and represent the implementation of an important external business growth strategy. Diego. expand key
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0 zene The 'aithersburg area improves our visibility and is well suited for recruiting and future There is a tremendous shortage of space in Maryland and ARE moved expeditiously; quickly identifying a suitable building and financing significant improvements . ARE is a resource for our building needs, whether its obtaining contractors to perform maintenance on the building or growth good providing benchmark information for operating costs. also provide us flexibility to operate our dynamic business. They enough Michael | Brennan MpePho Chier Ecaurve Oucer Mark D. Gessler Presidentand Chief Operaring Officer 708 QuinCE Orchard oad Qaitheasbuag, Maayland Located in the heart of the Gaithersburg research community; this 49,225 square foot; fully modern ized facility was retrofit project to meet Gene Logic'$ specific requirements , On the cutting of the genomics revolution; Gene Logic required stateof-the-art laboratory and office space to house their novel screening technologies and proprietary expression databases for identifying new drug-leads. edge gene
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g ARE 's knowledge of life science g companies space needs permits them to address requests expeditiously. have been responsive in reviewing all proposed modifications and any other requests. have worked with Us on expansion projects , including a willingness to finance improvements.It is an added benefit that They quite They 2s/35WESTWATKINSMILL Road CAMHERSDURQ MARYLAND The facility has been designed specifically biotechnology have someone based locally, but even before then, we could they always count on them to take care of whatever we asked of them. medicine. The consists buildings comprising Melvin D. Booth resident and Chief Opctating Officer office and laboratory space as well as a g for MedImmune, a top-tier company which markets three products and is developing other product candidates focused on infectious diseases and trans plantation facility of two one-story brick a total of 84,668 square feet which houses designated manufacturing suite for MedImmune, a top-tier company which markets three products and is developing other product candidates focused on infectious diseases and trans plantation facility of two one-story brick a total of 84,668 square feet which houses designated manufacturing suite
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) 9 9 U The research that is conducted at this facility is sensitive The building's mechanics are state of the art and need to be in order to support the high tech research work that is done here The U.S of ngineers depends on ARE to support its systems 24 hours a seven days a 143 REsearch Bouleroanaryla week. We can't afford to a beat. Leased to the US. Army Corp day skip Army Robinson Chief Engincer Gary 9 143 REsearch Bouleroanaryla Leased to the US. Corps of Engineer the building consists of I05,0o0 square feet of office/laboratory spacesitting on 7.7 acres of land. The huilding allows for ample parking There are approximately 130 people employed at this which operates around-the-clock. Army facility ' 2 ( 0 DUfrI
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9 : ' We managed our own retrofit and ARE was flexible not at all rigid in allowing us a lot of independence to create the space to fit our own needs ARE is easy to deal with and the build-out went smoothly: During the process, ARE was helpful in benchmarking references and provided us budgets oiproFrssional DRIVE; QaithensturoaMARYLAnD a timely manner. 0 Henry Ciuchta, Ph.D. Presidcn This facility is a two story; 62,739 square foot laboratory facility Gillette is the sole tenant and uses this facility to develop and test its consumer products. Heavily trafficked with visitors, the space is modern and easily accessible. p @
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16 ; 9 Our acquisition strategy has always been a focused one, strate gically identifying the scientific centers of excellence and building a 'portfolio of properties within those hubs. This strategy has served US well, evidenced by strong we have achieved and the quality tenant base we attract. key growth James H. Richardson President Etie Lguillcs; Ine
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Development projects are true collaborative between the architect; contractor; tenant and owner; in this case ARE It is the only true way to be Bsvelar aBleto doqugremdtsp prcisct 1201 Clopper RoaD, that Gaithersburg, meets MaRYlaAnD specific Alexandria Research Center at Gaithersburg, while enhancing our Maryland consists of 000 square feet of laboratory and office development space franchise position in on an 18.2 acre site. The Center will consist scientific research of four buildings. The first building, which has already been leased to Digene hubs and fulfilling our Corporation; diagnostic products company; is I20,000 square feet. Construction is expectbusiness ed to be completed in late 1999, at which Vincent Ciruzzi Digene, who will be the sole tenant of Vice President Construction and Developnic Alexa drla Real Estate Equities , Inc. the first building, will take occupancy: 348,9 key goals . point 19
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[ ARE's Target MarKets ] ARE HAS ]DENTIFTED IARG EI MARKETS WHICH WE BELIEVE ARE AMONG THE MOsT DO MINANT AU BS OF SCIENTIFIC RESEARCH IN THE U NITED STATES. 1 Suburban Washington D.C. Eastern Massachusetts New Jersey /Suburban Philadelphia Southeast Prope San Francisco Bay Seattle San Diego
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[ FInAalcials ] 0 frtig 5 | U
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[selected Financial Data ] ALEXANDRIA REAL ESTATE EQUITIES, INC THE FOLLOWING TABLE SHOULD BE READ IN CONJUNCTION WITH OUR CONSOLIDATED FINANCIAI STATEMENIS AND NOTES THERETO APPEA RING ELSEWHERE IN THIS REPORT
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"Operating Data:" }, { "bbox": [ 0.055895795529835986, 0.30387205387205385, 0.1433848667939271, 0.3148148148148149 ], "ocr": false, "ocr_confidence": 1, "text": "Total revenue" }, { "bbox": [ 0.4617478761160364, 0.30387205387205385, 0.509137789717419, 0.3148148148148149 ], "ocr": false, "ocr_confidence": 1, "text": "61,016" }, { "bbox": [ 0.5559201403239122, 0.30260942760942755, 0.6093856838741901, 0.3177609427609427 ], "ocr": false, "ocr_confidence": 1, "text": "34,846" }, { "bbox": [ 0.6573831604704623, 0.30639730639730633, 0.6792554282864851, 0.31649831649831645 ], "ocr": false, "ocr_confidence": 1, "text": "17," }, { "bbox": [ 0.6737873613324794, 0.30345117845117847, 0.7041655110769555, 0.31860269360269367 ], "ocr": false, "ocr_confidence": 1, "text": "673" }, { "bbox": [ 0.759453743611902, 0.3055555555555556, 0.8007680272643893, 0.31734006734006737 ], "ocr": false, "ocr_confidence": 1, "text": "9,923" }, { "bbox": [ 0.8621318897482311, 0.305976430976431, 0.8961554174620443, 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[ { "bbox": [ 0.3007436824703132, 0.03998319067136206, 0.690799125189386, 0.057451421564275566 ], "data": [], "index_in_doc": 147, "label": "section_header", "text": "[selected Financial Data ]" }, { "bbox": [ 0.3645377969337129, 0.07154884723701863, 0.6218055523262702, 0.08164985733802872 ], "data": [], "index_in_doc": 148, "label": "section_header", "text": "ALEXANDRIA REAL ESTATE EQUITIES, INC" }, { "bbox": [ 0.24727814819071084, 0.09595959595959595, 0.7424419982963465, 0.10816500885318024 ], "data": [], "index_in_doc": 149, "label": "text", "text": "THE FOLLOWING TABLE SHOULD BE READ IN CONJUNCTION" }, { "bbox": [ 0.26307476751648723, 0.11826601895419034, 0.7278604864189979, 0.12878787878787878 ], "data": [], "index_in_doc": 150, "label": "text", "text": "WITH OUR CONSOLIDATED FINANCIAI STATEMENIS AND" }, { "bbox": [ 0.25517645785359905, 0.14015151515151514, 0.7357587682698594, 0.1506733749852036 ], "data": [], "index_in_doc": 151, "label": "text", "text": "NOTES THERETO APPEA RING ELSEWHERE IN THIS REPORT" }, { "bbox": [ 0.05213270199847212, 0.18946375991358902, 0.9051106490359183, 0.7580530185892125 ], "data": [ { "html_seq": "<table><tr><td></td><td></td><td></td><td></td><td></td><th>the Period For</th></tr><tr><td></td><td></td><td></td><td></td><td></td><th>October 27 , 1994</th></tr><tr><td></td><td></td><td>YEAR ENDED DECEMBER 31</td><td></td><td></td><th>(inception) through December</th></tr><tr><td>(Dollars in thousands, except per share amounts)</td><th>1998</th><th>1997</th><th>1996</th><th>1995</th><th>31, 1994</th></tr><tr><td>Operating Data:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Total revenue</td><td>61,016</td><td>34,846</td><td>17, 673</td><td>9,923</td><td>LOII</td></tr><tr><td>Total expenses</td><td>41,613</td><td>37,643</td><td>15,498</td><td>9,057</td><td>1,659</td></tr><tr><td>Income (loss) from operations</td><td>19,403</td><td>(2,797)|</td><td>2,175</td><td>866</td><td>(648)</td></tr><tr><td>in lieu of taxes Charge</td><td></td><td></td><td></td><td>(os)</td><td></td></tr><tr><td>Net income (loss)</td><td>19.403</td><td>(2,797)</td><td>2,175</td><td>5 761</td><td>(648)</td></tr><tr><td>Net income (loss) per share of common stock (pro forma</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>for 1997 , forma and restated for 1995 and 1996, pro</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>1994)</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>~Basic</td><td>5 1.60</td><td>5 (o.35)</td><td>5 0.60</td><td>5 0.43</td><td>5 (0.37)</td></tr><tr><td>~Diluted</td><td>1.58</td><td>5 (o.35)</td><td>5 0.60</td><td>5 0.43</td><td>5 (0.37)</td></tr><tr><td>Weighted average shares of common stock outstanding (pro forma for 1997, pro forma and restated for 1996, 1995 and 1994)6</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>[2, 098,959</td><td>8,075,864</td><td>3,642,I3I</td><td>1,765.923</td><td>1,765.,923</td></tr><tr><td>Diluted</td><td>12,306,470</td><td>8,075,864</td><td>3,642,I31</td><td>1,765,923</td><td>1,765,923</td></tr><tr><td>Cash dividends declared share of common stock (pro forma for 1997, pro forma and restated for 1996 and 1995) per</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>1.60</td><td>$ 1.60</td><td>$ 0.87</td><td>0.51</td><td>5</td></tr><tr><td>BALANCE SheeT Data (At period End):</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Rental properties net of accumulated depreciation</td><td>$ 471,907</td><td>5 227,076</td><td>5 146,960</td><td>5 54,353</td><td>5 54,366</td></tr><tr><td>Total assets</td><td>s 530,296</td><td>5 248,454</td><td>5 160,480</td><td>5 58,702</td><td>5 56,600</td></tr><tr><td>Mortgage loans payable and unsecured line of credit</td><td>5 309,829</td><td>5 70,817</td><td>5 113,182</td><td>5 40,894</td><td>5 39,164</td></tr><tr><td>Total liabilities</td><td>5 330,527</td><td>5 81,537</td><td>5 120,907</td><td>$ 42,369</td><td>5 40,HI9</td></tr><tr><td>Mandatorily redeemable Series V Preferred Stock</td><td>$</td><td>5</td><td>5 25,042</td><td>$</td><td>$</td></tr><tr><td>Stockholders' equity</td><td>5 199,769</td><td>5 166,917</td><td>5 14,531</td><td>5 16,333</td><td>5 16,481</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 152, "label": "table", "text": "" } ]
{ "filename": "NYSE_ARE_1998.pdf", "page": 23 }
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For the Period forma shares of common stock outstanding for the years ended December 31, 1997 and 1996 incude all shares outstanding after giving effect to the Offering; weighted for the period beginning from the date of the Offering, conversion of all series of preferred stock, the 1,765.923 to 1 stock split, the issuance of the stock grants and exercise of substitute stock options. Pro forma restated shares of common stock outstanding for the periods ended December 31, 1995 and 1994 also include shares outstanding after giving effect to the 1,765.923 to 1 stock split. Pro (3) Represents an accrual for 54,239,000 of non-recurring; non-cash compensation expense in 1997 relating to the issuance of stock options and stock In connection with the Offering; the holders of options previously granted by Holdings under its 1994 stock plans received options to purchase shares of our common stock in substitution for the Holdings options. These substitute options were exercised in connection with the Offering. option grants. (2) Represents a 5353,000 bonus we to an officer of Alexandria in 1997 in connection with the Offeringspecial paid (4) This adjustment relates solely to the non-cash accrual of a one-time post-retirement benefit for an officer of Alexandria in 1997. (6) Of this amount, 52,147,000 represents the write-off of costs associated with debt we off in connection with the Offering; and 5148,000 represents the write-off of costs associated with debt off in November 1997. paid paid (5) In connection with the Offering; we 'acquired the membership interests in the Acquisition LLC for S58 ooo. The purchase we for the Acquisition LLC exceeded the cost incurred by the Acquisition LLC to purchase the properties it owned by 56,973,000. This difference was accounted for as a financing cost: ,844 € paid price We compute funds from operations ("FFO") in accordance with standards established by the Board of Governors of NAREIT in its March 1995 White ("White Paper") The White defines FFO as net income (loss) (computed in accordance with GAAP) , excluding (or losses) from debt restructuring and sales of property, and excluding amounts for extraordinary and non-recurring items, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures . For a more detailed discussion of FFO sce Managements Discussion and Analysis of Financial Condition and Results of Operations Funds from Operations . Paper Paper gains
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"bbox": [ 0.5571352663136913, 0.4583333333333333, 0.5692865262114817, 0.4684343434343434 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.6020949279355158, 0.45749158249158245, 0.6421940855982242, 0.47264309764309764 ], "ocr": false, "ocr_confidence": 1, "text": "3,883" }, { "bbox": [ 0.6567755974755728, 0.4591750841750842, 0.6664966053938052, 0.4684343434343434 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.6895839991996069, 0.4566498316498317, 0.7430495427498849, 0.47180134680134683 ], "ocr": false, "ocr_confidence": 1, "text": "(1,646) " }, { "bbox": [ 0.7515554246783381, 0.4583333333333333, 0.7624915585863495, 0.4684343434343434 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.8092739091928427, 0.4595959595959596, 0.8360066809679817, 0.4722222222222222 ], "ocr": false, "ocr_confidence": 1, "text": "355" }, { "bbox": [ 0.8487655038606616, 0.4591750841750842, 0.8572713857891149, 0.4684343434343434 ], "ocr": false, 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0.47474747474747475, 0.6452319005726719, 0.4882154882154882 ], "ocr": false, "ocr_confidence": 1, "text": "(87,620)" }, { "bbox": [ 0.6555604714857938, 0.476010101010101, 0.6664966053938052, 0.48526936026936024 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.6774327393018166, 0.47516835016835013, 0.7406192907703267, 0.4877946127946128 ], "ocr": false, "ocr_confidence": 1, "text": "(94,900)" }, { "bbox": [ 0.7527705506681172, 0.476010101010101, 0.7624915585863495, 0.4861111111111111 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.7934772713257151, 0.4755892255892256, 0.8408671849270978, 0.489057239057239 ], "ocr": false, "ocr_confidence": 1, "text": "(1,554)|" }, { "bbox": [ 0.873675586651132, 0.4755892255892256, 0.9344318861400841, 0.4882154882154882 ], "ocr": false, "ocr_confidence": 1, "text": "(29,924)" }, { "bbox": [ 0.0874890712640911, 0.49200336700336705, 0.31836300932210926, 0.505892255892256 ], "ocr": false, "ocr_confidence": 1, "text": "Cash flows from financing activities" }, { "bbox": [ 0.4599251871313678, 0.4928451178451178, 0.47086132103937917, 0.5029461279461279 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.4854428329167277, 0.49242424242424243, 0.5431613174312323, 0.5050505050505051 ], "ocr": false, "ocr_confidence": 1, "text": "220,104" }, { "bbox": [ 0.5595655182932493, 0.4936868686868687, 0.5692865262114817, 0.5029461279461279 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.5954117349917312, 0.49242424242424243, 0.6403713966135557, 0.5050505050505051 ], "ocr": false, "ocr_confidence": 1, "text": "84,I01" }, { "bbox": [ 0.6567755974755728, 0.4936868686868687, 0.6664966053938052, 0.5029461279461279 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.6901915621944965, 0.494949494949495, 0.7363663498061002, 0.5050505050505051 ], "ocr": false, "ocr_confidence": 1, "text": "97,323" }, { "bbox": [ 0.7527705506681172, 0.4936868686868687, 0.7624915585863495, 0.5029461279461279 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.8056285312235055, 0.494949494949495, 0.8335764289884235, 0.5050505050505051 ], "ocr": false, "ocr_confidence": 1, "text": "927" }, { "bbox": [ 0.8846117205591434, 0.4941077441077441, 0.9283562561911889, 0.505892255892256 ], "ocr": false, "ocr_confidence": 1, "text": "32,139" }, { "bbox": [ 0.08627394527431206, 0.5084175084175084, 0.3627151079490444, 0.523989898989899 ], "ocr": false, "ocr_confidence": 1, "text": "Number of properties owned at period end" }, { "bbox": [ 0.5261495535743257, 0.5117845117845118, 0.5431613174312323, 0.5227272727272727 ], "ocr": false, "ocr_confidence": 1, "text": "SI" }, { "bbox": [ 0.6203218177822014, 0.5122053872053872, 0.6397638336186662, 0.5197811447811448 ], "ocr": false, "ocr_confidence": 1, "text": "22" }, { "bbox": [ 0.7187470229543039, 0.5122053872053872, 0.7345436608214315, 0.5197811447811448 ], "ocr": false, "ocr_confidence": 1, "text": "[2" }, { "bbox": [ 0.08809663425898062, 0.5252525252525253, 0.4392680453051241, 0.5408249158249158 ], "ocr": false, "ocr_confidence": 1, "text": "Rentable square feet of properties owned at period end" }, { "bbox": [ 0.478759639972943, 0.5248316498316499, 0.5437688804261217, 0.5408249158249158 ], "ocr": false, "ocr_confidence": 1, "text": "3,588,154" }, { "bbox": [ 0.5771848451450455, 0.5256734006734006, 0.6403713966135557, 0.5391414141414141 ], "ocr": false, "ocr_confidence": 1, "text": "1,747,837" }, { "bbox": [ 0.6719646723478109, 0.5286195286195287, 0.735151223816321, 0.5395622895622896 ], "ocr": false, "ocr_confidence": 1, "text": "1,031,070" }, { "bbox": [ 0.7801108854381457, 0.5286195286195287, 0.8335764289884235, 0.5395622895622896 ], "ocr": false, "ocr_confidence": 1, "text": "313,042" }, { "bbox": [ 0.874890712640911, 0.5286195286195287, 0.9283562561911889, 0.5395622895622896 ], "ocr": false, "ocr_confidence": 1, "text": "313,042" }, { "bbox": [ 0.060756299488952156, 0.5437710437710438, 0.07776806334585876, 0.5547138047138047 ], "ocr": false, "ocr_confidence": 1, "text": "84" }, { "bbox": [ 0.08627394527431206, 0.5429292929292929, 0.379726871805951, 0.5585016835016835 ], "ocr": false, "ocr_confidence": 1, "text": "Occupancy of properties owned at period end" }, { "bbox": [ 0.5103529157071981, 0.5446127946127945, 0.5443764434210113, 0.5580808080808081 ], "ocr": false, "ocr_confidence": 1, "text": "93%" }, { "bbox": [ 0.6075629948895215, 0.5446127946127945, 0.6415865226033347, 0.5580808080808081 ], "ocr": false, "ocr_confidence": 1, "text": "97%" }, { "bbox": [ 0.7023428220922868, 0.5446127946127945, 0.7375814757958792, 0.5580808080808081 ], "ocr": false, "ocr_confidence": 1, "text": "97%" }, { "bbox": [ 0.7977302122899418, 0.5433501683501684, 0.8353991179730921, 0.5585016835016835 ], "ocr": false, "ocr_confidence": 1, "text": "96%" }, { "bbox": [ 0.8955478544671547, 0.5437710437710438, 0.930786508170747, 0.5563973063973064 ], "ocr": false, "ocr_confidence": 1, "text": "889" }, { "bbox": [ 0.13123360689613664, 0.6026936026936026, 0.9320016341605261, 0.6161616161616161 ], "ocr": false, "ocr_confidence": 1, "text": "forma shares of common stock outstanding for the years ended December 31, 1997 and 1996 incude all shares outstanding after giving effect" }, { "bbox": [ 0.10814621309033484, 0.617003367003367, 0.14581511877348516, 0.6271043771043772 ], "ocr": false, "ocr_confidence": 1, "text": "to the" }, { "bbox": [ 0.14277730379903755, 0.61489898989899, 0.9350394491349736, 0.630892255892256 ], "ocr": false, "ocr_confidence": 1, "text": "Offering; weighted for the period beginning from the date of the Offering, conversion of all series of preferred stock, the 1,765.923 to 1 stock" }, { "bbox": [ 0.10875377608522435, 0.6266835016835016, 0.9058764253802766, 0.6430976430976431 ], "ocr": false, "ocr_confidence": 1, "text": "split, the issuance of the stock grants and exercise of substitute stock options. Pro forma restated shares of common stock outstanding for the" }, { "bbox": [ 0.10753865009544532, 0.6401515151515151, 0.8159571021366274, 0.6553030303030303 ], "ocr": false, "ocr_confidence": 1, "text": "periods ended December 31, 1995 and 1994 also include shares outstanding after giving effect to the 1,765.923 to 1 stock split." }, { "bbox": [ 0.08627394527431206, 0.6553030303030303, 0.23816469399669243, 0.6679292929292929 ], "ocr": false, "ocr_confidence": 1, "text": "(2) Represents a 5353,000" }, { "bbox": [ 0.2782638516594009, 0.6557239057239058, 0.3365898991687949, 0.6658249158249159 ], "ocr": false, "ocr_confidence": 1, "text": "bonus we" }, { "bbox": [ 0.3627151079490444, 0.6531986531986532, 0.7460873577243324, 0.6683501683501684 ], "ocr": false, "ocr_confidence": 1, "text": "to an officer of Alexandria in 1997 in connection with the Offering-" }, { "bbox": [ 0.08688150826920157, 0.6662457912457912, 0.9374697011145318, 0.6818181818181818 ], "ocr": false, "ocr_confidence": 1, "text": "(3) Represents an accrual for 54,239,000 of non-recurring; non-cash compensation expense in 1997 relating to the issuance of stock options and stock" }, { "bbox": [ 0.15067562273260135, 0.6805555555555556, 0.281909229628738, 0.6919191919191919 ], "ocr": false, "ocr_confidence": 1, "text": "In connection with the" }, { "bbox": [ 0.2788714146542904, 0.678030303030303, 0.7612764325965705, 0.6944444444444444 ], "ocr": false, "ocr_confidence": 1, "text": "Offering; the holders of options previously granted by Holdings under its 1994 stock " }, { "bbox": [ 0.7983377752848313, 0.6792929292929293, 0.9277486931962994, 0.6931818181818182 ], "ocr": false, "ocr_confidence": 1, "text": "plans received options" }, { "bbox": [ 0.1099689020750034, 0.6957070707070707, 0.12333528796257288, 0.7032828282828283 ], "ocr": false, "ocr_confidence": 1, "text": "to" }, { "bbox": [ 0.12212016197279384, 0.6919191919191919, 0.9259260042116308, 0.7058080808080808 ], "ocr": false, "ocr_confidence": 1, "text": "purchase shares of our common stock in substitution for the Holdings options. These substitute options were exercised in connection with the" }, { "bbox": [ 0.10814621309033484, 0.7053872053872053, 0.16464957161506033, 0.7192760942760942 ], "ocr": false, "ocr_confidence": 1, "text": "Offering." }, { "bbox": [ 0.0874890712640911, 0.7184343434343434, 0.8262856730497493, 0.7314814814814815 ], "ocr": false, "ocr_confidence": 1, "text": "(4) This adjustment relates solely to the non-cash accrual of a one-time post-retirement benefit for an officer of Alexandria in 1997." }, { "bbox": [ 0.0874890712640911, 0.7331649831649831, 0.10571596111077675, 0.7441077441077442 ], "ocr": false, "ocr_confidence": 1, "text": "(5)" }, { "bbox": [ 0.10936133908011388, 0.7323232323232324, 0.2393798199864715, 0.7424242424242424 ], "ocr": false, "ocr_confidence": 1, "text": "In connection with the" }, { "bbox": [ 0.23755713100180295, 0.7297979797979798, 0.29406048952652847, 0.7449494949494949 ], "ocr": false, "ocr_confidence": 1, "text": "Offering;" }, { "bbox": [ 0.2946680525214179, 0.7352693602693603, 0.31289494236810356, 0.742003367003367 ], "ocr": false, "ocr_confidence": 1, "text": "we" }, { "bbox": [ 0.30924956439876644, 0.7302188552188552, 0.6871537472200488, 0.7453703703703705 ], "ocr": false, "ocr_confidence": 1, "text": "'acquired the membership interests in the Acquisition LLC for S58" }, { "bbox": [ 0.7120638300105193, 0.7310606060606061, 0.8226402950804121, 0.7441077441077442 ], "ocr": false, "ocr_confidence": 1, "text": "ooo. The purchase" }, { "bbox": [ 0.8536260078197777, 0.7352693602693603, 0.8718528976664633, 0.742003367003367 ], "ocr": false, "ocr_confidence": 1, "text": "we" }, { "bbox": [ 0.8991932324364919, 0.7314814814814815, 0.9417226420787583, 0.7424242424242424 ], "ocr": false, "ocr_confidence": 1, "text": "for the" }, { "bbox": [ 0.10936133908011388, 0.7432659932659932, 0.8912949135029281, 0.7584175084175083 ], "ocr": false, "ocr_confidence": 1, "text": "Acquisition LLC exceeded the cost incurred by the Acquisition LLC to purchase the properties it owned by 56,973,000. This difference was" }, { "bbox": [ 0.10875377608522435, 0.7571548821548821, 0.21264704821133254, 0.7689393939393939 ], "ocr": false, "ocr_confidence": 1, "text": "accounted for as a" }, { "bbox": [ 0.21082435922666398, 0.7554713804713805, 0.29831343049075504, 0.7706228956228957 ], "ocr": false, "ocr_confidence": 1, "text": "financing cost:" }, { "bbox": [ 0.0874890712640911, 0.7697811447811448, 0.5832604750939406, 0.7832491582491583 ], "ocr": false, "ocr_confidence": 1, "text": "(6) Of this amount, 52,147,000 represents the write-off of costs associated with debt we" }, { "bbox": [ 0.6087781208793006, 0.7702020202020202, 0.759453743611902, 0.7803030303030303 ], "ocr": false, "ocr_confidence": 1, "text": "off in connection with the" }, { "bbox": [ 0.7564159286374543, 0.7676767676767676, 0.9338243231451947, 0.7836700336700336 ], "ocr": false, "ocr_confidence": 1, "text": "Offering; and 5148,000 repre-" }, { "bbox": [ 0.10936133908011388, 0.7828282828282829, 0.3754739308417243, 0.7937710437710437 ], "ocr": false, "ocr_confidence": 1, "text": "sents the write-off of costs associated with debt" }, { "bbox": [ 0.40099157662708423, 0.7828282828282829, 0.5322251835232209, 0.7954545454545454 ], "ocr": false, "ocr_confidence": 1, "text": "off in November 1997." }, { "bbox": [ 0.11057646506989292, 0.79503367003367, 0.9113444923342823, 0.8080808080808081 ], "ocr": false, "ocr_confidence": 1, "text": "We compute funds from operations (\"FFO\") in accordance with standards established by the Board of Governors of NAREIT in its March 1995" }, { "bbox": [ 0.11057646506989292, 0.8089225589225588, 0.14824537075304325, 0.819023569023569 ], "ocr": false, "ocr_confidence": 1, "text": "White" }, { "bbox": [ 0.1798386464872984, 0.8072390572390573, 0.33902015114835304, 0.8211279461279462 ], "ocr": false, "ocr_confidence": 1, "text": "(\"White Paper\") The White" }, { "bbox": [ 0.3724361158672767, 0.805976430976431, 0.8408671849270978, 0.8215488215488215 ], "ocr": false, "ocr_confidence": 1, "text": "defines FFO as net income (loss) (computed in accordance with GAAP) , excluding" }, { "bbox": [ 0.871245334671574, 0.8085016835016835, 0.9332167601503051, 0.81986531986532 ], "ocr": false, "ocr_confidence": 1, "text": "(or losses)" }, { "bbox": [ 0.10936133908011388, 0.81986531986532, 0.9259260042116308, 0.8333333333333334 ], "ocr": false, "ocr_confidence": 1, "text": "from debt restructuring and sales of property, and excluding amounts for extraordinary and non-recurring items, plus real estate related deprecia-" }, { "bbox": [ 0.10814621309033484, 0.8333333333333334, 0.8688150826920158, 0.8459595959595959 ], "ocr": false, "ocr_confidence": 1, "text": "tion and amortization and after adjustments for unconsolidated partnerships and joint ventures . 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[ { "bbox": [ 0.8846117391004945, 0.18771046339863479, 0.9307864896293958, 0.20959595959595959 ], "data": [], "index_in_doc": 153, "label": "text", "text": "For the Period" }, { "bbox": [ 0.06075629717128326, 0.21043773612590752, 0.936958256484068, 0.562164306640625 ], "data": [ { "html_seq": "<table><tr><td></td><td></td><td></td><td>YEAR ENDED DECEMBER 31</td><td></td><td></td></tr><tr><td colspan=\"2\">(Dollars in thousands)</td><th>1998</th><th>1997</th><th>1996</th><th>1995</th></tr><tr><td colspan=\"2\">OTHEK Data:</td><td></td><td></td><td></td><td></td></tr><tr><td colspan=\"2\">Net income (loss)</td><td>5 19,403</td><td>(2,797)|</td><td>2,175</td><td>5 761</td></tr><tr><td colspan=\"2\">Add:</td><td></td><td></td><td></td><td></td></tr><tr><td colspan=\"2\">Special bonus {2)</td><td></td><td>353</td><td></td><td></td></tr><tr><td colspan=\"2\">Stock compensation 0)</td><td></td><td>4,239</td><td></td><td></td></tr><tr><td colspan=\"2\">Post-retirement benefit (4</td><td></td><td>632</td><td>438</td><td></td></tr><tr><td colspan=\"2\">Acquisition LLC financing costs</td><td></td><td>6,973</td><td></td><td></td></tr><tr><td colspan=\"2\">Write-off of unamortized costs loan</td><td></td><td>2,295</td><td></td><td></td></tr><tr><td colspan=\"2\">Depreciation and amortization</td><td>10,296</td><td>4,866</td><td>2,405</td><td>1,668</td></tr><tr><td colspan=\"2\">Funds from operations (7</td><td>5 29,699</td><td>5 16,561</td><td>5 5,018</td><td>5 2,429</td></tr><tr><td colspan=\"2\">Cash flows from operating activities</td><td>5 26,143</td><td>5 3,883</td><td>5 (1,646)</td><td>5 355</td></tr><tr><td colspan=\"2\">Cash flows from investing activities</td><td>5 (246,753)</td><td>5 (87,620)</td><td>5 (94,900)</td><td>5 (1,554)|</td></tr><tr><td></td><td>Cash flows from financing activities</td><td>5 220,104</td><td>5 84,I01</td><td>5 97,323</td><td>5 927</td></tr><tr><td></td><td>Number of properties owned at period end</td><td>SI</td><td>22</td><td>[2</td><td></td></tr><tr><td></td><td>Rentable square feet of properties owned at period end</td><td>3,588,154</td><td>1,747,837</td><td>1,031,070</td><td>313,042</td></tr><tr><td></td><td>Occupancy of properties owned at period end</td><td>93%</td><td>97%</td><td>97%</td><td>96%</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 154, "label": "table", "text": "" }, { "bbox": [ 0.08729201610160602, 0.6026936155377012, 0.9350394491349736, 0.655500084462792 ], "data": [], "index_in_doc": 155, "label": "footnote", "text": "forma shares of common stock outstanding for the years ended December 31, 1997 and 1996 incude all shares outstanding after giving effect to the Offering; weighted for the period beginning from the date of the Offering, conversion of all series of preferred stock, the 1,765.923 to 1 stock split, the issuance of the stock grants and exercise of substitute stock options. Pro forma restated shares of common stock outstanding for the periods ended December 31, 1995 and 1994 also include shares outstanding after giving effect to the 1,765.923 to 1 stock split. Pro" }, { "bbox": [ 0.08688151058687048, 0.6662457784016927, 0.9374696640318294, 0.7192761006981435 ], "data": [], "index_in_doc": 156, "label": "footnote", "text": "(3) Represents an accrual for 54,239,000 of non-recurring; non-cash compensation expense in 1997 relating to the issuance of stock options and stock In connection with the Offering; the holders of options previously granted by Holdings under its 1994 stock plans received options to purchase shares of our common stock in substitution for the Holdings options. These substitute options were exercised in connection with the Offering. option grants." }, { "bbox": [ 0.08627394295664316, 0.6531986660427518, 0.7460873762656837, 0.6683501811942669 ], "data": [], "index_in_doc": 157, "label": "footnote", "text": "(2) Represents a 5353,000 bonus we to an officer of Alexandria in 1997 in connection with the Offeringspecial paid" }, { "bbox": [ 0.0874890712640911, 0.7184343434343434, 0.8262856915911004, 0.7314814750594322 ], "data": [], "index_in_doc": 158, "label": "footnote", "text": "(4) This adjustment relates solely to the non-cash accrual of a one-time post-retirement benefit for an officer of Alexandria in 1997." }, { "bbox": [ 0.0874890712640911, 0.7676767676767676, 0.9341370044911973, 0.7954545454545454 ], "data": [], "index_in_doc": 159, "label": "footnote", "text": "(6) Of this amount, 52,147,000 represents the write-off of costs associated with debt we off in connection with the Offering; and 5148,000 represents the write-off of costs associated with debt off in November 1997. paid paid" }, { "bbox": [ 0.0874890712640911, 0.7297979797979798, 0.9428824406766688, 0.7706228892008463 ], "data": [], "index_in_doc": 160, "label": "footnote", "text": "(5) In connection with the Offering; we 'acquired the membership interests in the Acquisition LLC for S58 ooo. The purchase we for the Acquisition LLC exceeded the cost incurred by the Acquisition LLC to purchase the properties it owned by 56,973,000. This difference was accounted for as a financing cost: ,844 € paid price" }, { "bbox": [ 0.08840773727246563, 0.7950336764557193, 0.933977919698224, 0.8594276062165848 ], "data": [], "index_in_doc": 161, "label": "footnote", "text": "We compute funds from operations (\"FFO\") in accordance with standards established by the Board of Governors of NAREIT in its March 1995 White (\"White Paper\") The White defines FFO as net income (loss) (computed in accordance with GAAP) , excluding (or losses) from debt restructuring and sales of property, and excluding amounts for extraordinary and non-recurring items, plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures . For a more detailed discussion of FFO sce Managements Discussion and Analysis of Financial Condition and Results of Operations Funds from Operations . Paper Paper gains" } ]
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[ MANAGEMEnT'S Discussion And AnAlysis OF Financial CONDITION And RESUlTs f Opeaations ] ALEXANDRIA REAL ESTATE EQUITIES. INC. THE FOLLOWING DISCUSSION SHOULD BE READ [N CO NJUNCTION WITH OUR CONSOLIDATED FINANCIAL STATEMENTS AN D NOTES THERETO APPEARING ELSEWHERE I N THIS REPO RT . OvERVIEW In June 1997, we completed an initial public offering of our common stock (the "Offering"). We issued 7,762,500 shares of our common stock in connection with the Offering (including shares issued in the related exercise of the underwriters' overallotment option) and raised $138.9 million, net of underwriting discounts and commissions, advisory fees and offering costs . Since the Offering, we have continued to devote substantially all of our resources to the acquisition; selective development and management of high quality; strategically located properties leased principally to tenants in the life science industry (we refer to these properties as "Life Science Facilities") . In we: 1998, - Sold 1,150,000 shares of our common stock in to PaineWebber Incorporated for inclusion in the PaineWebber Equity Trust REIT Series I, a unit investment trust. We received aggregate proceeds from this transaction, net of underwriting discounts and commissions , advisory fees and offering costs, of approximately S32.7 million. May - Increased our borrowing capacity under our line of credit S15o million to million in August, thereby providing additional flexibility in pursuing acquisitions and funding tenant improvements and expenditures. from 5250 capital - Acquired a total of 29 properties with approximately 1.8 million in rentable square feet, including two properties aggregating approximately I05,000 rentable square feet that undergo major renovation. will Our primary source of revenue is rental income and tenant recoveries from leases at the properties we own. Of the 51 properties we owned as of December 31, four were acquired in calendar year 1994, eight in 1996 (the "1996 Acquired Properties") , I0 in 1997 (the "1997 Acquired Properties and 29 in (the "1998 Acquired Properties") - As a result of our acquisition activities there were 'significant increases in total revenues and expenses for 1998 as compared to 1997. 1998, 1998 RESUlTs Of Operations Comparison of the Year Ended December 31, 1998 to the Year Ended December 31, 1997 Rental revenue increased by 522.9 million, or 89%, to 548.5 million compared to 6 million for 1997. The increase resulted primarily from the 1997 Acquired Properties being owned for a full period and the addition of the Acquired Properties. A portion of the increase was due to 000 in rental termination payments received in 1998 associated with leases at two of the properties. Rental revenue the properties we acquired before January I, 1997 "Same Properties") increased by 5234,000, or 1.6%, due to increases in rental rates and occupancy for 1998 . 5251998 5277 (the from Tenant recoveries increased by million , or to million for 1998 compared to million for 1997. The increase resulted primarily from the 1997 Acquired Properties owned for a full period and the addition of the 1998 Acquired Properties. Tenant recoveries for the Same Properties increased by S149,000, or 2.89, generally due to the improved identification and recovery of costs at certain properties . 58.4 511.3 52.9 35%, being Interest and other income increased by 5398,000, or 489, to S1.2 million for compared to 5836,000 for 1997, resulting primarily from Ssuooo of interest income from a 56.0 million secured loan made in connection with the acquisition of one of the Acquired Properties. This increase was partially offset by a decrease in interest income resulting from lower level of cash equivalents in 1998 compared to 1997, because cash equivalents had been used to acquire properties. 1998 , 1998 _
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We issued 7,762,500 shares of our" }, { "bbox": [ 0.05042772857583029, 0.31565656565656564, 0.29406048952652847, 0.32744107744107737 ], "ocr": false, "ocr_confidence": 1, "text": "common stock in connection with the" }, { "bbox": [ 0.2922378005418599, 0.31186868686868685, 0.8803587795949167, 0.3291245791245792 ], "ocr": false, "ocr_confidence": 1, "text": "Offering (including shares issued in the related exercise of the underwriters' overallotment" }, { "bbox": [ 0.04982016558094077, 0.3291245791245792, 0.7892243303614885, 0.3463804713804713 ], "ocr": false, "ocr_confidence": 1, "text": "option) and raised $138.9 million, net of underwriting discounts and commissions, advisory fees and offering costs ." }, { "bbox": [ 0.07229999639185306, 0.3463804713804713, 0.8827890315744747, 0.36363636363636365 ], "ocr": false, "ocr_confidence": 1, "text": "Since the Offering, we have continued to devote substantially all of our resources to the acquisition; selective development and" }, { "bbox": [ 0.04982016558094077, 0.364057239057239, 0.8669923937073473, 0.3821548821548822 ], "ocr": false, "ocr_confidence": 1, "text": "management of high quality; strategically located properties leased principally to tenants in the life science industry (we refer to" }, { "bbox": [ 0.05042772857583029, 0.38299663299663295, 0.33355208419434734, 0.398989898989899 ], "ocr": false, "ocr_confidence": 1, "text": "these properties as \"Life Science Facilities\") ." }, { "bbox": [ 0.07412268537652163, 0.40235690235690236, 0.09113444923342823, 0.41245791245791247 ], "ocr": false, "ocr_confidence": 1, "text": "In" }, { "bbox": [ 0.13184116989102618, 0.40361952861952866, 0.15614368968660705, 0.41203703703703703 ], "ocr": false, "ocr_confidence": 1, "text": "we:" }, { "bbox": [ 0.09538739019765488, 0.41708754208754206, 0.39552350967307853, 0.4322390572390572 ], "ocr": false, "ocr_confidence": 1, "text": "Sold 1,150,000 shares of our common stock in" }, { "bbox": [ 0.4252940964226651, 0.4166666666666667, 0.8797512166000272, 0.4305555555555556 ], "ocr": false, "ocr_confidence": 1, "text": "to PaineWebber Incorporated for inclusion in the PaineWebber Equity" }, { "bbox": [ 0.09538739019765488, 0.43139730639730645, 0.8840041575642539, 0.44865319865319864 ], "ocr": false, "ocr_confidence": 1, "text": "Trust REIT Series I, a unit investment trust. We received aggregate proceeds from this transaction, net of underwriting dis-" }, { "bbox": [ 0.09477982720276536, 0.45075757575757575, 0.6701419833631423, 0.4659090909090909 ], "ocr": false, "ocr_confidence": 1, "text": "counts and commissions , advisory fees and offering costs, of approximately S32.7 million." }, { "bbox": [ 0.0959949531925444, 0.4705387205387206, 0.18712940242597265, 0.48148148148148145 ], "ocr": false, "ocr_confidence": 1, "text": "Increased our" }, { "bbox": [ 0.1859142764361936, 0.4684343434343434, 0.46600081708026303, 0.484006734006734 ], "ocr": false, "ocr_confidence": 1, "text": "borrowing capacity under our line of credit" }, { "bbox": [ 0.49698652981962865, 0.46759259259259256, 0.6008798019457369, 0.48358585858585856 ], "ocr": false, "ocr_confidence": 1, "text": "S15o million to" }, { "bbox": [ 0.636118455649329, 0.46759259259259256, 0.8767134016255795, 0.4831649831649832 ], "ocr": false, "ocr_confidence": 1, "text": "million in August, thereby providing" }, { "bbox": [ 0.09538739019765488, 0.484006734006734, 0.6373335816391081, 0.5012626262626263 ], "ocr": false, "ocr_confidence": 1, "text": "additional flexibility in pursuing acquisitions and funding tenant improvements and" }, { "bbox": [ 0.6804705542762641, 0.4831649831649832, 0.7734276924943609, 0.5 ], "ocr": false, "ocr_confidence": 1, "text": "expenditures." }, { "bbox": [ 0.0959949531925444, 0.5004208754208754, 0.8967629804569338, 0.5189393939393939 ], "ocr": false, "ocr_confidence": 1, "text": "Acquired a total of 29 properties with approximately 1.8 million in rentable square feet, including two properties aggregating" }, { "bbox": [ 0.0959949531925444, 0.5206228956228957, 0.40524451759131086, 0.5357744107744108 ], "ocr": false, "ocr_confidence": 1, "text": "approximately I05,000 rentable square feet that" }, { "bbox": [ 0.4283319113971127, 0.5185185185185185, 0.606955431894632, 0.5357744107744108 ], "ocr": false, "ocr_confidence": 1, "text": "undergo major renovation." }, { "bbox": [ 0.07473024837141115, 0.5361952861952862, 0.8949402914722653, 0.5526094276094277 ], "ocr": false, "ocr_confidence": 1, "text": "Our primary source of revenue is rental income and tenant recoveries from leases at the properties we own. Of the 51 properties" }, { "bbox": [ 0.0534655435502779, 0.5563973063973064, 0.24181007196602955, 0.5690235690235691 ], "ocr": false, "ocr_confidence": 1, "text": "we owned as of December 31," }, { "bbox": [ 0.2800865406440694, 0.5534511784511784, 0.8998007954313815, 0.5694444444444444 ], "ocr": false, "ocr_confidence": 1, "text": "four were acquired in calendar year 1994, eight in 1996 (the \"1996 Acquired Properties\") , I0 in" }, { "bbox": [ 0.05164285456560933, 0.5723905723905723, 0.28859242257252277, 0.5883838383838383 ], "ocr": false, "ocr_confidence": 1, "text": "1997 (the \"1997 Acquired Properties" }, { "bbox": [ 0.2989209934856446, 0.5732323232323232, 0.3645377969337129, 0.5858585858585859 ], "ocr": false, "ocr_confidence": 1, "text": "and 29 in" }, { "bbox": [ 0.39916888764241565, 0.5698653198653199, 0.8688150826920158, 0.5862794612794613 ], "ocr": false, "ocr_confidence": 1, "text": "(the \"1998 Acquired Properties\") - As a result of our acquisition activities" }, { "bbox": [ 0.052250417560498856, 0.5909090909090909, 0.12272772496768335, 0.6018518518518519 ], "ocr": false, "ocr_confidence": 1, "text": "there were" }, { "bbox": [ 0.11968990999323575, 0.5875420875420875, 0.6543453454960148, 0.6056397306397306 ], "ocr": false, "ocr_confidence": 1, "text": "'significant increases in total revenues and expenses for 1998 as compared to 1997." }, { "bbox": [ 0.0534655435502779, 0.6262626262626263, 0.2369495680069134, 0.6363636363636364 ], "ocr": false, "ocr_confidence": 1, "text": "RESUlTs Of Operations" }, { "bbox": [ 0.05407310654516742, 0.6405723905723906, 0.5790075341297141, 0.6561447811447811 ], "ocr": false, "ocr_confidence": 1, "text": "Comparison of the Year Ended December 31, 1998 to the Year Ended December 31, 1997" }, { "bbox": [ 0.07594537436119018, 0.6578282828282829, 0.5133907306816458, 0.6738215488215488 ], "ocr": false, "ocr_confidence": 1, "text": "Rental revenue increased by 522.9 million, or 89%, to 548.5 million" }, { "bbox": [ 0.5717167781910398, 0.6578282828282829, 0.6561680344806833, 0.6717171717171717 ], "ocr": false, "ocr_confidence": 1, "text": "compared to" }, { "bbox": [ 0.6829008062558223, 0.6574074074074073, 0.8943327284773758, 0.670875420875421 ], "ocr": false, "ocr_confidence": 1, "text": "6 million for 1997. The increase" }, { "bbox": [ 0.05285798055538837, 0.6738215488215488, 0.7369739128009896, 0.6906565656565656 ], "ocr": false, "ocr_confidence": 1, "text": "resulted primarily from the 1997 Acquired Properties being owned for a full period and the addition of the" }, { "bbox": [ 0.7740352554892505, 0.6750841750841751, 0.8347915549782026, 0.6877104377104377 ], "ocr": false, "ocr_confidence": 1, "text": "Acquired" }, { "bbox": [ 0.0534655435502779, 0.6927609427609427, 0.3590697299797072, 0.7079124579124578 ], "ocr": false, "ocr_confidence": 1, "text": "Properties. A portion of the increase was due to" }, { "bbox": [ 0.39309325769352044, 0.6910774410774412, 0.8985856694416023, 0.7066498316498316 ], "ocr": false, "ocr_confidence": 1, "text": "000 in rental termination payments received in 1998 associated with leases at" }, { "bbox": [ 0.0534655435502779, 0.7112794612794613, 0.12029747298812526, 0.7222222222222222 ], "ocr": false, "ocr_confidence": 1, "text": "two of the" }, { "bbox": [ 0.11725965801367765, 0.7095959595959596, 0.2910226745520808, 0.7255892255892256 ], "ocr": false, "ocr_confidence": 1, "text": "properties. Rental revenue" }, { "bbox": [ 0.32504620226589404, 0.7083333333333334, 0.6470545895573404, 0.7251683501683502 ], "ocr": false, "ocr_confidence": 1, "text": "the properties we acquired before January I, 1997" }, { "bbox": [ 0.6756100503171479, 0.7095959595959596, 0.8870419725387015, 0.723063973063973 ], "ocr": false, "ocr_confidence": 1, "text": "\"Same Properties\") increased by" }, { "bbox": [ 0.05285798055538837, 0.7276936026936027, 0.4781520769780534, 0.7432659932659932 ], "ocr": false, "ocr_confidence": 1, "text": "5234,000, or 1.6%, due to increases in rental rates and occupancy" }, { "bbox": [ 0.07655293735607971, 0.7457912457912458, 0.2734033477002847, 0.7592592592592593 ], "ocr": false, "ocr_confidence": 1, "text": "Tenant recoveries increased by" }, { "bbox": [ 0.30621174942431884, 0.7449494949494949, 0.3779041828212824, 0.7567340067340068 ], "ocr": false, "ocr_confidence": 1, "text": "million , or" }, { "bbox": [ 0.41071258454531656, 0.7457912457912458, 0.4277243484022232, 0.7558922558922558 ], "ocr": false, "ocr_confidence": 1, "text": "to" }, { "bbox": [ 0.46114031312114684, 0.7432659932659932, 0.6555604714857938, 0.7592592592592593 ], "ocr": false, "ocr_confidence": 1, "text": "million for 1998 compared to" }, { "bbox": [ 0.6877613102149384, 0.7441077441077442, 0.8870419725387015, 0.7575757575757576 ], "ocr": false, "ocr_confidence": 1, "text": "million for 1997. The increase" }, { "bbox": [ 0.05468066954005694, 0.7626262626262627, 0.39613107266796804, 0.7760942760942761 ], "ocr": false, "ocr_confidence": 1, "text": "resulted primarily from the 1997 Acquired Properties" }, { "bbox": [ 0.435622667335787, 0.7605218855218856, 0.8353991179730921, 0.7756734006734007 ], "ocr": false, "ocr_confidence": 1, "text": "owned for a full period and the addition of the 1998 Acquired" }, { "bbox": [ 0.05468066954005694, 0.7773569023569024, 0.8912949135029281, 0.7937710437710437 ], "ocr": false, "ocr_confidence": 1, "text": "Properties. Tenant recoveries for the Same Properties increased by S149,000, or 2.89, generally due to the improved identification" }, { "bbox": [ 0.05468066954005694, 0.7971380471380471, 0.25153107988426193, 0.8097643097643098 ], "ocr": false, "ocr_confidence": 1, "text": "and recovery of costs at certain" }, { "bbox": [ 0.24970839089959335, 0.7954545454545454, 0.3220083872914464, 0.8114478114478114 ], "ocr": false, "ocr_confidence": 1, "text": "properties ." }, { "bbox": [ 0.07594537436119018, 0.8118686868686869, 0.5741470301705979, 0.8287037037037037 ], "ocr": false, "ocr_confidence": 1, "text": "Interest and other income increased by 5398,000, or 489, to S1.2 million for" }, { "bbox": [ 0.6075629948895215, 0.8101851851851851, 0.8858268465489224, 0.827020202020202 ], "ocr": false, "ocr_confidence": 1, "text": "compared to 5836,000 for 1997, resulting" }, { "bbox": [ 0.0534655435502779, 0.8278619528619529, 0.8973705434518233, 0.8455387205387205 ], "ocr": false, "ocr_confidence": 1, "text": "primarily from Ssuooo of interest income from a 56.0 million secured loan made in connection with the acquisition of one of the" }, { "bbox": [ 0.0899193232436492, 0.8472222222222222, 0.6446243375777824, 0.8623737373737373 ], "ocr": false, "ocr_confidence": 1, "text": "Acquired Properties. This increase was partially offset by a decrease in interest income" }, { "bbox": [ 0.6421940855982242, 0.8446969696969697, 0.7418344167601058, 0.8619528619528619 ], "ocr": false, "ocr_confidence": 1, "text": "resulting from" }, { "bbox": [ 0.7509478616834486, 0.8468013468013468, 0.873675586651132, 0.8585858585858586 ], "ocr": false, "ocr_confidence": 1, "text": "lower level of cash" }, { "bbox": [ 0.0534655435502779, 0.8636363636363636, 0.7041655110769555, 0.8808922558922558 ], "ocr": false, "ocr_confidence": 1, "text": "equivalents in 1998 compared to 1997, because cash equivalents had been used to acquire properties." }, { "bbox": [ 0.0908178722286254, 0.4037938541054405, 0.13276530989071852, 0.41312533781375144 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.3967698137919819, 0.41673146048225945, 0.4246553552986512, 0.43175338800258906 ], "ocr": false, "ocr_confidence": 1, "text": "May" }, { "bbox": [ 0.4647990744577826, 0.46766156610064025, 0.49818827244210895, 0.48225425881518463 ], "ocr": false, "ocr_confidence": 1, "text": "from" }, { "bbox": [ 0.6009109800748611, 0.46765738640818544, 0.6354797145253153, 0.48267931392851493 ], "ocr": false, "ocr_confidence": 1, "text": "5250" }, { "bbox": [ 0.6358018786445262, 0.4879689382805248, 0.6832173832606251, 0.49730042198883556 ], "ocr": false, "ocr_confidence": 1, "text": "capital" }, { "bbox": [ 0.40245580537681247, 0.5220774432188489, 0.4317281866065006, 0.5309528598114542 ], "ocr": false, "ocr_confidence": 1, "text": "will" }, { "bbox": [ 0.2397097699551091, 0.557818824988062, 0.28218684265498994, 0.5676020504328134 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.3630813230460507, 0.5746402547697198, 0.403055613509636, 0.5848715297420648 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.5133652476259584, 0.6570651320361233, 0.5346809185584663, 0.6707968208258297 ], "ocr": false, "ocr_confidence": 1, "text": "for" }, { "bbox": [ 0.5329610307821404, 0.6596895165134682, 0.5746263089014574, 0.6711185642946127 ], "ocr": false, "ocr_confidence": 1, "text": "1998 ." }, { "bbox": [ 0.6568235898852344, 0.6566266305331306, 0.6846755028308291, 0.672077073170573 ], "ocr": false, "ocr_confidence": 1, "text": "525-" }, { "bbox": [ 0.73365848480029, 0.6773474445166815, 0.7743128685155024, 0.687130669961433 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.3591486996897422, 0.6919734540348063, 0.3954445399630435, 0.708279071217719 ], "ocr": false, "ocr_confidence": 1, "text": "5277 " }, { "bbox": [ 0.6437754266850096, 0.7101621402916053, 0.6758513982150312, 0.7203934152639503 ], "ocr": false, "ocr_confidence": 1, "text": "(the" }, { "bbox": [ 0.2910360579193795, 0.7092440576831319, 0.32442525590370586, 0.7238367503976763 ], "ocr": false, "ocr_confidence": 1, "text": "from" }, { "bbox": [ 0.6556394411958287, 0.7420576291189812, 0.6864672145151244, 0.7583632463018941 ], "ocr": false, "ocr_confidence": 1, "text": "58.4" }, { "bbox": [ 0.42713016877463234, 0.7437558421949163, 0.46051936675895866, 0.7583485349094607 ], "ocr": false, "ocr_confidence": 1, "text": "511.3" }, { "bbox": [ 0.2728091680726938, 0.7445975930366673, 0.30376811407746207, 0.7591902857512115 ], "ocr": false, "ocr_confidence": 1, "text": "52.9" }, { "bbox": [ 0.37584014593873066, 0.7463574264868914, 0.4109539324431997, 0.7565887014592364 ], "ocr": false, "ocr_confidence": 1, "text": "35%," }, { "bbox": [ 0.3968025361133561, 0.7601584848762184, 0.43495120389039893, 0.7760368013190678 ], "ocr": false, "ocr_confidence": 1, "text": "being" }, { "bbox": [ 0.5699773340057867, 0.8150085551811751, 0.6129478170441118, 0.8259847108120909 ], "ocr": false, "ocr_confidence": 1, "text": "1998 ," }, { "bbox": [ 0.05298626481941836, 0.8503460821700338, 0.09404397994384586, 0.8617751299511783 ], "ocr": false, "ocr_confidence": 1, "text": "1998 _" } ]
[ { "bbox": [ 0.14899592464809722, 0.03998319067136206, 0.8330788903713318, 0.07702020202020202 ], "data": [], "index_in_doc": 162, "label": "section_header", "text": "[ MANAGEMEnT'S Discussion And AnAlysis OF Financial CONDITION And RESUlTs f Opeaations ]" }, { "bbox": [ 0.3590697299797072, 0.09090909090909091, 0.6172839842664027, 0.10185187754004893 ], "data": [], "index_in_doc": 163, "label": "text", "text": "ALEXANDRIA REAL ESTATE EQUITIES. INC." }, { "bbox": [ 0.21512320394103093, 0.11700339269156408, 0.7643762869320075, 0.1722794349747475 ], "data": [], "index_in_doc": 164, "label": "text", "text": "THE FOLLOWING DISCUSSION SHOULD BE READ [N CO NJUNCTION WITH OUR CONSOLIDATED FINANCIAL STATEMENTS AN D NOTES THERETO APPEARING ELSEWHERE I N THIS REPO RT ." }, { "bbox": [ 0.0506469904828357, 0.2828282828282828, 0.12880335028124076, 0.29292929292929293 ], "data": [], "index_in_doc": 165, "label": "section_header", "text": "OvERVIEW" }, { "bbox": [ 0.04982016673977521, 0.29419191919191917, 0.8806709974071404, 0.34638044569227433 ], "data": [], "index_in_doc": 166, "label": "text", "text": "In June 1997, we completed an initial public offering of our common stock (the \"Offering\"). We issued 7,762,500 shares of our common stock in connection with the Offering (including shares issued in the related exercise of the underwriters' overallotment option) and raised $138.9 million, net of underwriting discounts and commissions, advisory fees and offering costs ." }, { "bbox": [ 0.04982016673977521, 0.34638044569227433, 0.882789050115826, 0.398989898989899 ], "data": [], "index_in_doc": 167, "label": "text", "text": "Since the Offering, we have continued to devote substantially all of our resources to the acquisition; selective development and management of high quality; strategically located properties leased principally to tenants in the life science industry (we refer to these properties as \"Life Science Facilities\") ." }, { "bbox": [ 0.07412268769419052, 0.4018376282971315, 0.15614368505126924, 0.41402458422111743 ], "data": [], "index_in_doc": 168, "label": "section_header", "text": "In we: 1998," }, { "bbox": [ 0.07266989866521184, 0.4166666666666667, 0.8840041575642539, 0.4659090909090909 ], "data": [], "index_in_doc": 169, "label": "text", "text": "- Sold 1,150,000 shares of our common stock in to PaineWebber Incorporated for inclusion in the PaineWebber Equity Trust REIT Series I, a unit investment trust. We received aggregate proceeds from this transaction, net of underwriting discounts and commissions , advisory fees and offering costs, of approximately S32.7 million. May" }, { "bbox": [ 0.07402380898611034, 0.4675926054366911, 0.8767134016255795, 0.5012626262626263 ], "data": [], "index_in_doc": 170, "label": "text", "text": "- Increased our borrowing capacity under our line of credit S15o million to million in August, thereby providing additional flexibility in pursuing acquisitions and funding tenant improvements and expenditures. from 5250 capital" }, { "bbox": [ 0.07420694422921026, 0.500420888264974, 0.8967629804569338, 0.5357744236185094 ], "data": [], "index_in_doc": 171, "label": "text", "text": "- Acquired a total of 29 properties with approximately 1.8 million in rentable square feet, including two properties aggregating approximately I05,000 rentable square feet that undergo major renovation. will" }, { "bbox": [ 0.05163175524926974, 0.5361952733511877, 0.9002553922791812, 0.6056397177956321 ], "data": [], "index_in_doc": 172, "label": "text", "text": "Our primary source of revenue is rental income and tenant recoveries from leases at the properties we own. Of the 51 properties we owned as of December 31, four were acquired in calendar year 1994, eight in 1996 (the \"1996 Acquired Properties\") , I0 in 1997 (the \"1997 Acquired Properties and 29 in (the \"1998 Acquired Properties\") - As a result of our acquisition activities there were 'significant increases in total revenues and expenses for 1998 as compared to 1997. 1998, 1998" }, { "bbox": [ 0.05304823567733465, 0.6262626262626263, 0.2369495680069134, 0.6363636363636364 ], "data": [], "index_in_doc": 173, "label": "section_header", "text": "RESUlTs Of Operations" }, { "bbox": [ 0.05407310538633297, 0.6405724034164891, 0.5790075155883628, 0.6561447683006826 ], "data": [], "index_in_doc": 174, "label": "text", "text": "Comparison of the Year Ended December 31, 1998 to the Year Ended December 31, 1997" }, { "bbox": [ 0.05285798055538837, 0.6566266146573153, 0.8992723483819018, 0.7432659996880425 ], "data": [], "index_in_doc": 175, "label": "text", "text": "Rental revenue increased by 522.9 million, or 89%, to 548.5 million compared to 6 million for 1997. The increase resulted primarily from the 1997 Acquired Properties being owned for a full period and the addition of the Acquired Properties. A portion of the increase was due to 000 in rental termination payments received in 1998 associated with leases at two of the properties. Rental revenue the properties we acquired before January I, 1997 \"Same Properties\") increased by 5234,000, or 1.6%, due to increases in rental rates and occupancy for 1998 . 5251998 5277 (the from" }, { "bbox": [ 0.05376228860495653, 0.7420576268976385, 0.8924716403544498, 0.8114478178698608 ], "data": [], "index_in_doc": 176, "label": "text", "text": "Tenant recoveries increased by million , or to million for 1998 compared to million for 1997. The increase resulted primarily from the 1997 Acquired Properties owned for a full period and the addition of the 1998 Acquired Properties. Tenant recoveries for the Same Properties increased by S149,000, or 2.89, generally due to the improved identification and recovery of costs at certain properties . 58.4 511.3 52.9 35%, being" }, { "bbox": [ 0.05298626352874323, 0.8101851916072345, 0.8973705619931744, 0.8808922526812313 ], "data": [], "index_in_doc": 177, "label": "text", "text": "Interest and other income increased by 5398,000, or 489, to S1.2 million for compared to 5836,000 for 1997, resulting primarily from Ssuooo of interest income from a 56.0 million secured loan made in connection with the acquisition of one of the Acquired Properties. This increase was partially offset by a decrease in interest income resulting from lower level of cash equivalents in 1998 compared to 1997, because cash equivalents had been used to acquire properties. 1998 , 1998 _" } ]
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Rental operating expenses increased by 54.6 million; or 529, to million for 1998 compared to $8.8 million for 1997. The increase resulted almost entirely from the 1997 Acquired Properties owned for a full and the addition of the 1998 Acquired Properties. Operating expenses for the Same Properties decreased by 5145,000, or 2.59, primarily due to lower premiums on our blanket property and liability insurance policies. 513.4 being period The following is a comparison of property operating data computed under generally accepted accounting principles ("GAAP Basis") and under generally accepted accounting principles, adjusted to exclude the effect of straight line rent adjustments required by GAAP ("Cash Basis") for the Same Properties (in thousands, except percentage data): Revenue and operating expenses are computed in accordance with GAAP , except that revenue excludes the effect of straight line rent adjustments. General and administrative expenses increased by million, or 569, to $3.9 million for 1998 compared to million for 1997 due to owning a larger portfolio of properties in compared to 1997 and increased costs incurred as a result of company for a full year S1.4 52.5 1998 being public Interest expense increased by S7.0 million, or 100%, to 0 million for 1998 compared to $7.0 million for 1997. The increase resulted from indebtedness incurred to acquire the 1997 Acquired Properties and the 1998 Acquired Properties, offset by a reduction in ongoing interest expense due to the payoff of 572.7 million in secured notes payable in June 1997 with proceeds from the OfferingS14. Special bonus of 5353,000 in 1997 reflects a bonus we to an officer of Alexandria in connection with the Offering: Post retirement benefit expense of $632,000 in 1997 reflects an adjustment for the non-cash accrual associated with a one-time post retirement benefit an officer of Alexandria. Stock compensation expense of million was recorded in 1997 for the non-recurnon-cash expense related to the stock and options we issued to our officers, directors and certain employees , principally in connection with the Offering. paid for 54-2 ring grants Acquisition LLC financing costs of $7.0 million in 1997 represent the portion of the purchase of the membership interests in ARE Acquisitions, LLC (the "Acquisition LLC") in excess of the cost incurred by the Acquisition LLC to acquire its three Life Science Facilities . price Write-off of unamortized loan costs in 1997 represents the write-off of S2.1 million in loan costs associated with $72.7 million of secured notes we repaid with proceeds of the Offering and 5148,000 in loan costs associated with the of debt in November 1997. payoff Depreciation and amortization increased by S5.4 million; Or II0% , to million for compared to $4-9 million for 1997. The increase resulted primarily from depreciation associated with the 1997 Acquired Properties owned for a full and the addition of the 1998 Acquired Properties. 1998 510.3 being period As a result of the foregoing; net income was million for compared to a net loss of S2.8 million for 1997. 1998 S19.4 Comparison of the Year Ended December 31, 1997 t0 the Ended December 31, 1996 Year Rental revenue increased by million, or 989, to 6 million for 1997 compared to million for 1996. The increase resulted primarily the Acquired Properties being owned for a full period and the addition of the 1997 Acquired Properties . Rental revenue from the properties we acquired before January 1, Same Properties increased by S180,000, or 29. This increase resulted primarily from the conversion of 19,310 square feet of storage space to higher rent laboratory space at 10933 North Torrey Pines Road in October 1996. S12.7 525-( 512.9 from 1996 1996 (the "1997 25
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The" }, { "bbox": [ 0.08566638227942254, 0.0534511784511785, 0.521896612610099, 0.0673400673400674 ], "ocr": false, "ocr_confidence": 1, "text": "increase resulted almost entirely from the 1997 Acquired Properties" }, { "bbox": [ 0.562603333267697, 0.05387205387205382, 0.6683192943784737, 0.06565656565656566 ], "ocr": false, "ocr_confidence": 1, "text": "owned for a full" }, { "bbox": [ 0.7114562670156297, 0.05303030303030303, 0.9010159214211604, 0.06860269360269365 ], "ocr": false, "ocr_confidence": 1, "text": "and the addition of the 1998" }, { "bbox": [ 0.08688150826920157, 0.06986531986531991, 0.9338243231451947, 0.08585858585858586 ], "ocr": false, "ocr_confidence": 1, "text": "Acquired Properties. Operating expenses for the Same Properties decreased by 5145,000, or 2.59, primarily due to lower premiums" }, { "bbox": [ 0.0874890712640911, 0.08838383838383838, 0.26732771775138947, 0.10101010101010101 ], "ocr": false, "ocr_confidence": 1, "text": "on our blanket property and" }, { "bbox": [ 0.2655050287667209, 0.08585858585858586, 0.4416982972846822, 0.1018518518518518 ], "ocr": false, "ocr_confidence": 1, "text": "liability insurance policies." }, { "bbox": [ 0.10936133908011388, 0.10606060606060606, 0.1385243628348109, 0.11616161616161616 ], "ocr": false, "ocr_confidence": 1, "text": "The" }, { "bbox": [ 0.1354865478603633, 0.10311447811447806, 0.9046612993904976, 0.12037037037037042 ], "ocr": false, "ocr_confidence": 1, "text": "following is a comparison of property operating data computed under generally accepted accounting principles (\"GAAP" }, { "bbox": [ 0.08688150826920157, 0.11994949494949494, 0.9277486931962994, 0.13762626262626262 ], "ocr": false, "ocr_confidence": 1, "text": "Basis\") and under generally accepted accounting principles, adjusted to exclude the effect of straight line rent adjustments required" }, { "bbox": [ 0.08688150826920157, 0.13762626262626262, 0.6519150935164566, 0.15361952861952857 ], "ocr": false, "ocr_confidence": 1, "text": "by GAAP (\"Cash Basis\") for the Same Properties (in thousands, except percentage data):" }, { "bbox": [ 0.6816856802660431, 0.17003367003366998, 0.7946923973154941, 0.1801346801346801 ], "ocr": false, "ocr_confidence": 1, "text": "For the Year Ended" }, { "bbox": [ 0.7011276961025079, 0.180976430976431, 0.7764655074688085, 0.19276094276094272 ], "ocr": false, "ocr_confidence": 1, "text": "December 31" }, { "bbox": [ 0.7023428220922868, 0.19781144781144777, 0.735151223816321, 0.20959595959595959 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.8007680272643893, 0.20033670033670029, 0.8323613029986445, 0.2104377104377104 ], "ocr": false, "ocr_confidence": 1, "text": "1997" }, { "bbox": [ 0.0874890712640911, 0.2196969696969697, 0.17011763856906603, 0.2297979797979798 ], "ocr": false, "ocr_confidence": 1, "text": "QaAP Basis:" }, { "bbox": [ 0.0874890712640911, 0.23484848484848486, 0.1445999927837061, 0.24579124579124575 ], "ocr": false, "ocr_confidence": 1, "text": "Revenue" }, { "bbox": [ 0.6865461842251593, 0.23484848484848486, 0.735151223816321, 0.2474747474747475 ], "ocr": false, "ocr_confidence": 1, "text": "20,878" }, { "bbox": [ 0.7898318933563779, 0.23737373737373738, 0.8384369329475397, 0.24831649831649827 ], "ocr": false, "ocr_confidence": 1, "text": "20,432" }, { "bbox": [ 0.8906873505080386, 0.23569023569023564, 0.9295713821809679, 0.24663299663299668 ], "ocr": false, "ocr_confidence": 1, "text": "2.2 %" }, { "bbox": [ 0.0874890712640911, 0.25252525252525254, 0.2557840208484886, 0.26515151515151514 ], "ocr": false, "ocr_confidence": 1, "text": "Rental operating expenses" }, { "bbox": [ 0.6938369401638337, 0.2504208754208755, 0.7363663498061002, 0.26599326599326595 ], "ocr": false, "ocr_confidence": 1, "text": "5,616" }, { "bbox": [ 0.0874890712640911, 0.2693602693602694, 0.22722856008868106, 0.2828282828282828 ], "ocr": false, "ocr_confidence": 1, "text": "Net operating income" }, { "bbox": [ 0.6859386212302698, 0.2685185185185185, 0.7363663498061002, 0.2840909090909091 ], "ocr": false, "ocr_confidence": 1, "text": "15,262" }, { "bbox": [ 0.7527705506681172, 0.27062289562289565, 0.7637066845761286, 0.27988215488215484 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.7922621453359361, 0.2702020202020202, 0.8372218069577606, 0.2828282828282828 ], "ocr": false, "ocr_confidence": 1, "text": "14,671" }, { "bbox": [ 0.890079787513149, 0.2693602693602694, 0.9295713821809679, 0.281986531986532 ], "ocr": false, "ocr_confidence": 1, "text": "4.09" }, { "bbox": [ 0.0874890712640911, 0.3055555555555556, 0.18955965440553071, 0.31565656565656564 ], "ocr": false, "ocr_confidence": 1, "text": "CaSH Basis (I):" }, { "bbox": [ 0.08688150826920157, 0.32028619528619523, 0.1439924297888166, 0.33122895622895615 ], "ocr": false, "ocr_confidence": 1, "text": "Revenue" }, { "bbox": [ 0.6877613102149384, 0.32239057239057245, 0.735151223816321, 0.3333333333333333 ], "ocr": false, "ocr_confidence": 1, "text": "22,401" }, { "bbox": [ 0.7922621453359361, 0.32239057239057245, 0.8384369329475397, 0.3333333333333333 ], "ocr": false, "ocr_confidence": 1, "text": "21,520" }, { "bbox": [ 0.8906873505080386, 0.32028619528619523, 0.9313940711656366, 0.33375420875420864 ], "ocr": false, "ocr_confidence": 1, "text": "4.1 %" }, { "bbox": [ 0.08870419725387015, 0.3375420875420874, 0.25639158384337807, 0.351010101010101 ], "ocr": false, "ocr_confidence": 1, "text": "Rental operating expenses" }, { "bbox": [ 0.8019831532541685, 0.3383838383838384, 0.8384369329475397, 0.351010101010101 ], "ocr": false, "ocr_confidence": 1, "text": "5,761" }, { "bbox": [ 0.0874890712640911, 0.3547979797979798, 0.22844368607846008, 0.3678451178451178 ], "ocr": false, "ocr_confidence": 1, "text": "Net operating income" }, { "bbox": [ 0.688368873209828, 0.3539562289562289, 0.7369739128009896, 0.3691077441077441 ], "ocr": false, "ocr_confidence": 1, "text": "16,785" }, { "bbox": [ 0.7934772713257151, 0.35690235690235694, 0.8384369329475397, 0.3686868686868687 ], "ocr": false, "ocr_confidence": 1, "text": "I5,759" }, { "bbox": [ 0.8906873505080386, 0.3552188552188552, 0.930786508170747, 0.3686868686868687 ], "ocr": false, "ocr_confidence": 1, "text": "6.5 %" }, { "bbox": [ 0.10936133908011388, 0.385942760942761, 0.930786508170747, 0.39983164983164987 ], "ocr": false, "ocr_confidence": 1, "text": "Revenue and operating expenses are computed in accordance with GAAP , except that revenue excludes the effect of straight line rent adjustments." }, { "bbox": [ 0.10875377608522435, 0.41919191919191917, 0.4307621633766708, 0.43476430976430974 ], "ocr": false, "ocr_confidence": 1, "text": "General and administrative expenses increased by" }, { "bbox": [ 0.4581024981466993, 0.4187710437710438, 0.8110965981775112, 0.43476430976430974 ], "ocr": false, "ocr_confidence": 1, "text": "million, or 569, to $3.9 million for 1998 compared to" }, { "bbox": [ 0.8408671849270978, 0.42087542087542085, 0.9149898703036194, 0.4318181818181818 ], "ocr": false, "ocr_confidence": 1, "text": "million for" }, { "bbox": [ 0.08688150826920157, 0.43518518518518523, 0.4295470373868917, 0.4524410774410774 ], "ocr": false, "ocr_confidence": 1, "text": "1997 due to owning a larger portfolio of properties in" }, { "bbox": [ 0.46417812809559444, 0.4364478114478115, 0.8609167637584519, 0.4515993265993266 ], "ocr": false, "ocr_confidence": 1, "text": "compared to 1997 and increased costs incurred as a result of" }, { "bbox": [ 0.1300184809063576, 0.45454545454545453, 0.281909229628738, 0.46801346801346805 ], "ocr": false, "ocr_confidence": 1, "text": "company for a full year" }, { "bbox": [ 0.10875377608522435, 0.47095959595959597, 0.46478569109048395, 0.4861111111111111 ], "ocr": false, "ocr_confidence": 1, "text": "Interest expense increased by S7.0 million, or 100%, to" }, { "bbox": [ 0.4903033368758439, 0.47095959595959597, 0.9289638191860785, 0.4865319865319865 ], "ocr": false, "ocr_confidence": 1, "text": "0 million for 1998 compared to $7.0 million for 1997. The increase" }, { "bbox": [ 0.08627394527431206, 0.4882154882154882, 0.919242811267846, 0.5037878787878788 ], "ocr": false, "ocr_confidence": 1, "text": "resulted from indebtedness incurred to acquire the 1997 Acquired Properties and the 1998 Acquired Properties, offset by a reduc-" }, { "bbox": [ 0.08688150826920157, 0.5046296296296297, 0.9131671813189509, 0.5210437710437711 ], "ocr": false, "ocr_confidence": 1, "text": "tion in ongoing interest expense due to the payoff of 572.7 million in secured notes payable in June 1997 with proceeds from the" }, { "bbox": [ 0.08688150826920157, 0.5214646464646465, 0.1494604967428223, 0.5378787878787878 ], "ocr": false, "ocr_confidence": 1, "text": "Offering-" }, { "bbox": [ 0.11361428004434053, 0.5395622895622896, 0.46357056510070493, 0.5551346801346801 ], "ocr": false, "ocr_confidence": 1, "text": "Special bonus of 5353,000 in 1997 reflects a bonus we" }, { "bbox": [ 0.49334115185029154, 0.5404040404040404, 0.8141344131519589, 0.5521885521885521 ], "ocr": false, "ocr_confidence": 1, "text": "to an officer of Alexandria in connection with the" }, { "bbox": [ 0.8123117241672904, 0.5382996632996633, 0.9083066773598347, 0.5555555555555556 ], "ocr": false, "ocr_confidence": 1, "text": "Offering: Post" }, { "bbox": [ 0.08627394527431206, 0.5568181818181818, 0.9064839883751661, 0.5728114478114479 ], "ocr": false, "ocr_confidence": 1, "text": "retirement benefit expense of $632,000 in 1997 reflects an adjustment for the non-cash accrual associated with a one-time post" }, { "bbox": [ 0.08566638227942254, 0.5744949494949495, 0.20657141826243733, 0.5871212121212122 ], "ocr": false, "ocr_confidence": 1, "text": "retirement benefit" }, { "bbox": [ 0.22722856008868106, 0.5749158249158249, 0.590551231032615, 0.5883838383838383 ], "ocr": false, "ocr_confidence": 1, "text": "an officer of Alexandria. Stock compensation expense of" }, { "bbox": [ 0.620929380777091, 0.5757575757575758, 0.930786508170747, 0.5883838383838383 ], "ocr": false, "ocr_confidence": 1, "text": "million was recorded in 1997 for the non-recur-" }, { "bbox": [ 0.12029747298812526, 0.5925925925925926, 0.3596772929745968, 0.6052188552188552 ], "ocr": false, "ocr_confidence": 1, "text": "non-cash expense related to the stock" }, { "bbox": [ 0.40342182860664233, 0.5917508417508418, 0.8590940747737834, 0.6056397306397306 ], "ocr": false, "ocr_confidence": 1, "text": "and options we issued to our officers, directors and certain employees ," }, { "bbox": [ 0.8560562597993359, 0.5913299663299663, 0.9313940711656366, 0.6081649831649832 ], "ocr": false, "ocr_confidence": 1, "text": "principally" }, { "bbox": [ 0.08627394527431206, 0.6094276094276094, 0.23330419003757627, 0.6212121212121212 ], "ocr": false, "ocr_confidence": 1, "text": "in connection with the" }, { "bbox": [ 0.2314815010529077, 0.6073232323232324, 0.2952756155163075, 0.6237373737373737 ], "ocr": false, "ocr_confidence": 1, "text": "Offering." }, { "bbox": [ 0.10875377608522435, 0.6245791245791246, 0.7102411410258507, 0.6414141414141414 ], "ocr": false, "ocr_confidence": 1, "text": "Acquisition LLC financing costs of $7.0 million in 1997 represent the portion of the purchase" }, { "bbox": [ 0.7448722317345534, 0.6262626262626263, 0.930786508170747, 0.6397306397306397 ], "ocr": false, "ocr_confidence": 1, "text": "of the membership interests" }, { "bbox": [ 0.08688150826920157, 0.6426767676767676, 0.8985856694416023, 0.6578282828282829 ], "ocr": false, "ocr_confidence": 1, "text": "in ARE Acquisitions, LLC (the \"Acquisition LLC\") in excess of the cost incurred by the Acquisition LLC to acquire its three Life" }, { "bbox": [ 0.0874890712640911, 0.6616161616161617, 0.20171091430332116, 0.6725589225589225 ], "ocr": false, "ocr_confidence": 1, "text": "Science Facilities ." }, { "bbox": [ 0.11057646506989292, 0.678030303030303, 0.9344318861400841, 0.6919191919191919 ], "ocr": false, "ocr_confidence": 1, "text": "Write-off of unamortized loan costs in 1997 represents the write-off of S2.1 million in loan costs associated with $72.7 million of" }, { "bbox": [ 0.0874890712640911, 0.6961279461279462, 0.19928066232376307, 0.7070707070707071 ], "ocr": false, "ocr_confidence": 1, "text": "secured notes we" }, { "bbox": [ 0.19624284734931546, 0.6936026936026937, 0.7381890387907687, 0.7104377104377104 ], "ocr": false, "ocr_confidence": 1, "text": "repaid with proceeds of the Offering and 5148,000 in loan costs associated with the" }, { "bbox": [ 0.7801108854381457, 0.6952861952861953, 0.9174201222831775, 0.7070707070707071 ], "ocr": false, "ocr_confidence": 1, "text": "of debt in November" }, { "bbox": [ 0.0874890712640911, 0.7146464646464646, 0.12637310293702048, 0.7264309764309764 ], "ocr": false, "ocr_confidence": 1, "text": "1997." }, { "bbox": [ 0.10875377608522435, 0.728114478114478, 0.551059636364796, 0.7445286195286195 ], "ocr": false, "ocr_confidence": 1, "text": "Depreciation and amortization increased by S5.4 million; Or II0% , to" }, { "bbox": [ 0.5881209790530569, 0.7297979797979798, 0.6610285384397995, 0.7415824915824917 ], "ocr": false, "ocr_confidence": 1, "text": "million for" }, { "bbox": [ 0.6962671921433917, 0.7293771043771043, 0.9289638191860785, 0.7445286195286195 ], "ocr": false, "ocr_confidence": 1, "text": "compared to $4-9 million for 1997." }, { "bbox": [ 0.0874890712640911, 0.747053872053872, 0.6999125701127288, 0.7609427609427609 ], "ocr": false, "ocr_confidence": 1, "text": "The increase resulted primarily from depreciation associated with the 1997 Acquired Properties" }, { "bbox": [ 0.7387966017856582, 0.7474747474747475, 0.845727688886214, 0.7592592592592593 ], "ocr": false, "ocr_confidence": 1, "text": "owned for a full" }, { "bbox": [ 0.8894722245182596, 0.7474747474747475, 0.9174201222831775, 0.7584175084175083 ], "ocr": false, "ocr_confidence": 1, "text": "and" }, { "bbox": [ 0.08688150826920157, 0.7634680134680134, 0.3785117458161719, 0.7790404040404041 ], "ocr": false, "ocr_confidence": 1, "text": "the addition of the 1998 Acquired Properties." }, { "bbox": [ 0.10875377608522435, 0.7807239057239058, 0.3943083836832995, 0.795875420875421 ], "ocr": false, "ocr_confidence": 1, "text": "As a result of the foregoing; net income was" }, { "bbox": [ 0.43258485236133937, 0.781986531986532, 0.5054924117480819, 0.7929292929292929 ], "ocr": false, "ocr_confidence": 1, "text": "million for" }, { "bbox": [ 0.5413386284465637, 0.7815656565656566, 0.8518033188351092, 0.7954545454545454 ], "ocr": false, "ocr_confidence": 1, "text": "compared to a net loss of S2.8 million for 1997." }, { "bbox": [ 0.08870419725387015, 0.8139730639730639, 0.4252940964226651, 0.8274410774410775 ], "ocr": false, "ocr_confidence": 1, "text": "Comparison of the Year Ended December 31, 1997 t0 the" }, { "bbox": [ 0.45567224616714114, 0.8148148148148149, 0.5783999711348244, 0.8274410774410775 ], "ocr": false, "ocr_confidence": 1, "text": "Ended December 31," }, { "bbox": [ 0.08870419725387015, 0.8316498316498316, 0.26854284374116855, 0.8451178451178452 ], "ocr": false, "ocr_confidence": 1, "text": "Rental revenue increased by" }, { "bbox": [ 0.30378149744476074, 0.8303872053872053, 0.4319772893664498, 0.8455387205387205 ], "ocr": false, "ocr_confidence": 1, "text": "million, or 989, to" }, { "bbox": [ 0.4574949351518097, 0.8308080808080808, 0.664066353414247, 0.8463804713804715 ], "ocr": false, "ocr_confidence": 1, "text": "6 million for 1997 compared to" }, { "bbox": [ 0.703557948082066, 0.8316498316498316, 0.7764655074688085, 0.8425925925925927 ], "ocr": false, "ocr_confidence": 1, "text": "million for" }, { "bbox": [ 0.7734276924943609, 0.8303872053872053, 0.9034461734007185, 0.8468013468013468 ], "ocr": false, "ocr_confidence": 1, "text": "1996. The increase" }, { "bbox": [ 0.0874890712640911, 0.8484848484848485, 0.20414116628287923, 0.8619528619528619 ], "ocr": false, "ocr_confidence": 1, "text": "resulted primarily" }, { "bbox": [ 0.2393798199864715, 0.8493265993265993, 0.26368233978205236, 0.8602693602693603 ], "ocr": false, "ocr_confidence": 1, "text": "the" }, { "bbox": [ 0.3007436824703132, 0.8472222222222222, 0.8706377716766844, 0.8627946127946129 ], "ocr": false, "ocr_confidence": 1, "text": "Acquired Properties being owned for a full period and the addition of the 1997 Acquired" }, { "bbox": [ 0.08627394527431206, 0.8644781144781144, 0.577792408139935, 0.8804713804713805 ], "ocr": false, "ocr_confidence": 1, "text": "Properties . Rental revenue from the properties we acquired before January 1," }, { "bbox": [ 0.6865461842251593, 0.8661616161616161, 0.7959075233052733, 0.8787878787878788 ], "ocr": false, "ocr_confidence": 1, "text": "Same Properties" }, { "bbox": [ 0.8056285312235055, 0.8661616161616161, 0.8906873505080386, 0.8796296296296295 ], "ocr": false, "ocr_confidence": 1, "text": "increased by" }, { "bbox": [ 0.0874890712640911, 0.882996632996633, 0.8761058386306901, 0.8964646464646465 ], "ocr": false, "ocr_confidence": 1, "text": "S180,000, or 29. This increase resulted primarily from the conversion of 19,310 square feet of storage space to higher rent" }, { "bbox": [ 0.08505881928453302, 0.8994107744107744, 0.5212890496152095, 0.9149831649831649 ], "ocr": false, "ocr_confidence": 1, "text": "laboratory space at 10933 North Torrey Pines Road in October 1996." }, { "bbox": [ 0.5006319077889658, 0.9579124579124578, 0.5200739236254304, 0.9739057239057239 ], "ocr": false, "ocr_confidence": 1, "text": "25" }, { "bbox": [ 0.5195302610810395, 0.03583188554961914, 0.5534259878938556, 0.051710201992468445 ], "ocr": false, "ocr_confidence": 1, "text": "513.4" }, { "bbox": [ 0.5231756390503766, 0.05224602696376056, 0.5613243068274194, 0.06812434340660986 ], "ocr": false, "ocr_confidence": 1, "text": "being" }, { "bbox": [ 0.667353271148644, 0.05574747688888252, 0.7136374162352386, 0.0646228934814879 ], "ocr": false, "ocr_confidence": 1, "text": "period" }, { "bbox": [ 0.8840680580147524, 0.19576454548227903, 0.9288999187355799, 0.21164286192512832 ], "ocr": false, "ocr_confidence": 1, "text": "Change" }, { "bbox": [ 0.7998828512432479, 0.25436764653688365, 0.8387145459737917, 0.264150871981635 ], "ocr": false, "ocr_confidence": 1, "text": "5,761" }, { "bbox": [ 0.88490270654923, 0.25480395511554155, 0.9298879591857708, 0.2641354388238524 ], "ocr": false, "ocr_confidence": 1, "text": "*2.5 %" }, { "bbox": [ 0.6947744531273606, 0.3385427307119678, 0.7360363998374626, 0.34832595615671913 ], "ocr": false, "ocr_confidence": 1, "text": "5,616" }, { "bbox": [ 0.8861178325390091, 0.34024166555325197, 0.9304955221806603, 0.3495731492615629 ], "ocr": false, "ocr_confidence": 1, "text": "*2.5 %" }, { "bbox": [ 0.42957821551601605, 0.41925671300751194, 0.45807132001757495, 0.4342786405278416 ], "ocr": false, "ocr_confidence": 1, "text": "S1.4" }, { "bbox": [ 0.81110998154481, 0.4196817681208423, 0.8396386755700201, 0.4342744608353867 ], "ocr": false, "ocr_confidence": 1, "text": "52.5" }, { "bbox": [ 0.42610573946988045, 0.4400268725239842, 0.46761942601260575, 0.44844114094402926 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.8585654814889289, 0.43566032272167493, 0.8978991367366779, 0.4519659399045877 ], "ocr": false, "ocr_confidence": 1, "text": "being" }, { "bbox": [ 0.08599633224806014, 0.4555460977153347, 0.1315112199223886, 0.46532932316008613 ], "ocr": false, "ocr_confidence": 1, "text": "public" }, { "bbox": [ 0.4648336835001457, 0.4705996945061946, 0.49207803345085077, 0.48605013714363704 ], "ocr": false, "ocr_confidence": 1, "text": "S14." }, { "bbox": [ 0.46147026308978445, 0.5422464344156714, 0.49544145386121197, 0.5520296598604228 ], "ocr": false, "ocr_confidence": 1, "text": "paid" }, { "bbox": [ 0.2059171110488546, 0.5741582336622015, 0.22727530430737425, 0.5874579279539601 ], "ocr": false, "ocr_confidence": 1, "text": "for" }, { "bbox": [ 0.588776534457608, 0.5745559234624236, 0.6190586993827607, 0.590006366099866 ], "ocr": false, "ocr_confidence": 1, "text": "54-2" }, { "bbox": [ 0.08814462666864231, 0.5918118157183158, 0.11903435458868453, 0.6072622583557582 ], "ocr": false, "ocr_confidence": 1, "text": "ring" }, { "bbox": [ 0.3587112697447669, 0.5948888910302966, 0.4037802888415826, 0.603764307622902 ], "ocr": false, "ocr_confidence": 1, "text": "grants" }, { "bbox": [ 0.7081771041432989, 0.6276705578000228, 0.7463287056222156, 0.6379018327723678 ], "ocr": false, "ocr_confidence": 1, "text": "price" }, { "bbox": [ 0.7347477408737575, 0.6984443809414926, 0.7835521833551569, 0.7068586493615376 ], "ocr": false, "ocr_confidence": 1, "text": "payoff" }, { "bbox": [ 0.6589645015572476, 0.7320476621771272, 0.6983312290259434, 0.7422789371494722 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.5510730197320947, 0.729446077885152, 0.5868924696959792, 0.7440387705996964 ], "ocr": false, "ocr_confidence": 1, "text": "510.3" }, { "bbox": [ 0.6993689075683379, 0.745848720566454, 0.7387327013351596, 0.7617270370093036 ], "ocr": false, "ocr_confidence": 1, "text": "being" }, { "bbox": [ 0.8435465396666052, 0.749350170491576, 0.8904382477480893, 0.7582255870841815 ], "ocr": false, "ocr_confidence": 1, "text": "period" }, { "bbox": [ 0.5037980070274434, 0.7830060148299665, 0.5436405961620918, 0.794435062611111 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.394372284133798, 0.7807813804991139, 0.43130582592106176, 0.7966596969419634 ], "ocr": false, "ocr_confidence": 1, "text": "S19.4" }, { "bbox": [ 0.5762996691239041, 0.8162363334055703, 0.6151313638544478, 0.8260195588503219 ], "ocr": false, "ocr_confidence": 1, "text": "1996" }, { "bbox": [ 0.42583229271764494, 0.8136424957606667, 0.45331136088749274, 0.8265090193908484 ], "ocr": false, "ocr_confidence": 1, "text": "Year" }, { "bbox": [ 0.26794866411357765, 0.8304561788952531, 0.30255298808768305, 0.8450488716097974 ], "ocr": false, "ocr_confidence": 1, "text": "S12.7" }, { "bbox": [ 0.43202528177611155, 0.8304481793546795, 0.45987719472170613, 0.845898621992122 ], "ocr": false, "ocr_confidence": 1, "text": "525-(" }, { "bbox": [ 0.6641143458239087, 0.8304481793546795, 0.7004721406979567, 0.845898621992122 ], "ocr": false, "ocr_confidence": 1, "text": "512.9" }, { "bbox": [ 0.2047621126450674, 0.8472911957302698, 0.23693618463961474, 0.8618838884448143 ], "ocr": false, "ocr_confidence": 1, "text": "from" }, { "bbox": [ 0.2616183028995006, 0.8507345308639959, 0.30159259336308586, 0.8609658058363409 ], "ocr": false, "ocr_confidence": 1, "text": "1996" }, { "bbox": [ 0.5750845431341249, 0.8684248855941226, 0.6157389268493372, 0.8782081110388741 ], "ocr": false, "ocr_confidence": 1, "text": "1996" }, { "bbox": [ 0.6134310565389945, 0.8667157905837543, 0.6442243428823151, 0.8773919535239899 ], "ocr": false, "ocr_confidence": 1, "text": "(the" }, { "bbox": [ 0.6447175991220881, 0.8649502960838745, 0.683415107706406, 0.881682700549122 ], "ocr": false, "ocr_confidence": 1, "text": "\"1997" } ]
[ { "bbox": [ 0.08566638227942254, 0.03451175882358744, 0.9338242860624922, 0.10185187754004893 ], "data": [], "index_in_doc": 178, "label": "text", "text": "Rental operating expenses increased by 54.6 million; or 529, to million for 1998 compared to $8.8 million for 1997. The increase resulted almost entirely from the 1997 Acquired Properties owned for a full and the addition of the 1998 Acquired Properties. Operating expenses for the Same Properties decreased by 5145,000, or 2.59, primarily due to lower premiums on our blanket property and liability insurance policies. 513.4 being period" }, { "bbox": [ 0.08688151058687048, 0.10311450380267519, 0.9277486931962994, 0.1536195543077257 ], "data": [], "index_in_doc": 179, "label": "text", "text": "The following is a comparison of property operating data computed under generally accepted accounting principles (\"GAAP Basis\") and under generally accepted accounting principles, adjusted to exclude the effect of straight line rent adjustments required by GAAP (\"Cash Basis\") for the Same Properties (in thousands, except percentage data):" }, { "bbox": [ 0.08614279534453372, 0.16976566507358742, 0.9448355124427114, 0.37296480121034564 ], "data": [ { "html_seq": "<table><tr><td></td><th colspan=\"2\">For the Year Ended December 31</th><td></td></tr><tr><td></td><th>1998</th><th>1997</th><th>Change</th></tr><tr><td>QaAP Basis:</td><td></td><td></td><td></td></tr><tr><td>Revenue</td><td>20,878</td><td>20,432</td><td>2.2 %</td></tr><tr><td>Rental operating expenses</td><td>5,616</td><td>5,761</td><td>*2.5 %</td></tr><tr><td>Net operating income</td><td>15,262</td><td>5 14,671</td><td>4.09</td></tr><tr><td>CaSH Basis (I):</td><td></td><td></td><td></td></tr><tr><td>Revenue</td><td>22,401</td><td>21,520</td><td>4.1 %</td></tr><tr><td>Rental operating expenses</td><td>5,616</td><td>5,761</td><td>*2.5 %</td></tr><tr><td>Net operating income</td><td>16,785</td><td>I5,759</td><td>6.5 %</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 180, "label": "table", "text": "" }, { "bbox": [ 0.08822323228704859, 0.3859427480986624, 0.9307864896293958, 0.3998316369875513 ], "data": [], "index_in_doc": 181, "label": "footnote", "text": "Revenue and operating expenses are computed in accordance with GAAP , except that revenue excludes the effect of straight line rent adjustments." }, { "bbox": [ 0.08599633025869524, 0.41877103092694523, 0.9152638187670439, 0.4680134551693695 ], "data": [], "index_in_doc": 182, "label": "text", "text": "General and administrative expenses increased by million, or 569, to $3.9 million for 1998 compared to million for 1997 due to owning a larger portfolio of properties in compared to 1997 and increased costs incurred as a result of company for a full year S1.4 52.5 1998 being public" }, { "bbox": [ 0.08627394295664316, 0.4705997043185764, 0.9289638006447273, 0.5378787878787878 ], "data": [], "index_in_doc": 183, "label": "text", "text": "Interest expense increased by S7.0 million, or 100%, to 0 million for 1998 compared to $7.0 million for 1997. The increase resulted from indebtedness incurred to acquire the 1997 Acquired Properties and the 1998 Acquired Properties, offset by a reduction in ongoing interest expense due to the payoff of 572.7 million in secured notes payable in June 1997 with proceeds from the OfferingS14." }, { "bbox": [ 0.08566638227942254, 0.5382996761437618, 0.9321774803349503, 0.6237373737373737 ], "data": [], "index_in_doc": 184, "label": "text", "text": "Special bonus of 5353,000 in 1997 reflects a bonus we to an officer of Alexandria in connection with the Offering: Post retirement benefit expense of $632,000 in 1997 reflects an adjustment for the non-cash accrual associated with a one-time post retirement benefit an officer of Alexandria. Stock compensation expense of million was recorded in 1997 for the non-recurnon-cash expense related to the stock and options we issued to our officers, directors and certain employees , principally in connection with the Offering. paid for 54-2 ring grants" }, { "bbox": [ 0.08688151058687048, 0.624579111735026, 0.9316728032976609, 0.672558909714824 ], "data": [], "index_in_doc": 185, "label": "text", "text": "Acquisition LLC financing costs of $7.0 million in 1997 represent the portion of the purchase of the membership interests in ARE Acquisitions, LLC (the \"Acquisition LLC\") in excess of the cost incurred by the Acquisition LLC to acquire its three Life Science Facilities . price" }, { "bbox": [ 0.08713601844360117, 0.6779683430989584, 0.9344319232227865, 0.7264309700089272 ], "data": [], "index_in_doc": 186, "label": "text", "text": "Write-off of unamortized loan costs in 1997 represents the write-off of S2.1 million in loan costs associated with $72.7 million of secured notes we repaid with proceeds of the Offering and 5148,000 in loan costs associated with the of debt in November 1997. payoff" }, { "bbox": [ 0.08688151058687048, 0.7281144845365274, 0.9289638006447273, 0.7790404040404041 ], "data": [], "index_in_doc": 187, "label": "text", "text": "Depreciation and amortization increased by S5.4 million; Or II0% , to million for compared to $4-9 million for 1997. The increase resulted primarily from depreciation associated with the 1997 Acquired Properties owned for a full and the addition of the 1998 Acquired Properties. 1998 510.3 being period" }, { "bbox": [ 0.10875377840289326, 0.7807238993018565, 0.8524986380450503, 0.7966597007982659 ], "data": [], "index_in_doc": 188, "label": "text", "text": "As a result of the foregoing; net income was million for compared to a net loss of S2.8 million for 1997. 1998 S19.4" }, { "bbox": [ 0.08807340889898083, 0.8136425018310547, 0.6151313890205016, 0.8274410710190282 ], "data": [], "index_in_doc": 189, "label": "section_header", "text": "Comparison of the Year Ended December 31, 1997 t0 the Ended December 31, 1996 Year" }, { "bbox": [ 0.0850588216022019, 0.8303379868016099, 0.9034461548593674, 0.9149831617721403 ], "data": [], "index_in_doc": 190, "label": "text", "text": "Rental revenue increased by million, or 989, to 6 million for 1997 compared to million for 1996. The increase resulted primarily the Acquired Properties being owned for a full period and the addition of the 1997 Acquired Properties . Rental revenue from the properties we acquired before January 1, Same Properties increased by S180,000, or 29. This increase resulted primarily from the conversion of 19,310 square feet of storage space to higher rent laboratory space at 10933 North Torrey Pines Road in October 1996. S12.7 525-( 512.9 from 1996 1996 (the \"1997" }, { "bbox": [ 0.5003542139726065, 0.9579124595179702, 0.5200739421667816, 0.97390572470848 ], "data": [], "index_in_doc": 191, "label": "page_footer", "text": "25" } ]
{ "filename": "NYSE_ARE_1998.pdf", "page": 26 }
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Tenant recoveries increased by million, or 1009, to million for 1997 compared to $4.2 million for 1996. The increase resulted primarily from the 1996 Acquired Properties being owned for a full period and the addition of the 1997 Acquired Properties. Tenant recoveries for the 1997 Same Properties increased by 5416,000, or I9%, due to an increase in operating expenses (particularly utilities) through to the tenants 58.4 54.2 being passed Interest and other income increased by 000, Or 489, to 5836,000 for 1997 compared to $563,000 for resulting from an increase in interest income due to the investment of excess funds from the Offering and increased amounts in improvement reserve accounts 1996, 5273, capital Rental operating expenses increased by $4.4 million, or I00%, to S8.8 million for 1997 compared to 54-4 million for The increase resulted almost entirely from the Acquired Properties being owned for a full and the addition of the 1997 Acquired Properties. Operating expenses for the 1997 Same Properties increased by 5401,000, or 17%, primarily due to increased utility expenses (due to greater usage) which were passed through to the tenants . 1996. period 1996 General and administrative expenses increased by $504,000, or 26%, to million for 1997 compared to million for due to our scope of operations and increased costs incurred as a result of company: 52.0 52.5 being public 1996 larger Interest expense increased by $716,000, or II%, to $7.0 million for 1997 compared to $6.3 million for The increase resulted indebtedness incurred to acquire the 1996 Acquired Properties and the 1997 Acquired Properties , offset by a reduction in ongoing interest expense due to the 572.7 million in secured notes payable in June 1997 with proceeds from the Offering 1996. from payoff of The amounts shown for special bonus, post-retirement benefit expense, stock compensation expense, Acquisition LLC financing costs and write-off unamortized loan costs in 1997 relate primarily to transactions associated with the Offering: We have described them in the section under Comparison of the Year Ended December 31, 1998 to the Year Ended December 31, 1997. prior Depreciation and amortization increased by S2.5 million, or 104%,to $4.9 million for 1997 compared to million for The increase resulted primarily from depreciation associated with the 1996 Acquired Properties being owned for a full period and the addition of the 1997 Acquired Properties. 1996. 52.4 As a result of the foregoing, the loss was 52.8 million for 1997 compared to net income of $2.2 million for 1996. net Liquidity And Capital REsouRces Cash Flows Net cash provided by operating activities for increased by 522.2 million to S26.1 million compared to 53.9 million for 1997. The increase resulted primarily from operating cash flows from the addition of the 1997 Acquired Properties and the Acquired Properties. 1998 1998 Net cash used in investing activities increased by million to 5(246.8) million for 1998 compared to 5(87.6) million for 1997. The increase resulted from $200.6 million used for the acquisition of the Acquired Properties, $21.2 million used additions to rental properties , $18.9 million used for additions to land under development 56.0 million used for the addition of a note receivable made in connection with the acquisition of one of the Acquired Properties. 5159.2 for 1998 and 1998 Net cash provided by financing activities increased by S136.0 million to S22o.1 million for compared to million for 1997. This increase resulted from $35.2 million in net proceeds from secured debt, SI71.0 million in borrowings under our unsecured of credit, 532.7 million in net proceeds from the issuance of our common stock and 5386,000 in net proceeds the exercise of stock options, partially offset by payments of 2 in dividends payable on our common stock. 1998 584.1 from line 519 Commitments We are committed to complete the construction of a building and certain related improvements in San California at a remaincost of approximately million under the terms of two leases. In addition, we are committed to complete the construction of building and certain related improvements in Gaithersburg; Maryland at a remaining cost of between S7.8 million and S16.8 million (depending on the level of improvements to the facility elected by the tenant) under the terms of a lease. Under the terms of the lease, the tenants rental rate will be adjusted depending on the ultimate cost of the improvements. Diego, 54-9 ing We are also committed to fund approximately SIL.1 million for investments in limited partnerships and rental properties, includthe construction of tenant improvements under the terms of various leases. Of this amount, approximately 53.2 million has been set aside in restricted cash accounts to complete the conversion of existing space into higher rent generic laboratory space (as well as certain related improvements) at 1I02/1124 Columbia Street and 3000/3018 Western Avenue. ing 26
[ { "bbox": [ 0.0704773074071845, 0.038720538720538676, 0.26732771775138947, 0.0513468013468013 ], "ocr": false, "ocr_confidence": 1, "text": "Tenant recoveries increased by" }, { "bbox": [ 0.2989209934856446, 0.03787878787878788, 0.4313697263715603, 0.04966329966329971 ], "ocr": false, "ocr_confidence": 1, "text": "million, or 1009, to" }, { "bbox": [ 0.46357056510070493, 0.03577441077441082, 0.890079787513149, 0.052188552188552235 ], "ocr": false, "ocr_confidence": 1, "text": "million for 1997 compared to $4.2 million for 1996. The increase" }, { "bbox": [ 0.04678235060649316, 0.05303030303030303, 0.8317537400037549, 0.07028619528619524 ], "ocr": false, "ocr_confidence": 1, "text": "resulted primarily from the 1996 Acquired Properties being owned for a full period and the addition of the 1997 Acquired" }, { "bbox": [ 0.04738991360138268, 0.0707070707070707, 0.8973705434518233, 0.08712121212121213 ], "ocr": false, "ocr_confidence": 1, "text": "Properties. Tenant recoveries for the 1997 Same Properties increased by 5416,000, or I9%, due to an increase in operating expenses" }, { "bbox": [ 0.04738991360138268, 0.08880471380471386, 0.18409158745152504, 0.10395622895622901 ], "ocr": false, "ocr_confidence": 1, "text": "(particularly utilities)" }, { "bbox": [ 0.26854284374116855, 0.09006734006734012, 0.4167882144942118, 0.10353535353535354 ], "ocr": false, "ocr_confidence": 1, "text": "through to the tenants" }, { "bbox": [ 0.0704773074071845, 0.10690235690235686, 0.3232235132812255, 0.12037037037037042 ], "ocr": false, "ocr_confidence": 1, "text": "Interest and other income increased by" }, { "bbox": [ 0.3554243520103701, 0.10521885521885527, 0.7612764325965705, 0.12121212121212122 ], "ocr": false, "ocr_confidence": 1, "text": "000, Or 489, to 5836,000 for 1997 compared to $563,000 for" }, { "bbox": [ 0.7989453382797208, 0.10353535353535354, 0.8985856694416023, 0.11994949494949494 ], "ocr": false, "ocr_confidence": 1, "text": "resulting from" }, { "bbox": [ 0.048605039591161726, 0.12373737373737374, 0.5480218213903485, 0.13762626262626262 ], "ocr": false, "ocr_confidence": 1, "text": "an increase in interest income due to the investment of excess funds from the" }, { "bbox": [ 0.5461991324056799, 0.12079124579124574, 0.777073070463698, 0.13804713804713808 ], "ocr": false, "ocr_confidence": 1, "text": "Offering and increased amounts in" }, { "bbox": [ 0.8208176060957436, 0.12331649831649827, 0.8821814685795852, 0.13678451178451184 ], "ocr": false, "ocr_confidence": 1, "text": "improve-" }, { "bbox": [ 0.048605039591161726, 0.14309764309764314, 0.1944201583646469, 0.15319865319865325 ], "ocr": false, "ocr_confidence": 1, "text": "ment reserve accounts" }, { "bbox": [ 0.07108487040207402, 0.1561447811447811, 0.8208176060957436, 0.17297979797979798 ], "ocr": false, "ocr_confidence": 1, "text": "Rental operating expenses increased by $4.4 million, or I00%, to S8.8 million for 1997 compared to 54-4 million for" }, { "bbox": [ 0.8603092007635625, 0.15740740740740736, 0.8894722245182596, 0.1683501683501684 ], "ocr": false, "ocr_confidence": 1, "text": "The" }, { "bbox": [ 0.048605039591161726, 0.17592592592592599, 0.3159327573425512, 0.1893939393939394 ], "ocr": false, "ocr_confidence": 1, "text": "increase resulted almost entirely from the" }, { "bbox": [ 0.35360166302570156, 0.17424242424242425, 0.632473077679992, 0.1893939393939394 ], "ocr": false, "ocr_confidence": 1, "text": "Acquired Properties being owned for a full" }, { "bbox": [ 0.6743949243273689, 0.17466329966329971, 0.8615243267533416, 0.1885521885521886 ], "ocr": false, "ocr_confidence": 1, "text": "and the addition of the 1997" }, { "bbox": [ 0.048605039591161726, 0.19107744107744112, 0.8815739055846958, 0.20791245791245785 ], "ocr": false, "ocr_confidence": 1, "text": "Acquired Properties. Operating expenses for the 1997 Same Properties increased by 5401,000, or 17%, primarily due to increased" }, { "bbox": [ 0.0479974765962722, 0.20917508417508412, 0.5656411482421445, 0.22474747474747475 ], "ocr": false, "ocr_confidence": 1, "text": "utility expenses (due to greater usage) which were passed through to the tenants ." }, { "bbox": [ 0.07169243339696355, 0.22727272727272727, 0.5346554355027789, 0.2407407407407407 ], "ocr": false, "ocr_confidence": 1, "text": "General and administrative expenses increased by $504,000, or 26%, to" }, { "bbox": [ 0.5644260222523656, 0.22601010101010102, 0.7588461806170124, 0.24116161616161616 ], "ocr": false, "ocr_confidence": 1, "text": "million for 1997 compared to" }, { "bbox": [ 0.7910470193461571, 0.22643097643097648, 0.8651697047226787, 0.23737373737373738 ], "ocr": false, "ocr_confidence": 1, "text": "million for" }, { "bbox": [ 0.08627394527431206, 0.24579124579124575, 0.1555361266917175, 0.25673400673400676 ], "ocr": false, "ocr_confidence": 1, "text": "due to our" }, { "bbox": [ 0.19502772135953642, 0.24368686868686867, 0.5972344239763997, 0.2588383838383838 ], "ocr": false, "ocr_confidence": 1, "text": "scope of operations and increased costs incurred as a result of" }, { "bbox": [ 0.6889764362047174, 0.24579124579124575, 0.7545932396527858, 0.25673400673400676 ], "ocr": false, "ocr_confidence": 1, "text": "company:" }, { "bbox": [ 0.07108487040207402, 0.26052188552188554, 0.7284680308725364, 0.2765151515151515 ], "ocr": false, "ocr_confidence": 1, "text": "Interest expense increased by $716,000, or II%, to $7.0 million for 1997 compared to $6.3 million for" }, { "bbox": [ 0.7679596255403552, 0.2596801346801346, 0.8985856694416023, 0.2731481481481482 ], "ocr": false, "ocr_confidence": 1, "text": "The increase result-" }, { "bbox": [ 0.04982016558094077, 0.2803030303030303, 0.06804705542762642, 0.2912457912457912 ], "ocr": false, "ocr_confidence": 1, "text": "ed" }, { "bbox": [ 0.10328570913121866, 0.2794612794612795, 0.26489746577183143, 0.2912457912457912 ], "ocr": false, "ocr_confidence": 1, "text": "indebtedness incurred to" }, { "bbox": [ 0.26185965079738377, 0.2773569023569023, 0.8840041575642539, 0.29377104377104374 ], "ocr": false, "ocr_confidence": 1, "text": "acquire the 1996 Acquired Properties and the 1997 Acquired Properties , offset by a reduction in" }, { "bbox": [ 0.05103529157071981, 0.2971380471380472, 0.2782638516594009, 0.3106060606060606 ], "ocr": false, "ocr_confidence": 1, "text": "ongoing interest expense due to the" }, { "bbox": [ 0.33719746216368446, 0.2933501683501684, 0.8906873505080386, 0.3106060606060606 ], "ocr": false, "ocr_confidence": 1, "text": "572.7 million in secured notes payable in June 1997 with proceeds from the Offering" }, { "bbox": [ 0.07108487040207402, 0.30934343434343436, 0.8943327284773758, 0.32744107744107737 ], "ocr": false, "ocr_confidence": 1, "text": "The amounts shown for special bonus, post-retirement benefit expense, stock compensation expense, Acquisition LLC financing" }, { "bbox": [ 0.04921260258605124, 0.3291245791245792, 0.7005201331076183, 0.3446969696969697 ], "ocr": false, "ocr_confidence": 1, "text": "costs and write-off unamortized loan costs in 1997 relate primarily to transactions associated with the" }, { "bbox": [ 0.6980898811280603, 0.32744107744107737, 0.8852192835540329, 0.34427609427609435 ], "ocr": false, "ocr_confidence": 1, "text": "Offering: We have described" }, { "bbox": [ 0.04982016558094077, 0.3484848484848485, 0.12758822892679952, 0.35942760942760943 ], "ocr": false, "ocr_confidence": 1, "text": "them in the" }, { "bbox": [ 0.16161175664061275, 0.3484848484848485, 0.25274620587404095, 0.35942760942760943 ], "ocr": false, "ocr_confidence": 1, "text": "section under" }, { "bbox": [ 0.27522603668495327, 0.3463804713804713, 0.8499806298504406, 0.3615319865319865 ], "ocr": false, "ocr_confidence": 1, "text": "Comparison of the Year Ended December 31, 1998 to the Year Ended December 31, 1997." }, { "bbox": [ 0.07229999639185306, 0.36363636363636365, 0.7418344167601058, 0.37920875420875416 ], "ocr": false, "ocr_confidence": 1, "text": "Depreciation and amortization increased by S2.5 million, or 104%,to $4.9 million for 1997 compared to" }, { "bbox": [ 0.7740352554892505, 0.36363636363636365, 0.848157940865772, 0.3754208754208754 ], "ocr": false, "ocr_confidence": 1, "text": "million for" }, { "bbox": [ 0.04921260258605124, 0.37962962962962965, 0.8827890315744747, 0.3977272727272727 ], "ocr": false, "ocr_confidence": 1, "text": "The increase resulted primarily from depreciation associated with the 1996 Acquired Properties being owned for a full period and" }, { "bbox": [ 0.04921260258605124, 0.3994107744107744, 0.33719746216368446, 0.4145622895622895 ], "ocr": false, "ocr_confidence": 1, "text": "the addition of the 1997 Acquired Properties." }, { "bbox": [ 0.07229999639185306, 0.41624579124579125, 0.27765628866451136, 0.43139730639730645 ], "ocr": false, "ocr_confidence": 1, "text": "As a result of the foregoing, the" }, { "bbox": [ 0.2995285564805341, 0.4145622895622895, 0.8226402950804121, 0.4305555555555556 ], "ocr": false, "ocr_confidence": 1, "text": "loss was 52.8 million for 1997 compared to net income of $2.2 million for 1996." }, { "bbox": [ 0.05103529157071981, 0.4524410774410774, 0.3122873793732141, 0.4638047138047138 ], "ocr": false, "ocr_confidence": 1, "text": "Liquidity And Capital REsouRces" }, { "bbox": [ 0.0534655435502779, 0.4789562289562289, 0.1239428509574624, 0.489057239057239 ], "ocr": false, "ocr_confidence": 1, "text": "Cash Flows" }, { "bbox": [ 0.05164285456560933, 0.4932659932659933, 0.3323369582045683, 0.5096801346801347 ], "ocr": false, "ocr_confidence": 1, "text": "Net cash provided by operating activities for" }, { "bbox": [ 0.3663604859183815, 0.4928451178451178, 0.8779285276153587, 0.5088383838383839 ], "ocr": false, "ocr_confidence": 1, "text": "increased by 522.2 million to S26.1 million compared to 53.9 million for 1997." }, { "bbox": [ 0.05164285456560933, 0.51010101010101, 0.801375590259279, 0.5256734006734006 ], "ocr": false, "ocr_confidence": 1, "text": "The increase resulted primarily from operating cash flows from the addition of the 1997 Acquired Properties and the" }, { "bbox": [ 0.8372218069577606, 0.5109427609427609, 0.8991932324364919, 0.5235690235690236 ], "ocr": false, "ocr_confidence": 1, "text": "Acquired" }, { "bbox": [ 0.052250417560498856, 0.5303030303030303, 0.12272772496768335, 0.5429292929292929 ], "ocr": false, "ocr_confidence": 1, "text": "Properties." }, { "bbox": [ 0.07412268537652163, 0.5471380471380471, 0.1810537724770774, 0.5580808080808081 ], "ocr": false, "ocr_confidence": 1, "text": "Net cash used in" }, { "bbox": [ 0.17923108349240885, 0.5446127946127945, 0.3870176277446252, 0.561026936026936 ], "ocr": false, "ocr_confidence": 1, "text": "investing activities increased by" }, { "bbox": [ 0.4307621633766708, 0.5446127946127945, 0.8767134016255795, 0.5606060606060606 ], "ocr": false, "ocr_confidence": 1, "text": "million to 5(246.8) million for 1998 compared to 5(87.6) million for" }, { "bbox": [ 0.05042772857583029, 0.5627104377104377, 0.5632108962625865, 0.5778619528619529 ], "ocr": false, "ocr_confidence": 1, "text": "1997. The increase resulted from $200.6 million used for the acquisition of the" }, { "bbox": [ 0.5984495499661787, 0.5622895622895623, 0.8578789487840045, 0.5761784511784511 ], "ocr": false, "ocr_confidence": 1, "text": "Acquired Properties, $21.2 million used" }, { "bbox": [ 0.04982016558094077, 0.5795454545454546, 0.6288276997106548, 0.5955387205387206 ], "ocr": false, "ocr_confidence": 1, "text": "additions to rental properties , $18.9 million used for additions to land under development" }, { "bbox": [ 0.6549529084909042, 0.5791245791245792, 0.8967629804569338, 0.5917508417508418 ], "ocr": false, "ocr_confidence": 1, "text": "56.0 million used for the addition of" }, { "bbox": [ 0.05164285456560933, 0.5963804713804713, 0.5060999747429715, 0.611952861952862 ], "ocr": false, "ocr_confidence": 1, "text": "a note receivable made in connection with the acquisition of one of the" }, { "bbox": [ 0.5419461914414532, 0.5976430976430976, 0.6780403022967061, 0.6102693602693603 ], "ocr": false, "ocr_confidence": 1, "text": "Acquired Properties." }, { "bbox": [ 0.07351512238163212, 0.6132154882154882, 0.6506999675266776, 0.6292087542087542 ], "ocr": false, "ocr_confidence": 1, "text": "Net cash provided by financing activities increased by S136.0 million to S22o.1 million for" }, { "bbox": [ 0.6859386212302698, 0.6140572390572391, 0.7703898775199134, 0.6279461279461279 ], "ocr": false, "ocr_confidence": 1, "text": "compared to" }, { "bbox": [ 0.8092739091928427, 0.6136363636363636, 0.8821814685795852, 0.6254208754208754 ], "ocr": false, "ocr_confidence": 1, "text": "million for" }, { "bbox": [ 0.05042772857583029, 0.6287878787878788, 0.8985856694416023, 0.646885521885522 ], "ocr": false, "ocr_confidence": 1, "text": "1997. This increase resulted from $35.2 million in net proceeds from secured debt, SI71.0 million in borrowings under our unsecured" }, { "bbox": [ 0.07837562634074828, 0.6477272727272727, 0.7867940783819304, 0.6637205387205387 ], "ocr": false, "ocr_confidence": 1, "text": "of credit, 532.7 million in net proceeds from the issuance of our common stock and 5386,000 in net proceeds" }, { "bbox": [ 0.8214251690906331, 0.648989898989899, 0.900408358426271, 0.6599326599326599 ], "ocr": false, "ocr_confidence": 1, "text": "the exercise" }, { "bbox": [ 0.05164285456560933, 0.6662457912457912, 0.3554243520103701, 0.6818181818181818 ], "ocr": false, "ocr_confidence": 1, "text": "of stock options, partially offset by payments of" }, { "bbox": [ 0.37911930881106143, 0.6666666666666666, 0.4751142620036059, 0.6784511784511785 ], "ocr": false, "ocr_confidence": 1, "text": "2 in dividends" }, { "bbox": [ 0.47207644702915824, 0.6645622895622896, 0.6762176133120374, 0.680976430976431 ], "ocr": false, "ocr_confidence": 1, "text": "payable on our common stock." }, { "bbox": [ 0.05468066954005694, 0.7003367003367003, 0.14216974080414804, 0.7112794612794613 ], "ocr": false, "ocr_confidence": 1, "text": "Commitments" }, { "bbox": [ 0.0534655435502779, 0.7163299663299664, 0.3839798127701776, 0.7297979797979798 ], "ocr": false, "ocr_confidence": 1, "text": "We are committed to complete the construction of a" }, { "bbox": [ 0.38215712378550903, 0.7138047138047139, 0.7090260150360717, 0.7306397306397306 ], "ocr": false, "ocr_confidence": 1, "text": "building and certain related improvements in San" }, { "bbox": [ 0.7545932396527858, 0.7154882154882154, 0.902838610405829, 0.7264309764309764 ], "ocr": false, "ocr_confidence": 1, "text": "California at a remain-" }, { "bbox": [ 0.07655293735607971, 0.7340067340067341, 0.2138621742011116, 0.7474747474747475 ], "ocr": false, "ocr_confidence": 1, "text": "cost of approximately" }, { "bbox": [ 0.24667057592514577, 0.7323232323232324, 0.8979781064467128, 0.7457912457912458 ], "ocr": false, "ocr_confidence": 1, "text": "million under the terms of two leases. In addition, we are committed to complete the construction of" }, { "bbox": [ 0.06257898847362073, 0.7487373737373737, 0.8925100394927071, 0.7659932659932659 ], "ocr": false, "ocr_confidence": 1, "text": "building and certain related improvements in Gaithersburg; Maryland at a remaining cost of between S7.8 million and S16.8 mil-" }, { "bbox": [ 0.05164285456560933, 0.7659932659932659, 0.9010159214211604, 0.7824074074074073 ], "ocr": false, "ocr_confidence": 1, "text": "lion (depending on the level of improvements to the facility elected by the tenant) under the terms of a lease. Under the terms of the" }, { "bbox": [ 0.05103529157071981, 0.7836700336700336, 0.6835083692507118, 0.7992424242424242 ], "ocr": false, "ocr_confidence": 1, "text": "lease, the tenants rental rate will be adjusted depending on the ultimate cost of the improvements." }, { "bbox": [ 0.07655293735607971, 0.803030303030303, 0.2734033477002847, 0.8139730639730639 ], "ocr": false, "ocr_confidence": 1, "text": "We are also committed to fund" }, { "bbox": [ 0.27218822171050566, 0.8009259259259259, 0.8985856694416023, 0.8173400673400674 ], "ocr": false, "ocr_confidence": 1, "text": "approximately SIL.1 million for investments in limited partnerships and rental properties, includ-" }, { "bbox": [ 0.07716050035096925, 0.8177609427609427, 0.9034461734007185, 0.8341750841750841 ], "ocr": false, "ocr_confidence": 1, "text": "the construction of tenant improvements under the terms of various leases. Of this amount, approximately 53.2 million has been" }, { "bbox": [ 0.05285798055538837, 0.8341750841750841, 0.9022310474109395, 0.851010101010101 ], "ocr": false, "ocr_confidence": 1, "text": "set aside in restricted cash accounts to complete the conversion of existing space into higher rent generic laboratory space (as well as" }, { "bbox": [ 0.05285798055538837, 0.8526936026936027, 0.6494848415368984, 0.8691077441077442 ], "ocr": false, "ocr_confidence": 1, "text": "certain related improvements) at 1I02/1124 Columbia Street and 3000/3018 Western Avenue." }, { "bbox": [ 0.46660838007515254, 0.9570707070707071, 0.48848064789117535, 0.9688552188552189 ], "ocr": false, "ocr_confidence": 1, "text": "26" }, { "bbox": [ 0.43202528177611155, 0.03583538474188484, 0.46291500969615373, 0.05128582737932728 ], "ocr": false, "ocr_confidence": 1, "text": "58.4" }, { "bbox": [ 0.26676814716616165, 0.037518886425386574, 0.29705031209131433, 0.05296932906282901 ], "ocr": false, "ocr_confidence": 1, 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0.18581487831776666 ], "ocr": false, "ocr_confidence": 1, "text": "period" }, { "bbox": [ 0.31444001832652024, 0.1781891953584324, 0.35509440204173254, 0.18797242080318377 ], "ocr": false, "ocr_confidence": 1, "text": "1996" }, { "bbox": [ 0.7576622327563576, 0.22523314398394292, 0.7891931522323642, 0.24025507150427253 ], "ocr": false, "ocr_confidence": 1, "text": "52.0" }, { "bbox": [ 0.534061255875188, 0.22607907451814863, 0.5638050758901773, 0.2406717672326931 ], "ocr": false, "ocr_confidence": 1, "text": "52.5" }, { "bbox": [ 0.5948680724473401, 0.24248171719945075, 0.6330167402243828, 0.2583600336423002 ], "ocr": false, "ocr_confidence": 1, "text": "being" }, { "bbox": [ 0.6431315985617514, 0.24510838727762432, 0.6904691752207485, 0.2548916127223757 ], "ocr": false, "ocr_confidence": 1, "text": "public" }, { "bbox": [ 0.0483274265649098, 0.24721276438200138, 0.08776668429034302, 0.25699598982675276 ], "ocr": false, "ocr_confidence": 1, "text": "1996" }, { "bbox": [ 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"ocr_confidence": 1, "text": "52.4" }, { "bbox": [ 0.27576713204976344, 0.4193332909980322, 0.301417713095282, 0.4270471803824393 ], "ocr": false, "ocr_confidence": 1, "text": "net" }, { "bbox": [ 0.32902153020386876, 0.4972127643820014, 0.3690683509241915, 0.5069959898267528 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.7980211982800285, 0.51322146353305, 0.838145946957453, 0.5225529472413608 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.38589576329915193, 0.5450849762185548, 0.42945377584258604, 0.561817380683802 ], "ocr": false, "ocr_confidence": 1, "text": "5159.2" }, { "bbox": [ 0.8572459027334275, 0.5611055360765272, 0.8797766996557147, 0.5748372248662336 ], "ocr": false, "ocr_confidence": 1, "text": "for" }, { "bbox": [ 0.560382561853383, 0.5641239621591538, 0.6006703213804927, 0.5764484284132367 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.6254733077314043, 0.5814032817148682, 0.6552694854957071, 0.590734765423179 ], "ocr": false, "ocr_confidence": 1, "text": "and" }, { "bbox": [ 0.5033921097371614, 0.5999063670756041, 0.5428313674625946, 0.6096895925203556 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.6472640701225845, 0.6154707635059552, 0.6893745186343629, 0.6277952297600381 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.7711042723360181, 0.6115805674061774, 0.8073443883869589, 0.6287392979136879 ], "ocr": false, "ocr_confidence": 1, "text": "584.1" }, { "bbox": [ 0.78559233575945, 0.6469544953935695, 0.8201966597335554, 0.661547188108114 ], "ocr": false, "ocr_confidence": 1, "text": "from" }, { "bbox": [ 0.051637380914547205, 0.6486425817614543, 0.07898866298669993, 0.6628052296863571 ], "ocr": false, "ocr_confidence": 1, "text": "line" }, { "bbox": [ 0.3542572184302527, 0.6658858897923899, 0.37846375340651023, 0.6813363324298324 ], "ocr": false, "ocr_confidence": 1, "text": "519" }, { "bbox": [ 0.7091049847461066, 0.7142798513412035, 0.7532991439529717, 0.7305854685241163 ], "ocr": false, "ocr_confidence": 1, "text": "Diego," }, { "bbox": [ 0.2151841320121059, 0.7327926886182986, 0.24595618110904097, 0.7499514191258091 ], "ocr": false, "ocr_confidence": 1, "text": "54-9" }, { "bbox": [ 0.052905972965050056, 0.7336468325533326, 0.07650494494641803, 0.7490972751907751 ], "ocr": false, "ocr_confidence": 1, "text": "ing" }, { "bbox": [ 0.052871363922687035, 0.820355168794243, 0.07653955398878104, 0.8349478615087873 ], "ocr": false, "ocr_confidence": 1, "text": "ing" } ]
[ { "bbox": [ 0.04678234944765871, 0.0357743850862137, 0.8973705619931744, 0.10474372632575757 ], "data": [], "index_in_doc": 192, "label": "text", "text": "Tenant recoveries increased by million, or 1009, to million for 1997 compared to $4.2 million for 1996. The increase resulted primarily from the 1996 Acquired Properties being owned for a full period and the addition of the 1997 Acquired Properties. Tenant recoveries for the 1997 Same Properties increased by 5416,000, or I9%, due to an increase in operating expenses (particularly utilities) through to the tenants 58.4 54.2 being passed" }, { "bbox": [ 0.047696638538324475, 0.10353535353535354, 0.8986943588421163, 0.15334628326724273 ], "data": [], "index_in_doc": 193, "label": "text", "text": "Interest and other income increased by 000, Or 489, to 5836,000 for 1997 compared to $563,000 for resulting from an increase in interest income due to the investment of excess funds from the Offering and increased amounts in improvement reserve accounts 1996, 5273, capital" }, { "bbox": [ 0.04799747775510665, 0.1561448068329782, 0.8906081233145217, 0.22474747474747475 ], "data": [], "index_in_doc": 194, "label": "text", "text": "Rental operating expenses increased by $4.4 million, or I00%, to S8.8 million for 1997 compared to 54-4 million for The increase resulted almost entirely from the Acquired Properties being owned for a full and the addition of the 1997 Acquired Properties. Operating expenses for the 1997 Same Properties increased by 5401,000, or 17%, primarily due to increased utility expenses (due to greater usage) which were passed through to the tenants . 1996. period 1996" }, { "bbox": [ 0.04832742573437935, 0.2252331358013731, 0.8652934497003365, 0.2600467566287879 ], "data": [], "index_in_doc": 195, "label": "text", "text": "General and administrative expenses increased by $504,000, or 26%, to million for 1997 compared to million for due to our scope of operations and increased costs incurred as a result of company: 52.0 52.5 being public 1996 larger" }, { "bbox": [ 0.04927740808486718, 0.25968016036833175, 0.8985856694416023, 0.3106060606060606 ], "data": [], "index_in_doc": 196, "label": "text", "text": "Interest expense increased by $716,000, or II%, to $7.0 million for 1997 compared to $6.3 million for The increase resulted indebtedness incurred to acquire the 1996 Acquired Properties and the 1997 Acquired Properties , offset by a reduction in ongoing interest expense due to the 572.7 million in secured notes payable in June 1997 with proceeds from the Offering 1996. from payoff of" }, { "bbox": [ 0.047796928706761894, 0.30934343434343436, 0.8950545989021814, 0.36153199937608504 ], "data": [], "index_in_doc": 197, "label": "text", "text": "The amounts shown for special bonus, post-retirement benefit expense, stock compensation expense, Acquisition LLC financing costs and write-off unamortized loan costs in 1997 relate primarily to transactions associated with the Offering: We have described them in the section under Comparison of the Year Ended December 31, 1998 to the Year Ended December 31, 1997. prior" }, { "bbox": [ 0.04911642859757188, 0.36328444818053585, 0.8898767782592719, 0.4145623024063881 ], "data": [], "index_in_doc": 198, "label": "text", "text": "Depreciation and amortization increased by S2.5 million, or 104%,to $4.9 million for 1997 compared to million for The increase resulted primarily from depreciation associated with the 1996 Acquired Properties being owned for a full period and the addition of the 1997 Acquired Properties. 1996. 52.4" }, { "bbox": [ 0.07145922028204288, 0.4145623024063881, 0.8226403136217634, 0.4313972935532079 ], "data": [], "index_in_doc": 199, "label": "text", "text": "As a result of the foregoing, the loss was 52.8 million for 1997 compared to net income of $2.2 million for 1996. net" }, { "bbox": [ 0.05002882994692241, 0.452441090285176, 0.3122873701025385, 0.46380472664881234 ], "data": [], "index_in_doc": 200, "label": "section_header", "text": "Liquidity And Capital REsouRces" }, { "bbox": [ 0.05135345420365991, 0.47872508655894885, 0.1239428509574624, 0.4890572519013376 ], "data": [], "index_in_doc": 201, "label": "section_header", "text": "Cash Flows" }, { "bbox": [ 0.05061220459038614, 0.49284513068921637, 0.9006966022714415, 0.5429292929292929 ], "data": [], "index_in_doc": 202, "label": "text", "text": "Net cash provided by operating activities for increased by 522.2 million to S26.1 million compared to 53.9 million for 1997. The increase resulted primarily from operating cash flows from the addition of the 1997 Acquired Properties and the Acquired Properties. 1998 1998" }, { "bbox": [ 0.04982016673977521, 0.5446128074568931, 0.8967629804569338, 0.6119528491087635 ], "data": [], "index_in_doc": 203, "label": "text", "text": "Net cash used in investing activities increased by million to 5(246.8) million for 1998 compared to 5(87.6) million for 1997. The increase resulted from $200.6 million used for the acquisition of the Acquired Properties, $21.2 million used additions to rental properties , $18.9 million used for additions to land under development 56.0 million used for the addition of a note receivable made in connection with the acquisition of one of the Acquired Properties. 5159.2 for 1998 and 1998" }, { "bbox": [ 0.05042772741699584, 0.6115805500685566, 0.9005658857457467, 0.6818181818181818 ], "data": [], "index_in_doc": 204, "label": "text", "text": "Net cash provided by financing activities increased by S136.0 million to S22o.1 million for compared to million for 1997. This increase resulted from $35.2 million in net proceeds from secured debt, SI71.0 million in borrowings under our unsecured of credit, 532.7 million in net proceeds from the issuance of our common stock and 5386,000 in net proceeds the exercise of stock options, partially offset by payments of 2 in dividends payable on our common stock. 1998 584.1 from line 519" }, { "bbox": [ 0.05359230497400298, 0.7002215915256076, 0.14216974080414804, 0.7112794548574121 ], "data": [], "index_in_doc": 205, "label": "section_header", "text": "Commitments" }, { "bbox": [ 0.05103529157071981, 0.7138047073826645, 0.9028386289471801, 0.7992424242424242 ], "data": [], "index_in_doc": 206, "label": "text", "text": "We are committed to complete the construction of a building and certain related improvements in San California at a remaincost of approximately million under the terms of two leases. In addition, we are committed to complete the construction of building and certain related improvements in Gaithersburg; Maryland at a remaining cost of between S7.8 million and S16.8 million (depending on the level of improvements to the facility elected by the tenant) under the terms of a lease. Under the terms of the lease, the tenants rental rate will be adjusted depending on the ultimate cost of the improvements. Diego, 54-9 ing" }, { "bbox": [ 0.051863648451754535, 0.8009259195038767, 0.9048909340246439, 0.8691077473187687 ], "data": [], "index_in_doc": 207, "label": "text", "text": "We are also committed to fund approximately SIL.1 million for investments in limited partnerships and rental properties, includthe construction of tenant improvements under the terms of various leases. Of this amount, approximately 53.2 million has been set aside in restricted cash accounts to complete the conversion of existing space into higher rent generic laboratory space (as well as certain related improvements) at 1I02/1124 Columbia Street and 3000/3018 Western Avenue. ing" }, { "bbox": [ 0.46660838007515254, 0.9570707070707071, 0.4887804059154178, 0.968855219657975 ], "data": [], "index_in_doc": 208, "label": "page_footer", "text": "26" } ]
{ "filename": "NYSE_ARE_1998.pdf", "page": 27 }
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Restricted Cash As of December 31, we had 59.9 million in cash and cash equivalents , including S7.5 million in restricted cash. Restricted cash consists of the following (in thousands): 1998, (1) Of this amount, S2.I million was returned to us in January 1999 upon the completion of tenant improvements at '3000/3018 Western Avenue. Secured Debt Secured debt as of December 31, 1998 consists of the following (dollars in thousands): The balance shown includes an unamortized premium of 52,262 s0 that the effective rate of the loan is 7.25%. The following is a summary of the scheduled principal payments for our secured debt as of December 31, 1998 (in thousands): 27
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Restricted" }, { "bbox": [ 0.08384369329475397, 0.07407407407407403, 0.2114319222215535, 0.08585858585858586 ], "ocr": false, "ocr_confidence": 1, "text": "cash consists of the" }, { "bbox": [ 0.2083941072471059, 0.07196969696969698, 0.3760814938366139, 0.08880471380471386 ], "ocr": false, "ocr_confidence": 1, "text": "following (in thousands):" }, { "bbox": [ 0.877320964620469, 0.10353535353535354, 0.9295713821809679, 0.11363636363636363 ], "ocr": false, "ocr_confidence": 1, "text": "Amount" }, { "bbox": [ 0.08323613029986444, 0.12289562289562295, 0.662851227424468, 0.1388888888888889 ], "ocr": false, "ocr_confidence": 1, "text": "Reserve for tenant improvements established pursuant to leases at two of our properties (}" }, { "bbox": [ 0.8870419725387015, 0.12457912457912453, 0.9289638191860785, 0.13720538720538716 ], "ocr": false, "ocr_confidence": 1, "text": "3,220" }, { "bbox": [ 0.08505881928453302, 0.14099326599326595, 0.6926218141740546, 0.15446127946127952 ], "ocr": false, "ocr_confidence": 1, "text": "Funds held in trust as additional security required under the terms of two of our secured notes" }, { "bbox": [ 0.6895839991996069, 0.1388888888888889, 0.7460873577243324, 0.15572390572390576 ], "ocr": false, "ocr_confidence": 1, "text": "payable" }, { "bbox": [ 0.08262856730497493, 0.1561447811447811, 0.5340478725078894, 0.17129629629629625 ], "ocr": false, "ocr_confidence": 1, "text": "Security deposit funds based on the terms of certain lease agreements" }, { "bbox": [ 0.904053736395608, 0.1590909090909091, 0.9295713821809679, 0.17003367003366998 ], "ocr": false, "ocr_confidence": 1, "text": "9II" }, { "bbox": [ 0.8894722245182596, 0.17592592592592599, 0.9295713821809679, 0.18771043771043766 ], "ocr": false, "ocr_confidence": 1, "text": "7,491" }, { "bbox": [ 0.08384369329475397, 0.2129629629629629, 0.10207058314143962, 0.22390572390572394 ], "ocr": false, "ocr_confidence": 1, "text": "(1)" }, { "bbox": [ 0.1069310871005558, 0.21127946127946132, 0.7448722317345534, 0.22390572390572394 ], "ocr": false, "ocr_confidence": 1, "text": "Of this amount, S2.I million was returned to us in January 1999 upon the completion of tenant improvements at" }, { "bbox": [ 0.7406192907703267, 0.20959595959595959, 0.9083066773598347, 0.2251683501683502 ], "ocr": false, "ocr_confidence": 1, "text": "'3000/3018 Western Avenue." }, { "bbox": [ 0.08505881928453302, 0.24410774410774416, 0.16768738658950794, 0.255050505050505 ], "ocr": false, "ocr_confidence": 1, "text": "Secured Debt" }, { "bbox": [ 0.08384369329475397, 0.2596801346801346, 0.42711678540733367, 0.27483164983164976 ], "ocr": false, "ocr_confidence": 1, "text": "Secured debt as of December 31, 1998 consists of the" }, { "bbox": [ 0.42347140743799655, 0.25799663299663306, 0.6385487076288872, 0.27483164983164976 ], "ocr": false, "ocr_confidence": 1, "text": "following (dollars in thousands):" }, { "bbox": [ 0.6270050107259862, 0.28956228956228963, 0.6889764362047174, 0.3005050505050505 ], "ocr": false, "ocr_confidence": 1, "text": "Balance at" }, { "bbox": [ 0.7521629876732278, 0.28956228956228963, 0.7910470193461571, 0.2996632996632997 ], "ocr": false, "ocr_confidence": 1, "text": "Stated" }, { "bbox": [ 0.6099932468690796, 0.300925925925926, 0.6865461842251593, 0.31313131313131315 ], "ocr": false, "ocr_confidence": 1, "text": "December 31," }, { "bbox": [ 0.7436571057447744, 0.3013468013468013, 0.7922621453359361, 0.3114478114478114 ], "ocr": false, "ocr_confidence": 1, "text": "Interest" }, { "bbox": [ 0.8779285276153587, 0.300084175084175, 0.9320016341605261, 0.31228956228956234 ], "ocr": false, "ocr_confidence": 1, "text": "Maturity" }, { "bbox": [ 0.08505881928453302, 0.31313131313131315, 0.14216974080414804, 0.3240740740740742 ], "ocr": false, "ocr_confidence": 1, "text": "Collateral" }, { "bbox": [ 0.6549529084909042, 0.31228956228956234, 0.6889764362047174, 0.3249158249158248 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.7637066845761286, 0.3135521885521886, 0.7916545823410466, 0.32196969696969696 ], "ocr": false, "ocr_confidence": 1, "text": "Rate" }, { "bbox": [ 0.90162348441605, 0.31228956228956234, 0.9320016341605261, 0.32239057239057245 ], "ocr": false, "ocr_confidence": 1, "text": "Date" }, { "bbox": [ 0.08445125628964349, 0.32954545454545453, 0.3043890604396503, 0.3446969696969697 ], "ocr": false, "ocr_confidence": 1, "text": "3535/3565 General Atomics Court," }, { "bbox": [ 0.08445125628964349, 0.3463804713804713, 0.18287646146174596, 0.3615319865319865 ], "ocr": false, "ocr_confidence": 1, "text": "San Diego, CA" }, { "bbox": [ 0.6446243375777824, 0.34553872053872065, 0.690799125189386, 0.3606902356902357 ], "ocr": false, "ocr_confidence": 1, "text": "17,578" }, { "bbox": [ 0.8250705470599703, 0.34595959595959597, 0.9295713821809679, 0.35858585858585856 ], "ocr": false, "ocr_confidence": 1, "text": "December 2014" }, { "bbox": [ 0.08505881928453302, 0.3644781144781145, 0.16525713460994987, 0.3771043771043771 ], "ocr": false, "ocr_confidence": 1, "text": "1431 Harbor" }, { "bbox": [ 0.1913823433901993, 0.3632154882154882, 0.25213864287915144, 0.3771043771043771 ], "ocr": false, "ocr_confidence": 1, "text": "Parkway;" }, { "bbox": [ 0.08566638227942254, 0.38047138047138046, 0.17376301653840315, 0.39309764309764306 ], "ocr": false, "ocr_confidence": 1, "text": "Alameda, CA" }, { "bbox": [ 0.7448722317345534, 0.38047138047138046, 0.7959075233052733, 0.39309764309764306 ], "ocr": false, "ocr_confidence": 1, "text": "7.165%" }, { "bbox": [ 0.8402596219322083, 0.3808922558922559, 0.9295713821809679, 0.39309764309764306 ], "ocr": false, "ocr_confidence": 1, "text": "January 2014" }, { "bbox": [ 0.08445125628964349, 0.3985690235690236, 0.26125208780249426, 0.4116161616161616 ], "ocr": false, "ocr_confidence": 1, "text": "1102/1I24 Columbia Street," }, { "bbox": [ 0.08566638227942254, 0.414983164983165, 0.16282688263039177, 0.4276094276094276 ], "ocr": false, "ocr_confidence": 1, "text": "Seattle, WA" }, { "bbox": [ 0.6385487076288872, 0.41624579124579125, 0.6889764362047174, 0.4284511784511784 ], "ocr": false, "ocr_confidence": 1, "text": "20,729" }, { "bbox": [ 0.7460873577243324, 0.414983164983165, 0.788616767366599, 0.4276094276094276 ], "ocr": false, "ocr_confidence": 1, "text": "7.75%" }, { "bbox": [ 0.8931176024875966, 0.41414141414141414, 0.9295713821809679, 0.4259259259259259 ], "ocr": false, "ocr_confidence": 1, "text": "2016" }, { "bbox": [ 0.08445125628964349, 0.43139730639730645, 0.27401091069517425, 0.4465488215488216 ], "ocr": false, "ocr_confidence": 1, "text": "10o/800/801 Capitola Drive," }, { "bbox": [ 0.08566638227942254, 0.4494949494949495, 0.17254789054862413, 0.4621212121212121 ], "ocr": false, "ocr_confidence": 1, "text": "Durham, NC" }, { "bbox": [ 0.6440167745828927, 0.4494949494949495, 0.6895839991996069, 0.46296296296296297 ], "ocr": false, "ocr_confidence": 1, "text": "12,547" }, { "bbox": [ 0.7460873577243324, 0.44865319865319864, 0.7934772713257151, 0.46127946127946123 ], "ocr": false, "ocr_confidence": 1, "text": "8.689" }, { "bbox": [ 0.8214251690906331, 0.4478114478114478, 0.9313940711656366, 0.4617003367003367 ], "ocr": false, "ocr_confidence": 1, "text": "December 2006" }, { "bbox": [ 0.08445125628964349, 0.4659090909090909, 0.3019588084600922, 0.4810606060606061 ], "ocr": false, "ocr_confidence": 1, "text": "14225 Newbrook Drive, Chantilly;" }, { "bbox": [ 0.0874890712640911, 0.48484848484848486, 0.13730923684503185, 0.49579124579124584 ], "ocr": false, "ocr_confidence": 1, "text": "VA and" }, { "bbox": [ 0.13427142187058427, 0.4831649831649832, 0.32018569830677784, 0.4995791245791246 ], "ocr": false, "ocr_confidence": 1, "text": "3000/3018 Western Avenue," }, { "bbox": [ 0.08688150826920157, 0.5012626262626263, 0.16282688263039177, 0.5134680134680135 ], "ocr": false, "ocr_confidence": 1, "text": "Seattle, WA" }, { "bbox": [ 0.6415865226033347, 0.5008417508417509, 0.6901915621944965, 0.5143097643097643 ], "ocr": false, "ocr_confidence": 1, "text": "36,326" }, { "bbox": [ 0.7454797947294429, 0.5008417508417509, 0.7916545823410466, 0.5134680134680135 ], "ocr": false, "ocr_confidence": 1, "text": "7.22%" }, { "bbox": [ 0.8906873505080386, 0.5, 0.9295713821809679, 0.5117845117845118 ], "ocr": false, "ocr_confidence": 1, "text": "2008" }, { "bbox": [ 0.0874890712640911, 0.5193602693602694, 0.22358318211934394, 0.5303030303030303 ], "ocr": false, "ocr_confidence": 1, "text": "620 Memorial Drive," }, { "bbox": [ 0.0874890712640911, 0.5361952861952862, 0.21021679623177444, 0.5496632996632996 ], "ocr": false, "ocr_confidence": 1, "text": "Cambridge, MA (1)" }, { "bbox": [ 0.6415865226033347, 0.5378787878787878, 0.6889764362047174, 0.5488215488215489 ], "ocr": false, "ocr_confidence": 1, "text": "20,149" }, { "bbox": [ 0.7448722317345534, 0.5353535353535354, 0.7959075233052733, 0.547979797979798 ], "ocr": false, "ocr_confidence": 1, "text": "9.125%" }, { "bbox": [ 0.8919024764978176, 0.537037037037037, 0.9295713821809679, 0.547979797979798 ], "ocr": false, "ocr_confidence": 1, "text": "2007" }, { "bbox": [ 0.6379411446339976, 0.5521885521885521, 0.6889764362047174, 0.5656565656565656 ], "ocr": false, "ocr_confidence": 1, "text": "1I5,829" }, { "bbox": [ 0.10814621309033484, 0.5888047138047138, 0.730290719857205, 0.6018518518518519 ], "ocr": false, "ocr_confidence": 1, "text": "The balance shown includes an unamortized premium of 52,262 s0 that the effective rate of the loan is 7.25%." }, { "bbox": [ 0.10814621309033484, 0.6237373737373737, 0.13730923684503185, 0.6346801346801347 ], "ocr": false, "ocr_confidence": 1, "text": "The" }, { "bbox": [ 0.13427142187058427, 0.6199494949494949, 0.9241033152269623, 0.6376262626262627 ], "ocr": false, "ocr_confidence": 1, "text": "following is a summary of the scheduled principal payments for our secured debt as of December 31, 1998 (in thousands):" }, { "bbox": [ 0.41071258454531656, 0.6531986531986532, 0.4386604823102345, 0.6632996632996634 ], "ocr": false, "ocr_confidence": 1, "text": "Year" }, { "bbox": [ 0.5881209790530569, 0.6523569023569024, 0.6403713966135557, 0.6624579124579124 ], "ocr": false, "ocr_confidence": 1, "text": "Amount" }, { "bbox": [ 0.40524451759131086, 0.672979797979798, 0.4441285492642402, 0.6889730639730639 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.5978419869712892, 0.6759259259259259, 0.6403713966135557, 0.6868686868686869 ], "ocr": false, "ocr_confidence": 1, "text": "3.000" }, { "bbox": [ 0.40585208058620037, 0.6936026936026937, 0.44352098626935077, 0.7045454545454546 ], "ocr": false, "ocr_confidence": 1, "text": "1999" }, { "bbox": [ 0.5978419869712892, 0.6927609427609427, 0.6391562706237767, 0.7045454545454546 ], "ocr": false, "ocr_confidence": 1, "text": "2,907" }, { "bbox": [ 0.40645964358108994, 0.7108585858585859, 0.4441285492642402, 0.7192760942760942 ], "ocr": false, "ocr_confidence": 1, "text": "2000" }, { "bbox": [ 0.6051327429099634, 0.7104377104377104, 0.6403713966135557, 0.7213804713804715 ], "ocr": false, "ocr_confidence": 1, "text": "3,145" }, { "bbox": [ 0.40767476957086896, 0.7276936026936027, 0.4429134232744612, 0.7361111111111112 ], "ocr": false, "ocr_confidence": 1, "text": "2OOI" }, { "bbox": [ 0.6027024909304054, 0.7272727272727273, 0.6415865226033347, 0.73989898989899 ], "ocr": false, "ocr_confidence": 1, "text": "3,395" }, { "bbox": [ 0.40645964358108994, 0.7453703703703705, 0.4429134232744612, 0.7537878787878788 ], "ocr": false, "ocr_confidence": 1, "text": "2002" }, { "bbox": [ 0.39005544271907283, 0.76010101010101, 0.46053275012625733, 0.771043771043771 ], "ocr": false, "ocr_confidence": 1, "text": "Thereafter" }, { "bbox": [ 0.592981483012173, 0.7617845117845118, 0.6403713966135557, 0.7727272727272727 ], "ocr": false, "ocr_confidence": 1, "text": "97,454" }, { "bbox": [ 0.39613107266796804, 0.7777777777777778, 0.45324199418758304, 0.7887205387205387 ], "ocr": false, "ocr_confidence": 1, "text": "Subtotal" }, { "bbox": [ 0.5899436680377255, 0.7756734006734007, 0.6415865226033347, 0.7920875420875422 ], "ocr": false, "ocr_confidence": 1, "text": "113,567" }, { "bbox": [ 0.3499562850563644, 0.7941919191919192, 0.5018470337787447, 0.8072390572390573 ], "ocr": false, "ocr_confidence": 1, "text": "Unamortized premium" }, { "bbox": [ 0.5972344239763997, 0.7925084175084175, 0.6415865226033347, 0.8076599326599326 ], "ocr": false, "ocr_confidence": 1, "text": "2,262" }, { "bbox": [ 0.40828233256575847, 0.8114478114478114, 0.4423058602795717, 0.8223905723905724 ], "ocr": false, "ocr_confidence": 1, "text": "Total" }, { "bbox": [ 0.5869058530632778, 0.8089225589225588, 0.6415865226033347, 0.8253367003367003 ], "ocr": false, "ocr_confidence": 1, "text": "II5,829" }, { "bbox": [ 0.5012394707838552, 0.9608585858585859, 0.5243268645896572, 0.9776936026936027 ], "ocr": false, "ocr_confidence": 1, "text": "27" }, { "bbox": [ 0.208116494220854, 0.059502326671563716, 0.2512011299156243, 0.06928555211631507 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.886604688598764, 0.14115680047336035, 0.930616229115795, 0.15303511871855885 ], "ocr": false, "ocr_confidence": 1, "text": "3,360" }, { "bbox": [ 0.7439062085047237, 0.34783501897642466, 0.7926206055708763, 0.35671043556903 ], "ocr": false, "ocr_confidence": 1, "text": "9.00%" }, { "bbox": [ 0.1670330793759252, 0.36414139864536654, 0.19082152461400298, 0.37744109293712513 ], "ocr": false, "ocr_confidence": 1, "text": "Bay" }, { "bbox": [ 0.6483486852571545, 0.3792630163243685, 0.6870747775100139, 0.3955686335072813 ], "ocr": false, "ocr_confidence": 1, "text": "8,500" }, { "bbox": [ 0.8645933198569133, 0.4133644571152561, 0.8924788613635829, 0.42838638463558565 ], "ocr": false, "ocr_confidence": 1, "text": "May" }, { "bbox": [ 0.8621452731155297, 0.4996480980871722, 0.89067396714074, 0.5142407908017167 ], "ocr": false, "ocr_confidence": 1, "text": "May" }, { "bbox": [ 0.863985756862024, 0.5337348274856265, 0.8918712983686934, 0.548756755005956 ], "ocr": false, "ocr_confidence": 1, "text": "May" }, { "bbox": [ 0.5961895770415727, 0.7425877769043369, 0.6426313695381617, 0.7544660951495353 ], "ocr": false, "ocr_confidence": 1, "text": "3,666" } ]
[ { "bbox": [ 0.0847298679028853, 0.040149727252998736, 0.17983864185196058, 0.05134682703499842 ], "data": [], "index_in_doc": 209, "label": "section_header", "text": "Restricted Cash" }, { "bbox": [ 0.083060798647935, 0.054292929292929296, 0.9077499547498324, 0.08880468811651673 ], "data": [], "index_in_doc": 210, "label": "text", "text": "As of December 31, we had 59.9 million in cash and cash equivalents , including S7.5 million in restricted cash. Restricted cash consists of the following (in thousands): 1998," }, { "bbox": [ 0.08262856498730603, 0.10344387786556976, 0.9405339931384392, 0.19156007092408459 ], "data": [ { "html_seq": "<table><tr><td></td><th>Amount</th></tr><tr><td>Reserve for tenant improvements established pursuant to leases at two of our properties (}</td><td>3,220</td></tr><tr><td>Funds held in trust as additional security required under the terms of two of our secured notes payable</td><td>3,360</td></tr><tr><td>Security deposit funds based on the terms of certain lease agreements</td><td>9II</td></tr><tr><td></td><td>7,491</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 211, "label": "table", "text": "" }, { "bbox": [ 0.08384369329475397, 0.20959595959595959, 0.9083066959011858, 0.2251683244801531 ], "data": [], "index_in_doc": 212, "label": "footnote", "text": "(1) Of this amount, S2.I million was returned to us in January 1999 upon the completion of tenant improvements at '3000/3018 Western Avenue." }, { "bbox": [ 0.0850588216022019, 0.2439404111919981, 0.16768738658950794, 0.255050505050505 ], "data": [], "index_in_doc": 213, "label": "section_header", "text": "Secured Debt" }, { "bbox": [ 0.08384369329475397, 0.25799660730843593, 0.6385487261702383, 0.2748316755198469 ], "data": [], "index_in_doc": 214, "label": "text", "text": "Secured debt as of December 31, 1998 consists of the following (dollars in thousands):" }, { "bbox": [ 0.08435083169641015, 0.2874210242069129, 0.943638260315453, 0.5729870266384549 ], "data": [ { "html_seq": "<table><tr><td>Collateral</td><th>Balance at December 31, 1998</th><th>Stated Interest Rate</th><th>Maturity Date</th></tr><tr><td>3535/3565 General Atomics Court,</td><td></td><td></td><td></td></tr><tr><td>San Diego, CA</td><td>17,578</td><td>9.00%</td><td>December 2014</td></tr><tr><td>1431 Harbor Parkway; Bay</td><td></td><td></td><td></td></tr><tr><td>Alameda, CA</td><td>8,500</td><td>7.165%</td><td>January 2014</td></tr><tr><td>1102/1I24 Columbia Street,</td><td></td><td></td><td></td></tr><tr><td>Seattle, WA</td><td>20,729</td><td>7.75%</td><td>2016 May</td></tr><tr><td>10o/800/801 Capitola Drive,</td><td></td><td></td><td></td></tr><tr><td>Durham, NC</td><td>12,547</td><td>8.689</td><td>December 2006</td></tr><tr><td>14225 Newbrook Drive, Chantilly;</td><td></td><td></td><td></td></tr><tr><td>VA and 3000/3018 Western Avenue,</td><td></td><td></td><td></td></tr><tr><td>Seattle, WA</td><td>36,326</td><td>7.22%</td><td>2008 May</td></tr><tr><td>620 Memorial Drive,</td><td></td><td></td><td></td></tr><tr><td>Cambridge, MA (1)</td><td>20,149</td><td>9.125%</td><td>2007 May</td></tr><tr><td></td><td>1I5,829</td><td></td><td></td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 215, "label": "table", "text": "" }, { "bbox": [ 0.0876104846668403, 0.5888047266488123, 0.7314128609709045, 0.6018518390077533 ], "data": [], "index_in_doc": 216, "label": "footnote", "text": "The balance shown includes an unamortized premium of 52,262 s0 that the effective rate of the loan is 7.25%." }, { "bbox": [ 0.10805636402027075, 0.6199494949494949, 0.9241033152269623, 0.6376262626262627 ], "data": [], "index_in_doc": 217, "label": "text", "text": "The following is a summary of the scheduled principal payments for our secured debt as of December 31, 1998 (in thousands):" }, { "bbox": [ 0.3476973644322225, 0.6501063337229719, 0.6467610614270884, 0.8291908803612295 ], "data": [ { "html_seq": "<table><tr><th>Year</th><th>Amount</th></tr><tr><td>1998</td><td>3.000</td></tr><tr><td>1999</td><td>2,907</td></tr><tr><td>2000</td><td>3,145</td></tr><tr><td>2OOI</td><td>3,395</td></tr><tr><td>2002</td><td>3,666</td></tr><tr><td>Thereafter</td><td>97,454</td></tr><tr><td>Subtotal</td><td>113,567</td></tr><tr><td>Unamortized premium</td><td>2,262</td></tr><tr><td>Total</td><td>II5,829</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 218, "label": "table", "text": "" }, { "bbox": [ 0.5012394707838552, 0.9608585858585859, 0.5243268460483059, 0.9776936034963588 ], "data": [], "index_in_doc": 219, "label": "page_footer", "text": "27" } ]
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Unsecured Line of Credit Alexandria has an unsecured line of credit which provides for borrowings of up to S250 million. Prior to August 1998, our of credit provided for borrowings of up to SI5o million. Borrowings under the line of credit bear interest at a floating rate based on our election of either a LIBOR based rate or the higher of the bank's reference rate and the Federal Funds rate plus 0.5%. For each LIBOR based advance, we must elect to fix the rate for a period of one, two, three or six months. line The line of credit contains financial covenants, including; among other maintenance of minimum market net worth, a total liabilities to gross asset value ratio, and a fixed coverage ratio. In addition, the terms of the line of credit restrict, among other certain investments , indebtedness, distributions and mergers. Borrowings under the line of credit are limited to an amount based on a of unencumbered assets. Accordingly; as we acquire additional unencumbered properties, borrowings available under the line of credit will increase, but may not exceed million As of December 31, borrowings under the line of credit were limited to approximately oo0,000, and carried a weighted average interest rate of 6.489. things, charge things; pool 5250 1998, 5214 , The line of credit expires 31, 2000 and provides for annual extensions (provided there is no default) for two additional oneyear periods upon notice by the company and consent of the participating banks. May In September we entered into an interest rate swap agreement with BankBoston N.A. (the 'Bank") to hedge our exposure to variable interest rates associated with our of credit. Interest is calculated at a fixed interest rate of 5.439 through 31, 2000 on a notional amount of S50 million and interest received is calculated at one month LIBOR The net difference between the interest and the interest received is reflected as an adjustment to interest expense. The fair value of the swap agreement and changes in the fair value as a result of changes in market interest rates are not recognized in the financial statements. 1998, May line paid paid Other Resources and Liquity Requirements On we sold 1,I50,000 shares of our common stock to PaineWebber Incorporated for inclusion in the PaineWebber Equity Trust REIT Series 1, a unit investment trust. The shares were issued at a of 530.5625 per share (before discounts and commissions) resulting in aggregate proceeds to us, net of offering costs of 52.4 million; of approximately 532.7 million. 1998, May 29, price We expect to continue meeting our short-term liquidity and capital requirements generally through our working and net cash provided by operating activities. We believe that the net cash provided by operating activities will continue to be sufficient to make distributions necessary to enable us to continue qualifying as a real estate investment trust. We also believe that net cash provided by operations will be sufficient to fund our recurring non-revenue enhancing capital expenditures , tenant improvements and commissions. capital leasing We expect to meet certain ~term liquidity requirements , such as property acquisitions, property development activities , scheduled debt maturities , renovations, expansions and other non-recurring capital improvements, through long-term secured and unsecured indebtedness, including borrowings under the line of credit, and the issuance of additional debt and/or equity securities. Jong Exposure to Environmental Liabilities In connection with the acquisition of all of our properties, we have obtained Phase [ environmental assessments to ascertain the existence of any environmental liabilities or other issues. The Phase [ environmental assessments of our properties have not revealed any environmental liabilities that we believe would have a material adverse effect on our financial condition or results of operations taken as a whole, nor are we aware of any materia] environmental liabilities. 28
[ { "bbox": [ 0.052250417560498856, 0.03829966329966335, 0.20171091430332116, 0.052188552188552235 ], "ocr": false, "ocr_confidence": 1, "text": "Unsecured Line of Credit" }, { "bbox": [ 0.05042772857583029, 0.054292929292929296, 0.8366142439628712, 0.06986531986531991 ], "ocr": false, "ocr_confidence": 1, "text": "Alexandria has an unsecured line of credit which provides for borrowings of up to S250 million. Prior to August 1998, our" }, { "bbox": [ 0.8639545787328996, 0.05471380471380476, 0.8821814685795852, 0.06649831649831645 ], "ocr": false, "ocr_confidence": 1, "text": "of" }, { "bbox": [ 0.04921260258605124, 0.0707070707070707, 0.8985856694416023, 0.08754208754208759 ], "ocr": false, "ocr_confidence": 1, "text": "credit provided for borrowings of up to SI5o million. Borrowings under the line of credit bear interest at a floating rate based on our" }, { "bbox": [ 0.05103529157071981, 0.08964646464646464, 0.8590940747737834, 0.10353535353535354 ], "ocr": false, "ocr_confidence": 1, "text": "election of either a LIBOR based rate or the higher of the bank's reference rate and the Federal Funds rate plus 0.5%. For each" }, { "bbox": [ 0.04982016558094077, 0.10732323232323232, 0.6658890423989156, 0.12079124579124574 ], "ocr": false, "ocr_confidence": 1, "text": "LIBOR based advance, we must elect to fix the rate for a period of one, two, three or six months." }, { "bbox": [ 0.07594537436119018, 0.12289562289562295, 0.5328327465181104, 0.1388888888888889 ], "ocr": false, "ocr_confidence": 1, "text": "The line of credit contains financial covenants, including; among other" }, { "bbox": [ 0.5796150971246036, 0.12373737373737374, 0.8846117205591434, 0.13552188552188557 ], "ocr": false, "ocr_confidence": 1, "text": "maintenance of minimum market net worth, a" }, { "bbox": [ 0.04921260258605124, 0.14099326599326595, 0.379726871805951, 0.1561447811447811 ], "ocr": false, "ocr_confidence": 1, "text": "total liabilities to gross asset value ratio, and a fixed" }, { "bbox": [ 0.424078970432886, 0.14015151515151514, 0.8949402914722653, 0.15656565656565657 ], "ocr": false, "ocr_confidence": 1, "text": "coverage ratio. In addition, the terms of the line of credit restrict, among" }, { "bbox": [ 0.05103529157071981, 0.1599326599326599, 0.0874890712640911, 0.17087542087542093 ], "ocr": false, "ocr_confidence": 1, "text": "other" }, { "bbox": [ 0.13427142187058427, 0.15740740740740736, 0.8730680236562425, 0.17340067340067344 ], "ocr": false, "ocr_confidence": 1, "text": "certain investments , indebtedness, distributions and mergers. Borrowings under the line of credit are limited to an" }, { "bbox": [ 0.05103529157071981, 0.17676767676767677, 0.17376301653840315, 0.1885521885521886 ], "ocr": false, "ocr_confidence": 1, "text": "amount based on a" }, { "bbox": [ 0.20474872927776874, 0.17466329966329971, 0.8985856694416023, 0.19065656565656566 ], "ocr": false, "ocr_confidence": 1, "text": "of unencumbered assets. Accordingly; as we acquire additional unencumbered properties, borrowings avail-" }, { "bbox": [ 0.05103529157071981, 0.19360269360269364, 0.4447361122591298, 0.20707070707070707 ], "ocr": false, "ocr_confidence": 1, "text": "able under the line of credit will increase, but may not exceed" }, { "bbox": [ 0.48058232895761155, 0.19276094276094272, 0.5322251835232209, 0.20538720538720534 ], "ocr": false, "ocr_confidence": 1, "text": "million" }, { "bbox": [ 0.535870561492558, 0.19360269360269364, 0.6634587904193575, 0.2062289562289563 ], "ocr": false, "ocr_confidence": 1, "text": "As of December 31," }, { "bbox": [ 0.7017352590973974, 0.1919191919191919, 0.8949402914722653, 0.20791245791245785 ], "ocr": false, "ocr_confidence": 1, "text": "borrowings under the line of" }, { "bbox": [ 0.05103529157071981, 0.21085858585858586, 0.28312435561851707, 0.22474747474747475 ], "ocr": false, "ocr_confidence": 1, "text": "credit were limited to approximately" }, { "bbox": [ 0.3153251943476617, 0.21001683501683507, 0.7333285348316525, 0.2251683501683502 ], "ocr": false, "ocr_confidence": 1, "text": "oo0,000, and carried a weighted average interest rate of 6.489." }, { "bbox": [ 0.07290755938674258, 0.228956228956229, 0.2345193160273553, 0.24158249158249162 ], "ocr": false, "ocr_confidence": 1, "text": "The line of credit expires" }, { "bbox": [ 0.26307477678716285, 0.2268518518518518, 0.8912949135029281, 0.24200336700336694 ], "ocr": false, "ocr_confidence": 1, "text": "31, 2000 and provides for annual extensions (provided there is no default) for two additional one-" }, { "bbox": [ 0.05103529157071981, 0.24831649831649827, 0.08141344131519589, 0.2584175084175084 ], "ocr": false, "ocr_confidence": 1, "text": "year" }, { "bbox": [ 0.07837562634074828, 0.24410774410774416, 0.5656411482421445, 0.2601010101010101 ], "ocr": false, "ocr_confidence": 1, "text": "periods upon notice by the company and consent of the participating banks." }, { "bbox": [ 0.07290755938674258, 0.2634680134680134, 0.16404200862017082, 0.27609427609427606 ], "ocr": false, "ocr_confidence": 1, "text": "In September" }, { "bbox": [ 0.20414116628287923, 0.26262626262626265, 0.6914066881842755, 0.27609427609427606 ], "ocr": false, "ocr_confidence": 1, "text": "we entered into an interest rate swap agreement with BankBoston N.A. (the" }, { "bbox": [ 0.6962671921433917, 0.26136363636363635, 0.8925100394927071, 0.2765151515151515 ], "ocr": false, "ocr_confidence": 1, "text": "'Bank\") to hedge our exposure" }, { "bbox": [ 0.05103529157071981, 0.2803030303030303, 0.33172939520967876, 0.2920875420875421 ], "ocr": false, "ocr_confidence": 1, "text": "to variable interest rates associated with our" }, { "bbox": [ 0.3596772929745968, 0.2803030303030303, 0.4751142620036059, 0.2912457912457912 ], "ocr": false, "ocr_confidence": 1, "text": "of credit. Interest" }, { "bbox": [ 0.5036697227634134, 0.2781986531986532, 0.8451201258913245, 0.2933501683501684 ], "ocr": false, "ocr_confidence": 1, "text": "is calculated at a fixed interest rate of 5.439 through" }, { "bbox": [ 0.874890712640911, 0.281986531986532, 0.8967629804569338, 0.29292929292929293 ], "ocr": false, "ocr_confidence": 1, "text": "31," }, { "bbox": [ 0.052250417560498856, 0.2962962962962962, 0.8906873505080386, 0.3097643097643098 ], "ocr": false, "ocr_confidence": 1, "text": "2000 on a notional amount of S50 million and interest received is calculated at one month LIBOR The net difference between the" }, { "bbox": [ 0.05103529157071981, 0.3148148148148149, 0.10328570913121866, 0.32575757575757575 ], "ocr": false, "ocr_confidence": 1, "text": "interest" }, { "bbox": [ 0.13366385887569474, 0.3139730639730639, 0.877320964620469, 0.32744107744107737 ], "ocr": false, "ocr_confidence": 1, "text": "and the interest received is reflected as an adjustment to interest expense. The fair value of the swap agreement and" }, { "bbox": [ 0.05042772857583029, 0.32996632996632985, 0.8050209682286161, 0.3463804713804713 ], "ocr": false, "ocr_confidence": 1, "text": "changes in the fair value as a result of changes in market interest rates are not recognized in the financial statements." }, { "bbox": [ 0.05164285456560933, 0.36237373737373735, 0.30924956439876644, 0.3779461279461279 ], "ocr": false, "ocr_confidence": 1, "text": "Other Resources and Liquity Requirements" }, { "bbox": [ 0.052250417560498856, 0.3821548821548822, 0.07533781136630067, 0.39309764309764306 ], "ocr": false, "ocr_confidence": 1, "text": "On" }, { "bbox": [ 0.16951007557417652, 0.380050505050505, 0.8827890315744747, 0.3952020202020202 ], "ocr": false, "ocr_confidence": 1, "text": "we sold 1,I50,000 shares of our common stock to PaineWebber Incorporated for inclusion in the PaineWebber" }, { "bbox": [ 0.052250417560498856, 0.39814814814814814, 0.5589579552983599, 0.4116161616161616 ], "ocr": false, "ocr_confidence": 1, "text": "Equity Trust REIT Series 1, a unit investment trust. The shares were issued at a" }, { "bbox": [ 0.5935890460070626, 0.39688552188552184, 0.8791436536051377, 0.41203703703703703 ], "ocr": false, "ocr_confidence": 1, "text": "of 530.5625 per share (before discounts and" }, { "bbox": [ 0.04982016558094077, 0.41372053872053877, 0.8220327320855226, 0.4305555555555556 ], "ocr": false, "ocr_confidence": 1, "text": "commissions) resulting in aggregate proceeds to us, net of offering costs of 52.4 million; of approximately 532.7 million." }, { "bbox": [ 0.07533781136630067, 0.43392255892255893, 0.2175075521704487, 0.4465488215488216 ], "ocr": false, "ocr_confidence": 1, "text": "We expect to continue" }, { "bbox": [ 0.21446973719600113, 0.43013468013468015, 0.7934772713257151, 0.4478114478114478 ], "ocr": false, "ocr_confidence": 1, "text": "meeting our short-term liquidity and capital requirements generally through our working" }, { "bbox": [ 0.8372218069577606, 0.4326599326599327, 0.8906873505080386, 0.44360269360269355 ], "ocr": false, "ocr_confidence": 1, "text": "and net" }, { "bbox": [ 0.05042772857583029, 0.44823232323232326, 0.8779285276153587, 0.46506734006734 ], "ocr": false, "ocr_confidence": 1, "text": "cash provided by operating activities. We believe that the net cash provided by operating activities will continue to be sufficient to" }, { "bbox": [ 0.05164285456560933, 0.4659090909090909, 0.6737873613324794, 0.4810606060606061 ], "ocr": false, "ocr_confidence": 1, "text": "make distributions necessary to enable us to continue qualifying as a real estate investment trust." }, { "bbox": [ 0.676825176306927, 0.4663299663299663, 0.8919024764978176, 0.4797979797979798 ], "ocr": false, "ocr_confidence": 1, "text": "We also believe that net cash pro-" }, { "bbox": [ 0.05164285456560933, 0.48190235690235694, 0.890079787513149, 0.4995791245791246 ], "ocr": false, "ocr_confidence": 1, "text": "vided by operations will be sufficient to fund our recurring non-revenue enhancing capital expenditures , tenant improvements and" }, { "bbox": [ 0.09964033116188153, 0.5025252525252525, 0.1919899063850888, 0.5134680134680135 ], "ocr": false, "ocr_confidence": 1, "text": "commissions." }, { "bbox": [ 0.07533781136630067, 0.5202020202020202, 0.24059494597625053, 0.5332491582491582 ], "ocr": false, "ocr_confidence": 1, "text": "We expect to meet certain" }, { "bbox": [ 0.27036553272583713, 0.5168350168350168, 0.9046612993904976, 0.5336700336700337 ], "ocr": false, "ocr_confidence": 1, "text": "~term liquidity requirements , such as property acquisitions, property development activities , sched-" }, { "bbox": [ 0.05164285456560933, 0.5349326599326599, 0.8925100394927071, 0.5509259259259259 ], "ocr": false, "ocr_confidence": 1, "text": "uled debt maturities , renovations, expansions and other non-recurring capital improvements, through long-term secured and unse-" }, { "bbox": [ 0.05164285456560933, 0.5509259259259259, 0.8657772677175682, 0.5681818181818182 ], "ocr": false, "ocr_confidence": 1, "text": "cured indebtedness, including borrowings under the line of credit, and the issuance of additional debt and/or equity securities." }, { "bbox": [ 0.05164285456560933, 0.5858585858585859, 0.2813016666338485, 0.601010101010101 ], "ocr": false, "ocr_confidence": 1, "text": "Exposure to Environmental Liabilities" }, { "bbox": [ 0.05164285456560933, 0.6018518518518519, 0.8742831496460215, 0.617003367003367 ], "ocr": false, "ocr_confidence": 1, "text": "In connection with the acquisition of all of our properties, we have obtained Phase [ environmental assessments to ascertain the" }, { "bbox": [ 0.05103529157071981, 0.6186868686868687, 0.904053736395608, 0.6346801346801347 ], "ocr": false, "ocr_confidence": 1, "text": "existence of any environmental liabilities or other issues. The Phase [ environmental assessments of our properties have not revealed" }, { "bbox": [ 0.05164285456560933, 0.6367845117845118, 0.8937251654824862, 0.651936026936027 ], "ocr": false, "ocr_confidence": 1, "text": "any environmental liabilities that we believe would have a material adverse effect on our financial condition or results of operations" }, { "bbox": [ 0.05164285456560933, 0.6536195286195285, 0.5401235024567846, 0.6687710437710437 ], "ocr": false, "ocr_confidence": 1, "text": "taken as a whole, nor are we aware of any materia] environmental liabilities." }, { "bbox": [ 0.46721594307004205, 0.9583333333333334, 0.4903033368758439, 0.9734848484848485 ], "ocr": false, "ocr_confidence": 1, "text": "28" }, { "bbox": [ 0.83539364432203, 0.05352473664360914, 0.8627449263941828, 0.06768738456851207 ], "ocr": false, "ocr_confidence": 1, "text": "line" }, { "bbox": [ 0.5316965902383664, 0.12337076043211258, 0.5783210014247895, 0.13967637761502538 ], "ocr": false, "ocr_confidence": 1, "text": "things," }, { "bbox": [ 0.37919827852109644, 0.14062665268800492, 0.4233924377279615, 0.15693226987091774 ], "ocr": false, "ocr_confidence": 1, "text": "charge" }, { "bbox": [ 0.08820346608019586, 0.15787686370247375, 0.13294946405959, 0.17503559420998424 ], "ocr": false, "ocr_confidence": 1, "text": "things;" }, { "bbox": [ 0.1728388765387108, 0.17904637935796583, 0.2068879952672402, 0.1883778630662766 ], "ocr": false, "ocr_confidence": 1, "text": "pool" }, { "bbox": [ 0.4454226449640543, 0.1923943294556817, 0.4780731072680185, 0.2086999466385945 ], "ocr": false, "ocr_confidence": 1, "text": "5250" }, { "bbox": [ 0.6613947535368058, 0.19501062514009013, 0.7037992959799491, 0.20524190011243512 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.28253017599092617, 0.21008580852488268, 0.3183496259548106, 0.22467850123942715 ], "ocr": false, "ocr_confidence": 1, "text": "5214 ," }, { "bbox": [ 0.2351402623895435, 0.22776257620165036, 0.2636689564147537, 0.24235526891619483 ], "ocr": false, "ocr_confidence": 1, "text": "May" }, { "bbox": [ 0.16137040874272954, 0.2648759450054099, 0.20134469920631481, 0.27510721997775506 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.8463664300102277, 0.2778425715933706, 0.8748595345117868, 0.2928644991137001 ], "ocr": false, "ocr_confidence": 1, "text": "May" }, { "bbox": [ 0.33107508799609603, 0.2791245636285315, 0.3585089112035109, 0.29242425792029014 ], "ocr": false, "ocr_confidence": 1, "text": "line" }, { "bbox": [ 0.47240639699779585, 0.28130367347291046, 0.5063775877692234, 0.2910868989176618 ], "ocr": false, "ocr_confidence": 1, "text": "paid" }, { "bbox": [ 0.1017929701151877, 0.315815457984695, 0.13454903489683617, 0.32559868342944637 ], "ocr": false, "ocr_confidence": 1, "text": "paid" }, { "bbox": [ 0.12856200701869538, 0.3835628136922786, 0.16853629748228066, 0.39379408866462373 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.07658411548520401, 0.3805361742869733, 0.10446965699187344, 0.39555810180730283 ], "ocr": false, "ocr_confidence": 1, "text": "May" }, { "bbox": [ 0.105061653897194, 0.382659917163885, 0.1300652251250508, 0.39595961145564357 ], "ocr": false, "ocr_confidence": 1, "text": "29," }, { "bbox": [ 0.556893918415808, 0.3995560796855446, 0.5944379568998353, 0.40978735465788974 ], "ocr": false, "ocr_confidence": 1, "text": "price" }, { "bbox": [ 0.7907304423413543, 0.4340968844084709, 0.8387535099523425, 0.44342836811678166 ], "ocr": false, "ocr_confidence": 1, "text": "capital" }, { "bbox": [ 0.05170675501610787, 0.5008992256169591, 0.099576430711383, 0.5167775420598085 ], "ocr": false, "ocr_confidence": 1, "text": "leasing" }, { "bbox": [ 0.2400353753910227, 0.5181586170651171, 0.2715326663059544, 0.5336090597025596 ], "ocr": false, "ocr_confidence": 1, "text": "Jong" } ]
[ { "bbox": [ 0.0508209129920768, 0.03829963761146622, 0.20171090966798336, 0.05218852650035511 ], "data": [], "index_in_doc": 220, "label": "section_header", "text": "Unsecured Line of Credit" }, { "bbox": [ 0.04921260258605124, 0.05352474944760101, 0.8985856694416023, 0.12079127147944287 ], "data": [], "index_in_doc": 221, "label": "text", "text": "Alexandria has an unsecured line of credit which provides for borrowings of up to S250 million. Prior to August 1998, our of credit provided for borrowings of up to SI5o million. Borrowings under the line of credit bear interest at a floating rate based on our election of either a LIBOR based rate or the higher of the bank's reference rate and the Federal Funds rate plus 0.5%. For each LIBOR based advance, we must elect to fix the rate for a period of one, two, three or six months. line" }, { "bbox": [ 0.04921260258605124, 0.12289559720742582, 0.8985856694416023, 0.2251683244801531 ], "data": [], "index_in_doc": 222, "label": "text", "text": "The line of credit contains financial covenants, including; among other maintenance of minimum market net worth, a total liabilities to gross asset value ratio, and a fixed coverage ratio. In addition, the terms of the line of credit restrict, among other certain investments , indebtedness, distributions and mergers. Borrowings under the line of credit are limited to an amount based on a of unencumbered assets. Accordingly; as we acquire additional unencumbered properties, borrowings available under the line of credit will increase, but may not exceed million As of December 31, borrowings under the line of credit were limited to approximately oo0,000, and carried a weighted average interest rate of 6.489. things, charge things; pool 5250 1998, 5214 ," }, { "bbox": [ 0.050029692119751466, 0.22685187754004893, 0.891971357617386, 0.2601010101010101 ], "data": [], "index_in_doc": 223, "label": "text", "text": "The line of credit expires 31, 2000 and provides for annual extensions (provided there is no default) for two additional oneyear periods upon notice by the company and consent of the participating banks. May" }, { "bbox": [ 0.05042772741699584, 0.26136363636363635, 0.8967629804569338, 0.34638044569227433 ], "data": [], "index_in_doc": 224, "label": "text", "text": "In September we entered into an interest rate swap agreement with BankBoston N.A. (the 'Bank\") to hedge our exposure to variable interest rates associated with our of credit. Interest is calculated at a fixed interest rate of 5.439 through 31, 2000 on a notional amount of S50 million and interest received is calculated at one month LIBOR The net difference between the interest and the interest received is reflected as an adjustment to interest expense. The fair value of the swap agreement and changes in the fair value as a result of changes in market interest rates are not recognized in the financial statements. 1998, May line paid paid" }, { "bbox": [ 0.05164285572444378, 0.36237373737373735, 0.30924957366944206, 0.3779461407902265 ], "data": [], "index_in_doc": 225, "label": "section_header", "text": "Other Resources and Liquity Requirements" }, { "bbox": [ 0.04982016673977521, 0.380050505050505, 0.882789050115826, 0.4305555555555556 ], "data": [], "index_in_doc": 226, "label": "text", "text": "On we sold 1,I50,000 shares of our common stock to PaineWebber Incorporated for inclusion in the PaineWebber Equity Trust REIT Series 1, a unit investment trust. The shares were issued at a of 530.5625 per share (before discounts and commissions) resulting in aggregate proceeds to us, net of offering costs of 52.4 million; of approximately 532.7 million. 1998, May 29, price" }, { "bbox": [ 0.05042772741699584, 0.4301346672905816, 0.8937064943418657, 0.5167775394940617 ], "data": [], "index_in_doc": 227, "label": "text", "text": "We expect to continue meeting our short-term liquidity and capital requirements generally through our working and net cash provided by operating activities. We believe that the net cash provided by operating activities will continue to be sufficient to make distributions necessary to enable us to continue qualifying as a real estate investment trust. We also believe that net cash provided by operations will be sufficient to fund our recurring non-revenue enhancing capital expenditures , tenant improvements and commissions. capital leasing" }, { "bbox": [ 0.05164285572444378, 0.5168350296791153, 0.9053469400151319, 0.5681818181818182 ], "data": [], "index_in_doc": 228, "label": "text", "text": "We expect to meet certain ~term liquidity requirements , such as property acquisitions, property development activities , scheduled debt maturities , renovations, expansions and other non-recurring capital improvements, through long-term secured and unsecured indebtedness, including borrowings under the line of credit, and the issuance of additional debt and/or equity securities. Jong" }, { "bbox": [ 0.05164285572444378, 0.5858585858585859, 0.2813016573631729, 0.601010101010101 ], "data": [], "index_in_doc": 229, "label": "section_header", "text": "Exposure to Environmental Liabilities" }, { "bbox": [ 0.05103529157071981, 0.6018518390077533, 0.9056017538041569, 0.6687710309269452 ], "data": [], "index_in_doc": 230, "label": "text", "text": "In connection with the acquisition of all of our properties, we have obtained Phase [ environmental assessments to ascertain the existence of any environmental liabilities or other issues. The Phase [ environmental assessments of our properties have not revealed any environmental liabilities that we believe would have a material adverse effect on our financial condition or results of operations taken as a whole, nor are we aware of any materia] environmental liabilities." }, { "bbox": [ 0.4672159616113932, 0.9583333333333334, 0.4903033368758439, 0.9734848484848485 ], "data": [], "index_in_doc": 231, "label": "page_footer", "text": "28" } ]
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Capital Expenditures,Tenant improvements And Leasinc COSts The following table shows total and weighted average per square foot capital expenditures, tenant improvements and leasing costs (excluding capital expenditures and tenant improvements that are recoverable from tenants or are revenue enhancing) for the years ended December 31, 1997, 1996 and 1995, attributable to leases that commenced at our properties after our acquisition. 1998, Capital expenditures fluctuate in any given period due to the nature, extent; and of improvements required and the extent to which they are recoverable our tenants. We maintain an active preventive maintenance program at each of our properties to minimize required capital improvements . timing from Tenant improvements and leasing costs also fluctuate in any given year depending upon factors such as the timing and extent of vacancies , the type of lease (renewal tenant or retenanted space) , the involvement of external leasing agents and overall competitive market conditions. inflation As of December 31, approximately 789 of our leases (on a square basis) were triple net leases, requiring tenants to pay substantially all real estate taxes and insurance, common area and other operating expenses (including increases thereto). In addition, approximately 17% of our leases (on a square footage basis) required the tenants to pay a majority of operating expenses. Approximately 83% of our leases (on a square footage basis) contain effective annual rent escalations that are either fixed (ranging from 2.5% to 4.09) or indexed based on the consumer index or other index. Accordingly, we do not believe that our earnings or cash flow are subject to any significant risk of inflation. An increase in inflation, however; could result in an increase in our variable rate borrowing cost, including borrowings under the unsecured line of credit. 1998, footage price impact Of ThE YeaR 2000 The year 2000 issue is the result of computer programs written using two digits rather than four digits to define the applicable of our computer programs that have time-sensitive software may recognize a date "00" as the year I9oo rather than the year 2000. This could result in a system failure or miscalculations causing disruptions of operations , including, among other temporary inability to process transactions, send tenant invoices, provide building services or engage in similar normal business activities. being using Any year: things, We rely on computer technologies to operate our business. In October 1998, we formed an internal task force to identify, assess and evaluate our critical systems to determine which year 2000 related problems may cause system errors or failures. We have identified three major areas as critical systems: (i) internal accounting systems , (ii) systems of significant tenants; vendors and financial institutions; and (iii) internal building systems at our properties. We have engaged consulting professionals from a nationally recognized accounting firm to review our plans and assist us with our solutions. The following discussion of our year 2000 project contains numerous forward-looking statements based on inherently uncertain 29
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improvements required and the extent to" }, { "bbox": [ 0.08262856730497493, 0.4452861952861953, 0.25517645785359905, 0.45791245791245794 ], "ocr": false, "ocr_confidence": 1, "text": "which they are recoverable" }, { "bbox": [ 0.28859242257252277, 0.4427609427609428, 0.9119520553291718, 0.45875420875420875 ], "ocr": false, "ocr_confidence": 1, "text": "our tenants. We maintain an active preventive maintenance program at each of our properties to" }, { "bbox": [ 0.08262856730497493, 0.46254208754208753, 0.34874115906658537, 0.4764309764309764 ], "ocr": false, "ocr_confidence": 1, "text": "minimize required capital improvements ." }, { "bbox": [ 0.10510839811588722, 0.47769360269360267, 0.9313940711656366, 0.4941077441077441 ], "ocr": false, "ocr_confidence": 1, "text": "Tenant improvements and leasing costs also fluctuate in any given year depending upon factors such as the timing and extent of" }, { "bbox": [ 0.08202100431008541, 0.4941077441077441, 0.9234957522320728, 0.5113636363636364 ], "ocr": false, "ocr_confidence": 1, "text": "vacancies , the type of lease (renewal tenant or retenanted space) , the involvement of external leasing agents and overall competitive" }, { "bbox": [ 0.08384369329475397, 0.5151515151515151, 0.20535629227265828, 0.5260942760942762 ], "ocr": false, "ocr_confidence": 1, "text": "market conditions." }, { "bbox": [ 0.08262856730497493, 0.5505050505050505, 0.16282688263039177, 0.5606060606060606 ], "ocr": false, "ocr_confidence": 1, "text": "inflation" }, { "bbox": [ 0.08384369329475397, 0.5660774410774411, 0.20900167024199542, 0.5791245791245792 ], "ocr": false, "ocr_confidence": 1, "text": "As of December 31," }, { "bbox": [ 0.2478857019149248, 0.5652356902356903, 0.5449840064159008, 0.5803872053872055 ], "ocr": false, "ocr_confidence": 1, "text": "approximately 789 of our leases (on a square" }, { "bbox": [ 0.5923739200172835, 0.5635521885521886, 0.9362545751247526, 0.5787037037037037 ], "ocr": false, "ocr_confidence": 1, "text": "basis) were triple net leases, requiring tenants to pay" }, { "bbox": [ 0.08202100431008541, 0.5812289562289562, 0.9180276852780671, 0.5972222222222222 ], "ocr": false, "ocr_confidence": 1, "text": "substantially all real estate taxes and insurance, common area and other operating expenses (including increases thereto). In addi-" }, { "bbox": [ 0.08141344131519589, 0.5980639730639731, 0.890079787513149, 0.61489898989899 ], "ocr": false, "ocr_confidence": 1, "text": "tion, approximately 17% of our leases (on a square footage basis) required the tenants to pay a majority of operating expenses." }, { "bbox": [ 0.08323613029986444, 0.6157407407407408, 0.9186352482729566, 0.6321548821548821 ], "ocr": false, "ocr_confidence": 1, "text": "Approximately 83% of our leases (on a square footage basis) contain effective annual rent escalations that are either fixed (ranging" }, { "bbox": [ 0.08323613029986444, 0.6342592592592592, 0.436837793325566, 0.6494107744107744 ], "ocr": false, "ocr_confidence": 1, "text": "from 2.5% to 4.09) or indexed based on the consumer" }, { "bbox": [ 0.47086132103937917, 0.6325757575757576, 0.9228881892371832, 0.6485690235690236 ], "ocr": false, "ocr_confidence": 1, "text": "index or other index. Accordingly, we do not believe that our earnings" }, { "bbox": [ 0.08384369329475397, 0.6531986531986532, 0.27947897764917995, 0.6658249158249159 ], "ocr": false, "ocr_confidence": 1, "text": "or cash flow are subject to any" }, { "bbox": [ 0.2764411626747323, 0.6502525252525253, 0.9265335672065204, 0.6666666666666666 ], "ocr": false, "ocr_confidence": 1, "text": "significant risk of inflation. An increase in inflation, however; could result in an increase in our vari-" }, { "bbox": [ 0.08384369329475397, 0.67003367003367, 0.140954614814369, 0.680976430976431 ], "ocr": false, "ocr_confidence": 1, "text": "able rate" }, { "bbox": [ 0.13913192582970044, 0.6670875420875422, 0.6093856838741901, 0.6839225589225588 ], "ocr": false, "ocr_confidence": 1, "text": "borrowing cost, including borrowings under the unsecured line of credit." }, { "bbox": [ 0.08384369329475397, 0.7053872053872053, 0.2782638516594009, 0.7154882154882154 ], "ocr": false, "ocr_confidence": 1, "text": "impact Of ThE YeaR 2000" }, { "bbox": [ 0.08323613029986444, 0.7201178451178452, 0.4453436752540193, 0.7352693602693603 ], "ocr": false, "ocr_confidence": 1, "text": "The year 2000 issue is the result of computer programs" }, { "bbox": [ 0.4842277069269487, 0.7192760942760942, 0.9253184412167413, 0.7361111111111112 ], "ocr": false, "ocr_confidence": 1, "text": "written using two digits rather than four digits to define the applica-" }, { "bbox": [ 0.08505881928453302, 0.7390572390572391, 0.10814621309033484, 0.75 ], "ocr": false, "ocr_confidence": 1, "text": "ble" }, { "bbox": [ 0.16890251257928698, 0.7382154882154882, 0.6938369401638337, 0.752104377104377 ], "ocr": false, "ocr_confidence": 1, "text": "of our computer programs that have time-sensitive software may recognize a date" }, { "bbox": [ 0.735151223816321, 0.7373737373737373, 0.9222806262422937, 0.7508417508417508 ], "ocr": false, "ocr_confidence": 1, "text": "\"00\" as the year I9oo rather" }, { "bbox": [ 0.08445125628964349, 0.752946127946128, 0.9095218033496137, 0.7693602693602694 ], "ocr": false, "ocr_confidence": 1, "text": "than the year 2000. This could result in a system failure or miscalculations causing disruptions of operations , including, among" }, { "bbox": [ 0.08505881928453302, 0.7735690235690236, 0.12272772496768335, 0.7845117845117846 ], "ocr": false, "ocr_confidence": 1, "text": "other" }, { "bbox": [ 0.17862352049751934, 0.7706228956228957, 0.9253184412167413, 0.7870370370370371 ], "ocr": false, "ocr_confidence": 1, "text": "temporary inability to process transactions, send tenant invoices, provide building services or engage in similar nor-" }, { "bbox": [ 0.08505881928453302, 0.7899831649831649, 0.2345193160273553, 0.8034511784511785 ], "ocr": false, "ocr_confidence": 1, "text": "mal business activities." }, { "bbox": [ 0.11118402806478245, 0.805976430976431, 0.9326091971554156, 0.8215488215488215 ], "ocr": false, "ocr_confidence": 1, "text": "We rely on computer technologies to operate our business. In October 1998, we formed an internal task force to identify, assess" }, { "bbox": [ 0.08445125628964349, 0.8223905723905724, 0.9350394491349736, 0.8379629629629629 ], "ocr": false, "ocr_confidence": 1, "text": "and evaluate our critical systems to determine which year 2000 related problems may cause system errors or failures. We have iden-" }, { "bbox": [ 0.08445125628964349, 0.8392255892255892, 0.9259260042116308, 0.8560606060606061 ], "ocr": false, "ocr_confidence": 1, "text": "tified three major areas as critical systems: (i) internal accounting systems , (ii) systems of significant tenants; vendors and financial" }, { "bbox": [ 0.08384369329475397, 0.8560606060606061, 0.9313940711656366, 0.8737373737373737 ], "ocr": false, "ocr_confidence": 1, "text": "institutions; and (iii) internal building systems at our properties. We have engaged consulting professionals from a nationally recog-" }, { "bbox": [ 0.08445125628964349, 0.875, 0.5632108962625865, 0.8901515151515151 ], "ocr": false, "ocr_confidence": 1, "text": "nized accounting firm to review our plans and assist us with our solutions." }, { "bbox": [ 0.10753865009544532, 0.8901515151515151, 0.9350394491349736, 0.9078282828282829 ], "ocr": false, "ocr_confidence": 1, "text": "The following discussion of our year 2000 project contains numerous forward-looking statements based on inherently uncertain" }, { "bbox": [ 0.4963789668247391, 0.9591750841750841, 0.521896612610099, 0.9768518518518517 ], "ocr": false, "ocr_confidence": 1, "text": "29" }, { "bbox": [ 0.209779512291837, 0.08602212033868026, 0.2531834898139784, 0.09790043858387862 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.5974835267363489, 0.13950168564309118, 0.6340466639047112, 0.1483771022356967 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.5015304567739419, 0.3957972211088075, 0.5398325164666979, 0.4051287048171184 ], "ocr": false, "ocr_confidence": 1, "text": "0.98" }, { "bbox": [ 0.5948680724473401, 0.4259834007011342, 0.6415226221528362, 0.44186171714398365 ], "ocr": false, "ocr_confidence": 1, "text": "timing" }, { "bbox": [ 0.25458227822600815, 0.4440925425316167, 0.28797147621033453, 0.4586852352461611 ], "ocr": false, "ocr_confidence": 1, "text": "from" }, { "bbox": [ 0.20795682330716844, 0.5666618509784108, 0.25075323783442033, 0.5785401692236094 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.5450479068663994, 0.5644514141691477, 0.5929175825616746, 0.5803297306119971 ], "ocr": false, "ocr_confidence": 1, "text": "footage" }, { "bbox": [ 0.4334415181161781, 0.6365555576969633, 0.47243490726409854, 0.6454309742895687 ], "ocr": false, "ocr_confidence": 1, "text": "price" }, { "bbox": [ 0.445436936798325, 0.7189065250401037, 0.48352688238775343, 0.7356389295053508 ], "ocr": false, "ocr_confidence": 1, "text": "being" }, { "bbox": [ 0.6951453276979184, 0.7357415418751204, 0.7332352732873467, 0.7524739463403678 ], "ocr": false, "ocr_confidence": 1, "text": "using" }, { "bbox": [ 0.14157556117655717, 0.7378635863026605, 0.16888912921198834, 0.7524562790172049 ], "ocr": false, "ocr_confidence": 1, "text": "Any" }, { "bbox": [ 0.10596506387072599, 0.7409326620740676, 0.14009794905953024, 0.749808078666673 ], "ocr": false, "ocr_confidence": 1, "text": "year:" }, { "bbox": [ 0.12221342351709953, 0.7715159526495312, 0.16455631007075464, 0.7882483571147786 ], "ocr": false, "ocr_confidence": 1, "text": "things," } ]
[ { "bbox": [ 0.07959075464819622, 0.036616161616161616, 0.594196609001952, 0.04713802144985006 ], "data": [], "index_in_doc": 232, "label": "section_header", "text": "Capital Expenditures,Tenant improvements And Leasinc COSts" }, { "bbox": [ 0.0789831870179689, 0.0488215745097459, 0.9223176162378627, 0.10143095074277936 ], "data": [], "index_in_doc": 233, "label": "text", "text": "The following table shows total and weighted average per square foot capital expenditures, tenant improvements and leasing costs (excluding capital expenditures and tenant improvements that are recoverable from tenants or are revenue enhancing) for the years ended December 31, 1997, 1996 and 1995, attributable to leases that commenced at our properties after our acquisition. 1998," }, { "bbox": [ 0.08010565260531385, 0.11393876509232954, 0.9313062964092337, 0.4097130130035709 ], "data": [ { "html_seq": "<table><tr><td></td><th>Total / Weighted Average</th><th>1998</th><th>1997</th><th>1996</th><th>1995</th></tr><tr><td>CAPITAL EXPEndituRes:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Weighted average square feet in portfolio</td><td>5,12,759</td><td>2 , 891,863</td><td>1,342,216</td><td>563,901</td><td>314,779</td></tr><tr><td>Property related capital expenditures</td><td>$ 1,086,000</td><td>$ 341,000</td><td>5 547,000</td><td>5 181,000</td><td>5 I7,000</td></tr><tr><td>Per weighted average square foot in portfolio</td><td>5 0.2I</td><td>5 0.I2</td><td>5 0.41</td><td>5 0.32</td><td>5 0.05</td></tr><tr><td>Tenant improvements And LeaSIng Costs:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Retenanted space:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Retenanted square feet</td><td>359,470</td><td>88,181</td><td>40,953</td><td>180,398</td><td>49,938</td></tr><tr><td>Tenant improvements and leasing costs</td><td>$ 2,438,000</td><td>5 478,000</td><td>5 164,000</td><td>$ I,220,000</td><td>5 576,000</td></tr><tr><td>Per square foot leased</td><td>5 6.78</td><td>$ 5.42</td><td>5 4.00</td><td>5 6.76</td><td>5 IL53</td></tr><tr><td>Renewal space:</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Renewal square feet</td><td>II9,417</td><td>77,038</td><td>1,232</td><td>25,063</td><td>16,084</td></tr><tr><td>Tenant improvements and leasing costs</td><td>5 II7,000</td><td>5 69,000</td><td>5</td><td>5</td><td>5 48,000</td></tr><tr><td>Per square foot leased</td><td>$ 0.98</td><td>5 0.90</td><td>$</td><td>5</td><td>5 2.98</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 234, "label": "table", "text": "" }, { "bbox": [ 0.08141344363286478, 0.4255050505050505, 0.9266350996454856, 0.476430989275075 ], "data": [], "index_in_doc": 235, "label": "text", "text": "Capital expenditures fluctuate in any given period due to the nature, extent; and of improvements required and the extent to which they are recoverable our tenants. We maintain an active preventive maintenance program at each of our properties to minimize required capital improvements . timing from" }, { "bbox": [ 0.08202100431008541, 0.47769361553770123, 0.9313940711656366, 0.5260942632501776 ], "data": [], "index_in_doc": 236, "label": "text", "text": "Tenant improvements and leasing costs also fluctuate in any given year depending upon factors such as the timing and extent of vacancies , the type of lease (renewal tenant or retenanted space) , the involvement of external leasing agents and overall competitive market conditions." }, { "bbox": [ 0.08262856498730603, 0.5505050505050505, 0.16282688726572955, 0.5606060606060606 ], "data": [], "index_in_doc": 237, "label": "section_header", "text": "inflation" }, { "bbox": [ 0.08141344363286478, 0.5635522013962871, 0.936606712466029, 0.6839225653446082 ], "data": [], "index_in_doc": 238, "label": "text", "text": "As of December 31, approximately 789 of our leases (on a square basis) were triple net leases, requiring tenants to pay substantially all real estate taxes and insurance, common area and other operating expenses (including increases thereto). In addition, approximately 17% of our leases (on a square footage basis) required the tenants to pay a majority of operating expenses. Approximately 83% of our leases (on a square footage basis) contain effective annual rent escalations that are either fixed (ranging from 2.5% to 4.09) or indexed based on the consumer index or other index. Accordingly, we do not believe that our earnings or cash flow are subject to any significant risk of inflation. An increase in inflation, however; could result in an increase in our variable rate borrowing cost, including borrowings under the unsecured line of credit. 1998, footage price" }, { "bbox": [ 0.08384369329475397, 0.7053872118092547, 0.27826386093007643, 0.7154882219102647 ], "data": [], "index_in_doc": 239, "label": "section_header", "text": "impact Of ThE YeaR 2000" }, { "bbox": [ 0.08323613261753335, 0.7189065181847775, 0.9270790908404205, 0.8034511720291292 ], "data": [], "index_in_doc": 240, "label": "text", "text": "The year 2000 issue is the result of computer programs written using two digits rather than four digits to define the applicable of our computer programs that have time-sensitive software may recognize a date \"00\" as the year I9oo rather than the year 2000. This could result in a system failure or miscalculations causing disruptions of operations , including, among other temporary inability to process transactions, send tenant invoices, provide building services or engage in similar normal business activities. being using Any year: things," }, { "bbox": [ 0.08384369329475397, 0.8059764245543817, 0.9350394491349736, 0.8901515151515151 ], "data": [], "index_in_doc": 241, "label": "text", "text": "We rely on computer technologies to operate our business. In October 1998, we formed an internal task force to identify, assess and evaluate our critical systems to determine which year 2000 related problems may cause system errors or failures. We have identified three major areas as critical systems: (i) internal accounting systems , (ii) systems of significant tenants; vendors and financial institutions; and (iii) internal building systems at our properties. We have engaged consulting professionals from a nationally recognized accounting firm to review our plans and assist us with our solutions." }, { "bbox": [ 0.10753865009544532, 0.8901515151515151, 0.9350394491349736, 0.9078282828282829 ], "data": [], "index_in_doc": 242, "label": "text", "text": "The following discussion of our year 2000 project contains numerous forward-looking statements based on inherently uncertain" }, { "bbox": [ 0.49637898536609026, 0.9591750857805965, 0.5218966311514501, 0.9768518510490957 ], "data": [], "index_in_doc": 243, "label": "page_footer", "text": "29" } ]
{ "filename": "NYSE_ARE_1998.pdf", "page": 30 }
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information. The cost of our evaluation and the date on which we plan to complete our internal evaluation and related remediation projects are based on our best estimates. We derived these estimates number of assumptions of future events, including the continued availability of internal and external resources , third-party modifications and other factors. However; there can be no antee that these estimates will be achieved, and actual results may be materially different from those anticipated. Moreover; although we believe that we will be operating in a year 2000 compliant manner to December 31, 1999, there can be no assurance that any failure to modify a critical system would not have a material adverse effect on our operations. using guarprior Readiness Our year 2000 project is designed to ensure that all critical systems have been evaluated and will be suitable for continued use into and beyond the year 2000. We expect to have completed our identification and initial evaluation of critical systems in the first quarter of 1999, and we expect we will have implemented substantially all of the necessary remedial actions by mid-1999. We have completed our review of our internal accounting systems . Our most significant accounting systems, our general ledger system and our accounts payable system, are currently year 2000 compliant. The systems have been tested and we do not anticipate year 2000 problems. Our system is currently not year 2000 compliant . We have been notified by the vendor that will be distributing the year 2000 compliant upgrade to the software at no additional cost by June 1999. Once we receive this upgrade; the software will be tested for compatibility and year 2000 compliance: billing they We place a high degree of reliance on computer systems of third parties, such as tenants, vendors and financial institutions. Although we are assessing the readiness of these third parties, there can be no guarantee that the failure of these third parties to modify their systems in advance of December 31, 1999 would not have a material adverse effect on our operations. We have surveyed our most significant third-party vendors and financial institutions, and all surveyed indicated that they have implemented year 2000 programs. We are currently in the process of surveying all major vendors and suppliers for their year 2000 readiness_ In addition, we are in the process of surveying our significant tenants for their year 2000 readiness and expect to complete such tenant assessments in the first quarter of 1999. We are continually participating in such surveys with new tenants, vendors and other third-party suppliers. If future risk assessments of third-party suppliers or tenants indicate significant exposure from a supplier's year 2000 problem, such or tenant will be asked to demonstrate how such problems will be addressed. We believe that we have viable alternatives for each of our major vendors. supplier The final critical system the task force is evaluating consists of internal systems in our properties that may have embedded microprocessors with potential year 2000 problems, mainly building systems, including heating. ventilation and air conditioning systems, elevators and security systems. We are in the process of identifying the areas and systems that use embedded microprocessors and will determine whether any modification or replacement is necessary: We anticipate the services of outside experts to assist us with this phase of our year 2000 project. The evaluation of these areas is in process and is expected to be completed in the first quarter of 1999. and any required modifications are expected to be made by mid-1999. using Cost We do not expect our year 2000 project costs , including the costs of any remedial activities and outside experts, to be material. The aggregate cost of purchasing conversion packages for the accounting systems and the cost to survey tenants, vendors and financial institutions are not expected to be material . In addition, any costs incurred to OI upgrade building systems will constitute property maintenance costs, and are therefore generally recoverable the tenants pursuant to the terms of their existing leases. replace from Risks We believe that the principal risks associated with the year 2000 issue include the risk of disruption of our operations due to operational failures of third parties , including tenants, vendors and financial institutions, and the risk of business interruption due to building system failures. We do not believe that the risk of disruptions due to operational failures of vendors or financial institutions is significant, because our major vendors and financial institutions are currently year 2000 compliant, and we believe we have viable alternatives for such of our major tenants do not become year 2000 compliant on schedule, such tenant's operations and financial condition could be adversely affected, which may impact the tenants ability to meet its rent obligations. Similarly; if our building systems failed due to year 2000 problems, services to our properties and tenants, such as mechanical and security services, could be interrupted , resulting in potential rent disputes with the tenants. We believe; however; that our early involvement in identifying; assessing and evaluating our critical systems should minimize the risk of year 2000 problems to our operations. suppliers. Ifany 30
[ { "bbox": [ 0.05832604750939407, 0.03535353535353535, 0.8979781064467128, 0.04882154882154877 ], "ocr": false, "ocr_confidence": 1, "text": "information. The cost of our evaluation and the date on which we plan to complete our internal evaluation and related remediation" }, { "bbox": [ 0.0565033585247255, 0.05092592592592597, 0.49759409281451816, 0.06607744107744112 ], "ocr": false, "ocr_confidence": 1, "text": "projects are based on our best estimates. We derived these estimates" }, { "bbox": [ 0.5461991324056799, 0.050505050505050504, 0.9046612993904976, 0.0673400673400674 ], "ocr": false, "ocr_confidence": 1, "text": "number of assumptions of future events, including the" }, { "bbox": [ 0.05771848451450455, 0.0673400673400674, 0.4186109034788803, 0.08291245791245787 ], "ocr": false, "ocr_confidence": 1, "text": "continued availability of internal and external resources ," }, { "bbox": [ 0.41618065149932226, 0.0673400673400674, 0.8657772677175682, 0.0854377104377104 ], "ocr": false, "ocr_confidence": 1, "text": "third-party modifications and other factors. However; there can be no" }, { "bbox": [ 0.05771848451450455, 0.0854377104377104, 0.9083066773598347, 0.10143097643097648 ], "ocr": false, "ocr_confidence": 1, "text": "antee that these estimates will be achieved, and actual results may be materially different from those anticipated. Moreover; although" }, { "bbox": [ 0.05832604750939407, 0.10437710437710433, 0.3851949387599567, 0.11784511784511789 ], "ocr": false, "ocr_confidence": 1, "text": "we believe that we will be operating in a year 2000" }, { "bbox": [ 0.3833722497752881, 0.10227272727272728, 0.5085302267225296, 0.11952861952861948 ], "ocr": false, "ocr_confidence": 1, "text": "compliant manner" }, { "bbox": [ 0.5443764434210113, 0.10521885521885527, 0.8931176024875966, 0.11868686868686869 ], "ocr": false, "ocr_confidence": 1, "text": "to December 31, 1999, there can be no assurance that" }, { "bbox": [ 0.05771848451450455, 0.11994949494949494, 0.6822932432609327, 0.1351010101010101 ], "ocr": false, "ocr_confidence": 1, "text": "any failure to modify a critical system would not have a material adverse effect on our operations." }, { "bbox": [ 0.05954117349917311, 0.15404040404040403, 0.12029747298812526, 0.16498316498316493 ], "ocr": false, "ocr_confidence": 1, "text": "Readiness" }, { "bbox": [ 0.05771848451450455, 0.17003367003366998, 0.9010159214211604, 0.18602693602693607 ], "ocr": false, "ocr_confidence": 1, "text": "Our year 2000 project is designed to ensure that all critical systems have been evaluated and will be suitable for continued use into" }, { "bbox": [ 0.05832604750939407, 0.1885521885521886, 0.3499562850563644, 0.20244107744107748 ], "ocr": false, "ocr_confidence": 1, "text": "and beyond the year 2000. We expect to have" }, { "bbox": [ 0.3475260330768063, 0.18728956228956234, 0.9022310474109395, 0.20370370370370375 ], "ocr": false, "ocr_confidence": 1, "text": "completed our identification and initial evaluation of critical systems in the first quar-" }, { "bbox": [ 0.05771848451450455, 0.20454545454545456, 0.8129192871621799, 0.22138047138047143 ], "ocr": false, "ocr_confidence": 1, "text": "ter of 1999, and we expect we will have implemented substantially all of the necessary remedial actions by mid-1999." }, { "bbox": [ 0.08080587832030638, 0.22095959595959597, 0.9010159214211604, 0.23779461279461284 ], "ocr": false, "ocr_confidence": 1, "text": "We have completed our review of our internal accounting systems . Our most significant accounting systems, our general ledger" }, { "bbox": [ 0.05771848451450455, 0.23947811447811443, 0.47754451398316394, 0.2533670033670033 ], "ocr": false, "ocr_confidence": 1, "text": "system and our accounts payable system, are currently year 2000" }, { "bbox": [ 0.47572182499849536, 0.2390572390572391, 0.9064839883751661, 0.25589225589225584 ], "ocr": false, "ocr_confidence": 1, "text": "compliant. The systems have been tested and we do not anticipate" }, { "bbox": [ 0.05711092151961502, 0.2592592592592593, 0.12637310293702048, 0.2702020202020202 ], "ocr": false, "ocr_confidence": 1, "text": "year 2000" }, { "bbox": [ 0.12515797694724146, 0.2554713804713805, 0.2254058711040125, 0.27062289562289565 ], "ocr": false, "ocr_confidence": 1, "text": "problems. Our" }, { "bbox": [ 0.26854284374116855, 0.25757575757575757, 0.48848064789117535, 0.271043771043771 ], "ocr": false, "ocr_confidence": 1, "text": "system is currently not year 2000" }, { "bbox": [ 0.48665795890650676, 0.2563131313131313, 0.8293234880241969, 0.2727272727272727 ], "ocr": false, "ocr_confidence": 1, "text": "compliant . We have been notified by the vendor that" }, { "bbox": [ 0.8578789487840045, 0.2584175084175084, 0.9052688623853872, 0.2693602693602694 ], "ocr": false, "ocr_confidence": 1, "text": "will be" }, { "bbox": [ 0.0565033585247255, 0.27188552188552195, 0.8998007954313815, 0.28998316498316495 ], "ocr": false, "ocr_confidence": 1, "text": "distributing the year 2000 compliant upgrade to the software at no additional cost by June 1999. Once we receive this upgrade; the" }, { "bbox": [ 0.05771848451450455, 0.2908249158249159, 0.40767476957086896, 0.30639730639730633 ], "ocr": false, "ocr_confidence": 1, "text": "software will be tested for compatibility and year 2000" }, { "bbox": [ 0.40645964358108994, 0.28956228956228963, 0.4903033368758439, 0.3072390572390573 ], "ocr": false, "ocr_confidence": 1, "text": "compliance:" }, { "bbox": [ 0.08080587832030638, 0.30808080808080807, 0.8754982756358005, 0.3236531986531986 ], "ocr": false, "ocr_confidence": 1, "text": "We place a high degree of reliance on computer systems of third parties, such as tenants, vendors and financial institutions." }, { "bbox": [ 0.05832604750939407, 0.3265993265993267, 0.1664722605997289, 0.3392255892255893 ], "ocr": false, "ocr_confidence": 1, "text": "Although we are" }, { "bbox": [ 0.16404200862017082, 0.3244949494949495, 0.8827890315744747, 0.34048821548821556 ], "ocr": false, "ocr_confidence": 1, "text": "assessing the readiness of these third parties, there can be no guarantee that the failure of these third parties to" }, { "bbox": [ 0.05771848451450455, 0.3430134680134681, 0.9125596183240614, 0.35942760942760943 ], "ocr": false, "ocr_confidence": 1, "text": "modify their systems in advance of December 31, 1999 would not have a material adverse effect on our operations. We have surveyed" }, { "bbox": [ 0.05832604750939407, 0.36195286195286197, 0.12029747298812526, 0.3720538720538721 ], "ocr": false, "ocr_confidence": 1, "text": "our most" }, { "bbox": [ 0.11725965801367765, 0.35858585858585856, 0.9058764253802766, 0.37626262626262624 ], "ocr": false, "ocr_confidence": 1, "text": "significant third-party vendors and financial institutions, and all surveyed indicated that they have implemented year 2000" }, { "bbox": [ 0.05711092151961502, 0.3779461279461279, 0.3463109070870273, 0.39141414141414144 ], "ocr": false, "ocr_confidence": 1, "text": "programs. We are currently in the process of" }, { "bbox": [ 0.34266552911769016, 0.37626262626262624, 0.8098814721877322, 0.3926767676767677 ], "ocr": false, "ocr_confidence": 1, "text": "surveying all major vendors and suppliers for their year 2000 readiness_" }, { "bbox": [ 0.8129192871621799, 0.3787878787878788, 0.8894722245182596, 0.38973063973063976 ], "ocr": false, "ocr_confidence": 1, "text": "In addition," }, { "bbox": [ 0.05771848451450455, 0.3939393939393939, 0.8949402914722653, 0.41077441077441074 ], "ocr": false, "ocr_confidence": 1, "text": "we are in the process of surveying our significant tenants for their year 2000 readiness and expect to complete such tenant assess-" }, { "bbox": [ 0.05771848451450455, 0.41203703703703703, 0.830538614013976, 0.4271885521885522 ], "ocr": false, "ocr_confidence": 1, "text": "ments in the first quarter of 1999. We are continually participating in such surveys with new tenants, vendors and other" }, { "bbox": [ 0.8281083620344178, 0.41077441077441074, 0.90162348441605, 0.4288720538720539 ], "ocr": false, "ocr_confidence": 1, "text": "third-party" }, { "bbox": [ 0.0565033585247255, 0.4276094276094276, 0.8827890315744747, 0.4457070707070707 ], "ocr": false, "ocr_confidence": 1, "text": "suppliers. If future risk assessments of third-party suppliers or tenants indicate significant exposure from a supplier's year 2000" }, { "bbox": [ 0.0565033585247255, 0.4452861952861953, 0.1524983117172699, 0.46085858585858586 ], "ocr": false, "ocr_confidence": 1, "text": "problem, such" }, { "bbox": [ 0.2083941072471059, 0.4457070707070707, 0.9034461734007185, 0.46085858585858586 ], "ocr": false, "ocr_confidence": 1, "text": "or tenant will be asked to demonstrate how such problems will be addressed. We believe that we have viable" }, { "bbox": [ 0.05711092151961502, 0.4638047138047138, 0.33051426921989974, 0.4764309764309764 ], "ocr": false, "ocr_confidence": 1, "text": "alternatives for each of our major vendors." }, { "bbox": [ 0.07959075233052731, 0.4797979797979798, 0.8669923937073473, 0.49579124579124584 ], "ocr": false, "ocr_confidence": 1, "text": "The final critical system the task force is evaluating consists of internal systems in our properties that may have embedded" }, { "bbox": [ 0.055895795529835986, 0.4962121212121212, 0.8888646615233701, 0.5134680134680135 ], "ocr": false, "ocr_confidence": 1, "text": "microprocessors with potential year 2000 problems, mainly building systems, including heating. ventilation and air conditioning" }, { "bbox": [ 0.05771848451450455, 0.5147306397306397, 0.46235543911092586, 0.529882154882155 ], "ocr": false, "ocr_confidence": 1, "text": "systems, elevators and security systems. We are in the process of" }, { "bbox": [ 0.4574949351518097, 0.5134680134680135, 0.9022310474109395, 0.5311447811447811 ], "ocr": false, "ocr_confidence": 1, "text": "identifying the areas and systems that use embedded microprocessors" }, { "bbox": [ 0.05711092151961502, 0.5328282828282829, 0.62214450676687, 0.5462962962962963 ], "ocr": false, "ocr_confidence": 1, "text": "and will determine whether any modification or replacement is necessary: We anticipate" }, { "bbox": [ 0.6610285384397995, 0.5336700336700337, 0.873675586651132, 0.5475589225589226 ], "ocr": false, "ocr_confidence": 1, "text": "the services of outside experts to" }, { "bbox": [ 0.05771848451450455, 0.5496632996632996, 0.7916545823410466, 0.5648148148148148 ], "ocr": false, "ocr_confidence": 1, "text": "assist us with this phase of our year 2000 project. The evaluation of these areas is in process and is expected to be" }, { "bbox": [ 0.788616767366599, 0.5492424242424242, 0.8779285276153587, 0.5660774410774411 ], "ocr": false, "ocr_confidence": 1, "text": "completed in" }, { "bbox": [ 0.0565033585247255, 0.5660774410774411, 0.5996646759559577, 0.5816498316498316 ], "ocr": false, "ocr_confidence": 1, "text": "the first quarter of 1999. and any required modifications are expected to be made by" }, { "bbox": [ 0.5960192979866207, 0.5656565656565656, 0.6707495463580317, 0.5837542087542087 ], "ocr": false, "ocr_confidence": 1, "text": "mid-1999." }, { "bbox": [ 0.05954117349917311, 0.6001683501683501, 0.08870419725387015, 0.6111111111111112 ], "ocr": false, "ocr_confidence": 1, "text": "Cost" }, { "bbox": [ 0.05771848451450455, 0.6161616161616161, 0.351778974041033, 0.6313131313131313 ], "ocr": false, "ocr_confidence": 1, "text": "We do not expect our year 2000 project costs ," }, { "bbox": [ 0.3493487220614749, 0.61489898989899, 0.8985856694416023, 0.6321548821548821 ], "ocr": false, "ocr_confidence": 1, "text": "including the costs of any remedial activities and outside experts, to be material. The" }, { "bbox": [ 0.0565033585247255, 0.6325757575757576, 0.8937251654824862, 0.6494107744107744 ], "ocr": false, "ocr_confidence": 1, "text": "aggregate cost of purchasing conversion packages for the accounting systems and the cost to survey tenants, vendors and financial" }, { "bbox": [ 0.055895795529835986, 0.6506734006734007, 0.5534898883443542, 0.6658249158249159 ], "ocr": false, "ocr_confidence": 1, "text": "institutions are not expected to be material . In addition, any costs incurred to" }, { "bbox": [ 0.6020949279355158, 0.6553030303030303, 0.6191066917924225, 0.6637205387205387 ], "ocr": false, "ocr_confidence": 1, "text": "OI" }, { "bbox": [ 0.617284002807754, 0.6498316498316498, 0.8840041575642539, 0.6670875420875422 ], "ocr": false, "ocr_confidence": 1, "text": "upgrade building systems will constitute" }, { "bbox": [ 0.0565033585247255, 0.6679292929292929, 0.49151846286562295, 0.6830808080808081 ], "ocr": false, "ocr_confidence": 1, "text": "property maintenance costs, and are therefore generally recoverable" }, { "bbox": [ 0.5261495535743257, 0.6691919191919192, 0.7983377752848313, 0.6826599326599326 ], "ocr": false, "ocr_confidence": 1, "text": "the tenants pursuant to the terms of their" }, { "bbox": [ 0.7952999603103836, 0.6675084175084175, 0.8973705434518233, 0.6843434343434344 ], "ocr": false, "ocr_confidence": 1, "text": "existing leases." }, { "bbox": [ 0.05954117349917311, 0.702020202020202, 0.09356470121298632, 0.7121212121212122 ], "ocr": false, "ocr_confidence": 1, "text": "Risks" }, { "bbox": [ 0.05771848451450455, 0.718013468013468, 0.9022310474109395, 0.7335858585858586 ], "ocr": false, "ocr_confidence": 1, "text": "We believe that the principal risks associated with the year 2000 issue include the risk of disruption of our operations due to opera-" }, { "bbox": [ 0.05771848451450455, 0.7335858585858586, 0.8779285276153587, 0.7504208754208754 ], "ocr": false, "ocr_confidence": 1, "text": "tional failures of third parties , including tenants, vendors and financial institutions, and the risk of business interruption due to" }, { "bbox": [ 0.05528823253494646, 0.7504208754208754, 0.9083066773598347, 0.7676767676767676 ], "ocr": false, "ocr_confidence": 1, "text": "building system failures. We do not believe that the risk of disruptions due to operational failures of vendors or financial institutions" }, { "bbox": [ 0.05711092151961502, 0.771043771043771, 0.07290755938674258, 0.7811447811447811 ], "ocr": false, "ocr_confidence": 1, "text": "is" }, { "bbox": [ 0.0704773074071845, 0.7685185185185185, 0.6409789596084453, 0.7849326599326599 ], "ocr": false, "ocr_confidence": 1, "text": "significant, because our major vendors and financial institutions are currently year 2000" }, { "bbox": [ 0.6385487076288872, 0.7689393939393939, 0.9095218033496137, 0.7866161616161617 ], "ocr": false, "ocr_confidence": 1, "text": "compliant, and we believe we have viable" }, { "bbox": [ 0.05711092151961502, 0.7878787878787878, 0.18834452841575167, 0.7988215488215488 ], "ocr": false, "ocr_confidence": 1, "text": "alternatives for such" }, { "bbox": [ 0.2952756155163075, 0.7878787878787878, 0.8882570985284804, 0.8017676767676768 ], "ocr": false, "ocr_confidence": 1, "text": "of our major tenants do not become year 2000 compliant on schedule, such tenant's opera-" }, { "bbox": [ 0.055895795529835986, 0.8038720538720538, 0.9095218033496137, 0.8194444444444444 ], "ocr": false, "ocr_confidence": 1, "text": "tions and financial condition could be adversely affected, which may impact the tenants ability to meet its rent obligations. Similarly;" }, { "bbox": [ 0.05711092151961502, 0.8223905723905724, 0.09721007918232345, 0.8333333333333334 ], "ocr": false, "ocr_confidence": 1, "text": "if our" }, { "bbox": [ 0.09417226420787583, 0.81986531986532, 0.8894722245182596, 0.8375420875420876 ], "ocr": false, "ocr_confidence": 1, "text": "building systems failed due to year 2000 problems, services to our properties and tenants, such as mechanical and security" }, { "bbox": [ 0.0565033585247255, 0.8375420875420876, 0.8985856694416023, 0.853956228956229 ], "ocr": false, "ocr_confidence": 1, "text": "services, could be interrupted , resulting in potential rent disputes with the tenants. We believe; however; that our early involvement" }, { "bbox": [ 0.05711092151961502, 0.8569023569023568, 0.07412268537652163, 0.8678451178451179 ], "ocr": false, "ocr_confidence": 1, "text": "in" }, { "bbox": [ 0.07108487040207402, 0.8535353535353535, 0.8718528976664633, 0.8707912457912458 ], "ocr": false, "ocr_confidence": 1, "text": "identifying; assessing and evaluating our critical systems should minimize the risk of year 2000 problems to our operations." }, { "bbox": [ 0.47146888403426873, 0.9587542087542088, 0.49334115185029154, 0.9722222222222222 ], "ocr": false, "ocr_confidence": 1, "text": "30" }, { "bbox": [ 0.4970797913639344, 0.050556356689935286, 0.5357772999482523, 0.0672887611551826 ], "ocr": false, "ocr_confidence": 1, "text": "using" }, { "bbox": [ 0.8623359698005569, 0.07302350552061719, 0.9020269673586137, 0.08143777394066233 ], "ocr": false, "ocr_confidence": 1, "text": "guar-" }, { "bbox": [ 0.5064661898399778, 0.1057850359145008, 0.5446177913188945, 0.11601631088684596 ], "ocr": false, "ocr_confidence": 1, "text": "prior" }, { "bbox": [ 0.22416423343428518, 0.2542670649949019, 0.2685693554211168, 0.27308983736200043 ], "ocr": false, "ocr_confidence": 1, "text": "billing" }, { "bbox": [ 0.8281395401635421, 0.25679880054959947, 0.8572402076599906, 0.2718207280699291 ], "ocr": false, "ocr_confidence": 1, "text": "they" }, { "bbox": [ 0.15096660872268802, 0.449248399559986, 0.20931824724679826, 0.4585798832682968 ], "ocr": false, "ocr_confidence": 1, "text": "supplier" }, { "bbox": [ 0.6234528943009549, 0.531196087329666, 0.6609352768954937, 0.5479284917949132 ], "ocr": false, "ocr_confidence": 1, "text": "using" }, { "bbox": [ 0.5501354963651037, 0.6537938541054406, 0.6030190679352082, 0.6631253378137514 ], "ocr": false, "ocr_confidence": 1, "text": "replace" }, { "bbox": [ 0.4915318462329216, 0.6679982664373405, 0.524921044217248, 0.682590959151885 ], "ocr": false, "ocr_confidence": 1, "text": "from" }, { "bbox": [ 0.18705649744264524, 0.7893973092525166, 0.25524936283692645, 0.7989865291313217 ], "ocr": false, "ocr_confidence": 1, "text": "suppliers." }, { "bbox": [ 0.25463279530920807, 0.7862527609704945, 0.2952117150658089, 0.8021310774133439 ], "ocr": false, "ocr_confidence": 1, "text": "Ifany" } ]
[ { "bbox": [ 0.0565033585247255, 0.03528302125256471, 0.9083066959011858, 0.1351010101010101 ], "data": [], "index_in_doc": 244, "label": "text", "text": "information. The cost of our evaluation and the date on which we plan to complete our internal evaluation and related remediation projects are based on our best estimates. We derived these estimates number of assumptions of future events, including the continued availability of internal and external resources , third-party modifications and other factors. However; there can be no antee that these estimates will be achieved, and actual results may be materially different from those anticipated. Moreover; although we believe that we will be operating in a year 2000 compliant manner to December 31, 1999, there can be no assurance that any failure to modify a critical system would not have a material adverse effect on our operations. using guarprior" }, { "bbox": [ 0.05897256588307579, 0.15404040404040403, 0.12029747298812526, 0.16498319067136205 ], "data": [], "index_in_doc": 245, "label": "section_header", "text": "Readiness" }, { "bbox": [ 0.0577184833556701, 0.1700336957218671, 0.9022514058145158, 0.2213804456922743 ], "data": [], "index_in_doc": 246, "label": "text", "text": "Our year 2000 project is designed to ensure that all critical systems have been evaluated and will be suitable for continued use into and beyond the year 2000. We expect to have completed our identification and initial evaluation of critical systems in the first quarter of 1999, and we expect we will have implemented substantially all of the necessary remedial actions by mid-1999." }, { "bbox": [ 0.0565033585247255, 0.22095959595959597, 0.9064840069165173, 0.3072390315508602 ], "data": [], "index_in_doc": 247, "label": "text", "text": "We have completed our review of our internal accounting systems . Our most significant accounting systems, our general ledger system and our accounts payable system, are currently year 2000 compliant. The systems have been tested and we do not anticipate year 2000 problems. Our system is currently not year 2000 compliant . We have been notified by the vendor that will be distributing the year 2000 compliant upgrade to the software at no additional cost by June 1999. Once we receive this upgrade; the software will be tested for compatibility and year 2000 compliance: billing they" }, { "bbox": [ 0.0565033585247255, 0.30808080808080807, 0.9125595997827102, 0.4767789359044547 ], "data": [], "index_in_doc": 248, "label": "text", "text": "We place a high degree of reliance on computer systems of third parties, such as tenants, vendors and financial institutions. Although we are assessing the readiness of these third parties, there can be no guarantee that the failure of these third parties to modify their systems in advance of December 31, 1999 would not have a material adverse effect on our operations. We have surveyed our most significant third-party vendors and financial institutions, and all surveyed indicated that they have implemented year 2000 programs. We are currently in the process of surveying all major vendors and suppliers for their year 2000 readiness_ In addition, we are in the process of surveying our significant tenants for their year 2000 readiness and expect to complete such tenant assessments in the first quarter of 1999. We are continually participating in such surveys with new tenants, vendors and other third-party suppliers. If future risk assessments of third-party suppliers or tenants indicate significant exposure from a supplier's year 2000 problem, such or tenant will be asked to demonstrate how such problems will be addressed. We believe that we have viable alternatives for each of our major vendors. supplier" }, { "bbox": [ 0.055895794371001534, 0.4797979797979798, 0.9022310474109395, 0.5837542215983073 ], "data": [], "index_in_doc": 249, "label": "text", "text": "The final critical system the task force is evaluating consists of internal systems in our properties that may have embedded microprocessors with potential year 2000 problems, mainly building systems, including heating. ventilation and air conditioning systems, elevators and security systems. We are in the process of identifying the areas and systems that use embedded microprocessors and will determine whether any modification or replacement is necessary: We anticipate the services of outside experts to assist us with this phase of our year 2000 project. The evaluation of these areas is in process and is expected to be completed in the first quarter of 1999. and any required modifications are expected to be made by mid-1999. using" }, { "bbox": [ 0.058891041879683616, 0.6001683630124487, 0.08870419957153904, 0.6111111111111112 ], "data": [], "index_in_doc": 250, "label": "section_header", "text": "Cost" }, { "bbox": [ 0.055895794371001534, 0.61489898989899, 0.8995154254956409, 0.6843434343434344 ], "data": [], "index_in_doc": 251, "label": "text", "text": "We do not expect our year 2000 project costs , including the costs of any remedial activities and outside experts, to be material. The aggregate cost of purchasing conversion packages for the accounting systems and the cost to survey tenants, vendors and financial institutions are not expected to be material . In addition, any costs incurred to OI upgrade building systems will constitute property maintenance costs, and are therefore generally recoverable the tenants pursuant to the terms of their existing leases. replace from" }, { "bbox": [ 0.05898805022896529, 0.702020202020202, 0.09356469889531742, 0.7121212121212122 ], "data": [], "index_in_doc": 252, "label": "section_header", "text": "Risks" }, { "bbox": [ 0.05528823369378091, 0.7180134744355173, 0.9097576493363995, 0.8707912425802211 ], "data": [], "index_in_doc": 253, "label": "text", "text": "We believe that the principal risks associated with the year 2000 issue include the risk of disruption of our operations due to operational failures of third parties , including tenants, vendors and financial institutions, and the risk of business interruption due to building system failures. We do not believe that the risk of disruptions due to operational failures of vendors or financial institutions is significant, because our major vendors and financial institutions are currently year 2000 compliant, and we believe we have viable alternatives for such of our major tenants do not become year 2000 compliant on schedule, such tenant's operations and financial condition could be adversely affected, which may impact the tenants ability to meet its rent obligations. Similarly; if our building systems failed due to year 2000 problems, services to our properties and tenants, such as mechanical and security services, could be interrupted , resulting in potential rent disputes with the tenants. We believe; however; that our early involvement in identifying; assessing and evaluating our critical systems should minimize the risk of year 2000 problems to our operations. suppliers. Ifany" }, { "bbox": [ 0.470293751738947, 0.9507403132891414, 0.49441818185661296, 0.9739984839853614 ], "data": [], "index_in_doc": 254, "label": "page_footer", "text": "30" } ]
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Contingency Plans We believe that development of contingency plans for significant exposures to potential year 2000 problems are integral to our planprocess. Once we have completed our identification and evaluation of critical systems and completed the subsequent remedial action phase, we will again assess our exposure to year 2000 problems. Based on this assessment, we intend to develop appropriate contingency plans for the systems . Because we anticipate substantially year 2000 compliant by mid-1999, we believe that adequate time exists to ensure that alternatives can be developed, assessed and implemented to the end of 1999 Based on our assessment of the success or adequacy of these alternatives, we intend to develop contingency plans. We cannot give assurance, however, that failure to develop an altemnative or an appropriate contingency plan would not have a material adverse effect on our operations . ning have being prior FUnds FroM Operations We believe that funds from operations ("FFO") is helpful to investors as a measure of the performance of an equity REIT because, with cash flows from operating activities, financing activities and investing activities, it provides investors with an understanding of our ability to incur and service debt, to make capital expenditures and to make distributions. We compute FFO in accordance with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts ("NAREIT") in its March 1995 White Paper (the 'White Paper") , which may differ the methodology for calculating FFO utilized by other equity REITs, and, accordingly; may not be comparable to such other REITs. Further; FFO does not represent amounts available for our discretionary use because of needed capital replacement or expansion, debt service obligations; or other commitments and uncertain ties. The White Paper defines FFO as net income (loss) (computed in accordance with generally accepted accounting principals ("GAAP") ) , excluding (or losses) debt restructuring and sales of property and excluding amounts for extraordinary and non-recurring items; plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our financial performance or to cash flows from operating activities (determined in accordance with GAAP) as a measure of our liquidity; nor is it indicative of funds available to fund our cash needs, including our to make distributions. (See Cash Flows" for information regarding these measures of cash along from gains from ability ' flow) . The following table presents our FFO for the years ended December 31, 1998, 1997 and 1996 (in thousands) :
[ { "bbox": [ 0.08566638227942254, 0.03577441077441082, 0.20231847729821067, 0.052188552188552235 ], "ocr": false, "ocr_confidence": 1, "text": "Contingency Plans" }, { "bbox": [ 0.08688150826920157, 0.05303030303030303, 0.9386848271043108, 0.06986531986531991 ], "ocr": false, "ocr_confidence": 1, "text": "We believe that development of contingency plans for significant exposures to potential year 2000 problems are integral to our plan-" }, { "bbox": [ 0.1184747840034567, 0.0715488215488215, 0.6962671921433917, 0.08501683501683506 ], "ocr": false, "ocr_confidence": 1, "text": "process. Once we have completed our identification and evaluation of critical systems and" }, { "bbox": [ 0.7290755938674258, 0.07281144781144776, 0.904053736395608, 0.08627946127946133 ], "ocr": false, "ocr_confidence": 1, "text": "completed the subsequent" }, { "bbox": [ 0.08505881928453302, 0.08796296296296291, 0.8633470157380102, 0.10353535353535354 ], "ocr": false, "ocr_confidence": 1, "text": "remedial action phase, we will again assess our exposure to year 2000 problems. Based on this assessment, we intend to" }, { "bbox": [ 0.8609167637584519, 0.08712121212121213, 0.9174201222831775, 0.10437710437710433 ], "ocr": false, "ocr_confidence": 1, "text": "develop" }, { "bbox": [ 0.08505881928453302, 0.10479797979797979, 0.5322251835232209, 0.12121212121212122 ], "ocr": false, "ocr_confidence": 1, "text": "appropriate contingency plans for the systems . Because we anticipate" }, { "bbox": [ 0.5698940892063712, 0.10563973063973059, 0.9083066773598347, 0.12205387205387201 ], "ocr": false, "ocr_confidence": 1, "text": "substantially year 2000 compliant by mid-1999, we" }, { "bbox": [ 0.08566638227942254, 0.12247474747474747, 0.7588461806170124, 0.13762626262626262 ], "ocr": false, "ocr_confidence": 1, "text": "believe that adequate time exists to ensure that alternatives can be developed, assessed and implemented" }, { "bbox": [ 0.7946923973154941, 0.12457912457912453, 0.9186352482729566, 0.13804713804713808 ], "ocr": false, "ocr_confidence": 1, "text": "to the end of 1999" }, { "bbox": [ 0.0874890712640911, 0.14057239057239063, 0.3608924189643758, 0.1523569023569023 ], "ocr": false, "ocr_confidence": 1, "text": "Based on our assessment of the success or" }, { "bbox": [ 0.3578546039899282, 0.13973063973063968, 0.9228881892371832, 0.15656565656565657 ], "ocr": false, "ocr_confidence": 1, "text": "adequacy of these alternatives, we intend to develop contingency plans. We cannot give" }, { "bbox": [ 0.08627394527431206, 0.15698653198653204, 0.30621174942431884, 0.17003367003366998 ], "ocr": false, "ocr_confidence": 1, "text": "assurance, however, that failure to" }, { "bbox": [ 0.3043890604396503, 0.15572390572390576, 0.9411150790838689, 0.17297979797979798 ], "ocr": false, "ocr_confidence": 1, "text": "develop an altemnative or an appropriate contingency plan would not have a material adverse effect" }, { "bbox": [ 0.08688150826920157, 0.17803030303030304, 0.13184116989102618, 0.1864478114478114 ], "ocr": false, "ocr_confidence": 1, "text": "on our" }, { "bbox": [ 0.13123360689613664, 0.17424242424242425, 0.20353360328798972, 0.1893939393939394 ], "ocr": false, "ocr_confidence": 1, "text": "operations ." }, { "bbox": [ 0.08505881928453302, 0.21127946127946132, 0.2764411626747323, 0.22138047138047143 ], "ocr": false, "ocr_confidence": 1, "text": "FUnds FroM Operations" }, { "bbox": [ 0.08688150826920157, 0.22558922558922553, 0.9216730632474042, 0.24200336700336694 ], "ocr": false, "ocr_confidence": 1, "text": "We believe that funds from operations (\"FFO\") is helpful to investors as a measure of the performance of an equity REIT because," }, { "bbox": [ 0.1245504139523519, 0.2428451178451179, 0.9350394491349736, 0.2588383838383838 ], "ocr": false, "ocr_confidence": 1, "text": "with cash flows from operating activities, financing activities and investing activities, it provides investors with an understand-" }, { "bbox": [ 0.08445125628964349, 0.2596801346801346, 0.9313940711656366, 0.2765151515151515 ], "ocr": false, "ocr_confidence": 1, "text": "ing of our ability to incur and service debt, to make capital expenditures and to make distributions. We compute FFO in accordance" }, { "bbox": [ 0.08566638227942254, 0.2781986531986532, 0.9374697011145318, 0.2933501683501684 ], "ocr": false, "ocr_confidence": 1, "text": "with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts (\"NAREIT\") in its" }, { "bbox": [ 0.0874890712640911, 0.2962962962962962, 0.2770487256696218, 0.3101851851851851 ], "ocr": false, "ocr_confidence": 1, "text": "March 1995 White Paper (the" }, { "bbox": [ 0.281909229628738, 0.2958754208754209, 0.493948714845181, 0.3110269360269361 ], "ocr": false, "ocr_confidence": 1, "text": "'White Paper\") , which may differ" }, { "bbox": [ 0.5285798055538837, 0.2971380471380472, 0.5540974513392436, 0.30808080808080807 ], "ocr": false, "ocr_confidence": 1, "text": "the" }, { "bbox": [ 0.5528823253494646, 0.29419191919191917, 0.9228881892371832, 0.3114478114478114 ], "ocr": false, "ocr_confidence": 1, "text": "methodology for calculating FFO utilized by other equity" }, { "bbox": [ 0.08566638227942254, 0.31271043771043766, 0.9374697011145318, 0.32786195286195297 ], "ocr": false, "ocr_confidence": 1, "text": "REITs, and, accordingly; may not be comparable to such other REITs. Further; FFO does not represent amounts available for our dis-" }, { "bbox": [ 0.08505881928453302, 0.3287037037037036, 0.9241033152269623, 0.34553872053872065 ], "ocr": false, "ocr_confidence": 1, "text": "cretionary use because of needed capital replacement or expansion, debt service obligations; or other commitments and uncertain -" }, { "bbox": [ 0.08566638227942254, 0.3472222222222222, 0.9022310474109395, 0.364057239057239 ], "ocr": false, "ocr_confidence": 1, "text": "ties. The White Paper defines FFO as net income (loss) (computed in accordance with generally accepted accounting principals" }, { "bbox": [ 0.08566638227942254, 0.36237373737373735, 0.22722856008868106, 0.37920875420875416 ], "ocr": false, "ocr_confidence": 1, "text": "(\"GAAP\") ) , excluding" }, { "bbox": [ 0.2624672137922733, 0.3648989898989899, 0.33172939520967876, 0.3779461279461279 ], "ocr": false, "ocr_confidence": 1, "text": "(or losses)" }, { "bbox": [ 0.3675756119081605, 0.36363636363636365, 0.9234957522320728, 0.380050505050505 ], "ocr": false, "ocr_confidence": 1, "text": "debt restructuring and sales of property and excluding amounts for extraordinary and" }, { "bbox": [ 0.08384369329475397, 0.380050505050505, 0.9186352482729566, 0.39688552188552184 ], "ocr": false, "ocr_confidence": 1, "text": "non-recurring items; plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships" }, { "bbox": [ 0.08445125628964349, 0.3994107744107744, 0.9362545751247526, 0.4145622895622895 ], "ocr": false, "ocr_confidence": 1, "text": "and joint ventures. FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indi-" }, { "bbox": [ 0.08445125628964349, 0.4154040404040404, 0.9265335672065204, 0.43139730639730645 ], "ocr": false, "ocr_confidence": 1, "text": "cation of our financial performance or to cash flows from operating activities (determined in accordance with GAAP) as a measure" }, { "bbox": [ 0.08445125628964349, 0.4322390572390572, 0.6701419833631423, 0.4490740740740741 ], "ocr": false, "ocr_confidence": 1, "text": "of our liquidity; nor is it indicative of funds available to fund our cash needs, including our" }, { "bbox": [ 0.7108487040207402, 0.43518518518518523, 0.8882570985284804, 0.44696969696969696 ], "ocr": false, "ocr_confidence": 1, "text": "to make distributions. (See" }, { "bbox": [ 0.8979781064467128, 0.43518518518518523, 0.9344318861400841, 0.44696969696969696 ], "ocr": false, "ocr_confidence": 1, "text": "Cash" }, { "bbox": [ 0.08445125628964349, 0.45033670033670037, 0.4526344311926936, 0.4659090909090909 ], "ocr": false, "ocr_confidence": 1, "text": "Flows\" for information regarding these measures of cash" }, { "bbox": [ 0.10632352410566627, 0.46675084175084175, 0.8123117241672904, 0.48442760942760943 ], "ocr": false, "ocr_confidence": 1, "text": "The following table presents our FFO for the years ended December 31, 1998, 1997 and 1996 (in thousands) :" }, { "bbox": [ 0.7357587868112107, 0.5105218855218855, 0.8815739055846958, 0.5189393939393939 ], "ocr": false, "ocr_confidence": 1, "text": "YEAR ENDED DECEMBER 31" }, { "bbox": [ 0.7011276961025079, 0.5227272727272727, 0.735151223816321, 0.5345117845117845 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.7995529012746104, 0.5244107744107744, 0.8299310510190864, 0.5345117845117845 ], "ocr": false, "ocr_confidence": 1, "text": "1997" }, { "bbox": [ 0.8955478544671547, 0.5227272727272727, 0.9295713821809679, 0.5345117845117845 ], "ocr": false, "ocr_confidence": 1, "text": "1996" }, { "bbox": [ 0.08505881928453302, 0.5387205387205387, 0.21507730019089064, 0.5488215488215489 ], "ocr": false, "ocr_confidence": 1, "text": "Operating Data:" }, { "bbox": [ 0.08445125628964349, 0.5538720538720538, 0.20171091430332116, 0.5694444444444444 ], "ocr": false, "ocr_confidence": 1, "text": "Net income (loss)" }, { "bbox": [ 0.6877613102149384, 0.5580808080808081, 0.735151223816321, 0.5690235690235691 ], "ocr": false, "ocr_confidence": 1, "text": "19,403" }, { "bbox": [ 0.7527705506681172, 0.5576599326599326, 0.7612764325965705, 0.5669191919191919 ], "ocr": false, "ocr_confidence": 1, "text": "$" }, { "bbox": [ 0.7874016413768199, 0.5563973063973064, 0.8402596219322083, 0.5715488215488216 ], "ocr": false, "ocr_confidence": 1, "text": "(2,797)|" }, { "bbox": [ 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"Depreciation and amortization" }, { "bbox": [ 0.6853310582353803, 0.6767676767676768, 0.735151223816321, 0.6893939393939394 ], "ocr": false, "ocr_confidence": 1, "text": "10,296" }, { "bbox": [ 0.8882570985284804, 0.6792929292929293, 0.9283562561911889, 0.6902356902356902 ], "ocr": false, "ocr_confidence": 1, "text": "2,405" }, { "bbox": [ 0.08505881928453302, 0.6927609427609427, 0.12880335491657857, 0.7037037037037037 ], "ocr": false, "ocr_confidence": 1, "text": "Funds" }, { "bbox": [ 0.16282688263039177, 0.6914983164983165, 0.23755713100180295, 0.7066498316498316 ], "ocr": false, "ocr_confidence": 1, "text": "Operations" }, { "bbox": [ 0.6804705542762641, 0.6927609427609427, 0.7363663498061002, 0.7087542087542088 ], "ocr": false, "ocr_confidence": 1, "text": "29,699" }, { "bbox": [ 0.7515554246783381, 0.6957070707070707, 0.7612764325965705, 0.70496632996633 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.7861865153870409, 0.6944444444444444, 0.8347915549782026, 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0.22401467290800273, 0.36586339160081155, 0.2638584119882831, 0.3769817262443063 ], "ocr": false, "ocr_confidence": 1, "text": "gains" }, { "bbox": [ 0.33235034157186694, 0.3641262125652867, 0.3657395395561933, 0.3787189052798311 ], "ocr": false, "ocr_confidence": 1, "text": "from" }, { "bbox": [ 0.6695079086883045, 0.43187649260432953, 0.7114827786955781, 0.45069926497142804 ], "ocr": false, "ocr_confidence": 1, "text": "ability '" }, { "bbox": [ 0.4526478145599922, 0.45082654926562343, 0.4884672645238767, 0.4654192419801678 ], "ocr": false, "ocr_confidence": 1, "text": "flow) ." }, { "bbox": [ 0.7948244043042554, 0.6406161236620014, 0.8316217330149939, 0.6586263005804228 ], "ocr": false, "ocr_confidence": 1, "text": "6,973" }, { "bbox": [ 0.789554280330126, 0.6777683199375569, 0.8338540420146756, 0.6875515453823084 ], "ocr": false, "ocr_confidence": 1, "text": "4,866" }, { "bbox": [ 0.1282091752889877, 0.6915672900063642, 0.16159837327331408, 0.7061599827209085 ], "ocr": false, "ocr_confidence": 1, "text": "from" }, { "bbox": [ 0.8892308766203764, 0.6950106251400902, 0.9285976040890721, 0.7052419001124351 ], "ocr": false, "ocr_confidence": 1, "text": "5,018" } ]
[ { "bbox": [ 0.08566638227942254, 0.0357743850862137, 0.20231847729821067, 0.05218852650035511 ], "data": [], "index_in_doc": 255, "label": "section_header", "text": "Contingency Plans" }, { "bbox": [ 0.0850588216022019, 0.05303030303030303, 0.9424015151102185, 0.1893939393939394 ], "data": [], "index_in_doc": 256, "label": "text", "text": "We believe that development of contingency plans for significant exposures to potential year 2000 problems are integral to our planprocess. Once we have completed our identification and evaluation of critical systems and completed the subsequent remedial action phase, we will again assess our exposure to year 2000 problems. Based on this assessment, we intend to develop appropriate contingency plans for the systems . Because we anticipate substantially year 2000 compliant by mid-1999, we believe that adequate time exists to ensure that alternatives can be developed, assessed and implemented to the end of 1999 Based on our assessment of the success or adequacy of these alternatives, we intend to develop contingency plans. We cannot give assurance, however, that failure to develop an altemnative or an appropriate contingency plan would not have a material adverse effect on our operations . ning have being prior" }, { "bbox": [ 0.0850588216022019, 0.2112794355912642, 0.2764411719454079, 0.2213804456922743 ], "data": [], "index_in_doc": 257, "label": "section_header", "text": "FUnds FroM Operations" }, { "bbox": [ 0.08384369329475397, 0.22558925127742266, 0.939991658616939, 0.4659090909090909 ], "data": [], "index_in_doc": 258, "label": "text", "text": "We believe that funds from operations (\"FFO\") is helpful to investors as a measure of the performance of an equity REIT because, with cash flows from operating activities, financing activities and investing activities, it provides investors with an understanding of our ability to incur and service debt, to make capital expenditures and to make distributions. We compute FFO in accordance with standards established by the Board of Governors of the National Association of Real Estate Investment Trusts (\"NAREIT\") in its March 1995 White Paper (the 'White Paper\") , which may differ the methodology for calculating FFO utilized by other equity REITs, and, accordingly; may not be comparable to such other REITs. Further; FFO does not represent amounts available for our discretionary use because of needed capital replacement or expansion, debt service obligations; or other commitments and uncertain ties. The White Paper defines FFO as net income (loss) (computed in accordance with generally accepted accounting principals (\"GAAP\") ) , excluding (or losses) debt restructuring and sales of property and excluding amounts for extraordinary and non-recurring items; plus real estate related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our financial performance or to cash flows from operating activities (determined in accordance with GAAP) as a measure of our liquidity; nor is it indicative of funds available to fund our cash needs, including our to make distributions. (See Cash Flows\" for information regarding these measures of cash along from gains from ability ' flow) ." }, { "bbox": [ 0.10632352178799738, 0.4667508289067432, 0.8123117056259391, 0.48442759658351087 ], "data": [], "index_in_doc": 259, "label": "text", "text": "The following table presents our FFO for the years ended December 31, 1998, 1997 and 1996 (in thousands) :" }, { "bbox": [ 0.0804540677703443, 0.5084934427280619, 0.9377801574983949, 0.7112862943398832 ], "data": [ { "html_seq": "<table><tr><td></td><th colspan=\"3\">YEAR ENDED DECEMBER 31</th></tr><tr><td></td><th>1998</th><th>1997</th><th>1996</th></tr><tr><td>Operating Data:</td><td></td><td></td><td></td></tr><tr><td>Net income (loss)</td><td>19,403</td><td>$ (2,797)|</td><td>2,175</td></tr><tr><td>Add:</td><td></td><td></td><td></td></tr><tr><td>Special bonus</td><td></td><td>353</td><td></td></tr><tr><td>Stock compensation</td><td></td><td>4,239</td><td></td></tr><tr><td>Post-retirement benefit</td><td></td><td>632</td><td>438</td></tr><tr><td>Acquisition LLC financing costs</td><td></td><td>6,973</td><td></td></tr><tr><td>Write-off of unamoritized loan costs</td><td></td><td>2,295</td><td></td></tr><tr><td>Depreciation and amortization</td><td>10,296</td><td>4,866</td><td>2,405</td></tr><tr><td>Funds Operations from</td><td>29,699</td><td>5 16,561</td><td>5,018</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 260, "label": "table", "text": "" } ]
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Property And Lease information The following table is a summary of our property portfolio as of December 31, 1998 (dollars in thousands): All, or substantially all, of the vacant space is office or warehouse space, The following table shows certain information with respect to the expirations of our properties as of December 31, 1998: lease Quantitative And Qualitative disclosures About Market Risk Market risk is the exposure to loss resulting from changes in interest rates , foreign currency exchange rates , commodity prices and equity The primary market risk to which we are exposed is interest rate risk, which is sensitive to many factors, including governmental monetary and policies, domestic and international economic and political considerations and other factors that are beyond our control prices. tax In order to modify and manage the interest characteristics of our outstanding debt and limit the effects of interest rates on our operations, we may utilize a variety of financial instruments, including interest rate swaps, caps, floors and other interest rate exchange contracts. The use of these types of instruments to hedge our exposure to changes in interest rates carries additional risks such as counter-party credit risk and legal enforceability of hedging contracts. Our future earnings, cash flows and fair values relating to financial instruments are primarily dependent upon prevalent market rates of interest, such as LIBOR. However; due to the purchase of our interest rate swap agreement, the effects of interest rate changes are reduced . Based on interest rates at December 31 , 1% increase in interest rates on our line of credit would decrease annual future earnings and cash flows, after considering the effect of our interest rate swap agreement; by approximately million. A 1% decrease in interest rates on our line of credit would increase annual future earnings and cash flows, after considering the effect of our interest rate swap agreement, by approximately million. A 1% increase in interest rates on our secured debt and interest rate swap agreement would increase their fair value by approximately $7-7 million. A 1% decrease in interest rates on our secured debt and interest rate swap agreement would increase their fair value by approximately $8.8 million. A 1% increase or decrease in interest rates on our second note receivable would not have a material impact on its fair value. 1998, 51.4 S1.4 These amounts are determined by considering the impact of the hypothetical interest rates on our borrowing cost and interest rate swap agreement. These analyses do not consider the effects of the reduced level of overall economic activity that could exist in such an environment. Further; in the event of a change of such magnitude, we consider actions to further mitigate our exposure to the change. However; due to the uncertainty of the actions that would be taken and their possible effects, the sensitivity analysis assumes no changes in our capital structure. would taking specific
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changes in interest rates , foreign currency exchange rates , commodity prices and" }, { "bbox": [ 0.052250417560498856, 0.5867003367003367, 0.09477982720276536, 0.5984848484848485 ], "ocr": false, "ocr_confidence": 1, "text": "equity" }, { "bbox": [ 0.13913192582970044, 0.5833333333333334, 0.8123117241672904, 0.5997474747474747 ], "ocr": false, "ocr_confidence": 1, "text": "The primary market risk to which we are exposed is interest rate risk, which is sensitive to many factors," }, { "bbox": [ 0.8086663461979532, 0.5812289562289562, 0.8785360906102482, 0.5980639730639731 ], "ocr": false, "ocr_confidence": 1, "text": "including" }, { "bbox": [ 0.05103529157071981, 0.6005892255892256, 0.23512687902224483, 0.6157407407407408 ], "ocr": false, "ocr_confidence": 1, "text": "governmental monetary and" }, { "bbox": [ 0.2545688948587095, 0.5984848484848485, 0.9010159214211604, 0.6157407407407408 ], "ocr": false, "ocr_confidence": 1, "text": "policies, domestic and international economic and political considerations and other factors that are" }, { "bbox": [ 0.052250417560498856, 0.6186868686868687, 0.1774083945077403, 0.6313131313131313 ], "ocr": false, "ocr_confidence": 1, "text": "beyond our control" }, { "bbox": [ 0.07473024837141115, 0.6317340067340067, 0.8888646615233701, 0.6477272727272727 ], "ocr": false, "ocr_confidence": 1, "text": "In order to modify and manage the interest characteristics of our outstanding debt and limit the effects of interest rates on our" }, { "bbox": [ 0.052250417560498856, 0.6477272727272727, 0.8572713857891149, 0.6645622895622896 ], "ocr": false, "ocr_confidence": 1, "text": "operations, we may utilize a variety of financial instruments, including interest rate swaps, caps, floors and other interest rate" }, { "bbox": [ 0.05164285456560933, 0.6654040404040404, 0.8973705434518233, 0.6818181818181818 ], "ocr": false, "ocr_confidence": 1, "text": "exchange contracts. The use of these types of instruments to hedge our exposure to changes in interest rates carries additional risks" }, { "bbox": [ 0.05285798055538837, 0.6805555555555556, 0.549844510375017, 0.6982323232323232 ], "ocr": false, "ocr_confidence": 1, "text": "such as counter-party credit risk and legal enforceability of hedging contracts." }, { "bbox": [ 0.07473024837141115, 0.696969696969697, 0.8998007954313815, 0.7138047138047139 ], "ocr": false, "ocr_confidence": 1, "text": "Our future earnings, cash flows and fair values relating to financial instruments are primarily dependent upon prevalent market" }, { "bbox": [ 0.05103529157071981, 0.7138047138047139, 0.859701637768673, 0.7297979797979798 ], "ocr": false, "ocr_confidence": 1, "text": "rates of interest, such as LIBOR. However; due to the purchase of our interest rate swap agreement, the effects of interest rate" }, { "bbox": [ 0.05164285456560933, 0.7314814814814815, 0.4441285492642402, 0.747895622895623 ], "ocr": false, "ocr_confidence": 1, "text": "changes are reduced . Based on interest rates at December 31 ," }, { "bbox": [ 0.4957714038298496, 0.7314814814814815, 0.8554486968044464, 0.7441077441077442 ], "ocr": false, "ocr_confidence": 1, "text": "1% increase in interest rates on our line of credit would" }, { "bbox": [ 0.05285798055538837, 0.7466329966329966, 0.8876495355335909, 0.7634680134680134 ], "ocr": false, "ocr_confidence": 1, "text": "decrease annual future earnings and cash flows, after considering the effect of our interest rate swap agreement; by approximately" }, { "bbox": [ 0.08323613029986444, 0.7643097643097644, 0.6598134124500203, 0.776936026936027 ], "ocr": false, "ocr_confidence": 1, "text": "million. A 1% decrease in interest rates on our line of credit would increase annual future" }, { "bbox": [ 0.6567755974755728, 0.7626262626262627, 0.8560562597993359, 0.7786195286195285 ], "ocr": false, "ocr_confidence": 1, "text": "earnings and cash flows, after" }, { "bbox": [ 0.0534655435502779, 0.7798821548821548, 0.5413386284465637, 0.795875420875421 ], "ocr": false, "ocr_confidence": 1, "text": "considering the effect of our interest rate swap agreement, by approximately" }, { "bbox": [ 0.5711092151961502, 0.7811447811447811, 0.872460460661353, 0.7920875420875422 ], "ocr": false, "ocr_confidence": 1, "text": "million. A 1% increase in interest rates on our" }, { "bbox": [ 0.05407310654516742, 0.795875420875421, 0.8718528976664633, 0.8122895622895623 ], "ocr": false, "ocr_confidence": 1, "text": "secured debt and interest rate swap agreement would increase their fair value by approximately $7-7 million. A 1% decrease in" }, { "bbox": [ 0.05285798055538837, 0.8127104377104377, 0.8985856694416023, 0.8282828282828283 ], "ocr": false, "ocr_confidence": 1, "text": "interest rates on our secured debt and interest rate swap agreement would increase their fair value by approximately $8.8 million. A" }, { "bbox": [ 0.05468066954005694, 0.82996632996633, 0.8299310510190864, 0.8438552188552189 ], "ocr": false, "ocr_confidence": 1, "text": "1% increase or decrease in interest rates on our second note receivable would not have a material impact on its fair value." }, { "bbox": [ 0.07594537436119018, 0.8446969696969697, 0.8858268465489224, 0.8606902356902356 ], "ocr": false, "ocr_confidence": 1, "text": "These amounts are determined by considering the impact of the hypothetical interest rates on our borrowing cost and interest" }, { "bbox": [ 0.05407310654516742, 0.8606902356902356, 0.8888646615233701, 0.877946127946128 ], "ocr": false, "ocr_confidence": 1, "text": "rate swap agreement. These analyses do not consider the effects of the reduced level of overall economic activity that could exist in" }, { "bbox": [ 0.05407310654516742, 0.8783670033670034, 0.45871006114158874, 0.8939393939393939 ], "ocr": false, "ocr_confidence": 1, "text": "such an environment. Further; in the event of a change of such" }, { "bbox": [ 0.45688737215692016, 0.877104377104377, 0.5364781244874475, 0.8947811447811448 ], "ocr": false, "ocr_confidence": 1, "text": "magnitude," }, { "bbox": [ 0.5364781244874475, 0.8817340067340068, 0.5571352663136913, 0.8901515151515151 ], "ocr": false, "ocr_confidence": 1, "text": "we" }, { "bbox": [ 0.5996646759559577, 0.877946127946128, 0.6598134124500203, 0.8914141414141414 ], "ocr": false, "ocr_confidence": 1, "text": "consider" }, { "bbox": [ 0.7029503850871764, 0.877946127946128, 0.90162348441605, 0.8914141414141414 ], "ocr": false, "ocr_confidence": 1, "text": "actions to further mitigate our" }, { "bbox": [ 0.0534655435502779, 0.8952020202020202, 0.4562798091620307, 0.9111952861952861 ], "ocr": false, "ocr_confidence": 1, "text": "exposure to the change. 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[ { "bbox": [ 0.04788839203321157, 0.03493268562085701, 0.31411005908720707, 0.045454545454545456 ], "data": [], "index_in_doc": 261, "label": "section_header", "text": "Property And Lease information" }, { "bbox": [ 0.04799747775510665, 0.048400647712476326, 0.7333285533730036, 0.06523571592388731 ], "data": [], "index_in_doc": 262, "label": "text", "text": "The following table is a summary of our property portfolio as of December 31, 1998 (dollars in thousands):" }, { "bbox": [ 0.04861628492064172, 0.0785438460533065, 0.9048680725386606, 0.29843925707267993 ], "data": [ { "html_seq": "<table><tr><td></td><th>Number of Properties</th><th>Rentable Square Feet</th><th>Annualized Base Rent</th><th>Occupancy Percentage</th></tr><tr><td>Reqion:</td><td></td><td></td><td></td><td></td></tr><tr><td>Suburban Washington D.C.</td><td>17</td><td>1,533,833</td><td>$ 20,917</td><td>94.5% (I)</td></tr><tr><td>California San Diego</td><td>7</td><td>428,955</td><td>11,529</td><td>98.9%</td></tr><tr><td>California San Francisco Bay</td><td>6</td><td>355,398</td><td>5,364</td><td>91.4%</td></tr><tr><td>Southeast</td><td>4</td><td>255,977</td><td>3,661</td><td>() 99.1%</td></tr><tr><td>New Jersey /Suburban Philadelphia</td><td>5</td><td>273,048</td><td>3.497</td><td>100.09</td></tr><tr><td>Eastern Massachusetts</td><td>5</td><td>278,927</td><td>7,724</td><td>I0o.0%</td></tr><tr><td>Washington Seattle</td><td>3</td><td>328,556</td><td>8,727</td><td>96.7%</td></tr><tr><td>Subtotal</td><td>47</td><td>3.454,694</td><td>61,419</td><td>96.2%</td></tr><tr><td>Renovation /Repositioning Properties</td><td></td><td>133,460</td><td>88</td><td>7.3%</td></tr><tr><td>Total</td><td>51</td><td>3,588,154</td><td>5 61,507</td><td>92.9%</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 263, "label": "table", "text": "" }, { "bbox": [ 0.05165951860496654, 0.31734004165187024, 0.47511424346225467, 0.3299663042781329 ], "data": [], "index_in_doc": 264, "label": "footnote", "text": "All, or substantially all, of the vacant space is office or warehouse space," }, { "bbox": [ 0.04921260258605124, 0.34427611996429136, 0.8588030682672896, 0.36069022284613717 ], "data": [], "index_in_doc": 265, "label": "text", "text": "The following table shows certain information with respect to the expirations of our properties as of December 31, 1998: lease" }, { "bbox": [ 0.19645563253059295, 0.37452243072818026, 0.7593285153261511, 0.5337496285486703 ], "data": [ { "html_seq": "<table><tr><th>Year of Lease Expiration</th><th>Number o Expiring Leases</th><th>Square Footage of Expiring Leases</th><th>Percentage of Aggregate Portfolio Lease Square Foot</th><th>Annualized Base Rent of Expiring Leases (per square foot)</th></tr><tr><td>1999</td><td>47</td><td>332,161</td><td>10.0%</td><td>$ 18.08</td></tr><tr><td>2000</td><td>26</td><td>383,600</td><td>IL.5%</td><td>$ 16.89</td></tr><tr><td>2O01</td><td>22</td><td>424,382</td><td>12.7%</td><td>5 18.93</td></tr><tr><td>2002</td><td></td><td>118,086</td><td>3.5%</td><td>5 14.25</td></tr><tr><td>2003</td><td>77</td><td>366,782</td><td>I1.09</td><td>$ 15.46</td></tr><tr><td>Thereafter</td><td>35</td><td>1,706,942</td><td>51.5%</td><td>5 19.43</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 266, "label": "table", "text": "" }, { "bbox": [ 0.05164285572444378, 0.553030303030303, 0.5504520733699065, 0.5652356773915918 ], "data": [], "index_in_doc": 267, "label": "section_header", "text": "Quantitative And Qualitative disclosures About Market Risk" }, { "bbox": [ 0.05103529157071981, 0.5660774539215396, 0.9010159399625116, 0.6313131313131313 ], "data": [], "index_in_doc": 268, "label": "text", "text": "Market risk is the exposure to loss resulting from changes in interest rates , foreign currency exchange rates , commodity prices and equity The primary market risk to which we are exposed is interest rate risk, which is sensitive to many factors, including governmental monetary and policies, domestic and international economic and political considerations and other factors that are beyond our control prices. tax" }, { "bbox": [ 0.05164285572444378, 0.6317340195781053, 0.8973705619931744, 0.6982323232323232 ], "data": [], "index_in_doc": 269, "label": "text", "text": "In order to modify and manage the interest characteristics of our outstanding debt and limit the effects of interest rates on our operations, we may utilize a variety of financial instruments, including interest rate swaps, caps, floors and other interest rate exchange contracts. The use of these types of instruments to hedge our exposure to changes in interest rates carries additional risks such as counter-party credit risk and legal enforceability of hedging contracts." }, { "bbox": [ 0.05103529157071981, 0.696969696969697, 0.9003545699665488, 0.8438552220662435 ], "data": [], "index_in_doc": 270, "label": "text", "text": "Our future earnings, cash flows and fair values relating to financial instruments are primarily dependent upon prevalent market rates of interest, such as LIBOR. However; due to the purchase of our interest rate swap agreement, the effects of interest rate changes are reduced . Based on interest rates at December 31 , 1% increase in interest rates on our line of credit would decrease annual future earnings and cash flows, after considering the effect of our interest rate swap agreement; by approximately million. A 1% decrease in interest rates on our line of credit would increase annual future earnings and cash flows, after considering the effect of our interest rate swap agreement, by approximately million. A 1% increase in interest rates on our secured debt and interest rate swap agreement would increase their fair value by approximately $7-7 million. A 1% decrease in interest rates on our secured debt and interest rate swap agreement would increase their fair value by approximately $8.8 million. A 1% increase or decrease in interest rates on our second note receivable would not have a material impact on its fair value. 1998, 51.4 S1.4" }, { "bbox": [ 0.05346554470911234, 0.8446969696969697, 0.9023476910511021, 0.9271885505830398 ], "data": [], "index_in_doc": 271, "label": "text", "text": "These amounts are determined by considering the impact of the hypothetical interest rates on our borrowing cost and interest rate swap agreement. These analyses do not consider the effects of the reduced level of overall economic activity that could exist in such an environment. Further; in the event of a change of such magnitude, we consider actions to further mitigate our exposure to the change. However; due to the uncertainty of the actions that would be taken and their possible effects, the sensitivity analysis assumes no changes in our capital structure. would taking specific" } ]
{ "filename": "NYSE_ARE_1998.pdf", "page": 33 }
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[ consolidated Balance Sheets ] ALEXANDRIA REAL ESIATE EQUITIES , INC AND SuBSidiaries
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false, "ocr_confidence": 1, "text": "and 1997, respectively" }, { "bbox": [ 0.7558083656425648, 0.5732323232323232, 0.7837562634074828, 0.585016835016835 ], "ocr": false, "ocr_confidence": 1, "text": "126" }, { "bbox": [ 0.9089142403547242, 0.5757575757575758, 0.9332167601503051, 0.5867003367003367 ], "ocr": false, "ocr_confidence": 1, "text": "II4" }, { "bbox": [ 0.11118402806478245, 0.5883838383838383, 0.27522603668495327, 0.6039562289562289 ], "ocr": false, "ocr_confidence": 1, "text": "Additional paid-in capital" }, { "bbox": [ 0.7260377788929782, 0.5896464646464646, 0.7855789523921514, 0.6047979797979798 ], "ocr": false, "ocr_confidence": 1, "text": "199,643" }, { "bbox": [ 0.8846117205591434, 0.5925925925925926, 0.9344318861400841, 0.6043771043771043 ], "ocr": false, "ocr_confidence": 1, "text": "173,735" }, { "bbox": [ 0.11057646506989292, 0.6052188552188552, 0.3681831749030501, 0.6212121212121212 ], "ocr": false, "ocr_confidence": 1, "text": "Retained earnings (accumulated deficit)" }, { "bbox": [ 0.8852192835540329, 0.6056397306397306, 0.9405075160889793, 0.6224747474747475 ], "ocr": false, "ocr_confidence": 1, "text": "(6,932)" }, { "bbox": [ 0.08870419725387015, 0.6228956228956228, 0.25274620587404095, 0.6363636363636364 ], "ocr": false, "ocr_confidence": 1, "text": "Total stockholders' equity" }, { "bbox": [ 0.7229999639185307, 0.6224747474747475, 0.7843638264023722, 0.638047138047138 ], "ocr": false, "ocr_confidence": 1, "text": "199,769" }, { "bbox": [ 0.8754982756358005, 0.6216329966329966, 0.9344318861400841, 0.638047138047138 ], "ocr": false, "ocr_confidence": 1, "text": "166,917" }, { "bbox": [ 0.08870419725387015, 0.6397306397306397, 0.34266552911769016, 0.6531986531986532 ], "ocr": false, "ocr_confidence": 1, "text": "Total liabilities and stockholders' equity" }, { "bbox": [ 0.7102411410258507, 0.6393097643097643, 0.7855789523921514, 0.6544612794612795 ], "ocr": false, "ocr_confidence": 1, "text": "$ 530,296" }, { "bbox": [ 0.8572713857891149, 0.6393097643097643, 0.9338243231451947, 0.6544612794612795 ], "ocr": false, "ocr_confidence": 1, "text": "$ 248,454" }, { "bbox": [ 0.08931176024875967, 0.6561447811447811, 0.239987382981361, 0.6721380471380471 ], "ocr": false, "ocr_confidence": 1, "text": "See accompanying notes." }, { "bbox": [ 0.7376747373401848, 0.2719368280704067, 0.7812327498836189, 0.2886692325356539 ], "ocr": false, "ocr_confidence": 1, "text": "21,839" }, { "bbox": [ 0.7394831344905827, 0.3220239590853113, 0.7806394787230002, 0.3383295762682241 ], "ocr": false, "ocr_confidence": 1, "text": "6,000" }, { "bbox": [ 0.7245060758983963, 0.3760160763276627, 0.7834652774173961, 0.38534756003597365 ], "ocr": false, "ocr_confidence": 1, "text": "530,296" }, { "bbox": [ 0.5263956746425382, 0.40838877094906867, 0.5708630941279377, 0.4211566835963859 ], "ocr": false, "ocr_confidence": 1, "text": "1998)" }, { "bbox": [ 0.2044321522729659, 0.42567937599096245, 0.24698715292994858, 0.4350108596992732 ], "ocr": false, "ocr_confidence": 1, "text": "credit" }, { "bbox": [ 0.8915440162628774, 0.45978788092928646, 0.9341827833801348, 0.46866329752189195 ], "ocr": false, "ocr_confidence": 1, "text": "4,562" }, { "bbox": [ 0.8901730490574549, 0.4726944038279824, 0.9313008096213309, 0.4894268082932297 ], "ocr": false, "ocr_confidence": 1, "text": "81,537" }, { "bbox": [ 0.2361344367126016, 0.5754699993379631, 0.2754336049843755, 0.5861461622781985 ], "ocr": false, "ocr_confidence": 1, "text": "1998" } ]
[ { "bbox": [ 0.2825167926236275, 0.03745793814610953, 0.7466949021778708, 0.05513470582287721 ], "data": [], "index_in_doc": 272, "label": "text", "text": "[ consolidated Balance Sheets ]" }, { "bbox": [ 0.3250461929952184, 0.06776096844913984, 0.7015364031061806, 0.07870367801550662 ], "data": [], "index_in_doc": 273, "label": "section_header", "text": "ALEXANDRIA REAL ESIATE EQUITIES , INC AND SuBSidiaries" }, { "bbox": [ 0.08727635793054936, 0.20353228636462278, 0.9447182569379604, 0.6721380599821457 ], "data": [ { "html_seq": "<table><tr><td></td><th colspan=\"2\">DECFMBER 3I</th></tr><tr><td>(Dollars in thousands, except per share amounts)</td><th>1998</th><th>1997</th></tr><tr><td>AsseTs</td><td></td><td></td></tr><tr><td>Rental properties, net</td><td>5 471,907</td><td>5 227,076</td></tr><tr><td>Land under development</td><td>21,839</td><td>2,894</td></tr><tr><td>Cash and cash equivalents</td><td>1,554</td><td>2,060</td></tr><tr><td>Tenant security deposits and other restricted cash</td><td>7,491</td><td>6,799</td></tr><tr><td>Secured note receivable</td><td>6,000</td><td></td></tr><tr><td>Tenant receivables and deferred rent</td><td>8,479</td><td>3,630</td></tr><tr><td>Other assets</td><td>13,026</td><td>5,995</td></tr><tr><td>Total assets</td><td>5 530,296</td><td>5 248,454</td></tr><tr><td>LiABILITIES AnD StocKHOldeRs' Equity</td><td></td><td></td></tr><tr><td>Secured notes payable (includes unamortized premium of $2,262 in 1998)</td><td>$ II5,829</td><td>5 47,817</td></tr><tr><td>Unsecured line of credit</td><td>194,000</td><td>23,000</td></tr><tr><td>Accounts payable, accrued expenses and tenant security deposits</td><td>15, 663</td><td>6,158</td></tr><tr><td>Dividends payable</td><td>5,035</td><td>4,562</td></tr><tr><td></td><td>330,527</td><td>81,537</td></tr><tr><td>Commitments and contingencies</td><td></td><td></td></tr><tr><td>Stockholders' equity:</td><td></td><td></td></tr><tr><td>Common stock, So.O1 par value per share, Ioo,000,000 shares authorized; 12,586,263 and 11,404,631 shares issued and outstanding at December 31, and 1997, respectively 1998</td><td>126</td><td>II4</td></tr><tr><td>Additional paid-in capital</td><td>199,643</td><td>173,735</td></tr><tr><td>Retained earnings (accumulated deficit)</td><td></td><td>(6,932)</td></tr><tr><td>Total stockholders' equity</td><td>199,769</td><td>166,917</td></tr><tr><td>Total liabilities and stockholders' equity</td><td>$ 530,296</td><td>$ 248,454</td></tr><tr><td>See accompanying notes.</td><td></td><td></td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 274, "label": "table", "text": "" } ]
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[ GonSolidated StaTeMenTS Of Operations ] ALEXANDRIA REAl ESTATE EQUITIES, [NC. AnD SUBSIDIARIES See accompanying notes. 34
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[ { "bbox": [ 0.16221931963550226, 0.03745793814610953, 0.7819335744228142, 0.05513470582287721 ], "data": [], "index_in_doc": 275, "label": "text", "text": "[ GonSolidated StaTeMenTS Of Operations ]" }, { "bbox": [ 0.2819092388994136, 0.06818181818181818, 0.6598134124500203, 0.0791246048127762 ], "data": [], "index_in_doc": 276, "label": "section_header", "text": "ALEXANDRIA REAl ESTATE EQUITIES, [NC. AnD SUBSIDIARIES" }, { "bbox": [ 0.044518342699126044, 0.20420660153783934, 0.9051231644479529, 0.7303039859039615 ], "data": [ { "html_seq": "<table><tr><td></td><th colspan=\"3\">YEAR ENDED DECEMBER 31</th></tr><tr><td>(Dollars in thousands, except per share amounts)</td><th>1998</th><th>1997</th><th>1996</th></tr><tr><td>REVENUES:</td><td></td><td></td><td></td></tr><tr><td>Rental</td><td>48,469</td><td>25,622</td><td>12,941</td></tr><tr><td>Tenant recoveries</td><td>Il,313</td><td>8,388</td><td>4,169</td></tr><tr><td>Interest and other income</td><td>1,234</td><td>836</td><td>563</td></tr><tr><td></td><td>61,016</td><td>34,846</td><td>17 , ,673</td></tr><tr><td>EXPCNSES:</td><td></td><td></td><td></td></tr><tr><td>Rental operations</td><td>13,390</td><td>8,766</td><td>4,356</td></tr><tr><td>General and administrative</td><td>3,894</td><td>2,476</td><td>1,972</td></tr><tr><td>Interest</td><td>14,033</td><td>7,043</td><td>6,327</td></tr><tr><td>Stock compensation</td><td></td><td>4.239</td><td></td></tr><tr><td>Post retirement benefit</td><td></td><td>632</td><td>438</td></tr><tr><td>Special bonus</td><td></td><td>353</td><td></td></tr><tr><td>Acquisition LLC financing costs</td><td></td><td>6,973</td><td></td></tr><tr><td>Write-off of unamortized loan costs</td><td></td><td>2,295</td><td></td></tr><tr><td>Depreciation and amortization</td><td>10,296</td><td>4.866</td><td>2,405</td></tr><tr><td></td><td>41,613</td><td>37,643</td><td>15,498</td></tr><tr><td>Net income (loss)</td><td>19,403</td><td>5 (2,797)</td><td>5 2,175</td></tr><tr><td>Net income allocated to preferred stockholders</td><td>5</td><td>5 3,038</td><td>5 1,590</td></tr><tr><td>Net income (loss) allocated to common stockholders</td><td>5 19,403</td><td>5 (5,835)</td><td>$ 585</td></tr><tr><td>Net income (loss) per share of common stock (pro forma for 1997,</td><td></td><td></td><td></td></tr><tr><td>forma and restated for 1996): pro</td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>5 1.60</td><td>5 (0.35)</td><td>5o.60</td></tr><tr><td>Diluted</td><td>5 1.58</td><td>5 (0.35)</td><td>5 0.60</td></tr><tr><td>Weighted average shares of common stock outstanding (pro forma</td><td></td><td></td><td></td></tr><tr><td>for 1997, pro forma and restated for 1996):</td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>12,098,959</td><td>8,075.864</td><td>3,642,131</td></tr><tr><td>Diluted</td><td>12,306,470</td><td>8,075.864</td><td>3,642,131</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 277, "label": "table", "text": "" }, { "bbox": [ 0.050634235192070415, 0.745791252213295, 0.19928066695910085, 0.7584175148395577 ], "data": [], "index_in_doc": 278, "label": "text", "text": "See accompanying notes." }, { "bbox": [ 0.4623554483816015, 0.9591750857805965, 0.48665795890650676, 0.9768518510490957 ], "data": [], "index_in_doc": 279, "label": "text", "text": "34" } ]
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[ €onsolidaTed Starements 0f Gash Flows ] ALEXANDRIA REAL ESTATE EQUITIES, InC. AnD SUBSIDIARIES 35
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[ conSolidaTed STaTEMEnTs Of Stockholders' Equity ] ALEXANDRIA REAL ESTATE EQUITIES , INC And SuBSidiaRIES See accompanying notes. 36
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[ NoTes 7o Gonsolidaed Financial Statements ] ALEXANDRia REAl ESTATE EQUities INC And SUBSIDIARIES One BaCKGRoUnd Alexandria Real Estate Equities, Inc. is a real estate investment trust ("REIT") formed in 1994. We are engaged primarily in the acquisition; management, and selective development of properties for lease principally to participants in the life science industry (we refer to these properties as "Life Science Facilities") As of December 31, our portfolio consisted of 51 properties in nine states with approximately 3,588,000 rentable square feet, compared to 22 properties in four states with approximately 1,748,000 rentable square feet as of December 31, I997. 1998, On June 2, 1997, we completed our initial offering 'Offering") of 6,750,000 shares of common stock The Offering was S2o.00 per share, resulting in gross proceeds of 5135,000,000. On June 26, 1997, the underwriters exercised their over-allotment provided for in the Offering, and we issued an additional 1,012,500 shares of common stock, resulting in additional proceeds of $20,250,000. The aggregate net proceeds of the Offering (including exercise of the over-allotment option) , net of underwriting discounts and commissions, advisory fees and offering costs, were approximately S138,890,000. public (the price option gross The following transactions also occurred in June 1997 in connection with the Offering: - We debt of approximately $77,723,000, including mortgage debt of 572,698,000, (ii) debt of $2,500,000 outstanding under our unsecured of credit, and (iii) debt of $2,525,000 to Health Science Properties Corporation ("Holdings"). Holdings owned all of our common stock to the Offering and 14% of our common stock as of December 31, 1998. repaid line Holding prior prior - We obtained two new mortgage loans totaling S15,360,000 - We acquired an entity that owns three Life Science Facilities from affiliates of PaineWebber Incorporated, the lead managing underwriter for the Offering; for an aggregate purchase of S58,844,000 (see Note I2). price - Each previously outstanding share of our common stock was split into 1,765.923 shares of common stock. The share data as of and for the year ended December 31, 1996 has been restated to reflect the effects of the stock split. - All of the previously outstanding shares of Series T preferred stock were redeemed at their stated value (SI,200 in the aggregate) (see Note 9) 38
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We are engaged primarily in the" }, { "bbox": [ 0.05468066954005694, 0.3922558922558923, 0.8803587795949167, 0.40824915824915825 ], "ocr": false, "ocr_confidence": 1, "text": "acquisition; management, and selective development of properties for lease principally to participants in the life science industry" }, { "bbox": [ 0.05528823253494646, 0.41035353535353536, 0.5474142583954589, 0.4255050505050505 ], "ocr": false, "ocr_confidence": 1, "text": "(we refer to these properties as \"Life Science Facilities\") As of December 31," }, { "bbox": [ 0.5887285420479463, 0.41372053872053877, 0.6130310618435272, 0.4221380471380471 ], "ocr": false, "ocr_confidence": 1, "text": "our" }, { "bbox": [ 0.6118159358537483, 0.4090909090909091, 0.8560562597993359, 0.4255050505050505 ], "ocr": false, "ocr_confidence": 1, "text": "portfolio consisted of 51 properties in" }, { "bbox": [ 0.05528823253494646, 0.4259259259259259, 0.8426898739117663, 0.4423400673400673 ], "ocr": false, "ocr_confidence": 1, "text": "nine states with approximately 3,588,000 rentable square feet, compared to 22 properties in four states with approximately" }, { "bbox": [ 0.05407310654516742, 0.4431818181818182, 0.41618065149932226, 0.460016835016835 ], "ocr": false, "ocr_confidence": 1, "text": "1,748,000 rentable square feet as of December 31, I997." }, { "bbox": [ 0.05711092151961502, 0.4797979797979798, 0.18955965440553071, 0.4932659932659933 ], "ocr": false, "ocr_confidence": 1, "text": "On June 2, 1997, we" }, { "bbox": [ 0.18712940242597265, 0.4789562289562289, 0.32626132825567306, 0.49452861952861954 ], "ocr": false, "ocr_confidence": 1, "text": "completed our initial" }, { "bbox": [ 0.3663604859183815, 0.47811447811447816, 0.4252940964226651, 0.4941077441077441 ], "ocr": false, "ocr_confidence": 1, "text": "offering" }, { "bbox": [ 0.4574949351518097, 0.47769360269360267, 0.873675586651132, 0.49537037037037035 ], "ocr": false, "ocr_confidence": 1, "text": "'Offering\") of 6,750,000 shares of common stock The Offering" }, { "bbox": [ 0.0905268862385387, 0.494949494949495, 0.8584865117788939, 0.5117845117845118 ], "ocr": false, "ocr_confidence": 1, "text": "was S2o.00 per share, resulting in gross proceeds of 5135,000,000. On June 26, 1997, the underwriters exercised their" }, { "bbox": [ 0.05711092151961502, 0.5138888888888888, 0.15067562273260135, 0.5260942760942762 ], "ocr": false, "ocr_confidence": 1, "text": "over-allotment" }, { "bbox": [ 0.19259746937997835, 0.5122053872053872, 0.8706377716766844, 0.5286195286195287 ], "ocr": false, "ocr_confidence": 1, "text": "provided for in the Offering, and we issued an additional 1,012,500 shares of common stock, resulting in" }, { "bbox": [ 0.055895795529835986, 0.5311447811447811, 0.12272772496768335, 0.5429292929292929 ], "ocr": false, "ocr_confidence": 1, "text": "additional" }, { "bbox": [ 0.1579663786712756, 0.5311447811447811, 0.3268688912505626, 0.5450336700336701 ], "ocr": false, "ocr_confidence": 1, "text": "proceeds of $20,250,000." }, { "bbox": [ 0.33112183221478925, 0.5307239057239057, 0.5522747623545751, 0.5458754208754208 ], "ocr": false, "ocr_confidence": 1, "text": "The aggregate net proceeds of the" }, { "bbox": [ 0.549844510375017, 0.5290404040404041, 0.8730680236562425, 0.5462962962962963 ], "ocr": false, "ocr_confidence": 1, "text": "Offering (including exercise of the over-allotment" }, { "bbox": [ 0.0565033585247255, 0.5467171717171717, 0.8572713857891149, 0.5631313131313131 ], "ocr": false, "ocr_confidence": 1, "text": "option) , net of underwriting discounts and commissions, advisory fees and offering costs, were approximately S138,890,000." }, { "bbox": [ 0.0565033585247255, 0.5812289562289562, 0.6136386248384168, 0.5980639730639731 ], "ocr": false, "ocr_confidence": 1, "text": "The following transactions also occurred in June 1997 in connection with the Offering:" }, { "bbox": [ 0.05832604750939407, 0.6178451178451179, 0.08141344131519589, 0.6287878787878788 ], "ocr": false, "ocr_confidence": 1, "text": "We" }, { "bbox": [ 0.12212016197279384, 0.61489898989899, 0.41800334048399085, 0.6317340067340067 ], "ocr": false, "ocr_confidence": 1, "text": "debt of approximately $77,723,000, including" }, { "bbox": [ 0.4331924153562288, 0.6144781144781145, 0.873675586651132, 0.6325757575757576 ], "ocr": false, "ocr_confidence": 1, "text": "mortgage debt of 572,698,000, (ii) debt of $2,500,000 outstanding" }, { "bbox": [ 0.05711092151961502, 0.6355218855218855, 0.1239428509574624, 0.6464646464646465 ], "ocr": false, "ocr_confidence": 1, "text": "under our" }, { "bbox": [ 0.15735881567638607, 0.63510101010101, 0.22844368607846008, 0.6477272727272727 ], "ocr": false, "ocr_confidence": 1, "text": "unsecured" }, { "bbox": [ 0.2557840208484886, 0.6338383838383839, 0.6822932432609327, 0.6502525252525253 ], "ocr": false, "ocr_confidence": 1, "text": "of credit, and (iii) debt of $2,525,000 to Health Science Properties" }, { "bbox": [ 0.7400117277754372, 0.6355218855218855, 0.8202100431008541, 0.6481481481481483 ], "ocr": false, "ocr_confidence": 1, "text": "Corporation" }, { "bbox": [ 0.0565033585247255, 0.6502525252525253, 0.41618065149932226, 0.6658249158249159 ], "ocr": false, "ocr_confidence": 1, "text": "(\"Holdings\"). Holdings owned all of our common stock" }, { "bbox": [ 0.450811742208025, 0.6523569023569024, 0.49212602586051246, 0.6632996632996634 ], "ocr": false, "ocr_confidence": 1, "text": "to the" }, { "bbox": [ 0.4903033368758439, 0.6502525252525253, 0.8767134016255795, 0.6666666666666666 ], "ocr": false, "ocr_confidence": 1, "text": "Offering and 14% of our common stock as of December 31," }, { "bbox": [ 0.055895795529835986, 0.6691919191919192, 0.09356470121298632, 0.6818181818181818 ], "ocr": false, "ocr_confidence": 1, "text": "1998." }, { "bbox": [ 0.05711092151961502, 0.7037037037037037, 0.2964907415060865, 0.7171717171717171 ], "ocr": false, "ocr_confidence": 1, "text": "We obtained two new mortgage loans" }, { "bbox": [ 0.2946680525214179, 0.7011784511784512, 0.4344075413460079, 0.718013468013468 ], "ocr": false, "ocr_confidence": 1, "text": "totaling S15,360,000" }, { "bbox": [ 0.0565033585247255, 0.7361111111111112, 0.8548411338095568, 0.752104377104377 ], "ocr": false, "ocr_confidence": 1, "text": "We acquired an entity that owns three Life Science Facilities from affiliates of PaineWebber Incorporated, the lead managing" }, { "bbox": [ 0.0565033585247255, 0.7533670033670034, 0.41132014754020607, 0.7693602693602694 ], "ocr": false, "ocr_confidence": 1, "text": "underwriter for the Offering; for an aggregate purchase" }, { "bbox": [ 0.4453436752540193, 0.7533670033670034, 0.6409789596084453, 0.7702020202020202 ], "ocr": false, "ocr_confidence": 1, "text": "of S58,844,000 (see Note I2)." }, { "bbox": [ 0.0565033585247255, 0.7874579124579124, 0.8694226456869053, 0.8034511784511785 ], "ocr": false, "ocr_confidence": 1, "text": "Each previously outstanding share of our common stock was split into 1,765.923 shares of common stock. The share data as of" }, { "bbox": [ 0.0565033585247255, 0.8068181818181818, 0.6519150935164566, 0.821969696969697 ], "ocr": false, "ocr_confidence": 1, "text": "and for the year ended December 31, 1996 has been restated to reflect the effects of the stock" }, { "bbox": [ 0.0565033585247255, 0.8388047138047139, 0.8791436536051377, 0.8556397306397306 ], "ocr": false, "ocr_confidence": 1, "text": "All of the previously outstanding shares of Series T preferred stock were redeemed at their stated value (SI,200 in the aggregate)" }, { "bbox": [ 0.05711092151961502, 0.8594276094276094, 0.140954614814369, 0.872895622895623 ], "ocr": false, "ocr_confidence": 1, "text": "(see Note 9)" }, { "bbox": [ 0.4696461950496002, 0.954124579124579, 0.4927335888554019, 0.9718013468013468 ], "ocr": false, "ocr_confidence": 1, "text": "38" }, { "bbox": [ 0.5453139563845385, 0.4130376802069173, 0.5883985920793088, 0.42282090565166863 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.3241610262447526, 0.48079862296785997, 0.36967591391908106, 0.4905818484126114 ], "ocr": false, "ocr_confidence": 1, "text": "public" }, { "bbox": [ 0.42262249654522377, 0.48036416049362546, 0.45348334208546626, 0.4905954354659705 ], "ocr": false, "ocr_confidence": 1, "text": "(the" }, { "bbox": [ 0.05427718659749324, 0.49979118228829394, 0.09214549517088146, 0.508205450708339 ], "ocr": false, "ocr_confidence": 1, "text": "price" }, { "bbox": [ 0.1497904467114599, 0.5161521583213953, 0.1946977713908988, 0.5259353837661468 ], "ocr": false, "ocr_confidence": 1, "text": "option" }, { "bbox": [ 0.12171667903023013, 0.5343029668000785, 0.16080011359339738, 0.5427172352201236 ], "ocr": false, "ocr_confidence": 1, "text": "gross" }, { "bbox": [ 0.07805904933594546, 0.6192820695936561, 0.12486699095715474, 0.6286135533019669 ], "ocr": false, "ocr_confidence": 1, "text": "repaid" }, { "bbox": [ 0.22783064943250844, 0.6334910666099393, 0.2551819315046612, 0.647653714534842 ], "ocr": false, "ocr_confidence": 1, "text": "line" }, { "bbox": [ 0.6836403762394729, 0.6317777398236175, 0.7374494688071179, 0.6497879167420391 ], "ocr": false, "ocr_confidence": 1, "text": "Holding" }, { "bbox": [ 0.12248637706980017, 0.6360880662175312, 0.15942285255893784, 0.6463193411898762 ], "ocr": false, "ocr_confidence": 1, "text": "prior" }, { "bbox": [ 0.41404138550985087, 0.6537938541054406, 0.4511283192128278, 0.6631253378137514 ], "ocr": false, "ocr_confidence": 1, "text": "prior" }, { "bbox": [ 0.4092561106576543, 0.7564584365879016, 0.44740771213657105, 0.7666897115602466 ], "ocr": false, "ocr_confidence": 1, "text": "price" }, { "bbox": [ 0.6492072285106465, 0.8082397004089374, 0.6856086712616323, 0.8180229258536889 ], "ocr": false, "ocr_confidence": 1, "text": "split." } ]
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- All of the previously outstanding shares of Series U preferred stock and Series V preferred stock were converted into shares of common stock (7,354 shares in the aggregate for Series U and 1,659,239 shares in the aggregate for Series V) (see Notes 8 and 9) - Officers, directors and certain employees of Alexandria were granted an aggregate of 152,615 shares of our common stock. In addition; our officers, directors and certain employees were granted options to purchase 57,000 shares of our common stock in substitution for stock options previously issued by Holdings (see Notes 8 and II) . These options were exercised at a nominal exercise in connection with the Offering: price - Officers, directors and employees of Alexandria were granted options under the 1997 stock plan to purchase an aggregate of 600,000 shares of our common stock at the Offering (see Note II) . option price - A bonus of 5353,000 was to an officer of Alexandria . special Paid Two BASIS OF Presentation And SuMmaRy Of sicnificant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of Alexandria and its subsidiaries. All significant intercompany balances and transactions have been eliminated. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates . Cash Equivalents We consider all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents . Reclassifications Certain year amounts have been reclassified to conform to the current year presentation. prior Rental Properties and Land Under Development Properties land under development are stated at the lower of cost or estimated fair value. Write-downs to estimated fair value would be recognized when impairment indicators are present and a property's estimated undiscounted future cash fows, before interest charges, are less than its book value. In that situation, we would recognize an impairment loss to the extent the carrying amount exceeds the fair value of the property Based on our assessment, no write-downs to estimated fair value were necessary for the periods presented. and The cost of maintenance and repairs is expensed as incurred. Major replacements and betterments are capitalized and depreciated over their estimated useful lives . Depreciation is provided using the straight-line method estimated lives of 30 to 40 years for buildings and building improvements, 20 years for land improvements, and the term of the respective lease for tenant improvements. using 39
[ { "bbox": [ 0.08688150826920157, 0.03619528619528615, 0.8973705434518233, 0.05176767676767677 ], "ocr": false, "ocr_confidence": 1, "text": "All of the previously outstanding shares of Series U preferred stock and Series V preferred stock were converted into shares of" }, { "bbox": [ 0.08566638227942254, 0.054292929292929296, 0.9070915513700557, 0.06986531986531991 ], "ocr": false, "ocr_confidence": 1, "text": "common stock (7,354 shares in the aggregate for Series U and 1,659,239 shares in the aggregate for Series V) (see Notes 8 and 9)" }, { "bbox": [ 0.08566638227942254, 0.08796296296296291, 0.8876495355335909, 0.10437710437710433 ], "ocr": false, "ocr_confidence": 1, "text": "Officers, directors and certain employees of Alexandria were granted an aggregate of 152,615 shares of our common stock. In" }, { "bbox": [ 0.08505881928453302, 0.10521885521885527, 0.9034461734007185, 0.12121212121212122 ], "ocr": false, "ocr_confidence": 1, "text": "addition; our officers, directors and certain employees were granted options to purchase 57,000 shares of our common stock in" }, { "bbox": [ 0.08566638227942254, 0.12247474747474747, 0.8827890315744747, 0.1384680134680134 ], "ocr": false, "ocr_confidence": 1, "text": "substitution for stock options previously issued by Holdings (see Notes 8 and II) . These options were exercised at a nominal" }, { "bbox": [ 0.08566638227942254, 0.14183501683501687, 0.13913192582970044, 0.15193602693602698 ], "ocr": false, "ocr_confidence": 1, "text": "exercise" }, { "bbox": [ 0.1749781425281822, 0.1414141414141414, 0.3220083872914464, 0.1523569023569023 ], "ocr": false, "ocr_confidence": 1, "text": "in connection with the" }, { "bbox": [ 0.32018569830677784, 0.13930976430976436, 0.3851949387599567, 0.15572390572390576 ], "ocr": false, "ocr_confidence": 1, "text": "Offering:" }, { "bbox": [ 0.08505881928453302, 0.17382154882154877, 0.6713571093529213, 0.19065656565656566 ], "ocr": false, "ocr_confidence": 1, "text": "Officers, directors and employees of Alexandria were granted options under the 1997 stock" }, { "bbox": [ 0.7126713930054088, 0.17424242424242425, 0.9119520553291718, 0.18981481481481485 ], "ocr": false, "ocr_confidence": 1, "text": "plan to purchase an aggregate" }, { "bbox": [ 0.08627394527431206, 0.1923400673400674, 0.3888403167292938, 0.20454545454545456 ], "ocr": false, "ocr_confidence": 1, "text": "of 600,000 shares of our common stock at the" }, { "bbox": [ 0.3870176277446252, 0.19065656565656566, 0.4483814902284669, 0.20749158249158253 ], "ocr": false, "ocr_confidence": 1, "text": "Offering" }, { "bbox": [ 0.4836201439320591, 0.19360269360269364, 0.5698940892063712, 0.20538720538720534 ], "ocr": false, "ocr_confidence": 1, "text": "(see Note II) ." }, { "bbox": [ 0.08809663425898062, 0.22853535353535354, 0.09903276816699201, 0.23779461279461284 ], "ocr": false, "ocr_confidence": 1, "text": "A" }, { "bbox": [ 0.1464226817683747, 0.2268518518518518, 0.2977058674958656, 0.2407407407407407 ], "ocr": false, "ocr_confidence": 1, "text": "bonus of 5353,000 was" }, { "bbox": [ 0.32808401724034164, 0.22727272727272727, 0.5030621597685239, 0.2390572390572391 ], "ocr": false, "ocr_confidence": 1, "text": "to an officer of Alexandria ." }, { "bbox": [ 0.08262856730497493, 0.26978114478114473, 0.2308739380580182, 0.32028619528619523 ], "ocr": false, "ocr_confidence": 1, "text": "Two" }, { "bbox": [ 0.08627394527431206, 0.3291245791245792, 0.6646739164091366, 0.3392255892255893 ], "ocr": false, "ocr_confidence": 1, "text": "BASIS OF Presentation And SuMmaRy Of sicnificant Accounting Policies" }, { "bbox": [ 0.0874890712640911, 0.34427609427609435, 0.2138621742011116, 0.35690235690235694 ], "ocr": false, "ocr_confidence": 1, "text": "Basis of Presentation" }, { "bbox": [ 0.08566638227942254, 0.36026936026936024, 0.8998007954313815, 0.37626262626262624 ], "ocr": false, "ocr_confidence": 1, "text": "The consolidated financial statements include the accounts of Alexandria and its subsidiaries. All significant intercompany bal-" }, { "bbox": [ 0.08627394527431206, 0.3783670033670034, 0.3742588048519453, 0.39057239057239057 ], "ocr": false, "ocr_confidence": 1, "text": "ances and transactions have been eliminated." }, { "bbox": [ 0.08870419725387015, 0.4116161616161616, 0.18834452841575167, 0.42424242424242425 ], "ocr": false, "ocr_confidence": 1, "text": "Use of Estimates" }, { "bbox": [ 0.08566638227942254, 0.42634680134680136, 0.8888646615233701, 0.44360269360269355 ], "ocr": false, "ocr_confidence": 1, "text": "The preparation of financial statements in conformity with generally accepted accounting principles requires us to make esti-" }, { "bbox": [ 0.08566638227942254, 0.44486531986531985, 0.916812559288288, 0.4604377104377105 ], "ocr": false, "ocr_confidence": 1, "text": "mates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities" }, { "bbox": [ 0.08566638227942254, 0.4617003367003367, 0.8949402914722653, 0.47769360269360267 ], "ocr": false, "ocr_confidence": 1, "text": "at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual" }, { "bbox": [ 0.08627394527431206, 0.4797979797979798, 0.3511714110461434, 0.49158249158249157 ], "ocr": false, "ocr_confidence": 1, "text": "results could differ from those estimates ." }, { "bbox": [ 0.0874890712640911, 0.5134680134680135, 0.19320503237486786, 0.5252525252525253 ], "ocr": false, "ocr_confidence": 1, "text": "Cash Equivalents" }, { "bbox": [ 0.08688150826920157, 0.5286195286195287, 0.8390444959424292, 0.5450336700336701 ], "ocr": false, "ocr_confidence": 1, "text": "We consider all highly liquid investments with original maturities of three months or less when purchased to be cash" }, { "bbox": [ 0.08566638227942254, 0.5462962962962963, 0.16525713460994987, 0.5597643097643097 ], "ocr": false, "ocr_confidence": 1, "text": "equivalents ." }, { "bbox": [ 0.0874890712640911, 0.5791245791245792, 0.1859142764361936, 0.5925925925925926 ], "ocr": false, "ocr_confidence": 1, "text": "Reclassifications" }, { "bbox": [ 0.0874890712640911, 0.5976430976430976, 0.13730923684503185, 0.6085858585858586 ], "ocr": false, "ocr_confidence": 1, "text": "Certain" }, { "bbox": [ 0.17133276455884508, 0.5968013468013468, 0.6901915621944965, 0.6102693602693603 ], "ocr": false, "ocr_confidence": 1, "text": "year amounts have been reclassified to conform to the current year presentation." }, { "bbox": [ 0.08688150826920157, 0.6279461279461279, 0.3785117458161719, 0.6439393939393939 ], "ocr": false, "ocr_confidence": 1, "text": "Rental Properties and Land Under Development" }, { "bbox": [ 0.08688150826920157, 0.6473063973063973, 0.154928563696828, 0.6599326599326599 ], "ocr": false, "ocr_confidence": 1, "text": "Properties" }, { "bbox": [ 0.1804462094821879, 0.6456228956228957, 0.6822932432609327, 0.6611952861952861 ], "ocr": false, "ocr_confidence": 1, "text": "land under development are stated at the lower of cost or estimated fair value." }, { "bbox": [ 0.6877613102149384, 0.6464646464646465, 0.8809663425898062, 0.6582491582491583 ], "ocr": false, "ocr_confidence": 1, "text": "Write-downs to estimated fair" }, { "bbox": [ 0.08566638227942254, 0.6628787878787878, 0.902838610405829, 0.6788720538720538 ], "ocr": false, "ocr_confidence": 1, "text": "value would be recognized when impairment indicators are present and a property's estimated undiscounted future cash fows," }, { "bbox": [ 0.08627394527431206, 0.680976430976431, 0.4167882144942118, 0.69486531986532 ], "ocr": false, "ocr_confidence": 1, "text": "before interest charges, are less than its book value." }, { "bbox": [ 0.42164871845332796, 0.680976430976431, 0.900408358426271, 0.69486531986532 ], "ocr": false, "ocr_confidence": 1, "text": "In that situation, we would recognize an impairment loss to the extent the" }, { "bbox": [ 0.08445125628964349, 0.6965488215488215, 0.8888646615233701, 0.7125420875420876 ], "ocr": false, "ocr_confidence": 1, "text": "carrying amount exceeds the fair value of the property Based on our assessment, no write-downs to estimated fair value were" }, { "bbox": [ 0.08505881928453302, 0.7142255892255892, 0.31654032033744073, 0.7293771043771043 ], "ocr": false, "ocr_confidence": 1, "text": "necessary for the periods presented." }, { "bbox": [ 0.08688150826920157, 0.7483164983164983, 0.9107369293393929, 0.7647306397306397 ], "ocr": false, "ocr_confidence": 1, "text": "The cost of maintenance and repairs is expensed as incurred. Major replacements and betterments are capitalized and depreciat-" }, { "bbox": [ 0.08627394527431206, 0.7668350168350169, 0.31471763135277214, 0.7786195286195285 ], "ocr": false, "ocr_confidence": 1, "text": "ed over their estimated useful lives ." }, { "bbox": [ 0.08688150826920157, 0.7992424242424242, 0.4429134232744612, 0.8164983164983165 ], "ocr": false, "ocr_confidence": 1, "text": "Depreciation is provided using the straight-line method" }, { "bbox": [ 0.48118989195250106, 0.8013468013468013, 0.7144940819900774, 0.8148148148148149 ], "ocr": false, "ocr_confidence": 1, "text": "estimated lives of 30 to 40 years for" }, { "bbox": [ 0.7126713930054088, 0.7988215488215488, 0.8663848307124576, 0.8164983164983165 ], "ocr": false, "ocr_confidence": 1, "text": "buildings and building" }, { "bbox": [ 0.08505881928453302, 0.8181818181818182, 0.7940848343206047, 0.8337542087542088 ], "ocr": false, "ocr_confidence": 1, "text": "improvements, 20 years for land improvements, and the term of the respective lease for tenant improvements." }, { "bbox": [ 0.4963789668247391, 0.9591750841750841, 0.519466360630541, 0.9768518518518517 ], "ocr": false, "ocr_confidence": 1, "text": "39" }, { "bbox": [ 0.1388153488248976, 0.14285109316267952, 0.17529471953298503, 0.15218257687099046 ], "ocr": false, "ocr_confidence": 1, "text": "price" }, { "bbox": [ 0.6686492443471113, 0.17776831993755693, 0.7147716950163293, 0.18755154538230828 ], "ocr": false, "ocr_confidence": 1, "text": "option" }, { "bbox": [ 0.44631745334591516, 0.19416887429833918, 0.48386149182994237, 0.20440014927068434 ], "ocr": false, "ocr_confidence": 1, "text": "price" }, { "bbox": [ 0.09988943392183076, 0.22956902571043128, 0.147996267993094, 0.23844444230303669 ], "ocr": false, "ocr_confidence": 1, "text": "special" }, { "bbox": [ 0.2949590385115046, 0.22913055444214084, 0.3296157202349235, 0.23846203815045178 ], "ocr": false, "ocr_confidence": 1, "text": "Paid" }, { "bbox": [ 0.13456240786067095, 0.5986591739707604, 0.17225690455853745, 0.6079906576790712 ], "ocr": false, "ocr_confidence": 1, "text": "prior" }, { "bbox": [ 0.15278929770735658, 0.6479015982131847, 0.1825854754716593, 0.6572330819214955 ], "ocr": false, "ocr_confidence": 1, "text": "and" }, { "bbox": [ 0.44361424781365644, 0.7997146058481844, 0.48109663040819534, 0.8164470103134317 ], "ocr": false, "ocr_confidence": 1, "text": "using" } ]
[ { "bbox": [ 0.064118472225297, 0.036195311883483273, 0.9070915328287045, 0.0698652941771228 ], "data": [], "index_in_doc": 303, "label": "text", "text": "- All of the previously outstanding shares of Series U preferred stock and Series V preferred stock were converted into shares of common stock (7,354 shares in the aggregate for Series U and 1,659,239 shares in the aggregate for Series V) (see Notes 8 and 9)" }, { "bbox": [ 0.06450117961930231, 0.08796298865116003, 0.9034863154259851, 0.15572388003570864 ], "data": [], "index_in_doc": 304, "label": "text", "text": "- Officers, directors and certain employees of Alexandria were granted an aggregate of 152,615 shares of our common stock. In addition; our officers, directors and certain employees were granted options to purchase 57,000 shares of our common stock in substitution for stock options previously issued by Holdings (see Notes 8 and II) . These options were exercised at a nominal exercise in connection with the Offering: price" }, { "bbox": [ 0.06400017376954309, 0.1738215745097459, 0.911952073870523, 0.2074915568033854 ], "data": [], "index_in_doc": 305, "label": "text", "text": "- Officers, directors and employees of Alexandria were granted options under the 1997 stock plan to purchase an aggregate of 600,000 shares of our common stock at the Offering (see Note II) . option price" }, { "bbox": [ 0.06418707754226677, 0.22685187754004893, 0.5030621597685239, 0.24074076642893782 ], "data": [], "index_in_doc": 306, "label": "text", "text": "- A bonus of 5353,000 was to an officer of Alexandria . special Paid" }, { "bbox": [ 0.08262856498730603, 0.26978117046934186, 0.2308739334226804, 0.32028622097439235 ], "data": [], "index_in_doc": 307, "label": "section_header", "text": "Two" }, { "bbox": [ 0.0858752366942536, 0.3291246048127762, 0.6654808916357777, 0.3392256149137863 ], "data": [], "index_in_doc": 308, "label": "section_header", "text": "BASIS OF Presentation And SuMmaRy Of sicnificant Accounting Policies" }, { "bbox": [ 0.08715938054606578, 0.34427611996429136, 0.21386217883644937, 0.3574825248332939 ], "data": [], "index_in_doc": 309, "label": "section_header", "text": "Basis of Presentation" }, { "bbox": [ 0.08532350170771406, 0.3602693731134588, 0.9007493894982009, 0.3908869040132773 ], "data": [], "index_in_doc": 310, "label": "text", "text": "The consolidated financial statements include the accounts of Alexandria and its subsidiaries. All significant intercompany balances and transactions have been eliminated." }, { "bbox": [ 0.08811841571125865, 0.4116161616161616, 0.18834453305108947, 0.42424242424242425 ], "data": [], "index_in_doc": 311, "label": "section_header", "text": "Use of Estimates" }, { "bbox": [ 0.08552375525327467, 0.4263467885027028, 0.9172097150301867, 0.49238420736910116 ], "data": [], "index_in_doc": 312, "label": "text", "text": "The preparation of financial statements in conformity with generally accepted accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates ." }, { "bbox": [ 0.08747946916185788, 0.513229716907848, 0.19320503237486786, 0.5252525252525253 ], "data": [], "index_in_doc": 313, "label": "section_header", "text": "Cash Equivalents" }, { "bbox": [ 0.08566638227942254, 0.5286195157754301, 0.8390445144837804, 0.5598366862595684 ], "data": [], "index_in_doc": 314, "label": "text", "text": "We consider all highly liquid investments with original maturities of three months or less when purchased to be cash equivalents ." }, { "bbox": [ 0.0874890712640911, 0.5791245662804806, 0.1859142764361936, 0.5925926054366911 ], "data": [], "index_in_doc": 315, "label": "section_header", "text": "Reclassifications" }, { "bbox": [ 0.08646809176233355, 0.5968013339572482, 0.6901915436531453, 0.6102693731134589 ], "data": [], "index_in_doc": 316, "label": "text", "text": "Certain year amounts have been reclassified to conform to the current year presentation. prior" }, { "bbox": [ 0.08688151058687048, 0.6279461407902265, 0.3785117550868475, 0.6439393939393939 ], "data": [], "index_in_doc": 317, "label": "section_header", "text": "Rental Properties and Land Under Development" }, { "bbox": [ 0.0844512539719746, 0.6456229084669941, 0.9028386289471801, 0.7293771107991537 ], "data": [], "index_in_doc": 318, "label": "text", "text": "Properties land under development are stated at the lower of cost or estimated fair value. Write-downs to estimated fair value would be recognized when impairment indicators are present and a property's estimated undiscounted future cash fows, before interest charges, are less than its book value. In that situation, we would recognize an impairment loss to the extent the carrying amount exceeds the fair value of the property Based on our assessment, no write-downs to estimated fair value were necessary for the periods presented. and" }, { "bbox": [ 0.08600767756560662, 0.7483165047385476, 0.9107369107980416, 0.7787411622326783 ], "data": [], "index_in_doc": 319, "label": "text", "text": "The cost of maintenance and repairs is expensed as incurred. Major replacements and betterments are capitalized and depreciated over their estimated useful lives ." }, { "bbox": [ 0.0850588216022019, 0.7988215552435981, 0.8663848492538089, 0.8337542023321595 ], "data": [], "index_in_doc": 320, "label": "text", "text": "Depreciation is provided using the straight-line method estimated lives of 30 to 40 years for buildings and building improvements, 20 years for land improvements, and the term of the respective lease for tenant improvements. using" }, { "bbox": [ 0.49637898536609026, 0.9591750857805965, 0.519466360630541, 0.9768518510490957 ], "data": [], "index_in_doc": 321, "label": "page_footer", "text": "39" } ]
{ "filename": "NYSE_ARE_1998.pdf", "page": 40 }
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Restricted Cash Restricted cash consists of the following (in thousands): Loan Fees and Costs Fees and costs incurred in obtaining term financing are amortized over the terms of the related loans and included in interest expense. Loan fees and costs, net of related amortization, totaled $3,424,000 and $1,350,000 as of December 31, 1998 and 1997, respectively. long Rental Income Rental income from leases with scheduled rent increases, rent and other rent adjustments are recognized on a straight-line basis over the respective lease term. We incude amounts currently recognized as income, and expected to be received in later years, in tenant receivables and deferred rent on our consolidated balance sheet. Amounts received currently but recognized as income in future years, are included in uncarned rent on our consolidated balance sheet. free Other Income Other income consists of interest income and other income associated with the operations of the properties. Interest income was 5978,000,S588,000 and S18,00o in 1998, 1997 and 1996, respectively. Commissions Leasing Leasing commissions are amortized on a straight-line basis over the term of the related lease. Leasing commissions, net of related amortization, totaled 54,856,000 and 8847,000 as of December 31, and 1997, respectively 1998 Fair Value of Financial Instruments The carrying amount of cash and cash equivalents approximates fair value because their maturity is less than three months. The carrying amount of our secured note receivable approximates fair value because the applicable interest rate approximates the market rate for this loan. The fair value of our secured notes payable was estimated discounted cash flows analyses based on borrowing rates we believe we could obtain with similar terms and maturities. As of December 31, 1998 and 1997, the fair value of our secured notes payable was approximately SI8,310,000 and 546,822,000, respectively. using Net Income (Loss) Per Share Historical per share data has not been presented for 1997 and because it is not meaningful due to the material changes in our capital structure as a result of the Offering: Instead, we have presented net income (loss) per share for these years on a forma basis, giving effect to the Offering and related transactions. 1996 pro Pro forma shares of common stock outstanding for the years ended December 31, 1997 and incude all shares outstanding after giving effect to the 1,765.923 to 1 stock split, the issuance of stock grants, the issuance and exercise of substitute stock options and the conversion of the Series U and Series V preferred stock. In addition; shares issued to the public in connection with the Offering have been weighted for the period of time were outstanding: 1996 they 40
[ { "bbox": [ 0.04982016558094077, 0.03619528619528615, 0.14216974080414804, 0.04713804713804719 ], "ocr": false, "ocr_confidence": 1, "text": "Restricted Cash" }, { "bbox": [ 0.0479974765962722, 0.05092592592592597, 0.40524451759131086, 0.06691919191919192 ], "ocr": false, "ocr_confidence": 1, "text": "Restricted cash consists of the following (in thousands):" }, { "bbox": [ 0.7108487040207402, 0.08333333333333333, 0.788616767366599, 0.09343434343434344 ], "ocr": false, "ocr_confidence": 1, "text": "DECEM BER 31" }, { "bbox": [ 0.7084184520411821, 0.09848484848484848, 0.7412268537652164, 0.11026936026936032 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.8578789487840045, 0.10016835016835021, 0.8906873505080386, 0.11026936026936032 ], "ocr": false, "ocr_confidence": 1, "text": "1997" }, { "bbox": [ 0.04982016558094077, 0.11447811447811443, 0.3365898991687949, 0.12836700336700332 ], "ocr": false, "ocr_confidence": 1, "text": "Reserve for tenant improvements established" }, { "bbox": [ 0.0619714254787312, 0.1296296296296296, 0.3365898991687949, 0.14562289562289568 ], "ocr": false, "ocr_confidence": 1, "text": "pursuant to leases at two of our properties" }, { "bbox": [ 0.6701419833631423, 0.1317340067340068, 0.6810781172711536, 0.14099326599326595 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.7011276961025079, 0.13299663299663306, 0.7412268537652164, 0.14393939393939395 ], "ocr": false, "ocr_confidence": 1, "text": "3,220" }, { "bbox": [ 0.8196024801059646, 0.1317340067340068, 0.8293234880241969, 0.14099326599326595 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.8511957558402197, 0.13005050505050506, 0.8925100394927071, 0.1452020202020202 ], "ocr": false, "ocr_confidence": 1, "text": "3,364" }, { "bbox": [ 0.0479974765962722, 0.146043771043771, 0.31167981637832454, 0.16119528619528614 ], "ocr": false, "ocr_confidence": 1, "text": "Funds held in trust as additional security" }, { "bbox": [ 0.06136386248384167, 0.16287878787878787, 0.3153251943476617, 0.17887205387205382 ], "ocr": false, "ocr_confidence": 1, "text": "required under the terms of two of our" }, { "bbox": [ 0.06440167745828929, 0.18181818181818182, 0.1555361266917175, 0.19276094276094272 ], "ocr": false, "ocr_confidence": 1, "text": "secured notes" }, { "bbox": [ 0.1524983117172699, 0.17929292929292928, 0.20778654425221638, 0.19612794612794618 ], "ocr": false, "ocr_confidence": 1, "text": "payable" }, { "bbox": [ 0.7023428220922868, 0.1801346801346801, 0.7412268537652164, 0.19360269360269364 ], "ocr": false, "ocr_confidence": 1, "text": "3,360" }, { "bbox": [ 0.04678235060649316, 0.1965488215488215, 0.3189705723169988, 0.21212121212121213 ], "ocr": false, "ocr_confidence": 1, "text": "Security deposit funds based on the terms" }, { "bbox": [ 0.06440167745828929, 0.21464646464646464, 0.24059494597625053, 0.22811447811447808 ], "ocr": false, "ocr_confidence": 1, "text": "of certain lease agreements" }, { "bbox": [ 0.7169243339696354, 0.21548821548821545, 0.7424419797549953, 0.22643097643097648 ], "ocr": false, "ocr_confidence": 1, "text": "9II" }, { "bbox": [ 0.8505881928453302, 0.2129629629629629, 0.8906873505080386, 0.22643097643097648 ], "ocr": false, "ocr_confidence": 1, "text": "1,469" }, { "bbox": [ 0.7023428220922868, 0.23232323232323232, 0.7424419797549953, 0.2432659932659932 ], "ocr": false, "ocr_confidence": 1, "text": "7.491" }, { "bbox": [ 0.8183873541161856, 0.23106060606060605, 0.8293234880241969, 0.24031986531986538 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.04982016558094077, 0.26515151515151514, 0.17376301653840315, 0.27609427609427606 ], "ocr": false, "ocr_confidence": 1, "text": "Loan Fees and Costs" }, { "bbox": [ 0.04982016558094077, 0.281986531986532, 0.21872267816022775, 0.29377104377104374 ], "ocr": false, "ocr_confidence": 1, "text": "Fees and costs incurred in" }, { "bbox": [ 0.21629242618066968, 0.2794612794612795, 0.2843394816082961, 0.2958754208754209 ], "ocr": false, "ocr_confidence": 1, "text": "obtaining" }, { "bbox": [ 0.3135025053629931, 0.2828282828282828, 0.34874115906658537, 0.29292929292929293 ], "ocr": false, "ocr_confidence": 1, "text": "term" }, { "bbox": [ 0.34691847008191684, 0.27904040404040403, 0.8882570985284804, 0.2958754208754209 ], "ocr": false, "ocr_confidence": 1, "text": "financing are amortized over the terms of the related loans and included in interest" }, { "bbox": [ 0.048605039591161726, 0.2971380471380472, 0.8730680236562425, 0.31313131313131315 ], "ocr": false, "ocr_confidence": 1, "text": "expense. Loan fees and costs, net of related amortization, totaled $3,424,000 and $1,350,000 as of December 31, 1998 and 1997," }, { "bbox": [ 0.048605039591161726, 0.3152356902356902, 0.12819579192168903, 0.33080808080808083 ], "ocr": false, "ocr_confidence": 1, "text": "respectively." }, { "bbox": [ 0.05103529157071981, 0.34932659932659943, 0.13973948882458997, 0.36026936026936024 ], "ocr": false, "ocr_confidence": 1, "text": "Rental Income" }, { "bbox": [ 0.04982016558094077, 0.3661616161616162, 0.4173957774891013, 0.3779461279461279 ], "ocr": false, "ocr_confidence": 1, "text": "Rental income from leases with scheduled rent increases," }, { "bbox": [ 0.4441285492642402, 0.3644781144781145, 0.9034461734007185, 0.380050505050505 ], "ocr": false, "ocr_confidence": 1, "text": "rent and other rent adjustments are recognized on a straight-line basis" }, { "bbox": [ 0.04982016558094077, 0.3838383838383838, 0.10450083512099771, 0.3947811447811448 ], "ocr": false, "ocr_confidence": 1, "text": "over the" }, { "bbox": [ 0.10207058314143962, 0.3813131313131313, 0.8742831496460215, 0.3977272727272727 ], "ocr": false, "ocr_confidence": 1, "text": "respective lease term. We incude amounts currently recognized as income, and expected to be received in later years, in" }, { "bbox": [ 0.04982016558094077, 0.39983164983164987, 0.7144940819900774, 0.41245791245791247 ], "ocr": false, "ocr_confidence": 1, "text": "tenant receivables and deferred rent on our consolidated balance sheet. Amounts received currently but" }, { "bbox": [ 0.7120638300105193, 0.39814814814814814, 0.8742831496460215, 0.414983164983165 ], "ocr": false, "ocr_confidence": 1, "text": "recognized as income in" }, { "bbox": [ 0.04921260258605124, 0.41750841750841755, 0.5480218213903485, 0.43097643097643096 ], "ocr": false, "ocr_confidence": 1, "text": "future years, are included in uncarned rent on our consolidated balance sheet." }, { "bbox": [ 0.05103529157071981, 0.4511784511784512, 0.13609411085525283, 0.46127946127946123 ], "ocr": false, "ocr_confidence": 1, "text": "Other Income" }, { "bbox": [ 0.04921260258605124, 0.4654882154882155, 0.8767134016255795, 0.4810606060606061 ], "ocr": false, "ocr_confidence": 1, "text": "Other income consists of interest income and other income associated with the operations of the properties. Interest income was" }, { "bbox": [ 0.05042772857583029, 0.4827441077441077, 0.52068148662032, 0.5 ], "ocr": false, "ocr_confidence": 1, "text": "5978,000,S588,000 and S18,00o in 1998, 1997 and 1996, respectively." }, { "bbox": [ 0.09964033116188153, 0.5176767676767676, 0.18226889846685645, 0.5286195286195287 ], "ocr": false, "ocr_confidence": 1, "text": "Commissions" }, { "bbox": [ 0.04921260258605124, 0.531986531986532, 0.8840041575642539, 0.5496632996632996 ], "ocr": false, "ocr_confidence": 1, "text": "Leasing commissions are amortized on a straight-line basis over the term of the related lease. Leasing commissions, net of related" }, { "bbox": [ 0.04982016558094077, 0.5500841750841751, 0.48301258093716964, 0.5669191919191919 ], "ocr": false, "ocr_confidence": 1, "text": "amortization, totaled 54,856,000 and 8847,000 as of December 31," }, { "bbox": [ 0.5188587976356515, 0.5513468013468014, 0.6671041683886947, 0.563973063973064 ], "ocr": false, "ocr_confidence": 1, "text": "and 1997, respectively" }, { "bbox": [ 0.05103529157071981, 0.5841750841750842, 0.26854284374116855, 0.5976430976430976 ], "ocr": false, "ocr_confidence": 1, "text": "Fair Value of Financial Instruments" }, { "bbox": [ 0.05042772857583029, 0.5993265993265994, 0.8985856694416023, 0.6157407407407408 ], "ocr": false, "ocr_confidence": 1, "text": "The carrying amount of cash and cash equivalents approximates fair value because their maturity is less than three months. The car-" }, { "bbox": [ 0.04921260258605124, 0.6153198653198653, 0.8791436536051377, 0.6325757575757576 ], "ocr": false, "ocr_confidence": 1, "text": "rying amount of our secured note receivable approximates fair value because the applicable interest rate approximates the market" }, { "bbox": [ 0.04982016558094077, 0.6355218855218855, 0.16161175664061275, 0.6473063973063973 ], "ocr": false, "ocr_confidence": 1, "text": "rate for this loan." }, { "bbox": [ 0.05042772857583029, 0.6683501683501684, 0.4198260294686594, 0.6843434343434344 ], "ocr": false, "ocr_confidence": 1, "text": "The fair value of our secured notes payable was estimated" }, { "bbox": [ 0.45871006114158874, 0.6679292929292929, 0.8985856694416023, 0.6830808080808081 ], "ocr": false, "ocr_confidence": 1, "text": "discounted cash flows analyses based on borrowing rates we believe" }, { "bbox": [ 0.05164285456560933, 0.6906565656565656, 0.07229999639185306, 0.6990740740740741 ], "ocr": false, "ocr_confidence": 1, "text": "we" }, { "bbox": [ 0.06986974441229499, 0.6847643097643098, 0.8846117205591434, 0.7015993265993266 ], "ocr": false, "ocr_confidence": 1, "text": "could obtain with similar terms and maturities. As of December 31, 1998 and 1997, the fair value of our secured notes payable" }, { "bbox": [ 0.05164285456560933, 0.7074915824915825, 0.07837562634074828, 0.7159090909090909 ], "ocr": false, "ocr_confidence": 1, "text": "was" }, { "bbox": [ 0.07716050035096925, 0.7045454545454546, 0.4593176241364783, 0.718013468013468 ], "ocr": false, "ocr_confidence": 1, "text": "approximately SI8,310,000 and 546,822,000, respectively." }, { "bbox": [ 0.052250417560498856, 0.7373737373737373, 0.22722856008868106, 0.75 ], "ocr": false, "ocr_confidence": 1, "text": "Net Income (Loss) Per Share" }, { "bbox": [ 0.05164285456560933, 0.752946127946128, 0.4483814902284669, 0.7680976430976432 ], "ocr": false, "ocr_confidence": 1, "text": "Historical per share data has not been presented for 1997 and" }, { "bbox": [ 0.4842277069269487, 0.752104377104377, 0.8973705434518233, 0.7680976430976432 ], "ocr": false, "ocr_confidence": 1, "text": "because it is not meaningful due to the material changes in our" }, { "bbox": [ 0.05164285456560933, 0.7706228956228957, 0.26672015475649996, 0.7857744107744108 ], "ocr": false, "ocr_confidence": 1, "text": "capital structure as a result of the" }, { "bbox": [ 0.26307477678716285, 0.7693602693602694, 0.8147419761468484, 0.7861952861952861 ], "ocr": false, "ocr_confidence": 1, "text": "Offering: Instead, we have presented net income (loss) per share for these years on a" }, { "bbox": [ 0.8396520589373188, 0.771043771043771, 0.8833965945693644, 0.781986531986532 ], "ocr": false, "ocr_confidence": 1, "text": "forma" }, { "bbox": [ 0.05103529157071981, 0.7866161616161617, 0.4295470373868917, 0.8034511784511785 ], "ocr": false, "ocr_confidence": 1, "text": "basis, giving effect to the Offering and related transactions." }, { "bbox": [ 0.05103529157071981, 0.8232323232323232, 0.2782638516594009, 0.8350168350168351 ], "ocr": false, "ocr_confidence": 1, "text": "Pro forma shares of common stock" }, { "bbox": [ 0.2770487256696218, 0.8202861952861953, 0.6385487076288872, 0.8371212121212122 ], "ocr": false, "ocr_confidence": 1, "text": "outstanding for the years ended December 31, 1997 and" }, { "bbox": [ 0.6737873613324794, 0.8202861952861953, 0.8730680236562425, 0.8362794612794613 ], "ocr": false, "ocr_confidence": 1, "text": "incude all shares outstanding" }, { "bbox": [ 0.05042772857583029, 0.8379629629629629, 0.8906873505080386, 0.8547979797979798 ], "ocr": false, "ocr_confidence": 1, "text": "after giving effect to the 1,765.923 to 1 stock split, the issuance of stock grants, the issuance and exercise of substitute stock options" }, { "bbox": [ 0.05042772857583029, 0.8547979797979798, 0.8645621417277891, 0.8712121212121212 ], "ocr": false, "ocr_confidence": 1, "text": "and the conversion of the Series U and Series V preferred stock. In addition; shares issued to the public in connection with the" }, { "bbox": [ 0.05042772857583029, 0.8724747474747475, 0.3785117458161719, 0.8901515151515151 ], "ocr": false, "ocr_confidence": 1, "text": "Offering have been weighted for the period of time" }, { "bbox": [ 0.41010502155042705, 0.8775252525252525, 0.4429134232744612, 0.8859427609427609 ], "ocr": false, "ocr_confidence": 1, "text": "were" }, { "bbox": [ 0.4423058602795717, 0.8716329966329966, 0.5285798055538837, 0.8888888888888888 ], "ocr": false, "ocr_confidence": 1, "text": "outstanding:" }, { "bbox": [ 0.46357056510070493, 0.9558080808080808, 0.4890882108860648, 0.9734848484848485 ], "ocr": false, "ocr_confidence": 1, "text": "40" }, { "bbox": [ 0.8475333171944051, 0.18205061579939766, 0.8943497891538532, 0.19210763335885153 ], "ocr": false, "ocr_confidence": 1, "text": "1,966" }, { "bbox": [ 0.8499541181704924, 0.22817278890062587, 0.8913214251828764, 0.24699556126772437 ], "ocr": false, "ocr_confidence": 1, "text": "6,799" }, { "bbox": [ 0.28256478503328925, 0.2807848796913798, 0.31527720193799996, 0.2962353223288222 ], "ocr": false, "ocr_confidence": 1, "text": "long" }, { "bbox": [ 0.41734903327040807, 0.3649831494871173, 0.444782856477823, 0.3782828437788759 ], "ocr": false, "ocr_confidence": 1, "text": "free" }, { "bbox": [ 0.05293695026542338, 0.5156266526880049, 0.09834623546206749, 0.5319322698709177 ], "ocr": false, "ocr_confidence": 1, "text": "Leasing" }, { "bbox": [ 0.4796163057277817, 0.5536430997845054, 0.5204323838603707, 0.5625185163771108 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.42052685400785467, 0.6675597236933022, 0.45922436259217253, 0.6842921281585496 ], "ocr": false, "ocr_confidence": 1, "text": "using" }, { "bbox": [ 0.44635123294437606, 0.7556046794726432, 0.48504283822126043, 0.7662808424128786 ], "ocr": false, "ocr_confidence": 1, "text": "1996" }, { "bbox": [ 0.8132102731522665, 0.77332247363406, 0.8399686359421217, 0.7826539573423709 ], "ocr": false, "ocr_confidence": 1, "text": "pro" }, { "bbox": [ 0.63503161392358, 0.8242518060757578, 0.677912018032676, 0.8356808538569023 ], "ocr": false, "ocr_confidence": 1, "text": "1996" }, { "bbox": [ 0.3785062721651098, 0.8738109319298045, 0.4082878062168206, 0.8879735798547073 ], "ocr": false, "ocr_confidence": 1, "text": "they" } ]
[ { "bbox": [ 0.04849793779384102, 0.036195311883483273, 0.14216974080414804, 0.04713802144985006 ], "data": [], "index_in_doc": 322, "label": "section_header", "text": "Restricted Cash" }, { "bbox": [ 0.04799747775510665, 0.050925900237728854, 0.4052445083206353, 0.06691919191919192 ], "data": [], "index_in_doc": 323, "label": "section_header", "text": "Restricted cash consists of the following (in thousands):" }, { "bbox": [ 0.0464293557277256, 0.08070057570332229, 0.9047144945269825, 0.2481636278557055 ], "data": [ { "html_seq": "<table><tr><td></td><th colspan=\"2\">DECEM BER 31</th></tr><tr><td></td><th>1998</th><th>1997</th></tr><tr><td>Reserve for tenant improvements established pursuant to leases at two of our properties</td><td>5 3,220</td><td>5 3,364</td></tr><tr><td>Funds held in trust as additional security required under the terms of two of our secured notes payable</td><td>3,360</td><td>1,966</td></tr><tr><td>Security deposit funds based on the terms of certain lease agreements</td><td>9II</td><td>1,469</td></tr><tr><td></td><td>7.491</td><td>5 6,799</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 324, "label": "table", "text": "" }, { "bbox": [ 0.0497285539236818, 0.26515151515151514, 0.17376302117374096, 0.2763609452681108 ], "data": [], "index_in_doc": 325, "label": "section_header", "text": "Loan Fees and Costs" }, { "bbox": [ 0.048605038432327274, 0.27904040404040403, 0.8882571170698317, 0.33080808080808083 ], "data": [], "index_in_doc": 326, "label": "text", "text": "Fees and costs incurred in obtaining term financing are amortized over the terms of the related loans and included in interest expense. Loan fees and costs, net of related amortization, totaled $3,424,000 and $1,350,000 as of December 31, 1998 and 1997, respectively. long" }, { "bbox": [ 0.0504935063367478, 0.3493266250147964, 0.13973948418925217, 0.36040939947571415 ], "data": [], "index_in_doc": 327, "label": "section_header", "text": "Rental Income" }, { "bbox": [ 0.04921260258605124, 0.36447810163401595, 0.9034461548593674, 0.4309764438205295 ], "data": [], "index_in_doc": 328, "label": "text", "text": "Rental income from leases with scheduled rent increases, rent and other rent adjustments are recognized on a straight-line basis over the respective lease term. We incude amounts currently recognized as income, and expected to be received in later years, in tenant receivables and deferred rent on our consolidated balance sheet. Amounts received currently but recognized as income in future years, are included in uncarned rent on our consolidated balance sheet. free" }, { "bbox": [ 0.05083248974820882, 0.45117846402254974, 0.13609410621991502, 0.4618333373406921 ], "data": [], "index_in_doc": 329, "label": "section_header", "text": "Other Income" }, { "bbox": [ 0.04921260258605124, 0.46548820264411694, 0.8767134016255795, 0.5 ], "data": [], "index_in_doc": 330, "label": "text", "text": "Other income consists of interest income and other income associated with the operations of the properties. Interest income was 5978,000,S588,000 and S18,00o in 1998, 1997 and 1996, respectively." }, { "bbox": [ 0.05173448939955726, 0.5156266568887113, 0.18226889846685645, 0.5319322528261127 ], "data": [], "index_in_doc": 331, "label": "section_header", "text": "Commissions Leasing" }, { "bbox": [ 0.04921260258605124, 0.5319865448306306, 0.8840041575642539, 0.5669191919191919 ], "data": [], "index_in_doc": 332, "label": "text", "text": "Leasing commissions are amortized on a straight-line basis over the term of the related lease. Leasing commissions, net of related amortization, totaled 54,856,000 and 8847,000 as of December 31, and 1997, respectively 1998" }, { "bbox": [ 0.05103529157071981, 0.5841750713309857, 0.26854283447049293, 0.5976431104871962 ], "data": [], "index_in_doc": 333, "label": "section_header", "text": "Fair Value of Financial Instruments" }, { "bbox": [ 0.04921260258605124, 0.5993265864825008, 0.8985856694416023, 0.6473063844622988 ], "data": [], "index_in_doc": 334, "label": "text", "text": "The carrying amount of cash and cash equivalents approximates fair value because their maturity is less than three months. The carrying amount of our secured note receivable approximates fair value because the applicable interest rate approximates the market rate for this loan." }, { "bbox": [ 0.05014930817027235, 0.6675597296820747, 0.8985856694416023, 0.7180134744355173 ], "data": [], "index_in_doc": 335, "label": "text", "text": "The fair value of our secured notes payable was estimated discounted cash flows analyses based on borrowing rates we believe we could obtain with similar terms and maturities. As of December 31, 1998 and 1997, the fair value of our secured notes payable was approximately SI8,310,000 and 546,822,000, respectively. using" }, { "bbox": [ 0.05184107551554876, 0.7373737373737373, 0.22722855545334328, 0.75 ], "data": [], "index_in_doc": 336, "label": "section_header", "text": "Net Income (Loss) Per Share" }, { "bbox": [ 0.05103529157071981, 0.7521043835264264, 0.8973705619931744, 0.8034511720291292 ], "data": [], "index_in_doc": 337, "label": "text", "text": "Historical per share data has not been presented for 1997 and because it is not meaningful due to the material changes in our capital structure as a result of the Offering: Instead, we have presented net income (loss) per share for these years on a forma basis, giving effect to the Offering and related transactions. 1996 pro" }, { "bbox": [ 0.05042772741699584, 0.8202862017082445, 0.8906873319666874, 0.8901515151515151 ], "data": [], "index_in_doc": 338, "label": "text", "text": "Pro forma shares of common stock outstanding for the years ended December 31, 1997 and incude all shares outstanding after giving effect to the 1,765.923 to 1 stock split, the issuance of stock grants, the issuance and exercise of substitute stock options and the conversion of the Series U and Series V preferred stock. In addition; shares issued to the public in connection with the Offering have been weighted for the period of time were outstanding: 1996 they" }, { "bbox": [ 0.4635705558300294, 0.9558080808080808, 0.48908822942741603, 0.9734848484848485 ], "data": [], "index_in_doc": 339, "label": "page_footer", "text": "40" } ]
{ "filename": "NYSE_ARE_1998.pdf", "page": 41 }
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We have adopted Statement of Financial Accounting Standards No. 128, "Earnings per Share, and have restated pro forma net income per share for the year ended December 31, 1996. Basic and diluted net income per share are the same for 1997 because the stock options outstanding as of December 31, 1997 were antidilutive. There were no dilutive stock options on a pro forma basis for 1996. The following table shows the computation of net income (loss) per share of common stock outstanding: Operating Segments In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 131, Disclosures About Segments of an Enterprise and Related Information;" which is effective for years beginning after December 15, 1997. Statement 131 establishes standards for the way that public business enterprises report information about operating segments. Statement 131 also establishes standards for related disclosure about products and services , geographic areas , and major customers. Since we operate as a single segment, the implementation of Statement 131 did not have an impact on how we report our results of operations. Income Taxes As a REIT we are not subject to federal income taxation as as we meet a number of organizational and operational requirements and distribute all of our taxable income to our stockholders. Since we believe we have met these requirements and our distributions exceeded taxable income; no federal income tax provision has been reflected in the accompanying consolidated financial statements for the years ended December 31, 1997 and If we fail to qualify as a REIT in any taxable year; we will be subject to federal income on our taxable income at regular corporate tax rates. For the years ended December 31, and reported that none of our distributions with respect to common stock represented a return of capital for federal income purposes. For the year ended December 31, 1997, we reported that 37.6% of our distributions with respect to common stock represented a return of capital long 1998, 1996. 1998 lax 1996, we tax
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There were no dilutive stock options on a pro forma basis" }, { "bbox": [ 0.0874890712640911, 0.08754208754208759, 0.11179159105967197, 0.09848484848484848 ], "ocr": false, "ocr_confidence": 1, "text": "for" }, { "bbox": [ 0.08809663425898062, 0.11994949494949494, 0.6774327393018166, 0.13678451178451184 ], "ocr": false, "ocr_confidence": 1, "text": "The following table shows the computation of net income (loss) per share of common stock" }, { "bbox": [ 0.6743949243273689, 0.12079124579124574, 0.76188399559146, 0.13804713804713808 ], "ocr": false, "ocr_confidence": 1, "text": "outstanding:" }, { "bbox": [ 0.717531896964525, 0.1553030303030303, 0.8651697047226787, 0.16582491582491588 ], "ocr": false, "ocr_confidence": 1, "text": "YEAR ENDED DECEMBER 31" }, { "bbox": [ 0.08870419725387015, 0.16792929292929293, 0.34874115906658537, 0.180976430976431 ], "ocr": false, "ocr_confidence": 1, "text": "(Dollars in thousands, except per share amounts)" }, { "bbox": [ 0.704773074071845, 0.17003367003366998, 0.7375814757958792, 0.18181818181818182 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.8092739091928427, 0.1717171717171717, 0.8408671849270978, 0.1826599326599326 ], "ocr": false, "ocr_confidence": 1, "text": "1997" }, { "bbox": [ 0.8991932324364919, 0.17003367003366998, 0.9332167601503051, 0.1826599326599326 ], "ocr": false, "ocr_confidence": 1, "text": "1996" }, { "bbox": [ 0.08870419725387015, 0.18728956228956234, 0.20292604029310018, 0.20117845117845123 ], "ocr": false, "ocr_confidence": 1, "text": "Net income (loss)" }, { "bbox": [ 0.6901915621944965, 0.1919191919191919, 0.7375814757958792, 0.20286195286195283 ], "ocr": false, "ocr_confidence": 1, "text": "19,403" }, { "bbox": [ 0.7637066845761286, 0.19065656565656566, 0.7758579444739191, 0.19991582491582496 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.7952999603103836, 0.19065656565656566, 0.845727688886214, 0.20412457912457907 ], "ocr": false, "ocr_confidence": 1, "text": "(2,797)" }, { "bbox": [ 0.859701637768673, 0.19149831649831645, 0.8694226456869053, 0.20075757575757575 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.8961554174620443, 0.19149831649831645, 0.9332167601503051, 0.20370370370370375 ], "ocr": false, "ocr_confidence": 1, "text": "2,175" }, { "bbox": [ 0.08870419725387015, 0.22095959595959597, 0.24849326490981433, 0.2365319865319866 ], "ocr": false, "ocr_confidence": 1, "text": "Weighted average shares" }, { "bbox": [ 0.2600369618127152, 0.2226430976430977, 0.4994167817991867, 0.2365319865319866 ], "ocr": false, "ocr_confidence": 1, "text": "basic (pro forma for 1997, pro forma" }, { "bbox": [ 0.10875377608522435, 0.23863636363636365, 0.25699914683826763, 0.2537878787878788 ], "ocr": false, "ocr_confidence": 1, "text": "and restated for 1996)" }, { "bbox": [ 0.6604209754449099, 0.2428451178451179, 0.6774327393018166, 0.25126262626262624 ], "ocr": false, "ocr_confidence": 1, "text": "12" }, { "bbox": [ 0.6762176133120374, 0.2390572390572391, 0.7387966017856582, 0.2554713804713805 ], "ocr": false, "ocr_confidence": 1, "text": "098,959" }, { "bbox": [ 0.7716050035096923, 0.2407407407407407, 0.8408671849270978, 0.2542087542087543 ], "ocr": false, "ocr_confidence": 1, "text": "8,075,864" }, { "bbox": [ 0.8688150826920158, 0.2432659932659932, 0.8846117205591434, 0.2542087542087543 ], "ocr": false, "ocr_confidence": 1, "text": "3," }, { "bbox": [ 0.8791436536051377, 0.23947811447811443, 0.9332167601503051, 0.25673400673400676 ], "ocr": false, "ocr_confidence": 1, "text": "642,131" }, { "bbox": [ 0.08809663425898062, 0.2546296296296296, 0.3159327573425512, 0.2702020202020202 ], "ocr": false, "ocr_confidence": 1, "text": "Add: dilutive effect of stock options" }, { "bbox": [ 0.6865461842251593, 0.2592592592592593, 0.7375814757958792, 0.2702020202020202 ], "ocr": false, "ocr_confidence": 1, "text": "207,5HI" }, { "bbox": [ 0.0899193232436492, 0.27188552188552195, 0.2478857019149248, 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], "ocr": false, "ocr_confidence": 1, "text": "Net income (loss) per share" }, { "bbox": [ 0.2770487256696218, 0.3236531986531986, 0.5164285456560933, 0.3367003367003368 ], "ocr": false, "ocr_confidence": 1, "text": "basic (pro forma for 1997, pro forma" }, { "bbox": [ 0.10936133908011388, 0.34006734006733996, 0.2138621742011116, 0.351010101010101 ], "ocr": false, "ocr_confidence": 1, "text": "and restated for" }, { "bbox": [ 0.21082435922666398, 0.3388047138047137, 0.25639158384337807, 0.3552188552188552 ], "ocr": false, "ocr_confidence": 1, "text": "1996)" }, { "bbox": [ 0.703557948082066, 0.3409090909090909, 0.7363663498061002, 0.3526936026936026 ], "ocr": false, "ocr_confidence": 1, "text": "1.60" }, { "bbox": [ 0.7637066845761286, 0.3421717171717172, 0.77464281848414, 0.3514309764309763 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.8031982792439475, 0.3409090909090909, 0.8475503778708826, 0.35648148148148145 ], "ocr": false, "ocr_confidence": 1, "text": "(o.35)" }, { "bbox": [ 0.8572713857891149, 0.3421717171717172, 0.8682075196971263, 0.3522727272727273 ], "ocr": false, "ocr_confidence": 1, "text": "$" }, { "bbox": [ 0.8967629804569338, 0.34175084175084186, 0.9320016341605261, 0.3526936026936026 ], "ocr": false, "ocr_confidence": 1, "text": "0.60" }, { "bbox": [ 0.0874890712640911, 0.3573232323232323, 0.26611259176161045, 0.3712121212121212 ], "ocr": false, "ocr_confidence": 1, "text": "Net income (loss) per share" }, { "bbox": [ 0.2764411626747323, 0.3573232323232323, 0.5291873685487732, 0.37247474747474746 ], "ocr": false, "ocr_confidence": 1, "text": "diluted (pro forma for 1997, pro forma" }, { "bbox": [ 0.10936133908011388, 0.37373737373737376, 0.2138621742011116, 0.3855218855218855 ], "ocr": false, "ocr_confidence": 1, "text": "and restated for" }, { "bbox": [ 0.7072033260514031, 0.3754208754208754, 0.7363663498061002, 0.38804713804713803 ], "ocr": false, "ocr_confidence": 1, "text": "1.58" }, { "bbox": [ 0.8044134052337265, 0.3771043771043771, 0.845727688886214, 0.38973063973063976 ], "ocr": false, "ocr_confidence": 1, "text": "(0.35)" }, { "bbox": [ 0.8572713857891149, 0.3766835016835017, 0.8682075196971263, 0.3867845117845118 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.8967629804569338, 0.37626262626262624, 0.930786508170747, 0.3872053872053872 ], "ocr": false, "ocr_confidence": 1, "text": "0.60" }, { "bbox": [ 0.08688150826920157, 0.390993265993266, 0.5060999747429715, 0.40614478114478114 ], "ocr": false, "ocr_confidence": 1, "text": "Dividends declared per share (pro forma for 1997, pro forma and" }, { "bbox": [ 0.10875377608522435, 0.4078282828282828, 0.22905124907334964, 0.42297979797979796 ], "ocr": false, "ocr_confidence": 1, "text": "restated for 1996)" }, { "bbox": [ 0.703557948082066, 0.40993265993266, 0.7363663498061002, 0.42087542087542085 ], "ocr": false, "ocr_confidence": 1, "text": "1.60" }, { "bbox": [ 0.8080587832030636, 0.40993265993266, 0.8396520589373188, 0.4217171717171717 ], "ocr": false, "ocr_confidence": 1, "text": "1.60" }, { "bbox": [ 0.8584865117788939, 0.41203703703703703, 0.8682075196971263, 0.42129629629629634 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.8991932324364919, 0.40993265993266, 0.930786508170747, 0.4225589225589226 ], "ocr": false, "ocr_confidence": 1, "text": "0.87" }, { "bbox": [ 0.0874890712640911, 0.44107744107744107, 0.212039485216443, 0.45749158249158245 ], "ocr": false, "ocr_confidence": 1, "text": "Operating Segments" }, { "bbox": [ 0.0874890712640911, 0.4595959595959596, 0.26368233978205236, 0.4730639730639731 ], "ocr": false, "ocr_confidence": 1, "text": "In June 1997, the Financial" }, { "bbox": [ 0.2624672137922733, 0.45707070707070707, 0.8451201258913245, 0.47516835016835013 ], "ocr": false, "ocr_confidence": 1, "text": "Accounting Standards Board issued Statement of Financial Accounting Standards No. 131," }, { "bbox": [ 0.8499806298504406, 0.46085858585858586, 0.9277486931962994, 0.47180134680134683 ], "ocr": false, "ocr_confidence": 1, "text": "Disclosures" }, { "bbox": [ 0.08870419725387015, 0.4764309764309764, 0.1300184809063576, 0.48737373737373735 ], "ocr": false, "ocr_confidence": 1, "text": "About" }, { "bbox": [ 0.12698066593191001, 0.4755892255892256, 0.8791436536051377, 0.49242424242424243 ], "ocr": false, "ocr_confidence": 1, "text": "Segments of an Enterprise and Related Information;\" which is effective for years beginning after December 15, 1997." }, { "bbox": [ 0.08688150826920157, 0.4928451178451178, 0.8937251654824862, 0.51010101010101 ], "ocr": false, "ocr_confidence": 1, "text": "Statement 131 establishes standards for the way that public business enterprises report information about operating segments." }, { "bbox": [ 0.08688150826920157, 0.5105218855218855, 0.9277486931962994, 0.5277777777777778 ], "ocr": false, "ocr_confidence": 1, "text": "Statement 131 also establishes standards for related disclosure about products and services , geographic areas , and major customers." }, { "bbox": [ 0.08688150826920157, 0.5281986531986532, 0.9107369293393929, 0.5437710437710438 ], "ocr": false, "ocr_confidence": 1, "text": "Since we operate as a single segment, the implementation of Statement 131 did not have an impact on how we report our results" }, { "bbox": [ 0.0874890712640911, 0.5454545454545454, 0.1774083945077403, 0.5580808080808081 ], "ocr": false, "ocr_confidence": 1, "text": "of operations." }, { "bbox": [ 0.0874890712640911, 0.5782828282828283, 0.17254789054862413, 0.5892255892255892 ], "ocr": false, "ocr_confidence": 1, "text": "Income Taxes" }, { "bbox": [ 0.0874890712640911, 0.595117845117845, 0.4629630021058154, 0.6077441077441077 ], "ocr": false, "ocr_confidence": 1, "text": "As a REIT we are not subject to federal income taxation as" }, { "bbox": [ 0.4945562778400705, 0.5959595959595959, 0.9089142403547242, 0.6098484848484849 ], "ocr": false, "ocr_confidence": 1, "text": "as we meet a number of organizational and operational require-" }, { "bbox": [ 0.0874890712640911, 0.6127946127946128, 0.9392923900992004, 0.6262626262626263 ], "ocr": false, "ocr_confidence": 1, "text": "ments and distribute all of our taxable income to our stockholders. Since we believe we have met these requirements and our distrib-" }, { "bbox": [ 0.08627394527431206, 0.6292087542087542, 0.9386848271043108, 0.6452020202020202 ], "ocr": false, "ocr_confidence": 1, "text": "utions exceeded taxable income; no federal income tax provision has been reflected in the accompanying consolidated financial state-" }, { "bbox": [ 0.08688150826920157, 0.6460437710437711, 0.34570334409213777, 0.6611952861952861 ], "ocr": false, "ocr_confidence": 1, "text": "ments for the years ended December 31," }, { "bbox": [ 0.3839798127701776, 0.6481481481481483, 0.4483814902284669, 0.6607744107744108 ], "ocr": false, "ocr_confidence": 1, "text": "1997 and" }, { "bbox": [ 0.4903033368758439, 0.646885521885522, 0.9265335672065204, 0.6620370370370371 ], "ocr": false, "ocr_confidence": 1, "text": "If we fail to qualify as a REIT in any taxable year; we will be subject" }, { "bbox": [ 0.08627394527431206, 0.6641414141414141, 0.20049578831354212, 0.6759259259259259 ], "ocr": false, "ocr_confidence": 1, "text": "to federal income" }, { "bbox": [ 0.2223680561295649, 0.6649831649831649, 0.3839798127701776, 0.6759259259259259 ], "ocr": false, "ocr_confidence": 1, "text": "on our taxable income at" }, { "bbox": [ 0.38215712378550903, 0.6632996632996634, 0.7795033224432562, 0.6797138047138047 ], "ocr": false, "ocr_confidence": 1, "text": "regular corporate tax rates. For the years ended December 31," }, { "bbox": [ 0.8153495391417379, 0.6658249158249159, 0.8432974369066559, 0.6767676767676768 ], "ocr": false, "ocr_confidence": 1, "text": "and" }, { "bbox": [ 0.08505881928453302, 0.680976430976431, 0.8524108818299988, 0.6973905723905724 ], "ocr": false, "ocr_confidence": 1, "text": "reported that none of our distributions with respect to common stock represented a return of capital for federal income" }, { "bbox": [ 0.872460460661353, 0.6851851851851851, 0.9392923900992004, 0.6961279461279462 ], "ocr": false, "ocr_confidence": 1, "text": "purposes." }, { "bbox": [ 0.08688150826920157, 0.6973905723905724, 0.9046612993904976, 0.7138047138047139 ], "ocr": false, "ocr_confidence": 1, "text": "For the year ended December 31, 1997, we reported that 37.6% of our distributions with respect to common stock represented a" }, { "bbox": [ 0.08566638227942254, 0.7154882154882154, 0.1919899063850888, 0.728956228956229 ], "ocr": false, "ocr_confidence": 1, "text": "return of capital" }, { "bbox": [ 0.10908372605386196, 0.08980535697459402, 0.1521683617486323, 0.09958858241934537 ], "ocr": false, "ocr_confidence": 1, "text": "1996." }, { "bbox": [ 0.2118634130102123, 0.3759644017018216, 0.2553525300598298, 0.38708273634531637 ], "ocr": false, "ocr_confidence": 1, "text": "1996)" }, { "bbox": [ 0.46241933956142445, 0.594754444472178, 0.494492377389572, 0.6106327609150274 ], "ocr": false, "ocr_confidence": 1, "text": "long" }, { "bbox": [ 0.3429954790863277, 0.6495696667389037, 0.3854725517862086, 0.6593528921836552 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.44749631420732544, 0.6495696667389037, 0.49118851289698534, 0.6593528921836552 ], "ocr": false, "ocr_confidence": 1, "text": "1996." }, { "bbox": [ 0.7762241595709254, 0.6672328473623124, 0.8168060130294001, 0.6774641223346574 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.20120809159105368, 0.6654794894970854, 0.2222633158469428, 0.6762713522537565 ], "ocr": false, "ocr_confidence": 1, "text": "lax" }, { "bbox": [ 0.8424485260138832, 0.6672328473623124, 0.8854606314519161, 0.6774641223346574 ], "ocr": false, "ocr_confidence": 1, "text": "1996," }, { "bbox": [ 0.8851828310623692, 0.6684781159057197, 0.9077355668566089, 0.6766397292121255 ], "ocr": false, "ocr_confidence": 1, "text": "we" }, { "bbox": [ 0.8513188163743259, 0.6835714898516387, 0.8723374001272467, 0.6947955135153646 ], "ocr": false, "ocr_confidence": 1, "text": "tax" } ]
[ { "bbox": [ 0.08688151058687048, 0.03409090909090909, 0.9327693758881076, 0.10144698017775411 ], "data": [], "index_in_doc": 340, "label": "text", "text": "We have adopted Statement of Financial Accounting Standards No. 128, \"Earnings per Share, and have restated pro forma net income per share for the year ended December 31, 1996. Basic and diluted net income per share are the same for 1997 because the stock options outstanding as of December 31, 1997 were antidilutive. There were no dilutive stock options on a pro forma basis for 1996." }, { "bbox": [ 0.0879377140204988, 0.11994949494949494, 0.76188399559146, 0.13804711235894096 ], "data": [], "index_in_doc": 341, "label": "text", "text": "The following table shows the computation of net income (loss) per share of common stock outstanding:" }, { "bbox": [ 0.08688151058687048, 0.1553030303030303, 0.9436266905123276, 0.4276623581395005 ], "data": [ { "html_seq": "<table><tr><td></td><th colspan=\"3\">YEAR ENDED DECEMBER 31</th></tr><tr><td>(Dollars in thousands, except per share amounts)</td><th>1998</th><th>1997</th><th>1996</th></tr><tr><td>Net income (loss)</td><td>19,403</td><td>5 (2,797)</td><td>5 2,175</td></tr><tr><td>Weighted average shares basic (pro forma for 1997, pro forma and restated for 1996)</td><td>12 098,959</td><td>8,075,864</td><td>3, 642,131</td></tr><tr><td>Add: dilutive effect of stock options</td><td>207,5HI</td><td></td><td></td></tr><tr><td>Weighted average shares diluted (pro forma for 1997, pro forma and restated for 1996)</td><td>12,306,470</td><td>8,075,864</td><td>3,642,131</td></tr><tr><td>Net income (loss) per share basic (pro forma for 1997, pro forma and restated for 1996)</td><td>1.60</td><td>5 (o.35)</td><td>$ 0.60</td></tr><tr><td>Net income (loss) per share diluted (pro forma for 1997, pro forma and restated for 1996)</td><td>1.58</td><td>(0.35)</td><td>5 0.60</td></tr><tr><td>Dividends declared per share (pro forma for 1997, pro forma and restated for 1996)</td><td>1.60</td><td>1.60</td><td>5 0.87</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 342, "label": "table", "text": "" }, { "bbox": [ 0.0874890712640911, 0.44107745392153963, 0.2120394898517808, 0.457491595335681 ], "data": [], "index_in_doc": 343, "label": "section_header", "text": "Operating Segments" }, { "bbox": [ 0.08688151058687048, 0.45707070707070707, 0.9308303213835437, 0.5583518057158499 ], "data": [], "index_in_doc": 344, "label": "text", "text": "In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 131, Disclosures About Segments of an Enterprise and Related Information;\" which is effective for years beginning after December 15, 1997. Statement 131 establishes standards for the way that public business enterprises report information about operating segments. Statement 131 also establishes standards for related disclosure about products and services , geographic areas , and major customers. Since we operate as a single segment, the implementation of Statement 131 did not have an impact on how we report our results of operations." }, { "bbox": [ 0.0874890712640911, 0.5782828282828283, 0.17254788591328632, 0.5894109167233862 ], "data": [], "index_in_doc": 345, "label": "section_header", "text": "Income Taxes" }, { "bbox": [ 0.0850588216022019, 0.5947544598820234, 0.9408517177319582, 0.7291428537079783 ], "data": [], "index_in_doc": 346, "label": "text", "text": "As a REIT we are not subject to federal income taxation as as we meet a number of organizational and operational requirements and distribute all of our taxable income to our stockholders. Since we believe we have met these requirements and our distributions exceeded taxable income; no federal income tax provision has been reflected in the accompanying consolidated financial statements for the years ended December 31, 1997 and If we fail to qualify as a REIT in any taxable year; we will be subject to federal income on our taxable income at regular corporate tax rates. For the years ended December 31, and reported that none of our distributions with respect to common stock represented a return of capital for federal income purposes. For the year ended December 31, 1997, we reported that 37.6% of our distributions with respect to common stock represented a return of capital long 1998, 1996. 1998 lax 1996, we tax" } ]
{ "filename": "NYSE_ARE_1998.pdf", "page": 42 }
e043905ac8c5f2e0c6935a157384e712309ae91ca4bc7882993d3add63a4587c-43
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Rental Pnoperties Rental properties are as follows (in thousands): Nine of the rental properties are encumbered by deeds of trust and assignments of rents and leases associated with the properties (see Note 6). The net book value of these properties as of December 31, is $174,185,000. 1998 We lease space under noncancelable leases with remaining terms of one to 18 years. A majority of our leases require that the lessee pay all taxes , maintenance, insurance and certain other operating expenses applicable to the leased properties. We capitalize interest to properties under construction and renovation during the period the asset is undergoing activities to prepare it for its intended use. Total interest capitalized for the years ended December 31, 1998 and 1997 was $2,I99,000 and 596,000, respectively. Total interest incurred for the years ended December 31, 1997 and 1996 was 516,232,000, 57,139,000 and 56,327,000, respectively. 1998, Minimum lease payments to be received under the terms of the operating lease agreements, excluding expense reimbursements, as of December 31, are as follows (in thousands): 1998, Four SECURED NOTE RECeivable In connection with the acquisition of a Life Science Facility in San California in March we made a $6,000,000 loan to the sole tenant of the property, fully secured by a first deed of trust on certain improvements at the property The loan bears interest at a rate of 11% per year, payable monthly; and matures in March 2002. The loan is cross-defaulted to the lease with the sole tenant. Under certain circumstances , we may obtain title to the improvements that secure the loan, and, in such event; we may also require the sole tenant at the property to lease such improvements back from us for an additional rental amount 1998, Diego,
[ { "bbox": [ 0.041921846647376984, 0.039141414141414144, 0.24606301293025623, 0.08796296296296291 ], "ocr": false, "ocr_confidence": 1, "text": "Three" }, { "bbox": [ 0.04617478761160364, 0.09848484848484848, 0.19806553633398402, 0.10858585858585859 ], "ocr": false, "ocr_confidence": 1, "text": "Rental Pnoperties" }, { "bbox": [ 0.04617478761160364, 0.11531986531986536, 0.0899193232436492, 0.12626262626262627 ], "ocr": false, "ocr_confidence": 1, "text": "Rental" }, { "bbox": [ 0.08809663425898062, 0.11153198653198658, 0.34691847008191684, 0.1296296296296296 ], "ocr": false, "ocr_confidence": 1, "text": "properties are as follows (in thousands):" }, { "bbox": [ 0.7084184520411821, 0.12710437710437705, 0.7849713893972619, 0.13720538720538716 ], "ocr": false, "ocr_confidence": 1, "text": "DECEMBFR 31" }, { "bbox": [ 0.8554486968044464, 0.14309764309764314, 0.8870419725387015, 0.15404040404040403 ], "ocr": false, "ocr_confidence": 1, "text": "1997" }, { "bbox": [ 0.04617478761160364, 0.1590909090909091, 0.08141344131519589, 0.17087542087542093 ], "ocr": false, "ocr_confidence": 1, "text": "Land" }, { "bbox": [ 0.6914066881842755, 0.1582491582491583, 0.7387966017856582, 0.17087542087542093 ], "ocr": false, "ocr_confidence": 1, "text": "76,254" }, { "bbox": [ 0.8420823109168769, 0.15740740740740736, 0.8882570985284804, 0.17003367003366998 ], "ocr": false, "ocr_confidence": 1, "text": "43,485" }, { "bbox": [ 0.045567224616714114, 0.17382154882154877, 0.22783612308357057, 0.19065656565656566 ], "ocr": false, "ocr_confidence": 1, "text": "Building and improvements" }, { "bbox": [ 0.6822932432609327, 0.17340067340067344, 0.7400117277754372, 0.18897306397306393 ], "ocr": false, "ocr_confidence": 1, "text": "393,728" }, { "bbox": [ 0.8347915549782026, 0.17340067340067344, 0.8882570985284804, 0.18686868686868688 ], "ocr": false, "ocr_confidence": 1, "text": "189.528" }, { "bbox": [ 0.04617478761160364, 0.1923400673400674, 0.25396133186382003, 0.2058080808080808 ], "ocr": false, "ocr_confidence": 1, "text": "Tenant and other improvements" }, { "bbox": [ 0.848157940865772, 0.19023569023569017, 0.8882570985284804, 0.20286195286195283 ], "ocr": false, "ocr_confidence": 1, "text": "2,867" }, { "bbox": [ 0.6822932432609327, 0.2058080808080808, 0.7406192907703267, 0.22306397306397302 ], "ocr": false, "ocr_confidence": 1, "text": "490,518" }, { "bbox": [ 0.832968865993534, 0.20454545454545456, 0.8894722245182596, 0.22138047138047143 ], "ocr": false, "ocr_confidence": 1, "text": "235,880" }, { "bbox": [ 0.04617478761160364, 0.2251683501683502, 0.24302519795580863, 0.23821548821548816 ], "ocr": false, "ocr_confidence": 1, "text": "Less accumulated depreciation" }, { "bbox": [ 0.6914066881842755, 0.22306397306397302, 0.7436571057447744, 0.2365319865319866 ], "ocr": false, "ocr_confidence": 1, "text": "(18,611)" }, { "bbox": [ 0.8408671849270978, 0.22180134680134675, 0.8937251654824862, 0.23695286195286192 ], "ocr": false, "ocr_confidence": 1, "text": "(8,804)" }, { "bbox": [ 0.6677117313835842, 0.24116161616161616, 0.6786478652915955, 0.25126262626262624 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.6841159322456012, 0.24242424242424243, 0.7387966017856582, 0.2533670033670033 ], "ocr": false, "ocr_confidence": 1, "text": "471,907" }, { "bbox": [ 0.8147419761468484, 0.24116161616161616, 0.8268932360446388, 0.2504208754208755 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.8299310510190864, 0.2390572390572391, 0.890079787513149, 0.2546296296296296 ], "ocr": false, "ocr_confidence": 1, "text": "227,076" }, { "bbox": [ 0.04678235060649316, 0.27483164983164976, 0.877320964620469, 0.2916666666666667 ], "ocr": false, "ocr_confidence": 1, "text": "Nine of the rental properties are encumbered by deeds of trust and assignments of rents and leases associated with the properties" }, { "bbox": [ 0.04678235060649316, 0.29292929292929293, 0.5012394707838552, 0.30850168350168355 ], "ocr": false, "ocr_confidence": 1, "text": "(see Note 6). The net book value of these properties as of December 31," }, { "bbox": [ 0.5370856874823371, 0.29292929292929293, 0.646447026562451, 0.30639730639730633 ], "ocr": false, "ocr_confidence": 1, "text": "is $174,185,000." }, { "bbox": [ 0.0479974765962722, 0.32702020202020204, 0.5850831640786093, 0.3430134680134681 ], "ocr": false, "ocr_confidence": 1, "text": "We lease space under noncancelable leases with remaining terms of one to 18 years." }, { "bbox": [ 0.04921260258605124, 0.35984848484848486, 0.8961554174620443, 0.37752525252525254 ], "ocr": false, "ocr_confidence": 1, "text": "A majority of our leases require that the lessee pay all taxes , maintenance, insurance and certain other operating expenses applicable" }, { "bbox": [ 0.04678235060649316, 0.3787878787878788, 0.20231847729821067, 0.3952020202020202 ], "ocr": false, "ocr_confidence": 1, "text": "to the leased properties." }, { "bbox": [ 0.04982016558094077, 0.4158249158249158, 0.07290755938674258, 0.42676767676767674 ], "ocr": false, "ocr_confidence": 1, "text": "We" }, { "bbox": [ 0.06986974441229499, 0.41203703703703703, 0.8937251654824862, 0.4297138047138047 ], "ocr": false, "ocr_confidence": 1, "text": "capitalize interest to properties under construction and renovation during the period the asset is undergoing activities to prepare" }, { "bbox": [ 0.04678235060649316, 0.4297138047138047, 0.8669923937073473, 0.4457070707070707 ], "ocr": false, "ocr_confidence": 1, "text": "it for its intended use. Total interest capitalized for the years ended December 31, 1998 and 1997 was $2,I99,000 and 596,000," }, { "bbox": [ 0.04617478761160364, 0.4473905723905724, 0.48787308489628584, 0.4638047138047138 ], "ocr": false, "ocr_confidence": 1, "text": "respectively. Total interest incurred for the years ended December 31," }, { "bbox": [ 0.5267571165692152, 0.4457070707070707, 0.8511957558402197, 0.46254208754208753 ], "ocr": false, "ocr_confidence": 1, "text": "1997 and 1996 was 516,232,000, 57,139,000 and" }, { "bbox": [ 0.0479974765962722, 0.46506734006734, 0.20960923323688493, 0.4823232323232323 ], "ocr": false, "ocr_confidence": 1, "text": "56,327,000, respectively." }, { "bbox": [ 0.048605039591161726, 0.49747474747474746, 0.8925100394927071, 0.5147306397306397 ], "ocr": false, "ocr_confidence": 1, "text": "Minimum lease payments to be received under the terms of the operating lease agreements, excluding expense reimbursements, as" }, { "bbox": [ 0.04982016558094077, 0.5180976430976431, 0.1543210007019385, 0.5311447811447811 ], "ocr": false, "ocr_confidence": 1, "text": "of December 31," }, { "bbox": [ 0.19320503237486786, 0.5176767676767676, 0.3049966234345398, 0.5294612794612794 ], "ocr": false, "ocr_confidence": 1, "text": "are as follows (in" }, { "bbox": [ 0.30378149744476074, 0.5147306397306397, 0.38458737576506713, 0.5307239057239057 ], "ocr": false, "ocr_confidence": 1, "text": "thousands):" }, { "bbox": [ 0.04982016558094077, 0.5538720538720538, 0.08627394527431206, 0.5648148148148148 ], "ocr": false, "ocr_confidence": 1, "text": "1999" }, { "bbox": [ 0.6713571093529213, 0.5517676767676768, 0.6810781172711536, 0.561026936026936 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.692014251179165, 0.5484006734006733, 0.7424419797549953, 0.563973063973064 ], "ocr": false, "ocr_confidence": 1, "text": "55,800" }, { "bbox": [ 0.05042772857583029, 0.5711279461279462, 0.08688150826920157, 0.5795454545454546 ], "ocr": false, "ocr_confidence": 1, "text": "2000" }, { "bbox": [ 0.6950520661536126, 0.5690235690235691, 0.7424419797549953, 0.5808080808080808 ], "ocr": false, "ocr_confidence": 1, "text": "50,759" }, { "bbox": [ 0.04982016558094077, 0.5867003367003367, 0.08627394527431206, 0.5968013468013468 ], "ocr": false, "ocr_confidence": 1, "text": "2OO1" }, { "bbox": [ 0.6926218141740546, 0.5820707070707071, 0.7418344167601058, 0.5972222222222222 ], "ocr": false, "ocr_confidence": 1, "text": "43,870" }, { "bbox": [ 0.05042772857583029, 0.6039562289562289, 0.08566638227942254, 0.6123737373737373 ], "ocr": false, "ocr_confidence": 1, "text": "2002" }, { "bbox": [ 0.6938369401638337, 0.5980639730639731, 0.7430495427498849, 0.6144781144781145 ], "ocr": false, "ocr_confidence": 1, "text": "38,459" }, { "bbox": [ 0.04982016558094077, 0.6203703703703703, 0.08627394527431206, 0.6313131313131313 ], "ocr": false, "ocr_confidence": 1, "text": "2003" }, { "bbox": [ 0.6944445031587231, 0.6157407407407408, 0.7442646687396639, 0.630892255892256 ], "ocr": false, "ocr_confidence": 1, "text": "35.879" }, { "bbox": [ 0.04982016558094077, 0.6346801346801347, 0.11908234699834622, 0.6456228956228957 ], "ocr": false, "ocr_confidence": 1, "text": "Thereafter" }, { "bbox": [ 0.6847234952404908, 0.6342592592592592, 0.7424419797549953, 0.6464646464646465 ], "ocr": false, "ocr_confidence": 1, "text": "190,19o" }, { "bbox": [ 0.6713571093529213, 0.6510942760942761, 0.6810781172711536, 0.6603535353535354 ], "ocr": false, "ocr_confidence": 1, "text": "$" }, { "bbox": [ 0.6889764362047174, 0.6515151515151515, 0.7412268537652164, 0.6632996632996634 ], "ocr": false, "ocr_confidence": 1, "text": "414,957" }, { "bbox": [ 0.05042772857583029, 0.6931818181818182, 0.21446973719600113, 0.7411616161616161 ], "ocr": false, "ocr_confidence": 1, "text": "Four" }, { "bbox": [ 0.05103529157071981, 0.7516835016835017, 0.25396133186382003, 0.7617845117845118 ], "ocr": false, "ocr_confidence": 1, "text": "SECURED NOTE RECeivable" }, { "bbox": [ 0.05042772857583029, 0.7655723905723906, 0.4732915730189373, 0.7811447811447811 ], "ocr": false, "ocr_confidence": 1, "text": "In connection with the acquisition of a Life Science Facility in San" }, { "bbox": [ 0.5188587976356515, 0.7668350168350169, 0.648877278542009, 0.7777777777777778 ], "ocr": false, "ocr_confidence": 1, "text": "California in March" }, { "bbox": [ 0.6889764362047174, 0.7659932659932659, 0.8931176024875966, 0.7777777777777778 ], "ocr": false, "ocr_confidence": 1, "text": "we made a $6,000,000 loan to" }, { "bbox": [ 0.05042772857583029, 0.7832491582491583, 0.8985856694416023, 0.7992424242424242 ], "ocr": false, "ocr_confidence": 1, "text": "the sole tenant of the property, fully secured by a first deed of trust on certain improvements at the property The loan bears interest" }, { "bbox": [ 0.05103529157071981, 0.8021885521885522, 0.20657141826243733, 0.8152356902356902 ], "ocr": false, "ocr_confidence": 1, "text": "at a rate of 11% per year," }, { "bbox": [ 0.20414116628287923, 0.8000841750841751, 0.8949402914722653, 0.8164983164983165 ], "ocr": false, "ocr_confidence": 1, "text": "payable monthly; and matures in March 2002. The loan is cross-defaulted to the lease with the sole tenant." }, { "bbox": [ 0.05164285456560933, 0.8164983164983165, 0.8955478544671547, 0.8324915824915825 ], "ocr": false, "ocr_confidence": 1, "text": "Under certain circumstances , we may obtain title to the improvements that secure the loan, and, in such event; we may also require" }, { "bbox": [ 0.05103529157071981, 0.8358585858585859, 0.7187470229543039, 0.8497474747474747 ], "ocr": false, "ocr_confidence": 1, "text": "the sole tenant at the property to lease such improvements back from us for an additional rental amount" }, { "bbox": [ 0.7032413710772631, 0.14369284400443047, 0.74032830478024, 0.15302432771274124 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.6905915568899637, 0.19247336634133005, 0.73961173307997, 0.20314952928156563 ], "ocr": false, "ocr_confidence": 1, "text": "20,536" }, { "bbox": [ 0.4991002047943839, 0.29604974636133274, 0.5386173904769189, 0.3053812300696437 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.4857727828853653, 0.45007471724395426, 0.5276422925903567, 0.45985794268870567 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.15161313569612847, 0.5199400371092741, 0.1940902083960093, 0.5297232625540256 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.6459677478315914, 0.7678544996784513, 0.6888481519406874, 0.7792835474595958 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.47458566871875135, 0.7656266526880049, 0.5175647019358373, 0.7819322698709177 ], "ocr": false, "ocr_confidence": 1, "text": "Diego," } ]
[ { "bbox": [ 0.041921846647376984, 0.039141414141414144, 0.24606301293025623, 0.08796298865116003 ], "data": [], "index_in_doc": 347, "label": "picture", "text": "" }, { "bbox": [ 0.045964947028657624, 0.09848484848484848, 0.19806553169864624, 0.10858585858585859 ], "data": [], "index_in_doc": 348, "label": "section_header", "text": "Rental Pnoperties" }, { "bbox": [ 0.04617478877043808, 0.11153196084378945, 0.3469184608112412, 0.1296296553178267 ], "data": [], "index_in_doc": 349, "label": "text", "text": "Rental properties are as follows (in thousands):" }, { "bbox": [ 0.044555708157056076, 0.12709677339804293, 0.9021930005583543, 0.25744744503136835 ], "data": [ { "html_seq": "<table><tr><td></td><th colspan=\"2\">DECEMBFR 31</th></tr><tr><td></td><th>1998</th><th>1997</th></tr><tr><td>Land</td><td>76,254</td><td>43,485</td></tr><tr><td>Building and improvements</td><td>393,728</td><td>189.528</td></tr><tr><td>Tenant and other improvements</td><td>20,536</td><td>2,867</td></tr><tr><td></td><td>490,518</td><td>235,880</td></tr><tr><td>Less accumulated depreciation</td><td>(18,611)</td><td>(8,804)</td></tr><tr><td></td><td>5 471,907</td><td>5 227,076</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 350, "label": "table", "text": "" }, { "bbox": [ 0.04678234944765871, 0.2748316755198469, 0.8773209831618203, 0.30850165781348643 ], "data": [], "index_in_doc": 351, "label": "text", "text": "Nine of the rental properties are encumbered by deeds of trust and assignments of rents and leases associated with the properties (see Note 6). The net book value of these properties as of December 31, is $174,185,000. 1998" }, { "bbox": [ 0.047760248119990426, 0.32702020202020204, 0.5850831640786093, 0.34301349370166506 ], "data": [], "index_in_doc": 352, "label": "text", "text": "We lease space under noncancelable leases with remaining terms of one to 18 years." }, { "bbox": [ 0.04649338596629605, 0.35984848484848486, 0.8961553989206931, 0.3952020202020202 ], "data": [], "index_in_doc": 353, "label": "text", "text": "A majority of our leases require that the lessee pay all taxes , maintenance, insurance and certain other operating expenses applicable to the leased properties." }, { "bbox": [ 0.04617478877043808, 0.4120370498811356, 0.8945768439067798, 0.4823232323232323 ], "data": [], "index_in_doc": 354, "label": "text", "text": "We capitalize interest to properties under construction and renovation during the period the asset is undergoing activities to prepare it for its intended use. Total interest capitalized for the years ended December 31, 1998 and 1997 was $2,I99,000 and 596,000, respectively. Total interest incurred for the years ended December 31, 1997 and 1996 was 516,232,000, 57,139,000 and 56,327,000, respectively. 1998," }, { "bbox": [ 0.048605038432327274, 0.49747474747474746, 0.8926021343839308, 0.5311447683006826 ], "data": [], "index_in_doc": 355, "label": "text", "text": "Minimum lease payments to be received under the terms of the operating lease agreements, excluding expense reimbursements, as of December 31, are as follows (in thousands): 1998," }, { "bbox": [ 0.04816233702013268, 0.5452835005943222, 0.753527705284185, 0.6653844659978693 ], "data": [ { "html_seq": "<table><tr><td>1999</td><td>5 55,800</td></tr><tr><td>2000</td><td>50,759</td></tr><tr><td>2OO1</td><td>43,870</td></tr><tr><td>2002</td><td>38,459</td></tr><tr><td>2003</td><td>35.879</td></tr><tr><td>Thereafter</td><td>190,19o</td></tr><tr><td></td><td>$ 414,957</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 356, "label": "table", "text": "" }, { "bbox": [ 0.05042772741699584, 0.6931818181818182, 0.21446973256066332, 0.7411616161616161 ], "data": [], "index_in_doc": 357, "label": "section_header", "text": "Four" }, { "bbox": [ 0.0509948841723647, 0.7516834952614524, 0.2539613225931444, 0.7617845053624626 ], "data": [], "index_in_doc": 358, "label": "section_header", "text": "SECURED NOTE RECeivable" }, { "bbox": [ 0.050378131620305314, 0.7655723841503413, 0.8985856694416023, 0.8497474747474747 ], "data": [], "index_in_doc": 359, "label": "text", "text": "In connection with the acquisition of a Life Science Facility in San California in March we made a $6,000,000 loan to the sole tenant of the property, fully secured by a first deed of trust on certain improvements at the property The loan bears interest at a rate of 11% per year, payable monthly; and matures in March 2002. The loan is cross-defaulted to the lease with the sole tenant. Under certain circumstances , we may obtain title to the improvements that secure the loan, and, in such event; we may also require the sole tenant at the property to lease such improvements back from us for an additional rental amount 1998, Diego," } ]
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Five UnsecuRed Line Of CRedit Alexandria has an unsecured line of credit which provides for borrowings of up to $250 million. Prior to August our line of credit provided for borrowings of up to million Borrowings under the line of credit bear interest at a floating rate based on our election of either a LIBOR based rate or the higher of the bank's reference rate and the Federal Funds rate plus 0.5%. For each LIBOR based advance, we must elect to fix the rate for a of one, two, three or six months 1998, 5150 period The line of credit contains financial covenants, including, among other maintenance of minimum market net worth; a total liabilities to gross asset value ratio, and a fixed charge coverage ratio. In addition, the terms of the line of credit restrict, among other certain investments, indebtedness, distributions and mergers. Borrowings under the line of credit are limited to an amount based on a of unencumbered assets. Accordingly; as we acquire additional unencumbered properties, borrowings available under the line of credit will increase, but may not exceed million . As of December 31, borrowings under the line of it were limited to approximately S214,000,000, and carried a weighted average interest rate of 6.489. things, things, pool 5250 1998, cred- The line of credit expires 31, 2000 and provides for annual extensions (provided there is no default) for two additional one-year periods upon notice by the company and consent of the participating banks. May We enter into interest rate swap agreements to modify the interest characteristics of our outstanding debt. These agreements involve an exchange of fixed and interest payments without the exchange of the underlying principal amount (the "notional amount ) foating In September we entered into an interest rate swap agreement with BankBoston, N.A. (the Bank) to hedge our exposure to variable interest rates associated with our line of credit. Interest is calculated at a fixed interest rate of 5.43% through 31, 2000 on a notional amount of S5o million and interest received is calculated at one month LIBOR The net difference between the interest and the interest received is reflected as an adjustment to interest expense. The fair value of the swap agreement and changes in the fair value as a result of changes in market interest rates are not recognized in the financial statements. We are exposed to loss in the event the Bank is unable to perform under the swap agreement or in the event one month LIBOR is less than 5.43%. 1998, Paid May paid In June 1998, the Financial Accounting Standards Board issued Statement No. 133, "Accounting for Derivative Instruments and Hedging Activities , which is required to be adopted in fiscal years beginning after June 15, 1999. When adopted , Statement 133 will require us to recognize all derivatives on the balance sheet at fair value. Based on the definitions provided in Statement 133, our interest rate swap agreement will be classified as a cash flow hedge, with changes in the fair value recorded as an adjustment to comprehensive income, which will be a separate component of shareholders' equity: 43
[ { "bbox": [ 0.08688150826920157, 0.03535353535353535, 0.2345193160273553, 0.08712121212121213 ], "ocr": false, "ocr_confidence": 1, "text": "Five" }, { "bbox": [ 0.08931176024875967, 0.09722222222222222, 0.2946680525214179, 0.10563973063973059 ], "ocr": false, "ocr_confidence": 1, "text": "UnsecuRed Line Of CRedit" }, { "bbox": [ 0.08809663425898062, 0.11069023569023564, 0.7065957630565136, 0.12626262626262627 ], "ocr": false, "ocr_confidence": 1, "text": "Alexandria has an unsecured line of credit which provides for borrowings of up to $250 million." }, { "bbox": [ 0.7096335780309612, 0.11237373737373738, 0.8141344131519589, 0.12584175084175078 ], "ocr": false, "ocr_confidence": 1, "text": "Prior to August" }, { "bbox": [ 0.8530184448248882, 0.1119528619528619, 0.9271411302014099, 0.12289562289562295 ], "ocr": false, "ocr_confidence": 1, "text": "our line of" }, { "bbox": [ 0.08809663425898062, 0.127946127946128, 0.33962771414324255, 0.14393939393939395 ], "ocr": false, "ocr_confidence": 1, "text": "credit provided for borrowings of up to" }, { "bbox": [ 0.3724361158672767, 0.127946127946128, 0.942330205073648, 0.14393939393939395 ], "ocr": false, "ocr_confidence": 1, "text": "million Borrowings under the line of credit bear interest at a floating rate based on our" }, { "bbox": [ 0.08809663425898062, 0.14562289562289568, 0.9046612993904976, 0.16119528619528614 ], "ocr": false, "ocr_confidence": 1, "text": "election of either a LIBOR based rate or the higher of the bank's reference rate and the Federal Funds rate plus 0.5%. For each" }, { "bbox": [ 0.08870419725387015, 0.16372053872053868, 0.4483814902284669, 0.17592592592592599 ], "ocr": false, "ocr_confidence": 1, "text": "LIBOR based advance, we must elect to fix the rate for a" }, { "bbox": [ 0.49334115185029154, 0.16329966329966336, 0.7023428220922868, 0.17592592592592599 ], "ocr": false, "ocr_confidence": 1, "text": "of one, two, three or six months" }, { "bbox": [ 0.08931176024875967, 0.1965488215488215, 0.5449840064159008, 0.2125420875420876 ], "ocr": false, "ocr_confidence": 1, "text": "The line of credit contains financial covenants, including, among other" }, { "bbox": [ 0.592981483012173, 0.19739057239057245, 0.9301789451758574, 0.21001683501683507 ], "ocr": false, "ocr_confidence": 1, "text": "maintenance of minimum market net worth; a total" }, { "bbox": [ 0.0874890712640911, 0.21422558922558918, 0.9398999530940898, 0.23021885521885527 ], "ocr": false, "ocr_confidence": 1, "text": "liabilities to gross asset value ratio, and a fixed charge coverage ratio. In addition, the terms of the line of credit restrict, among other" }, { "bbox": [ 0.13609411085525283, 0.23232323232323232, 0.5346554355027789, 0.24579124579124575 ], "ocr": false, "ocr_confidence": 1, "text": "certain investments, indebtedness, distributions and mergers." }, { "bbox": [ 0.5340478725078894, 0.23021885521885527, 0.9295713821809679, 0.2474747474747475 ], "ocr": false, "ocr_confidence": 1, "text": "Borrowings under the line of credit are limited to an amount" }, { "bbox": [ 0.0899193232436492, 0.25, 0.16039663065083368, 0.26178451178451184 ], "ocr": false, "ocr_confidence": 1, "text": "based on a" }, { "bbox": [ 0.19016721740042022, 0.2474747474747475, 0.9107369293393929, 0.2643097643097644 ], "ocr": false, "ocr_confidence": 1, "text": "of unencumbered assets. Accordingly; as we acquire additional unencumbered properties, borrowings available" }, { "bbox": [ 0.0899193232436492, 0.26683501683501687, 0.45324199418758304, 0.2803030303030303 ], "ocr": false, "ocr_confidence": 1, "text": "under the line of credit will increase, but may not exceed" }, { "bbox": [ 0.4896957738809544, 0.26641414141414144, 0.5443764434210113, 0.2781986531986532 ], "ocr": false, "ocr_confidence": 1, "text": "million ." }, { "bbox": [ 0.5492369473801274, 0.26683501683501687, 0.676825176306927, 0.2803030303030303 ], "ocr": false, "ocr_confidence": 1, "text": "As of December 31," }, { "bbox": [ 0.7169243339696354, 0.26515151515151514, 0.9083066773598347, 0.2811447811447811 ], "ocr": false, "ocr_confidence": 1, "text": "borrowings under the line of" }, { "bbox": [ 0.08870419725387015, 0.2840909090909091, 0.48240501794228013, 0.29797979797979796 ], "ocr": false, "ocr_confidence": 1, "text": "it were limited to approximately S214,000,000, and carried a" }, { "bbox": [ 0.48058232895761155, 0.2824074074074074, 0.7454797947294429, 0.2996632996632997 ], "ocr": false, "ocr_confidence": 1, "text": "weighted average interest rate of 6.489." }, { "bbox": [ 0.0899193232436492, 0.319023569023569, 0.2503159538944829, 0.33164983164983175 ], "ocr": false, "ocr_confidence": 1, "text": "The line of credit expires" }, { "bbox": [ 0.28069410363895897, 0.319023569023569, 0.3681831749030501, 0.3324915824915824 ], "ocr": false, "ocr_confidence": 1, "text": "31, 2000 and" }, { "bbox": [ 0.3663604859183815, 0.31691919191919193, 0.9362545751247526, 0.332912457912458 ], "ocr": false, "ocr_confidence": 1, "text": "provides for annual extensions (provided there is no default) for two additional one-year" }, { "bbox": [ 0.08688150826920157, 0.33501683501683494, 0.577792408139935, 0.3505892255892257 ], "ocr": false, "ocr_confidence": 1, "text": "periods upon notice by the company and consent of the participating banks." }, { "bbox": [ 0.0899193232436492, 0.37037037037037035, 0.6537377825011252, 0.3838383838383838 ], "ocr": false, "ocr_confidence": 1, "text": "We enter into interest rate swap agreements to modify the interest characteristics of our" }, { "bbox": [ 0.6513075305215671, 0.36742424242424243, 0.9398999530940898, 0.3846801346801347 ], "ocr": false, "ocr_confidence": 1, "text": "outstanding debt. These agreements involve" }, { "bbox": [ 0.0905268862385387, 0.39015151515151514, 0.10875377608522435, 0.3985690235690236 ], "ocr": false, "ocr_confidence": 1, "text": "an" }, { "bbox": [ 0.1069310871005558, 0.38636363636363635, 0.24970839089959335, 0.4015151515151515 ], "ocr": false, "ocr_confidence": 1, "text": "exchange of fixed and" }, { "bbox": [ 0.3007436824703132, 0.3851010101010101, 0.8840041575642539, 0.4019360269360269 ], "ocr": false, "ocr_confidence": 1, "text": "interest payments without the exchange of the underlying principal amount (the \"notional" }, { "bbox": [ 0.0899193232436492, 0.4057239057239057, 0.1543210007019385, 0.4166666666666667 ], "ocr": false, "ocr_confidence": 1, "text": "amount )" }, { "bbox": [ 0.0899193232436492, 0.4393939393939394, 0.1798386464872984, 0.4528619528619529 ], "ocr": false, "ocr_confidence": 1, "text": "In September" }, { "bbox": [ 0.2199378041500068, 0.438973063973064, 0.7132789560002982, 0.4528619528619529 ], "ocr": false, "ocr_confidence": 1, "text": "we entered into an interest rate swap agreement with BankBoston, N.A. (the" }, { "bbox": [ 0.7181394599594144, 0.4393939393939394, 0.9283562561911889, 0.45202020202020204 ], "ocr": false, "ocr_confidence": 1, "text": "Bank) to hedge our exposure to" }, { "bbox": [ 0.08870419725387015, 0.4553872053872054, 0.4982016558094076, 0.4684343434343434 ], "ocr": false, "ocr_confidence": 1, "text": "variable interest rates associated with our line of credit. Interest" }, { "bbox": [ 0.5279722425589942, 0.4553872053872054, 0.8682075196971263, 0.47095959595959597 ], "ocr": false, "ocr_confidence": 1, "text": "is calculated at a fixed interest rate of 5.43% through" }, { "bbox": [ 0.8991932324364919, 0.45875420875420875, 0.9198503742627356, 0.46885521885521886 ], "ocr": false, "ocr_confidence": 1, "text": "31," }, { "bbox": [ 0.08931176024875967, 0.47180134680134683, 0.9301789451758574, 0.48737373737373735 ], "ocr": false, "ocr_confidence": 1, "text": "2000 on a notional amount of S5o million and interest received is calculated at one month LIBOR The net difference between the" }, { "bbox": [ 0.08931176024875967, 0.4911616161616162, 0.14216974080414804, 0.5029461279461279 ], "ocr": false, "ocr_confidence": 1, "text": "interest" }, { "bbox": [ 0.17254789054862413, 0.4903198653198653, 0.40585208058620037, 0.5029461279461279 ], "ocr": false, "ocr_confidence": 1, "text": "and the interest received is reflected" }, { "bbox": [ 0.41010502155042705, 0.4936868686868687, 0.4465588012437983, 0.5012626262626263 ], "ocr": false, "ocr_confidence": 1, "text": "as an" }, { "bbox": [ 0.4453436752540193, 0.4894781144781145, 0.9216730632474042, 0.5050505050505051 ], "ocr": false, "ocr_confidence": 1, "text": "adjustment to interest expense. The fair value of the swap agreement and" }, { "bbox": [ 0.08931176024875967, 0.5067340067340067, 0.8937251654824862, 0.5231481481481481 ], "ocr": false, "ocr_confidence": 1, "text": "changes in the fair value as a result of changes in market interest rates are not recognized in the financial statements. We are" }, { "bbox": [ 0.0899193232436492, 0.5235690235690236, 0.9022310474109395, 0.5395622895622896 ], "ocr": false, "ocr_confidence": 1, "text": "exposed to loss in the event the Bank is unable to perform under the swap agreement or in the event one month LIBOR is less" }, { "bbox": [ 0.08931176024875967, 0.5416666666666666, 0.16829494958439745, 0.5568181818181818 ], "ocr": false, "ocr_confidence": 1, "text": "than 5.43%." }, { "bbox": [ 0.08931176024875967, 0.5744949494949495, 0.9095218033496137, 0.5917508417508418 ], "ocr": false, "ocr_confidence": 1, "text": "In June 1998, the Financial Accounting Standards Board issued Statement No. 133, \"Accounting for Derivative Instruments and" }, { "bbox": [ 0.0905268862385387, 0.593013468013468, 0.21568486318578015, 0.609006734006734 ], "ocr": false, "ocr_confidence": 1, "text": "Hedging Activities ," }, { "bbox": [ 0.2205453671448963, 0.5921717171717171, 0.7163167709747459, 0.6081649831649832 ], "ocr": false, "ocr_confidence": 1, "text": "which is required to be adopted in fiscal years beginning after June 15, 1999." }, { "bbox": [ 0.7205697119389726, 0.5942760942760943, 0.9405075160889793, 0.6069023569023569 ], "ocr": false, "ocr_confidence": 1, "text": "When adopted , Statement 133 will" }, { "bbox": [ 0.08688150826920157, 0.6098484848484849, 0.5474142583954589, 0.6262626262626263 ], "ocr": false, "ocr_confidence": 1, "text": "require us to recognize all derivatives on the balance sheet at fair value." }, { "bbox": [ 0.5516671993596856, 0.6102693602693603, 0.9125596183240614, 0.6237373737373737 ], "ocr": false, "ocr_confidence": 1, "text": "Based on the definitions provided in Statement 133, our" }, { "bbox": [ 0.08931176024875967, 0.6275252525252525, 0.9447604570532061, 0.6435185185185185 ], "ocr": false, "ocr_confidence": 1, "text": "interest rate swap agreement will be classified as a cash flow hedge, with changes in the fair value recorded as an adjustment to com-" }, { "bbox": [ 0.08870419725387015, 0.6443602693602694, 0.6033100539252949, 0.6599326599326599 ], "ocr": false, "ocr_confidence": 1, "text": "prehensive income, which will be a separate component of shareholders' equity:" }, { "bbox": [ 0.5012394707838552, 0.9574915824915825, 0.5243268645896572, 0.9743265993265993 ], "ocr": false, "ocr_confidence": 1, "text": "43" }, { "bbox": [ 0.8108189851512593, 0.11421613138536847, 0.8545111838409193, 0.12399935683011984 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.33965889227236684, 0.12843179718259617, 0.37179737474326285, 0.14345372470292578 ], "ocr": false, "ocr_confidence": 1, "text": "5150" }, { "bbox": [ 0.446849787233885, 0.16557836588995226, 0.49426529184998386, 0.1749098495982632 ], "ocr": false, "ocr_confidence": 1, "text": "period" }, { "bbox": [ 0.5450479068663994, 0.19660629632402982, 0.5904873305821163, 0.21248461276687927 ], "ocr": false, "ocr_confidence": 1, "text": "things," }, { "bbox": [ 0.08941859206997492, 0.23110918693479698, 0.13598727903403757, 0.24826791744230747 ], "ocr": false, "ocr_confidence": 1, "text": "things," }, { "bbox": [ 0.1588649276562518, 0.25227870259028906, 0.19291404638478118, 0.26161018629859983 ], "ocr": false, "ocr_confidence": 1, "text": "pool" }, { "bbox": [ 0.4551436528822867, 0.26562665268800495, 0.48779411518625077, 0.28193226987091774 ], "ocr": false, "ocr_confidence": 1, "text": "5250" }, { "bbox": [ 0.675332437290896, 0.2690982862675233, 0.7184170729856664, 0.27888151171227465 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.9043028391555573, 0.26828956443096996, 0.9420811023136987, 0.2771649810235755 ], "ocr": false, "ocr_confidence": 1, "text": "cred-" }, { "bbox": [ 0.2521520262464501, 0.3178299162689905, 0.2806807202716603, 0.33242260898353493 ], "ocr": false, "ocr_confidence": 1, "text": "May" }, { "bbox": [ 0.25103034871058766, 0.38514959097520096, 0.30124441364398746, 0.40230832148271145 ], "ocr": false, "ocr_confidence": 1, "text": "foating" }, { "bbox": [ 0.1777383444763779, 0.4416572088264458, 0.22021541717625873, 0.45144043427119723 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.4949562725355378, 0.4580457569137207, 0.531217625832864, 0.4687219198539561 ], "ocr": false, "ocr_confidence": 1, "text": "Paid" }, { "bbox": [ 0.8700435920490934, 0.45503530347437765, 0.8985722860743037, 0.46962799618892204 ], "ocr": false, "ocr_confidence": 1, "text": "May" }, { "bbox": [ 0.1386800723714295, 0.49350117827709583, 0.17360730700178456, 0.5014483166723991 ], "ocr": false, "ocr_confidence": 1, "text": "paid" } ]
[ { "bbox": [ 0.08688151058687048, 0.03535353535353535, 0.2345193252980309, 0.08712121212121213 ], "data": [], "index_in_doc": 360, "label": "section_header", "text": "Five" }, { "bbox": [ 0.08857615300041151, 0.09716380726207387, 0.29466806179209354, 0.10564183707189079 ], "data": [], "index_in_doc": 361, "label": "section_header", "text": "UnsecuRed Line Of CRedit" }, { "bbox": [ 0.08809663194131173, 0.11069026137843277, 0.94268642151218, 0.17696157127919823 ], "data": [], "index_in_doc": 362, "label": "text", "text": "Alexandria has an unsecured line of credit which provides for borrowings of up to $250 million. Prior to August our line of credit provided for borrowings of up to million Borrowings under the line of credit bear interest at a floating rate based on our election of either a LIBOR based rate or the higher of the bank's reference rate and the Federal Funds rate plus 0.5%. For each LIBOR based advance, we must elect to fix the rate for a of one, two, three or six months 1998, 5150 period" }, { "bbox": [ 0.0874890712640911, 0.19654884723701863, 0.9420811205621322, 0.29966327397510256 ], "data": [], "index_in_doc": 363, "label": "text", "text": "The line of credit contains financial covenants, including, among other maintenance of minimum market net worth; a total liabilities to gross asset value ratio, and a fixed charge coverage ratio. In addition, the terms of the line of credit restrict, among other certain investments, indebtedness, distributions and mergers. Borrowings under the line of credit are limited to an amount based on a of unencumbered assets. Accordingly; as we acquire additional unencumbered properties, borrowings available under the line of credit will increase, but may not exceed million . As of December 31, borrowings under the line of it were limited to approximately S214,000,000, and carried a weighted average interest rate of 6.489. things, things, pool 5250 1998, cred-" }, { "bbox": [ 0.08688151058687048, 0.31691919191919193, 0.936254612207455, 0.3505892512774227 ], "data": [], "index_in_doc": 364, "label": "text", "text": "The line of credit expires 31, 2000 and provides for annual extensions (provided there is no default) for two additional one-year periods upon notice by the company and consent of the participating banks. May" }, { "bbox": [ 0.08888688982221106, 0.36742424242424243, 0.9407695053809041, 0.4177170185127644 ], "data": [], "index_in_doc": 365, "label": "text", "text": "We enter into interest rate swap agreements to modify the interest characteristics of our outstanding debt. These agreements involve an exchange of fixed and interest payments without the exchange of the underlying principal amount (the \"notional amount ) foating" }, { "bbox": [ 0.08870419957153904, 0.43897305112896545, 0.9318861771668377, 0.5568181818181818 ], "data": [], "index_in_doc": 366, "label": "text", "text": "In September we entered into an interest rate swap agreement with BankBoston, N.A. (the Bank) to hedge our exposure to variable interest rates associated with our line of credit. Interest is calculated at a fixed interest rate of 5.43% through 31, 2000 on a notional amount of S5o million and interest received is calculated at one month LIBOR The net difference between the interest and the interest received is reflected as an adjustment to interest expense. The fair value of the swap agreement and changes in the fair value as a result of changes in market interest rates are not recognized in the financial statements. We are exposed to loss in the event the Bank is unable to perform under the swap agreement or in the event one month LIBOR is less than 5.43%. 1998, Paid May paid" }, { "bbox": [ 0.08688151058687048, 0.5744949494949495, 0.9447604199705036, 0.6599326470885614 ], "data": [], "index_in_doc": 367, "label": "text", "text": "In June 1998, the Financial Accounting Standards Board issued Statement No. 133, \"Accounting for Derivative Instruments and Hedging Activities , which is required to be adopted in fiscal years beginning after June 15, 1999. When adopted , Statement 133 will require us to recognize all derivatives on the balance sheet at fair value. Based on the definitions provided in Statement 133, our interest rate swap agreement will be classified as a cash flow hedge, with changes in the fair value recorded as an adjustment to comprehensive income, which will be a separate component of shareholders' equity:" }, { "bbox": [ 0.5012394707838552, 0.9574915808860702, 0.5243268460483059, 0.9743265985238432 ], "data": [], "index_in_doc": 368, "label": "page_footer", "text": "43" } ]
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Secured noTes PaYABLe Secured notes payable consists of the following (in thousands): All of our secured notes payable; except for the note secured by 1431 Harbor Parkway require monthly payments of principal and interest. The note secured by 1431 Harbor Bay Parkway required monthly payments of interest through December 31, 1998 and requires both monthly payments of interest and semi-annual principal payments beginning January 1999. Bay Future principal payments due secured notes as of December 31, are as follows (in thousands) : 1998, payable on Seven ISSUAnCE Of CoMMon Stock On May 29. we sold 1,I50,000 shares of our common stock to PaineWebber Incorporated for inclusion in the PaineWebber Equity Trust REIT Series I, a unit investment trust. The shares were issued at a of $30.5625 per share (before discounts and commissions) resulting in aggregate proceeds to us, net of offering costs of million, of approximately $32.7 million. 1998, price 52.4 44
[ { "bbox": [ 0.05407310654516742, 0.03745791245791241, 0.16221931963550226, 0.0854377104377104 ], "ocr": false, "ocr_confidence": 1, "text": "Six" }, { "bbox": [ 0.0534655435502779, 0.09680134680134675, 0.24059494597625053, 0.10690235690235686 ], "ocr": false, "ocr_confidence": 1, "text": "Secured noTes PaYABLe" }, { "bbox": [ 0.05468066954005694, 0.1119528619528619, 0.14581511877348516, 0.12373737373737374 ], "ocr": false, "ocr_confidence": 1, "text": "Secured notes" }, { "bbox": [ 0.1439924297888166, 0.10984848484848485, 0.4574949351518097, 0.12710437710437705 ], "ocr": false, "ocr_confidence": 1, "text": "payable consists of the following (in thousands):" }, { "bbox": [ 0.717531896964525, 0.13383838383838384, 0.7934772713257151, 0.14393939393939395 ], "ocr": false, "ocr_confidence": 1, "text": "DECEMBER 31" }, { "bbox": [ 0.7144940819900774, 0.1481481481481482, 0.7473024837141115, 0.16077441077441082 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.8639545787328996, 0.1506734006734007, 0.8967629804569338, 0.16077441077441082 ], "ocr": false, "ocr_confidence": 1, "text": "1997" }, { "bbox": [ 0.05407310654516742, 0.16792929292929293, 0.38944787972418327, 0.1856060606060606 ], "ocr": false, "ocr_confidence": 1, "text": "9% note, due December 2014, secured by 3535/3565" }, { "bbox": [ 0.07655293735607971, 0.1864478114478114, 0.25639158384337807, 0.1986531986531987 ], "ocr": false, "ocr_confidence": 1, "text": "General Atomics Court, San" }, { "bbox": [ 0.3025663714549817, 0.18686868686868688, 0.3268688912505626, 0.1986531986531987 ], "ocr": false, "ocr_confidence": 1, "text": "CA" }, { "bbox": [ 0.6774327393018166, 0.18728956228956234, 0.6871537472200488, 0.1965488215488215 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.8232478580753018, 0.1864478114478114, 0.8353991179730921, 0.1965488215488215 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.8487655038606616, 0.18434343434343434, 0.8991932324364919, 0.19991582491582496 ], "ocr": false, "ocr_confidence": 1, "text": "18,050" }, { "bbox": [ 0.0534655435502779, 0.20370370370370375, 0.1579663786712756, 0.21717171717171718 ], "ocr": false, "ocr_confidence": 1, "text": "7-75% note, due" }, { "bbox": [ 0.18773696542086216, 0.20244107744107748, 0.3675756119081605, 0.21759259259259264 ], "ocr": false, "ocr_confidence": 1, "text": "2016, secured by II02/1124" }, { "bbox": [ 0.07655293735607971, 0.21927609427609424, 0.2624672137922733, 0.23148148148148154 ], "ocr": false, "ocr_confidence": 1, "text": "Columbia Street, Seattle; WA" }, { "bbox": [ 0.6986974441229498, 0.22138047138047143, 0.7485176097038906, 0.23232323232323232 ], "ocr": false, "ocr_confidence": 1, "text": "20,729" }, { "bbox": [ 0.8505881928453302, 0.2196969696969697, 0.8979781064467128, 0.23232323232323232 ], "ocr": false, "ocr_confidence": 1, "text": "2I,267" }, { "bbox": [ 0.05468066954005694, 0.2365319865319866, 0.41071258454531656, 0.25 ], "ocr": false, "ocr_confidence": 1, "text": "7.165% note, due January 2014, secured by 1431 Harbor" }, { "bbox": [ 0.10267814613632914, 0.25210437710437705, 0.2503159538944829, 0.26599326599326595 ], "ocr": false, "ocr_confidence": 1, "text": "Parkway Alameda, CA" }, { "bbox": [ 0.7053806370667345, 0.25126262626262624, 0.7497327356936696, 0.26683501683501687 ], "ocr": false, "ocr_confidence": 1, "text": "8,500" }, { "bbox": [ 0.8548411338095568, 0.25126262626262624, 0.8991932324364919, 0.26683501683501687 ], "ocr": false, "ocr_confidence": 1, "text": "8,500" }, { "bbox": [ 0.05468066954005694, 0.2685185185185185, 0.4374453563204555, 0.281986531986532 ], "ocr": false, "ocr_confidence": 1, "text": "8.689 note, due December 2006, secured by 1oo/800/801" }, { "bbox": [ 0.07716050035096925, 0.28535353535353536, 0.2624672137922733, 0.29924242424242425 ], "ocr": false, "ocr_confidence": 1, "text": "Capitola Drive, Durham; NC" }, { "bbox": [ 0.703557948082066, 0.2878787878787879, 0.7485176097038906, 0.29882154882154877 ], "ocr": false, "ocr_confidence": 1, "text": "12,547" }, { "bbox": [ 0.05285798055538837, 0.30176767676767674, 0.47086132103937917, 0.31691919191919193 ], "ocr": false, "ocr_confidence": 1, "text": "7.22% note, due May 2008, secured by 14225 Newbrook Avenue," }, { "bbox": [ 0.07655293735607971, 0.31691919191919193, 0.4550646831722516, 0.3341750841750843 ], "ocr": false, "ocr_confidence": 1, "text": "Chantilly; VA and 3000/3018 Western Avenue, Seattle, WA" }, { "bbox": [ 0.6999125701127288, 0.319023569023569, 0.7485176097038906, 0.33164983164983175 ], "ocr": false, "ocr_confidence": 1, "text": "36,326" }, { "bbox": [ 0.05468066954005694, 0.33585858585858586, 0.16282688263039177, 0.34932659932659943 ], "ocr": false, "ocr_confidence": 1, "text": "9.125% note due" }, { "bbox": [ 0.19320503237486786, 0.33501683501683494, 0.4423058602795717, 0.3484848484848485 ], "ocr": false, "ocr_confidence": 1, "text": "2007, with an effective interest rate of" }, { "bbox": [ 0.07594537436119018, 0.3505892255892257, 0.4574949351518097, 0.36574074074074076 ], "ocr": false, "ocr_confidence": 1, "text": "7.25% (includes unamortized premium of $2,262) , secured" }, { "bbox": [ 0.07655293735607971, 0.3686868686868687, 0.33780502515857397, 0.3821548821548822 ], "ocr": false, "ocr_confidence": 1, "text": "by 620 Memorial Drive, Cambridge, MA" }, { "bbox": [ 0.6999125701127288, 0.37037037037037035, 0.7485176097038906, 0.3821548821548822 ], "ocr": false, "ocr_confidence": 1, "text": "20,149" }, { "bbox": [ 0.6762176133120374, 0.385942760942761, 0.6871537472200488, 0.3952020202020202 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.6974823181331707, 0.3846801346801347, 0.7485176097038906, 0.39814814814814814 ], "ocr": false, "ocr_confidence": 1, "text": "15.829" }, { "bbox": [ 0.8244629840650807, 0.385942760942761, 0.8353991179730921, 0.3952020202020202 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.8530184448248882, 0.3846801346801347, 0.8979781064467128, 0.39730639730639733 ], "ocr": false, "ocr_confidence": 1, "text": "47,817" }, { "bbox": [ 0.055895795529835986, 0.42003367003367004, 0.20900167024199542, 0.4318181818181818 ], "ocr": false, "ocr_confidence": 1, "text": "All of our secured notes" }, { "bbox": [ 0.20717898125732687, 0.4187710437710438, 0.5413386284465637, 0.43476430976430974 ], "ocr": false, "ocr_confidence": 1, "text": "payable; except for the note secured by 1431 Harbor" }, { "bbox": [ 0.5662487112370341, 0.4187710437710438, 0.8815739055846958, 0.43392255892255893 ], "ocr": false, "ocr_confidence": 1, "text": "Parkway require monthly payments of principal" }, { "bbox": [ 0.05407310654516742, 0.4356060606060606, 0.8973705434518233, 0.4515993265993266 ], "ocr": false, "ocr_confidence": 1, "text": "and interest. The note secured by 1431 Harbor Bay Parkway required monthly payments of interest through December 31, 1998 and" }, { "bbox": [ 0.05285798055538837, 0.4532828282828283, 0.7369739128009896, 0.4692760942760943 ], "ocr": false, "ocr_confidence": 1, "text": "requires both monthly payments of interest and semi-annual principal payments beginning January 1999." }, { "bbox": [ 0.055895795529835986, 0.48863636363636365, 0.2545688948587095, 0.5025252525252525 ], "ocr": false, "ocr_confidence": 1, "text": "Future principal payments due" }, { "bbox": [ 0.2727957847053952, 0.48863636363636365, 0.3645377969337129, 0.5012626262626263 ], "ocr": false, "ocr_confidence": 1, "text": "secured notes" }, { "bbox": [ 0.4167882144942118, 0.489057239057239, 0.5419461914414532, 0.5016835016835016 ], "ocr": false, "ocr_confidence": 1, "text": "as of December 31," }, { "bbox": [ 0.5820453491041616, 0.4882154882154882, 0.7740352554892505, 0.5008417508417509 ], "ocr": false, "ocr_confidence": 1, "text": "are as follows (in thousands) :" }, { "bbox": [ 0.055895795529835986, 0.5252525252525253, 0.09234957522320728, 0.5361952861952862 ], "ocr": false, "ocr_confidence": 1, "text": "1999" }, { "bbox": [ 0.6774327393018166, 0.523989898989899, 0.688368873209828, 0.5332491582491582 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.704773074071845, 0.5227272727272727, 0.7491251726987801, 0.5366161616161617 ], "ocr": false, "ocr_confidence": 1, "text": "3,000" }, { "bbox": [ 0.0565033585247255, 0.5425084175084175, 0.0929571382180968, 0.5509259259259259 ], "ocr": false, "ocr_confidence": 1, "text": "2o00" }, { "bbox": [ 0.7072033260514031, 0.5412457912457913, 0.7485176097038906, 0.553030303030303 ], "ocr": false, "ocr_confidence": 1, "text": "2,907" }, { "bbox": [ 0.0565033585247255, 0.5585016835016835, 0.0905268862385387, 0.5669191919191919 ], "ocr": false, "ocr_confidence": 1, "text": "2OO1" }, { "bbox": [ 0.7132789560002982, 0.5580808080808081, 0.7497327356936696, 0.5690235690235691 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0.6228956228956228, 0.11057646506989292, 0.6338383838383839 ], "ocr": false, "ocr_confidence": 1, "text": "Subtotal" }, { "bbox": [ 0.6980898811280603, 0.6207912457912458, 0.7497327356936696, 0.6372053872053872 ], "ocr": false, "ocr_confidence": 1, "text": "13,567" }, { "bbox": [ 0.0565033585247255, 0.6376262626262627, 0.20717898125732687, 0.6527777777777778 ], "ocr": false, "ocr_confidence": 1, "text": "Unamortized premium" }, { "bbox": [ 0.7084184520411821, 0.6388888888888888, 0.7485176097038906, 0.6506734006734007 ], "ocr": false, "ocr_confidence": 1, "text": "2,262" }, { "bbox": [ 0.6974823181331707, 0.6557239057239058, 0.7497327356936696, 0.6683501683501684 ], "ocr": false, "ocr_confidence": 1, "text": "15,829" }, { "bbox": [ 0.05468066954005694, 0.6982323232323232, 0.25699914683826763, 0.7491582491582492 ], "ocr": false, "ocr_confidence": 1, "text": "Seven" }, { "bbox": [ 0.055895795529835986, 0.7584175084175083, 0.27218822171050566, 0.7685185185185185 ], "ocr": false, "ocr_confidence": 1, "text": "ISSUAnCE Of CoMMon Stock" }, { "bbox": [ 0.05711092151961502, 0.7744107744107744, 0.13487898486547378, 0.7874579124579124 ], "ocr": false, "ocr_confidence": 1, "text": "On May 29." }, { "bbox": [ 0.1749781425281822, 0.7735690235690236, 0.8870419725387015, 0.7870370370370371 ], "ocr": false, "ocr_confidence": 1, "text": "we sold 1,I50,000 shares of our common stock to PaineWebber Incorporated for inclusion in the PaineWebber" }, { "bbox": [ 0.05711092151961502, 0.7908249158249159, 0.38033443480084045, 0.8038720538720538 ], "ocr": false, "ocr_confidence": 1, "text": "Equity Trust REIT Series I, a unit investment trust." }, { "bbox": [ 0.3864100647497357, 0.7912457912457912, 0.5662487112370341, 0.803030303030303 ], "ocr": false, "ocr_confidence": 1, "text": "The shares were issued at a" }, { "bbox": [ 0.6020949279355158, 0.7899831649831649, 0.8888646615233701, 0.80513468013468 ], "ocr": false, "ocr_confidence": 1, "text": "of $30.5625 per share (before discounts and" }, { "bbox": [ 0.055895795529835986, 0.8063973063973063, 0.5401235024567846, 0.8228114478114478 ], "ocr": false, "ocr_confidence": 1, "text": "commissions) resulting in aggregate proceeds to us, net of offering costs of" }, { "bbox": [ 0.5705016522012607, 0.8068181818181818, 0.8268932360446388, 0.821969696969697 ], "ocr": false, "ocr_confidence": 1, "text": "million, of approximately $32.7 million." }, { "bbox": [ 0.4684310690598211, 0.9583333333333334, 0.4927335888554019, 0.9768518518518517 ], "ocr": false, "ocr_confidence": 1, "text": "44" }, { "bbox": [ 0.7030786693512066, 0.18788816971212138, 0.7496044514296395, 0.19931721749326592 ], "ocr": false, "ocr_confidence": 1, "text": "17,578" }, { "bbox": [ 0.2582781732785452, 0.18524265996039346, 0.30128734501470417, 0.20112097640324292 ], "ocr": false, "ocr_confidence": 1, "text": "Diego," }, { "bbox": [ 0.15980245102324284, 0.2025100509491251, 0.18711601905867398, 0.21710274366366955 ], "ocr": false, "ocr_confidence": 1, "text": "May" }, { "bbox": [ 0.07779924147498303, 0.25174829549909444, 0.10203940501231534, 0.26677022301942405 ], "ocr": false, "ocr_confidence": 1, "text": "Bay" }, { "bbox": [ 0.16464409796399823, 0.3350903932092657, 0.19199538003615094, 0.34925304113416866 ], "ocr": false, "ocr_confidence": 1, "text": "May" }, { "bbox": [ 0.5413520118138624, 0.41926089269996686, 0.5662353278697354, 0.43385358541451124 ], "ocr": false, "ocr_confidence": 1, "text": "Bay" }, { "bbox": [ 0.5390786555219577, 0.48922077353733345, 0.5824826330440991, 0.501099091782532 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.3629191880013702, 0.4913736738707855, 0.41779926043166493, 0.4997879422908307 ], "ocr": false, "ocr_confidence": 1, "text": "payable" }, { "bbox": [ 0.2520721752490721, 0.4917238633886045, 0.27346981533036396, 0.4994377527730116 ], "ocr": false, "ocr_confidence": 1, "text": "on" }, { "bbox": [ 0.13326577644604934, 0.7754034234386151, 0.17476866196293808, 0.787727889692698 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.5653245712373417, 0.7926827429943295, 0.6030190679352082, 0.8020142267026402 ], "ocr": false, "ocr_confidence": 1, "text": "price" }, { "bbox": [ 0.5389563688766673, 0.8068791557856558, 0.5686309708069305, 0.8223295984230983 ], "ocr": false, "ocr_confidence": 1, "text": "52.4" } ]
[ { "bbox": [ 0.05407310538633297, 0.03745793814610953, 0.16221931963550226, 0.0854377361259075 ], "data": [], "index_in_doc": 369, "label": "picture", "text": "" }, { "bbox": [ 0.053459158372471345, 0.09680137248954387, 0.24059494597625053, 0.10690238259055397 ], "data": [], "index_in_doc": 370, "label": "section_header", "text": "Secured noTes PaYABLe" }, { "bbox": [ 0.05433703109061971, 0.10984848484848485, 0.4574949351518097, 0.12710440279257418 ], "data": [], "index_in_doc": 371, "label": "text", "text": "Secured notes payable consists of the following (in thousands):" }, { "bbox": [ 0.05204395382113329, 0.13258130622632575, 0.9104639079435265, 0.40202481818921637 ], "data": [ { "html_seq": "<table><tr><td></td><th colspan=\"2\">DECEMBER 31</th></tr><tr><td></td><th>1998</th><th>1997</th></tr><tr><td>9% note, due December 2014, secured by 3535/3565</td><td></td><td></td></tr><tr><td>General Atomics Court, San CA Diego,</td><td>5 17,578</td><td>5 18,050</td></tr><tr><td>7-75% note, due 2016, secured by II02/1124 May</td><td></td><td></td></tr><tr><td>Columbia Street, Seattle; WA</td><td>20,729</td><td>2I,267</td></tr><tr><td>7.165% note, due January 2014, secured by 1431 Harbor Parkway Alameda, CA Bay</td><td>8,500</td><td>8,500</td></tr><tr><td>8.689 note, due December 2006, secured by 1oo/800/801</td><td></td><td></td></tr><tr><td>Capitola Drive, Durham; NC</td><td>12,547</td><td></td></tr><tr><td>7.22% note, due May 2008, secured by 14225 Newbrook Avenue,</td><td></td><td></td></tr><tr><td>Chantilly; VA and 3000/3018 Western Avenue, Seattle, WA</td><td>36,326</td><td></td></tr><tr><td>9.125% note due 2007, with an effective interest rate of May</td><td></td><td></td></tr><tr><td>by 620 Memorial Drive, Cambridge, MA</td><td>20,149</td><td></td></tr><tr><td></td><td>5 15.829</td><td>5 47,817</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 372, "label": "table", "text": "" }, { "bbox": [ 0.05285798055538837, 0.41877103092694523, 0.8989425533687763, 0.46927608143199573 ], "data": [], "index_in_doc": 373, "label": "text", "text": "All of our secured notes payable; except for the note secured by 1431 Harbor Parkway require monthly payments of principal and interest. The note secured by 1431 Harbor Bay Parkway required monthly payments of interest through December 31, 1998 and requires both monthly payments of interest and semi-annual principal payments beginning January 1999. Bay" }, { "bbox": [ 0.05580619097384034, 0.48821547537138965, 0.7745373552787282, 0.5025252525252525 ], "data": [], "index_in_doc": 374, "label": "text", "text": "Future principal payments due secured notes as of December 31, are as follows (in thousands) : 1998, payable on" }, { "bbox": [ 0.0550045197324661, 0.517058439929076, 0.758942039402522, 0.6718140419083413 ], "data": [ { "html_seq": "<table><tr><td>1999</td><td>5 3,000</td></tr><tr><td>2o00</td><td>2,907</td></tr><tr><td>2OO1</td><td>3,145</td></tr><tr><td>2002</td><td>3,395</td></tr><tr><td>2003</td><td>3,666</td></tr><tr><td>Thereafter</td><td>97,454</td></tr><tr><td>Subtotal</td><td>13,567</td></tr><tr><td>Unamortized premium</td><td>2,262</td></tr><tr><td></td><td>15,829</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 375, "label": "table", "text": "" }, { "bbox": [ 0.05468066954005694, 0.6982323232323232, 0.25699914683826763, 0.7491582427361999 ], "data": [], "index_in_doc": 376, "label": "section_header", "text": "Seven" }, { "bbox": [ 0.055895794371001534, 0.7584175148395577, 0.27218821243983005, 0.7685185249405678 ], "data": [], "index_in_doc": 377, "label": "section_header", "text": "ISSUAnCE Of CoMMon Stock" }, { "bbox": [ 0.055895794371001534, 0.7735690299910728, 0.8892353772985111, 0.8228114542334971 ], "data": [], "index_in_doc": 378, "label": "text", "text": "On May 29. we sold 1,I50,000 shares of our common stock to PaineWebber Incorporated for inclusion in the PaineWebber Equity Trust REIT Series I, a unit investment trust. The shares were issued at a of $30.5625 per share (before discounts and commissions) resulting in aggregate proceeds to us, net of offering costs of million, of approximately $32.7 million. 1998, price 52.4" }, { "bbox": [ 0.4684310690598211, 0.9581939234878077, 0.49273360739675315, 0.9768518510490957 ], "data": [], "index_in_doc": 379, "label": "page_footer", "text": "44" } ]
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non-Cash Transactions During we assumed two secured notes payable in connection with the acquisition of the following properties (in thousands): 1998, Stock compensation expense in 1997 represents non-cash compensation expense associated with stock grants and stock options issued to our officers , directors and certain employees in connection with the Offering (see Note 11) In connection with the Offering in 1997, all previously outstanding shares of Series U preferred stock and Series V preferred stock were converted into shares of common stock (see Note I) . The common stock issued was recorded at the book value of the Series U preferred stock and the Series V preferred stock (an aggregate of $27,061,000). Nine Preferred Stock And EXCESS Stock Series V Cumulative Convertible Preferred Stock Prior to the Offering, we had 27,500 shares of manditorily redeemable Series V cumulative convertible preferred stock outstanding: The stated value of each share was S1,000. In connection with the Offering, the shares were converted into 1,659,239 shares of comnmon stock. The conversion rate was computed to provide for an internal rate of return on the stated value of each share equal to 20%, considering cash received from dividends . prior Prior to conversion, Series V preferred stockholders were entitled to dividends at an annual rate of 10% of the stated value per share the first twelve dividend periods or such larger amount as would be payable on an as converted basis ifthe Series V preferred stock were converted to common stock. Dividends were cumulative and payable in quarterly equal installments on March 31, June 30, September 30, and December 31 of each year; Offering costs associated with the issuance of the Series V preferred stock in were deducted from the proceeds of the issuance. Until the conversion of the Series V preferred stock into shares of common stock in 1997, we accreted the amount of the offering costs and the difference between the minimum requirement on the Series V preferred stock (209 per annum) and the minimum dividend payment as a charge to additional paid-in capital: during 1996 yield Series T and Series U Preferred Stock Holders of each of the Series T and Series U preferred stock were entitled to dividends at an annual rate of 8.5% of the stated value per share. In connection with the Offering, all of the previously outstanding shares of Series T preferred stock (12 shares) were redeemed at their stated value (SI,200 in the aggregate) . In connection with the Offering; all of the previously outstanding shares of Series U preferred stock (220 shares) were converted into an aggregate of 7,354 shares of common stock. Preferred Stock and Excess Stock Authorizations Our charter authorizes the issuance of up to I00,000,000 shares of preferred stock and 200,000,000 shares of "excess stock" (as defined) , none of which was issued and outstanding at December 31, 1998. 45
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1, "text": "100/800/801" }, { "bbox": [ 0.845727688886214, 0.14646464646464646, 0.9301789451758574, 0.15740740740740736 ], "ocr": false, "ocr_confidence": 1, "text": "620 Memorial" }, { "bbox": [ 0.6974823181331707, 0.1590909090909091, 0.7813260114279248, 0.17087542087542093 ], "ocr": false, "ocr_confidence": 1, "text": "Capitola Drive" }, { "bbox": [ 0.8967629804569338, 0.1590909090909091, 0.930786508170747, 0.1691919191919192 ], "ocr": false, "ocr_confidence": 1, "text": "Drive" }, { "bbox": [ 0.08627394527431206, 0.180976430976431, 0.14824537075304325, 0.19276094276094272 ], "ocr": false, "ocr_confidence": 1, "text": "Purchase" }, { "bbox": [ 0.1810537724770774, 0.17887205387205382, 0.25335376886893046, 0.1948653198653199 ], "ocr": false, "ocr_confidence": 1, "text": "(including" }, { "bbox": [ 0.3013512454652027, 0.180976430976431, 0.4447361122591298, 0.19276094276094272 ], "ocr": false, "ocr_confidence": 1, "text": "and transaction costs)" }, { "bbox": [ 0.7102411410258507, 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0.9076991143649452, 0.2630471380471381 ], "ocr": false, "ocr_confidence": 1, "text": "Stock compensation expense in 1997 represents non-cash compensation expense associated with stock grants and stock options" }, { "bbox": [ 0.08627394527431206, 0.26599326599326595, 0.3621075449541548, 0.27861952861952854 ], "ocr": false, "ocr_confidence": 1, "text": "issued to our officers , directors and certain" }, { "bbox": [ 0.3590697299797072, 0.2634680134680134, 0.7296831568623153, 0.28072390572390576 ], "ocr": false, "ocr_confidence": 1, "text": "employees in connection with the Offering (see Note 11)" }, { "bbox": [ 0.08688150826920157, 0.29924242424242425, 0.4392680453051241, 0.3143939393939394 ], "ocr": false, "ocr_confidence": 1, "text": "In connection with the Offering in 1997, all previously" }, { "bbox": [ 0.4362302303306765, 0.2971380471380472, 0.9265335672065204, 0.3143939393939394 ], "ocr": false, "ocr_confidence": 1, "text": "outstanding shares of Series U preferred stock and Series 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The common stock issued was recorded at the book value of the Series U" }, { "bbox": [ 0.08566638227942254, 0.332912457912458, 0.5935890460070626, 0.34932659932659943 ], "ocr": false, "ocr_confidence": 1, "text": "preferred stock and the Series V preferred stock (an aggregate of $27,061,000)." }, { "bbox": [ 0.08870419725387015, 0.3766835016835017, 0.2545688948587095, 0.4255050505050505 ], "ocr": false, "ocr_confidence": 1, "text": "Nine" }, { "bbox": [ 0.0874890712640911, 0.43686868686868685, 0.3730436788621662, 0.44696969696969696 ], "ocr": false, "ocr_confidence": 1, "text": "Preferred Stock And EXCESS Stock" }, { "bbox": [ 0.08870419725387015, 0.4524410774410774, 0.37911930881106143, 0.46464646464646464 ], "ocr": false, "ocr_confidence": 1, "text": "Series V Cumulative Convertible Preferred Stock" }, { "bbox": [ 0.0874890712640911, 0.4696969696969697, 0.16404200862017082, 0.48148148148148145 ], "ocr": false, "ocr_confidence": 1, "text": "Prior to the" }, { "bbox": [ 0.16221931963550226, 0.46801346801346805, 0.226013434098902, 0.484006734006734 ], "ocr": false, "ocr_confidence": 1, "text": "Offering," }, { "bbox": [ 0.22419074511423345, 0.4659090909090909, 0.9326091971554156, 0.48358585858585856 ], "ocr": false, "ocr_confidence": 1, "text": "we had 27,500 shares of manditorily redeemable Series V cumulative convertible preferred stock outstanding:" }, { "bbox": [ 0.08688150826920157, 0.48442760942760943, 0.9398999530940898, 0.5008417508417509 ], "ocr": false, "ocr_confidence": 1, "text": "The stated value of each share was S1,000. In connection with the Offering, the shares were converted into 1,659,239 shares of comn-" }, { "bbox": [ 0.08809663425898062, 0.5021043771043772, 0.9095218033496137, 0.5180976430976431 ], "ocr": false, "ocr_confidence": 1, "text": "mon stock. The conversion rate was computed to provide for an internal rate of return on the stated value of each share equal to" }, { "bbox": [ 0.0874890712640911, 0.5189393939393939, 0.32808401724034164, 0.5357744107744108 ], "ocr": false, "ocr_confidence": 1, "text": "20%, considering cash received from" }, { "bbox": [ 0.36149998195926536, 0.5206228956228957, 0.4319772893664498, 0.5315656565656566 ], "ocr": false, "ocr_confidence": 1, "text": "dividends ." }, { "bbox": [ 0.08809663425898062, 0.5534511784511784, 0.9350394491349736, 0.5686026936026936 ], "ocr": false, "ocr_confidence": 1, "text": "Prior to conversion, Series V preferred stockholders were entitled to dividends at an annual rate of 10% of the stated value per share" }, { "bbox": [ 0.13427142187058427, 0.5694444444444444, 0.9398999530940898, 0.5871212121212122 ], "ocr": false, "ocr_confidence": 1, "text": "the first twelve dividend periods or such larger amount as would be payable on an as converted basis ifthe Series V preferred" }, { "bbox": [ 0.08870419725387015, 0.5900673400673401, 0.5480218213903485, 0.6018518518518519 ], "ocr": false, "ocr_confidence": 1, "text": "stock were converted to common stock. Dividends were cumulative and" }, { "bbox": [ 0.5455915694107903, 0.5875420875420875, 0.8888646615233701, 0.6043771043771043 ], "ocr": false, "ocr_confidence": 1, "text": "payable in quarterly equal installments on March 31," }, { "bbox": [ 0.08688150826920157, 0.6039562289562289, 0.9313940711656366, 0.6216329966329966 ], "ocr": false, "ocr_confidence": 1, "text": "June 30, September 30, and December 31 of each year; Offering costs associated with the issuance of the Series V preferred stock in" }, { "bbox": [ 0.12576553994213097, 0.6216329966329966, 0.9313940711656366, 0.6384680134680135 ], "ocr": false, "ocr_confidence": 1, "text": "were deducted from the proceeds of the issuance. Until the conversion of the Series V preferred stock into shares of common" }, { "bbox": [ 0.08809663425898062, 0.6401515151515151, 0.7406192907703267, 0.6561447811447811 ], "ocr": false, "ocr_confidence": 1, "text": "stock in 1997, we accreted the amount of the offering costs and the difference between the minimum" }, { "bbox": [ 0.7740352554892505, 0.6414141414141414, 0.904053736395608, 0.6531986531986532 ], "ocr": false, "ocr_confidence": 1, "text": "requirement on the" }, { "bbox": [ 0.08931176024875967, 0.6557239057239058, 0.859701637768673, 0.672979797979798 ], "ocr": false, "ocr_confidence": 1, "text": "Series V preferred stock (209 per annum) and the minimum dividend payment as a charge to additional paid-in capital:" }, { "bbox": [ 0.0899193232436492, 0.6919191919191919, 0.31471763135277214, 0.7037037037037037 ], "ocr": false, "ocr_confidence": 1, "text": "Series T and Series U Preferred Stock" }, { "bbox": [ 0.08931176024875967, 0.7066498316498316, 0.9301789451758574, 0.7218013468013468 ], "ocr": false, "ocr_confidence": 1, "text": "Holders of each of the Series T and Series U preferred stock were entitled to dividends at an annual rate of 8.5% of the stated value" }, { "bbox": [ 0.08931176024875967, 0.7234848484848485, 0.9034461734007185, 0.7403198653198654 ], "ocr": false, "ocr_confidence": 1, "text": "per share. In connection with the Offering, all of the previously outstanding shares of Series T preferred stock (12 shares) were" }, { "bbox": [ 0.08809663425898062, 0.7394781144781144, 0.9386848271043108, 0.7575757575757576 ], "ocr": false, "ocr_confidence": 1, "text": "redeemed at their stated value (SI,200 in the aggregate) . In connection with the Offering; all of the previously outstanding shares of" }, { "bbox": [ 0.08870419725387015, 0.7588383838383839, 0.7624915585863495, 0.7748316498316498 ], "ocr": false, "ocr_confidence": 1, "text": "Series U preferred stock (220 shares) were converted into an aggregate of 7,354 shares of common stock." }, { "bbox": [ 0.09113444923342823, 0.7925084175084175, 0.3827646867803986, 0.8055555555555556 ], "ocr": false, "ocr_confidence": 1, "text": "Preferred Stock and Excess Stock Authorizations" }, { "bbox": [ 0.0905268862385387, 0.8072390572390573, 0.9253184412167413, 0.8236531986531987 ], "ocr": false, "ocr_confidence": 1, "text": "Our charter authorizes the issuance of up to I00,000,000 shares of preferred stock and 200,000,000 shares of \"excess stock\" (as" }, { "bbox": [ 0.08870419725387015, 0.8244949494949495, 0.5316176205283314, 0.8421717171717171 ], "ocr": false, "ocr_confidence": 1, "text": "defined) , none of which was issued and outstanding at December 31," }, { "bbox": [ 0.5000243447940762, 0.9591750841750841, 0.5255419905794361, 0.9776936026936027 ], "ocr": false, "ocr_confidence": 1, "text": "45" }, { "bbox": [ 0.1331845801448352, 0.11549759732154896, 0.17728011024371032, 0.12692664510269347 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.25223190442345716, 0.17850248463606314, 0.3000428579311179, 0.1952348891013106 ], "ocr": false, "ocr_confidence": 1, "text": "closing" }, { "bbox": [ 0.1454566585385449, 0.18285185399325957, 0.18384248469157582, 0.19172727058586495 ], "ocr": false, "ocr_confidence": 1, "text": "price" }, { "bbox": [ 0.11925262605329826, 0.19797498229154217, 0.15475828464187597, 0.20985330053674067 ], "ocr": false, "ocr_confidence": 1, "text": "paid" }, { "bbox": [ 0.8813325576868125, 0.21437089450035937, 0.9316354190635197, 0.22460216947270453 ], "ocr": false, "ocr_confidence": 1, "text": "20,198" }, { "bbox": [ 0.32468774203095374, 0.5229191940605996, 0.3642886941737637, 0.5317946106532051 ], "ocr": false, "ocr_confidence": 1, "text": "prior" }, { "bbox": [ 0.0893756606992582, 0.5716062963240298, 0.1335999584251962, 0.5874846127668792 ], "ocr": false, "ocr_confidence": 1, "text": "during" }, { "bbox": [ 0.08660389524294966, 0.626842394011631, 0.1272582789581619, 0.6366256194563824 ], "ocr": false, "ocr_confidence": 1, "text": "1996" }, { "bbox": [ 0.738589033486236, 0.6415474404154041, 0.7760655127733413, 0.6522236033556397 ], "ocr": false, "ocr_confidence": 1, "text": "yield" }, { "bbox": [ 0.5281763226113201, 0.829757512254624, 0.5721202611336034, 0.8381717806746689 ], "ocr": false, "ocr_confidence": 1, "text": "1998." } ]
[ { "bbox": [ 0.07959075464819622, 0.033670059358230746, 0.2770487256696218, 0.10101010101010101 ], "data": [], "index_in_doc": 380, "label": "picture", "text": "" }, { "bbox": [ 0.08528875058029793, 0.09764307195490057, 0.2758335904091672, 0.10774408205591067 ], "data": [], "index_in_doc": 381, "label": "section_header", "text": "non-Cash Transactions" }, { "bbox": [ 0.0844512539719746, 0.1102693345811632, 0.9253184226753901, 0.12794610225793088 ], "data": [], "index_in_doc": 382, "label": "text", "text": "During we assumed two secured notes payable in connection with the acquisition of the following properties (in thousands): 1998," }, { "bbox": [ 0.08528643522907153, 0.1452020202020202, 0.9428674221822273, 0.23075396605212278 ], "data": [ { "html_seq": "<table><tr><td></td><th>100/800/801 Capitola Drive</th><th>620 Memorial Drive</th></tr><tr><td>Purchase (including and transaction costs) closing price</td><td>5 18,387</td><td>5 40,194</td></tr><tr><td>Cash for the properties paid</td><td>5,755</td><td>19,996</td></tr><tr><td>Secured notes payable assumed</td><td>5 12,632</td><td>5 20,198</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 383, "label": "table", "text": "" }, { "bbox": [ 0.08627394295664316, 0.24621212121212122, 0.9076991143649452, 0.28072388003570864 ], "data": [], "index_in_doc": 384, "label": "text", "text": "Stock compensation expense in 1997 represents non-cash compensation expense associated with stock grants and stock options issued to our officers , directors and certain employees in connection with the Offering (see Note 11)" }, { "bbox": [ 0.08566638227942254, 0.2971380214498501, 0.9305680539713516, 0.3493266250147964 ], "data": [], "index_in_doc": 385, "label": "text", "text": "In connection with the Offering in 1997, all previously outstanding shares of Series U preferred stock and Series V preferred stock were converted into shares of common stock (see Note I) . The common stock issued was recorded at the book value of the Series U preferred stock and the Series V preferred stock (an aggregate of $27,061,000)." }, { "bbox": [ 0.08870419957153904, 0.37668351452760024, 0.2545689041293851, 0.4255050505050505 ], "data": [], "index_in_doc": 386, "label": "section_header", "text": "Nine" }, { "bbox": [ 0.0874890712640911, 0.43686868686868685, 0.37304368813284183, 0.44696969696969696 ], "data": [], "index_in_doc": 387, "label": "section_header", "text": "Preferred Stock And EXCESS Stock" }, { "bbox": [ 0.08829968059556006, 0.452441090285176, 0.37911930881106143, 0.46468545932962435 ], "data": [], "index_in_doc": 388, "label": "section_header", "text": "Series V Cumulative Convertible Preferred Stock" }, { "bbox": [ 0.08688151058687048, 0.4659090909090909, 0.9398999901767922, 0.5357744236185094 ], "data": [], "index_in_doc": 389, "label": "text", "text": "Prior to the Offering, we had 27,500 shares of manditorily redeemable Series V cumulative convertible preferred stock outstanding: The stated value of each share was S1,000. In connection with the Offering, the shares were converted into 1,659,239 shares of comnmon stock. The conversion rate was computed to provide for an internal rate of return on the stated value of each share equal to 20%, considering cash received from dividends . prior" }, { "bbox": [ 0.08660389788892255, 0.553451191295277, 0.9398999901767922, 0.672979797979798 ], "data": [], "index_in_doc": 390, "label": "text", "text": "Prior to conversion, Series V preferred stockholders were entitled to dividends at an annual rate of 10% of the stated value per share the first twelve dividend periods or such larger amount as would be payable on an as converted basis ifthe Series V preferred stock were converted to common stock. Dividends were cumulative and payable in quarterly equal installments on March 31, June 30, September 30, and December 31 of each year; Offering costs associated with the issuance of the Series V preferred stock in were deducted from the proceeds of the issuance. Until the conversion of the Series V preferred stock into shares of common stock in 1997, we accreted the amount of the offering costs and the difference between the minimum requirement on the Series V preferred stock (209 per annum) and the minimum dividend payment as a charge to additional paid-in capital: during 1996 yield" }, { "bbox": [ 0.08972437947752772, 0.6919191919191919, 0.31471764062344776, 0.7040890780362216 ], "data": [], "index_in_doc": 391, "label": "section_header", "text": "Series T and Series U Preferred Stock" }, { "bbox": [ 0.08809663194131173, 0.7066498380718809, 0.9389688435214164, 0.7748316562536991 ], "data": [], "index_in_doc": 392, "label": "text", "text": "Holders of each of the Series T and Series U preferred stock were entitled to dividends at an annual rate of 8.5% of the stated value per share. In connection with the Offering, all of the previously outstanding shares of Series T preferred stock (12 shares) were redeemed at their stated value (SI,200 in the aggregate) . In connection with the Offering; all of the previously outstanding shares of Series U preferred stock (220 shares) were converted into an aggregate of 7,354 shares of common stock." }, { "bbox": [ 0.08992217165872152, 0.7925084239304668, 0.3827646867803986, 0.8055555555555556 ], "data": [], "index_in_doc": 393, "label": "section_header", "text": "Preferred Stock and Excess Stock Authorizations" }, { "bbox": [ 0.08870419957153904, 0.807239050817008, 0.9265649020899848, 0.8421717171717171 ], "data": [], "index_in_doc": 394, "label": "text", "text": "Our charter authorizes the issuance of up to I00,000,000 shares of preferred stock and 200,000,000 shares of \"excess stock\" (as defined) , none of which was issued and outstanding at December 31, 1998." }, { "bbox": [ 0.5000243633354274, 0.9591750857805965, 0.5255420091207873, 0.9776936034963588 ], "data": [], "index_in_doc": 395, "label": "page_footer", "text": "45" } ]
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Commitments And Contingencils Litigation We currently are not subject to any material legal proceedings or claims , nor are we aware of any material legal proceedings or caims threatened . being Post-Retirement Benefit In 1997, in connection with the Offering; an officer of Alexandria retired. In connection with the officer's retirement; we agreed to pay a post-retirement benefit equal to SI5o,0oo for each of the first three years following the Offering; and S90,000 per year (plus an annual increase of 2% per year) thereafter for the remainder of the longer of the executive's life and the life of the executive's spouse as of the date of the agreement. In 1997 and 1996,a post-retirement expense was recorded for services equal to 5632,000 and 5438,000, respectively (pursuant to a agreement) . As of December 31, and 1997, the accrued liability for post-retirement benefit was SI,IIO,000 and 51,037,000, respectively. For the years ended December 31, and 1997, we oo0 and $75,000 respectively, under the retirement agreement, of which S77,000 and 542,000, respectively, represented interest. past 1998 prior 1998 paid 5150, Employee Retirement Savings Plan Effective January 1, 1997, we adopted a retirement savings plan pursuant to Section 401(k) of the Internal Revenue Code ("Code") whereby our employees may contribute a portion of their compensation to their respective retirement accounts, in an amount not to exceed the maximum allowed under the Code. The plan provides that we match the employees' contributions, which amounted to 589,000 and S36,000, respectively, for the years ended December 31, 1998 and 1997. Employees who participate in the plan are immediately vested in their contributions and in the matching contributions of the company. Concentration of Credit Risk We maintain our cash and cash equivalents at insured financial institutions. The combined account balances at each institution peri odically exceed FDIC insurance coverage, and, as a result, there is a concentration of credit risk related to amounts in excess of FDIC insurance coverage. We believe that the risk is not significant:. We are dependent on rental income from relatively few tenants in the life science industry: The inability of any single tenant to make its payments could adversely affect our operations. As of December 31, we had 158 leases with a total of 148 tenants, and 24 of our 51 properties were leased to a single tenant. At December 31, our three largest tenants accounted for approximately 18.49 of our aggregate annualized base rent. lease 1998, 1998, We generally do not require collateral or other security our tenants, other than security deposits. As of December 31, we have S6.1 million in irrevocable letters of credit available from certain tenants as security deposits for 15 leases. from 1998, Commitments We are committed to complete the construction of a building and certain related improvements in San California at a remaincost of approximately 54.9 million under the terms of two leases. In addition, we are committed to complete the construction of building and certain related improvements in Gaithersburg; Maryland at a remaining cost of between $7.8 million and S16.8 lion (depending on the level of improvements to the elected by the tenant) under the terms of a lease. Under the terms of the lease, the tenant's rental rate will be adjusted depending on the ultimate cost of the improvements. Diego, ing milfacility We are also committed to fund approximately SIL.1 million for investments in limited partnerships and rental properties , including the construction of tenant improvements under the terms of various leases. Of this amount, approximately $3.2 million has been set aside in restricted cash accounts to complete the conversion of existing space into higher rent generic laboratory space (as well as certain related improvements) at 102/1124 Columbia Street and 3000/3018 Western Avenue. 46
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In connection with the officer's retirement; we agreed to" }, { "bbox": [ 0.05711092151961502, 0.2188552188552189, 0.09234957522320728, 0.2297979797979798 ], "ocr": false, "ocr_confidence": 1, "text": "pay a" }, { "bbox": [ 0.09113444923342823, 0.21464646464646464, 0.9022310474109395, 0.23148148148148154 ], "ocr": false, "ocr_confidence": 1, "text": "post-retirement benefit equal to SI5o,0oo for each of the first three years following the Offering; and S90,000 per year (plus an" }, { "bbox": [ 0.0565033585247255, 0.23316498316498313, 0.8937251654824862, 0.24915824915824922 ], "ocr": false, "ocr_confidence": 1, "text": "annual increase of 2% per year) thereafter for the remainder of the longer of the executive's life and the life of the executive's spouse" }, { "bbox": [ 0.05711092151961502, 0.2508417508417508, 0.33780502515857397, 0.2643097643097644 ], "ocr": false, "ocr_confidence": 1, "text": "as of the date of the agreement. In 1997 and" }, { "bbox": [ 0.33476721018412636, 0.24957912457912454, 0.6555604714857938, 0.26599326599326595 ], "ocr": false, "ocr_confidence": 1, "text": "1996,a post-retirement expense was recorded for" }, { "bbox": [ 0.6835083692507118, 0.25126262626262624, 0.8846117205591434, 0.26515151515151514 ], "ocr": false, "ocr_confidence": 1, "text": "services equal to 5632,000 and" }, { "bbox": [ 0.05711092151961502, 0.2676767676767677, 0.2928453635367494, 0.2811447811447811 ], "ocr": false, "ocr_confidence": 1, "text": "5438,000, respectively (pursuant to a" }, { "bbox": [ 0.3268688912505626, 0.2693602693602694, 0.40706720657597945, 0.2811447811447811 ], "ocr": false, "ocr_confidence": 1, "text": "agreement) ." }, { "bbox": [ 0.4119277105350956, 0.2685185185185185, 0.5370856874823371, 0.2811447811447811 ], "ocr": false, "ocr_confidence": 1, "text": "As of December 31," }, { "bbox": [ 0.5729319041808187, 0.26683501683501687, 0.8925100394927071, 0.2824074074074074 ], "ocr": false, "ocr_confidence": 1, "text": "and 1997, the accrued liability for post-retirement" }, { "bbox": [ 0.05711092151961502, 0.28451178451178455, 0.22965881206823915, 0.2962962962962962 ], "ocr": false, "ocr_confidence": 1, "text": "benefit was SI,IIO,000 and" }, { "bbox": [ 0.22844368607846008, 0.28451178451178455, 0.605740305904853, 0.3005050505050505 ], "ocr": false, "ocr_confidence": 1, "text": "51,037,000, respectively. For the years ended December 31," }, { "bbox": [ 0.6403713966135557, 0.28619528619528617, 0.730290719857205, 0.29882154882154877 ], "ocr": false, "ocr_confidence": 1, "text": "and 1997, we" }, { "bbox": [ 0.7946923973154941, 0.28619528619528617, 0.9101293663445033, 0.29882154882154877 ], "ocr": false, "ocr_confidence": 1, "text": "oo0 and $75,000" }, { "bbox": [ 0.0565033585247255, 0.30218855218855223, 0.7624915585863495, 0.3160774410774411 ], "ocr": false, "ocr_confidence": 1, "text": "respectively, under the retirement agreement, of which S77,000 and 542,000, respectively, represented interest." }, { "bbox": [ 0.05771848451450455, 0.3341750841750843, 0.267935280746279, 0.34932659932659943 ], "ocr": false, "ocr_confidence": 1, "text": "Employee Retirement Savings Plan" }, { "bbox": [ 0.0565033585247255, 0.3514309764309763, 0.8864344095438119, 0.36700336700336705 ], "ocr": false, "ocr_confidence": 1, "text": "Effective January 1, 1997, we adopted a retirement savings plan pursuant to Section 401(k) of the Internal Revenue Code (\"Code\")" }, { "bbox": [ 0.05711092151961502, 0.36952861952861954, 0.13973948882458997, 0.3821548821548822 ], "ocr": false, "ocr_confidence": 1, "text": "whereby our" }, { "bbox": [ 0.13730923684503185, 0.36742424242424243, 0.9034461734007185, 0.38425925925925924 ], "ocr": false, "ocr_confidence": 1, "text": "employees may contribute a portion of their compensation to their respective retirement accounts, in an amount not to" }, { "bbox": [ 0.0565033585247255, 0.3851010101010101, 0.890079787513149, 0.40025252525252525 ], "ocr": false, "ocr_confidence": 1, "text": "exceed the maximum allowed under the Code. The plan provides that we match the employees' contributions, which amounted to" }, { "bbox": [ 0.05528823253494646, 0.4015151515151515, 0.8815739055846958, 0.41919191919191917 ], "ocr": false, "ocr_confidence": 1, "text": "589,000 and S36,000, respectively, for the years ended December 31, 1998 and 1997. Employees who participate in the plan are" }, { "bbox": [ 0.05468066954005694, 0.41919191919191917, 0.6519150935164566, 0.43476430976430974 ], "ocr": false, "ocr_confidence": 1, "text": "immediately vested in their contributions and in the matching contributions of the company." }, { "bbox": [ 0.05832604750939407, 0.4532828282828283, 0.22965881206823915, 0.4654882154882155 ], "ocr": false, "ocr_confidence": 1, "text": "Concentration of Credit Risk" }, { "bbox": [ 0.05771848451450455, 0.4692760942760943, 0.9076991143649452, 0.48484848484848486 ], "ocr": false, "ocr_confidence": 1, "text": "We maintain our cash and cash equivalents at insured financial institutions. The combined account balances at each institution peri -" }, { "bbox": [ 0.055895795529835986, 0.4861111111111111, 0.9107369293393929, 0.5021043771043772 ], "ocr": false, "ocr_confidence": 1, "text": "odically exceed FDIC insurance coverage, and, as a result, there is a concentration of credit risk related to amounts in excess of FDIC" }, { "bbox": [ 0.055895795529835986, 0.5033670033670034, 0.4502041792131355, 0.5193602693602694 ], "ocr": false, "ocr_confidence": 1, "text": "insurance coverage. We believe that the risk is not significant:." }, { "bbox": [ 0.05771848451450455, 0.5382996632996633, 0.9095218033496137, 0.5542929292929293 ], "ocr": false, "ocr_confidence": 1, "text": "We are dependent on rental income from relatively few tenants in the life science industry: The inability of any single tenant to make" }, { "bbox": [ 0.055895795529835986, 0.5572390572390572, 0.07655293735607971, 0.5673400673400674 ], "ocr": false, "ocr_confidence": 1, "text": "its" }, { "bbox": [ 0.10936133908011388, 0.5555555555555556, 0.5437688804261217, 0.5711279461279462 ], "ocr": false, "ocr_confidence": 1, "text": "payments could adversely affect our operations. As of December 31," }, { "bbox": [ 0.5844756010837198, 0.5572390572390572, 0.90162348441605, 0.5707070707070707 ], "ocr": false, "ocr_confidence": 1, "text": "we had 158 leases with a total of 148 tenants, and" }, { "bbox": [ 0.0565033585247255, 0.5723905723905723, 0.5073151007327504, 0.5883838383838383 ], "ocr": false, "ocr_confidence": 1, "text": "24 of our 51 properties were leased to a single tenant. At December 31," }, { "bbox": [ 0.5461991324056799, 0.5732323232323232, 0.8937251654824862, 0.5888047138047138 ], "ocr": false, "ocr_confidence": 1, "text": "our three largest tenants accounted for approximately" }, { "bbox": [ 0.05468066954005694, 0.5896464646464646, 0.34327309211257967, 0.6052188552188552 ], "ocr": false, "ocr_confidence": 1, "text": "18.49 of our aggregate annualized base rent." }, { "bbox": [ 0.05771848451450455, 0.6241582491582491, 0.40645964358108994, 0.6393097643097643 ], "ocr": false, "ocr_confidence": 1, "text": "We generally do not require collateral or other security" }, { "bbox": [ 0.4410907342897926, 0.6262626262626263, 0.8360066809679817, 0.6388888888888888 ], "ocr": false, "ocr_confidence": 1, "text": "our tenants, other than security deposits. As of December 31," }, { "bbox": [ 0.8767134016255795, 0.6283670033670034, 0.8973705434518233, 0.6367845117845118 ], "ocr": false, "ocr_confidence": 1, "text": "we" }, { "bbox": [ 0.0565033585247255, 0.6418350168350168, 0.763099121581239, 0.656986531986532 ], "ocr": false, "ocr_confidence": 1, "text": "have S6.1 million in irrevocable letters of credit available from certain tenants as security deposits for 15 leases." }, { "bbox": [ 0.05832604750939407, 0.6750841750841751, 0.1445999927837061, 0.6860269360269361 ], "ocr": false, "ocr_confidence": 1, "text": "Commitments" }, { "bbox": [ 0.05832604750939407, 0.6927609427609427, 0.3888403167292938, 0.7053872053872053 ], "ocr": false, "ocr_confidence": 1, "text": "We are committed to complete the construction of a" }, { "bbox": [ 0.3870176277446252, 0.6898148148148149, 0.7138865189951878, 0.7079124579124578 ], "ocr": false, "ocr_confidence": 1, "text": "building and certain related improvements in San" }, { "bbox": [ 0.759453743611902, 0.6927609427609427, 0.9076991143649452, 0.7045454545454546 ], "ocr": false, "ocr_confidence": 1, "text": "California at a remain-" }, { "bbox": [ 0.08080587832030638, 0.7083333333333334, 0.5000243447940762, 0.7243265993265993 ], "ocr": false, "ocr_confidence": 1, "text": "cost of approximately 54.9 million under the terms of two leases." }, { "bbox": [ 0.5030621597685239, 0.7087542087542088, 0.7181394599594144, 0.7222222222222222 ], "ocr": false, "ocr_confidence": 1, "text": "In addition, we are committed to" }, { "bbox": [ 0.7163167709747459, 0.7087542087542088, 0.9083066773598347, 0.7255892255892256 ], "ocr": false, "ocr_confidence": 1, "text": "complete the construction of" }, { "bbox": [ 0.06622436644295786, 0.7243265993265993, 0.8682075196971263, 0.7411616161616161 ], "ocr": false, "ocr_confidence": 1, "text": "building and certain related improvements in Gaithersburg; Maryland at a remaining cost of between $7.8 million and S16.8" }, { "bbox": [ 0.0565033585247255, 0.7424242424242424, 0.3918781317037414, 0.757996632996633 ], "ocr": false, "ocr_confidence": 1, "text": "lion (depending on the level of improvements to the" }, { "bbox": [ 0.4362302303306765, 0.7449494949494949, 0.7521629876732278, 0.7575757575757576 ], "ocr": false, "ocr_confidence": 1, "text": "elected by the tenant) under the terms of a lease." }, { "bbox": [ 0.7570234916323438, 0.7449494949494949, 0.9089142403547242, 0.7558922558922558 ], "ocr": false, "ocr_confidence": 1, "text": "Under the terms of the" }, { "bbox": [ 0.05468066954005694, 0.76010101010101, 0.690799125189386, 0.7752525252525253 ], "ocr": false, "ocr_confidence": 1, "text": "lease, the tenant's rental rate will be adjusted depending on the ultimate cost of the improvements." }, { "bbox": [ 0.05771848451450455, 0.7933501683501684, 0.8979781064467128, 0.8110269360269361 ], "ocr": false, "ocr_confidence": 1, "text": "We are also committed to fund approximately SIL.1 million for investments in limited partnerships and rental properties , including" }, { "bbox": [ 0.0565033585247255, 0.8118686868686869, 0.9058764253802766, 0.827020202020202 ], "ocr": false, "ocr_confidence": 1, "text": "the construction of tenant improvements under the terms of various leases. Of this amount, approximately $3.2 million has been set" }, { "bbox": [ 0.05711092151961502, 0.82996632996633, 0.4593176241364783, 0.8434343434343434 ], "ocr": false, "ocr_confidence": 1, "text": "aside in restricted cash accounts to complete the conversion of" }, { "bbox": [ 0.4538495571824726, 0.8282828282828283, 0.8840041575642539, 0.8455387205387205 ], "ocr": false, "ocr_confidence": 1, "text": "existing space into higher rent generic laboratory space (as well as" }, { "bbox": [ 0.0565033585247255, 0.8463804713804715, 0.6555604714857938, 0.8619528619528619 ], "ocr": false, "ocr_confidence": 1, "text": "certain related improvements) at 102/1124 Columbia Street and 3000/3018 Western Avenue." }, { "bbox": [ 0.4684310690598211, 0.9574915824915825, 0.493948714845181, 0.9776936026936027 ], "ocr": false, "ocr_confidence": 1, "text": "46" }, { "bbox": [ 0.10216384468574533, 0.14735770349128205, 0.13964622728028425, 0.16409010795652937 ], "ocr": false, "ocr_confidence": 1, "text": "being" }, { "bbox": [ 0.6528136425014328, 0.2535413288529153, 0.6844325092504041, 0.2628728125612261 ], "ocr": false, "ocr_confidence": 1, "text": "past" }, { "bbox": [ 0.5342969752678386, 0.2708148169562225, 0.5751130534004276, 0.279690233548828 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.290706097547278, 0.26995547026705674, 0.3284005942451445, 0.2792869539753675 ], "ocr": false, "ocr_confidence": 1, "text": "prior" }, { "bbox": [ 0.6024248779041534, 0.2876168047860418, 0.6424716986244763, 0.29740003023079314 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.7276843956714161, 0.28673881247623245, 0.7626676307925803, 0.29785714711972716 ], "ocr": false, "ocr_confidence": 1, "text": "paid" }, { "bbox": [ 0.7613832644177857, 0.2841394899651, 0.7964082544789475, 0.3012982204726105 ], "ocr": false, "ocr_confidence": 1, "text": "5150," }, { "bbox": [ 0.07593990071012806, 0.5556291137479863, 0.10936681273117602, 0.569791761672889 ], "ocr": false, "ocr_confidence": 1, "text": "lease" }, { "bbox": [ 0.5416685784152013, 0.5595023266715636, 0.5847532141099716, 0.5692855521163152 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.5052147987218301, 0.5763373435065805, 0.5470843084268213, 0.5861205689513319 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.40525790095860953, 0.6242272226662968, 0.439862224932715, 0.6388199153808412 ], "ocr": false, "ocr_confidence": 1, "text": "from" }, { "bbox": [ 0.8337467080433756, 0.6264261607427206, 0.8765431225706275, 0.6383044789879191 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.7139654887052228, 0.6915525786139307, 0.7581596479120879, 0.7078581957968435 ], "ocr": false, "ocr_confidence": 1, "text": "Diego," }, { "bbox": [ 0.05718989122965004, 0.7079667200280721, 0.08011934561538184, 0.7242723372109849 ], "ocr": false, "ocr_confidence": 1, "text": "ing" }, { "bbox": [ 0.8666758167025443, 0.7287096790212655, 0.8982946834515156, 0.7380411627295763 ], "ocr": false, "ocr_confidence": 1, "text": "mil-" }, { "bbox": [ 0.3907698375351776, 0.741210197035807, 0.43612339850946125, 0.7583689275433176 ], "ocr": false, "ocr_confidence": 1, "text": "facility" } ]
[ { "bbox": [ 0.05164285572444378, 0.038720564408735794, 0.18469915508175233, 0.08964646464646464 ], "data": [], "index_in_doc": 396, "label": "picture", "text": "" }, { "bbox": [ 0.05711092267844947, 0.0993266250147964, 0.3232235040105499, 0.1094276351158065 ], "data": [], "index_in_doc": 397, "label": "section_header", "text": "Commitments And Contingencils" }, { "bbox": [ 0.05711092267844947, 0.11531983963166824, 0.11908235163368401, 0.12794610225793088 ], "data": [], "index_in_doc": 398, "label": "section_header", "text": "Litigation" }, { "bbox": [ 0.05708871129859137, 0.13173398104580966, 0.867499277165425, 0.16409008912365847 ], "data": [], "index_in_doc": 399, "label": "text", "text": "We currently are not subject to any material legal proceedings or claims , nor are we aware of any material legal proceedings or caims threatened . being" }, { "bbox": [ 0.05801364544249324, 0.18181818181818182, 0.20049578831354212, 0.19476387717507102 ], "data": [], "index_in_doc": 400, "label": "section_header", "text": "Post-Retirement Benefit" }, { "bbox": [ 0.0565033585247255, 0.19739054670237532, 0.9134587069832772, 0.316077415389244 ], "data": [], "index_in_doc": 401, "label": "text", "text": "In 1997, in connection with the Offering; an officer of Alexandria retired. In connection with the officer's retirement; we agreed to pay a post-retirement benefit equal to SI5o,0oo for each of the first three years following the Offering; and S90,000 per year (plus an annual increase of 2% per year) thereafter for the remainder of the longer of the executive's life and the life of the executive's spouse as of the date of the agreement. In 1997 and 1996,a post-retirement expense was recorded for services equal to 5632,000 and 5438,000, respectively (pursuant to a agreement) . As of December 31, and 1997, the accrued liability for post-retirement benefit was SI,IIO,000 and 51,037,000, respectively. For the years ended December 31, and 1997, we oo0 and $75,000 respectively, under the retirement agreement, of which S77,000 and 542,000, respectively, represented interest. past 1998 prior 1998 paid 5150," }, { "bbox": [ 0.0577184833556701, 0.33417510986328125, 0.267935280746279, 0.3493266250147964 ], "data": [], "index_in_doc": 402, "label": "section_header", "text": "Employee Retirement Savings Plan" }, { "bbox": [ 0.05468066954005694, 0.35143095074277936, 0.9054302648472558, 0.4347643226084083 ], "data": [], "index_in_doc": 403, "label": "text", "text": "Effective January 1, 1997, we adopted a retirement savings plan pursuant to Section 401(k) of the Internal Revenue Code (\"Code\") whereby our employees may contribute a portion of their compensation to their respective retirement accounts, in an amount not to exceed the maximum allowed under the Code. The plan provides that we match the employees' contributions, which amounted to 589,000 and S36,000, respectively, for the years ended December 31, 1998 and 1997. Employees who participate in the plan are immediately vested in their contributions and in the matching contributions of the company." }, { "bbox": [ 0.05786253574818857, 0.4532828282828283, 0.22965881206823915, 0.46606433752811316 ], "data": [], "index_in_doc": 404, "label": "section_header", "text": "Concentration of Credit Risk" }, { "bbox": [ 0.055895794371001534, 0.46927608143199573, 0.9107369107980416, 0.5193602822043679 ], "data": [], "index_in_doc": 405, "label": "text", "text": "We maintain our cash and cash equivalents at insured financial institutions. The combined account balances at each institution peri odically exceed FDIC insurance coverage, and, as a result, there is a concentration of credit risk related to amounts in excess of FDIC insurance coverage. We believe that the risk is not significant:." }, { "bbox": [ 0.05468066954005694, 0.5382996761437618, 0.9095845472819473, 0.6052188680629538 ], "data": [], "index_in_doc": 406, "label": "text", "text": "We are dependent on rental income from relatively few tenants in the life science industry: The inability of any single tenant to make its payments could adversely affect our operations. As of December 31, we had 158 leases with a total of 148 tenants, and 24 of our 51 properties were leased to a single tenant. At December 31, our three largest tenants accounted for approximately 18.49 of our aggregate annualized base rent. lease 1998, 1998," }, { "bbox": [ 0.0565033585247255, 0.6241582620023477, 0.8997782491483679, 0.6569865448306306 ], "data": [], "index_in_doc": 407, "label": "text", "text": "We generally do not require collateral or other security our tenants, other than security deposits. As of December 31, we have S6.1 million in irrevocable letters of credit available from certain tenants as security deposits for 15 leases. from 1998," }, { "bbox": [ 0.05811627877418381, 0.6750841622400765, 0.14459999741904392, 0.6860269296048868 ], "data": [], "index_in_doc": 408, "label": "section_header", "text": "Commitments" }, { "bbox": [ 0.05468066954005694, 0.6898148083927655, 0.9099710232055763, 0.7752525252525253 ], "data": [], "index_in_doc": 409, "label": "text", "text": "We are committed to complete the construction of a building and certain related improvements in San California at a remaincost of approximately 54.9 million under the terms of two leases. In addition, we are committed to complete the construction of building and certain related improvements in Gaithersburg; Maryland at a remaining cost of between $7.8 million and S16.8 lion (depending on the level of improvements to the elected by the tenant) under the terms of a lease. Under the terms of the lease, the tenant's rental rate will be adjusted depending on the ultimate cost of the improvements. Diego, ing milfacility" }, { "bbox": [ 0.0565033585247255, 0.7933501619281191, 0.9063586302999571, 0.8619528587418374 ], "data": [], "index_in_doc": 410, "label": "text", "text": "We are also committed to fund approximately SIL.1 million for investments in limited partnerships and rental properties , including the construction of tenant improvements under the terms of various leases. Of this amount, approximately $3.2 million has been set aside in restricted cash accounts to complete the conversion of existing space into higher rent generic laboratory space (as well as certain related improvements) at 102/1124 Columbia Street and 3000/3018 Western Avenue." }, { "bbox": [ 0.4684310690598211, 0.9574915808860702, 0.493948714845181, 0.9776936034963588 ], "data": [], "index_in_doc": 411, "label": "page_footer", "text": "46" } ]
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Eleven StocK Option Plans And Stock GRants We have elected to follow Accounting Principles Board Opinion No. 25, "Accounting for Stock Issued to Employees" ("APB 25") and related Interpretations in accounting for our employee and director stock options, stock grants and stock appreciation Under APB 25. because the exercise of employee and director stock options we granted equals the market of the underlying stock on the date of grant, no compensation expense has recognized. rights . price price been 1997 Stock Option Plan In connection with the Offering, we adopted a stock option and incentive plan (the 1997 Stock Option Plan" for the purpose of attracting and retaining the best personnel, providing for additional incentives, and promoting the success of the company by providemployees the opportunity to acquire common stock. Options under our plan have been granted at prices that are equal to the market value of the stock on the date of grant and expire ten years after the date of grant. Employee options vest ratably in three annual installments from the date of grant. Non-employee director options are exercisable immediately upon the date of grant:. ing The options outstanding under the 1997 Stock Option Plan at various dates through November 2008. As of December 31, 1998,a total of 379,793 shares were reserved for the granting of future options under the 1997 Stock Option Plan. expire Although we have elected to follow APB 25. pro forma information regarding net income and net income (loss) per share is required by Financial Accounting Standards Board Statement No. 123, "Accounting for Stock-Based Compensation. This information has been determined as if we had accounted for our employee stock options under the fair value method under Statement 123. The fair value of the issued under the 1997 Stock Option Plan was estimated at the date of grant using a Black-Scholes option pricing model with the following weighted-average assumptions for 1998 and 1997: options For purposes of the following pro forma disclosures , the estimated fair value of the options is amortized to expense over the options' periods (in thousands, except per share information): vesting 4Z
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Options under our plan have been granted at prices that are equal to the" }, { "bbox": [ 0.08809663425898062, 0.26599326599326595, 0.9107369293393929, 0.2811447811447811 ], "ocr": false, "ocr_confidence": 1, "text": "market value of the stock on the date of grant and expire ten years after the date of grant. Employee options vest ratably in three" }, { "bbox": [ 0.08688150826920157, 0.2828282828282828, 0.9010159214211604, 0.29840067340067344 ], "ocr": false, "ocr_confidence": 1, "text": "annual installments from the date of grant. Non-employee director options are exercisable immediately upon the date of grant:." }, { "bbox": [ 0.08688150826920157, 0.3160774410774411, 0.4696461950496002, 0.332912457912458 ], "ocr": false, "ocr_confidence": 1, "text": "The options outstanding under the 1997 Stock Option Plan" }, { "bbox": [ 0.5103529157071981, 0.319023569023569, 0.7837562634074828, 0.3324915824915824 ], "ocr": false, "ocr_confidence": 1, "text": "at various dates through November 2008." }, { "bbox": [ 0.788616767366599, 0.319023569023569, 0.9162049962933986, 0.33164983164983175 ], "ocr": false, "ocr_confidence": 1, "text": "As of December 31," }, { "bbox": [ 0.08566638227942254, 0.3345959595959596, 0.8214251690906331, 0.3505892255892257 ], "ocr": false, "ocr_confidence": 1, "text": "1998,a total of 379,793 shares were reserved for the granting of future options under the 1997 Stock Option Plan." }, { "bbox": [ 0.08809663425898062, 0.3682659932659933, 0.9392923900992004, 0.38425925925925924 ], "ocr": false, "ocr_confidence": 1, "text": "Although we have elected to follow APB 25. pro forma information regarding net income and net income (loss) per share is required" }, { "bbox": [ 0.08688150826920157, 0.3855218855218855, 0.7661369365556866, 0.4010942760942761 ], "ocr": false, "ocr_confidence": 1, "text": "by Financial Accounting Standards Board Statement No. 123, \"Accounting for Stock-Based Compensation." }, { "bbox": [ 0.7728201294994714, 0.38804713804713803, 0.9113444923342823, 0.398989898989899 ], "ocr": false, "ocr_confidence": 1, "text": "This information has" }, { "bbox": [ 0.0874890712640911, 0.40404040404040403, 0.9283562561911889, 0.41750841750841755 ], "ocr": false, "ocr_confidence": 1, "text": "been determined as if we had accounted for our employee stock options under the fair value method under Statement 123. The fair" }, { "bbox": [ 0.0874890712640911, 0.4217171717171717, 0.16525713460994987, 0.4335016835016835 ], "ocr": false, "ocr_confidence": 1, "text": "value of the" }, { "bbox": [ 0.21446973719600113, 0.42045454545454547, 0.9411150790838689, 0.4364478114478115 ], "ocr": false, "ocr_confidence": 1, "text": "issued under the 1997 Stock Option Plan was estimated at the date of grant using a Black-Scholes option pricing" }, { "bbox": [ 0.0874890712640911, 0.4393939393939394, 0.18712940242597265, 0.45033670033670037 ], "ocr": false, "ocr_confidence": 1, "text": "model with the" }, { "bbox": [ 0.1853067134413041, 0.43686868686868685, 0.5765772821501559, 0.45370370370370366 ], "ocr": false, "ocr_confidence": 1, "text": "following weighted-average assumptions for 1998 and 1997:" }, { "bbox": [ 0.7485176097038906, 0.46885521885521886, 0.7825411374177037, 0.48063973063973064 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.8991932324364919, 0.4705387205387206, 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0.5711279461279462, 0.9380772641094212, 0.5875420875420875 ], "ocr": false, "ocr_confidence": 1, "text": "For purposes of the following pro forma disclosures , the estimated fair value of the options is amortized to expense over the options'" }, { "bbox": [ 0.13487898486547378, 0.5896464646464646, 0.4793672029678325, 0.6035353535353535 ], "ocr": false, "ocr_confidence": 1, "text": "periods (in thousands, except per share information):" }, { "bbox": [ 0.6926218141740546, 0.6220538720538721, 0.8894722245182596, 0.6321548821548821 ], "ocr": false, "ocr_confidence": 1, "text": "FOR THE YEAR ENDED DECEMBER 31" }, { "bbox": [ 0.7473024837141115, 0.6363636363636364, 0.7825411374177037, 0.648989898989899 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.8991932324364919, 0.6388888888888888, 0.930786508170747, 0.6498316498316498 ], "ocr": false, "ocr_confidence": 1, "text": "1997" }, { "bbox": [ 0.08870419725387015, 0.656986531986532, 0.26854284374116855, 0.67003367003367 ], 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A summary of the stock activity under our 1997 Stock Option Plan, and related information for the years ended December 31, 1998 and December 31, 1997 follows: option Exercise prices for options outstanding as of December 31, 1998 range from S2o.0o to 532.94. The weighted average contractual life of options outstanding is 8.8 years. Prior Stock Option Plan Prior to the Offering; we had a ten-year incentive and nonqualified stock option plan for certain of our employees and non-employee directors. Under this plan, holders of options to purchase common stock of Holdings granted under stock option plans of Holdings ("Holdings Stock Options' were eligible, under certain circumstances (including the Offering) , to receive substitute stock options of Alexandria in substitution for previously granted Holdings Stock Options. As such, in connection with the Offering; our officers , directors and certain employees received substitute stock options to purchase 57,000 shares of our common stock under the plan. These substitute stock options were exercised in connection with the Offering at a nominal exercise No further stock options were issued under the prior plan. In connection with the issuance of the substitute stock options, we recognized 51,187,000 of stock compensation expense in 1997. prior prior price. No compensation expense was recorded with respect to Holdings Stock Options issued the year ended December 31, 1996 since were issued with an exercise equal to the then fair market value of the Holdings common stock. during they price Stock Grants In connection with the Offering; we granted our officers , directors and certain employees an aggregate of 152,615 shares of common stock. As a result of the grants, we recorded stock compensation expense of 53,052,000. Twelve PurchaSe Of Acquisition LlC January 1997, we assigned our right to purchase three Life Science Facilities to an entity (the "Acquisition LLC") owned by affiliates of PaineWebber Incorporated ("PaineWebber") , the lead managing underwriter of the Offering-In January 1997, the Acquisition LLC acquired the three Life Science Facilities S51,871,000 from unaffiliated sellers. In connection with the Offering; we acquired 10o% of the membership interests in the Acquisition LLC the PaineWebber affiliates . During for from The purchase price we for the membership interests (S58,844,000) exceeded the cost incurred by the Acquisition LLC to acquire the properties (S51,871,000). The excess of this purchase over the cost of the Acquisition LLC to acquire the properties (56,973,000) is reflected as a financing cost in 1997 in our consolidated statement of operations_ paid price 48
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}, { "bbox": [ 0.0479974765962722, 0.2916666666666667, 0.3463109070870273, 0.3072390572390573 ], "ocr": false, "ocr_confidence": 1, "text": "Weighted-average fair value of options granted" }, { "bbox": [ 0.6300428257004339, 0.2933501683501684, 0.6421940855982242, 0.30260942760942755 ], "ocr": false, "ocr_confidence": 1, "text": "5" }, { "bbox": [ 0.8566638227942254, 0.29250841750841744, 0.890079787513149, 0.3051346801346801 ], "ocr": false, "ocr_confidence": 1, "text": "2.93" }, { "bbox": [ 0.04738991360138268, 0.32702020202020204, 0.6835083692507118, 0.3430134680134681 ], "ocr": false, "ocr_confidence": 1, "text": "Exercise prices for options outstanding as of December 31, 1998 range from S2o.0o to 532.94. The" }, { "bbox": [ 0.6798629912813746, 0.3249158249158248, 0.8973705434518233, 0.3430134680134681 ], "ocr": false, "ocr_confidence": 1, "text": "weighted average contractual life" }, { "bbox": [ 0.04678235060649316, 0.34385521885521875, 0.27036553272583713, 0.36026936026936024 ], "ocr": false, "ocr_confidence": 1, "text": "of options outstanding is 8.8 years." }, { "bbox": [ 0.04982016558094077, 0.3787878787878788, 0.19685041034420497, 0.39141414141414144 ], "ocr": false, "ocr_confidence": 1, "text": "Prior Stock Option Plan" }, { "bbox": [ 0.048605039591161726, 0.39646464646464646, 0.1239428509574624, 0.4065656565656566 ], "ocr": false, "ocr_confidence": 1, "text": "Prior to the" }, { "bbox": [ 0.12212016197279384, 0.39351851851851855, 0.38944787972418327, 0.40993265993266 ], "ocr": false, "ocr_confidence": 1, "text": "Offering; we had a ten-year incentive and" }, { "bbox": [ 0.3870176277446252, 0.3926767676767677, 0.8949402914722653, 0.40993265993266 ], "ocr": false, "ocr_confidence": 1, "text": "nonqualified stock option plan for certain of our employees and non-employee" }, { "bbox": [ 0.048605039591161726, 0.4132996632996633, 0.11057646506989292, 0.42424242424242425 ], "ocr": false, "ocr_confidence": 1, "text": "directors." }, { "bbox": [ 0.04982016558094077, 0.4478114478114478, 0.12029747298812526, 0.45875420875420875 ], "ocr": false, "ocr_confidence": 1, "text": "Under this" }, { "bbox": [ 0.15371343770704896, 0.44360269360269355, 0.8627394527431206, 0.46085858585858586 ], "ocr": false, "ocr_confidence": 1, "text": "plan, holders of options to purchase common stock of Holdings granted under stock option plans of Holdings" }, { "bbox": [ 0.04738991360138268, 0.46296296296296297, 0.21507730019089064, 0.47853535353535354 ], "ocr": false, "ocr_confidence": 1, "text": "(\"Holdings Stock Options'" }, { "bbox": [ 0.2254058711040125, 0.46675084175084175, 0.25821427282804665, 0.47516835016835013 ], "ocr": false, "ocr_confidence": 1, "text": "were" }, { "bbox": [ 0.25639158384337807, 0.4617003367003367, 0.8985856694416023, 0.47853535353535354 ], "ocr": false, "ocr_confidence": 1, "text": "eligible, under certain circumstances (including the Offering) , to receive substitute stock options of" }, { "bbox": [ 0.04921260258605124, 0.47853535353535354, 0.8730680236562425, 0.494949494949495 ], "ocr": false, "ocr_confidence": 1, "text": "Alexandria in substitution for previously granted Holdings Stock Options. As such, in connection with the Offering; our officers ," }, { "bbox": [ 0.04921260258605124, 0.4966329966329966, 0.8451201258913245, 0.5122053872053872 ], "ocr": false, "ocr_confidence": 1, "text": "directors and certain employees received substitute stock options to purchase 57,000 shares of our common stock under the" }, { "bbox": [ 0.04921260258605124, 0.513047138047138, 0.7254302158980888, 0.529882154882155 ], "ocr": false, "ocr_confidence": 1, "text": "plan. These substitute stock options were exercised in connection with the Offering at a nominal exercise" }, { "bbox": [ 0.7655293735607972, 0.5143097643097643, 0.874890712640911, 0.5260942760942762 ], "ocr": false, "ocr_confidence": 1, "text": "No further stock" }, { "bbox": [ 0.0479974765962722, 0.5307239057239057, 0.7454797947294429, 0.5471380471380471 ], "ocr": false, "ocr_confidence": 1, "text": "options were issued under the prior plan. In connection with the issuance of the substitute stock options, we" }, { "bbox": [ 0.7430495427498849, 0.529882154882155, 0.8937251654824862, 0.5475589225589226 ], "ocr": false, "ocr_confidence": 1, "text": "recognized 51,187,000" }, { "bbox": [ 0.04982016558094077, 0.5505050505050505, 0.3049966234345398, 0.563973063973064 ], "ocr": false, "ocr_confidence": 1, "text": "of stock compensation expense in 1997." }, { "bbox": [ 0.05103529157071981, 0.5858585858585859, 0.07169243339696355, 0.5959595959595959 ], "ocr": false, "ocr_confidence": 1, "text": "No" }, { "bbox": [ 0.0704773074071845, 0.5816498316498316, 0.605740305904853, 0.5993265993265994 ], "ocr": false, "ocr_confidence": 1, "text": "compensation expense was recorded with respect to Holdings Stock Options issued" }, { "bbox": [ 0.6506999675266776, 0.5824915824915825, 0.8803587795949167, 0.5980639730639731 ], "ocr": false, "ocr_confidence": 1, "text": "the year ended December 31, 1996" }, { "bbox": [ 0.04982016558094077, 0.6035353535353535, 0.08627394527431206, 0.6136363636363636 ], "ocr": false, "ocr_confidence": 1, "text": "since" }, { "bbox": [ 0.11665209501878814, 0.6014309764309764, 0.3001361194754236, 0.6136363636363636 ], "ocr": false, "ocr_confidence": 1, "text": "were issued with an exercise" }, { "bbox": [ 0.3323369582045683, 0.6005892255892256, 0.6020949279355158, 0.6157407407407408 ], "ocr": false, "ocr_confidence": 1, "text": "equal to the then fair market value of the" }, { "bbox": [ 0.5996646759559577, 0.5984848484848485, 0.7661369365556866, 0.6153198653198653 ], "ocr": false, "ocr_confidence": 1, "text": "Holdings common stock." }, { "bbox": [ 0.05103529157071981, 0.6346801346801347, 0.13123360689613664, 0.6456228956228957 ], "ocr": false, "ocr_confidence": 1, "text": "Stock Grants" }, { "bbox": [ 0.04982016558094077, 0.6515151515151515, 0.19685041034420497, 0.6632996632996634 ], "ocr": false, "ocr_confidence": 1, "text": "In connection with the" }, { "bbox": [ 0.19502772135953642, 0.6485690235690236, 0.8943327284773758, 0.6658249158249159 ], "ocr": false, "ocr_confidence": 1, "text": "Offering; we granted our officers , directors and certain employees an aggregate of 152,615 shares of common" }, { "bbox": [ 0.04921260258605124, 0.6683501683501684, 0.5152134196663143, 0.6818181818181818 ], "ocr": false, "ocr_confidence": 1, "text": "stock. As a result of the grants, we recorded stock compensation expense" }, { "bbox": [ 0.5133907306816458, 0.6658249158249159, 0.6142461878333063, 0.6839225589225588 ], "ocr": false, "ocr_confidence": 1, "text": "of 53,052,000." }, { "bbox": [ 0.0479974765962722, 0.7074915824915825, 0.28312435561851707, 0.7605218855218856 ], "ocr": false, "ocr_confidence": 1, "text": "Twelve" }, { "bbox": [ 0.05042772857583029, 0.7702020202020202, 0.2782638516594009, 0.7803030303030303 ], "ocr": false, "ocr_confidence": 1, "text": "PurchaSe Of Acquisition LlC" }, { "bbox": [ 0.09842520517210249, 0.7832491582491583, 0.8840041575642539, 0.8000841750841751 ], "ocr": false, "ocr_confidence": 1, "text": "January 1997, we assigned our right to purchase three Life Science Facilities to an entity (the \"Acquisition LLC\") owned by" }, { "bbox": [ 0.05042772857583029, 0.8009259259259259, 0.8536260078197777, 0.8173400673400674 ], "ocr": false, "ocr_confidence": 1, "text": "affiliates of PaineWebber Incorporated (\"PaineWebber\") , the lead managing underwriter of the Offering-In January 1997, the" }, { "bbox": [ 0.04982016558094077, 0.8186026936026937, 0.41618065149932226, 0.8345959595959596 ], "ocr": false, "ocr_confidence": 1, "text": "Acquisition LLC acquired the three Life Science Facilities" }, { "bbox": [ 0.436837793325566, 0.8169191919191919, 0.8943327284773758, 0.8337542087542088 ], "ocr": false, "ocr_confidence": 1, "text": "S51,871,000 from unaffiliated sellers. In connection with the Offering;" }, { "bbox": [ 0.05164285456560933, 0.8404882154882154, 0.07229999639185306, 0.8489057239057239 ], "ocr": false, "ocr_confidence": 1, "text": "we" }, { "bbox": [ 0.06986974441229499, 0.8362794612794613, 0.5036697227634134, 0.8522727272727273 ], "ocr": false, "ocr_confidence": 1, "text": "acquired 10o% of the membership interests in the Acquisition LLC" }, { "bbox": [ 0.538300813472116, 0.8367003367003366, 0.7132789560002982, 0.8476430976430976 ], "ocr": false, "ocr_confidence": 1, "text": "the PaineWebber affiliates ." }, { "bbox": [ 0.05042772857583029, 0.8703703703703705, 0.19745797333909448, 0.8859427609427609 ], "ocr": false, "ocr_confidence": 1, "text": "The purchase price we" }, { "bbox": [ 0.22662099709379152, 0.8699494949494949, 0.8560562597993359, 0.8863636363636364 ], "ocr": false, "ocr_confidence": 1, "text": "for the membership interests (S58,844,000) exceeded the cost incurred by the Acquisition LLC to" }, { "bbox": [ 0.04921260258605124, 0.8872053872053871, 0.46478569109048395, 0.9040404040404041 ], "ocr": false, "ocr_confidence": 1, "text": "acquire the properties (S51,871,000). The excess of this purchase" }, { "bbox": [ 0.5000243447940762, 0.8863636363636364, 0.8955478544671547, 0.9027777777777778 ], "ocr": false, "ocr_confidence": 1, "text": "over the cost of the Acquisition LLC to acquire the properties" }, { "bbox": [ 0.05042772857583029, 0.9061447811447811, 0.23877225699158197, 0.9212962962962963 ], "ocr": false, "ocr_confidence": 1, "text": "(56,973,000) is reflected as a" }, { "bbox": [ 0.2369495680069134, 0.9044612794612795, 0.6677117313835842, 0.9212962962962963 ], "ocr": false, "ocr_confidence": 1, "text": "financing cost in 1997 in our consolidated statement of operations_" }, { "bbox": [ 0.46357056510070493, 0.9566498316498316, 0.48787308489628584, 0.9734848484848485 ], "ocr": false, "ocr_confidence": 1, "text": "48" }, { "bbox": [ 0.19961061229240065, 0.04056293273216978, 0.24573306296161865, 0.05034615817692113 ], "ocr": false, "ocr_confidence": 1, "text": "option" }, { "bbox": [ 0.6065969716596917, 0.09236363850504413, 0.6437676718229435, 0.10123905509764952 ], "ocr": false, "ocr_confidence": 1, "text": "1998" }, { "bbox": [ 0.6607509254135474, 0.2930881852574223, 0.6959372421747542, 0.30287141070217366 ], "ocr": false, "ocr_confidence": 1, "text": "4.88" }, { "bbox": [ 0.11823343610557352, 0.4483776285070935, 0.1557774745896007, 0.4586089034794385 ], "ocr": false, "ocr_confidence": 1, "text": "prior" }, { "bbox": [ 0.8417238506819367, 0.4993501704915761, 0.881932365819636, 0.5082255870841815 ], "ocr": false, "ocr_confidence": 1, "text": "prior" }, { "bbox": [ 0.7239737420104265, 0.5157176958471609, 0.7639480324740118, 0.5259489708195059 ], "ocr": false, "ocr_confidence": 1, "text": "price." }, { "bbox": [ 0.6058335674491587, 0.5817011378347164, 0.6512142689772613, 0.5984335422999637 ], "ocr": false, "ocr_confidence": 1, "text": "during" }, { "bbox": [ 0.08569756040854681, 0.6010748948256938, 0.11479822790499529, 0.6160968223460234 ], "ocr": false, "ocr_confidence": 1, "text": "they" }, { "bbox": [ 0.29799685348595223, 0.6032888036003901, 0.33569135018381874, 0.6126202873087009 ], "ocr": false, "ocr_confidence": 1, "text": "price" }, { "bbox": [ 0.05234367910480456, 0.7837213398549184, 0.09954706961757583, 0.8004537443201657 ], "ocr": false, "ocr_confidence": 1, "text": "During" }, { "bbox": [ 0.4149400424538558, 0.8186812936522849, 0.43625571338636393, 0.8324129824419912 ], "ocr": false, "ocr_confidence": 1, "text": "for" }, { "bbox": [ 0.503683106130712, 0.8355066839457581, 0.5370723041150384, 0.8500993766603024 ], "ocr": false, "ocr_confidence": 1, "text": "from" }, { "bbox": [ 0.1940166754220832, 0.8743703068674187, 0.22945473201591332, 0.8827845752874635 ], "ocr": false, "ocr_confidence": 1, "text": "paid" }, { "bbox": [ 0.4627216542079322, 0.8894550695845346, 0.5008732556868489, 0.8996863445568796 ], "ocr": false, "ocr_confidence": 1, "text": "price" } ]
[ { "bbox": [ 0.045567224616714114, 0.036616161616161616, 0.8961553989206931, 0.07112792043974905 ], "data": [], "index_in_doc": 423, "label": "text", "text": "A summary of the stock activity under our 1997 Stock Option Plan, and related information for the years ended December 31, 1998 and December 31, 1997 follows: option" }, { "bbox": [ 0.046021064745619525, 0.09132986357717802, 0.9016655176591352, 0.3098652386906171 ], "data": [ { "html_seq": "<table><tr><td></td><th colspan=\"2\">1998</th><th colspan=\"2\">1997</th></tr><tr><td></td><th>Stock Options</th><th>Weighted Average Exercise Price</th><th>Stock Options</th><th>Weighted Average Exercise Price</th></tr><tr><td>Outstanding-beginning of year</td><td>7OI,000</td><td>20.80</td><td></td><td></td></tr><tr><td>Granted</td><td>290,500</td><td>31.00</td><td>701,000</td><td>20.80</td></tr><tr><td>Exercised</td><td>(57,333)</td><td>20.00</td><td></td><td></td></tr><tr><td>Forfeited</td><td>(112,667)</td><td>20 64</td><td></td><td></td></tr><tr><td>Outstanding-end of year</td><td>821,500</td><td>5 24-49</td><td>701,000</td><td>5 20.80</td></tr><tr><td>Exercisable at end of year</td><td>252,834</td><td>5 23.33</td><td>30,000</td><td>5 20.00</td></tr><tr><td>Weighted-average fair value of options granted</td><td></td><td>5 4.88</td><td></td><td>2.93</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 424, "label": "table", "text": "" }, { "bbox": [ 0.04678234944765871, 0.32491579922762787, 0.8973705619931744, 0.3602693731134588 ], "data": [], "index_in_doc": 425, "label": "text", "text": "Exercise prices for options outstanding as of December 31, 1998 range from S2o.0o to 532.94. The weighted average contractual life of options outstanding is 8.8 years." }, { "bbox": [ 0.04874472086014366, 0.37870333893130526, 0.19685041034420497, 0.39141414141414144 ], "data": [], "index_in_doc": 426, "label": "section_header", "text": "Prior Stock Option Plan" }, { "bbox": [ 0.047940490912309015, 0.3926767676767677, 0.8956787007823078, 0.42424242424242425 ], "data": [], "index_in_doc": 427, "label": "text", "text": "Prior to the Offering; we had a ten-year incentive and nonqualified stock option plan for certain of our employees and non-employee directors." }, { "bbox": [ 0.04738991360138268, 0.4436027064467921, 0.8991588196887345, 0.5639730511289655 ], "data": [], "index_in_doc": 428, "label": "text", "text": "Under this plan, holders of options to purchase common stock of Holdings granted under stock option plans of Holdings (\"Holdings Stock Options' were eligible, under certain circumstances (including the Offering) , to receive substitute stock options of Alexandria in substitution for previously granted Holdings Stock Options. As such, in connection with the Offering; our officers , directors and certain employees received substitute stock options to purchase 57,000 shares of our common stock under the plan. These substitute stock options were exercised in connection with the Offering at a nominal exercise No further stock options were issued under the prior plan. In connection with the issuance of the substitute stock options, we recognized 51,187,000 of stock compensation expense in 1997. prior prior price." }, { "bbox": [ 0.048926163046115564, 0.5816498188057331, 0.8803587795949167, 0.6160968048403962 ], "data": [], "index_in_doc": 429, "label": "text", "text": "No compensation expense was recorded with respect to Holdings Stock Options issued the year ended December 31, 1996 since were issued with an exercise equal to the then fair market value of the Holdings common stock. during they price" }, { "bbox": [ 0.05012708636090421, 0.6345778185911853, 0.13123360689613664, 0.6456229084669941 ], "data": [], "index_in_doc": 430, "label": "section_header", "text": "Stock Grants" }, { "bbox": [ 0.04921260258605124, 0.648569010724925, 0.8959112649499378, 0.6839225653446082 ], "data": [], "index_in_doc": 431, "label": "text", "text": "In connection with the Offering; we granted our officers , directors and certain employees an aggregate of 152,615 shares of common stock. As a result of the grants, we recorded stock compensation expense of 53,052,000." }, { "bbox": [ 0.04799747775510665, 0.7074915760695332, 0.28312434634784145, 0.7605218790998363 ], "data": [], "index_in_doc": 432, "label": "section_header", "text": "Twelve" }, { "bbox": [ 0.05042772741699584, 0.7699846980547664, 0.27826386093007643, 0.7803030303030303 ], "data": [], "index_in_doc": 433, "label": "section_header", "text": "PurchaSe Of Acquisition LlC" }, { "bbox": [ 0.04982016673977521, 0.783249151827109, 0.8943327099360245, 0.8522727272727273 ], "data": [], "index_in_doc": 434, "label": "text", "text": "January 1997, we assigned our right to purchase three Life Science Facilities to an entity (the \"Acquisition LLC\") owned by affiliates of PaineWebber Incorporated (\"PaineWebber\") , the lead managing underwriter of the Offering-In January 1997, the Acquisition LLC acquired the three Life Science Facilities S51,871,000 from unaffiliated sellers. In connection with the Offering; we acquired 10o% of the membership interests in the Acquisition LLC the PaineWebber affiliates . During for from" }, { "bbox": [ 0.04921260258605124, 0.8699494949494949, 0.8955478730085059, 0.9212962979018086 ], "data": [], "index_in_doc": 435, "label": "text", "text": "The purchase price we for the membership interests (S58,844,000) exceeded the cost incurred by the Acquisition LLC to acquire the properties (S51,871,000). The excess of this purchase over the cost of the Acquisition LLC to acquire the properties (56,973,000) is reflected as a financing cost in 1997 in our consolidated statement of operations_ paid price" }, { "bbox": [ 0.4635705558300294, 0.952111754754577, 0.48787306635493466, 0.9734848484848485 ], "data": [], "index_in_doc": 436, "label": "page_footer", "text": "48" } ]
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Thirteen RElaTed Panty Transactions 1997 and we incurred 52,762,000, $3,358,000 and S1,708,000, respectively, for legal services provided by a firm of which a minority shareholder of Holdings is a member 1998, 1996, During 1997 and 1996, we were reimbursed 5270,000, S21,000 and $18,000, respectively, for payroll, accounting and office space incurred on behalf of Holdings. During 1998, Fourteen QuarteRly Financial data (Unaudited) Following is a summary of consolidated financial information on a quarterly basis for 1998 and 1997 Fifteen SUBSEQUEnT EVnT On February 23, 1999, we completed a follow-on offering of 1,150,000 shares of common stock (including the shares issued upon exercise of the underwriters' over-allotment option) . The shares were issued at a of S28.125 per share resulting in aggregate proceeds, net of underwriters' discount and commissions, advisory fees and offering costs , of approximately 6 million. price 529-4 PRivate SecuRities Litigation Reform AcT Of 1995 Certain statements made in this Annual Report constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other facts that may cause our actual results, performance or achievements , or industry results; to be materially different from any future results , performance or achievements expressed or implied by such forward-looking statements. Given these uncertainties , prospective and current investors are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained in this or any other document. Readers of this Annual Report should also read our other publicly filed documents for further discussion . update 49
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0.9301789451758574, 0.180976430976431 ], "ocr": false, "ocr_confidence": 1, "text": "1997 and 1996, we were reimbursed 5270,000, S21,000 and $18,000, respectively, for payroll, accounting and office" }, { "bbox": [ 0.0874890712640911, 0.18181818181818182, 0.26611259176161045, 0.19528619528619523 ], "ocr": false, "ocr_confidence": 1, "text": "space incurred on behalf of" }, { "bbox": [ 0.26185965079738377, 0.1801346801346801, 0.33172939520967876, 0.19739057239057245 ], "ocr": false, "ocr_confidence": 1, "text": "Holdings." }, { "bbox": [ 0.08627394527431206, 0.2167508417508417, 0.3924856946986309, 0.2685185185185185 ], "ocr": false, "ocr_confidence": 1, "text": "Fourteen" }, { "bbox": [ 0.0874890712640911, 0.2765151515151515, 0.39370082068840995, 0.2878787878787879 ], "ocr": false, "ocr_confidence": 1, "text": "QuarteRly Financial data (Unaudited)" }, { "bbox": [ 0.08688150826920157, 0.2908249158249159, 0.7102411410258507, 0.3068181818181818 ], "ocr": false, "ocr_confidence": 1, "text": 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"ocr_confidence": 1, "text": "0.36" }, { "bbox": [ 0.08688150826920157, 0.5782828282828283, 0.3244386392710045, 0.6296296296296297 ], "ocr": false, "ocr_confidence": 1, "text": "Fifteen" }, { "bbox": [ 0.08870419725387015, 0.6422558922558923, 0.2369495680069134, 0.6523569023569024 ], "ocr": false, "ocr_confidence": 1, "text": "SUBSEQUEnT EVnT" }, { "bbox": [ 0.08809663425898062, 0.6553030303030303, 0.9204579372576251, 0.6721380471380471 ], "ocr": false, "ocr_confidence": 1, "text": "On February 23, 1999, we completed a follow-on offering of 1,150,000 shares of common stock (including the shares issued upon" }, { "bbox": [ 0.08688150826920157, 0.6746632996632997, 0.6002722389508472, 0.6877104377104377 ], "ocr": false, "ocr_confidence": 1, "text": "exercise of the underwriters' over-allotment option) . The shares were issued at a" }, { "bbox": [ 0.636118455649329, 0.6725589225589225, 0.9143823073087299, 0.6889730639730639 ], "ocr": false, "ocr_confidence": 1, "text": "of S28.125 per share resulting in aggregate" }, { "bbox": [ 0.08627394527431206, 0.6906565656565656, 0.7807184484330352, 0.7058080808080808 ], "ocr": false, "ocr_confidence": 1, "text": "proceeds, net of underwriters' discount and commissions, advisory fees and offering costs , of approximately" }, { "bbox": [ 0.8092739091928427, 0.6919191919191919, 0.8754982756358005, 0.7037037037037037 ], "ocr": false, "ocr_confidence": 1, "text": "6 million." }, { "bbox": [ 0.08931176024875967, 0.771043771043771, 0.4848352699218382, 0.7811447811447811 ], "ocr": false, "ocr_confidence": 1, "text": "PRivate SecuRities Litigation Reform AcT Of 1995" }, { "bbox": [ 0.09113444923342823, 0.7870370370370371, 0.4617478761160364, 0.8000841750841751 ], "ocr": false, "ocr_confidence": 1, "text": "Certain statements made in this Annual Report constitute" }, { "bbox": [ 0.46053275012625733, 0.7836700336700336, 0.8742831496460215, 0.8009259259259259 ], "ocr": false, "ocr_confidence": 1, "text": "\"forward-looking statements\" within the meaning of the Private" }, { "bbox": [ 0.0905268862385387, 0.8013468013468013, 0.915597433298509, 0.8186026936026937 ], "ocr": false, "ocr_confidence": 1, "text": "Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and" }, { "bbox": [ 0.08931176024875967, 0.8194444444444444, 0.9247108782218517, 0.8345959595959596 ], "ocr": false, "ocr_confidence": 1, "text": "other facts that may cause our actual results, performance or achievements , or industry results; to be materially different from any" }, { "bbox": [ 0.08870419725387015, 0.8362794612794613, 0.9241033152269623, 0.853114478114478 ], "ocr": false, "ocr_confidence": 1, "text": "future results , performance or achievements expressed or implied by such forward-looking statements. Given these uncertainties ," }, { "bbox": [ 0.08809663425898062, 0.8560606060606061, 0.6257898847362071, 0.8695286195286195 ], "ocr": false, "ocr_confidence": 1, "text": "prospective and current investors are cautioned not to place undue reliance on such" }, { "bbox": [ 0.6257898847362071, 0.853114478114478, 0.8092739091928427, 0.8699494949494949 ], "ocr": false, "ocr_confidence": 1, "text": "forward-looking statements." }, { "bbox": [ 0.8141344131519589, 0.8552188552188552, 0.9234957522320728, 0.8686868686868687 ], "ocr": false, "ocr_confidence": 1, "text": "We disclaim any" }, { "bbox": [ 0.0899193232436492, 0.8716329966329966, 0.17437057953329269, 0.8876262626262627 ], "ocr": false, "ocr_confidence": 1, "text": "obligation to" }, { "bbox": [ 0.21933024115511726, 0.8716329966329966, 0.7357587868112107, 0.8867845117845118 ], "ocr": false, "ocr_confidence": 1, "text": "any such factors or to publicly announce the result of any revisions to any of the" }, { "bbox": [ 0.732720971836763, 0.8707912457912458, 0.915597433298509, 0.8867845117845118 ], "ocr": false, "ocr_confidence": 1, "text": "forward-looking statements" }, { "bbox": [ 0.0899193232436492, 0.8897306397306397, 0.9125596183240614, 0.9036195286195285 ], "ocr": false, "ocr_confidence": 1, "text": "contained in this or any other document. Readers of this Annual Report should also read our other publicly filed documents for" }, { "bbox": [ 0.0899193232436492, 0.906986531986532, 0.21021679623177444, 0.92003367003367 ], "ocr": false, "ocr_confidence": 1, "text": "further discussion ." }, { "bbox": [ 0.4963789668247391, 0.9591750841750841, 0.521896612610099, 0.9768518518518517 ], "ocr": false, "ocr_confidence": 1, "text": "49" }, { "bbox": [ 0.1344417009255363, 0.11464164895820883, 0.17966836743234632, 0.12651996720340733 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.23833497305164453, 0.11379989811645803, 0.28173895057378595, 0.1256782163616564 ], "ocr": false, "ocr_confidence": 1, "text": "1996," }, { "bbox": [ 0.08879745879817584, 0.1111624172959959, 0.13600084931094714, 0.12789482176124323 ], "ocr": false, "ocr_confidence": 1, "text": "During" }, { "bbox": [ 0.08816053470947915, 0.16335713807487168, 0.13603021040475427, 0.17923545451772097 ], "ocr": false, "ocr_confidence": 1, "text": "During" }, { "bbox": [ 0.1352089348341114, 0.1672464344156715, 0.17768600753399222, 0.17702965986042285 ], "ocr": false, "ocr_confidence": 1, "text": "1998," }, { "bbox": [ 0.2130132633083389, 0.32800725813672305, 0.2371909159047966, 0.3382385331090682 ], "ocr": false, "ocr_confidence": 1, "text": "per" }, { "bbox": [ 0.7974525992636897, 0.3595865017557388, 0.8399296719635707, 0.36936972720049016 ], "ocr": false, "ocr_confidence": 1, "text": "I5,8II" }, { "bbox": [ 0.8858307948571505, 0.35611336049487535, 0.9301749968676295, 0.3757889964074816 ], "ocr": false, "ocr_confidence": 1, "text": "18,349" }, { "bbox": [ 0.617006389781502, 0.46059660276583975, 0.6552305215171562, 0.4703798282105912 ], "ocr": false, "ocr_confidence": 1, "text": "7,161" }, { "bbox": [ 0.7991494183320467, 0.47874741124452286, 0.840663104874772, 0.487161679664568 ], "ocr": false, "ocr_confidence": 1, "text": "4,126" }, { "bbox": [ 0.8053119542187027, 0.5304773557889422, 0.8411837619319007, 0.539808839497253 ], "ocr": false, "ocr_confidence": 1, "text": "0.36" }, { "bbox": [ 0.5993480989511549, 0.6765211268327133, 0.6370425956490214, 0.6858526105410241 ], "ocr": false, "ocr_confidence": 1, "text": "price" }, { "bbox": [ 0.7807823488835338, 0.690714040431774, 0.8116402607219022, 0.7065923568746234 ], "ocr": false, "ocr_confidence": 1, "text": "529-4" }, { "bbox": [ 0.17162375054893175, 0.874332574644161, 0.22025438115480964, 0.883664058352472 ], "ocr": false, "ocr_confidence": 1, "text": "update" } ]
[ { "bbox": [ 0.08323613261753335, 0.03493268562085701, 0.37911930881106143, 0.08754206185389046 ], "data": [], "index_in_doc": 437, "label": "section_header", "text": "Thirteen" }, { "bbox": [ 0.0874890712640911, 0.09764307195490057, 0.3183630185927849, 0.10774408205591067 ], "data": [], "index_in_doc": 438, "label": "section_header", "text": "RElaTed Panty Transactions" }, { "bbox": [ 0.08566638227942254, 0.1111624361288668, 0.9117733537866686, 0.14478117046934186 ], "data": [], "index_in_doc": 439, "label": "text", "text": "1997 and we incurred 52,762,000, $3,358,000 and S1,708,000, respectively, for legal services provided by a firm of which a minority shareholder of Holdings is a member 1998, 1996, During" }, { "bbox": [ 0.08744112332998513, 0.1633571277965199, 0.9315568271461401, 0.19739054670237532 ], "data": [], "index_in_doc": 440, "label": "text", "text": "1997 and 1996, we were reimbursed 5270,000, S21,000 and $18,000, respectively, for payroll, accounting and office space incurred on behalf of Holdings. During 1998," }, { "bbox": [ 0.08627394295664316, 0.21675086743903882, 0.3924856854279553, 0.2685185442067156 ], "data": [], "index_in_doc": 441, "label": "section_header", "text": "Fourteen" }, { "bbox": [ 0.0874890712640911, 0.2765151515151515, 0.39370082068840995, 0.2878787878787879 ], "data": [], "index_in_doc": 442, "label": "section_header", "text": "QuarteRly Financial data (Unaudited)" }, { "bbox": [ 0.08688151058687048, 0.29082489013671875, 0.7160320870689985, 0.3068181818181818 ], "data": [], "index_in_doc": 443, "label": "text", "text": "Following is a summary of consolidated financial information on a quarterly basis for 1998 and 1997" }, { "bbox": [ 0.08688151058687048, 0.3106060606060606, 0.9434997564222698, 0.5624539153744476 ], "data": [ { "html_seq": "<table><tr><td></td><th colspan=\"4\">Quarter</th></tr><tr><td>(In thousands, except share amounts) per</td><th>First</th><th>Second</th><th>Third</th><th>Fourth</th></tr><tr><td>1998</td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues</td><td>5 II, 696</td><td>$ I5,160</td><td>5 I5,8II</td><td>5 18,349</td></tr><tr><td>Net income</td><td>5 4,635</td><td>$ 4,724</td><td>5 5,17</td><td>$ 4,927</td></tr><tr><td>Net income per share:</td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>s 0.41</td><td>$ 0.40</td><td>$ 0.41</td><td>5 0.39</td></tr><tr><td>Diluted</td><td>5 0.40</td><td>5 0.39</td><td>5 0.40</td><td>5 0.39</td></tr><tr><td>1997</td><td></td><td></td><td></td><td></td></tr><tr><td>Revenues</td><td>5 7,161</td><td>$ 7,743</td><td>5 9,677</td><td>5 10,265</td></tr><tr><td>Net (loss) income</td><td>5 (143)</td><td>5 (10,989)</td><td>$ 4,126</td><td>5 4.209</td></tr><tr><td>Net (loss) income per pro forma share</td><td></td><td></td><td></td><td></td></tr><tr><td>(restated for the first and second quarters):</td><td></td><td></td><td></td><td></td></tr><tr><td>Basic</td><td>5 (0.04)</td><td>5 (1.80)</td><td>5 0.36</td><td>5 0.37</td></tr><tr><td>Diluted</td><td>5 (0.04)|</td><td>5 (1.80)</td><td>5 0.36</td><td>5 0.36</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 444, "label": "table", "text": "" }, { "bbox": [ 0.08688151058687048, 0.5782828282828283, 0.3244386392710045, 0.6296296167855311 ], "data": [], "index_in_doc": 445, "label": "section_header", "text": "Fifteen" }, { "bbox": [ 0.08823982911400784, 0.641985459761186, 0.2369495680069134, 0.6523568895128038 ], "data": [], "index_in_doc": 446, "label": "section_header", "text": "SUBSEQUEnT EVnT" }, { "bbox": [ 0.08627394295664316, 0.6553030303030303, 0.9208827381541069, 0.7065923478868272 ], "data": [], "index_in_doc": 447, "label": "text", "text": "On February 23, 1999, we completed a follow-on offering of 1,150,000 shares of common stock (including the shares issued upon exercise of the underwriters' over-allotment option) . The shares were issued at a of S28.125 per share resulting in aggregate proceeds, net of underwriters' discount and commissions, advisory fees and offering costs , of approximately 6 million. price 529-4" }, { "bbox": [ 0.08931176024875967, 0.7710437774658203, 0.4848352699218382, 0.7811447875668304 ], "data": [], "index_in_doc": 448, "label": "section_header", "text": "PRivate SecuRities Litigation Reform AcT Of 1995" }, { "bbox": [ 0.08809663194131173, 0.783670040092083, 0.9257501209545043, 0.9200336716391824 ], "data": [], "index_in_doc": 449, "label": "text", "text": "Certain statements made in this Annual Report constitute \"forward-looking statements\" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other facts that may cause our actual results, performance or achievements , or industry results; to be materially different from any future results , performance or achievements expressed or implied by such forward-looking statements. Given these uncertainties , prospective and current investors are cautioned not to place undue reliance on such forward-looking statements. We disclaim any obligation to any such factors or to publicly announce the result of any revisions to any of the forward-looking statements contained in this or any other document. Readers of this Annual Report should also read our other publicly filed documents for further discussion . update" }, { "bbox": [ 0.49637898536609026, 0.9591750857805965, 0.5218966311514501, 0.9768518510490957 ], "data": [], "index_in_doc": 450, "label": "page_footer", "text": "49" } ]
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[ report 0F indepenDenT Auditors ] ALEXANDRIA REAL ESTATE EQUITIES. InC. To the Board of Directors and Stockholders of Alexandria Real Estate Equities, Inc. We have audited the accompanying consolidated balance sheets of Alexandria Real Estate Equities, Inc. and subsidiaries (the "Company") as of December 31, and 1997, and the related consolidated statements of operations, stockholders' equity; and cash flows for the years ended December 31, 1998, 1997 and 1996. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. 1998, We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management; as well as evaluating the overall financial statement presentation We believe that our audits provide a reasonable basis for our opinion. free In our opinion, the consolidated financial statements referred to above present fairly in all material respects, the consolidated cial position of the Company as of December 31, and 1997, and the consolidated results of its operations and its cash flows for the years ended December 31, 1998,1997 and 1996, in conformity with generally accepted accounting principles finan1998 Los Angeles, California January 23, 1999, except Note I5, as to which the date is February 23, 1999 for 50
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Boand Of Directors [ DiRECTORs And OfficeRrs ] ALEXANDRIA REAL [SIATE EQUITIES INC AND SUBSIDIARIES officers Jerry M. Sudarsky Chairman of the Board of Directors Alexandria Real Estate Equities, Inc. Joel $ Marcus Chief Executive Oficer Alexandria Real Estate Equities, Inc. Joseph Elmaleh Chemical Engineer and International Financier Richard B. Jennings President , Administration , Treasurer and Secretary Realty Capital International, Inc. Lynn A. Shapiro General Counsel Steven A. Stone Jerry M. Sudarsky Chairman ofthe Board Joel S. Marcus Chief Executive Officer James H. Richardson President Peter ) . Nelson Chief Financial Officer, Senior Vice President Viren Mehta President, Mehta Partners David M. Petrone Corporate Vice President Chairmnan of the Board, Housing Capital Corporation Anthony M. Solomon Chairman, The Blackstone Alternate Asset Management Advisory Board Alan G. Walton General Partner, Oxford Bioscience Partners Vincent R Ciruzzi Vice President Construction and Development S1
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Common Stock Auditors Listed on The New York Stock Exchange Symbol ARE CORpoRaTE Office AnnUAL MeETing 135 North Los Robles Avenue Suite 250 Pasadena, CA 9LIO1 (626) 578-0777 TranSfer AgenT American Stock Transfer and Trust Company 40 Wall Street without charge; upon written request to: New York; NY Iooo5 (212) 936-5100 LEGAL COUNSEL Skadden, Slate; Meagher & Flom LLP Arps; Pasadena, CA 9IIOI Los Angeles , California Common Stock Data The common stock of Alexandria Real Estate Equities, Inc. began on the New York Stock Exchange ("NYSE") on 28, 1997 under the symbol "ARE' As of December 31, there were approximately 128 holders of record of the Company'$ common stock (excluding beneficial owners whose shares are held in the name of CEDE & Co.). The following table sets forth the quarterly high and low sales prices per share of common stock reported on the NYSE and the distributions by the Company for the year ended December 31, trading May 1998 , paid 1998. Period Investor Relations Alexandria Real Estate Equities; Inc. 135 North Los Robles Avenue Suite 250 The Annual Meeting of Shareholders will be held at I2:oopm, April 15, 1999 at the Hilton Hotel, Pasadena , California SEC Form 10-K A copy of the Company's annual report to the Securities and Exchange Commission on Form Io-K is available Ernst & Young LLP Los Angeles, California [ corpORATE [nformation ] ALEXANDRIA REAL ESTATE EQUITIES INC. And SUBSIDIARIES 1 9 1 1 p 1 1 1 1 }
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The following table sets forth the" }, { "bbox": [ 0.07473024837141115, 0.6452020202020202, 0.7588461806170124, 0.6611952861952861 ], "ocr": false, "ocr_confidence": 1, "text": "quarterly high and low sales prices per share of common stock reported on the NYSE and the distributions" }, { "bbox": [ 0.7898318933563779, 0.6460437710437711, 0.8979781064467128, 0.6599326599326599 ], "ocr": false, "ocr_confidence": 1, "text": "by the Company" }, { "bbox": [ 0.07533781136630067, 0.6641414141414141, 0.28312435561851707, 0.6767676767676768 ], "ocr": false, "ocr_confidence": 1, "text": "for the year ended December 31," }, { "bbox": [ 0.9447604570532061, 0.6527777777777778, 0.9569117169509964, 0.694023569023569 ], "ocr": false, "ocr_confidence": 1, "text": "1" }, { "bbox": [ 0.07594537436119018, 0.7007575757575758, 0.13184116989102618, 0.7091750841750841 ], "ocr": false, "ocr_confidence": 1, "text": "Period" }, { "bbox": [ 0.8238554210701912, 0.7104377104377104, 0.8833965945693644, 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0.7120638300105193, 0.7390572390572391, 0.7497327356936696, 0.7508417508417508 ], "ocr": false, "ocr_confidence": 1, "text": "30 7/8" }, { "bbox": [ 0.8335764289884235, 0.7382154882154882, 0.877320964620469, 0.7508417508417508 ], "ocr": false, "ocr_confidence": 1, "text": "So.40" }, { "bbox": [ 0.07533781136630067, 0.7550505050505051, 0.2339117530324658, 0.7706228956228957 ], "ocr": false, "ocr_confidence": 1, "text": "April 1, 1998 to June 30," }, { "bbox": [ 0.6215369437719805, 0.7567340067340068, 0.6592058494551309, 0.7689393939393939 ], "ocr": false, "ocr_confidence": 1, "text": "34 %" }, { "bbox": [ 0.7120638300105193, 0.7550505050505051, 0.7497327356936696, 0.7668350168350169 ], "ocr": false, "ocr_confidence": 1, "text": "28 1/2" }, { "bbox": [ 0.8335764289884235, 0.7546296296296295, 0.8767134016255795, 0.7685185185185185 ], "ocr": false, "ocr_confidence": 1, "text": "5o.40" }, { "bbox": [ 0.945975583042985, 0.7403198653198654, 0.9569117169509964, 0.7647306397306397 ], "ocr": 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Copyaiovy [(1988 Allxandria Kral [syAT[ [quitils, inC All hiohts Reserved
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2016 Annual Review
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CENTENE CORPORATION TABLE OF CONTENTS Centene Corporation, a Fortune 500 company, is a diversified, multi-national healthcare enterprise that provides a portfolio of services to government-sponsored healthcare programs, focusing on under-insured and uninsured individuals. Centene operates local health plans and offers a range of health insurance solutions and specialty services. - 1 2016 At A Glance - 2 Letter from the Chairman - 6 Company & Financial Summary - 8 2016 Highlights - 10 Finding New Ways - 14 To Help More People - 18 Quarterly Financial Information - 19 Selected Financial Information - 20 Corporate Information For decades, Centene's unwavering purpose has propelled our efforts to transform the health of our community, one person at a time. Our foundational beliefs and the dedicated, entrepreneurial spirit of our employees have helped us achieve much success, but our work is far from over. We will never stop seeking to find new ways to help more individuals and families.
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CENTENE CORPORATION Centene Corporation, a Fortune 500 company, is a diversified, multi-national healthcare enterprise that provides a portfolio of services to government-sponsored healthcare programs, focusing on under-insured and uninsured individuals. Centene operates local health plans and offers a range of health insurance solutions and specialty services. TABLE OF CONTENTS 1 2016 At A Glance 2 Letter from the Chairman 6 8 10 Company & Financial Summary 2016 Highlights Finding New Ways 14 To Help More People 18 19 Quarterly Financial Information Selected Financial Information 20 Corporate Information For decades, Centene's unwavering purpose has propelled our efforts to transform the health of our community, one person at a time. Our foundational beliefs and the dedicated, entrepreneurial spirit of our employees have helped us achieve much success, but our work is far from over. We will never stop seeking to find new ways to help more individuals and families.
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Centene operates local health" }, { "bbox": [ 0.04863153407776278, 0.922881685122095, 0.4676449844260621, 0.936849488152398 ], "data": [], "index_in_doc": 30, "label": "text", "text": "plans and offers a range of health insurance solutions" }, { "bbox": [ 0.04787581574683096, 0.9438255001800229, 0.2222630619223601, 0.9576354749274977 ], "data": [], "index_in_doc": 31, "label": "text", "text": "and specialty services." }, { "bbox": [ 0.5319117627112694, 0.7945377465450403, 0.6643530153760723, 0.8015036534781408 ], "data": [], "index_in_doc": 32, "label": "text", "text": "TABLE OF CONTENTS" }, { "bbox": [ 0.5319975310680913, 0.822634321270567, 0.535986956428079, 0.8296993525341304 ], "data": [], "index_in_doc": 33, "label": "text", "text": "1" }, { "bbox": [ 0.5566633635876226, 0.8216867350568675, 0.6567549362681271, 0.829831306380455 ], "data": [], "index_in_doc": 34, "label": "text", "text": "2016 At A Glance" }, { "bbox": [ 0.5322769763422948, 0.8380838259302005, 0.5387810601128472, 0.84529278495095 ], "data": [], "index_in_doc": 35, "label": "text", "text": "2" }, { "bbox": [ 0.5575947481043199, 0.8371961959684738, 0.7074696160609426, 0.8454247291642006 ], "data": [], "index_in_doc": 36, "label": "text", "text": "Letter from the Chairman" }, { "bbox": [ 0.5324787813074449, 0.8536772487139461, 0.5393554089116115, 0.8610181615810202 ], "data": [], "index_in_doc": 37, "label": "text", "text": "6" }, { "bbox": [ 0.5324011409983915, 0.8692706907638396, 0.539231194390191, 0.8766116036309136 ], "data": [], "index_in_doc": 38, "label": "text", "text": "8" }, { "bbox": [ 0.5319975310680913, 0.8848641135475852, 0.5455956053889655, 0.8922050264146593 ], "data": [], "index_in_doc": 39, "label": "text", "text": "10" }, { "bbox": [ 0.5569738250931883, 0.8528735902574327, 0.7420685712028953, 0.8633691710655136 ], "data": [], "index_in_doc": 40, "label": "text", "text": "Company & Financial Summary" }, { "bbox": [ 0.5566633635876226, 0.8684670323073261, 0.6476119297002655, 0.878998602279509 ], "data": [], "index_in_doc": 41, "label": "text", "text": "2016 Highlights" }, { "bbox": [ 0.5575947481043199, 0.8840604550910719, 0.6654166427313113, 0.8945920250632546 ], "data": [], "index_in_doc": 42, "label": "text", "text": "Finding New Ways" }, { "bbox": [ 0.5319975310680913, 0.8996538971409653, 0.679231980267693, 0.9100895024309255 ], "data": [], "index_in_doc": 43, "label": "text", "text": "14 To Help More People" }, { "bbox": [ 0.5319975310680913, 0.9160509880142983, 0.5447263032003166, 0.9233919008813724 ], "data": [], "index_in_doc": 44, "label": "text", "text": "18" }, { "bbox": [ 0.5319975310680913, 0.9316444348807287, 0.5448039435093699, 0.9389853429312658 ], "data": [], "index_in_doc": 45, "label": "text", "text": "19" }, { "bbox": [ 0.5567410038966759, 0.9151633676856455, 0.7425963457892922, 0.9389853429312658 ], "data": [], "index_in_doc": 46, "label": "text", "text": "Quarterly Financial Information Selected Financial Information" }, { "bbox": [ 0.5322769763422948, 0.9463502421523585, 0.6901445575788909, 0.9568698093144581 ], "data": [], "index_in_doc": 47, "label": "text", "text": "20 Corporate Information" }, { "bbox": [ 1.2684091804853452, 0.38906031907206834, 1.7395988913143383, 0.40697949342053347 ], "data": [], "index_in_doc": 48, "label": "text", "text": "For decades, Centene's unwavering purpose" }, { "bbox": [ 1.2098471448312398, 0.4168785172279435, 1.7978998321333741, 0.4345956667505129 ], "data": [], "index_in_doc": 49, "label": "text", "text": "has propelled our efforts to transform the health of our" }, { "bbox": [ 1.2296641231362337, 0.4446562950057213, 1.7772749358532476, 0.46247447620738635 ], "data": [], "index_in_doc": 50, "label": "text", "text": "community, one person at a time. Our foundational" }, { "bbox": [ 1.2123047074461295, 0.472434072783499, 1.7954424689797794, 0.4901512223060685 ], "data": [], "index_in_doc": 51, "label": "text", "text": "beliefs and the dedicated, entrepreneurial spirit of our" }, { "bbox": [ 1.2157294578801572, 0.5003532640861742, 1.7912067089205475, 0.5180300317629419 ], "data": [], "index_in_doc": 52, "label": "text", "text": "employees have helped us achieve much success, but" }, { "bbox": [ 1.2103176740259907, 0.5279896283390546, 1.7966160992391749, 0.5458683823094224 ], "data": [], "index_in_doc": 53, "label": "text", "text": "our work is far from over. We will never stop seeking to" }, { "bbox": [ 1.2235203163296569, 0.5557674061168324, 1.7747623219209558, 0.5735855873184975 ], "data": [], "index_in_doc": 54, "label": "text", "text": "find new ways to help more individuals and families." } ]
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30,500 EMPLOYEES $40.6 BILLION in total revenues $4.43 adjusted diluted earnings per share (from continuing operations) 2016 A YEAR IN REVIEW $3.41 diluted earnings per share (from continuing operations) 11.4 MILLION members (includes 2.8 million TRICARE eligibles) $1.9 BILLION in total operating cash flow
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The Year 2016 was a transformational year strategically and very successful financially. The successful closing of the Health Net acquisition on March 24, and the full integration of the companies' culture, management and business systems helped to achieve record growth in sales and profits, moving us into the large cap territory of companies. It also gave Centene important critical mass. Strong financial results, as well as investments in people, capabilities and technology have led us to consistently deliver strong performance with an industry-leading growth rate. Our subsidiaries and suite of products continue to generate great opportunities. We have added and expanded contracts in existing markets, grown geographically, acquired new business, and added new capabilities and offerings. At the conclusion of 2016, Centene was the largest Medicaid managed care organization in the country, and a leader in three of the largest Medicaid states: California, Florida and Texas. We were also the largest provider of managed Long-Term Services and Supports, which is one of the fastest growing segments in the managed care market. Our support for both the TRICARE and Veterans Choice programs has positioned Centene as one of the nation's largest providers of managed care services for military families and veterans. 2 CENTENE CORPORATION Letter From The Chairman Letter From The Chairman CENTENE CORPORATION 3 We ended 2016 as a $40.6 billion, multi-national enterprise, reporting 78 percent growth in total revenues, 18 percent growth in diluted earnings per share and 41 percent growth in adjusted diluted earnings per share, year over year. Our membership grew 124 percent to more than 11.4 million beneficiaries across 24 states in the U.S. We were ranked number 124 on the Fortune 500 list of largest U.S. corporations by revenue, advancing our position by 62 spots over the previous year. And, were listed at number 470 on the Fortune Global 500 list. Additionally, we moved into the S&P 500 index, which was a milestone for Centene. The ranking widened our investor base and helped increase the liquidity of our stock. Another important metric, total shareholder return, was adversely effected by concerns about what impact the election outcome would have on our government sponsored healthcare programs. Subsequently, we were able to reassure investors that the company has a record of adapting, as necessary, to changing government service programs. 124 on the Fortune 500 list 470 on the Fortune Global 500 list S&P 500 included in the index A TRANSFORMATIONAL YEAR Centene successfully secured 11 contracts in 2016, and our pipeline remains robust with growth prospects. The year 2016 marked continued growth and profitability on the health insurance marketplace exchanges. We ended the year with 537,200 marketplace members, compared to the previous year total of 146,100, an increase of 268 percent. Importantly, we were a net contributor to the risk adjustment pool based on performance in all of our markets. With the addition of Health Net, our portfolio now includes a four-star Medicare Advantage product designed to serve low- income seniors. This represents a significant growth opportunity as more than 10,000 people become Medicare-eligible each day. In 2017, we plan on expanding our Medicare Advantage footprint into four Centene Medicaid states. The objective is to gain in- market experience before expanding further. This is in line with the approach we took with the health insurance marketplace. Centene also has a growing and profitable international presence as we partner with governments outside of the U.S. to help address the healthcare challenges they face. Ribera Salud in Spain and The Practice Group in the United Kingdom serve approximately 900,000 beneficiaries. Our strategic investments in these companies have added to the expertise and diversification of our overall portfolio.
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NEIDORFF" }, { "bbox": [ 0.2072794172498915, 0.3047513865461253, 0.4713058970332925, 0.31480823863636365 ], "ocr": false, "ocr_confidence": 1, "text": "Chairman, President & Chief Executive Officer" }, { "bbox": [ 0.20679738163168915, 0.35212784584122475, 0.7328103258718852, 0.3744006301417495 ], "ocr": false, "ocr_confidence": 1, "text": "The Year 2016 was a transformational year " }, { "bbox": [ 0.20745097889619715, 0.3799056621512981, 0.7501958709916258, 0.40225416241270123 ], "ocr": false, "ocr_confidence": 1, "text": "strategically and very successful financially. " }, { "bbox": [ 0.20679738163168915, 0.4076834399290759, 0.7067317588656556, 0.430031940190479 ], "ocr": false, "ocr_confidence": 1, "text": "The successful closing of the Health Net " }, { "bbox": [ 0.20777778376161662, 0.4354612177068537, 0.8027123843922335, 0.4578097179682568 ], "ocr": false, "ocr_confidence": 1, "text": "acquisition on March 24, and the full integration " }, { "bbox": [ 0.2079411799611609, 0.46318847964508364, 0.7606502358430351, 0.48558749574603455 ], "ocr": false, "ocr_confidence": 1, "text": "of the companies’ culture, management and " }, { "bbox": [ 0.20892156962475744, 0.4911935209023832, 0.7416991190193525, 0.5132895190306385 ], "ocr": false, "ocr_confidence": 1, "text": "business systems helped to achieve record " }, { "bbox": [ 0.20679738163168915, 0.518794551040187, 0.7815389196857129, 0.5411430513015901 ], "ocr": false, "ocr_confidence": 1, "text": "growth in sales and profits, moving us into the " }, { "bbox": [ 0.2087581734252132, 0.5465723288179648, 0.7628134933172488, 0.5689208290793679 ], "ocr": false, "ocr_confidence": 1, "text": "large cap territory of companies. It also gave " }, { "bbox": [ 0.2079411799611609, 0.5745268542357166, 0.6192482343686172, 0.59649658203125 ], "ocr": false, "ocr_confidence": 1, "text": "Centene important critical mass. " }, { "bbox": [ 0.20696079029756434, 0.6245395005351365, 0.7763269960490706, 0.635713750665838 ], "ocr": false, "ocr_confidence": 1, "text": "Strong financial results, as well as investments in people, capabilities and technology " }, { "bbox": [ 0.20769607942867901, 0.640953641949278, 0.7862908855762357, 0.6521278920799795 ], "ocr": false, "ocr_confidence": 1, "text": "have led us to consistently deliver strong performance with an industry-leading growth " }, { "bbox": [ 0.20769607942867901, 0.6573677833634194, 0.7767844605290033, 0.6685420334941209 ], "ocr": false, "ocr_confidence": 1, "text": "rate. Our subsidiaries and suite of products continue to generate great opportunities. " }, { "bbox": [ 0.20663398543214487, 0.6738703178636956, 0.7535932952282476, 0.6849561749082623 ], "ocr": false, "ocr_confidence": 1, "text": "We have added and expanded contracts in existing markets, grown geographically, " }, { "bbox": [ 0.20712418649710862, 0.6901960661917022, 0.6419120240055658, 0.7013703163224038 ], "ocr": false, "ocr_confidence": 1, "text": "acquired new business, and added new capabilities and offerings. " }, { "bbox": [ 0.20663398543214487, 0.7192364702321062, 0.7867322934219261, 0.7304107203628077 ], "ocr": false, "ocr_confidence": 1, "text": "At the conclusion of 2016, Centene was the largest Medicaid managed care organization " }, { "bbox": [ 0.20743463553634345, 0.7356506116462477, 0.7707992254518995, 0.7468248617769492 ], "ocr": false, "ocr_confidence": 1, "text": "in the country, and a leader in three of the largest Medicaid states: California, Florida " }, { "bbox": [ 0.20712418649710862, 0.752064753060389, 0.7432373645258885, 0.7632390031910906 ], "ocr": false, "ocr_confidence": 1, "text": "and Texas. We were also the largest provider of managed Long-Term Services and " }, { "bbox": [ 0.20696079029756434, 0.7684788944745304, 0.7652452256944444, 0.779653144605232 ], "ocr": false, "ocr_confidence": 1, "text": "Supports, which is one of the fastest growing segments in the managed care market. " }, { "bbox": [ 0.2072058783637153, 0.7848930358886719, 0.7954248166551777, 0.7960672860193734 ], "ocr": false, "ocr_confidence": 1, "text": "Our support for both the TRICARE and Veterans Choice programs has positioned Centene " }, { "bbox": [ 0.20712418649710862, 0.8012819386491872, 0.7667175492430045, 0.8124814466996626 ], "ocr": false, "ocr_confidence": 1, "text": "as one of the nation’s largest providers of managed care services for military families " }, { "bbox": [ 0.20712418649710862, 0.8178097118030895, 0.2954085106943168, 0.8263829549153646 ], "ocr": false, "ocr_confidence": 1, "text": "and veterans." }, { "bbox": [ 1.5095751394633374, 0.35547969317195394, 1.7114377489276962, 0.3632195597947246 ], "ocr": false, "ocr_confidence": 1, "text": "A TRANSFORMATIONAL YEAR" }, { "bbox": [ 1.5101470947265625, 0.37349735606800427, 1.9354722764756944, 0.38463372895211884 ], "ocr": false, "ocr_confidence": 1, "text": "Centene successfully secured 11 contracts in 2016, and our pipeline " }, { "bbox": [ 1.5106372708588645, 0.38999989056828044, 1.9093564102073122, 0.4010857476128472 ], "ocr": false, "ocr_confidence": 1, "text": "remains robust with growth prospects. The year 2016 marked " }, { "bbox": [ 1.5101470947265625, 0.4063256388962871, 1.8907793830422794, 0.41749988902698865 ], "ocr": false, "ocr_confidence": 1, "text": "continued growth and profitability on the health insurance " }, { "bbox": [ 1.5106372708588645, 0.4228281733965633, 1.8765783372268179, 0.43391403044113 ], "ocr": false, "ocr_confidence": 1, "text": "marketplace exchanges. We ended the year with 537,200" }, { "bbox": [ 1.5106372708588645, 0.4391539217245699, 1.9160573124106413, 0.4502902946086845 ], "ocr": false, "ocr_confidence": 1, "text": "marketplace members, compared to the previous year total of " }, { "bbox": [ 1.5096569185942605, 0.45556806313871134, 1.9215474845537173, 0.4667044360228259 ], "ocr": false, "ocr_confidence": 1, "text": "146,100, an increase of 268 percent. Importantly, we were a net " }, { "bbox": [ 1.5101470947265625, 0.4719822045528527, 1.90683003344567, 0.4831059388440065 ], "ocr": false, "ocr_confidence": 1, "text": "contributor to the risk adjustment pool based on performance " }, { "bbox": [ 1.5103758768318525, 0.48839634596699416, 1.6437238306781046, 0.4970579436331084 ], "ocr": false, "ocr_confidence": 1, "text": "in all of our markets. " }, { "bbox": [ 1.5095751394633374, 0.5174367500073982, 1.9062533908420138, 0.5285099684590041 ], "ocr": false, "ocr_confidence": 1, "text": "With the addition of Health Net, our portfolio now includes a " }, { "bbox": [ 1.5096569185942605, 0.5338508914215396, 1.9060230130463645, 0.5450251415522411 ], "ocr": false, "ocr_confidence": 1, "text": "four-star Medicare Advantage product designed to serve low\u0002" }, { "bbox": [ 1.5103758768318525, 0.5502650713679766, 1.9286716436248978, 0.5614393214986781 ], "ocr": false, "ocr_confidence": 1, "text": "income seniors. This represents a significant growth opportunity " }, { "bbox": [ 1.5100654153262867, 0.5667676058682528, 1.9333791296466503, 0.5778534629128196 ], "ocr": false, "ocr_confidence": 1, "text": "as more than 10,000 people become Medicare-eligible each day. " }, { "bbox": [ 1.5108006296594159, 0.5830933156639638, 1.928607816010519, 0.5942675657946654 ], "ocr": false, "ocr_confidence": 1, "text": "In 2017, we plan on expanding our Medicare Advantage footprint " }, { "bbox": [ 1.5103758768318525, 0.5995074570781053, 1.9044887567657272, 0.6106817072088068 ], "ocr": false, "ocr_confidence": 1, "text": "into four Centene Medicaid states. The objective is to gain in\u0002" }, { "bbox": [ 1.5106372708588645, 0.6159215599599511, 1.9197010713465072, 0.6270958100906526 ], "ocr": false, "ocr_confidence": 1, "text": "market experience before expanding further. This is in line with " }, { "bbox": [ 1.5095751394633374, 0.6324240944602273, 1.9117599188112746, 0.6434089198256984 ], "ocr": false, "ocr_confidence": 1, "text": "the approach we took with the health insurance marketplace. " }, { "bbox": [ 1.5101470947265625, 0.6613761054144965, 1.9349445018892975, 0.672550355545198 ], "ocr": false, "ocr_confidence": 1, "text": "Centene also has a growing and profitable international presence " }, { "bbox": [ 1.5100654153262867, 0.677790246828638, 1.9439968532986112, 0.6889644969593395 ], "ocr": false, "ocr_confidence": 1, "text": "as we partner with governments outside of the U.S. to help address " }, { "bbox": [ 1.5095751394633374, 0.6942043882427793, 1.9108284345639297, 0.7053786383734809 ], "ocr": false, "ocr_confidence": 1, "text": "the healthcare challenges they face. Ribera Salud in Spain and " }, { "bbox": [ 1.5095751394633374, 0.7107068842107599, 1.9142745273565156, 0.7217927412553267 ], "ocr": false, "ocr_confidence": 1, "text": "The Practice Group in the United Kingdom serve approximately " }, { "bbox": [ 1.5098202773948122, 0.7270326325387666, 1.8848332423789829, 0.7382068826694681 ], "ocr": false, "ocr_confidence": 1, "text": "900,000 beneficiaries. Our strategic investments in these " }, { "bbox": [ 1.5101470947265625, 0.743446773952908, 1.9039167017718546, 0.7545200116706617 ], "ocr": false, "ocr_confidence": 1, "text": "companies have added to the expertise and diversification of " }, { "bbox": [ 1.5101470947265625, 0.7598609153670494, 1.6417630264182497, 0.7709341530848031 ], "ocr": false, "ocr_confidence": 1, "text": "our overall portfolio. " }, { "bbox": [ 1.0474019767412173, 0.7112346032653192, 1.0791306838490604, 0.7218583424886068 ], "ocr": false, "ocr_confidence": 1, "text": "124" }, { "bbox": [ 1.0477941176470589, 0.7323633829752604, 1.1414035971647774, 0.7409366260875355 ], "ocr": false, "ocr_confidence": 1, "text": "on the Fortune " }, { "bbox": [ 1.047303941514757, 0.7462522718641493, 1.0963398054534315, 0.7564290557244812 ], "ocr": false, "ocr_confidence": 1, "text": "500 list" }, { "bbox": [ 1.3545752631293402, 0.7112169362077809, 1.4332680297053717, 0.7221058161571773 ], "ocr": false, "ocr_confidence": 1, "text": "S&P 500" }, { "bbox": [ 1.355081795087827, 0.7323633829752604, 1.4249347362642975, 0.7409366260875355 ], "ocr": false, "ocr_confidence": 1, "text": "included in " }, { "bbox": [ 1.3542810577193116, 0.7462522718641493, 1.4135768117468341, 0.7548255149764244 ], "ocr": false, "ocr_confidence": 1, "text": "the index" }, { "bbox": [ 1.200457604102839, 0.7112346032653192, 1.236052369759753, 0.7220527957184146 ], "ocr": false, "ocr_confidence": 1, "text": "470" }, { "bbox": [ 1.2007353539560355, 0.7323633829752604, 1.2943448334737542, 0.7409366260875355 ], "ocr": false, "ocr_confidence": 1, "text": "on the Fortune " }, { "bbox": [ 1.2007353539560355, 0.7462522718641493, 1.295343137254902, 0.7564290557244812 ], "ocr": false, "ocr_confidence": 1, "text": "Global 500 list" } ]
[ { "bbox": [ 0.1995213577170777, 0.1369289822048611, 0.4717673507391238, 0.31515734123461175 ], "data": [], "index_in_doc": 70, "label": "picture", "text": "" }, { "bbox": [ 0.20514151629279642, 0.35189865574692236, 0.8027123843922335, 0.5973422117907592 ], "data": [], "index_in_doc": 71, "label": "text", "text": "The Year 2016 was a transformational year strategically and very successful financially. The successful closing of the Health Net acquisition on March 24, and the full integration of the companies' culture, management and business systems helped to achieve record growth in sales and profits, moving us into the large cap territory of companies. It also gave Centene important critical mass." }, { "bbox": [ 0.20491979013081468, 0.6239715730301058, 0.7862908855762357, 0.7015016343858507 ], "data": [], "index_in_doc": 72, "label": "text", "text": "Strong financial results, as well as investments in people, capabilities and technology have led us to consistently deliver strong performance with an industry-leading growth rate. Our subsidiaries and suite of products continue to generate great opportunities. We have added and expanded contracts in existing markets, grown geographically, acquired new business, and added new capabilities and offerings." }, { "bbox": [ 0.2043966654858558, 0.7188887162642046, 0.7958315182355494, 0.826776061395202 ], "data": [], "index_in_doc": 73, "label": "text", "text": "At the conclusion of 2016, Centene was the largest Medicaid managed care organization in the country, and a leader in three of the largest Medicaid states: California, Florida and Texas. We were also the largest provider of managed Long-Term Services and Supports, which is one of the fastest growing segments in the managed care market. Our support for both the TRICARE and Veterans Choice programs has positioned Centene as one of the nation's largest providers of managed care services for military families and veterans." }, { "bbox": [ 0.05305455401052837, 0.9519940771237768, 0.3604097304001353, 0.9604511453647806 ], "data": [], "index_in_doc": 74, "label": "page_footer", "text": "2 CENTENE CORPORATION Letter From The Chairman" }, { "bbox": [ 1.6434231427759907, 0.9526551757195983, 1.9488535363689747, 0.9599638900371513 ], "data": [], "index_in_doc": 75, "label": "text", "text": "Letter From The Chairman CENTENE CORPORATION 3" }, { "bbox": [ 1.0472221623838338, 0.3542695864282473, 1.4486275467218137, 0.3652544117937184 ], "data": [], "index_in_doc": 76, "label": "text", "text": "We ended 2016 as a $40.6 billion, multi-national enterprise," }, { "bbox": [ 1.0482842937793606, 0.37068372784238873, 1.4780867832158906, 0.3817695848869555 ], "data": [], "index_in_doc": 77, "label": "text", "text": "reporting 78 percent growth in total revenues, 18 percent growth" }, { "bbox": [ 1.0480228997523489, 0.38709786925653017, 1.4696406944125306, 0.3981837263010969 ], "data": [], "index_in_doc": 78, "label": "text", "text": "in diluted earnings per share and 41 percent growth in adjusted" }, { "bbox": [ 1.0477941176470589, 0.40351201067067155, 1.4816996256510417, 0.4145978677152383 ], "data": [], "index_in_doc": 79, "label": "text", "text": "diluted earnings per share, year over year. Our membership grew" }, { "bbox": [ 1.047303941514757, 0.4198377589986782, 1.4426798103681577, 0.4309109774502841 ], "data": [], "index_in_doc": 80, "label": "text", "text": "124 percent to more than 11.4 million beneficiaries across 24" }, { "bbox": [ 1.0475489797155841, 0.43634029349895437, 1.1577450621361827, 0.4449134980789339 ], "data": [], "index_in_doc": 81, "label": "text", "text": "states in the U.S." }, { "bbox": [ 1.0472221623838338, 0.4652923044532236, 1.4781013438904207, 0.4764665545839252 ], "data": [], "index_in_doc": 82, "label": "text", "text": "We were ranked number 124 on the Fortune 500 list of largest U.S." }, { "bbox": [ 1.0477941176470589, 0.48179483895349984, 1.4735392651526757, 0.4928806959980666 ], "data": [], "index_in_doc": 83, "label": "text", "text": "corporations by revenue, advancing our position by 62 spots over" }, { "bbox": [ 1.0472221623838338, 0.4982089803676413, 1.4716324151731004, 0.509256960165621 ], "data": [], "index_in_doc": 84, "label": "text", "text": "the previous year. And, were listed at number 470 on the Fortune" }, { "bbox": [ 1.0477941176470589, 0.5146231217817827, 1.4591962028952206, 0.5256711015797625 ], "data": [], "index_in_doc": 85, "label": "text", "text": "Global 500 list. Additionally, we moved into the S&P 500 index," }, { "bbox": [ 1.0472221623838338, 0.5309489086420849, 1.4532356012880412, 0.5421231587727865 ], "data": [], "index_in_doc": 86, "label": "text", "text": "which was a milestone for Centene. The ranking widened our" }, { "bbox": [ 1.0480228997523489, 0.5473630500562263, 1.4482845730251737, 0.5584994229403409 ], "data": [], "index_in_doc": 87, "label": "text", "text": "investor base and helped increase the liquidity of our stock." }, { "bbox": [ 1.0472221623838338, 0.5638655460242069, 1.4798954982383579, 0.5749135258221867 ], "data": [], "index_in_doc": 88, "label": "text", "text": "Another important metric, total shareholder return, was adversely" }, { "bbox": [ 1.0477941176470589, 0.5801912943522135, 1.4625492469937194, 0.5913276672363281 ], "data": [], "index_in_doc": 89, "label": "text", "text": "effected by concerns about what impact the election outcome" }, { "bbox": [ 1.0472221623838338, 0.5966937903201941, 1.4758662803500306, 0.6077796473647609 ], "data": [], "index_in_doc": 90, "label": "text", "text": "would have on our government sponsored healthcare programs." }, { "bbox": [ 1.0475489797155841, 0.6131079317343355, 1.4327601015178206, 0.6241559115323153 ], "data": [], "index_in_doc": 91, "label": "text", "text": "Subsequently, we were able to reassure investors that the" }, { "bbox": [ 1.0477941176470589, 0.6294336800623421, 1.4549185559640523, 0.6406079301930437 ], "data": [], "index_in_doc": 92, "label": "text", "text": "company has a record of adapting, as necessary, to changing" }, { "bbox": [ 1.0472221623838338, 0.6459488146232836, 1.2477941575393179, 0.6570220716071852 ], "data": [], "index_in_doc": 93, "label": "text", "text": "government service programs." }, { "bbox": [ 1.0474019767412173, 0.7112346032653192, 1.0791306838490604, 0.7218583424886068 ], "data": [], "index_in_doc": 94, "label": "text", "text": "124" }, { "bbox": [ 1.0477941176470589, 0.7323633829752604, 1.1414035971647774, 0.7409366260875355 ], "data": [], "index_in_doc": 95, "label": "text", "text": "on the Fortune" }, { "bbox": [ 1.047303941514757, 0.7462522718641493, 1.0963398054534315, 0.7564290557244812 ], "data": [], "index_in_doc": 96, "label": "text", "text": "500 list" }, { "bbox": [ 1.200457604102839, 0.7112346032653192, 1.236052369759753, 0.7220527957184146 ], "data": [], "index_in_doc": 97, "label": "text", "text": "470" }, { "bbox": [ 1.2007353539560355, 0.7323633829752604, 1.2943448334737542, 0.7409366260875355 ], "data": [], "index_in_doc": 98, "label": "text", "text": "on the Fortune" }, { "bbox": [ 1.2007353539560355, 0.7462522718641493, 1.295343137254902, 0.7564290557244812 ], "data": [], "index_in_doc": 99, "label": "text", "text": "Global 500 list" }, { "bbox": [ 1.3545752631293402, 0.7112169362077809, 1.4332680297053717, 0.7221058161571773 ], "data": [], "index_in_doc": 100, "label": "text", "text": "S&P 500" }, { "bbox": [ 1.355081795087827, 0.7323633829752604, 1.4249347362642975, 0.7409366260875355 ], "data": [], "index_in_doc": 101, "label": "text", "text": "included in" }, { "bbox": [ 1.3542810577193116, 0.7462522718641493, 1.4135768117468341, 0.7548255149764244 ], "data": [], "index_in_doc": 102, "label": "text", "text": "the index" }, { "bbox": [ 1.5095751394633374, 0.35547969317195394, 1.7114377489276962, 0.3632195597947246 ], "data": [], "index_in_doc": 103, "label": "text", "text": "A TRANSFORMATIONAL YEAR" }, { "bbox": [ 1.5101470947265625, 0.37349735606800427, 1.9354722764756944, 0.38463372895211884 ], "data": [], "index_in_doc": 104, "label": "text", "text": "Centene successfully secured 11 contracts in 2016, and our pipeline" }, { "bbox": [ 1.5106372708588645, 0.38999989056828044, 1.9093564102073122, 0.4010857476128472 ], "data": [], "index_in_doc": 105, "label": "text", "text": "remains robust with growth prospects. The year 2016 marked" }, { "bbox": [ 1.5101470947265625, 0.4063256388962871, 1.8907793830422794, 0.41749988902698865 ], "data": [], "index_in_doc": 106, "label": "text", "text": "continued growth and profitability on the health insurance" }, { "bbox": [ 1.5106372708588645, 0.4228281733965633, 1.8765783372268179, 0.43391403044113 ], "data": [], "index_in_doc": 107, "label": "text", "text": "marketplace exchanges. We ended the year with 537,200" }, { "bbox": [ 1.5106372708588645, 0.4391539217245699, 1.9160573124106413, 0.4502902946086845 ], "data": [], "index_in_doc": 108, "label": "text", "text": "marketplace members, compared to the previous year total of" }, { "bbox": [ 1.5096569185942605, 0.45556806313871134, 1.9215474845537173, 0.4667044360228259 ], "data": [], "index_in_doc": 109, "label": "text", "text": "146,100, an increase of 268 percent. Importantly, we were a net" }, { "bbox": [ 1.5101470947265625, 0.4719822045528527, 1.90683003344567, 0.4831059388440065 ], "data": [], "index_in_doc": 110, "label": "text", "text": "contributor to the risk adjustment pool based on performance" }, { "bbox": [ 1.5103758768318525, 0.48839634596699416, 1.6437238306781046, 0.4970579436331084 ], "data": [], "index_in_doc": 111, "label": "text", "text": "in all of our markets." }, { "bbox": [ 1.5095751394633374, 0.5174367500073982, 1.9062533908420138, 0.5285099684590041 ], "data": [], "index_in_doc": 112, "label": "text", "text": "With the addition of Health Net, our portfolio now includes a" }, { "bbox": [ 1.5096569185942605, 0.5338508914215396, 1.9060230130463645, 0.5450251415522411 ], "data": [], "index_in_doc": 113, "label": "text", "text": "four-star Medicare Advantage product designed to serve low-" }, { "bbox": [ 1.5103758768318525, 0.5502650713679766, 1.9286716436248978, 0.5614393214986781 ], "data": [], "index_in_doc": 114, "label": "text", "text": "income seniors. This represents a significant growth opportunity" }, { "bbox": [ 1.5100654153262867, 0.5667676058682528, 1.9333791296466503, 0.5778534629128196 ], "data": [], "index_in_doc": 115, "label": "text", "text": "as more than 10,000 people become Medicare-eligible each day." }, { "bbox": [ 1.5108006296594159, 0.5830933156639638, 1.928607816010519, 0.5942675657946654 ], "data": [], "index_in_doc": 116, "label": "text", "text": "In 2017, we plan on expanding our Medicare Advantage footprint" }, { "bbox": [ 1.5103758768318525, 0.5995074570781053, 1.9044887567657272, 0.6106817072088068 ], "data": [], "index_in_doc": 117, "label": "text", "text": "into four Centene Medicaid states. The objective is to gain in-" }, { "bbox": [ 1.5106372708588645, 0.6159215599599511, 1.9197010713465072, 0.6270958100906526 ], "data": [], "index_in_doc": 118, "label": "text", "text": "market experience before expanding further. This is in line with" }, { "bbox": [ 1.5095751394633374, 0.6324240944602273, 1.9117599188112746, 0.6434089198256984 ], "data": [], "index_in_doc": 119, "label": "text", "text": "the approach we took with the health insurance marketplace." }, { "bbox": [ 1.5101470947265625, 0.6613761054144965, 1.9349445018892975, 0.672550355545198 ], "data": [], "index_in_doc": 120, "label": "text", "text": "Centene also has a growing and profitable international presence" }, { "bbox": [ 1.5100654153262867, 0.677790246828638, 1.9439968532986112, 0.6889644969593395 ], "data": [], "index_in_doc": 121, "label": "text", "text": "as we partner with governments outside of the U.S. to help address" }, { "bbox": [ 1.5095751394633374, 0.6942043882427793, 1.9108284345639297, 0.7053786383734809 ], "data": [], "index_in_doc": 122, "label": "text", "text": "the healthcare challenges they face. Ribera Salud in Spain and" }, { "bbox": [ 1.5095751394633374, 0.7107068842107599, 1.9142745273565156, 0.7217927412553267 ], "data": [], "index_in_doc": 123, "label": "text", "text": "The Practice Group in the United Kingdom serve approximately" }, { "bbox": [ 1.5098202773948122, 0.7270326325387666, 1.8848332423789829, 0.7382068826694681 ], "data": [], "index_in_doc": 124, "label": "text", "text": "900,000 beneficiaries. Our strategic investments in these" }, { "bbox": [ 1.5101470947265625, 0.743446773952908, 1.9039167017718546, 0.7545200116706617 ], "data": [], "index_in_doc": 125, "label": "text", "text": "companies have added to the expertise and diversification of" }, { "bbox": [ 1.5101470947265625, 0.7598609153670494, 1.6417630264182497, 0.7709341530848031 ], "data": [], "index_in_doc": 126, "label": "text", "text": "our overall portfolio." } ]
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MICHAEL F. NEIDORFF Chairman, President & Chief Executive Officer strategically and very successful financially. acquisition on March 24, and the full integration The Year 2016 was a transformational year The successful closing of the Health Net The successful closing of the Health Net of the companies' culture, management and growth in sales and profits, moving us into the Centene important critical mass. of the companies' culture, management and business systems helped to achieve record large cap territory of companies. It also gave Strong financial results, as well as investments in people, capabilities and technology have led us to consistently deliver strong performance with an industry-leading growth large cap territory of companies. It also gave Strong financial results, as well as investments in people, capabilities and technology rate. Our subsidiaries and suite of products continue to generate great opportunities. We have added and expanded contracts in existing markets, grown geographically, acquired new business, and added new capabilities and offerings. At the conclusion of 2016, Centene was the largest Medicaid managed care organization in the country, and a leader in three of the largest Medicaid states: California, Florida and Texas. We were also the largest provider of managed Long-Term Services and Supports, which is one of the fastest growing segments in the managed care market. Our support for both the TRICARE and Veterans Choice programs has positioned Centene as one of the nation's largest providers of managed care services for military families and veterans. 2 CENTENE CORPORATION Letter From The Chairman Letter From The Chairman CENTENE CORPORATION 3 We ended 2016 as a $40.6 billion, multi-national enterprise, reporting 78 percent growth in total revenues, 18 percent growth in diluted earnings per share and 41 percent growth in adjusted diluted earnings per share, year over year. Our membership grew 124 percent to more than 11.4 million beneficiaries across 24 states in the U.S. We were ranked number 124 on the Fortune 500 list of largest U.S. corporations by revenue, advancing our position by 62 spots over the previous year. And, were listed at number 470 on the Fortune Global 500 list. Additionally, we moved into the S&P 500 index, which was a milestone for Centene. The ranking widened our investor base and helped increase the liquidity of our stock. Another important metric, total shareholder return, was adversely effected by concerns about what impact the election outcome would have on our government sponsored healthcare programs. Subsequently, we were able to reassure investors that the company has a record of adapting, as necessary, to changing government service programs. 124 on the Fortune 500 list 470 on the Fortune Global 500 list S&P 500 included in the index A TRANSFORMATIONAL YEAR Centene successfully secured 11 contracts in 2016, and our pipeline remains robust with growth prospects. The year 2016 marked continued growth and profitability on the health insurance marketplace exchanges. We ended the year with 537,200 marketplace members, compared to the previous year total of 146,100, an increase of 268 percent. Importantly, we were a net contributor to the risk adjustment pool based on performance in all of our markets. With the addition of Health Net, our portfolio now includes a four-star Medicare Advantage product designed to serve low- income seniors. This represents a significant growth opportunity as more than 10,000 people become Medicare-eligible each day. In 2017, we plan on expanding our Medicare Advantage footprint into four Centene Medicaid states. The objective is to gain in- market experience before expanding further. This is in line with the approach we took with the health insurance marketplace. Centene also has a growing and profitable international presence as we partner with governments outside of the U.S. to help address the healthcare challenges they face. Ribera Salud in Spain and The Practice Group in the United Kingdom serve approximately 900,000 beneficiaries. Our strategic investments in these companies have added to the expertise and diversification of our overall portfolio.
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And, were listed at number 470 on the Fortune " }, { "bbox": [ 1.0477941176470589, 0.5146231217817827, 1.4591962028952206, 0.5256711015797625 ], "ocr": false, "ocr_confidence": 1, "text": "Global 500 list. Additionally, we moved into the S&P 500 index, " }, { "bbox": [ 1.0472221623838338, 0.5309489086420849, 1.4532356012880412, 0.5421231587727865 ], "ocr": false, "ocr_confidence": 1, "text": "which was a milestone for Centene. The ranking widened our " }, { "bbox": [ 1.0480228997523489, 0.5473630500562263, 1.4482845730251737, 0.5584994229403409 ], "ocr": false, "ocr_confidence": 1, "text": "investor base and helped increase the liquidity of our stock. " }, { "bbox": [ 1.0472221623838338, 0.5638655460242069, 1.4798954982383579, 0.5749135258221867 ], "ocr": false, "ocr_confidence": 1, "text": "Another important metric, total shareholder return, was adversely " }, { "bbox": [ 1.0477941176470589, 0.5801912943522135, 1.4625492469937194, 0.5913276672363281 ], "ocr": false, "ocr_confidence": 1, "text": "effected by concerns about what impact the election outcome " }, { "bbox": [ 1.0472221623838338, 0.5966937903201941, 1.4758662803500306, 0.6077796473647609 ], "ocr": false, "ocr_confidence": 1, "text": "would have on our government sponsored healthcare programs. " }, { "bbox": [ 1.0475489797155841, 0.6131079317343355, 1.4327601015178206, 0.6241559115323153 ], "ocr": false, "ocr_confidence": 1, "text": "Subsequently, we were able to reassure investors that the " }, { "bbox": [ 1.0477941176470589, 0.6294336800623421, 1.4549185559640523, 0.6406079301930437 ], "ocr": false, "ocr_confidence": 1, "text": "company has a record of adapting, as necessary, to changing " }, { "bbox": [ 1.0472221623838338, 0.6459488146232836, 1.2477941575393179, 0.6570220716071852 ], "ocr": false, "ocr_confidence": 1, "text": "government service programs." }, { "bbox": [ 0.054603757421954786, 0.9526551757195983, 0.3601022857466554, 0.9599638900371513 ], "ocr": false, "ocr_confidence": 1, "text": "2 CENTENE CORPORATION Letter From The Chairman " }, { "bbox": [ 1.6434231427759907, 0.9526551757195983, 1.9488535363689747, 0.9599638900371513 ], "ocr": false, "ocr_confidence": 1, "text": "Letter From The Chairman CENTENE CORPORATION 3" }, { "bbox": [ 0.20785457636016647, 0.2903573392617582, 0.3611176434685202, 0.2988573324800742 ], "ocr": false, "ocr_confidence": 1, "text": "MICHAEL F. NEIDORFF" }, { "bbox": [ 0.2072794172498915, 0.3047513865461253, 0.4713058970332925, 0.31480823863636365 ], "ocr": false, "ocr_confidence": 1, "text": "Chairman, President & Chief Executive Officer" }, { "bbox": [ 0.20679738163168915, 0.35212784584122475, 0.7328103258718852, 0.3744006301417495 ], "ocr": false, "ocr_confidence": 1, "text": "The Year 2016 was a transformational year " }, { "bbox": [ 0.20745097889619715, 0.3799056621512981, 0.7501958709916258, 0.40225416241270123 ], "ocr": false, "ocr_confidence": 1, "text": "strategically and very successful financially. " }, { "bbox": [ 0.20679738163168915, 0.4076834399290759, 0.7067317588656556, 0.430031940190479 ], "ocr": false, "ocr_confidence": 1, "text": "The successful closing of the Health Net " }, { "bbox": [ 0.20777778376161662, 0.4354612177068537, 0.8027123843922335, 0.4578097179682568 ], "ocr": false, "ocr_confidence": 1, "text": "acquisition on March 24, and the full integration " }, { "bbox": [ 0.2079411799611609, 0.46318847964508364, 0.7606502358430351, 0.48558749574603455 ], "ocr": false, "ocr_confidence": 1, "text": "of the companies’ culture, management and " }, { "bbox": [ 0.20892156962475744, 0.4911935209023832, 0.7416991190193525, 0.5132895190306385 ], "ocr": false, "ocr_confidence": 1, "text": "business systems helped to achieve record " }, { "bbox": [ 0.20679738163168915, 0.518794551040187, 0.7815389196857129, 0.5411430513015901 ], "ocr": false, "ocr_confidence": 1, "text": "growth in sales and profits, moving us into the " }, { "bbox": [ 0.2087581734252132, 0.5465723288179648, 0.7628134933172488, 0.5689208290793679 ], "ocr": false, "ocr_confidence": 1, "text": "large cap territory of companies. It also gave " }, { "bbox": [ 0.2079411799611609, 0.5745268542357166, 0.6192482343686172, 0.59649658203125 ], "ocr": false, "ocr_confidence": 1, "text": "Centene important critical mass. " }, { "bbox": [ 0.20696079029756434, 0.6245395005351365, 0.7763269960490706, 0.635713750665838 ], "ocr": false, "ocr_confidence": 1, "text": "Strong financial results, as well as investments in people, capabilities and technology " }, { "bbox": [ 0.20769607942867901, 0.640953641949278, 0.7862908855762357, 0.6521278920799795 ], "ocr": false, "ocr_confidence": 1, "text": "have led us to consistently deliver strong performance with an industry-leading growth " }, { "bbox": [ 0.20769607942867901, 0.6573677833634194, 0.7767844605290033, 0.6685420334941209 ], "ocr": false, "ocr_confidence": 1, "text": "rate. Our subsidiaries and suite of products continue to generate great opportunities. " }, { "bbox": [ 0.20663398543214487, 0.6738703178636956, 0.7535932952282476, 0.6849561749082623 ], "ocr": false, "ocr_confidence": 1, "text": "We have added and expanded contracts in existing markets, grown geographically, " }, { "bbox": [ 0.20712418649710862, 0.6901960661917022, 0.6419120240055658, 0.7013703163224038 ], "ocr": false, "ocr_confidence": 1, "text": "acquired new business, and added new capabilities and offerings. " }, { "bbox": [ 0.20663398543214487, 0.7192364702321062, 0.7867322934219261, 0.7304107203628077 ], "ocr": false, "ocr_confidence": 1, "text": "At the conclusion of 2016, Centene was the largest Medicaid managed care organization " }, { "bbox": [ 0.20743463553634345, 0.7356506116462477, 0.7707992254518995, 0.7468248617769492 ], "ocr": false, "ocr_confidence": 1, "text": "in the country, and a leader in three of the largest Medicaid states: California, Florida " }, { "bbox": [ 0.20712418649710862, 0.752064753060389, 0.7432373645258885, 0.7632390031910906 ], "ocr": false, "ocr_confidence": 1, "text": "and Texas. We were also the largest provider of managed Long-Term Services and " }, { "bbox": [ 0.20696079029756434, 0.7684788944745304, 0.7652452256944444, 0.779653144605232 ], "ocr": false, "ocr_confidence": 1, "text": "Supports, which is one of the fastest growing segments in the managed care market. " }, { "bbox": [ 0.2072058783637153, 0.7848930358886719, 0.7954248166551777, 0.7960672860193734 ], "ocr": false, "ocr_confidence": 1, "text": "Our support for both the TRICARE and Veterans Choice programs has positioned Centene " }, { "bbox": [ 0.20712418649710862, 0.8012819386491872, 0.7667175492430045, 0.8124814466996626 ], "ocr": false, "ocr_confidence": 1, "text": "as one of the nation’s largest providers of managed care services for military families " }, { "bbox": [ 0.20712418649710862, 0.8178097118030895, 0.2954085106943168, 0.8263829549153646 ], "ocr": false, "ocr_confidence": 1, "text": "and veterans." }, { "bbox": [ 1.5095751394633374, 0.35547969317195394, 1.7114377489276962, 0.3632195597947246 ], "ocr": false, "ocr_confidence": 1, "text": "A TRANSFORMATIONAL YEAR" }, { "bbox": [ 1.5101470947265625, 0.37349735606800427, 1.9354722764756944, 0.38463372895211884 ], "ocr": false, "ocr_confidence": 1, "text": "Centene successfully secured 11 contracts in 2016, and our pipeline " }, { "bbox": [ 1.5106372708588645, 0.38999989056828044, 1.9093564102073122, 0.4010857476128472 ], "ocr": false, "ocr_confidence": 1, "text": "remains robust with growth prospects. The year 2016 marked " }, { "bbox": [ 1.5101470947265625, 0.4063256388962871, 1.8907793830422794, 0.41749988902698865 ], "ocr": false, "ocr_confidence": 1, "text": "continued growth and profitability on the health insurance " }, { "bbox": [ 1.5106372708588645, 0.4228281733965633, 1.8765783372268179, 0.43391403044113 ], "ocr": false, "ocr_confidence": 1, "text": "marketplace exchanges. We ended the year with 537,200" }, { "bbox": [ 1.5106372708588645, 0.4391539217245699, 1.9160573124106413, 0.4502902946086845 ], "ocr": false, "ocr_confidence": 1, "text": "marketplace members, compared to the previous year total of " }, { "bbox": [ 1.5096569185942605, 0.45556806313871134, 1.9215474845537173, 0.4667044360228259 ], "ocr": false, "ocr_confidence": 1, "text": "146,100, an increase of 268 percent. Importantly, we were a net " }, { "bbox": [ 1.5101470947265625, 0.4719822045528527, 1.90683003344567, 0.4831059388440065 ], "ocr": false, "ocr_confidence": 1, "text": "contributor to the risk adjustment pool based on performance " }, { "bbox": [ 1.5103758768318525, 0.48839634596699416, 1.6437238306781046, 0.4970579436331084 ], "ocr": false, "ocr_confidence": 1, "text": "in all of our markets. " }, { "bbox": [ 1.5095751394633374, 0.5174367500073982, 1.9062533908420138, 0.5285099684590041 ], "ocr": false, "ocr_confidence": 1, "text": "With the addition of Health Net, our portfolio now includes a " }, { "bbox": [ 1.5096569185942605, 0.5338508914215396, 1.9060230130463645, 0.5450251415522411 ], "ocr": false, "ocr_confidence": 1, "text": "four-star Medicare Advantage product designed to serve low\u0002" }, { "bbox": [ 1.5103758768318525, 0.5502650713679766, 1.9286716436248978, 0.5614393214986781 ], "ocr": false, "ocr_confidence": 1, "text": "income seniors. This represents a significant growth opportunity " }, { "bbox": [ 1.5100654153262867, 0.5667676058682528, 1.9333791296466503, 0.5778534629128196 ], "ocr": false, "ocr_confidence": 1, "text": "as more than 10,000 people become Medicare-eligible each day. " }, { "bbox": [ 1.5108006296594159, 0.5830933156639638, 1.928607816010519, 0.5942675657946654 ], "ocr": false, "ocr_confidence": 1, "text": "In 2017, we plan on expanding our Medicare Advantage footprint " }, { "bbox": [ 1.5103758768318525, 0.5995074570781053, 1.9044887567657272, 0.6106817072088068 ], "ocr": false, "ocr_confidence": 1, "text": "into four Centene Medicaid states. The objective is to gain in\u0002" }, { "bbox": [ 1.5106372708588645, 0.6159215599599511, 1.9197010713465072, 0.6270958100906526 ], "ocr": false, "ocr_confidence": 1, "text": "market experience before expanding further. This is in line with " }, { "bbox": [ 1.5095751394633374, 0.6324240944602273, 1.9117599188112746, 0.6434089198256984 ], "ocr": false, "ocr_confidence": 1, "text": "the approach we took with the health insurance marketplace. " }, { "bbox": [ 1.5101470947265625, 0.6613761054144965, 1.9349445018892975, 0.672550355545198 ], "ocr": false, "ocr_confidence": 1, "text": "Centene also has a growing and profitable international presence " }, { "bbox": [ 1.5100654153262867, 0.677790246828638, 1.9439968532986112, 0.6889644969593395 ], "ocr": false, "ocr_confidence": 1, "text": "as we partner with governments outside of the U.S. to help address " }, { "bbox": [ 1.5095751394633374, 0.6942043882427793, 1.9108284345639297, 0.7053786383734809 ], "ocr": false, "ocr_confidence": 1, "text": "the healthcare challenges they face. Ribera Salud in Spain and " }, { "bbox": [ 1.5095751394633374, 0.7107068842107599, 1.9142745273565156, 0.7217927412553267 ], "ocr": false, "ocr_confidence": 1, "text": "The Practice Group in the United Kingdom serve approximately " }, { "bbox": [ 1.5098202773948122, 0.7270326325387666, 1.8848332423789829, 0.7382068826694681 ], "ocr": false, "ocr_confidence": 1, "text": "900,000 beneficiaries. Our strategic investments in these " }, { "bbox": [ 1.5101470947265625, 0.743446773952908, 1.9039167017718546, 0.7545200116706617 ], "ocr": false, "ocr_confidence": 1, "text": "companies have added to the expertise and diversification of " }, { "bbox": [ 1.5101470947265625, 0.7598609153670494, 1.6417630264182497, 0.7709341530848031 ], "ocr": false, "ocr_confidence": 1, "text": "our overall portfolio. " }, { "bbox": [ 1.0474019767412173, 0.7112346032653192, 1.0791306838490604, 0.7218583424886068 ], "ocr": false, "ocr_confidence": 1, "text": "124" }, { "bbox": [ 1.0477941176470589, 0.7323633829752604, 1.1414035971647774, 0.7409366260875355 ], "ocr": false, "ocr_confidence": 1, "text": "on the Fortune " }, { "bbox": [ 1.047303941514757, 0.7462522718641493, 1.0963398054534315, 0.7564290557244812 ], "ocr": false, "ocr_confidence": 1, "text": "500 list" }, { "bbox": [ 1.3545752631293402, 0.7112169362077809, 1.4332680297053717, 0.7221058161571773 ], "ocr": false, "ocr_confidence": 1, "text": "S&P 500" }, { "bbox": [ 1.355081795087827, 0.7323633829752604, 1.4249347362642975, 0.7409366260875355 ], "ocr": false, "ocr_confidence": 1, "text": "included in " }, { "bbox": [ 1.3542810577193116, 0.7462522718641493, 1.4135768117468341, 0.7548255149764244 ], "ocr": false, "ocr_confidence": 1, "text": "the index" }, { "bbox": [ 1.200457604102839, 0.7112346032653192, 1.236052369759753, 0.7220527957184146 ], "ocr": false, "ocr_confidence": 1, "text": "470" }, { "bbox": [ 1.2007353539560355, 0.7323633829752604, 1.2943448334737542, 0.7409366260875355 ], "ocr": false, "ocr_confidence": 1, "text": "on the Fortune " }, { "bbox": [ 1.2007353539560355, 0.7462522718641493, 1.295343137254902, 0.7564290557244812 ], "ocr": false, "ocr_confidence": 1, "text": "Global 500 list" } ]
[ { "bbox": [ 0.20785457636016647, 0.2903573392617582, 0.3611176434685202, 0.2988573324800742 ], "data": [], "index_in_doc": 127, "label": "text", "text": "MICHAEL F. NEIDORFF" }, { "bbox": [ 0.2072794172498915, 0.3047513865461253, 0.4713058970332925, 0.31480823863636365 ], "data": [], "index_in_doc": 128, "label": "text", "text": "Chairman, President & Chief Executive Officer" }, { "bbox": [ 0.20745097889619715, 0.3799056621512981, 0.7501958709916258, 0.40225416241270123 ], "data": [], "index_in_doc": 129, "label": "text", "text": "strategically and very successful financially." }, { "bbox": [ 0.20777778376161662, 0.4354612177068537, 0.8027123843922335, 0.4578097179682568 ], "data": [], "index_in_doc": 130, "label": "text", "text": "acquisition on March 24, and the full integration" }, { "bbox": [ 0.04552620532465916, 0.35212784584122475, 0.7328103258718852, 0.44533573497425427 ], "data": [], "index_in_doc": 131, "label": "text", "text": "The Year 2016 was a transformational year The successful closing of the Health Net" }, { "bbox": [ 0.20679738163168915, 0.37296510946871053, 0.9315649294385723, 0.49753882668235083 ], "data": [], "index_in_doc": 132, "label": "text", "text": "The successful closing of the Health Net of the companies' culture, management and" }, { "bbox": [ 0.20679738163168915, 0.518794551040187, 0.7815389196857129, 0.5411430513015901 ], "data": [], "index_in_doc": 133, "label": "text", "text": "growth in sales and profits, moving us into the" }, { "bbox": [ 0.2079411799611609, 0.5745268542357166, 0.6192482343686172, 0.59649658203125 ], "data": [], "index_in_doc": 134, "label": "text", "text": "Centene important critical mass." }, { "bbox": [ 0.0454245361627317, 0.46318847964508364, 0.7862908855762357, 0.6570601029829546 ], "data": [], "index_in_doc": 135, "label": "text", "text": "of the companies' culture, management and business systems helped to achieve record large cap territory of companies. It also gave Strong financial results, as well as investments in people, capabilities and technology have led us to consistently deliver strong performance with an industry-leading growth" }, { "bbox": [ 0.20696079029756434, 0.5168733693132497, 0.9295981413398693, 0.643162236069188 ], "data": [], "index_in_doc": 136, "label": "text", "text": "large cap territory of companies. It also gave Strong financial results, as well as investments in people, capabilities and technology" }, { "bbox": [ 0.20663398543214487, 0.6573677833634194, 0.944790709252451, 0.7707975753630051 ], "data": [], "index_in_doc": 137, "label": "text", "text": "rate. Our subsidiaries and suite of products continue to generate great opportunities. We have added and expanded contracts in existing markets, grown geographically, acquired new business, and added new capabilities and offerings. At the conclusion of 2016, Centene was the largest Medicaid managed care organization in the country, and a leader in three of the largest Medicaid states: California, Florida and Texas. 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Our membership grew" }, { "bbox": [ 1.047303941514757, 0.4198377589986782, 1.4426798103681577, 0.4309109774502841 ], "data": [], "index_in_doc": 148, "label": "text", "text": "124 percent to more than 11.4 million beneficiaries across 24" }, { "bbox": [ 1.0475489797155841, 0.43634029349895437, 1.1577450621361827, 0.4449134980789339 ], "data": [], "index_in_doc": 149, "label": "text", "text": "states in the U.S." }, { "bbox": [ 1.0472221623838338, 0.4652923044532236, 1.4781013438904207, 0.4764665545839252 ], "data": [], "index_in_doc": 150, "label": "text", "text": "We were ranked number 124 on the Fortune 500 list of largest U.S." }, { "bbox": [ 1.0477941176470589, 0.48179483895349984, 1.4735392651526757, 0.4928806959980666 ], "data": [], "index_in_doc": 151, "label": "text", "text": "corporations by revenue, advancing our position by 62 spots over" }, { "bbox": [ 1.0472221623838338, 0.4982089803676413, 1.4716324151731004, 0.509256960165621 ], "data": [], "index_in_doc": 152, "label": "text", "text": "the previous year. And, were listed at number 470 on the Fortune" }, { "bbox": [ 1.0477941176470589, 0.5146231217817827, 1.4591962028952206, 0.5256711015797625 ], "data": [], "index_in_doc": 153, "label": "text", "text": "Global 500 list. Additionally, we moved into the S&P 500 index," }, { "bbox": [ 1.0472221623838338, 0.5309489086420849, 1.4532356012880412, 0.5421231587727865 ], "data": [], "index_in_doc": 154, "label": "text", "text": "which was a milestone for Centene. The ranking widened our" }, { "bbox": [ 1.0480228997523489, 0.5473630500562263, 1.4482845730251737, 0.5584994229403409 ], "data": [], "index_in_doc": 155, "label": "text", "text": "investor base and helped increase the liquidity of our stock." }, { "bbox": [ 1.0472221623838338, 0.5638655460242069, 1.4798954982383579, 0.5749135258221867 ], "data": [], "index_in_doc": 156, "label": "text", "text": "Another important metric, total shareholder return, was adversely" }, { "bbox": [ 1.0477941176470589, 0.5801912943522135, 1.4625492469937194, 0.5913276672363281 ], "data": [], "index_in_doc": 157, "label": "text", "text": "effected by concerns about what impact the election outcome" }, { "bbox": [ 1.0472221623838338, 0.5966937903201941, 1.4758662803500306, 0.6077796473647609 ], "data": [], "index_in_doc": 158, "label": "text", "text": "would have on our government sponsored healthcare programs." }, { "bbox": [ 1.0475489797155841, 0.6131079317343355, 1.4327601015178206, 0.6241559115323153 ], "data": [], "index_in_doc": 159, "label": "text", "text": "Subsequently, we were able to reassure investors that the" }, { "bbox": [ 1.0477941176470589, 0.6294336800623421, 1.4549185559640523, 0.6406079301930437 ], "data": [], "index_in_doc": 160, "label": "text", "text": "company has a record of adapting, as necessary, to changing" }, { "bbox": [ 1.0472221623838338, 0.6459488146232836, 1.2477941575393179, 0.6570220716071852 ], "data": [], "index_in_doc": 161, "label": "text", "text": "government service programs." }, { "bbox": [ 1.0474019767412173, 0.7112346032653192, 1.0791306838490604, 0.7218583424886068 ], "data": [], "index_in_doc": 162, "label": "text", "text": "124" }, { "bbox": [ 1.0477941176470589, 0.7323633829752604, 1.1414035971647774, 0.7409366260875355 ], "data": [], "index_in_doc": 163, "label": "text", "text": "on the Fortune" }, { "bbox": [ 1.047303941514757, 0.7462522718641493, 1.0963398054534315, 0.7564290557244812 ], "data": [], "index_in_doc": 164, "label": "text", "text": "500 list" }, { "bbox": [ 1.200457604102839, 0.7112346032653192, 1.236052369759753, 0.7220527957184146 ], "data": [], "index_in_doc": 165, "label": "text", "text": "470" }, { "bbox": [ 1.2007353539560355, 0.7323633829752604, 1.2943448334737542, 0.7409366260875355 ], "data": [], "index_in_doc": 166, "label": "text", "text": "on the Fortune" }, { "bbox": [ 1.2007353539560355, 0.7462522718641493, 1.295343137254902, 0.7564290557244812 ], "data": [], "index_in_doc": 167, "label": "text", "text": "Global 500 list" }, { "bbox": [ 1.3545752631293402, 0.7112169362077809, 1.4332680297053717, 0.7221058161571773 ], "data": [], "index_in_doc": 168, "label": "text", "text": "S&P 500" }, { "bbox": [ 1.355081795087827, 0.7323633829752604, 1.4249347362642975, 0.7409366260875355 ], "data": [], "index_in_doc": 169, "label": "text", "text": "included in" }, { "bbox": [ 1.3542810577193116, 0.7462522718641493, 1.4135768117468341, 0.7548255149764244 ], "data": [], "index_in_doc": 170, "label": "text", "text": "the index" }, { "bbox": [ 1.5095751394633374, 0.35547969317195394, 1.7114377489276962, 0.3632195597947246 ], "data": [], "index_in_doc": 171, "label": "text", "text": "A TRANSFORMATIONAL YEAR" }, { "bbox": [ 1.5101470947265625, 0.37349735606800427, 1.9354722764756944, 0.38463372895211884 ], "data": [], "index_in_doc": 172, "label": "text", "text": "Centene successfully secured 11 contracts in 2016, and our pipeline" }, { "bbox": [ 1.5106372708588645, 0.38999989056828044, 1.9093564102073122, 0.4010857476128472 ], "data": [], "index_in_doc": 173, "label": "text", "text": "remains robust with growth prospects. The year 2016 marked" }, { "bbox": [ 1.5101470947265625, 0.4063256388962871, 1.8907793830422794, 0.41749988902698865 ], "data": [], "index_in_doc": 174, "label": "text", "text": "continued growth and profitability on the health insurance" }, { "bbox": [ 1.5106372708588645, 0.4228281733965633, 1.8765783372268179, 0.43391403044113 ], "data": [], "index_in_doc": 175, "label": "text", "text": "marketplace exchanges. We ended the year with 537,200" }, { "bbox": [ 1.5106372708588645, 0.4391539217245699, 1.9160573124106413, 0.4502902946086845 ], "data": [], "index_in_doc": 176, "label": "text", "text": "marketplace members, compared to the previous year total of" }, { "bbox": [ 1.5096569185942605, 0.45556806313871134, 1.9215474845537173, 0.4667044360228259 ], "data": [], "index_in_doc": 177, "label": "text", "text": "146,100, an increase of 268 percent. Importantly, we were a net" }, { "bbox": [ 1.5101470947265625, 0.4719822045528527, 1.90683003344567, 0.4831059388440065 ], "data": [], "index_in_doc": 178, "label": "text", "text": "contributor to the risk adjustment pool based on performance" }, { "bbox": [ 1.5103758768318525, 0.48839634596699416, 1.6437238306781046, 0.4970579436331084 ], "data": [], "index_in_doc": 179, "label": "text", "text": "in all of our markets." }, { "bbox": [ 1.5095751394633374, 0.5174367500073982, 1.9062533908420138, 0.5285099684590041 ], "data": [], "index_in_doc": 180, "label": "text", "text": "With the addition of Health Net, our portfolio now includes a" }, { "bbox": [ 1.5096569185942605, 0.5338508914215396, 1.9060230130463645, 0.5450251415522411 ], "data": [], "index_in_doc": 181, "label": "text", "text": "four-star Medicare Advantage product designed to serve low-" }, { "bbox": [ 1.5103758768318525, 0.5502650713679766, 1.9286716436248978, 0.5614393214986781 ], "data": [], "index_in_doc": 182, "label": "text", "text": "income seniors. This represents a significant growth opportunity" }, { "bbox": [ 1.5100654153262867, 0.5667676058682528, 1.9333791296466503, 0.5778534629128196 ], "data": [], "index_in_doc": 183, "label": "text", "text": "as more than 10,000 people become Medicare-eligible each day." }, { "bbox": [ 1.5108006296594159, 0.5830933156639638, 1.928607816010519, 0.5942675657946654 ], "data": [], "index_in_doc": 184, "label": "text", "text": "In 2017, we plan on expanding our Medicare Advantage footprint" }, { "bbox": [ 1.5103758768318525, 0.5995074570781053, 1.9044887567657272, 0.6106817072088068 ], "data": [], "index_in_doc": 185, "label": "text", "text": "into four Centene Medicaid states. The objective is to gain in-" }, { "bbox": [ 1.5106372708588645, 0.6159215599599511, 1.9197010713465072, 0.6270958100906526 ], "data": [], "index_in_doc": 186, "label": "text", "text": "market experience before expanding further. This is in line with" }, { "bbox": [ 1.5095751394633374, 0.6324240944602273, 1.9117599188112746, 0.6434089198256984 ], "data": [], "index_in_doc": 187, "label": "text", "text": "the approach we took with the health insurance marketplace." }, { "bbox": [ 1.5101470947265625, 0.6613761054144965, 1.9349445018892975, 0.672550355545198 ], "data": [], "index_in_doc": 188, "label": "text", "text": "Centene also has a growing and profitable international presence" }, { "bbox": [ 1.5100654153262867, 0.677790246828638, 1.9439968532986112, 0.6889644969593395 ], "data": [], "index_in_doc": 189, "label": "text", "text": "as we partner with governments outside of the U.S. to help address" }, { "bbox": [ 1.5095751394633374, 0.6942043882427793, 1.9108284345639297, 0.7053786383734809 ], "data": [], "index_in_doc": 190, "label": "text", "text": "the healthcare challenges they face. Ribera Salud in Spain and" }, { "bbox": [ 1.5095751394633374, 0.7107068842107599, 1.9142745273565156, 0.7217927412553267 ], "data": [], "index_in_doc": 191, "label": "text", "text": "The Practice Group in the United Kingdom serve approximately" }, { "bbox": [ 1.5098202773948122, 0.7270326325387666, 1.8848332423789829, 0.7382068826694681 ], "data": [], "index_in_doc": 192, "label": "text", "text": "900,000 beneficiaries. Our strategic investments in these" }, { "bbox": [ 1.5101470947265625, 0.743446773952908, 1.9039167017718546, 0.7545200116706617 ], "data": [], "index_in_doc": 193, "label": "text", "text": "companies have added to the expertise and diversification of" }, { "bbox": [ 1.5101470947265625, 0.7598609153670494, 1.6417630264182497, 0.7709341530848031 ], "data": [], "index_in_doc": 194, "label": "text", "text": "our overall portfolio." } ]
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Centene's competitive advantage also rests in the fact that we have more than 30 years of experience in operating government-sponsored healthcare programs. BUILDING UPON OUR SCALE, CAPABILITY, AND CAPACITY The capabilities of f Centene's systems are a key differentiating factor between us and others in the segment. Through our Health Care Enterprise group, we own and deploy Casenet and its TruCare case management solution. These tools provide integrated care models that manage more complex populations in all Centene states that require both acute care and long-term services and supports. Our investment in Interpreta, which we are integrating into TruCare, is designed to help identify quality and risk adjustment gaps in real time. We continue to design, integrate and invest in systems that will scale with the Company's growth and further support our business intelligence and analytical capabilities. In the past five years, Centene has invested approximately $400 million to advance and secure our platforms, minimizing unexpected issues. We know 4 CENTENE CORPORATION Letter From The Chairman Letter From The Chairman CENTENE CORPORATION 5 that to successfully operate across multi-state service areas, it is essential to have the ability to access, and more importantly, interpret data. We collect and store the clinical and financial data from all of our health plans through Centelligence, our proprietary data analytics platform. This allows for the seamless flow of information across the enterprise. Centene's competitive advantage also rests in the fact that we have more than 30 years of experience in operating governmentsponsored healthcare programs. We know that each state is unique and that healthcare is best delivered locally. Our local approach enables us to provide accessible, high-quality, culturally sensitive services to our members. It also creates and maintains jobs in local markets, stimulates local economic growth and can address healthcare challenges specific to each state. A VIEW TOWARD THE FUTURE The need for high-quality, affordable healthcare is ever increasing. We have a history of successfully partnering with states to provide budget predictability and measurable return on investment - while also providing market-specific solutions for improving health care outcomes. We have also demonstrated our agility, and have grown in both capacity and capability, to successfully navigate industry changes to the benefit of our members, customers and shareholders. The accomplishments we realized in 2016 exemplify the kind of steady growth and successes we have seen over the past decades. This is a testament to the work of Centene's more than 30,500 employees. Together, we have demonstrated our ability to execute on our growth strategies with discipline and agility, while remaining committed to our purpose to transform the health of the community one person at a time. We are confident that we have the scale, networks, expertise, systems and infrastructure in place to ensure a successful future. MICHAEL F. NEIDORFF Chairman, President & Chief Executive Officer Our multi-line portfolio features a diverse range of products and services. Aged, Blind, or Disabled (ABD) Behavioral and Specialty Therapies Care Management Software Solutions Children's Health Insurance Program (CHIP) Commercial (Small and Large Group) Correctional Healthcare Services Dental Benefits Management Dual Eligible Special Needs Plans Foster Care Health Insurance Marketplace In-Home Health Services Institutional Special Needs Plans Intellectually/Developmentally Disabled Life and Health Management Long-Term Services and Supports (LTSS) Managed Vision Medicare Advantage (MAPD) Medicare-Medicaid Plans (MMP) Medication Adherence Military and Veterans Pharmacy Benefits Management Specialty Pharmacy Telehealth Temporary Assistance for Needy Families (TANF)
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" }, { "bbox": [ 1.046307333154616, 0.5178780603890467, 1.4484806434780944, 0.5290144332731613 ], "ocr": false, "ocr_confidence": 1, "text": "The accomplishments we realized in 2016 exemplify the kind " }, { "bbox": [ 1.0468791886871935, 0.5342922018031881, 1.44300852258221, 0.5454664519338897 ], "ocr": false, "ocr_confidence": 1, "text": "of steady growth and successes we have seen over the past " }, { "bbox": [ 1.0468791886871935, 0.5506811045637034, 1.4741507137522978, 0.5593679408834438 ], "ocr": false, "ocr_confidence": 1, "text": "decades. This is a testament to the work of Centene’s more than " }, { "bbox": [ 1.0462255540236929, 0.5672088777176058, 1.4851474138646343, 0.5782947347621725 ], "ocr": false, "ocr_confidence": 1, "text": "30,500 employees. 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" }, { "bbox": [ 1.5088996637880412, 0.3933438002461135, 1.6846349379595589, 0.40334381720032353 ], "ocr": false, "ocr_confidence": 1, "text": "Aged, Blind, or Disabled (ABD)" }, { "bbox": [ 1.5099731644773795, 0.40723014600349194, 1.7101039512484681, 0.41719606187608504 ], "ocr": false, "ocr_confidence": 1, "text": "Behavioral and Specialty Therapies" }, { "bbox": [ 1.509399613523795, 0.42105969515713776, 1.724987753076491, 0.4311165472473761 ], "ocr": false, "ocr_confidence": 1, "text": "Care Management Software Solutions" }, { "bbox": [ 1.509399613523795, 0.43491201689749054, 1.7600598304100286, 0.4450029315370502 ], "ocr": false, "ocr_confidence": 1, "text": "Children’s Health Insurance Program (CHIP)" }, { "bbox": [ 1.509399613523795, 0.4488892603402186, 1.7221187018101511, 0.4588892772944287 ], "ocr": false, "ocr_confidence": 1, "text": "Commercial (Small and Large Group)" }, { "bbox": [ 1.509399613523795, 0.46277560609759705, 1.6985038807189543, 0.47051423968690814 ], "ocr": false, "ocr_confidence": 1, "text": "Correctional Healthcare Services" }, { "bbox": [ 1.5099731644773795, 0.4766051552512429, 1.6752672382429534, 0.48666200734148124 ], "ocr": false, "ocr_confidence": 1, "text": "Dental Benefits Management" }, { "bbox": [ 1.5099731644773795, 0.4905483361446496, 1.699825910181781, 0.5005483530988597 ], "ocr": false, "ocr_confidence": 1, "text": "Dual Eligible Special Needs Plans" }, { "bbox": [ 1.5099731644773795, 0.50521881411774, 1.574473162881689, 0.5121733540236347 ], "ocr": false, "ocr_confidence": 1, "text": "Foster Care" }, { "bbox": [ 1.5099731644773795, 0.5183438002461135, 1.6824731764450571, 0.5282301469282671 ], "ocr": false, "ocr_confidence": 1, "text": "Health Insurance Marketplace" }, { "bbox": [ 1.5099731644773795, 0.5322074504813763, 1.6520613128063726, 0.5399460840706873 ], "ocr": false, "ocr_confidence": 1, "text": "In-Home Health Services" }, { "bbox": [ 1.5099731644773795, 0.5460937962387548, 1.6982230392156863, 0.5560028769753196 ], "ocr": false, "ocr_confidence": 1, "text": "Institutional Special Needs Plans" }, { "bbox": [ 1.5099731644773795, 0.5599801805284288, 1.7405744565078636, 0.5699460964010219 ], "ocr": false, "ocr_confidence": 1, "text": "Intellectually/Developmentally Disabled" }, { "bbox": [ 1.5099731644773795, 0.5738096911497791, 1.6749141917509192, 0.5838665432400174 ], "ocr": false, "ocr_confidence": 1, "text": "Life and Health Management" }, { "bbox": [ 1.5099731644773795, 0.5877528720431857, 1.7396922392003678, 0.5977528889973959 ], "ocr": false, "ocr_confidence": 1, "text": "Long-Term Services and Supports (LTSS)" }, { "bbox": [ 1.5099731644773795, 0.6016392563328599, 1.5987069123710682, 0.6116392732870699 ], "ocr": false, "ocr_confidence": 1, "text": "Managed Vision" }, { "bbox": [ 1.5099731644773795, 0.6155256406225339, 1.6733554017310048, 0.625525657576744 ], "ocr": false, "ocr_confidence": 1, "text": "Medicare Advantage (MAPD)" }, { "bbox": [ 1.5099731644773795, 0.6294119863799124, 1.6943995656530841, 0.6393097000892716 ], "ocr": false, "ocr_confidence": 1, "text": "Medicare-Medicaid Plans (MMP)" }, { "bbox": [ 1.5099731644773795, 0.6432983321372909, 1.6385025323606004, 0.651036965726602 ], "ocr": false, "ocr_confidence": 1, "text": "Medication Adherence" }, { "bbox": [ 1.5099731644773795, 0.657184716426965, 1.631326114430147, 0.6671506322995581 ], "ocr": false, "ocr_confidence": 1, "text": "Military and Veterans" }, { "bbox": [ 1.5099731644773795, 0.6710142655806108, 1.6944877275454453, 0.6810710791385535 ], "ocr": false, "ocr_confidence": 1, "text": "Pharmacy Benefits Management" }, { "bbox": [ 1.5091643489264195, 0.6849574464740176, 1.6224584641799429, 0.6949233623466107 ], "ocr": false, "ocr_confidence": 1, "text": "Specialty Pharmacy" }, { "bbox": [ 1.5088996637880412, 0.6988665262858073, 1.56804671942019, 0.7065824258207071 ], "ocr": false, "ocr_confidence": 1, "text": "Telehealth" }, { "bbox": [ 1.5088996637880412, 0.7126733606511896, 1.7892230663424225, 0.7226960923936632 ], "ocr": false, "ocr_confidence": 1, "text": "Temporary Assistance for Needy Families (TANF)" } ]
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This allows for the seamless flow of information across the enterprise." }, { "bbox": [ 0.5136190177568423, 0.4656193665783815, 0.9554837295432496, 0.5921836236510614 ], "data": [], "index_in_doc": 202, "label": "text", "text": "Centene's competitive advantage also rests in the fact that we have more than 30 years of experience in operating governmentsponsored healthcare programs. We know that each state is unique and that healthcare is best delivered locally. Our local approach enables us to provide accessible, high-quality, culturally sensitive services to our members. It also creates and maintains jobs in local markets, stimulates local economic growth and can address healthcare challenges specific to each state." }, { "bbox": [ 1.0463072334239685, 0.3559336036142677, 1.2530555475771037, 0.3636608701763731 ], "data": [], "index_in_doc": 203, "label": "text", "text": "A VIEW TOWARD THE FUTURE" }, { "bbox": [ 1.0463072334239685, 0.3739386664496528, 1.4135460947074143, 0.38511291658035435 ], "data": [], "index_in_doc": 204, "label": "text", "text": "The need for high-quality, affordable healthcare is ever" }, { "bbox": [ 1.0471079707924837, 0.39035280786379417, 1.4501637976154003, 0.40152705799449573 ], "data": [], "index_in_doc": 205, "label": "text", "text": "increasing. We have a history of successfully partnering with" }, { "bbox": [ 1.046634050755719, 0.4068553423640704, 1.4598532284007353, 0.41794119940863717 ], "data": [], "index_in_doc": 206, "label": "text", "text": "states to provide budget predictability and measurable return" }, { "bbox": [ 1.0468791886871935, 0.42318109069207704, 1.468433255463644, 0.43435534082277855 ], "data": [], "index_in_doc": 207, "label": "text", "text": "on investment - while also providing market-specific solutions" }, { "bbox": [ 1.0463890125548918, 0.4395952321062184, 1.4793140685636235, 0.45076948223692 ], "data": [], "index_in_doc": 208, "label": "text", "text": "for improving health care outcomes. We have also demonstrated" }, { "bbox": [ 1.046879288417841, 0.45609776660649465, 1.4404416551776962, 0.4671836236510614 ], "data": [], "index_in_doc": 209, "label": "text", "text": "our agility, and have grown in both capacity and capability," }, { "bbox": [ 1.046307333154616, 0.47242351493450124, 1.4341671014922897, 0.4835977650652028 ], "data": [], "index_in_doc": 210, "label": "text", "text": "to successfully navigate industry changes to the benefit of" }, { "bbox": [ 1.046879288417841, 0.48892604943477747, 1.3398517284517975, 0.49874928021671794 ], "data": [], "index_in_doc": 211, "label": "text", "text": "our members, customers and shareholders." }, { "bbox": [ 1.046307333154616, 0.5178780603890467, 1.4484806434780944, 0.5290144332731613 ], "data": [], "index_in_doc": 212, "label": "text", "text": "The accomplishments we realized in 2016 exemplify the kind" }, { "bbox": [ 1.0468791886871935, 0.5342922018031881, 1.44300852258221, 0.5454664519338897 ], "data": [], "index_in_doc": 213, "label": "text", "text": "of steady growth and successes we have seen over the past" }, { "bbox": [ 1.0468791886871935, 0.5506811045637034, 1.4741507137522978, 0.5593679408834438 ], "data": [], "index_in_doc": 214, "label": "text", "text": "decades. This is a testament to the work of Centene's more than" }, { "bbox": [ 1.0462255540236929, 0.5672088777176058, 1.4851474138646343, 0.5782947347621725 ], "data": [], "index_in_doc": 215, "label": "text", "text": "30,500 employees. Together, we have demonstrated our ability to" }, { "bbox": [ 1.0468791886871935, 0.5836230191317472, 1.4829905391518587, 0.594708876176314 ], "data": [], "index_in_doc": 216, "label": "text", "text": "execute on our growth strategies with discipline and agility, while" }, { "bbox": [ 1.0473693648194955, 0.5999487674597538, 1.469379300385519, 0.6111230175904553 ], "data": [], "index_in_doc": 217, "label": "text", "text": "remaining committed to our purpose to transform the health of" }, { "bbox": [ 1.0463072334239685, 0.6163629088738952, 1.464199689478656, 0.6274992817580097 ], "data": [], "index_in_doc": 218, "label": "text", "text": "the community one person at a time. We are confident that we" }, { "bbox": [ 1.0473693648194955, 0.6327770502880367, 1.4693140765420751, 0.6439134231721512 ], "data": [], "index_in_doc": 219, "label": "text", "text": "have the scale, networks, expertise, systems and infrastructure" }, { "bbox": [ 1.0471079707924837, 0.649191191702178, 1.3013385448580475, 0.6602644101537839 ], "data": [], "index_in_doc": 220, "label": "text", "text": "in place to ensure a successful future." }, { "bbox": [ 1.0460172167011337, 0.7689769051291726, 1.1995940364264195, 0.776704171691278 ], "data": [], "index_in_doc": 221, "label": "text", "text": "MICHAEL F. NEIDORFF" }, { "bbox": [ 1.0456903993693831, 0.7844566961731574, 1.34006465338414, 0.7956309463038589 ], "data": [], "index_in_doc": 222, "label": "text", "text": "Chairman, President & Chief Executive Officer" }, { "bbox": [ 1.5093113519007864, 0.3536392366043245, 1.7620159473294525, 0.37632107975507023 ], "data": [], "index_in_doc": 223, "label": "text", "text": "Our multi-line portfolio features a diverse range of products and services." }, { "bbox": [ 1.5088996637880412, 0.3933438002461135, 1.7600598304100286, 0.47051423968690814 ], "data": [], "index_in_doc": 224, "label": "text", "text": "Aged, Blind, or Disabled (ABD) Behavioral and Specialty Therapies Care Management Software Solutions Children's Health Insurance Program (CHIP) Commercial (Small and Large Group) Correctional Healthcare Services" }, { "bbox": [ 1.5099731644773795, 0.4766051552512429, 1.699825910181781, 0.5121733540236347 ], "data": [], "index_in_doc": 225, "label": "text", "text": "Dental Benefits Management Dual Eligible Special Needs Plans Foster Care" }, { "bbox": [ 1.5099731644773795, 0.5183438002461135, 1.6824731764450571, 0.5399460840706873 ], "data": [], "index_in_doc": 226, "label": "text", "text": "Health Insurance Marketplace In-Home Health Services" }, { "bbox": [ 1.5099731644773795, 0.5460937962387548, 1.7405744565078636, 0.651036965726602 ], "data": [], "index_in_doc": 227, "label": "text", "text": "Institutional Special Needs Plans Intellectually/Developmentally Disabled Life and Health Management Long-Term Services and Supports (LTSS) Managed Vision Medicare Advantage (MAPD) Medicare-Medicaid Plans (MMP) Medication Adherence" }, { "bbox": [ 1.5088996637880412, 0.657184716426965, 1.6944877275454453, 0.7065824258207071 ], "data": [], "index_in_doc": 228, "label": "text", "text": "Military and Veterans Pharmacy Benefits Management Specialty Pharmacy Telehealth" }, { "bbox": [ 1.5088996637880412, 0.7126733606511896, 1.7892230663424225, 0.7226960923936632 ], "data": [], "index_in_doc": 229, "label": "text", "text": "Temporary Assistance for Needy Families (TANF)" } ]
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Centene's competitive advantage also rests in the fact that we have more than 30 years of experience in operating government-sponsored healthcare programs. BUILDING UPON OUR SCALE, CAPABILITY, AND CAPACITY The capabilities of f Centene's systems are a key differentiating factor between us and others in the segment. Through our Health Care Enterprise group, we own and deploy Casenet and its TruCare case management solution. These tools provide integrated care models that manage more complex populations in all Centene states that require both acute care and long-term services and supports. Our investment in Interpreta, which we are integrating into TruCare, is designed to help identify quality and risk adjustment gaps in real time. We continue to design, integrate and invest in systems that will scale with the Company's growth and further support our business intelligence and analytical capabilities. In the past five years, Centene has invested approximately $400 million to advance and 4 CENTENE CORPORATION Letter From The Chairman Letter From The Chairman CENTENE CORPORATION 5 that to successfully operate across multi-state service areas, it is essential to have the ability to access, and more importantly, interpret data. We collect and store the clinical and financial data from all of our health plans through Centelligence, our proprietary data analytics platform. This allows for the seamless flow of information across the enterprise. Centene's competitive advantage also rests in the fact that we have more than 30 years of experience in operating governmentsponsored healthcare programs. We know that each state is unique and that healthcare is best delivered locally. Our local approach enables us to provide accessible, high-quality, culturally sensitive services to our members. It also creates and maintains jobs in local markets, stimulates local economic growth and can address healthcare challenges specific to each state. A VIEW TOWARD THE FUTURE The need for high-quality, affordable healthcare is ever increasing. We have a history of successfully partnering with states to provide budget predictability and measurable return on investment - while also providing market-specific solutions for improving health care outcomes. We have also demonstrated our agility, and have grown in both capacity and capability, to successfully navigate industry changes to the benefit of our members, customers and shareholders. The accomplishments we realized in 2016 exemplify the kind of steady growth and successes we have seen over the past decades. This is a testament to the work of Centene's more than 30,500 employees. Together, we have demonstrated our ability to execute on our growth strategies with discipline and agility, while remaining committed to our purpose to transform the health of the community one person at a time. We are confident that we have the scale, networks, expertise, systems and infrastructure in place to ensure a successful future. MICHAEL F. NEIDORFF Chairman, President & Chief Executive Officer Our multi-line portfolio features a diverse range of products and services. Aged, Blind, or Disabled (ABD) Behavioral and Specialty Therapies Care Management Software Solutions Children's Health Insurance Program (CHIP) Commercial (Small and Large Group) Correctional Healthcare Services Dental Benefits Management Dual Eligible Special Needs Plans Foster Care Health Insurance Marketplace In-Home Health Services Institutional Special Needs Plans Intellectually/Developmentally Disabled Life and Health Management Long-Term Services and Supports (LTSS) Managed Vision Medicare Advantage (MAPD) Medicare-Medicaid Plans (MMP) Medication Adherence Military and Veterans Pharmacy Benefits Management Specialty Pharmacy Telehealth Temporary Assistance for Needy Families (TANF)
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[ { "bbox": [ 0.044722734713086895, 0.3552214882590554, 0.4638563667247498, 0.36979725384953044 ], "data": [], "index_in_doc": 230, "label": "section_header", "text": "Centene's competitive advantage also rests in" }, { "bbox": [ 0.04467329324460497, 0.3726632859971788, 0.47787585289649714, 0.49964103313407515 ], "data": [], "index_in_doc": 231, "label": "text", "text": "the fact that we have more than 30 years of experience in operating government-sponsored healthcare programs. BUILDING UPON OUR SCALE, CAPABILITY, AND CAPACITY The capabilities of f Centene's systems are a key differentiating" }, { "bbox": [ 0.05200980379690532, 0.4992416844223485, 0.4791111665613511, 0.51041593455305 ], "data": [], "index_in_doc": 232, "label": "text", "text": "factor between us and others in the segment. Through our Health" }, { "bbox": [ 0.04449762394225675, 0.5157442189226247, 0.48791833017386643, 0.6599811592487373 ], "data": [], "index_in_doc": 233, "label": "text", "text": "Care Enterprise group, we own and deploy Casenet and its TruCare case management solution. These tools provide integrated care models that manage more complex populations in all Centene states that require both acute care and long-term services and supports. Our investment in Interpreta, which we are integrating into TruCare, is designed to help identify quality and risk adjustment gaps in real time. We continue to design, integrate and invest in systems that will" }, { "bbox": [ 0.05225490121280446, 0.6595699811222577, 0.4861241758259293, 0.6707694699065854 ], "data": [], "index_in_doc": 234, "label": "text", "text": "scale with the Company's growth and further support our business" }, { "bbox": [ 0.052728758917914495, 0.6760093611900253, 0.4446667440576491, 0.6871836305868746 ], "data": [], "index_in_doc": 235, "label": "text", "text": "intelligence and analytical capabilities. In the past five years," }, { "bbox": [ 0.05250000174528633, 0.6925118956903015, 0.47361112108417586, 0.7035598754882812 ], "data": [], "index_in_doc": 236, "label": "text", "text": "Centene has invested approximately $400 million to advance and" }, { "bbox": [ 0.0422256662954692, 0.7033711443043719, 0.45510949028862846, 0.7508625839695786 ], "data": [], "index_in_doc": 237, "label": "picture", "text": "" }, { "bbox": [ 0.054395420099395554, 0.9519823247736151, 0.36120089362649355, 0.959291034274631 ], "data": [], "index_in_doc": 238, "label": "text", "text": "4 CENTENE CORPORATION Letter From The Chairman" }, { "bbox": [ 1.6408119949640012, 0.9519823247736151, 1.9462563508476307, 0.959291034274631 ], "data": [], "index_in_doc": 239, "label": "text", "text": "Letter From The Chairman CENTENE CORPORATION 5" }, { "bbox": [ 0.50759493759255, 0.3526726925011837, 0.9395196453418607, 0.3825497868085148 ], "data": [], "index_in_doc": 240, "label": "section_header", "text": "that to successfully operate across multi-state service areas, it is essential to have the ability to access, and more importantly," }, { "bbox": [ 0.5069411034677543, 0.3878275553385417, 0.9554837295432496, 0.7230468904129183 ], "data": [], "index_in_doc": 241, "label": "text", "text": "interpret data. We collect and store the clinical and financial data from all of our health plans through Centelligence, our proprietary data analytics platform. This allows for the seamless flow of information across the enterprise. Centene's competitive advantage also rests in the fact that we have more than 30 years of experience in operating governmentsponsored healthcare programs. We know that each state is unique and that healthcare is best delivered locally. Our local approach enables us to provide accessible, high-quality, culturally sensitive services to our members. It also creates and maintains jobs in local markets, stimulates local economic growth and can address healthcare challenges specific to each state." }, { "bbox": [ 1.0463072334239685, 0.3559336036142677, 1.2530555475771037, 0.3636608701763731 ], "data": [], "index_in_doc": 242, "label": "text", "text": "A VIEW TOWARD THE FUTURE" }, { "bbox": [ 1.0463072334239685, 0.3739386664496528, 1.4135460947074143, 0.38511291658035435 ], "data": [], "index_in_doc": 243, "label": "text", "text": "The need for high-quality, affordable healthcare is ever" }, { "bbox": [ 1.0471079707924837, 0.39035280786379417, 1.4501637976154003, 0.40152705799449573 ], "data": [], "index_in_doc": 244, "label": "text", "text": "increasing. We have a history of successfully partnering with" }, { "bbox": [ 1.046634050755719, 0.4068553423640704, 1.4598532284007353, 0.41794119940863717 ], "data": [], "index_in_doc": 245, "label": "text", "text": "states to provide budget predictability and measurable return" }, { "bbox": [ 1.0468791886871935, 0.42318109069207704, 1.468433255463644, 0.43435534082277855 ], "data": [], "index_in_doc": 246, "label": "text", "text": "on investment - while also providing market-specific solutions" }, { "bbox": [ 1.0463890125548918, 0.4395952321062184, 1.4793140685636235, 0.45076948223692 ], "data": [], "index_in_doc": 247, "label": "text", "text": "for improving health care outcomes. We have also demonstrated" }, { "bbox": [ 1.046879288417841, 0.45609776660649465, 1.4404416551776962, 0.4671836236510614 ], "data": [], "index_in_doc": 248, "label": "text", "text": "our agility, and have grown in both capacity and capability," }, { "bbox": [ 1.046307333154616, 0.47242351493450124, 1.4341671014922897, 0.4835977650652028 ], "data": [], "index_in_doc": 249, "label": "text", "text": "to successfully navigate industry changes to the benefit of" }, { "bbox": [ 1.046879288417841, 0.48892604943477747, 1.3398517284517975, 0.49874928021671794 ], "data": [], "index_in_doc": 250, "label": "text", "text": "our members, customers and shareholders." }, { "bbox": [ 1.046307333154616, 0.5178780603890467, 1.4484806434780944, 0.5290144332731613 ], "data": [], "index_in_doc": 251, "label": "text", "text": "The accomplishments we realized in 2016 exemplify the kind" }, { "bbox": [ 1.0468791886871935, 0.5342922018031881, 1.44300852258221, 0.5454664519338897 ], "data": [], "index_in_doc": 252, "label": "text", "text": "of steady growth and successes we have seen over the past" }, { "bbox": [ 1.0468791886871935, 0.5506811045637034, 1.4741507137522978, 0.5593679408834438 ], "data": [], "index_in_doc": 253, "label": "text", "text": "decades. This is a testament to the work of Centene's more than" }, { "bbox": [ 1.0462255540236929, 0.5672088777176058, 1.4851474138646343, 0.5782947347621725 ], "data": [], "index_in_doc": 254, "label": "text", "text": "30,500 employees. Together, we have demonstrated our ability to" }, { "bbox": [ 1.0468791886871935, 0.5836230191317472, 1.4829905391518587, 0.594708876176314 ], "data": [], "index_in_doc": 255, "label": "text", "text": "execute on our growth strategies with discipline and agility, while" }, { "bbox": [ 1.0473693648194955, 0.5999487674597538, 1.469379300385519, 0.6111230175904553 ], "data": [], "index_in_doc": 256, "label": "text", "text": "remaining committed to our purpose to transform the health of" }, { "bbox": [ 1.0463072334239685, 0.6163629088738952, 1.464199689478656, 0.6274992817580097 ], "data": [], "index_in_doc": 257, "label": "text", "text": "the community one person at a time. We are confident that we" }, { "bbox": [ 1.0473693648194955, 0.6327770502880367, 1.4693140765420751, 0.6439134231721512 ], "data": [], "index_in_doc": 258, "label": "text", "text": "have the scale, networks, expertise, systems and infrastructure" }, { "bbox": [ 1.0471079707924837, 0.649191191702178, 1.3013385448580475, 0.6602644101537839 ], "data": [], "index_in_doc": 259, "label": "text", "text": "in place to ensure a successful future." }, { "bbox": [ 1.0460172167011337, 0.7689769051291726, 1.1995940364264195, 0.776704171691278 ], "data": [], "index_in_doc": 260, "label": "text", "text": "MICHAEL F. NEIDORFF" }, { "bbox": [ 1.0456903993693831, 0.7844566961731574, 1.34006465338414, 0.7956309463038589 ], "data": [], "index_in_doc": 261, "label": "text", "text": "Chairman, President & Chief Executive Officer" }, { "bbox": [ 1.5093113519007864, 0.3536392366043245, 1.7620159473294525, 0.37632107975507023 ], "data": [], "index_in_doc": 262, "label": "text", "text": "Our multi-line portfolio features a diverse range of products and services." }, { "bbox": [ 1.5088996637880412, 0.3933438002461135, 1.7600598304100286, 0.47051423968690814 ], "data": [], "index_in_doc": 263, "label": "text", "text": "Aged, Blind, or Disabled (ABD) Behavioral and Specialty Therapies Care Management Software Solutions Children's Health Insurance Program (CHIP) Commercial (Small and Large Group) Correctional Healthcare Services" }, { "bbox": [ 1.5099731644773795, 0.4766051552512429, 1.699825910181781, 0.5121733540236347 ], "data": [], "index_in_doc": 264, "label": "text", "text": "Dental Benefits Management Dual Eligible Special Needs Plans Foster Care" }, { "bbox": [ 1.5099731644773795, 0.5183438002461135, 1.6824731764450571, 0.5399460840706873 ], "data": [], "index_in_doc": 265, "label": "text", "text": "Health Insurance Marketplace In-Home Health Services" }, { "bbox": [ 1.5099731644773795, 0.5460937962387548, 1.7405744565078636, 0.651036965726602 ], "data": [], "index_in_doc": 266, "label": "text", "text": "Institutional Special Needs Plans Intellectually/Developmentally Disabled Life and Health Management Long-Term Services and Supports (LTSS) Managed Vision Medicare Advantage (MAPD) Medicare-Medicaid Plans (MMP) Medication Adherence" }, { "bbox": [ 1.5088996637880412, 0.657184716426965, 1.6944877275454453, 0.7065824258207071 ], "data": [], "index_in_doc": 267, "label": "text", "text": "Military and Veterans Pharmacy Benefits Management Specialty Pharmacy Telehealth" }, { "bbox": [ 1.5088996637880412, 0.7126733606511896, 1.7892230663424225, 0.7226960923936632 ], "data": [], "index_in_doc": 268, "label": "text", "text": "Temporary Assistance for Needy Families (TANF)" } ]
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FINANCIAL HIGHLIGHTS FROM CONTINUING OPERATIONS (in millions) (1) Attributable to Centene Corporation Managed Care Membership (in thousands) GROUP & PRODUCT SOLUTIONS (by state)* MEDICAID/CHIP Arizona, Arkansas (Private Option), California, Florida, Georgia, Illinois, Indiana, Kansas, Louisiana, Maryland*, Massachusetts, Mississippi, Missouri, Nebraska, Nevada*, New Hampshire, Ohio, Oregon, Pennsylvania*, South Carolina, Texas, Washington, Wisconsin ABD (NON-DUAL) Arizona, California, Florida, Illinois, Indiana, Kansas, Louisiana, Maryland*, Mississippi, Nebraska, New Hampshire, Ohio, Oregon, Pennsylvania*, South Carolina, Texas, Washington, Wisconsin ABD (MEDICAID ONLY DUAL-ELIGIBLE) Arizona, California, Florida, Kansas, Nebraska, New Hampshire, Ohio, Oregon, Pennsylvania*, Texas, Wisconsin LONG-TERM SERVICES & SUPPORTS Arizona, California, Florida, Illinois, Kansas, Ohio, Pennsylvania*, Texas * Pennsylvania Medicaid and ABD non-dual are expected to commence in Q2 2017. Managed care contract in Nevada is expected to commence in Q3 2017. Long-term Services and Supports for New Hampshire and Managed Service Organization (MSO) operations in Maryland are expected to commence in 2017. Pennsylvania Long-Term Services and Supports and ABD dual-eligible are expected to commence in FOSTER CARE California, Florida, Indiana, Kansas, Louisiana, Mississippi, Missouri, Nebraska, New Hampshire, Oregon, Texas, Washington MEDICARE Arizona, California, Florida, Georgia, Mississippi, Ohio, Oregon, Texas, Washington, Wisconsin MEDICAID-MEDICARE PLANS (INCLUDES LTSS) California, Illinois, Michigan, Ohio, South Carolina, Texas CORRECTIONAL HEALTHCARE California, Florida, Massachusetts, Minnesota, Mississippi, New Mexico, Tennessee, Vermont HEALTH INSURANCE MARKETPLACE Arizona, Arkansas, California, Florida, Georgia, Illinois, Indiana, Massachusetts, Mississippi, Nevada*, New Hampshire, Ohio, Texas, Washington COMMERCIAL INSURANCE Arizona, California, Oregon, Washington Q1 2018. Health Insurance Marketplace in Nevada is expected to commence in 2018. Pennsylvania and Nevada are pending regulatory approval. DISTRICT OF COLUMBIA PUERTO RICO US VIRGIN ISLANDS TRICARE** Connecticut, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, Wisconsin VA PROGRAMS Alabama, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, US Virgin Islands, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming TRICARE North Region until the second half of 2017, when we expect to start healthcare delivery for the West Region. ** In July 2016, it was announced that the Department of Defense awarded our wholly-owned subsidiary, Health Net Federal Services, the TRICARE West Region contract. We will continue to operate in the Company & Financial Summary CENTENE CORPORATION 7
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0.7340713269782789 ], "ocr": false, "ocr_confidence": 1, "text": "Island, South Carolina, South Dakota, US Virgin " }, { "bbox": [ 1.6795139686734069, 0.7359923931083294, 1.940457213158701, 0.7454368514244003 ], "ocr": false, "ocr_confidence": 1, "text": "Islands, Utah, Vermont, Virginia, West Virginia, " }, { "bbox": [ 1.678528031492545, 0.7473579175544508, 1.794680726294424, 0.7568023758705216 ], "ocr": false, "ocr_confidence": 1, "text": "Wisconsin, Wyoming" }, { "bbox": [ 1.6123751970677593, 0.9520018510144166, 1.9465417799606821, 0.9614462948808766 ], "ocr": false, "ocr_confidence": 1, "text": "Company & Financial Summary CENTENE CORPORATION 7" }, { "bbox": [ 1.0546808180466196, 0.8213251287286932, 1.058170991785386, 0.8241130173808396 ], "ocr": false, "ocr_confidence": 1, "text": "* " }, { "bbox": [ 1.0612821890637765, 0.820587755453707, 1.297661176693985, 0.8294766358654908 ], "ocr": false, "ocr_confidence": 1, "text": "Pennsylvania Medicaid and ABD non-dual are " }, { "bbox": [ 1.0612821890637765, 0.8319513918173433, 1.310759201548458, 0.8408402818622012 ], "ocr": false, "ocr_confidence": 1, "text": "expected to commence in Q2 2017. Managed care " }, { "bbox": [ 1.0612821890637765, 0.8433150281809797, 1.2995565576491013, 0.8521231063688645 ], "ocr": false, "ocr_confidence": 1, "text": "contract in Nevada is expected to commence in " }, { "bbox": [ 1.0615566478056067, 0.8546281583381422, 1.3153343450010213, 0.8635675545894739 ], "ocr": false, "ocr_confidence": 1, "text": "Q3 2017. Long-term Services and Supports for New " }, { "bbox": [ 1.0612821890637765, 0.8660423009082524, 1.3299486746195874, 0.8749311909531102 ], "ocr": false, "ocr_confidence": 1, "text": "Hampshire and Managed Service Organization (MSO) " }, { "bbox": [ 1.0612821890637765, 0.8774059372718888, 1.3290597753587112, 0.8862948273167466 ], "ocr": false, "ocr_confidence": 1, "text": "operations in Maryland are expected to commence in " }, { "bbox": [ 1.060890048157935, 0.8887695736355252, 1.326602312474469, 0.8976584636803829 ], "ocr": false, "ocr_confidence": 1, "text": "2017. Pennsylvania Long-Term Services and Supports " }, { "bbox": [ 1.0612821890637765, 0.9001332099991616, 1.3224323746425655, 0.9090221000440193 ], "ocr": false, "ocr_confidence": 1, "text": "and ABD dual-eligible are expected to commence in " }, { "bbox": [ 1.3687461902892668, 0.820587755453707, 1.6333212260327308, 0.8293958336415918 ], "ocr": false, "ocr_confidence": 1, "text": "Q1 2018. Health Insurance Marketplace in Nevada is " }, { "bbox": [ 1.3684717315474366, 0.8319513918173433, 1.6327200496897978, 0.8408402818622012 ], "ocr": false, "ocr_confidence": 1, "text": "expected to commence in 2018. Pennsylvania and " }, { "bbox": [ 1.3684717315474366, 0.8433150281809797, 1.5727463267207924, 0.8522039182258375 ], "ocr": false, "ocr_confidence": 1, "text": "Nevada are pending regulatory approval. " }, { "bbox": [ 1.369059942906199, 0.8667796741832386, 1.3770730012382557, 0.8695675532023112 ], "ocr": false, "ocr_confidence": 1, "text": "** " }, { "bbox": [ 1.3801840987859988, 0.8660423009082524, 1.641268861060049, 0.8749311909531102 ], "ocr": false, "ocr_confidence": 1, "text": "In July 2016, it was announced that the Department " }, { "bbox": [ 1.3801840987859988, 0.8773554310654149, 1.6310466691559435, 0.8862948273167466 ], "ocr": false, "ocr_confidence": 1, "text": "of Defense awarded our wholly-owned subsidiary, " }, { "bbox": [ 1.3801840987859988, 0.8887695736355252, 1.614863676183364, 0.8966786644675515 ], "ocr": false, "ocr_confidence": 1, "text": "Health Net Federal Services, the TRICARE West " }, { "bbox": [ 1.3801840987859988, 0.9001332099991616, 1.635713365342882, 0.9090221000440193 ], "ocr": false, "ocr_confidence": 1, "text": "Region contract. We will continue to operate in the " }, { "bbox": [ 1.690014010161356, 0.8205372588803069, 1.9474648868336397, 0.8294766358654908 ], "ocr": false, "ocr_confidence": 1, "text": "TRICARE North Region until the second half of 2017, " }, { "bbox": [ 1.6897527158649919, 0.8319008759777955, 1.9442623362821692, 0.8408402722291272 ], "ocr": false, "ocr_confidence": 1, "text": "when we expect to start healthcare delivery for the " }, { "bbox": [ 1.6903800216375613, 0.8433150185479058, 1.7548114053564134, 0.8522039085927636 ], "ocr": false, "ocr_confidence": 1, "text": "West Region." }, { "bbox": [ 1.838266011157067, 0.42143738871873027, 1.9464229010289011, 0.42685529920789933 ], "ocr": false, "ocr_confidence": 1, "text": "DISTRICT OF COLUMBIA" }, { "bbox": [ 1.8375770718443627, 0.43028459645280936, 1.900827644697202, 0.43569368304628314 ], "ocr": false, "ocr_confidence": 1, "text": "PUERTO RICO " }, { "bbox": [ 1.8374192979600694, 0.43892411511353774, 1.934417724609375, 0.4445355347912721 ], "ocr": false, "ocr_confidence": 1, "text": "US VIRGIN ISLANDS" } ]
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Managed care contract in Nevada is expected to commence in Q3 2017. Long-term Services and Supports for New Hampshire and Managed Service Organization (MSO) operations in Maryland are expected to commence in 2017. Pennsylvania Long-Term Services and Supports and ABD dual-eligible are expected to commence in" }, { "bbox": [ 1.3704263525071487, 0.5484217248781763, 1.610162473192402, 0.5926496332341974 ], "data": [], "index_in_doc": 284, "label": "text", "text": "FOSTER CARE California, Florida, Indiana, Kansas, Louisiana, Mississippi, Missouri, Nebraska, New Hampshire, Oregon, Texas, Washington" }, { "bbox": [ 1.3704244576248468, 0.6001894016458531, 1.602686963050194, 0.6324185458096591 ], "data": [], "index_in_doc": 285, "label": "text", "text": "MEDICARE Arizona, California, Florida, Georgia, Mississippi, Ohio, Oregon, Texas, Washington, Wisconsin" }, { "bbox": [ 1.3706525416156046, 0.6400372283627288, 1.635527467416003, 0.6711483579693418 ], "data": [], "index_in_doc": 286, "label": "text", "text": "MEDICAID-MEDICARE PLANS (INCLUDES LTSS) California, Illinois, Michigan, Ohio, South Carolina, Texas" }, { "bbox": [ 1.370833153818168, 0.6797348561913076, 1.6296634050755718, 0.7115561938045001 ], "data": [], "index_in_doc": 287, "label": "text", "text": "CORRECTIONAL HEALTHCARE California, Florida, Massachusetts, Minnesota, Mississippi, New Mexico, Tennessee, Vermont" }, { "bbox": [ 1.3704052096098855, 0.7201925528169882, 1.6341274485868567, 0.7643668049513691 ], "data": [], "index_in_doc": 288, "label": "text", "text": "HEALTH INSURANCE MARKETPLACE Arizona, Arkansas, California, Florida, Georgia, Illinois, Indiana, Massachusetts, Mississippi, Nevada*, New Hampshire, Ohio, Texas, Washington" }, { "bbox": [ 1.370833153818168, 0.771960229584665, 1.5749561584073735, 0.7927702123468573 ], "data": [], "index_in_doc": 289, "label": "text", "text": "COMMERCIAL INSURANCE Arizona, California, Oregon, Washington" }, { "bbox": [ 1.3684717315474366, 0.820587755453707, 1.6333212260327308, 0.8522039182258375 ], "data": [], "index_in_doc": 290, "label": "text", "text": "Q1 2018. Health Insurance Marketplace in Nevada is expected to commence in 2018. Pennsylvania and Nevada are pending regulatory approval." }, { "bbox": [ 1.8374192979600694, 0.42143738871873027, 1.9464229010289011, 0.4445355347912721 ], "data": [], "index_in_doc": 291, "label": "text", "text": "DISTRICT OF COLUMBIA PUERTO RICO US VIRGIN ISLANDS" }, { "bbox": [ 1.6785019020629084, 0.5484753618336687, 1.939999250025531, 0.6239772758098564 ], "data": [], "index_in_doc": 292, "label": "text", "text": "TRICARE** Connecticut, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, Wisconsin" }, { "bbox": [ 1.6785017026016136, 0.6337240970495975, 1.9438723894505718, 0.7568023758705216 ], "data": [], "index_in_doc": 293, "label": "text", "text": "VA PROGRAMS Alabama, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, US Virgin Islands, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming" }, { "bbox": [ 1.6897527158649919, 0.8205372588803069, 1.9474648868336397, 0.8522039085927636 ], "data": [], "index_in_doc": 294, "label": "text", "text": "TRICARE North Region until the second half of 2017, when we expect to start healthcare delivery for the West Region." }, { "bbox": [ 1.369059942906199, 0.8660423009082524, 1.641268861060049, 0.9090221000440193 ], "data": [], "index_in_doc": 295, "label": "text", "text": "** In July 2016, it was announced that the Department of Defense awarded our wholly-owned subsidiary, Health Net Federal Services, the TRICARE West Region contract. We will continue to operate in the" }, { "bbox": [ 1.6123751970677593, 0.9520018510144166, 1.9465417799606821, 0.9614462948808766 ], "data": [], "index_in_doc": 296, "label": "text", "text": "Company & Financial Summary CENTENE CORPORATION 7" } ]
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FINANCIAL HIGHLIGHTS FROM CONTINUING OPERATIONS (in millions) - 559 40,607 - 356 268 22,760 - 8,110 10,863 16,560 - 2016 2016 2012 2014 2013 2015 Total Revenues 2015 2014 2013 Net Earnings (1) (in millions) (in millions) - (1) Attributable to Centene Corporation - 11,442 - 161 89 5,108 4,061 2,880 2,582 2012 2016 2015 2014 2013 2012 Managed Care Membership (in thousands) GROUP & PRODUCT SOLUTIONS (by state)* MEDICAID/CHIP Arizona, Arkansas (Private Option), California, Florida, Georgia, Illinois, Indiana, Kansas, Louisiana, Maryland*, Massachusetts, Mississippi, Missouri, Nebraska, Nevada*, New Hampshire, Ohio, Oregon, Pennsylvania*, South Carolina, Texas, Washington, Wisconsin ABD (NON-DUAL) Arizona, California, Florida, Illinois, Indiana, Kansas, Louisiana, Maryland*, Mississippi, Nebraska, New Hampshire, Ohio, Oregon, Pennsylvania*, South Carolina, Texas, Washington, Wisconsin ABD (MEDICAID ONLY DUAL-ELIGIBLE) Arizona, California, Florida, Kansas, Nebraska, New Hampshire, Ohio, Oregon, Pennsylvania*, Texas, Wisconsin LONG-TERM SERVICES & SUPPORTS Arizona, California, Florida, Illinois, Kansas, Ohio, Pennsylvania*, Texas * Pennsylvania Medicaid and ABD non-dual are expected to commence in Q2 2017. Managed care contract in Nevada is expected to commence in Q3 2017. Long-term Services and Supports for New Hampshire and Managed Service Organization (MSO) operations in Maryland are expected to commence in 2017. Pennsylvania Long-Term Services and Supports and ABD dual-eligible are expected to commence in FOSTER CARE California, Florida, Indiana, Kansas, Louisiana, Mississippi, Missouri, Nebraska, New Hampshire, Oregon, Texas, Washington MEDICARE Arizona, California, Florida, Georgia, Mississippi, Ohio, Oregon, Texas, Washington, Wisconsin MEDICAID-MEDICARE PLANS (INCLUDES LTSS) California, Illinois, Michigan, Ohio, South Carolina, Texas CORRECTIONAL HEALTHCARE California, Florida, Massachusetts, Minnesota, Mississippi, New Mexico, Tennessee, Vermont HEALTH INSURANCE MARKETPLACE Arizona, Arkansas, California, Florida, Georgia, Illinois, Indiana, Massachusetts, Mississippi, Nevada*, New Hampshire, Ohio, Texas, Washington COMMERCIAL INSURANCE Arizona, California, Oregon, Washington Q1 2018. Health Insurance Marketplace in Nevada is expected to commence in 2018. Pennsylvania and Nevada are pending regulatory approval. DISTRICT OF COLUMBIA PUERTO RICO US VIRGIN ISLANDS TRICARE** Connecticut, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, Wisconsin VA PROGRAMS Alabama, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, US Virgin Islands, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming TRICARE North Region until the second half of 2017, when we expect to start healthcare delivery for the West Region. ** In July 2016, it was announced that the Department of Defense awarded our wholly-owned subsidiary, Health Net Federal Services, the TRICARE West Region contract. We will continue to operate in the Company & Financial Summary CENTENE CORPORATION 7
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"ocr": false, "ocr_confidence": 1, "text": "York, North Carolina, Ohio, Pennsylvania, " }, { "bbox": [ 1.6795157638250613, 0.6053030225965712, 1.939999250025531, 0.6147474809126421 ], "ocr": false, "ocr_confidence": 1, "text": "Rhode Island, Vermont, Virginia, West Virginia, " }, { "bbox": [ 1.6785298266441993, 0.6166685470426926, 1.7345575070848651, 0.6239772758098564 ], "ocr": false, "ocr_confidence": 1, "text": "Wisconsin" }, { "bbox": [ 1.6785017026016136, 0.6337240970495975, 1.880819682202308, 0.6421060658464528 ], "ocr": false, "ocr_confidence": 1, "text": "VA PROGRAMS Alabama, Colorado, " }, { "bbox": [ 1.6789724312576593, 0.6450145220515704, 1.9280251895680147, 0.6534715902925742 ], "ocr": false, "ocr_confidence": 1, "text": "Connecticut, Delaware, District of Columbia, " }, { "bbox": [ 1.6795139686734069, 0.6564336834531842, 1.902872322431577, 0.6658781417692551 ], "ocr": false, "ocr_confidence": 1, "text": "Florida, Georgia, Idaho, Illinois, Indiana, " }, { "bbox": [ 1.6795139686734069, 0.6677992078993056, 1.9124446694367851, 0.6772114724823923 ], "ocr": false, "ocr_confidence": 1, "text": "Iowa, Kansas, Kentucky, Maine, Maryland, " }, { "bbox": [ 1.6795139686734069, 0.6791647516115747, 1.9411946215660743, 0.6886092099276456 ], "ocr": false, "ocr_confidence": 1, "text": "Massachusetts, Michigan, Minnesota, Missouri, " }, { "bbox": [ 1.6795139686734069, 0.6905302760576961, 1.9366931790619895, 0.6998888651529948 ], "ocr": false, "ocr_confidence": 1, "text": "Montana, Nebraska, Nevada, New Hampshire, " }, { "bbox": [ 1.6795139686734069, 0.7018958197699653, 1.9299168804891749, 0.711308084353052 ], "ocr": false, "ocr_confidence": 1, "text": "New Jersey, New York, North Carolina, North " }, { "bbox": [ 1.6795139686734069, 0.7132613442160867, 1.9438723894505718, 0.7226736087991734 ], "ocr": false, "ocr_confidence": 1, "text": "Dakota, Ohio, Pennsylvania, Puerto Rico, Rhode " }, { "bbox": [ 1.6795139686734069, 0.724626868662208, 1.9401376761642157, 0.7340713269782789 ], "ocr": false, "ocr_confidence": 1, "text": "Island, South Carolina, South Dakota, US Virgin " }, { "bbox": [ 1.6795139686734069, 0.7359923931083294, 1.940457213158701, 0.7454368514244003 ], "ocr": false, "ocr_confidence": 1, "text": "Islands, Utah, Vermont, Virginia, West Virginia, " }, { "bbox": [ 1.678528031492545, 0.7473579175544508, 1.794680726294424, 0.7568023758705216 ], "ocr": false, "ocr_confidence": 1, "text": "Wisconsin, Wyoming" }, { "bbox": [ 1.6123751970677593, 0.9520018510144166, 1.9465417799606821, 0.9614462948808766 ], "ocr": false, "ocr_confidence": 1, "text": "Company & Financial Summary CENTENE CORPORATION 7" }, { "bbox": [ 1.0546808180466196, 0.8213251287286932, 1.058170991785386, 0.8241130173808396 ], "ocr": false, "ocr_confidence": 1, "text": "* " }, { "bbox": [ 1.0612821890637765, 0.820587755453707, 1.297661176693985, 0.8294766358654908 ], "ocr": false, "ocr_confidence": 1, "text": "Pennsylvania Medicaid and ABD non-dual are " }, { "bbox": [ 1.0612821890637765, 0.8319513918173433, 1.310759201548458, 0.8408402818622012 ], "ocr": false, "ocr_confidence": 1, "text": "expected to commence in Q2 2017. Managed care " }, { "bbox": [ 1.0612821890637765, 0.8433150281809797, 1.2995565576491013, 0.8521231063688645 ], "ocr": false, "ocr_confidence": 1, "text": "contract in Nevada is expected to commence in " }, { "bbox": [ 1.0615566478056067, 0.8546281583381422, 1.3153343450010213, 0.8635675545894739 ], "ocr": false, "ocr_confidence": 1, "text": "Q3 2017. Long-term Services and Supports for New " }, { "bbox": [ 1.0612821890637765, 0.8660423009082524, 1.3299486746195874, 0.8749311909531102 ], "ocr": false, "ocr_confidence": 1, "text": "Hampshire and Managed Service Organization (MSO) " }, { "bbox": [ 1.0612821890637765, 0.8774059372718888, 1.3290597753587112, 0.8862948273167466 ], "ocr": false, "ocr_confidence": 1, "text": "operations in Maryland are expected to commence in " }, { "bbox": [ 1.060890048157935, 0.8887695736355252, 1.326602312474469, 0.8976584636803829 ], "ocr": false, "ocr_confidence": 1, "text": "2017. Pennsylvania Long-Term Services and Supports " }, { "bbox": [ 1.0612821890637765, 0.9001332099991616, 1.3224323746425655, 0.9090221000440193 ], "ocr": false, "ocr_confidence": 1, "text": "and ABD dual-eligible are expected to commence in " }, { "bbox": [ 1.3687461902892668, 0.820587755453707, 1.6333212260327308, 0.8293958336415918 ], "ocr": false, "ocr_confidence": 1, "text": "Q1 2018. Health Insurance Marketplace in Nevada is " }, { "bbox": [ 1.3684717315474366, 0.8319513918173433, 1.6327200496897978, 0.8408402818622012 ], "ocr": false, "ocr_confidence": 1, "text": "expected to commence in 2018. Pennsylvania and " }, { "bbox": [ 1.3684717315474366, 0.8433150281809797, 1.5727463267207924, 0.8522039182258375 ], "ocr": false, "ocr_confidence": 1, "text": "Nevada are pending regulatory approval. " }, { "bbox": [ 1.369059942906199, 0.8667796741832386, 1.3770730012382557, 0.8695675532023112 ], "ocr": false, "ocr_confidence": 1, "text": "** " }, { "bbox": [ 1.3801840987859988, 0.8660423009082524, 1.641268861060049, 0.8749311909531102 ], "ocr": false, "ocr_confidence": 1, "text": "In July 2016, it was announced that the Department " }, { "bbox": [ 1.3801840987859988, 0.8773554310654149, 1.6310466691559435, 0.8862948273167466 ], "ocr": false, "ocr_confidence": 1, "text": "of Defense awarded our wholly-owned subsidiary, " }, { "bbox": [ 1.3801840987859988, 0.8887695736355252, 1.614863676183364, 0.8966786644675515 ], "ocr": false, "ocr_confidence": 1, "text": "Health Net Federal Services, the TRICARE West " }, { "bbox": [ 1.3801840987859988, 0.9001332099991616, 1.635713365342882, 0.9090221000440193 ], "ocr": false, "ocr_confidence": 1, "text": "Region contract. We will continue to operate in the " }, { "bbox": [ 1.690014010161356, 0.8205372588803069, 1.9474648868336397, 0.8294766358654908 ], "ocr": false, "ocr_confidence": 1, "text": "TRICARE North Region until the second half of 2017, " }, { "bbox": [ 1.6897527158649919, 0.8319008759777955, 1.9442623362821692, 0.8408402722291272 ], "ocr": false, "ocr_confidence": 1, "text": "when we expect to start healthcare delivery for the " }, { "bbox": [ 1.6903800216375613, 0.8433150185479058, 1.7548114053564134, 0.8522039085927636 ], "ocr": false, "ocr_confidence": 1, "text": "West Region." }, { "bbox": [ 1.838266011157067, 0.42143738871873027, 1.9464229010289011, 0.42685529920789933 ], "ocr": false, "ocr_confidence": 1, "text": "DISTRICT OF COLUMBIA" }, { "bbox": [ 1.8375770718443627, 0.43028459645280936, 1.900827644697202, 0.43569368304628314 ], "ocr": false, "ocr_confidence": 1, "text": "PUERTO RICO " }, { "bbox": [ 1.8374192979600694, 0.43892411511353774, 1.934417724609375, 0.4445355347912721 ], "ocr": false, "ocr_confidence": 1, "text": "US VIRGIN ISLANDS" } ]
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0.6475636600668914, 0.7772928681036438 ], "data": [], "index_in_doc": 308, "label": "text", "text": "2014" }, { "bbox": [ 0.6584404340756485, 0.7709178731899069, 0.6833926431493822, 0.7772928681036438 ], "data": [], "index_in_doc": 309, "label": "text", "text": "2013" }, { "bbox": [ 0.5493963902292688, 0.8042801751030816, 0.6374818889144199, 0.8148761325412326 ], "data": [], "index_in_doc": 310, "label": "text", "text": "Net Earnings (1)" }, { "bbox": [ 0.3393503326216554, 0.81792536648837, 0.6336857914145476, 0.8526182848997791 ], "data": [], "index_in_doc": 311, "label": "text", "text": "(in millions) (in millions)" }, { "bbox": [ 0.3384150586097069, 0.8652272079930161, 0.6413171306934232, 0.9088976310961174 ], "data": [], "index_in_doc": 312, "label": "text", "text": "- (1) Attributable to Centene Corporation" }, { "bbox": [ 0.6609275169621885, 0.5472137374107284, 0.9400826248468137, 0.6248388964720447 ], "data": [], "index_in_doc": 313, "label": "text", "text": "- 11,442" }, { 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"bbox": [ 0.9056833304610907, 0.7704630572386463, 0.9307164210899204, 0.7768380521523832 ], "data": [], "index_in_doc": 320, "label": "text", "text": "2012" }, { "bbox": [ 0.7601833468169169, 0.8044440722224688, 0.8440657472298816, 0.8144213358561198 ], "data": [], "index_in_doc": 321, "label": "text", "text": "Managed Care" }, { "bbox": [ 0.6882581523820466, 0.8156599757647274, 0.9480737424364277, 0.8527211661290641 ], "data": [], "index_in_doc": 322, "label": "text", "text": "Membership (in thousands)" }, { "bbox": [ 1.0478608374502145, 0.35387597902856693, 1.1840846242468341, 0.37422950821693496 ], "data": [], "index_in_doc": 323, "label": "text", "text": "GROUP & PRODUCT SOLUTIONS" }, { "bbox": [ 1.0478595409517975, 0.3795476971250592, 1.1062761693218954, 0.38897069295247394 ], "data": [], "index_in_doc": 324, "label": "text", "text": "(by state)*" }, { "bbox": [ 1.0626783183976716, 0.5484753618336687, 1.3249962501276553, 0.6261130053587635 ], "data": [], "index_in_doc": 325, "label": "text", "text": "MEDICAID/CHIP Arizona, Arkansas (Private Option), California, Florida, Georgia, Illinois, Indiana, Kansas, Louisiana, Maryland*, Massachusetts, Mississippi, Missouri, Nebraska, Nevada*, New Hampshire, Ohio, Oregon, Pennsylvania*, South Carolina, Texas, Washington, Wisconsin" }, { "bbox": [ 1.062654283311632, 0.633648997605449, 1.3229129766327103, 0.6898648811109138 ], "data": [], "index_in_doc": 326, "label": "text", "text": "ABD (NON-DUAL) Arizona, California, Florida, Illinois, Indiana, Kansas, Louisiana, Maryland*, Mississippi, Nebraska, New Hampshire, Ohio, Oregon, Pennsylvania*, South Carolina, Texas, Washington, Wisconsin" }, { "bbox": [ 1.062654283311632, 0.6974867618445194, 1.3225403829337725, 0.7405965978449042 ], "data": [], "index_in_doc": 327, "label": "text", "text": "ABD (MEDICAID ONLY DUAL-ELIGIBLE) Arizona, California, Florida, Kansas, Nebraska, New Hampshire, Ohio, Oregon, Pennsylvania*, Texas, Wisconsin" }, { "bbox": [ 1.062654283311632, 0.7499627585362907, 1.3062083923738765, 0.7820076027301827 ], "data": [], "index_in_doc": 328, "label": "text", "text": "LONG-TERM SERVICES & SUPPORTS Arizona, California, Florida, Illinois, Kansas, Ohio, Pennsylvania*, Texas" }, { "bbox": [ 1.0546808180466196, 0.820587755453707, 1.3299486746195874, 0.9090221000440193 ], "data": [], "index_in_doc": 329, "label": "text", "text": "* Pennsylvania Medicaid and ABD non-dual are expected to commence in Q2 2017. Managed care contract in Nevada is expected to commence in Q3 2017. Long-term Services and Supports for New Hampshire and Managed Service Organization (MSO) operations in Maryland are expected to commence in 2017. Pennsylvania Long-Term Services and Supports and ABD dual-eligible are expected to commence in" }, { "bbox": [ 1.3704263525071487, 0.5484217248781763, 1.610162473192402, 0.5926496332341974 ], "data": [], "index_in_doc": 330, "label": "text", "text": "FOSTER CARE California, Florida, Indiana, Kansas, Louisiana, Mississippi, Missouri, Nebraska, New Hampshire, Oregon, Texas, Washington" }, { "bbox": [ 1.3704244576248468, 0.6001894016458531, 1.602686963050194, 0.6324185458096591 ], "data": [], "index_in_doc": 331, "label": "text", "text": "MEDICARE Arizona, California, Florida, Georgia, Mississippi, Ohio, Oregon, Texas, Washington, Wisconsin" }, { "bbox": [ 1.3706525416156046, 0.6400372283627288, 1.635527467416003, 0.6711483579693418 ], "data": [], "index_in_doc": 332, "label": "text", "text": "MEDICAID-MEDICARE PLANS (INCLUDES LTSS) California, Illinois, Michigan, Ohio, South Carolina, Texas" }, { "bbox": [ 1.370833153818168, 0.6797348561913076, 1.6296634050755718, 0.7115561938045001 ], "data": [], "index_in_doc": 333, "label": "text", "text": "CORRECTIONAL HEALTHCARE California, Florida, Massachusetts, Minnesota, Mississippi, New Mexico, Tennessee, Vermont" }, { "bbox": [ 1.3704052096098855, 0.7201925528169882, 1.6341274485868567, 0.7643668049513691 ], "data": [], "index_in_doc": 334, "label": "text", "text": "HEALTH INSURANCE MARKETPLACE Arizona, Arkansas, California, Florida, Georgia, Illinois, Indiana, Massachusetts, Mississippi, Nevada*, New Hampshire, Ohio, Texas, Washington" }, { "bbox": [ 1.370833153818168, 0.771960229584665, 1.5749561584073735, 0.7927702123468573 ], "data": [], "index_in_doc": 335, "label": "text", "text": "COMMERCIAL INSURANCE Arizona, California, Oregon, Washington" }, { "bbox": [ 1.3684717315474366, 0.820587755453707, 1.6333212260327308, 0.8522039182258375 ], "data": [], "index_in_doc": 336, "label": "text", "text": "Q1 2018. Health Insurance Marketplace in Nevada is expected to commence in 2018. Pennsylvania and Nevada are pending regulatory approval." }, { "bbox": [ 1.8374192979600694, 0.42143738871873027, 1.9464229010289011, 0.4445355347912721 ], "data": [], "index_in_doc": 337, "label": "text", "text": "DISTRICT OF COLUMBIA PUERTO RICO US VIRGIN ISLANDS" }, { "bbox": [ 1.6785019020629084, 0.5484753618336687, 1.939999250025531, 0.6239772758098564 ], "data": [], "index_in_doc": 338, "label": "text", "text": "TRICARE** Connecticut, Delaware, District of Columbia, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Missouri, New Hampshire, New Jersey, New York, North Carolina, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, Wisconsin" }, { "bbox": [ 1.6785017026016136, 0.6337240970495975, 1.9438723894505718, 0.7568023758705216 ], "data": [], "index_in_doc": 339, "label": "text", "text": "VA PROGRAMS Alabama, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, US Virgin Islands, Utah, Vermont, Virginia, West Virginia, Wisconsin, Wyoming" }, { "bbox": [ 1.6897527158649919, 0.8205372588803069, 1.9474648868336397, 0.8522039085927636 ], "data": [], "index_in_doc": 340, "label": "text", "text": "TRICARE North Region until the second half of 2017, when we expect to start healthcare delivery for the West Region." }, { "bbox": [ 1.369059942906199, 0.8660423009082524, 1.641268861060049, 0.9090221000440193 ], "data": [], "index_in_doc": 341, "label": "text", "text": "** In July 2016, it was announced that the Department of Defense awarded our wholly-owned subsidiary, Health Net Federal Services, the TRICARE West Region contract. We will continue to operate in the" }, { "bbox": [ 1.6123751970677593, 0.9520018510144166, 1.9465417799606821, 0.9614462948808766 ], "data": [], "index_in_doc": 342, "label": "text", "text": "Company & Financial Summary CENTENE CORPORATION 7" } ]
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2016 QUARTERLY HIGHLIGHTS JANUARY Centene announces a partnership with Washington University in St. Louis and Duke University to launch the Envolve Center for Health Behavior Change, a unique industry-academic partnership to foster sustainable change in health-related behaviors. FEBRUARY Centene receives a contract recommendation for Nebraska's new statewide Heritage Health Program through its subsidiary, Nebraska Total Care. Centurion reached a formal agreement to provide correctional healthcare services for the Florida Department of Corrections in Regions 1, 2 and 3 . MARCH Centene completed its acquisition of Health Net, Inc. for approximately $6.0 billion, including the assumption of debt - providing further diversification across markets and products including the addition of government-sponsored care under federal contracts with the Department of Defense and the U.S. Department of Veterans Affairs, as well as Medicare Advantage. RECOGNITIONS & ACCREDITATIONS Centene's Arkansas subsidiary receives Accreditation from the National Committee for Quality Assurance for its Health Insurance Marketplace Exchange plan. Centene is added to the Standard & Poor's 500 Index (S&P 500 ® ), a stock market index that is widely regarded as the best single gauge of large-cap U.S. equities chosen for market size, liquidity and industry grouping, among other factors. 8 CENTENE CORPORATION 2016 Highlights 2016 Highlights CENTENE CORPORATION 9 APRIL Centene appoints Mark Brooks as Senior Vice President and Chief Information Officer. Centene selected to provide Medicaid services in three zones in Pennsylvania. (The RFP was rescinded and Centene was re-issued the contract in January 2017.) Centurion is selected by the Mississippi Department of Corrections to provide correctional healthcare services to more than 17,000 inmates housed at facilities throughout the state. Centene celebrates the grand opening of its Ferguson Service Center, a $25 million investment bringing more than 250 jobs to the Ferguson, Missouri area. Centene's subsidiary, Coordinated Care, began operating as the sole contractor with the Washington State Health Care Authority to provide foster care services through the Apple Health Foster Care contract. Centene appoints Christopher Isaak as Senior Vice President, Corporate Controller and Chief Accounting Officer. MAY Centurion selected by the State of New Mexico Corrections Department to provide correctional medical healthcare services and pharmacy services to more than 7,000 offenders throughout the state under two separate contract awards. Centene specialty solutions division, Envolve, selected by Maryland Care, Inc. d/b/a/ Maryland Physicians Care MCO to provide health plan management services for its managed Medicaid operations in Maryland effective July 1, 2017 . JUNE Centene's Indiana subsidiary is selected by the Indiana Family & Social Services Administration to begin contract negotiations to provide risk-based managed care services for enrollees in the Healthy Indiana Plan and Hoosier Healthwise programs, commencing in January 2017. Centene receives the Hispanic Health Leadership Award by the National Hispanic Medical Association. The Health Net Federal Services call center operations earns the ranking of first place for large call centers (those with more than 250 fulltime representatives) in BenchmarkPortal's Top 100 Call Center Contest. At the Case In Point Platinum Awards, Centene and its specialty solutions division, Envolve, Inc. are honored with awards in five categories: Behavioral Health Case Management, Women/Children Case Management, Acute Care, Care Management, Disease Management/Population Health. Centene's Florida subsidiary receives Accreditation from the National Committee for Quality Assurance for its Medicaid and Health Insurance Marketplace Exchange plan, Ambetter from Sunshine Health. FORTUNE magazine lists Centene's position of #124 in its annual ranking of America's 500 largest companies by revenue. Q3 Q4 JULY The Department of Defense awards Centene's wholly-owned subsidiary, Health Net Federal Services, the TRICARE West Region contract. AUGUST Centene's Pennsylvania subsidiary is selected by the department of Human Services and Aging to serve enrollees in the Community HealthChoices program statewide. Expected contract commencement dates vary by zone, starting January 2018, and will be fully implemented by January 2019, pending regulatory approval. SEPTEMBER Centene files to continue its participation as a qualified health plan issuer in the Arizona Health Insurance Marketplace in 2017 . Envolve is honored at the National Health Information Awards, receiving the merit award for the pamphlet Brush with Wisdom , while Envolve PeopleCare's "Raising Well" campaign won gold in the Health Information Program category. FORTUNE magazine announced Centene's position of #470 in its annual ranking of the largest companies globally by revenue. OCTOBER State of Missouri awards Centene an expanded, statewide managed care contract for its Missouri subsidiary, expected to commence May 1, 2017 . NOVEMBER Centene's Nevada subsidiary is selected by the Department of Health and Human Services and the Division of Health Care Financing and Policy to serve Medicaid recipients enrolled in Nevada's Medicaid managed care program, expected to commence on July 1, 2017 , pending regulatory approval. The Georgia Department of Community Health (DCH) awards Centene's Georgia subsidiary, Peach State Health Plan, a statewide managed care contract to continue serving members enrolled in the Georgia Families managed care program. The contract is expected to become effective July 1, 2017 . Centene's Kansas subsidiary receives Accreditation with a Commendable status from the National Committee for Quality Assurance.
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care services through the Apple Health Foster Care contract." }, { "bbox": [ 0.5154011545617596, 0.4299826959166864, 0.888362211339614, 0.44014366226966933 ], "ocr": false, "ocr_confidence": 1, "text": "Centene appoints Christopher Isaak as Senior Vice President, " }, { "bbox": [ 0.5154011545617596, 0.44315692631885256, 0.8223743314057393, 0.453493099019985 ], "ocr": false, "ocr_confidence": 1, "text": "Corporate Controller and Chief Accounting Officer." }, { "bbox": [ 0.5158382241242851, 0.46706328729186397, 0.5415147270252502, 0.47375646263662013 ], "ocr": false, "ocr_confidence": 1, "text": "MAY " }, { "bbox": [ 0.5153860453686683, 0.4797618365046954, 0.9523881899765114, 0.4900629833491162 ], "ocr": false, "ocr_confidence": 1, "text": "Centurion selected by the State of New Mexico Corrections Department " }, { "bbox": [ 0.5148570241491779, 0.4930995979694405, 0.9211922439874387, 0.5033189792825719 ], "ocr": false, "ocr_confidence": 1, "text": "to provide correctional medical healthcare services and pharmacy " }, { "bbox": [ 0.5151593077416513, 0.5062738283716067, 0.9418081645092933, 0.5166100010727391 ], "ocr": false, "ocr_confidence": 1, "text": "services to more than 7,000 offenders throughout the state under two " }, { "bbox": [ 0.5151593077416513, 0.5196115898363518, 0.6744331908381842, 0.5297725561893347 ], "ocr": false, "ocr_confidence": 1, "text": "separate contract awards." }, { "bbox": [ 0.5153860453686683, 0.5372940602928701, 0.9269659503612643, 0.5475134416060015 ], "ocr": false, "ocr_confidence": 1, "text": "Centene specialty solutions division, Envolve, selected by Maryland " }, { "bbox": [ 0.5153860453686683, 0.5505383424084596, 0.9471890318627451, 0.5607694375394571 ], "ocr": false, "ocr_confidence": 1, "text": "Care, Inc. d/b/a/ Maryland Physicians Care MCO to provide health plan " }, { "bbox": [ 0.5158394707573785, 0.5637242866284919, 0.9505595288245506, 0.5740604593296244 ], "ocr": false, "ocr_confidence": 1, "text": "management services for its managed Medicaid operations in Maryland " }, { "bbox": [ 0.5153860453686683, 0.5769802825619476, 0.6373288522358813, 0.5872814294063684 ], "ocr": false, "ocr_confidence": 1, "text": "effective July 1, 2017" }, { "bbox": [ 0.6377822776245915, 0.583485651497889, 0.6396564658171211, 0.5849222125429095 ], "ocr": false, "ocr_confidence": 1, "text": "." }, { "bbox": [ 0.5147058823529411, 0.6009016711302478, 0.5474264606151705, 0.6077198452419705 ], "ocr": false, "ocr_confidence": 1, "text": "JUNE " }, { "bbox": [ 0.5153860453686683, 0.6135768697719381, 0.9335268307355494, 0.6239013671875 ], "ocr": false, "ocr_confidence": 1, "text": "Centene’s Indiana subsidiary is selected by the Indiana Family & Social " }, { "bbox": [ 0.5151593077416513, 0.6269379818078243, 0.9039601843341504, 0.6371923889776673 ], "ocr": false, "ocr_confidence": 1, "text": "Services Administration to begin contract negotiations to provide " }, { "bbox": [ 0.5158394707573785, 0.6401122122099905, 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Expected contract commencement " }, { "bbox": [ 1.0477389665990093, 0.31056506224352903, 1.403743070714614, 0.32090127347695707 ], "ocr": false, "ocr_confidence": 1, "text": "dates vary by zone, starting January 2018, and will be fully " }, { "bbox": [ 1.047950595032935, 0.32390278517597854, 1.4155172709546058, 0.3341572308781171 ], "ocr": false, "ocr_confidence": 1, "text": "implemented by January 2019, pending regulatory approval." }, { "bbox": [ 1.0473823298036662, 0.3475973726523043, 1.1199411629072202, 0.35456327958540484 ], "ocr": false, "ocr_confidence": 1, "text": "SEPTEMBER " }, { "bbox": [ 1.0477389665990093, 0.36044365468651357, 1.447697159511591, 0.370686386570786 ], "ocr": false, "ocr_confidence": 1, "text": "Centene files to continue its participation as a qualified health plan " }, { "bbox": [ 1.047950595032935, 0.3737814161512587, 1.3958835975796569, 0.3839423825042416 ], "ocr": false, "ocr_confidence": 1, "text": "issuer in the Arizona Health Insurance Marketplace in 2017" }, { "bbox": [ 1.3963369731030433, 0.3802050195559107, 1.3982112111608966, 0.3816415806009312 ], "ocr": false, "ocr_confidence": 1, "text": ". " }, { "bbox": [ 1.5091702330346202, 0.2080884220624211, 1.5670231837852329, 0.21504296196831596 ], "ocr": false, "ocr_confidence": 1, "text": "OCTOBER" }, { "bbox": [ 1.5090207367940667, 0.2209232985371291, 1.8620172637739991, 0.23116610748599273 ], "ocr": false, "ocr_confidence": 1, "text": "State of Missouri awards Centene an expanded, statewide " }, { "bbox": [ 1.5097008000791463, 0.23417933300288038, 1.8900377859477124, 0.2445155442363084 ], "ocr": false, "ocr_confidence": 1, "text": "managed care contract for its Missouri subsidiary, expected to " }, { "bbox": [ 1.5092474245557599, 0.24829956979462595, 1.6467126584520526, 0.2577364372484612 ], "ocr": false, "ocr_confidence": 1, "text": "commence May 1, 2017" }, { "bbox": [ 1.6471661337060866, 0.25394069787227747, 1.64904037176394, 0.25537725891729796 ], "ocr": false, "ocr_confidence": 1, "text": "." }, { "bbox": [ 1.5096996033113765, 0.2712197351937342, 1.578920152452257, 0.2781742750996291 ], "ocr": false, "ocr_confidence": 1, "text": "NOVEMBER " }, { "bbox": [ 1.5092474245557599, 0.28403126109730115, 1.9314557243795956, 0.294355758512863 ], "ocr": false, "ocr_confidence": 1, "text": "Centene’s Nevada subsidiary is selected by the Department of Health " }, { "bbox": [ 1.5091718287249796, 0.2973106461341935, 1.9144490559895833, 0.30764685736762154 ], "ocr": false, "ocr_confidence": 1, "text": "and Human Services and the Division of Health Care Financing and " }, { "bbox": [ 1.5098519917407067, 0.3105432529642124, 1.9065866906658497, 0.32086775037977433 ], "ocr": false, "ocr_confidence": 1, "text": "Policy to serve Medicaid recipients enrolled in Nevada’s Medicaid " }, { "bbox": [ 1.5097008000791463, 0.32390440353239425, 1.8919725605085784, 0.3341588492345328 ], "ocr": false, "ocr_confidence": 1, "text": "managed care program, expected to commence on July 1, 2017" }, { "bbox": [ 1.8921249489379084, 0.33044479832504736, 1.8942559934129901, 0.3329909353545218 ], "ocr": false, "ocr_confidence": 1, "text": ", " }, { "bbox": [ 1.5097008000791463, 0.3371603609335543, 1.6856021257786968, 0.34741480663569285 ], "ocr": false, "ocr_confidence": 1, "text": "pending regulatory approval." }, { "bbox": [ 1.5087184532015931, 0.35473775381993766, 1.94375590405433, 0.3650972770922112 ], "ocr": false, "ocr_confidence": 1, "text": "The Georgia Department of Community Health (DCH) awards Centene’s " }, { "bbox": [ 1.5092474245557599, 0.36809886585582385, 1.9440898022620507, 0.37835327302566685 ], "ocr": false, "ocr_confidence": 1, "text": "Georgia subsidiary, Peach State Health Plan, a statewide managed care " }, { "bbox": [ 1.5092474245557599, 0.3813548617892795, 1.9400678647109886, 0.39160926895912246 ], "ocr": false, "ocr_confidence": 1, "text": "contract to continue serving members enrolled in the Georgia Families " }, { "bbox": [ 1.5097008000791463, 0.3945290921914457, 1.9331441642412173, 0.4048652648925781 ], "ocr": false, "ocr_confidence": 1, "text": "managed care program. The contract is expected to become effective " }, { "bbox": [ 1.5085672615400327, 0.4078668536561908, 1.5756448982587827, 0.4180862349693221 ], "ocr": false, "ocr_confidence": 1, "text": "July 1, 2017" }, { "bbox": [ 1.5760982737821692, 0.4142904570608428, 1.5779725118400225, 0.4157270181058633 ], "ocr": false, "ocr_confidence": 1, "text": "." }, { "bbox": [ 0.052941178963854425, 0.20822474932429766, 0.11260294446758196, 0.21504296196831596 ], "ocr": false, "ocr_confidence": 1, "text": "JANUARY " }, { "bbox": [ 0.05362132328008515, 0.22100506406841855, 0.43454906987208947, 0.23125950977055712 ], "ocr": false, "ocr_confidence": 1, "text": "Centene announces a partnership with Washington University in " }, { "bbox": [ 0.05339461058573006, 0.23417933300288038, 0.4639768413468903, 0.24448047984730115 ], "ocr": false, "ocr_confidence": 1, "text": "St. Louis and Duke University to launch the Envolve Center for Health " }, { "bbox": [ 0.05422590293136297, 0.24743529040404041, 0.4556170694189134, 0.2577715016374684 ], "ocr": false, "ocr_confidence": 1, "text": "Behavior Change, a unique industry-academic partnership to foster " }, { "bbox": [ 0.05339461058573006, 0.2607730904010811, 0.33734704310597935, 0.2710275361032197 ], "ocr": false, "ocr_confidence": 1, "text": "sustainable change in health-related behaviors." }, { "bbox": [ 0.05407353320152931, 0.2846136382131865, 0.11876470279070286, 0.29143185085720485 ], "ocr": false, "ocr_confidence": 1, "text": "FEBRUARY " }, { "bbox": [ 0.05362132328008515, 0.2972888368548769, 0.44245237462660847, 0.30532420765269885 ], "ocr": false, "ocr_confidence": 1, "text": "Centene receives a contract recommendation for Nebraska’s new " }, { "bbox": [ 0.05339461058573006, 0.3106499874230587, 0.4600152907028697, 0.3209044331251973 ], "ocr": false, "ocr_confidence": 1, "text": "statewide Heritage Health Program through its subsidiary, Nebraska " }, { "bbox": [ 0.05309232076009115, 0.32390594482421875, 0.11630065768372778, 0.3318361995196102 ], "ocr": false, "ocr_confidence": 1, "text": "Total Care." }, { "bbox": [ 0.05362132328008515, 0.3415066497494476, 0.4255862765842014, 0.35184286098287565 ], "ocr": false, "ocr_confidence": 1, "text": "Centurion reached a formal agreement to provide correctional " }, { "bbox": [ 0.054074754901960786, 0.3547626456829033, 0.4344719282162735, 0.36500537756717566 ], "ocr": false, "ocr_confidence": 1, "text": "healthcare services for the Florida Department of Corrections in " }, { "bbox": [ 0.05422590293136297, 0.368100445679944, 0.15747222401737387, 0.3783548528497869 ], "ocr": false, "ocr_confidence": 1, "text": "Regions 1, 2 and 3" }, { "bbox": [ 0.15921036714042713, 0.37452404908459597, 0.16108455533295676, 0.37596061012961646 ], "ocr": false, "ocr_confidence": 1, "text": "." }, { "bbox": [ 0.05407353320152931, 0.3918006588714291, 0.09835294337054483, 0.398755198777324 ], "ocr": false, "ocr_confidence": 1, "text": "MARCH " }, { "bbox": [ 0.05362132328008515, 0.40463557387843274, 0.47023095024956596, 0.41493672072285354 ], "ocr": false, "ocr_confidence": 1, "text": "Centene completed its acquisition of Health Net, Inc. for approximately " }, { "bbox": [ 0.053470181483848425, 0.4178915698118884, 0.4540920880884906, 0.4282277425130208 ], "ocr": false, "ocr_confidence": 1, "text": "$6.0 billion, including the assumption of debt — providing further " }, { "bbox": [ 0.05362132328008515, 0.4311475657453441, 0.4580974703520731, 0.4414837384464765 ], "ocr": false, "ocr_confidence": 1, "text": "diversification across markets and products including the addition " }, { "bbox": [ 0.05362132328008515, 0.44440356167879974, 0.44174373851102944, 0.45473973437993215 ], "ocr": false, "ocr_confidence": 1, "text": "of government-sponsored care under federal contracts with the " }, { "bbox": [ 0.05422590293136297, 0.45765955761225535, 0.46914458430670447, 0.4679022894965278 ], "ocr": false, "ocr_confidence": 1, "text": "Department of Defense and the U.S. Department of Veterans Affairs, " }, { "bbox": [ 0.05354575238196679, 0.4709973190770005, 0.24401571236404718, 0.4812517262468434 ], "ocr": false, "ocr_confidence": 1, "text": "as well as Medicare Advantage." }, { "bbox": [ 0.052336599312576594, 0.11275227864583333, 0.2643628587909773, 0.12249979346689552 ], "ocr": false, "ocr_confidence": 1, "text": "2016 QUARTERLY HIGHLIGHTS" }, { "bbox": [ 1.0483133153977737, 0.719226451835247, 1.4269436106962317, 0.7284297365130801 ], "ocr": false, "ocr_confidence": 1, "text": "Envolve is honored at the National Health Information Awards, " }, { "bbox": [ 1.0481470644084456, 0.7324824477687026, 1.4299665463516136, 0.742818620469835 ], "ocr": false, "ocr_confidence": 1, "text": "receiving the merit award for the pamphlet Brush with Wisdom" }, { "bbox": [ 1.4314778645833333, 0.7389527715817846, 1.4337752597783906, 0.7416857324465357 ], "ocr": false, "ocr_confidence": 1, "text": ", " }, { "bbox": [ 1.0472099952448428, 0.7457033985792988, 1.4363598792381536, 0.7560746164032908 ], "ocr": false, "ocr_confidence": 1, "text": "while Envolve PeopleCare’s “Raising Well” campaign won gold in " }, { "bbox": [ 1.0472099952448428, 0.758994439635614, 1.299952588050194, 0.7693306123367464 ], "ocr": false, "ocr_confidence": 1, "text": "the Health Information Program category." }, { "bbox": [ 1.0475865781696794, 0.7772829460375237, 1.4446977602890114, 0.7868132543082189 ], "ocr": false, "ocr_confidence": 1, "text": "FORTUNE magazine announced Centene’s position of #470 in its annual " }, { "bbox": [ 1.0480588027854372, 0.7905695558798433, 1.3450158811083026, 0.8000676704175544 ], "ocr": false, "ocr_confidence": 1, "text": "ranking of the largest companies globally by revenue. " }, { "bbox": [ 1.5092319663054024, 0.7191914067123876, 1.9413519965277777, 0.72952757941352 ], "ocr": false, "ocr_confidence": 1, "text": "Centene’s Kansas subsidiary receives Accreditation with a Commendable " }, { "bbox": [ 1.5089750601575265, 0.7324824477687026, 1.8654158847783906, 0.7427835753469756 ], "ocr": false, "ocr_confidence": 1, "text": "status from the National Committee for Quality Assurance." } ]
[ { "bbox": [ 0.050528532539317814, 0.11161156856652463, 0.2652306899525761, 0.12286446311257103 ], "data": [], "index_in_doc": 343, "label": "section_header", "text": "2016 QUARTERLY HIGHLIGHTS" }, { "bbox": [ 0.051550070444742836, 0.15412178424873738, 0.11486923616696028, 0.19800960656368372 ], "data": [], "index_in_doc": 344, "label": "picture", "text": "" }, { "bbox": [ 0.5142039878695619, 0.15455642854324494, 0.5733924317204095, 0.19669488463738952 ], "data": [], "index_in_doc": 345, "label": "picture", "text": "" }, { "bbox": [ 0.11305787828233507, 0.15398430101799243, 0.49164386824065565, 0.19888768051609848 ], "data": [], "index_in_doc": 346, "label": "picture", "text": "" }, { "bbox": [ 0.05184585596221725, 0.20675011837121213, 0.11327424392201542, 0.21513073853772097 ], "data": [], "index_in_doc": 347, "label": "section_header", "text": "JANUARY" }, { "bbox": [ 0.05192743251526278, 0.2202089097764757, 0.46438319386999594, 0.2710275361032197 ], "data": [], "index_in_doc": 348, "label": "text", "text": "Centene announces a partnership with Washington University in St. Louis and Duke University to launch the Envolve Center for Health Behavior Change, a unique industry-academic partnership to foster sustainable change in health-related behaviors." }, { "bbox": [ 0.05176678825827206, 0.283470924454506, 0.11936529321608201, 0.29178788926866317 ], "data": [], "index_in_doc": 349, "label": "section_header", "text": "FEBRUARY" }, { "bbox": [ 0.05198319129694521, 0.2968748458708175, 0.4600152907028697, 0.3326566291577888 ], "data": [], "index_in_doc": 350, "label": "text", "text": "Centene receives a contract recommendation for Nebraska's new statewide Heritage Health Program through its subsidiary, Nebraska Total Care." }, { "bbox": [ 0.05162988612854403, 0.34083634193497475, 0.43484487097247754, 0.3790554085163155 ], "data": [], "index_in_doc": 351, "label": "text", "text": "Centurion reached a formal agreement to provide correctional healthcare services for the Florida Department of Corrections in Regions 1, 2 and 3 ." }, { "bbox": [ 0.05201120625913533, 0.3909877815631905, 0.09935920067082822, 0.39953432179460624 ], "data": [], "index_in_doc": 352, "label": "section_header", "text": "MARCH" }, { "bbox": [ 0.05165223825990764, 0.40378004131895123, 0.47162024803410946, 0.48136196714459045 ], "data": [], "index_in_doc": 353, "label": "text", "text": "Centene completed its acquisition of Health Net, Inc. for approximately $6.0 billion, including the assumption of debt - providing further diversification across markets and products including the addition of government-sponsored care under federal contracts with the Department of Defense and the U.S. Department of Veterans Affairs, as well as Medicare Advantage." }, { "bbox": [ 0.051116718965418195, 0.6772826223662405, 0.30433594946767767, 0.6866683189315025 ], "data": [], "index_in_doc": 354, "label": "section_header", "text": "RECOGNITIONS & ACCREDITATIONS" }, { "bbox": [ 0.050886855405919695, 0.7185279769126816, 0.4559372546626072, 0.75702281913372 ], "data": [], "index_in_doc": 355, "label": "text", "text": "Centene's Arkansas subsidiary receives Accreditation from the National Committee for Quality Assurance for its Health Insurance Marketplace Exchange plan." }, { "bbox": [ 0.05086113424862132, 0.7645961877071497, 0.4765643948823019, 0.8160998411852904 ], "data": [], "index_in_doc": 356, "label": "text", "text": "Centene is added to the Standard & Poor's 500 Index (S&P 500 ® ), a stock market index that is widely regarded as the best single gauge of large-cap U.S. equities chosen for market size, liquidity and industry grouping, among other factors." }, { "bbox": [ 0.05329287285898246, 0.9508418073557844, 0.30576122508329506, 0.9609905300718365 ], "data": [], "index_in_doc": 357, "label": "page_footer", "text": "8 CENTENE CORPORATION 2016 Highlights" }, { "bbox": [ 1.6971453498391544, 0.9515460862053765, 1.9452562519148284, 0.9609905300718365 ], "data": [], "index_in_doc": 358, "label": "text", "text": "2016 Highlights CENTENE CORPORATION 9" }, { "bbox": [ 0.5759610444112541, 0.15431413746843434, 0.9575119517207925, 0.19661265671855271 ], "data": [], "index_in_doc": 359, "label": "picture", "text": "" }, { "bbox": [ 0.5139672771777982, 0.20653811368075284, 0.551871655034084, 0.2150349472508286 ], "data": [], "index_in_doc": 360, "label": "section_header", "text": "APRIL" }, { "bbox": [ 0.5136803521050347, 0.2201605902777778, 0.9145820966733047, 0.24354876893939395 ], "data": [], "index_in_doc": 361, "label": "text", "text": "Centene appoints Mark Brooks as Senior Vice President and Chief Information Officer." }, { "bbox": [ 0.5135809206495098, 0.2515075375335385, 0.9155280418645323, 0.28986535891137943 ], "data": [], "index_in_doc": 362, "label": "text", "text": "Centene selected to provide Medicaid services in three zones in Pennsylvania. (The RFP was rescinded and Centene was re-issued the contract in January 2017.)" }, { "bbox": [ 0.5135413275824653, 0.29600979583431974, 0.9402841804853452, 0.3341657850477431 ], "data": [], "index_in_doc": 363, "label": "text", "text": "Centurion is selected by the Mississippi Department of Corrections to provide correctional healthcare services to more than 17,000 inmates housed at facilities throughout the state." }, { "bbox": [ 0.5139267366696028, 0.3410868018564552, 0.9415376949933619, 0.3778503109710385 ], "data": [], "index_in_doc": 364, "label": "text", "text": "Centene celebrates the grand opening of its Ferguson Service Center, a $25 million investment bringing more than 250 jobs to the Ferguson, Missouri area." }, { "bbox": [ 0.5140065710529004, 0.3851735664136482, 0.9363374398424734, 0.42255463263001103 ], "data": [], "index_in_doc": 365, "label": "text", "text": "Centene's subsidiary, Coordinated Care, began operating as the sole contractor with the Washington State Health Care Authority to provide foster care services through the Apple Health Foster Care contract." }, { "bbox": [ 0.5141300375944649, 0.42900039210464014, 0.889353932898029, 0.45349317608457623 ], "data": [], "index_in_doc": 366, "label": "text", "text": "Centene appoints Christopher Isaak as Senior Vice President, Corporate Controller and Chief Accounting Officer." }, { "bbox": [ 0.5141616023443882, 0.4661294956399937, 0.5418837304208793, 0.4740459172412603 ], "data": [], "index_in_doc": 367, "label": "section_header", "text": "MAY" }, { "bbox": [ 0.5136877321729473, 0.4790035594593395, 0.9527136110791973, 0.5299474542791193 ], "data": [], "index_in_doc": 368, "label": "text", "text": "Centurion selected by the State of New Mexico Corrections Department to provide correctional medical healthcare services and pharmacy services to more than 7,000 offenders throughout the state under two separate contract awards." }, { "bbox": [ 0.5136736701516544, 0.5366354662962635, 0.951419007544424, 0.5877805382314355 ], "data": [], "index_in_doc": 369, "label": "text", "text": "Centene specialty solutions division, Envolve, selected by Maryland Care, Inc. d/b/a/ Maryland Physicians Care MCO to provide health plan management services for its managed Medicaid operations in Maryland effective July 1, 2017 ." }, { "bbox": [ 0.5137715557821436, 0.6001338380755801, 0.5481859593609579, 0.608706888526377 ], "data": [], "index_in_doc": 370, "label": "section_header", "text": "JUNE" }, { "bbox": [ 0.513597725263608, 0.6125549547600023, 0.933663960375817, 0.6639227048315183 ], "data": [], "index_in_doc": 371, "label": "text", "text": "Centene's Indiana subsidiary is selected by the Indiana Family & Social Services Administration to begin contract negotiations to provide risk-based managed care services for enrollees in the Healthy Indiana Plan and Hoosier Healthwise programs, commencing in January 2017." }, { "bbox": [ 0.5136296390707976, 0.7186549793590199, 0.8790162529041564, 0.743355221218533 ], "data": [], "index_in_doc": 372, "label": "text", "text": "Centene receives the Hispanic Health Leadership Award by the National Hispanic Medical Association." }, { "bbox": [ 0.513588550044041, 0.749533682158499, 0.9369471930210886, 0.7875712230952099 ], "data": [], "index_in_doc": 373, "label": "text", "text": "The Health Net Federal Services call center operations earns the ranking of first place for large call centers (those with more than 250 fulltime representatives) in BenchmarkPortal's Top 100 Call Center Contest." }, { "bbox": [ 0.513275695002936, 0.7941500731188842, 0.9335680194929534, 0.8586899728486033 ], "data": [], "index_in_doc": 374, "label": "text", "text": "At the Case In Point Platinum Awards, Centene and its specialty solutions division, Envolve, Inc. are honored with awards in five categories: Behavioral Health Case Management, Women/Children Case Management, Acute Care, Care Management, Disease Management/Population Health." }, { "bbox": [ 0.5138150383444393, 0.8650402492947049, 0.9272797029781965, 0.9025439927072236 ], "data": [], "index_in_doc": 375, "label": "text", "text": "Centene's Florida subsidiary receives Accreditation from the National Committee for Quality Assurance for its Medicaid and Health Insurance Marketplace Exchange plan, Ambetter from Sunshine Health." }, { "bbox": [ 0.5136618022046058, 0.9087059714577415, 0.9334767659505209, 0.933711350566209 ], "data": [], "index_in_doc": 376, "label": "text", "text": "FORTUNE magazine lists Centene's position of #124 in its annual ranking of America's 500 largest companies by revenue." }, { "bbox": [ 1.0577280879799837, 0.16856553819444445, 1.0964748407501022, 0.19081046364524148 ], "data": [], "index_in_doc": 377, "label": "text", "text": "Q3" }, { "bbox": [ 1.517352334814134, 0.16856553819444445, 1.5597069434870303, 0.19081046364524148 ], "data": [], "index_in_doc": 378, "label": "text", "text": "Q4" }, { "bbox": [ 1.0470588035832822, 0.20822474932429766, 1.076588250453176, 0.21504296196831596 ], "data": [], "index_in_doc": 379, "label": "text", "text": "JULY" }, { "bbox": [ 1.0472099952448428, 0.220899947965988, 1.4731182023590685, 0.2445155442363084 ], "data": [], "index_in_doc": 380, "label": "text", "text": "The Department of Defense awards Centene's wholly-owned subsidiary, Health Net Federal Services, the TRICARE West Region contract." }, { "bbox": [ 1.0472059062882966, 0.2579507538766572, 1.0974264705882353, 0.26491669934205336 ], "data": [], "index_in_doc": 381, "label": "text", "text": "AUGUST" }, { "bbox": [ 1.0477389665990093, 0.2707736853397254, 1.4686578488817401, 0.3341572308781171 ], "data": [], "index_in_doc": 382, "label": "text", "text": "Centene's Pennsylvania subsidiary is selected by the department of Human Services and Aging to serve enrollees in the Community HealthChoices program statewide. Expected contract commencement dates vary by zone, starting January 2018, and will be fully implemented by January 2019, pending regulatory approval." }, { "bbox": [ 1.0473823298036662, 0.3475973726523043, 1.1199411629072202, 0.35456327958540484 ], "data": [], "index_in_doc": 383, "label": "text", "text": "SEPTEMBER" }, { "bbox": [ 1.0477389665990093, 0.36044365468651357, 1.447697159511591, 0.3839423825042416 ], "data": [], "index_in_doc": 384, "label": "text", "text": "Centene files to continue its participation as a qualified health plan issuer in the Arizona Health Insurance Marketplace in 2017 ." }, { "bbox": [ 1.0472099952448428, 0.719226451835247, 1.4363598792381536, 0.7693306123367464 ], "data": [], "index_in_doc": 385, "label": "text", "text": "Envolve is honored at the National Health Information Awards, receiving the merit award for the pamphlet Brush with Wisdom , while Envolve PeopleCare's \"Raising Well\" campaign won gold in the Health Information Program category." }, { "bbox": [ 1.0475865781696794, 0.7772829460375237, 1.4446977602890114, 0.8000676704175544 ], "data": [], "index_in_doc": 386, "label": "text", "text": "FORTUNE magazine announced Centene's position of #470 in its annual ranking of the largest companies globally by revenue." }, { "bbox": [ 1.5091702330346202, 0.2080884220624211, 1.5670231837852329, 0.21504296196831596 ], "data": [], "index_in_doc": 387, "label": "text", "text": "OCTOBER" }, { "bbox": [ 1.5090207367940667, 0.2209232985371291, 1.8900377859477124, 0.2577364372484612 ], "data": [], "index_in_doc": 388, "label": "text", "text": "State of Missouri awards Centene an expanded, statewide managed care contract for its Missouri subsidiary, expected to commence May 1, 2017 ." }, { "bbox": [ 1.5096996033113765, 0.2712197351937342, 1.578920152452257, 0.2781742750996291 ], "data": [], "index_in_doc": 389, "label": "text", "text": "NOVEMBER" }, { "bbox": [ 1.5091718287249796, 0.28403126109730115, 1.9314557243795956, 0.34741480663569285 ], "data": [], "index_in_doc": 390, "label": "text", "text": "Centene's Nevada subsidiary is selected by the Department of Health and Human Services and the Division of Health Care Financing and Policy to serve Medicaid recipients enrolled in Nevada's Medicaid managed care program, expected to commence on July 1, 2017 , pending regulatory approval." }, { "bbox": [ 1.5085672615400327, 0.35473775381993766, 1.9440898022620507, 0.4180862349693221 ], "data": [], "index_in_doc": 391, "label": "text", "text": "The Georgia Department of Community Health (DCH) awards Centene's Georgia subsidiary, Peach State Health Plan, a statewide managed care contract to continue serving members enrolled in the Georgia Families managed care program. 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2016 QUARTERLY HIGHLIGHTS JANUARY Centene announces a partnership with Washington University in St. Louis and Duke University to launch the Envolve Center for Health Behavior Change, a unique industry-academic partnership to foster sustainable change in health-related behaviors. FEBRUARY Centene receives a contract recommendation for Nebraska's new statewide Heritage Health Program through its subsidiary, Nebraska Total Care. Centurion reached a formal agreement to provide correctional healthcare services for the Florida Department of Corrections in Regions 1, 2 and 3 . MARCH Centene completed its acquisition of Health Net, Inc. for approximately $6.0 billion, including the assumption of debt - providing further diversification across markets and products including the addition of government-sponsored care under federal contracts with the Department of Defense and the U.S. Department of Veterans Affairs, as well as Medicare Advantage. RECOGNITIONS & ACCREDITATIONS ), a Centene's Arkansas subsidiary receives Accreditation from the National Committee for Quality Assurance for its Health Insurance Marketplace Exchange plan. Centene is added to the Standard & Poor's 500 Index (S&P 500 ® stock market index that is widely regarded as the best single gauge of large-cap U.S. equities chosen for market size, liquidity and industry grouping, among other factors. 8 CENTENE CORPORATION 2016 Highlights 2016 Highlights CENTENE CORPORATION 9 Q2 Q3 Q4 APRIL Centene appoints Mark Brooks as Senior Vice President and Chief Information Officer. Centene selected to provide Medicaid services in three zones in Pennsylvania. (The RFP was rescinded and Centene was re-issued the contract in January 2017.) Centurion is selected by the Mississippi Department of Corrections to provide correctional healthcare services to more than 17,000 inmates housed at facilities throughout the state. Centene celebrates the grand opening of its Ferguson Service Center, a $25 million investment bringing more than 250 jobs to the Ferguson, Missouri area. Centene's subsidiary, Coordinated Care, began operating as the sole contractor with the Washington State Health Care Authority to provide foster care services through the Apple Health Foster Care contract. Centene appoints Christopher Isaak as Senior Vice President, Corporate Controller and Chief Accounting Officer. MAY Centurion selected by the State of New Mexico Corrections Department to provide correctional medical healthcare services and pharmacy services to more than 7,000 offenders throughout the state under two separate contract awards. Centene specialty solutions division, Envolve, selected by Maryland Care, Inc. d/b/a/ Maryland Physicians Care MCO to provide health plan management services for its managed Medicaid operations in Maryland effective July 1, 2017 . JUNE Centene's Indiana subsidiary is selected by the Indiana Family & Social Services Administration to begin contract negotiations to provide risk-based managed care services for enrollees in the Healthy Indiana Plan and Hoosier Healthwise programs, commencing in January 2017. Centene receives the Hispanic Health Leadership Award by the National Hispanic Medical Association. The Health Net Federal Services call center operations earns the ranking of first place for large call centers (those with more than 250 fulltime representatives) in BenchmarkPortal's Top 100 Call Center Contest. At the Case In Point Platinum Awards, Centene and its specialty solutions division, Envolve, Inc. are honored with awards in five categories: Behavioral Health Case Management, Women/Children Case Management, Acute Care, Care Management, Disease Management/Population Health. Centene's Florida subsidiary receives Accreditation from the National Committee for Quality Assurance for its Medicaid and Health Insurance Marketplace Exchange plan, Ambetter from Sunshine Health. FORTUNE magazine lists Centene's position of #124 in its annual ranking of America's 500 largest companies by revenue. JULY The Department of Defense awards Centene's wholly-owned subsidiary, Health Net Federal Services, the TRICARE West Region contract. AUGUST Centene's Pennsylvania subsidiary is selected by the department of Human Services and Aging to serve enrollees in the Community HealthChoices program statewide. Expected contract commencement dates vary by zone, starting January 2018, and will be fully implemented by January 2019, pending regulatory approval. SEPTEMBER Centene files to continue its participation as a qualified health plan issuer in the Arizona Health Insurance Marketplace in 2017 . Envolve is honored at the National Health Information Awards, receiving the merit award for the pamphlet Brush with Wisdom , while Envolve PeopleCare's "Raising Well" campaign won gold in the Health Information Program category. FORTUNE magazine announced Centene's position of #470 in its annual ranking of the largest companies globally by revenue. OCTOBER State of Missouri awards Centene an expanded, statewide managed care contract for its Missouri subsidiary, expected to commence May 1, 2017 . NOVEMBER Centene's Nevada subsidiary is selected by the Department of Health and Human Services and the Division of Health Care Financing and Policy to serve Medicaid recipients enrolled in Nevada's Medicaid managed care program, expected to commence on July 1, 2017 , pending regulatory approval. The Georgia Department of Community Health (DCH) awards Centene's Georgia subsidiary, Peach State Health Plan, a statewide managed care contract to continue serving members enrolled in the Georgia Families managed care program. The contract is expected to become effective July 1, 2017 . Centene's Kansas subsidiary receives Accreditation with a Commendable status from the National Committee for Quality Assurance.
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for its managed Medicaid operations in Maryland " }, { "bbox": [ 0.5153860453686683, 0.5769802825619476, 0.6373288522358813, 0.5872814294063684 ], "ocr": false, "ocr_confidence": 1, "text": "effective July 1, 2017" }, { "bbox": [ 0.6377822776245915, 0.583485651497889, 0.6396564658171211, 0.5849222125429095 ], "ocr": false, "ocr_confidence": 1, "text": "." }, { "bbox": [ 0.5147058823529411, 0.6009016711302478, 0.5474264606151705, 0.6077198452419705 ], "ocr": false, "ocr_confidence": 1, "text": "JUNE " }, { "bbox": [ 0.5153860453686683, 0.6135768697719381, 0.9335268307355494, 0.6239013671875 ], "ocr": false, "ocr_confidence": 1, "text": "Centene’s Indiana subsidiary is selected by the Indiana Family & Social " }, { "bbox": [ 0.5151593077416513, 0.6269379818078243, 0.9039601843341504, 0.6371923889776673 ], "ocr": false, "ocr_confidence": 1, "text": "Services Administration to begin contract negotiations to provide " }, { "bbox": [ 0.5158394707573785, 0.6401122122099905, 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1.0974264705882353, 0.26491669934205336 ], "ocr": false, "ocr_confidence": 1, "text": "AUGUST " }, { "bbox": [ 1.0477389665990093, 0.2707736853397254, 1.4425583384395424, 0.28109818275528725 ], "ocr": false, "ocr_confidence": 1, "text": "Centene’s Pennsylvania subsidiary is selected by the department " }, { "bbox": [ 1.0477389665990093, 0.28405307037661776, 1.4498723846635009, 0.2943892816100458 ], "ocr": false, "ocr_confidence": 1, "text": "of Human Services and Aging to serve enrollees in the Community " }, { "bbox": [ 1.0483435337839564, 0.29739079330906726, 1.4686578488817401, 0.30764523901120583 ], "ocr": false, "ocr_confidence": 1, "text": "HealthChoices program statewide. Expected contract commencement " }, { "bbox": [ 1.0477389665990093, 0.31056506224352903, 1.403743070714614, 0.32090127347695707 ], "ocr": false, "ocr_confidence": 1, "text": "dates vary by zone, starting January 2018, and will be fully " }, { "bbox": [ 1.047950595032935, 0.32390278517597854, 1.4155172709546058, 0.3341572308781171 ], "ocr": false, "ocr_confidence": 1, "text": "implemented by January 2019, pending regulatory approval." }, { "bbox": [ 1.0473823298036662, 0.3475973726523043, 1.1199411629072202, 0.35456327958540484 ], "ocr": false, "ocr_confidence": 1, "text": "SEPTEMBER " }, { "bbox": [ 1.0477389665990093, 0.36044365468651357, 1.447697159511591, 0.370686386570786 ], "ocr": false, "ocr_confidence": 1, "text": "Centene files to continue its participation as a qualified health plan " }, { "bbox": [ 1.047950595032935, 0.3737814161512587, 1.3958835975796569, 0.3839423825042416 ], "ocr": false, "ocr_confidence": 1, "text": "issuer in the Arizona Health Insurance Marketplace in 2017" }, { "bbox": [ 1.3963369731030433, 0.3802050195559107, 1.3982112111608966, 0.3816415806009312 ], "ocr": false, "ocr_confidence": 1, "text": ". " }, { "bbox": [ 1.5091702330346202, 0.2080884220624211, 1.5670231837852329, 0.21504296196831596 ], "ocr": false, "ocr_confidence": 1, "text": "OCTOBER" }, { "bbox": [ 1.5090207367940667, 0.2209232985371291, 1.8620172637739991, 0.23116610748599273 ], "ocr": false, "ocr_confidence": 1, "text": "State of Missouri awards Centene an expanded, statewide " }, { "bbox": [ 1.5097008000791463, 0.23417933300288038, 1.8900377859477124, 0.2445155442363084 ], "ocr": false, "ocr_confidence": 1, "text": "managed care contract for its Missouri subsidiary, expected to " }, { "bbox": [ 1.5092474245557599, 0.24829956979462595, 1.6467126584520526, 0.2577364372484612 ], "ocr": false, "ocr_confidence": 1, "text": "commence May 1, 2017" }, { "bbox": [ 1.6471661337060866, 0.25394069787227747, 1.64904037176394, 0.25537725891729796 ], "ocr": false, "ocr_confidence": 1, "text": "." }, { "bbox": [ 1.5096996033113765, 0.2712197351937342, 1.578920152452257, 0.2781742750996291 ], "ocr": false, "ocr_confidence": 1, "text": "NOVEMBER " }, { "bbox": [ 1.5092474245557599, 0.28403126109730115, 1.9314557243795956, 0.294355758512863 ], "ocr": false, "ocr_confidence": 1, "text": "Centene’s Nevada subsidiary is selected by the Department of Health " }, { "bbox": [ 1.5091718287249796, 0.2973106461341935, 1.9144490559895833, 0.30764685736762154 ], "ocr": false, "ocr_confidence": 1, "text": "and Human Services and the Division of Health Care Financing and " }, { "bbox": [ 1.5098519917407067, 0.3105432529642124, 1.9065866906658497, 0.32086775037977433 ], "ocr": false, "ocr_confidence": 1, "text": "Policy to serve Medicaid recipients enrolled in Nevada’s Medicaid " }, { "bbox": [ 1.5097008000791463, 0.32390440353239425, 1.8919725605085784, 0.3341588492345328 ], "ocr": false, "ocr_confidence": 1, "text": "managed care program, expected to commence on July 1, 2017" }, { "bbox": [ 1.8921249489379084, 0.33044479832504736, 1.8942559934129901, 0.3329909353545218 ], "ocr": false, "ocr_confidence": 1, "text": ", " }, { "bbox": [ 1.5097008000791463, 0.3371603609335543, 1.6856021257786968, 0.34741480663569285 ], "ocr": false, "ocr_confidence": 1, "text": "pending regulatory approval." }, { "bbox": [ 1.5087184532015931, 0.35473775381993766, 1.94375590405433, 0.3650972770922112 ], "ocr": false, "ocr_confidence": 1, "text": "The Georgia Department of Community Health (DCH) awards Centene’s " }, { "bbox": [ 1.5092474245557599, 0.36809886585582385, 1.9440898022620507, 0.37835327302566685 ], "ocr": false, "ocr_confidence": 1, "text": "Georgia subsidiary, Peach State Health Plan, a statewide managed care " }, { "bbox": [ 1.5092474245557599, 0.3813548617892795, 1.9400678647109886, 0.39160926895912246 ], "ocr": false, "ocr_confidence": 1, "text": "contract to continue serving members enrolled in the Georgia Families " }, { "bbox": [ 1.5097008000791463, 0.3945290921914457, 1.9331441642412173, 0.4048652648925781 ], "ocr": false, "ocr_confidence": 1, "text": "managed care program. The contract is expected to become effective " }, { "bbox": [ 1.5085672615400327, 0.4078668536561908, 1.5756448982587827, 0.4180862349693221 ], "ocr": false, "ocr_confidence": 1, "text": "July 1, 2017" }, { "bbox": [ 1.5760982737821692, 0.4142904570608428, 1.5779725118400225, 0.4157270181058633 ], "ocr": false, "ocr_confidence": 1, "text": "." }, { "bbox": [ 0.052941178963854425, 0.20822474932429766, 0.11260294446758196, 0.21504296196831596 ], "ocr": false, "ocr_confidence": 1, "text": "JANUARY " }, { "bbox": [ 0.05362132328008515, 0.22100506406841855, 0.43454906987208947, 0.23125950977055712 ], "ocr": false, "ocr_confidence": 1, "text": "Centene announces a partnership with Washington University in " }, { "bbox": [ 0.05339461058573006, 0.23417933300288038, 0.4639768413468903, 0.24448047984730115 ], "ocr": false, "ocr_confidence": 1, "text": "St. Louis and Duke University to launch the Envolve Center for Health " }, { "bbox": [ 0.05422590293136297, 0.24743529040404041, 0.4556170694189134, 0.2577715016374684 ], "ocr": false, "ocr_confidence": 1, "text": "Behavior Change, a unique industry-academic partnership to foster " }, { "bbox": [ 0.05339461058573006, 0.2607730904010811, 0.33734704310597935, 0.2710275361032197 ], "ocr": false, "ocr_confidence": 1, "text": "sustainable change in health-related behaviors." }, { "bbox": [ 0.05407353320152931, 0.2846136382131865, 0.11876470279070286, 0.29143185085720485 ], "ocr": false, "ocr_confidence": 1, "text": "FEBRUARY " }, { "bbox": [ 0.05362132328008515, 0.2972888368548769, 0.44245237462660847, 0.30532420765269885 ], "ocr": false, "ocr_confidence": 1, "text": "Centene receives a contract recommendation for Nebraska’s new " }, { "bbox": [ 0.05339461058573006, 0.3106499874230587, 0.4600152907028697, 0.3209044331251973 ], "ocr": false, "ocr_confidence": 1, "text": "statewide Heritage Health Program through its subsidiary, Nebraska " }, { "bbox": [ 0.05309232076009115, 0.32390594482421875, 0.11630065768372778, 0.3318361995196102 ], "ocr": false, "ocr_confidence": 1, "text": "Total Care." }, { "bbox": [ 0.05362132328008515, 0.3415066497494476, 0.4255862765842014, 0.35184286098287565 ], "ocr": false, "ocr_confidence": 1, "text": "Centurion reached a formal agreement to provide correctional " }, { "bbox": [ 0.054074754901960786, 0.3547626456829033, 0.4344719282162735, 0.36500537756717566 ], "ocr": false, "ocr_confidence": 1, "text": "healthcare services for the Florida Department of Corrections in " }, { "bbox": [ 0.05422590293136297, 0.368100445679944, 0.15747222401737387, 0.3783548528497869 ], "ocr": false, "ocr_confidence": 1, "text": "Regions 1, 2 and 3" }, { "bbox": [ 0.15921036714042713, 0.37452404908459597, 0.16108455533295676, 0.37596061012961646 ], "ocr": false, "ocr_confidence": 1, "text": "." }, { "bbox": [ 0.05407353320152931, 0.3918006588714291, 0.09835294337054483, 0.398755198777324 ], "ocr": false, "ocr_confidence": 1, "text": "MARCH " }, { "bbox": [ 0.05362132328008515, 0.40463557387843274, 0.47023095024956596, 0.41493672072285354 ], "ocr": false, "ocr_confidence": 1, "text": "Centene completed its acquisition of Health Net, Inc. for approximately " }, { "bbox": [ 0.053470181483848425, 0.4178915698118884, 0.4540920880884906, 0.4282277425130208 ], "ocr": false, "ocr_confidence": 1, "text": "$6.0 billion, including the assumption of debt — providing further " }, { "bbox": [ 0.05362132328008515, 0.4311475657453441, 0.4580974703520731, 0.4414837384464765 ], "ocr": false, "ocr_confidence": 1, "text": "diversification across markets and products including the addition " }, { "bbox": [ 0.05362132328008515, 0.44440356167879974, 0.44174373851102944, 0.45473973437993215 ], "ocr": false, "ocr_confidence": 1, "text": "of government-sponsored care under federal contracts with the " }, { "bbox": [ 0.05422590293136297, 0.45765955761225535, 0.46914458430670447, 0.4679022894965278 ], "ocr": false, "ocr_confidence": 1, "text": "Department of Defense and the U.S. Department of Veterans Affairs, " }, { "bbox": [ 0.05354575238196679, 0.4709973190770005, 0.24401571236404718, 0.4812517262468434 ], "ocr": false, "ocr_confidence": 1, "text": "as well as Medicare Advantage." }, { "bbox": [ 0.052336599312576594, 0.11275227864583333, 0.2643628587909773, 0.12249979346689552 ], "ocr": false, "ocr_confidence": 1, "text": "2016 QUARTERLY HIGHLIGHTS" }, { "bbox": [ 1.0483133153977737, 0.719226451835247, 1.4269436106962317, 0.7284297365130801 ], "ocr": false, "ocr_confidence": 1, "text": "Envolve is honored at the National Health Information Awards, " }, { "bbox": [ 1.0481470644084456, 0.7324824477687026, 1.4299665463516136, 0.742818620469835 ], "ocr": false, "ocr_confidence": 1, "text": "receiving the merit award for the pamphlet Brush with Wisdom" }, { "bbox": [ 1.4314778645833333, 0.7389527715817846, 1.4337752597783906, 0.7416857324465357 ], "ocr": false, "ocr_confidence": 1, "text": ", " }, { "bbox": [ 1.0472099952448428, 0.7457033985792988, 1.4363598792381536, 0.7560746164032908 ], "ocr": false, "ocr_confidence": 1, "text": "while Envolve PeopleCare’s “Raising Well” campaign won gold in " }, { "bbox": [ 1.0472099952448428, 0.758994439635614, 1.299952588050194, 0.7693306123367464 ], "ocr": false, "ocr_confidence": 1, "text": "the Health Information Program category." }, { "bbox": [ 1.0475865781696794, 0.7772829460375237, 1.4446977602890114, 0.7868132543082189 ], "ocr": false, "ocr_confidence": 1, "text": "FORTUNE magazine announced Centene’s position of #470 in its annual " }, { "bbox": [ 1.0480588027854372, 0.7905695558798433, 1.3450158811083026, 0.8000676704175544 ], "ocr": false, "ocr_confidence": 1, "text": "ranking of the largest companies globally by revenue. " }, { "bbox": [ 1.5092319663054024, 0.7191914067123876, 1.9413519965277777, 0.72952757941352 ], "ocr": false, "ocr_confidence": 1, "text": "Centene’s Kansas subsidiary receives Accreditation with a Commendable " }, { "bbox": [ 1.5089750601575265, 0.7324824477687026, 1.8654158847783906, 0.7427835753469756 ], "ocr": false, "ocr_confidence": 1, "text": "status from the National Committee for Quality Assurance." } ]
[ { "bbox": [ 0.052336599312576594, 0.11275227864583333, 0.2643628587909773, 0.12249979346689552 ], "data": [], "index_in_doc": 393, "label": "text", "text": "2016 QUARTERLY HIGHLIGHTS" }, { "bbox": [ 0.046153062309315, 0.15356144760594223, 0.10823681151944828, 0.19773641258779198 ], "data": [], "index_in_doc": 394, "label": "picture", "text": "" }, { "bbox": [ 0.11147910473393459, 0.1538409608783144, 0.47892486971188214, 0.1970274183485243 ], "data": [], "index_in_doc": 395, "label": "picture", "text": "" }, { "bbox": [ 0.04648425532322304, 0.20683928210325916, 0.11260294446758196, 0.21543653083570075 ], "data": [], "index_in_doc": 396, "label": "section_header", "text": "JANUARY" }, { "bbox": [ 0.04630783180785335, 0.22010880287247475, 0.47375717661739175, 0.24477440419823232 ], "data": [], "index_in_doc": 397, "label": "text", "text": "Centene announces a partnership with Washington University in St. Louis and Duke University to launch the Envolve Center for Health" }, { "bbox": [ 0.05339461058573006, 0.24743529040404041, 0.4556170694189134, 0.2710275361032197 ], "data": [], "index_in_doc": 398, "label": "text", "text": "Behavior Change, a unique industry-academic partnership to foster sustainable change in health-related behaviors." }, { "bbox": [ 0.04610092811335146, 0.26961894950481374, 0.4685823527816074, 0.33441763213186554 ], "data": [], "index_in_doc": 399, "label": "text", "text": "FEBRUARY Centene receives a contract recommendation for Nebraska's new statewide Heritage Health Program through its subsidiary, Nebraska Total Care." }, { "bbox": [ 0.05362132328008515, 0.3415066497494476, 0.4255862765842014, 0.35184286098287565 ], "data": [], "index_in_doc": 400, "label": "text", "text": "Centurion reached a formal agreement to provide correctional" }, { "bbox": [ 0.04609620649051043, 0.3547626456829033, 0.44902367685355393, 0.3835664614282473 ], "data": [], "index_in_doc": 401, "label": "text", "text": "healthcare services for the Florida Department of Corrections in Regions 1, 2 and 3 ." }, { "bbox": [ 0.05407353320152931, 0.3918006588714291, 0.09835294337054483, 0.398755198777324 ], "data": [], "index_in_doc": 402, "label": "text", "text": "MARCH" }, { "bbox": [ 0.053470181483848425, 0.40463557387843274, 0.47023095024956596, 0.4812517262468434 ], "data": [], "index_in_doc": 403, "label": "text", "text": "Centene completed its acquisition of Health Net, Inc. for approximately $6.0 billion, including the assumption of debt - providing further diversification across markets and products including the addition of government-sponsored care under federal contracts with the Department of Defense and the U.S. Department of Veterans Affairs, as well as Medicare Advantage." }, { "bbox": [ 0.05299019657708461, 0.6784156452525746, 0.30390695808759705, 0.6861934276542279 ], "data": [], "index_in_doc": 404, "label": "text", "text": "RECOGNITIONS & ACCREDITATIONS" }, { "bbox": [ 0.437691532708461, 0.7653940566862473, 0.4572041829427083, 0.7755433670198074 ], "data": [], "index_in_doc": 405, "label": "text", "text": "), a" }, { "bbox": [ 0.04580885132932975, 0.7183062620837279, 0.4547758414075265, 0.7755440028026851 ], "data": [], "index_in_doc": 406, "label": "text", "text": "Centene's Arkansas subsidiary receives Accreditation from the National Committee for Quality Assurance for its Health Insurance Marketplace Exchange plan. Centene is added to the Standard & Poor's 500 Index (S&P 500 ®" }, { "bbox": [ 0.04568563411438387, 0.7760731860844776, 0.4758071400760825, 0.8021604749891493 ], "data": [], "index_in_doc": 407, "label": "text", "text": "stock market index that is widely regarded as the best single gauge of large-cap U.S. equities chosen for market size, liquidity and industry" }, { "bbox": [ 0.0520934778101304, 0.8050802982214725, 0.2409159093121298, 0.8154164709226049 ], "data": [], "index_in_doc": 408, "label": "text", "text": "grouping, among other factors." }, { "bbox": [ 0.054673201118419376, 0.9515460862053765, 0.30539533827039933, 0.9609905300718365 ], "data": [], "index_in_doc": 409, "label": "text", "text": "8 CENTENE CORPORATION 2016 Highlights" }, { "bbox": [ 1.6971453498391544, 0.9515460862053765, 1.9452562519148284, 0.9609905300718365 ], "data": [], "index_in_doc": 410, "label": "text", "text": "2016 Highlights CENTENE CORPORATION 9" }, { "bbox": [ 0.5231660331775939, 0.16856553819444445, 0.562138276941636, 0.19081046364524148 ], "data": [], "index_in_doc": 411, "label": "text", "text": "Q2" }, { "bbox": [ 1.0577280879799837, 0.16856553819444445, 1.0964748407501022, 0.19081046364524148 ], "data": [], "index_in_doc": 412, "label": "text", "text": "Q3" }, { "bbox": [ 1.517352334814134, 0.16856553819444445, 1.5597069434870303, 0.19081046364524148 ], "data": [], "index_in_doc": 413, "label": "text", "text": "Q4" }, { "bbox": [ 0.5079150729709201, 0.20647021977588384, 0.567661958582261, 0.21507155293166036 ], "data": [], "index_in_doc": 414, "label": "section_header", "text": "APRIL" }, { "bbox": [ 0.5073586756887, 0.22031872681897097, 0.9144360910054126, 0.26273523195825443 ], "data": [], "index_in_doc": 415, "label": "text", "text": "Centene appoints Mark Brooks as Senior Vice President and Chief Information Officer. Centene selected to provide Medicaid services in three zones in" }, { "bbox": [ 0.5160057217467064, 0.2658302230064315, 0.9145871829363256, 0.2760496043195628 ], "data": [], "index_in_doc": 416, "label": "text", "text": "Pennsylvania. (The RFP was rescinded and Centene was re-issued" }, { "bbox": [ 0.5074887244529973, 0.27908618040759153, 0.9396166832618464, 0.35184817843967015 ], "data": [], "index_in_doc": 417, "label": "text", "text": "the contract in January 2017.) Centurion is selected by the Mississippi Department of Corrections to provide correctional healthcare services to more than 17,000 inmates housed at facilities throughout the state. Centene celebrates the grand opening of its Ferguson Service Center," }, { "bbox": [ 0.507210575677211, 0.3540681781190814, 0.9445975309883068, 0.42255463263001103 ], "data": [], "index_in_doc": 418, "label": "text", "text": "a $25 million investment bringing more than 250 jobs to the Ferguson, Missouri area. Centene's subsidiary, Coordinated Care, began operating as the sole contractor with the Washington State Health Care Authority to provide foster care services through the Apple Health Foster Care contract." }, { "bbox": [ 0.5154011545617596, 0.4299826959166864, 0.888362211339614, 0.453493099019985 ], "data": [], "index_in_doc": 419, "label": "text", "text": "Centene appoints Christopher Isaak as Senior Vice President, Corporate Controller and Chief Accounting Officer." }, { "bbox": [ 0.5158382241242851, 0.46706328729186397, 0.5415147270252502, 0.47375646263662013 ], "data": [], "index_in_doc": 420, "label": "text", "text": "MAY" }, { "bbox": [ 0.5148570241491779, 0.4797618365046954, 0.9523881899765114, 0.5297725561893347 ], "data": [], "index_in_doc": 421, "label": "text", "text": "Centurion selected by the State of New Mexico Corrections Department to provide correctional medical healthcare services and pharmacy services to more than 7,000 offenders throughout the state under two separate contract awards." }, { "bbox": [ 0.5153860453686683, 0.5372940602928701, 0.9505595288245506, 0.5872814294063684 ], "data": [], "index_in_doc": 422, "label": "text", "text": "Centene specialty solutions division, Envolve, selected by Maryland Care, Inc. d/b/a/ Maryland Physicians Care MCO to provide health plan management services for its managed Medicaid operations in Maryland effective July 1, 2017 ." }, { "bbox": [ 0.5147058823529411, 0.6009016711302478, 0.5474264606151705, 0.6077198452419705 ], "data": [], "index_in_doc": 423, "label": "text", "text": "JUNE" }, { "bbox": [ 0.5151593077416513, 0.6135768697719381, 0.9335268307355494, 0.6637043808445786 ], "data": [], "index_in_doc": 424, "label": "text", "text": "Centene's Indiana subsidiary is selected by the Indiana Family & Social Services Administration to begin contract negotiations to provide risk-based managed care services for enrollees in the Healthy Indiana Plan and Hoosier Healthwise programs, commencing in January 2017." }, { "bbox": [ 0.5077875673381331, 0.7182258837150804, 0.9420787337558721, 0.7435466881954309 ], "data": [], "index_in_doc": 425, "label": "text", "text": "Centene receives the Hispanic Health Leadership Award by the National Hispanic Medical Association." }, { "bbox": [ 0.5148655511195364, 0.7508533362186316, 0.9369192684397978, 0.7875496642758147 ], "data": [], "index_in_doc": 426, "label": "text", "text": "The Health Net Federal Services call center operations earns the ranking of first place for large call centers (those with more than 250 fulltime representatives) in BenchmarkPortal's Top 100 Call Center Contest." }, { "bbox": [ 0.5148656009848601, 0.7950477792759134, 0.9328691071155024, 0.8583495400168679 ], "data": [], "index_in_doc": 427, "label": "text", "text": "At the Case In Point Platinum Awards, Centene and its specialty solutions division, Envolve, Inc. are honored with awards in five categories: Behavioral Health Case Management, Women/Children Case Management, Acute Care, Care Management, Disease Management/Population Health." }, { "bbox": [ 0.5153795130112592, 0.8656607830163204, 0.9266112084482231, 0.9025439927072236 ], "data": [], "index_in_doc": 428, "label": "text", "text": "Centene's Florida subsidiary receives Accreditation from the National Committee for Quality Assurance for its Medicaid and Health Insurance Marketplace Exchange plan, Ambetter from Sunshine Health." }, { "bbox": [ 0.5153038673151552, 0.9098552260736023, 0.9325816833895016, 0.9334824446475867 ], "data": [], "index_in_doc": 429, "label": "text", "text": "FORTUNE magazine lists Centene's position of #124 in its annual ranking of America's 500 largest companies by revenue." }, { "bbox": [ 1.0470588035832822, 0.20822474932429766, 1.076588250453176, 0.21504296196831596 ], "data": [], "index_in_doc": 430, "label": "text", "text": "JULY" }, { "bbox": [ 1.0472099952448428, 0.220899947965988, 1.4731182023590685, 0.2445155442363084 ], "data": [], "index_in_doc": 431, "label": "text", "text": "The Department of Defense awards Centene's wholly-owned subsidiary, Health Net Federal Services, the TRICARE West Region contract." }, { "bbox": [ 1.0472059062882966, 0.2579507538766572, 1.0974264705882353, 0.26491669934205336 ], "data": [], "index_in_doc": 432, "label": "text", "text": "AUGUST" }, { "bbox": [ 1.0477389665990093, 0.2707736853397254, 1.4686578488817401, 0.3341572308781171 ], "data": [], "index_in_doc": 433, "label": "text", "text": "Centene's Pennsylvania subsidiary is selected by the department of Human Services and Aging to serve enrollees in the Community HealthChoices program statewide. Expected contract commencement dates vary by zone, starting January 2018, and will be fully implemented by January 2019, pending regulatory approval." }, { "bbox": [ 1.0473823298036662, 0.3475973726523043, 1.1199411629072202, 0.35456327958540484 ], "data": [], "index_in_doc": 434, "label": "text", "text": "SEPTEMBER" }, { "bbox": [ 1.0477389665990093, 0.36044365468651357, 1.447697159511591, 0.3839423825042416 ], "data": [], "index_in_doc": 435, "label": "text", "text": "Centene files to continue its participation as a qualified health plan issuer in the Arizona Health Insurance Marketplace in 2017 ." }, { "bbox": [ 1.0472099952448428, 0.719226451835247, 1.4363598792381536, 0.7693306123367464 ], "data": [], "index_in_doc": 436, "label": "text", "text": "Envolve is honored at the National Health Information Awards, receiving the merit award for the pamphlet Brush with Wisdom , while Envolve PeopleCare's \"Raising Well\" campaign won gold in the Health Information Program category." }, { "bbox": [ 1.0475865781696794, 0.7772829460375237, 1.4446977602890114, 0.8000676704175544 ], "data": [], "index_in_doc": 437, "label": "text", "text": "FORTUNE magazine announced Centene's position of #470 in its annual ranking of the largest companies globally by revenue." }, { "bbox": [ 1.5091702330346202, 0.2080884220624211, 1.5670231837852329, 0.21504296196831596 ], "data": [], "index_in_doc": 438, "label": "text", "text": "OCTOBER" }, { "bbox": [ 1.5090207367940667, 0.2209232985371291, 1.8900377859477124, 0.2577364372484612 ], "data": [], "index_in_doc": 439, "label": "text", "text": "State of Missouri awards Centene an expanded, statewide managed care contract for its Missouri subsidiary, expected to commence May 1, 2017 ." }, { "bbox": [ 1.5096996033113765, 0.2712197351937342, 1.578920152452257, 0.2781742750996291 ], "data": [], "index_in_doc": 440, "label": "text", "text": "NOVEMBER" }, { "bbox": [ 1.5091718287249796, 0.28403126109730115, 1.9314557243795956, 0.34741480663569285 ], "data": [], "index_in_doc": 441, "label": "text", "text": "Centene's Nevada subsidiary is selected by the Department of Health and Human Services and the Division of Health Care Financing and Policy to serve Medicaid recipients enrolled in Nevada's Medicaid managed care program, expected to commence on July 1, 2017 , pending regulatory approval." }, { "bbox": [ 1.5085672615400327, 0.35473775381993766, 1.9440898022620507, 0.4180862349693221 ], "data": [], "index_in_doc": 442, "label": "text", "text": "The Georgia Department of Community Health (DCH) awards Centene's Georgia subsidiary, Peach State Health Plan, a statewide managed care contract to continue serving members enrolled in the Georgia Families managed care program. The contract is expected to become effective July 1, 2017 ." }, { "bbox": [ 1.5089750601575265, 0.7191914067123876, 1.9413519965277777, 0.7427835753469756 ], "data": [], "index_in_doc": 443, "label": "text", "text": "Centene's Kansas subsidiary receives Accreditation with a Commendable status from the National Committee for Quality Assurance." } ]
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10 CENTENE CORPORATION FINDING NEW WAYS For over three decades, Centene has embraced evidence-based initiatives, state-of-the-art technology, and strong community partnerships to build innovative programs that help our members live healthier lives. "At Centene, we believe in the power of strategic partnerships to help address the challenges that directly impact our members. By working with other industry leaders and key organizations, we gain insights and exchange ideas, paving the way and opening doors to healthier communities." MICHAEL F. NEIDORFF Chairman, President & CEO, Centene FROM SCIENCE TO STRATEGIES AT THE ENVOLVE CENTER FOR HEALTH BEHAVIOR CHANGE Nearly two years ago, Centene's top leaders in healthcare solutions began to consider the impact of an academic-industry-based collaboration, focused on one mission: improving the health of vulnerable populations by using science to foster sustainable change in health-related behaviors. On January 28, 2016, a unique partnership between Centene Corporation, the Brown School at Washington University in St. Louis, and the Center for Advanced Hindsight at Duke University, was launched. The Envolve Center for Health Behavior Change creates an intersection of Centene's insights on managed care, and the research and evaluation expertise of the Brown School and the Center for Advanced Hindsight. By interpreting the science of behavior change and developing practical strategies and interventions that result in sustainable health behavior change, the Envolve Center is positioned to improve the effectiveness of healthcare delivery, while influencing positive health outcomes and reducing the economic burdens of poor health on individuals and society. The Envolve Center is currently working with Centene's Louisiana, Missouri and Florida health plans to evaluate the impact peer coaches have on reducing childhood obesity, specifically dietary and activity habits. The Center is also looking beyond the instruction that members receive about healthy behaviors, to learn how neighbors, family members and friends can influence and work together for better health outcomes. Photo: Attendees at the grand opening of The Envolve Center for Health Behavior Change at Washington University in St. Louis. This partnership brings together academic and industry leaders in the science of behavior change including Centene's newly rebranded specialty division, Envolve ® , The Brown School at Washington University in St. Louis, and Duke University's Center for Advanced Hindsight. Finding New Ways CENTENE CORPORATION 11
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" }, { "bbox": [ 1.2008822571997548, 0.6951916434548118, 1.6221355363434435, 0.7063911515052872 ], "ocr": false, "ocr_confidence": 1, "text": "The Envolve Center is currently working with Centene’s Louisiana, " }, { "bbox": [ 1.2021077473958333, 0.7110881227435488, 1.5981976876851, 0.7220729673751677 ], "ocr": false, "ocr_confidence": 1, "text": "Missouri and Florida health plans to evaluate the impact peer " }, { "bbox": [ 1.20145421246298, 0.7267825579402423, 1.6166617200265523, 0.7379568080709438 ], "ocr": false, "ocr_confidence": 1, "text": "coaches have on reducing childhood obesity, specifically dietary " }, { "bbox": [ 1.2013725330627043, 0.7426537793092053, 1.5787747451682497, 0.7537396363537721 ], "ocr": false, "ocr_confidence": 1, "text": "and activity habits. 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For over three decades, Centene has community partnerships to build state-of-the-art technology, and strong innovative programs that help our "At Centene, we believe in the power of strategic partnerships to help address the challenges that directly impact our members. By working with other industry leaders and key organizations, we gain insights and exchange ideas, paving the way and opening doors to healthier communities." MICHAEL F. NEIDORFF members live healthier lives. Chairman, President & CEO, Centene 10 CENTENE CORPORATION FROM SCIENCE TO STRATEGIES AT THE ENVOLVE CENTER FOR HEALTH BEHAVIOR CHANGE Nearly two years ago, Centene's top leaders in healthcare solutions began to consider the impact of an academic-industry-based collaboration, focused on one mission: improving the health of vulnerable populations by using science to foster sustainable change in health-related behaviors. On January 28, 2016, a unique partnership between Centene Corporation, the Brown School at Washington University in St. Louis, and the Center for Advanced Hindsight at Duke University, was launched. The Envolve Center for Health Behavior Change creates an intersection of Centene's insights on managed care, and the research and evaluation expertise of the Brown School and the Center for Advanced Hindsight. By interpreting the science of behavior change and developing practical strategies and interventions that result in sustainable health behavior change, the Envolve Center is positioned to improve the effectiveness of healthcare delivery, while influencing positive health outcomes and reducing the economic burdens of poor health on individuals and society. The Envolve Center is currently working with Centene's Louisiana, Missouri and Florida health plans to evaluate the impact peer coaches have on reducing childhood obesity, specifically dietary and activity habits. The Center is also looking beyond the instruction that members receive about healthy behaviors, to learn how neighbors, family members and friends can influence and work together for better health outcomes. Photo: Attendees at the grand opening of The Envolve Center for Health Behavior Change at Washington University in St. Louis. This partnership brings together academic and industry leaders in the science of behavior change including Centene's newly rebranded specialty division, Envolve ® , The Brown School at Washington University in St. Louis, and Duke University's Center for Advanced Hindsight. Finding New Ways CENTENE CORPORATION 11
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[ { "bbox": [ 0, 0.00014842640269886363, 0.9998499053755617, 0.3347180299084596 ], "data": [], "index_in_doc": 456, "label": "picture", "text": "" }, { "bbox": [ 0.3612606322843265, 0.3489613388523911, 0.8510974559908598, 0.3686078004162721 ], "data": [], "index_in_doc": 457, "label": "text", "text": "For over three decades, Centene has" }, { "bbox": [ 0.35995343775531047, 0.4322946721857244, 0.7906658197540084, 0.45439063178168404 ], "data": [], "index_in_doc": 458, "label": "text", "text": "community partnerships to build" }, { "bbox": [ 0.19964220632914625, 0.39567619863182607, 0.8744240555108762, 0.48224416405263576 ], "data": [], "index_in_doc": 459, "label": "text", "text": "state-of-the-art technology, and strong innovative programs that help our" }, { "bbox": [ 0.3557303933536305, 0.5672878689236112, 0.7969705419602737, 0.5796212090386285 ], "data": [], "index_in_doc": 460, "label": "text", "text": "\"At Centene, we believe in the power of strategic partnerships" }, { "bbox": [ 0.19946707931219362, 0.4815878049291746, 0.799540700476154, 0.687316297280668 ], "data": [], "index_in_doc": 461, "label": "text", "text": "to help address the challenges that directly impact our members. By working with other industry leaders and key organizations, we gain insights and exchange ideas, paving the way and opening doors to healthier communities.\" MICHAEL F. NEIDORFF members live healthier lives." }, { "bbox": [ 0.19933583378012665, 0.6924261420664161, 0.6225753484987745, 0.8014892423995817 ], "data": [], "index_in_doc": 462, "label": "text", "text": "Chairman, President & CEO, Centene" }, { "bbox": [ 0.35946326162300857, 0.35340865934738, 0.9098085889629289, 0.7697736952039931 ], "data": [], "index_in_doc": 463, "label": "picture", "text": "" }, { "bbox": [ 0.051973040586982676, 0.9526401481243095, 0.2141132728726256, 0.9592083295186361 ], "data": [], "index_in_doc": 464, "label": "text", "text": "10 CENTENE CORPORATION" }, { "bbox": [ 1.2026797026590583, 0.3532598476217251, 1.6088727564593546, 0.37362601540305396 ], "data": [], "index_in_doc": 465, "label": "text", "text": "FROM SCIENCE TO STRATEGIES AT THE ENVOLVE CENTER FOR HEALTH BEHAVIOR CHANGE" }, { "bbox": [ 1.2008822571997548, 0.39594923847853536, 1.639078377119077, 0.47028004039417615 ], "data": [], "index_in_doc": 466, "label": "text", "text": "Nearly two years ago, Centene's top leaders in healthcare solutions began to consider the impact of an academic-industry-based collaboration, focused on one mission: improving the health of vulnerable populations by using science to foster sustainable change in health-related behaviors." }, { "bbox": [ 1.2008822571997548, 0.48255276920819523, 1.6396339765561172, 0.6829946884001145 ], "data": [], "index_in_doc": 467, "label": "text", "text": "On January 28, 2016, a unique partnership between Centene Corporation, the Brown School at Washington University in St. Louis, and the Center for Advanced Hindsight at Duke University, was launched. The Envolve Center for Health Behavior Change creates an intersection of Centene's insights on managed care, and the research and evaluation expertise of the Brown School and the Center for Advanced Hindsight. By interpreting the science of behavior change and developing practical strategies and interventions that result in sustainable health behavior change, the Envolve Center is positioned to improve the effectiveness of healthcare delivery, while influencing positive health outcomes and reducing the economic burdens of poor health on individuals and society." }, { "bbox": [ 1.2008822571997548, 0.6951916434548118, 1.6221355363434435, 0.8010881212022569 ], "data": [], "index_in_doc": 468, "label": "text", "text": "The Envolve Center is currently working with Centene's Louisiana, Missouri and Florida health plans to evaluate the impact peer coaches have on reducing childhood obesity, specifically dietary and activity habits. The Center is also looking beyond the instruction that members receive about healthy behaviors, to learn how neighbors, family members and friends can influence and work together for better health outcomes." }, { "bbox": [ 1.6639601763556986, 0.2661862614178898, 1.9375851699729372, 0.30094824896918404 ], "data": [], "index_in_doc": 469, "label": "text", "text": "Photo: Attendees at the grand opening of The Envolve Center for Health Behavior Change at Washington University in St. Louis." }, { "bbox": [ 1.6628665300755718, 0.7923820765331538, 1.9416027193755105, 0.8649477525190874 ], "data": [], "index_in_doc": 470, "label": "text", "text": "This partnership brings together academic and industry leaders in the science of behavior change including Centene's newly rebranded specialty division, Envolve ® , The Brown School at Washington University in St. Louis, and Duke University's Center for Advanced Hindsight." }, { "bbox": [ 1.6798564437168095, 0.9518996200176201, 1.945660559959661, 0.9613440638840801 ], "data": [], "index_in_doc": 471, "label": "text", "text": "Finding New Ways CENTENE CORPORATION 11" } ]
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FINDING NEW WAYS At Centene, we believe in finding new and effective solutions that respond to the complex health needs of our members. By combining active local involvement in the communities that we serve with a focus on the individual, and a commitment to treat the whole person, Centene has been able to establish programs that work to remove many of the barriers that healthcare consumers face. Oftentimes these successful health management programs are a result of collaborations with community partners and other stakeholders. PERSON-CENTERED INNOVATION AND TECHNOLOGY Centene has always emphasized innovation and a technology strategy that prioritize our members' healthcare needs. Our Health Care Enterprise group of companies exemplifies how we put our members at the center of all we do - developing better tools and techniques by first understanding their increasingly complex needs. AcariaHealth matches members with chronic conditions with the specialty pharmaceuticals they need and works to ensure that they adhere to their medication routines. Casenet's TruCare product has long served as the backbone of Centene's case management processes, and with the addition of integrated care and LTSS capabilities in recent releases, case managers have more tools than ever before. In an effort to empower case managers to help close quality and risk adjustment gaps, Centene made an investment in Interpreta, a modern analytics tool which is designed to identify those gaps and help health plans, providers and members close those gaps. The Health Care Enterprise portfolio also includes two provider organizations, LifeShare and USMM. LifeShare provides both direct services and managed care services to individuals with intellectual and developmental disabilities. USMM offers a suite of services ranging from in-home physician visits, to durable medical equipment, hospice, and lab services for individuals who are homebound and have chronic conditions. In addition, USMM now offers care through the nation's largest multi-state Accountable Care Organization (ACO) and has improved outcomes for patients and achieved savings for CMS through that initiative. Our Health Care Enterprise group of companies exemplifies how we put our members at the center of all we do. ADDRESSING A NATIONAL EPIDEMIC According to a 2016 U.S. Department of Health and Human Services report, on an average day 78 people die from an opioid-related overdose, and $20 billion is spent annually for emergency department and inpatient care for opioid poisonings. With the reality of the nation's opioid epidemic becoming evident in every state in both urban and rural communities, and across social and economic groups, Centene's clinical leadership mobilized in 2016 to launch an enterprise-wide Opioid Management Strategy. Designed to prevent members from overusing or misusing opioid medications, the program involves the establishment of three advisory teams. One group focuses on pharmacy education and outreach, another group works on provider engagement, and the Member Intervention Advisory Group identifies high-risk members for targeted intervention and preventive education. Through collaboration, education and the use of Centene's business intelligence tools, our health plans are looking to this proactive program to help them address this national epidemic. One example of programs already operating is in Massachusetts. CeltiCare Health noted that one fourth of their hospital admissions were due to substance abuse in 2015, and more than 10 percent of the health plan's budget was supporting medication to treat addiction. CeltiCare Health launched a state-wide effort to educate both providers and members on prevention, intervention, treatment, and recovery methods. Recognized as a "Game Changer" by the Boston Globe, CeltiCare Health today has a full time substance use disorder case manager, distributes atomizers for the easy use of the overdose drug Naloxone, supports Peer Recovery Coach academies, and has a permanent task force constantly looking for ways to reduce the incidence of substance use disorders. The Medical Management team at CeltiCare Health also works with its network of providers to review prescribing practices, including the percentage of their prescriptions that are controlled substances. Follow up with providers who are suspected of over-prescribing can be as simple as face-to-face education. REDUCING AVOIDABLE HOSPITAL READMISSIONS Preventable hospital readmissions not only cause damaging effects on patients' quality of life, but are also major sources of unnecessary healthcare costs. Seeking to address this challenge within the healthcare system, we developed a multidisciplinary and collaborative posthospitalization outreach program, including concurrent review of discharge instructions, medication adherence assessment, disease-specific education with the Teach Back method, and telephonic outreach by care management staff. Results in 2015 demonstrated that our proactive outreach to members within 10 days of discharge significantly reduced readmissions at 3 30 days while saving appropriately $5.8 million. Since its initial launch, we have improved the program with the integration of a Readmission Risk Score to further improve outcomes and cost savings. 10% year-over-year decrease in hospital readmission TOTALING $5.8M approximate savings in 2015 TURNING POINT Children in the Texas foster care system are admitted into inpatient psychiatric facilities at a higher rate than children outside of foster care. These admissions often cause a disruption in foster home placement and result in higher readmission rates to inpatient facilities. To break this cycle, Centene's behavioral health and foster care subsidiary worked with multiple child-placing agencies and local psychiatrists in Fort Worth, Texas to launch the Turning Point program. The program offers an alternative to inpatient psychiatric admission for children in foster care. Patients are treated in a home setting, staffed by a team of dedicated behavioral health professionals. Program results show a 34 percent decrease in 90-day readmissions to an inpatient psychiatric facility among the members enrolled. Turning Point's success has led to a decision by Centene to expand the program to other Texas communities. Division Treatment - Readmission (percentage of population) 38.4% 27.5% 24.8% none crisis line admission We saw a difference in the readmission rates for children at each level of intervention by the Turning Point Program - crisis intervention alone, admission to crisis residential, and a combination. 25.5% combination of intervention MODIFIED IMPACT PROGRAM Illnesses like sickle cell anemia, diabetes or heart disease are often aggravated by newly diagnosed, undiagnosed or undertreated behavioral health conditions, with depression being top concern. Sunshine Health, Centene's Florida health plan, and Cenpatico, Centene's behavioral health specialty company, joined a Florida-based medical center, Family Care Partners, to introduce Modified IMPACT (Improving Mood Providing Access to Collaborative Treatment) program. Members are identified and assigned to a Cenpatico wellness coach who is located at the medical center, allowing for better coordination with medical staff. The coach will assess initial needs of the member and coordinate behavioral healthcare and community support, as well as consult with primary care providers. The results show a decrease in depression symptoms among members, as well as a finding that patients enrolled in the program were connected to behavioral health services 67 percent more often than patients outside of the enrolled group. PATIENT OUTCOMES Sixty-seven percent were connected to behavioral health services, nearly double the rate of those identified but not engaged in the program. CLINICIAN OUTCOMES Nearly 1 out of 3 members achieved goals indicating a significant improvement in depression symptoms. COST SAVINGS Healthcare costs averaged $2,213 lower than members identified but not engaged. Finding New Ways CENTENE CORPORATION 13
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Designed to prevent members " }, { "bbox": [ 0.5157764409881791, 0.5008335306186869, 0.9016259885301777, 0.5120077807493885 ], "ocr": false, "ocr_confidence": 1, "text": "from overusing or misusing opioid medications, the program " }, { "bbox": [ 0.5164463816125409, 0.5147224195075758, 0.9135197658164829, 0.5258966696382773 ], "ocr": false, "ocr_confidence": 1, "text": "involves the establishment of three advisory teams. One group " }, { "bbox": [ 0.5157764409881791, 0.5286113083964646, 0.9070999045777165, 0.5397855585271661 ], "ocr": false, "ocr_confidence": 1, "text": "focuses on pharmacy education and outreach, another group " }, { "bbox": [ 0.5157764908535029, 0.5425885903714883, 0.9085214652267157, 0.5536744474160551 ], "ocr": false, "ocr_confidence": 1, "text": "works on provider engagement, and the Member Intervention " }, { "bbox": [ 0.51481244454976, 0.5563890861742424, 0.8958094977085886, 0.5675633363049439 ], "ocr": false, "ocr_confidence": 1, "text": "Advisory Group identifies high-risk members for targeted " }, { "bbox": [ 0.5164463816125409, 0.5703663681492661, 0.9125557693780637, 0.5814522251938329 ], "ocr": false, "ocr_confidence": 1, "text": "intervention and preventive education. Through collaboration, " }, { "bbox": [ 0.5160052729587928, 0.5841416252983941, 0.9158090828290952, 0.5953411140827217 ], "ocr": false, "ocr_confidence": 1, "text": "education and the use of Centene’s business intelligence tools, " }, { "bbox": [ 0.5160052729587928, 0.5981441459270439, 0.9070672926559947, 0.6092300029716107 ], "ocr": false, "ocr_confidence": 1, "text": "our health plans are looking to this proactive program to help " }, { "bbox": [ 0.5157764908535029, 0.6120330348159327, 0.7495672687206393, 0.6230178601814039 ], "ocr": false, "ocr_confidence": 1, "text": "them address this national epidemic." }, { "bbox": [ 0.5157764908535029, 0.6334092881944444, 0.9269151874617034, 0.644583538325146 ], "ocr": false, "ocr_confidence": 1, "text": "One example of programs already operating is in Massachusetts. " }, { "bbox": [ 0.5157764908535029, 0.647298215615629, 0.8923944211473652, 0.6583714340672349 ], "ocr": false, "ocr_confidence": 1, "text": "CeltiCare Health noted that one fourth of their hospital " }, { "bbox": [ 0.5160052230934692, 0.6612754975906526, 0.9026539123136234, 0.6710987283725931 ], "ocr": false, "ocr_confidence": 1, "text": "admissions were due to substance abuse in 2015, and more " }, { "bbox": [ 0.5157764908535029, 0.6750507547397806, 0.906610027637357, 0.6862502435241082 ], "ocr": false, "ocr_confidence": 1, "text": "than 10 percent of the health plan’s budget was supporting " }, { "bbox": [ 0.5166751637178308, 0.6890532753684304, 0.8945788215188419, 0.6976264992145577 ], "ocr": false, "ocr_confidence": 1, "text": "medication to treat addiction. CeltiCare Health launched a " }, { "bbox": [ 0.5160052230934692, 0.7028537711711845, 0.9071589451210171, 0.7139270088889382 ], "ocr": false, "ocr_confidence": 1, "text": "state-wide effort to educate both providers and members on " }, { "bbox": [ 0.5166751637178308, 0.7168310531462082, 0.9014579423891953, 0.727879032944188 ], "ocr": false, "ocr_confidence": 1, "text": "prevention, intervention, treatment, and recovery methods. " }, { "bbox": [ 0.5166752135831546, 0.7306062910291884, 0.8851723265803717, 0.7418057990796638 ], "ocr": false, "ocr_confidence": 1, "text": "Recognized as a “Game Changer” by the Boston Globe, " }, { "bbox": [ 0.5157764908535029, 0.7445204763701467, 0.9105901780471303, 0.7556568492542614 ], "ocr": false, "ocr_confidence": 1, "text": "CeltiCare Health today has a full time substance use disorder " }, { "bbox": [ 0.5160052729587928, 0.7584093652590357, 0.8987781798917484, 0.7695836153897372 ], "ocr": false, "ocr_confidence": 1, "text": "case manager, distributes atomizers for the easy use of the " }, { "bbox": [ 0.5160052729587928, 0.7723866087017637, 0.8770626292509192, 0.7834724657463304 ], "ocr": false, "ocr_confidence": 1, "text": "overdose drug Naloxone, supports Peer Recovery Coach " }, { "bbox": [ 0.5160052230934692, 0.7861871045045178, 0.9200674817453023, 0.7973613546352194 ], "ocr": false, "ocr_confidence": 1, "text": "academies, and has a permanent task force constantly looking " }, { "bbox": [ 0.5157764908535029, 0.8000759548611112, 0.9066524131625306, 0.8112123277452257 ], "ocr": false, "ocr_confidence": 1, "text": "for ways to reduce the incidence of substance use disorders. " }, { "bbox": [ 0.5145673564836091, 0.8140532368361347, 0.9155249502144608, 0.8251390938807015 ], "ocr": false, "ocr_confidence": 1, "text": "The Medical Management team at CeltiCare Health also works " }, { "bbox": [ 0.5157764908535029, 0.8278536941065933, 0.9065396178002451, 0.8390279346042209 ], "ocr": false, "ocr_confidence": 1, "text": "with its network of providers to review prescribing practices, " }, { "bbox": [ 0.5164464314778646, 0.8417425829954822, 0.8833241182215074, 0.8529168234931098 ], "ocr": false, "ocr_confidence": 1, "text": "including the percentage of their prescriptions that are " }, { "bbox": [ 0.5160052729587928, 0.8557198168051363, 0.8684564727583742, 0.8667046614367553 ], "ocr": false, "ocr_confidence": 1, "text": "controlled substances. Follow up with providers who " }, { "bbox": [ 0.5160052230934692, 0.8695203222409643, 0.8750250323925143, 0.8806945627385919 ], "ocr": false, "ocr_confidence": 1, "text": "are suspected of over-prescribing can be as simple as " }, { "bbox": [ 0.5157764908535029, 0.8834091725975576, 0.6637339872472426, 0.8920707895298197 ], "ocr": false, "ocr_confidence": 1, "text": "face-to-face education." }, { "bbox": [ 0.1049597995733124, 0.11312095565025253, 0.27172450146643945, 0.12240885724925031 ], "ocr": false, "ocr_confidence": 1, "text": "FINDING NEW WAYS" }, { "bbox": [ 0.10373431561039943, 0.15554393421519885, 0.8894426931742749, 0.17230532867739898 ], "ocr": false, "ocr_confidence": 1, "text": "At Centene, we believe in finding new and effective solutions that respond to the " }, { "bbox": [ 0.10459215500775505, 0.1770022613833649, 0.8890239241855596, 0.193763655845565 ], "ocr": false, "ocr_confidence": 1, "text": "complex health needs of our members. By combining active local involvement in " }, { "bbox": [ 0.10373431561039943, 0.19846058855153093, 0.8945871988932291, 0.21332804361979166 ], "ocr": false, "ocr_confidence": 1, "text": "the communities that we serve with a focus on the individual, and a commitment " }, { "bbox": [ 0.10373431561039943, 0.22005146681660354, 0.8511070301330167, 0.23668031018189709 ], "ocr": false, "ocr_confidence": 1, "text": "to treat the whole person, Centene has been able to establish programs that " }, { "bbox": [ 0.10373431561039943, 0.241377242887863, 0.8943177266837725, 0.25808176368173924 ], "ocr": false, "ocr_confidence": 1, "text": "work to remove many of the barriers that healthcare consumers face. Oftentimes " }, { "bbox": [ 0.10373431561039943, 0.26283557005602903, 0.9001243441712623, 0.2795969645182292 ], "ocr": false, "ocr_confidence": 1, "text": "these successful health management programs are a result of collaborations with " }, { "bbox": [ 0.10459215500775505, 0.28442644832110164, 0.5363740110708997, 0.3009984180180713 ], "ocr": false, "ocr_confidence": 1, "text": "community partners and other stakeholders." }, { "bbox": [ 1.0481143527560763, 0.1285649309254656, 1.2071176167407067, 0.13629219748757102 ], "ocr": false, "ocr_confidence": 1, "text": "REDUCING AVOIDABLE " }, { "bbox": [ 1.0481143527560763, 0.14117855495876735, 1.224143732606975, 0.14891846011383364 ], "ocr": false, "ocr_confidence": 1, "text": "HOSPITAL READMISSIONS" }, { "bbox": [ 1.048277711556628, 0.1567593969479956, 1.2981453689874387, 0.1677442608457623 ], "ocr": false, "ocr_confidence": 1, "text": "Preventable hospital readmissions not " }, { "bbox": [ 1.0476241766237746, 0.17053461556482796, 1.307753120372498, 0.18173410434915563 ], "ocr": false, "ocr_confidence": 1, "text": "only cause damaging effects on patients’ " }, { "bbox": [ 1.0476241766237746, 0.18444878163963857, 1.3080325656467013, 0.19558515452375316 ], "ocr": false, "ocr_confidence": 1, "text": "quality of life, but are also major sources " }, { "bbox": [ 1.0476241766237746, 0.19833767052852747, 1.3111044690499898, 0.2095118821269334 ], "ocr": false, "ocr_confidence": 1, "text": "of unnecessary healthcare costs. Seeking " }, { "bbox": [ 1.0470522213605493, 0.21231495250355115, 1.2862680472579657, 0.22340077101582229 ], "ocr": false, "ocr_confidence": 1, "text": "to address this challenge within the " }, { "bbox": [ 1.0481143527560763, 0.22620384139244, 1.283996781492545, 0.23725182119041982 ], "ocr": false, "ocr_confidence": 1, "text": "healthcare system, we developed a " }, { "bbox": [ 1.0481143527560763, 0.2400927302813289, 1.3020831338720384, 0.2511407100793087 ], "ocr": false, "ocr_confidence": 1, "text": "multidisciplinary and collaborative post\u0002" }, { "bbox": [ 1.0481143527560763, 0.2539816191702178, 1.3277204924938726, 0.26506743768248897 ], "ocr": false, "ocr_confidence": 1, "text": "hospitalization outreach program, including " }, { "bbox": [ 1.0476241766237746, 0.2677821149729719, 1.3285864537058314, 0.27895632657137787 ], "ocr": false, "ocr_confidence": 1, "text": "concurrent review of discharge instructions, " }, { "bbox": [ 1.0481143527560763, 0.28175939694799557, 1.2802516962188522, 0.29158258919764046 ], "ocr": false, "ocr_confidence": 1, "text": "medication adherence assessment, " }, { "bbox": [ 1.0476241766237746, 0.2955598927507497, 1.3146649528952206, 0.3066331497346512 ], "ocr": false, "ocr_confidence": 1, "text": "disease-specific education with the Teach " }, { "bbox": [ 1.048277711556628, 0.30953717472577336, 1.3151894363702512, 0.32058515452375314 ], "ocr": false, "ocr_confidence": 1, "text": "Back method, and telephonic outreach by " }, { "bbox": [ 1.0476241766237746, 0.32333767052852747, 1.292181276807598, 0.3345118821269334 ], "ocr": false, "ocr_confidence": 1, "text": "care management staff. Results in 2015" }, { "bbox": [ 1.0476241766237746, 0.33731502956814235, 1.3174443463094874, 0.3482998934659091 ], "ocr": false, "ocr_confidence": 1, "text": "demonstrated that our proactive outreach " }, { "bbox": [ 1.0470522213605493, 0.35111552537089646, 1.3008560479856004, 0.3622897369693024 ], "ocr": false, "ocr_confidence": 1, "text": "to members within 10 days of discharge " }, { "bbox": [ 1.0473790386922999, 0.3650043757274897, 1.3003184997957515, 0.3761786258581913 ], "ocr": false, "ocr_confidence": 1, "text": "significantly reduced readmissions at 3 30" }, { "bbox": [ 1.0476241766237746, 0.3789816577025134, 1.2798268436606413, 0.3900675147470802 ], "ocr": false, "ocr_confidence": 1, "text": "days while saving appropriately $5.8" }, { "bbox": [ 1.0481143527560763, 0.3928705465914023, 1.3050391502629697, 0.4026937773733428 ], "ocr": false, "ocr_confidence": 1, "text": "million. Since its initial launch, we have " }, { "bbox": [ 1.0478529587290646, 0.40675947401258683, 1.3264444388595282, 0.41784533105715355 ], "ocr": false, "ocr_confidence": 1, "text": "improved the program with the integration " }, { "bbox": [ 1.0476241766237746, 0.4205599698153409, 1.2962646484375, 0.4292215674814552 ], "ocr": false, "ocr_confidence": 1, "text": "of a Readmission Risk Score to further " }, { "bbox": [ 1.0478529587290646, 0.43453725179036456, 1.2812826119217218, 0.44562310883493134 ], "ocr": false, "ocr_confidence": 1, "text": "improve outcomes and cost savings." }, { "bbox": [ 1.0474955240885417, 0.48943355830028806, 1.1111626718558518, 0.5085585623076467 ], "ocr": false, "ocr_confidence": 1, "text": "10%" }, { "bbox": [ 1.0456682591656454, 0.5147058120881668, 1.1915491640178206, 0.5246830949879656 ], "ocr": false, "ocr_confidence": 1, "text": "year-over-year decrease " }, { "bbox": [ 1.0474476533777572, 0.527308069094263, 1.1862271377463747, 0.5372171498308278 ], "ocr": false, "ocr_confidence": 1, "text": "in hospital readmission" }, { "bbox": [ 1.0478999318640216, 0.5748900596541587, 1.1313097586039624, 0.5964056843459004 ], "ocr": false, "ocr_confidence": 1, "text": "$5.8M" }, { "bbox": [ 1.0474476533777572, 0.6001395408553306, 1.21630071502885, 0.6101395578095408 ], "ocr": false, "ocr_confidence": 1, "text": "approximate savings in 2015" }, { "bbox": [ 1.0470359652650123, 0.5508213621197324, 1.1076241287530637, 0.5577759020256273 ], "ocr": false, "ocr_confidence": 1, "text": "TOTALING" }, { "bbox": [ 1.3547842985664318, 0.1412923022954151, 1.464915057412939, 0.14901956885752052 ], "ocr": false, "ocr_confidence": 1, "text": "TURNING POINT" }, { "bbox": [ 1.3553562538296569, 0.15677211260554766, 1.614552317101971, 0.16790848548966225 ], "ocr": false, "ocr_confidence": 1, "text": "Children in the Texas foster care system " }, { "bbox": [ 1.355274574429381, 0.17074939458057134, 1.60733012280433, 0.18179737437855115 ], "ocr": false, "ocr_confidence": 1, "text": "are admitted into inpatient psychiatric " }, { "bbox": [ 1.354866077697355, 0.18454989038332545, 1.604632408790339, 0.19572410198173137 ], "ocr": false, "ocr_confidence": 1, "text": "facilities at a higher rate than children " }, { "bbox": [ 1.3553562538296569, 0.19843877927221434, 1.6184429093903185, 0.2071003769383286 ], "ocr": false, "ocr_confidence": 1, "text": "outside of foster care. These admissions " }, { "bbox": [ 1.3553562538296569, 0.2123276681611032, 1.6121340483621833, 0.22340092514500473 ], "ocr": false, "ocr_confidence": 1, "text": "often cause a disruption in foster home " }, { "bbox": [ 1.3558464299619588, 0.2263049501361269, 1.6394870733123978, 0.23739076864839803 ], "ocr": false, "ocr_confidence": 1, "text": "placement and result in higher readmission " }, { "bbox": [ 1.3558464299619588, 0.240105445938881, 1.618702707726971, 0.2511787029227825 ], "ocr": false, "ocr_confidence": 1, "text": "rates to inpatient facilities. To break this " }, { "bbox": [ 1.3553562538296569, 0.2539690576418482, 1.6075425490834354, 0.26513070771188446 ], "ocr": false, "ocr_confidence": 1, "text": "cycle, Centene’s behavioral health and " }, { "bbox": [ 1.354866077697355, 0.2678832237166588, 1.5808595146229065, 0.27901959660077336 ], "ocr": false, "ocr_confidence": 1, "text": "foster care subsidiary worked with " }, { "bbox": [ 1.3558464299619588, 0.2818605056916825, 1.6247157676547181, 0.2929463242039536 ], "ocr": false, "ocr_confidence": 1, "text": "multiple child-placing agencies and local " }, { "bbox": [ 1.3558464299619588, 0.2957493945805713, 1.6374608457478044, 0.30679737437855115 ], "ocr": false, "ocr_confidence": 1, "text": "psychiatrists in Fort Worth, Texas to launch " }, { "bbox": [ 1.3547842985664318, 0.3096382834694602, 1.6179330863204657, 0.3207241019817314 ], "ocr": false, "ocr_confidence": 1, "text": "the Turning Point program. The program " }, { "bbox": [ 1.3553562538296569, 0.3234387792722143, 1.641349742615145, 0.33457515215632894 ], "ocr": false, "ocr_confidence": 1, "text": "offers an alternative to inpatient psychiatric " }, { "bbox": [ 1.355274574429381, 0.3373277452256944, 1.5960392172819649, 0.3459893428918087 ], "ocr": false, "ocr_confidence": 1, "text": "admission for children in foster care. " }, { "bbox": [ 1.3560097887625102, 0.3513049501361269, 1.6058758505029616, 0.36239084571298924 ], "ocr": false, "ocr_confidence": 1, "text": "Patients are treated in a home setting, " }, { "bbox": [ 1.3551111158981821, 0.36510548447117663, 1.6268545911203023, 0.3762418573552912 ], "ocr": false, "ocr_confidence": 1, "text": "staffed by a team of dedicated behavioral " }, { "bbox": [ 1.3558464299619588, 0.3789943733600655, 1.6373791663475286, 0.39016862349076703 ], "ocr": false, "ocr_confidence": 1, "text": "health professionals. Program results show " }, { "bbox": [ 1.355274574429381, 0.39297165533508915, 1.5659281412760417, 0.404019635133069 ], "ocr": false, "ocr_confidence": 1, "text": "a 34 percent decrease in 90-day " }, { "bbox": [ 1.3558464299619588, 0.4068605827562737, 1.6171831118515114, 0.41790856255425346 ], "ocr": false, "ocr_confidence": 1, "text": "readmissions to an inpatient psychiatric " }, { "bbox": [ 1.354866077697355, 0.4206610785590278, 1.6011863159977533, 0.43183532868972935 ], "ocr": false, "ocr_confidence": 1, "text": "facility among the members enrolled. " }, { "bbox": [ 1.3547842985664318, 0.43452472879429055, 1.5860065136080475, 0.4457242175786182 ], "ocr": false, "ocr_confidence": 1, "text": "Turning Point’s success has led to a " }, { "bbox": [ 1.3553562538296569, 0.44852724942294037, 1.581923241708793, 0.45957522922092015 ], "ocr": false, "ocr_confidence": 1, "text": "decision by Centene to expand the " }, { "bbox": [ 1.3558464299619588, 0.46304745144314235, 1.6004689534505208, 0.4741333084877091 ], "ocr": false, "ocr_confidence": 1, "text": "program to other Texas communities. " }, { "bbox": [ 1.3557532815372242, 0.5142481254808831, 1.5578120611851511, 0.5221117578371607 ], "ocr": false, "ocr_confidence": 1, "text": "Division Treatment – Readmission " }, { "bbox": [ 1.3555653889973958, 0.5273687189275568, 1.5063987183415033, 0.5368668141991201 ], "ocr": false, "ocr_confidence": 1, "text": "(percentage of population)" }, { "bbox": [ 1.3560327268114276, 0.7207556830512153, 1.6156650119357638, 0.730812496609158 ], "ocr": false, "ocr_confidence": 1, "text": "We saw a difference in the readmission rates " }, { "bbox": [ 1.353341495289522, 0.7333806933778705, 1.604429656384038, 0.7434375069358132 ], "ocr": false, "ocr_confidence": 1, "text": "for children at each level of intervention by " }, { "bbox": [ 1.3551503100426368, 0.7460625003082584, 1.6241487989238663, 0.7560624979963206 ], "ocr": false, "ocr_confidence": 1, "text": "the Turning Point Program – crisis intervention " }, { "bbox": [ 1.3551797305836397, 0.7586874913687658, 1.5984870062934027, 0.7675852149423926 ], "ocr": false, "ocr_confidence": 1, "text": "alone, admission to crisis residential, and " }, { "bbox": [ 1.3551797305836397, 0.771312501695421, 1.442738551719516, 0.7790511352847321 ], "ocr": false, "ocr_confidence": 1, "text": "a combination." }, { "bbox": [ 1.5223856408611622, 0.6156988432913115, 1.5604297912198735, 0.6226533831972064 ], "ocr": false, "ocr_confidence": 1, "text": "25.5%" }, { "bbox": [ 1.5223611071218852, 0.6332330029420178, 1.581981284945619, 0.6396818450002959 ], "ocr": false, "ocr_confidence": 1, "text": "combination " }, { "bbox": [ 1.5223611071218852, 0.6439148103347933, 1.5905719831878065, 0.6522955075658933 ], "ocr": false, "ocr_confidence": 1, "text": "of intervention" }, { "bbox": [ 1.4308380924798305, 0.6705916818946299, 1.4391837525211908, 0.7043795537466955 ], "ocr": false, "ocr_confidence": 1, "text": "crisis line" }, { "bbox": [ 1.411114661522161, 0.5883555942111545, 1.4201146543415544, 0.616605585271662 ], "ocr": false, "ocr_confidence": 1, "text": "27.5%" }, { "bbox": [ 1.482136146695006, 0.6669467964557686, 1.4905151167726205, 0.7043781280517578 ], "ocr": false, "ocr_confidence": 1, "text": "admission" }, { "bbox": [ 1.462190216662837, 0.591649758695352, 1.4711902094822304, 0.6219792992177636 ], "ocr": false, "ocr_confidence": 1, "text": "24.8%" }, { "bbox": [ 1.3821936713324652, 0.6865765350033538, 1.3881250518599366, 0.7043795537466955 ], "ocr": false, "ocr_confidence": 1, "text": "none" }, { "bbox": [ 1.36078628839231, 0.5551266140407987, 1.3697862812117034, 0.5853993194271819 ], "ocr": false, "ocr_confidence": 1, "text": "38.4%" }, { "bbox": [ 1.665212394365298, 0.1412923022954151, 1.8612417582592933, 0.14901956885752052 ], "ocr": false, "ocr_confidence": 1, "text": "MODIFIED IMPACT PROGRAM" }, { "bbox": [ 1.6653757531658497, 0.15686050569168244, 1.943039040160335, 0.16668369794132734 ], "ocr": false, "ocr_confidence": 1, "text": "Illnesses like sickle cell anemia, diabetes or " }, { "bbox": [ 1.665212394365298, 0.17066100149443655, 1.9458789700776145, 0.18183521309284248 ], "ocr": false, "ocr_confidence": 1, "text": "heart disease are often aggravated by newly " }, { "bbox": [ 1.6647222182329964, 0.18463828346946023, 1.92758158764808, 0.19572410198173137 ], "ocr": false, "ocr_confidence": 1, "text": "diagnosed, undiagnosed or undertreated " }, { "bbox": [ 1.665212394365298, 0.19852717235834913, 1.8938072054993873, 0.208350364607994 ], "ocr": false, "ocr_confidence": 1, "text": "behavioral health conditions, with " }, { "bbox": [ 1.6647222182329964, 0.212416061247238, 1.9334658953099468, 0.22350187975950916 ], "ocr": false, "ocr_confidence": 1, "text": "depression being top concern. Sunshine " }, { "bbox": [ 1.6653757531658497, 0.2261912798640704, 1.947253258399714, 0.23728981403389363 ], "ocr": false, "ocr_confidence": 1, "text": "Health, Centene’s Florida health plan, and " }, { "bbox": [ 1.6647222182329964, 0.2400801687529593, 1.9211078718596815, 0.2511787029227825 ], "ocr": false, "ocr_confidence": 1, "text": "Cenpatico, Centene’s behavioral health " }, { "bbox": [ 1.6644770803015216, 0.2540827279139047, 1.941140567555147, 0.26513070771188446 ], "ocr": false, "ocr_confidence": 1, "text": "specialty company, joined a Florida-based " }, { "bbox": [ 1.665212394365298, 0.2679716168027936, 1.9264837526807599, 0.27901959660077336 ], "ocr": false, "ocr_confidence": 1, "text": "medical center, Family Care Partners, to " }, { "bbox": [ 1.6649510003382864, 0.2817721126055477, 1.9164346931806577, 0.2929463242039536 ], "ocr": false, "ocr_confidence": 1, "text": "introduce Modified IMPACT (Improving " }, { "bbox": [ 1.6653757531658497, 0.2957493945805713, 1.9300979913449754, 0.3068352130928425 ], "ocr": false, "ocr_confidence": 1, "text": "Mood Providing Access to Collaborative " }, { "bbox": [ 1.6641502629697713, 0.3096382834694602, 1.8964380999795751, 0.3207241019817314 ], "ocr": false, "ocr_confidence": 1, "text": "Treatment) program. Members are " }, { "bbox": [ 1.6649510003382864, 0.3234387792722143, 1.9215540667764501, 0.33461299087062024 ], "ocr": false, "ocr_confidence": 1, "text": "identified and assigned to a Cenpatico " }, { "bbox": [ 1.6641502629697713, 0.3374161383118292, 1.9104576360166463, 0.3459893428918087 ], "ocr": false, "ocr_confidence": 1, "text": "wellness coach who is located at the " }, { "bbox": [ 1.665212394365298, 0.3512166341145833, 1.8972712498085171, 0.36239084571298924 ], "ocr": false, "ocr_confidence": 1, "text": "medical center, allowing for better " }, { "bbox": [ 1.6647222182329964, 0.36510548447117663, 1.9426273520475899, 0.3737670821372909 ], "ocr": false, "ocr_confidence": 1, "text": "coordination with medical staff. The coach " }, { "bbox": [ 1.6641502629697713, 0.3789943733600655, 1.9181536506204044, 0.38765597102617977 ], "ocr": false, "ocr_confidence": 1, "text": "will assess initial needs of the member " }, { "bbox": [ 1.6646405388327206, 0.39297165533508915, 1.9386716356464462, 0.40154485991506866 ], "ocr": false, "ocr_confidence": 1, "text": "and coordinate behavioral healthcare and " }, { "bbox": [ 1.6647222182329964, 0.4068605827562737, 1.9496715271395015, 0.41790856255425346 ], "ocr": false, "ocr_confidence": 1, "text": "community support, as well as consult with " }, { "bbox": [ 1.665212394365298, 0.4207494716451626, 1.9423987694035947, 0.43179745144314235 ], "ocr": false, "ocr_confidence": 1, "text": "primary care providers. The results show a " }, { "bbox": [ 1.6647222182329964, 0.43463836053405147, 1.9361241159875409, 0.4457242175786182 ], "ocr": false, "ocr_confidence": 1, "text": "decrease in depression symptoms among " }, { "bbox": [ 1.665212394365298, 0.4484388563368056, 1.9457662744459763, 0.4596131064675071 ], "ocr": false, "ocr_confidence": 1, "text": "members, as well as a finding that patients " }, { "bbox": [ 1.6647222182329964, 0.4624161383118292, 1.9280032488255718, 0.473501995356396 ], "ocr": false, "ocr_confidence": 1, "text": "enrolled in the program were connected " }, { "bbox": [ 1.6641502629697713, 0.4763050272007181, 1.9260425442963645, 0.48728985256618923 ], "ocr": false, "ocr_confidence": 1, "text": "to behavioral health services 67 percent " }, { "bbox": [ 1.665212394365298, 0.4901055230034722, 1.9214052686504288, 0.5011787414550781 ], "ocr": false, "ocr_confidence": 1, "text": "more often than patients outside of the " }, { "bbox": [ 1.6647222182329964, 0.504714118109809, 1.7625473122191584, 0.5157999751543758 ], "ocr": false, "ocr_confidence": 1, "text": "enrolled group." }, { "bbox": [ 1.665089825399561, 0.5555498913081005, 1.7871927498212827, 0.5625157982412011 ], "ocr": false, "ocr_confidence": 1, "text": "PATIENT OUTCOMES" }, { "bbox": [ 1.664251589307598, 0.5674021557123974, 1.8863102532679739, 0.5774021726666074 ], "ocr": false, "ocr_confidence": 1, "text": "Sixty-seven percent were connected to " }, { "bbox": [ 1.6645456949869792, 0.5800271467729048, 1.9254132439108456, 0.590027163727115 ], "ocr": false, "ocr_confidence": 1, "text": "behavioral health services, nearly double the " }, { "bbox": [ 1.6645456949869792, 0.5925953412296796, 1.9092221727558212, 0.6026521933199179 ], "ocr": false, "ocr_confidence": 1, "text": "rate of those identified but not engaged in " }, { "bbox": [ 1.6645162744459763, 0.6052999014806266, 1.7398250804227942, 0.6152771843804253 ], "ocr": false, "ocr_confidence": 1, "text": "the program." }, { "bbox": [ 1.664575115527982, 0.6292771618775647, 1.793957479638991, 0.6362430688106653 ], "ocr": false, "ocr_confidence": 1, "text": "CLINICIAN OUTCOMES" }, { "bbox": [ 1.6645456949869792, 0.6410725911458334, 1.9041486752578636, 0.6511294432360717 ], "ocr": false, "ocr_confidence": 1, "text": "Nearly 1 out of 3 members achieved goals " }, { "bbox": [ 1.6645456949869792, 0.6536976207386364, 1.893207425385519, 0.6637544728288747 ], "ocr": false, "ocr_confidence": 1, "text": "indicating a significant improvement in " }, { "bbox": [ 1.6645456949869792, 0.666379446935172, 1.793148664088031, 0.6763794638893821 ], "ocr": false, "ocr_confidence": 1, "text": "depression symptoms." }, { "bbox": [ 1.664575115527982, 0.6903794413865215, 1.7498545927159928, 0.697345348319622 ], "ocr": false, "ocr_confidence": 1, "text": "COST SAVINGS" }, { "bbox": [ 1.6645456949869792, 0.7020726059422349, 1.89411936242596, 0.7122317034788807 ], "ocr": false, "ocr_confidence": 1, "text": "Healthcare costs averaged $2,213 lower " }, { "bbox": [ 1.6645162744459763, 0.7147998809814453, 1.9095161787045547, 0.7248566945393881 ], "ocr": false, "ocr_confidence": 1, "text": "than members identified but not engaged." } ]
[ { "bbox": [ 0.10342735091066049, 0.11228696264401831, 0.27201494204452614, 0.12283063175702336 ], "data": [], "index_in_doc": 472, "label": "section_header", "text": "FINDING NEW WAYS" }, { "bbox": [ 0.10173329496695326, 0.15543434836647727, 0.9001243441712623, 0.3009984180180713 ], "data": [], "index_in_doc": 473, "label": "text", "text": "At Centene, we believe in finding new and effective solutions that respond to the complex health needs of our members. By combining active local involvement in the communities that we serve with a focus on the individual, and a commitment to treat the whole person, Centene has been able to establish programs that work to remove many of the barriers that healthcare consumers face. Oftentimes these successful health management programs are a result of collaborations with community partners and other stakeholders." }, { "bbox": [ 0.10479956982182521, 0.3512887665719697, 0.4662715438144659, 0.36087402189620815 ], "data": [], "index_in_doc": 474, "label": "section_header", "text": "PERSON-CENTERED INNOVATION AND TECHNOLOGY" }, { "bbox": [ 0.10381709204779731, 0.3677551577789615, 0.49420200921351615, 0.4498613916262232 ], "data": [], "index_in_doc": 475, "label": "text", "text": "Centene has always emphasized innovation and a technology strategy that prioritize our members' healthcare needs. Our Health Care Enterprise group of companies exemplifies how we put our members at the center of all we do - developing better tools and techniques by first understanding their increasingly complex needs." }, { "bbox": [ 0.103342162238227, 0.45904344500917377, 0.48683276207618464, 0.6233265809338502 ], "data": [], "index_in_doc": 476, "label": "text", "text": "AcariaHealth matches members with chronic conditions with the specialty pharmaceuticals they need and works to ensure that they adhere to their medication routines. Casenet's TruCare product has long served as the backbone of Centene's case management processes, and with the addition of integrated care and LTSS capabilities in recent releases, case managers have more tools than ever before. In an effort to empower case managers to help close quality and risk adjustment gaps, Centene made an investment in Interpreta, a modern analytics tool which is designed to identify those gaps and help health plans, providers and members close those gaps." }, { "bbox": [ 0.10369263443292356, 0.633409442323627, 0.49251262191074346, 0.7836514867917456 ], "data": [], "index_in_doc": 477, "label": "text", "text": "The Health Care Enterprise portfolio also includes two provider organizations, LifeShare and USMM. LifeShare provides both direct services and managed care services to individuals with intellectual and developmental disabilities. USMM offers a suite of services ranging from in-home physician visits, to durable medical equipment, hospice, and lab services for individuals who are homebound and have chronic conditions. In addition, USMM now offers care through the nation's largest multi-state Accountable Care Organization (ACO) and has improved outcomes for patients and achieved savings for CMS through that initiative." }, { "bbox": [ 0.10392767463634217, 0.8254749799015546, 0.48547328375523385, 0.877588522554648 ], "data": [], "index_in_doc": 478, "label": "text", "text": "Our Health Care Enterprise group of companies exemplifies how we put our members at the center of all we do." }, { "bbox": [ 0.513542873407501, 0.351396194612137, 0.7662302154341555, 0.3605051907626065 ], "data": [], "index_in_doc": 479, "label": "section_header", "text": "ADDRESSING A NATIONAL EPIDEMIC" }, { "bbox": [ 0.5135422251582925, 0.3677763890738439, 0.9230752583422692, 0.42154227362738717 ], "data": [], "index_in_doc": 480, "label": "text", "text": "According to a 2016 U.S. Department of Health and Human Services report, on an average day 78 people die from an opioid-related overdose, and $20 billion is spent annually for emergency department and inpatient care for opioid poisonings." }, { "bbox": [ 0.5137678158828636, 0.43115091805506234, 0.9158090828290952, 0.6230178601814039 ], "data": [], "index_in_doc": 481, "label": "text", "text": "With the reality of the nation's opioid epidemic becoming evident in every state in both urban and rural communities, and across social and economic groups, Centene's clinical leadership mobilized in 2016 to launch an enterprise-wide Opioid Management Strategy. Designed to prevent members from overusing or misusing opioid medications, the program involves the establishment of three advisory teams. One group focuses on pharmacy education and outreach, another group works on provider engagement, and the Member Intervention Advisory Group identifies high-risk members for targeted intervention and preventive education. Through collaboration, education and the use of Centene's business intelligence tools, our health plans are looking to this proactive program to help them address this national epidemic." }, { "bbox": [ 0.5134987924613205, 0.6333780770349984, 0.9269151874617034, 0.8934919569227431 ], "data": [], "index_in_doc": 482, "label": "text", "text": "One example of programs already operating is in Massachusetts. CeltiCare Health noted that one fourth of their hospital admissions were due to substance abuse in 2015, and more than 10 percent of the health plan's budget was supporting medication to treat addiction. CeltiCare Health launched a state-wide effort to educate both providers and members on prevention, intervention, treatment, and recovery methods. Recognized as a \"Game Changer\" by the Boston Globe, CeltiCare Health today has a full time substance use disorder case manager, distributes atomizers for the easy use of the overdose drug Naloxone, supports Peer Recovery Coach academies, and has a permanent task force constantly looking for ways to reduce the incidence of substance use disorders. The Medical Management team at CeltiCare Health also works with its network of providers to review prescribing practices, including the percentage of their prescriptions that are controlled substances. Follow up with providers who are suspected of over-prescribing can be as simple as face-to-face education." }, { "bbox": [ 1.0481143527560763, 0.1285649309254656, 1.224143732606975, 0.14891846011383364 ], "data": [], "index_in_doc": 483, "label": "text", "text": "REDUCING AVOIDABLE HOSPITAL READMISSIONS" }, { "bbox": [ 1.0470522213605493, 0.1567593969479956, 1.3285864537058314, 0.4292215674814552 ], "data": [], "index_in_doc": 484, "label": "text", "text": "Preventable hospital readmissions not only cause damaging effects on patients' quality of life, but are also major sources of unnecessary healthcare costs. Seeking to address this challenge within the healthcare system, we developed a multidisciplinary and collaborative posthospitalization outreach program, including concurrent review of discharge instructions, medication adherence assessment, disease-specific education with the Teach Back method, and telephonic outreach by care management staff. Results in 2015 demonstrated that our proactive outreach to members within 10 days of discharge significantly reduced readmissions at 3 30 days while saving appropriately $5.8 million. Since its initial launch, we have improved the program with the integration of a Readmission Risk Score to further" }, { "bbox": [ 1.0478529587290646, 0.43453725179036456, 1.2812826119217218, 0.44562310883493134 ], "data": [], "index_in_doc": 485, "label": "text", "text": "improve outcomes and cost savings." }, { "bbox": [ 1.0474955240885417, 0.48943355830028806, 1.1111626718558518, 0.5085585623076467 ], "data": [], "index_in_doc": 486, "label": "text", "text": "10%" }, { "bbox": [ 1.0456682591656454, 0.5147058120881668, 1.1915491640178206, 0.5372171498308278 ], "data": [], "index_in_doc": 487, "label": "text", "text": "year-over-year decrease in hospital readmission" }, { "bbox": [ 1.0470359652650123, 0.5508213621197324, 1.1076241287530637, 0.5577759020256273 ], "data": [], "index_in_doc": 488, "label": "text", "text": "TOTALING" }, { "bbox": [ 1.0474476533777572, 0.5748900596541587, 1.21630071502885, 0.6101395578095408 ], "data": [], "index_in_doc": 489, "label": "text", "text": "$5.8M approximate savings in 2015" }, { "bbox": [ 1.3547842985664318, 0.1412923022954151, 1.464915057412939, 0.14901956885752052 ], "data": [], "index_in_doc": 490, "label": "text", "text": "TURNING POINT" }, { "bbox": [ 1.354866077697355, 0.15677211260554766, 1.6184429093903185, 0.2071003769383286 ], "data": [], "index_in_doc": 491, "label": "text", "text": "Children in the Texas foster care system are admitted into inpatient psychiatric facilities at a higher rate than children outside of foster care. These admissions" }, { "bbox": [ 1.3547842985664318, 0.2123276681611032, 1.641349742615145, 0.3459893428918087 ], "data": [], "index_in_doc": 492, "label": "text", "text": "often cause a disruption in foster home placement and result in higher readmission rates to inpatient facilities. To break this cycle, Centene's behavioral health and foster care subsidiary worked with multiple child-placing agencies and local psychiatrists in Fort Worth, Texas to launch the Turning Point program. The program offers an alternative to inpatient psychiatric admission for children in foster care." }, { "bbox": [ 1.3547842985664318, 0.3513049501361269, 1.6373791663475286, 0.4741333084877091 ], "data": [], "index_in_doc": 493, "label": "text", "text": "Patients are treated in a home setting, staffed by a team of dedicated behavioral health professionals. Program results show a 34 percent decrease in 90-day readmissions to an inpatient psychiatric facility among the members enrolled. Turning Point's success has led to a decision by Centene to expand the program to other Texas communities." }, { "bbox": [ 1.3557532815372242, 0.5142481254808831, 1.5578120611851511, 0.5221117578371607 ], "data": [], "index_in_doc": 494, "label": "text", "text": "Division Treatment - Readmission" }, { "bbox": [ 1.3555653889973958, 0.5273687189275568, 1.5063987183415033, 0.5368668141991201 ], "data": [], "index_in_doc": 495, "label": "text", "text": "(percentage of population)" }, { "bbox": [ 1.36078628839231, 0.5551266140407987, 1.3697862812117034, 0.5853993194271819 ], "data": [], "index_in_doc": 496, "label": "text", "text": "38.4%" }, { "bbox": [ 1.411114661522161, 0.5883555942111545, 1.4201146543415544, 0.616605585271662 ], "data": [], "index_in_doc": 497, "label": "text", "text": "27.5%" }, { "bbox": [ 1.462190216662837, 0.591649758695352, 1.4711902094822304, 0.6219792992177636 ], "data": [], "index_in_doc": 498, "label": "text", "text": "24.8%" }, { "bbox": [ 1.3821936713324652, 0.6865765350033538, 1.3881250518599366, 0.7043795537466955 ], "data": [], "index_in_doc": 499, "label": "text", "text": "none" }, { "bbox": [ 1.4308380924798305, 0.6705916818946299, 1.4391837525211908, 0.7043795537466955 ], "data": [], "index_in_doc": 500, "label": "text", "text": "crisis line" }, { "bbox": [ 1.482136146695006, 0.6669467964557686, 1.4905151167726205, 0.7043781280517578 ], "data": [], "index_in_doc": 501, "label": "text", "text": "admission" }, { "bbox": [ 1.353341495289522, 0.7207556830512153, 1.6241487989238663, 0.7790511352847321 ], "data": [], "index_in_doc": 502, "label": "text", "text": "We saw a difference in the readmission rates for children at each level of intervention by the Turning Point Program - crisis intervention alone, admission to crisis residential, and a combination." }, { "bbox": [ 1.5223856408611622, 0.6156988432913115, 1.5604297912198735, 0.6226533831972064 ], "data": [], "index_in_doc": 503, "label": "text", "text": "25.5%" }, { "bbox": [ 1.5223611071218852, 0.6332330029420178, 1.5905719831878065, 0.6522955075658933 ], "data": [], "index_in_doc": 504, "label": "text", "text": "combination of intervention" }, { "bbox": [ 1.665212394365298, 0.1412923022954151, 1.8612417582592933, 0.14901956885752052 ], "data": [], "index_in_doc": 505, "label": "text", "text": "MODIFIED IMPACT PROGRAM" }, { "bbox": [ 1.6641502629697713, 0.15686050569168244, 1.947253258399714, 0.3459893428918087 ], "data": [], "index_in_doc": 506, "label": "text", "text": "Illnesses like sickle cell anemia, diabetes or heart disease are often aggravated by newly diagnosed, undiagnosed or undertreated behavioral health conditions, with depression being top concern. Sunshine Health, Centene's Florida health plan, and Cenpatico, Centene's behavioral health specialty company, joined a Florida-based medical center, Family Care Partners, to introduce Modified IMPACT (Improving Mood Providing Access to Collaborative Treatment) program. Members are identified and assigned to a Cenpatico wellness coach who is located at the" }, { "bbox": [ 1.6647222182329964, 0.3512166341145833, 1.9426273520475899, 0.3737670821372909 ], "data": [], "index_in_doc": 507, "label": "text", "text": "medical center, allowing for better coordination with medical staff. The coach" }, { "bbox": [ 1.6641502629697713, 0.3789943733600655, 1.9181536506204044, 0.38765597102617977 ], "data": [], "index_in_doc": 508, "label": "text", "text": "will assess initial needs of the member" }, { "bbox": [ 1.6646405388327206, 0.39297165533508915, 1.9386716356464462, 0.40154485991506866 ], "data": [], "index_in_doc": 509, "label": "text", "text": "and coordinate behavioral healthcare and" }, { "bbox": [ 1.6641502629697713, 0.4068605827562737, 1.9496715271395015, 0.5157999751543758 ], "data": [], "index_in_doc": 510, "label": "text", "text": "community support, as well as consult with primary care providers. The results show a decrease in depression symptoms among members, as well as a finding that patients enrolled in the program were connected to behavioral health services 67 percent more often than patients outside of the enrolled group." }, { "bbox": [ 1.664251589307598, 0.5555498913081005, 1.9254132439108456, 0.6152771843804253 ], "data": [], "index_in_doc": 511, "label": "text", "text": "PATIENT OUTCOMES Sixty-seven percent were connected to behavioral health services, nearly double the rate of those identified but not engaged in the program." }, { "bbox": [ 1.6645456949869792, 0.6292771618775647, 1.9041486752578636, 0.6763794638893821 ], "data": [], "index_in_doc": 512, "label": "text", "text": "CLINICIAN OUTCOMES Nearly 1 out of 3 members achieved goals indicating a significant improvement in depression symptoms." }, { "bbox": [ 1.6645162744459763, 0.6903794413865215, 1.9095161787045547, 0.7248566945393881 ], "data": [], "index_in_doc": 513, "label": "text", "text": "COST SAVINGS Healthcare costs averaged $2,213 lower than members identified but not engaged." }, { "bbox": [ 1.678134294896344, 0.9518996200176201, 1.9463550841886235, 0.9613440638840801 ], "data": [], "index_in_doc": 514, "label": "text", "text": "Finding New Ways CENTENE CORPORATION 13" } ]
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FINDING NEW WAYS At Centene, we believe in finding new and effective solutions that respond to the the communities that we serve with a focus on the individual, and a commitment work to remove many of the barriers that healthcare consumers face. Oftentimes community partners and other stakeholders. PERSON-CENTERED INNOVATION AND TECHNOLOGY strategy that prioritize our members' healthcare needs. Our we put our members at the center of all we do - developing with the specialty pharmaceuticals they need and works to ensure that they adhere to their medication routines. Casenet's TruCare product has long served as the backbone of Centene's case management processes, and with the Centene has always emphasized innovation and a technology Health Care Enterprise group of companies exemplifies how better tools and techniques by first understanding their AcariaHealth matches members with chronic conditions ADDRESSING A NATIONAL EPIDEMIC Services report, on an average day 78 people die from an emergency department and inpatient care for opioid poisonings. evident in every state in both urban and rural communities, complex health needs of our members. By combining active local involvement in to treat the whole person, Centene has been able to establish programs that these successful health management programs are a result of collaborations with Centene has always emphasized innovation and a technology Health Care Enterprise group of companies exemplifies how better tools and techniques by first understanding their increasingly complex needs. complex health needs of our members. By combining active local involvement in to treat the whole person, Centene has been able to establish programs that these successful health management programs are a result of collaborations with According to a 2016 U.S. Department of Health and Human opioid-related overdose, and $20 billion is spent annually for With the reality of the nation's opioid epidemic becoming and across social and economic groups, Centene's clinical addition of integrated care and LTSS capabilities in recent addition of integrated care and LTSS capabilities in recent ADDRESSING A NATIONAL EPIDEMIC Services report, on an average day 78 people die from an emergency department and inpatient care for opioid poisonings. evident in every state in both urban and rural communities, leadership mobilized in 2016 to launch an enterprise-wide Opioid Management Strategy. Designed to prevent members from overusing or misusing opioid medications, the program complex health needs of our members. By combining active local involvement in to treat the whole person, Centene has been able to establish programs that these successful health management programs are a result of collaborations with identify those gaps and help health plans, providers and members close those gaps. physician visits, to durable medical equipment, hospice, and lab services for individuals who are homebound and have chronic conditions. In addition, USMM now offers care through the nation's largest multi-state Accountable Care Organization (ACO) and has improved outcomes for patients prevention, intervention, treatment, and recovery methods. Recognized as a "Game Changer" by the Boston Globe, CeltiCare Health today has a full time substance use disorder case manager, distributes atomizers for the easy use of the and achieved savings for CMS through that initiative. Our Health Care Enterprise group of companies exemplifies how we put our members at the center of all we do. involves the establishment of three advisory teams. One group focuses on pharmacy education and outreach, another group works on provider engagement, and the Member Intervention intervention and preventive education. Through collaboration, education and the use of Centene's business intelligence tools, our health plans are looking to this proactive program to help CeltiCare Health noted that one fourth of their hospital than 10 percent of the health plan's budget was supporting medication to treat addiction. CeltiCare Health launched a One example of programs already operating is in Massachusetts. admissions were due to substance abuse in 2015, and more One example of programs already operating is in Massachusetts. admissions were due to substance abuse in 2015, and more state-wide effort to educate both providers and members on prevention, intervention, treatment, and recovery methods. overdose drug Naloxone, supports Peer Recovery Coach academies, and has a permanent task force constantly looking for ways to reduce the incidence of substance use disorders. The Medical Management team at CeltiCare Health also works with its network of providers to review prescribing practices, including the percentage of their prescriptions that are controlled substances. Follow up with providers who are suspected of over-prescribing can be as simple as face-to-face education. REDUCING AVOIDABLE HOSPITAL READMISSIONS Preventable hospital readmissions not only cause damaging effects on patients' quality of life, but are also major sources of unnecessary healthcare costs. Seeking to address this challenge within the healthcare system, we developed a multidisciplinary and collaborative posthospitalization outreach program, including concurrent review of discharge instructions, medication adherence assessment, disease-specific education with the Teach Back method, and telephonic outreach by care management staff. Results in 2015 demonstrated that our proactive outreach to members within 10 days of discharge significantly reduced readmissions at 3 30 days while saving appropriately $5.8 million. Since its initial launch, we have improved the program with the integration of a Readmission Risk Score to further improve outcomes and cost savings. 10% year-over-year decrease in hospital readmission TOTALING $5.8M approximate savings in 2015 TURNING POINT Children in the Texas foster care system are admitted into inpatient psychiatric facilities at a higher rate than children outside of foster care. These admissions often cause a disruption in foster home placement and result in higher readmission rates to inpatient facilities. To break this cycle, Centene's behavioral health and foster care subsidiary worked with multiple child-placing agencies and local psychiatrists in Fort Worth, Texas to launch the Turning Point program. The program offers an alternative to inpatient psychiatric admission for children in foster care. Patients are treated in a home setting, staffed by a team of dedicated behavioral health professionals. Program results show a 34 percent decrease in 90-day readmissions to an inpatient psychiatric facility among the members enrolled. Turning Point's success has led to a decision by Centene to expand the program to other Texas communities. Division Treatment - Readmission (percentage of population) 38.4% 27.5% 24.8% none crisis line admission We saw a difference in the readmission rates for children at each level of intervention by the Turning Point Program - crisis intervention alone, admission to crisis residential, and a combination. 25.5% combination of intervention MODIFIED IMPACT PROGRAM Illnesses like sickle cell anemia, diabetes or heart disease are often aggravated by newly diagnosed, undiagnosed or undertreated behavioral health conditions, with depression being top concern. Sunshine Health, Centene's Florida health plan, and Cenpatico, Centene's behavioral health specialty company, joined a Florida-based medical center, Family Care Partners, to introduce Modified IMPACT (Improving Mood Providing Access to Collaborative Treatment) program. Members are identified and assigned to a Cenpatico wellness coach who is located at the medical center, allowing for better coordination with medical staff. The coach will assess initial needs of the member and coordinate behavioral healthcare and community support, as well as consult with primary care providers. The results show a decrease in depression symptoms among members, as well as a finding that patients enrolled in the program were connected to behavioral health services 67 percent more often than patients outside of the enrolled group. PATIENT OUTCOMES Sixty-seven percent were connected to behavioral health services, nearly double the rate of those identified but not engaged in the program. CLINICIAN OUTCOMES Nearly 1 out of 3 members achieved goals indicating a significant improvement in depression symptoms. COST SAVINGS Healthcare costs averaged $2,213 lower than members identified but not engaged. Finding New Ways CENTENE CORPORATION 13
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Our " }, { "bbox": [ 0.1062772788253485, 0.3960356278852983, 0.48647323309206497, 0.40720987801599984 ], "ocr": false, "ocr_confidence": 1, "text": "Health Care Enterprise group of companies exemplifies how " }, { "bbox": [ 0.1053785810283586, 0.4099245167741872, 0.48985569773156656, 0.42109876690488873 ], "ocr": false, "ocr_confidence": 1, "text": "we put our members at the center of all we do — developing " }, { "bbox": [ 0.1062772788253485, 0.42381340566307607, 0.4591529696595435, 0.43498765579377763 ], "ocr": false, "ocr_confidence": 1, "text": "better tools and techniques by first understanding their " }, { "bbox": [ 0.10606485254624311, 0.43779068763809975, 0.28274620903862846, 0.4488765446826665 ], "ocr": false, "ocr_confidence": 1, "text": "increasingly complex needs." }, { "bbox": [ 0.104430871851304, 0.4592553341027462, 0.4713377609751583, 0.46782853868272567 ], "ocr": false, "ocr_confidence": 1, "text": "AcariaHealth matches members with chronic conditions " }, { "bbox": [ 0.10539492438821231, 0.4731442229916351, 0.4733133253708384, 0.4841922027896149 ], "ocr": false, "ocr_confidence": 1, "text": "with the specialty pharmaceuticals they need and works " }, { "bbox": [ 0.10539492438821231, 0.487033111880524, 0.46926261552798204, 0.4980810916785038 ], "ocr": false, "ocr_confidence": 1, "text": "to ensure that they adhere to their medication routines. " }, { "bbox": [ 0.10539492438821231, 0.500808369029652, 0.4857053569718903, 0.5120078578139796 ], "ocr": false, "ocr_confidence": 1, "text": "Casenet’s TruCare product has long served as the backbone " }, { "bbox": [ 0.10562368156084048, 0.5146972579185409, 0.45887357425066383, 0.5258967467028686 ], "ocr": false, "ocr_confidence": 1, "text": "of Centene’s case management processes, and with the " }, { "bbox": [ 0.10562368156084048, 0.5286113854610559, 0.4720287447661356, 0.5397856355917574 ], "ocr": false, "ocr_confidence": 1, "text": "addition of integrated care and LTSS capabilities in recent " }, { "bbox": [ 0.1062936221852022, 0.5425003128822403, 0.4800157733992034, 0.5536745630129419 ], "ocr": false, "ocr_confidence": 1, "text": "releases, case managers have more tools than ever before. " }, { "bbox": [ 0.1062772788253485, 0.5563892017711293, 0.48683276207618464, 0.5675634519018308 ], "ocr": false, "ocr_confidence": 1, "text": "In an effort to empower case managers to help close quality " }, { "bbox": [ 0.10562368156084048, 0.570366483746153, 0.4760647443384906, 0.5814523407907197 ], "ocr": false, "ocr_confidence": 1, "text": "and risk adjustment gaps, Centene made an investment in " }, { "bbox": [ 0.1062772788253485, 0.5842553726350418, 0.4612918429904514, 0.5953412296796086 ], "ocr": false, "ocr_confidence": 1, "text": "Interpreta, a modern analytics tool which is designed to " }, { "bbox": [ 0.10608119590609681, 0.5980558684377959, 0.46393894370085276, 0.6092301185684975 ], "ocr": false, "ocr_confidence": 1, "text": "identify those gaps and help health plans, providers and " }, { "bbox": [ 0.1062936221852022, 0.6120331889451153, 0.27743734721264807, 0.6231190459896819 ], "ocr": false, "ocr_confidence": 1, "text": "members close those gaps." }, { "bbox": [ 0.10420211467867584, 0.633409442323627, 0.4663609024745966, 0.6444826607752328 ], "ocr": false, "ocr_confidence": 1, "text": "The Health Care Enterprise portfolio also includes two " }, { "bbox": [ 0.1062936221852022, 0.6472983312125158, 0.47009940552555657, 0.6584725813432173 ], "ocr": false, "ocr_confidence": 1, "text": "provider organizations, LifeShare and USMM. 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" }, { "bbox": [ 0.10608120837242775, 0.6889649978791824, 0.45601604187410644, 0.700139248009884 ], "ocr": false, "ocr_confidence": 1, "text": "USMM offers a suite of services ranging from in-home " }, { "bbox": [ 0.1062936221852022, 0.7029422798542061, 0.47920232037313626, 0.7139902596521859 ], "ocr": false, "ocr_confidence": 1, "text": "physician visits, to durable medical equipment, hospice, " }, { "bbox": [ 0.10563999998803232, 0.7167427756569602, 0.4782545301649306, 0.7254043925892223 ], "ocr": false, "ocr_confidence": 1, "text": "and lab services for individuals who are homebound and " }, { "bbox": [ 0.10630992814606312, 0.7306316645458492, 0.4780239030426624, 0.7405432884139244 ], "ocr": false, "ocr_confidence": 1, "text": "have chronic conditions. 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" }, { "bbox": [ 0.1056124244640076, 0.8255179241450146, 0.48547328375523385, 0.8389270185220121 ], "ocr": false, "ocr_confidence": 1, "text": "Our Health Care Enterprise group of companies " }, { "bbox": [ 0.10584772646037582, 0.8444573277174824, 0.45520074383106107, 0.857866412461406 ], "ocr": false, "ocr_confidence": 1, "text": "exemplifies how we put our members at the " }, { "bbox": [ 0.10584772646037582, 0.8633967216568764, 0.2549046036464716, 0.8768058064008 ], "ocr": false, "ocr_confidence": 1, "text": "center of all we do." }, { "bbox": [ 0.51481244454976, 0.35276532413983586, 0.7653678943908292, 0.3605051907626065 ], "ocr": false, "ocr_confidence": 1, "text": "ADDRESSING A NATIONAL EPIDEMIC" }, { "bbox": [ 0.51481244454976, 0.3682577345106337, 0.8997095644084456, 0.3794319846413352 ], "ocr": false, "ocr_confidence": 1, "text": "According to a 2016 U.S. Department of Health and Human " }, { "bbox": [ 0.5157764908535029, 0.38214662339952254, 0.8863419676138684, 0.3933208735302241 ], "ocr": false, "ocr_confidence": 1, "text": "Services report, on an average day 78 people die from an " }, { "bbox": [ 0.5160052729587928, 0.39603551228841144, 0.9138908635557087, 0.40717188517252606 ], "ocr": false, "ocr_confidence": 1, "text": "opioid-related overdose, and $20 billion is spent annually for " }, { "bbox": [ 0.5160052729587928, 0.40992440117730033, 0.9223106234681373, 0.4210986513080019 ], "ocr": false, "ocr_confidence": 1, "text": "emergency department and inpatient care for opioid poisonings." }, { "bbox": [ 0.5155477586135365, 0.4313638089883207, 0.8803172392003676, 0.44256329777264836 ], "ocr": false, "ocr_confidence": 1, "text": "With the reality of the nation’s opioid epidemic becoming " }, { "bbox": [ 0.5160052729587928, 0.4453663296169705, 0.8939462300219567, 0.45641430941495026 ], "ocr": false, "ocr_confidence": 1, "text": "evident in every state in both urban and rural communities, " }, { "bbox": [ 0.5160052230934692, 0.4591415867660985, 0.8858727349175347, 0.47034107555042615 ], "ocr": false, "ocr_confidence": 1, "text": "and across social and economic groups, Centene’s clinical " }, { "bbox": [ 0.5166751637178308, 0.47314410739474827, 0.8847305198120915, 0.4841289327602194 ], "ocr": false, "ocr_confidence": 1, "text": "leadership mobilized in 2016 to launch an enterprise-wide " }, { "bbox": [ 0.5157764908535029, 0.48703299628363717, 0.9000361822789011, 0.49811885332820394 ], "ocr": false, "ocr_confidence": 1, "text": "Opioid Management Strategy. Designed to prevent members " }, { "bbox": [ 0.5157764409881791, 0.5008335306186869, 0.9016259885301777, 0.5120077807493885 ], "ocr": false, "ocr_confidence": 1, "text": "from overusing or misusing opioid medications, the program " }, { "bbox": [ 0.5164463816125409, 0.5147224195075758, 0.9135197658164829, 0.5258966696382773 ], "ocr": false, "ocr_confidence": 1, "text": "involves the establishment of three advisory teams. One group " }, { "bbox": [ 0.5157764409881791, 0.5286113083964646, 0.9070999045777165, 0.5397855585271661 ], "ocr": false, "ocr_confidence": 1, "text": "focuses on pharmacy education and outreach, another group " }, { "bbox": [ 0.5157764908535029, 0.5425885903714883, 0.9085214652267157, 0.5536744474160551 ], "ocr": false, "ocr_confidence": 1, "text": "works on provider engagement, and the Member Intervention " }, { "bbox": [ 0.51481244454976, 0.5563890861742424, 0.8958094977085886, 0.5675633363049439 ], "ocr": false, "ocr_confidence": 1, "text": "Advisory Group identifies high-risk members for targeted " }, { "bbox": [ 0.5164463816125409, 0.5703663681492661, 0.9125557693780637, 0.5814522251938329 ], "ocr": false, "ocr_confidence": 1, "text": "intervention and preventive education. Through collaboration, " }, { "bbox": [ 0.5160052729587928, 0.5841416252983941, 0.9158090828290952, 0.5953411140827217 ], "ocr": false, "ocr_confidence": 1, "text": "education and the use of Centene’s business intelligence tools, " }, { "bbox": [ 0.5160052729587928, 0.5981441459270439, 0.9070672926559947, 0.6092300029716107 ], "ocr": false, "ocr_confidence": 1, "text": "our health plans are looking to this proactive program to help " }, { "bbox": [ 0.5157764908535029, 0.6120330348159327, 0.7495672687206393, 0.6230178601814039 ], "ocr": false, "ocr_confidence": 1, "text": "them address this national epidemic." }, { "bbox": [ 0.5157764908535029, 0.6334092881944444, 0.9269151874617034, 0.644583538325146 ], "ocr": false, "ocr_confidence": 1, "text": "One example of programs already operating is in Massachusetts. " }, { "bbox": [ 0.5157764908535029, 0.647298215615629, 0.8923944211473652, 0.6583714340672349 ], "ocr": false, "ocr_confidence": 1, "text": "CeltiCare Health noted that one fourth of their hospital " }, { "bbox": [ 0.5160052230934692, 0.6612754975906526, 0.9026539123136234, 0.6710987283725931 ], "ocr": false, "ocr_confidence": 1, "text": "admissions were due to substance abuse in 2015, and more " }, { "bbox": [ 0.5157764908535029, 0.6750507547397806, 0.906610027637357, 0.6862502435241082 ], "ocr": false, "ocr_confidence": 1, "text": "than 10 percent of the health plan’s budget was supporting " }, { "bbox": [ 0.5166751637178308, 0.6890532753684304, 0.8945788215188419, 0.6976264992145577 ], "ocr": false, "ocr_confidence": 1, "text": "medication to treat addiction. CeltiCare Health launched a " }, { "bbox": [ 0.5160052230934692, 0.7028537711711845, 0.9071589451210171, 0.7139270088889382 ], "ocr": false, "ocr_confidence": 1, "text": "state-wide effort to educate both providers and members on " }, { "bbox": [ 0.5166751637178308, 0.7168310531462082, 0.9014579423891953, 0.727879032944188 ], "ocr": false, "ocr_confidence": 1, "text": "prevention, intervention, treatment, and recovery methods. " }, { "bbox": [ 0.5166752135831546, 0.7306062910291884, 0.8851723265803717, 0.7418057990796638 ], "ocr": false, "ocr_confidence": 1, "text": "Recognized as a “Game Changer” by the Boston Globe, " }, { "bbox": [ 0.5157764908535029, 0.7445204763701467, 0.9105901780471303, 0.7556568492542614 ], "ocr": false, "ocr_confidence": 1, "text": "CeltiCare Health today has a full time substance use disorder " }, { "bbox": [ 0.5160052729587928, 0.7584093652590357, 0.8987781798917484, 0.7695836153897372 ], "ocr": false, "ocr_confidence": 1, "text": "case manager, distributes atomizers for the easy use of the " }, { "bbox": [ 0.5160052729587928, 0.7723866087017637, 0.8770626292509192, 0.7834724657463304 ], "ocr": false, "ocr_confidence": 1, "text": "overdose drug Naloxone, supports Peer Recovery Coach " }, { "bbox": [ 0.5160052230934692, 0.7861871045045178, 0.9200674817453023, 0.7973613546352194 ], "ocr": false, "ocr_confidence": 1, "text": "academies, and has a permanent task force constantly looking " }, { "bbox": [ 0.5157764908535029, 0.8000759548611112, 0.9066524131625306, 0.8112123277452257 ], "ocr": false, "ocr_confidence": 1, "text": "for ways to reduce the incidence of substance use disorders. " }, { "bbox": [ 0.5145673564836091, 0.8140532368361347, 0.9155249502144608, 0.8251390938807015 ], "ocr": false, "ocr_confidence": 1, "text": "The Medical Management team at CeltiCare Health also works " }, { "bbox": [ 0.5157764908535029, 0.8278536941065933, 0.9065396178002451, 0.8390279346042209 ], "ocr": false, "ocr_confidence": 1, "text": "with its network of providers to review prescribing practices, " }, { "bbox": [ 0.5164464314778646, 0.8417425829954822, 0.8833241182215074, 0.8529168234931098 ], "ocr": false, "ocr_confidence": 1, "text": "including the percentage of their prescriptions that are " }, { "bbox": [ 0.5160052729587928, 0.8557198168051363, 0.8684564727583742, 0.8667046614367553 ], "ocr": false, "ocr_confidence": 1, "text": "controlled substances. Follow up with providers who " }, { "bbox": [ 0.5160052230934692, 0.8695203222409643, 0.8750250323925143, 0.8806945627385919 ], "ocr": false, "ocr_confidence": 1, "text": "are suspected of over-prescribing can be as simple as " }, { "bbox": [ 0.5157764908535029, 0.8834091725975576, 0.6637339872472426, 0.8920707895298197 ], "ocr": false, "ocr_confidence": 1, "text": "face-to-face education." }, { "bbox": [ 0.1049597995733124, 0.11312095565025253, 0.27172450146643945, 0.12240885724925031 ], "ocr": false, "ocr_confidence": 1, "text": "FINDING NEW WAYS" }, { "bbox": [ 0.10373431561039943, 0.15554393421519885, 0.8894426931742749, 0.17230532867739898 ], "ocr": false, "ocr_confidence": 1, "text": "At Centene, we believe in finding new and effective solutions that respond to the " }, { "bbox": [ 0.10459215500775505, 0.1770022613833649, 0.8890239241855596, 0.193763655845565 ], "ocr": false, "ocr_confidence": 1, "text": "complex health needs of our members. By combining active local involvement in " }, { "bbox": [ 0.10373431561039943, 0.19846058855153093, 0.8945871988932291, 0.21332804361979166 ], "ocr": false, "ocr_confidence": 1, "text": "the communities that we serve with a focus on the individual, and a commitment " }, { "bbox": [ 0.10373431561039943, 0.22005146681660354, 0.8511070301330167, 0.23668031018189709 ], "ocr": false, "ocr_confidence": 1, "text": "to treat the whole person, Centene has been able to establish programs that " }, { "bbox": [ 0.10373431561039943, 0.241377242887863, 0.8943177266837725, 0.25808176368173924 ], "ocr": false, "ocr_confidence": 1, "text": "work to remove many of the barriers that healthcare consumers face. Oftentimes " }, { "bbox": [ 0.10373431561039943, 0.26283557005602903, 0.9001243441712623, 0.2795969645182292 ], "ocr": false, "ocr_confidence": 1, "text": "these successful health management programs are a result of collaborations with " }, { "bbox": [ 0.10459215500775505, 0.28442644832110164, 0.5363740110708997, 0.3009984180180713 ], "ocr": false, "ocr_confidence": 1, "text": "community partners and other stakeholders." }, { "bbox": [ 1.0481143527560763, 0.1285649309254656, 1.2071176167407067, 0.13629219748757102 ], "ocr": false, "ocr_confidence": 1, "text": "REDUCING AVOIDABLE " }, { "bbox": [ 1.0481143527560763, 0.14117855495876735, 1.224143732606975, 0.14891846011383364 ], "ocr": false, "ocr_confidence": 1, "text": "HOSPITAL READMISSIONS" }, { "bbox": [ 1.048277711556628, 0.1567593969479956, 1.2981453689874387, 0.1677442608457623 ], "ocr": false, "ocr_confidence": 1, "text": "Preventable hospital readmissions not " }, { "bbox": [ 1.0476241766237746, 0.17053461556482796, 1.307753120372498, 0.18173410434915563 ], "ocr": false, "ocr_confidence": 1, "text": "only cause damaging effects on patients’ " }, { "bbox": [ 1.0476241766237746, 0.18444878163963857, 1.3080325656467013, 0.19558515452375316 ], "ocr": false, "ocr_confidence": 1, "text": "quality of life, but are also major sources " }, { "bbox": [ 1.0476241766237746, 0.19833767052852747, 1.3111044690499898, 0.2095118821269334 ], "ocr": false, "ocr_confidence": 1, "text": "of unnecessary healthcare costs. Seeking " }, { "bbox": [ 1.0470522213605493, 0.21231495250355115, 1.2862680472579657, 0.22340077101582229 ], "ocr": false, "ocr_confidence": 1, "text": "to address this challenge within the " }, { "bbox": [ 1.0481143527560763, 0.22620384139244, 1.283996781492545, 0.23725182119041982 ], "ocr": false, "ocr_confidence": 1, "text": "healthcare system, we developed a " }, { "bbox": [ 1.0481143527560763, 0.2400927302813289, 1.3020831338720384, 0.2511407100793087 ], "ocr": false, "ocr_confidence": 1, "text": "multidisciplinary and collaborative post\u0002" }, { "bbox": [ 1.0481143527560763, 0.2539816191702178, 1.3277204924938726, 0.26506743768248897 ], "ocr": false, "ocr_confidence": 1, "text": "hospitalization outreach program, including " }, { "bbox": [ 1.0476241766237746, 0.2677821149729719, 1.3285864537058314, 0.27895632657137787 ], "ocr": false, "ocr_confidence": 1, "text": "concurrent review of discharge instructions, " }, { "bbox": [ 1.0481143527560763, 0.28175939694799557, 1.2802516962188522, 0.29158258919764046 ], "ocr": false, "ocr_confidence": 1, "text": "medication adherence assessment, " }, { "bbox": [ 1.0476241766237746, 0.2955598927507497, 1.3146649528952206, 0.3066331497346512 ], "ocr": false, "ocr_confidence": 1, "text": "disease-specific education with the Teach " }, { "bbox": [ 1.048277711556628, 0.30953717472577336, 1.3151894363702512, 0.32058515452375314 ], "ocr": false, "ocr_confidence": 1, "text": "Back method, and telephonic outreach by " }, { "bbox": [ 1.0476241766237746, 0.32333767052852747, 1.292181276807598, 0.3345118821269334 ], "ocr": false, "ocr_confidence": 1, "text": "care management staff. Results in 2015" }, { "bbox": [ 1.0476241766237746, 0.33731502956814235, 1.3174443463094874, 0.3482998934659091 ], "ocr": false, "ocr_confidence": 1, "text": "demonstrated that our proactive outreach " }, { "bbox": [ 1.0470522213605493, 0.35111552537089646, 1.3008560479856004, 0.3622897369693024 ], "ocr": false, "ocr_confidence": 1, "text": "to members within 10 days of discharge " }, { "bbox": [ 1.0473790386922999, 0.3650043757274897, 1.3003184997957515, 0.3761786258581913 ], "ocr": false, "ocr_confidence": 1, "text": "significantly reduced readmissions at 3 30" }, { "bbox": [ 1.0476241766237746, 0.3789816577025134, 1.2798268436606413, 0.3900675147470802 ], "ocr": false, "ocr_confidence": 1, "text": "days while saving appropriately $5.8" }, { "bbox": [ 1.0481143527560763, 0.3928705465914023, 1.3050391502629697, 0.4026937773733428 ], "ocr": false, "ocr_confidence": 1, "text": "million. Since its initial launch, we have " }, { "bbox": [ 1.0478529587290646, 0.40675947401258683, 1.3264444388595282, 0.41784533105715355 ], "ocr": false, "ocr_confidence": 1, "text": "improved the program with the integration " }, { "bbox": [ 1.0476241766237746, 0.4205599698153409, 1.2962646484375, 0.4292215674814552 ], "ocr": false, "ocr_confidence": 1, "text": "of a Readmission Risk Score to further " }, { "bbox": [ 1.0478529587290646, 0.43453725179036456, 1.2812826119217218, 0.44562310883493134 ], "ocr": false, "ocr_confidence": 1, "text": "improve outcomes and cost savings." }, { "bbox": [ 1.0474955240885417, 0.48943355830028806, 1.1111626718558518, 0.5085585623076467 ], "ocr": false, "ocr_confidence": 1, "text": "10%" }, { "bbox": [ 1.0456682591656454, 0.5147058120881668, 1.1915491640178206, 0.5246830949879656 ], "ocr": false, "ocr_confidence": 1, "text": "year-over-year decrease " }, { "bbox": [ 1.0474476533777572, 0.527308069094263, 1.1862271377463747, 0.5372171498308278 ], "ocr": false, "ocr_confidence": 1, "text": "in hospital readmission" }, { "bbox": [ 1.0478999318640216, 0.5748900596541587, 1.1313097586039624, 0.5964056843459004 ], "ocr": false, "ocr_confidence": 1, "text": "$5.8M" }, { "bbox": [ 1.0474476533777572, 0.6001395408553306, 1.21630071502885, 0.6101395578095408 ], "ocr": false, "ocr_confidence": 1, "text": "approximate savings in 2015" }, { "bbox": [ 1.0470359652650123, 0.5508213621197324, 1.1076241287530637, 0.5577759020256273 ], "ocr": false, "ocr_confidence": 1, "text": "TOTALING" }, { "bbox": [ 1.3547842985664318, 0.1412923022954151, 1.464915057412939, 0.14901956885752052 ], "ocr": false, "ocr_confidence": 1, "text": "TURNING POINT" }, { "bbox": [ 1.3553562538296569, 0.15677211260554766, 1.614552317101971, 0.16790848548966225 ], "ocr": false, "ocr_confidence": 1, "text": "Children in the Texas foster care system " }, { "bbox": [ 1.355274574429381, 0.17074939458057134, 1.60733012280433, 0.18179737437855115 ], "ocr": false, "ocr_confidence": 1, "text": "are admitted into inpatient psychiatric " }, { "bbox": [ 1.354866077697355, 0.18454989038332545, 1.604632408790339, 0.19572410198173137 ], "ocr": false, "ocr_confidence": 1, "text": "facilities at a higher rate than children " }, { "bbox": [ 1.3553562538296569, 0.19843877927221434, 1.6184429093903185, 0.2071003769383286 ], "ocr": false, "ocr_confidence": 1, "text": "outside of foster care. These admissions " }, { "bbox": [ 1.3553562538296569, 0.2123276681611032, 1.6121340483621833, 0.22340092514500473 ], "ocr": false, "ocr_confidence": 1, "text": "often cause a disruption in foster home " }, { "bbox": [ 1.3558464299619588, 0.2263049501361269, 1.6394870733123978, 0.23739076864839803 ], "ocr": false, "ocr_confidence": 1, "text": "placement and result in higher readmission " }, { "bbox": [ 1.3558464299619588, 0.240105445938881, 1.618702707726971, 0.2511787029227825 ], "ocr": false, "ocr_confidence": 1, "text": "rates to inpatient facilities. To break this " }, { "bbox": [ 1.3553562538296569, 0.2539690576418482, 1.6075425490834354, 0.26513070771188446 ], "ocr": false, "ocr_confidence": 1, "text": "cycle, Centene’s behavioral health and " }, { "bbox": [ 1.354866077697355, 0.2678832237166588, 1.5808595146229065, 0.27901959660077336 ], "ocr": false, "ocr_confidence": 1, "text": "foster care subsidiary worked with " }, { "bbox": [ 1.3558464299619588, 0.2818605056916825, 1.6247157676547181, 0.2929463242039536 ], "ocr": false, "ocr_confidence": 1, "text": "multiple child-placing agencies and local " }, { "bbox": [ 1.3558464299619588, 0.2957493945805713, 1.6374608457478044, 0.30679737437855115 ], "ocr": false, "ocr_confidence": 1, "text": "psychiatrists in Fort Worth, Texas to launch " }, { "bbox": [ 1.3547842985664318, 0.3096382834694602, 1.6179330863204657, 0.3207241019817314 ], "ocr": false, "ocr_confidence": 1, "text": "the Turning Point program. The program " }, { "bbox": [ 1.3553562538296569, 0.3234387792722143, 1.641349742615145, 0.33457515215632894 ], "ocr": false, "ocr_confidence": 1, "text": "offers an alternative to inpatient psychiatric " }, { "bbox": [ 1.355274574429381, 0.3373277452256944, 1.5960392172819649, 0.3459893428918087 ], "ocr": false, "ocr_confidence": 1, "text": "admission for children in foster care. " }, { "bbox": [ 1.3560097887625102, 0.3513049501361269, 1.6058758505029616, 0.36239084571298924 ], "ocr": false, "ocr_confidence": 1, "text": "Patients are treated in a home setting, " }, { "bbox": [ 1.3551111158981821, 0.36510548447117663, 1.6268545911203023, 0.3762418573552912 ], "ocr": false, "ocr_confidence": 1, "text": "staffed by a team of dedicated behavioral " }, { "bbox": [ 1.3558464299619588, 0.3789943733600655, 1.6373791663475286, 0.39016862349076703 ], "ocr": false, "ocr_confidence": 1, "text": "health professionals. Program results show " }, { "bbox": [ 1.355274574429381, 0.39297165533508915, 1.5659281412760417, 0.404019635133069 ], "ocr": false, "ocr_confidence": 1, "text": "a 34 percent decrease in 90-day " }, { "bbox": [ 1.3558464299619588, 0.4068605827562737, 1.6171831118515114, 0.41790856255425346 ], "ocr": false, "ocr_confidence": 1, "text": "readmissions to an inpatient psychiatric " }, { "bbox": [ 1.354866077697355, 0.4206610785590278, 1.6011863159977533, 0.43183532868972935 ], "ocr": false, "ocr_confidence": 1, "text": "facility among the members enrolled. " }, { "bbox": [ 1.3547842985664318, 0.43452472879429055, 1.5860065136080475, 0.4457242175786182 ], "ocr": false, "ocr_confidence": 1, "text": "Turning Point’s success has led to a " }, { "bbox": [ 1.3553562538296569, 0.44852724942294037, 1.581923241708793, 0.45957522922092015 ], "ocr": false, "ocr_confidence": 1, "text": "decision by Centene to expand the " }, { "bbox": [ 1.3558464299619588, 0.46304745144314235, 1.6004689534505208, 0.4741333084877091 ], "ocr": false, "ocr_confidence": 1, "text": "program to other Texas communities. " }, { "bbox": [ 1.3557532815372242, 0.5142481254808831, 1.5578120611851511, 0.5221117578371607 ], "ocr": false, "ocr_confidence": 1, "text": "Division Treatment – Readmission " }, { "bbox": [ 1.3555653889973958, 0.5273687189275568, 1.5063987183415033, 0.5368668141991201 ], "ocr": false, "ocr_confidence": 1, "text": "(percentage of population)" }, { "bbox": [ 1.3560327268114276, 0.7207556830512153, 1.6156650119357638, 0.730812496609158 ], "ocr": false, "ocr_confidence": 1, "text": "We saw a difference in the readmission rates " }, { "bbox": [ 1.353341495289522, 0.7333806933778705, 1.604429656384038, 0.7434375069358132 ], "ocr": false, "ocr_confidence": 1, "text": "for children at each level of intervention by " }, { "bbox": [ 1.3551503100426368, 0.7460625003082584, 1.6241487989238663, 0.7560624979963206 ], "ocr": false, "ocr_confidence": 1, "text": "the Turning Point Program – crisis intervention " }, { "bbox": [ 1.3551797305836397, 0.7586874913687658, 1.5984870062934027, 0.7675852149423926 ], "ocr": false, "ocr_confidence": 1, "text": "alone, admission to crisis residential, and " }, { "bbox": [ 1.3551797305836397, 0.771312501695421, 1.442738551719516, 0.7790511352847321 ], "ocr": false, "ocr_confidence": 1, "text": "a combination." }, { "bbox": [ 1.5223856408611622, 0.6156988432913115, 1.5604297912198735, 0.6226533831972064 ], "ocr": false, "ocr_confidence": 1, "text": "25.5%" }, { "bbox": [ 1.5223611071218852, 0.6332330029420178, 1.581981284945619, 0.6396818450002959 ], "ocr": false, "ocr_confidence": 1, "text": "combination " }, { "bbox": [ 1.5223611071218852, 0.6439148103347933, 1.5905719831878065, 0.6522955075658933 ], "ocr": false, "ocr_confidence": 1, "text": "of intervention" }, { "bbox": [ 1.4308380924798305, 0.6705916818946299, 1.4391837525211908, 0.7043795537466955 ], "ocr": false, "ocr_confidence": 1, "text": "crisis line" }, { "bbox": [ 1.411114661522161, 0.5883555942111545, 1.4201146543415544, 0.616605585271662 ], "ocr": false, "ocr_confidence": 1, "text": "27.5%" }, { "bbox": [ 1.482136146695006, 0.6669467964557686, 1.4905151167726205, 0.7043781280517578 ], "ocr": false, "ocr_confidence": 1, "text": "admission" }, { "bbox": [ 1.462190216662837, 0.591649758695352, 1.4711902094822304, 0.6219792992177636 ], "ocr": false, "ocr_confidence": 1, "text": "24.8%" }, { "bbox": [ 1.3821936713324652, 0.6865765350033538, 1.3881250518599366, 0.7043795537466955 ], "ocr": false, "ocr_confidence": 1, "text": "none" }, { "bbox": [ 1.36078628839231, 0.5551266140407987, 1.3697862812117034, 0.5853993194271819 ], "ocr": false, "ocr_confidence": 1, "text": "38.4%" }, { "bbox": [ 1.665212394365298, 0.1412923022954151, 1.8612417582592933, 0.14901956885752052 ], "ocr": false, "ocr_confidence": 1, "text": "MODIFIED IMPACT PROGRAM" }, { "bbox": [ 1.6653757531658497, 0.15686050569168244, 1.943039040160335, 0.16668369794132734 ], "ocr": false, "ocr_confidence": 1, "text": "Illnesses like sickle cell anemia, diabetes or " }, { "bbox": [ 1.665212394365298, 0.17066100149443655, 1.9458789700776145, 0.18183521309284248 ], "ocr": false, "ocr_confidence": 1, "text": "heart disease are often aggravated by newly " }, { "bbox": [ 1.6647222182329964, 0.18463828346946023, 1.92758158764808, 0.19572410198173137 ], "ocr": false, "ocr_confidence": 1, "text": "diagnosed, undiagnosed or undertreated " }, { "bbox": [ 1.665212394365298, 0.19852717235834913, 1.8938072054993873, 0.208350364607994 ], "ocr": false, "ocr_confidence": 1, "text": "behavioral health conditions, with " }, { "bbox": [ 1.6647222182329964, 0.212416061247238, 1.9334658953099468, 0.22350187975950916 ], "ocr": false, "ocr_confidence": 1, "text": "depression being top concern. Sunshine " }, { "bbox": [ 1.6653757531658497, 0.2261912798640704, 1.947253258399714, 0.23728981403389363 ], "ocr": false, "ocr_confidence": 1, "text": "Health, Centene’s Florida health plan, and " }, { "bbox": [ 1.6647222182329964, 0.2400801687529593, 1.9211078718596815, 0.2511787029227825 ], "ocr": false, "ocr_confidence": 1, "text": "Cenpatico, Centene’s behavioral health " }, { "bbox": [ 1.6644770803015216, 0.2540827279139047, 1.941140567555147, 0.26513070771188446 ], "ocr": false, "ocr_confidence": 1, "text": "specialty company, joined a Florida-based " }, { "bbox": [ 1.665212394365298, 0.2679716168027936, 1.9264837526807599, 0.27901959660077336 ], "ocr": false, "ocr_confidence": 1, "text": "medical center, Family Care Partners, to " }, { "bbox": [ 1.6649510003382864, 0.2817721126055477, 1.9164346931806577, 0.2929463242039536 ], "ocr": false, "ocr_confidence": 1, "text": "introduce Modified IMPACT (Improving " }, { "bbox": [ 1.6653757531658497, 0.2957493945805713, 1.9300979913449754, 0.3068352130928425 ], "ocr": false, "ocr_confidence": 1, "text": "Mood Providing Access to Collaborative " }, { "bbox": [ 1.6641502629697713, 0.3096382834694602, 1.8964380999795751, 0.3207241019817314 ], "ocr": false, "ocr_confidence": 1, "text": "Treatment) program. Members are " }, { "bbox": [ 1.6649510003382864, 0.3234387792722143, 1.9215540667764501, 0.33461299087062024 ], "ocr": false, "ocr_confidence": 1, "text": "identified and assigned to a Cenpatico " }, { "bbox": [ 1.6641502629697713, 0.3374161383118292, 1.9104576360166463, 0.3459893428918087 ], "ocr": false, "ocr_confidence": 1, "text": "wellness coach who is located at the " }, { "bbox": [ 1.665212394365298, 0.3512166341145833, 1.8972712498085171, 0.36239084571298924 ], "ocr": false, "ocr_confidence": 1, "text": "medical center, allowing for better " }, { "bbox": [ 1.6647222182329964, 0.36510548447117663, 1.9426273520475899, 0.3737670821372909 ], "ocr": false, "ocr_confidence": 1, "text": "coordination with medical staff. The coach " }, { "bbox": [ 1.6641502629697713, 0.3789943733600655, 1.9181536506204044, 0.38765597102617977 ], "ocr": false, "ocr_confidence": 1, "text": "will assess initial needs of the member " }, { "bbox": [ 1.6646405388327206, 0.39297165533508915, 1.9386716356464462, 0.40154485991506866 ], "ocr": false, "ocr_confidence": 1, "text": "and coordinate behavioral healthcare and " }, { "bbox": [ 1.6647222182329964, 0.4068605827562737, 1.9496715271395015, 0.41790856255425346 ], "ocr": false, "ocr_confidence": 1, "text": "community support, as well as consult with " }, { "bbox": [ 1.665212394365298, 0.4207494716451626, 1.9423987694035947, 0.43179745144314235 ], "ocr": false, "ocr_confidence": 1, "text": "primary care providers. The results show a " }, { "bbox": [ 1.6647222182329964, 0.43463836053405147, 1.9361241159875409, 0.4457242175786182 ], "ocr": false, "ocr_confidence": 1, "text": "decrease in depression symptoms among " }, { "bbox": [ 1.665212394365298, 0.4484388563368056, 1.9457662744459763, 0.4596131064675071 ], "ocr": false, "ocr_confidence": 1, "text": "members, as well as a finding that patients " }, { "bbox": [ 1.6647222182329964, 0.4624161383118292, 1.9280032488255718, 0.473501995356396 ], "ocr": false, "ocr_confidence": 1, "text": "enrolled in the program were connected " }, { "bbox": [ 1.6641502629697713, 0.4763050272007181, 1.9260425442963645, 0.48728985256618923 ], "ocr": false, "ocr_confidence": 1, "text": "to behavioral health services 67 percent " }, { "bbox": [ 1.665212394365298, 0.4901055230034722, 1.9214052686504288, 0.5011787414550781 ], "ocr": false, "ocr_confidence": 1, "text": "more often than patients outside of the " }, { "bbox": [ 1.6647222182329964, 0.504714118109809, 1.7625473122191584, 0.5157999751543758 ], "ocr": false, "ocr_confidence": 1, "text": "enrolled group." }, { "bbox": [ 1.665089825399561, 0.5555498913081005, 1.7871927498212827, 0.5625157982412011 ], "ocr": false, "ocr_confidence": 1, "text": "PATIENT OUTCOMES" }, { "bbox": [ 1.664251589307598, 0.5674021557123974, 1.8863102532679739, 0.5774021726666074 ], "ocr": false, "ocr_confidence": 1, "text": "Sixty-seven percent were connected to " }, { "bbox": [ 1.6645456949869792, 0.5800271467729048, 1.9254132439108456, 0.590027163727115 ], "ocr": false, "ocr_confidence": 1, "text": "behavioral health services, nearly double the " }, { "bbox": [ 1.6645456949869792, 0.5925953412296796, 1.9092221727558212, 0.6026521933199179 ], "ocr": false, "ocr_confidence": 1, "text": "rate of those identified but not engaged in " }, { "bbox": [ 1.6645162744459763, 0.6052999014806266, 1.7398250804227942, 0.6152771843804253 ], "ocr": false, "ocr_confidence": 1, "text": "the program." }, { "bbox": [ 1.664575115527982, 0.6292771618775647, 1.793957479638991, 0.6362430688106653 ], "ocr": false, "ocr_confidence": 1, "text": "CLINICIAN OUTCOMES" }, { "bbox": [ 1.6645456949869792, 0.6410725911458334, 1.9041486752578636, 0.6511294432360717 ], "ocr": false, "ocr_confidence": 1, "text": "Nearly 1 out of 3 members achieved goals " }, { "bbox": [ 1.6645456949869792, 0.6536976207386364, 1.893207425385519, 0.6637544728288747 ], "ocr": false, "ocr_confidence": 1, "text": "indicating a significant improvement in " }, { "bbox": [ 1.6645456949869792, 0.666379446935172, 1.793148664088031, 0.6763794638893821 ], "ocr": false, "ocr_confidence": 1, "text": "depression symptoms." }, { "bbox": [ 1.664575115527982, 0.6903794413865215, 1.7498545927159928, 0.697345348319622 ], "ocr": false, "ocr_confidence": 1, "text": "COST SAVINGS" }, { "bbox": [ 1.6645456949869792, 0.7020726059422349, 1.89411936242596, 0.7122317034788807 ], "ocr": false, "ocr_confidence": 1, "text": "Healthcare costs averaged $2,213 lower " }, { "bbox": [ 1.6645162744459763, 0.7147998809814453, 1.9095161787045547, 0.7248566945393881 ], "ocr": false, "ocr_confidence": 1, "text": "than members identified but not engaged." } ]
[ { "bbox": [ 0.1049597995733124, 0.11312095565025253, 0.27172450146643945, 0.12240885724925031 ], "data": [], "index_in_doc": 515, "label": "text", "text": "FINDING NEW WAYS" }, { "bbox": [ 0.10373431561039943, 0.15554393421519885, 0.8894426931742749, 0.17230532867739898 ], "data": [], "index_in_doc": 516, "label": "text", "text": "At Centene, we believe in finding new and effective solutions that respond to the" }, { "bbox": [ 0.10373431561039943, 0.19846058855153093, 0.8945871988932291, 0.21332804361979166 ], "data": [], "index_in_doc": 517, "label": "text", "text": "the communities that we serve with a focus on the individual, and a commitment" }, { "bbox": [ 0.10373431561039943, 0.241377242887863, 0.8943177266837725, 0.25808176368173924 ], "data": [], "index_in_doc": 518, "label": "text", "text": "work to remove many of the barriers that healthcare consumers face. Oftentimes" }, { "bbox": [ 0.10459215500775505, 0.28442644832110164, 0.5363740110708997, 0.3009984180180713 ], "data": [], "index_in_doc": 519, "label": "text", "text": "community partners and other stakeholders." }, { "bbox": [ 0.1062772788253485, 0.35276540120442706, 0.4661627875434028, 0.36050530635949335 ], "data": [], "index_in_doc": 520, "label": "text", "text": "PERSON-CENTERED INNOVATION AND TECHNOLOGY" }, { "bbox": [ 0.1056073506673177, 0.3821215003427833, 0.48538985906862747, 0.39332098912711094 ], "data": [], "index_in_doc": 521, "label": "text", "text": "strategy that prioritize our members' healthcare needs. Our" }, { "bbox": [ 0.1053785810283586, 0.4099245167741872, 0.48985569773156656, 0.42109876690488873 ], "data": [], "index_in_doc": 522, "label": "text", "text": "we put our members at the center of all we do - developing" }, { "bbox": [ 0.10539492438821231, 0.4731442229916351, 0.4857053569718903, 0.5258967467028686 ], "data": [], "index_in_doc": 523, "label": "text", "text": "with the specialty pharmaceuticals they need and works to ensure that they adhere to their medication routines. Casenet's TruCare product has long served as the backbone of Centene's case management processes, and with the" }, { "bbox": [ 0.10373431561039943, 0.15572511306916825, 0.9223106234681373, 0.4746948010993726 ], "data": [], "index_in_doc": 524, "label": "text", "text": "Centene has always emphasized innovation and a technology Health Care Enterprise group of companies exemplifies how better tools and techniques by first understanding their AcariaHealth matches members with chronic conditions ADDRESSING A NATIONAL EPIDEMIC Services report, on an average day 78 people die from an emergency department and inpatient care for opioid poisonings. evident in every state in both urban and rural communities, complex health needs of our members. By combining active local involvement in to treat the whole person, Centene has been able to establish programs that these successful health management programs are a result of collaborations with" }, { "bbox": [ 0.0456135569055096, 0.15622310445766258, 0.9001243441712623, 0.4488765446826665 ], "data": [], "index_in_doc": 525, "label": "text", "text": "Centene has always emphasized innovation and a technology Health Care Enterprise group of companies exemplifies how better tools and techniques by first understanding their increasingly complex needs. complex health needs of our members. By combining active local involvement in to treat the whole person, Centene has been able to establish programs that these successful health management programs are a result of collaborations with" }, { "bbox": [ 0.51481244454976, 0.3682577345106337, 0.8997095644084456, 0.3794319846413352 ], "data": [], "index_in_doc": 526, "label": "text", "text": "According to a 2016 U.S. Department of Health and Human" }, { "bbox": [ 0.5160052729587928, 0.39603551228841144, 0.9138908635557087, 0.40717188517252606 ], "data": [], "index_in_doc": 527, "label": "text", "text": "opioid-related overdose, and $20 billion is spent annually for" }, { "bbox": [ 0.5155477586135365, 0.4313638089883207, 0.8803172392003676, 0.44256329777264836 ], "data": [], "index_in_doc": 528, "label": "text", "text": "With the reality of the nation's opioid epidemic becoming" }, { "bbox": [ 0.5160052230934692, 0.4591415867660985, 0.8858727349175347, 0.47034107555042615 ], "data": [], "index_in_doc": 529, "label": "text", "text": "and across social and economic groups, Centene's clinical" }, { "bbox": [ 0.10562368156084048, 0.5133163375083847, 0.5587435952978197, 0.5397856355917574 ], "data": [], "index_in_doc": 530, "label": "section_header", "text": "addition of integrated care and LTSS capabilities in recent" }, { "bbox": [ 0.10562368156084048, 0.5133163375083847, 0.5587435952978197, 0.5397856355917574 ], "data": [], "index_in_doc": 531, "label": "section_header", "text": "addition of integrated care and LTSS capabilities in recent" }, { "bbox": [ 0.10373431561039943, 0.15547195588699494, 0.9463941786024306, 0.5167590439921678 ], "data": [], "index_in_doc": 532, "label": "text", "text": "ADDRESSING A NATIONAL EPIDEMIC Services report, on an average day 78 people die from an emergency department and inpatient care for opioid poisonings. evident in every state in both urban and rural communities, leadership mobilized in 2016 to launch an enterprise-wide Opioid Management Strategy. Designed to prevent members from overusing or misusing opioid medications, the program complex health needs of our members. By combining active local involvement in to treat the whole person, Centene has been able to establish programs that these successful health management programs are a result of collaborations with" }, { "bbox": [ 0.10608119590609681, 0.5980558684377959, 0.46393894370085276, 0.6231190459896819 ], "data": [], "index_in_doc": 533, "label": "text", "text": "identify those gaps and help health plans, providers and members close those gaps." }, { "bbox": [ 0.1062936221852022, 0.7029422798542061, 0.47920232037313626, 0.7139902596521859 ], "data": [], "index_in_doc": 534, "label": "text", "text": "physician visits, to durable medical equipment, hospice," }, { "bbox": [ 0.10420211467867584, 0.5425003128822403, 0.9026539123136234, 0.7060704086766099 ], "data": [], "index_in_doc": 535, "label": "picture", "text": "" }, { "bbox": [ 0.10541123034907322, 0.7167427756569602, 0.9105901780471303, 0.77911376953125 ], "data": [], "index_in_doc": 536, "label": "text", "text": "and lab services for individuals who are homebound and have chronic conditions. In addition, USMM now offers care through the nation's largest multi-state Accountable Care Organization (ACO) and has improved outcomes for patients prevention, intervention, treatment, and recovery methods. Recognized as a \"Game Changer\" by the Boston Globe, CeltiCare Health today has a full time substance use disorder case manager, distributes atomizers for the easy use of the" }, { "bbox": [ 0.10563999998803232, 0.7722983312125158, 0.4347885231566585, 0.7834725813432173 ], "data": [], "index_in_doc": 537, "label": "text", "text": "and achieved savings for CMS through that initiative." }, { "bbox": [ 0.1056124244640076, 0.8255179241450146, 0.48547328375523385, 0.8389270185220121 ], "data": [], "index_in_doc": 538, "label": "text", "text": "Our Health Care Enterprise group of companies" }, { "bbox": [ 0.10584772646037582, 0.8444573277174824, 0.45520074383106107, 0.857866412461406 ], "data": [], "index_in_doc": 539, "label": "text", "text": "exemplifies how we put our members at the" }, { "bbox": [ 0.10584772646037582, 0.8633967216568764, 0.2549046036464716, 0.8768058064008 ], "data": [], "index_in_doc": 540, "label": "text", "text": "center of all we do." }, { "bbox": [ 0.5157764409881791, 0.5147224195075758, 0.9135197658164829, 0.5536744474160551 ], "data": [], "index_in_doc": 541, "label": "text", "text": "involves the establishment of three advisory teams. One group focuses on pharmacy education and outreach, another group works on provider engagement, and the Member Intervention" }, { "bbox": [ 0.5160052729587928, 0.5663524203830295, 0.9258423848868975, 0.6120330348159327 ], "data": [], "index_in_doc": 542, "label": "text", "text": "intervention and preventive education. Through collaboration, education and the use of Centene's business intelligence tools, our health plans are looking to this proactive program to help" }, { "bbox": [ 0.5157764908535029, 0.647298215615629, 0.8923944211473652, 0.6583714340672349 ], "data": [], "index_in_doc": 543, "label": "text", "text": "CeltiCare Health noted that one fourth of their hospital" }, { "bbox": [ 0.5157764908535029, 0.6750507547397806, 0.906610027637357, 0.6976264992145577 ], "data": [], "index_in_doc": 544, "label": "text", "text": "than 10 percent of the health plan's budget was supporting medication to treat addiction. CeltiCare Health launched a" }, { "bbox": [ 0.5157764908535029, 0.6334092881944444, 0.9269151874617034, 0.6770075788401594 ], "data": [], "index_in_doc": 545, "label": "text", "text": "One example of programs already operating is in Massachusetts. admissions were due to substance abuse in 2015, and more" }, { "bbox": [ 0.5157764908535029, 0.6334092881944444, 0.9269151874617034, 0.6770075788401594 ], "data": [], "index_in_doc": 546, "label": "text", "text": "One example of programs already operating is in Massachusetts. admissions were due to substance abuse in 2015, and more" }, { "bbox": [ 0.5160052230934692, 0.7014013733526673, 0.9104020860460069, 0.727879032944188 ], "data": [], "index_in_doc": 547, "label": "text", "text": "state-wide effort to educate both providers and members on prevention, intervention, treatment, and recovery methods." }, { "bbox": [ 0.5145673564836091, 0.7723866087017637, 0.9200674817453023, 0.8920707895298197 ], "data": [], "index_in_doc": 548, "label": "text", "text": "overdose drug Naloxone, supports Peer Recovery Coach academies, and has a permanent task force constantly looking for ways to reduce the incidence of substance use disorders. The Medical Management team at CeltiCare Health also works with its network of providers to review prescribing practices, including the percentage of their prescriptions that are controlled substances. Follow up with providers who are suspected of over-prescribing can be as simple as face-to-face education." }, { "bbox": [ 1.0481143527560763, 0.1285649309254656, 1.224143732606975, 0.14891846011383364 ], "data": [], "index_in_doc": 549, "label": "text", "text": "REDUCING AVOIDABLE HOSPITAL READMISSIONS" }, { "bbox": [ 1.0470522213605493, 0.1567593969479956, 1.3285864537058314, 0.4292215674814552 ], "data": [], "index_in_doc": 550, "label": "text", "text": "Preventable hospital readmissions not only cause damaging effects on patients' quality of life, but are also major sources of unnecessary healthcare costs. Seeking to address this challenge within the healthcare system, we developed a multidisciplinary and collaborative posthospitalization outreach program, including concurrent review of discharge instructions, medication adherence assessment, disease-specific education with the Teach Back method, and telephonic outreach by care management staff. Results in 2015 demonstrated that our proactive outreach to members within 10 days of discharge significantly reduced readmissions at 3 30 days while saving appropriately $5.8 million. Since its initial launch, we have improved the program with the integration of a Readmission Risk Score to further" }, { "bbox": [ 1.0478529587290646, 0.43453725179036456, 1.2812826119217218, 0.44562310883493134 ], "data": [], "index_in_doc": 551, "label": "text", "text": "improve outcomes and cost savings." }, { "bbox": [ 1.0474955240885417, 0.48943355830028806, 1.1111626718558518, 0.5085585623076467 ], "data": [], "index_in_doc": 552, "label": "text", "text": "10%" }, { "bbox": [ 1.0456682591656454, 0.5147058120881668, 1.1915491640178206, 0.5372171498308278 ], "data": [], "index_in_doc": 553, "label": "text", "text": "year-over-year decrease in hospital readmission" }, { "bbox": [ 1.0470359652650123, 0.5508213621197324, 1.1076241287530637, 0.5577759020256273 ], "data": [], "index_in_doc": 554, "label": "text", "text": "TOTALING" }, { "bbox": [ 1.0474476533777572, 0.5748900596541587, 1.21630071502885, 0.6101395578095408 ], "data": [], "index_in_doc": 555, "label": "text", "text": "$5.8M approximate savings in 2015" }, { "bbox": [ 1.3547842985664318, 0.1412923022954151, 1.464915057412939, 0.14901956885752052 ], "data": [], "index_in_doc": 556, "label": "text", "text": "TURNING POINT" }, { "bbox": [ 1.354866077697355, 0.15677211260554766, 1.6184429093903185, 0.2071003769383286 ], "data": [], "index_in_doc": 557, "label": "text", "text": "Children in the Texas foster care system are admitted into inpatient psychiatric facilities at a higher rate than children outside of foster care. These admissions" }, { "bbox": [ 1.3547842985664318, 0.2123276681611032, 1.641349742615145, 0.3459893428918087 ], "data": [], "index_in_doc": 558, "label": "text", "text": "often cause a disruption in foster home placement and result in higher readmission rates to inpatient facilities. To break this cycle, Centene's behavioral health and foster care subsidiary worked with multiple child-placing agencies and local psychiatrists in Fort Worth, Texas to launch the Turning Point program. The program offers an alternative to inpatient psychiatric admission for children in foster care." }, { "bbox": [ 1.3547842985664318, 0.3513049501361269, 1.6373791663475286, 0.4741333084877091 ], "data": [], "index_in_doc": 559, "label": "text", "text": "Patients are treated in a home setting, staffed by a team of dedicated behavioral health professionals. Program results show a 34 percent decrease in 90-day readmissions to an inpatient psychiatric facility among the members enrolled. Turning Point's success has led to a decision by Centene to expand the program to other Texas communities." }, { "bbox": [ 1.3557532815372242, 0.5142481254808831, 1.5578120611851511, 0.5221117578371607 ], "data": [], "index_in_doc": 560, "label": "text", "text": "Division Treatment - Readmission" }, { "bbox": [ 1.3555653889973958, 0.5273687189275568, 1.5063987183415033, 0.5368668141991201 ], "data": [], "index_in_doc": 561, "label": "text", "text": "(percentage of population)" }, { "bbox": [ 1.36078628839231, 0.5551266140407987, 1.3697862812117034, 0.5853993194271819 ], "data": [], "index_in_doc": 562, "label": "text", "text": "38.4%" }, { "bbox": [ 1.411114661522161, 0.5883555942111545, 1.4201146543415544, 0.616605585271662 ], "data": [], "index_in_doc": 563, "label": "text", "text": "27.5%" }, { "bbox": [ 1.462190216662837, 0.591649758695352, 1.4711902094822304, 0.6219792992177636 ], "data": [], "index_in_doc": 564, "label": "text", "text": "24.8%" }, { "bbox": [ 1.3821936713324652, 0.6865765350033538, 1.3881250518599366, 0.7043795537466955 ], "data": [], "index_in_doc": 565, "label": "text", "text": "none" }, { "bbox": [ 1.4308380924798305, 0.6705916818946299, 1.4391837525211908, 0.7043795537466955 ], "data": [], "index_in_doc": 566, "label": "text", "text": "crisis line" }, { "bbox": [ 1.482136146695006, 0.6669467964557686, 1.4905151167726205, 0.7043781280517578 ], "data": [], "index_in_doc": 567, "label": "text", "text": "admission" }, { "bbox": [ 1.353341495289522, 0.7207556830512153, 1.6241487989238663, 0.7790511352847321 ], "data": [], "index_in_doc": 568, "label": "text", "text": "We saw a difference in the readmission rates for children at each level of intervention by the Turning Point Program - crisis intervention alone, admission to crisis residential, and a combination." }, { "bbox": [ 1.5223856408611622, 0.6156988432913115, 1.5604297912198735, 0.6226533831972064 ], "data": [], "index_in_doc": 569, "label": "text", "text": "25.5%" }, { "bbox": [ 1.5223611071218852, 0.6332330029420178, 1.5905719831878065, 0.6522955075658933 ], "data": [], "index_in_doc": 570, "label": "text", "text": "combination of intervention" }, { "bbox": [ 1.665212394365298, 0.1412923022954151, 1.8612417582592933, 0.14901956885752052 ], "data": [], "index_in_doc": 571, "label": "text", "text": "MODIFIED IMPACT PROGRAM" }, { "bbox": [ 1.6641502629697713, 0.15686050569168244, 1.947253258399714, 0.3459893428918087 ], "data": [], "index_in_doc": 572, "label": "text", "text": "Illnesses like sickle cell anemia, diabetes or heart disease are often aggravated by newly diagnosed, undiagnosed or undertreated behavioral health conditions, with depression being top concern. Sunshine Health, Centene's Florida health plan, and Cenpatico, Centene's behavioral health specialty company, joined a Florida-based medical center, Family Care Partners, to introduce Modified IMPACT (Improving Mood Providing Access to Collaborative Treatment) program. Members are identified and assigned to a Cenpatico wellness coach who is located at the" }, { "bbox": [ 1.6647222182329964, 0.3512166341145833, 1.9426273520475899, 0.3737670821372909 ], "data": [], "index_in_doc": 573, "label": "text", "text": "medical center, allowing for better coordination with medical staff. The coach" }, { "bbox": [ 1.6641502629697713, 0.3789943733600655, 1.9181536506204044, 0.38765597102617977 ], "data": [], "index_in_doc": 574, "label": "text", "text": "will assess initial needs of the member" }, { "bbox": [ 1.6646405388327206, 0.39297165533508915, 1.9386716356464462, 0.40154485991506866 ], "data": [], "index_in_doc": 575, "label": "text", "text": "and coordinate behavioral healthcare and" }, { "bbox": [ 1.6641502629697713, 0.4068605827562737, 1.9496715271395015, 0.5157999751543758 ], "data": [], "index_in_doc": 576, "label": "text", "text": "community support, as well as consult with primary care providers. The results show a decrease in depression symptoms among members, as well as a finding that patients enrolled in the program were connected to behavioral health services 67 percent more often than patients outside of the enrolled group." }, { "bbox": [ 1.664251589307598, 0.5555498913081005, 1.9254132439108456, 0.6152771843804253 ], "data": [], "index_in_doc": 577, "label": "text", "text": "PATIENT OUTCOMES Sixty-seven percent were connected to behavioral health services, nearly double the rate of those identified but not engaged in the program." }, { "bbox": [ 1.6645456949869792, 0.6292771618775647, 1.9041486752578636, 0.6763794638893821 ], "data": [], "index_in_doc": 578, "label": "text", "text": "CLINICIAN OUTCOMES Nearly 1 out of 3 members achieved goals indicating a significant improvement in depression symptoms." }, { "bbox": [ 1.6645162744459763, 0.6903794413865215, 1.9095161787045547, 0.7248566945393881 ], "data": [], "index_in_doc": 579, "label": "text", "text": "COST SAVINGS Healthcare costs averaged $2,213 lower than members identified but not engaged." }, { "bbox": [ 1.678134294896344, 0.9518996200176201, 1.9463550841886235, 0.9613440638840801 ], "data": [], "index_in_doc": 580, "label": "text", "text": "Finding New Ways CENTENE CORPORATION 13" } ]
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14 CENTENE CORPORATION TO HELP MORE PEOPLE Centene's foundational belief that everyone deserves access to high-quality, affordable healthcare with dignity drives our determination to expand the range of products we offer in our markets - helping more and more individuals every day. Year End Membership, 2016 The continued diversification of our portfolio increases our ability to provide support to more individuals and address a wider range of challenges in healthcare today. HELPING BY FOCUSING ON THE INDIVIDUAL For 21 years, a Magnolia Health member in Mississippi has lived with health risks associated with sickle cell disease, as well as asthma, avascular osteonecrosis and chronic anemia. In addition to her many health risks, the young woman had not seen a sickle cell provider in over three years. She had missed scheduled visits at the University of Mississippi Medical Center Sickle Cell Clinic and was not compliant with any of the care that could help her avoid a pain crisis and regular visits to the hospital emergency department. She was enrolled in Magnolia Health's Care Management program in summer 2016. She began working with Tracy, a case manager who scheduled appointments for her, but she continued to miss them. Finally, the clinic offered one more appointment, but announced that the member would no longer be seen by any of their providers if the appointment was missed. Tracy contacted the member again, pleading with her to get the care she so desperately needed and then inquired about any obstacles that may prevent her from keeping the appointment, "Do you need a babysitter? Do you want someone to go with you?" The member admitted being afraid of going alone to the doctor. The day of the appointment the case manager made phone contact early in the morning and stayed connected with her as she left her home heading to the clinic. When the member called her case manager to report that she was lost, they remained on the phone, as Tracy navigated her through the streets and landmarks until the member finally arrived at her destination. With fear behind her and her confidence steady, the member has kept regular appointments, begun to take her medicine as prescribed and worked with her care team at Magnolia Health to improve her quality of life. Personal engagement is an important part of how Centene works to help our members live healthier lives. 2014 + 182% 2016 Increase in managed care membership We take seriously our responsibility toward every individual we serve, and every life that we impact. From December 31, 2014 to December 31, 2016, we increased our managed care membership by 7.4 million, or 182 percent. To Help More People CENTENE CORPORATION 15
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Centene's foundational belief that everyone deserves access to high-quality, our determination to expand the range of more and more individuals every day. affordable healthcare with dignity drives products we offer in our markets - helping 7% ABD & Long-Term 11% Commercial Services and Supports 4% Behavioral Health 3% Medicare & Duals 1% Correctional 49% TANF, CHIP & Foster Care Year End Membership, 2016 The continued diversification of our portfolio increases our ability to provide support to more individuals and address a wider range of challenges in healthcare today. 14 CENTENE CORPORATION HELPING BY FOCUSING ON THE INDIVIDUAL For 21 years, a Magnolia Health member in Mississippi has lived with health risks associated with sickle cell disease, as well as asthma, avascular osteonecrosis and chronic anemia. In addition to her many health risks, the young woman had not seen a sickle cell provider in over three years. She had missed scheduled visits at the University of Mississippi Medical Center Sickle Cell Clinic and was not compliant with any of the care that could help her avoid a pain crisis and regular visits to the hospital emergency department. She was enrolled in Magnolia Health's Care Management program in summer 2016. She began working with Tracy, a case manager who scheduled appointments for her, but she continued to miss them. Finally, the clinic offered one more appointment, but announced that the member would no longer be seen by any of their providers if the appointment was missed. Tracy contacted the member again, pleading with her to get the care she so desperately needed and then inquired about any obstacles that may prevent her from keeping the appointment, "Do you need a babysitter? Do you want someone to go with you?" The member admitted being afraid of going alone to the doctor. The day of the appointment the case manager made phone contact early in the morning and stayed connected with her as she left her home heading to the clinic. When the member called her case manager to report that she was lost, they remained on the phone, as Tracy navigated her through the streets and landmarks until the member finally arrived at her destination. With fear behind her and her confidence steady, the member has kept regular appointments, begun to take her medicine as prescribed and worked with her care team at Magnolia Health to improve her quality of life. Personal engagement is an important part of how Centene works to help our members live healthier lives. 2014 + 182% 2016 Increase in managed care membership We take seriously our responsibility toward every individual we serve, and every life that we impact. From December 31, 2014 to December 31, 2016, we increased our managed care membership by 7.4 million, or 182 percent. To Help More People CENTENE CORPORATION 15
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She had missed scheduled " }, { "bbox": [ 1.2001961103451797, 0.4927477210459083, 1.6154120950137867, 0.5061113762133049 ], "ocr": false, "ocr_confidence": 1, "text": "visits at the University of Mississippi Medical Center " }, { "bbox": [ 1.2005882512510213, 0.5104295749856969, 1.6429806378931782, 0.5237932301530934 ], "ocr": false, "ocr_confidence": 1, "text": "Sickle Cell Clinic and was not compliant with any of the " }, { "bbox": [ 1.2008823569304024, 0.528217431270715, 1.6380786771088645, 0.5415204366048177 ], "ocr": false, "ocr_confidence": 1, "text": "care that could help her avoid a pain crisis and regular " }, { "bbox": [ 1.2001961103451797, 0.5458992852105035, 1.5566472072227329, 0.5592022905446062 ], "ocr": false, "ocr_confidence": 1, "text": "visits to the hospital emergency department." }, { "bbox": [ 1.200490216024561, 0.5789927087648951, 1.627656924179177, 0.5901921975492227 ], "ocr": false, "ocr_confidence": 1, "text": "She was enrolled in Magnolia Health’s Care Management program " }, { "bbox": [ 1.2009641360613257, 0.5948891687874842, 1.6347875657424429, 0.605975025832051 ], "ocr": false, "ocr_confidence": 1, "text": "in summer 2016. 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" }, { "bbox": [ 1.2001633986928104, 0.8599522908528646, 1.5985392651526757, 0.8710886541039052 ], "ocr": false, "ocr_confidence": 1, "text": "With fear behind her and her confidence steady, the member " }, { "bbox": [ 1.2012255300883374, 0.8758235025887537, 1.6057795106975081, 0.8869093596333205 ], "ocr": false, "ocr_confidence": 1, "text": "has kept regular appointments, begun to take her medicine as " }, { "bbox": [ 1.2012255300883374, 0.891606330871582, 1.604470645680147, 0.9026921879161488 ], "ocr": false, "ocr_confidence": 1, "text": "prescribed and worked with her care team at Magnolia Health " }, { "bbox": [ 1.2001633986928104, 0.9073007757013495, 1.3862254822176265, 0.9184371389523901 ], "ocr": false, "ocr_confidence": 1, "text": "to improve her quality of life." }, { "bbox": [ 0.6466503267973857, 0.7808740211255623, 0.7530617807425705, 0.7897410344595861 ], "ocr": false, "ocr_confidence": 1, "text": "49% TANF, CHIP & " }, { "bbox": [ 0.6797235526290595, 0.7942524148960306, 0.7434882369695925, 0.8012069548019255 ], "ocr": false, "ocr_confidence": 1, "text": "Foster Care" }, { "bbox": [ 0.6465686473971098, 0.6647848264135495, 0.7659081353081597, 0.6746080957277857 ], "ocr": false, "ocr_confidence": 1, "text": "7% ABD & Long-Term " }, { "bbox": [ 0.6688493217518127, 0.677233069834083, 0.7955257440704147, 0.6871421505706479 ], "ocr": false, "ocr_confidence": 1, "text": "Services and Supports " }, { "bbox": [ 0.6466503267973857, 0.6993579479178997, 0.7708493401022518, 0.7070965815072108 ], "ocr": false, "ocr_confidence": 1, "text": "4% Behavioral Health" }, { "bbox": [ 0.6465849533579708, 0.6127536658084753, 0.7414426117940666, 0.6204922993977865 ], "ocr": false, "ocr_confidence": 1, "text": "11% Commercial" }, { "bbox": [ 0.6465522915709252, 0.7165484958224826, 0.7674245398029004, 0.7243010203043619 ], "ocr": false, "ocr_confidence": 1, "text": "3% Medicare & Duals" }, { "bbox": [ 0.6465849533579708, 0.7426847207425821, 0.7376664604236877, 0.7504233543318931 ], "ocr": false, "ocr_confidence": 1, "text": "1% Correctional" }, { "bbox": [ 0.6469117706897212, 0.5752670981667258, 0.7789506600573172, 0.5852671151209359 ], "ocr": false, "ocr_confidence": 1, "text": "25% T TRICARE Eligibles" }, { "bbox": [ 0.3609967200584661, 0.831685114388514, 0.7911070780037275, 0.8417438256620157 ], "ocr": false, "ocr_confidence": 1, "text": "Year End Membership, 2016 The continued diversification of our portfolio " }, { "bbox": [ 0.3613991082883349, 0.8446494401103318, 0.7833118812710631, 0.8543716681123984 ], "ocr": false, "ocr_confidence": 1, "text": "increases our ability to provide support to more individuals and address " }, { "bbox": [ 0.3613991082883349, 0.8572220465149543, 0.6433292463714001, 0.8669995105627811 ], "ocr": false, "ocr_confidence": 1, "text": "a wider range of challenges in healthcare today." }, { "bbox": [ 1.6682797101588032, 0.9515675486940326, 1.9458490508833741, 0.9609046704841383 ], "ocr": false, "ocr_confidence": 1, "text": "To Help More People CENTENE CORPORATION 15" }, { "bbox": [ 1.6620669894748263, 0.2663699063387784, 1.934316996655433, 0.2758894640989978 ], "ocr": false, "ocr_confidence": 1, "text": "Personal engagement is an important part of " }, { "bbox": [ 1.6620669894748263, 0.2789910827020202, 1.9290254879621118, 0.2884247905076152 ], "ocr": false, "ocr_confidence": 1, "text": "how Centene works to help our members live " }, { "bbox": [ 1.6620669894748263, 0.2916123361298532, 1.749941956763174, 0.2989962028734612 ], "ocr": false, "ocr_confidence": 1, "text": "healthier lives." }, { "bbox": [ 1.861523597069036, 0.41466691758897567, 1.8927001953125, 0.4223941841510811 ], "ocr": false, "ocr_confidence": 1, "text": "2014" }, { "bbox": [ 1.747177223754085, 0.5069270278468276, 1.7776347640293095, 0.5146542944089331 ], "ocr": false, "ocr_confidence": 1, "text": "2016" }, { "bbox": [ 1.7151596966911764, 0.4800542580960977, 1.7289097605187909, 0.49067923035284483 ], "ocr": false, "ocr_confidence": 1, "text": "+" }, { "bbox": [ 1.7306953380310457, 0.47424173836756234, 1.8101341895807803, 0.49336674237492106 ], "ocr": false, "ocr_confidence": 1, "text": "182%" }, { "bbox": [ 1.6627271066304126, 0.5965587346240727, 1.8930506488077001, 0.6066837503452494 ], "ocr": false, "ocr_confidence": 1, "text": "Increase in managed care membership" }, { "bbox": [ 1.6629280638850592, 0.6154147832080571, 1.9443199805964053, 0.624859241524128 ], "ocr": false, "ocr_confidence": 1, "text": "We take seriously our responsibility toward every " }, { "bbox": [ 1.6621225394454657, 0.6279823611481021, 1.9295099794475081, 0.6374804564196654 ], "ocr": false, "ocr_confidence": 1, "text": "individual we serve, and every life that we impact. " }, { "bbox": [ 1.6621225394454657, 0.640678675487788, 1.9279837016186683, 0.6490606442846433 ], "ocr": false, "ocr_confidence": 1, "text": "From December 31, 2014 to December 31, 2016, we " }, { "bbox": [ 1.6621225394454657, 0.6532784278946694, 1.9031641343060661, 0.6627228862107403 ], "ocr": false, "ocr_confidence": 1, "text": "increased our managed care membership by " }, { "bbox": [ 1.662150364296109, 0.6658996427902067, 1.8009142906837214, 0.6752582511516533 ], "ocr": false, "ocr_confidence": 1, "text": "7.4 million, or 182 percent. " } ]
[ { "bbox": [ 0.00016358494758605957, 0, 0.999966490502451, 0.3349287245008681 ], "data": [], "index_in_doc": 599, "label": "picture", "text": "" }, { "bbox": [ 0.362050997665505, 0.34942141446200287, 0.8165937436172386, 0.3667951641660748 ], "data": [], "index_in_doc": 600, "label": "text", "text": "Centene's foundational belief that" }, { "bbox": [ 0.36237779006459353, 0.3774264557193024, 0.9217245064529718, 0.3995982083407315 ], "data": [], "index_in_doc": 601, "label": "text", "text": "everyone deserves access to high-quality," }, { "bbox": [ 0.36237779006459353, 0.432805263634884, 0.9151231354358149, 0.4551537638962871 ], "data": [], "index_in_doc": 602, "label": "text", "text": "our determination to expand the range of" }, { "bbox": [ 0.36299871307572507, 0.4885375668304135, 0.8533551583882251, 0.5106335649586687 ], "data": [], "index_in_doc": 603, "label": "text", "text": "more and more individuals every day." }, { "bbox": [ 0.1984506245532067, 0.3854809385357481, 0.9390742482702716, 0.5605306143712516 ], "data": [], "index_in_doc": 604, "label": "text", "text": "affordable healthcare with dignity drives products we offer in our markets - helping" }, { "bbox": [ 0.36205102259816685, 0.38350450149690263, 0.9477567984387766, 0.5852671151209359 ], "data": [], "index_in_doc": 605, "label": "picture", "text": "" }, { "bbox": [ 0.6465686473971098, 0.6127536658084753, 0.9444238999310661, 0.676510589291351 ], "data": [], "index_in_doc": 606, "label": "text", "text": "7% ABD & Long-Term 11% Commercial" }, { "bbox": [ 0.6688493217518127, 0.677233069834083, 0.7955257440704147, 0.6871421505706479 ], "data": [], "index_in_doc": 607, "label": "text", "text": "Services and Supports" }, { "bbox": [ 0.6466503267973857, 0.6993579479178997, 0.7708493401022518, 0.7070965815072108 ], "data": [], "index_in_doc": 608, "label": "text", "text": "4% Behavioral Health" }, { "bbox": [ 0.6465522915709252, 0.7165484958224826, 0.7674245398029004, 0.7243010203043619 ], "data": [], "index_in_doc": 609, "label": "text", "text": "3% Medicare & Duals" }, { "bbox": [ 0.6465849533579708, 0.7426847207425821, 0.7376664604236877, 0.7504233543318931 ], "data": [], "index_in_doc": 610, "label": "text", "text": "1% Correctional" }, { "bbox": [ 0.6466503267973857, 0.7808740211255623, 0.7530617807425705, 0.8012069548019255 ], "data": [], "index_in_doc": 611, "label": "text", "text": "49% TANF, CHIP & Foster Care" }, { "bbox": [ 0.1983390758240145, 0.6746080957277857, 0.7911070780037275, 0.8417438256620157 ], "data": [], "index_in_doc": 612, "label": "text", "text": "Year End Membership, 2016 The continued diversification of our portfolio" }, { "bbox": [ 0.3613991082883349, 0.8446494401103318, 0.7833118812710631, 0.8543716681123984 ], "data": [], "index_in_doc": 613, "label": "text", "text": "increases our ability to provide support to more individuals and address" }, { "bbox": [ 0.19857296912498723, 0.8572220465149543, 0.6433292463714001, 0.9183104543974905 ], "data": [], "index_in_doc": 614, "label": "text", "text": "a wider range of challenges in healthcare today." }, { "bbox": [ 0.05314951005324819, 0.9526401481243095, 0.21512169931449143, 0.9592083295186361 ], "data": [], "index_in_doc": 615, "label": "text", "text": "14 CENTENE CORPORATION" }, { "bbox": [ 1.2012255300883374, 0.3578049630829782, 1.4991502948835784, 0.3655448297057489 ], "data": [], "index_in_doc": 616, "label": "text", "text": "HELPING BY FOCUSING ON THE INDIVIDUAL" }, { "bbox": [ 1.2014706680198122, 0.3867629080107718, 1.6327059876685048, 0.4147325766206992 ], "data": [], "index_in_doc": 617, "label": "text", "text": "For 21 years, a Magnolia Health member in Mississippi has lived with health risks associated with sickle cell" }, { "bbox": [ 1.2008823569304024, 0.42212653882575757, 1.6168434292662377, 0.4339144157640862 ], "data": [], "index_in_doc": 618, "label": "text", "text": "disease, as well as asthma, avascular osteonecrosis" }, { "bbox": [ 1.2001961103451797, 0.4398083542332505, 1.6429806378931782, 0.5592022905446062 ], "data": [], "index_in_doc": 619, "label": "text", "text": "and chronic anemia. In addition to her many health risks, the young woman had not seen a sickle cell provider in over three years. She had missed scheduled visits at the University of Mississippi Medical Center Sickle Cell Clinic and was not compliant with any of the care that could help her avoid a pain crisis and regular visits to the hospital emergency department." }, { "bbox": [ 1.2001633986928104, 0.5789927087648951, 1.6347875657424429, 0.8402048168760358 ], "data": [], "index_in_doc": 620, "label": "text", "text": "She was enrolled in Magnolia Health's Care Management program in summer 2016. She began working with Tracy, a case manager who scheduled appointments for her, but she continued to miss them. Finally, the clinic offered one more appointment, but announced that the member would no longer be seen by any of their providers if the appointment was missed. Tracy contacted the member again, pleading with her to get the care she so desperately needed and then inquired about any obstacles that may prevent her from keeping the appointment, \"Do you need a babysitter? Do you want someone to go with you?\" The member admitted being afraid of going alone to the doctor. The day of the appointment the case manager made phone contact early in the morning and stayed connected with her as she left her home heading to the clinic. When the member called her case manager to report that she was lost, they remained on the phone, as Tracy navigated her through the streets and landmarks until the member finally arrived at her destination." }, { "bbox": [ 1.2001633986928104, 0.8599522908528646, 1.6057795106975081, 0.9184371389523901 ], "data": [], "index_in_doc": 621, "label": "text", "text": "With fear behind her and her confidence steady, the member has kept regular appointments, begun to take her medicine as prescribed and worked with her care team at Magnolia Health to improve her quality of life." }, { "bbox": [ 1.6620669894748263, 0.2663699063387784, 1.934316996655433, 0.2989962028734612 ], "data": [], "index_in_doc": 622, "label": "text", "text": "Personal engagement is an important part of how Centene works to help our members live healthier lives." }, { "bbox": [ 1.861523597069036, 0.41466691758897567, 1.8927001953125, 0.4223941841510811 ], "data": [], "index_in_doc": 623, "label": "text", "text": "2014" }, { "bbox": [ 1.7151596966911764, 0.47424173836756234, 1.8101341895807803, 0.49336674237492106 ], "data": [], "index_in_doc": 624, "label": "text", "text": "+ 182%" }, { "bbox": [ 1.747177223754085, 0.5069270278468276, 1.7776347640293095, 0.5146542944089331 ], "data": [], "index_in_doc": 625, "label": "text", "text": "2016" }, { "bbox": [ 1.6627271066304126, 0.5965587346240727, 1.8930506488077001, 0.6066837503452494 ], "data": [], "index_in_doc": 626, "label": "text", "text": "Increase in managed care membership" }, { "bbox": [ 1.6621225394454657, 0.6154147832080571, 1.9443199805964053, 0.6752582511516533 ], "data": [], "index_in_doc": 627, "label": "text", "text": "We take seriously our responsibility toward every individual we serve, and every life that we impact. From December 31, 2014 to December 31, 2016, we increased our managed care membership by 7.4 million, or 182 percent." }, { "bbox": [ 1.6682797101588032, 0.9515675486940326, 1.9458490508833741, 0.9609046704841383 ], "data": [], "index_in_doc": 628, "label": "text", "text": "To Help More People CENTENE CORPORATION 15" } ]
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TO HELP MORE PEOPLE Centene serves more than 11 million managed care members through our portfolio of high-quality commercial and government sponsored healthcare programs. The broad offering of programs that we provide has helped us build both capacity and capability to successfully navigate a changing healthcare environment, while continuing to offer better health outcomes at lower costs. MEDICAID Includes TANF, CHIP, Foster Care, ABD and Long Term Services and Supports 6 RFP wins in 2016 MEDICARE Includes Medicare Advantage, Medicare Supplement, Special Needs Plans and Medicare-Medicare Plans 4-Star parent organization rating 334,300year-end membership (2016) COMMERCIAL 1.2 million year-end membership 4 states with small and large group commercial 13 states with Marketplace contracts * includes implementations expected to commence in 2017 CORRECTIONAL 2 new contracts in Florida and New Mexico 8state-wide correctional care contracts FEDERAL SERVICES Includes TRICARE, Veterans Choice and Military & Family Life Counseling (MFLC) Awarded TRICARE West Region 3,200employees 2.8 million TRICARE Eligibles 28years serving military families ENVOLVE Includes a comprehensive portfolio of specialty healthcare solutions 4,300employees 13 Quality Recognition & Innovation Awards in 2016 MEDICAID The Centene story began over 30 years ago as a single nonprofit Medicaid health plan operating in the basement of a Milwaukee, Wisconsin hospital. Today, Centene is the nation's largest Medicaid Managed Care Organization serving more than 6.9 million Medicaid members, including behvioral health. Centene is also a leader in three of the largest Medicaid states: California, Florida and Texas. In 2016, Centene was awarded contracts to continue providing managed care services in three of our existing states, while picking up new contracts in Nebraska, Pennsylvania and Nevada. The success of Centene's Medicaid programs supports our multi-line portfolio approach, allowing us to leverage existing Medicaid infrastructure to support expansion of other business lines such as Medicare Advantage and our Ambetter Marketplace product. MEDICARE Centene served more than 334,000 Medicare beneficiaries in 2016. Our acquisition of Heath Net paved the way for us to offer consumers a 4 Star Medicare Advantage product. More than 10,000 people a day become Medicare eligible, and 65 percent of the more than $700 billion annual medical spend on Medicare is at or below 400 percent of the Federal Poverty Level. Our focus remains on service to low-income elderly populations, allowing us to leverage existing networks and geographic footprint. In 2017, Centene will begin providing Medicare Advantage plans in four of our existing states-Florida, Georgia, Mississippi, and Texas. COMMERCIAL In addition to offering large group and small group commercial coverage in Arizona, California, Oregon and Washington, Centene also offers health insurance plans on state and federal exchanges. While other companies have struggled to succeed in the Health Insurance Marketplace, Centene is one of the few managed care organizations that has been effective in navigating the Affordable Care Act (ACA), with excellent results. Many of our exchange members were previously Medicaid members, and they are subsidy-eligible under the ACA. Centene's Ambetter product is strategically priced and designed to serve low-income individuals. We have relied on a very deliberate and methodical approach to how we design and price the plans, and build networks. CORRECTIONAL Since receiving its first state contract in 2015, Centurion (our joint venture correctional healthcare services subsidiary with MHM Services Inc.) has maintained a solid growth position in the development pipeline of our core businesses platform. By combining sound financial discipline with the delivery of appropriate care, Centurion is gaining recognition among states as a top correctional healthcare provider. In 2016 , Florida and New Mexico marked Centurion's sixth and seventh state-wide correctional healthcare contract, respectively, joining Massachusetts, Minnesota, Mississippi, Tennessee and Vermont. Additionally, Health Net Federal Services holds a correctional contract with the California Department of Corrections and Rehabilitation. FEDERAL SERVICES Centene has a long history of supporting our nation's service men and women, and now our network of over 470,000 providers across 3 39 states serves close to 3 3 million military families and veterans across multiple contracts. Federal Services programs are an important addition to the Centene government healthcare portfolio, and they represent significant growth opportunities ahead, especially with our ability to deploy our specialty solutions through Envolve. We are honored to have received an award for the 2017 TRICARE contract in the Western region, representing a return to the original Health Net region at the launch of the TRICARE program in 1988 . Additionally, Centene has been able to address concerns around access to care by coordinating over 1 million appointments for more than 700,000 veterans across our Veterans Choice service area. ENVOLVE Centene has a longstanding commitment to serving the whole person, and over the last dozen years we have built a continuum of integrated capabilities to support our internal health plans, and a wide range of external customers. The Envolve family of health solutions works together to make healthcare simpler, more effective and more accessible for healthcare consumers. Specialty services deployed through Envolve realized increasing success in 2016. Through the delivery of innovative and high-quality programs, including a management service agreements in Maryland and the successful award of 13 fee-based contracts with third-party customers, Envolve has emerged as a key part of Centene's growth strategy. To Help More People CENTENE CORPORATION 17
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" }, { "bbox": [ 1.3543301251978657, 0.5450295727662365, 1.6364051968443627, 0.5562038228969381 ], "ocr": false, "ocr_confidence": 1, "text": "By combining sound financial discipline with " }, { "bbox": [ 1.3531046350017872, 0.5589184616551255, 1.626614439721201, 0.5700548345392401 ], "ocr": false, "ocr_confidence": 1, "text": "the delivery of appropriate care, Centurion " }, { "bbox": [ 1.3539053723703023, 0.5729083051585188, 1.6337091782513786, 0.5839815621424203 ], "ocr": false, "ocr_confidence": 1, "text": "is gaining recognition among states as a top " }, { "bbox": [ 1.3536765902650123, 0.5867845939867424, 1.6085442437065973, 0.5977694193522135 ], "ocr": false, "ocr_confidence": 1, "text": "correctional healthcare provider. In 2016" }, { "bbox": [ 1.6097713295930351, 0.5938553087639086, 1.6169936236213236, 0.5966078247686829 ], "ocr": false, "ocr_confidence": 1, "text": ", " }, { "bbox": [ 1.3543300254672181, 0.6005598126035748, 1.6342972898794934, 0.6092466489233151 ], "ocr": false, "ocr_confidence": 1, "text": "Florida and New Mexico marked Centurion’s " }, { "bbox": [ 1.35343135260289, 0.6145623332322246, 1.6180031969656352, 0.6231355378122041 ], "ocr": false, "ocr_confidence": 1, "text": "sixth and seventh state-wide correctional " }, { "bbox": [ 1.3541666666666667, 0.6284511835888179, 1.614720462973601, 0.6395370406333847 ], "ocr": false, "ocr_confidence": 1, "text": "healthcare contract, respectively, joining " }, { "bbox": [ 1.3543300254672181, 0.6423400724777067, 1.6055881275850183, 0.6533248978431778 ], "ocr": false, "ocr_confidence": 1, "text": "Massachusetts, Minnesota, Mississippi, " }, { "bbox": [ 1.3531045352711397, 0.6562289228343, 1.5956012002782884, 0.6672769026322798 ], "ocr": false, "ocr_confidence": 1, "text": "Tennessee and Vermont. Additionally, " }, { "bbox": [ 1.3543300254672181, 0.670117811723189, 1.5771061517054739, 0.6786910355693162 ], "ocr": false, "ocr_confidence": 1, "text": "Health Net Federal Services holds a " }, { "bbox": [ 1.3536764905343648, 0.6839182689936474, 1.6054557850158293, 0.6925798859259095 ], "ocr": false, "ocr_confidence": 1, "text": "correctional contract with the California " }, { "bbox": [ 1.3543300254672181, 0.6978071578825363, 1.548758114085478, 0.70888039560029 ], "ocr": false, "ocr_confidence": 1, "text": "Department of Corrections and " }, { "bbox": [ 1.3543300254672181, 0.712415752988873, 1.4447549059500102, 0.7209889768350004 ], "ocr": false, "ocr_confidence": 1, "text": "Rehabilitation." }, { "bbox": [ 1.6624019847196692, 0.14127935544408934, 1.7936273711958741, 0.14901926059915563 ], "ocr": false, "ocr_confidence": 1, "text": "FEDERAL SERVICES" }, { "bbox": [ 1.6619118085873672, 0.15677180434718277, 1.9454557132097632, 0.1679460159455887 ], "ocr": false, "ocr_confidence": 1, "text": "Centene has a long history of supporting our " }, { "bbox": [ 1.6624019847196692, 0.17063541605014992, 1.9328756893382353, 0.18057227857185132 ], "ocr": false, "ocr_confidence": 1, "text": "nation’s service men and women, and now " }, { "bbox": [ 1.6619118085873672, 0.18454958212496053, 1.9099346485013275, 0.19562283910886205 ], "ocr": false, "ocr_confidence": 1, "text": "our network of over 470,000 providers " }, { "bbox": [ 1.6618301291870916, 0.1985268640999842, 1.9210619957618464, 0.2071000686799637 ], "ocr": false, "ocr_confidence": 1, "text": "across 3 39 states serves close to 3 3 million " }, { "bbox": [ 1.6624019847196692, 0.21232735990273832, 1.8955064162709354, 0.22346373278685291 ], "ocr": false, "ocr_confidence": 1, "text": "military families and veterans across " }, { "bbox": [ 1.6624019847196692, 0.226304641877762, 1.892009859770731, 0.23728950577552874 ], "ocr": false, "ocr_confidence": 1, "text": "multiple contracts. Federal Services " }, { "bbox": [ 1.6624019847196692, 0.24019353076665087, 1.9320571001838236, 0.25127934927892204 ], "ocr": false, "ocr_confidence": 1, "text": "programs are an important addition to the " }, { "bbox": [ 1.6619118085873672, 0.253994026569405, 1.930602827882455, 0.26516823816781093 ], "ocr": false, "ocr_confidence": 1, "text": "Centene government healthcare portfolio, " }, { "bbox": [ 1.6618301291870916, 0.2678829154582939, 1.9003431532118056, 0.2790571270566998 ], "ocr": false, "ocr_confidence": 1, "text": "and they represent significant growth " }, { "bbox": [ 1.6619118085873672, 0.2818601974333175, 1.9198528613919525, 0.29290817723129736 ], "ocr": false, "ocr_confidence": 1, "text": "opportunities ahead, especially with our " }, { "bbox": [ 1.6618301291870916, 0.2957491633867977, 1.9130717757480595, 0.30679714318477747 ], "ocr": false, "ocr_confidence": 1, "text": "ability to deploy our specialty solutions " }, { "bbox": [ 1.6613398533241421, 0.3096380522756865, 1.9247352749693627, 0.3207238707879577 ], "ocr": false, "ocr_confidence": 1, "text": "through Envolve. We are honored to have " }, { "bbox": [ 1.6624019847196692, 0.32343854807844064, 1.9148838816125409, 0.33210014574455493 ], "ocr": false, "ocr_confidence": 1, "text": "received an award for the 2017 TRICARE " }, { "bbox": [ 1.6619118085873672, 0.3374158300534643, 1.9453577777139501, 0.34850164856573546 ], "ocr": false, "ocr_confidence": 1, "text": "contract in the Western region, representing " }, { "bbox": [ 1.6618301291870916, 0.3513047189423532, 1.9385112687653185, 0.36239057598692 ], "ocr": false, "ocr_confidence": 1, "text": "a return to the original Health Net region at " }, { "bbox": [ 1.6613398533241421, 0.3651052147451073, 1.930212282666973, 0.3762794648758089 ], "ocr": false, "ocr_confidence": 1, "text": "the launch of the TRICARE program in 1988" }, { "bbox": [ 1.9321733861187704, 0.3721380522756865, 1.9391178305632149, 0.3736910579180477 ], "ocr": false, "ocr_confidence": 1, "text": ". " }, { "bbox": [ 1.6613399530547897, 0.379082496720131, 1.9085457995046977, 0.3901304765181108 ], "ocr": false, "ocr_confidence": 1, "text": "Additionally, Centene has been able to " }, { "bbox": [ 1.661830228917739, 0.3929713856090199, 1.9188563527624591, 0.40154459018899935 ], "ocr": false, "ocr_confidence": 1, "text": "address concerns around access to care " }, { "bbox": [ 1.6624020844503167, 0.4068602744979088, 1.9425473680683212, 0.41794613154247556 ], "ocr": false, "ocr_confidence": 1, "text": "by coordinating over 1 million appointments " }, { "bbox": [ 1.6614217321857128, 0.4206607703006629, 1.9124656128727533, 0.43057239416873816 ], "ocr": false, "ocr_confidence": 1, "text": "for more than 700,000 veterans across " }, { "bbox": [ 1.6619119083180147, 0.4352693654069997, 1.8713382895475899, 0.4438425699869792 ], "ocr": false, "ocr_confidence": 1, "text": "our Veterans Choice service area." }, { "bbox": [ 1.6624020844503167, 0.4739940913036616, 1.724377600975286, 0.48172135786576703 ], "ocr": false, "ocr_confidence": 1, "text": "ENVOLVE" }, { "bbox": [ 1.6619119083180147, 0.48956229469992896, 1.9414870318244486, 0.5006481517444957 ], "ocr": false, "ocr_confidence": 1, "text": "Centene has a longstanding commitment to " }, { "bbox": [ 1.66166677038654, 0.5034511835888179, 1.9372043983609069, 0.5145370406333847 ], "ocr": false, "ocr_confidence": 1, "text": "serving the whole person, and over the last " }, { "bbox": [ 1.6619119083180147, 0.517251679391572, 1.9257174223856208, 0.5283880522756865 ], "ocr": false, "ocr_confidence": 1, "text": "dozen years we have built a continuum of " }, { "bbox": [ 1.6621406904233047, 0.5312289613665957, 1.9017778783062704, 0.5423148184111624 ], "ocr": false, "ocr_confidence": 1, "text": "integrated capabilities to support our " }, { "bbox": [ 1.6621406904233047, 0.5450294571693497, 1.927124222898795, 0.5562037073000513 ], "ocr": false, "ocr_confidence": 1, "text": "internal health plans, and a wide range of " }, { "bbox": [ 1.6619119083180147, 0.5589183075259431, 1.9264705882352942, 0.5700546804100576 ], "ocr": false, "ocr_confidence": 1, "text": "external customers. The Envolve family of " }, { "bbox": [ 1.6624020844503167, 0.5728955509686711, 1.9194282082950367, 0.5839814080132378 ], "ocr": false, "ocr_confidence": 1, "text": "health solutions works together to make " }, { "bbox": [ 1.6624020844503167, 0.5866960467714252, 1.9443301531224468, 0.5977692652230311 ], "ocr": false, "ocr_confidence": 1, "text": "healthcare simpler, more effective and more " }, { "bbox": [ 1.661830228917739, 0.6005849356603141, 1.9009640762229372, 0.6092465333264283 ], "ocr": false, "ocr_confidence": 1, "text": "accessible for healthcare consumers. " }, { "bbox": [ 1.66166677038654, 0.6145621791030421, 1.9447191026475694, 0.6256480361476089 ], "ocr": false, "ocr_confidence": 1, "text": "Specialty services deployed through Envolve " }, { "bbox": [ 1.6624020844503167, 0.6284510294596354, 1.9436603620940565, 0.6395368865042022 ], "ocr": false, "ocr_confidence": 1, "text": "realized increasing success in 2016. Through " }, { "bbox": [ 1.6613399530547897, 0.6422515252623895, 1.9304739758859273, 0.6534257753930911 ], "ocr": false, "ocr_confidence": 1, "text": "the delivery of innovative and high-quality " }, { "bbox": [ 1.6624020844503167, 0.6562288072374132, 1.9380720549938726, 0.6673146642819799 ], "ocr": false, "ocr_confidence": 1, "text": "programs, including a management service " }, { "bbox": [ 1.661830228917739, 0.6700292645078717, 1.9345571480545343, 0.6812035146385732 ], "ocr": false, "ocr_confidence": 1, "text": "agreements in Maryland and the successful " }, { "bbox": [ 1.661830228917739, 0.683918114864465, 1.8922206903594772, 0.692579731796727 ], "ocr": false, "ocr_confidence": 1, "text": "award of 13 fee-based contracts with " }, { "bbox": [ 1.6613399530547897, 0.6978953968394886, 1.940637326708027, 0.7089812538840554 ], "ocr": false, "ocr_confidence": 1, "text": "third-party customers, Envolve has emerged " }, { "bbox": [ 1.661830228917739, 0.7116706347224688, 1.926519655713848, 0.7228701427729443 ], "ocr": false, "ocr_confidence": 1, "text": "as a key part of Centene’s growth strategy." }, { "bbox": [ 0.10468218684975618, 0.9120012630115856, 0.2571960648680045, 0.9213598472903474 ], "ocr": false, "ocr_confidence": 1, "text": "* includes implementations" }, { "bbox": [ 0.11027940737655739, 0.924622477907123, 0.2818627450980392, 0.9339810621858847 ], "ocr": false, "ocr_confidence": 1, "text": "expected to commence in 2017" }, { "bbox": [ 0.10623348460477941, 0.3543074636748343, 0.1745014564663756, 0.3620347302369397 ], "ocr": false, "ocr_confidence": 1, "text": "MEDICAID" }, { "bbox": [ 0.10553740208445031, 0.3694564742271346, 0.3558872447294347, 0.3783541978007615 ], "ocr": false, "ocr_confidence": 1, "text": "Includes TANF, CHIP, Foster Care, ABD and " }, { "bbox": [ 0.10553740208445031, 0.3845360110504459, 0.30159614912045546, 0.39458149611347854 ], "ocr": false, "ocr_confidence": 1, "text": "Long Term Services and Supports" }, { "bbox": [ 0.10523021922392004, 0.41023296780056423, 0.3235645169526144, 0.425519615712792 ], "ocr": false, "ocr_confidence": 1, "text": "23 states with Medicaid programs*" }, { "bbox": [ 0.10661910561954274, 0.4317733687583846, 0.22143138312046823, 0.44490976044625946 ], "ocr": false, "ocr_confidence": 1, "text": "6 RFP wins in 2016" }, { "bbox": [ 0.10623348460477941, 0.494130683667732, 0.1774916555367264, 0.5018579502298375 ], "ocr": false, "ocr_confidence": 1, "text": "MEDICARE" }, { "bbox": [ 0.10553740208445031, 0.5092114920567985, 0.4217122894486571, 0.5192569771198311 ], "ocr": false, "ocr_confidence": 1, "text": "Includes Medicare Advantage, Medicare Supplement, " }, { "bbox": [ 0.10524328393873826, 0.5218364831173059, 0.4043607524797028, 0.5317910319626934 ], "ocr": false, "ocr_confidence": 1, "text": "Special Needs Plans and Medicare-Medicare Plans" }, { "bbox": [ 0.10523021922392004, 0.5475309352682094, 0.33704525816674324, 0.5628175831804372 ], "ocr": false, "ocr_confidence": 1, "text": "4-Star parent organization rating" }, { "bbox": [ 0.10498021942338133, 0.5690713362260298, 0.3726305494121477, 0.5843970944183041 ], "ocr": false, "ocr_confidence": 1, "text": "334,300year-end membership (2016)" }, { "bbox": [ 0.105661591673209, 0.6314286896676728, 0.195628907945421, 0.6391559562297783 ], "ocr": false, "ocr_confidence": 1, "text": "COMMERCIAL" }, { "bbox": [ 0.10609133103314568, 0.655232978589607, 0.31027406181385314, 0.6705196265018347 ], "ocr": false, "ocr_confidence": 1, "text": "1.2 million year-end membership " }, { "bbox": [ 0.10523021922392004, 0.6770309294113005, 0.3965146931168301, 0.6920599696612117 ], "ocr": false, "ocr_confidence": 1, "text": "4 states with small and large group commercial" }, { "bbox": [ 0.10609133103314568, 0.6983137805052478, 0.3318183250676573, 0.7135094729336825 ], "ocr": false, "ocr_confidence": 1, "text": "13 states with Marketplace contracts" }, { "bbox": [ 0.4565359377393536, 0.3543074636748343, 0.5642973457286561, 0.3620347302369397 ], "ocr": false, "ocr_confidence": 1, "text": "CORRECTIONAL" }, { "bbox": [ 0.45610455282373363, 0.3742481193157158, 0.7182204801272722, 0.3872733838630445 ], "ocr": false, "ocr_confidence": 1, "text": "2 new contracts in Florida and New Mexico" }, { "bbox": [ 0.4568823521433313, 0.3957885202735361, 0.7036320804770476, 0.408924911961411 ], "ocr": false, "ocr_confidence": 1, "text": "8state-wide correctional care contracts" }, { "bbox": [ 0.4571078431372549, 0.45813323512221826, 0.5883333293441074, 0.46587310174498897 ], "ocr": false, "ocr_confidence": 1, "text": "FEDERAL SERVICES" }, { "bbox": [ 0.45641177308325676, 0.4770902768530027, 0.7393072789011438, 0.48713576191603536 ], "ocr": false, "ocr_confidence": 1, "text": "Includes TRICARE, Veterans Choice and Military " }, { "bbox": [ 0.45608824686287275, 0.48970390088630444, 0.6448807560540493, 0.49976075297654277 ], "ocr": false, "ocr_confidence": 1, "text": "& Family Life Counseling (MFLC) " }, { "bbox": [ 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" }, { "bbox": [ 0.45641177308325676, 0.6689059324938842, 0.5778970157398897, 0.6766900341920178 ], "ocr": false, "ocr_confidence": 1, "text": "healthcare solutions" }, { "bbox": [ 0.45610455282373363, 0.6946016369443951, 0.5854384478400735, 0.7099273951366695 ], "ocr": false, "ocr_confidence": 1, "text": "4,300employees" }, { "bbox": [ 0.45696567709929026, 0.7161420571683633, 0.772468616759855, 0.7314286665482954 ], "ocr": false, "ocr_confidence": 1, "text": "13 Quality Recognition & Innovation Awards in 2016" }, { "bbox": [ 0.10368529176400378, 0.1131361373747238, 0.29056760999891496, 0.12240885724925031 ], "ocr": false, "ocr_confidence": 1, "text": "TO HELP MORE PEOPLE" }, { "bbox": [ 0.10459215500775505, 0.15567648531210543, 0.8175014919704862, 0.17230532867739898 ], "ocr": false, "ocr_confidence": 1, "text": "Centene serves more than 11 million managed care members through our " }, { "bbox": [ 0.10532745660520067, 0.1770022613833649, 0.8416216482523999, 0.193763655845565 ], "ocr": false, "ocr_confidence": 1, "text": "portfolio of high-quality commercial and government sponsored healthcare " }, { "bbox": [ 0.10532745660520067, 0.19846058855153093, 0.8671119041692198, 0.21522198301373105 ], "ocr": false, "ocr_confidence": 1, "text": "programs. The broad offering of programs that we provide has helped us build " }, { "bbox": [ 0.10532745660520067, 0.21991891571969696, 0.8416437884561376, 0.23668031018189709 ], "ocr": false, "ocr_confidence": 1, "text": "both capacity and capability to successfully navigate a changing healthcare " }, { "bbox": [ 0.10459215500775505, 0.241377242887863, 0.8281186172385621, 0.25813863735006315 ], "ocr": false, "ocr_confidence": 1, "text": "environment, while continuing to offer better health outcomes at lower costs." } ]
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The broad offering of programs that we provide has helped us build both capacity and capability to successfully navigate a changing healthcare environment, while continuing to offer better health outcomes at lower costs." }, { "bbox": [ 0.10448339873669195, 0.3532663210473879, 0.1747845419092116, 0.36253495649857953 ], "data": [], "index_in_doc": 631, "label": "section_header", "text": "MEDICAID" }, { "bbox": [ 0.10419681648802913, 0.3683705185398911, 0.3565741395638659, 0.3952225964478772 ], "data": [], "index_in_doc": 632, "label": "text", "text": "Includes TANF, CHIP, Foster Care, ABD and Long Term Services and Supports" }, { "bbox": [ 0.10463373022141799, 0.43116660069937657, 0.22156833823210273, 0.4460283529878867 ], "data": [], "index_in_doc": 633, "label": "text", "text": "6 RFP wins in 2016" }, { "bbox": [ 0.10402859581841363, 0.49330096774631077, 0.17853699478448606, 0.5025376599244397 ], "data": [], "index_in_doc": 634, "label": "section_header", "text": "MEDICARE" }, { 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membership" }, { "bbox": [ 0.10523021922392004, 0.6770309294113005, 0.3968260771308849, 0.6923992272579309 ], "data": [], "index_in_doc": 640, "label": "text", "text": "4 states with small and large group commercial" }, { "bbox": [ 0.10410202250761144, 0.6980295662928109, 0.33187853744606566, 0.7141043923117898 ], "data": [], "index_in_doc": 641, "label": "text", "text": "13 states with Marketplace contracts" }, { "bbox": [ 0.10352200152827244, 0.9109824594825205, 0.28335875467537275, 0.9339810621858847 ], "data": [], "index_in_doc": 642, "label": "page_footer", "text": "* includes implementations expected to commence in 2017" }, { "bbox": [ 0.4549173591962827, 0.35363854302300346, 0.5653428221060559, 0.3625312959304964 ], "data": [], "index_in_doc": 643, "label": "section_header", "text": "CORRECTIONAL" }, { "bbox": [ 0.45610455282373363, 0.3742481193157158, 0.7182204801272722, 0.3872733838630445 ], "data": [], "index_in_doc": 644, "label": "text", "text": "2 new contracts in Florida 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0.7724866680070466, 0.7316701099126026 ], "data": [], "index_in_doc": 655, "label": "text", "text": "13 Quality Recognition & Innovation Awards in 2016" }, { "bbox": [ 1.050049027586295, 0.1412923022954151, 1.1183170493132149, 0.14901956885752052 ], "data": [], "index_in_doc": 656, "label": "text", "text": "MEDICAID" }, { "bbox": [ 1.048986896190768, 0.15686050569168244, 1.3298823537390216, 0.26265593249388414 ], "data": [], "index_in_doc": 657, "label": "text", "text": "The Centene story began over 30 years ago as a single nonprofit Medicaid health plan operating in the basement of a Milwaukee, Wisconsin hospital. Today, Centene is the nation's largest Medicaid Managed Care Organization serving more than 6.9 million Medicaid members, including behvioral health. Centene is also a leader in three" }, { "bbox": [ 1.0494771720537173, 0.2678832237166588, 1.326797385620915, 0.359878193248402 ], "data": [], "index_in_doc": 658, "label": "text", "text": "of the largest Medicaid states: California, Florida and Texas. In 2016, Centene was awarded contracts to continue providing managed care services in three of our existing states, while picking up new contracts in Nebraska, Pennsylvania and Nevada. The success of Centene's Medicaid" }, { "bbox": [ 1.0494771720537173, 0.36510548447117663, 1.3215800765293095, 0.44562318589952254 ], "data": [], "index_in_doc": 659, "label": "text", "text": "programs supports our multi-line portfolio approach, allowing us to leverage existing Medicaid infrastructure to support expansion of other business lines such as Medicare Advantage and our Ambetter Marketplace product." }, { "bbox": [ 1.050049027586295, 0.4733630864307134, 1.12130717358558, 0.4810903529928188 ], "data": [], "index_in_doc": 660, "label": "text", "text": "MEDICARE" }, { "bbox": [ 1.049558851453993, 0.4889312512946851, 1.2789706560521343, 0.5113933832958492 ], "data": [], "index_in_doc": 661, "label": "text", "text": "Centene served more than 334,000 Medicare beneficiaries in 2016. Our" }, { "bbox": [ 1.0490686753216911, 0.5166206745186237, 1.3306503794551674, 0.539171161073627 ], "data": [], "index_in_doc": 662, "label": "text", "text": "acquisition of Heath Net paved the way for us to offer consumers a 4 Star Medicare" }, { "bbox": [ 1.048986896190768, 0.5444868068502406, 1.3339363048279207, 0.7083502490111072 ], "data": [], "index_in_doc": 663, "label": "text", "text": "Advantage product. More than 10,000 people a day become Medicare eligible, and 65 percent of the more than $700 billion annual medical spend on Medicare is at or below 400 percent of the Federal Poverty Level. Our focus remains on service to low-income elderly populations, allowing us to leverage existing networks and geographic footprint. In 2017, Centene will begin providing Medicare Advantage plans in four of our existing states-Florida, Georgia, Mississippi, and Texas." }, { "bbox": [ 1.353594811134089, 0.14129214816623265, 1.4465032839307599, 0.14901941472833807 ], "data": [], "index_in_doc": 664, "label": "text", "text": "COMMERCIAL" }, { "bbox": [ 1.3531045352711397, 0.15677195847636521, 1.6375178916781556, 0.4160649463383838 ], "data": [], "index_in_doc": 665, "label": "text", "text": "In addition to offering large group and small group commercial coverage in Arizona, California, Oregon and Washington, Centene also offers health insurance plans on state and federal exchanges. While other companies have struggled to succeed in the Health Insurance Marketplace, Centene is one of the few managed care organizations that has been effective in navigating the Affordable Care Act (ACA), with excellent results. Many of our exchange members were previously Medicaid members, and they are subsidy-eligible under the ACA. Centene's Ambetter product is strategically priced and designed to serve low-income individuals. We have relied on a very deliberate and methodical approach to how we design and price the plans, and build networks." }, { "bbox": [ 1.353594811134089, 0.4462164676550663, 1.4613561692580679, 0.4539437342171717 ], "data": [], "index_in_doc": 666, "label": "text", "text": "CORRECTIONAL" }, { "bbox": [ 1.3531045352711397, 0.4616962394329033, 1.6364051968443627, 0.6092466489233151 ], "data": [], "index_in_doc": 667, "label": "text", "text": "Since receiving its first state contract in 2015, Centurion (our joint venture correctional healthcare services subsidiary with MHM Services Inc.) has maintained a solid growth position in the development pipeline of our core businesses platform. By combining sound financial discipline with the delivery of appropriate care, Centurion is gaining recognition among states as a top correctional healthcare provider. In 2016 , Florida and New Mexico marked Centurion's" }, { "bbox": [ 1.35343135260289, 0.6145623332322246, 1.6180031969656352, 0.6231355378122041 ], "data": [], "index_in_doc": 668, "label": "text", "text": "sixth and seventh state-wide correctional" }, { "bbox": [ 1.3531045352711397, 0.6284511835888179, 1.614720462973601, 0.6786910355693162 ], "data": [], "index_in_doc": 669, "label": "text", "text": "healthcare contract, respectively, joining Massachusetts, Minnesota, Mississippi, Tennessee and Vermont. Additionally, Health Net Federal Services holds a" }, { "bbox": [ 1.3536764905343648, 0.6839182689936474, 1.6054557850158293, 0.6925798859259095 ], "data": [], "index_in_doc": 670, "label": "text", "text": "correctional contract with the California" }, { "bbox": [ 1.3543300254672181, 0.6978071578825363, 1.548758114085478, 0.7209889768350004 ], "data": [], "index_in_doc": 671, "label": "text", "text": "Department of Corrections and Rehabilitation." }, { "bbox": [ 1.6624019847196692, 0.14127935544408934, 1.7936273711958741, 0.14901926059915563 ], "data": [], "index_in_doc": 672, "label": "text", "text": "FEDERAL SERVICES" }, { "bbox": [ 1.6618301291870916, 0.15677180434718277, 1.9454557132097632, 0.2071000686799637 ], "data": [], "index_in_doc": 673, "label": "text", "text": "Centene has a long history of supporting our nation's service men and women, and now our network of over 470,000 providers across 3 39 states serves close to 3 3 million" }, { "bbox": [ 1.6613398533241421, 0.21232735990273832, 1.9320571001838236, 0.33210014574455493 ], "data": [], "index_in_doc": 674, "label": "text", "text": "military families and veterans across multiple contracts. Federal Services programs are an important addition to the Centene government healthcare portfolio, and they represent significant growth opportunities ahead, especially with our ability to deploy our specialty solutions through Envolve. We are honored to have received an award for the 2017 TRICARE" }, { "bbox": [ 1.6613398533241421, 0.3374158300534643, 1.9453577777139501, 0.40154459018899935 ], "data": [], "index_in_doc": 675, "label": "text", "text": "contract in the Western region, representing a return to the original Health Net region at the launch of the TRICARE program in 1988 . Additionally, Centene has been able to address concerns around access to care" }, { "bbox": [ 1.6614217321857128, 0.4068602744979088, 1.9425473680683212, 0.4438425699869792 ], "data": [], "index_in_doc": 676, "label": "text", "text": "by coordinating over 1 million appointments for more than 700,000 veterans across our Veterans Choice service area." }, { "bbox": [ 1.6624020844503167, 0.4739940913036616, 1.724377600975286, 0.48172135786576703 ], "data": [], "index_in_doc": 677, "label": "text", "text": "ENVOLVE" }, { "bbox": [ 1.66166677038654, 0.48956229469992896, 1.9443301531224468, 0.6092465333264283 ], "data": [], "index_in_doc": 678, "label": "text", "text": "Centene has a longstanding commitment to serving the whole person, and over the last dozen years we have built a continuum of integrated capabilities to support our internal health plans, and a wide range of external customers. The Envolve family of health solutions works together to make healthcare simpler, more effective and more accessible for healthcare consumers." }, { "bbox": [ 1.6613399530547897, 0.6145621791030421, 1.9447191026475694, 0.692579731796727 ], "data": [], "index_in_doc": 679, "label": "text", "text": "Specialty services deployed through Envolve realized increasing success in 2016. Through the delivery of innovative and high-quality programs, including a management service agreements in Maryland and the successful award of 13 fee-based contracts with" }, { "bbox": [ 1.6613399530547897, 0.6978953968394886, 1.940637326708027, 0.7228701427729443 ], "data": [], "index_in_doc": 680, "label": "text", "text": "third-party customers, Envolve has emerged as a key part of Centene's growth strategy." }, { "bbox": [ 1.6686545976626328, 0.9524766411444153, 1.9461253047768587, 0.961813762934521 ], "data": [], "index_in_doc": 681, "label": "text", "text": "To Help More People CENTENE CORPORATION 17" } ]
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TO HELP MORE PEOPLE portfolio of high-quality commercial and government sponsored healthcare both capacity and capability to successfully navigate a changing healthcare MEDICAID Includes TANF, CHIP, Foster Care, ABD and Long Term Services and Supports 23 states with Medicaid programs* 6 RFP wins in 2016 Centene serves more than 11 million managed care members through our programs. The broad offering of programs that we provide has helped us build environment, while continuing to offer better health outcomes at lower costs. CORRECTIONAL 2 new contracts in Florida and New Mexico 8state-wide correctional care contracts Centene serves more than 11 million managed care members through our programs. The broad offering of programs that we provide has helped us build environment, while continuing to offer better health outcomes at lower costs. 2 new contracts in Florida and New Mexico Centene serves more than 11 million managed care members through our programs. The broad offering of programs that we provide has helped us build environment, while continuing to offer better health outcomes at lower costs. Includes Medicare Advantage, Medicare Supplement, MEDICARE Special Needs Plans and Medicare-Medicare Plans 4-Star parent organization rating 334,300year-end membership (2016) COMMERCIAL 1.2 million year-end membership 4 states with small and large group commercial 13 states with Marketplace contracts * includes implementations expected to commence in 2017 FEDERAL SERVICES Includes TRICARE, Veterans Choice and Military & Family Life Counseling (MFLC) Awarded TRICARE West Region 3,200employees 2.8 million TRICARE Eligibles 28years serving military families ENVOLVE healthcare solutions 4,300employees Includes a comprehensive portfolio of specialty 13 Quality Recognition & Innovation Awards in 2016 MEDICAID The Centene story began over 30 years ago as a single nonprofit Medicaid health plan operating in the basement of a Milwaukee, Wisconsin hospital. Today, Centene is the nation's largest Medicaid Managed Care Organization serving more than 6.9 million Medicaid members, including behvioral health. Centene is also a leader in three of the largest Medicaid states: California, Florida and Texas. In 2016, Centene was awarded contracts to continue providing managed care services in three of our existing states, while picking up new contracts in Nebraska, Pennsylvania and Nevada. The success of Centene's Medicaid programs supports our multi-line portfolio approach, allowing us to leverage existing Medicaid infrastructure to support expansion of other business lines such as Medicare Advantage and our Ambetter Marketplace product. MEDICARE Centene served more than 334,000 Medicare beneficiaries in 2016. Our acquisition of Heath Net paved the way for us to offer consumers a 4 Star Medicare Advantage product. More than 10,000 people a day become Medicare eligible, and 65 percent of the more than $700 billion annual medical spend on Medicare is at or below 400 percent of the Federal Poverty Level. Our focus remains on service to low-income elderly populations, allowing us to leverage existing networks and geographic footprint. In 2017, Centene will begin providing Medicare Advantage plans in four of our existing states-Florida, Georgia, Mississippi, and Texas. COMMERCIAL In addition to offering large group and small group commercial coverage in Arizona, California, Oregon and Washington, Centene also offers health insurance plans on state and federal exchanges. While other companies have struggled to succeed in the Health Insurance Marketplace, Centene is one of the few managed care organizations that has been effective in navigating the Affordable Care Act (ACA), with excellent results. Many of our exchange members were previously Medicaid members, and they are subsidy-eligible under the ACA. Centene's Ambetter product is strategically priced and designed to serve low-income individuals. We have relied on a very deliberate and methodical approach to how we design and price the plans, and build networks. CORRECTIONAL Since receiving its first state contract in 2015, Centurion (our joint venture correctional healthcare services subsidiary with MHM Services Inc.) has maintained a solid growth position in the development pipeline of our core businesses platform. By combining sound financial discipline with the delivery of appropriate care, Centurion is gaining recognition among states as a top correctional healthcare provider. In 2016 , Florida and New Mexico marked Centurion's sixth and seventh state-wide correctional healthcare contract, respectively, joining Massachusetts, Minnesota, Mississippi, Tennessee and Vermont. Additionally, Health Net Federal Services holds a correctional contract with the California Department of Corrections and Rehabilitation. FEDERAL SERVICES Centene has a long history of supporting our nation's service men and women, and now our network of over 470,000 providers across 3 39 states serves close to 3 3 million military families and veterans across multiple contracts. Federal Services programs are an important addition to the Centene government healthcare portfolio, and they represent significant growth opportunities ahead, especially with our ability to deploy our specialty solutions through Envolve. We are honored to have received an award for the 2017 TRICARE contract in the Western region, representing a return to the original Health Net region at the launch of the TRICARE program in 1988 . Additionally, Centene has been able to address concerns around access to care by coordinating over 1 million appointments for more than 700,000 veterans across our Veterans Choice service area. ENVOLVE Centene has a longstanding commitment to serving the whole person, and over the last dozen years we have built a continuum of integrated capabilities to support our internal health plans, and a wide range of external customers. The Envolve family of health solutions works together to make healthcare simpler, more effective and more accessible for healthcare consumers. Specialty services deployed through Envolve realized increasing success in 2016. Through the delivery of innovative and high-quality programs, including a management service agreements in Maryland and the successful award of 13 fee-based contracts with third-party customers, Envolve has emerged as a key part of Centene's growth strategy. To Help More People CENTENE CORPORATION 17
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Our focus remains on service " }, { "bbox": [ 1.048986896190768, 0.6278200245866872, 1.330651775684232, 0.638905881631254 ], "ocr": false, "ocr_confidence": 1, "text": "to low-income elderly populations, allowing " }, { "bbox": [ 1.0499673481860192, 0.6417089134755761, 1.28726964215048, 0.6527947705201428 ], "ocr": false, "ocr_confidence": 1, "text": "us to leverage existing networks and " }, { "bbox": [ 1.048986896190768, 0.6555093707460345, 1.2993463254442401, 0.6666836208767362 ], "ocr": false, "ocr_confidence": 1, "text": "geographic footprint. In 2017, Centene " }, { "bbox": [ 1.048986896190768, 0.6694866527210582, 1.3105015972860499, 0.680572509765625 ], "ocr": false, "ocr_confidence": 1, "text": "will begin providing Medicare Advantage " }, { "bbox": [ 1.050049027586295, 0.6832871099915168, 1.3250816195618873, 0.6944613601222183 ], "ocr": false, "ocr_confidence": 1, "text": "plans in four of our existing states—Florida, " }, { "bbox": [ 1.049558851453993, 0.6972643919665404, 1.2479378694023182, 0.7083502490111072 ], "ocr": false, "ocr_confidence": 1, "text": "Georgia, Mississippi, and Texas." }, { "bbox": [ 1.353594811134089, 0.14129214816623265, 1.4465032839307599, 0.14901941472833807 ], "ocr": false, "ocr_confidence": 1, "text": "COMMERCIAL" }, { "bbox": [ 1.3543300254672181, 0.15677195847636521, 1.5963725171058007, 0.16794617007477114 ], "ocr": false, "ocr_confidence": 1, "text": "In addition to offering large group and " }, { "bbox": [ 1.35343135260289, 0.1707492404513889, 1.5856861787683822, 0.18183505896366003 ], "ocr": false, "ocr_confidence": 1, "text": "small group commercial coverage in " }, { "bbox": [ 1.3531045352711397, 0.184549736254143, 1.6375178916781556, 0.19572394785254893 ], "ocr": false, "ocr_confidence": 1, "text": "Arizona, California, Oregon and Washington, " }, { "bbox": [ 1.3536764905343648, 0.19843862514303187, 1.62504567663654, 0.2095118821269334 ], "ocr": false, "ocr_confidence": 1, "text": "Centene also offers health insurance plans " }, { "bbox": [ 1.3536764905343648, 0.21232751403192077, 1.6346404630374285, 0.2235017256303267 ], "ocr": false, "ocr_confidence": 1, "text": "on state and federal exchanges. While other " }, { "bbox": [ 1.3536764905343648, 0.22630479600694445, 1.6345260719847834, 0.2373906145192156 ], "ocr": false, "ocr_confidence": 1, "text": "companies have struggled to succeed in the " }, { "bbox": [ 1.3543300254672181, 0.24019368489583334, 1.6210129681755514, 0.2511785487936001 ], "ocr": false, "ocr_confidence": 1, "text": "Health Insurance Marketplace, Centene is " }, { "bbox": [ 1.3536764905343648, 0.2539941806985874, 1.6275489158879697, 0.26516839229699335 ], "ocr": false, "ocr_confidence": 1, "text": "one of the few managed care organizations " }, { "bbox": [ 1.3531045352711397, 0.2678830695874763, 1.6079884448082618, 0.27905728118588224 ], "ocr": false, "ocr_confidence": 1, "text": "that has been effective in navigating the " }, { "bbox": [ 1.3531045352711397, 0.2817719584763652, 1.6160455840864991, 0.29283257686730585 ], "ocr": false, "ocr_confidence": 1, "text": "Affordable Care Act (ACA), with excellent " }, { "bbox": [ 1.3541666666666667, 0.2956608473652541, 1.6084133970971202, 0.30683505896366003 ], "ocr": false, "ocr_confidence": 1, "text": "results. Many of our exchange members " }, { "bbox": [ 1.3531045352711397, 0.309638206404869, 1.6119753769020628, 0.3206861862028488 ], "ocr": false, "ocr_confidence": 1, "text": "were previously Medicaid members, and " }, { "bbox": [ 1.3531045352711397, 0.3235270952937579, 1.611142027611826, 0.33461291380602903 ], "ocr": false, "ocr_confidence": 1, "text": "they are subsidy-eligible under the ACA. " }, { "bbox": [ 1.3536764905343648, 0.3373023139105903, 1.6303888458052491, 0.34850180269491793 ], "ocr": false, "ocr_confidence": 1, "text": "Centene’s Ambetter product is strategically " }, { "bbox": [ 1.3541666666666667, 0.3513047960069444, 1.6181012321920956, 0.3623906915838068 ], "ocr": false, "ocr_confidence": 1, "text": "priced and designed to serve low-income " }, { "bbox": [ 1.3539052726396548, 0.36519372342812895, 1.5870081085005616, 0.3762417032261087 ], "ocr": false, "ocr_confidence": 1, "text": "individuals. We have relied on a very " }, { "bbox": [ 1.3536764905343648, 0.3790826508493135, 1.5880537843392566, 0.39006747621478455 ], "ocr": false, "ocr_confidence": 1, "text": "deliberate and methodical approach " }, { "bbox": [ 1.3531045352711397, 0.3929715397382023, 1.5963218539368873, 0.4040573967827691 ], "ocr": false, "ocr_confidence": 1, "text": "to how we design and price the plans, " }, { "bbox": [ 1.353594811134089, 0.40749174175840436, 1.4777777179393894, 0.4160649463383838 ], "ocr": false, "ocr_confidence": 1, "text": "and build networks." }, { "bbox": [ 1.353594811134089, 0.4462164676550663, 1.4613561692580679, 0.4539437342171717 ], "ocr": false, "ocr_confidence": 1, "text": "CORRECTIONAL" }, { "bbox": [ 1.35343135260289, 0.4616962394329033, 1.6047204709520526, 0.4728704895636048 ], "ocr": false, "ocr_confidence": 1, "text": "Since receiving its first state contract in " }, { "bbox": [ 1.3533496732026145, 0.4756735214079269, 1.5692794899535334, 0.4867088626129459 ], "ocr": false, "ocr_confidence": 1, "text": "2015, Centurion (our joint venture " }, { "bbox": [ 1.3536764905343648, 0.4895624102968158, 1.6277580510557088, 0.5006103900947956 ], "ocr": false, "ocr_confidence": 1, "text": "correctional healthcare services subsidiary " }, { "bbox": [ 1.3531045352711397, 0.5034513377180003, 1.6199345806844874, 0.5144235630228062 ], "ocr": false, "ocr_confidence": 1, "text": "with MHM Services Inc.) has maintained a " }, { "bbox": [ 1.35343135260289, 0.5173402266068892, 1.6158806295955883, 0.5284260836514559 ], "ocr": false, "ocr_confidence": 1, "text": "solid growth position in the development " }, { "bbox": [ 1.3541666666666667, 0.5311407224096433, 1.6153904534632864, 0.5422139408612492 ], "ocr": false, "ocr_confidence": 1, "text": "pipeline of our core businesses platform. " }, { "bbox": [ 1.3543301251978657, 0.5450295727662365, 1.6364051968443627, 0.5562038228969381 ], "ocr": false, "ocr_confidence": 1, "text": "By combining sound financial discipline with " }, { "bbox": [ 1.3531046350017872, 0.5589184616551255, 1.626614439721201, 0.5700548345392401 ], "ocr": false, "ocr_confidence": 1, "text": "the delivery of appropriate care, Centurion " }, { "bbox": [ 1.3539053723703023, 0.5729083051585188, 1.6337091782513786, 0.5839815621424203 ], "ocr": false, "ocr_confidence": 1, "text": "is gaining recognition among states as a top " }, { "bbox": [ 1.3536765902650123, 0.5867845939867424, 1.6085442437065973, 0.5977694193522135 ], "ocr": false, "ocr_confidence": 1, "text": "correctional healthcare provider. In 2016" }, { "bbox": [ 1.6097713295930351, 0.5938553087639086, 1.6169936236213236, 0.5966078247686829 ], "ocr": false, "ocr_confidence": 1, "text": ", " }, { "bbox": [ 1.3543300254672181, 0.6005598126035748, 1.6342972898794934, 0.6092466489233151 ], "ocr": false, "ocr_confidence": 1, "text": "Florida and New Mexico marked Centurion’s " }, { "bbox": [ 1.35343135260289, 0.6145623332322246, 1.6180031969656352, 0.6231355378122041 ], "ocr": false, "ocr_confidence": 1, "text": "sixth and seventh state-wide correctional " }, { "bbox": [ 1.3541666666666667, 0.6284511835888179, 1.614720462973601, 0.6395370406333847 ], "ocr": false, "ocr_confidence": 1, "text": "healthcare contract, respectively, joining " }, { "bbox": [ 1.3543300254672181, 0.6423400724777067, 1.6055881275850183, 0.6533248978431778 ], "ocr": false, "ocr_confidence": 1, "text": "Massachusetts, Minnesota, Mississippi, " }, { "bbox": [ 1.3531045352711397, 0.6562289228343, 1.5956012002782884, 0.6672769026322798 ], "ocr": false, "ocr_confidence": 1, "text": "Tennessee and Vermont. Additionally, " }, { "bbox": [ 1.3543300254672181, 0.670117811723189, 1.5771061517054739, 0.6786910355693162 ], "ocr": false, "ocr_confidence": 1, "text": "Health Net Federal Services holds a " }, { "bbox": [ 1.3536764905343648, 0.6839182689936474, 1.6054557850158293, 0.6925798859259095 ], "ocr": false, "ocr_confidence": 1, "text": "correctional contract with the California " }, { "bbox": [ 1.3543300254672181, 0.6978071578825363, 1.548758114085478, 0.70888039560029 ], "ocr": false, "ocr_confidence": 1, "text": "Department of Corrections and " }, { "bbox": [ 1.3543300254672181, 0.712415752988873, 1.4447549059500102, 0.7209889768350004 ], "ocr": false, "ocr_confidence": 1, "text": "Rehabilitation." }, { "bbox": [ 1.6624019847196692, 0.14127935544408934, 1.7936273711958741, 0.14901926059915563 ], "ocr": false, "ocr_confidence": 1, "text": "FEDERAL SERVICES" }, { "bbox": [ 1.6619118085873672, 0.15677180434718277, 1.9454557132097632, 0.1679460159455887 ], "ocr": false, "ocr_confidence": 1, "text": "Centene has a long history of supporting our " }, { "bbox": [ 1.6624019847196692, 0.17063541605014992, 1.9328756893382353, 0.18057227857185132 ], "ocr": false, "ocr_confidence": 1, "text": "nation’s service men and women, and now " }, { "bbox": [ 1.6619118085873672, 0.18454958212496053, 1.9099346485013275, 0.19562283910886205 ], "ocr": false, "ocr_confidence": 1, "text": "our network of over 470,000 providers " }, { "bbox": [ 1.6618301291870916, 0.1985268640999842, 1.9210619957618464, 0.2071000686799637 ], "ocr": false, "ocr_confidence": 1, "text": "across 3 39 states serves close to 3 3 million " }, { "bbox": [ 1.6624019847196692, 0.21232735990273832, 1.8955064162709354, 0.22346373278685291 ], "ocr": false, "ocr_confidence": 1, "text": "military families and veterans across " }, { "bbox": [ 1.6624019847196692, 0.226304641877762, 1.892009859770731, 0.23728950577552874 ], "ocr": false, "ocr_confidence": 1, "text": "multiple contracts. Federal Services " }, { "bbox": [ 1.6624019847196692, 0.24019353076665087, 1.9320571001838236, 0.25127934927892204 ], "ocr": false, "ocr_confidence": 1, "text": "programs are an important addition to the " }, { "bbox": [ 1.6619118085873672, 0.253994026569405, 1.930602827882455, 0.26516823816781093 ], "ocr": false, "ocr_confidence": 1, "text": "Centene government healthcare portfolio, " }, { "bbox": [ 1.6618301291870916, 0.2678829154582939, 1.9003431532118056, 0.2790571270566998 ], "ocr": false, "ocr_confidence": 1, "text": "and they represent significant growth " }, { "bbox": [ 1.6619118085873672, 0.2818601974333175, 1.9198528613919525, 0.29290817723129736 ], "ocr": false, "ocr_confidence": 1, "text": "opportunities ahead, especially with our " }, { "bbox": [ 1.6618301291870916, 0.2957491633867977, 1.9130717757480595, 0.30679714318477747 ], "ocr": false, "ocr_confidence": 1, "text": "ability to deploy our specialty solutions " }, { "bbox": [ 1.6613398533241421, 0.3096380522756865, 1.9247352749693627, 0.3207238707879577 ], "ocr": false, "ocr_confidence": 1, "text": "through Envolve. We are honored to have " }, { "bbox": [ 1.6624019847196692, 0.32343854807844064, 1.9148838816125409, 0.33210014574455493 ], "ocr": false, "ocr_confidence": 1, "text": "received an award for the 2017 TRICARE " }, { "bbox": [ 1.6619118085873672, 0.3374158300534643, 1.9453577777139501, 0.34850164856573546 ], "ocr": false, "ocr_confidence": 1, "text": "contract in the Western region, representing " }, { "bbox": [ 1.6618301291870916, 0.3513047189423532, 1.9385112687653185, 0.36239057598692 ], "ocr": false, "ocr_confidence": 1, "text": "a return to the original Health Net region at " }, { "bbox": [ 1.6613398533241421, 0.3651052147451073, 1.930212282666973, 0.3762794648758089 ], "ocr": false, "ocr_confidence": 1, "text": "the launch of the TRICARE program in 1988" }, { "bbox": [ 1.9321733861187704, 0.3721380522756865, 1.9391178305632149, 0.3736910579180477 ], "ocr": false, "ocr_confidence": 1, "text": ". " }, { "bbox": [ 1.6613399530547897, 0.379082496720131, 1.9085457995046977, 0.3901304765181108 ], "ocr": false, "ocr_confidence": 1, "text": "Additionally, Centene has been able to " }, { "bbox": [ 1.661830228917739, 0.3929713856090199, 1.9188563527624591, 0.40154459018899935 ], "ocr": false, "ocr_confidence": 1, "text": "address concerns around access to care " }, { "bbox": [ 1.6624020844503167, 0.4068602744979088, 1.9425473680683212, 0.41794613154247556 ], "ocr": false, "ocr_confidence": 1, "text": "by coordinating over 1 million appointments " }, { "bbox": [ 1.6614217321857128, 0.4206607703006629, 1.9124656128727533, 0.43057239416873816 ], "ocr": false, "ocr_confidence": 1, "text": "for more than 700,000 veterans across " }, { "bbox": [ 1.6619119083180147, 0.4352693654069997, 1.8713382895475899, 0.4438425699869792 ], "ocr": false, "ocr_confidence": 1, "text": "our Veterans Choice service area." }, { "bbox": [ 1.6624020844503167, 0.4739940913036616, 1.724377600975286, 0.48172135786576703 ], "ocr": false, "ocr_confidence": 1, "text": "ENVOLVE" }, { "bbox": [ 1.6619119083180147, 0.48956229469992896, 1.9414870318244486, 0.5006481517444957 ], "ocr": false, "ocr_confidence": 1, "text": "Centene has a longstanding commitment to " }, { "bbox": [ 1.66166677038654, 0.5034511835888179, 1.9372043983609069, 0.5145370406333847 ], "ocr": false, "ocr_confidence": 1, "text": "serving the whole person, and over the last " }, { "bbox": [ 1.6619119083180147, 0.517251679391572, 1.9257174223856208, 0.5283880522756865 ], "ocr": false, "ocr_confidence": 1, "text": "dozen years we have built a continuum of " }, { "bbox": [ 1.6621406904233047, 0.5312289613665957, 1.9017778783062704, 0.5423148184111624 ], "ocr": false, "ocr_confidence": 1, "text": "integrated capabilities to support our " }, { "bbox": [ 1.6621406904233047, 0.5450294571693497, 1.927124222898795, 0.5562037073000513 ], "ocr": false, "ocr_confidence": 1, "text": "internal health plans, and a wide range of " }, { "bbox": [ 1.6619119083180147, 0.5589183075259431, 1.9264705882352942, 0.5700546804100576 ], "ocr": false, "ocr_confidence": 1, "text": "external customers. The Envolve family of " }, { "bbox": [ 1.6624020844503167, 0.5728955509686711, 1.9194282082950367, 0.5839814080132378 ], "ocr": false, "ocr_confidence": 1, "text": "health solutions works together to make " }, { "bbox": [ 1.6624020844503167, 0.5866960467714252, 1.9443301531224468, 0.5977692652230311 ], "ocr": false, "ocr_confidence": 1, "text": "healthcare simpler, more effective and more " }, { "bbox": [ 1.661830228917739, 0.6005849356603141, 1.9009640762229372, 0.6092465333264283 ], "ocr": false, "ocr_confidence": 1, "text": "accessible for healthcare consumers. " }, { "bbox": [ 1.66166677038654, 0.6145621791030421, 1.9447191026475694, 0.6256480361476089 ], "ocr": false, "ocr_confidence": 1, "text": "Specialty services deployed through Envolve " }, { "bbox": [ 1.6624020844503167, 0.6284510294596354, 1.9436603620940565, 0.6395368865042022 ], "ocr": false, "ocr_confidence": 1, "text": "realized increasing success in 2016. Through " }, { "bbox": [ 1.6613399530547897, 0.6422515252623895, 1.9304739758859273, 0.6534257753930911 ], "ocr": false, "ocr_confidence": 1, "text": "the delivery of innovative and high-quality " }, { "bbox": [ 1.6624020844503167, 0.6562288072374132, 1.9380720549938726, 0.6673146642819799 ], "ocr": false, "ocr_confidence": 1, "text": "programs, including a management service " }, { "bbox": [ 1.661830228917739, 0.6700292645078717, 1.9345571480545343, 0.6812035146385732 ], "ocr": false, "ocr_confidence": 1, "text": "agreements in Maryland and the successful " }, { "bbox": [ 1.661830228917739, 0.683918114864465, 1.8922206903594772, 0.692579731796727 ], "ocr": false, "ocr_confidence": 1, "text": "award of 13 fee-based contracts with " }, { "bbox": [ 1.6613399530547897, 0.6978953968394886, 1.940637326708027, 0.7089812538840554 ], "ocr": false, "ocr_confidence": 1, "text": "third-party customers, Envolve has emerged " }, { "bbox": [ 1.661830228917739, 0.7116706347224688, 1.926519655713848, 0.7228701427729443 ], "ocr": false, "ocr_confidence": 1, "text": "as a key part of Centene’s growth strategy." }, { "bbox": [ 0.10468218684975618, 0.9120012630115856, 0.2571960648680045, 0.9213598472903474 ], "ocr": false, "ocr_confidence": 1, "text": "* includes implementations" }, { "bbox": [ 0.11027940737655739, 0.924622477907123, 0.2818627450980392, 0.9339810621858847 ], "ocr": false, "ocr_confidence": 1, "text": "expected to commence in 2017" }, { "bbox": [ 0.10623348460477941, 0.3543074636748343, 0.1745014564663756, 0.3620347302369397 ], "ocr": false, "ocr_confidence": 1, "text": "MEDICAID" }, { "bbox": [ 0.10553740208445031, 0.3694564742271346, 0.3558872447294347, 0.3783541978007615 ], "ocr": false, "ocr_confidence": 1, "text": "Includes TANF, CHIP, Foster Care, ABD and " }, { "bbox": [ 0.10553740208445031, 0.3845360110504459, 0.30159614912045546, 0.39458149611347854 ], "ocr": false, "ocr_confidence": 1, "text": "Long Term Services and Supports" }, { "bbox": [ 0.10523021922392004, 0.41023296780056423, 0.3235645169526144, 0.425519615712792 ], "ocr": false, "ocr_confidence": 1, "text": "23 states with Medicaid programs*" }, { "bbox": [ 0.10661910561954274, 0.4317733687583846, 0.22143138312046823, 0.44490976044625946 ], "ocr": false, "ocr_confidence": 1, "text": "6 RFP wins in 2016" }, { "bbox": [ 0.10623348460477941, 0.494130683667732, 0.1774916555367264, 0.5018579502298375 ], "ocr": false, "ocr_confidence": 1, "text": "MEDICARE" }, { "bbox": [ 0.10553740208445031, 0.5092114920567985, 0.4217122894486571, 0.5192569771198311 ], "ocr": false, "ocr_confidence": 1, "text": "Includes Medicare Advantage, Medicare Supplement, " }, { "bbox": [ 0.10524328393873826, 0.5218364831173059, 0.4043607524797028, 0.5317910319626934 ], "ocr": false, "ocr_confidence": 1, "text": "Special Needs Plans and Medicare-Medicare Plans" }, { "bbox": [ 0.10523021922392004, 0.5475309352682094, 0.33704525816674324, 0.5628175831804372 ], "ocr": false, "ocr_confidence": 1, "text": "4-Star parent organization rating" }, { "bbox": [ 0.10498021942338133, 0.5690713362260298, 0.3726305494121477, 0.5843970944183041 ], "ocr": false, "ocr_confidence": 1, "text": "334,300year-end membership (2016)" }, { "bbox": [ 0.105661591673209, 0.6314286896676728, 0.195628907945421, 0.6391559562297783 ], "ocr": false, "ocr_confidence": 1, "text": "COMMERCIAL" }, { "bbox": [ 0.10609133103314568, 0.655232978589607, 0.31027406181385314, 0.6705196265018347 ], "ocr": false, "ocr_confidence": 1, "text": "1.2 million year-end membership " }, { "bbox": [ 0.10523021922392004, 0.6770309294113005, 0.3965146931168301, 0.6920599696612117 ], "ocr": false, "ocr_confidence": 1, "text": "4 states with small and large group commercial" }, { "bbox": [ 0.10609133103314568, 0.6983137805052478, 0.3318183250676573, 0.7135094729336825 ], "ocr": false, "ocr_confidence": 1, "text": "13 states with Marketplace contracts" }, { "bbox": [ 0.4565359377393536, 0.3543074636748343, 0.5642973457286561, 0.3620347302369397 ], "ocr": false, "ocr_confidence": 1, "text": "CORRECTIONAL" }, { "bbox": [ 0.45610455282373363, 0.3742481193157158, 0.7182204801272722, 0.3872733838630445 ], "ocr": false, "ocr_confidence": 1, "text": "2 new contracts in Florida and New Mexico" }, { "bbox": [ 0.4568823521433313, 0.3957885202735361, 0.7036320804770476, 0.408924911961411 ], "ocr": false, "ocr_confidence": 1, "text": "8state-wide correctional care contracts" }, { "bbox": [ 0.4571078431372549, 0.45813323512221826, 0.5883333293441074, 0.46587310174498897 ], "ocr": false, "ocr_confidence": 1, "text": "FEDERAL SERVICES" }, { "bbox": [ 0.45641177308325676, 0.4770902768530027, 0.7393072789011438, 0.48713576191603536 ], "ocr": false, "ocr_confidence": 1, "text": "Includes TRICARE, Veterans Choice and Military " }, { "bbox": [ 0.45608824686287275, 0.48970390088630444, 0.6448807560540493, 0.49976075297654277 ], "ocr": false, "ocr_confidence": 1, "text": "& Family Life Counseling (MFLC) " }, { "bbox": [ 0.45558824726179536, 0.5143857628408105, 0.6367499656926573, 0.5243857797950205 ], "ocr": false, "ocr_confidence": 1, "text": "Awarded TRICARE West Region " }, { "bbox": [ 0.4558545779558568, 0.5306369897091028, 0.5836607989142922, 0.545962747901377 ], "ocr": false, "ocr_confidence": 1, "text": "3,200employees" }, { "bbox": [ 0.45610455282373363, 0.5521774291992188, 0.6414993884516698, 0.5674640771114465 ], "ocr": false, "ocr_confidence": 1, "text": "2.8 million TRICARE Eligibles" }, { "bbox": [ 0.45610455282373363, 0.5737178301570391, 0.6584209367340687, 0.5890044780692669 ], "ocr": false, "ocr_confidence": 1, "text": "28years serving military families" }, { "bbox": [ 0.4571078431372549, 0.6360751065340909, 0.5190833596622243, 0.6438023730961964 ], "ocr": false, "ocr_confidence": 1, "text": "ENVOLVE" }, { "bbox": [ 0.45641177308325676, 0.6550082197093, 0.7377350751091453, 0.6650650717995383 ], "ocr": false, "ocr_confidence": 1, "text": "Includes a comprehensive portfolio of specialty " }, { "bbox": [ 0.45641177308325676, 0.6689059324938842, 0.5778970157398897, 0.6766900341920178 ], "ocr": false, "ocr_confidence": 1, "text": "healthcare solutions" }, { "bbox": [ 0.45610455282373363, 0.6946016369443951, 0.5854384478400735, 0.7099273951366695 ], "ocr": false, "ocr_confidence": 1, "text": "4,300employees" }, { "bbox": [ 0.45696567709929026, 0.7161420571683633, 0.772468616759855, 0.7314286665482954 ], "ocr": false, "ocr_confidence": 1, "text": "13 Quality Recognition & Innovation Awards in 2016" }, { "bbox": [ 0.10368529176400378, 0.1131361373747238, 0.29056760999891496, 0.12240885724925031 ], "ocr": false, "ocr_confidence": 1, "text": "TO HELP MORE PEOPLE" }, { "bbox": [ 0.10459215500775505, 0.15567648531210543, 0.8175014919704862, 0.17230532867739898 ], "ocr": false, "ocr_confidence": 1, "text": "Centene serves more than 11 million managed care members through our " }, { "bbox": [ 0.10532745660520067, 0.1770022613833649, 0.8416216482523999, 0.193763655845565 ], "ocr": false, "ocr_confidence": 1, "text": "portfolio of high-quality commercial and government sponsored healthcare " }, { "bbox": [ 0.10532745660520067, 0.19846058855153093, 0.8671119041692198, 0.21522198301373105 ], "ocr": false, "ocr_confidence": 1, "text": "programs. The broad offering of programs that we provide has helped us build " }, { "bbox": [ 0.10532745660520067, 0.21991891571969696, 0.8416437884561376, 0.23668031018189709 ], "ocr": false, "ocr_confidence": 1, "text": "both capacity and capability to successfully navigate a changing healthcare " }, { "bbox": [ 0.10459215500775505, 0.241377242887863, 0.8281186172385621, 0.25813863735006315 ], "ocr": false, "ocr_confidence": 1, "text": "environment, while continuing to offer better health outcomes at lower costs." } ]
[ { "bbox": [ 0.10368529176400378, 0.1131361373747238, 0.29056760999891496, 0.12240885724925031 ], "data": [], "index_in_doc": 682, "label": "text", "text": "TO HELP MORE PEOPLE" }, { "bbox": [ 0.10532745660520067, 0.1770022613833649, 0.8416216482523999, 0.193763655845565 ], "data": [], "index_in_doc": 683, "label": "text", "text": "portfolio of high-quality commercial and government sponsored healthcare" }, { "bbox": [ 0.10532745660520067, 0.21991891571969696, 0.8416437884561376, 0.23668031018189709 ], "data": [], "index_in_doc": 684, "label": "text", "text": "both capacity and capability to successfully navigate a changing healthcare" }, { "bbox": [ 0.04772373897577423, 0.15567648531210543, 0.8671119041692198, 0.44592924792357164 ], "data": [], "index_in_doc": 685, "label": "text", "text": "MEDICAID Includes TANF, CHIP, Foster Care, ABD and Long Term Services and Supports 23 states with Medicaid programs* 6 RFP wins in 2016 Centene serves more than 11 million managed care members through our programs. The broad offering of programs that we provide has helped us build environment, while continuing to offer better health outcomes at lower costs." }, { "bbox": [ 0.10459215500775505, 0.15567648531210543, 0.8671119041692198, 0.41023296780056423 ], "data": [], "index_in_doc": 686, "label": "text", "text": "CORRECTIONAL 2 new contracts in Florida and New Mexico 8state-wide correctional care contracts Centene serves more than 11 million managed care members through our programs. The broad offering of programs that we provide has helped us build environment, while continuing to offer better health outcomes at lower costs." }, { "bbox": [ 0.10459215500775505, 0.15567648531210543, 0.9439619475719976, 0.3957885202735361 ], "data": [], "index_in_doc": 687, "label": "text", "text": "2 new contracts in Florida and New Mexico Centene serves more than 11 million managed care members through our programs. The broad offering of programs that we provide has helped us build environment, while continuing to offer better health outcomes at lower costs." }, { "bbox": [ 0.10553740208445031, 0.5092114920567985, 0.4217122894486571, 0.5192569771198311 ], "data": [], "index_in_doc": 688, "label": "text", "text": "Includes Medicare Advantage, Medicare Supplement," }, { "bbox": [ 0.04768572601617551, 0.48844119755908694, 0.4043607524797028, 0.7135094729336825 ], "data": [], "index_in_doc": 689, "label": "text", "text": "MEDICARE Special Needs Plans and Medicare-Medicare Plans 4-Star parent organization rating 334,300year-end membership (2016) COMMERCIAL 1.2 million year-end membership 4 states with small and large group commercial 13 states with Marketplace contracts" }, { "bbox": [ 0.10468218684975618, 0.9120012630115856, 0.2818627450980392, 0.9339810621858847 ], "data": [], "index_in_doc": 690, "label": "text", "text": "* includes implementations expected to commence in 2017" }, { "bbox": [ 0.3515830694460401, 0.45813323512221826, 0.7393072789011438, 0.7208069310043798 ], "data": [], "index_in_doc": 691, "label": "text", "text": "FEDERAL SERVICES Includes TRICARE, Veterans Choice and Military & Family Life Counseling (MFLC) Awarded TRICARE West Region 3,200employees 2.8 million TRICARE Eligibles 28years serving military families ENVOLVE healthcare solutions 4,300employees" }, { "bbox": [ 0.45641177308325676, 0.6550082197093, 0.7377350751091453, 0.6650650717995383 ], "data": [], "index_in_doc": 692, "label": "text", "text": "Includes a comprehensive portfolio of specialty" }, { "bbox": [ 0.45696567709929026, 0.7161420571683633, 0.772468616759855, 0.7314286665482954 ], "data": [], "index_in_doc": 693, "label": "text", "text": "13 Quality Recognition & Innovation Awards in 2016" }, { "bbox": [ 1.050049027586295, 0.1412923022954151, 1.1183170493132149, 0.14901956885752052 ], "data": [], "index_in_doc": 694, "label": "text", "text": "MEDICAID" }, { "bbox": [ 1.048986896190768, 0.15686050569168244, 1.3298823537390216, 0.26265593249388414 ], "data": [], "index_in_doc": 695, "label": "text", "text": "The Centene story began over 30 years ago as a single nonprofit Medicaid health plan operating in the basement of a Milwaukee, Wisconsin hospital. Today, Centene is the nation's largest Medicaid Managed Care Organization serving more than 6.9 million Medicaid members, including behvioral health. Centene is also a leader in three" }, { "bbox": [ 1.0494771720537173, 0.2678832237166588, 1.326797385620915, 0.359878193248402 ], "data": [], "index_in_doc": 696, "label": "text", "text": "of the largest Medicaid states: California, Florida and Texas. In 2016, Centene was awarded contracts to continue providing managed care services in three of our existing states, while picking up new contracts in Nebraska, Pennsylvania and Nevada. The success of Centene's Medicaid" }, { "bbox": [ 1.0494771720537173, 0.36510548447117663, 1.3215800765293095, 0.44562318589952254 ], "data": [], "index_in_doc": 697, "label": "text", "text": "programs supports our multi-line portfolio approach, allowing us to leverage existing Medicaid infrastructure to support expansion of other business lines such as Medicare Advantage and our Ambetter Marketplace product." }, { "bbox": [ 1.050049027586295, 0.4733630864307134, 1.12130717358558, 0.4810903529928188 ], "data": [], "index_in_doc": 698, "label": "text", "text": "MEDICARE" }, { "bbox": [ 1.049558851453993, 0.4889312512946851, 1.2789706560521343, 0.5113933832958492 ], "data": [], "index_in_doc": 699, "label": "text", "text": "Centene served more than 334,000 Medicare beneficiaries in 2016. Our" }, { "bbox": [ 1.0490686753216911, 0.5166206745186237, 1.3306503794551674, 0.539171161073627 ], "data": [], "index_in_doc": 700, "label": "text", "text": "acquisition of Heath Net paved the way for us to offer consumers a 4 Star Medicare" }, { "bbox": [ 1.048986896190768, 0.5444868068502406, 1.3339363048279207, 0.7083502490111072 ], "data": [], "index_in_doc": 701, "label": "text", "text": "Advantage product. More than 10,000 people a day become Medicare eligible, and 65 percent of the more than $700 billion annual medical spend on Medicare is at or below 400 percent of the Federal Poverty Level. Our focus remains on service to low-income elderly populations, allowing us to leverage existing networks and geographic footprint. In 2017, Centene will begin providing Medicare Advantage plans in four of our existing states-Florida, Georgia, Mississippi, and Texas." }, { "bbox": [ 1.353594811134089, 0.14129214816623265, 1.4465032839307599, 0.14901941472833807 ], "data": [], "index_in_doc": 702, "label": "text", "text": "COMMERCIAL" }, { "bbox": [ 1.3531045352711397, 0.15677195847636521, 1.6375178916781556, 0.4160649463383838 ], "data": [], "index_in_doc": 703, "label": "text", "text": "In addition to offering large group and small group commercial coverage in Arizona, California, Oregon and Washington, Centene also offers health insurance plans on state and federal exchanges. While other companies have struggled to succeed in the Health Insurance Marketplace, Centene is one of the few managed care organizations that has been effective in navigating the Affordable Care Act (ACA), with excellent results. Many of our exchange members were previously Medicaid members, and they are subsidy-eligible under the ACA. Centene's Ambetter product is strategically priced and designed to serve low-income individuals. We have relied on a very deliberate and methodical approach to how we design and price the plans, and build networks." }, { "bbox": [ 1.353594811134089, 0.4462164676550663, 1.4613561692580679, 0.4539437342171717 ], "data": [], "index_in_doc": 704, "label": "text", "text": "CORRECTIONAL" }, { "bbox": [ 1.3531045352711397, 0.4616962394329033, 1.6364051968443627, 0.6092466489233151 ], "data": [], "index_in_doc": 705, "label": "text", "text": "Since receiving its first state contract in 2015, Centurion (our joint venture correctional healthcare services subsidiary with MHM Services Inc.) has maintained a solid growth position in the development pipeline of our core businesses platform. By combining sound financial discipline with the delivery of appropriate care, Centurion is gaining recognition among states as a top correctional healthcare provider. In 2016 , Florida and New Mexico marked Centurion's" }, { "bbox": [ 1.35343135260289, 0.6145623332322246, 1.6180031969656352, 0.6231355378122041 ], "data": [], "index_in_doc": 706, "label": "text", "text": "sixth and seventh state-wide correctional" }, { "bbox": [ 1.3531045352711397, 0.6284511835888179, 1.614720462973601, 0.6786910355693162 ], "data": [], "index_in_doc": 707, "label": "text", "text": "healthcare contract, respectively, joining Massachusetts, Minnesota, Mississippi, Tennessee and Vermont. Additionally, Health Net Federal Services holds a" }, { "bbox": [ 1.3536764905343648, 0.6839182689936474, 1.6054557850158293, 0.6925798859259095 ], "data": [], "index_in_doc": 708, "label": "text", "text": "correctional contract with the California" }, { "bbox": [ 1.3543300254672181, 0.6978071578825363, 1.548758114085478, 0.7209889768350004 ], "data": [], "index_in_doc": 709, "label": "text", "text": "Department of Corrections and Rehabilitation." }, { "bbox": [ 1.6624019847196692, 0.14127935544408934, 1.7936273711958741, 0.14901926059915563 ], "data": [], "index_in_doc": 710, "label": "text", "text": "FEDERAL SERVICES" }, { "bbox": [ 1.6618301291870916, 0.15677180434718277, 1.9454557132097632, 0.2071000686799637 ], "data": [], "index_in_doc": 711, "label": "text", "text": "Centene has a long history of supporting our nation's service men and women, and now our network of over 470,000 providers across 3 39 states serves close to 3 3 million" }, { "bbox": [ 1.6613398533241421, 0.21232735990273832, 1.9320571001838236, 0.33210014574455493 ], "data": [], "index_in_doc": 712, "label": "text", "text": "military families and veterans across multiple contracts. Federal Services programs are an important addition to the Centene government healthcare portfolio, and they represent significant growth opportunities ahead, especially with our ability to deploy our specialty solutions through Envolve. We are honored to have received an award for the 2017 TRICARE" }, { "bbox": [ 1.6613398533241421, 0.3374158300534643, 1.9453577777139501, 0.40154459018899935 ], "data": [], "index_in_doc": 713, "label": "text", "text": "contract in the Western region, representing a return to the original Health Net region at the launch of the TRICARE program in 1988 . Additionally, Centene has been able to address concerns around access to care" }, { "bbox": [ 1.6614217321857128, 0.4068602744979088, 1.9425473680683212, 0.4438425699869792 ], "data": [], "index_in_doc": 714, "label": "text", "text": "by coordinating over 1 million appointments for more than 700,000 veterans across our Veterans Choice service area." }, { "bbox": [ 1.6624020844503167, 0.4739940913036616, 1.724377600975286, 0.48172135786576703 ], "data": [], "index_in_doc": 715, "label": "text", "text": "ENVOLVE" }, { "bbox": [ 1.66166677038654, 0.48956229469992896, 1.9443301531224468, 0.6092465333264283 ], "data": [], "index_in_doc": 716, "label": "text", "text": "Centene has a longstanding commitment to serving the whole person, and over the last dozen years we have built a continuum of integrated capabilities to support our internal health plans, and a wide range of external customers. The Envolve family of health solutions works together to make healthcare simpler, more effective and more accessible for healthcare consumers." }, { "bbox": [ 1.6613399530547897, 0.6145621791030421, 1.9447191026475694, 0.692579731796727 ], "data": [], "index_in_doc": 717, "label": "text", "text": "Specialty services deployed through Envolve realized increasing success in 2016. Through the delivery of innovative and high-quality programs, including a management service agreements in Maryland and the successful award of 13 fee-based contracts with" }, { "bbox": [ 1.6613399530547897, 0.6978953968394886, 1.940637326708027, 0.7228701427729443 ], "data": [], "index_in_doc": 718, "label": "text", "text": "third-party customers, Envolve has emerged as a key part of Centene's growth strategy." }, { "bbox": [ 1.6686545976626328, 0.9524766411444153, 1.9461253047768587, 0.961813762934521 ], "data": [], "index_in_doc": 719, "label": "text", "text": "To Help More People CENTENE CORPORATION 17" } ]
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QUARTERLY SELECTED FINANCIAL INFORMATION For the Quarter Ended, 2016 (1) (1) The Company early adopted ASU (Accounting Standards Update) 2016-09 during the fourth quarter of 2016. The ASU requires adjustments be reflected as of the beginning of the fiscal year of adoption and as a result, prior periods have been restated accordingly. Refer to Note 2, Summary of Significant Accounting Policies in our form 10-K. 18 CENTENE CORPORATION Quarterly Financial Information Selected Financial Information CENTENE CORPORATION 19 SELECTED FINANCIAL INFORMATION Revenues Premium Expenses Other Income (Expense) Amounts Attributable to Centene Corporation Common Shareholders Earnings from continuing operations, net of income tax expense Net Earnings (Loss) Per Common Share Attributable to Centene Corporation Weighted Average Number of Common Shares Outstanding Discontinued operations, net of income tax expense (benefit) Net earnings $562 $355 $271 Basic: Continuing operations $3.50 $2.99 $2.30 Discontinued operations Basic earnings per common share $3.52 $2.98 $2.33 Diluted: Continuing operations $3.41 $2.89 $2.23 Discontinued operations Diluted earnings per common share $3.43 $2.88 $2.25 Basic Diluted 159,567,607 119,100,744 116,345,764 163,975,407 123,066,370 120,360,212 0.02 (0.01) 0.02 0.02 (0.01) 0.03 Service Premium and service revenues Premium tax and health insurer fee Total Revenues Medical costs Cost of services Selling, general and administrative expenses 3,676 1,802 1,298 Amortization of acquired intangible assets Premium tax expense 2,563 1,151 698 Health insurer fee expense Total operating expenses 39,347 22,055 16,096 Earnings from operations 1,260 705 464 Investment and other income 114 35 28 Interest expense (217) (43) (35) Earnings from continuing operations, before income tax expense Income tax expense Earnings from continuing operations, net of income tax expense Discontinued operations, net of income tax expense (benefit) of $2, $(1), and $1 respectively Net earnings (Earnings) loss attributable to noncontrolling interests Net earnings attributable to Centene Corporation 1,157 697 457 599 339 196 558 358 261 3 561 357 264 1 $562 $355 $271 $559 $356 $268 3 (1) 3 (2) 7 (1) 3 461 215 126 147 24 16 Year Ended December 31 (in millions, except share data) 2016 2015 2014 $35,399 $19,389 $14,198 2,180 1,876 1,469 37,579 21,265 15,667 3,028 1,495 893 40,607 22,760 16,560 30,636 17,242 12,678 1,864 1,621 1,280
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"ocr_confidence": 1, "text": "(1) The Company early adopted ASU (Accounting Standards Update) " }, { "bbox": [ 0.051875818788615705, 0.823658201429579, 0.4780550190046722, 0.8331563159672901 ], "ocr": false, "ocr_confidence": 1, "text": "2016-09 during the fourth quarter of 2016. The ASU requires adjustments be " }, { "bbox": [ 0.052292487200568706, 0.8362794163251164, 0.4678884768018536, 0.8457775308628275 ], "ocr": false, "ocr_confidence": 1, "text": "reflected as of the beginning of the fiscal year of adoption and as a result, " }, { "bbox": [ 0.05180637197556839, 0.8489006312206538, 0.4706813837188521, 0.858398745758365 ], "ocr": false, "ocr_confidence": 1, "text": "prior periods have been restated accordingly. Refer to Note 2, Summary of " }, { "bbox": [ 0.052014706181544884, 0.8615218461161912, 0.32222304001353147, 0.8710199606539023 ], "ocr": false, "ocr_confidence": 1, "text": "Significant Accounting Policies in our form 10-K." }, { "bbox": [ 0.051973040586982676, 0.9526070633319893, 0.39394650428123723, 0.9621051682366265 ], "ocr": false, "ocr_confidence": 1, "text": "18 CENTENE CORPORATION Quarterly Financial Information " }, { "bbox": [ 1.6156952303219465, 0.9526070633319893, 1.9523201736749387, 0.9621051682366265 ], "ocr": false, "ocr_confidence": 1, "text": "Selected Financial Information CENTENE CORPORATION 19" } ]
[ { "bbox": [ 0.051295897539924175, 0.11176500416765309, 0.23538469800762102, 0.13355786872632575 ], "data": [], "index_in_doc": 720, "label": "section_header", "text": "QUARTERLY SELECTED FINANCIAL INFORMATION" }, { "bbox": [ 0.6789549285290288, 0.1559398150203204, 0.8380505929585376, 0.1647018278488005 ], "data": [], "index_in_doc": 721, "label": "text", "text": "For the Quarter Ended, 2016 (1)" }, { "bbox": [ 0.050851435443155124, 0.16785338430693655, 0.9524675755718954, 0.4531690038815893 ], "data": [ { "html_seq": "<table><tr><td></td><td></td><th colspan=\"4\">(in millions, except share data) (unaudited)</th></tr><tr><td></td><td></td><th>March 31</th><th>June 30</th><th>September 30</th><th>December 31</th></tr><tr><td>Amounts Attributable to Centene Corporation</td><td>Total revenues Earnings (loss) from continuing operations, net of income tax expense</td><td>$6,953</td><td>$10,897</td><td>$10,846</td><td>$11,911</td></tr><tr><td>Common Shareholders</td><td></td><td>(15)</td><td>$171</td><td>$148</td><td>$255</td></tr><tr><td></td><td>Discontinued operations, net of income tax expense (benefit)</td><td>(1)</td><td>(1)</td><td>(1)</td><td>6</td></tr><tr><td></td><td>Net earnings (loss)</td><td>$(16)</td><td>$170</td><td>$147</td><td>$261</td></tr><tr><td>Net Earnings (Loss) Per Common Share</td><td>Basic:</td><td></td><td></td><td></td><td></td></tr><tr><td>Attributable to Centene Corporation</td><td>Continuing operations</td><td>$(0.12)</td><td>$1.00</td><td>$0.87</td><td>$1.49</td></tr><tr><td></td><td>Discontinued operations</td><td>(0.01)</td><td>-</td><td>(0.01)</td><td>0.04</td></tr><tr><td></td><td>Basic earnings per common share</td><td>$(0.13)</td><td>$1.00</td><td>$0.86</td><td>$1.53</td></tr><tr><td></td><td>Diluted:</td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>Continuing operations</td><td>$(0.12)</td><td>$0.98</td><td>$0.84</td><td>$1.45</td></tr><tr><td></td><td>Discontinued operations</td><td>(0.01)</td><td>(0.01)</td><td>-</td><td>0.04</td></tr><tr><td></td><td>Diluted earnings per common share</td><td>$(0.13)</td><td>$0.97</td><td>$0.84</td><td>$1.49</td></tr><tr><td>Weighted Average Number of</td><td>Basic</td><td>125,543,076</td><td>170,558,778</td><td>170,774,587</td><td>171,143,624</td></tr><tr><td>Common Shares Outstanding</td><td>Diluted</td><td>125,543,076</td><td>174,848,996</td><td>175,495,339</td><td>175,511,179</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 722, "label": "table", "text": "" }, { "bbox": [ 0.051234690971623836, 0.48657272801254736, 0.9531680836397058, 0.7766527888750789 ], "data": [ { "html_seq": "<table><tr><td></td><td></td><th colspan=\"4\">For the Quarter Ended, 2015 (in millions, except share data) (unaudited)</th></tr><tr><td></td><td></td><th>March 31</th><th>June 30</th><th>September 30</th><th>December 31</th></tr><tr><td>Amounts Attributable</td><td>Total revenues</td><td>$5,131</td><td>$5,506</td><td>$5,821</td><td>$6,302</td></tr><tr><td>to Centene Corporation Common Shareholders</td><td>Earnings from continuing operations, net of income tax expense Discontinued operations,</td><td>$64</td><td>$88</td><td>$92</td><td>$112</td></tr><tr><td></td><td>net of income tax expense (benefit)</td><td>(1)</td><td>-</td><td>1</td><td>(1)</td></tr><tr><td></td><td>Net earnings</td><td>$63</td><td>$88</td><td>$93</td><td>$111</td></tr><tr><td>Net Earnings (Loss) Per Common Share</td><td>Basic:</td><td></td><td></td><td></td><td></td></tr><tr><td>Attributable to Centene Corporation</td><td>Continuing operations</td><td>$0.54</td><td>$0.74</td><td>$0.77</td><td>$0.94</td></tr><tr><td></td><td>Discontinued operations</td><td>(0.01)</td><td>-</td><td>0.01</td><td>(0.01)</td></tr><tr><td></td><td>Basic earnings per common share</td><td>$0.53</td><td>$0.74</td><td>$0.78</td><td>$0.93</td></tr><tr><td></td><td>Diluted:</td><td></td><td></td><td></td><td></td></tr><tr><td></td><td>Continuing operations</td><td>$0.52</td><td>$0.72</td><td>$0.75</td><td>$0.91</td></tr><tr><td></td><td>Discontinued operations</td><td>(0.01)</td><td>-</td><td>0.01</td><td>(0.01)</td></tr><tr><td></td><td>Diluted earnings per common share</td><td>$0.51</td><td>$0.72</td><td>$0.76</td><td>$0.90</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 723, "label": "table", "text": "" }, { "bbox": [ 0.05051740945554247, 0.8099695070825442, 0.4788152657303156, 0.8713059088196418 ], "data": [], "index_in_doc": 724, "label": "footnote", "text": "(1) The Company early adopted ASU (Accounting Standards Update) 2016-09 during the fourth quarter of 2016. The ASU requires adjustments be reflected as of the beginning of the fiscal year of adoption and as a result, prior periods have been restated accordingly. Refer to Note 2, Summary of Significant Accounting Policies in our form 10-K." }, { "bbox": [ 0.050828382080676505, 0.9516550699869791, 0.3940299040351818, 0.9621051682366265 ], "data": [], "index_in_doc": 725, "label": "page_footer", "text": "18 CENTENE CORPORATION Quarterly Financial Information" }, { "bbox": [ 1.6156952303219465, 0.9526070633319893, 1.9523201736749387, 0.9621051682366265 ], "data": [], "index_in_doc": 726, "label": "text", "text": "Selected Financial Information CENTENE CORPORATION 19" }, { "bbox": [ 1.0466666626774408, 0.11275227864583333, 1.202434664458231, 0.13311844642716225 ], "data": [], "index_in_doc": 727, "label": "text", "text": "SELECTED FINANCIAL INFORMATION" }, { "bbox": [ 1.0480781505310457, 0.20009929001933396, 1.1066810757506127, 0.20691750266335227 ], "data": [], "index_in_doc": 728, "label": "text", "text": "Revenues" }, { "bbox": [ 1.315709033043556, 0.200418876879143, 1.3607155793632557, 0.20726737590751262 ], "data": [], "index_in_doc": 729, "label": "text", "text": "Premium" }, { "bbox": [ 1.0480781505310457, 0.2796447445647885, 1.1059163411458333, 0.2886334043560606 ], "data": [], "index_in_doc": 730, "label": "text", "text": "Expenses" }, { "bbox": [ 1.0471684075648489, 0.4060198465983073, 1.1992860681870405, 0.41590619328046086 ], "data": [], "index_in_doc": 731, "label": "text", "text": "Other Income (Expense)" }, { "bbox": [ 1.0461968315972223, 0.6301138136121962, 1.2703424590864991, 0.651511529479364 ], "data": [], "index_in_doc": 732, "label": "text", "text": "Amounts Attributable to Centene Corporation Common Shareholders" }, { "bbox": [ 1.315709033043556, 0.6314534659337516, 1.5101143830741932, 0.6523019424592605 ], "data": [], "index_in_doc": 733, "label": "text", "text": "Earnings from continuing operations, net of income tax expense" }, { "bbox": [ 1.0461958342907476, 0.7019417887986309, 1.2942546769684435, 0.7233395046657987 ], "data": [], "index_in_doc": 734, "label": "text", "text": "Net Earnings (Loss) Per Common Share Attributable to Centene Corporation" }, { "bbox": [ 1.0471673105277268, 0.8292145006584398, 1.234182120927798, 0.850703133477105 ], "data": [], "index_in_doc": 735, "label": "text", "text": "Weighted Average Number of Common Shares Outstanding" }, { "bbox": [ 1.315709033043556, 0.6594029821530737, 1.4826763876123366, 0.6802514394124349 ], "data": [], "index_in_doc": 736, "label": "text", "text": "Discontinued operations, net of income tax expense (benefit)" }, { "bbox": [ 1.3297875098932803, 0.6873827462244515, 1.3958267511106004, 0.6962413209857363 ], "data": [], "index_in_doc": 737, "label": "text", "text": "Net earnings" }, { "bbox": [ 1.6896958693959354, 0.688049412736989, 1.7134592891518587, 0.6951807195490057 ], "data": [], "index_in_doc": 738, "label": "text", "text": "$562" }, { "bbox": [ 1.8096175848268996, 0.688049412736989, 1.8327862110013275, 0.6951807195490057 ], "data": [], "index_in_doc": 739, "label": "text", "text": "$355" }, { "bbox": [ 1.9306110057955475, 0.688049412736989, 1.9513220693550857, 0.6951807195490057 ], "data": [], "index_in_doc": 740, "label": "text", "text": "$271" }, { "bbox": [ 1.315709033043556, 0.703306814636847, 1.3450554741753473, 0.7101552943990688 ], "data": [], "index_in_doc": 741, "label": "text", "text": "Basic:" }, { "bbox": [ 1.3150292689504186, 0.719215913252397, 1.431617587220435, 0.7280744880136817 ], "data": [], "index_in_doc": 742, "label": "text", "text": "Continuing operations" }, { "bbox": [ 1.6857874253216911, 0.7198825797649345, 1.7135442596635009, 0.7270138865769512 ], "data": [], "index_in_doc": 743, "label": "text", "text": "$3.50" }, { "bbox": [ 1.8047156240425857, 0.7198825797649345, 1.832742927900327, 0.7270138865769512 ], "data": [], "index_in_doc": 744, "label": "text", "text": "$2.99" }, { "bbox": [ 1.924310422411152, 0.7198825797649345, 1.9519731110217524, 0.7270138865769512 ], "data": [], "index_in_doc": 745, "label": "text", "text": "$2.30" }, { "bbox": [ 1.315709033043556, 0.7351148971403488, 1.4439966538373161, 0.7439027651391849 ], "data": [], "index_in_doc": 746, "label": "text", "text": "Discontinued operations" }, { "bbox": [ 1.315709033043556, 0.7510239957558988, 1.4927405064402064, 0.759892665978634 ], "data": [], "index_in_doc": 747, "label": "text", "text": "Basic earnings per common share" }, { "bbox": [ 1.6870161068984886, 0.7517007577298868, 1.7134658713745916, 0.7588320645419034 ], "data": [], "index_in_doc": 748, "label": "text", "text": "$3.52" }, { "bbox": [ 1.8049900827844159, 0.7517007577298868, 1.8326214559717116, 0.7588320645419034 ], "data": [], "index_in_doc": 749, "label": "text", "text": "$2.98" }, { "bbox": [ 1.9253169041053921, 0.7517007577298868, 1.951864604077308, 0.7588320645419034 ], "data": [], "index_in_doc": 750, "label": "text", "text": "$2.33" }, { "bbox": [ 1.315709033043556, 0.7669330943714489, 1.3557744244344874, 0.7737916695951211 ], "data": [], "index_in_doc": 751, "label": "text", "text": "Diluted:" }, { "bbox": [ 1.3150292689504186, 0.7828522691823016, 1.431617587220435, 0.7917108439435863 ], "data": [], "index_in_doc": 752, "label": "text", "text": "Continuing operations" }, { "bbox": [ 1.6876697415619895, 0.783518935694839, 1.7128776600158293, 0.7906502425068557 ], "data": [], "index_in_doc": 753, "label": "text", "text": "$3.41" }, { "bbox": [ 1.805120729932598, 0.783518935694839, 1.8327507068908293, 0.7906502425068557 ], "data": [], "index_in_doc": 754, "label": "text", "text": "$2.89" }, { "bbox": [ 1.9253559985191993, 0.783518935694839, 1.9518658008450775, 0.7906502425068557 ], "data": [], "index_in_doc": 755, "label": "text", "text": "$2.23" }, { "bbox": [ 1.315709033043556, 0.7987512530702533, 1.4439966538373161, 0.8075391210690893 ], "data": [], "index_in_doc": 756, "label": "text", "text": "Discontinued operations" }, { "bbox": [ 1.3156959683287377, 0.8146603516858033, 1.5034476884829453, 0.8235290219085385 ], "data": [], "index_in_doc": 757, "label": "text", "text": "Diluted earnings per common share" }, { "bbox": [ 1.6875781888276145, 0.8153371136597912, 1.7134213915058212, 0.8224684204718079 ], "data": [], "index_in_doc": 758, "label": "text", "text": "$3.43" }, { "bbox": [ 1.8058529523463032, 0.8153371136597912, 1.832611083984375, 0.8224684204718079 ], "data": [], "index_in_doc": 759, "label": "text", "text": "$2.88" }, { "bbox": [ 1.9254738801445057, 0.8153371136597912, 1.9519902646931169, 0.8224684204718079 ], "data": [], "index_in_doc": 760, "label": "text", "text": "$2.25" }, { "bbox": [ 1.315709033043556, 0.8305795457628038, 1.3418005650339564, 0.8374280255250256 ], "data": [], "index_in_doc": 761, "label": "text", "text": "Basic" }, { "bbox": [ 1.315709033043556, 0.8464785296507557, 1.3519966275084252, 0.8533371145075018 ], "data": [], "index_in_doc": 762, "label": "text", "text": "Diluted" }, { "bbox": [ 1.6536175098294525, 0.8312462122753413, 1.7143141802619486, 0.8384280252938319 ], "data": [], "index_in_doc": 763, "label": "text", "text": "159,567,607" }, { "bbox": [ 1.7749378478604985, 0.8312462122753413, 1.8330279580907884, 0.8384280252938319 ], "data": [], "index_in_doc": 764, "label": "text", "text": "119,100,744" }, { "bbox": [ 1.8931076947380514, 0.8312462122753413, 1.9522226371017157, 0.8384280252938319 ], "data": [], "index_in_doc": 765, "label": "text", "text": "116,345,764" }, { "bbox": [ 1.652794033873315, 0.8471553012578175, 1.7143052045036764, 0.854337114276308 ], "data": [], "index_in_doc": 766, "label": "text", "text": "163,975,407" }, { "bbox": [ 1.770977144926981, 0.8471553012578175, 1.8327431273616217, 0.854337114276308 ], "data": [], "index_in_doc": 767, "label": "text", "text": "123,066,370" }, { "bbox": [ 1.8922581890829249, 0.8471553012578175, 1.9518987119587419, 0.854337114276308 ], "data": [], "index_in_doc": 768, "label": "text", "text": "120,360,212" }, { "bbox": [ 1.6922579497293708, 0.7994280150442412, 1.7134566961550246, 0.8056098282939256 ], "data": [], "index_in_doc": 769, "label": "text", "text": "0.02" }, { "bbox": [ 1.8064279992595997, 0.7987512530702533, 1.832372927198223, 0.8075290256076388 ], "data": [], "index_in_doc": 770, "label": "text", "text": "(0.01)" }, { "bbox": [ 1.9295129713669321, 0.7994280150442412, 1.9518881405101103, 0.8056098282939256 ], "data": [], "index_in_doc": 771, "label": "text", "text": "0.02" }, { "bbox": [ 1.6910815270118464, 0.7357916591143367, 1.7134566961550246, 0.7419734723640211 ], "data": [], "index_in_doc": 772, "label": "text", "text": "0.02" }, { "bbox": [ 1.8044672947303921, 0.7351148971403488, 1.8323743234272876, 0.7438926696777344 ], "data": [], "index_in_doc": 773, "label": "text", "text": "(0.01)" }, { "bbox": [ 1.9296043246400123, 0.7357916591143367, 1.9518709868387458, 0.7419734723640211 ], "data": [], "index_in_doc": 774, "label": "text", "text": "0.03" }, { "bbox": [ 1.3150293686810661, 0.2163279369623974, 1.3522711859809027, 0.22317643599076706 ], "data": [], "index_in_doc": 775, "label": "text", "text": "Service" }, { "bbox": [ 1.3297875098932803, 0.2322269786487926, 1.4896830639808007, 0.2390855731386127 ], "data": [], "index_in_doc": 776, "label": "text", "text": "Premium and service revenues" }, { "bbox": [ 1.315709033043556, 0.24806529343730271, 1.4996555303436478, 0.2549946332218671 ], "data": [], "index_in_doc": 777, "label": "text", "text": "Premium tax and health insurer fee" }, { "bbox": [ 1.3287940929138582, 0.2640451758798927, 1.407748353247549, 0.27090377036971275 ], "data": [], "index_in_doc": 778, "label": "text", "text": "Total Revenues" }, { "bbox": [ 1.315709033043556, 0.2799542359631471, 1.3867809819240196, 0.2868128304529672 ], "data": [], "index_in_doc": 779, "label": "text", "text": "Medical costs" }, { "bbox": [ 1.3150292689504186, 0.2957925507516572, 1.3973430558746935, 0.3027218905362216 ], "data": [], "index_in_doc": 780, "label": "text", "text": "Cost of services" }, { "bbox": [ 1.3150292689504186, 0.31177243319424713, 1.5503091251148897, 0.3206411034169823 ], "data": [], "index_in_doc": 781, "label": "text", "text": "Selling, general and administrative expenses" }, { "bbox": [ 1.686114342384089, 0.3124492144343829, 1.7135821573095384, 0.3196310178197996 ], "data": [], "index_in_doc": 782, "label": "text", "text": "3,676" }, { "bbox": [ 1.8060619877833946, 0.3124492144343829, 1.8326725180632149, 0.3196310178197996 ], "data": [], "index_in_doc": 783, "label": "text", "text": "1,802" }, { "bbox": [ 1.9256306567223243, 0.3124492144343829, 1.9518344854217728, 0.3196310178197996 ], "data": [], "index_in_doc": 784, "label": "text", "text": "1,298" }, { "bbox": [ 1.3140750461154513, 0.32761074798275724, 1.5376959906684027, 0.33655016350023675 ], "data": [], "index_in_doc": 785, "label": "text", "text": "Amortization of acquired intangible assets" }, { "bbox": [ 1.315709033043556, 0.3436007258867977, 1.426846373314951, 0.35237853695647886 ], "data": [], "index_in_doc": 786, "label": "text", "text": "Premium tax expense" }, { "bbox": [ 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QUARTERLY SELECTED FINANCIAL INFORMATION For the Quarter Ended, 2016 (1) (in millions, except share data) (unaudited) Significant Accounting Policies in our form 10-K. 18 CENTENE CORPORATION Quarterly Financial Information Selected Financial Information CENTENE CORPORATION 19 SELECTED FINANCIAL INFORMATION Revenues Premium Expenses Other Income (Expense) Amounts Attributable to Centene Corporation Common Shareholders Earnings from continuing operations, net of income tax expense Net Earnings (Loss) Per Common Share Attributable to Centene Corporation Weighted Average Number of Common Shares Outstanding Discontinued operations, net of income tax expense (benefit) Net earnings $562 $355 $271 Basic: Continuing operations $3.50 $2.99 $2.30 Discontinued operations Basic earnings per common share $3.52 $2.98 $2.33 Diluted: Continuing operations $3.41 $2.89 $2.23 Discontinued operations Diluted earnings per common share $3.43 $2.88 $2.25 Basic Diluted 159,567,607 119,100,744 116,345,764 163,975,407 123,066,370 120,360,212 0.02 (0.01) 0.02 0.02 (0.01) 0.03 Service Premium and service revenues Premium tax and health insurer fee Total Revenues Medical costs Cost of services Selling, general and administrative expenses 3,676 1,802 1,298 Amortization of acquired intangible assets Premium tax expense 2,563 1,151 698 Health insurer fee expense Total operating expenses 39,347 22,055 16,096 Earnings from operations 1,260 705 464 Investment and other income 114 35 28 Interest expense (217) (43) (35) Earnings from continuing operations, before income tax expense Income tax expense Earnings from continuing operations, net of income tax expense Discontinued operations, net of income tax expense (benefit) of $2, $(1), and $1 respectively Net earnings (Earnings) loss attributable to noncontrolling interests Net earnings attributable to Centene Corporation 1,157 697 457 599 339 196 558 358 261 3 561 357 264 1 $562 $355 $271 $559 $356 $268 3 (1) 3 (2) 7 (1) 3 461 215 126 147 24 16 Year Ended December 31 (in millions, except share data) 2016 2015 2014 $35,399 $19,389 $14,198 2,180 1,876 1,469 37,579 21,265 15,667 3,028 1,495 893 40,607 22,760 16,560 30,636 17,242 12,678 1,864 1,621 1,280
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"ocr_confidence": 1, "text": "(1) The Company early adopted ASU (Accounting Standards Update) " }, { "bbox": [ 0.051875818788615705, 0.823658201429579, 0.4780550190046722, 0.8331563159672901 ], "ocr": false, "ocr_confidence": 1, "text": "2016-09 during the fourth quarter of 2016. The ASU requires adjustments be " }, { "bbox": [ 0.052292487200568706, 0.8362794163251164, 0.4678884768018536, 0.8457775308628275 ], "ocr": false, "ocr_confidence": 1, "text": "reflected as of the beginning of the fiscal year of adoption and as a result, " }, { "bbox": [ 0.05180637197556839, 0.8489006312206538, 0.4706813837188521, 0.858398745758365 ], "ocr": false, "ocr_confidence": 1, "text": "prior periods have been restated accordingly. Refer to Note 2, Summary of " }, { "bbox": [ 0.052014706181544884, 0.8615218461161912, 0.32222304001353147, 0.8710199606539023 ], "ocr": false, "ocr_confidence": 1, "text": "Significant Accounting Policies in our form 10-K." }, { "bbox": [ 0.051973040586982676, 0.9526070633319893, 0.39394650428123723, 0.9621051682366265 ], "ocr": false, "ocr_confidence": 1, "text": "18 CENTENE CORPORATION Quarterly Financial Information " }, { "bbox": [ 1.6156952303219465, 0.9526070633319893, 1.9523201736749387, 0.9621051682366265 ], "ocr": false, "ocr_confidence": 1, "text": "Selected Financial Information CENTENE CORPORATION 19" } ]
[ { "bbox": [ 0.04488017512302773, 0.11177509962910354, 0.2346225314670139, 0.13333923648102114 ], "data": [], "index_in_doc": 873, "label": "section_header", "text": "QUARTERLY SELECTED FINANCIAL INFORMATION" }, { "bbox": [ 0.6430041743259803, 0.1559398150203204, 0.8738277659696692, 0.17664129083806818 ], "data": [], "index_in_doc": 874, "label": "text", "text": "For the Quarter Ended, 2016 (1) (in millions, except share data) (unaudited)" }, { "bbox": [ 0.04443395215701434, 0.17810698229857166, 0.9535399792241115, 0.8591795641966541 ], "data": [ { "html_seq": "<table><tr><td></td><td></td><th>March 31 June 30</th><th>September 30</th><th>December 31</th></tr><tr><td></td><td>Total revenues</td><td>$6,953 $10,897</td><td>$10,846</td><td>$11,911</td></tr><tr><td>Amounts Attributable</td><td></td><td></td><td></td><td></td></tr><tr><td>to Centene Corporation Common Shareholders</td><td>operations, net of income tax</td><td></td><td></td><td></td></tr><tr><td></td><td>expense Discontinued operations,</td><td>(15) $171</td><td>$148</td><td>$255</td></tr><tr><td></td><td>net of income tax expense (benefit)</td><td>(1) (1)</td><td>(1)</td><td>6</td></tr><tr><td></td><td>Net earnings (loss)</td><td>$(16) $170</td><td>$147</td><td>$261</td></tr><tr><td>Net Earnings (Loss) Per Common Share</td><td>Basic:</td><td></td><td></td><td></td></tr><tr><td>Attributable to Centene Corporation</td><td>Continuing operations</td><td>$(0.12) $1.00</td><td>$0.87</td><td>$1.49</td></tr><tr><td></td><td>Discontinued operations</td><td>(0.01) -</td><td>(0.01)</td><td>0.04</td></tr><tr><td></td><td>Basic earnings per common share</td><td>$(0.13) $1.00</td><td>$0.86</td><td>$1.53</td></tr><tr><td></td><td>Diluted:</td><td></td><td></td><td></td></tr><tr><td></td><td>Continuing operations</td><td>$(0.12) $0.98</td><td>$0.84</td><td>$1.45</td></tr><tr><td></td><td>Discontinued operations</td><td>(0.01) (0.01)</td><td>-</td><td>0.04</td></tr><tr><td></td><td>Diluted earnings per common share</td><td>$(0.13) $0.97</td><td>$0.84</td><td>$1.49</td></tr><tr><td>Weighted Average Number of</td><td>Basic</td><td>125,543,076 170,558,778</td><td>170,774,587</td><td>171,143,624</td></tr><tr><td>Common Shares Outstanding</td><td>Diluted</td><td>125,543,076 174,848,996</td><td>175,495,339</td><td>175,511,179</td></tr><tr><td></td><td></td><td></td><td>For the Quarter Ended, 2015</td><td></td></tr><tr><td></td><td></td><td>(in millions, except share data) (unaudited) March 31 June 30</td><td>September 30</td><td>December 31</td></tr><tr><td>Amounts Attributable</td><td>Total revenues Earnings from continuing</td><td>$5,131 $5,506</td><td>$5,821</td><td>$6,302</td></tr><tr><td>to Centene Corporation Common Shareholders</td><td>operations, net of income tax expense</td><td>$64 $88</td><td>$92</td><td>$112</td></tr><tr><td></td><td>Discontinued operations,</td><td></td><td></td><td></td></tr><tr><td></td><td>net of income tax expense (benefit)</td><td>(1) -</td><td>1</td><td>(1)</td></tr><tr><td>Net Earnings (Loss) Per Common Share Attributable to Centene Corporation</td><td>Net earnings Basic: Continuing operations</td><td>$63 $88 $0.54 $0.74</td><td>$93 $0.77</td><td>$111 $0.94</td></tr><tr><td></td><td>Discontinued operations</td><td>(0.01) -</td><td>0.01</td><td>(0.01)</td></tr><tr><td></td><td>Basic earnings per common share</td><td>$0.74</td><td>$0.78</td><td>$0.93</td></tr><tr><td></td><td></td><td>$0.53</td><td></td><td></td></tr><tr><td></td><td>Continuing operations</td><td>$0.52 $0.72</td><td>$0.75</td><td>$0.91</td></tr><tr><td></td><td>Discontinued operations</td><td>(0.01) -</td><td>0.01</td><td>(0.01)</td></tr><tr><td></td><td>Diluted earnings per</td><td></td><td></td><td></td></tr><tr><td></td><td>common share</td><td>$0.51 $0.72</td><td>$0.76</td><td>$0.90</td></tr><tr><td>(1) The Company early adopted ASU (Accounting Standards Update)</td><td></td><td></td><td></td><td></td></tr><tr><td>2016-09 during the fourth quarter of 2016. The ASU requires adjustments be reflected as of the beginning of the fiscal year of adoption and as a result,</td><td></td><td></td><td></td><td></td></tr><tr><td>prior periods have been restated accordingly. Refer to Note 2, Summary of</td><td></td><td></td><td></td><td></td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 875, "label": "table", "text": "" }, { "bbox": [ 0.052014706181544884, 0.8615218461161912, 0.32222304001353147, 0.8710199606539023 ], "data": [], "index_in_doc": 876, "label": "text", "text": "Significant Accounting Policies in our form 10-K." }, { "bbox": [ 0.051973040586982676, 0.9526070633319893, 0.39394650428123723, 0.9621051682366265 ], "data": [], "index_in_doc": 877, "label": "text", "text": "18 CENTENE CORPORATION Quarterly Financial Information" }, { "bbox": [ 1.6156952303219465, 0.9526070633319893, 1.9523201736749387, 0.9621051682366265 ], "data": [], "index_in_doc": 878, "label": "text", "text": "Selected Financial Information CENTENE CORPORATION 19" }, { "bbox": [ 1.0466666626774408, 0.11275227864583333, 1.202434664458231, 0.13311844642716225 ], "data": [], "index_in_doc": 879, "label": "text", "text": "SELECTED FINANCIAL INFORMATION" }, { "bbox": [ 1.0480781505310457, 0.20009929001933396, 1.1066810757506127, 0.20691750266335227 ], "data": [], "index_in_doc": 880, "label": "text", "text": "Revenues" }, { "bbox": [ 1.315709033043556, 0.200418876879143, 1.3607155793632557, 0.20726737590751262 ], "data": [], "index_in_doc": 881, "label": "text", "text": "Premium" }, { "bbox": [ 1.0480781505310457, 0.2796447445647885, 1.1059163411458333, 0.2886334043560606 ], "data": [], "index_in_doc": 882, "label": "text", "text": "Expenses" }, { "bbox": [ 1.0471684075648489, 0.4060198465983073, 1.1992860681870405, 0.41590619328046086 ], "data": [], "index_in_doc": 883, "label": "text", "text": "Other Income (Expense)" }, { "bbox": [ 1.0461968315972223, 0.6301138136121962, 1.2703424590864991, 0.651511529479364 ], "data": [], "index_in_doc": 884, "label": "text", "text": "Amounts Attributable to Centene Corporation Common Shareholders" }, { "bbox": [ 1.315709033043556, 0.6314534659337516, 1.5101143830741932, 0.6523019424592605 ], "data": [], 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1.7134592891518587, 0.6951807195490057 ], "data": [], "index_in_doc": 890, "label": "text", "text": "$562" }, { "bbox": [ 1.8096175848268996, 0.688049412736989, 1.8327862110013275, 0.6951807195490057 ], "data": [], "index_in_doc": 891, "label": "text", "text": "$355" }, { "bbox": [ 1.9306110057955475, 0.688049412736989, 1.9513220693550857, 0.6951807195490057 ], "data": [], "index_in_doc": 892, "label": "text", "text": "$271" }, { "bbox": [ 1.315709033043556, 0.703306814636847, 1.3450554741753473, 0.7101552943990688 ], "data": [], "index_in_doc": 893, "label": "text", "text": "Basic:" }, { "bbox": [ 1.3150292689504186, 0.719215913252397, 1.431617587220435, 0.7280744880136817 ], "data": [], "index_in_doc": 894, "label": "text", "text": "Continuing operations" }, { "bbox": [ 1.6857874253216911, 0.7198825797649345, 1.7135442596635009, 0.7270138865769512 ], "data": [], "index_in_doc": 895, "label": "text", "text": "$3.50" }, { "bbox": [ 1.8047156240425857, 0.7198825797649345, 1.832742927900327, 0.7270138865769512 ], "data": [], "index_in_doc": 896, "label": "text", "text": "$2.99" }, { "bbox": [ 1.924310422411152, 0.7198825797649345, 1.9519731110217524, 0.7270138865769512 ], "data": [], "index_in_doc": 897, "label": "text", "text": "$2.30" }, { "bbox": [ 1.315709033043556, 0.7351148971403488, 1.4439966538373161, 0.7439027651391849 ], "data": [], "index_in_doc": 898, "label": "text", "text": "Discontinued operations" }, { "bbox": [ 1.315709033043556, 0.7510239957558988, 1.4927405064402064, 0.759892665978634 ], "data": [], "index_in_doc": 899, "label": "text", "text": "Basic earnings per common share" }, { "bbox": [ 1.6870161068984886, 0.7517007577298868, 1.7134658713745916, 0.7588320645419034 ], "data": [], "index_in_doc": 900, "label": "text", "text": "$3.52" }, { "bbox": [ 1.8049900827844159, 0.7517007577298868, 1.8326214559717116, 0.7588320645419034 ], "data": [], "index_in_doc": 901, "label": "text", "text": "$2.98" }, { "bbox": [ 1.9253169041053921, 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CORPORATE INFORMATION The graph to the right compares the cumulative total stockholder return on our common stock from December 31, 2011 to December 31, 2016, with the cumulative total return of the New York Stock Exchange Composite Index and the Standard & Poor's Supercomposite Managed Healthcare Index over the same period. The graph assumes an investment of $100 on December 31, 2011, in our common stock (at the last reported sale price on such day), the New York Stock Exchange Composite Index and the Standard & Poor's Supercomposite Managed Healthcare Index and assumes the reinvestment of any dividends. CENTENE CORPORATION BOARD OF DIRECTORS Bottom row, from left to right: Orlando Ayala, Vicki B. Escarra, Michael F. Neidorff, David L. Steward. Top row, from left to right: Richard A. Gephardt, Robert K. Ditmore, Tommy G. Thompson, Frederick H. Eppinger, John R. Roberts NON-GAAP FINANCIAL RECONCILIATIONS* - * The Health Net acquisition related expenses per diluted share are net of the income tax benefit of $0.45 and $0.08 for the years ended December 31, 2016 and 2015, 5, respectively. The amortization of acquired intangible assets per diluted share are net of the income tax benefit of $0.33 and $0.08 for the years ended December 31, 2016 and 2015, respectively. The impact associated with the retroactive contract amendment received in the fourth quarter of 2016 that changed the minimum MLR calculation per diluted share is net of the income tax expense of $(0.43) for the year ended December 31, 2016. The charitable contribution per diluted share is net of the income tax benefit of $0.11 for the year ended December 31, 2016. The debt extinguishment cost per diluted share is net of the income tax benefit of $0.03 for the year ended December 31, 2016 . 20 CENTENE CORPORATION Corporate Information Stock Performance Graph (in dollars) BOARD OF DIRECTORS MICHAEL F. NEIDORFF Chairman, President & CEO; Centene Corporation ORLANDO AYALA Retired Vice President, Chairman, Emerging Markets & Chief Advisor to Chief Operating Officer; Microsoft Corporation ROBERT K. DITMORE Retired President & COO; UnitedHealthcare Corporation Centene Corporation S&P Supercomposite Managed Healthcare Index New York Stock Exchange Composite Index FREDERICK H. EPPINGER Retired President & CEO; The Hanover Insurance Group, Inc. VICKI B. ESCARRA CEO of Opportunity International RICHARD A. GEPHARDT CEO of Gephardt & Associates; Former Majority Leader of the U.S. House of Representatives JOHN R. ROBERTS Retired Regional Managing Partner; Arthur Andersen LLP DAVID L. STEWARD Chairman of the Board; World Wide Technology, Inc. TOMMY G. THOMPSON Former Health and Human Services Secretary; Former Governor of Wisconsin
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[ { "bbox": [ 0.051754742666007644, 0.11191612783104482, 0.23879256902956494, 0.12108419399068814 ], "data": [], "index_in_doc": 1025, "label": "section_header", "text": "CORPORATE INFORMATION" }, { "bbox": [ 0.05128444721496183, 0.17433181916824494, 0.3983171749738307, 0.3761113870023477 ], "data": [], "index_in_doc": 1026, "label": "text", "text": "The graph to the right compares the cumulative total stockholder return on our common stock from December 31, 2011 to December 31, 2016, with the cumulative total return of the New York Stock Exchange Composite Index and the Standard & Poor's Supercomposite Managed Healthcare Index over the same period. The graph assumes an investment of $100 on December 31, 2011, in our common stock (at the last reported sale price on such day), the New York Stock Exchange Composite Index and the Standard & Poor's Supercomposite Managed Healthcare Index and assumes the reinvestment of any dividends." }, { "bbox": [ 0.05212208492303985, 0.4149608419399069, 0.3945588753893485, 0.5935910928128946 ], "data": [], "index_in_doc": 1027, "label": "picture", "text": "" }, { "bbox": [ 0.05159097870970084, 0.6031355809683752, 0.3365384020836525, 0.612125859116063 ], "data": [], "index_in_doc": 1028, "label": "section_header", "text": "CENTENE CORPORATION BOARD OF DIRECTORS" }, { "bbox": [ 0.05135452669430402, 0.618266943729285, 0.37618494968788296, 0.6612668278241398 ], "data": [], "index_in_doc": 1029, "label": "text", "text": "Bottom row, from left to right: Orlando Ayala, Vicki B. Escarra, Michael F. Neidorff, David L. Steward. Top row, from left to right: Richard A. Gephardt, Robert K. Ditmore, Tommy G. Thompson, Frederick H. Eppinger, John R. Roberts" }, { "bbox": [ 0.05321225309683607, 0.6913916847922585, 0.18323095483717575, 0.7091258848556364 ], "data": [], "index_in_doc": 1030, "label": "section_header", "text": "NON-GAAP FINANCIAL RECONCILIATIONS*" }, { "bbox": [ 0.053384544023501325, 0.7191587505918561, 0.3948716805651297, 0.8488197711983112 ], "data": [ { "html_seq": "<table><tr><td></td><th colspan=\"2\">Year ended December 31</th></tr><tr><td>Adjusted Diluted EPS</td><th>2016</th><th>2015</th></tr><tr><td>GAAP diluted earnings per share (EPS)</td><td>$3.41</td><td>$2.89</td></tr><tr><td>Health Net acquisition related expenses</td><td>0.98</td><td>0.14</td></tr><tr><td>Amortization of acquired intangible assets</td><td>0.57</td><td>0.11</td></tr><tr><td>California minimum MLR change</td><td>(0.76)</td><td>-</td></tr><tr><td>Charitable contribution</td><td>0.19</td><td>-</td></tr><tr><td>Debt extinguishment</td><td>0.04</td><td>-</td></tr><tr><td>Adjusted Diluted EPS</td><td>$4.43</td><td>$3.14</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 1031, "label": "table", "text": "" }, { "bbox": [ 0.4159341450610192, 0.731403466426965, 0.9546804989085478, 0.8645889590484928 ], "data": [ { "html_seq": "<table><tr><td>Adjusted Net Earnings</td><th>2016</th><th>2015</th><th>2014</th><th>2013</th><th>2012</th></tr><tr><td>GAAP net earnings from continuing operations</td><td>$559</td><td>$356</td><td>$268</td><td>$161</td><td>$89</td></tr><tr><td>Health Net acquisition related expenses</td><td>234</td><td>27</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Amortization of acquired intangible assets</td><td>147</td><td>24</td><td>16</td><td>6</td><td>5</td></tr><tr><td>California minimum MLR change</td><td>(195)</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Charitable contribution</td><td>50</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Debt extinguishment</td><td>11</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Income tax effects of adjustments</td><td>(79)</td><td>(20)</td><td>(6)</td><td>(2)</td><td>(2)</td></tr><tr><td>Adjusted net earnings from continuing operations</td><td>$727</td><td>$387</td><td>$278</td><td>$165</td><td>$92</td></tr></table>", "otsl_seq": "" } ], "index_in_doc": 1032, "label": "table", "text": "" }, { "bbox": [ 0.052077979044197434, 0.8852720164289378, 0.9483165865630107, 0.9358014193448153 ], "data": [], "index_in_doc": 1033, "label": "text", "text": "- * The Health Net acquisition related expenses per diluted share are net of the income tax benefit of $0.45 and $0.08 for the years ended December 31, 2016 and 2015, 5, respectively. The amortization of acquired intangible assets per diluted share are net of the income tax benefit of $0.33 and $0.08 for the years ended December 31, 2016 and 2015, respectively. The impact associated with the retroactive contract amendment received in the fourth quarter of 2016 that changed the minimum MLR calculation per diluted share is net of the income tax expense of $(0.43) for the year ended December 31, 2016. The charitable contribution per diluted share is net of the income tax benefit of $0.11 for the year ended December 31, 2016. The debt extinguishment cost per diluted share is net of the income tax benefit of $0.03 for the year ended December 31, 2016 ." }, { "bbox": [ 0.05397854599298215, 0.9518278488005051, 0.34895187577390985, 0.9622531563344628 ], "data": [], "index_in_doc": 1034, "label": "page_footer", "text": "20 CENTENE CORPORATION Corporate Information" }, { "bbox": [ 0.4151650472404131, 0.1753315781102036, 0.9533147874221303, 0.3279554578993056 ], "data": [], "index_in_doc": 1035, "label": "picture", "text": "" }, { "bbox": [ 0.41744695925245096, 0.3414950900607639, 0.5736346275977839, 0.3654251483955769 ], "data": [], "index_in_doc": 1036, "label": "text", "text": "Stock Performance Graph (in dollars)" }, { "bbox": [ 0.4159154954299428, 0.4170854356553819, 0.5722255831450419, 0.42669288558189317 ], "data": [], "index_in_doc": 1037, "label": "section_header", "text": "BOARD OF DIRECTORS" }, { "bbox": [ 0.4168329176559947, 0.4390738516142874, 0.5666943219752093, 0.4736327354354088 ], "data": [], "index_in_doc": 1038, "label": "text", "text": "MICHAEL F. NEIDORFF Chairman, President & CEO; Centene Corporation" }, { "bbox": [ 0.4171610065535003, 0.4896444455541746, 0.5220475041009243, 0.4980565466061987 ], "data": [], "index_in_doc": 1039, "label": "section_header", "text": "ORLANDO AYALA" }, { "bbox": [ 0.4169994678372651, 0.4978413437352036, 0.5670880585714103, 0.5595913896657 ], "data": [], "index_in_doc": 1040, "label": "text", "text": "Retired Vice President, Chairman, Emerging Markets & Chief Advisor to Chief Operating Officer; Microsoft Corporation" }, { "bbox": [ 0.41738046384325217, 0.5754282016946812, 0.5407294479070925, 0.5839399857954546 ], "data": [], "index_in_doc": 1041, "label": "section_header", "text": "ROBERT K. DITMORE" }, { "bbox": [ 0.4170118095048892, 0.5859730653088502, 0.5509519390031403, 0.6222229774552163 ], "data": [], "index_in_doc": 1042, "label": "text", "text": "Retired President & COO; UnitedHealthcare Corporation" }, { "bbox": [ 0.8053630754059437, 0.34336097794349746, 0.909296871010774, 0.3515901661882497 ], "data": [], "index_in_doc": 1043, "label": "text", "text": "Centene Corporation" }, { "bbox": [ 0.6653207018484477, 0.3539106580946181, 0.9102956734451593, 0.3743931934086963 ], "data": [], "index_in_doc": 1044, "label": "text", "text": "S&P Supercomposite Managed Healthcare Index New York Stock Exchange Composite Index" }, { "bbox": [ 0.5925743751276552, 0.4392998049957584, 0.7466976689357384, 0.44776735402116874 ], "data": [], "index_in_doc": 1045, "label": "section_header", "text": "FREDERICK H. EPPINGER" }, { "bbox": [ 0.5923879286822151, 0.44976205536813446, 0.7391877018548305, 0.486387965655086 ], "data": [], "index_in_doc": 1046, "label": "text", "text": "Retired President & CEO; The Hanover Insurance Group, Inc." }, { "bbox": [ 0.5921834309895834, 0.5014938200363005, 0.7067055297053717, 0.5101279056433475 ], "data": [], "index_in_doc": 1047, "label": "section_header", "text": "VICKI B. ESCARRA" }, { "bbox": [ 0.5923505795547386, 0.5125322438249684, 0.7087710012797437, 0.5346125207766138 ], "data": [], "index_in_doc": 1048, "label": "text", "text": "CEO of Opportunity International" }, { "bbox": [ 0.5927591261520885, 0.5518981085883247, 0.7392604553621579, 0.5603610337382615 ], "data": [], "index_in_doc": 1049, "label": "section_header", "text": "RICHARD A. GEPHARDT" }, { "bbox": [ 0.592229007895476, 0.5650361956972064, 0.755785225263608, 0.6124080311168324 ], "data": [], "index_in_doc": 1050, "label": "text", "text": "CEO of Gephardt & Associates; Former Majority Leader of the U.S. House of Representatives" }, { "bbox": [ 0.7791976928710938, 0.4394088128600458, 0.9042075163398693, 0.48366084243312024 ], "data": [], "index_in_doc": 1051, "label": "text", "text": "JOHN R. ROBERTS Retired Regional Managing Partner; Arthur Andersen LLP" }, { "bbox": [ 0.7799483155892566, 0.5013693607214725, 0.8992848115808824, 0.510271900832051 ], "data": [], "index_in_doc": 1052, "label": "section_header", "text": "DAVID L. STEWARD" }, { "bbox": [ 0.7810441559436274, 0.5135799754749645, 0.8932353499668096, 0.5476368220165523 ], "data": [], "index_in_doc": 1053, "label": "text", "text": "Chairman of the Board; World Wide Technology, Inc." }, { "bbox": [ 0.7789946412728503, 0.5635086984345408, 0.9181981304891749, 0.5725062591860993 ], "data": [], "index_in_doc": 1054, "label": "section_header", "text": "TOMMY G. THOMPSON" }, { "bbox": [ 0.7795907812180862, 0.5751194809422349, 0.9394718743617239, 0.6102867126464844 ], "data": [], "index_in_doc": 1055, "label": "text", "text": "Former Health and Human Services Secretary; Former Governor of Wisconsin" } ]
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OTHER INFORMATION Included in this 2016 Annual Review are financial and operating highlights and summary financial statements. For complete financial statements, including notes, please refer to Centene's Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the Securities and Exchange Commission (the "2016 Form 10-K"), which also includes Management's Discussion and Analysis of Financial Condition and Results of Operations. This 2016 Annual Review, together with our 2016 Form 10-K, constitute our annual report to security holders for purposes of Rule 14A-3(b) of the Securities Exchange Act of 1934, as amended. Our 2016 Form 10-K may be obtained by accessing the investor section of our company's website at www.centene.com, or by going to the SEC's website at www.sec.gov. NON-GAAP FINANCIAL PRESENTATION The Company is providing certain non-GAAP financial measures in this report as the Company believes that these figures are helpful in allowing investors to more accurately assess the ongoing nature of the Company's operations and measure the Company's performance more consistently across periods. The Company uses the presented non-GAAP financial measures internally to allow management to focus on period-to-period changes in the Company's core business operations. Therefore, the Company believes that this information is meaningful in addition to the information contained in the GAAP presentation of financial information. The presentation of this additional non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Specifically, the Company believes the presentation of non-GAAP financial information that excludes Health Net acquisition related expenses, amortization of acquired intangible assets, as well as other items, allows investors to develop a more meaningful understanding of the Company's performance over time. FORM 10-K Centene has filed an Annual Report on Form 10-K for the year ended December 31, 2016, with the Securities and Exchange Commission. Stockholders may obtain a copy of this report, without charge, by writing: Investor Relations Centene Corporation 7700 Forsyth Boulevard St. Louis, MO 63105 www.centene.com TRANSFER AGENT Broadridge Corporate Issuer Solutions, Inc. 1717 Arch Street, Suite 1300 Philadelphia, PA 19103 855-627-5087 www.broadridge.com/TransferAgent CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS All statements, other than statements of current or historical fact, contained in this 2016 Annual Review or incorporated by reference herein are forward-looking statements. We intend such forward looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this statement for purposes of complying with these safe-harbor provisions. We have attempted to identify these statements by terminology including "believe," "anticipate," "plan," "expect," "estimate," "intend," "seek," "target," "goal," "may," "will," "would," "could," "should," "can," "continue" and other similar words or expressions (and the negative thereof) in connection with, among other things, any discussion of future operating or financial performance. In particular, these statements include without limitation statements about our market opportunity, our growth strategy, competition, expected activities and future acquisitions, investments and the adequacy of our available cash resources. Readers are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, regulatory, competitive and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions. All forward-looking statements included in this 2016 Annual Review are based on information available to us on the date of this 2016 Annual Review. Except as may be otherwise required by law, we undertake no obligation to update or revise the forward-looking statements included in this 2016 Annual Review, whether as a result of new information, future events or otherwise, after the date of this filing. You should not place undue reliance on any forward looking statements, as actual results may differ materially from projections, estimates, or other forward-looking statements due to a variety of important factors, including but not limited to (i) our ability to accurately predict and effectively manage health benefits and other operating expenses and reserves; (ii) competition; (iii) membership and revenue declines or unexpected trends; (iv) changes in healthcare practices, new technologies, and advances in medicine; (v) increased health care costs; (vi) changes in economic, political or market conditions; (vii) changes in federal or state laws or regulations, including changes with respect to government health care programs as well as changes with respect to the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act and any regulations enacted thereunder that may result from changing political conditions; (viii) rate cuts or other payment reductions or delays by governmental payors and other risks and uncertainties affecting our government businesses; (ix) our ability to adequately price products on federally facilitated and state based Health Insurance Marketplaces; (x) tax matters; (xi) disasters or major epidemics; (xii) the outcome of legal and regulatory proceedings; (xiii) changes in expected contract start dates; (xiv) provider, state, federal and other contract changes and timing of regulatory approval of contracts; (xv) the expiration, suspension, or termination of our contracts with federal or state governments (including but not limited to Medicaid, Medicare, and TRICARE); (xvi) challenges to our contract awards; (xvii) cyber-attacks or other privacy or data security incidents; (xviii) the possibility that the expected synergies and value creation from acquired businesses, including, without limitation, the acquisition of Health Net, Inc., will not be realized, or will not be realized within the expected time period, including, but not limited to, as a result of conditions, terms, obligations or restrictions imposed by regulators in connection with their approval of, or consent to, the acquisition; (xix) the exertion of management's time and our resources, and other expenses incurred and business changes required in connection with complying with the undertakings in connection with certain regulatory approvals; (xx) disruption from the acquisition making it more difficult to maintain business and operational relationships; (xxi) the risk that unexpected costs will be incurred in connection with, among other things, the acquisition and/or the integration; (xxii) changes in expected closing dates, estimated purchase price and accretion for acquisitions; (xxiii) the risk that acquired businesses will not be integrated successfully; (xxiv) our ability to maintain or achieve improvement in the Centers for Medicare and Medicaid Services (CMS) Star ratings and other quality scores that impact revenue; (xxv) availability of debt and equity financing, on terms that are favorable to us; (xxvi) inflation; and (xxvii) foreign currency fluctuations. This list of important factors is not intended to be exhaustive. We discuss certain of these matters more fully, as well as certain other risk factors that may affect our business operations, financial condition and results of operations, in our filings with the Securities and Exchange Commission, including our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Item 1A. "Risk Factors" of Part I of our Annual Report on Form 10-K filed with the SEC on February 21, 2017 contains a further discussion of these and other important factors that could cause actual results to differ from expectations. Due to these important factors and risks, we cannot give assurances with respect to our future performance, including without limitation our ability to maintain adequate premium levels or our ability to control our future medical costs. ANNUAL MEETING The Annual Meeting of Stockholders will be held on Tuesday, April 25, 2017, at 9 a.m. at Centene Corporation, 7700 Forsyth Boulevard, St. Louis, MO 63105 in the Auditorium, 314-725-4477 . CASH DIVIDEND POLICY Centene has not paid any dividends on its common stock and expects that its earnings will continue to be retained for use in the operation and expansion of its business. COMMON STOCK INFORMATION Centene common stock is traded and quoted on the New York Stock Exchange under the symbol "CNC." All share, per share and stock price information presented in this Annual Review has been adjusted for Centene's February 2015 two-for-one stock split. Stock Price First Quarter Second Quarter Third Quarter Fourth Quarter 2017 * 2016 2015 High Low High Low High $ 71.89 $ 56.00 $ 68.42 $ 47.36 $ 71.66 $ 51.73 $71.53 $ 55.60 $82.18 $ 61.85 $ 75.57 $ 63.37 $ 83.00 $ 50.93 $ 67.41 $ 50.00 $67.53 $51.75 * Stock price through February 17, 2017 Low
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You should not place undue reliance on any forward looking statements, as actual results " }, { "bbox": [ 1.0478479721966911, 0.86026448914499, 1.4767559774560866, 0.8680864584566367 ], "ocr": false, "ocr_confidence": 1, "text": "may differ materially from projections, estimates, or other forward-looking statements due to " }, { "bbox": [ 1.0474476533777572, 0.8703667708117553, 1.483717076918658, 0.878188740123402 ], "ocr": false, "ocr_confidence": 1, "text": "a variety of important factors, including but not limited to (i) our ability to accurately predict " }, { "bbox": [ 1.0474476533777572, 0.8804690332123728, 1.4608353758169934, 0.8882910025240195 ], "ocr": false, "ocr_confidence": 1, "text": "and effectively manage health benefits and other operating expenses and reserves; (ii) " }, { "bbox": [ 1.0475048987694036, 0.8905801291417594, 1.4761532054227942, 0.898393264924637 ], "ocr": false, "ocr_confidence": 1, "text": "competition; (iii) membership and revenue declines or unexpected trends; (iv) changes in " }, { "bbox": [ 1.0478479721966911, 0.9006824108085247, 1.4799745846417993, 0.9084955465914023 ], "ocr": false, "ocr_confidence": 1, "text": "healthcare practices, new technologies, and advances in medicine; (v) increased health care " }, { "bbox": [ 1.0475048987694036, 0.9107758782126687, 1.4790229548036662, 0.9185978475243154 ], "ocr": false, "ocr_confidence": 1, "text": "costs; (vi) changes in economic, political or market conditions; (vii) changes in federal or state " }, { "bbox": [ 1.0477679882174225, 0.9208869934082031, 1.4656496733621833, 0.9287001291910807 ], "ocr": false, "ocr_confidence": 1, "text": "laws or regulations, including changes with respect to government health care programs as " }, { "bbox": [ 1.0471731946359273, 0.9309804608123471, 1.4520809198516647, 0.9388024301239939 ], "ocr": false, "ocr_confidence": 1, "text": "well as changes with respect to the Patient Protection and Affordable Care Act and the " }, { "bbox": [ 1.0479853012982536, 0.9410827424791124, 1.4564491222107332, 0.9489047117907592 ], "ocr": false, "ocr_confidence": 1, "text": "Health Care and Education Affordability Reconciliation Act and any regulations enacted " }, { "bbox": [ 1.0471731946359273, 0.9511850241458777, 1.448809654884089, 0.9590069934575245 ], "ocr": false, "ocr_confidence": 1, "text": "thereunder that may result from changing political conditions; (viii) rate cuts or other " }, { "bbox": [ 1.5107859692542382, 0.6178630482066761, 1.9226022358813317, 0.6256761647234059 ], "ocr": false, "ocr_confidence": 1, "text": "payment reductions or delays by governmental payors and other risks and uncertainties " }, { "bbox": [ 1.5103856504353044, 0.6279564674454506, 1.9070683896931169, 0.6357784463901712 ], "ocr": false, "ocr_confidence": 1, "text": "affecting our government businesses; (ix) our ability to adequately price products on " }, { "bbox": [ 1.510145499036203, 0.6380587491122159, 1.9249676473779616, 0.6458542178375553 ], "ocr": false, "ocr_confidence": 1, "text": "federally facilitated and state based Health Insurance Marketplaces; (x) tax matters; (xi) " }, { "bbox": [ 1.5104428958269507, 0.6481610307789812, 1.9271649130029616, 0.6559830097237018 ], "ocr": false, "ocr_confidence": 1, "text": "disasters or major epidemics; (xii) the outcome of legal and regulatory proceedings; (xiii) " }, { "bbox": [ 1.5104428958269507, 0.658263273913451, 1.929818546070772, 0.6660852528581716 ], "ocr": false, "ocr_confidence": 1, "text": "changes in expected contract start dates; (xiv) provider, state, federal and other contract " }, { "bbox": [ 1.5104428958269507, 0.6683655555802163, 1.934005837035335, 0.6761875345249369 ], "ocr": false, "ocr_confidence": 1, "text": "changes and timing of regulatory approval of contracts; (xv) the expiration, suspension, or " }, { "bbox": [ 1.5101111916934742, 0.6784678372469816, 1.9395863651450163, 0.6862898161917022 ], "ocr": false, "ocr_confidence": 1, "text": "termination of our contracts with federal or state governments (including but not limited to " }, { "bbox": [ 1.5109232983558007, 0.6885789620755899, 1.8901173710043913, 0.6963920978584675 ], "ocr": false, "ocr_confidence": 1, "text": "Medicaid, Medicare, and TRICARE); (xvi) challenges to our contract awards; (xvii) " }, { "bbox": [ 1.5104428958269507, 0.6986812244762074, 1.9164602242264093, 0.7064678500397037 ], "ocr": false, "ocr_confidence": 1, "text": "cyber-attacks or other privacy or data security incidents; (xviii) the possibility that the " }, { "bbox": [ 1.5104428958269507, 0.7087746437149819, 1.9032367382174225, 0.7165966226597025 ], "ocr": false, "ocr_confidence": 1, "text": "expected synergies and value creation from acquired businesses, including, without " }, { "bbox": [ 1.5107059852749694, 0.7188769253817472, 1.9217535280713849, 0.7266281975640191 ], "ocr": false, "ocr_confidence": 1, "text": "limitation, the acquisition of Health Net, Inc., will not be realized, or will not be realized " }, { "bbox": [ 1.5101111916934742, 0.7289791877823647, 1.9179585774739583, 0.7368011667270853 ], "ocr": false, "ocr_confidence": 1, "text": "within the expected time period, including, but not limited to, as a result of conditions, " }, { "bbox": [ 1.5101111916934742, 0.7390814501829822, 1.944836385888991, 0.7469034291277028 ], "ocr": false, "ocr_confidence": 1, "text": "terms, obligations or restrictions imposed by regulators in connection with their approval of, " }, { "bbox": [ 1.5104428958269507, 0.7491483784685231, 1.9295668259165646, 0.7570057107944681 ], "ocr": false, "ocr_confidence": 1, "text": "or consent to, the acquisition; (xix) the exertion of management’s time and our resources, " }, { "bbox": [ 1.5103856504353044, 0.7592948566783558, 1.9317387599571079, 0.7671079924612334 ], "ocr": false, "ocr_confidence": 1, "text": "and other expenses incurred and business changes required in connection with complying " }, { "bbox": [ 1.5101111916934742, 0.7693882759171303, 1.937573401756536, 0.7772102548618509 ], "ocr": false, "ocr_confidence": 1, "text": "with the undertakings in connection with certain regulatory approvals; (xx) disruption from " }, { "bbox": [ 1.5101111916934742, 0.7794905383177478, 1.9349552727992239, 0.7873125172624684 ], "ocr": false, "ocr_confidence": 1, "text": "the acquisition making it more difficult to maintain business and operational relationships; " }, { "bbox": [ 1.5107059852749694, 0.7896016631463562, 1.9410300659977533, 0.7974147989292337 ], "ocr": false, "ocr_confidence": 1, "text": "(xxi) the risk that unexpected costs will be incurred in connection with, among other things, " }, { "bbox": [ 1.5101111916934742, 0.7997039255469737, 1.9313510071997548, 0.8075170613298512 ], "ocr": false, "ocr_confidence": 1, "text": "the acquisition and/or the integration; (xxii) changes in expected closing dates, estimated " }, { "bbox": [ 1.5107859692542382, 0.809797344785748, 1.9314311906403185, 0.8175486169680201 ], "ocr": false, "ocr_confidence": 1, "text": "purchase price and accretion for acquisitions; (xxiii) the risk that acquired businesses will " }, { "bbox": [ 1.5107859692542382, 0.8198996264525135, 1.9351154402190565, 0.827721605397234 ], "ocr": false, "ocr_confidence": 1, "text": "not be integrated successfully; (xxiv) our ability to maintain or achieve improvement in the " }, { "bbox": [ 1.5104886721941382, 0.8300018888531309, 1.9413478078405841, 0.8378238677978516 ], "ocr": false, "ocr_confidence": 1, "text": "Centers for Medicare and Medicaid Services (CMS) Star ratings and other quality scores that " }, { "bbox": [ 1.5106144325405944, 0.8401041608868223, 1.9458430670445261, 0.8479261301984691 ], "ocr": false, "ocr_confidence": 1, "text": "impact revenue; (xxv) availability of debt and equity financing, on terms that are favorable to " }, { "bbox": [ 1.5107059852749694, 0.8502064425535877, 1.937023287505106, 0.8580284118652344 ], "ocr": false, "ocr_confidence": 1, "text": "us; (xxvi) inflation; and (xxvii) foreign currency fluctuations. This list of important factors is " }, { "bbox": [ 1.5107859692542382, 0.8603087049542051, 1.9232074014501634, 0.8681041544133966 ], "ocr": false, "ocr_confidence": 1, "text": "not intended to be exhaustive. We discuss certain of these matters more fully, as well as " }, { "bbox": [ 1.5104428958269507, 0.8704109866209705, 1.9276360405815973, 0.878206436080162 ], "ocr": false, "ocr_confidence": 1, "text": "certain other risk factors that may affect our business operations, financial condition and " }, { "bbox": [ 1.5107859692542382, 0.8805132490215879, 1.9369556701261235, 0.8883352183332347 ], "ocr": false, "ocr_confidence": 1, "text": "results of operations, in our filings with the Securities and Exchange Commission, including " }, { "bbox": [ 1.5104428958269507, 0.890677394288959, 1.9232405120251226, 0.8984109801475448 ], "ocr": false, "ocr_confidence": 1, "text": "our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on " }, { "bbox": [ 1.5109232983558007, 0.9006824589738942, 1.935079936108558, 0.9084690749043166 ], "ocr": false, "ocr_confidence": 1, "text": "Form 8-K. Item 1A. “Risk Factors” of Part I of our Annual Report on Form 10-K filed with the " }, { "bbox": [ 1.510294197431577, 0.9108201132880317, 1.937549466401144, 0.9186155627472232 ], "ocr": false, "ocr_confidence": 1, "text": "SEC on February 21, 2017 contains a further discussion of these and other important factors " }, { "bbox": [ 1.5101111916934742, 0.920922394954797, 1.9321975209354576, 0.928673657503995 ], "ocr": false, "ocr_confidence": 1, "text": "that could cause actual results to differ from expectations. Due to these important factors " }, { "bbox": [ 1.5103856504353044, 0.9310246958877101, 1.9187237110013275, 0.9388466651993569 ], "ocr": false, "ocr_confidence": 1, "text": "and risks, we cannot give assurances with respect to our future performance, including " }, { "bbox": [ 1.5101111916934742, 0.9411358110832445, 1.9345310186248978, 0.9489224318302039 ], "ocr": false, "ocr_confidence": 1, "text": "without limitation our ability to maintain adequate premium levels or our ability to control " }, { "bbox": [ 1.5104428958269507, 0.9512292592212407, 1.6270054835899204, 0.957292388183902 ], "ocr": false, "ocr_confidence": 1, "text": "our future medical costs." }, { "bbox": [ 1.6650980033126532, 0.5241010261304451, 1.8646365894990808, 0.5329696963531803 ], "ocr": false, "ocr_confidence": 1, "text": "* Stock price through February 17, 2017" }, { "bbox": [ 1.0477286943423203, 0.11276491723879419, 1.1952434863919525, 0.12049218380089963 ], "ocr": false, "ocr_confidence": 1, "text": "OTHER INFORMATION" }, { "bbox": [ 1.048378240049275, 0.12686087868430398, 1.2960148231655944, 0.1350054500078914 ], "ocr": false, "ocr_confidence": 1, "text": "Included in this 2016 Annual Review are " }, { "bbox": [ 1.0472916746451184, 0.13940761065242266, 1.2837811638327206, 0.15002310396444918 ], "ocr": false, "ocr_confidence": 1, "text": "financial and operating highlights and " }, { "bbox": [ 1.0475244459763071, 0.15203834302497632, 1.32684326171875, 0.16261784717290087 ], "ocr": false, "ocr_confidence": 1, "text": "summary financial statements. For complete " }, { "bbox": [ 1.0472916746451184, 0.16466899833293877, 1.3217639798432395, 0.1752844916449653 ], "ocr": false, "ocr_confidence": 1, "text": "financial statements, including notes, please " }, { "bbox": [ 1.0482230591618158, 0.17727560948843907, 1.300654492347069, 0.18781920153685291 ], "ocr": false, "ocr_confidence": 1, "text": "refer to Centene’s Annual Report on Form " }, { "bbox": [ 1.0472916746451184, 0.18993038601345485, 1.3116912841796875, 0.2005098901613794 ], "ocr": false, "ocr_confidence": 1, "text": "10-K for the fiscal year ended December 31, " }, { "bbox": [ 1.0474468555325775, 0.2025610413214173, 1.3143472110523897, 0.21317653463344383 ], "ocr": false, "ocr_confidence": 1, "text": "2016, filed with the Securities and Exchange " }, { "bbox": [ 1.0477573170381433, 0.2151676524769176, 1.3092246460758783, 0.22569922244910037 ], "ocr": false, "ocr_confidence": 1, "text": "Commission (the “2016 Form 10-K”), which " }, { "bbox": [ 1.0476797265944138, 0.22779838484947126, 1.3147368586920445, 0.2384379223139599 ], "ocr": false, "ocr_confidence": 1, "text": "also includes Management’s Discussion and " }, { "bbox": [ 1.0472139844707413, 0.24045308430989584, 1.3092402040568831, 0.2510325884578204 ], "ocr": false, "ocr_confidence": 1, "text": "Analysis of Financial Condition and Results " }, { "bbox": [ 1.0477573170381433, 0.2530837396178583, 1.2902992597592422, 0.26360328751380996 ], "ocr": false, "ocr_confidence": 1, "text": "of Operations. This 2016 Annual Review, " }, { "bbox": [ 1.0472139844707413, 0.26579831826566447, 1.3222483715979882, 0.2763298882378472 ], "ocr": false, "ocr_confidence": 1, "text": "together with our 2016 Form 10-K, constitute " }, { "bbox": [ 1.0477573170381433, 0.27834512729837435, 1.2940727682674633, 0.28892463144629893 ], "ocr": false, "ocr_confidence": 1, "text": "our annual report to security holders for " }, { "bbox": [ 1.0482230591618158, 0.29097578260633683, 1.3068806766684538, 0.3014953305022885 ], "ocr": false, "ocr_confidence": 1, "text": "purposes of Rule 14A-3(b) of the Securities " }, { "bbox": [ 1.048378240049275, 0.30360643791429925, 1.3207736545138888, 0.31422193122632575 ], "ocr": false, "ocr_confidence": 1, "text": "Exchange Act of 1934, as amended. Our 2016 " }, { "bbox": [ 1.048378240049275, 0.31632109362669664, 1.3208512449576184, 0.32685266359887943 ], "ocr": false, "ocr_confidence": 1, "text": "Form 10-K may be obtained by accessing the " }, { "bbox": [ 1.0479746301189747, 0.3288437814423532, 1.3208187327665442, 0.3394473297427399 ], "ocr": false, "ocr_confidence": 1, "text": "investor section of our company’s website at " }, { "bbox": [ 1.0472139844707413, 0.34147443675031564, 1.3129190681806577, 0.3521139742148043 ], "ocr": false, "ocr_confidence": 1, "text": "www.centene.com, or by going to the SEC’s " }, { "bbox": [ 1.0472139844707413, 0.3542130980828796, 1.1972115709890727, 0.36474466805506234 ], "ocr": false, "ocr_confidence": 1, "text": "website at www.sec.gov." }, { "bbox": [ 1.04831700543173, 0.3779037937973485, 1.3130032408471202, 0.38564366042011916 ], "ocr": false, "ocr_confidence": 1, "text": "NON-GAAP FINANCIAL PRESENTATION" }, { "bbox": [ 1.0472139844707413, 0.3920123553035235, 1.3244527180989583, 0.40254392527570626 ], "ocr": false, "ocr_confidence": 1, "text": "The Company is providing certain non-GAAP " }, { "bbox": [ 1.0472916746451184, 0.4045590872716422, 1.284884783177594, 0.41507867369988954 ], "ocr": false, "ocr_confidence": 1, "text": "financial measures in this report as the " }, { "bbox": [ 1.0477573170381433, 0.4171897425796046, 1.2919166913998672, 0.42780527442392674 ], "ocr": false, "ocr_confidence": 1, "text": "Company believes that these figures are " }, { "bbox": [ 1.0482230591618158, 0.4298204364198627, 1.2699518141403696, 0.4404359682641848 ], "ocr": false, "ocr_confidence": 1, "text": "helpful in allowing investors to more " }, { "bbox": [ 1.0476797265944138, 0.44245113026012073, 1.2909216787300857, 0.45306666210444285 ], "ocr": false, "ocr_confidence": 1, "text": "accurately assess the ongoing nature of " }, { "bbox": [ 1.0472139844707413, 0.45505781848021226, 1.2903163136999591, 0.46566132824830336 ], "ocr": false, "ocr_confidence": 1, "text": "the Company’s operations and measure " }, { "bbox": [ 1.0472139844707413, 0.4676885123204703, 1.2558865017361112, 0.4782920220885614 ], "ocr": false, "ocr_confidence": 1, "text": "the Company’s performance more " }, { "bbox": [ 1.0477573170381433, 0.48042713512073865, 1.3060393489264195, 0.4909227159288194 ], "ocr": false, "ocr_confidence": 1, "text": "consistently across periods. The Company " }, { "bbox": [ 1.0481453689874387, 0.4929738285565617, 1.2860490387561274, 0.503493414984809 ], "ocr": false, "ocr_confidence": 1, "text": "uses the presented non-GAAP financial " }, { "bbox": [ 1.0482230591618158, 0.5056884842689591, 1.3047074461294934, 0.5162200542411419 ], "ocr": false, "ocr_confidence": 1, "text": "measures internally to allow management " }, { "bbox": [ 1.0472139844707413, 0.5182352162370778, 1.2912026199640012, 0.5288507480814 ], "ocr": false, "ocr_confidence": 1, "text": "to focus on period-to-period changes in " }, { "bbox": [ 1.0472139844707413, 0.5308419044571694, 1.2986831166385826, 0.5414454142252604 ], "ocr": false, "ocr_confidence": 1, "text": "the Company’s core business operations. " }, { "bbox": [ 1.0472139844707413, 0.5434965268530026, 1.303279402988409, 0.5540760695332229 ], "ocr": false, "ocr_confidence": 1, "text": "Therefore, the Company believes that this " }, { "bbox": [ 1.0479746301189747, 0.5561272206932607, 1.2932827020782272, 0.5667427525375829 ], "ocr": false, "ocr_confidence": 1, "text": "information is meaningful in addition to " }, { "bbox": [ 1.3556534511591094, 0.1268040050159801, 1.5971119201261235, 0.1350324996794113 ], "ocr": false, "ocr_confidence": 1, "text": "the information contained in the GAAP " }, { "bbox": [ 1.3566625258501839, 0.13943466032394256, 1.6156307045930351, 0.14995420821989425 ], "ocr": false, "ocr_confidence": 1, "text": "presentation of financial information. The " }, { "bbox": [ 1.3566625258501839, 0.15206539269649622, 1.613535164228452, 0.1625849405924479 ], "ocr": false, "ocr_confidence": 1, "text": "presentation of this additional non-GAAP " }, { "bbox": [ 1.3557311413334865, 0.16469604800445864, 1.6194493910845589, 0.17292454266788984 ], "ocr": false, "ocr_confidence": 1, "text": "financial information is not intended to be " }, { "bbox": [ 1.3561967837265114, 0.17741062665226484, 1.6109133452371833, 0.18555519797585227 ], "ocr": false, "ocr_confidence": 1, "text": "considered in isolation or as a substitute " }, { "bbox": [ 1.3557311413334865, 0.18995743568497475, 1.591539270737592, 0.20047698358092644 ], "ocr": false, "ocr_confidence": 1, "text": "for the financial information prepared " }, { "bbox": [ 1.3561191932827819, 0.20267201433278093, 1.6095923130808314, 0.2131076388888889 ], "ocr": false, "ocr_confidence": 1, "text": "and presented in accordance with GAAP. " }, { "bbox": [ 1.3559639126646752, 0.21521874630089963, 1.5957614674287683, 0.22579825044882418 ], "ocr": false, "ocr_confidence": 1, "text": "Specifically, the Company believes the " }, { "bbox": [ 1.3566625258501839, 0.2278494786734533, 1.5759231467652166, 0.23836902656940498 ], "ocr": false, "ocr_confidence": 1, "text": "presentation of non-GAAP financial " }, { "bbox": [ 1.3564140968073428, 0.2404801339814157, 1.5888071496502247, 0.2487086286448469 ], "ocr": false, "ocr_confidence": 1, "text": "information that excludes Health Net " }, { "bbox": [ 1.3561191932827819, 0.2531947126292219, 1.6224142835031148, 0.26363033718532985 ], "ocr": false, "ocr_confidence": 1, "text": "acquisition related expenses, amortization " }, { "bbox": [ 1.3561967837265114, 0.2657414445973406, 1.6056354996425655, 0.2763569379093671 ], "ocr": false, "ocr_confidence": 1, "text": "of acquired intangible assets, as well as " }, { "bbox": [ 1.3561967837265114, 0.2784560232451468, 1.6063667247497957, 0.28889164780125476 ], "ocr": false, "ocr_confidence": 1, "text": "other items, allows investors to develop " }, { "bbox": [ 1.3561191932827819, 0.29100283227785667, 1.6077451020284417, 0.3016183255898832 ], "ocr": false, "ocr_confidence": 1, "text": "a more meaningful understanding of the " }, { "bbox": [ 1.3561967837265114, 0.303609443433357, 1.5755832647186478, 0.3142129917337437 ], "ocr": false, "ocr_confidence": 1, "text": "Company’s performance over time." }, { "bbox": [ 1.3567632538041259, 0.32738363863241793, 1.4338220334520526, 0.33511090519452336 ], "ocr": false, "ocr_confidence": 1, "text": "FORM 10-K " }, { "bbox": [ 1.3562035654105393, 0.33950173734414457, 1.619129953820721, 0.3500212852400963 ], "ocr": false, "ocr_confidence": 1, "text": "Centene has filed an Annual Report on Form " }, { "bbox": [ 1.355815513461244, 0.352132392652107, 1.616739509931577, 0.36271193533232715 ], "ocr": false, "ocr_confidence": 1, "text": "10-K for the year ended December 31, 2016, " }, { "bbox": [ 1.3556602328431373, 0.3648470098322088, 1.6331625545726103, 0.3753785798043916 ], "ocr": false, "ocr_confidence": 1, "text": "with the Securities and Exchange Commission. " }, { "bbox": [ 1.355970694348703, 0.3773937418003275, 1.631498548719618, 0.3879732844805477 ], "ocr": false, "ocr_confidence": 1, "text": "Stockholders may obtain a copy of this report, " }, { "bbox": [ 1.3556602328431373, 0.3901083975127249, 1.515421649209814, 0.40063996748490766 ], "ocr": false, "ocr_confidence": 1, "text": "without charge, by writing:" }, { "bbox": [ 1.356700323765574, 0.4082567234231968, 1.477685666551777, 0.41655723494712754 ], "ocr": false, "ocr_confidence": 1, "text": "Investor Relations" }, { "bbox": [ 1.3562035654105393, 0.4210553795400292, 1.4860369115093954, 0.4314789820199061 ], "ocr": false, "ocr_confidence": 1, "text": "Centene Corporation " }, { "bbox": [ 1.3556602328431373, 0.4336740513040562, 1.5021015242034315, 0.444169632112137 ], "ocr": false, "ocr_confidence": 1, "text": "7700 Forsyth Boulevard" }, { "bbox": [ 1.355970694348703, 0.4463167286882497, 1.477313072852839, 0.4556368047540838 ], "ocr": false, "ocr_confidence": 1, "text": "St. Louis, MO 63105" }, { "bbox": [ 1.3562191233915442, 0.4625938492591935, 1.4743327221839257, 0.4695989050046362 ], "ocr": false, "ocr_confidence": 1, "text": "www.centene.com" }, { "bbox": [ 1.3556684107562296, 0.4851993599323311, 1.4796046836703431, 0.4929392265551018 ], "ocr": false, "ocr_confidence": 1, "text": "TRANSFER AGENT" }, { "bbox": [ 1.356700323765574, 0.4991519812381629, 1.633114484400531, 0.509839491410689 ], "ocr": false, "ocr_confidence": 1, "text": "Broadridge Corporate Issuer Solutions, Inc." }, { "bbox": [ 1.3557379230175144, 0.5131980818931503, 1.5255271562563828, 0.5225301800352155 ], "ocr": false, "ocr_confidence": 1, "text": "1717 Arch Street, Suite 1300" }, { "bbox": [ 1.3568244884216707, 0.5258287372011127, 1.494714275684232, 0.5362643617572207 ], "ocr": false, "ocr_confidence": 1, "text": "Philadelphia, PA 19103" }, { "bbox": [ 1.3562035654105393, 0.5430414989741161, 1.4386766221788194, 0.5503824022081163 ], "ocr": false, "ocr_confidence": 1, "text": "855-627-5087" }, { "bbox": [ 1.3562191233915442, 0.5573034960814197, 1.5966048895143996, 0.5679190279257418 ], "ocr": false, "ocr_confidence": 1, "text": "www.broadridge.com/TransferAgent" }, { "bbox": [ 1.6636927984898386, 0.11276491723879419, 1.7889216803257761, 0.12049218380089963 ], "ocr": false, "ocr_confidence": 1, "text": "ANNUAL MEETING" }, { "bbox": [ 1.6636846205767464, 0.12677695534446023, 1.9145655413858251, 0.13739244865648675 ], "ocr": false, "ocr_confidence": 1, "text": "The Annual Meeting of Stockholders will " }, { "bbox": [ 1.6646936952678206, 0.1394915339922664, 1.8963571186938317, 0.1499871148003472 ], "ocr": false, "ocr_confidence": 1, "text": "be held on Tuesday, April 25, 2017, at " }, { "bbox": [ 1.6639174916385826, 0.15213428844105115, 1.895053240208844, 0.16255789092092804 ], "ocr": false, "ocr_confidence": 1, "text": "9 a.m. at Centene Corporation, 7700 " }, { "bbox": [ 1.6648488761552798, 0.16475292167278252, 1.9065091002221202, 0.17524850248086332 ], "ocr": false, "ocr_confidence": 1, "text": "Forsyth Boulevard, St. Louis, MO 63105" }, { "bbox": [ 1.6644452662249796, 0.17738357698074494, 1.8617084976894405, 0.18671563659051452 ], "ocr": false, "ocr_confidence": 1, "text": "in the Auditorium, 314-725-4477" }, { "bbox": [ 1.8621756360421773, 0.1839808454417219, 1.8641004375382966, 0.18545616997612846 ], "ocr": false, "ocr_confidence": 1, "text": ". " }, { "bbox": [ 1.6641991309870303, 0.2011361170296717, 1.8282514584609886, 0.208876022184738 ], "ocr": false, "ocr_confidence": 1, "text": "CASH DIVIDEND POLICY" }, { "bbox": [ 1.6642279531441482, 0.21524471706814235, 1.9129353442223243, 0.22574029787622316 ], "ocr": false, "ocr_confidence": 1, "text": "Centene has not paid any dividends on its " }, { "bbox": [ 1.6642279531441482, 0.2278753723761048, 1.9281011843213849, 0.23840694234828758 ], "ocr": false, "ocr_confidence": 1, "text": "common stock and expects that its earnings " }, { "bbox": [ 1.6636846205767464, 0.24042218140881472, 1.9092564800985499, 0.2486506760722459 ], "ocr": false, "ocr_confidence": 1, "text": "will continue to be retained for use in the " }, { "bbox": [ 1.6642279531441482, 0.25305283671677714, 1.9038528741574754, 0.26357238461272886 ], "ocr": false, "ocr_confidence": 1, "text": "operation and expansion of its business." }, { "bbox": [ 1.6641991309870303, 0.27689369278724746, 1.8798347423279207, 0.28463359794231374 ], "ocr": false, "ocr_confidence": 1, "text": "COMMON STOCK INFORMATION" }, { "bbox": [ 1.6642279531441482, 0.2910022928257181, 1.9336739334405637, 0.30143791738182607 ], "ocr": false, "ocr_confidence": 1, "text": "Centene common stock is traded and quoted" }, { "bbox": [ 1.6642279531441482, 0.3036329481336806, 1.9194535398794934, 0.3141645181058633 ], "ocr": false, "ocr_confidence": 1, "text": "on the New York Stock Exchange under the" }, { "bbox": [ 1.6639950820823122, 0.31615571301392836, 1.9336103052874796, 0.32675926131431504 ], "ocr": false, "ocr_confidence": 1, "text": "symbol “CNC.” All share, per share and stock" }, { "bbox": [ 1.6646936952678206, 0.3288104124743529, 1.9166283700980393, 0.3393299603703046 ], "ocr": false, "ocr_confidence": 1, "text": "price information presented in this Annual" }, { "bbox": [ 1.6648488761552798, 0.3414170236298532, 1.900531045751634, 0.3520085498540088 ], "ocr": false, "ocr_confidence": 1, "text": "Review has been adjusted for Centene’s" }, { "bbox": [ 1.6648488761552798, 0.3540717230902778, 1.8910466611774919, 0.36465126577049795 ], "ocr": false, "ocr_confidence": 1, "text": "February 2015 two-for-one stock split." }, { "bbox": [ 1.6642756243936376, 0.3844069278601444, 1.695739546632455, 0.3912655223499645 ], "ocr": false, "ocr_confidence": 1, "text": "Stock " }, { "bbox": [ 1.6649945826312296, 0.39311399363508126, 1.6920794318704044, 0.40010390618834835 ], "ocr": false, "ocr_confidence": 1, "text": "Price " }, { "bbox": [ 1.7401186874489378, 0.39392205440636835, 1.7626416574116626, 0.40010390618834835 ], "ocr": false, "ocr_confidence": 1, "text": "2017" }, { "bbox": [ 1.7636220096762663, 0.3940432770083649, 1.7670599245557599, 0.39656852953361743 ], "ocr": false, "ocr_confidence": 1, "text": "* " }, { "bbox": [ 1.8222494686351103, 0.39392205440636835, 1.8457918852762458, 0.40010390618834835 ], "ocr": false, "ocr_confidence": 1, "text": "2016 " }, { "bbox": [ 1.903085945478452, 0.39392205440636835, 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[ { "bbox": [ 1.0477286943423203, 0.11276491723879419, 1.1952434863919525, 0.12049218380089963 ], "data": [], "index_in_doc": 1056, "label": "text", "text": "OTHER INFORMATION" }, { "bbox": [ 1.0472139844707413, 0.12686087868430398, 1.32684326171875, 0.36474466805506234 ], "data": [], "index_in_doc": 1057, "label": "text", "text": "Included in this 2016 Annual Review are financial and operating highlights and summary financial statements. For complete financial statements, including notes, please refer to Centene's Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the Securities and Exchange Commission (the \"2016 Form 10-K\"), which also includes Management's Discussion and Analysis of Financial Condition and Results of Operations. This 2016 Annual Review, together with our 2016 Form 10-K, constitute our annual report to security holders for purposes of Rule 14A-3(b) of the Securities Exchange Act of 1934, as amended. Our 2016 Form 10-K may be obtained by accessing the investor section of our company's website at www.centene.com, or by going to the SEC's website at www.sec.gov." }, { "bbox": [ 1.04831700543173, 0.3779037937973485, 1.3130032408471202, 0.38564366042011916 ], "data": [], "index_in_doc": 1058, "label": "text", "text": "NON-GAAP FINANCIAL PRESENTATION" }, { "bbox": [ 1.0472139844707413, 0.3920123553035235, 1.3244527180989583, 0.5667427525375829 ], "data": [], "index_in_doc": 1059, "label": "text", "text": "The Company is providing certain non-GAAP financial measures in this report as the Company believes that these figures are helpful in allowing investors to more accurately assess the ongoing nature of the Company's operations and measure the Company's performance more consistently across periods. The Company uses the presented non-GAAP financial measures internally to allow management to focus on period-to-period changes in the Company's core business operations. Therefore, the Company believes that this information is meaningful in addition to" }, { "bbox": [ 1.3556534511591094, 0.1268040050159801, 1.6224142835031148, 0.3142129917337437 ], "data": [], "index_in_doc": 1060, "label": "text", "text": "the information contained in the GAAP presentation of financial information. The presentation of this additional non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. Specifically, the Company believes the presentation of non-GAAP financial information that excludes Health Net acquisition related expenses, amortization of acquired intangible assets, as well as other items, allows investors to develop a more meaningful understanding of the Company's performance over time." }, { "bbox": [ 1.3556602328431373, 0.32738363863241793, 1.6331625545726103, 0.40063996748490766 ], "data": [], "index_in_doc": 1061, "label": "text", "text": "FORM 10-K Centene has filed an Annual Report on Form 10-K for the year ended December 31, 2016, with the Securities and Exchange Commission. Stockholders may obtain a copy of this report, without charge, by writing:" }, { "bbox": [ 1.3556602328431373, 0.4082567234231968, 1.5021015242034315, 0.4556368047540838 ], "data": [], "index_in_doc": 1062, "label": "text", "text": "Investor Relations Centene Corporation 7700 Forsyth Boulevard St. Louis, MO 63105" }, { "bbox": [ 1.3562191233915442, 0.4625938492591935, 1.4743327221839257, 0.4695989050046362 ], "data": [], "index_in_doc": 1063, "label": "text", "text": "www.centene.com" }, { "bbox": [ 1.3556684107562296, 0.4851993599323311, 1.4796046836703431, 0.4929392265551018 ], "data": [], "index_in_doc": 1064, "label": "text", "text": "TRANSFER AGENT" }, { "bbox": [ 1.3557379230175144, 0.4991519812381629, 1.633114484400531, 0.5362643617572207 ], "data": [], "index_in_doc": 1065, "label": "text", "text": "Broadridge Corporate Issuer Solutions, Inc. 1717 Arch Street, Suite 1300 Philadelphia, PA 19103" }, { "bbox": [ 1.3562035654105393, 0.5430414989741161, 1.4386766221788194, 0.5503824022081163 ], "data": [], "index_in_doc": 1066, "label": "text", "text": "855-627-5087" }, { "bbox": [ 1.3562191233915442, 0.5573034960814197, 1.5966048895143996, 0.5679190279257418 ], "data": [], "index_in_doc": 1067, "label": "text", "text": "www.broadridge.com/TransferAgent" }, { "bbox": [ 1.0471731946359273, 0.6083529308588818, 1.483729642980239, 0.9590069934575245 ], "data": [], "index_in_doc": 1068, "label": "text", "text": "CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS All statements, other than statements of current or historical fact, contained in this 2016 Annual Review or incorporated by reference herein are forward-looking statements. We intend such forward looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we are including this statement for purposes of complying with these safe-harbor provisions. We have attempted to identify these statements by terminology including \"believe,\" \"anticipate,\" \"plan,\" \"expect,\" \"estimate,\" \"intend,\" \"seek,\" \"target,\" \"goal,\" \"may,\" \"will,\" \"would,\" \"could,\" \"should,\" \"can,\" \"continue\" and other similar words or expressions (and the negative thereof) in connection with, among other things, any discussion of future operating or financial performance. In particular, these statements include without limitation statements about our market opportunity, our growth strategy, competition, expected activities and future acquisitions, investments and the adequacy of our available cash resources. Readers are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, regulatory, competitive and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions. All forward-looking statements included in this 2016 Annual Review are based on information available to us on the date of this 2016 Annual Review. Except as may be otherwise required by law, we undertake no obligation to update or revise the forward-looking statements included in this 2016 Annual Review, whether as a result of new information, future events or otherwise, after the date of this filing. You should not place undue reliance on any forward looking statements, as actual results may differ materially from projections, estimates, or other forward-looking statements due to a variety of important factors, including but not limited to (i) our ability to accurately predict and effectively manage health benefits and other operating expenses and reserves; (ii) competition; (iii) membership and revenue declines or unexpected trends; (iv) changes in healthcare practices, new technologies, and advances in medicine; (v) increased health care costs; (vi) changes in economic, political or market conditions; (vii) changes in federal or state laws or regulations, including changes with respect to government health care programs as well as changes with respect to the Patient Protection and Affordable Care Act and the Health Care and Education Affordability Reconciliation Act and any regulations enacted thereunder that may result from changing political conditions; (viii) rate cuts or other" }, { "bbox": [ 1.5101111916934742, 0.6178630482066761, 1.9458430670445261, 0.957292388183902 ], "data": [], "index_in_doc": 1069, "label": "text", "text": "payment reductions or delays by governmental payors and other risks and uncertainties affecting our government businesses; (ix) our ability to adequately price products on federally facilitated and state based Health Insurance Marketplaces; (x) tax matters; (xi) disasters or major epidemics; (xii) the outcome of legal and regulatory proceedings; (xiii) changes in expected contract start dates; (xiv) provider, state, federal and other contract changes and timing of regulatory approval of contracts; (xv) the expiration, suspension, or termination of our contracts with federal or state governments (including but not limited to Medicaid, Medicare, and TRICARE); (xvi) challenges to our contract awards; (xvii) cyber-attacks or other privacy or data security incidents; (xviii) the possibility that the expected synergies and value creation from acquired businesses, including, without limitation, the acquisition of Health Net, Inc., will not be realized, or will not be realized within the expected time period, including, but not limited to, as a result of conditions, terms, obligations or restrictions imposed by regulators in connection with their approval of, or consent to, the acquisition; (xix) the exertion of management's time and our resources, and other expenses incurred and business changes required in connection with complying with the undertakings in connection with certain regulatory approvals; (xx) disruption from the acquisition making it more difficult to maintain business and operational relationships; (xxi) the risk that unexpected costs will be incurred in connection with, among other things, the acquisition and/or the integration; (xxii) changes in expected closing dates, estimated purchase price and accretion for acquisitions; (xxiii) the risk that acquired businesses will not be integrated successfully; (xxiv) our ability to maintain or achieve improvement in the Centers for Medicare and Medicaid Services (CMS) Star ratings and other quality scores that impact revenue; (xxv) availability of debt and equity financing, on terms that are favorable to us; (xxvi) inflation; and (xxvii) foreign currency fluctuations. This list of important factors is not intended to be exhaustive. We discuss certain of these matters more fully, as well as certain other risk factors that may affect our business operations, financial condition and results of operations, in our filings with the Securities and Exchange Commission, including our annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. Item 1A. \"Risk Factors\" of Part I of our Annual Report on Form 10-K filed with the SEC on February 21, 2017 contains a further discussion of these and other important factors that could cause actual results to differ from expectations. Due to these important factors and risks, we cannot give assurances with respect to our future performance, including without limitation our ability to maintain adequate premium levels or our ability to control our future medical costs." }, { "bbox": [ 1.6636927984898386, 0.11276491723879419, 1.7889216803257761, 0.12049218380089963 ], "data": [], "index_in_doc": 1070, "label": "text", "text": "ANNUAL MEETING" }, { "bbox": [ 1.6636846205767464, 0.12677695534446023, 1.9145655413858251, 0.18671563659051452 ], "data": [], "index_in_doc": 1071, "label": "text", "text": "The Annual Meeting of Stockholders will be held on Tuesday, April 25, 2017, at 9 a.m. at Centene Corporation, 7700 Forsyth Boulevard, St. Louis, MO 63105 in the Auditorium, 314-725-4477 ." }, { "bbox": [ 1.6641991309870303, 0.2011361170296717, 1.8282514584609886, 0.208876022184738 ], "data": [], "index_in_doc": 1072, "label": "text", "text": "CASH DIVIDEND POLICY" }, { "bbox": [ 1.6636846205767464, 0.21524471706814235, 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QUALCOMM INC/DE FORM 10-K (Annual Report) Filed 11/03/10 for the Period Ending 09/26/10 Address 5775 MOREHOUSE DR Telephone 8585871121 CIK 0000804328 Symbol QCOM SIC Code 3663 - Radio and Television Broadcasting and Communications Equipment Industry Communications Equipment Sector Fiscal Year 09/30 © Copyright 2010, EDGAR Online, Inc. All Rights Reserved. Distribution and use of this document restricted under EDGAR Online, Inc. Terms of Use. Technology SAN DIEGO, CA 92121
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Table of Contents
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Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 26, 2010 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission file number 0-19528 QUALCOMM Incorporated (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) 95-3685934 (I.R.S. Employer Identification No.) 5775 Morehouse Drive San Diego, California (Address of principal executive offices) 92121 -1714 (Zip Code) Registrant's telephone number, including area code: (858) 587-1121 Securities registered pursuant to section 12(b) of the Act: Title of Each Class Common stock, $0.0001 par value Name of Each Exchange on Which Registered NASDAQ Stock Market LLC Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES NO  Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. YES NO Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES NO Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10 -K or any amendment to this Form 10-K.
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" }, { "bbox": [ 0.3856971591126685, 0.4107042948404948, 0.614528730803845, 0.4196205139160156 ], "ocr": false, "ocr_confidence": 1, "text": "Commission file number 0-19528 " }, { "bbox": [ 0.2623433879777497, 0.4434079642247672, 0.7487552617889603, 0.4703935565370502 ], "ocr": false, "ocr_confidence": 1, "text": "QUALCOMM Incorporated " }, { "bbox": [ 0.32015881507225286, 0.4732423262162642, 0.6797590068742341, 0.4845479329427083 ], "ocr": false, "ocr_confidence": 1, "text": "(Exact name of registrant as specified in its charter) " }, { "bbox": [ 0.2643439349006204, 0.6403634813096788, 0.7350233489391851, 0.651669088036123 ], "ocr": false, "ocr_confidence": 1, "text": "Registrant’s telephone number, including area code: (858) 587-1121 " }, { "bbox": [ 0.3017457949569802, 0.669454362657335, 0.6974109325533598, 0.6807599501176314 ], "ocr": false, "ocr_confidence": 1, "text": "Securities registered pursuant to section 12(b) of the Act: " }, { "bbox": [ 0.3007654925577002, 0.7414240403608843, 0.6981951644997192, 0.7527296278211806 ], "ocr": false, "ocr_confidence": 1, "text": "Securities registered pursuant to Section 12(g) of the Act: " }, { "bbox": [ 0.48254798440372243, 0.7710688619902639, 0.5172793818455116, 0.7795197650639698 ], "ocr": false, "ocr_confidence": 1, "text": "None " }, { "bbox": [ 0.05009727852017272, 0.791477954748905, 0.8706836575776143, 0.8037896204476405 ], "ocr": false, "ocr_confidence": 1, "text": "Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. YES \u0001 " }, { "bbox": [ 0.8878411187065972, 0.7919684130736072, 0.9284014733009089, 0.8012241787380643 ], "ocr": false, "ocr_confidence": 1, "text": "NO \u0003 " }, { "bbox": [ 0.050095508301180175, 0.8134835561116537, 0.8838903888378268, 0.8253047634856869 ], "ocr": false, "ocr_confidence": 1, "text": "Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. 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Table of Contents The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant at March 28, 2010 was $67,115,795,559. * The number of shares outstanding of the registrant's common stock was 1,617,713,293 at November 1, 2010. DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant's Definitive Proxy Statement to be filed with the Commission pursuant to Regulation 14A in connection with the registrant's 2011 Annual Meeting of Stockholders, to be filed subsequent to the date hereof, are incorporated by reference into Part III of this Report. Such Definitive Proxy Statement will be filed with the Securities and Exchange Commission not later than 120 days after the conclusion of the registrant's fiscal year ended September 26, 2010. * Excludes the Common Stock held by executive offificers, directors and stockholders whose ownership exceeds 5% of the Common Stock outstanding at March 28, 2010. This calculation does not reflect a determination that such persons are affiliates for any other purposes.
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QUALCOMM INCORPORATED Form 10-K For the Fiscal Year Ended September 26, 2010 Index Page PART I
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Table of Contents TRADEMARKS AND TRADE NAMES QUALCOMM ® , QCT-® , MSM™, Snapdragon™, Wireless Reach & Design™, gpsOne ® , Brew ® , MediaFLO ® , FLO™, FLO TV™, QPoint ® , Gobi™, Plaza™, Xiam and QChat ® are trademarks and/or service marks of QUALCOMM Incorporated. QUALCOMM, QUALCOMM Enterprise Services™, QES™, QUALCOMM CDMA Technologies, QCT, QUALCOMM Technology Licensing, QTL, QUALCOMM Wireless & Internet, QUALCOMM Wireless & Internet Group, QWI, QUALCOMM Internet Services, QIS, QUALCOMM Government Technologies, QGOV, QUALCOMM MEMS Technologies, QMT, QUALCOMM Technologies & Ventures, QUALCOMM MediaFLO Technologies, MFT, QUALCOMM Global Trading, QGT, QUALCOMM Strategic Initiatives, QSI, FLO TV and Spike are trade names of QUALCOMM Incorporated. SWAGG™ is a trademark of Firethorn Holdings, LLC. Firethorn ® is a registered trademark of Firethorn Holdings, LLC. Mirasol ® is a registered trademark of QUALCOMM MEMS Technologies, Inc. cdmaOne™ is a trademark of the CDMA Development Group, Inc. CDMA2000 ® is a registered service mark and certification mark of the Telecommunications Industry Association. Java ® is a registered trademark and service mark of Sun Microsystems, Inc. Windows Mobile ® is a registered trademark of Microsoft Corporation. Web OS ® is a registered trademark of Palm Inc. Linux ® is a registered trademark of Linus Torvalds. Android™ and Google Chrome™ are trademarks of Google Inc. Bluetooth ® is a registered trademark of Bluetooth SIG, Inc. iPhone ® is a registered trademark of Apple, Inc. All other trademarks, service marks and/or trade names appearing in this document are the property of their respective holders.
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Bluetooth " }, { "bbox": [ 0.591292487250434, 0.24372871475990374, 0.5969144534441381, 0.2481132276130445 ], "ocr": false, "ocr_confidence": 1, "text": "® " }, { "bbox": [ 0.5996714573280484, 0.24504736698035037, 0.9592392865349265, 0.25636553523516414 ], "ocr": false, "ocr_confidence": 1, "text": "is a registered trademark of Bluetooth SIG, Inc. iPhone " }, { "bbox": [ 0.9640375274458742, 0.24372871475990374, 0.9696594437742545, 0.2481132276130445 ], "ocr": false, "ocr_confidence": 1, "text": "® " }, { "bbox": [ 0.02967164407368579, 0.25898673317649146, 0.28411638347152013, 0.27030490143130526 ], "ocr": false, "ocr_confidence": 1, "text": "is a registered trademark of Apple, Inc. " }, { "bbox": [ 0.05004755344266206, 0.280653365934738, 0.8780374963299121, 0.29197153418955174 ], "ocr": false, "ocr_confidence": 1, "text": "All other trademarks, service marks and/or trade names appearing in this document are the property of their respective holders. " } ]
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Table of Contents In this document, the words "Qualcomm," "we," "our," "ours" and "us" refer only to QUALCOMM Incorporated and its subsidiaries and not any other person or entity. PART I Item 1. Business This Annual Report (including, but not limited to, the following section regarding Management's Discussion and Analysis of Financial Condition and Results of Operations) contains forward-looking statements regarding our business, financial condition, results of operations and prospects. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates" and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this Annual Report. Additionally, statements concerning future matters such as the development of new products, enhancements or technologies, sales levels, expense levels and other statements regarding matters that are not historical are forward-looking statements. Although forward-looking statements in this Annual Report reflect our good faith judgment, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include without limitation those discussed under the heading "Risk Factors" below, as well as those discussed elsewhere in this Annual Report. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this Annual Report. We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this Annual Report. Readers are urged to carefully review and consider the various disclosures made in this Annual Report, which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects. We incorporated in 1985 under the laws of the state of California. In 1991, we reincorporated in the state of Delaware. We operate and report using a 52-53 week fiscal year ending the last Sunday in September. Our 52-week fiscal years consist of four equal quarters of 13 weeks each, and our 53-week fiscal years consist of three 13-week fiscal quarters and one 14-week fiscal quarter. The financial results for our 53week fiscal years and our 14-week fiscal quarters will not be exactly comparable to our 52-week fiscal years and our 13-week fiscal quarters. The fiscal years ended September 26, 2010, September 27, 2009 and September 28, 2008 all included 52 weeks. Overview In 1989, we publicly introduced the concept that a digital communication technique called CDMA could be commercially successful in cellular wireless communication applications. CDMA stands for Code Division Multiple Access and is one of the main technologies currently used in digital wireless communications networks (also known as wireless networks). CDMA and TDMA (Time Division Multiple Access), of which Global System for Mobile Communications (GSM) is the primary commercial form, are the primary digital technologies currently used to transmit a wireless device user's voice or data over radio waves using a public cellular wireless network. Because we led, and continue to lead, the development and commercialization of CDMA technology, we own significant intellectual property, including patents, patent applications and trade secrets, which applies to all versions of CDMA, portions of which we license to other companies and implement in our own products. The wireless communications industry generally recognizes that a company seeking to develop, manufacture and/or sell products that use CDMA technology will require a patent license from us. We also continue our leading role in the development and commercialization of Orthogonal Frequency Division Multiplexing Access (OFDMA)-based technologies for which we have substantial intellectual property. Our CDMA licensees' sales of multimode CDMA and OFDMA devices are covered by their existing CDMA license agreements with us. We have begun to license companies to make and sell OFDMA products that do not also implement CDMA, and nine companies have royalty-bearing licenses under our patent portfolio for use in such OFDMA products. Our Revenues . We generate revenues by licensing portions of our intellectual property to manufacturers of wireless products (such as mobile devices, also known as subscriber units, which include handsets, other consumer devices and modem cards, and the infrastructure required to establish and operate a wireless network). We receive licensing fees and royalties on products sold by our licensees that incorporate our patented technologies. We also sell products and services, which include: 1
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Because we led, and continue to " }, { "bbox": [ 0.02972360997418173, 0.5601988513060291, 0.9110053567325368, 0.5715170195608428 ], "ocr": false, "ocr_confidence": 1, "text": "lead, the development and commercialization of CDMA technology, we own significant intellectual property, including patents, patent " }, { "bbox": [ 0.03001603581546958, 0.5741382175021701, 0.9550527934155433, 0.5854438242286143 ], "ocr": false, "ocr_confidence": 1, "text": "applications and trade secrets, which applies to all versions of CDMA, portions of which we license to other companies and implement in our " }, { "bbox": [ 0.02988604003307866, 0.5880775836983112, 0.9102561801087623, 0.599395751953125 ], "ocr": false, "ocr_confidence": 1, "text": "own products. 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Our CDMA licensees’ sales of multimode CDMA and " }, { "bbox": [ 0.029967208313786128, 0.6517139396282158, 0.9247668895846098, 0.6630321078830295 ], "ocr": false, "ocr_confidence": 1, "text": "OFDMA devices are covered by their existing CDMA license agreements with us. We have begun to license companies to make and sell " }, { "bbox": [ 0.029968850752886605, 0.6656533443566525, 0.9518044664968852, 0.6769715126114663 ], "ocr": false, "ocr_confidence": 1, "text": "OFDMA products that do not also implement CDMA, and nine companies have royalty-bearing licenses under our patent portfolio for use in " }, { "bbox": [ 0.03024498309964448, 0.6795927490850892, 0.18568986381580627, 0.6908983365453855 ], "ocr": false, "ocr_confidence": 1, "text": "such OFDMA products. 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The fiscal years ended September 26, 2010, September 27, 2009 and September 28, 2008 all included 52 weeks." }, { "bbox": [ 0.028909122242647058, 0.4676180752840909, 0.09633430780148973, 0.47780921242453833 ], "data": [], "index_in_doc": 93, "label": "section_header", "text": "Overview" }, { "bbox": [ 0.028034655876408996, 0.48915581751351406, 0.9650478986353656, 0.6146607832475142 ], "data": [], "index_in_doc": 94, "label": "text", "text": "In 1989, we publicly introduced the concept that a digital communication technique called CDMA could be commercially successful in cellular wireless communication applications. CDMA stands for Code Division Multiple Access and is one of the main technologies currently used in digital wireless communications networks (also known as wireless networks). CDMA and TDMA (Time Division Multiple Access), of which Global System for Mobile Communications (GSM) is the primary commercial form, are the primary digital technologies currently used to transmit a wireless device user's voice or data over radio waves using a public cellular wireless network. Because we led, and continue to lead, the development and commercialization of CDMA technology, we own significant intellectual property, including patents, patent applications and trade secrets, which applies to all versions of CDMA, portions of which we license to other companies and implement in our own products. The wireless communications industry generally recognizes that a company seeking to develop, manufacture and/or sell products that use CDMA technology will require a patent license from us." }, { "bbox": [ 0.028141439350601895, 0.6224441528320312, 0.9520318523731107, 0.6914397730971827 ], "data": [], "index_in_doc": 95, "label": "text", "text": "We also continue our leading role in the development and commercialization of Orthogonal Frequency Division Multiplexing Access (OFDMA)-based technologies for which we have substantial intellectual property. Our CDMA licensees' sales of multimode CDMA and OFDMA devices are covered by their existing CDMA license agreements with us. We have begun to license companies to make and sell OFDMA products that do not also implement CDMA, and nine companies have royalty-bearing licenses under our patent portfolio for use in such OFDMA products." }, { "bbox": [ 0.028479934517854178, 0.7000325520833334, 0.9656998378778595, 0.7549184163411459 ], "data": [], "index_in_doc": 96, "label": "text", "text": "Our Revenues . We generate revenues by licensing portions of our intellectual property to manufacturers of wireless products (such as mobile devices, also known as subscriber units, which include handsets, other consumer devices and modem cards, and the infrastructure required to establish and operate a wireless network). We receive licensing fees and royalties on products sold by our licensees that incorporate our patented technologies. We also sell products and services, which include:" }, { "bbox": [ 0.496396482380387, 0.7741729273940577, 0.5026035184174581, 0.7843095413362137 ], "data": [], "index_in_doc": 97, "label": "page_footer", "text": "1" } ]
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Table of Contents - · CDMA-based integrated circuits (also known as chips or chipsets) and Radio Frequency (RF) and Power Management (PM) chips and system software used in mobile devices and in wireless networks; - · Software products and services for content enablement across a wide variety of platforms and devices fofor the wireless industry; - · Equipment, software and services used by companies, including those in the transportation industry and governments, to wirelessly connect with their assets and workforce; - · Software products and services that enable mobile commerce services; - · Services to wireless operators delivering multimedia content, including live television, in the United States; and - · Software and hardware development services. Our Licensing Business. We grant licenses to use portions of our intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products, and collect license fees and royalties in partial consideration for such licenses. Our Integrated Circuits Business. We develop and supply CDMA-based integrated circuits and system software for wireless voice and data communications, multimedia functions and global positioning system products. We also design and create multimode and multiband integrated circuits incorporating other wireless standards for roaming in global roaming markets. Our integrated circuit products and system software are used in wireless devices, particularly mobile phones, tablets, laptops, data modules, handheld wireless computers, data cards and infrastructure equipment. The integrated circuits fofor wireless devices include the baseband Mobile Station Modem (MSM), Mobile Data Modem (MDM), Qualcomm Single Chip (QSC), Qualcomm Snapdragon (QSD), RF, PM and Bluetooth devices, as well as the system software that enables the other device components to interface with the integrated circuit products and is the foundation software enabling manufacturers to develop devices utilizing the functionality within the integrated circuits. These integrated circuits for wireless devices and system software perform voice and data communication, multimedia and global positioning functions, radio conversion between RF and baseband signals, power management and peripheral connectivity. Our infrastructure equipment Cell Site Modem (CSM) integrated circuits and system software perform the core baseband CDMA modem functionality in the wireless operator's base station equipment providing wireless standards-compliant processing of voice and data signals to and from wireless devices. Because of our broad and unique experience in designing and developing CDMA-based products, we not only design the baseband integrated circuit, but the supporting system as well, including the RF devices, PM devices and accompanying software products. This approach enables us to optimize the performance of the wireless device with improved product features, as well as the integration and performance of the network system. Our design of the system allows CDMA systems and devices manufactured by our customers to come to market faster. We provide our integrated circuits and system software, including reference designs and tools, to many of the world's leading wireless device and infrastructure equipment manufacturers. We also provide support to enable our customers to reduce the time required to design their products and bring their products to market faster. We plan to add additional features and capabilities to our integrated circuit products to help our customers reduce the costs and size of their products, to simplify our customers' design processes and to enable more wireless devices and services . Our Wireless Device Software and Related Services Business. We provide software products and services for the global wireless industry. Our Brew products and services enable wireless operators, device manufacturers and software developers to provide over-the-air and preloaded wireless applications and services. Our Plaza products and services enable wireless operators, device manufacturers and publishers to create and distribute mobile content across a variety of platforms and devices. We also offer Xiam wireless content discovery and recommendation products to help wireless operators improve usage and adoption of digital content and services. We also provide QChat, a push to talk product optimized for third generation (3G) networks, as well as QPoint, which enables wireless operators to offer enhanced 911 (E-911) wireless emergency and other location-based applications and services. Our Asset Tracking and Services Business. We design, manufacture and sell equipment, license software and provide services to our customers to enable them to connect wirelessly with their assets, products and workforce. We offer satellite- and terrestrial-based two-way wireless connectivity and position location services to transportation and logistics fleets and other enterprise companies to enable our customers to track the location and monitor the performance of their assets, and the workflow of their personnel. 2
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Our integrated circuit products and system " }, { "bbox": [ 0.030241847817414725, 0.31019885130602903, 0.954840167675143, 0.3215170195608428 ], "ocr": false, "ocr_confidence": 1, "text": "software are used in wireless devices, particularly mobile phones, tablets, laptops, data modules, handheld wireless computers, data cards and " }, { "bbox": [ 0.02967333637811, 0.32413829456676135, 0.9205142750459558, 0.33545646282157515 ], "ocr": false, "ocr_confidence": 1, "text": "infrastructure equipment. The integrated circuits fofor wireless devices include the baseband Mobile Station Modem (MSM), Mobile Data " }, { "bbox": [ 0.02960831511254404, 0.3382291697492503, 0.9102367326325062, 0.34954733800406407 ], "ocr": false, "ocr_confidence": 1, "text": "Modem (MDM), Qualcomm Single Chip (QSC), Qualcomm Snapdragon (QSD), RF, PM and Bluetooth devices, as well as the system " }, { "bbox": [ 0.030241797952090994, 0.35216853594539144, 0.9313615786483864, 0.3634867427325008 ], "ocr": false, "ocr_confidence": 1, "text": "software that enables the other device components to interface with the integrated circuit products and is the foundation software enabling " }, { "bbox": [ 0.02967328651278627, 0.36610797920612376, 0.9403306549670649, 0.3774261474609375 ], "ocr": false, "ocr_confidence": 1, "text": "manufacturers to develop devices utilizing the functionality within the integrated circuits. These integrated circuits for wireless devices and " }, { "bbox": [ 0.03024344039119147, 0.38004738393456045, 0.9213124194176369, 0.3913655521893742 ], "ocr": false, "ocr_confidence": 1, "text": "system software perform voice and data communication, multimedia and global positioning functions, radio conversion between RF and " }, { "bbox": [ 0.02946377112195383, 0.394138297649345, 0.9438915377348857, 0.4054564659041588 ], "ocr": false, "ocr_confidence": 1, "text": "baseband signals, power management and peripheral connectivity. Our infrastructure equipment Cell Site Modem (CSM) integrated circuits " }, { "bbox": [ 0.030015985950145846, 0.4080776253131905, 0.924304239111009, 0.41939579356800427 ], "ocr": false, "ocr_confidence": 1, "text": "and system software perform the core baseband CDMA modem functionality in the wireless operator’s base station equipment providing " }, { "bbox": [ 0.02975609723259421, 0.4220169915093316, 0.9653331282871221, 0.4333351597641454 ], "ocr": false, "ocr_confidence": 1, "text": "wireless standards-compliant processing of voice and data signals to and from wireless devices. Because of our broad and unique experience in " }, { "bbox": [ 0.02985514846502566, 0.43610794375641176, 0.9192495907054228, 0.44742611201122556 ], "ocr": false, "ocr_confidence": 1, "text": "designing and developing CDMA-based products, we not only design the baseband integrated circuit, but the supporting system as well, " }, { "bbox": [ 0.029674829221239277, 0.4500473099525529, 0.9278711057176777, 0.4613654782073666 ], "ocr": false, "ocr_confidence": 1, "text": "including the RF devices, PM devices and accompanying software products. This approach enables us to optimize the performance of the " }, { "bbox": [ 0.029757689806370953, 0.463986676148694, 0.9445542478873059, 0.47530484440350773 ], "ocr": false, "ocr_confidence": 1, "text": "wireless device with improved product features, as well as the integration and performance of the network system. Our design of the system " }, { "bbox": [ 0.030017528658598858, 0.4779260808771307, 0.944554048426011, 0.4892442491319444 ], "ocr": false, "ocr_confidence": 1, "text": "allows CDMA systems and devices manufactured by our customers to come to market faster. We provide our integrated circuits and system " }, { "bbox": [ 0.03024498309964448, 0.4920169945919152, 0.9439250472324346, 0.503335162846729 ], "ocr": false, "ocr_confidence": 1, "text": "software, including reference designs and tools, to many of the world’s leading wireless device and infrastructure equipment manufacturers. " }, { "bbox": [ 0.029497797972236582, 0.5059563607880564, 0.9576504775901246, 0.5172745290428701 ], "ocr": false, "ocr_confidence": 1, "text": "We also provide support to enable our customers to reduce the time required to design their products and bring their products to market faster. 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" }, { "bbox": [ 0.4963698542975133, 0.7349838102706755, 0.5035980324340023, 0.7434850172563032 ], "ocr": false, "ocr_confidence": 1, "text": "2 " }, { "bbox": [ 0.0864508323420107, 0.0598982223356613, 0.09099891139011757, 0.06341938057331124 ], "ocr": false, "ocr_confidence": 1, "text": "• " }, { "bbox": [ 0.11457241282743566, 0.05732018056541982, 0.9660447064568015, 0.06863834882023359 ], "ocr": false, "ocr_confidence": 1, "text": "CDMA-based integrated circuits (also known as chips or chipsets) and Radio Frequency (RF) and Power Management (PM) chips " }, { "bbox": [ 0.11471861795662275, 0.0714111328125, 0.57041921179279, 0.08272930106731376 ], "ocr": false, "ocr_confidence": 1, "text": "and system software used in mobile devices and in wireless networks; " }, { "bbox": [ 0.0864508323420107, 0.09626184328637942, 0.09099891139011757, 0.09978300152402936 ], "ocr": false, "ocr_confidence": 1, "text": "• " }, { "bbox": [ 0.11479982363632302, 0.09368380151613794, 0.9453224730647467, 0.1050019697709517 ], "ocr": false, "ocr_confidence": 1, "text": "Software products and services for content enablement across a wide variety of platforms and devices fofor the wireless industry; " }, { "bbox": [ 0.0864508323420107, 0.11868609804095644, 0.09099891139011757, 0.12220725627860637 ], "ocr": false, "ocr_confidence": 1, "text": "• " }, { "bbox": [ 0.11431251476013582, 0.11610805627071497, 0.9013602063546773, 0.12742622452552874 ], "ocr": false, "ocr_confidence": 1, "text": "Equipment, software and services used by companies, including those in the transportation industry and governments, to " }, { "bbox": [ 0.11445871988932292, 0.13004742246685605, 0.4470864090265012, 0.14136559072166982 ], "ocr": false, "ocr_confidence": 1, "text": "wirelessly connect with their assets and workforce;" }, { "bbox": [ 0.0864508323420107, 0.15504971899167455, 0.09099891139011757, 0.1585708772293245 ], "ocr": false, "ocr_confidence": 1, "text": "• " }, { "bbox": [ 0.11479982363632302, 0.1524716772214331, 0.5749299791124132, 0.16377728394787722 ], "ocr": false, "ocr_confidence": 1, "text": "Software products and services that enable mobile commerce services; " }, { "bbox": [ 0.0864508323420107, 0.17732246475990374, 0.09099891139011757, 0.18084362299755366 ], "ocr": false, "ocr_confidence": 1, "text": "• " }, { "bbox": [ 0.11479982363632302, 0.17474442298966225, 0.8444463193806169, 0.18606259124447602 ], "ocr": false, "ocr_confidence": 1, "text": "Services to wireless operators delivering multimedia content, including live television, in the United States; and " }, { "bbox": [ 0.0864508323420107, 0.19974671951448075, 0.09099891139011757, 0.20326787775213068 ], "ocr": false, "ocr_confidence": 1, "text": "• " }, { "bbox": [ 0.11479982363632302, 0.19716867774423927, 0.41372398924983406, 0.2084742844706834 ], "ocr": false, "ocr_confidence": 1, "text": "Software and hardware development services. " } ]
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We grant licenses to use portions of our intellectual property portfolio, which includes certain patent rights essential to and/or useful in the manufacture and sale of certain wireless products, and collect license fees and royalties in partial consideration for such licenses." }, { "bbox": [ 0.027875722623338886, 0.26725568675031564, 0.9653331282871221, 0.546543583725438 ], "data": [], "index_in_doc": 106, "label": "text", "text": "Our Integrated Circuits Business. We develop and supply CDMA-based integrated circuits and system software for wireless voice and data communications, multimedia functions and global positioning system products. We also design and create multimode and multiband integrated circuits incorporating other wireless standards for roaming in global roaming markets. Our integrated circuit products and system software are used in wireless devices, particularly mobile phones, tablets, laptops, data modules, handheld wireless computers, data cards and infrastructure equipment. The integrated circuits fofor wireless devices include the baseband Mobile Station Modem (MSM), Mobile Data Modem (MDM), Qualcomm Single Chip (QSC), Qualcomm Snapdragon (QSD), RF, PM and Bluetooth devices, as well as the system software that enables the other device components to interface with the integrated circuit products and is the foundation software enabling manufacturers to develop devices utilizing the functionality within the integrated circuits. These integrated circuits for wireless devices and system software perform voice and data communication, multimedia and global positioning functions, radio conversion between RF and baseband signals, power management and peripheral connectivity. Our infrastructure equipment Cell Site Modem (CSM) integrated circuits and system software perform the core baseband CDMA modem functionality in the wireless operator's base station equipment providing wireless standards-compliant processing of voice and data signals to and from wireless devices. Because of our broad and unique experience in designing and developing CDMA-based products, we not only design the baseband integrated circuit, but the supporting system as well, including the RF devices, PM devices and accompanying software products. This approach enables us to optimize the performance of the wireless device with improved product features, as well as the integration and performance of the network system. Our design of the system allows CDMA systems and devices manufactured by our customers to come to market faster. We provide our integrated circuits and system software, including reference designs and tools, to many of the world's leading wireless device and infrastructure equipment manufacturers. We also provide support to enable our customers to reduce the time required to design their products and bring their products to market faster. We plan to add additional features and capabilities to our integrated circuit products to help our customers reduce the costs and size of their products, to simplify our customers' design processes and to enable more wireless devices and services ." }, { "bbox": [ 0.027679443359375, 0.5542048059328638, 0.9648167229945364, 0.6510450575086806 ], "data": [], "index_in_doc": 107, "label": "text", "text": "Our Wireless Device Software and Related Services Business. We provide software products and services for the global wireless industry. 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Table of Contents Our Mobile Commerce Business . In fiscal 2011, we expect to introduce a new product application trademarked as SWAGG, which will be marketed on a standalone basis directly to consumers. SWAGG's core features include purchase and gift of virtually stored-value gift cards delivered via mobile devices. In addition, we provide a single, secure, certified application embedded on select wireless devices, which enables financial institutions and merchants to deliver branded services to consumers through the wireless devices. Our FLO TV Business. Our subsidiary, FLO TV Incorporated (FLO TV), currently offers its service in the United States over our nationwide multicast network. We have commenced a restructuring plan under which we expect to exit the current FLO TV service business. Additionally, we continue to evaluate strategic options for the FLO TV business, which include, but are not limited to, operating the FLO TV network under a new wholesale service model; sale to, or joint venture with, a third party; and/or the sale of the spectrum licenses and discontinuance of the operation of the network. Our MediaFLO Technologies (MFT) division is comprised of the FLO Technology group, which continues to develop our MediaFLO MDS and MediaFLO technology, and the FLO International group, which markets MediaFLO for deployment outside of the United States. The market for mobile TV remains nascent with numerous competing technologies and standards. Our Display Business. We continue to develop display technology for the fufull range of consumer-targeted mobile products. Our interferometric modulator (IMOD) display technology, based on a MEMS structure combined with thin film optics and sold under the "mirasol" brand, is expected to provide performance, power consumption and cost benefits as compared to current display technologies. Wireless Telecommunications Market Use of wireless telecommunications devices has increased dramatically in the past decade. According to Wireless Intelligence estimates as of November 1, 2010, the number of worldwide mobile connections is expected to reach approximately 5.3 billion by the end of 2010 and almost 7.0 billion in 2014. Growth in the early days of wireless communications was driven by the need to make voice calls in a mobile environment. More recently, increases in demand are primarily driven by the desire to have access to data services in a mobile environment. This is evidenced by the continued transition from 2G to 3G services. According to Wireless Intelligence, in March 2010, the industry reached a significant milestone by surpassing one billion 3G connections. Furthermore, Wireless Intelligence expects the number of global 3G connections to reach approximately 2.8 billion by 2014. There are several drivers for the growth in 3G: - · Consumer awareness and desire for data services; - · Mature 3G networks with high data rates; - · Consumer demand for data centric smartphone devices; - · Emergence of new data devices; and - · Growth in emerging regions. The last couple of years have witnessed a significant increase in the consumer's awareness and willingness to use mobile data services. Applications such as email, access to the mobile Internet, downloading of videos and social networking are driving the demand for 3G services and more capable phones. According to the CDMA Development Group (CDG) and the Global mobile Suppliers Association (GSA), approximately 85% of the world's wireless networks now support 3G, a sign that operators are making network investments to address the growing demand for wireless data. Operators are continuing to make network investments by upgrading their networks. According to the GSA, approximately 99% of the global WCDMA operators have upgraded their networks to offer High Speed Packet Access (HSPA) services. With support for higher data rates and increased capacity, networks will evolve to keep up with the growing demand for wireless data. The emergence of the mobile Internet is helping increase demand for 3G smartphones as the ability to access data is simplified and enhanced when using a smartphone. In the early days of the smartphone, these devices were designed primarily for high end business users. However, innovation and competition are helping to drive a broader set of devices into the market that provide compelling user experiences at consumer acceptable price points, which make such devices more accessible by a larger portion of the subscriber base. The need to stay connected anywhere, anytime is helping drive demand for data connectivity on notebook and netbook computers with either embedded 3G connectivity or via an external 3G USB modem. New device 3
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In addition, we provide a single, secure, certified application embedded on select wireless devices, which enables " }, { "bbox": [ 0.02973831089493496, 0.09928994226937342, 0.7252942752214818, 0.11060811052418719 ], "ocr": false, "ocr_confidence": 1, "text": "financial institutions and merchants to deliver branded services to consumers through the wireless devices. " }, { "bbox": [ 0.054361848270191866, 0.12077994298453283, 0.9066203996246937, 0.13212323429608586 ], "ocr": false, "ocr_confidence": 1, "text": "Our FLO TV Business. Our subsidiary, FLO TV Incorporated (FLO TV), currently offers its service in the United States over our " }, { "bbox": [ 0.029674230837354473, 0.13489601828835227, 0.9521584105647467, 0.14621418654316604 ], "ocr": false, "ocr_confidence": 1, "text": "nationwide multicast network. We have commenced a restructuring plan under which we expect to exit the current FLO TV service business. " }, { "bbox": [ 0.029657990324730966, 0.14883538448449338, 0.9536772085950266, 0.16015355273930712 ], "ocr": false, "ocr_confidence": 1, "text": "Additionally, we continue to evaluate strategic options for the FLO TV business, which include, but are not limited to, operating the FLO TV " }, { "bbox": [ 0.029674230837354473, 0.16277475068063446, 0.9054284189261642, 0.17409291893544823 ], "ocr": false, "ocr_confidence": 1, "text": "network under a new wholesale service model; sale to, or joint venture with, a third party; and/or the sale of the spectrum licenses and " }, { "bbox": [ 0.029852957507364112, 0.17686570292771464, 0.3372560887554892, 0.18817130965415876 ], "ocr": false, "ocr_confidence": 1, "text": "discontinuance of the operation of the network. " }, { "bbox": [ 0.050356173047832416, 0.19838074963502209, 0.9660141888786765, 0.20969891788983586 ], "ocr": false, "ocr_confidence": 1, "text": "Our MediaFLO Technologies (MFT) division is comprised of the FLO Technology group, which continues to develop our MediaFLO MDS " }, { "bbox": [ 0.030012750937268625, 0.2123201928957544, 0.9298286188661663, 0.22363836115056818 ], "ocr": false, "ocr_confidence": 1, "text": "and MediaFLO technology, and the FLO International group, which markets MediaFLO for deployment outside of the United States. The " }, { "bbox": [ 0.029671693939009522, 0.22625955909189552, 0.6399990904564951, 0.2375777273467093 ], "ocr": false, "ocr_confidence": 1, "text": "market for mobile TV remains nascent with numerous competing technologies and standards. " }, { "bbox": [ 0.05436020271450866, 0.24772497620245423, 0.8930880478005004, 0.25924436010495583 ], "ocr": false, "ocr_confidence": 1, "text": "Our Display Business. We continue to develop display technology for the fufull range of consumer-targeted mobile products. Our" }, { "bbox": [ 0.029670749614441317, 0.26186555804628314, 0.9053158230251737, 0.2731837263010969 ], "ocr": false, "ocr_confidence": 1, "text": "interferometric modulator (IMOD) display technology, based on a MEMS structure combined with thin film optics and sold under the " }, { "bbox": [ 0.030107722562902114, 0.27580500130701546, 0.9186234817006229, 0.2871231695618292 ], "ocr": false, "ocr_confidence": 1, "text": "“mirasol” brand, is expected to provide performance, power consumption and cost benefits as compared to current display technologies. " }, { "bbox": [ 0.029717937793607027, 0.30494674528488, 0.29421361287434894, 0.31381271824692236 ], "ocr": false, "ocr_confidence": 1, "text": "Wireless Telecommunications Market " }, { "bbox": [ 0.05002887264575834, 0.32656251541291825, 0.9556508781084048, 0.337880683667732 ], "ocr": false, "ocr_confidence": 1, "text": "Use of wireless telecommunications devices has increased dramatically in the past decade. According to Wireless Intelligence estimates as " }, { "bbox": [ 0.029880317987180223, 0.3405019586736506, 0.9316976709303513, 0.3518201269284643 ], "ocr": false, "ocr_confidence": 1, "text": "of November 1, 2010, the number of worldwide mobile connections is expected to reach approximately 5.3 billion by the end of 2010 and " }, { "bbox": [ 0.03001026390424741, 0.3544413248697917, 0.9166883082171671, 0.36575949312460543 ], "ocr": false, "ocr_confidence": 1, "text": "almost 7.0 billion in 2014. Growth in the early days of wireless communications was driven by the need to make voice calls in a mobile " }, { "bbox": [ 0.029815346586937998, 0.36853223858457623, 0.9447022481681475, 0.37985040683939 ], "ocr": false, "ocr_confidence": 1, "text": "environment. More recently, increases in demand are primarily driven by the desire to have access to data services in a mobile environment. " }, { "bbox": [ 0.029685400669870812, 0.3824716433130129, 0.9613061044730392, 0.3937898115678267 ], "ocr": false, "ocr_confidence": 1, "text": "This is evidenced by the continued transition from 2G to 3G services. According to Wireless Intelligence, in March 2010, the industry reached " }, { "bbox": [ 0.030010313769571143, 0.39641100950915403, 0.9054355995327819, 0.4077291777639678 ], "ocr": false, "ocr_confidence": 1, "text": "a significant milestone by surpassing one billion 3G connections. Furthermore, Wireless Intelligence expects the number of global 3G " }, { "bbox": [ 0.029815346586937998, 0.4105019232239386, 0.7023318421606924, 0.4218200914787524 ], "ocr": false, "ocr_confidence": 1, "text": "connections to reach approximately 2.8 billion by 2014. There are several drivers for the growth in 3G: " }, { "bbox": [ 0.05007745082082312, 0.5430776422674005, 0.9321530410666871, 0.5543958105222143 ], "ocr": false, "ocr_confidence": 1, "text": "The last couple of years have witnessed a significant increase in the consumer’s awareness and willingness to use mobile data services. 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" }, { "bbox": [ 0.05004491681366964, 0.5924716140284683, 0.9225704218047897, 0.6037897822832821 ], "ocr": false, "ocr_confidence": 1, "text": "According to the CDMA Development Group (CDG) and the Global mobile Suppliers Association (GSA), approximately 85% of the " }, { "bbox": [ 0.02975022559072457, 0.6065625277432528, 0.9558454526016136, 0.6178806959980666 ], "ocr": false, "ocr_confidence": 1, "text": "world’s wireless networks now support 3G, a sign that operators are making network investments to address the growing demand for wireless " }, { "bbox": [ 0.029847684249379277, 0.6205018939393939, 0.9447275797526041, 0.6318200621942077 ], "ocr": false, "ocr_confidence": 1, "text": "data. Operators are continuing to make network investments by upgrading their networks. According to the GSA, approximately 99% of the " }, { "bbox": [ 0.029863924762002784, 0.6344412986678306, 0.9405109679776859, 0.6457594669226444 ], "ocr": false, "ocr_confidence": 1, "text": "global WCDMA operators have upgraded their networks to offer High Speed Packet Access (HSPA) services. With support for higher data " }, { "bbox": [ 0.029491926330366944, 0.6485322123826153, 0.7160747752470129, 0.659850380637429 ], "ocr": false, "ocr_confidence": 1, "text": "rates and increased capacity, networks will evolve to keep up with the growing demand for wireless data. " }, { "bbox": [ 0.05007735109017565, 0.6700473746868095, 0.9058145759931577, 0.6813655429416232 ], "ocr": false, "ocr_confidence": 1, "text": "The emergence of the mobile Internet is helping increase demand for 3G smartphones as the ability to access data is simplified and " }, { "bbox": [ 0.029813504686542584, 0.6839867794152462, 0.9421512379365808, 0.69530494767006 ], "ocr": false, "ocr_confidence": 1, "text": "enhanced when using a smartphone. In the early days of the smartphone, these devices were designed primarily for high end business users. " }, { "bbox": [ 0.02971604602788788, 0.6979261648775351, 0.9586449916066687, 0.7092443331323489 ], "ocr": false, "ocr_confidence": 1, "text": "However, innovation and competition are helping to drive a broader set of devices into the market that provide compelling user experiences at " }, { "bbox": [ 0.029813504686542584, 0.7120170785923197, 0.8037198633929483, 0.7233352468471335 ], "ocr": false, "ocr_confidence": 1, "text": "consumer acceptable price points, which make such devices more accessible by a larger portion of the subscriber base. " }, { "bbox": [ 0.05007571176765791, 0.7335322408965139, 0.9316305522046058, 0.7448504091513277 ], "ocr": false, "ocr_confidence": 1, "text": "The need to stay connected anywhere, anytime is helping drive demand for data connectivity on notebook and netbook computers with " }, { "bbox": [ 0.029813454821218853, 0.7474716456249507, 0.5629609550525939, 0.7587898138797644 ], "ocr": false, "ocr_confidence": 1, "text": "either embedded 3G connectivity or via an external 3G USB modem. New device " }, { "bbox": [ 0.49657614714179943, 0.7795293596055772, 0.5028784758125255, 0.7881940591214883 ], "ocr": false, "ocr_confidence": 1, "text": "3 " }, { "bbox": [ 0.0864508323420107, 0.43459505023378314, 0.09099891139011757, 0.4381162470037287 ], "ocr": false, "ocr_confidence": 1, "text": "• " }, { "bbox": [ 0.1145724252937666, 0.4320170084635417, 0.4378705990859886, 0.44236686012961646 ], "ocr": false, "ocr_confidence": 1, "text": "Consumer awareness and desire for data services; " }, { "bbox": [ 0.0864508323420107, 0.4568677960020123, 0.09099891139011757, 0.4603889927719579 ], "ocr": false, "ocr_confidence": 1, "text": "• " }, { "bbox": [ 0.1143125396927977, 0.4542897542317708, 0.3853217230902778, 0.4656079224865846 ], "ocr": false, "ocr_confidence": 1, "text": "Mature 3G networks with high data rates; " }, { "bbox": [ 0.0864508323420107, 0.47929201222429374, 0.09099891139011757, 0.48281320899423924 ], "ocr": false, "ocr_confidence": 1, "text": "• " }, { "bbox": [ 0.1145724252937666, 0.4767139704540522, 0.4768909628874336, 0.4880195771804964 ], "ocr": false, "ocr_confidence": 1, "text": "Consumer demand for data centric smartphone devices; " }, { "bbox": [ 0.0864508323420107, 0.5017163055111663, 0.09099891139011757, 0.5052375022811119 ], "ocr": false, "ocr_confidence": 1, "text": "• " }, { "bbox": [ 0.1143125396927977, 0.49913826374092485, 0.35287707459692863, 0.5104564319957386 ], "ocr": false, "ocr_confidence": 1, "text": "Emergence of new data devices; and " }, { "bbox": [ 0.0864508323420107, 0.5239889356825087, 0.09099891139011757, 0.5275101324524543 ], "ocr": false, "ocr_confidence": 1, "text": "• " }, { "bbox": [ 0.11463739981059155, 0.5214108939122672, 0.3017632976856107, 0.5327290621670809 ], "ocr": false, "ocr_confidence": 1, "text": "Growth in emerging regions. " } ]
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Table of Contents categories, such as e-readers, have also emerged over the last couple of years. These new devices take advantage of the capabilities of 3G networks to download digital books, newspapers and magazines anywhere. Other emerging device categories, such as connected media tablets, digital picture frames and machine to machine communication, will help further drive global demand for 3G. Demand for wireless voice and data services in emerging regions is helping to increase global demand for 3G. Emerging regions still have relatively low penetration rates of wireless telecommunications services. 3G provides an efficient way for operators to offer both voice and data services to address these demands, and since fixed broadband penetration is very low in these regions, 3G presents a cost effective means of providing broadband capabilities to consumers. According to Informa Telecoms & Media, more than 50% of 3G handset shipments will go to emerging regions in 2011. Wireless Technologies The significant growth in the use of wireless devices worldwide, such as smartphones, and demand for data services and applications requires constant innovation to further improve the user experience, expand capacity and enable dense deployments of low power nodes, such as femtocells. To meet these requirements, progressive generations of wireless telecommunications technology standards have evolved. The use of wireless standards for mobile communications within individual countries is generally determined by the telecommunication service providers operating in those countries and, in some instances, local government regulations. Such determinations are typically based on economic criteria and the service provider's evaluation of each technology's ability to provide the features and functionality required for its business plan. More than two decades ago, the European Community developed regulations requiring the use of the GSM standard, a TDMAbased, 2G technology. In addition, there are several versions of CDMA technology that have been adopted worldwide as public cellular standards. The first version, known as cdmaOne, is a 2G cellular technology that was first commercially deployed in the mid-1990s. The other subsequent versions of CDMA are referred to as 3G technologies. Second Generation. Compared to first generation analog systems, 2G digital technology provided for significantly enhanced efficiency within a fixed spectrum resulting in greatly increased voice capacity. 2G technologies also enabled numerous enhanced services, but data services were generally limited to low speed transmission rates. The main 2G digital cellular technologies in use today are called cdmaOne or IS-95A/B, a technology largely developed and patented by us, and GSM, a form of TDMA. Many GSM operators deployed 2G mobile packet data technologies, such as General Packet Radio Service (GPRS) and Enhanced Data Rates for Global Evolution (EDGE) in areas serviced by GSM. Third Generation. As a result of demand for wireless networks that simultaneously carry both high speed data and voice traffic, the International Telecommunications Union (ITU), a standards setting organization, adopted the 3G standard known as IMT-2000, which encompasses six terrestrial operating radio interfaces, each of which incorporates our intellectual property. Two are TDMA-based, three of them are CDMA-based and the other is OFDMA-based. The three CDMA-based 3G technologies are known commonly throughout the wireless industry as: - · CDMA2000, including 1X (including revisions A through E), 1xEV-DO (EV-DO, or Evolution Data Optimized) including revisions A through C, developed by 3 rd Generation Partnership Project Two (3GPP2); - · Wideband CDMA (WCDMA), also known as Universal Mobile Telecommunications Systems (UMTS), including High Speed Packet Access (HSPA), part of 3 rd Generation Partnership Project (3GPP) Release 5 and 6, and HSPA+, part of 3GPP Release 7, 8, 9 and beyond; and - · CDMA Time Division Duplex (TDD), of which there are currently two versions, Time Division Duplex-CDMA (TD-CDMA) and Time Division -Synchronous CDMA (TD-SCDMA). Both are part of the specifications developed by 3GPP. Even though the OFDMA technologies are part of the IMT-2000 standard, to differentiate them from the 3G CDMA technologies, the OFDMA technologies are often called fourth generation (4G). Some of the advantages of 3G CDMA technology over 2G technologies include increased network capacity, improved user experience, compatibility with internet protocols, higher capacity for data and faster access to data (Internet) and higher data throughput rates. CDMA2000 and WCDMA are widely deployed today in wireless networks throughout the world. TD-SCDMA has been deployed in China. EV-DO Release B in the CDMA2000 family was launched in 2010; Release 7 of HSPA+ was launched in 2009; and Release 8 of HSPA+ was launched in 2010. 4
[ { "bbox": [ 0.02991529227861392, 0.025249827991832386, 0.15311861973182828, 0.03416604706735322 ], "ocr": false, "ocr_confidence": 1, "text": "Table of Contents " }, { "bbox": [ 0.029817833619959214, 0.05732018056541982, 0.9277912214690563, 0.06863834882023359 ], "ocr": false, "ocr_confidence": 1, "text": "categories, such as e-readers, have also emerged over the last couple of years. These new devices take advantage of the capabilities of 3G " }, { "bbox": [ 0.029671693939009522, 0.07141105574790878, 0.9645401699091095, 0.08272922400272253 ], "ocr": false, "ocr_confidence": 1, "text": "networks to download digital books, newspapers and magazines anywhere. Other emerging device categories, such as connected media tablets, " }, { "bbox": [ 0.029850370743695426, 0.0853504990086411, 0.7409782658994587, 0.09666866726345485 ], "ocr": false, "ocr_confidence": 1, "text": "digital picture frames and machine to machine communication, will help further drive global demand for 3G. " }, { "bbox": [ 0.0500638438206093, 0.10686562278053978, 0.9543374254812602, 0.11818379103535354 ], "ocr": false, "ocr_confidence": 1, "text": "Demand for wireless voice and data services in emerging regions is helping to increase global demand for 3G. Emerging regions still have " }, { "bbox": [ 0.029492970385582618, 0.12080498897668088, 0.9699244281045751, 0.13212315723149462 ], "ocr": false, "ocr_confidence": 1, "text": "relatively low penetration rates of wireless telecommunications services. 3G provides an efficient way for operators to offer both voice and data " }, { "bbox": [ 0.030240155512990516, 0.13489594122376106, 0.9458287058312909, 0.1462141094785748 ], "ocr": false, "ocr_confidence": 1, "text": "services to address these demands, and since fixed broadband penetration is very low in these regions, 3G presents a cost effective means of " }, { "bbox": [ 0.029492920520258883, 0.14883530741990214, 0.9564576990464154, 0.1601534756747159 ], "ocr": false, "ocr_confidence": 1, "text": "providing broadband capabilities to consumers. According to Informa Telecoms & Media, more than 50% of 3G handset shipments will go to " }, { "bbox": [ 0.029817833619959214, 0.16277475068063446, 0.19980267294092116, 0.17409291893544823 ], "ocr": false, "ocr_confidence": 1, "text": "emerging regions in 2011. " }, { "bbox": [ 0.02972037496130451, 0.19191649465849905, 0.1835107741013072, 0.2031844167998343 ], "ocr": false, "ocr_confidence": 1, "text": "Wireless Technologies " }, { "bbox": [ 0.0500800375844918, 0.21353234185112846, 0.9189858031428717, 0.22485051010594223 ], "ocr": false, "ocr_confidence": 1, "text": "The significant growth in the use of wireless devices worldwide, such as smartphones, and demand for data services and applications " }, { "bbox": [ 0.029493020250906353, 0.22747170804726957, 0.9571271908828636, 0.23878987630208334 ], "ocr": false, "ocr_confidence": 1, "text": "requires constant innovation to further improve the user experience, expand capacity and enable dense deployments of low power nodes, such " }, { "bbox": [ 0.030014443241692838, 0.24141099717881945, 0.9447316687091504, 0.2527291654336332 ], "ocr": false, "ocr_confidence": 1, "text": "as femtocells. To meet these requirements, progressive generations of wireless telecommunications technology standards have evolved. The " }, { "bbox": [ 0.029559637206831788, 0.2555019494258996, 0.9384584115221609, 0.2668201176807134 ], "ocr": false, "ocr_confidence": 1, "text": "use of wireless standards for mobile communications within individual countries is generally determined by the telecommunication service " }, { "bbox": [ 0.02949630512910731, 0.2694413156220407, 0.9149405286203023, 0.2807594838768545 ], "ocr": false, "ocr_confidence": 1, "text": "providers operating in those countries and, in some instances, local government regulations. Such determinations are typically based on " }, { "bbox": [ 0.02982111849816017, 0.2833806818181818, 0.9411451551649306, 0.29469885007299557 ], "ocr": false, "ocr_confidence": 1, "text": "economic criteria and the service provider’s evaluation of each technology’s ability to provide the features and functionality required for its " }, { "bbox": [ 0.029463721256630094, 0.297471634065262, 0.9567891039879494, 0.30878980232007575 ], "ocr": false, "ocr_confidence": 1, "text": "business plan. More than two decades ago, the European Community developed regulations requiring the use of the GSM standard, a TDMA\u0002" }, { "bbox": [ 0.02946377112195383, 0.3114110002614031, 0.9160341749004289, 0.32272916851621686 ], "ocr": false, "ocr_confidence": 1, "text": "based, 2G technology. In addition, there are several versions of CDMA technology that have been adopted worldwide as public cellular " }, { "bbox": [ 0.030245082830291946, 0.32535036645754417, 0.9609365026935254, 0.33666853471235797 ], "ocr": false, "ocr_confidence": 1, "text": "standards. The first version, known as cdmaOne, is a 2G cellular technology that was first commercially deployed in the mid-1990s. The other " }, { "bbox": [ 0.030245082830291946, 0.3392898097182765, 0.45941466287849775, 0.3506079779730903 ], "ocr": false, "ocr_confidence": 1, "text": "subsequent versions of CDMA are referred to as 3G technologies. " }, { "bbox": [ 0.05395900501924403, 0.3607552268288352, 0.9398771797130311, 0.37227461073133683 ], "ocr": false, "ocr_confidence": 1, "text": "Second Generation. Compared to first generation analog systems, 2G digital technology provided for significantly enhanced efficiency " }, { "bbox": [ 0.02975724101845735, 0.3748958472049598, 0.9267901252297794, 0.3862140154597735 ], "ocr": false, "ocr_confidence": 1, "text": "within a fixed spectrum resulting in greatly increased voice capacity. 2G technologies also enabled numerous enhanced services, but data " }, { "bbox": [ 0.0302428918726304, 0.38883525193339646, 0.955836177651399, 0.4001534201882102 ], "ocr": false, "ocr_confidence": 1, "text": "services were generally limited to low speed transmission rates. The main 2G digital cellular technologies in use today are called cdmaOne or " }, { "bbox": [ 0.029706867691738154, 0.4029260885835898, 0.9592393862655739, 0.41424425683840355 ], "ocr": false, "ocr_confidence": 1, "text": "IS-95A/B, a technology largely developed and patented by us, and GSM, a form of TDMA. Many GSM operators deployed 2G mobile packet " }, { "bbox": [ 0.029851464664234835, 0.4168654933120265, 0.9577159008948631, 0.4281836615668403 ], "ocr": false, "ocr_confidence": 1, "text": "data technologies, such as General Packet Radio Service (GPRS) and Enhanced Data Rates for Global Evolution (EDGE) in areas serviced by " }, { "bbox": [ 0.0299326796936833, 0.43089290580364187, 0.06764701145147187, 0.43955762458570075 ], "ocr": false, "ocr_confidence": 1, "text": "GSM. " }, { "bbox": [ 0.05473489075704338, 0.4521188061646741, 0.9157107484106924, 0.46363819006717566 ], "ocr": false, "ocr_confidence": 1, "text": "Third Generation. As a result of demand for wireless networks that simultaneously carry both high speed data and voice traffic, the " }, { "bbox": [ 0.029704779581306805, 0.46641093552714646, 0.9094789791730494, 0.4777291037819602 ], "ocr": false, "ocr_confidence": 1, "text": "International Telecommunications Union (ITU), a standards setting organization, adopted the 3G standard known as IMT-2000, which " }, { "bbox": [ 0.029818531734491484, 0.48035034025558315, 0.9385753955716402, 0.49166850851039695 ], "ocr": false, "ocr_confidence": 1, "text": "encompasses six terrestrial operating radio interfaces, each of which incorporates our intellectual property. Two are TDMA-based, three of " }, { "bbox": [ 0.02962520699095882, 0.4942897449840199, 0.914927663366779, 0.5056079132388337 ], "ocr": false, "ocr_confidence": 1, "text": "them are CDMA-based and the other is OFDMA-based. The three CDMA-based 3G technologies are known commonly throughout the " }, { "bbox": [ 0.02975510304270227, 0.5083806201665089, 0.16135612188601026, 0.5196987884213226 ], "ocr": false, "ocr_confidence": 1, "text": "wireless industry as: " }, { "bbox": [ 0.05000106337802862, 0.6520169576009115, 0.9266939848856209, 0.6633351258557252 ], "ocr": false, "ocr_confidence": 1, "text": "Even though the OFDMA technologies are part of the IMT-2000 standard, to differentiate them from the 3G CDMA technologies, the " }, { "bbox": [ 0.029966313854541654, 0.666107871315696, 0.43470654456444036, 0.6774260395705097 ], "ocr": false, "ocr_confidence": 1, "text": "OFDMA technologies are often called fourth generation (4G). " }, { "bbox": [ 0.05048840965320862, 0.6876230336198903, 0.9351301006242341, 0.6989412018747041 ], "ocr": false, "ocr_confidence": 1, "text": "Some of the advantages of 3G CDMA technology over 2G technologies include increased network capacity, improved user experience, " }, { "bbox": [ 0.02982017417359196, 0.7015624190821792, 0.9642032797819649, 0.712880587336993 ], "ocr": false, "ocr_confidence": 1, "text": "compatibility with internet protocols, higher capacity for data and faster access to data (Internet) and higher data throughput rates. CDMA2000 " }, { "bbox": [ 0.03001349891712463, 0.7156533327969637, 0.915685716018178, 0.7269715010517775 ], "ocr": false, "ocr_confidence": 1, "text": "and WCDMA are widely deployed today in wireless networks throughout the world. TD-SCDMA has been deployed in China. EV-DO " }, { "bbox": [ 0.02968788770289203, 0.7295926797269571, 0.9697391285615808, 0.7409108479817709 ], "ocr": false, "ocr_confidence": 1, "text": "Release B in the CDMA2000 family was launched in 2010; Release 7 of HSPA+ was launched in 2009; and Release 8 of HSPA+ was launched " }, { "bbox": [ 0.02967164407368579, 0.743532065189246, 0.08176351061054304, 0.7522847917344835 ], "ocr": false, "ocr_confidence": 1, "text": "in 2010. " }, { "bbox": [ 0.49607634700201697, 0.7755897791698726, 0.5035481671102686, 0.7840909861555003 ], "ocr": false, "ocr_confidence": 1, "text": "4 " }, { "bbox": [ 0.0864508323420107, 0.5324738242409446, 0.09099891139011757, 0.5359950210108901 ], "ocr": false, "ocr_confidence": 1, "text": "• " }, { "bbox": [ 0.11457241282743566, 0.5298957824707031, 0.9192033156849979, 0.5412139507255169 ], "ocr": false, "ocr_confidence": 1, "text": "CDMA2000, including 1X (including revisions A through E), 1xEV-DO (EV-DO, or Evolution Data Optimized) including " }, { "bbox": [ 0.11419883428835402, 0.5438351871991398, 0.36562783733692045, 0.5551533554539536 ], "ocr": false, "ocr_confidence": 1, "text": "revisions A through C, developed by 3 " }, { "bbox": [ 0.3710380005680658, 0.5431369820026436, 0.38037505804323685, 0.5493230338048454 ], "ocr": false, "ocr_confidence": 1, "text": "rd " }, { "bbox": [ 0.38404903536528545, 0.5438351871991398, 0.6837531195746528, 0.5551533554539536 ], "ocr": false, "ocr_confidence": 1, "text": "Generation Partnership Project Two (3GPP2); " }, { "bbox": [ 0.08645089467366536, 0.5688374451916627, 0.09099897372177224, 0.5723586419616082 ], "ocr": false, "ocr_confidence": 1, "text": "• " }, { "bbox": [ 0.11419897141799427, 0.5662594034214212, 0.9440542981515523, 0.577577571676235 ], "ocr": false, "ocr_confidence": 1, "text": "Wideband CDMA (WCDMA), also known as Universal Mobile Telecommunications Systems (UMTS), including High Speed " }, { "bbox": [ 0.11437901016933466, 0.5801988081498579, 0.3270021825054892, 0.5915044148763021 ], "ocr": false, "ocr_confidence": 1, "text": "Packet Access (HSPA), part of 3 " }, { "bbox": [ 0.3324105505849801, 0.5793491324993095, 0.34174760806015114, 0.5855351843015112 ], "ocr": false, "ocr_confidence": 1, "text": "rd " }, { "bbox": [ 0.3454216103148616, 0.5801988081498579, 0.9572847653058619, 0.5915169764046717 ], "ocr": false, "ocr_confidence": 1, "text": "Generation Partnership Project (3GPP) Release 5 and 6, and HSPA+, part of 3GPP Release 7, " }, { "bbox": [ 0.11502723444521037, 0.594138174345999, 0.25052418428308826, 0.6054563426008128 ], "ocr": false, "ocr_confidence": 1, "text": "8, 9 and beyond; and " }, { "bbox": [ 0.0864508323420107, 0.6191404708708176, 0.09099891139011757, 0.6226616676407631 ], "ocr": false, "ocr_confidence": 1, "text": "• " }, { "bbox": [ 0.11457241282743566, 0.6165624291005761, 0.9679750928691789, 0.6278805973553898 ], "ocr": false, "ocr_confidence": 1, "text": "CDMA Time Division Duplex (TDD), of which there are currently two versions, Time Division Duplex-CDMA (TD-CDMA) and " }, { "bbox": [ 0.11439374537249795, 0.6305017952967171, 0.20866213281170215, 0.6392545218419547 ], "ocr": false, "ocr_confidence": 1, "text": "Time Division" }, { "bbox": [ 0.20965301912594464, 0.6358590559525923, 0.2136488272473703, 0.6366513184826783 ], "ocr": false, "ocr_confidence": 1, "text": "-" }, { "bbox": [ 0.2151919346229703, 0.6305017952967171, 0.8190183951184641, 0.6418199635515309 ], "ocr": false, "ocr_confidence": 1, "text": "Synchronous CDMA (TD-SCDMA). Both are part of the specifications developed by 3GPP. " } ]
[ { "bbox": [ 0.02755785611719867, 0.024164835611979168, 0.15400758132435918, 0.03474788473110006 ], "data": [], "index_in_doc": 127, "label": "section_header", "text": "Table of Contents" }, { "bbox": [ 0.0278575124304279, 0.05573696560329861, 0.9649022918900633, 0.09728248673255997 ], "data": [], "index_in_doc": 128, "label": "text", "text": "categories, such as e-readers, have also emerged over the last couple of years. These new devices take advantage of the capabilities of 3G networks to download digital books, newspapers and magazines anywhere. Other emerging device categories, such as connected media tablets, digital picture frames and machine to machine communication, will help further drive global demand for 3G." }, { "bbox": [ 0.02797600490595001, 0.10555352105034722, 0.9702332939197814, 0.17463460594716698 ], "data": [], "index_in_doc": 129, "label": "text", "text": "Demand for wireless voice and data services in emerging regions is helping to increase global demand for 3G. Emerging regions still have relatively low penetration rates of wireless telecommunications services. 3G provides an efficient way for operators to offer both voice and data services to address these demands, and since fixed broadband penetration is very low in these regions, 3G presents a cost effective means of providing broadband capabilities to consumers. According to Informa Telecoms & Media, more than 50% of 3G handset shipments will go to emerging regions in 2011." }, { "bbox": [ 0.027848206314386104, 0.19072253294665403, 0.1842823028564453, 0.2031844167998343 ], "data": [], "index_in_doc": 130, "label": "section_header", "text": "Wireless Technologies" }, { "bbox": [ 0.0279286203820721, 0.21250052403922032, 0.9609365026935254, 0.3506079779730903 ], "data": [], "index_in_doc": 131, "label": "text", "text": "The significant growth in the use of wireless devices worldwide, such as smartphones, and demand for data services and applications requires constant innovation to further improve the user experience, expand capacity and enable dense deployments of low power nodes, such as femtocells. To meet these requirements, progressive generations of wireless telecommunications technology standards have evolved. The use of wireless standards for mobile communications within individual countries is generally determined by the telecommunication service providers operating in those countries and, in some instances, local government regulations. Such determinations are typically based on economic criteria and the service provider's evaluation of each technology's ability to provide the features and functionality required for its business plan. More than two decades ago, the European Community developed regulations requiring the use of the GSM standard, a TDMAbased, 2G technology. In addition, there are several versions of CDMA technology that have been adopted worldwide as public cellular standards. The first version, known as cdmaOne, is a 2G cellular technology that was first commercially deployed in the mid-1990s. The other subsequent versions of CDMA are referred to as 3G technologies." }, { "bbox": [ 0.028112947551253573, 0.36021839488636365, 0.9596881741791768, 0.43982503871725065 ], "data": [], "index_in_doc": 132, "label": "text", "text": "Second Generation. Compared to first generation analog systems, 2G digital technology provided for significantly enhanced efficiency within a fixed spectrum resulting in greatly increased voice capacity. 2G technologies also enabled numerous enhanced services, but data services were generally limited to low speed transmission rates. The main 2G digital cellular technologies in use today are called cdmaOne or IS-95A/B, a technology largely developed and patented by us, and GSM, a form of TDMA. Many GSM operators deployed 2G mobile packet data technologies, such as General Packet Radio Service (GPRS) and Enhanced Data Rates for Global Evolution (EDGE) in areas serviced by GSM." }, { "bbox": [ 0.027900309344522315, 0.45147250397036776, 0.9396854974085989, 0.5196987884213226 ], "data": [], "index_in_doc": 133, "label": "text", "text": "Third Generation. As a result of demand for wireless networks that simultaneously carry both high speed data and voice traffic, the International Telecommunications Union (ITU), a standards setting organization, adopted the 3G standard known as IMT-2000, which encompasses six terrestrial operating radio interfaces, each of which incorporates our intellectual property. Two are TDMA-based, three of them are CDMA-based and the other is OFDMA-based. The three CDMA-based 3G technologies are known commonly throughout the wireless industry as:" }, { "bbox": [ 0.08439552706051497, 0.5289752459285235, 0.920269735498366, 0.5553660537257339 ], "data": [], "index_in_doc": 134, "label": "text", "text": "- · CDMA2000, including 1X (including revisions A through E), 1xEV-DO (EV-DO, or Evolution Data Optimized) including revisions A through C, developed by 3 rd Generation Partnership Project Two (3GPP2);" }, { "bbox": [ 0.08437705195807164, 0.5649745440242266, 0.9586871776705473, 0.6056758225566209 ], "data": [], "index_in_doc": 135, "label": "text", "text": "- · Wideband CDMA (WCDMA), also known as Universal Mobile Telecommunications Systems (UMTS), including High Speed Packet Access (HSPA), part of 3 rd Generation Partnership Project (3GPP) Release 5 and 6, and HSPA+, part of 3GPP Release 7, 8, 9 and beyond; and" }, { "bbox": [ 0.08369171541500715, 0.6155537306660354, 0.9680161818959354, 0.6419674266468395 ], "data": [], "index_in_doc": 136, "label": "text", "text": "- · CDMA Time Division Duplex (TDD), of which there are currently two versions, Time Division Duplex-CDMA (TD-CDMA) and Time Division -Synchronous CDMA (TD-SCDMA). Both are part of the specifications developed by 3GPP." }, { "bbox": [ 0.028328805187948388, 0.6511594984266493, 0.9273734497868158, 0.6779231832485006 ], "data": [], "index_in_doc": 137, "label": "text", "text": "Even though the OFDMA technologies are part of the IMT-2000 standard, to differentiate them from the 3G CDMA technologies, the OFDMA technologies are often called fourth generation (4G)." }, { "bbox": [ 0.02798294865227992, 0.6864493013632418, 0.9697391285615808, 0.7531965621794113 ], "data": [], "index_in_doc": 138, "label": "text", "text": "Some of the advantages of 3G CDMA technology over 2G technologies include increased network capacity, improved user experience, compatibility with internet protocols, higher capacity for data and faster access to data (Internet) and higher data throughput rates. CDMA2000 and WCDMA are widely deployed today in wireless networks throughout the world. TD-SCDMA has been deployed in China. EV-DO Release B in the CDMA2000 family was launched in 2010; Release 7 of HSPA+ was launched in 2009; and Release 8 of HSPA+ was launched in 2010." }, { "bbox": [ 0.4943717507755055, 0.7747835101503314, 0.5041125428442862, 0.7850843487363873 ], "data": [], "index_in_doc": 139, "label": "page_footer", "text": "4" } ]
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