brokerage asset management 6% citi holdings december 31 2009 retail brokerage asset management businesses.
 2009 divestitures smith barney nikko cordial securities.
 31 had $ 35 billion assets $ 26 billion 49% interest mssb jv 13 billion investment loans $ 9 billion asset management insurance businesses half transferred latam rcb first quarter 2010.
 morgan stanley purchase citi remaining stake mssb jv over three years 2012.
 2009 results include $. billion gain $. billion sale smith barney.
 % change.
.
.
.
 net interest revenue $ 432  $ 1224 $ 908 35%
 non-interest revenue 14703
 interest expense $ 15135 $ 8423 $ 10659 80% 21
operating expenses $ 3350 $ 9236 $ 7960 64 % 16%
 net credit losses $ 3 $ 10 2014 70 %
 credit reserve 36 100%
 unfunded lending commitments 2014
 benefits claims $ 155  $ 205  $ 154 33%
 provisions loan losses benefits claims $ 189  $ 223 $ 158 41%
 income operations before taxes $ 11596 $ 2541
 taxes 4489 -272
 operations $ 7107 $ -764 $ 1707
 noncontrolling interests -179
 $ 7095 $ -585 $ 1672
 assets $ 35  $ 58 4% 4
 eop deposits
.
 interest expense increased 80% $ 11. 1 billion pretax gain.mssb jv transaction $ 320 million pretax gain managed futures.
 revenue decreased smith barney nikko asset management retail investments.
 $ 347 million gain citistreet settlement auction securities 393 million.
 operating expenses decreased 64% smith barney nikko management engineering 2008 one-time expenses $. 9 billion intangible impairment $. 2 billion restructuring. write- downs.
 loan losses benefits claims decreased 15% 50 million reserve million.
 assets decreased 40% sales nikko management managed futures business. smith barney assets.
.
 interest expense decreased 21% lower revenues smith barney nikko asset management higher markdowns investments.
 operating expenses increased 16% $. billion impairment nikko asset. billion restructuring $. billion write-downs.
loan losses benefits claims increased 65 million $ 52 million.
 assets increased 4%.


september 2015 company treasury hedges $ 1. billion reducing risk 10-year treasury yield.
 cash flow hedges.
 october 13 2015 $ 4. 5 billion terminated treasury contracts cash settlement $ 16 million earnings interest expense ten years.
 business operations.
 translation local currency balances subsidiaries transaction gains losses intercompany loans transactions.
 activities foreign currency forward contracts non- derivative investment hedges.
.
 exchange risks non.
 operations.
 exchange rates revenues.
.
 2017 2016 2015 generated $ 1830 million $ 1909 million $ 1336 million revenues.
.
 major currencies brazilian real euro british pound sterling indian rupee.
10% exchange rates revenues december 31 2017 2016 2015 millions.
 currency 2016 2015
 pound sterling $ 42 $ 47 $ 34
 euro
 real
 indian rupee
 increase decrease $ 130 $ 129 $ 106
 impacted currency fluctuations international operations revenues expenses local currency reduces foreign exchange risk.
 revenues $ 16 million favorable $ 100 million unfavorable net earnings $ 2 million favorable $ 10 million unfavorable impact 2017 2016.
.
 2018 minimal foreign currency impact earnings.
 foreign exchange risk management policy permits derivative instruments contracts options reduce volatility.
 instruments.
 periodically forward exchange contracts hedge.
 december 31 2017.
 utilizes non-derivative investment hedges reduce volatility currency.


goldman sachs group.
 subsidiaries financial statements level 3 financial assets.
 millions december 2017 2016
 cash instruments $ 15395 $ 18035
 derivatives
 financial assets
 $ 19201 $ 23280
 3 assets 2017 decreased 2016 instruments.
 notes 6 8 unrealized gains losses liabilities transfers.
.
.
 government obligations.
 mortgage-backed loans corporate loans debt securities equity securities investments non-derivative instruments.
 types instruments fair value hierarchy valuation techniques.
 note 5 fair value measurement policies.
 level 1 cash instruments money market instruments.
 government obligations non.
 obligations corporate debt securities traded equities.
 valued quoted prices active markets.
 markets daily trading volume.
.
level 2 cash instruments include money market instruments government obligations non.
 obligations mortgage-backed loans corporate loans state municipal obligations restricted equities commodities lending commitments.
 valuations verified to quoted prices recent trading activity broker quotations alternative pricing sources transparency.
 consideration to quotations. market activity.
 valuation adjustments if transfer restrictions for premiums liquidity discounts.
 adjustments based on market evidence.
 level 3 cash instruments.
 valued at transaction price best estimate fair value.
 other methodologies to determine fair value.
 when corroborated by evidence values sales financial assets.
 techniques 3 cash instruments based on discounted cash flow techniques.
 loans securities backed by commercial real estate.
 collateralized by varying levels subordination.
inputs determined goldman sachs 2017


borrowings extended non-recourse.
 no credit market risk permit regulatory leverage capital calculations.
 interest rate set federal reserve bank revenue spread difference yield rate.
 earned net interest revenue $ 68 million.
 commercial paper program $ 3 billion maturities 270 days.
 2008 2007 $ 2. 59 billion 2. 36 billion.
 state street bank issue bank notes $ 5 billion $ 2. 48 billion senior notes temporary liquidity guarantee program $ 1 billion subordinated bank notes.
 no notes outstanding $ 5 billion available issuance.
 line of credit $ 800 million canadian securities processing operations.
 no termination cancelable.
 no balance due.
.
 reduce expenses long term growth.
 restructuring charges $ 306 million consolidated statement income.
plan involuntary reduction 7% global workforce first quarter 2009.
 lease software license terminations restructuring agreements technology.
 restructuring $ 306 million $ 243 million severance benefits outplacement services 2100 employees $ 49 million future lease obligations write $ 23 million impairment intangible assets $ 10 million information technology $ 4 million restructuring costs.
 severance $ 47 million accelerated vesting equity-based compensation.
 december 2008 620 employees involuntarily terminated.
 activity balance sheet reserve 2008.
 severance lease write-offs information technology.
 $ 250 $ 42 306
 payments adjustments
 balance december 31 2008 $ 230 $