liabilities associated with a Supreme Court ruling.
The Companys earnings from its investment in Japan decreased due to an increase in losses on embedded derivatives associated with variable annuity riders, an increase in DAC amortization related to market performance and the impact of a refinement in assumptions for the guaranteed annuity business partially offset by the favorable impact from the utilization of the fair value option for certain fixed annuities.
The Companys results were also impacted by a decrease in earnings from assumed reinsurance, offset by an increase in income from hedging activities associated with Japans guaranteed annuity benefits.
These decreases were offset by an increase in net investment gains which was due to an increase from gains on derivatives primarily in Japan partially offset by losses primarily on fixed maturity investments.
There was also an increase in income from continuing operations relating to Hong Kong associated with the remaining 50% interest in MetLife Fubon acquired in the in the second quarter of 2007.
The Auto & Home segments decrease in income from continuing operations was primarily attributable to an increase in net investment losses and an increase in policyholder benefits and claims.
The increase in net investment losses was due to an increase in losses on fixed maturity and equity securities.
The increase in policyholder benefits and claims was comprised primarily of an increase in catastrophe losses offset by a decrease in non-catastrophe policyholder benefits and claims.
Offsetting these decreases was an increase in premiums.
Income from continuing operations for Corporate & Other decreased due to lower net investment income as well as higher corporate expenses, interest expense, legal costs and interest credited to policyholder account balances.
These decreases were offset by an increase in net investment gains, higher other revenues, lower interest on uncertain tax positions, and lower interest credited to bankholder deposits.
The increase in net investment gains was primarily due to an elimination of losses which were recognized by other segments, partially offset by losses on fixed maturity securities and derivatives.


| December 31,(in millions) 2012 2011 | Alternative investments(a) | Mutual funds | Investment real estate(b) | Aircraft asset investments(c) | Life settlement contracts | Retained interest in AIA | All other investments | Total |


Gain or loss on ownership change in MAP results from contributions to MAP of certain environmental capital expenditures and leased property acquisitions funded by Marathon and Ashland.
In accordance with MAP’s limited liability company agreement, in certain instances, environmental capital expenditures and acquisitions of leased properties are funded by the original contributor of the assets, but no change in ownership interest may result from these contributions.
An excess of Ashland funded improvements over Marathon funded improvements results in a net gain and an excess of Marathon funded improvements over Ashland funded improvements results in a net loss.


| December 31, | (in thousands, except percentages) | Commercial risk-based - group | Commercial risk-based - individual | Commercial fee-based | Fee-based TRICARE | Total commercial | Medicare Advantage | Medicaid | Medicare Supplement (Standardized) | Total public and senior | Total UnitedHealthcare - domestic medical | International | Total UnitedHealthcare - medical | Supplemental Data: | Medicare Part D stand-alone | Moody’s | Ratings | Senior unsecured debt | Commercial paper | (in millions) | Redeemable noncontrolling interests, beginning of period | Net earnings | Acquisitions | Redemptions | Distributions | Fair value and other adjustments | Redeemable noncontrolling interests, end of period |


| Years Ended December 31, | 2017 | (unaudited) | Net sales | Operating profit(a) | Earnings per common share | Basic | Continuing operations | Discontinued operations | Basic earnings per common share | Diluted | Continuing operations | Discontinued operations | Diluted earnings per common share |


| As of December 31, 2013 2012 2011 2010 2009 | (In billions) | North America | Europe/Middle East/Africa | Asia/Pacific | Total Assets Under Management | Years Ended December 31, | (In billions) | Balance at beginning of year | Net new (lost) business | Sales of U.S. Treasury portfolio of asset-backed securities-1 | Assets added from Bank of Ireland Asset Management acquisition | Market appreciation (depreciation) | Balance at end of year |


Pro Forma Financial Information The following unaudited pro forma fi nancial information presents the combined results of our operations with


| 2014 $610 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total minimum lease payments |


| December 31, 2006 December 31, 2005 | Amount | ($ in millions) | Not subject to discretionary withdrawal provisions | Subject to discretionary withdrawal, with adjustment: | With market value adjustment | At market value | At contract value, less surrender charge of 5% or more | Subtotal | Subject to discretionary withdrawal at contract value with no surrender charge or surrender charge of less than 5% | Total annuity reserves and deposit liabilities | Highway revenue equipment | Containers | Chassis | Total highway revenue equipment |


| Contractual Obligations Total Less Than   One Year More Than   One Year and   Less Than   Three Years More Than   Three Years   and Less   Than Five   Years More Than   Five Years | (In millions) | Future policy benefits | Policyholder account balances | Other policyholder liabilities | Short-term debt | Long-term debt | Collateral financing arrangements | Junior subordinated debt securities | Payables for collateral under securities loaned and other transactions | Commitments to lend funds | Operating leases | Other | Total |


| Years Ended December 31, Variances 2012 vs. 2011 Variances 2011 vs. 2010 | Financial Results | (Millions of dollars) | Gas sales | Transportation revenues | Cost of gas | Net margin, excluding other revenues | Other revenues | Net margin | Operating costs | Depreciation and amortization | Operating income | Capital expenditures | Years Ended December 31 | Net Margin, Excluding Other Revenues | Gas sales | Residential | Commercial | Industrial | Wholesale/public authority | Net margin on gas sales | Transportation margin | Net margin, excluding other revenues |


| Defined benefit pension plans | December 31, | (in millions) | Net gain/(loss) | Prior service credit/(cost) | Accumulated other comprehensive income/(loss), pretax, end of year |


| (in millions) 2009 2008 2007 | Loans retained | Loans held-for-sale | Total loans | Other assets | Accounts payable andother liabilities | Total nonrecurringfairvalue gains/(losses) |


13.
STOCKHOLDERS’ EQUITY Warrants—In August 2005, the Company completed its merger with SpectraSite, Inc.  and assumed outstanding warrants to purchase shares of SpectraSite, Inc.  common stock.
As of the merger completion date, each warrant was exercisable for two shares of SpectraSite, Inc.  common stock at an exercise price of $32 per warrant.
Upon completion of the merger, each warrant to purchase shares of SpectraSite, Inc.  common stock automatically converted into a warrant to purchase shares of the Company’s Common Stock, such that upon exercise of each warrant, the holder has a right to receive 3.575 shares of the Company’s Common Stock in lieu of each share of SpectraSite, Inc.  common stock that would have been receivable under each assumed warrant prior to the merger.
Upon completion of the Company’s merger with SpectraSite, Inc. , these warrants were exercisable for approximately 6.8 million shares of Common Stock.
Of these warrants, warrants to purchase approximately none and 1.7 million shares of Common Stock remained outstanding as of December 31, 2010 and 2009, respectively.
These warrants expired on February 10, 2010.
Stock Repurchase Program—During the year ended December 31, 2010, the Company repurchased an aggregate of approximately 9.3 million shares of its Common Stock for an aggregate of $420.8 million, including commissions and fees, of which $418.6 million was paid in cash prior to December 31, 2010 and $2.2 million was included in accounts payable and accrued expenses in the accompanying consolidated balance sheet as of December 31, 2010, pursuant to its publicly announced stock repurchase program, as described below.


| (in millions) Retail Electric Wholesale Electric Retail Natural Gas Other Total Revenues | 2017 | Electric Utilities and Infrastructure | Gas Utilities and Infrastructure | Commercial Renewables | Total Reportable Segments | 2016 | Electric Utilities and Infrastructure | Gas Utilities and Infrastructure | Commercial Renewables | Total Reportable Segments | 2015 | Electric Utilities and Infrastructure | Gas Utilities and Infrastructure | Commercial Renewables | Total Reportable Segments |


Note 12 – Stockholders’ Equity At December 31, 2016 and 2015, our authorized capital was composed of 1.5 billion shares of common stock and 50 million shares of series preferred stock.
Of the 290 million shares of common stock issued and outstanding as of December 31, 2016, 289 million shares were considered outstanding for consolidated balance sheet presentation purposes; the remaining shares were held in a separate trust.
Of the 305 million shares of common stock issued and outstanding as of December 31, 2015, 303 million shares were considered outstanding for consolidated balance sheet presentation purposes; the remaining shares were held in a separate trust.
No shares of preferred stock were issued and outstanding at December 31, 2016 or 2015.
Repurchases of Common Stock During 2016, we repurchased 8.9 million shares of our common stock for $2.1 billion.
During 2015 and 2014, we paid $3.1 billion and $1.9 billion to repurchase 15.2 million and 11.5 million shares of our common stock.
On September 22, 2016, our Board of Directors approved a $2.0 billion increase to our share repurchase program.
Inclusive of this increase, the total remaining authorization for future common share repurchases under our program was $3.5 billion as of December 31, 2016.
As we repurchase our common shares, we reduce common stock for the $1 of par value of the shares repurchased, with the excess purchase price over par value recorded as a reduction of additional paid-in capital.
Due to the volume of repurchases made under our share repurchase program, additional paid-in capital was reduced to zero, with the remainder of the excess purchase price over par value of $1.7 billion and $2.4 billion recorded as a reduction of retained earnings in 2016 and 2015.
We paid dividends totaling $2.0 billion ($6.77 per share) in 2016, $1.9 billion ($6.15 per share) in 2015 and $1.8 billion ($5.49 per share) in 2014.
We have increased our quarterly dividend rate in each of the last three years, including a 10% increase in the quarterly dividend rate in the fourth quarter of 2016.
We declared quarterly dividends of $1.65 per share during each of the first three quarters of 2016 and $1.82 per share during the fourth quarter of 2016; $1.50 per share during each of the first three quarters of 2015 and $1.65 per share during the fourth quarter of 2015; and $1.33 per share during each of the first three quarters of 2014 and $1.50 per share during the fourth quarter of 2014.


In addition to the acquisition of Allied in December 2008, we acquired various other solid waste businesses during the years ended December 31, 2008, and 2007.
The aggregate purchase price we paid for these transactions was $13.4 million and $4.4 million, respectively.
In November 2007, we divested of our Texas-based compost, mulch and soil business and received proceeds of $36.5 million.
A gain of $12.5 million was recorded in 2007 on this divestiture.
Consolidated Results of Operations Years Ended December 31, 2009, 2008 and 2007 The following table summarizes our operating revenue, costs and expenses in millions of dollars and as a percentage of our revenue for the years ended December 31, 2009, 2008 and 2007:


| Calendar year: Pre-tax catastrophe losses | (Dollars in millions) | 2017 | 2016 | 2015 | 2014 | 2013 |


SG&A Expenses SG&A expenses for Fiscal 2011 were $2,404.6 million, or 39.0% of net sales, as compared to $2,376.4 million, or 40.1% of net sales, for Fiscal 2010, a decrease of 114 basis points.
This decrease as a percentage of net sales was primarily due to reduced incentive compensation as a result of lower comparable store sales growth compared to the prior year, store labor leverage resulting from productivity improvements driven by our new variable customer driven labor model, occupancy cost leverage and a decrease in administrative expenses partially offset by increased strategic investments and advertising.
These investments included spending in the e-commerce and Commercial areas of our business in support of our Service Leadership and Superior Availability strategies.


| At December 31, 2014 | Years to Maturity | Credit Rating-1 | (dollars in millions) | AAA | AA | A | BBB | Investment grade | Non-investment grade | Total |


| U.S. Plans Non-U.S. Plans | (DOLLARS IN THOUSANDS) | Components of net periodic benefit cost | Service cost for benefits earned | Interest cost on projected benefit obligation | Expected return on plan assets | Net amortization and deferrals | Settlement and curtailment | Special termination benefits | Net periodic benefit cost | Defined contribution and other retirement plans | Total expense | Changes in plan assets and benefit obligations recognized in OCI | Net actuarial loss | Recognized actuarial loss | Prior service cost | Recognized prior service cost | Currency translation adjustment | Total recognized in OCI (before tax effects) |


| December 31 | Outstandings | (Dollars in millions) | California | Texas | Florida | New York | Georgia | OtherU.S./Non-U.S. | Total direct/indirect loans |


SEGMENT DATA We design, develop, manufacture and market orthopaedic and dental reconstructive implants, spinal implants, trauma products and related surgical products which include surgical supplies and instruments designed to aid in orthopaedic surgical procedures and post-operation rehabilitation.
We also provide other healthcare-related services.
Revenue related to these services currently represents less than 1 percent of our total net sales.
We manage operations through three major geographic segments – the Americas, which is comprised principally of the United States and includes other North, Central and South American markets; Europe, which is comprised principally of Europe and includes the Middle East and Africa; and Asia Pacific, which is comprised primarily of Japan and includes other Asian and Pacific markets.
This structure is the basis for our reportable segment information discussed below.
Management evaluates operating segment performance based upon segment operating profit exclusive of operating expenses pertaining to global operations and corporate expenses, share-based compensation expense, settlement, certain claims, acquisition, integration and other expenses, inventory step-up, in-process research and development write-offs and intangible asset amortization expense.
Global operations include research, development engineering, medical education, brand management, corporate legal, finance, and human resource functions, and U. S.  and Puerto Rico-based manufacturing operations and logistics.
Intercompany transactions have been eliminated from segment operating profit.
Management reviews accounts receivable, inventory, property, plant and equipment, goodwill and intangible assets by reportable segment exclusive of U.
S and Puerto Rico-based manufacturing operations and logistics and corporate assets.


PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 20.
FAIR VALUE OF ASSETS AND LIABILITIES (continued) sub-prime mortgages was an inactive market, as discussed in detail above.
In addition to these sub-prime securities, transfers into Level 3 for Fixed Maturities Available for SaleCorporate Securities andAsset-Backed Securities as well as Trading Account Assets Supporting Insurance LiabilitiesCorporate Securities andAsset-Backed Securities included transfers resulting from the use of unobservable inputs within valuation methodologies and the use of broker quotes (that could not be validated) when previously, information from third party pricing services (that could be validated) or models with observable inputs were utilized.
Transfers into Level 3 for Fixed Maturities, Available for SaleCommercial Mortgage-Backed securities for the year ended December 31, 2009, is primarily the result of over-riding the third party pricing information downward with internally developed valuations for certain securities held in the Japanese insurance operations portfolio.
Transfers into Level 3 for Commercial Mortgage and Other Loans for the year ended December 31, 2009, is primarily due to downward credit migration of these loans.
The downgrade in loans has resulted in the utilization of higher credit spreads, that are internally developed and not observable in the market place.
This increase in credit spreads is now considered a significant input in the fair value calculation for these loans.
Transfers out of level 3 for Fixed Maturities Available for SaleForeign Government Bonds,Corporate Securities andResidential Mortgage-Backed Securities as well as Trading Account Assets Supporting Insurance LiabilitiesCorporate Securities were primarily due to the use of observable inputs in valuation methodologies as well as the utilization of pricing service information for certain assets that the Company was able to validate.
The transfers out of Level 3 for Other Trading Account AssetsAsset-Backed Securities were primarily the result of the use of third party pricing for the securities purchased under TALF.
When acquired in the first quarter of 2009, these assets were valued internally using a model.
The following tables provide a summary of the changes in fair value of Level 3 assets and liabilities for the year ended December 31, 2008, as well as the portion of gains or losses included in income for the year ended December 31, 2008 attributable to unrealized gains or losses related to those assets and liabilities still held at December 31, 2008.


(1) At December 31, 2012, approximately 4.9 million awards are expected to vest and 0.6 million awards have vested but have not been converted.
The Company values restricted stock and RSUs at their grant-date fair value as measured by BlackRocks common stock price.
The total fair market value of RSUs granted to employees during 2010 and 2011 was $751 million and $477 million, respectively.
The total fair market value of RSUs converted to common stock during 2012, 2011 and 2010 was $297 million, $553 million and $219 million, respectively.
At December 31, 2012, the intrinsic value of outstanding RSUs was $1.2 billion.
Long-Term Borrowings.
The carrying value of long-term borrowings at December 31, 2015 included the following


Simon Property Group, Inc.  Simon Property Group, L. P.  Notes to Consolidated Financial Statements (Dollars in thousands, except share, per share, unit and per unit amounts and where indicated as in millions or billions) 102 Management Fees and Other Revenues Management fees and other revenues are generally received from our unconsolidated joint venture properties as well as third parties.
Management fee revenue is earned based on a contractual percentage of joint venture property revenue.
Development fee revenue is earned on a contractual percentage of hard costs to develop a property.
Leasing fee revenue is earned on a contractual per square foot charge based on the square footage of current year leasing activity.
We recognize revenue for these services provided when earned based on the underlying activity.
Revenues from insurance premiums charged to unconsolidated properties are recognized on a pro-rata basis over the terms of the policies.
Insurance losses on these policies and our self-insurance for our consolidated properties are reflected in property operating expenses in the accompanying consolidated statements of operations and comprehensive income and include estimates for losses incurred but not reported as well as losses pending settlement.
Estimates for losses are based on evaluations by third-party actuaries and management’s estimates.
Total insurance reserves for our insurance subsidiaries and other self-insurance programs as of December 31, 2016 and 2015 approximated $83.5 million and $88.1 million, respectively, and are included in other liabilities in the consolidated balance sheets.
Information related to the securities included in the investment portfolio of our captive insurance subsidiaries is included within the “Marketable and Non-Marketable Securities” section above.
Allowance for Credit Losses We record a provision for credit losses based on our judgment of a tenant’s creditworthiness, ability to pay and probability of collection.
In addition, we also consider the retail sector in which the tenant operates and our historical collection experience in cases of bankruptcy, if applicable.
Accounts are written off when they are deemed to be no longer collectible.
Presented below is the activity in the allowance for credit losses during the following years:


| 2012 2011 2010 | Net income | Non-cash operating activities(a) | Pension and postretirement plan contributions (UPS-sponsored plans) | Income tax receivables and payables | Changes in working capital and other noncurrent assets and liabilities | Other operating activities | Net cash from operating activities |


| Global Corporate Banking Global Commercial Banking Total | (Dollars in millions) | Revenue | Business Lending | Treasury Services | Total revenue, net of interest expense | Balance Sheet | Average | Total loans and leases | Total deposits | Year end | Total loans and leases | Total deposits |


| Year Ended December 31, | 2006 | Steam Sold (MMlbs) | General | Apartment house | Annual power | Total Steam Delivered to CECONY Customers | Steam Sold ($ in millions) | General | Apartment house | Annual power | Other operating revenues | Total Steam Delivered to CECONY Customers | Average Revenue per Mlb Sold |


| Table 22 Consumer Net Charge-offs and Related Ratios | Net Charge-offs | (Dollars in millions) | Residential mortgage | Home equity | Discontinued real estate | U.S. credit card | Non-U.S. credit card | Direct/Indirect consumer | Other consumer | Total | Table 23 | Outstandings | (Dollars in millions) | Core portfolio | Residential mortgage | Home equity | Legacy Asset Servicing portfolio | Residential mortgage-1 | Home equity | Discontinued real estate-1 | Home loans portfolio | Residential mortgage | Home equity | Discontinued real estate | Total home loans portfolio |


| Parent Subsidiaries Total | (dollars in millions) | Due in 2014 | Due in 2015 | Due in 2016 | Due in 2017 | Due in 2018 | Thereafter | Total |


| 2013 2012 | (in billions) | Beginning balance | Net flows | Market appreciation and other | Ending balance | Advisory wrap account assets ending balance-1 | Average advisory wrap account assets-2 |


| 2015 | Allowance for loan and lease losses, January 1 | Loans and leases charged off | Recoveries of loans and leases previously charged off | Net charge-offs | Write-offs of PCI loans | Provision for loan and lease losses | Other-1 | Allowance for loan and lease losses, December 31 | Reserve for unfunded lending commitments, January 1 | Provision for unfunded lending commitments | Reserve for unfunded lending commitments, December 31 | Allowance for credit losses, December 31 |


Short-term Investments The carrying value of short-term investments, which includes investments with remaining maturities of one year or less, but greater than three months, at the time of purchase was $9.4 billion and $8.4 billion at December 31, 2010 and 2009, respectively.
The Company is exposed to concentrations of credit risk related to securities of the U. S.  government and certain U. S.  government agencies included within short-term investments, which were $4.0 billion and $7.5 billion at December 31, 2010 and 2009, respectively.


| Year ended December 31 Change | Dollars in millions | Noninterest income | Asset management | Consumer services | Corporate services | Residential mortgage | Service charges on deposits | Net gains on sales of securities | Net other-than-temporary impairments | Other | Total noninterest income |


| (Millions)Reportable Business Segments PerformanceCoatings Industrial Coatings Architectural Coatings – EMEA OpticalandSpecialty Materials Commodity Chemicals Glass Corporate / Eliminations / Non- Segment Items -1 Consolidated Totals | 2011 | Net sales to external customers | Intersegment net sales | Total net sales | Segment income | Legacyitems-2 | Interest expense, net of interest income | Acquisition-related gain, net(3) | Corporateunallocated-4 | Income before income taxes | Depreciation and amortization (See Note 1) | Share of net earnings of equity affiliates | Segmentassets-5 | Investment in equity affiliates | Expenditures for property | 2010 | Net sales to external customers | Intersegment net sales | Total net sales | Segment income | Legacyitems-2 | Interest expense, net of interest income | Corporateunallocated-4 | Income before income taxes | Depreciation and amortization (See Note 1) | Share of net earnings (loss) of equity affiliates | Segmentassets-5 | Investment in equity affiliates | Expenditures for property |


Operating, administrative and other expenses increased by $20.7 million, or 9.2%, for the year ended December 31, 2013 as compared to the year ended December 31, 2012.
The increase was primarily driven by higher payroll-related costs, which mainly resulted from increased headcount, primarily in Australia and China, as well as higher consulting, marketing and travel costs.
Foreign currency translation had a $16.6 million positive impact on total operating expenses during the year ended December 31, 2013.
Global Investment Management Revenue increased by $54.5 million, or 11.3%, for the year ended December 31, 2013 as compared to the year ended December 31, 2012, primarily driven by carried interest revenue earned during the year ended December 31, 2013, partially offset by lower asset management fees and rental revenue from consolidated real estate assets.
Foreign currency translation had a $1.7 million positive impact on total revenue during the year ended December 31, 2013.
Operating, administrative and other expenses decreased by $35.2 million, or 9.1%, for the year ended December 31, 2013 as compared to the year ended December 31, 2012.
This decrease was primarily driven by $36.9 million of lower transaction and integration costs associated with the REIM Acquisitions incurred during the year ended December 31, 2013 as well as the impact of $9.3 million of impairment charges incurred during the year ended December 31, 2012, which did not recur during the year ended December 31, 2013.
These items were partially offset by higher bonuses, which resulted from improved operating performance during the year ended December 31, 2013.
Foreign currency translation had a $1.4 million negative impact on total operating expenses during the year ended December 31, 2013.
Total AUM as of December 31, 2013 amounted to $89.1 billion, down 3.2% from year-end 2012, primarily due to asset sales.
A rollforward of our AUM by product type for the year ended December 31, 2013 is as follows (dollars in billions):


| Favorable/(Unfavorable) | Years ended December 31, | In millions | External sales | Intersegment sales | Total sales | Depreciation and amortization | Research, development and engineering expenses | Equity, royalty and interest income from investees | Interest income | Segment EBIT | Percentage Points | Segment EBIT as a percentage of total sales |


| 2014 Change2014 over 2013 2013 Change2013 over 2012 2012 | (In millions, except percentages) | Silicon Systems Group | Applied Global Services | Display | Energy and Environmental Solutions | Total | 2014 | (In millions, except percentages) | Taiwan | China | Korea | Japan | Southeast Asia | Asia Pacific | United States | Europe | Total |


| October 30, 2010 October 31, 2009 | Fair value of forward exchange contracts asset | Fair value of forward exchange contracts after a 10% unfavorable movement in foreign currency exchange rates asset | Fair value of forward exchange contracts after a 10% favorable movement in foreign currency exchange rates liability |


| 2016 Quarters 2015 Quarters | (Dollars in millions) | Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis | Net interest income | Fully taxable-equivalent adjustment | Net interest income on a fully taxable-equivalent basis | Reconciliation of total revenue, net of interest expense to total revenue, net of interest expense on a fully taxable-equivalent basis | Total revenue, net of interest expense | Fully taxable-equivalent adjustment | Total revenue, net of interest expense on a fully taxable-equivalent basis | Reconciliation of income tax expense to income tax expense on a fully taxable-equivalent basis | Income tax expense | Fully taxable-equivalent adjustment | Income tax expense on a fully taxable-equivalent basis | Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity | Common shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible common shareholders’ equity | Reconciliation of average shareholders’ equity to average tangible shareholders’ equity | Shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible shareholders’ equity | Reconciliation of period-end common shareholders’ equity to period-end tangible common shareholders’ equity | Common shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible common shareholders’ equity | Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity | Shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible shareholders’ equity | Reconciliation of period-end assets to period-end tangible assets | Assets | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible assets |


| Pension Benefits   Year Ended   December 31, Postretirement Benefits   Year Ended   December 31, | 2009 | (In $ millions) | Service cost | Interest cost | Expected return on plan assets | Amortization of prior service cost | Recognized actuarial (gain) loss | Curtailment (gain) loss | Settlement (gain) loss | Special termination benefits | Net periodic benefit cost |


| Years Ended December 31, | 2007 | (In millions) | Investment income | Investment expense | Net investment gains (losses) | Total revenues | Interest expense | Provision for income tax | Income from discontinued operations, net of income tax |


NOTES RECEIVABLE In 2000, the Company loaned TV Azteca, S. A.  de C. V.  (TV Azteca), the owner of a major national television network in Mexico, $119.8 million.
The loan, which initially bore interest at 12.87%, payable quarterly, was discounted by the Company, as the fair value interest rate at the date of the loan was determined to be 14.25%.
The loan was amended effective January 1, 2003 to increase the original interest rate to 13.11%.
As of December 31, 2005 and 2004, approximately $119.8 million undiscounted ($108.2 million discounted) under the loan was outstanding and included in notes receivable and other long-term assets in the accompanying consolidated balance sheets.
The term of the loan is seventy years; however, the loan may be prepaid by TV Azteca without penalty during the last fifty years of the agreement.
The discount on the loan is being amortized to interest income—TV Azteca, net, using the effective interest method over the seventy-year term of the loan.
Simultaneous with the signing of the loan agreement, the Company also entered into a seventy year Economic Rights Agreement with TV Azteca regarding space not used by TV Azteca on approximately 190 of its broadcast towers.
In exchange for the issuance of the below market interest rate loan discussed above and the annual payment of $1.5 million to TV Azteca (under the Economic Rights Agreement), the Company has the right to market and lease the unused tower space on the broadcast towers (the Economic Rights).
TV Azteca retains title to these towers and is responsible for their operation and maintenance.
The Company is entitled to 100% of the revenues generated from leases with tenants on the unused space and is responsible for any incremental operating expenses associated with those tenants.


| Year Ended December 31, 2014 Specialty Commercial International Total | (In millions, except %) | Net written premiums | Net earned premiums | Net investment income | Net operating income | Net realized investment gains (losses) | Net income | Other performance metrics: | Loss and loss adjustment expense ratio | Expense ratio | Dividend ratio | Combined ratio | Rate | Retention | New Business (a) |


| (Dollars in millions) 2013 2012 2011 2010 2009 | Loan and allowance ratios: | Loans and leases outstanding at December 31-6 | Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31-6 | Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at December 31-7 | Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at December 31-8 | Average loans and leases outstanding-6 | Net charge-offs as a percentage of average loans and leases outstanding-6, 9 | Net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding-6, 10 | Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31-6, 11 | Ratio of the allowance for loan and lease losses at December 31 to net charge-offs-9 | Ratio of the allowance for loan and lease losses at December 31 to net charge-offs and PCI write-offs-10 | Amounts included in allowance for loan and lease losses that are excluded from nonperforming loans and leases at December 31-12 | Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding amounts included in the allowance for loan and lease losses that are excluded from nonperforming loans and leases at December 31-12 | Loan and allowance ratios excluding PCI loans and the related valuation allowance:-13 | Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31-6 | Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at December 31-7 | Net charge-offs as a percentage of average loans and leases outstanding-6 | Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31-6, 11 | Ratio of the allowance for loan and lease losses at December 31 to net charge-offs |


ITEM 6.
SELECTED FINANCIAL DATA You should read the selected financial data in conjunction with our “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and our audited consolidated financial statements and the related notes to those consolidated financial statements included in this annual report.
Our continuing operations are reported in two segments: rental and management and network development services.
In accordance with generally accepted accounting principles, the consolidated statements of operations for all periods presented in this “Selected Financial Data” have been adjusted to reflect certain businesses as discontinued operations (see note 16 to our consolidated financial statements included in this annual report).
Year-to-year comparisons are significantly affected by our acquisitions, dispositions and, to a lesser extent, construction of towers.
Our merger with SpectraSite, Inc. , which closed in August 2005, significantly impacts the comparability of reported results between periods.
Our principal acquisitions and dispositions are described in “Business—Recent Transactions” and in the notes to our consolidated financial statements included in this annual report.


| Business Records Management Data Protection International Corporate & Other-1 Total Consolidated | 2002 | Total Revenues | Contribution | Total Assets | Expenditures for Segment Assets-2 | 2003 | Total Revenues | Contribution | Total Assets | Expenditures for Segment Assets-2 | 2004 | Total Revenues | Contribution | Total Assets | Expenditures for Segment Assets-2 |


| Total Net Revenues | (in thousands) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year ended December 31, |


(1) Amounts include commodity iShares ETFs.
Our broad iShares ETF product range offers investors a precise, transparent and efficient way to gain exposure to a full range of asset classes and global markets that have been difficult for many investors to access, as well as the liquidity required to make adjustments to their exposures quickly and cost-efficiently.  ?
U. S.  iShares ETF AUM ended 2017 at $1.3 trillion with $201.3 billion of net inflows driven by strong demand for Core funds and U. S.  and broad developed market equities as well as a diverse range of fixed income products.2 ?
International iShares ETF AUM ended 2017 at $424.7 billion with net inflows of $44.1 billion led by equity net inflows of $29.0 billion, which reflected strong flows into our international Core funds in Canada and Europe.
Institutional BlackRock serves institutional investors on six continents in sub-categories including: pensions, endowments and foundations, official institutions, and financial institutions; institutional AUM is diversified across product and region.
Component changes in institutional long-term AUM for 2017 are presented below.


| December 31, 2008 Percentage of Total December 31, 2007 Percentage of Total | (dollars in thousands) | U.S. Government and agency obligations | Tax exempt municipal securities | Mortgage and asset-backed securities | Corporate securities | Redeemable preferred stocks | Total debt securities |


| December 31 | Buy (Sell) | Euro | Chinese Renminbi | Brazilian Real | British Pound | Japanese Yen |


| (in millions) Par Value | Fixed rate notes due September 2022, stated rate of 3.00%-1 | Fixed rate notes due March 2025, stated rate of 3.00%-2 | Fixed rate notes due September 2043, stated rate of 5.30%-3 |


| December 31, | 2018 | GrossCarryingAmount | Unamortizable intangible assets: | Management contracts | Trademarks | Trade names | 159,635 | Amortizable intangible assets: | Customer relationships | Mortgage servicing rights | Trademarks/Trade name | Management contracts | Covenant not to compete | Other | 2,462,066 | Total intangible assets |


| Payments due by period | Contractual Obligations | Operating Leases | Purchase Obligations | Total |


| Twelve Months Ended | (Millions of Dollars) | Operating revenues | Purchased power | Fuel | Other operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Electric operating income | Millions of kWhs Delivered | Twelve Months Ended | Description | Residential/Religious(b) | Commercial/Industrial | Energy choice customers | NYPA, Municipal Agency and other sales | Other operating revenues(c) | Total |


| -1 December 31, 2007 December 31, 2006 | NAIC Designation | (in millions) | 1 | 2 | Subtotal Investment Grade | 3 | 4 | 5 | 6 | Subtotal Below Investment Grade | Total Private Fixed Maturities | -1 | NAIC Designation | (in millions) | 1 | 2 | Subtotal Investment Grade | 3 | 4 | 5 | 6 | Subtotal Below Investment Grade | Total |


Sources of Revenue Our revenues are primarily derived from the planning and execution of multi-channel advertising, marketing and communications programs around the world.
Our revenues are directly dependent upon the advertising, marketing and corporate communications requirements of our existing clients and our ability to win new clients.
Most of our client contracts are individually negotiated, and, accordingly, the terms of client engagements and the bases on which we earn commissions and fees vary significantly.
As is customary in the industry, our contracts generally provide for termination by either party on relatively short notice, usually 90 days.
Revenues for the creation, planning and placement of advertising are determined primarily on a negotiated fee basis and, to a lesser extent, on a commission basis.
Fees are usually calculated to reflect hourly rates plus proportional overhead and a mark-up.
Many clients include an incentive compensation component in their total compensation package.
This provides added revenue based on achieving mutually agreed-upon qualitative or quantitative metrics within specified time periods.
Commissions are earned based on services provided and are usually derived from a percentage or fee over the total cost to complete the assignment.
Commissions can also be derived when clients pay us the gross rate billed by media and we pay for media at a lower net rate; the difference is the commission that we earn, which we either retain in full or share with the client depending on the nature of the applicable services agreement.
We also generate revenue in negotiated fees from our public relations, sales promotion, event marketing, sports and entertainment marketing, and corporate and brand identity services.
In most of our businesses, our agencies enter into commitments to pay production and media costs on behalf of clients, as is customary in the advertising and marketing industries.
To the extent possible, we pay production and media charges after we have received funds from our clients, and in some instances we agree with the provider that we will only be liable to pay the production and media costs after the client has paid us for the charges .
Generally, we act as the client’s agent rather than the primary obligor.
Our revenue is typically lowest in the first quarter and highest in the fourth quarter.
This reflects the seasonal spending of our clients, incentives earned at year end on various contracts and project work that is typically completed during the fourth quarter.
Fee revenue recognized on a completed-contract basis also contributes to the higher seasonal revenues experienced in the fourth quarter because the majority of our contracts end at December 31.


DERIVATIVE FINANCIAL INSTRUMENTS As part of its risk management strategy, the Company enters into derivative contracts to hedge against interest rate and foreign currency risk.
Interest-Rate Contracts: The Company enters into various interest-rate contracts, including interest-rate swaps and cross currency interest-rate swaps.
Interest-rate swaps involve the exchange of fixed for floating rate or floating for fixed rate interest payments based on the contractual notional amounts in a single currency.
Cross currency interest-rate swaps involve the exchange of notional amounts and interest payments in different currencies.
The Company is exposed to interest-rate and exchange-rate risk caused by market volatility as a result of its borrowing activities.
The objective of these contracts is to mitigate the fluctuations on earnings, cash flows and fair value of borrowings.
Net amounts paid or received are reflected as adjustments to interest expense.
At December 31, 2016, the notional amount of the Company’s interest-rate contracts was $2,977.8.
Notional maturities for all interest-rate contracts are $706.8 for 2017, $1,041.9 for 2018, $863.6 for 2019, $174.1 for 2020, $191.4 for 2021 and nil thereafter.
Included in selling, general and administrative expense was rent expense of $83.0 million, $59.0 million and $41.8 million for the years ended December 31, 2015, 2014 and 2013, respectively, under non-cancelable operating lease agreements.
Included in these amounts was contingent rent expense of $11.0 million, $11.0 million and $7.8 million for the years ended December 31, 2015, 2014 and 2013, respectively.


| 2013 2012 2011 | (in millions) | Net cash provided by operating activities | Net cash used in investing activities | Net cash used in financing activities | Decrease in cash and cash equivalents |


| As ofDecember 1, 2016 (In $ millions) | Cash and cash equivalents | Trade receivables - third party and affiliates | Inventories | Property, plant and equipment, net | Intangible assets (Note 11) | Goodwill (Note 11)(1) | Other assets-2 | Total fair value of assets acquired | Trade payables - third party and affiliates | Total debt (Note 14) | Deferred income taxes | Other liabilities | Total fair value of liabilities assumed | Net assets acquired |


| Accumulated BenefitObligation Exceeds theFair Value of Plan Assets Projected BenefitObligation Exceeds theFair Value of Plan Assets | June 30 | Projected benefit obligation | Accumulated benefit obligation | Fair value of plan assets |


Pension and Other Postretirement Benefit Plans The Company has defined benefit pension plans covering eligible employees in the United States and in certain of its international subsidiaries.
Pension benefits in the United States are based on a formula that considers final average pay and years of credited service.
In addition, the Company provides medical, dental and life insurance benefits, principally to its eligible U. S.  retirees and similar benefits to their dependents, through its other postretirement benefit plans.
In December 2011, changes to the Company’s benefit plans were approved, as discussed below.
The Company uses December 31 as the year-end measurement date for all of its pension plans and other postretirement benefit plans.
Net Periodic Benefit Cost The net periodic benefit cost for pension and other postretirement benefit plans consisted of the following components


| 2005 2004 2003 2002 2001 | (In thousands) | Net income | Depreciation and amortization | Interest expense | Other interest income | EBITDA | Gain loss on sale of real estate | Loss on abandoned developmentsheld for sale | Adjusted EBITDA |


| Total Revenues* Real Estate and Other Fixed Assets, Net of Accumulated Depreciation | (in millions) | U.S. | Europe | Japan | Other | Consolidated | Estimated Fair Value | (in millions) | December 31, 2016 | Assets: | Mortgage and other loans receivable | Other invested assets | Short-term investments | Cash | Liabilities: | Policyholder contract deposits associated | with investment-type contracts | Other liabilities | Long-term debt |


| Year Ended December 31, Total Revenues 2015 vs. 2014 Analysis of % Change 2014 vs. 2013 Analysis of % Change | Total | Dollars in Millions | United States | Europe | Rest of the World | Other(a) | Total |


| Year Ended December 31, | 2017 | Key performance indicators: | Clients | Clients (based on parent company grouping) | Sales teams | Annual revenue retention rate |


Goodwill Impairment Goodwill, which represents the excess of acquisition cost over the estimated fair value of net assets acquired, was $4 billion at December 31, 2010.
During 2010, our goodwill balance increased by approximately six percent, primarily due to acquisitions and foreign exchange movements at the legal entity level.
Goodwill is not amortized but is subject to a periodic evaluation for impairment at least annually, or earlier if there are any indications of possible impairment.
The impairment evaluation involves a two-step process in which an initial assessment for potential impairment is performed and, if a potential impairment is present, the amount of impairment is measured and recorded.
Impairment is tested at the reporting unit level.
Goodwill is assigned to applicable reporting units of acquired entities at acquisition.
The most significant reporting units are: ?
North American and International divisions of Combined Insurance acquired in 2008; ?
Domestic and International divisions of ACE INA acquired in 1999; and ?
ACE Tempest Res catastrophe businesses acquired in 1996 and 1998.
There are other reporting units that resulted from smaller acquisitions that are also assessed annually.
Based on our impairment testing for 2010, we determined that no impairment was required and that none of our reporting units were at risk for failing the initial impairment testing step.
To estimate the fair value of a reporting unit, we consistently applied a combination of the following models: an earnings multiple, a book value multiple, a discounted cash flow or an allocated market capitalization.
The earning
General experienced net favorable prior period development of $290 million, $255 million, and $304 million in 2010, 2009, and 2008, respectively.
Refer to Prior Period Development for more information.
The adjusted loss and loss expense ratio for 2010 decreased primarily due to improved current accident year loss experience compared with the prior year periods in our retail business, partially offset by an increase in current year accident losses in our wholesale business.
Insurance  Overseas Generals policy acquisition cost ratio increased in 2010, compared with 2009, primarily due to changes in mix of business, and the impact of catastrophe-related reinstatement premiums expensed.
Insurance  Overseas Generals administrative expense ratio increased in 2010, primarily due to the impact of reinstatement premiums expensed, and reduced wholesale earned premiums.
Insurance  Overseas Generals policy acquisition cost ratio increased in 2009, compared with 2008, primarily due to lower net premiums earned in the retail A&H business, without a commensurate reduction in advertising costs, which are generally deferred and amortized over a longer period than the related premium.
Insurance  Overseas Generals administrative expense ratio increased in 2009, primarily due to the inclusion of Combined Insurance for the full year.
Global Reinsurance The Global Reinsurance segment represents ACEs reinsurance operations comprising ACE Tempest Re Bermuda, ACE Tempest Re USA, ACE Tempest Re International, and ACE Tempest Re Canada.
Global Reinsurance markets its reinsurance products worldwide under the ACE Tempest Re brand name and provides a broad range of coverage to a diverse array of primary P&C companies.


THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Managements Discussion and Analysis Net revenues in Equities were $7.83 billion for 2015, 16% higher than 2014.
Excluding a gain of $121 million ($30 million and $91 million included in equities client execution and securities services, respectively) in 2014 related to the extinguishment of certain of our junior subordinated debt, net revenues in Equities were 18% higher than 2014, primarily due to significantly higher net revenues in equities client execution across the major regions, reflecting significantly higher results in both derivatives and cash products, and higher net revenues in securities services, reflecting the impact of higher average customer balances and improved securities lending spreads.
Commissions and fees were essentially unchanged compared with 2014.
We elect the fair value option for certain unsecured borrowings.
The fair value net gain attributable to the impact of changes in our credit spreads on these borrowings was $255 million ($214 million and $41 million related to Fixed Income, Currency and Commodities Client Execution and equities client execution, respectively) for 2015, compared with a net gain of $144 million ($108 million and $36 million related to Fixed Income, Currency and Commodities Client Execution and equities client execution, respectively) for 2014.
Operating expenses were $13.94 billion for 2015, 28% higher than 2014, due to significantly higher net provisions for mortgage-related litigation and regulatory matters, partially offset by decreased compensation and benefits expenses.
Pre-tax earnings were $1.21 billion in 2015, 72% lower than 2014.
Investing & Lending Investing & Lending includes our investing activities and the origination of loans, including our relationship lending activities, to provide financing to clients.
These investments and loans are typically longer-term in nature.
We make investments, some of which are consolidated, directly and indirectly through funds that we manage, in debt securities and loans, public and private equity securities, infrastructure and real estate entities.
We also make unsecured loans to individuals through our online platform.


| 2015 2014 (in millions) 2013 | Share-based compensation expense | Income tax benefit |


| At December 31, 2014 A.M. Best Rating(a) Gross Reinsurance Assets Percent of Reinsurance Assets (b) Uncollateralized Reinsurance Assets | (in millions) | Reinsurer: | Swiss Reinsurance Group of Companies | Berkshire Hathaway Group of Companies | Munich Reinsurance Group of Companies |


Changes in fair value under the fair value option election The following table presents the changes in fair value included in the Consolidated statements of income for the years ended December 31, 2018, 2017 and 2016, for items for which the fair value option was elected.
The profit and loss information presented below only includes the financial instruments that were elected to be measured at fair value; related risk management instruments, which are required to be measured at fair value, are not included in the table.


Financial assurance We must provide financial assurance to governmental agencies and a variety of other entities under applicable environmental regulations relating to our landfill operations for capping, closure and post-closure costs, and related to our performance under certain collection, landfill and transfer station contracts.
We satisfy these financial assurance requirements by providing surety bonds, letters of credit, or insurance policies (the Financial Assurance Instruments), or trust deposits, which are included in restricted cash and marketable securities and other assets in our consolidated balance sheets.
The amount of the financial assurance requirements for capping, closure and post-closure costs is determined by applicable state environmental regulations.
The financial assurance requirements for capping, closure and post-closure costs may be associated with a portion of the landfill or the entire landfill.
Generally, states require a third-party engineering specialist to determine the estimated capping, closure and post-closure costs that are used to determine the required amount of financial assurance for a landfill.
The amount of financial assurance required can, and generally will, differ from the obligation determined and recorded under U. S.  GAAP.
The amount of the financial assurance requirements related to contract performance varies by contract.
Additionally, we must provide financial assurance for our insurance program and collateral for certain performance obligations.
We do not expect a material increase in financial assurance requirements during 2014, although the mix of financial assurance instruments may change.
These financial instruments are issued in the normal course of business and are not considered indebtedness.
Because we currently have no liability for the Financial Assurance Instruments, they are not reflected in our consolidated balance sheets; however, we record capping, closure and post-closure liabilities and self-insurance liabilities as they are incurred.
The underlying obligations of the financial assurance instruments, in excess of those already reflected in our consolidated balance sheets, would be recorded if it is probable that we would be unable to fulfill our related obligations.
We do not expect this to occur.


ITEM 13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE For the information required by this Item 13, see “Certain Transactions” and “Corporate Governance” in the Proxy Statement for our 2016 Annual Meeting, which information is incorporated herein by reference.


| TENURE OF COMMITMENT | Total amounts committed-1 | (Dollars in millions) | As of December 31, 2005 | Indemnified securities financing | Liquidity asset purchase agreements | Unfunded commitments to extend credit | Standby letters of credit | Total commercial commitments |


| Number of Shares WeightedAverageGrant DateFair Value | Outstanding at December 31, 2016 | Granted | Vested | Cancelled | Outstanding at December 31, 2017 |


| Years Ended December 31, | 2013 | Segment Pretax Operating Increase (Decrease) | (in millions) | Other revenues | Benefits, claims, losses and settlement expenses | Amortization of DAC | Interest credited to fixed accounts | Total expenses | Total |


Critical Accounting Estimates In applying the accounting policies that we use to prepare our consolidated financial statements, we necessarily make accounting estimates that affect our reported amounts of assets, liabilities, revenues and expenses.
Some of these accounting estimates require us to make assumptions about matters that are highly uncertain at the time we make the accounting estimates.
We base these assumptions and the resulting estimates on historical information and other factors that we believe to be reasonable under the circumstances, and we evaluate these assumptions and estimates on an ongoing basis.
In many instances, however, we reasonably could have used different accounting estimates and, in other instances, changes in our accounting estimates could occur from period to period, with the result in each case being a material change in the financial statement presentation of our financial condition or results of operations.
We refer to accounting estimates of this type as critical accounting estimates.
 The critical accounting estimates that we discuss below are those that we believe are most important to an understanding of our consolidated financial statements.
Accounting estimates necessarily require subjective determinations about future events and conditions.
Therefore, the following descriptions of critical accounting estimates are forward-looking statements, and actual results could differ materially from the results anticipated by these forward-looking statements.
You should read the following in conjunction with Note 1 of the notes to consolidated financial statements and the risk factors contained in Item 1ARisk Factors of this annual report.


| 2013 Change2013 over 2012 2012 Change2012 over 2011 2011 | (In millions, except percentages) | Silicon Systems Group | Applied Global Services | Display | Energy and Environmental Solutions | Total |


Commitments to Fund Partnership Investments The Company makes commitments to fund partnership investments in the normal course of business.
The amounts of these unfunded commitments were $5.3 billion and $3.0 billion at December 31, 2007 and 2006, respectively.
The Company anticipates that these amounts will be invested in partnerships over the next five years.
Mortgage Loan Commitments The Company commits to lend funds under mortgage loan commitments.
The amounts of these mortgage loan commitments were $4.0 billion at both December 31, 2007 and 2006.
Commitments to Fund Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments The Company commits to lend funds under bank credit facilities, bridge loans and private corporate bond investments.
The amounts of these unfunded commitments were $1.2 billion and $1.9 billion at December 31, 2007 and 2006, respectively.
Other Commitments In December 2005, RGA repurchased 1.6 million shares of its outstanding common stock at an aggregate price of $76 million under an accelerated share repurchase agreement with a major bank.
The bank borrowed the stock sold to RGA from third parties and purchased the shares in the open market over the subsequent few months to return to the lenders.
RGA would either pay or receive an amount based on the actual amount paid by the bank to purchase the shares.
These repurchases resulted in an increase in the Company’s ownership percentage of RGA to approximately 53% at December 31, 2005 from approximately 52% at December 31, 2004.
In February 2006, the final purchase price was determined, resulting in a cash settlement substantially equal to the aggregate cost.
RGA recorded the initial repurchase of shares as treasury stock and recorded the amount received as an adjustment to the cost of the treasury stock.
At December 31, 2007, the Company’s ownership was approximately 52% of RGA.
Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties pursuant to which it may be required to make payments now or in the future.
In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities, and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company.
In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third party lawsuits.
These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation.
In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $1 million to $800 million, with a cumulative maximum of $2.3 billion, while in other cases such limitations are not specified or applicable.
Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future.
As described more fully in “— Liquidity and Capital Resources — The Company — Liquidity Sources — Debt Issuances”: ?
In December 2007, the Holding Company, in connection with the collateral financing arrangement associated with MRC’s reinsurance of the closed block liabilities, entered into an agreement with an unaffiliated financial institution under which the Holding Company is entitled to the interest paid by MRC on the surplus notes of 3-month LIBOR plus 55 basis points in exchange for the payment of 3-month LIBOR plus 112 basis points, payable quarterly.
Under this agreement, the Holding Company may also be required to make payments to the unaffiliated financial institution related to any decline in the market value of the surplus notes and in connection with any early termination of this agreement.
The Holding Company’s net cost of 57 basis points has been allocated to MRC.
For the year ended December 31, 2007, this amount was immaterial.  ?
In May 2007, the Holding Company, in connection with the collateral financing arrangement associated with MRSC’s reinsurance of universal life secondary guarantees, entered into an agreement with an unaffiliated financial institution under which the Holding Company is entitled to the return on the investment portfolio held by the trust established in connection with this collateral financing arrangement in exchange for the payment of a stated rate of return to the unaffiliated financial institution of 3-month LIBOR plus 70 basis points, payable quarterly.
The Holding Company may also be required to make payments to the unaffiliated financial institution, for deposit into the trust, related to any decline in the market value of the assets held by the trust, as well as amounts outstanding upon maturity or early termination of the collateral financing arrangement.
As a result of this agreement, the Holding Company effectively assumed the $2.4 billion liability under the collateral financing arrangement along with a beneficial interest in the trust holding the associated assets.
The Holding Company simultaneously contributed to MRSC its beneficial interest in the trust, along with any return to be received on the investment portfolio held by the trust.
The Holding Company allocates the financing costs associated with the collateral financing arrangement to MRSC.
In December 2006, the Holding Company issued junior subordinated debentures with a face amount of $1.25 billion.
See “— Liquidity and Capital Resources — The Company — Liquidity Sources — Debt Issuances” for further information.
In September 2006, the Holding Company issued $204 million of affiliated long-term debt with an interest rate of 6.07% maturing in 2016.
In March 2006, the Holding Company issued $10 million of affiliated long-term debt with an interest rate of 5.70% maturing in 2016.
In December 2005, the Holding Company issued $286 million of affiliated long-term debt with an interest rate of 5.24% maturing in 2015.
In June 2005, the Holding Company issued $1.0 billion aggregate principal amount of 5.00% senior notes due June 15, 2015 at a discount of $2.7 million ($997.3 million), and $1.0 billion aggregate principal amount of 5.70% senior notes due June 15, 2035 at a discount of $2.4 million ($997.6 million).
In June 2005, the Holding Company issued 400 million pounds sterling ($729.2 million at issuance) aggregate principal amount of 5.25% senior notes due June 29, 2020 at a discount of 4.5 million pounds sterling ($8.1 million at issuance), for aggregate proceeds of 395.5 million pounds sterling ($721.1 million at issuance).
These notes were initially offered and sold outside the United States in reliance upon Regulation S under the Securities Act.
The following table summarizes the Holding Company’s outstanding senior notes issuances, excluding any premium or discount:


Energy and Environmental Solutions Segment The Energy and Environmental Solutions segment includes products for fabricating c-Si solar PVs, as well as high throughput roll-to-roll deposition equipment for flexible electronics, packaging and other applications.
This business is focused on delivering solutions to generate and conserve energy, with an emphasis on lowering the cost to produce solar power and increasing conversion efficiency.
While end-demand for solar PVs has been robust over the last several years, investment levels in capital equipment remain depressed.
Global solar PV production capacity exceeds anticipated demand, which has caused solar PV manufacturers to significantly reduce or delay investments in manufacturing capacity and new technology, or in some instances to cease operations.
Certain significant measures for the past three fiscal years were as follows:


| Year Ended September 30, | 2010 | ($ in 000's) | Revenues: | Interest Income | Interest Expense | Net Interest Income | Other Loss | Net Revenues | Non-Interest Expenses | Employee Compensation and Benefits | Communications and Information Processing | Occupancy and Equipment | Provision for Loan Losses | Other | Total Non-Interest Expenses | Pre-tax Income |


| As of December | $ in millions | Resale agreements | Securities borrowed | Repurchase agreements | Securities loaned |


CF INDUSTRIES HOLDINGS, INC.  118 16.
Derivative Financial Instruments We use derivative financial instruments to reduce our exposure to changes in commodity prices and foreign currency exchange rates.
Commodity Price Risk Management Natural gas is the largest and most volatile component of the manufacturing cost for nitrogen-based products.
We manage the risk of changes in natural gas prices primarily through the use of derivative financial instruments covering periods through the end of 2018.
The derivatives that we use are primarily fixed price swaps and options traded in the OTC markets.
These natural gas derivatives settle using primarily a NYMEX futures price index, which represents the basis for fair value at any given time.
We entered into natural gas derivative contracts with respect to natural gas to be consumed by us in the future, and settlements of those derivative contracts are scheduled to coincide with our anticipated purchases of natural gas used to manufacture nitrogen products during those future periods.
We use natural gas derivatives as an economic hedge of natural gas price risk, but without the application of hedge accounting.
As a result, changes in fair value of these contracts are recognized in earnings.
As of December 31, 2015 and 2014, we had open natural gas derivative contracts for 431.5 million MMBtus and 58.7 million MMBtus, respectively.
For the year ended December 31, 2015, we used derivatives to cover approximately 64% of our natural gas consumption.


| Qualified Pension Plan Non-U.S. Pension Plans | (Dollars in millions) | Components of net periodic benefit cost | Service cost | Interest cost | Expected return on plan assets | Amortization of prior service cost | Amortization of net actuarial loss (gain) | Recognized loss (gain) due to settlements and curtailments | Net periodic benefit cost (income) | Weighted-average assumptions used to determine net cost for years ended December 31 | Discount rate | Expected return on plan assets | Rate of compensation increase | Nonqualified andOther Pension Plans | (Dollars in millions) | Components of net periodic benefit cost | Service cost | Interest cost | Expected return on plan assets | Amortization of transition obligation | Amortization of prior service cost (credits) | Amortization of net actuarial loss (gain) | Recognized loss due to settlements and curtailments | Net periodic benefit cost (income) | Weighted-average assumptions used to determine net cost for years ended December 31 | Discount rate | Expected return on plan assets | Rate of compensation increase |


| (MMBbls) | United States Onshore | United States Offshore | Canada | International |


| Years Ended December 31, | 2009 | (In millions) | Operating Revenues | Premiums | Universal life and investment-type product policy fees | Net investment income | Other revenues | Total operating revenues | Operating Expenses | Policyholder benefits and claims and policyholder dividends | Interest credited to policyholder account balances | Capitalization of DAC | Amortization of DAC and VOBA | Interest expense | Other expenses | Total operating expenses | Provision for income tax expense (benefit) | Operating earnings |


| 2005 2004 2003 | Computed expected tax | State taxes, net of federal effect | Indefinitely invested earnings of foreign subsidiaries | Nondeductible executive compensation | Research and development credit, net | Other items | Provision for income taxes | Effective tax rate |


| Year Ended December 31, 2013 Specialty Commercial International Total | (In millions, except %) | Net written premiums | Net earned premiums | Net investment income | Net operating income | Net realized investment gains (losses) | Net income | Other performance metrics: | Loss and loss adjustment expense ratio | Expense ratio | Dividend ratio | Combined ratio | Rate | Retention | New Business (a) |


The Company enters into operating leases for vehicles whose non-cancelable terms are one year or less in duration with month-to-month renewal options.
These leases have been excluded from the table above.
The Company estimates payments under such leases will approximate $62 million in 2018.
These vehicle leases have guaranteed residual values that have historically been satisfied by the proceeds on the sale of the vehicles.


| At December 31, | 2011 | (dollar amounts in thousands) | Derivative assets: | Interest rate lock agreements | Forward trades and options | Total derivative assets | Derivative liabilities: | Interest rate lock agreements | Forward trades and options | Total derivative liabilities | Net derivative asset (liability) |


| As of December 31, | 2016 | (in millions) | Other assets: | Premium tax offset for future undiscounted assessments | Premium tax offsets currently available for paid assessments | Total | Other liabilities: | Insolvency assessments |


2016 vs.  2015 Interest incurred decreased $4.2.
The decrease primarily resulted from a stronger U. S.  dollar on the translation of foreign currency interest of $6, partially offset by a higher average debt balance of $2.
The change in capitalized interest was driven by a decrease in the carrying value of projects under construction, primarily as a result of our exit from the Energy-from-Waste business.2015 vs.  2014 Interest incurred decreased $5.5.
The decrease was driven by the impact of a stronger U. S.  dollar on the translation of foreign currency interest of $12, partially offset by a higher average debt balance of $7.
The change in capitalized interest was driven by a higher carrying value in construction in progress.
Loss on Extinguishment of Debt On 30 September 2016, in anticipation of the Versum spin-off, Versum issued $425.0 of notes to Air Products, who then exchanged these notes with certain financial institutions for $418.3 of Air Products outstanding commercial paper.
The exchange resulted in a loss of $6.9 ($4.3 after-tax, or $.02 per share).
In September 2015, we made a payment of $146.6 to redeem 3,000,000 Unidades de Fomento (UF) Series E 6.30% Bonds due 22 January 2030 that had a carrying value of $130.0 and resulted in a net loss of $16.6 ($14.2 after-tax, or $.07 per share).
Effective Tax Rate The effective tax rate equals the income tax provision divided by income from continuing operations before taxes.
Refer to Note 23, Income Taxes, to the consolidated financial statements for details on factors affecting the effective tax rate.2016 vs.  2015 On a GAAP basis, the effective tax rate was 27.5% and 24.0% in 2016 and 2015, respectively.
The change included a 240 bp impact from tax costs associated with business separation, primarily resulting from a dividend declared in 2016 to repatriate cash from a foreign subsidiary, as discussed above in Business Separation Costs.
 The remaining 110 bp change was primarily due to the increase in mix of income in jurisdictions with a higher effective tax rate and the impact of business separation costs for which a tax benefit was not available.
On a nonGAAP basis, the effective tax rate increased from 24.2% in 2015 to 24.8% in 2016, primarily due to the increase in and mix of income in jurisdictions with a higher effective tax rate.


| Pension Benefits Other Postretirement Benefits | As of December 31, | 2018 | Other liabilities |


Inventories, net: Merchandise Inventory The Company used the LIFO method of accounting for approximately 89% of inventories at both December 31, 2016 and January 2, 2016.
Under LIFO, the Company’s cost of sales reflects the costs of the most recently purchased inventories, while the inventory carrying balance represents the costs for inventories purchased in 2016 and prior years.
As a result of utilizing LIFO, the Company recorded a reduction to cost of sales of $40,711 and $42,295 in 2016 and 2015, respectively, and an increase to cost of sales of $8,930 in 2014.
Historically, the Company’s overall costs to acquire inventory for the same or similar products have generally decreased as the Company has been able to leverage its continued growth and execution of merchandise strategies.
The increase in cost of sales for 2014 was the result of an increase in supply chain costs.
Product Cores The remaining inventories are comprised of product cores, the non-consumable portion of certain parts and batteries and the inventory of certain subsidiaries, which are valued under the first-in, first-out (“FIFO”) method.
Product cores are included as part of the Company’s merchandise costs and are either passed on to the customer or returned to the vendor.
Because product cores are not subject to frequent cost changes like the Company’s other merchandise inventory, there is no material difference when applying either the LIFO or FIFO valuation method.
Inventory Overhead Costs Purchasing and warehousing costs included in inventory as of December 31, 2016 and January 2, 2016, were $395,240 and $359,829, respectively.
Inventory Balance and Inventory Reserves Inventory balances at the end of 2016 and 2015 were as follows:


| 2014 2013 2012 | Revenue | Converters | Amplifiers/Radio frequency | Other analog | Subtotal analog signal processing | Power management & reference | Total analog products | Digital signal processing | Total Revenue |


| December 31 2005 2004 | (In millions) | Gross Case Reserves | Gross IBNR Reserves | Total Gross Carried Claim and Claim Adjustment Expense Reserves | Net Case Reserves | Net IBNR Reserves | Total Net Carried Claim and Claim Adjustment Expense Reserves | Payments Due by Period | December 31, 2005 | (In millions) | Debt | Operating leases | Claim and claim expense reserves (a) | Future policy benefits reserves (b) | Policyholder funds reserves (b) | Purchase obligations (c) | Total |


| Con Edison CECONY | (Millions of Dollars) | Balance at January 1, | Additions based on tax positions related to the current year | Additions based on tax positions of prior years | Reductions for tax positions of prior years | Reductions from expiration of statute of limitations | Settlements | Balance at December 31, |


| Payments Due by Year (in thousands) | Contractual Obligations | Debt (a) | Operating Leases: | Minimum Rent Payments (b) | Other Long-Term Liabilities: | Deferred Compensation (c) | Total |


| Years Ended December 31, | 2009 | (In millions) | Operating Revenues | Premiums | Net investment income | Other revenues | Total operating revenues | Operating Expenses | Policyholder benefits and claims and policyholder dividends | Interest credited to policyholder account balances | Interest credited to bank deposits | Capitalization of DAC | Amortization of DAC and VOBA | Interest expense | Other expenses | Total operating expenses | Provision for income tax expense (benefit) | Operating earnings | Preferred stock dividends | Operating earnings available to common shareholders |


| Phase 3 Drug Candidate Currently AnticipatedYear of Expiration (in the U.S.) 2016 (use) 2023 2024 2025 2026 (use) 2027 2029 | MK-3102 (omarigliptin) | MK-8931 (verubecestat) | MK-8835 (ertugliflozin) | MK-8835A (ertugliflozin + sitagliptin) | MK-8835B (ertugliflozin + metformin) | MK-1439 (doravirine) | MK-8342B (contraception, next generation ring) |


| Amount of commitment expiration per period | In thousands | Standby letters of credit and guarantees |


| Thousands of dths Delivered Revenues in Millions | Twelve Months Ended | Description | Residential | General | Firm transportation | Total firm sales and transportation | Interruptible sales(a) | NYPA | Generation plants | Other | Other operating revenues | Total |


| For the Year Ended December | 2013 | in millions, except rates | Assets | Deposits with banks | U.S. | Non-U.S. | Securities borrowed, securities purchased under agreements to resell and federal funds sold | U.S. | Non-U.S. | Financial instruments owned, at fair value1,2 | U.S. | Non-U.S. | Other interest-earning assets3 | U.S. | Non-U.S. | Total interest-earning assets | Cash and due from banks | Other non-interest-earning assets2 | Total assets | Liabilities | Interest-bearing deposits | U.S. | Non-U.S. | Securities loaned and securities sold under agreements to repurchase | U.S. | Non-U.S. | Financial instruments sold, but not yet purchased, at fairvalue1, 2 | U.S. | Non-U.S. | Short-term borrowings4 | U.S. | Non-U.S. | Long-term borrowings4 | U.S. | Non-U.S. | Other interest-bearing liabilities5 | U.S. | Non-U.S. | Total interest-bearing liabilities | Non-interest-bearing deposits | Other non-interest-bearing liabilities2 | Total liabilities | Shareholders’ equity | Preferred stock | Common stock | Total shareholders’ equity | Total liabilities and shareholders’ equity | Interest rate spread | Net interest income and net yield on interest-earning assets | U.S. | Non-U.S. | Percentage of interest-earning assets and interest-bearing liabilities attributable tonon-U.S. operations6 | Assets | Liabilities |


| Fiscal Years Ended | September 26, 2009 | (In thousands, except per share data) | Basic net (loss) income per common share (1) | Diluted net (loss) income per common share (1) | Weighted average number of common shares outstanding -1: | Basic | Diluted | Consolidated Balance Sheet Data | Working capital | Total assets | Line of credit | Long-term debt | Total stockholders’ equity |


(n) Earnings per Share (EPS) Basic net earnings per share (EPS) is calculated using net earnings available to common stockholders divided by the weighted-average number of shares of common stock outstanding during the year.
Diluted EPS is similar to basic EPS except that the weighted-average number of shares is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares had been issued.
Dilutive common stock options are included in the diluted EPS calculation using the treasury stock method.
Common stock options and unvested restricted shares (units) that were not included in the diluted EPS computation because the price was greater than the average market price of the common shares for the periods presented were 0, 0 and 891 for 2014, 2013 and 2012, respectively Computations of basic and diluted earnings per share from continuing operations are presented in the following table:


| AMOUNT OF CHANGE | 2008 | Net sales and revenues: | Containerboard | Packaging | Recycling | Kraft bags and sacks | Other products | Total | Contribution to earnings |


Note D  Short-Term Borrowing In December 2016, Con Edison and the Utilities entered into a credit agreement (Credit Agreement), under which banks are committed to provide loans and letters of credit on a revolving credit basis.
The Credit Agreement expires in December 2021.
There is a maximum of $2,250 million of credit available.
The full amount is available to CECONY and $1,000 million (subject to increase up to $1,500 million) is available to Con Edison, including up to $1,200 million of letters of credit.
The Credit Agreement supports the Companies commercial paper programs.
The Companies have not borrowed under the Credit Agreement.
At December 31, 2016, Con Edison had $1,054 million of commercial paper outstanding, of which $600 million was outstanding under CECONYs program.
The weighted average interest rate at December 31, 2016 was 1.0 percent for both Con Edison and CECONY.
At December 31, 2015, Con Edison had $1,529 million of commercial paper outstanding of which $1,033 million was outstanding under CECONYs program.
The weighted average interest rate at December 31, 2015 was 0.7 percent for both Con Edison and CECONY.
At December 31, 2016 and 2015, no loans were outstanding under the Credit Agreement and $2 million (including $2 million for CECONY) and $15 million of letters of credit were outstanding under the Credit Agreement, respectively.
The banks commitments under the Credit Agreement are subject to certain conditions, including that there be no event of default.
The commitments are not subject to maintenance of credit rating levels or the absence of a material adverse change.
Upon a change of control of, or upon an event of default by one of the Companies, the banks may terminate their commitments with respect to that company, declare any amounts owed by that company under the Credit Agreement immediately due and payable and require that company to provide cash collateral relating to the letters of credit issued for it under the Credit Agreement.
Events of default include the exceeding at any time of a ratio of consolidated debt to consolidated total capital of 0.65 to 1 (at December 31, 2016 this ratio was 0.51 to 1 for Con Edison and 0.52 to 1 for CECONY); having liens on its assets in an aggregate amount exceeding five percent of its consolidated total capital, subject to certain exceptions; and the failure, following any applicable notice period, to meet certain other customary covenants.
Interest and fees charged for the revolving credit facilities and any loans made or letters of credit issued under the Credit Agreement reflect the Companies respective credit ratings.
The Companies were in compliance with their covenants at December 31, 2016.
See Note S for information about short-term borrowing between related parties.


| Revenue Mix Summary Year Ended -1 Comparable Store Sales Summary Year Ended -2 | February 27, 2010 | Consumer electronics | Home office | Entertainment | Appliances | Services | Other | Total |


| Plan category Number of securities to beissued upon exercise of outstanding options, warrants and rights (a) Weighted-average exercise price of outstanding options, warrants and rights (b) Number of securities remaining availablefor future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | Equity compensation plans approved by securityholders-1 | Equity compensation plans not approved bysecurity holders-2 | Total |


| Nine Months Ended September 30 | 2005 | (Dollars in millions) | Operating activities | Net income | Reconciliation of net income to net cash provided by (used in) operating activities: | Provision for credit losses | Gains on sales of debt securities | Depreciation and premises improvements amortization | Amortization of intangibles | Deferred income tax expense (benefit) | Net increase in trading and derivative instruments | Net increase in other assets | Net decrease in accrued expenses and other liabilities | Other operating activities, net | Net cash used in operating activities | Investing activities | Net decrease in time deposits placed and other short-term investments | Net increase in federal funds sold and securities purchased under agreements to resell | Proceeds from sales of available-for-sale securities | Proceeds from maturities of available-for-sale securities | Purchases of available-for-sale securities | Proceeds from maturities of held-to-maturity securities | Proceeds from sales of loans and leases | Other changes in loans and leases, net | Additions to mortgage servicing rights, net | Net purchases of premises and equipment | Proceeds from sales of foreclosed properties | Investment in China Construction Bank | Net cash (paid in) acquired in business acquisitions | Other investing activities, net | Net cash used in investing activities | Financing activities | Net increase in deposits | Net increase in federal funds purchased and securities sold under agreements to repurchase | Net increase in commercial paper and other short-term borrowings | Proceeds from issuance of long-term debt | Retirement of long-term debt | Proceeds from issuance of common stock | Common stock repurchased | Cash dividends paid | Other financing activities, net | Net cash provided by financing activities | Effect of exchange rate changes on cash and cash equivalents | Net increase in cash and cash equivalents | Cash and cash equivalents at January 1 | Cash and cash equivalents at September 30 | CREDIT RATING | STANDARD &POOR’S | Northern Trust Corporation: | Senior Debt | Subordinated Debt | Preferred Stock | Trust Preferred Capital Securities | Outlook | The Northern Trust Company: | Short-Term Deposit | Long-Term Deposit | Subordinated Debt | Outlook |


| Year Term Loan Senior Unsecured Notes Mortgage and Other Secured Debt Total-1 | 2010 | 2011 | 2012 | 2013 | 2014 | Thereafter | $200,000 |


| In millions Unpaid Principal Balance Recorded Investment (a) Associated Allowance (b) Average Recorded Investment (a) | December 31, 2013 | Impaired loans with an associated allowance | Commercial | Commercial real estate | Home equity | Residential real estate | Credit card | Other consumer | Total impaired loans with an associated allowance | Impaired loans without an associated allowance | Commercial | Commercial real estate | Home equity | Residential real estate | Total impaired loans without an associated allowance | Total impaired loans | December 31, 2012 (c) | Impaired loans with an associated allowance | Commercial | Commercial real estate | Home equity | Residential real estate | Credit card | Other consumer | Total impaired loans with an associated allowance | Impaired loans without an associated allowance | Commercial | Commercial real estate | Home equity | Residential real estate | Total impaired loans without an associated allowance | Total impaired loans |


| Con Edison CECONY | (Millions of Dollars) | Balance at January 1, | Additions based on tax positions related to the current year | Additions based on tax positions of prior years | Reductions for tax positions of prior years | Settlements | Balance at December 31, |


| 1% Increase 1% Decrease | (in millions) | Effect on total service and interest cost components for 2008 | Effect on year-end 2008 postretirement benefit obligation |


| 2013 2014 2015 2016 2017 2018 | JKHY | Peer Group | S&P 500 |


| Pension Benefits Other Postretirement Benefits | Transition Obligation | (in millions) | Balance, December 31, 2007 | Effect of measurement date change | Amortization for the period | Deferrals for the period | Impact of foreign currency changes and other | Balance, December 31, 2008 | Amortization for the period | Deferrals for the period | Impact of foreign currency changes and other | Balance, December 31, 2009 |


| Fiscal 2007-1 Fiscal 2006-1 Fiscal 2005-1 | (dollars in millions) | Equity | Fixed income | Other | Total sales and trading revenues |


| Millions Dec. 31, 2015 Dec. 31, 2014 | Accounts payable | Income and other taxes payable | Accrued wages and vacation | Interest payable | Accrued casualty costs | Equipment rents payable | Dividends payable [a] | Other | Total accounts payable and other current liabilities |


| Expected Benefit Payments | 2016 | Pension Benefits | Other Benefits |


| Crude Oil and Condensate (Thousands of barrels) | United States | Proved developed reserves: | December 31, 2010 | December 31, 2011 | December 31, 2012 | December 31, 2013 | Proved undeveloped reserves: | December 31, 2010 | December 31, 2011 | December 31, 2012 | December 31, 2013 | Total proved reserves: | Balance December 31, 2010 | Extensions, discoveries and other additions | Purchase of minerals in-place | Revisions of previous estimates | Production | Sale of properties | Balance December 31, 2011 | Extensions, discoveries and other additions | Purchase of minerals in-place | Revisions of previous estimates | Production | Sale of properties | Balance December 31, 2012 | Extensions, discoveries and other additions | Purchase of minerals in-place | Revisions of previous estimates | Production | Sale of properties | Balance December 31, 2013 |


| (In Millions) | 2003 net revenue | Deferred fuel cost revisions | Other | 2004 net revenue |


| Entergy Arkansas 1,357 | Entergy Gulf States Louisiana | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | System Energy | Entergy Operations | Entergy Services | Entergy Nuclear Operations | Other subsidiaries | Total Entergy |


| (In millions) 2008 2007 2006 | Minimum rental(a) | Contingent rental | Sublease rentals | Net rental expense |


ITEM 11.
EXECUTIVE COMPENSATION For the information required by this Item 11, see “Compensation Discussion and Analysis,” “Compensation Committee Report,” and “Executive Compensation” in the Proxy Statement for our 2016 Annual Meeting, which information is incorporated herein by reference.


| Completion Factor (a): Claims Trend Factor (b): | (Decrease) Increase in Factor | -3% | -2% | -1% | 1% | 2% | 3% |


| 2005 2004 2003 | Shares | Shares Under Option: | Outstanding at beginning of year | Granted | Exercised | Exercised, delivery deferred | Forfeited | Outstanding at end of year | Options exercisable at year-end | Weighted average fair value per share of options granted | Remaining Life | (in millions) | Futures, forward and options contracts: | Exchange traded futures and options contracts contractual amount | Over the counter forward contracts contractual amount | Total |


| Bayer HealthCare Collaboration Revenue Years ended December 31, | (In millions) | Cost-sharing of Regeneron VEGF Trap-Eye development expenses | Substantive performance milestone payments | Recognition of deferred revenue related to up-front and other milestone payments | Total Bayer HealthCare collaboration revenue |


| Commercial Lines PersonalLines Property & Casualty Other Operations Total Property & Casualty Insurance | Workers’ compensation | Workers’ compensation discount accretion | General liability | Package business | Commercial property | Auto liability | Professional liability | Bond | Homeowners | Net asbestos reserves | Net environmental reserves | Catastrophes | Uncollectible reinsurance | Other reserve re-estimates, net | Total prior accident year development | (Unaudited) | 1st Year | Group long-term disability | Group life and accident, excluding premium waiver |


| December 31 | 2010 | (Dollars in millions) | U.S. commercial-2 | Commercial real estate | Commercial lease financing | Non-U.S.commercial | 40,944 | U.S. small business commercial | Total commercial utilized reservable criticized exposure |


Software Development Costs Capitalization of software development costs for software to be sold, leased, or otherwise marketed begins upon the establishment of technological feasibility, which is generally the completion of a working prototype that has been certified as having no critical bugs and is a release candidate.
Amortization begins once the software is ready for its intended use, generally based on the pattern in which the economic benefits will be consumed.
To date, software development costs incurred between completion of a working prototype and general availability of the related product have not been material.
Internal Use Software We capitalize costs associated with customized internal-use software systems that have reached the application development stage.
Such capitalized costs include external direct costs utilized in developing or obtaining the applications and payroll and payroll-related expenses for employees, who are directly associated with the development of the applications.
Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose.
Income Taxes We use the asset and liability method of accounting for income taxes.
Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year.
In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards.
We record a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not.
Taxes Collected from Customers We net taxes collected from customers against those remitted to government authorities in our financial statements.
Accordingly, taxes collected from customers are not reported as revenue.


(p) Comprehensive Income (Loss) Comprehensive income (loss) includes foreign currency translation of assets and liabilities of foreign subsidiaries, effects of exchange rate changes on intercompany balances of a long-term nature and pensions.
The Company does not provide income taxes on currency translation adjustments, as earnings from foreign subsidiaries are considered to be indefinitely reinvested.
Effective January 1, 2013, the Company adopted recently issued accounting guidance that requires the Company to separately disclose, on a prospective basis, the change in each component of other comprehensive income (loss) relating to reclassification adjustments and current period other comprehensive income (loss).
As the guidance relates to presentation only, the adoption did not have a material impact on the Companys results of operations, financial position or cash flows.


| 2018 2017 2016 | Outstanding at beginning of year | Granted | Forfeited | Vested | Outstanding at end of year | Weighted average grant-date fair value: | Granted | Forfeited | Vested | Outstanding at end of year |


| Operating Revenues (in millions) % of Total Number of Customers % of Total Estimated Population Served (in millions) % of Total | New Jersey | Pennsylvania | Missouri | Illinois(a) | Indiana | California | West Virginia(b) | Subtotal (Top Seven States) | Other(c) | Total Regulated Businesses |


| December 31, | Balance Sheet Data | Cash, cash equivalents and marketable securities | Short-term borrowings | Current portion of long-term debt | Long-term debt | Total debt |


| Year Ended December 31, | 2009 | $ | ($ in thousands) | Commissions | Technology products and services | Information and user access fees | Investment income | Other | Total revenues |


| . Year ended December 31 | Amounts | In millions of dollars, except shares in thousands | Accumulated other comprehensive income (loss) | Balance, beginning of year | Adjustment to opening balance, net of taxes(5) | Adjusted balance, beginning of period | Net change in unrealized gains and losses on investment securities, net of taxes | Net change in cash flow hedges, net of taxes | Net change in foreign currency translation adjustment, net of taxes | Pension liability adjustment, net of taxes(6) | Adjustments to initially apply SFAS 158, net of taxes | Net change inAccumulated other comprehensive income (loss) | Balance, end of year | Total common stockholders’ equity and common shares outstanding | Total stockholders’ equity | Comprehensive income (loss) | Net income (loss) | Net change inAccumulated other comprehensive income (loss) | Comprehensive income (loss) |


| December 31, 2012 December 31, 2011 | (In millions) | Investment securities available for sale | Long-term debt-1 | Total |


| (in millions) 2016 2015 | Beginning of year balance | Acquisitions-1 | Goodwill adjustments related to Quellos-2 | End of year balance |


| 2005 2004 | Aircraft | Accumulated amortization | $1,739 | Year | 2006 | 2007 | 2008 | 2009 | 2010 | After 2010 | Total | Less: imputed interest | Present value of minimum capitalized lease payments | Less: current portion | Long-term capitalized lease obligations |