CBRE GROUP, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued) 82 In March 2011, we entered into five interest rate swap agreements, all with effective dates in October 2011, and immediately designated them as cash flow hedges in accordance with FASB ASC Topic 815.
The purpose of these interest rate swap agreements is to attempt to hedge potential changes to our cash flows due to the variable interest nature of our senior term loan facilities.
The total notional amount of these interest rate swap agreements is $400.0 million, with $200.0 million having expired in October 2017 and $200.0 million expiring in September 2019.
The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings.
There was no significant hedge ineffectiveness for the years ended December 31, 2017, 2016 and 2015.
The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in accumulated other comprehensive loss on the balance sheet and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.
We reclassified $7.4 million, $10.7 million and $11.9 million for the years ended December 31, 2017, 2016, and 2015, respectively, from accumulated other comprehensive loss to interest expense.
During the next twelve months, we estimate that $3.1 million will be reclassified from accumulated other comprehensive loss to interest expense.
In addition, we recorded a net gain of $0.9 million, and net losses of $2.4 million and $6.5 million for the years ended December 31, 2017, 2016 and 2015, respectively, to other comprehensive loss in relation to such interest rate swap agreements.
As of December 31, 2017 and 2016, the fair values of such interest rate swap agreements were reflected as a $4.8 million liability and a $13.2 million liability, respectively, and were included in other liabilities in the accompanying consolidated balance sheets.
Additionally, our foreign operations expose us to fluctuations in foreign exchange rates.
These fluctuations may impact the value of our cash receipts and payments in terms of our functional (reporting) currency, which is U. S.  dollars.
We enter into derivative financial instruments to attempt to protect the value or fix the amount of certain obligations in terms of our reporting currency, the U. S.  dollar.
In March 2014, we began a foreign currency exchange forward hedging program by entering into foreign currency exchange forward contracts, including agreements to buy U. S.  dollars and sell Australian dollars, British pound sterling, Canadian dollars, euros and Japanese yen.
The purpose of these forward contracts was to attempt to mitigate the risk of fluctuations in foreign currency exchange rates that would adversely impact some of our foreign currency denominated EBITDA.
Hedge accounting was not elected for any of these contracts.
As such, changes in the fair values of these contracts were recorded directly in earnings.
As of December 31, 2017 and 2016, we had no foreign currency exchange forward contracts outstanding as the program expired in December 2016.
Included in the consolidated statement of operations were net gains of $7.7 million and $24.2 million for the years ended December 31, 2016 and 2015, respectively, resulting from net gains on foreign currency exchange forward contracts.
We also routinely monitor our exposure to currency exchange rate changes in connection with certain transactions and sometimes enter into foreign currency exchange option and forward contracts to limit our exposure to such transactions, as appropriate.
In the ordinary course of business, we also sometimes utilize derivative financial instruments in the form of foreign currency exchange contracts to attempt to mitigate foreign currency exchange exposure resulting from intercompany loans.
The net impact on our financial position and earnings resulting from these foreign currency exchange forward and options contracts has not been significant.8.
Property and Equipment Property and equipment consists of the following (dollars in thousands)


Shelf Registration Statement On September 3, 2015, we filed a shelf registration statement with the SEC, registering the offer and sale from time to time of an indeterminate amount of, among other securities, debt securities, preference shares, Class A Ordinary Shares and convertible securities.
Our ability to access the market as a source of liquidity is dependent on investor demand, market conditions and other factors.
D. R.  HORTON, INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) NOTE K — COMMITMENTS AND CONTINGENCIES Warranty Claims At September 30, 2011, the Company had liabilities of $0.8 million for the remaining repair costs of homes in its Florida and Louisiana markets constructed during 2005 through 2007 which contain or are suspected to contain allegedly defective drywall manufactured in China (Chinese Drywall) that may be responsible for accelerated corrosion of certain metals in the home.
Through September 30, 2011, the Company has spent approximately $6.4 million to remediate these homes.
While the Company will seek reimbursement for these remediation costs from various sources, it has not recorded a receivable for potential recoveries as of September 30, 2011.
If additional homes in these or other markets are found to contain Chinese Drywall, the Company would likely be required to further increase its warranty reserve for this matter in the future.
The Company has been named as a defendant in several lawsuits in Louisiana and Florida pertaining to Chinese Drywall.
As these actions are still in their early stages, the Company is unable to express an opinion as to the amount of damages, if any, beyond what has been reserved for repair as discussed above.
Changes in the Company’s warranty liability during fiscal 2011 and 2010 were as follows:


Nature of Operations Operations and Segmentation – We are a Class I railroad operating in the U. S.  Our network includes 31,974 route miles, linking Pacific Coast and Gulf Coast ports with the Midwest and Eastern U. S.  gateways and providing several corridors to key Mexican gateways.
We own 26,012 miles and operate on the remainder pursuant to trackage rights or leases.
We serve the western two-thirds of the country and maintain coordinated schedules with other rail carriers for the handling of freight to and from the Atlantic Coast, the Pacific Coast, the Southeast, the Southwest, Canada, and Mexico.
Export and import traffic is moved through Gulf Coast and Pacific Coast ports and across the Mexican and Canadian borders.
The Railroad, along with its subsidiaries and rail affiliates, is our one reportable operating segment.
Although we provide and review revenue by commodity group, we analyze the net financial results of the Railroad as one segment due to the integrated nature of our rail network.
The following table provides freight revenue by commodity group:


Marketing Costs - We incur certain costs to support our products through programs that include advertising, marketing, consumer engagement and trade promotions.
The costs of our advertising and marketing programs are expensed in accordance with U. S.  GAAP.
Recognition of the cost related to our consumer engagement and trade promotion programs contain uncertainties due to the judgment required in estimating the potential performance and compliance for each program.
For volume-based incentives provided to customers, management continually assesses and estimates, by customer, the likelihood of the customer's achieving the specified targets, and records the reduction of revenue as the sales are made.
For other trade promotions, management relies on estimated utilization rates that have been developed from historical experience.
Changes in the assumptions used in estimating the cost of any individual marketing program would not result in a material change in our financial position, results of operations or operating cash flows.


| Years Ended December 31, | 2010 | (In millions) | Current: | Federal | State and local | Foreign | Subtotal | Deferred: | Federal | State and local | Foreign | Subtotal | Provision for income tax expense (benefit) |


| December 31, 2010 December 31, 2009 | Carrying   Amount | 5.625% Senior Notes due July 2013-1 | 12% Senior Notes due February 2014-1 | 7.875% Senior Notes due June 2017 | 6.875% Senior Notes due July 2033 | Other foreign loans | Other domestic loans | Total debt |


HASBRO, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements — (Continued) (Thousands of Dollars and Shares Except Per Share Data) substantial portion of its customers’ ability to discharge amounts owed is generally dependent upon the overall retail economic environment.
Sales to the Company’s three largest customers, Wal-Mart Stores, Inc. , Toys “R” Us, Inc.  and Target Corporation, amounted to 16%, 9% and 8%, respectively, of consolidated net revenues during 2014, 16%, 10% and 9%, respectively, of consolidated net revenues during 2013 and 17%, 11% and 10%, respectively, of consolidated net revenues during 2012.
These sales were primarily within the U. S.  and Canada segment.
Hasbro purchases certain components used in its manufacturing process and certain finished products from manufacturers in the Far East.
The Company’s reliance on external sources of manufacturing can be shifted, over a period of time, to alternative sources of supply for products it sells, should such changes be necessary.
However, if the Company were prevented from obtaining products from a substantial number of its current Far East suppliers due to political, labor or other factors beyond its control, the Company’s operations would be disrupted, potentially for a significant period of time, while alternative sources of product were secured.
The imposition of trade sanctions, quotas or other protectionist measures by the United States or the European Union against a class of products imported by Hasbro from, or the loss of “normal trade relations” status with, China could significantly increase the cost of the Company’s products imported into the United States or Europe.
The Company has agreements which allow it to develop and market products based on properties owned by third parties including its license with Marvel Entertainment, LLC and Marvel Characters B. V.  (together “Marvel”) and its license with Lucas Licensing Ltd.  and Lucasfilm Ltd.  (together “Lucas”).
These licenses have multi-year terms and provide the Company with the right to market and sell designated classes of products based on Marvel’s portfolio of brands, including SPIDER-MAN and THE AVENGERS, and Lucas’s STAR WARS brand.
Hasbro’s net revenues from these licenses can be significant in any given year based on the level of third party entertainment.
Both Marvel and Lucas are owned by The Walt Disney Company


Five-Year Performance Comparison  The following graph provides an indicator of cumulative total shareholder returns for the Corporation as compared to the peer group index (described above), the DJ Trans, and the S&P 500.
The graph assumes that $100 was invested in the common stock of Union Pacific Corporation and each index on December 31, 2012 and that all dividends were reinvested.
The information below is historical in nature and is not necessarily indicative of future performance.


| Years Ended March 31, | (Dollars in millions) | Gross Profit | Distribution Solutions | Technology Solutions | Total | Gross Profit Margin | Distribution Solutions | Technology Solutions | Total |


| Credit valuation adjustment gain (loss) | In millions of dollars | CVA on derivatives, excluding monolines | CVA related to monoline counterparties | Total CVA—derivative instruments |


| 2011 2010 2009 | Home & Family-1 | Rubbermaid Consumer | Baby & Parenting | Décor | Other | 2,390.5 | Office Products-1 | Tools, Hardware & Commercial Products-1 | $5,864.6 |


| In millions December 31 2015 December 312014 | Home equity and residential real estate loans – excluding purchased impaired loans (a) | Home equity and residential real estate loans – purchased impaired loans (b) | Government insured or guaranteed residential real estate mortgages (a) | Difference between outstanding balance and recorded investment in purchased impairedloans (c) | Total home equity and residential real estate loans (a) |


| 2005 | Net income as reported | Add: Total stock-based employee compensation | expense recorded during the year | Deduct: Total stock-based employee compensation expense | determined under fair-value based method for all awards, | net of tax effects | Pro forma net income | Net income per share as reported: | Basic | Diluted | Pro forma net income per share: | Basic | Diluted |


| Year Ended December 31, | 2017 | $ | Operating expenses: | Research and development | Sales and marketing | General and administrative | Total operating expenses |


| 2004 2003 2002 | Net cash flows from operating activities: | Automotive sector | Financial Services sector | Sum of sector operating cash flows (prior presentation) | Reclassification from investing cash flows* | Consolidated net cash flows from operating activities | Net cash flows from investing activities: | Automotive sector | Financial Services sector | Elimination of net intersector investing activity | Sum of sector investing cash flows (prior presentation) | Reclassification to operating cash flows* | Consolidated net cash flows from investing activities |


Actuarial Assumptions The actuarial assumptions used to determine the benefit obligations at December 31 of each year, and to determine the net periodic benefit cost for each subsequent year, were as follows:
The decrease in the discount rate from December 31, 2011 to December 31, 2012 and from December 31, 2010 to December 31, 2011 resulted in an increase in the projected benefit obligations of our qualified defined benefit pension plans of approximately $4.5 billion and $3.8 billion at December 31, 2012 and 2011.
The long-term rate of return assumption represents the expected average rate of earnings on the funds invested or to be invested to provide for the benefits included in the benefit obligations.
That assumption is based on several factors including historical market index returns, the anticipated long-term asset allocation of plan assets, the historical return data, plan expenses, and the potential to outperform market index returns.
Plan Assets Investment policies and strategies  Lockheed Martin Investment Management Company (LMIMCo), our whollyowned subsidiary, has the fiduciary responsibility for making investment decisions related to the assets of our postretirement benefit plans.
LMIMCos investment objectives for the assets of these plans are (1) to minimize the net present value of expected funding contributions; (2) to ensure there is a high probability that each plan meets or exceeds our actuarial longterm rate of return assumptions; and (3) to diversify assets to minimize the risk of large losses.
The nature and duration of benefit obligations, along with assumptions concerning asset class returns and return correlations, are considered when determining an appropriate asset allocation to achieve the investment objectives.
Investment policies and strategies governing the assets of the plans are designed to achieve investment objectives within prudent risk parameters.
Risk management practices include the use of external investment managers; the maintenance of a portfolio diversified by asset class, investment approach, and security holdings; and the maintenance of sufficient liquidity to meet benefit obligations as they come due.
LMIMCos investment policies require that asset allocations of postretirement benefit plans be maintained within the following approximate ranges:


| Distribution Facility Location Approximate Square Footage Owned/Leased Facility | Franklin, Kentucky | Pendleton, Indiana | Macon, Georgia | Waco, Texas | Casa Grande, Arizona | Hagerstown, Maryland(a) | Hagerstown, Maryland(a) | Waverly, Nebraska | Seguin, Texas(b) | Lakewood, Washington | Longview, Texas(b) |


| 2008 Survival Ratios 2007 Survival Ratios | 3 Year | Gross | Asbestos | Environmental | Total |


| December 31, 2017 December 31, 2016 | Dollars in millions | Geography | Pennsylvania | New Jersey | Ohio | Illinois | Maryland | Michigan | North Carolina | Florida | Kentucky | Indiana | All other states | Total home equityloans | Lien type | 1st lien | 2nd lien | Total home equityloans |


The following table presents the components of net periodic benefit cost recognized in income and other amounts recognized in Accumulated other comprehensive income (loss) with respect to the defined benefit pension plans and other postretirement benefit plans for the year ended December 31, 2007 and 2006 (no amounts related to the adoption of FAS 158 were recognized in Accumulated other comprehensive income (loss) for the year ended 2005):
The estimated net loss and prior service credit that will be amortized from Accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $31 million and $11 million, respectively, for AIGs scombined defined benefit pension plans.
For the defined benefit postretirement plans, the estimated amortization from Accumulated other comprehensive income for net loss, prior service credit and transition obligation that will be amortized into net periodic benefit cost over the next fiscal year will be less than $5 million in the aggregate.


| For the Years Ended December 31, Percent Increase (Decrease) | 2016 | (in millions, except percentages) | Personnel | Professional fees | Data processing and telecommunications | Foreign exchange activity | Other | General and administrative expenses | Special Item1 | Adjusted general and administrative expenses (excluding Special Item)1 |


Mortgage servicing rights The Company accounts for mortgage servicing rights (MSRs) at fair value in accordance with SFAS 156.
Fair value for MSRs is determined using an option-adjusted spread valuation approach.
This approach consists of projecting servicing cash flows under multiple interest-rate scenarios and discounting these cash flows using risk-adjusted rates.
The model assumptions used in the valuation of MSRs include mortgage prepayment speeds and discount rates.
The fair value of MSRs is primarily affected by changes in prepayments that result from shifts in mortgage interest rates.
In managing this risk, the Company hedges a significant portion of the values of its MSRs through the use of interest-rate derivative contracts, forwardpurchase commitments of mortgage-backed securities, and purchased securities classified as trading.
See Note 23 on page 175 for further discussions regarding the accounting and reporting of MSRs.
These MSRs, which totaled $5.7 billion and $8.4 billion as of December 31, 2008 and December 31, 2007, respectively, are classified as Mortgage servicing rights on Citigroups Consolidated Balance Sheet.
Changes in fair value of MSRs are recorded in Commissions and fees in the Companys Consolidated Statement of Income.


| Level 3 Instruments Only Dollars in millions Fair Value Valuation Techniques Unobservable Inputs Range (Weighted Average) | Residential mortgage-backed non-agency securities | Asset-backed securities | State and municipal securities | Other debt securities | Residential mortgage loan commitments | Trading securities – Debt | Residential mortgage loans held for sale | Residential mortgage servicing rights | Commercial mortgage loans held for sale | Equity investments – Direct investments | Equity investments – Indirect (d) | Loans – Residential real estate | Loans – Home equity | BlackRock Series C Preferred Stock | BlackRock LTIP | Other derivative contracts | Swaps related to sales of certain Visa Class B common shares | Insignificant Level 3 assets, net of liabilities (f) | Total Level 3 assets, net of liabilities (g) |


| (in millions) Carrying value of financial instruments as of January 1, 2007 (c) Transition gain/(loss) recorded in Retained earnings (d) Adjusted carrying value of financial instruments as of January 1, 2007 | Federal funds sold and securities purchased under resale agreements | Trading assets – Debt and equity instruments | Loans | Other assets(a) | Deposits(b) | Federal funds purchased and securities sold under repurchase agreements | Other borrowed funds | Beneficial interests issued by consolidated VIEs | Long-term debt | Pretax cumulative effect of adoption of SFAS 159 | Deferred income taxes | Reclassification from Accumulated other comprehensive income (loss) | Cumulative effect of adoption of SFAS 159 | Year ended December 31,(inmillions, except headcount and ratios) | Revenue by product: | Lending | Treasury services | Investment banking | Other | Total Commercial Banking revenue | IB revenue, gross(a) | Revenue by business: | Middle Market Banking | Mid-Corporate Banking | Real Estate Banking | Other | Total Commercial Banking revenue | Selected average balances: | Total assets | Loans: | Loans retained | Loans held-for-sale and loans at fair value | Total loans(b) | Liability balances(c) | Equity | Average loans by business: | Middle Market Banking | Mid-Corporate Banking | Real Estate Banking | Other | Total Commercial Banking loans | Headcount | Credit data and quality statistics: | Net charge-offs | Nonperforming loans | Allowance for credit losses: | Allowance for loan losses | Allowance for lending-related commitments | Total allowance for credit losses | Net charge-off rate(b) | Allowance for loan losses to average loans(b) | Allowance for loan losses to nonperforming loans | Nonperforming loans to average loans |


Managements Discussion and Analysis Net revenues in Equities were $8.21 billion for 2012, essentially unchanged compared with 2011.
Net revenues in securities services were significantly higher compared with 2011, reflecting a gain of $494 million on the sale of our hedge fund administration business.
In addition, equities client execution net revenues were higher than 2011, primarily reflecting significantly higher results in cash products, principally due to increased levels of client activity.
These increases were offset by lower commissions and fees, reflecting declines in the United States, Europe and Asia.
Our average daily volumes during 2012 were lower in each of these regions compared with 2011, consistent with listed cash equity market volumes.
During 2012, Equities operated in an environment generally characterized by an increase in global equity prices and lower volatility levels.
The net loss attributable to the impact of changes in our own credit spreads on borrowings for which the fair value option was elected was $714 million ($433 million and $281 million related to Fixed Income, Currency and Commodities Client Execution and equities client execution, respectively) for 2012, compared with a net gain of $596 million ($399 million and $197 million related to Fixed Income, Currency and Commodities Client Execution and equities client execution, respectively) for 2011.
During 2012, Institutional Client Services operated in an environment generally characterized by continued broad market concerns and uncertainties, although positive developments helped to improve market conditions.
These developments included certain central bank actions to ease monetary policy and address funding risks for European financial institutions.
In addition, the U. S.  economy posted stable to improving economic data, including favorable developments in unemployment and housing.
These improvements resulted in tighter credit spreads, higher global equity prices and lower levels of volatility.
However, concerns about the outlook for the global economy and continued political uncertainty, particularly the political debate in the United States surrounding the fiscal cliff, generally resulted in client risk aversion and lower activity levels.
Also, uncertainty over financial regulatory reform persisted.
Operating expenses were $12.48 billion for 2012, 3% lower than 2011, primarily due to lower brokerage, clearing, exchange and distribution fees, and lower impairment charges, partially offset by higher net provisions for litigation and regulatory proceedings.
Pretax earnings were $5.64 billion in 2012, 27% higher than 2011.


| Tier 1 risk-based capital -1 Total risk-based capital -1 Tier 1 leverage capital -1 | (dollar amounts in thousands) | Huntington Bancshares Incorporated | Amount | Ratio | The Huntington National Bank | Amount | Ratio |


| 2017 2016 | December 31, (in millions) | U.S. GAAP nettable derivative receivables | Interest rate contracts: | Over-the-counter (“OTC”) | OTC–cleared | Exchange-traded(a) | Total interest rate contracts | Credit contracts: | OTC | OTC–cleared | Total credit contracts | Foreign exchange contracts: | OTC | OTC–cleared | Exchange-traded(a) | Total foreign exchange contracts | Equity contracts: | OTC | Exchange-traded(a) | Total equity contracts | Commodity contracts: | OTC | Exchange-traded(a) | Total commodity contracts | Derivative receivables with appropriate legal opinion | Derivative receivables where an appropriate legal opinion has not been either sought or obtained | Total derivative receivables recognized on the Consolidated balance sheets | Collateral not nettable on the Consolidated balance sheets(c)(d) | Net amounts |


Our computation of expected volatility for 2015, 2014 and 2013 was based on a combination of historical and market-based implied volatility from traded options on our stock.
Our computation of expected life was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior.
The interest rate for periods within the contractual life of the award was based on the U. S.  Treasury yield curve in effect at the time of grant.
The estimation of awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from our current estimates, such amounts will be recorded as a cumulative adjustment in the period estimates are revised.
We consider many factors when estimating forfeitures, including employee class and historical experience.


The following discusses the underwriting results for each of our segments for the periods indicated.
U. S.  Reinsurance.
The following table presents the underwriting results and ratios for the U. S.  Reinsurance segment for the periods indicated.


| Current assets $513,782 | Property, plant and equipment | Other assets | Trademarks | Goodwill | Total assets acquired | Current liabilities | Long-term liabilities | Total liabilities assumed | Net assets acquired |


| Television Service InternationalSubscribers/Viewers(millions) | Quest | Dsport | Nordic broadcast networks(a) | Quest Red | Giallo | Frisbee | Focus | K2 | Nove | Discovery HD World | DKISS | Shed | Discovery HD Theater | Discovery History | Discovery Civilization | Discovery World | Discovery en Espanol (U.S.) | Discovery Familia (U.S.) | Discovery Historia |


| ($ in millions) 2012 2011 2010 | Allstate Protection | Auto | Homeowners | Other lines | Total Allstate Protection | Discontinued Lines and Coverages | Asbestos | Environmental | Other discontinued lines | Total Discontinued Lines and Coverages | Total Property-Liability |


| (in millions) Net Unrealized Gains (Losses) on Derivatives Net Unrealized Gains (Losses) on Securities Defined Benefit Pension Plans Total AOCI | Balance at January 1, 2012 | Other comprehensive (loss) income before reclassifications | Other than temporary impairment not recognized in earnings on securities | Amounts reclassified from other comprehensive income | Net other comprehensive income (loss) | Balance at December 31, 2012 | Other comprehensive loss before reclassifications | Other than temporary impairment not recognized in earnings on securities | Amounts reclassified from other comprehensive income | Net other comprehensive (loss) income | Balance at December 31, 2013 | Other comprehensive income before reclassifications | Other than temporary impairment not recognized in earnings on securities | Amounts reclassified from other comprehensive income | Net other comprehensive income (loss) | Balance at December 31, 2014 |


(1) In the first quarter of 2016, we completed the acquisition of 100% of the ordinary voting shares of Veda for cash consideration plus debt assumed of approximately $1.9 billion.
The acquisition provides a strong platform for Equifax to offer data and analytic services and further broaden the Companys geographic footprint.
Additionally, on August 23, 2016, the Company completed the acquisition of 100% of the assets and certain liabilities of unemployment tax and claims management specialists Barnett & Associates (Barnett), as well as the verifications business, Computersoft, LLC (Computersoft).
For the year ended December 31, 2016, we recorded $40.2 million ($28.2 million, net of tax) for Veda acquisition related amounts.
Of this amount, $30.1 million relates to transaction and integration costs in operating income, $9.2 million is recorded in other income and is the impact of
was part of our Employer Services business within our Workforce Solutions operating segment, for a total of $47.5 million.
$3.5 million of the proceeds of the sale of Talent Management Services was placed into an escrow account to be released to us at a later date.
During 2014, we received $0.6 million of the proceeds from the escrow.
For additional information about our acquisitions, see Note 3 of the Notes to Consolidated Financial Statements in this report.
Financing Activities


The contracts were valued as of April 1, 2002, and an asset and a corresponding gain of $127 million, net of income taxes, was recorded as a cumulative effect of a change in accounting principle in the second quarter of 2002.
The majority of the gain recorded relates to the Warrior Run contract, as the asset value of the Deepwater contract on April 1, 2002, was less than $1 million.
The Warrior Run contract qualifies and was designated as a cash flow hedge as defined by SFAS No.133 and hedge accounting is applied for this contract subsequent to April 1, 2002.
The contract valuations were performed using current forward electricity and gas price quotes and current market data for other contract variables.
The forward curves used to value the contracts include certain assumptions, including projections of future electricity and gas prices in periods where future prices are not quoted.
Fluctuations in market prices and their impact on the assumptions will cause the value of these contracts to change.
Such fluctuations will increase the volatility of the Company’s reported results of operations.11.
COMMITMENTS, CONTINGENCIES AND RISKS OPERATING LEASES—As of December 31, 2002, the Company was obligated under long-term non-cancelable operating leases, primarily for office rental and site leases.
Rental expense for operating leases, excluding amounts related to the sale/leaseback discussed below, was $31 million $32 million and $13 million in the years ended December 31, 2002, 2001and 2000, respectively, including commitments of businesses classified as discontinued amounting to $6 million in 2002, $16 million in 2001 and $6 million in 2000.
The future minimum lease commitments under these leases are as follows (in millions):


| ( In millions) Employee- Related   Costs Asset   Write-offs Contract Terminations Other Exit Costs Total | Fiscal 2009 | Fiscal 2010 | Charges recorded through June 30, 2010 |


| Year Ended December 31 2007 2006 | (In millions, except per share data) | Net income attributable to Loews common stock: | Income from continuing operations | Discontinued operations, net | Net income attributable to Loews common stock | Net income attributable to Carolina Group stock | Consolidated net income | Net income per share: | Loews common stock | Income from continuing operations | Discontinued operations, net | Loews common stock | Carolina Group stock |


| December 31 2014 2013 2012 | Michigan | Texas | California | Other Markets: | Arizona | Florida | Canada | Total Other Markets | Total | In millions | Maturities of long-term debt (a) | Lease obligations | Purchase obligations (b) | Total (c) | Natural Gas and Casinghead Gas (MMcf) | United States | Proved reserves as of: | December 31, 2004 | Revisions of previous estimates-2 | Extensions, discoveries and other additions-3 | Purchase of minerals in place-4 | Sale of minerals in place | Production | December 31, 2005 | Revisions of previous estimates-5 | Extensions, discoveries and other additions-6 | Purchase of minerals in place-7 | Sale of minerals in place-8 | Production | December 31, 2006 | Revisions of previous estimates-9 | Extensions, discoveries and other additions-10 | Purchase of minerals in place | Sale of minerals in place | Production | December 31, 2007 | Proved developed reserves as of: | December 31, 2004 | December 31, 2005 | December 31, 2006 | December 31, 2007 |


| Year Ended December 31, 2014 Versus 2013 Year Ended December 31, 2013 Versus 2012 | (in millions) | Interest Income | Interest-bearing cash and due from banks and deposits in banks | Taxable investment securities | Non-taxable investment securities | Total investment securities | Commercial | Commercial real estate | Leases | Total commercial | Residential mortgages | Home equity loans | Home equity lines of credit | Home equity loans serviced by others-1 | Home equity lines of credit serviced by others-1 | Automobile | Student | Credit cards | Other retail | Total retail | Total loans and leases | Loans held for sale | Other loans held for sale | Total interest income | Interest Expense | Checking with interest | Money market and savings | Term deposits | Total interest-bearing deposits | Interest-bearing deposits held for sale | Federal funds purchased and securities sold under agreements to repurchase | Other short-term borrowed funds | Long-term borrowed funds | Total borrowed funds | Total interest expense | Net interest income | High | Fiscal year ending January 29, 2012 | First Quarter (through March 10, 2011) | Fiscal year ended January 30, 2011 | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | Fiscal year ended January 31, 2010 | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | 2017 | 2018 | 2019 | 2020 | 2021 | Total | Years ended December 31, | Time Lapse Restricted Stock: | Pre-tax compensation expense | Tax benefit | Restricted stock expense, net of tax |


| Amount (In Millions) | 2012 net revenue | Retail electric price | Louisiana Act 55 financing savings obligation | Grand Gulf recovery | Volume/weather | Fuel recovery | MISO deferral | Decommissioning trusts | Other | 2013 net revenue |


| Plan Category Securities to be Issued Upon Exercise of Outstanding Options and Rights (a) Weighted Average Exercise Price of Outstanding Options (b) Securities Available For Future Issuance Under Equity Compensation Plans (c) | Equity compensation plans approved by security holders | Equity compensation plans not approved by securityholders | Total |


| 2007 2006 | Compensation expense: | Additional amount recorded | Reduction of income tax expense | Cash flows received from exercise of stock options | Tax benefit realized from reduction of income taxes payable: | Reduction of goodwill for tax benefit of vested stock options converted in the Amegy acquisition and exercised during the year | Included in common stock as net stock options exercised | Reduction of deferred tax assets and current income tax expense | Total tax benefit | 2007 | Weighted average of fair value for options granted | Weighted average assumptions used: | Expected dividend yield | Expected volatility | Risk-free interest rate | Expected life (in years) | Number of shares | Balance at December 31, 2004 | Granted | Assumed in acquisition | Exercised | Expired | Forfeited | Balance at December 31, 2005 | Granted | Exercised | Expired | Forfeited | Balance at December 31, 2006 | Granted | Exercised | Expired | Forfeited | Balance at December 31, 2007 | Outstanding stock options exercisable as of: | December 31, 2007 | December 31, 2006 | December 31, 2005 |


The Company entered into agreements with various governmental entities in the states of Kentucky, Georgia and Tennessee to implement tax abatement plans related to its distribution center in Franklin, Kentucky (Simpson County), its distribution center in Macon, Georgia (Bibb County), and its Store Support Center in Brentwood, Tennessee (Williamson County).
The tax abatement plans provide for reduction of real property taxes for specified time frames by legally transferring title to its real property in exchange for industrial revenue bonds.
This property was then leased back to the Company.
No cash was exchanged.
The lease payments are equal to the amount of the payments on the bonds.
The tax abatement period extends through the term of the lease, which coincides with the maturity date of the bonds.
At any time, the Company has the option to purchase the real property by paying off the bonds, plus $1.


Table of Contents SYNOPSYS, INC. IRS Examinations In the first quarter of fiscal 2014, the Company reached final settlement with the Examination Division of the IRS on the remaining fiscal 2012 issues and recognized approximately $10.0 million in unrecognized tax benefits.
In the fourth quarter of fiscal 2014, the Company reached final settlement with the IRS for its audit of fiscal 2013 and recognized approximately $5.5 million in unrecognized tax benefits.
In the third and fourth quarters of fiscal 2013, the Company reached settlement with the IRS for its audit of certain fiscal 2012 issues, which resulted in a decrease in unrecognized tax benefits of $6.0 million, decrease in deferred tax assets of $4.9 million and a $1.1 million net tax benefit.
In the third quarter of fiscal 2012, the Company reached a final settlement with the IRS for its audits of fiscal years 2010 and 2011.
As a result of the settlement, the Company’s unrecognized tax benefits decreased by $24.7 million and the impact to other balance sheet tax accounts was not material.
The net tax benefit resulting from the settlement was $15.9 million.
Non-U.
S.  Examinations Taiwan On February 11, 2014 and April 1, 2014, the Company reached settlements with the Taiwan tax authorities for fiscal years 2010 and 2009, respectively, with regard to certain transfer pricing issues.
As a result of the settlements and the application of the settlement to other open fiscal years, the Company’s unrecognized tax benefits decreased by $5.1 million.
The net tax benefit resulting from the settlements and the application to other open fiscal years was $3.9 million.
On June 21, 2012, the Company reached a settlement with the Taiwan tax authorities for fiscal 2008 with regard to certain transfer pricing issues.
As a result of the settlement and the application of the settlement to other open fiscal years, the Company’s unrecognized tax benefits decreased by $16.5 million.
The net tax benefit resulting from the settlement and the application to other open fiscal years was $14.7 million.
Certain of the Company’s income tax returns in Taiwan are under review for fiscal years 2011 through 2013.
The Company believes that it has adequately provided for potential tax adjustments, including interest and potential penalties.
Hungary On March 5, 2012, the Company reached a settlement with the Hungarian tax authorities with regard to its fiscal years 2006 through 2008.
The settlement resulted in a $5.1 million cash payment.
On May 10, 2012 the Company reached a settlement with the Hungarian tax authorities for fiscal years 2009 and 2010.
The settlement resulted in a $6.3 million benefit principally from interest in the second quarter, a $3.2 million reduction to prepaid taxes in the third quarter, and a cash payment of $10.9 million in the fourth quarter of fiscal 2012.
The settlements of fiscal years 2006 through 2010 reduced unrecognized tax benefits by $27.0 million and $24.2 million in the second and third quarter of fiscal 2012, respectively.
Note 12.
Other Income (Expense), Net The following table presents the components of other income (expense), net:


Stock Options and Other Stock Plans We have 100,962 options outstanding under the 1993 Stock Option and Retention Stock Plan of Union Pacific Corporation (1993 Plan).
There are 7,140 restricted shares outstanding under the 1992 Restricted Stock Plan for Non-Employee Directors of Union Pacific Corporation.
We no longer grant options or awards of retention shares and units under these plans.
In April 2000, the shareholders approved the Union Pacific Corporation 2000 Directors Plan (Directors Plan) whereby 1,100,000 shares of our common stock were reserved for issuance to our non-employee directors.
Under the Directors Plan, each non-employee director, upon his or her initial election to the Board of Directors, receives a grant of 2,000 shares of retention shares or retention stock units.
Prior to December 31, 2007, each non-employee director received annually an option to purchase at fair value a number of shares of our common stock, not to exceed 10,000 shares during any calendar year, determined by dividing 60,000 by 1/3 of the fair market value of one share of our common stock on the date of such Board of Directors meeting, with the resulting quotient rounded up or down to the nearest 50 shares.
As of December 31, 2009, 18,000 restricted shares were outstanding under the Directors Plan and 292,000 options were outstanding under the Directors Plan.
The Union Pacific Corporation 2001 Stock Incentive Plan (2001 Plan) was approved by the shareholders in April 2001.
The 2001 Plan reserved 24,000,000 shares of our common stock for issuance to eligible employees of the Corporation and its subsidiaries in the form of non-qualified options, incentive stock options, retention shares, stock units, and incentive bonus awards.
Non-employee directors were not eligible for awards under the 2001 Plan.
As of December 31, 2009, 3,366,230 options were outstanding under the 2001 Plan.
We no longer grant any stock options or other stock or unit awards under this plan.
The Union Pacific Corporation 2004 Stock Incentive Plan (2004 Plan) was approved by shareholders in April 2004.
The 2004 Plan reserved 42,000,000 shares of our common stock for issuance, plus any shares subject to awards made under the 2001 Plan and the 1993 Plan that were outstanding on April 16, 2004, and became available for regrant pursuant to the terms of the 2004 Plan.
Under the 2004 Plan, nonqualified options, stock appreciation rights, retention shares, stock units, and incentive bonus awards may be granted to eligible employees of the Corporation and its subsidiaries.
Non-employee directors are not eligible for awards under the 2004 Plan.
As of December 31, 2009, 8,939,710 options and 3,778,997 retention shares and stock units were outstanding under the 2004 Plan.
Pursuant to the above plans 33,559,150; 36,961,123; and 38,601,728 shares of our common stock were authorized and available for grant at December 31, 2009, 2008, and 2007, respectively.
Stock Options  We estimate the fair value of our stock option awards using the Black-Scholes option pricing model.
Groups of employees and non-employee directors that have similar historical and expected exercise behavior are considered separately for valuation purposes.
The table below shows the annual weighted-average assumptions used for valuation purposes:


Table of Contents certain allocated direct costs.
As part of this review, we allocate certain corporate overhead costs to a corporate account.
We do not allocate income taxes to our segments.
Additionally, our management reporting model is predicated on average asset balances; therefore, period-end asset balances are not presented for segment reporting purposes.
Changes in an individual client’s primary relationship designation have resulted, and in the future may result, in the inclusion of certain clients in different segments in different periods.
Effective January 1, 2011, we have three segments for management reporting purposes: Global Commercial Bank, SVB Private Bank and SVB Capital.
Previously, we reported based on four segments: Global Commercial Bank, Relationship Management, SVB Capital and Other Business Services.
We have reclassified all prior period amounts to conform to the current period’s presentation.
Refer to Note 20—“Segment Reporting” of the “Notes to Consolidated Financial Statements” under Part II, Item 8 of this report for further details.
The following is our segment information for 2011, 2010 and 2009, respectively.


| Year Ended December 31, | 2012 | Electric Energy Delivered(millions of kWh) | Total deliveries to O&R full service customers | Delivery service for retail choice customers | Total Deliveries In Franchise Area | Electric Energy Delivered($ in millions) | Total deliveries to O&R full service customers | Delivery service for retail choice customers | Other operating revenues | Total Deliveries In Franchise Area | Average Revenue Per kWh Sold(Cents) | Residential | Commercial and Industrial |


| Year Ended December 31 2005 2004 2003 | Nuclear submarines | Surface combatants | Auxiliary and commercial ships | Repair and other services | $4,695 |


1.
Organization and Significant Accounting Policies (continued) Commodity Futures Contracts In addition to entering into supply arrangements in the normal course of business, the company, primarily for its discontinued operation, also enters into futures contracts to fix the cost of certain raw material purchases, principally copper and aluminum, with the objective of minimizing changes in cost due to market price fluctuations.
The hedging strategy for achieving this objective is to purchase commodities futures contracts on the open market of the London Metals Exchange (LME) or over the counter contracts based on the LME.
With one of its brokers, the company is required to make cash deposits on unrealized losses on commodity derivative contracts that exceed $10.0 million.
The after-tax gain of the effective portion of the contracts of $5.8 million as of December 31, 2010 was recorded in accumulated other comprehensive loss, and will be reclassified into cost of products sold or earnings from discontinued operations in the period in which the underlying transaction is recorded in earnings.
The effective portion of the contracts will be reclassified within one year.
Contracts related to the company's discontinued operation that expire after the expected closing date no longer qualify for hedge accounting, therefore the change in valuation from the announcement of the sale to year end of $0.7 million was recorded in earnings from discontinued operations.
Commodity hedges outstanding at December 31, 2010 are a total of approximately 10.9 million pounds of copper and aluminum.
Foreign Currency Forward Contracts The company is exposed to foreign currency exchange risk as a result of transactions in currencies other than the functional currency of certain subsidiaries.
The company utilizes foreign currency forward purchase and sale contracts to manage the volatility associated with foreign currency purchases, sales and certain intercompany transactions in the normal course of business.
Principal currencies include the Mexican peso, Canadian dollar and Euro.
Gains and losses on these instruments are recorded in accumulated other comprehensive loss, net of tax, until the underlying transaction is recorded in earnings.
When the hedged item is realized, gains or losses are reclassified from accumulated other comprehensive loss to the statement of earnings.
The assessment of effectiveness for forward contracts is based on changes in the forward rates.
These hedges have been determined to be effective.
The majority of the amounts in accumulated other comprehensive loss for cash flow hedges is expected to be reclassified into earnings within one year and all of the hedges will be reclassified into earnings no later than September 4, 2012.
Contracts related to the company's discontinued operation that expire after the expected closing date no longer qualify for hedge accounting, therefore the change in valuation from the announcement of the sale to year end of $0.4 million was recorded in earnings from discontinued operations.
The following table summarizes, by currency, the contractual amounts of the company's foreign currency forward contracts for continuing operations.


| Fair Value of Level 3 at December 31, 2016 (Millions of Dollars) Valuation Techniques Unobservable Inputs Range | Electricity | Discounted Cash Flow | Transmission Congestion Contracts/Financial Transmission Rights | Discount/(premium) to adjust auction prices for historical monthly realized settlements (b) | Inter-zonal forward price curves adjusted for historical zonal losses (b) | Total Con Edison — Commodity | Transmission Congestion Contracts | Discount/(premium) to adjust auction prices for historical monthly realized settlements (b) |


| Economic Value of Equity at Risk (%) | Basis point change scenario | Board policy limits | December 31, 2013 |


| AMOUNT RECLASSIFIED OUT OF AOCI | AOCI COMPONENTS | Unrealized (gains) and losses on derivative contracts: | Truck, Parts and Other | Foreign-exchange contracts | Cost of sales and revenues | Interest and other expense, net | Financial Services | Interest-rate contracts | Pre-tax expense increase (reduction) | Tax (benefit) expense | After-tax expense increase (reduction) | Unrealized (gains) and losses on marketable debt securities: | Marketable debt securities | Tax expense | After-tax income increase | Pension plans: | Truck, Parts and Other | Actuarial loss | Selling, general and administrative | 26.6 | Prior service costs | Selling, general and administrative | 1.2 | Financial Services | Actuarial loss | Pre-tax expense increase | Tax benefit | After-tax expense increase | Total reclassifications out of AOCI |


DISCONTINUED OPERATIONS The Company continues to focus its management and fi nancial resources on the McDonalds restaurant business as it believes the opportunities for growth remain signifi cant.
Accordingly, during the third quarter 2007, the Company sold its investment in Boston Market.
In 2006, the Company disposed of its investment in Chipotle via public stock offerings in the fi rst and second quarters and a tax-free exchange for McDonalds common stock in the fourth quarter.
As a result of the disposals during 2007 and 2006, both Boston Markets and Chipotles results of operations and transaction gains are refl ected as discontinued operations.
In connection with the Companys sale of its investment in Boston Market in August 2007, the Company received proceeds of approximately $250 million and recorded a gain of $68.6 million after tax.
In addition, Boston Markets net income (loss) for 2007, 2006 and 2005 was ($8.5) million, $6.9 million and $8.8 million, respectively.
In fi rst quarter 2006, Chipotle completed an IPO of 6.1 million shares resulting in a tax-free gain to McDonalds of $32.0 million to refl ect an increase in the carrying value of the Companys investment as a result of Chipotle selling shares in the public offering.
Concurrent with the IPO, McDonalds sold 3.0 million Chipotle shares, resulting in net proceeds to the Company of $61.4 million and an additional gain of $13.6 million after tax.
In second quarter 2006, McDonalds sold an additional 4.5 million Chipotle shares, resulting in net proceeds to the Company of $267.4 million and a gain of $127.8 million after tax, while still retaining majority ownership.
In fourth quarter 2006, the Company completely separated from Chipotle through a noncash, tax-free exchange of its remaining Chipotle shares for its common stock.
McDonalds accepted 18.6 million shares of its common stock in exchange for the 16.5 million shares of Chipotle class B common stock held by McDonalds and recorded a tax-free gain of $479.6 million.
In addition, Chipotles net income for 2006 was $18.2 million and 2005 was $15.8 million.
Boston Markets and Chipotles results of operations (exclusive of the transaction gains), which previously were included in Other Countries & Corporate, consisted of revenues and pretax income (loss) as follows:


| December 31, 2007 | Aaa | Cost or | Amortized | Cost | (In millions) | 2003 & Prior | 2004 | 2005 | 2006 | 2007 | Total |


REINSURANCE AGREEMENTS We have two wholly-owned captive insurance subsidiaries which provide reinsurance to third-party insurers related to insurance sold to our customers.
These subsidiaries enter into various types of reinsurance agreements with third-party insurers where the subsidiary assumes the risk of loss through either an excess of loss or quota share agreement up to 100% reinsurance.
In excess of loss agreements, these subsidiaries assume the risk of loss for an excess layer of coverage up to specified limits, once a defined first loss percentage is met.
In quota share agreements, the subsidiaries and third-party insurers share the responsibility for payment of all claims.
These subsidiaries provide reinsurance for accidental death & dismemberment, credit life, accident & health, lender placed


Capital Markets and Advisory Services CMAS provides financial products, advisory services and financing globally to our institutional investor clients in support of their investing and trading activities.
We also work with our commercial and corporate issuer clients to provide debt and equity underwriting and distribution capabilities, merger-related advisory services and risk management solutions using interest rate, equity, credit, currency and commodity derivatives, foreign exchange, fixed income and mortgage-related products.
The business may take positions in these products and participate in market-making activities dealing in government securities, equity and equity-linked securities, high-grade and high-yield corporate debt securities, commercial paper, mortgage-backed securities and ABS.
Underwriting debt and equity, securities research and certain market-based activities are executed through Banc of America Securities, LLC which is a primary dealer in the U. S. In January 2008, we announced changes in our CMAS business which better align the strategy of this business with GCIBs broader integrated platform.
We will continue to provide corporate, commercial and sponsored clients with debt and equity capital-raising services, strategic advice, and a full range of corporate banking capabilities.
We will reduce activities in certain structured products (e. g. , CDOs) and will resize the international platform to emphasize debt, cash management, and trading services, including rates and foreign exchange.
The realignment will result in the reduction of front office personnel with additional infrastructure headcount reduction to follow.
We also plan to sell our equity prime brokerage business.
CMAS evaluates its results using market-based revenue that is comprised of net interest income and noninterest income.
The following table presents further detail regarding market-based revenue.


Wood Products sales in the United States in 2005 of $1.6 billion were up 3% from $1.5 billion in 2004 and 18% from $1.3 billion in 2003.
Average price realizations for lumber were up 6% and 21% in 2005 compared with 2004 and 2003, respectively.
Lumber sales volumes in 2005 were up 5% versus 2004 and 10% versus 2003.
Average sales prices for plywood were down 4% from 2004, but were 15% higher than in 2003.
Plywood sales volumes in 2005 were slightly higher than 2004 and 2003.
Operating profits in 2005 were 18% lower than 2004, but nearly three times higher than 2003.
Lower average plywood prices and higher raw material costs more than offset the effects of higher average lumber prices, volume increases and a positive sales mix.
In 2005, log costs were up 9% versus 2004, negatively impacting both plywood and lumber profits.
Lumber and plywood operating costs also reflected substantially higher glue and natural gas costs versus both 2004 and 2003.
Looking forward to the first quarter of 2006, a continued strong housing market, combined with low product inventory in the distribution chain, should translate into continued strong lumber and plywood demand.
However, a possible softening of housing starts and higher interest rates later in the year could put downward pressure on pricing in the second half of 2006.
Specialty Businesses and Other The Specialty Businesses and Other segment includes the operating results of Arizona Chemical, European Distribution and, prior to its closure in 2003, our Natchez, Mississippi chemical cellulose pulp mill.
Also included are certain divested businesses whose results are included in this segment for periods prior to their sale or closure.
This segments 2005 net sales declined 18% and 26% from 2004 and 2003, respectively.
Operating profits in 2005 were down substantially from both 2004 and 2003.
The decline in sales principally reflects declining contributions from businesses sold or closed.
Operating profits were also affected by higher energy and raw material costs in our Chemical business.


| Components of change during the year Change | Prior year   amount | 2006 | 2005 |


Market Risk Related to Foreign Currency Exchange Rates As a U. S. -based company with significant business operations outside of the U. S. , particularly in Japan, we are exposed to foreign currency exchange rate risk related to these operations, as well as in our general account investment portfolio and other proprietary investment portfolios.
For our international insurance operations, changes in foreign currency exchange rates create risk that we may experience volatility in the U. S.  dollar-equivalent earnings and equity of these operations.
We actively manage this risk through various hedging strategies, including the use of foreign currency hedges and through holding U. S.  dollar-denominated securities in the investment portfolios of certain of these operations.
Additionally, our Japanese insurance operations offer a variety of non-yen denominated products which are supported by investments in corresponding currencies.
While these non-yen denominated assets are economically matched, the accounting may differ for changes in the value of these assets and liabilities due to moves in foreign currency exchange rates, resulting in volatility in reported U. S.  GAAP earnings.
Beginning in 2015 we have mitigated this volatility through the implementation of a new structure in Gibraltar Life that disaggregated the U. S.  and Australian dollar-denominated businesses into separate divisions, each with its own functional currency that aligns with the underlying products and investments.
For certain of our international insurance operations outside of Japan, we elect to not hedge the risk of changes in our equity investments due to foreign exchange rate movements.
For further information, see Managements Discussion and Analysis of Financial Condition and Results of OperationsInternational Insurance DivisionImpact of foreign currency exchange rate movements on earningsU.
S.  GAAP earnings impact of products denominated in non-local currencies above.
For our domestic general account investment portfolios supporting our U. S.  insurance operations and other proprietary investment portfolios, our foreign currency exchange rate risk arises primarily from investments that are denominated in foreign currencies.
We manage this risk by hedging substantially all domestic foreign currency denominated fixed income investments into U. S.  dollars.
We generally do not hedge all of the foreign currency risk of our investments in equity securities of unaffiliated foreign entities.


| In Millions | DB Pension Plan | Years Ended December 31 | CMS Energy, including Consumers | Benefit obligation at beginning of period | Service cost | Interest cost | Plan amendments | Actuarial (gain) loss | Benefits paid | Benefit obligation at end of period | Plan assets at fair value at beginning of period | Actual return on plan assets | Company contribution | Actual benefits paid | Plan assets at fair value at end of period | Funded status | Consumers | Benefit obligation at beginning of period | Service cost | Interest cost | Plan amendments | Actuarial (gain) loss | Benefits paid | Benefit obligation at end of period | Plan assets at fair value at beginning of period | Actual return on plan assets | Company contribution | Actual benefits paid | Plan assets at fair value at end of period | Funded status |


| Capital adequacy 2013 | December 31, | Total risk-weighted assets(in millions) | Tier 1 leverage ratio-10 | Tier 1 risk-based capital ratio-10 | Total risk-based capital ratio-10 | Tier 1 common risk-based capital ratio-11 | Tangible common equity / tangible asset ratio-8 | Tangible equity / tangible asset ratio-9 | Tangible common equity / risk-weighted assets ratio |


| 2009 2008 | Available- for-Sale Investments | Beginning balance January 1 | Net transfers in to (out of) Level 3(1) | Purchases, sales, settlements, net | Total realized and unrealized gains (losses) | Included in: | Earnings-2 | Comprehensive income | Ending balance at December 31 | Losses recorded in earnings for Level 3 assets still held at December 31 |


| Type of cost Total amount incurred  Restructuring charges: Termination benefits Fixed asset write-offs Other -1 | $67 million | Restructuring-related expenses: | Retention incentives | $66 million | $16 million | $43 million | $427 million |


Property, Plant and Equipment As of December 31, 2018, the carrying value of our property, plant and equipment, net of depreciation, was $8,232 million, or 10 percent of our total assets.
Certain events or changes in circumstances may indicate that the recoverability of the carrying amount or remaining useful life of property, plant and equipment should be assessed, including, among others, the manner or length of time in which the Company intends to use the asset, a significant decrease in market value, a significant change in the business climate in a particular market, or a current period operating or cash flow loss combined with historical losses or projected future losses.
When such events or changes in circumstances are present and an impairment test is performed, we estimate the future cash flows expected to result from the use of the asset or asset group and its eventual disposition.
These estimated future cash flows are consistent with those we use in our internal planning.
If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss.
The impairment loss recognized is the amount by which the carrying amount exceeds the fair value.
We use a variety of methodologies to determine the fair value of property, plant and equipment, including appraisals and discounted cash flow models, which are consistent with the assumptions we believe a hypothetical marketplace participant would use.
During the year ended December 31, 2018 and December 31, 2017, the Company recorded impairment charges of $312 million and $310 million, respectively, related to CCR’s property, plant and equipment.
Refer to Note 17 of Notes to Consolidated Financial Statements.


Table of Contents 41 Segment EBIT In 2016, we recorded additional charges of $138 million for an existing loss contingency in addition to the $60 million recorded in 2015.
In 2015, we also incurred an impairment charge of $202 million for our light-duty diesel assets and incurred a restructuring charge of $17 million for actions primarily in the form of professional voluntary and involuntary employee separation programs in response to the continued deterioration in our global markets.
Engine segment EBIT increased $50 million versus 2015, primarily due to an impairment of light-duty diesel assets in 2015, lower selling, general and administrative expenses, lower research, development and engineering expenses and restructuring actions and other charges in 2015, partially offset by lower gross margin and higher loss contingency charges in 2016.


| As of or for the year ended December 31, (in millions) 2016 2015 2014 | Securities gains | Investment securities portfolio (average)(a) | Investment securities portfolio (period–end)(b) | Mortgage loans (average) | Mortgage loans (period-end) |


| Fiscal Year | 2016 | Weighted average fair value of options granted | Assumptions used: | Expected life (years)(1) | Risk-free interest rate-2 | Volatility-3 | Dividend yield-4 |


Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy 215 implemented to mitigate estimated impacts of off-site radiological releases in case of a hypothesized severe accident.
In addition to finding that the SAMA cost analysis was insufficient, the ASLB directed the NRC staff to explain why cost-beneficial SAMAs should not be required to be implemented.
Entergy appealed the ASLB’s decision to the NRC and the NRC staff supported Entergy’s appeal, while the State of New York opposed it.
In December 2011 the NRC denied Entergy’s appeal as premature, stating that the appeal could be renewed at the conclusion of the ASLB proceedings.
In November 2011 the ASLB issued an order establishing deadlines for the submission of several rounds of testimony on most of the contentions pending before the ASLB and for the filing of motions to limit or exclude testimony.
Initial hearings before the ASLB on the contentions for which testimony is submitted are expected to begin by the end of 2012.
Filing deadlines for testimony on certain admitted contentions remain to be set by the ASLB.
The NRC staff currently is also performing its technical and environmental reviews of the application.
The NRC staff issued a Final Safety Evaluation Report (FSER) in August 2009, a supplement to the FSER in August 2011, and a Final Supplemental Environmental Impact Statement (FSEIS) in December 2010.
The NRC staff has stated its intent to file a supplemental FSEIS in May 2012.
The New York State Department of Environmental Conservation has taken the position that Indian Point must obtain a new state-issued Clean Water Act Section 401 water quality certification as part of the license renewal process.
In addition, the consistency of Indian Point’s operations with New York State’s coastal management policies must be resolved as required by the Coastal Zone Management Act.
Entergy Wholesale Commodities’ efforts to obtain these certifications and determinations continue in 2012.
The hearing process is an integral component of the NRC’s regulatory framework, and evidentiary hearings on license renewal applications are not uncommon.
Entergy intends to participate fully in the hearing process as permitted by the NRC’s hearing rules.
As noted in Entergy’s responses to the various intervenor filings, Entergy believes the contentions proposed by the intervenors are unsupported and without merit.
Entergy will continue to work with the NRC staff as it completes its technical and environmental reviews of the license renewal application.


| Pension Benefits Postretirement Benefits | 2007 | (In millions) | Retirement plan expense | Defined benefit plans: | Service cost (benefits earned during the period) | Interest cost | Expected return on plan assets | Curtailment | Amortization of actuarial loss | Other amortization | Net periodic defined benefit plan expense | Defined contribution plans | Total retirement plan expense |


| Nonvested Shares, Nonvested Share Units, and Deferred Stock Units Performance-Based Nonvested Share Units | Shares | Outstanding, beginning of the year | Granted | Released | Forfeited | Outstanding, end of the year |


CITIZENS FINANCIAL GROUP, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 152 The table below summarizes TDRs that defaulted within 12 months of their modification date during 2016, 2015 and 2014.
For purposes of this table, a payment default refers to a loan that becomes 90 days or more past due under the modified terms.
Amounts represent the loans recorded investment at the time of payment default.
Loan data includes loans meeting the criteria that were paid off in full, charged off, or sold prior to December 31, 2016 and 2015.
If a TDR of any loan type becomes 90 days past due after being modified, the loan is written down to the fair value of collateral less cost to sell.
The amount written off is charged to the ALLL.


Preferred Series C Stock issued and outstanding In connection with the FirstMerit acquisition, during the 2016 third quarter, Huntington issued $100 million of preferred stock.
As part of this transaction, Huntington issued 4,000,000 depositary shares, each representing a 1/40th ownership interest in a share of 5.875% Series C Non-Cumulative Perpetual Preferred Stock (Preferred C Stock), par value $0.01 per share, with a liquidation preference of $1,000 per share (equivalent to $25 per depositary share).
Each holder of a depositary share, will be entitled to all proportional rights and preferences of the Preferred C Stock (including dividend, voting, redemption, and liquidation rights).
Dividends on the Preferred C Stock will be non-cumulative and payable quarterly in arrears, when, as and if authorized by the Company's board of directors or a duly authorized committee of the board and declared by the Company, at an annual rate of 5.875% per year on the liquidation preference of $1,000 per share, equivalent to $25 per depositary share.
The dividend payment dates will be the fifteenth day of each January, April, July and October, commencing on October 15, 2016, or the next business day if any such day is not a business day.
The Preferred C Stock is perpetual and has no maturity date.
Huntington may redeem the Preferred C Stock at its option, (i) in whole or in part, from time to time, on any dividend payment date on or after October 15, 2021 or (ii) in whole but not in part, within 90 days following a regulatory capital treatment event, in each case, at a redemption price equal to $1,000 per share (equivalent to $25 per depositary share), plus any declared and unpaid dividends, without regard to any undeclared dividends, on the Series C Preferred Stock prior to the date fixed for redemption.
If Huntington redeems the Preferred C Stock, the depositary will redeem a proportional number of depositary shares.
Neither the holders of Preferred C Stock nor holders of depositary shares will have the right to require the redemption or repurchase of the Preferred C Stock or the depositary shares.
Any redemption of the Preferred C Stock is subject to Huntington's receipt of any required prior approval by the Board of Governors of the Federal Reserve System.


| 2014 2013 2012 | Sales | Income before taxes | Income tax provision | Income from operations of discontinued operations | Gain (Loss) on sale of business and impairment/write-down, net of tax | Income (Loss) from Discontinued Operations, net of tax |


| December 28,2013 December 29,2012 | Inventories at FIFO, net | Adjustments to state inventories at LIFO | Inventories at LIFO, net |


MetLife, Inc.  Notes to the Consolidated Financial Statements — (Continued) The Company held non-income producing fixed maturity securities with an estimated fair value of $62 million and $130 million with unrealized gains (losses) of ($19) million and ($23) million at December 31, 2011 and 2010, respectively.
The Company held foreign currency derivatives with notional amounts of $15.3 billion and $12.2 billion to hedge the exchange rate risk associated with foreign denominated fixed maturity securities at December 31, 2011 and 2010, respectively.
Concentrations of Credit Risk (Fixed Maturity Securities) — Summary.
The following section contains a summary of the concentrations of credit risk related to fixed maturity securities holdings.
The Company was not exposed to any concentrations of credit risk of any single issuer greater than 10% of the Company’s equity, other than the government securities summarized in the table below.
The par value, amortized cost and estimated fair value of holdings in sovereign fixed maturity securities of Portugal, Ireland, Italy, Greece and Spain, commonly referred to as “Europe’s perimeter region,” was $874 million, $254 million and $264 million at December 31, 2011, respectively, and $1.9 billion, $1.6 billion and $1.6 billion at December 31, 2010, respectively.
The estimated fair value of these Europe perimeter region sovereign fixed maturity securities represented 0.4% and 3.2% of the Company’s equity at December 31, 2011 and 2010, respectively, and 0.1% and 0.3% of total cash and invested assets at December 31, 2011 and 2010, respectively.
Concentrations of Credit Risk (Government and Agency Securities).
The following section contains a summary of the concentrations of credit risk related to government and agency fixed maturity and fixed-income securities holdings, which were greater than 10% of the Company’s equity at


| Level 1 Level 2 Level 3 Netting Adjustments -4 Total | (Millions of Dollars) | Derivative assets: | Commodity | Transfer in-5(6) | Transfer out-5(6) | Commodity Total-1 | Other assets | Transfer in-5(6) | Transfer out-5(6) | Other assets-3 | Total | Derivative liabilities: | Commodity | Transfer in-5(6) | Transfer out-5(6) | Commodity Total-1 | Interest rate contract | Transfer in-5(6) | Transfer out-5(6) | Interest ratecontract-2 | Total | Level 1 | (Millions of Dollars) | Derivative assets: | Commodity-1 | Other assets-3 | Total | Derivative liabilities: | Commodity | Transfer in-5(6)(7) | Transfer out-5(6)(7) | Commodity-1 | Interest ratecontract-2 | Total |


| Total | Goodwill | Customer-related intangible assets | Contract-based intangible assets | Property and equipment | Other current assets | Total assets acquired | Current liabilities | Minority interest in equity of subsidiary (at historical cost) | Net assets acquired |


| Available-for-sale securities Held-to-maturity securities | Maturity schedule of securities | December 31, 2005 (in millions) | Due in one year or less | Due after one year through five years | Due after five years through 10 years | Due after 10 years(b) | Total securities |


| Gulf Coast 2017 2018 2019 2020 AnnualAverage for2017-2020 | (Dollars in millions unless otherwise stated) | Net Coal and Nuclear Capacity (MW)(a) | Forecasted Coal and Nuclear Capacity (MW)(b) | Total Coal and Nuclear Sales (GWh)(c) | Percentage Coal and Nuclear Capacity Sold Forward(d) | Total Forward Hedged Revenues(e) | Weighted Average Hedged Price ($ per MWh)(e) | Average Equivalent Natural Gas Price ($ per MMBtu)(e) | Gross Margin Sensitivities | Gas Price Sensitivity Up $0.50/MMBtu on Coal and Nuclear Units | Gas Price Sensitivity Down $0.50/MMBtu on Coal and Nuclear Units | Heat Rate Sensitivity Up 1 MMBtu/MWh on Coal and Nuclear Units | Heat Rate Sensitivity Down 1 MMBtu/MWh on Coal and Nuclear Units |


| 12/2007 12/2008 12/2009 12/2010 12/2011 12/2012 | Valero Common Stock | S&P 500 | Old Peer Group | New Peer Group |


VORNADO REALTY TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 9.
Debt - continued Our revolving credit facility and senior unsecured notes contain financial covenants which require us to maintain minimum interest coverage ratios and limit our debt to market capitalization ratios.
We believe that we have complied with all of our financial covenants as of December 31, 2007.
On May 9, 2006, we executed supplemental indentures with respect to our senior unsecured notes due 2007, 2009 and 2010 (collectively, the Notes), pursuant to our consent solicitation statement dated April 18, 2006, as amended.
Holders of approximately 96.7% of the aggregate principal amount of the Notes consented to the solicitation.
The supplemental indentures contain modifications of certain covenants and related defined terms governing the terms of the Notes to make them consistent with corresponding provisions of the covenants and defined terms included in the senior unsecured notes due 2011 issued on February 16, 2006.
The supplemental indentures also include a new covenant that provides for an increase in the interest rate of the Notes upon certain decreases in the ratings assigned by rating agencies to the Notes.
In connection with the consent solicitation we paid an aggregate fee of $2,241,000 to the consenting note holders, which will be amortized into expense over the remaining term of the Notes.
In addition, we incurred advisory and professional fees aggregating $1,415,000, which were expensed in 2006.
The net carrying amount of properties collateralizing the notes and mortgages payable amounted to $10.920 billion at December 31, 2007.
As at December 31, 2007, the principal repayments required for the next five years and thereafter are as follows:


| InvestmentServicing | Years Ended December 31, | (Dollars in millions, except where otherwise noted) | Servicing fees | Trading services | Securities finance | Processing fees and other | Total fee revenue | Net interest revenue | Gains (losses) related to investment securities, net | Total revenue | Provision for loan losses | Total expenses | Income before income tax expense | Pre-tax margin | Average assets (in billions) |


Income Taxes 2017 Tax Act: The President signed U. S.  tax reform legislation (2017 Tax Act) on December 22, 2017, which is considered the enactment date.
The 2017 Tax Act includes a broad range of provisions, many of which significantly differ from those contained in previous U. S.  tax law.
Changes in tax law are accounted for in the period of enactment.
As such, our 2017 consolidated financial statements reflect the immediate tax effect of the 2017 Tax Act.
The 2017 Tax Act contains several key provisions including, among other things: ?
a one-time tax on the mandatory deemed repatriation of post-1986 untaxed foreign earnings and profits (E&P), referred to as the toll charge; ?
a reduction in the corporate income tax rate from 35 percent to 21 percent for tax years beginning after December 31, 2017; ?
the introduction of a new U. S.  tax on certain off-shore earnings referred to as global intangible low-taxed income (GILTI) at an effective tax rate of 10.5 percent for tax years beginning after December 31, 2017 (increasing to 13.125 percent for tax years beginning after December 31, 2025), with a partial offset by foreign tax credits; and ?
the introduction of a territorial tax system beginning in 2018 by providing a 100 percent dividend received deduction on certain qualified dividends from foreign subsidiaries.
During the fourth quarter of 2017, we recorded an income tax benefit of $1,272.4 million, which was comprised of the following: ?
income tax benefit of $715.0 million for the one-time deemed repatriation of foreign earnings.
This is composed of a $1,181.0 million benefit from the removal of a deferred tax liability we had recorded for the repatriation of foreign earnings prior to the 2017 Tax Act offset by $466.0 million for the toll charge recognized under the 2017 Tax Act.
In accordance with the 2017 Tax Act, we expect to elect to pay the toll charge in installments over eight years.
As of December 31, 2017, we have recorded current and non-current income tax liabilities related to the toll charge of $82.0 million and $384.0 million, respectively.  ?
an income tax benefit of $557.4 million, primarily related to the remeasurement of our deferred tax assets and liabilities at the enacted corporate income tax rate of 21 percent.
The net benefit recorded was based on currently available information and interpretations made in applying the provisions of the 2017 Tax Act as of the time of filing this Annual Report on Form 10-K.  We further refined our estimates related to the impact of the 2017 Tax Act subsequent to the issuance of our earnings release for the fourth quarter of 2017.
In accordance with authoritative guidance issued by the SEC, the income tax effect for certain aspects of the 2017 Tax Act represent provisional amounts for which our accounting is incomplete, but with respect to which a reasonable estimate could be determined and recorded during the fourth quarter of 2017.
The actual effects of the 2017 Tax Act and final amounts recorded may differ materially from our current estimate of provisional amounts due to, among other things, further interpretive guidance that may be issued by U. S.  tax authorities or regulatory bodies, including the SEC and the FASB.
We will continue to analyze the 2017 Tax Act and any additional guidance that may be issued so we can finalize the full effects of applying the new legislation on our financial statements in the measurement period, which ends in the fourth quarter of 2018.
We continue to evaluate the impacts of the 2017 Tax Act and consider the amounts recorded to be provisional.
In addition, we are still evaluating the GILTI provisions of the 2017 Tax Act and their impact, if any, on our consolidated financial statements as of December 31, 2017.
The FASB allows companies to adopt an accounting policy to either recognize deferred taxes for GILTI or treat such as a tax cost in the year incurred.
We have not yet determined which accounting policy to adopt because determining the impact of the GILTI provisions requires analysis of our existing legal entity structure, the reversal of our U. S.  GAAP and U. S.  tax basis differences in the assets and liabilities of our foreign subsidiaries, and our ability to offset any tax with foreign tax credits.
As such, we did not record a deferred income tax


| At December 31, | (dollar amounts in millions) | Total risk-weighted assets | Bank | Tier 1 risk-based capital | Bank | Tier 2 risk-based capital | Bank | Total risk-based capital | Bank | Tier 1 leverage ratio | Bank | Tier 1 risk-based capital ratio | Bank | Total risk-based capital ratio | Bank |


| Years Ended December 31, Gain (Loss) | (in millions) | Assets: | Bond and equity securities | Alternative investments(a) | Other, including Short-term investments | Liabilities: | Long-term debt(b) | Other liabilities | Total gain |


| Dollars in millions 2017 2016 | January 1 | Total net charge-offs | Provision for credit losses | Net decrease / (increase) in allowance forunfunded loan commitments andletters of credit | Other | December 31 | Net charge-offs to average loans (for theyear ended) | Allowance for loan and lease losses tototal loans | Commercial lending net charge-offs | Consumer lending net charge-offs | Total net charge-offs | Net charge-offs to average loans (for theyear ended) | Commercial lending | Consumer lending | Year ended December 31Dollars in millions | 2017 | Commercial | Commercial realestate | Equipmentlease financing | Home equity | Residential realestate | Credit card | Other consumer | Total | 2016 | Commercial | Commercial realestate | Equipment leasefinancing | Home equity | Residential realestate | Credit card | Other consumer | Total |


| Current assets $288.4 | Property, plant and equipment | Goodwill | Trademarks | Other assets | Total assets acquired | Current liabilities | Long-term liabilities | Total liabilities assumed | Net assets acquired |


| 2008 2007 2006 2005 | -$66,044 |


| Year Ended December 31, | 2007 | ($ in thousands) | Revenues generated by Stockholder-Broker Dealer Clients and their affiliates | Commissions | Information and user access fees | Investment income | Other | Total | Percentage of revenues | Commissions | Information and user access fees | Investment income | Other | Total | Number of Stockholder Broker-Dealer Clients |


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 (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 2018, although the mix of Financial Assurance Instruments may change.
These Financial Assurance 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 insurance liabilities as they are incurred.
Off-Balance Sheet Arrangements We have no off-balance sheet debt or similar obligations, other than operating leases and financial assurances, which are not classified as debt.
We have no transactions or obligations with related parties that are not disclosed, consolidated into or reflected in our reported financial position or results of operations.
We have not guaranteed any third-party debt.


| December 31, 2015 | Fair Value | Level 1 | (in millions) | Assets: | Fixed maturities, held-to-maturity | Commercial mortgage and other loans | Policy loans | Other long-term investments | Short-term investments | Cash and cash equivalents | Accrued investment income | Other assets | Total assets | Liabilities: | Policyholders’ account balances—investment contracts | Securities sold under agreements to repurchase | Cash collateral for loaned securities | Short-term debt | Long-term debt | Notes issued by consolidated VIEs | Other liabilities | Separate account liabilities—investment contracts | Total liabilities |


| 2006 2005 2004 | (Millions of Dollars) | Cash provided by (used in) operating activities | Continuing operations | Discontinued operations | Total |


| Year Ended December 31, | 2014 | (in thousands, except percentages and per share data) | Total revenue | Operating income | Operating profit margin | Net income | Earnings per share – diluted: | Diluted earnings per share | Weighted average shares – diluted | Fiscal Year Ended | Segment | Olive Garden | LongHorn Steakhouse | Fine Dining | Other Business |


| 2009 2008 2007 | (Dollars in millions) | Net interest income-3 | Noninterest income: | Card income | All other income | Total noninterest income | Total revenue, net of interest expense | Provision for credit losses | Noninterest expense | Income (loss) before income taxes | Income tax expense (benefit)(3) | Net income (loss) |


LIQUIDITY OUTLOOK We expect our cash flow from operations, cash and cash equivalents to be sufficient to meet our anticipated operating requirements at a minimum for the next twelve months.
We also have a committed corporate credit facility as well as uncommitted facilities available to support our operating needs.
We continue to maintain a disciplined approach to managing liquidity, with flexibility over significant uses of cash, including our capital expenditures, cash used for new acquisitions, our common stock repurchase program and our common stock dividends.
Management’s Discussion and Analysis of Financial Condition and Results of Operations – (continued) (Amounts in Millions, Except Per Share Amounts) factors will likely differ from the estimates used in our valuation, and it is possible that differences and changes could be material.
A deterioration in profitability, adverse market conditions, significant client losses, changes in spending levels of our existing clients or a different economic outlook than currently estimated by management could have a significant impact on the estimated fair value of our reporting units and could result in an impairment charge in the future.
We also perform a sensitivity analysis to detail the impact that changes in assumptions may have on the outcome of the first step of the impairment test.
Our sensitivity analysis provides a range of fair value for each reporting unit, where the low end of the range reduces growth rates by 0.25% and increases discount rates by 0.5%, and the high end of the range increases growth rates by 0.25% and decreases discount rates by 0.5%.
We use the average of our fair values for purposes of our comparison between carrying value and fair value for the first step of the quantitative impairment test.
The table below displays the goodwill midpoint of the range for each reporting unit tested in the 2013 and 2012 annual impairment tests.
Our results of the comparison between carrying value and fair value at the average fair value indicated that for the 2013 test there was one reporting unit and for the 2012 test there were no reporting units whose fair value exceeded its carrying value by less than 20%


| Allstate brand | Non-Standard Auto | PIF (thousands) | Average premium-gross written (6 months) | Renewal ratio (%) (6 months) | Approved rate changes: | # of states | Countrywide (%) | State specific (%)(1) | Allstate brand | Homeowners | PIF (thousands)(1) | Average premium-gross written (12 months) | Renewal ratio (%) (12 months) | Approved rate changes-2: | # of states | Countrywide (%) | State specific (%)(3) |


| 2013 2012 | Beginning balance | Gross increases in unrecognized tax benefits – prior year tax positions | Gross increases in unrecognized tax benefits – current year tax positions | Settlements with taxing authorities | Lapse of statute of limitations | Foreign exchange gains and losses | Ending balance |


The goodwill was assigned to the Health and Well-Being Services segment and is not deductible for tax purposes.
The other intangible assets, which primarily consist of customer contracts and trade names, have a weighted average useful life of 8.4 years.
On October 29, 2012, we acquired a noncontrolling equity interest in MCCI Holdings, LLC, or MCCI, a privately held MSO headquartered in Miami, Florida that coordinates medical care for Medicare Advantage and Medicaid beneficiaries primarily in Florida and Texas.
The Metropolitan and MCCI transactions are expected to provide us with components of a successful integrated care delivery model that has demonstrated scalability to new markets.
A substantial portion of the revenues for both Metropolitan and MCCI are derived from services provided to Humana Medicare Advantage members under capitation contracts with our health plans.
In addition, Metropolitan and MCCI provide services to Medicare Advantage and Medicaid members under capitation contracts with third party health plans.
Under these capitation agreements with Humana and third party health plans, Metropolitan and MCCI assume financial risk associated with these Medicare Advantage and Medicaid members.
Humana Inc.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) 17.
EXPENSES ASSOCIATED WITH LONG-DURATION INSURANCE PRODUCTS Premiums associated with our long-duration insurance products accounted for approximately 2% of our consolidated premiums and services revenue for the year ended December 31, 2012.
We use long-duration accounting for products such as long-term care, life insurance, annuities, and certain health and other supplemental policies sold to individuals because they are expected to remain in force for an extended period beyond one year and because premium received in the earlier years is intended to pay anticipated benefits to be incurred in future years.
As a result, we defer policy acquisition costs, primarily consisting of commissions, and amortize them over the estimated life of the policies in proportion to premiums earned.
In addition, we establish reserves for future policy benefits in recognition of the fact that some of the premium received in the earlier years is intended to pay anticipated benefits to be incurred in future years.
These reserves are recognized on a net level premium method based on interest rates, mortality, morbidity, withdrawal and maintenance expense assumptions from published actuarial tables, modified based upon actual experience.
The assumptions used to determine the liability for future policy benefits are established and locked in at the time each contract is acquired and would only change if our expected future experience deteriorated to the point that the level of the liability, together with the present value of future gross premiums, are not adequate to provide for future expected policy benefits.
Long-term care policies provide for long-duration coverage and, therefore, our actual claims experience will emerge many years after assumptions have been established.
The risk of a deviation of the actual interest rates, morbidity rates, and mortality rates from those assumed in our reserves are particularly significant to our closed block of long-term care policies.
We monitor the loss experience of these long-term care policies and, when necessary, apply for premium rate increases through a regulatory filing and approval process in the jurisdictions in which such products were sold.
To the extent premium rate increases and/ or loss experience vary from our acquisition date assumptions, future adjustments to reserves could be required.


| December 31, 2009 | Public | Carrying amount | (in millions) | Three months or less | Greater than three to six months | Greater than six to nine months | Greater than nine to twelve months | Greater than twelve to twenty-four months | Greater than twenty-four to thirty-six months | Greater than thirty-six months | Total fixed maturities, available-for-sale |


Balance Sheet Overview As Adjusted Balance Sheet The following table presents a reconciliation of the Companys consolidated statement of financial condition presented on a GAAP basis to the Companys consolidated statement of financial condition excluding the impact of separate account assets and collateral held under securities lending agreements (directly related to lending securities held by separate account assets) and separate account liabilities and collateral liabilities under securities lending agreements, consolidated variable interest entities (VIEs) and consolidated sponsored investment funds.
The Company presents the as adjusted balance sheet as additional information to enable investors to eliminate gross presentation of certain assets that have equal and offsetting liabilities or non-controlling interests and ultimately do not have an impact on stockholders equity (excluding appropriated retained earnings related to consolidated collateralized loan obligations) or cash flows.
Management reviews the Companys as adjusted balance sheet, a non-GAAP financial measure, as an economic presentation of its total assets and liabilities; however, it does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.
Separate Account Assets and Liabilities and Collateral Held under Securities Lending Agreements The separate account assets are maintained by a wholly owned subsidiary of the Company, which is a registered life insurance company in the United Kingdom, and represent segregated assets held for purposes of funding individual and group pension contracts.
In accordance with GAAP, the Company records equal and offsetting separate account liabilities.
The separate account assets are not available to creditors of the Company and the holders of the pension contracts have no recourse to the Companys assets.
The net investment income attributable to separate account assets accrues directly to the contract owners and is not reported on the Companys consolidated statements of income.
While
At December 31, 2012 and 2011, as a result of consolidation of various investment products deemed to be voting rights entities, including products where BlackRock owns 50% of greater of the voting rights of the product, under the consolidation policies described above, the Company had the following balances on its consolidated statements of financial condition:


| December 31, 2015 December 31, 2014 | NAIC Designation-1(2) | (in millions) | 1 | 2 | Subtotal High or Highest Quality Securities-5 | 3 | 4 | 5 | 6 | Subtotal Other Securities-6(7) | Total Fixed Maturities |


| December 31, (in millions) 2017 2016 | Residential real estate – excluding PCI | Residential mortgage(a) | Home equity | Other consumer loans | Auto | Consumer & Business Banking(a) | Student(a) | Residential real estate – PCI | Home equity | Prime mortgage | Subprime mortgage | Option ARMs | Total retained loans |