Grand Gulf Lease Obligations In 1988, in two separate but substantially identical transactions, System Energy sold and leased back undivided ownership interests in Grand Gulf for the aggregate sum of $500 million.
The interests represent approximately 11.5% of Grand Gulf.
The leases expire in 2015.
Under certain circumstances, System Entergy may repurchase the leased interests prior to the end of the term of the leases.
At the end of the lease terms, System Energy has the option to repurchase the leased interests in Grand Gulf at fair market value or to renew the leases for either fair market value or, under certain conditions, a fixed rate.
System Energy is required to report the sale-leaseback as a financing transaction in its financial statements.
For financial reporting purposes, System Energy expenses the interest portion of the lease obligation and the plant depreciation.
However, operating revenues include the recovery of the lease payments because the transactions are accounted for as a sale and leaseback for ratemaking purposes.
Consistent with a recommendation contained in a


Revenue growth of $235.2 million in 2016 was due to the Veda acquisition.
Europe.
Local currency revenue growth was 12% in 2017 primarily due to growth in U. K.  debt management services and other growth in the U. K.  and Spain.
Local currency fluctuations against the U. S.  dollar negatively impacted revenue by $9.1 million, or 4%, for 2017.
Reported revenue increased 8% in 2017.
Local currency revenue growth was 18% in 2016 primarily due to growth in U. K.  debt management services and analytical services in both the U. K.  and Spain.
Local currency fluctuations against the U. S.  dollar negatively impacted revenue by $25.9 million, or 11%, for 2016.
Reported revenue increased 7% in 2016.
Latin America.
Local currency revenue increased 18% in 2017 driven by growth primarily in Argentina and Chile.
Local currency fluctuations against the U. S.  dollar negatively impacted revenue by $3.9 million, or 2%, in 2017, most notably due to depreciation in the foreign exchange rate of the Argentine peso, partially offset by appreciation of the Chilean peso.
Reported revenue increased 16% in 2017.
Local currency revenue increased 12% in 2016 driven by core organic growth primarily in Argentina, Chile, and Paraguay.
Local currency fluctuations against the U. S.  dollar negatively impacted revenue by $39.5 million, or 20%, in 2016, most notably due to depreciation in the foreign exchange rate of the Argentine peso.
Reported revenue decreased 8% in 2016.
Canada.
Local currency revenue increased 9% in 2017 compared to 2016, primarily due to organic growth.
Local currency fluctuations against the U. S.  dollar negatively impacted revenue by $2.7 million, or 2%, in 2017.
Reported revenue increased 12% in 2017.
Local currency revenue increased 3% in 2016 compared to 2015, primarily due to core organic growth.
Local currency fluctuations against the U. S.  dollar negatively impacted revenue by $4.4 million, or 4%, in 2016.
Reported revenue was flat in 2016.  International Operating Margin.
Operating margin increased to 18.2% in 2017 as compared to 13.9% in 2016.
The increase primarily resulted from a decrease in integration costs related to the Veda acquisition, lower growth in people costs, a gain on the sale of an asset, and a slight decrease in purchased intangibles amortization.
Operating margin decreased to 13.9% in 2016 as compared to 20.0% in 2015.
The decline primarily resulted from increased purchased intangibles amortization, integration costs related to the Veda acquisition and a decline in the margin of Latin America.
The decline was partially offset by increased margins in Europe and Canada.


| (In thousands, except per share) Common Stock Issuable Additional Paid-in Capital Accumulated Other Comprehensive Income (Loss), Net | Preferred   Stock | 2006 | Balance — January 1, 2006 | Comprehensive income: | Net income | Other comprehensive income, net of tax and reclassification adjustments: | Unrealized gains on investment securities | Minimum pension liability adjustment | 893,386 | Change in accounting for defined benefit plans (note 12) | Purchases of treasury stock | Repayment of management stock ownership program receivable | Stock-based compensation plans: | Stock option and purchase plans: | Compensation expense | Exercises | Directors’ stock plan | Deferred compensation plans, net, including dividend equivalents | Common stock cash dividends — $2.25 per share | Balance — December 31, 2006 | 2007 | Comprehensive income: | Net income | Other comprehensive income, net of tax and reclassification adjustments: | Unrealized losses on investment securities | Defined benefit plan liability adjustment | Unrealized losses on cash flow hedges | 593,011 | Acquisition of Partners Trust Financial Group, Inc. — common stock issued | Purchases of treasury stock | Stock-based compensation plans: | Stock option and purchase plans: | Compensation expense | Exercises | Directors’ stock plan | Deferred compensation plans, net, including dividend equivalents | Common stock cash dividends — $2.60 per share | Balance — December 31, 2007 | 2008 | Comprehensive income: | Net income | Other comprehensive income, net of tax and reclassification adjustments: | Unrealized losses on investment securities | Defined benefit plan liability adjustment | Unrealized losses on terminated cash flow hedges | -66,172 | Issuance of preferred stock and associated warrants | Repayment of management stock ownership program receivable | Stock-based compensation plans: | Stock option and purchase plans: | Compensation expense | Exercises | Directors’ stock plan | Deferred compensation plans, net, including dividend equivalents | Common stock cash dividends — $2.80 per share | Balance — December 31, 2008 |


ITEM 6.
SELECTED FINANCIAL DATA You should read the selected financial data in conjunction with our “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and our audited consolidated financial statements and the related notes to those consolidated financial statements included in this Annual Report.
In accordance with accounting principles generally accepted in the United States (“GAAP”), the consolidated statements of operations for all periods presented in this “Selected Financial Data” have been adjusted to reflect certain businesses as discontinued operations (see note 1 to our consolidated financial statements included in this Annual Report).
Year-over-year comparisons are significantly affected by our acquisitions, dispositions and, to a lesser extent, construction of towers.


Statutory Equity and Income Each insurance companys state of domicile imposes minimum risk-based capital (RBC) requirements that were developed by the NAIC.
The formulas for determining the amount of RBC specify various weighting factors that are applied to financial balances or various levels of activity based on the perceived degree of risk.
Regulatory compliance is determined by a ratio of total adjusted capital, as defined by the NAIC, to authorized control level RBC, as defined by the NAIC.
Companies below specific trigger points or ratios are classified within certain levels, each of which requires specified corrective action.
Each of the Holding Companys U. S.  insurance subsidiaries exceeded the minimum RBC requirements for all periods presented herein.
The NAIC has adopted the Codification of Statutory Accounting Principles (Statutory Codification).
Statutory Codification is intended to standardize regulatory accounting and reporting to state insurance departments.
However, statutory accounting principles continue to be established by individual state laws and permitted practices.
The New York Insurance Department has adopted Statutory Codification with certain modifications for the preparation of statutory financial statements of insurance companies domiciled in New York.
Modifications by the various state insurance departments may impact the effect of Statutory Codification on the statutory capital and surplus of the Holding Companys insurance subsidiaries.
MetLife, Inc.  Notes to the Consolidated Financial Statements  (Continued) Statutory accounting principles differ from GAAP primarily by charging policy acquisition costs to expense as incurred, establishing future policy benefit liabilities using different actuarial assumptions, reporting surplus notes as surplus instead of debt and valuing securities on a different basis.
In addition, certain assets are not admitted under statutory accounting principles and are charged directly to surplus.
The most significant assets not admitted by the Company are net deferred income tax assets resulting from temporary differences between statutory accounting principles basis and tax basis not expected to reverse and become recoverable within three years.
Further, statutory accounting principles do not give recognition to purchase accounting adjustments.
Statutory net income (loss) of Metropolitan Life Insurance Company, a New York domiciled insurer, was $1,221 million, ($338) million and $2,123 million for the years ended December 31, 2009, 2008 and 2007, respectively.
Statutory capital and surplus, as filed with the Department, was $12.6 billion and $11.6 billion at December 31, 2009 and 2008, respectively.
Statutory net income of MetLife Insurance Company of Connecticut, a Connecticut domiciled insurer, was $81 million, $242 million and $1,101 million for the years ended December 31, 2009, 2008 and 2007, respectively.
Statutory capital and surplus, as filed with the Connecticut Insurance Department, was $4.9 billion and $5.5 billion at December 31, 2009 and 2008, respectively.
Statutory net income of MPC, a Rhode Island domiciled insurer, was $266 million, $308 million and $400 million for the years ended December 31, 2009, 2008 and 2007, respectively.
Statutory capital and surplus, as filed with the Insurance Department of Rhode Island, was $1.8 billion at both December 31, 2009 and 2008.
Statutory net income of Metropolitan Tower and Life Insurance Company (MTL), a Delaware domiciled insurer, was $57 million, $212 million and $103 million for the years ended December 31, 2009, 2008 and 2007, respectively.
Statutory capital and surplus, as filed with the Delaware Insurance Department was $867 million and $885 million at December 31, 2009 and 2008, respectively.


| Payments Due by Period | Less Than 1 Year | Securities sold under agreements to repurchase-1 | FHLB advances and other borrowings-1(2) | Corporate debt-3 | Uncertain tax positions | Certificates of deposit and brokered certificates of deposit-1(4) | Operating lease payments-5 | Purchase obligations-6 | Total contractual obligations |


| December 31 (In billions) 2008 2007 | U.S. | Europe | Pacific Basin | Americas | Other Global | Total |


Asset Management operations The principal sources of liquidity for our fee-based asset management businesses include asset management fees and commercial mortgage origination and servicing fees.
The principal uses of liquidity include general and administrative expenses and distributions of dividends and returns of capital to Prudential Financial.
The primary liquidity risks for our fee-based asset management businesses relate to their profitability, which is impacted by market conditions and our investment management performance.
We believe the cash flows from our fee-based asset management businesses are adequate to satisfy the current liquidity requirements of these operations, as well as requirements that could arise under reasonably foreseeable stress scenarios, which are monitored through the use of internal measures.
The principal sources of liquidity for our strategic investments held in our asset management businesses are cash flows from investments, the ability to liquidate investments, and available borrowing lines from internal sources, including Prudential Financial and Prudential Funding, LLC (“Prudential Funding”), a wholly-owned subsidiary of Prudential Insurance.
The primary liquidity risks include the inability to sell assets in a timely manner, declines in the value of assets and credit defaults.
There were no material changes to the liquidity position of our asset management operations during 2016.


| December 31, 2015 | Bank of America Corporation | (Dollars in millions) | Risk-based capital metrics: | Common equity tier 1 capital | Tier 1 capital | Total capital-3 | Risk-weighted assets (in billions) | Common equity tier 1 capital ratio | Tier 1 capital ratio | Total capital ratio | Leverage-based metrics: | Adjusted quarterly average assets (in billions)(4) | Tier 1 leverage ratio | December 31, 2014 | Risk-based capital metrics: | Common equity tier 1 capital | Tier 1 capital | Total capital-3 | Risk-weighted assets (in billions) | Common equity tier 1 capital ratio | Tier 1 capital ratio | Total capital ratio | Leverage-based metrics: | Adjusted quarterly average assets (in billions)(4) | Tier 1 leverage ratio |


Net cash used in financing activities of $268.5 million in 2016 consisted primarily of purchases of treasury stock of $662.3 million, partially offset by (1) net proceeds from the issuance of debt of $222.1 million, (2) proceeds from stock plans of $103.3 million, and (3) the excess tax benefit from stock plans of $64.3 million.
Net cash used in financing activities of $158.6 million in 2015 consisted primarily of purchases of treasury stock of $280.1 million, partially offset by (1) proceeds from stock plans of $87.2 million, and (2) the excess tax benefit from stock plans of $41.3 million.
Net cash used in financing activities of $153.0 million in 2014 consisted primarily of purchases of treasury stock of $300.9 million, partially offset by (1) proceeds from stock plans of $113.3 million, and (2) the excess tax benefit from stock plans of $49.4 million (including the realization of previously unrealized excess tax benefits).


n E W lY i SSUED BU t not YE t a D o P t ED acco U ntin G GU i D anc E In May 2011, the FASB issued amended guidance clarifying how to measure and disclose fair value.
We do not believe the adoption of such amended guidance on January 1, 2012, will have a significant effect on our consolidated financial statements.
We have also considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our consolidated statements, including that which we have not yet adopted.
We do not believe that any such guidance will have a material effect on our financial position or results of operation.


| Year Ended | September 26, 2010 | Interest and dividend income: | Corporate and other segments | QSI | Interest expense | Net realized gains on investments: | Corporate and other segments | QSI | Net impairment losses on investments: | Corporate and other segments | QSI | Gains on derivative instruments | Equity in losses of investees | $751 |


| For the Years Ended December 31 | Segment | Professional Instrumentation | Medical Technologies | Industrial Technologies | Tools & Components |


For the year ended December 31, 2011 we issued 178,148 shares of our common stock having a fair value of $2.6 million related to vested performance share units.
Based on the weighted average grant date fair value of $20.71 there was $11.7 million of total unrecognized compensation cost related to non-vested performance share units.
That cost is expected to be recognized over a weighted-average period of 1.1 years.
NOTE 7: Cash and Cash Equivalents and Investments in Marketable Securities Our investment portfolio at December 31, 2011 consisted of cash, cash equivalents and investments in debt securities primarily issued by government and municipal entities.
We also hold 1,000,000 shares of Connacher Oil and Gas Limited common stock that was received as partial consideration upon the sale of our Montana refinery in 2006.
We invest in highly-rated marketable debt securities, primarily issued by government and municipal entities that have maturities at the date of purchase of greater than three months.
We also invest in other marketable debt securities with the maximum maturity or put date of any individual issue generally not greater than two years from the date of purchase.
All of these instruments, including investments in equity securities, are classified as availablefor-sale.
As a result, they are reported at fair value using quoted market prices.
Interest income is recorded as earned.
Unrealized gains and losses, net of related income taxes, are reported as a component of accumulated other comprehensive income.
Upon sale, realized gains and losses on the sale of marketable securities are computed based on the specific identification of the underlying cost of the securities sold and the unrealized gains and losses previously reported in other comprehensive income are reclassified to current earnings.
The approximate future minimum rental commitments as of December 31, 2012, for all non-cancelable leases with initial or remaining terms of one year or more are shown in the following table.


| Gross Claims Liability Estimated Insurance Recoveries(a) Net Claims Liability | Balance, December 31, 2005 | Self-insurance expense (benefit) | Cash (paid) received | Balance, December 31, 2006 | Self-insurance expense (benefit) | Cash (paid) received | Balance, December 31, 2007 | Self-insurance expense (benefit) | Cash (paid) received | Balance, December 31, 2008 | Current portion at December 31, 2008 | Long-term portion at December 31, 2008 |


| Years ended December 31, 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 | (In thousands, except per share, Team Members, stores and ratio data) | BALANCE SHEET DATA: | Working capital (g)($) | Total assets (g)($) | Inventory turnover (h) | Accounts payable to inventory (i) | Current portion of long-term debt and short-term debt ($) | Long-term debt, less current portion (g)($) | Shareholders' equity ($) | CASH FLOW DATA: | Cash provided by operating activities ($) | Capital expenditures ($) | Free cash flow (j)($) |


Mortgage Loans Mortgage Loan Valuation Allowances Mortgage loans are considered to be impaired when management estimates that, based upon current information and events, it is probable that the Company will be unable to collect amounts due according to the contractual terms of the loan agreement.
The Company reviews mortgage loans on a quarterly basis to identify potential credit losses.
Among other factors, management reviews current and projected macroeconomic trends, such as unemployment rates and property-specific factors such as rental rates, occupancy levels, LTV ratios and debt service coverage ratios (DSCR).
In addition, the Company considers historical, current and projected delinquency rates and property values.
Estimates of collectibility require the use of significant management judgment and include the probability and timing of borrower default and loss severity estimates.
In addition, cash flow projections may change based upon new information about the borrower's ability to pay and/or the value of underlying collateral such as changes in projected property value estimates.
For mortgage loans that are deemed impaired, a valuation allowance is established for the difference between the carrying


| Pension Benefits Other Retiree Benefits | Years ended June 30 | Service cost | Interest cost | Expected return on plan assets | Prior service cost /(credit) amortization | Net actuarial loss amortization | Curtailments, settlements and other | GROSS BENEFIT COST/(CREDIT) | Dividends on ESOP preferred stock | NET PERIODIC BENEFIT COST/(CREDIT) |


(1) Primarily represents reinsurance recoverables established under the reinsurance arrangements associated with the acquisition of the retirement business of CIGNA.
The Company has recorded reinsurance recoverables related to the acquisition of the retirement business of CIGNA of $481 million and $682 million at December 31, 2018 and 2017, respectively.
Also included is $15 million and $13 million of reinsurance recoverables at December 31,


| December 31, 2006 | Less than twelve months | Carrying value | (in millions) | Fixed maturities, available-for-sale: | U.S. government and agencies | Non-U.S. governments | States and political subdivisions | Corporate — public | Corporate — private | Mortgage-backed and other asset-backed securities | Total fixed maturities, available-for-sale | Total equity securities, available-for-sale |


| (pre-tax, millions) For the Year Ended December 31, | Amount of Gain/(Loss) Recognized in Other Comprehensive Earnings/(Losses) on Derivatives | 2015 | Derivatives in Cash Flow Hedging Relationship | Foreign exchange contracts | Net revenues | Cost of sales | Marketing, administration and research costs | Interest expense, net | Derivatives in Net Investment Hedging Relationship | Foreign exchange contracts | Total |


| (Dollar amounts in millions) 12/31/2011 Net New Business Net  Acquired Market /FX App (Dep) 12/31/2012 | Equity | Fixed income | Multi-asset class | Alternatives | Long-term |


| December 31, | 2010 | Carrying | Value | (In millions) | Office | Apartments | Real estate private equity funds | Industrial | Retail | Hotel | Land | Agriculture | Other | Total real estate and real estate joint ventures |


| 2010 | Amortized Cost | (in millions) | Fixed maturities, held to maturity | Foreign government bonds | Corporate securities | Asset-backed securities-1 | Commercial mortgage-backed securities | Residential mortgage-backed securities-2 | Total fixed maturities, held to maturity |


| (in millions) Exposures as of December 31, 2008 Net gains/(losses) reported in income – year ended December 31,2008 (a) Unrealized gains/(losses) included in other comprehensive income (pretax) – year ended December 31, 2008 | U.S. residential mortgage: | Prime | Alt-A | Subprime | Non-U.S. residential | Commercial mortgage | U.S. government and federal agency obligations: | Mortgage-backed securities | Collateralized mortgage obligations | U.S. government-sponsored enterpriseobligations: | Mortgage-backed securities | Directobligations |


| Year Ended December 31, | (in millions) | Net cash provided by operating activities |


| 2005 (Thousands of Dollars, except per share amounts) | Net income — as reported | Less: Total share-based employee compensation expense determined under fair-value-based method for stock options, net of related tax effects | Pro forma net income | Earnings per share: | Basic — as reported | Basic — pro forma | Diluted — as reported | Diluted — pro forma |


Cash Flow from Investing Activities During 2005, we paid $352.8 million to acquire CarePlus, net of $92.1 million of cash acquired, and we paid $50.0 million to acquire Corphealth, net of $4.0 million of cash acquired.
During 2004, we paid $141.8 million to acquire Ochsner, net of $15.3 million of cash acquired.
We reinvested a portion of our operating cash flows over the last several years in investment securities, primarily short-duration fixed income securities, totaling $233.3 million in 2005, $407.3 million in 2004, and $283.1 million in 2003.
Our ongoing capital expenditures primarily relate to our technology initiatives and administrative facilities necessary for activities such as claims processing, billing and collections, medical utilization review, and customer service.
Total capital expenditures, excluding acquisitions, were $165.8 million in 2005, $114.1 million in 2004, and $101.3 million in 2003.
The increased spending in 2005 primarily resulted from our Medicare expansion initiatives.
Excluding acquisitions, we expect our total capital expenditures in 2006 to range between $125 million and $135 million.
Despite significant growth in Medicare, Medicare receivables declined $6.5 million from 2006 to 2007 due to the net collection of receivables associated with the CMS risk adjustment model.
Likewise, the $77.3 million increase in Medicare receivables from 2005 to 2006 resulted from an increase in receivables associated with the CMS risk adjustment model.
The decline in Commercial and other receivables from 2005 to 2006 resulted from the change in the mix of members from fully-insured to ASO.
The $22.7 million increase in the allowance for doubtful accounts from 2006 to 2007 resulted from the growth of the Medicare business.


| Year Ended December 31, 2018 Year Ended December 31, 2017 Year Ended December 31, 2016 | Shares | Outstanding at beginning of period | Granted | Vested | Forfeited | Outstanding at end of period | Year | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total Outstanding |


Hologic, Inc.  Notes to Consolidated Financial Statements (continued) (In thousands, except per share data) Companys consolidated financial statements from the date of acquisition as part of its other business segment.
The Company has concluded that the acquisition of AEG does not represent a material business combination and therefore no pro forma financial information has been provided herein.
AEG specializes in the manufacture of photoconductor materials for use in a variety of electro photographic applications including for the coating of the Companys digital detectors.
The acquisition of AEG allows the Company to have control over a critical step in its detector manufacturing process  to efficiently manage its supply chain and improve manufacturing margins.
The combination of the companies should also facilitate further manufacturing efficiencies and accelerate research and development of new detector products.
AEG was a privately held group of companies headquartered in Warstein, Germany, with manufacturing operations in Germany, China and the United States.
The aggregate purchase price for AEG was approximately $31,300 (subject to adjustment) consisting of EUR $24,100 in cash and 110 shares of Hologic Common Stock valued at $5,300, and approximately $1,900 for acquisition related fees and expenses.
The Company determined the fair value of the shares issued in connection with the acquisition in accordance with EITF Issue No.99-12, Determination of the Measurement Date for the Market Price of Acquirer Securities Issued in a Purchase Business Combination.
These 110 shares are subject to contingent put options pursuant to which the holders have the option to resell the shares to the Company during a period of one year following the completion of the acquisition if the closing price of the Companys stock falls and remains below a threshold price.
The repurchase price would be the closing price of the Companys common stock on the date of exercise.
The Companys maximum aggregate obligation under these put options would be approximately $4,100 if the put option were exercised for all the shares covered by those options and the closing price of our common stock on the date of exercise equaled the maximum threshold price permitting the exercise of the option.
No shares were subject to the put option as of September 30, 2006 as the Companys stock price was in excess of the minimum value.
The acquisition also provides for a one-year earn out of EUR 1,700 (approximately $2,000 USD) which will be payable in cash if AEG calendar year 2006 earnings, as defined, exceeds a pre-determined amount.
The Company has considered the provision of EITF Issue No.95-8, Accounting for Contingent Consideration Paid to the Shareholders of and Acquired Enterprise in a Purchase Business Combination, and concluded that this contingent consideration represents additional purchase price.
As a result, goodwill will be increased by the amount of the additional consideration, if any, when it becomes due and payable.
The components and allocation of the purchase price, consists of the following approximate amounts:


| Years Ended March 31, | (Dollars in millions) | Segment Operating Profit | Pharmaceutical Solutions | Medical-Surgical Solutions | Provider Technologies | Subtotal | Corporate Expenses, net | Securities Litigation charge | Interest Expense | Income (Loss) from ContinuingOperations, Before Income Taxes | Segment Operating Profit Margin | Pharmaceutical Solutions | Medical-Surgical Solutions | Provider Technologies |


In June 2009, the FASB amended the guidance for determining whether an entity is a variable interest entity, or VIE, and requires the performance of a qualitative rather than a quantitative analysis to determine the primary beneficiary of a VIE.
Under this guidance, an entity would be required to consolidate a VIE if it has (i) the power to direct the activities that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could be significant to the VIE.
This guidance is effective for the first annual reporting period that begins after November 15, 2009, with early adoption prohibited.
While we are currently evaluating the effect of adoption of this guidance, we currently believe that its adoption will not have a material impact on our consolidated financial statements.


Total Debt Total debt at July 1, 2006 was $1,762,692,000, of which approximately 75% was at fixed rates averaging 6.0% with an average life of 19 years, and the remainder was at floating rates averaging 5.2%.
Certain loan agreements contain typical debt covenants to protect noteholders, including provisions to maintain the company’s long-term debt to total capital ratio below a specified level.
SYSCO was in compliance with all debt covenants at July 1, 2006.
The fair value of SYSCO’s total long-term debt is estimated based on the quoted market prices for the same or similar issues or on the current rates offered to the company for debt of the same remaining maturities.
The fair value of total long-term debt approximated $1,669,999,000 at July 1, 2006 and $1,442,721,000 at July 2, 2005, respectively.
Other As of July 1, 2006 and July 2, 2005, letters of credit outstanding were $60,000,000 and $76,817,000, respectively.9.
LEASES Although SYSCO normally purchases assets, it has obligations under capital and operating leases for certain distribution facilities, vehicles and computers.
Total rental expense under operating leases was $100,690,000, $92,710,000, and $86,842,000 in fiscal 2006, 2005 and 2004, respectively.
Contingent rentals, subleases and assets and obligations under capital leases are not significant.
Aggregate minimum lease payments by fiscal year under existing non-capitalized long-term leases are as follows:


| Site Location Start Court or Agency % of Total Liability | Maxey Flats Nuclear | Curcio Scrap Metal | Metal Bank of America | Cortese Landfill | Global Landfill | Borne Chemical |


ANALOG DEVICES, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) Intangible assets are amortized on a straight-line basis over their estimated useful lives or on an accelerated method of amortization that is expected to reflect the estimated pattern of economic use.
The remaining amortization expense will be recognized over a weighted-average period of approximately 0.9 years.
Amortization expense from continuing operations, related to intangibles was $7.4 million, $9.3 million and $9.2 million in fiscal 2009, 2008 and 2007, respectively.
The Company expects annual amortization expense for these intangible assets to be:


| Year Ended December 31, 2006 2005 2004 | Cash flows (used in) provided by investing activities: | Acquisitions and investments, principally trademarks and bottling companies | Purchases of other investments | Proceeds from disposals of other investments | Purchases of property, plant and equipment | Proceeds from disposals of property, plant and equipment | Other investing activities | Net cash used in investing activities |


Certain non-structured liabilities The Company has elected the fair-value option for certain non-structured liabilities with fixed and floating interest rates (non-structured liabilities).


Threadneedle Profit Sharing Plan On an annual basis, Threadneedle employees are eligible for a profit sharing arrangement.
The employee profit sharing plan provides for profit sharing of 30% based on an internally defined recurring pretax operating income measure for Threadneedle, which primarily includes pretax income related to investment management services and investment portfolio income excluding gains and losses on asset disposals, certain reorganization expenses, EPP and EIP expenses and other non-recurring expenses.
Compensation expense related to the employee profit sharing plan was $54 million, $52 million and $32 million in 2011, 2010 and 2009, respectively.


| (in millions) Par Value | Fixed rate notes due August 2013, stated rate of 5.40% | Fixed rate notes due February 2014, stated rate of 5.75% | Fixed rate notes due March 2018, stated rate of 4.40%-1 | Fixed rate notes due September 2022, stated rate of 3.00%-2 | 2003 | Rental Expenses: | Office | Industrial | Retail | Other | Total | Real Estate Taxes: | Office | Industrial | Retail | Other | Total |


We recognize accrued interest and penalties related to unrecognized tax benefits as income tax expense.
During 2017, we released interest and penalties of $38.3 million, and as of December 31, 2017, had a recognized liability for interest and penalties of $75.7 million, which included an increase of $3.0 million from December 31, 2016 related to business combinations.
During 2016, we accrued interest and penalties of $19.3 million, and as of December 31, 2016, had recognized a liability for interest and penalties of $110.8 million, which included an $8.6 million increase from December 31, 2015 related to the Biomet merger.
During 2015, we accrued interest and penalties of $4.8 million, and as of December 31, 2015, had recognized a liability for interest and penalties of $82.9 million, which included an increase of $29.8 million from December 31, 2014 related to the Biomet merger.
We operate on a global basis and are subject to numerous and complex tax laws and regulations.
Additionally, tax laws have and continue to undergo rapid changes in both application and interpretation by various countries, including state aid interpretations and the Organization for Economic Cooperation and Development led initiatives.
Our income tax filings are subject to examinations by taxing authorities throughout the world.
Income tax audits may require an extended period of time to reach resolution and may result in significant income tax adjustments when interpretation of tax laws or allocation of company profits is disputed.
Although ultimate timing is uncertain, the net amount of tax liability for unrecognized tax benefits may change within the next twelve months due to changes in audit status, expiration of statutes of limitations, settlements of tax assessments and other events.
Managements best estimate of such change is within the range of a $115 million decrease to a $25 million increase.
Our U. S.  Federal income tax returns have been audited through 2009 and are currently under audit for years 2010- 2015.
The IRS has proposed adjustments for years 2005-2012, reallocating profits between certain of our U. S.  and foreign subsidiaries.
We have disputed these adjustments and intend to continue to vigorously defend our positions.
For years 2005- 2007, we have filed a petition with the U. S.  Tax Court.
For years 2008-2009, we are pursuing resolution through the IRS Administrative Appeals Process.
State income tax returns are generally subject to examination for a period of 3 to 5 years after filing of the respective return.
The state impact of any federal changes generally remains subject to examination by various states for a period of up to one year after formal notification to the states.
We have various state income tax return positions in the process of examination, administrative appeals or litigation.
In other major jurisdictions, open years are generally 2009 or later.16.
Capital Stock and Earnings per Share We are authorized to issue 250.0 million shares of preferred stock, none of which were issued or outstanding as of December 31, 2017.
The numerator for both basic and diluted earnings per share is net earnings available to common stockholders.
The denominator for basic earnings per share is the weighted average number of common shares outstanding during the period.
The denominator for diluted earnings per share is weighted average shares outstanding adjusted for the effect of dilutive stock options and other equity awards.
The following is a reconciliation of weighted average shares for the basic and diluted share computations (in millions):


| 2016 2015 2014 | Cash and cash equivalents at beginning of year | Operating activities | Net earnings | Non-cashadjustments | Changes in working capital | Other, net | Net cash provided by operating activities | Net cash used for investing activities | Net cash provided by (used for) financingactivities | Net change in cash and cash equivalents | Cash and cash equivalents at end of year |


| Total Consolidated Portfolio Industrial Medical Office Non-reportable | Year ofExpiration | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 and Thereafter | Total Leased | Total Portfolio Square Feet | Percent Leased |


Expenses Total expenses, which exclude the market impact on indexed universal life benefits (net of hedges and the related DAC amortization), increased $135 million, or 8%, to $1.8 billion for the year ended December 31, 2013 compared to $1.7 billion for the prior year primarily due to an increase in benefits, claims, losses and settlement expenses.
Distribution expenses increased $10 million, or 15%, to $77 million for the year ended December 31, 2013 compared to $67 million for the prior year driven by higher compensation related to higher sales.
Benefits, claims, losses and settlement expenses, which exclude the market impact on indexed universal life benefits (net of hedges), increased $106 million, or 9%, to $1.3 billion for the year ended December 31, 2013 compared to $1.1 billion for the prior year due to the impact of unlocking, higher expenses related to our auto and home business, an $8 million increase in disability income reserves in the second quarter of 2013 related to prior periods and a $9 million benefit from a life insurance reserve release in the prior year.
The increase in expenses related to our auto and home business was driven by higher claim and claim adjustment expense reflecting the impact of growth in exposures due to a 29% increase in gross new policies and higher loss cost trends, partially offset by lower catastrophe losses.
Auto and home catastrophe losses were $42 million in 2013 compared to $51 million in the prior year, including $20 million from Superstorm Sandy.
Benefits, claims, losses and settlement expenses for the year ended December 31, 2013 included a $4 million benefit from unlocking compared to a $14 million benefit in the prior year.
The primary driver of the unlocking impact in both periods was favorable mortality experience.
Amortization of DAC increased $8 million, or 7%, to $118 million for the year ended December 31, 2013 compared to $110 million for the prior year due to the impact of unlocking.
The impact of unlocking was a $3 million benefit for the year ended December 31, 2013 compared to a $14 million benefit in the prior year.
The primary driver of the unlocking impact in both periods was a lower mortality assumption.


| Calendar year: Pre-tax catastrophe losses | (Dollars in millions) | 2013 | 2012 | 2011 | 2010 | 2009 | Years Ended December 31, | (Dollars in millions) | 2013 | Attritional | Catastrophes | Total segment | 2012 | Attritional | Catastrophes | Total segment | 2011 | Attritional | Catastrophes | Total segment | Variance 2013/2012 | Attritional | Catastrophes | Total segment | Variance 2012/2011 | Attritional | Catastrophes | Total segment | (Some amounts may not reconcile due to rounding.) | At December 31, | (Dollars in millions) | U.S. Reinsurance | International | Bermuda | Insurance | Mt. Logan | Total | (Some amounts may not reconcile due to rounding.) |


| 2016 2015 2014 2013 | $10,595 | Pension Benefits | Years ended June 30 | CLASSIFICATION OF NET AMOUNT RECOGNIZED | Noncurrent assets | Current liability | Noncurrent liability | NET AMOUNT RECOGNIZED | AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | Net actuarial loss | Prior service cost /(credit) | NET AMOUNTS RECOGNIZED IN AOCI | CHANGE IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (AOCI) | Net actuarial loss /(gain) - current year | Prior service cost/(credit) - current year | Amortization of net actuarial loss | Amortization of prior service (cost) / credit | Settlement / curtailment cost | Currency translation and other | TOTAL CHANGE IN AOCI | NET AMOUNTS RECOGNIZED IN PERIODIC BENEFIT COST AND AOCI |


| In millions, except for per share data 2005 | Net income | Add: Stock-based employee compensation expense included in reported net income, net of related tax effects | Deduct: Total stock-based employee compensation expense determined under the fair value method for all awards, net of related taxeffects | Pro forma net income | Earnings per share | Basic-as reported | Basic-pro forma | Diluted-as reported | Diluted-pro forma |


| 2008 2007 | December 31, | Credit-linked notes(a) | Static structure | Managed structure(b) | Total | December 31, (in millions) | 2010 | 2009 |


| in millions As of December 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 - thereafter | Total |


| Year ended December 31, 2006 Residential mortgage | (in millions, except for ratios and where | otherwise noted) | Principal securitized | Pretax gains | All cash flows during the period: | Proceeds from new securitizations | Servicing fees collected | Other cash flows received(a) | Proceeds from collections reinvestedin revolving securitizations | Purchases of previously transferredfinancial assets (or the underlyingcollateral)(b) | Cash flows received on the intereststhat continue to be held by theFirm(d) | Key assumptions used to measure retainedinterests originated during the year(rates per annum): | Prepaymentrate(e) | PPR | Weighted-average life (in years) | Expected credit losses | Discount rate |


| Year Ended December 31, 2012 | in millions, except per share data | GAAP results | Non-GAAP adjustments: | Goodwill and other intangible asset impairment charges | Acquisition- and divestiture-related net credits | Restructuring-related charges | Litigation-related charges | Discrete tax items | Amortization expense | Adjusted results |


| December 31, 2008 Number of Policyholders Net Paid Losses Net Asbestos Reserves Percent of Asbestos Net Reserves | (In millions of dollars) | Policyholders with settlement agreements | Structured settlements | Wellington | Coverage in place | Total with settlement agreements | Other policyholders with active accounts | Large asbestos accounts | Small asbestos accounts | Total other policyholders | Assumed reinsurance and pools | Unassigned IBNR | Total | Structured settlements | Wellington | Coverage in place | Total with settlement agreements | Other policyholders with active accounts | Large asbestos accounts | Small asbestos accounts | Total other policyholders | Assumed reinsurance and pools | Unassigned IBNR | Total |


| Period of Expiration | 2010-2015 | Net operating loss | R&D credit | CA Credits | CT credit | MA credits | WI credits | IN credits |


| (Amounts in thousands) For the Year Ended December 31, 2006 | Total | Property rentals | Straight-line rents: | Contractual rent increases | Amortization of free rent | Amortization of acquired below- market leases, net | Total rentals | Tenant expense reimbursements | Fee and other income: | Tenant cleaning fees | Management and leasing fees | Lease termination fees | Other | Total revenues | Operating expenses | Depreciation and amortization | General and administrative | Total expenses | Operating income (loss) | (Loss) income applicable to Alexander’s | Loss applicable to Toys “R” Us | Income from partially owned entities | Interest and other investment income, net | Interest and debt expense | Net gains on disposition of wholly owned and partially owned assets other than depreciable real estate | Minority interest of partially owned entities | Income (loss) before income taxes | Income tax (expense) benefit | Income (loss) from continuing operations | Income (loss) from discontinued operations, net | Income (loss) before allocation to minority limited partners | Minority limited partners’ interest in the Operating Partnership | Perpetual preferred unit distributions of the Operating Partnership | Net income (loss) | Interest and debt expense-3 | Depreciation and amortization-3 | Income tax (benefit) expense(3) | EBITDA-1 | Percentage of EBITDA by segment |


| 2004 2003 2002 2001 | $1,413 |


| Defined benefit pension plans | As of or for the year ended December 31, | (in millions) | Change in benefit obligation | Benefit obligation, beginning of year | Benefits earned during the year | Interest cost on benefit obligations | Plan amendments | WaMu Global Settlement | Employee contributions | Net gain/(loss) | Benefits paid | Expected Medicare Part D subsidy receipts | Foreign exchange impact and other | Benefit obligation, end of year | Change in plan assets | Fair value of plan assets, beginning of year | Actual return on plan assets | Firm contributions | WaMu Global Settlement | Employee contributions | Benefits paid | Foreign exchange impact and other | Fair value of plan assets, end of year | Funded/(unfunded) status(a) | Accumulated benefit obligation, end of year |


| 2009 | Q1 | Leverage Ratio | Interest Coverage Ratio | Long-term AUM |


| 2008 High Low | Quarter ended March 31 | Quarter ended June 30 | Quarter ended September 30 | Quarter ended December 31 | 2007 | Quarter ended March 31 | Quarter ended June 30 | Quarter ended September 30 | Quarter ended December 31 |


| Dividend | Declaration Date | January 26, 2011 | October 25, 2010 | July 28, 2010 | April 28, 2010 | January 27, 2010 |


| Years Ended December 31, | 2007 | (In millions) | Net investment gains (losses), excluding embedded derivatives | Policyholder benefits and claims | Net investment income-1 |


Financial Review Net Cash Provided by Operating Activities Net cash provided by operating activities of $8.9 billion for the year ended December 31, 2017, increased by $0.8 billion from the comparable 2016 period.
While the impacts of the Tax Cuts and Jobs Act reduced net earnings by $1.6 billion, there was no net impact on operating cash flows for the year, as the changes in deferred taxes and income taxes payable offset the net earnings impact.
Excluding the impact of the Tax Cuts and Jobs Act as well as favorable currency movements of $0.4 billion, the increase in cash flows provided by operating activities can be attributed to higher net earnings offset by working capital and other movements.
At December 31, 2017, PMI recorded an income tax payable of $1.7 billion representing the transition tax of $2.2 billion, partially offset by foreign tax credits related to foreign withholding taxes previously paid of $0.5 billion.
The income tax payable is due over an 8-year period beginning in 2018.
For further details, see Item 8, Note 11.
Income Taxes to our consolidated financial statements.
Net cash provided by operating activities of $8.1 billion for the year ended December 31, 2016, increased by $212 million from the comparable 2015 period.
Excluding unfavorable currency movements of $409 million, the change was due primarily to net earnings growth and lower cash payments related to exit costs, partly offset by higher working capital requirements and 2016 installment payments of security into a court trust pertaining to the Létourneau and Blais cases as well as a 2016 payment to the South Korean tax authorities (see Item 8, Note 18.
Contingencies for additional information).
Excluding currency, the unfavorable variance in working capital was due primarily to the following: ?
more cash used for accounts receivable, primarily due to the timing of sales and cash collections (including unfavorable comparisons to the cash flows provided for accounts receivable in 2015 following the expansion of arrangements to sell accounts receivable to unaffiliated financial institutions as disclosed in Item 8, Note 20.
Sale of Accounts Receivable), partly offset by ?
more cash provided by accrued liabilities and other current assets, primarily due to the timing of payments for excise taxes.


| Amount Ratios | December 31Dollars in millions | Risk-based capital | Common equity Tier 1 (b) | PNC | PNC Bank | Tier 1 | PNC | PNC Bank | Total | PNC | PNC Bank | Leverage | PNC | PNC Bank |


South Africa Acquisition—On November 4, 2010, the Company entered into a definitive agreement with Cell C (Pty) Limited to purchase up to approximately 1,400 existing towers, and up to 1,800 additional towers that either are under construction or will be constructed, for an aggregate purchase price of up to approximately $430 million.
The Company anticipates closing the purchase of up to 1,400 existing towers during 2011, subject to customary closing conditions.
Other Transactions Coltel Transaction—On September 3, 2010, the Company entered into a definitive agreement to purchase the exclusive use rights for towers in Colombia from Colombia Telecomunicaciones S. A.  E. S. P.  (“Coltel”) until 2023, when ownership of the towers will transfer to the Company at no additional cost.
Pursuant to that agreement, the Company completed the purchase of exclusive use rights for 508 towers for an aggregate purchase price of $86.8 million during the year ended December 31, 2010.
The Company expects to complete the purchase of the exclusive use rights for an additional 180 towers by the end of 2011, subject to customary closing conditions.
The transaction has been accounted for as a capital lease, with the aggregated purchase price being allocated to property and equipment and non-current assets.
Joint Venture with MTN Group—On December 6, 2010, the Company entered into a definitive agreement with MTN Group Limited (“MTN Group”) to establish a joint venture in Ghana (“TowerCo Ghana”).
TowerCo Ghana, which will be managed by the Company, will be owned by a holding company of which a wholly owned American Tower subsidiary will hold a 51% share and a wholly owned MTN Group subsidiary (“MTN Ghana”) will hold a 49% share.
The transaction involves the sale of up to 1,876 of MTN Ghana’s existing sites to


PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 20.
FAIR VALUE OF ASSETS AND LIABILITIES (continued)


| (In thousands except per share data) First Quarter 2008 Second Quarter 2008 Third Quarter 2008 Fourth Quarter 2008 Fiscal Year 2008 | Net sales and operating revenues | Gross profit | CarMax Auto Financeincome (loss) | Selling, general andadministrative expenses | Net earnings | Net earnings per share: | Basic | Diluted |


| $ in millions As of December 2013 | Common shareholders’ equity | Goodwill | Identifiable intangible assets | Deferred tax liabilities | Goodwill and identifiable intangible assets, net of deferred tax liabilities | Deductions for investments in nonconsolidated financial institutions1 | Otheradjustments2 | Basel III CET1 | Basel III Advanced RWAs | Basel III Advanced CET1 Ratio |


| Severance Pay and Benefits Outside Services 1 Other Direct Costs Total | 2010 | Costs incurred | Payments | Noncash and exchange | Accrued balance as of December 31 | 2011 | Costs incurred | Payments | Noncash and exchange | Accrued balance as of December 31 |


We have a five year $1,350 million revolving, multicurrency, senior unsecured credit facility maturing November 30, 2012 (Senior Credit Facility).
We had $128.8 million outstanding under the Senior Credit Facility at December 31, 2009, and an availability of $1,221.2 million.
The Senior Credit Facility contains provisions by which we can increase the line to $1,750 million.
We also have available uncommitted credit facilities totaling $84.1 million.
We may use excess cash or further borrow against our Senior Credit Facility, subject to limits set by our Board of Directors, to repurchase additional common stock under the $1.25 billion program which expires December 31, 2010.
Approximately $211.1 million remains authorized for future repurchases under this plan.
Management believes that cash flows from operations and available borrowings under the Senior Credit Facility are sufficient to meet our expected working capital, capital expenditure and debt service needs.
Should investment opportunities arise, we believe that our earnings, balance sheet and cash flows will allow us to obtain additional capital, if necessary.


| (in millions) December 31, 2013 Net Inflows Market Change FX Impact December 31, 2014 | Equity | Fixed income | Multi-asset class | Alternatives-1 | TotaliShares |


| Price Range | High | 2008 | Quarter ended March 31, 2008 | Quarter ended June 30, 2008 | Quarter ended September 30, 2008 | Quarter ended December 31, 2008 | 2007 | Quarter ended March 31, 2007 | Quarter ended June 30, 2007 | Quarter ended September 30, 2007 | Quarter ended December 31, 2007 |


| (Dollars in millions) Securities -1 Derivatives -2 Employee Benefit Plans -3 Foreign Currency -4 Total | Balance, December 31, 2007 | Net change in fair value recorded in accumulated OCI-5 | Net realized losses reclassified into earnings-6 | Balance, December 31, 2008 | Balance, December 31, 2006 | Net change in fair value recorded in accumulated OCI-5 | Net realized (gains) losses reclassified into earnings(6) | Balance, December 31, 2007 | Balance, December 31, 2005 | Net change in fair value recorded in accumulated OCI | Net realized (gains) losses reclassified into earnings(6) | Balance, December 31, 2006 |


SOC originates extended-term finance and contract receivables on sales of Snap-on product sold through the U. S.  franchisee and customer network and to Snap-ons industrial and other customers; Snap-ons foreign finance subsidiaries provide similar financing internationally.
Interest income on finance and contract receivables is included in Financial services revenue on the accompanying Consolidated Statements of Earnings.


| 2009 | (Dollars in millions) | Trading account assets: | Corporate securities, trading loans and other | Equity securities | Non-U.S.sovereign debt | Mortgage trading loans and asset-backed securities | Total trading account assets | Net derivative assets-2 | Available-for-saledebt securities: | Non-agency MBS: | Residential | Commercial | Non-U.S.securities | Corporate/Agency bonds | Other taxable securities | Tax-exempt securities | Totalavailable-for-saledebt securities | Loans and leases-3 | Mortgage servicing rights | Loansheld-for-sale-3 | Other assets-4 | Trading account liabilities: | Non-U.S.sovereign debt | Corporate securities and other | Total trading account liabilities | Commercial paper and other short-term borrowings-3 | Accrued expenses and other liabilities-3 | Long-term debt-3 |


Entergy Corporation and Subsidiaries Notes to Financial Statements 132 FERC audit report, System Energy initially recorded as a net regulatory asset the difference between the recovery of the lease payments and the amounts expensed for interest and depreciation and continues to record this difference as a regulatory asset or liability on an ongoing basis, resulting in a zero net balance for the regulatory asset at the end of the lease term.
The amount was a net regulatory asset (liability) of ($2.0) million and $60.6 million as of December 31, 2011 and 2010, respectively.
As of December 31, 2011, System Energy had future minimum lease payments (reflecting an implicit rate of 5.13%), which are recorded as long-term debt as follows:


Smokeless Products Segment The smokeless products segment's operating companies income grew during 2012 driven by higher pricing, Copenhagen and Skoal's combined volume and retail share performance and effective cost management.
The following table summarizes smokeless products segment shipment volume performance:


Loss on extinguishment of debt.
During the third and fourth quarters of 2009 we issued $1,250.0 million of senior notes, the proceeds of which were primarily used to purchase and retire outstanding senior notes maturing in 2010 through 2034.
Additionally, we repurchased certain of our outstanding senior notes in the secondary market.
Landfill depletion and amortization expense in aggregate dollars increased primarily due to increased landfill disposal volumes and an overall increase in our average depletion rate.
Offsetting these increases were favorable amortization adjustments of $13.3 million that were recognized in 2014 relative to asset retirement obligations, compared to favorable amortization adjustments of $0.3 million in 2013.
Included in these favorable adjustments are increases in deemed probable expansion airspace at certain of our active solid waste landfills.
Depreciation, Amortization and Depletion of Property and Equipment – 2013 compared to 2012 Depreciation and amortization of property and equipment in aggregate dollars increased $24.0 million, primarily due to higher costs of residential side loaders for automating our residential collection routes and an increased number of CNG vehicles.
In addition, we made increased investments in new and upgraded recycling infrastructure projects that became operational over the past several quarters.
Landfill depletion and amortization expense in aggregate dollars increased $4.3 million, primarily due to increased landfill disposal volumes, as well as an overall increase in our average depletion rate.
Offsetting these increases were favorable amortization adjustments of $0.3 million that were recognized in 2013 related to asset retirement obligations, compared to net unfavorable adjustments of $4.9 million in 2012.
Landfill depletion and amortization as a percentage of revenue remained relatively consistent at 3.1% for 2013 and 3.2% for 2012.
Amortization of Other Intangible Assets and Other Assets Expenses for amortization of other intangible assets and other assets were $68.4 million, $70.7 million and $70.1 million for the years ended December 31, 2014, 2013 and 2012, respectively, or, 0.8%, 0.8% and 0.9% of revenue, for 2014, 2013 and 2012, respectively.
Our other intangible assets and other assets primarily relate to customer relationships, franchise agreements, other municipal agreements, favorable lease assets and, to a lesser extent, non-compete agreements and trade names.
The decline in amortization is the result of certain intangible assets now being fully amortized, partially offset by assets acquired in the acquisitions of various solid waste businesses throughout the year.
Accretion Expense Accretion expense was $78.0 million, $76.6 million and $78.4 million, or, 0.9%, 0.9% and 1.0% of revenue, for the years ended December 31, 2014, 2013 and 2012, respectively.
Accretion expense has remained relatively unchanged as our asset retirement obligations remained relatively consistent period over period.
Selling, General and Administrative Expenses Selling, general and administrative expenses include salaries, health and welfare benefits, and incentive compensation for corporate and field general management, field support functions, sales force, accounting and finance, legal, management information systems, and clerical and administrative departments.
Other expenses include rent and office costs, fees for professional services provided by third parties, legal settlements, marketing, investor and community relations services, directors’ and officers’ insurance, general employee relocation, travel, entertainment and bank charges.
Restructuring charges are excluded from selling, general and administrative expenses and are discussed separately.
The following table summarizes our selling, general and administrative expenses for the years ended December 31, 2014, 2013 and 2012 (in millions of dollars and as a percentage of revenue):


INDUSTRY Cruising is considered a well-established vacation sector in the North American market, a growing sector over the long-term in the European market and a developing but promising sector in several other emerging markets.
Industry data indicates that market penetration rates are still low and that a significant portion of cruise guests carried are first-time cruisers.
We believe this presents an opportunity for long-term growth and a potential for increased profitability.
The following table details market penetration rates for North America and Europe computed based on the number of annual cruise guests as a percentage of the total population:


MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION ?
Interest expense on the Company’s secured debt decreased from $30.8 million in 2001 to $22.9 million in 2002 as the Company paid off $13.5 million of secured debt throughout 2002 and experienced lower borrowings on its secured line of credit during 2002 compared to 2001.
Additionally, the Company paid off approximately $128.5 million of secured debt throughout 2001.  ?
Interest expense on the Company’s $500 million unsecured line of credit decreased by approximately $1.1 million in 2002 compared to 2001 as the Company maintained lower balances on the line throughout most of 2002.
As a result of the above-mentioned items, earnings from Rental Operations decreased $35.0 million from $254.1 million for the year ended December 31, 2001, to $219.1 million for the year ended December 31, 2002.
Service Operations Service Operations primarily consist of leasing, management, construction and development services for joint venture properties and properties owned by third parties.
Service Operations revenues decreased from $80.5 million for the year ended December 31, 2001, to $68.6 million for the year ended December 31, 2002.
The prolonged effect of the slow economy has been the primary factor in the overall decrease in revenues.
The Company experienced a decrease of $12.7 million in net general contractor revenues because of a decrease in the volume of construction in 2002, compared to 2001, as well as slightly lower profit margins.
Property management, maintenance and leasing fee revenues decreased from $22.8 million in 2001 to $14.3 million in 2002 primarily because of a decrease in landscaping maintenance revenue resulting from the sale of the landscaping operations in the third quarter of 2001.
Construction management and development activity income represents construction and development fees earned on projects where the Company acts as the construction manager along with profits from the Company’s held for sale program whereby the Company develops a property for sale upon completion.
The increase in revenues of $10.3 million in 2002 is primarily due to an increase in volume of the sale of properties from the held for sale program.
Service Operations expenses decreased from $45.3 million in 2001 to $38.3 million in 2002.
The decrease is attributable to the decrease in construction and development activity and the reduced overhead costs as a result of the sale of the landscape business in 2001.
As a result of the above, earnings from Service Operations decreased from $35.1 million for the year ended December 31, 2001, to $30.3 million for the year ended December 31, 2002.
General and Administrative Expense General and Administrative Expense increased from $15.6 million in 2001 to $25.4 million for the year ended December 31, 2002.
The Company has been successful reducing total operating and administration costs; however, reduced construction and development activities have resulted in a greater amount of overhead being charged to general and administrative expense instead of being capitalized into development projects or charged to service operations.


| September 30, | Dollars in thousands | Blanco revolving credit facility at 4.53% and 3.34%, respectively, due 2006 | AmerisourceBergen securitization financing due 2007 | Revolving credit facility due 2009 | $400,000, 55/8% senior notes due 2012 | $500,000, 57/8% senior notes due 2015 | Term loan facility at 3.02% | Bergen 71/4% senior notes due 2005 | 81/8%senior notes due 2008 | 71/4%senior notes due 2012 | AmeriSource 5% convertible subordinated notes due 2007 | Other | Total debt | Less current portion | Total, net of current portion |


In December, our board of directors ratified its authorization of a stock repurchase program in the amount of 1.5 million shares of our common stock.
As of December 31, 2010 no shares had been repurchased.
We have paid dividends for 71 consecutive years with payments increasing each of the last 19 years.
We paid total dividends of $.54 per share in 2010 compared with $.51 per share in 2009.


SILICON VALLEY BANCSHARES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) 24.
Stockholders Rights Plan On October 22, 1998, the Companys board of directors (the Board) approved and adopted a stockholders rights plan (the Rights Plan) to, among other things, protect the Companys stockholders from coercive takeover tactics.
On November 6, 2003, the Board approved and adopted Amendment No.1 to the Rights Plan to increase from 10% to 15% the minimum percentage of common shares that any person shall beneficially own to qualify as an Acquiring Person for purposes of triggering the stockholders rights under the Rights Plan.
On January 29, 2004, the Board approved and adopted an amended and restated Rights Plan (the Amended and Restated Rights Plan), which supercedes and replaces in entirety the Rights Plan.
The following summary of the Rights and the Amended and Restated Rights Plan is a general description only and is subject to the detailed terms and conditions of the Amended and Restated Rights Plan, a copy of which is attached as Exhibit 4.20 to the Companys


Reinsurance recoverables, included in premiums and other receivables, were $10.4 billion and $10.2 billion at December 31, 2007 and 2006, respectively, including $1.2 billion at both December 31, 2007 and 2006 relating to reinsurance of long-term GICs and structured settlement lump sum contracts accounted for as a financing transaction; $3.4 billion and $3.0 billion at December 31, 2007 and 2006, respectively, relating to reinsurance on the run-off of long-term care business written by Travelers; $1.2 billion and $1.3 billion at December 31, 2007 and 2006, respectively, relating to reinsurance on the run-off of workers compensation business written by Travelers; and $1.1 billion and $1.4 billion at December 31, 2007 and 2006, respectively, relating to the reinsurance of investment-type contracts held by small market defined benefit contribution plans.
Reinsurance and ceded commissions payables, included in other liabilities, were $571 million and $275 million at December 31, 2007 and 2006, respectively.9.


| (in millions) 2016 2017 2018 2019 2020 Thereafter Total | Senior Notes | Term Loans | $— |


| 2013 | (dollar amounts in thousands, except per share amounts) | Interest income | Interest expense | Net interest income | Provision for credit losses | Net interest income after provision for credit losses | Total noninterest income | Total noninterest expense | Income before income taxes | Provision for income taxes | Net income | Dividends on preferred shares | Net income applicable to common shares | Common shares outstanding | Average—basic | Average—diluted-2 | Ending | Book value per share | Tangible book value per share-3 | Per common share | Net income—basic | Net income —diluted | Cash dividends declared | Common stock price, per share | High-4 | Low-4 | Close | Average closing price | Return on average total assets | Return on average common shareholders’ equity | Return on average tangible common shareholders’ equity-5 | Efficiency ratio-6 | Effective tax rate (benefit) | Margin analysis-as a % of average earning assets-7 | Interest income-7 | Interest expense | Net interest margin-7 | Revenue—FTE | Net interest income | FTE adjustment | Net interest income-7 | Noninterest income | Total revenue-7 |


| 10/28/2007 10/26/2008 10/25/2009 10/31/2010 10/30/2011 10/28/2012 | Applied Materials | S&P 500 Index | RDG Semiconductor Composite Index |


| Millions, Except Percentages 2010 2009 | Debt (a) | Equity | Capital (b) | Debt to capital (a/b) | Millions, Except Percentages | Debt | Value of sold receivables | Debt including value of sold receivables | Net present value of operating leases | Unfunded pension and OPEB | Adjusted debt (a) | Equity | Adjusted capital (b) | Adjusted debt to capital (a/b) |


| Interest Rate Derivates Number of Instruments Notional | Interest Rate Caps | Interest Rate Swaps |


Consolidated Results of Operations Year Ended December 31, 2014 Compared to Year Ended December 31, 2013 The following table presents our consolidated results of operations:


The following table provides the carrying value and the estimated fair value of financial instruments that are not reported at fair value.
All other financial instruments that are reported at fair value have been included above in the table with balances of assets and liabilities Ameriprise Financial measured at fair value on a recurring basis.


| Twelve Months Ended December 31, 2014 Twelve Months Ended December 31, 2013 | (Millions of Dollars) | Operating revenues | Purchased power | Fuel | Gas purchased for resale | Other operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Operating income |


| (Millionsof Dollars, except for per sharedata) 2005 2004 2003 | Netearnings, asreported | Add:Stock-based compensation expense included in reportedincome | Less:Stock-based employee compensation expense determined under fair valuemethod, net of related taxeffects | Proforma netearnings | Earningsper share: | Basic, asreported | Basic,pro forma | Diluted,asreported | Diluted,proforma |


| November 30, | 2008 | Carrying Amount | (In thousands) | ASSETS | Financial services: | Loans held-for-investment, net | Investments—held-to-maturity | LIABILITIES | Homebuilding: | Senior notes and other debts payable | Financial services: | Notes and other debts payable |


Credit Risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist of cash and temporary investments, interest rate swap agreements and trade accounts receivable.
The Company is exposed to credit losses in the event of nonperformance by counter parties to its financial instruments.
The Company anticipates, however, that counter parties will be able to fully satisfy their obligations under these instruments.
The Company places cash and temporary investments and its interest rate swap agreements with various high-quality financial institutions throughout the world, and exposure is limited at any one institution.
Although the Company does not obtain collateral or other securityto supportthese financial instruments, it does periodically evaluate the credit standing of the counter party financial institutions.
In addition, concentrations of credit risk arising from trade accounts receivable are limited due to the diversity of its customers.
The Company performs ongoing credit evaluations of its customers financial conditions and obtains collateral or other security when appropriate.


| Dollars in billions December 31 2011 December 312010 | Net outstanding standby letters of credit | Internal credit ratings (as a percentage of portfolio): | Pass (a) | Below pass (b) |


Loan-to-value and debt service coverage ratios are measures commonly used to assess the quality of commercial mortgage loans.
The loan-to-value ratio compares the amount of the loan to the fair value of the underlying property collateralizing the loan, and is commonly expressed as a percentage.
Loan-to-value ratios greater than 100% percent indicate that the loan amount is greater than the collateral value.
A smaller loan-to-value ratio indicates a greater excess of collateral value over the loan amount.
The debt service coverage ratio compares a property’s net operating income to its debt service payments.
Debt service coverage ratios less than 1.0 times indicate that property operations do not generate enough income to cover the loan’s current debt payments.
A larger debt service coverage ratio indicates a greater excess of net operating income over the debt service payments.
As of December 31, 2009, our general account investments in commercial mortgage loans attributable to the Financial Services Businesses had a weighted average debt service coverage ratio of 1.80 times, and a weighted average loan-to-value ratio of 65%.
As of December 31, 2009, approximately 96% of commercial mortgage loans attributable to the Financial Services Businesses were fixed rate loans.
As of December 31, 2009, our general account investments in commercial mortgage loans attributable to the Closed Block Business had a weighted average debt service coverage ratio of 1.88 times, and a weighted average loan-to-value ratio of 58%.
As of December 31, 2009, approximately 99% of commercial mortgage loans attributable to the Closed Block Business were fixed rate loans.
For those general account commercial mortgage loans attributable to the Financial Services Businesses that were originated in 2009, the weighted average loan-to-value ratio was 59%, and the weighted average debt service coverage ratio was 1.72 times.
The values utilized in calculating these loan-to-value ratios are developed as part of our periodic review of the commercial mortgage loan portfolio, which includes an internal evaluation of the underlying collateral value.
Our periodic review also includes a quality re-rating process, whereby we update the internal quality rating originally assigned at underwriting based on the proprietary quality rating system mentioned above.
As discussed below, the internal quality rating is a key input in determining our allowance for loan losses.
For loans with collateral under construction, renovation or lease-up, a stabilized value and projected net operating income are used in the calculation of the loan-to-value and debt service coverage ratios.
Our commercial mortgage loan portfolio attributable to the Financial Services Businesses included approximately $1.1 billion and $1.8 billion of such loans as of December 31, 2009 and December 31, 2008, respectively, and our commercial mortgage loan portfolio attributable to the Closed Block Business included approximately $0.4 billion and $0.7 billion of such loans as of December 31, 2009 and December 31, 2008, respectively.
All else being equal, these loans are inherently more risky than those collateralized by properties that have already stabilized.
As of December 31, 2009 there are $11 million and $2 million of loan-specific reserves related to these loans in the Financial Services Businesses and Closed Block Business, respectively.
In addition, these unstabilized loans are included in the calculation of our portfolio reserve as discussed below, For information regarding similar loans we hold as part of our commercial mortgage operations, see “—Invested Asset of Other Entities and Operations.


AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2010, total unrecognized compensation expense related to unvested restricted stock units granted under the 2007 Plan was $57.5 million and is expected to be recognized over a weighted average period of approximately two years.
Employee Stock Purchase Plan —The Company maintains an employee stock purchase plan (“ESPP”) for all eligible employees.
Under the ESPP, shares of the Company’s Common Stock may be purchased during bi-annual offering periods at 85% of the lower of the fair market value on the first or the last day of each offering period.
Employees may purchase shares having a value not exceeding 15% of their gross compensation during an offering period and may not purchase more than $25,000 worth of stock in a calendar year (based on market values at the beginning of each offering period).
The offering periods run from June 1 through November 30 and from December 1 through May 31 of each year.
During the 2010, 2009 and 2008 offering periods employees purchased 75,354, 77,509 and 55,764 shares, respectively, at weighted average prices per share of $34.16, $23.91 and $30.08, respectively.
The fair value of the ESPP offerings is estimated on the offering period commencement date using a Black-Scholes pricing model with the expense recognized over the expected life, which is the six month offering period over which employees accumulate payroll deductions to purchase the Company’s Common Stock.
The weighted average fair value for the ESPP shares purchased during 2010, 2009 and 2008 was $9.43, $6.65 and $7.89, respectively.
At December 31, 2010, 8.7 million shares remain reserved for future issuance under the plan.
Key assumptions used to apply this pricing model for the years ended December 31, are as follows:


Note 15.
Commitments and Contingencies The Company’s acquisition of Impella provided that Abiomed was required to make contingent payments to Impella’s former shareholders as follows: ?
upon FDA approval of the Impella 2.5 device, a payment of $5,583,333 ?
upon FDA approval of the Impella 5.0 device, a payment of $5,583,333, and ?
upon the sale of 1,000 units of Impella’s products worldwide, a payment of $5,583,334.
The two milestones related to sales and FDA approval of the Impella 2.5 device were achieved and paid prior to March 31, 2009.
In April 2009, the Company received FDA 510(k) clearance of its Impella 5.0 product, triggering an obligation to pay the milestone related to the Impella 5.0 device.
In May 2009, the Company paid $1.8 million of this final milestone in cash and elected to pay the remaining amount through the issuance of approximately 664,612 shares of common stock.


| 2013 2012 2011 | (In millions) | Future revenues | Less: | Future production costs | Future development costs | Future income tax expenses | 25,425 | Future net cash flows | Less: Discount at 10% annual rate | Standardized measure of discounted future net cash flows |


General and Administrative Expense General and administrative expense includes compensation, share-based awards and other benefits for employees (other than employees directly related to distribution, including financial advisors), integration costs, professional and consultant fees, information technology, facilities and equipment, advertising and promotion, legal and regulatory and corporate related expenses.
Owned, Managed and Administered Assets Owned assets include certain assets on our Consolidated Balance Sheets for which we do not provide investment management services and do not recognize management fees, such as investments in non-affiliated funds held in the separate accounts of our life insurance subsidiaries, as well as restricted and segregated cash and receivables.
Managed assets include managed external client assets and managed owned assets.
At January 1, 2010, we consolidated approximately $5.5 billion of client assets in VIEs onto our Consolidated Balance Sheets that were not previously consolidated.
Prior to January 1, 2010, these assets were included in managed external client assets and were subsequently included in managed owned assets.
Managed external client assets include client assets for which we provide investment management services, such as the assets of the Columbia funds and Threadneedle funds, assets of institutional clients and client assets held in wrap accounts.
Managed external client assets also include assets managed by sub-advisors selected by us.
Managed external client assets are not reported on our Consolidated Balance Sheets.
Managed owned assets include certain assets on our Consolidated Balance Sheets for which we provide investment management services and recognize management fees in our Asset Management segment, such as the assets of the general account, RiverSource Variable Product funds held in the separate accounts of our life insurance subsidiaries and client assets of CIEs.
Investors in the mutual funds and face amount certificates we advise may redeem shares on each business day, provided that redemption orders are submitted in a timely fashion.
For our institutional clients, advisory contracts may generally be terminated (and managed assets redeemed) upon 30 days’ written notice.
However, we may in limited circumstances negotiate customized termination provisions with certain clients during the contracting process, or we may waive negotiated notice periods at our discretion.
Investors in the private investment funds we sponsor can generally redeem shares as of each month end upon 30-days advance written notice, with limited exceptions.
In addition, the notice requirements for our private investment funds may be waived or reduced at the discretion of the applicable fund.
Administered assets include assets for which we provide administrative services such as client assets invested in other companies’ products that we offer outside of our wrap accounts.
These assets include those held in clients’ brokerage accounts.
We generally record fees received from administered assets as distribution fees.
We do not exercise management discretion over these assets and do not earn a management fee.
These assets are not reported on our Consolidated Balance Sheets.
We earn management fees on our owned separate account assets based on the market value of assets held in the separate accounts.
We record the income associated with our owned investments, including net realized gains and losses associated with these investments and other-than-temporary impairments related to credit losses on these investments, as net investment income.
For managed assets, we receive management fees based on the value of these assets.
We generally report these fees as management and financial advice fees.
We may also receive distribution fees based on the value of these assets.
Our owned, managed and administered assets are impacted by net flows of client assets, market movements and foreign exchange rates.
Owned assets are also affected by changes in our capital structure.


| As of December 31, 2009 | Notional | (in millions) | Financial assets with interest rate risk: | Fixed maturities -1 | Commercial mortgage and other loans | Policy loans | Derivatives: | Swaps | Futures | Options | Forwards | Variable annuity and other living benefit feature embedded derivatives-2 | Financial liabilities with interest rate risk: | Short-term and long-term debt | Debt of consolidated variable interest entities-3 | Investment contracts | Bank customer liabilities | Net estimated potential loss |


| December 31, | Weighted Average   Actual Allocation | 2007 | Asset Category | Equity securities | Fixed maturities | Other (Real Estate and Alternative investments) | Total |


| Year Ended December 31, | Assumptions | Risk-free interest rate | Expected life in years | Expected volatility | Expected dividend yield | Estimated weighted-average fair value of options granted per share |


Stock-Based Compensation We issue stock-based incentive awards to our eligible employees and Directors under the 2002 Employee Stock Incentive Plan and a Director Deferred Stock Ownership Plan.  ?2002 Employee Stock Incentive Plan (the 2002 Plan)  The 2002 Plan permits the granting of nonqualified stock options, stock appreciation rights, performance stock, restricted stock and other stock-based awards.
In 2018, we made a one-time issuance of incentive stock options under the 2002 Plan to replace Kensho employees stock options that were assumed in connection with our acquisition of Kensho in April of 2018.  ?
Director Deferred Stock Ownership Plan  Under this plan, common stock reserved may be credited to deferred stock accounts for eligible Directors.
In general, the plan requires that 50% of eligible Directors annual compensation plus dividend equivalents be credited to deferred stock accounts.
Each Director may also elect to defer all or a portion of the remaining compensation and have an equivalent number of shares credited to the deferred stock account.
Recipients under this plan are not required to provide consideration to us other than rendering service.
Shares will be delivered as of the date a recipient ceases to be a member of the Board of Directors or within five years thereafter, if so elected.
The plan will remain in effect until terminated by the Board of Directors or until no shares of stock remain available under the plan.


| Year Ended December 31 2008 2007 Variance | Revenues | Operating earnings | Operating margin | Gulfstream aircraft deliveries (in units): | Green | Completion |


| 2017 2016 | Proved properties | Unproved properties | Total | Accumulated depreciation, depletion and amortization | Net capitalized costs | 2017 | Interest, Net of Capitalized Interest | Income Taxes, Net of Refunds Received |


The commercial paper of the Companies is rated P-2, A-2 and F2, respectively, by Moodys, S&P and Fitch.
Con Edisons long-term credit rating is Baa1, BBB+ and BBB+, respectively, by Moodys, S&P and Fitch.
The unsecured debt of CECONY is rated A3, A- and A-, respectively, by Moodys, S&P and Fitch.
The unsecured debt of O&R is rated Baa1, A- and A-, respectively, by Moodys, S&P and Fitch.
Securities ratings assigned by rating organizations are expressions of opinion and are not recommendations to buy, sell or hold securities.
A securities rating is subject to revision or withdrawal at any time by the assigning rating organization.
Each rating should be evaluated independently of any other rating.
CECONY has $636 million of tax-exempt debt for which the interest rates are to be determined pursuant to periodic auctions.
Of this amount, $391 million is insured by Ambac Assurance Corporation and $245 million is insured by Syncora Guarantee Inc.  (formerly XL Capital Assurance Inc. ).
Credit rating agencies have downgraded the ratings of these insurers from AAA to lower levels.
Subsequently, there have not been sufficient bids to determine the interest rates pursuant to auctions, and interest rates have been determined by reference to a variable rate index.
The weighted average annual interest


Amounts presented are for electricity supplied by utility and merchant generation operations.
Operating Results  2002 Dominion Energy contributed $2.72 per diluted share on net income of $770 million for 2002, a net income increase of $47 million and an earnings per share decrease of $0.14 over 2001.
Net income for 2002 reflected lower operating revenue ($204 million), operating expenses ($229 million) and other income ($27 million).
Interest expense and income taxes, which are discussed on a consolidated basis, decreased $50 million over 2001.
The earnings per share decrease reflected share dilution.
Regulated electric sales revenue increased $179 million.
Favorable weather conditions, reflecting increased cooling and heating degree-days, as well as customer growth, are estimated to have contributed $133 million and $41 million, respectively.
Fuel rate recoveries increased approximately $65 million for 2002.
These recoveries are generally offset by increases in electric fuel expense and do not materially affect income.
Partially offsetting these increases was a net decrease of $60 million due to other factors not separately measurable, such as the impact of economic conditions on customer usage, as well as variations in seasonal rate premiums and discounts.
Nonregulated electric sales revenue increased $9 million.
Sales revenue from Dominions merchant generation fleet decreased $21 million, reflecting a $201 million decline due to lower prices partially offset by sales from assets acquired and constructed in 2002 and the inclusion of Millstone operations for all of 2002.
Revenue from the wholesale marketing of utility generation decreased $74 million.
Due to the higher demand of utility service territory customers during 2002, less production from utility plant generation was available for profitable sale in the wholesale market.
Revenue from retail energy sales increased $71 million, reflecting primarily customer growth over the prior year.
Net revenue from Dominions electric trading activities increased $33 million, reflecting the effect of favorable price changes on unsettled contracts and higher trading margins.
Nonregulated gas sales revenue decreased $351 million.
The decrease included a $239 million decrease in sales by Dominions field services and retail energy marketing operations, reflecting to a large extent declining prices.
Revenue associated with gas trading operations, net of related cost of sales, decreased $112 million.
The decrease included $70 million of realized and unrealized losses on the economic hedges of natural gas production by the Dominion Exploration & Production segment.
As described below under Selected Information Energy Trading Activities, sales of natural gas by the Dominion Exploration & Production segment at market prices offset these financial losses, resulting in a range of prices contemplated by Dominions overall risk management strategy.
The remaining $42 million decrease was due to unfavorable price changes on unsettled contracts and lower overall trading margins.
Those losses were partially offset by contributions from higher trading volumes in gas and oil markets.
Gas transportation and storage revenue decreased $44 million, primarily reflecting lower rates.
Electric fuel and energy purchases expense increased $94 million which included an increase of $66 million associated with Dominions energy marketing operations that are not subject to cost-based rate regulation and an increase of $28 million associated with utility operations.
Substantially all of the increase associated with non-regulated energy marketing operations related to higher volumes purchased during the year.
For utility operations, energy costs increased $66 million for purchases subject to rate recovery, partially offset by a $38 million decrease in fuel expenses associated with lower wholesale marketing of utility plant generation.
Purchased gas expense decreased $245 million associated with Dominions field services and retail energy marketing operations.
This decrease reflected approximately $162 million associated with declining prices and $83 million associated with lower purchased volumes.
Liquids, pipeline capacity and other purchases decreased $64 million, primarily reflecting comparably lower levels of rate recoveries of certain costs of transmission operations in the current year period.
The difference between actual expenses and amounts recovered in the period are deferred pending future rate adjustments.
Other operations and maintenance expense decreased $14 million, primarily reflecting an $18 million decrease in outage costs due to fewer generation unit outages in the current year.
Depreciation expense decreased $11 million, reflecting decreases in depreciation associated with changes in the estimated useful lives of certain electric generation property, partially offset by increased depreciation associated with State Line and Millstone operations.
Other income decreased $27 million, including a $14 million decrease in net realized investment gains in the Millstone


| Price Range | High | 2011 | Quarter ended March 31, 2011 | Quarter ended June 30, 2011 | Quarter ended September 30, 2011 | Quarter ended December 31, 2011 | 2010 | Quarter ended March 31, 2010 | Quarter ended June 30, 2010 | Quarter ended September 30, 2010 | Quarter ended December 31, 2010 |


| At December 31, 2014 Group Retirement Products (a) 2013 Group Retirement Products (a) | (in millions) | No surrender charge(b) | 0% - 2% | Greater than 2% - 4% | Greater than 4% | Non-surrenderable | Total reserves |


| 2007 2006 2005 | Dividend Yield | Expected Volatility | Risk-free Interest Rate | Expected Lives | Options For Shares | Outstanding at | October 1, 2006 | Granted | Exercised | Canceled | Expired | Outstanding at | September 30, 2007 | Exercisable at | September 30, 2007 |


| Sales Order Cancellations   Fiscal Year Ended September 30, | Cancelled Sales Orders | 2009 | East | Midwest | Southeast | South Central | Southwest | West | 7,188 |


| 10/31/2010 10/30/2011 10/28/2012 10/27/2013 10/26/2014 10/25/2015 | Applied Materials | S&P 500 Index | RDG Semiconductor Composite Index |


Under the ESPP, eligible employees may acquire shares of Class A common stock using after-tax payroll deductions made during consecutive offering periods of approximately six months in duration.
Shares are purchased at the end of each offering period at a price of 90% of the closing price of the Class A common stock as reported on the NASDAQ Global Select Market.
Compensation expense is recognized on the dates of purchase for the discount from the closing price.
In 2017, 2016 and 2015, a total of 19,936, 19,858 and 19,756 shares, respectively, of Class A common stock were issued to participating employees.
These shares are subject to a six-month holding period.
Annual expense of $0.3 million for the purchase discount was recognized in 2017, and $0.2 million was recognized in both 2016 and 2015.
Non-executive directors receive an annual award of Class A common stock with a value equal to $100,000.
Non-executive directors may also elect to receive some or all of the cash portion of their annual stipend, up to $60,000, in shares of stock based on the closing price at the date of distribution.
As a result, 19,736 shares, 26,439 shares and 25,853 shares of Class A common stock were issued to non-executive directors during 2017, 2016 and 2015, respectively.
These shares are not subject to any vesting restrictions.
Expense of $2.5 million, $2.4 million and $2.5 million related to these stock-based payments was recognized for the years ended December 31, 2017, 2016 and 2015, respectively.


TOTAL REVENUES NET OF INTEREST EXPENSE Discount revenue decreased $617 million or 3 percent in 2016 compared to 2015, and remained relatively flat in 2015 compared to 2014.
The decrease in 2016 was primarily driven by lower Costco-related revenue.
Both periods of comparison reflected increases in contra-discount revenues, including cash rebate rewards, which in 2015 as compared to 2014 was offset by growth in billed business.
Overall, billed business was flat in 2016 compared to 2015.
U. S.  billed business decreased 3 percent, primarily driven by lower Costco-related volumes and non-U.
S.  billed business increased 6 percent (10 percent on an FX-adjusted basis).1 The average discount rate was 2.45 percent, 2.46 percent and 2.48 percent for 2016, 2015 and 2014, respectively.
The decrease in the average discount rate in 2016 compared to 2015 was driven primarily by growth of the OptBlue program, merchant negotiations, including those resulting from the recent regulatory changes affecting competitor pricing in the European Union and a prior-year benefit related to certain merchant rebate accruals, partially offset by the benefit to the discount rate from the decline in Costco merchant volumes in the current year.
We expect the average discount rate will likely continue to decline over time due to further expansion of OptBlue, merchant negotiations and competition, volume related pricing discounts and certain pricing initiatives mainly driven by pricing regulation (including regulation of competitors interchange rates).
See Tables 5 and 6 for more details on billed business performance and the average discount rate.
Net card fees increased $186 million or 7 percent in 2016 compared to 2015 and remained relatively flat in 2015 compared to 2014 (increasing 5 percent on an FX-adjusted basis).1 The increase in 2016 was driven primarily by growth in the Platinum, Gold and Delta portfolios.
Other fees and commissions decreased $113 million or 4 percent in 2016 compared to 2015, and $760 million or 21 percent in 2015 compared to 2014.
The decrease in 2016 was primarily driven by lower Costco-related fees, partially offset by an increase in delinquency and loyalty coalition-related fees.
The decrease in 2015 was primarily due to the GBT JV transaction, resulting in a lack of comparability between periods.
Other revenues were relatively flat in 2016 compared to 2015, and decreased $956 million or 32 percent in 2015 compared to 2014.
The current year included a contractual payment from a GNS partner and higher revenues from our Prepaid Services business, offset by lower revenues related to Costco, Loyalty Edge (which was sold in the fourth quarter of 2016), and the GBT JV transition services agreement.
The decrease in 2015 was primarily driven by gains related to the sales of investment securities in Concur and Industrial and Commercial Bank of China in 2014.
Interest income decreased $70 million or 1 percent in 2016 compared to 2015, and increased $366 million or 5 percent in 2015 compared to 2014.
The decrease in 2016 was primarily driven by lower Costco cobrand loans and the associated interest income, partially offset by modestly higher yields and an increase in average Card Member loans across other lending products.
The increase in 2015 primarily reflects higher average Card Member loans, partially offset by decreases in interest and dividends on investment securities driven by lower average investment securities.
Interest expense increased $81 million or 5 percent in 2016 compared to 2015, and decreased $84 million or 5 percent in 2015 compared to 2014.
The increase in 2016 was primarily driven by higher average customer deposit balances, partially offset by lower average long-term debt.
The decrease in 2015 was primarily driven by a lower cost of funds on debt and customer deposits, partially offset by an increase in average customer deposit balances.


| Fourth Quarter | (Amounts in millions) | External net sales | Intersegment net sales | Segment net sales | Cost of goods sold | Gross profit | Operating expenses | Segment operating earnings |


| In millions of dollars 2009 2010 2011 2012 2013 Thereafter | Citigroup parent company | Other Citigroup subsidiaries | Citigroup Global Markets Holdings Inc. | Citigroup Funding Inc. | Total |


| SAME STORE FACILITIES Year Ended December 31, Year Ended December 31, | 2009 | Revenues: | Rental income | Late charges and admin fees collected | Total revenues (a) | Cost of operations: | Property taxes | Direct property payroll | Media advertising | Other advertising and promotion | Utilities | Repairs and maintenance | Telephone reservation center | Property insurance | Other cost of management | Total cost of operations (a) | Net operating income (b) | Depreciation and amortization expense (c) | Net income | Gross margin (before depreciation and amortization expense) | Weighted average for the period: | Square foot occupancy (d) | Realized annual rent per occupied square foot (e)(f) | REVPAF (f)(g) | Weighted average at December 31: | Square foot occupancy | In place annual rent per occupied square foot (h) | Total net rentable square feet (in thousands) | Number of facilities |