LEGAL CONTINGENCIES Regions and its affiliates are subject to loss contingencies related to litigation and claims arising in the ordinary course of business.
Regions evaluates these contingencies based on information currently available, including advice of counsel and assessment of available insurance coverage.
Regions establishes accruals for litigation and claims when a loss contingency is considered probable and the related amount is reasonably estimable.
Any accruals are periodically reviewed and may be adjusted as circumstances change.
In addition, as previously discussed, Regions has agreed to indemnify Raymond James for all legal matters resulting from preclosing activities in conjunction with the sale of Morgan Keegan and recorded an indemnification obligation at fair value in the second quarter of 2012.
The indemnification obligation had a carrying amount of $345 million and an estimated fair value of $329 million as of December 31, 2012 (see Note 21).
For certain matters, when able to do so, Regions also estimates loss contingencies for possible litigation and claims, whether or not there is an accrued probable loss.
Where Regions is able to estimate such possible losses, Regions estimates that it is reasonably possible it could incur losses, in excess of amounts accrued, in an aggregate amount up to approximately $40 million as of December 31, 2012, with it also being reasonably possible that Regions could incur no losses in excess of amounts accrued.
The legal contingencies included in the reasonably possible estimate include those that are subject to the indemnification agreement with Raymond James.
Assessments of litigation and claims exposures are difficult due to many factors that involve inherent unpredictability.
Those factors include the following: the varying stages of the proceedings, particularly in the early stages; unspecified damages; damages other than compensatory such as punitive damages; multiple defendants and jurisdictions; whether discovery has begun or not; and whether the claim involves a class-action.
There are numerous factors that result in a greater degree of complexity in class-action lawsuits as compared to other types of litigation.
Due to the many intricacies involved in class-action lawsuits at the early stages of these matters, obtaining clarity on a reasonable estimate is difficult which may call into question its reliability.
As a result of some of these factors, Regions may be unable to estimate reasonably possible losses with respect to some of the matters disclosed below.
The aggregated estimated amount provided above therefore may not include an estimate for every matter disclosed below.
Beginning in December 2007, Regions and certain of its affiliates have been named in class-action lawsuits filed in federal and state courts on behalf of investors who purchased shares of certain Regions Morgan Keegan Select Funds (the Funds) and shareholders of Regions.
These cases have been consolidated into class-actions and shareholder derivative actions for the open-end and closed-end Funds.
The Funds were formerly managed by Regions Investment Management, Inc.  (Regions Investment Management).
Regions Investment Management no longer manages these Funds, which were transferred to Hyperion Brookfield Asset Management (Hyperion) in 2008.
Certain of the Funds have since been terminated by Hyperion.
The complaints contain various allegations, including claims that the Funds and the defendants misrepresented or failed to disclose material facts relating to the activities of the Funds.
Plaintiffs have requested equitable relief and unspecified monetary


| 2016 2015 | (In millions) | ASSETS | Money market investments | Securities: | Held-to-maturity | Available-for-sale | Trading account | Total securities | Loans held for sale | Loans and leases2 | Commercial | Commercial Real Estate | Consumer | Total Loans and leases | Total interest-earning assets | Cash and due from banks | Allowance for loan losses | Goodwill | Core deposit and other intangibles | Other assets | Total assets | LIABILITIES | Interest-bearing deposits: | Saving and money market | Time | Foreign | Total interest-bearing deposits | Borrowed funds: | Federal funds purchased and other short-term borrowings | Long-term debt | Total borrowed funds | Total interest-bearing liabilities | Noninterest-bearing deposits | Other liabilities | Total liabilities | Shareholders’ equity: | Preferred equity | Common equity | Controlling interest shareholders’ equity | Noncontrolling interests | Total shareholders’ equity | Total liabilities and shareholders’ equity | Spread on average interest-bearing funds | Taxable-equivalent net interest income and net yield on interest-earning assets |


| Range of Exercise Prices Number of Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life | Options outstanding: | Less than $20.00 | $20.00–$29.99 | $30.00–$39.99 | $40.00–$50.00 | Greater than $50.00 | Total | Options exercisable: | Less than $20.00 | $20.00–$29.99 | $30.00–$39.99 | $40.00–$50.00 | Greater than $50.00 | Total | Qualified Pension | December 31 (Measurement Date) – in millions | Accumulated benefit obligation at end of year | Projected benefit obligation at beginning of year | Service cost | Interest cost | Actuarial losses and changes in assumptions | Participant contributions | Federal Medicare subsidy on benefits paid | Early Retirement Reinsurance Program payments received | Benefits paid | Projected benefit obligation at end of year | Fair value of plan assets at beginning of year | Actual return on plan assets | Employer contribution | Participant contributions | Federal Medicare subsidy on benefits paid | Benefits paid | Fair value of plan assets at end of year | Funded status | Amounts recognized in the statement of financial positions | Noncurrent asset | Current liability | Noncurrent liability | Net amount recognized on the balance sheet | Amounts recognized in accumulated other comprehensive income consist of: | Prior service cost (credit) | Net actuarial loss | Amount recognized in AOCI | Change in Assumption (a) | .5% decrease in discount rate | .5% decrease in expected long-term return on assets | .5% increase in compensation rate |


Virtio Corporation, Inc.  (Virtio) The Company acquired Virtio on May 15, 2006 in an all-cash transaction.
Reasons for the Acquisition.
The Company believes that its acquisition of Virtio will expand its presence in electronic system level design.
The Company expects the combination of the Company’s System Studio solution with Virtio’s virtual prototyping technology will help accelerate systems to market by giving software developers the ability to begin code development earlier than with prevailing methods.
Purchase Price.
The Company paid $9.1 million in cash for the outstanding shares of Virtio, of which $0.9 million was deposited with an escrow agent and which will be paid to the former stockholders of Virtio pursuant to the terms of an escrow agreement.
In addition, the Company had a prior investment in Virtio of approximately $1.7 million.
The total purchase consideration consisted of:


| 2014 Unrestricted/Securitized 2013 Unrestricted/Securitized | Retail notes: | Equipment: | Agriculture and turf | Construction and forestry | Total | Wholesale notes | Revolving charge accounts | Financing leases (direct and sales-type) | Operating loans | Total financing receivables | Less: | Unearned finance income: | Equipment notes | Financing leases | Total | Allowance for credit losses | Financing receivables – net |


The following table provides a summary of the changes in accumulated other comprehensive income (loss) for the years presented:


| Years Ended December 31, 2016 2015 2014 | AES Corporation | Chile | Colombia | Mexico | Philippines | United Kingdom | Argentina | Other | Total-1 |


Concentrations of Credit Risk (Equity Securities).
The Company was not exposed to any concentrations of credit risk in its equity securities holdings of any single issuer greater than 10% of the Company’s equity or 1% of total investments at December 31, 2010 and 2009.


| At December 31, | (dollar amounts in thousands) | Contract amount represents credit risk | Commitments to extend credit | Commercial | Consumer | Commercial real estate | Standby letters of credit |


Sale of Makena On January 16, 2008, the Company entered into a definitive agreement to sell full world-wide rights of its Makena (formerly Gestiva) pharmaceutical product to K-V Pharmaceutical Company (“KV”) upon FDA approval of the then pending Makena new drug application for $82.0 million.
The Company had received $9.5 million of this amount, which had been recorded as a deferred gain, and the remainder was due upon FDA approval.
Under this agreement, either party had the right to terminate the agreement if FDA approval was not obtained by February 19, 2010.
On January 8, 2010, the parties executed an amendment (“First Amendment”) to the agreement eliminating the date by which FDA approval must be received and extending the term indefinitely.


| December 31, 2016 | Debt (inclusive of discount) | Revolving Credit Facility-1 | Term Loan-1 | Australian Dollar Term Loan (the "AUD Term Loan")(9) | 6% Notes due 2020-2(3)(4) | 43/8% Senior Notes due 2021 ("the 43/8% Notes")(2)(3)(4) | CAD Notes due 2021-2(5) | GBP Notes-2(4)(6) | 6% Notes due 2023-2(3) | 53/8% CAD Senior Notes due 2023 (the "CAD Notes due 2023")(2)(4)(5) | 53/4% Notes-2(3) | 53/8% Senior Notes due 2026 (the "53/8% Notes")(2)(4)(10) | Real Estate Mortgages, Capital Leases and Other-7 | Accounts Receivable Securitization Program-8 | Mortgage Securitization Program-11 | Total Long-term Debt | Less Current Portion | Long-term Debt, Net of Current Portion |


| September2013 September2014 September2015 September2016 September2017 September2018 | Apple Inc. | S&P 500 Index | S&P Information Technology Index | Dow Jones U.S. Technology Supersector Index |


| 2011 Utility EntergyWholesaleCommodities* All Other Eliminations Consolidated | (In Thousands) | Operating revenues | Deprec., amort. & decomm. | Interest and investment income | Interest expense | Income taxes | Consolidated net income (loss) | Total assets | Investment in affiliates - at equity | Cash paid for long-lived assetadditions | 2011 | -$118,415 |


| Net sales Operating income | (Millions) | Coatings | Glass | Chemicals |


THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements As of December 2016, the U. S.  federal and state and local net operating loss carryforwards were $207 million and $800 million, respectively.
If not utilized, the U. S.  federal net operating loss carryforward and the state and local net operating loss carryforward will begin to expire in 2017.
If these carryforwards expire, they will not have a material impact on the firm’s results of operations.
As of December 2016, foreign net operating loss carryforwards were $1.39 billion, substantially all of which do not expire.
The firm had no foreign tax credit carryforwards and no related net deferred income tax assets as of December 2016 and December 2015.
The firm had no capital loss carryforwards and no related net deferred income tax assets as of December 2016 and December 2015.
The valuation allowance increased by $42 million during 2016 and increased by $9 million during 2015.
The increases in 2016 and 2015 were primarily due to an increase in deferred tax assets from which the firm does not expect to realize any benefit.
The firm permanently reinvests eligible earnings of certain foreign subsidiaries and, accordingly, does not accrue any U. S.  income taxes that would arise if such earnings were repatriated.
As of December 2016 and December 2015, this policy resulted in an unrecognized net deferred tax liability of $6.18 billion and $5.66 billion, respectively, attributable to reinvested earnings of $31.24 billion and $28.55 billion, respectively.
Unrecognized Tax Benefits The firm recognizes tax positions in the consolidated financial statements only when it is more likely than not that the position will be sustained on examination by the relevant taxing authority based on the technical merits of the position.
A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized on settlement.
A liability is established for differences between positions taken in a tax return and amounts recognized in the consolidated financial statements.
The accrued liability for interest expense related to income tax matters and income tax penalties was $141 million and $101 million as of December 2016 and December 2015, respectively.
The firm recognized interest expense and income tax penalties of $27 million, $17 million and $45 million for 2016, 2015 and 2014, respectively.
It is reasonably possible that unrecognized tax benefits could change significantly during the twelve months subsequent to December 2016 due to potential audit settlements.
However, at this time it is not possible to estimate any potential change.
The table below presents the changes in the liability for unrecognized tax benefits.
This liability is included in “Other liabilities and accrued expenses.
” See Note 17 for further information.


| Physical occupancy 95.0% | Revenue change | Expense change | NOI change | 2015 | Net sales | Operating profit | Operating margins | Backlog at year-end |


| Defined Benefit Pension Plan Postretirement Healthcare Plan Supplemental Executive Retirement Plan | Accumulated other comprehensive loss (income): | Net actuarial (gain) loss |


| In millions 2015 2016 2017 2018 2019 Thereafter | Maturities of long-term debt (a) | Lease obligations | Purchase obligations (b) | Total (c) |


| Con Edison CECONY | (Millions of Dollars) | Service cost – including administrative expenses | Interest cost on projected benefit obligation | Expected return on plan assets | Recognition of net actuarial loss | Recognition of prior service costs | NET PERIODIC BENEFIT COST | Amortization of regulatory asset* | TOTAL PERIODIC BENEFIT COST | Cost capitalized | Reconciliation to rate level | Cost charged to operating expenses | Con Edison | (Millions of Dollars) | CHANGE IN PROJECTED BENEFIT OBLIGATION | Projected benefit obligation at beginning of year | Service cost – excluding administrative expenses | Interest cost on projected benefit obligation | Plan amendments | Net actuarial loss | Benefits paid | PROJECTED BENEFIT OBLIGATION AT END OF YEAR | CHANGE IN PLAN ASSETS | Fair value of plan assets at beginning of year | Actual return on plan assets | Employer contributions | Benefits paid | Administrative expenses | FAIR VALUE OF PLAN ASSETS AT END OF YEAR | FUNDED STATUS | Unrecognized net loss | Unrecognized prior service costs | Accumulated benefit obligation | Electric Derivatives | Number of Energy Contracts(a) | Con Edison | CECONY | (Millions of Dollars) | Aggregate fair value – net liabilities | Collateral posted | Additional collateral(b)(downgrade one level from current ratings) | Additionalcollateral(b)(downgrade to below investmentgrade from current ratings) |


| Period Total Number of Shares Purchased-1 Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Programs  (In millions) | October 2007 | November 2007 | December 2007 | Total Fourth Quarter | Goodwill | Amortizable intangible assets | Indefinite-lived intangible assets | Other net assets | Deferred income taxes | $919 |


| (Dollars in millions) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Cumulative Re-estimates for Each Accident Year | Accident Years | 2005 and prior | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | Total calendar year effect | Canada-1 | Translation adjustment | Re-estimate of net reserve after translation adjustment | -1This adjustment converts Canadian dollars to U.S. dollars. | (Some amounts may not reconcile due to rounding.) | U.S. | 2016 | 2017 | 2018 | 2019 | 2020 | 2021–2025 |


| Twelve Months Ended December 31, 2017 Twelve Months Ended December 31, 2018 Total | (in millions) | Deferred tax revaluation from tax law change | Adoption of modified territorial system | Deemed repatriation | Total provision for income tax expense (benefit) |


ASF Framework In December 2007, the American Securitization Forum (ASF) issued the Streamlined Foreclosure and Loss Avoidance Framework for Securitized Adjustable Rate Mortgage Loans (the ASF Framework).
The ASF Framework was developed to address a large number of subprime loans that are at risk of default when the loans reset from their initial fixed interest rates to variable rates.
The objective of the framework is to provide uniform guidelines for evaluating a large number of loans for refinancing in an efficient manner while complying with the relevant tax regulations and off-balance sheet accounting standards for loan securitizations.
The ASF Framework targets loans that were originated between January 1, 2005 and July 31, 2007, have an initial fixed interest rate period of 36 months or less and which are scheduled for their first interest rate reset between January 1, 2008 and July 31, 2010.
The ASF Framework categorizes the targeted loans into three segments.
Segment 1 includes loans where the borrower is likely to be able to refinance into any available mortgage product.
Segment 2 includes loans where the borrower is current but is unlikely to be able to refinance into any readily available mortgage product.
Segment 3 includes loans where the borrower is not current.
If certain criteria are met, ASF Framework loans in Segment 2 are eligible for fast-track modification under which the interest rate will be kept at the existing initial rate, generally for five years following the interest rate reset date.
Upon evaluation, if targeted loans do not meet specific criteria to be eligible for one of the three segments, they are categorized as other loans, as shown in the table below.
These criteria include the occupancy status of the borrower, structure and other terms of the loan.
In January 2008, the SECs Office of the Chief Accountant issued a letter addressing the accounting issues relating to the ASF Framework.
The letter concluded that the SEC would not object to continuing off-balance sheet accounting treatment for Segment 2 loans modified pursuant to the ASF Framework.
For those current loans that are accounted for off-balance sheet that are modified, but not as part of the ASF Framework, the servicer must perform on an individual basis, an analysis of the borrower and the loan to demonstrate it is probable that the borrower will not meet the repayment obligation in the near term.
Such analysis provides sufficient evidence to demonstrate that the loan is in imminent or reasonably foreseeable default.
The SECs Office of the Chief Accountant issued a letter in July 2007 stating that it would not object to continuing off-balance sheet accounting treatment for these loans.
Prior to the acquisition of Countrywide on July 1, 2008, Countrywide began making fast-track loan modifications under Segment 2 of the ASF Framework in June 2008 and the off-balance sheet accounting treatment of QSPEs that hold those loans was not affected.
In addition, other workout activities relating to subprime ARMs including modifications (e. g. , interest rate reductions and capitalization of interest) and repayment plans were also made.
These initiatives have continued subsequent to the acquisition in an effort to work with all of our customers that are eligible and affected by loans that meet the requisite criteria.
These foreclosure prevention efforts will reduce foreclosures and the related losses providing a solution for customers and protecting investors.
As of December 31, 2009, the principal balance of beneficial interests issued by the QSPEs that hold subprime ARMs totaled $70.5 billion and the fair value of beneficial interests related to those QSPEs held by the Corporation totaled $9 million.
The following table presents a summary of loans in QSPEs that hold subprime ARMs as of December 31, 2009 as well as workout and other activity for the subprime loans by ASF categorization for 2009.
Prior to the acquisition of Countrywide on July 1, 2008, we did not originate or service significant subprime residential mortgage loans, nor did we hold a significant amount of beneficial interests in QSPEs of subprime residential mortgage loans.


| Year Ended December 31, | 2016 | Number of Simulations | Expected Volatility | Risk-Free Rate |


| Total Number ofShares (or Units)Purchased1 Average Price Paidper Share (or Unit)2 Total Number ofShares (or Units)Purchased as Part ofPublicly AnnouncedPlans or Programs3 Maximum Number (or Approximate Dollar Value)of Shares (or Units) that MayYet Be Purchased Under thePlans or Programs3 | October 1 - 31 | November 1 - 30 | December 1 - 31 | Total |


| As of and for the Year Ended December 31, 2018 | (dollars in millions) | Net interest income-1 | Noninterest income | Total revenue | Noninterest expense | Profit before provision for credit losses | Provision for credit losses | Income (loss) before income tax expense (benefit) | Income tax expense (benefit) | Net income | Loans and leases (period-end)(2) | Average Balances: | Total assets | Total loans and leases-2 | Deposits | Interest-earning assets | Key Performance Metrics: | Net interest margin | Efficiency ratio | Loans-to-deposits ratio (average balances)(3) | Return on average total tangible assets | September 30, | 2007 | (In millions) | Warranty liability, beginning of year | Warranties issued | Changes in liability for pre-existing warranties | Settlements made | Warranty liability, end of year |


| (In millions) 2014 Budget Percent of Total | North America E&P | International E&P | Oil Sands Mining | Segment total | Corporate and other | Total capital, investment and exploration spending budget |


Stockholders’ Equity and Stock-Based Compensation Stockholder Rights Agreement On November 20, 2013, the Company’s Board of Directors declared a dividend of one preferred share purchase right (a “Right”) for each outstanding share of common stock, par value $0.01 per share, of the Company, to purchase from the Company one ten-thousandth of a share of newly designated Series A Junior Participating Preferred Stock, par value $0.01 per share, of the Company (the “Preferred Stock”) at a price of $107.00 per one ten-thousandth of a share of Preferred Stock, subject to adjustment as provided in the Rights Agreement.
The dividend is payable to stockholders of record at the close of business on December 2, 2013 (the “Record Date”).
The description and terms of the Rights are set forth in a Rights Agreement, dated as of November 21, 2013, as the same may be amended from time to time (the “Rights Agreement”), between the Company and American Stock Transfer & Trust Company, LLC, as Rights Agent.
The Rights Agreement became effective on November 21, 2013 (the “Effective Date”).
Upon and following the Effective Date, Rights will be issued in respect of all outstanding shares of Common Stock on the Record Date, and for all shares of Common Stock issued after the Record Date and, subject to the terms described in the Rights Agreement, prior to the earliest of the Distribution Date (as defined in the Rights Agreement), the redemption of the Rights or the expiration of the Rights.
See table below for a reconciliation of acquisition/disposition related items:


ITEM 4.
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS There were no matters submitted to a vote of our security holders through solicitation of proxies or otherwise, during the fourth quarter of our fiscal year ended December 31, 2007.


Auction Rate Securities and Restricted Cash At February 28, 2009, and March 1, 2008, we had $314 million and $417 million, respectively, of auction rate securities (ARS) recorded at fair value within equity and other investments in our consolidated balance sheets.
The majority of our ARS portfolio is AAA/Aaarated and collateralized by student loans, which are guaranteed 95% to 100% by the U. S.  government.
See Note 3, Investments, in the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, in this Annual Report on Form 10-K for more information.
Due to the auction failures that began in mid-February 2008, we have been unable to liquidate many of our ARS.
The investment principal associated with our ARS subject to failed auctions will not be accessible until successful auctions occur, a buyer is found outside of the auction process, the issuers establish a different form of financing to replace these securities, or final payments come due according to the contractual maturities of the debt issues, which range from 8 to 40 years.
We intend to hold our ARS until we can recover the full principal amount through one of the means described above, and have the ability to do so based on our other sources of liquidity.
Our liquidity is also affected by restricted cash that is pledged as collateral or restricted to use for vendor payables, general liability insurance, workers compensation insurance and customer warranty and insurance programs.
Restricted cash was $487 million and $309 million at February 28, 2009, and March 1, 2008, respectively, and was included in other current assets.


| % of Total | $ Change  (In millions) | Institutional | Individual | International | Auto & Home | Corporate & Other | Total change, net of income tax |


| (Millions of Dollars) Con Edison(a) CECONY(a) | Aggregate fair value – net liabilities | Collateral posted | Additional collateral(b) (downgrade one level from current ratings) | Additional collateral(b) (downgrade to below investment grade from currentratings) |


| (Dollars in millions) Total Lessthan 1year 1-3years 3-5years After 5years | Long-term debt (including current portion) | Interest on debt | Pension and other postretirement cash requirements | Capital lease obligations | Operating lease obligations | Purchase obligations not recorded on the Consolidated Statements of Financial Position | Purchase obligations recorded on the Consolidated Statements of Financial Position | Total contractual obligations-1 |


Employee Stock Purchase Plan Under the 2003 Employee Stock Purchase Plan, we are authorized to issue up to 7,375,000 shares of common stock to our full-time employees, nearly all of whom are eligible to participate.
Under the terms of the Plan, employees can choose each year to have up to 20% of their annual compensation specified to purchase our common stock.
Share purchases in any calendar year are limited to the lesser of 1,000 shares or shares with a fair market value of $25,000.
The purchase price of the stock is 85% of the market price on the day prior to the purchase date.
Under the Plan we sold approximately 532,000, 725,000 and 444,000 shares to employees during the years ended September 30, 2009, September 30, 2008 and September 30, 2007, respectively.
The compensation cost is calculated as the value of the 15% discount from market value and was $1.3 million, $2.9 million and $2.1 million during the years ended September 30, 2009, September 30, 2008 and September 30, 2007, respectively.


| Date Altria Group, Inc. Altria Group, Inc. Peer Group S&P 500 | December 2011 | December 2012 | December 2013 | December 2014 | December 2015 | December 2016 |


| At December 31, | (Dollars in millions) | U.S. Reinsurance | International | Bermuda | Total | (Some amounts may not reconcile due to rounding.) |


| For the Years Ended | (In thousands) | Software development costs | Capitalized software costs | Capitalized costs related to share-based payments | Amortization of capitalized software costs | Total software development expense |


| Fiscal Years Ended January 31, | (Amounts in millions, except unit counts) | Net sales | Percentage change from comparable period | Calendar comparable sales increase | Operating income | Operating income as a percentage of net sales | Unit counts at period end | Retail square feet at period end |


| Year ended December 31,(in millions) 2012 2011 2010 | Repurchase liability at beginning of period | Realized losses(b) | Provision for repurchase losses(c) | Repurchase liability at end of period |


| Amount of Unrealized Gain (Loss) Recognized | Year Ended December 31, 2014 | Derivative | (In thousands) | Derivatives in fair value hedging relationships | Interest rate swap agreements: | Fixed rate long-term borrowings(a) | Derivatives not designated as hedging instruments | Trading: | Interest rate contracts(b) | Foreign exchange and other option and futures contracts(b) | Total |


(1)  Our SBO portfolio consists of home equity loans and lines that were originally serviced by others.
We now service a portion of this portfolio internally.
( 2) Excluded from the table above are loans held for sale totaling $281 million and $1.3 billion as of December 31, 2014 and 2013, respectively.
Loans held for sale as of December 31, 2013 primarily related to the Chicago Divestiture.
For further discussion, see Note 17 “Divestitures and Branch Assets and Liabilities Held for Sale” to our audited Consolidated Financial Statements in Part II, Item 8 — Financial Statements and Supplementary Data, included elsewhere in this report.
(3)  Mortgage loans serviced for others by our subsidiaries are not included above, and amounted to $17.9 billion and $18.7 billion at December 31, 2014 and 2013, respectively.
Our loans and leases are disclosed in portfolio segments and classes.
Our loan and lease portfolio segments are commercial and retail.
The classes of loans and leases are: commercial, commercial real estate, leases, residential mortgages, home equity loans, home equity lines of credit, home equity loans serviced by others, home equity lines of credit serviced by others, automobile, student, credit cards and other retail.
As of December 31, 2014, our loans and leases portfolio increased $7.6 billion, or 9%, to $93.4 billion compared to $85.9 billion as of December 31, 2013, reflecting growth in both retail and commercial.
Total commercial loans and leases of $43.2 billion grew $3.8 billion, or 10%, from $39.4 billion as of December 31, 2013.
Total retail loans of $50.2 billion increased $3.7 billion, or 8%, from $46.5 billion as of December 31, 2013, driven by a 35% increase in automobile loans reflecting both purchases associated with our flow purchase agreement and stronger originations.
Residential mortgages increased 22%, reflecting the benefit of purchases and our decision to retain more originations on balance sheet.
Results also reflected a reduction in home equity outstandings, including runoff in the serviced by others portfolio.
public debt and equity markets as well as our ability to sell trade accounts receivables, provide additional sources of short-term and long-term liquidity to fund current operations, debt maturities, and future investment opportunities.
Based on our current financial position and expected economic performance, we do not believe that our liquidity will be adversely impacted by an inability to access our sources of financing.


| Payments Due by Period | Total | (In millions) | Operating lease obligations | Purchase obligations | 2023 Notes * | Convertible Senior Notes | Contractual interest payments | Current income tax payable and Unrecognized tax benefits | Other long-term contractual obligationsu | Total |


| 2010 2009 | Financial Services Businesses | REVENUES | Premiums | Policy charges and fee income | Net investment income | Asset management fees and other income | Realized investment gains (losses), net | Other-than-temporary impairments on fixed maturity securities | Other-than-temporary impairments on fixed maturity securities transferred to Other Comprehensive Income | Other realized investment gains (losses), net | Total realized investment gains (losses), net | Total revenues | BENEFITS AND EXPENSES | Policyholders’ benefits | Interest credited to policyholders’ account balances | Dividends to policyholders | Amortization of deferred policy acquisition costs | General and administrative expenses | Total benefits and expenses | INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES AND EQUITY IN EARNINGS OF OPERATING JOINTVENTURES | Income tax expense (benefit) | INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE EQUITY IN EARNINGS OF OPERATING JOINT VENTURES | Equity in earnings of operating joint ventures, net of taxes | INCOME (LOSS) FROM CONTINUING OPERATIONS | Income (loss) from discontinued operations, net of taxes | NET INCOME (LOSS) | Less: Income (loss) attributable to noncontrolling interests | NET INCOME (LOSS) ATTRIBUTABLE TO PRUDENTIAL FINANCIAL, INC. |


| Years Ended December 31, | 2002 | (Dollars in thousands) | Current provision: | Federal | State | Deferred expense (benefit): | Federal | State | Income tax expense |


| Payments due by | (in millions) | Long-term debt (Note 6) | Operating leases (Note 10) | Data Processing Agreement | Obligations (Note 10) | Outsourcing Agreements (Note 10) | $1,626.4 |


Automation and Control Solutions sales in 2003 increased by 7 percent compared with 2002 due to favorable effects of foreign exchange of 5 percent and acquisitions, net of the disposition of our Consumer Products business, of 4 percent, partially offset by the impact of lower prices and volumes of 1 percent each.
Sales increased by 11 percent for our Automation and Control Products businesses as the favorable effects of foreign exchange and acquisitions, mainly Invensys Sensor Systems (Invensys), more than offset the impact of the disposition of our Consumer Products business and lower volumes.
Sales for our Process Solutions business increased by 4 percent due to the favorable effect of foreign exchange partially offset by lower unit volumes.
Sales for our Building Solutions business increased by 2 percent as the favorable effect of foreign exchange more than offset lower volumes due to continued softness in the non-residential construction market.
Automation and Control Solutions segment profit in 2004 increased by 6 percent compared with 2003 due to the favorable effect of higher sales volumes partially offset by increased investments in sales and marketing initiatives and higher research and development costs to support new product introductions.
Automation and Control Solutions segment profit in 2003 decreased by 2 percent compared with 2002 due mainly to the decline in higher-margin energy-retrofit and discretionary spot sales in our Building Solutions business, and increased research and development expense and investments in sales and marketing initiatives, mainly in our Automation and Control Products and Building Solutions businesses, respectively.
Segment profit was also adversely impacted in 2003 by pricing pressures mainly in our Automation and Control Products and Process Solutions businesses.
Trends which may impact Automation and Control Solutions operating results in 2005 include: ?
Extent, if any, of recovery in non-residential construction spending and capital spending on building and process automation.  ?
Consolidation in the fire and security industry may result in increased competition.


| 2009 2008 | December 31, (in millions) | Loans | Performing loans 90 days or more past due | Loans reported as trading assets | Loans | Nonaccrual loans | Loans reported as trading assets | Loans | Subtotal | All other performing loans | Loans reported as trading assets | Loans | Total loans | Long-term debt | Principal protected debt | Nonprincipal protected debt(a) | Total long-term debt | Long-term beneficial interests | Principal protected debt | Nonprincipal protected debt(a) | Total long-term beneficial interests |


| (Dollars in millions, shares in thousands) 2009 2008 2007 2006 2005 | FTE basis data | Net interest income | Total revenue, net of interest expense | Net interest yield | Efficiency ratio | Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity | Common shareholders’ equity | Common Equivalent Securities | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible common shareholders’ equity | Reconciliation of average shareholders’ equity to average tangible shareholders’ equity | Shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible shareholders’ equity | Reconciliation of year end common shareholders’ equity to year end tangible common shareholders’ equity | Common shareholders’ equity | Common Equivalent Securities | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible common shareholders’ equity | Reconciliation of year end shareholders’ equity to year end tangible shareholders’ equity | Shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible shareholders’ equity | Reconciliation of year end assets to year end tangible assets | Assets | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible assets | Reconciliation of year end common shares outstanding to year end tangible common shares outstanding | Common shares outstanding | Assumed conversion of common equivalent shares | Tangible common shares outstanding |


As noted in the table above, Citigroup was “well capitalized” under the federal bank regulatory agency definitions at year end for both 2009 and 2008.


| Years ended December 31, | 2017 | Stock-Settled Awards: | Awards granted | Weighted-average grant-date fair value (per award) | Total fair value of vested awards distributed | Cash-Settled Awards: | Awards granted | Weighted-average grant-date fair value (per award) | Total fair value of vested awards distributed | Performance-Based Awards: | Awards granted | Weighted-average grant-date fair value (per award) | Total fair value of vested awards distributed |


| (In millions) Level 1 Level 2 Level 3 Total | Derivative instruments: | Commodity | Interest rate | Foreign currency | Total derivative instruments | Other assets | Total at fair value | (In millions) | Beginning balance | Total realized and unrealized losses: | Included in net income | Included in other comprehensive income | Purchases, sales, issuances and settlements, net | Ending balance |


Item 13.
Certain Relationships and Related Transactions The information required by Item 13 appearing under the caption Ratification of the Appointment of Independent Registered Public Accounting Firm, in the companys proxy statement to be filed pursuant to Regulation 14A within 120 days after December 31, 2006, is incorporated herein by reference.


| Net realized/unrealized gains (losses) included in Transfers in and/or Purchases, issuances Unrealized gains | December 31, | In millions of dollars | Loans | Mortgage servicing rights | Other financial assets measured on a | recurring basis | Liabilities | Interest-bearing deposits | Federal funds purchased and securities | loaned or sold under agreements | to repurchase | Trading account liabilities | Securities sold, not yet purchased | Short-term borrowings | Long-term debt | Other financial liabilities measured on a | recurring basis |


| Year Ended December 31, | 2011 | (In $ millions) | Employee termination benefits | Ticona Kelsterbach plant relocation | Plumbing actions | Insurance recoveries | Asset impairments | Plant/office closures | Commercial disputes | Other | Total |


| Actual Capital Regulatory CapitalRequirements | December 31,2011 | (in millions) | RiverSource Life-1(2) | RiverSource Life of NY-1(2) | IDS Property Casualty-1(3) | Ameriprise Insurance Company-1(3) | ACC-4(5) | Threadneedle-6 | Ameriprise Bank, FSB-7 | AFSI-3(4) | Ameriprise Captive Insurance Company-3 | Ameriprise Trust Company-3 | AEIS-3(4) | Securities America, Inc.-3(4)(8) | RiverSource Distributors, Inc.-3(4) | Columbia Management Investment Distributors, Inc.-3(4) |


| 30-59 Days Past Due-1 60-89 Days Past Due-1 90 Days orMorePast Due-2 Total PastDue 30 Daysor More Total Current or Less Than 30 Days Past Due-3 PurchasedCredit-impaired-4 Loans Accounted for Under the Fair Value Option TotalOutstandings | (Dollars in millions) | Consumer real estate | Core portfolio | Residential mortgage | Home equity | Non-core portfolio | Residential mortgage-5 | Home equity | Credit card and other consumer | U.S. credit card | Direct/Indirect consumer-6 | Other consumer-7 | Total consumer | Consumer loans accounted for under the fair value option-8 | Total consumer loans and leases | Commercial | U.S. commercial | Non-U.S. commercial | Commercial real estate-9 | Commercial lease financing | U.S. small business commercial | Total commercial | Commercial loans accounted for under the fair value option-8 | Total commercial loans and leases | Total loans and leases-10 | Percentage of outstandings |


| Ratings profile of VIE assets of the multi-seller conduits(a) Commercial paper funded Wt. avg. expected | December 31, 2008 | (in billions) | Asset types: | Credit card | Vehicle loans and leases | Trade receivables | Student loans | Commercial | Residential mortgage | Capital commitments | Rental car finance | Equipment loans and leases | Floorplan– vehicle | Floorplan– other | Consumer | Other | Total |


| Year Ended December 31 2014 2013 | (In millions) | Revenues: | Other revenue, primarily operating | Total | Expenses: | Impairment of goodwill | Other operating expenses | Impairment of natural gas and oil properties | Operating | Interest | Total | Loss before income tax | Income tax benefit | Results of discontinued operations, net of income tax | Impairment loss, net of tax benefit of $62 | Loss from discontinued operations | Year Ended December 31 | (In millions) | Revenues: | Net investment income | Investment gains | Other revenues | Total | Expenses: | Insurance claims and policyholders’ benefits | Other operating expenses | Total | Income before income tax | Income tax expense | Results of discontinued operations, net of income tax | Loss on sale, net of tax benefit of $40 | Amounts attributable to noncontrolling interests | Income (loss) from discontinued operations |


PART II CONTINGENCIES Litigation Accruals for Probable Losses We are exposed to litigation contingencies that, if realized, could have a material negative impact on our financial condition, results of operations and cash flows.
Although, we deny liability in all currently threatened or pending litigation proceedings in which we are or may be a party and believe we have valid bases to contest all claims made against us, we have recorded a litigation contingency accrual for our reasonable estimate of probable loss for pending and threatened litigation proceedings, in aggregate, in millions, as follows:


PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 4.
INVESTMENTS (continued) Non-performing loans include those loans for which it is probable that amounts due according to the contractual terms of the loan agreement will not all be collected.
Non-performing commercial mortgage and other loans identified in managements specific review of probable loan losses and the related allowance for losses at December 31, 2009 are as follows:


| Balance, December 31, 2002 $450,697,000 | Additions during period—depreciation and amortization expense | Deductions during period—disposition and retirements of property | Balance, December 31, 2003 | Additions during period—depreciation and amortization expense | Deductions during period—disposition and retirements of property | Balance, December 31, 2004 | Additions during period—depreciation and amortization expense | Deductions during period—disposition and retirements of property | Balance, December 31, 2005 |


We conduct business in the following countries that hold 10 percent or more of our total consolidated Property, plant and equipment, net (in millions):


| Years Ended December 31, | (Dollars in thousands) | Reinsurance receivables and premium receivables |


| In millions of dollars December 31, 2010 December 31, 2009 | Carrying amount reported on the Consolidated Balance Sheet | Aggregate fair value in excess of unpaid principal balance | Balance of non-accrual loans or loans more than 90 days past due | Aggregate unpaid principal balance in excess of fair value for non-accrual loans or loans more than 90 days past due |


Our non-operating investment activity resulted in net losses of $12.7 million in 2009 and $52.3 million in 2008.
The improvement of nearly $40 million is primarily attributable to a reduction in the other than temporary impairments recognized on our investments in sponsored mutual funds in 2009 versus 2008.
The following table details our related mutual fund investment gains and losses (in millions) during the past two years.


| (Dollars in thousands) Carrying Amount Fair Value Unfunded Commitments | Non-marketable securities (fair value accounting): | Venture capital and private equity fund investments -1 | Non-marketable securities (equity method accounting): | Other investments -2 | Non-marketable securities (cost method accounting): | Venture capital and private equity fund investments -3 | Total |


| 2010 2009 2008 | (in millions) | Total cash provided by (used in): | Operating activities | Investing activities | Financing activities | Effect of exchange rate changes on cash and cash equivalents | (Decrease) increase in cash and cash equivalents |


| In millions 2016 2015 2014 | Net Sales | Operating Profit (Loss) | Asia Packaging restructuring and impairment | Asia Packaging goodwill impairment | Operating Profit Before Special Items |


Discontinued Operations During the second quarter of 2012, the Board of Directors authorized the sale of our Homecare business, which had previously been reported as part of the Merchant Gases operating segment.
Interest Expense
2014 vs.  2013 Interest incurred decreased $9.5.
The decrease was primarily due to a lower average interest rate on the debt portfolio which reduced interest by $13, partially offset by a higher average debt balance which increased interest by $6.
The change in capitalized interest was driven by a higher carrying value in construction in progress.2013 vs.  2012 Interest incurred increased $13.7.
The increase was driven primarily by a higher average debt balance for $41, partially offset by a lower average interest rate on the debt portfolio of $24.
The change in capitalized interest was driven by a decrease in project spending and a lower average interest rate.


| 2010 2009 2008 | Income from cash and cash investments | Other interest income | Income from financial investments, net (Note E) | Other items, net | Total other, net |


| Range-1 | Weighted- average | Prepayment speed-3 | Loss severity-4 | Life default rate-5 |


| (in millions) Premiums and Other Considerations Net Investment Income Net Realized Capital Gains (Losses) Total Revenues Operating Income | 2007 | Life insurance | Personal accident | Group products | Individual fixed annuities | Individual variable annuities | Total | 2006 | Life insurance(a) | Personal accident | Group products | Individual fixed annuities | Individual variable annuities | Total | 2005 | Life insurance | Personal accident | Group products | Individual fixed annuities | Individual variable annuities | Total | Percentage Increase/(Decrease) 2007 vs. 2006: | Life insurance | Personal accident | Group products | Individual fixed annuities | Individual variable annuities | Total | Percentage Increase/(Decrease) 2006 vs. 2005: | Life insurance | Personal accident | Group products | Individual fixed annuities | Individual variable annuities | Total |


D. R.  HORTON, INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 101 NOTE K – COMMITMENTS AND CONTINGENCIES Warranty Claims The Company provides its homebuyers with warranties for defects in structural elements, mechanical systems and other construction components of the home.
Warranty liabilities are established by charging cost of sales for each home delivered based on management’s estimate of expected warranty-related costs and by accruing for existing warranty claims.
The Company’s warranty liability is based upon historical warranty cost experience in each market in which it operates and is adjusted to reflect qualitative risks associated with the types of homes built and the geographic areas in which they are built.
The estimation of these costs is subject to a high degree of variability due to uncertainties related to these factors.
Due to the high degree of judgment required in establishing the liability for warranty claims, actual future costs could differ significantly from current estimated amounts, and it is not possible for the Company to make a reasonable estimate of the possible loss or range of loss in excess of its warranty liability.
Changes in the Company’s warranty liability during fiscal 2018 and 2017 were as follows:


In 2011, cash from operations decreased primarily due to lower earnings.
The decrease in 2010 operating cash (versus 2009) was due to the change in working capital levels (as shown in the chart above).
Cash from operations in 2009 benefitted from a $186 million reduction in working capital that occurred as a result of the economy-induced sales contraction.
The following table presents key working capital measures at the end of the past two years.
(1) The accounts receivable ratio represents the days of sales outstanding calculated as: ending net accounts receivable ÷ (net sales ÷ number of days in the year).
(2) The inventory ratio represents days of inventory on hand calculated as: ending net inventory ÷ (cost of goods sold ÷ number of days in the year).
(3) The accounts payable ratio represents the days of payables outstanding calculated as: ending accounts payable ÷ (cost of goods sold ÷ number of days in the year).


| Preferred Stock Common Stock Paid-in Capital Retained Earnings Employee Stock Trust Accumulated Other Comprehensive Income (Loss) Common Stock Held in Treasury at Cost Common Stock Issued to Employee Trust Non- redeemable Non- controlling Interests Total Equity | BALANCE AT DECEMBER 31, 2011 | Net income applicable to Morgan Stanley | Net income applicable to nonredeemable noncontrolling interests | Dividends | Shares issued under employee plans and related tax effects | Repurchases of common stock | Net change in cash flow hedges | Pension, postretirement and other related adjustments | Foreign currency translation adjustments | Change in net unrealized gains on securities available for sale | Purchase of additional stake in the Wealth Management Joint Venture | Reclassification to redeemable noncontrolling interests | Other net increases | BALANCE AT DECEMBER 31, 2012 | Quoted Prices in Active Markets for Identical Assets (Level 1) | (dollars in millions) | Securities sold under agreements to repurchase | Other secured financings | Long-term borrowings | Total liabilities measured at fair value |


| Gross  Goodwill At  December 31, 2010 Accumulated Impairment Losses Net  Goodwill At  December 31, 2010 Additions(A) Discontinued Operations(B) Pre-tax Impairment Charge Other(C) Net  Goodwill At  December 31, 2011 | Cabinets and Related Products | Plumbing Products | Installation and Other Services | Decorative Architectural Products | Other Specialty Products | Total |


| Cumulative Total Return | 12/04 | Packaging Corporation of America | S & P 500 | S & P Midcap 400 | Peer Group |


Table 11 NONACCRETABLE BALANCE  PRINCIPAL


| Year Ended December 31, | 2015 | Other revenue special item, net -1 | Mainline operating special items, net -2 | Regional operating special items, net -3 | Nonoperating special items, net -4 | Reorganization items, net -5 | Income tax special items, net -6 | Total |


| Years Ended December 31, | 2012 | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Premiums | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest credited to fixed accounts | Benefits, claims, losses and settlement expenses | Amortization of deferred acquisition costs | General and administrative expense | Total expenses | Operating earnings |


(c) Effective January 1, 2019, these assets were transferred from the Products Pipelines business segment to the Natural Gas Pipelines business segment.
(d) Effective January 1, 2019, a small number of terminals were transferred between the Products Pipelines and Terminals business segments.
Competition Our Products Pipelines’ pipeline operations compete against proprietary pipelines owned and operated by major oil companies, other independent products pipelines, trucking and marine transportation firms (for short-haul movements of products) and railcars.
Our Products Pipelines’ terminal operations compete with proprietary terminals owned and operated by major oil companies and other independent terminal operators, and our transmix operations compete with refineries owned by major oil companies and independent transmix facilities.
Terminals Our Terminals business segment includes the operations of our refined petroleum product, crude oil, chemical, ethanol and other liquid terminal facilities (other than those included in the Products Pipelines business segment) and all of our petroleum coke, metal and ores facilities.
Our terminals are located throughout the U. S.  and in portions of Canada.
We believe the location of our facilities and our ability to provide flexibility to customers help attract new and retain existing customers at our terminals and provide expansion opportunities.
We often classify our terminal operations based on the handling of either liquids or dry-bulk material products.
In addition, Terminals’ marine operations include Jones Act-qualified product tankers that provide marine transportation of crude oil, condensate and refined petroleum products between U. S.  ports.
The following summarizes our Terminals business segment assets, as of December 31, 2018:


| Six Months Nine Months Twelve Months Fifteen Months | December 31, 2012Dollars in millions | Permanent Modifications | Home Equity | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | Residential Mortgages | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | Non-Prime Mortgages | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | Residential Construction | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 | Temporary Modifications | Home Equity | Second Quarter 2012 | First Quarter 2012 | Fourth Quarter 2011 | Third Quarter 2011 | Second Quarter 2011 |


| 12/31/2006 12/31/2007 12/31/2008 12/31/2009 12/31/2010 12/31/2011 | Ball Corporation | DJ US Containers & Packaging | S&P 500 | For the Year Ended December 31, | (Millions of Dollars, except per share amounts) | Operating revenues | Energy costs | Operating income | Net income | Total assets (f)(g) | Long-term debt (f) | Total equity | Net Income per common share – basic | Net Income per common share – diluted | Dividends declared per common share | Book value per share | Average common shares outstanding(millions) | Stock price low | Stock price high |


| 2007 Compared to 2006  Increase (Decrease) Due To 2006 Compared to 2005 Increase (Decrease) Due To | Volume | Interest-earning banking assets: | Loans, net-1 | Margin receivables | Mortgage-backed and related available-for-sale securities | Available-for-sale investment securities | Trading securities | Cash and cash equivalents | Stock borrow and other | Total interest-earning banking assets-2 | Interest-bearing banking liabilities: | Retail deposits | Brokered certificates of deposit | Customer payables | Repurchase agreements and other borrowings | FHLB advances | Stock loan and other | Total interest-bearing banking liabilities | Change in net operating interest income |


Closed Block On April 7, 2000 (the Demutualization Date), MLIC converted from a mutual life insurance company to a stock life insurance company and became a wholly-owned subsidiary of MetLife, Inc.
The conversion was pursuant to an order by the New York Superintendent of Insurance (the Superintendent) approving MLICs plan of reorganization, as amended (the Plan).
On the Demutualization Date, MLIC established a closed block for the benefit of holders of certain individual life insurance policies of MLIC.
Assets have been allocated to the closed block in an amount that has been determined to produce cash flows which, together with anticipated revenues from the policies included in the closed block, are reasonably expected to be sufficient to support obligations and liabilities relating to these policies, including, but not limited to, provisions for the payment of claims and certain expenses and taxes, and to provide for the continuation of policyholder dividend scales in effect for 1999, if the experience underlying such dividend scales continues, and for appropriate adjustments in such scales if the experience changes.
At least annually, the Company compares actual and projected experience against the experience assumed in the then-current dividend scales.
Dividend scales are adjusted periodically to give effect to changes in experience.
The closed block assets, the cash flows generated by the closed block assets and the anticipated revenues from the policies in the closed block will benefit only the holders of the policies in the closed block.
To the extent that, over time, cash flows from the assets allocated to the closed block and claims and other experience related to the closed block are, in the aggregate, more or less favorable than what was assumed when the closed block was established, total dividends paid to closed block policyholders in the future may be greater than or less than the total dividends that would have been paid to these policyholders if the policyholder dividend scales in effect for 1999 had been continued.
Any cash flows in excess of amounts assumed will be available for distribution over time to closed block policyholders and will not be available to stockholders.
If the closed block has insufficient funds to make guaranteed policy benefit payments, such payments will be made from assets outside of the closed block.
The closed block will continue in effect as long as any policy in the closed block remains inforce.
The expected life of the closed block is over 100 years.
In the normal course of business, the Company is involved in various lawsuits and claims.
In addition, the Company is a party to a number of proceedings before federal and state regulatory agencies relating to environmental remediation.
Also, the Company, along with many other companies, has been named as a potentially responsible party (PRP) in a number of administrative proceedings for the remediation of various waste sites, including 15 active Superfund sites.
Current laws potentially impose joint and several liabilities upon each PRP.
In assessing its potential liability at these sites, the Company has considered the following: whether responsibility is being disputed, the terms of existing agreements, experience at similar sites, and the Companys volumetric contribution at these sites.
The Companys policy is to accrue environmental investigatory and remediation costs for identified sites when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated.
The amount of liability recorded is based on an evaluation of currently available facts with respect to each individual site and includes such factors as existing technology, presently enacted laws and regulations, and prior experience in remediation of contaminated sites.
The liabilities recorded do not take into account any claims for recoveries from insurance or third parties.
As assessments and remediation progress at individual sites, the amounts recorded are reviewed periodically and adjusted to reflect additional technical and legal information that becomes available.
As of December 30, 2006 and December 31, 2005, the Company had reserves of $30.5 million and $21.3 million, respectively, for remediation activities associated with Company-owned properties as well as for Superfund sites, for losses that are probable and estimable.
Of the 2006 amount, $9.2 million is classified as current and $21.3 million as long-term.
The range of environmental remediation costs that is reasonably possible is $24.6 million to $61.2 million which is subject to change in the near term.
The Company may be liable for environmental remediation of sites it no longer owns.
Liabilities have been recorded on those sites in accordance with policy.
The environmental liability for certain sites that have cash payments that are fixed or reliably determinable have been discounted using a rate of 5.0%.
The discounted and undiscounted amount of the liability relative to these sites is $5.1 million and $8.1 million, respectively, as of December 30, 2006 and $5.0 million and $8.1 million, respectively, as of December 31, 2005.
The payments relative to these sites are expected to be $1.0 million in 2007, $1.7 million in 2008, $1.0 million in 2009, $0.3 million in 2010, $0.3 million in 2011 and $3.8 million thereafter.
The amount recorded for identified contingent liabilities is based on estimates.
Amounts recorded are reviewed periodically and adjusted to reflect additional technical and legal information that becomes available.
Actual costs to be incurred in future periods may vary from the estimates, given the inherent uncertainties in evaluating certain exposures.
Subject to the imprecision in estimating future contingent liability costs, the Company does not expect that any sum it may have to pay in connection with these matters in excess of the amounts recorded will have a materially adverse effect on its financial position, results of operations or liquidity T.  DISCONTINUED OPERATIONS During 2006, the Company disposed of two small businesses, the American appliance hinge and U. K.  decorator tools businesses, for $1.9 million in cash.
The related after-tax loss amounted to $1.1 million.
On December 4, 2004, the Company sold its home dÃ©cor business for $87 million in a cash sale transaction, resulting in an after-tax gain of $24 million.
On March 2, 2004, the Company sold its residential entry door business for $161 million in cash, and recognized a $95 million after-tax gain thereon.
Also in 2004, the Company sold Friess, its German paint roller business for $6.4 million, and a loss of $3.6 million was recognized thereon.
In accordance with the provisions of SFAS No.144, Accounting for the Impairment or Disposal of Long-Lived Assets, the results of operations of the appliance hinge, U. K.  decorator tools, home dÃ©cor, residential entry door, and Friess businesses for the current and prior periods have been reported as discontinued operations.
In addition, the assets and liabilities of the appliance hinge and U. K.  decorator tools businesses were classified as held for sale in the Consolidated Balance Sheet at December 31, 2005.
The divestures of these businesses were made pursuant to the Companys growth strategy which entails a reduction of risk associated with certain large customer concentrations and better utilization of resources to increase shareowner value.
The American appliance hinge business supplied hardware used to manufacture household appliances.
The U. K.  decorator tools business manufactured brushes, rollers and other paint sundries supplied to various retailers.
The home dÃ©cor business supplied mirrored closet doors, closet organization products and wall dÃ©cor products primarily through large retailers in North America and Europe.
The residential entry door business manufactured and distributed steel and fiberglass entry doors and components throughout North America.
The Friess business manufactured paint rollers in Germany and sold them into the private label market in continental Europe.
Operating results of the U. K.  decorator tools, home dÃ©cor, residential entry door, and Friess businesses, which were formerly included in the Consumer Products segment, and the appliance hinge business, which was formerly included in the Security Solutions segment, are summarized as follows:


(1) Amount represents AUM acquired in the First Reserve Transaction.
occurs, at which time they are recorded as adjustments to interest expense over the term of the related notes.
At December 31, 2005, AOCI included a deferred loss of $4.1 million, net of tax, related to an interest rate swap.
This amount is being reclassified into earnings as adjustments to interest expense over the term of the Companys 51?4% senior notes due 2014.
At December 31, 2004, the amount of deferred loss included in AOCI was $4.6 million, net of tax.
The amounts amortized to interest expense were $0.8 million and $0.5 million for the years ending December 31, 2005 and 2004, respectively.


Legal Claims and Insurance The Company is named as a defendant in various claims, complaints and other legal actions in the ordinary course of business.
At any point in time, the Company is managing several hundred individual claims related to construction defect matters, personal injury claims, employment matters, land development issues, contract disputes and other matters.
The Company has established reserves for these contingencies based on the estimated costs of pending claims and the estimated costs of anticipated future claims related to previously closed homes.
The estimated liabilities for these contingencies were $408.1 million and $420.6 million at September 30, 2018 and 2017, respectively, and are included in accrued expenses and other liabilities in the consolidated balance sheets.
Approximately 99% and 98% of these reserves related to construction defect matters at September 30, 2018 and 2017, respectively.
Expenses related to the Company’s legal contingencies were $41.0 million, $87.8 million and $49.6 million in fiscal 2018, 2017 and 2016, respectively.
The Company’s reserves for construction defect claims include the estimated costs of both known claims and anticipated future claims.
As of September 30, 2018, no individual existing claim was material to the Company’s financial statements.
The Company has closed a significant number of homes during recent years and may be subject to future construction defect claims on these homes.
Although regulations vary from state to state, construction defect issues can generally be reported for up to ten years after the home has closed in many states in which the Company operates.
Historical data and trends regarding the frequency of claims incurred and the costs to resolve claims relative to the types of products and markets where the Company operates are used to estimate the construction defect liabilities for both existing and anticipated future claims.
These estimates are subject to ongoing revision as the circumstances of individual pending claims and historical data and trends change.
Adjustments to estimated reserves are recorded in the accounting period in which the change in estimate occurs.


| Total Acquisition Date Fair Value (in thousands) | Cash consideration | Contingent consideration | Total consideration transferred | As of December 31, 2008 | ($ in millions) | Cash and short-term positions easily convertible to cash available same day/next day | Other highly liquid investments-1 | Other liquid investments-2 | Total liquid | Percent of total consolidated cash and investments |


| 2017 2016 2015 | Outstanding, beginning of year | Issued from treasury | Returned to treasury | Outstanding, end of year | Shares subject to the forward share purchase contract | Outstanding, less shares subject to the forward share purchase contract | 2017 | Employee stock purchase plan | Other stock-based compensation plans | Total shares reserved |


| Amount of gain (loss) recognized in net income on derivatives for the year ended December 31, | Derivatives not designated as hedging instruments | (in millions) | Interest rate contracts | Foreign exchange contracts | Equity contracts | Credit contracts | Other contracts -1 | Total |


| Accounts receivable $94,506 | Other current assets | Identifiable intangibles | Goodwill | Other assets | Total assets acquired | Deferred revenue | Other current liabilities | Long-term deferred tax liability | Other liabilities | Net assets acquired |


(2) Ratios are calculated as allowance for loan and lease losses as a percentage of loans and leases outstanding excluding loans measured in accordance with SFAS 159 for each loan and lease category.
Loans measured at fair value include commercial  domestic loans of $3.5 billion and $3.5 billion, commercial-foreign loans of $1.7 billion and $790 million, and commercial real estate loans of $203 million and $304 million at December 31, 2008 and 2007.
(3) Allowance for loan and leases losses at December 31, 2008 includes the benefit of amounts expected to be reimbursable under cash collateralized synthetic securitizations.
Excluding these benefits the allowance to ending loans would be 0.69 percent.
See Residential Mortgage beginning on page 63 for more information.
(4) Includes allowance for small business commercial  domestic loans of $2.4 billion and $1.4 billion at December 31, 2008 and 2007.
(5) Includes allowance for loan and lease losses for impaired commercial loans of $691 million and $123 million at December 31, 2008 and 2007.  n/a = not applicable Market Risk Management Market risk is the risk that values of assets and liabilities or revenues will be adversely affected by changes in market conditions such as market movements.
This risk is inherent in the financial instruments associated with our operations and/or activities including loans, deposits, securities, short-term borrowings, long-term debt, trading account assets and liabilities, and derivatives.
Market-sensitive assets and liabilities are generated through loans and deposits associated with our traditional banking business, customer and proprietary trading operations, ALM process, credit risk mitigation activities and mortgage banking activities.
In the event of market volatility, factors such as underlying market movements and liquidity have an impact on the results of the Corporation.
Our traditional banking loan and deposit products are nontrading positions and are reported at amortized cost for assets or the amount owed for liabilities (historical cost).
GAAP requires a historical cost view of traditional banking assets and liabilities.
However, these positions are still subject to changes in economic value based on varying market conditions, primarily changes in the levels of interest rates.
The risk of adverse changes in the economic value of our nontrading positions is managed through our ALM activities.
We have elected to fair value certain loan and deposit products in accordance with SFAS 159.
For further information on fair value of certain financial assets and liabilities, see Note 19  Fair Value Disclosures to the Consolidated Financial Statements.
Our trading positions are reported at fair value with changes currently reflected in income.
Trading positions are subject to various risk factors, which include exposures to interest rates and foreign exchange rates, as well as mortgage, equity, commodity, issuer and market liquidity risk factors.
We seek to mitigate these risk exposures by using techniques that encompass a variety of financial instruments in both the cash and derivatives markets.
The following discusses the key risk components along with respective risk mitigation techniques.
Interest Rate Risk Interest rate risk represents exposures to instruments whose values vary with the level or volatility of interest rates.
These instruments include, but are not limited to, loans, debt securities, certain trading-related assets and liabilities, deposits, borrowings and derivative instruments.
Hedging instruments used to mitigate these risks include related derivatives such as options, futures, forwards and swaps.
Foreign Exchange Risk Foreign exchange risk represents exposures to changes in the values of current holdings and future cash flows denominated in other currencies.
The types of instruments exposed to this risk include investments in foreign subsidiaries, foreign currency-denominated loans and securities, future cash flows in foreign currencies arising from foreign exchange transactions, foreign currency-denominated debt and various foreign exchange derivative instruments whose values fluctuate with changes in the level or volatility of currency exchange rates or foreign interest rates.
Hedging instruments used to mitigate this risk include foreign exchange options, currency swaps, futures, forwards, foreign currency denominated debt and deposits.
° Level 3 Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.
This hierarchy requires the Company to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value.
The Company determines the fair value of structured liabilities (where performance is linked to structured interest rates, inflation or currency risks) using the London InterBank Offer Rate (LIBOR) swap curve and forward interest and exchange rates at period end.
Such instruments are classified as Level 2 based on the observability of significant inputs to the model.
The Company does not have any instruments classified as Level 1 or Level 3, other than those included in pension asset trusts included in Note 14.
These valuations take into consideration the Companys credit risk and its counterparties credit risk.
The estimated change in the fair value of these instruments due to such changes in its own credit risk (or instrumentspecific credit risk) was immaterial as of December 31, 2016.
The amounts recorded in the balance sheet (carrying amount) and the estimated fair values of financial instruments at December 31 consisted of the following:


| Allowance for doubtful accounts receivable: Balance atBeginningof Period Charges toExpenses Deductions Balance atEnd ofPeriod | January 3, 2015 | January 2, 2016 | December 31, 2016 |


| A.M. Best Company, Inc. Standard & Poor's Ratings Services Moody's Investors Service Fitch Ratings Ltd. | Financial Strength Ratings | RiverSource Life | IDS Property Casualty Insurance Company | Credit Ratings | Ameriprise Financial, Inc. |


Discontinued Operations The Company previously operated Boston Market in the U. S. , which it sold in August 2007.
As a result of the disposal, Boston Markets results of operations and transaction gain are reflected as discontinued operations.
In connection with the sale, the Company received proceeds of approximately $250 million and recorded a gain of $68.6 million after tax.
In addition, Boston Markets net loss for 2007 was $8.5 million.
Boston Markets results of operations for 2007 (exclusive of the transaction gains), which previously were included in Other Countries & Corporate, consisted of $444.1 million of revenues and a pretax loss of $17.0 million.
Latam Transaction In August 2007, the Company completed the sale of its businesses in Brazil, Argentina, Mexico, Puerto Rico, Venezuela and 13 other countries in Latin America and the Caribbean, which totaled 1,571 restaurants, to a developmental licensee organization.
The Company refers to these markets as Latam.
Based on approval by the Companys Board of Directors on April 17, 2007, the Company concluded Latam was held for sale as of that date in accordance with guidance on the impairment or disposal of long-lived assets.
As a result, the Company recorded an impairment charge of $1.7 billion in 2007, substantially all of which was noncash.
The total charges for the full year included $895.8 million for the difference between the net book value of the Latam business and approximately $675 million in cash proceeds received.
This loss in value was primarily due to a historically difficult economic environment coupled with volatility experienced in many of the markets included in this transaction.
The charges also included historical foreign currency translation losses of $769.5 million recorded in shareholders equity.
The Company recorded a tax benefit of $62.0 million in connection with this transaction.
The tax benefit was minimal in 2007 due to the Companys inability to utilize most of the capital losses generated by this transaction.
As a result of meeting the held for sale criteria, the Company ceased recording depreciation expense with respect to Latam effective April 17, 2007.
In connection with the sale, the Company agreed to indemnify the buyers for certain tax and other claims, certain of which are reflected on McDonalds Consolidated balance sheet (2009: other long-term liabilities$71.8 million; accrued payroll and other liabilities$25.3 million; 2008: other long-term liabilities$141.8 million).
The change in the total balance was primarily a result of the resolution of certain of these liabilities as well as the impact of foreign currency translation.
The Company mitigates the currency impact to income of these foreign currency denominated liabilities through the use of forward foreign exchange agreements.
The buyers of the Companys operations in Latam entered into a 20-year master franchise agreement that requires the buyers, among other obligations to (i) pay monthly royalties commencing at a rate of approximately 5% of gross sales of the restaurants in these markets, substantially consistent with market
Changes in our performance retention awards during 2009 were as follows:


| 2010 2009 | (In thousands) | Balance as of January 1 | Increases related to prior years’ tax positions | Increases related to current year tax positions | Settlements with taxing authorities | Expiration of the statute of limitations | Balance at December 31 |


| As of and for the Year Ended December 31, | (dollars in millions) | Net interest income | Noninterest income | Total revenue | Noninterest expense | Profit before provision for credit losses | Provision for credit losses | Income before income tax expense | Income tax expense | Net income | Loans and leases and loans (year-end)(1) | Average Balances: | Total assets | Total loans and leases-1 | Deposits | Interest-earning assets | Key Performance Metrics: | Net interest margin | Efficiency ratio | Loans-to-deposits ratio (average balances)(2) | Return on average total tangible assets |


| December 31, (in millions) 2009 2008 | Outstanding balance(a) | Carrying amount |


| December 31, | 2017 | (in thousands) | Consolidated Balance Sheet Data: | Cash, cash equivalents and marketable securities | Working capital | Total assets | Total indebtedness-1 | Total deferred revenue | Total stockholders’ equity |


| Year ended December 31, | 2005 | (in millions) | New annualized premiums: | On an actual exchange rate basis: | International Insurance, excluding Gibraltar Life | Gibraltar Life | Total | On a constant exchange rate basis: | International Insurance, excluding Gibraltar Life | Gibraltar Life | Total |


Drilling ActivityThe results of crude oil and natural gas wells drilled and completed for each of the last three years were as follows:
(1) Does not include wells drilled but not yet completed.
A productive well is an exploratory or a development well that is not a dry well.
A dry well (hole) is an exploratory or a development well found to be incapable of producing either oil or gas in sufficient quantities to justify completion as an oil or gas well.
An exploratory well is a well drilled to find and produce crude oil or natural gas in an unproved area, to find a new reservoir in a field previously found to be productive of crude oil or natural gas in another reservoir, or to extend a known reservoir.
A development well, for purposes of the table above and as defined in the rules and regulations of the SEC, is a well drilled within the proved area of a crude oil or natural gas reservoir to the depth of a stratigraphic horizon known to be productive.
The number of wells drilled refers to the number of wells completed at any time during the respective year, regardless of when drilling was initiated.
Completion refers to the installation of permanent equipment for the production of crude oil or natural gas, or in the case of a dry hole, to the reporting of abandonment to the appropriate agency.
In addition to the wells drilled and completed during 2007 included in the table above, at December 31, 2007, we were drilling or completing 2 gross (1.0 net) development wells offshore US, 223 gross (192.3 net) development wells and 4 gross (3.3 net) exploratory wells onshore US and one gross (0.1 net) development well in Argentina.
Marketing ActivitiesWe seek opportunities to enhance the value of our US natural gas production by marketing directly to end-users and aggregating natural gas to be sold to natural gas marketers and pipelines.
We also engage in the purchase and sale of third-party crude oil and natural gas production.
Such third-party production may be purchased from non-operators who own working interests in our wells or from other producers properties in which we own no interest.
Natural gas produced in the US is sold predominately under short-term or long-term contracts at market-based prices.
In Equatorial Guinea and Israel, we sell natural gas to end-users under long-term contracts at negotiated prices.
During 2007, approximately 12% of natural gas sales were made pursuant to long-term contracts.
Crude oil and condensate produced in the US and foreign locations is generally sold under short-term contracts at market-based prices adjusted for location and quality.
In China, we sell crude oil into the local market under a longterm contract at market-based prices.
Crude oil and condensate are distributed through pipelines and by trucks or tankers to gatherers, transportation companies and refineries.


| 2016 $95.3 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total |


| (in millions) 2009 2008 2007 | Additions to property, plant and equipment | Change in capital accruals | Discontinued operations | Capital expenditures |


| 2006 2005 2004 | Weighted average fair value of options granted | Expected volatility | Distribution yield | Expected life of options in years | Risk-free interest rate |


Oil Sands Mining The Oil Sands Mining segment produces and sells various qualities of synthetic crude oil.
Output mix can be impacted by operational problems or planned unit outages at the mines or upgrader.
Sales prices for roughly two-thirds of the normal output mix has historically tracked movements in WTI and one-third has historically tracked movements in the Canadian heavy crude oil marker, primarily WCS.
The WCS discount to WTI has been increasing on average in each year presented below.
Despite a wider WCS discount in 2013, our average Oil Sands Mining price realizations increased due to a greater proportion of higher value synthetic crude oil sales volumes compared to 2012.
The operating cost structure of the Oil Sands Mining operations is predominantly fixed and therefore many of the costs incurred in times of full operation continue during production downtime.
Per-unit costs are sensitive to production rates.
Key variable costs are natural gas and diesel fuel, which track commodity markets such as the AECO natural gas sales index and crude oil prices, respectively.
The table below shows average benchmark prices that impact both our revenues and variable costs:


CECONY 3.2.1.1 Restated Certificate of Incorporation of CECONY filed with the Department of State of the State of New York on December?31, 1984.
(Designated in the Annual Report on Form 10-K of CECONY for the year ended December?31, 1989 (File No.1-1217) as Exhibit 3 (a)) 3.2.1.2 The following certificates of amendment of Restated Certificate of Incorporation of CECONY filed with the Department of State of the State of New York, which are designated as follows:


reduce water usage by 20% by 2020.
This progressive regulation enables utilities to encourage water efficiency, as revenues are not tied to sales.
Similarly, New York has implemented a surcharge or credit based on the difference between actual net revenues and the revenues allowed in the most recent rate order.
California also has a multi-year cost of capital proceeding outside of the general rate case process.
This proceeding authorizes the utilitys capital structure and authorized rates of return, as well as provides an automatic adjustment mechanism that triggers an adjustment to the authorized cost of capital if the Moodys utility bond index changes beyond certain thresholds on an annual basis.
We pursue positive regulatory policies as part of our rate and revenue management program to enhance our ability to provide high quality, sustainable, cost effective service to customers, to facilitate efficient recovery of our costs and investments, and to ensure positive short-term liquidity and long-term profitability for a financially stable company which benefits our customers, employees and shareholders.
The ability to seek regulatory treatment as described above does not guarantee that the state PUCs will accept our proposal in the context of a particular rate case, and these policies will reduce, but not eliminate, regulatory lag associated with traditional rate making processes.
However, the Company strives to use these and other regulatory policies to address issues of regulatory lag wherever appropriate.
It is also our strategy to expand their use in areas where they may not currently apply.
Customers We have a large and geographically diverse customer base in our Regulated Businesses.
An active customer is defined as a party with an active agreement to receive a specific service from a connection to our water or wastewater system as of the last business day of each monthly reporting period.
Also, as in the case of apartment complexes, businesses and many homes, multiple individuals may be served by a single contract.
Residential customers make up the majority of our customer base in all of the states in which we operate.
In 2014, residential customers accounted for 91.0% of the customers, 59.3% of the operating revenues and approximately 50.4% of the billed water sales of our Regulated Businesses.
We also serve commercial customers, such as shops and businesses; industrial customers, such as large-scale manufacturing and production operations; and public authorities, such as government buildings and other public sector facilities, including schools.
We also supply water to public fire hydrants for firefighting purposes, to private fire customers for use in fire suppression systems in office buildings and other facilities, as well as providing bulk water supplies to other water utilities for distribution to their own customers.
The vast majority of our regulated water customers are metered, which allows us to measure and bill for our customers water consumption, typically on a monthly basis.
Our wastewater customers are billed either on a fixed charge basis or based on their water consumption.
In fiscal year 2014, no single Regulated Businesses customer accounted for more than 10% of our consolidated annual operating revenues.
The following table sets forth the number of water and wastewater customers (by customer class) for our Regulated Businesses as of December 31, 2014, 2013, and 2012:


| December 31, 2017 | (in millions) | Recorded Investment: | Residential mortgages | Home equity loans | Home equity lines of credit | Home equity loans serviced by others | Home equity lines of credit serviced by others | Automobile | Education | Credit cards | Other retail | Total |


| Period TotalNumber ofShares(or Units)Purchased(1) AveragePrice Paidper Share(orUnit) Total Number ofShares (or Units)Purchased asPart ofPublicly AnnouncedPlans or Programs MaximumNumber(or Approximate Dollar Value)of Shares (or Units) thatMayYet be Purchased Under thePlans orPrograms | October 1 – October 31,2005 | November1 – November 30,2005 | December1 – December 31, 2005 | Total |


| Year Ended  December 28,  2003 Year Ended  December 29,  2002 Year Ended  December 30,  2001 | Weighted average risk-free interest rate | Expected dividend yield | Weighted average volatility | Estimated life (in years) | Weighted average fair value of options granted | Contractual obligations by | period as of June 30, 2010 | Operating lease obligations | Capital lease obligations | Notes payable, including accrued interest | Purchase obligations | Total |


| December 31, 2018 | AmortizedCost | (in millions) | Fixed maturities, held-to-maturity: | Foreign government bonds | Foreign corporate public securities | Foreign corporate private securities-5 | Residential mortgage-backed securities-3 | Total fixed maturities, held-to-maturity-5 |


| Amounts Recognized in Income | 2009 | (Dollars in millions) | Derivatives designated as fair value hedges | Interest rate risk on long-term debt-1 | Interest rate and foreign currency risk on long-term debt-1 | Interest rate risk on available-for-sale securities(2, 3) | Commodity price risk on commodity inventory(4) | Total-5 | 2009 | (Dollars in millions, amounts pre-tax) | Derivatives designated as cash flow hedges | Interest rate risk on variable rate portfolios-2, 3, 4, 5 | Commodity price risk on forecasted purchases and sales-6 | Price risk on equity investments included in available-for-sale securities | Total-7 | Net investment hedges | Foreign exchange risk-8 |


| Location Approximate Square Feet Operation LeaseExpiration Dates | San Diego, CA | San Francisco Bay Area, CA | Singapore | Cambridge, United Kingdom* | Eindhoven, the Netherlands | Madison, WI* | Other* |


| Actual For Capital Adequacy  Under Purposes To Be Well Capitalized  Prompt Corrective  Action Provisions | Amount | Total risk-based capital ratio-1 | Tier 1 risk-based capital ratio-2 | Tier 1 capital ratio (leverage)(3) | Tangible equity ratio-4 |


| (In millions) 2010 2009 2008 | Net sales | Operating profit | Operating margin | Backlog at year-end |


| December 31, | Useful Lives | Computer hardware and software | Leasehold improvements | Furniture and equipment | Equipment under capital leases | Total cost | Accumulated depreciation and amortization | Property and equipment, net | Year Ended December 31, | 2014 | (Dollars in thousands) | Revenue | Costs and expenses: | Cost of services | Operating, administrative and other | Depreciation and amortization | Non-amortizable intangible asset impairment | Total costs and expenses | Gain on disposition of real estate | Operating income | Equity income from unconsolidated subsidiaries | Other income | Interest income | Interest expense | Write-off of financing costs | Income from continuing operations before provision for income taxes | Provision for income taxes | Income from continuing operations | Income from discontinued operations, net of income taxes | Net income | Less: Net income (loss) attributable to non-controlling interests | Net income attributable to CBRE Group, Inc. | EBITDA -1 | EBITDA, as adjusted -1 |


PENSION BENEFITS The Company and certain of its subsidiaries sponsor defined benefit pension plans and defined contribution plans that cover a substantial portion of its worldwide employees.
The principal defined benefit pension plans are the U. S.  salaried pension plan and the U. K.  pension plan.
These plans were closed to new participants in 2005, after which defined contribution plans were offered to new employees.
The shift to defined contribution plans is expected to continue to reduce volatility of both plan expense and contributions.
The fair market value of plan assets for our defined benefit pension plans as of the 30 September 2018 measurement date decreased to $4,273.1 from $4,409.2 at the end of fiscal year 2017.
The projected benefit obligation for these plans was $4,583.3 and $5,107.2 at the end of fiscal years 2018 and 2017, respectively.
The net unfunded liability decreased $387.8 from $698.0 to $310.2, primarily due to higher discount rates and favorable asset experience.
Refer to Note 16, Retirement Benefits, to the consolidated financial statements for comprehensive and detailed disclosures on our postretirement benefits.


Other Animal Health Animal Health includes pharmaceutical and vaccine products for the prevention, treatment and control of disease in all major farm and companion animal species.
Animal Health sales are affected by intense competition and the frequent introduction of generic products.
Global sales of Animal Health products grew 11% in 2011 to $3.3 billion from $2.9 billion in 2010.
Foreign exchange favorably affected global sales performance by 3% in 2011.
The increase in sales was driven by positive performance among cattle, swine, poultry and companion animal products.
Global sales of Animal Health products were $494 million for the post-Merger period in 2009.
Consumer Care Consumer Care products include over-the-counter, foot care and sun care products such as Claritin non-drowsy antihistamines; Dr.  Scholl’s foot care products; Coppertone sun care products; and MiraLAX, a treatment for occasional constipation.
Global sales of Consumer Care products increased 1% in 2011 to $1.8 billion reflecting strong performance of Coppertone, offset by declines in Dr.  Scholl’s and Claritin.
Consumer Care product sales were $149 million for the post-Merger period in 2009.
Consumer Care product sales are affected by competition and consumer spending patterns.
Alliances AstraZeneca has an option to buy Merck’s interest in a subsidiary, and through it, Merck’s interest in Nexium and Prilosec, exercisable in 2012, and the Company believes that it is likely that AstraZeneca will exercise that option (see “Selected Joint Venture and Affiliate Information” below).
If AstraZeneca exercises its option, the Company will no longer record equity income from AZLP and supply sales to AZLP will decline substantially.


| December 31, (in millions) 2003 2002 | Securities purchased under resale agreements | Securities borrowed | Securities sold under repurchase agreements | Securities loaned |


| Global Networks InternationalSubscribers(millions) Regional Networks InternationalSubscribers(millions) | Discovery Channel | Animal Planet | TLC, Real Time and Travel & Living | Discovery Science | Investigation Discovery | Discovery Home & Health | Turbo | Discovery World |


| As a percentage of average corporate loans 0.08% 0.10% 0.08% 0.09% 0.79% | Allowance for loan losses at end of period-13 | Citicorp | Citi Holdings | Total Citigroup | Allowance by type | Consumer | Corporate | Total Citigroup |


| Years Ended(In Millions) Dec 30,2017 Dec 31,2016 Dec 26,2015 | Net cash provided by operating activities | Net cash used for investing activities | Net cash provided by (used for) financing activities | Net increase (decrease) in cash and cash equivalents |


| 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) | INCOME STATEMENT DATA: | Sales ($) | Cost of goods sold, including warehouse and distribution expenses | Gross profit | Selling, general and administrative expenses | Former CSK officer clawback | Legacy CSK Department of Justice investigation charge | Operating income | Write-off of asset-based revolving credit agreement debt issuance costs | Termination of interest rate swap agreements | Gain on settlement of note receivable | Other income (expense), net | Total other income (expense) | Income before income taxes | Provision for income taxes | Net income ($) | Basic earnings per common share: | Earnings per share – basic ($) | Weighted-average common shares outstanding – basic | Earnings per common share -assuming dilution: | Earnings per share – assuming dilution ($) | Weighted-average common shares outstanding – assuming dilution | SELECTED OPERATING DATA: | Number of Team Members at year end | Number of stores at year end (a) | Total store square footage at year end (b) | Sales per weighted-average store (c)($) | Sales per weighted-average square foot (b)(d)($) | Percentage increase in comparable store sales (e)(f) |