| US Plan Assets | 2012 | Total | Asset Category: | Cash and Cash Equivalents | Equity Securities: | US(a) | International(b) | Debt Securities: | Corporate bonds(c) | Government and government-related debt securities(d) | Government agency collateralized mortgage obligations and mortgage backed securities(e) | Other collateralized mortgage obligations and mortgage-backed securities(f) | Alternative Investments: | Private equity(g) | Real estate(h) | Total |


| U.S. DefinedBenefit U.S. RetireeHealth Care MedicareSubsidy Non-U.S. DefinedBenefit | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 - 2024 |


Commitments and Contingencies Employment Agreements and Arrangements As of December 31, 2007, the Company had employment agreements with four executive offi cers.
The employment agreements provide for severance payments and generally provide for accelerated vesting of stock options and restricted stock in the event of a termination of employment (except for a termination by the Company with cause or a voluntary termination by the employee).
The current terms of these agreements end on dates that vary between November 2008 and June 2009.
The employment agreements provide for one-year automatic renewals (two years in the case of the Chief Executive Offi cer (CEO)) after the initial term unless an advance notice of non-renewal is provided by either party.
Upon a notice of non-renewal by the Company, each of the offi cers may terminate his employment and receive a severance payment.
Upon a change in control, the agreements provide for an automatic extension of up to three years from the date of the change in control.
The employment agreements provide for base salary and incentive compensation in the form of cash awards, stock options and stock grants subject to the discretion of, and attainment of performance goals established by the Compensation Committee of the Board of Directors.
The Companys stock incentive plan, as described in Note 10, Stock-Based Compensation Plans, provides that upon an employees Retirement (as defi ned in the plan documents) from the Company, all outstanding stock options and restricted shares of stock held by the employee will vest, and the employee will have up to 12 months to exercise any options held upon retirement.
Under the plan, Retirement means a termination of employment, other than for cause, after attainment of age 50, provided that (i) the employee has worked for the Company for at least 10 years, (ii) the employees age at Retirement plus years of employment with the Company equals at least 70, (iii) the employee provides at least six months written notice of his intent to retire, and (iv) the employee enters into a one year non-compete and employee non-solicitation agreement.
The Company also has an Offi cer Severance Program (the Program) for the benefi t of those offi cers of the Company who do not have employment agreements.
Under the Program, in the event an offi cer who is not otherwise covered by a severance arrangement is terminated (other than for cause) within two years following a change in control (as defi ned) of the Company, such offi cer will generally receive a cash lump sum payment equal to the sum of such offi cers base salary and cash bonus, as well as accelerated vesting of stock options and restricted stock.
Costs related to the Companys employment agreements and the Program are accounted for in accordance with SFAS No.5, Accounting for Contingencies, and therefore are recognized when considered by management to be probable and estimable.


| (in millions) December 31, 2016 December 31, 2015 | Investments, GAAP | Investments held by consolidated VIEs, GAAP | Total Investments | Investments held by consolidated VREs | Investments held by consolidated VIEs | Net interest in consolidated VREs | Net interest in consolidated VIEs-1 | Total Investments, as adjusted | Federal Reserve Bank stock | Deferred compensation investments | Hedged investments | Carried interest (VIEs/VREs) | Total “economic” investment exposure |


Our target allocation of 42 percent equity investments is composed of 60 percent global equities, 16 percent emerging market equities and 24 percent domestic small- and mid-cap equities.
Optimal returns through our investments in global equities are achieved through security selection as well as country and sector diversification.
Investments in the common stock of our Company accounted for approximately 5 percent of our global equities allocation and approximately 2 percent of total U. S.  plan assets.
Our investments in global equities are intended to provide diversified exposure to both U. S.  and non-U.
S.  equity markets.
Our investments in both emerging market equities and domestic small- and mid-cap equities are expected to experience larger swings in their market value on a periodic basis.
Our investments in these asset classes are selected based on capital appreciation potential.
Our target allocation of 30 percent fixed-income investments is composed of 33 percent long-duration bonds and 67 percent with multi-strategy alternative credit managers.
Long-duration bonds provide a stable rate of return through investments in high-quality publicly traded debt securities.
Our investments in long-duration bonds are diversified in order to mitigate duration and credit exposure.
Multi-strategy alternative credit managers invest in a combination of high-yield bonds, bank loans, structured credit and emerging market debt.
These investments are in lower-rated and non-rated debt securities, which generally produce higher returns compared to long-duration bonds and also help to diversify our overall fixed-income portfolio.
In addition to equity investments and fixed-income investments, we have a target allocation of 28 percent in alternative investments.
These alternative investments include hedge funds, reinsurance, private equity limited partnerships, leveraged buyout funds, international venture capital partnerships and real estate.
The objective of investing in alternative investments is to provide a higher rate of return than that available from publicly traded equity securities.
These investments are inherently illiquid and require a longterm perspective in evaluating investment performance.
Investment Strategy for Non-U.
S.  Pension Plans As of December 31, 2014, the long-term target allocation for 59 percent of our international subsidiaries plan assets, primarily certain of our European and Canadian plans, is 66 percent equity securities; 23 percent fixed-income securities; and 11 percent other investments.
The actual allocation for the remaining 41 percent of the Companys international subsidiaries plan assets consisted of 34 percent mutual, pooled and commingled funds; 10 percent equity securities; 13 percent fixed-income securities; and 43 percent other investments.
The investment strategies of our international subsidiaries differ greatly, and in some instances are influenced by local law.
None of our pension plans outside the United States is individually significant for separate disclosure.


| Increase/(Decrease)in Fair Market Value | As of December 31, | 2014 | 2013 |


| Future Policy Benefits Policyholder Account Balances Other Policy-Related Balances | December 31, | 2011 | (In millions) | U.S. Business: | Insurance Products | Retirement Products | Corporate Benefit Funding | Auto & Home | Total U.S. Business | International: | Japan | Other International Regions | Total International | Corporate & Other | Total |


Recourse and Repurchase Obligations As discussed in Note 2 Loan Sale and Servicing Activities and Variable Interest Entities, PNC has sold commercial mortgage, residential mortgage and home equity loans/ lines of credit directly or indirectly through securitization and loan sale transactions in which we have continuing involvement.
One form of continuing involvement includes certain recourse and loan repurchase obligations associated with the transferred assets.
Commercial Mortgage Loan Recourse Obligations We originate and service certain multi-family commercial mortgage loans which are sold to FNMA under FNMAs Delegated Underwriting and Servicing (DUS) program.
We participated in a similar program with the FHLMC.
Under these programs, we generally assume up to a one-third pari passu risk of loss on unpaid principal balances through a loss share arrangement.
At December 31, 2014 and December 31, 2013, the unpaid principal balance outstanding of loans sold as a participant in these programs was $12.3 billion and $11.7 billion, respectively.
The potential maximum exposure under the loss share arrangements was $3.7 billion at December 31, 2014 and $3.6 billion at December 31, 2013.
We maintain a reserve for estimated losses based upon our exposure.
The reserve for losses under these programs totaled $35 million and $33 million as of December 31, 2014 and December 31, 2013, respectively, and is included in Other liabilities on our Consolidated Balance Sheet.
If payment is required under these programs, we would not have a contractual interest in the collateral underlying the mortgage loans on which losses occurred, although the value of the collateral is taken into account in determining our share of such losses.
Our exposure and activity associated with these recourse obligations are reported in the Corporate & Institutional Banking segment.


The table below presents our approximate number of active full-time equivalent employees as of December 31, 2016.


| Beginning balance as of December 1, 2007 $201,808 | Gross increases in unrecognized tax benefits – prior year tax positions | Gross increases in unrecognized tax benefits – current year tax positions | Settlements with taxing authorities | Lapse of statute of limitations | Foreign exchange gains and losses | Ending balance as of November 28, 2008 |


(1) At December 31, 2015, 2014 and 2013, the cumulative CVA reduced the derivative assets balance by $1.4 billion, $1.6 billion and $1.6 billion, respectively.
(2) FVA was adopted in 2014 and the cumulative FVA reduced the net derivatives balance by $481 million and $497 million at December 31, 2015 and 2014.
(3) At December 31, 2015, 2014 and 2013, the cumulative DVA reduced the derivative liabilities balance by $750 million, $769 million and $803 million, respectively.
n/a = not applicable
Pension Plans with ABO and PBO in excess of plan assets as of December 31, 2015 and 2014 are presented in the table below.
For the non-qualified plans not subject to ERISA or non-U.
S.  pension plans, funding strategies vary due to legal requirements and local practices.
Plans with PBO and ABO in Excess of Plan Assets


| Years Ended December 31, 2014/2013 2013/2012 | (Dollars in millions) | Gross written premiums | Net written premiums | Premiums earned | Incurred losses and LAE | Commission and brokerage | Other underwriting expenses | Underwriting gain (loss) | Point Chg | Loss ratio | Commission and brokerage ratio | Other underwriting expense ratio | Combined ratio | (Some amounts may not reconcile due to rounding.) |


The asset category represents the allocation of Plan assets in accordance with the investment objective of each of the Plans investment managers.
Certain domestic equity investment managers utilize derivatives and fixed income securities as described in their Investment Management Agreements to achieve their investment objective under the Investment Policy Statement.
Other investment managers may invest in eligible securities outside of their assigned asset category to meet their investment objectives.
The actual percentage of the fair value of total plan assets held as of December 31, 2011 for equity securities, fixed income securities, real estate and all other assets are 61%, 31%, 3%, and 5%, respectively.
We believe that, over the long term, asset allocation is the single greatest determinant of risk.
Asset allocation will deviate from the target percentages due to market movement, cash flows, investment manager performance and implementation of shifts under the dynamic allocation policy.
Material deviations from the asset allocation targets can alter the expected return and risk of the Trust.
On the other hand, frequent rebalancing to the asset allocation targets may result in significant transaction costs, which can impair the Trusts ability to meet its investment objective.
Accordingly, the Trust portfolio is periodically rebalanced to maintain asset allocation within the target ranges described above.
From October 14, 2008 through December 31, 2009, PNC Bank, National Association (PNC Bank, N. A. )
participated in the TLGP-Transaction Account Guarantee Program.
Under this program, all non-interest bearing transaction accounts were fully guaranteed by the FDIC for the entire amount in the account.
Beginning January 1, 2010, PNC Bank, N. A.  ceased participating in the FDICs TLGP-Transaction Account Guarantee Program.
Dodd-Frank, however, extended for two years, beginning December 31, 2010, unlimited deposit insurance coverage for non-interest bearing transaction accounts held at all banks.
Therefore, eligible accounts at PNC Bank, N. A.  are again eligible for unlimited deposit insurance, through December 31, 2012.
Coverage under this extension is in addition to, and separate from, the coverage available under the FDICs general deposit insurance rules.
Home Affordable Modification Program (HAMP) As part of its effort to stabilize the US housing market, in March 2009 the Obama Administration published detailed guidelines implementing HAMP, and authorized servicers to begin loan modifications.
PNC began participating in HAMP through its then subsidiary National City Bank in May 2009 and directly through PNC Bank, N. A.  in July 2009, and entered into an agreement on October 1, 2010 to participate in the Second Lien Program.
HAMP was scheduled to terminate as of December 31, 2012; however, the Administration has announced that the HAMP program deadline will be extended to December 31, 2013.
Home Affordable Refinance Program (HARP) Another part of its efforts to stabilize the US housing market is the Obama Administrations Home Affordable Refinance Program (HARP), which provided a means for certain borrowers to refinance their mortgage loans.
PNC began participating in HARP in May 2009.
In 2011, the Obama Administration revised the program to increase borrower eligibility and extended it for another twelve months with a new termination date of December 31, 2013.
KEY FACTORS AFFECTING FINANCIAL PERFORMANCE Our financial performance is substantially affected by a number of external factors outside of our control, including the following: ?
General economic conditions, including the continuity, speed and stamina of the moderate economic recovery in general and on our customers in particular, ?
The level of, and direction, timing and magnitude of movement in, interest rates and the shape of the interest rate yield curve, ?
The functioning and other performance of, and availability of liquidity in, the capital and other financial markets, ?
Loan demand, utilization of credit commitments and standby letters of credit, and asset quality, ?
Customer demand for non-loan products and services, ?
Changes in the competitive and regulatory landscape and in counterparty creditworthiness and performance as the financial services industry restructures in the current environment, ?
The impact of the extensive reforms enacted in the Dodd-Frank legislation and other legislative, regulatory and administrative initiatives, including those outlined elsewhere in this Report, and ?
The impact of market credit spreads on asset valuations.
In addition, our success will depend, among other things, upon: ?
Further success in the acquisition, growth and retention of customers, ?
Continued development of the geographic markets related to our recent acquisitions, including full deployment of our product offerings, ?
Closing the pending RBC Bank (USA) acquisition and integrating its business into PNC after closing, ?
Revenue growth and our ability to provide innovative and valued products to our customers, ?
Our ability to utilize technology to develop and deliver products and services to our customers, ?
Our ability to manage and implement strategic business objectives within the changing regulatory environment, ?
A sustained focus on expense management, ?
Managing the non-strategic assets portfolio and impaired assets, ?
Improving our overall asset quality and continuing to meet evolving regulatory capital standards, ?
Continuing to maintain and grow our deposit base as a low-cost funding source, ?
Prudent risk and capital management related to our efforts to maintain our desired moderate risk profile, ?
Actions we take within the capital and other financial markets, and ?
The impact of legal and regulatory contingencies.
For additional information, please see Risk Factors in Item 1A of this Report and the Cautionary Statement Regarding Forward-Looking Information section in this Item 7.


Treasury’s net income increased $34.6 million in 2015 compared to 2014.
The $53.7 million improvement in net interest income primarily reflects lower net FTP funding costs and an increase in securities income, partially offset by an increase in interest expense.
The decrease in non-interest income primarily reflects a decrease in net security gains and BOLI income.
The increase in non-interest expense reflects increases in both direct and allocated expenses.
Average total assets increased $1.1 billion in 2015 compared to 2014, primarily reflecting increases in average securities and average short-term investments.
The $1.8 billion increase in average total liabilities in 2015 compared to 2014 reflects increases in average deposits and average notes and debentures, partially offset by a decrease in average borrowings.


| As of   December 31, | 2008 | (In $ millions) | Total assets | Total liabilities | Ownership Percentage   as of December 31, | Segment | (In percentages) | National Methanol Company (“Ibn Sina”) | Kunming Cellulose Fibers Co. Ltd. | Nantong Cellulose Fibers Co. Ltd. | Zhuhai Cellulose Fibers Co. Ltd. | InfraServ GmbH & Co. Wiesbaden KG | Other | Total |


1 For all periods presented we have not recorded a goodwill impairment charge.2 For acquisitions completed after January 1, 2009, amount includes contingent and deferred payments, which are recorded at fair value on the acquisition date.
See Note 6 for further information.
See Note 1 for further information regarding our annual impairment methodology.
Other Intangible Assets Included in other intangible assets are assets with indefinite lives not subject to amortization and assets with definite lives subject to amortization.
Other intangible assets primarily include customer lists and trade names.
Intangible assets with definitive lives subject to amortization are amortized on a straight-line basis with estimated useful lives generally between 7 and 15 years.
Amortization expense for other intangible assets for the years ended December 31, 2009, 2008 and 2007 was $19.3, $14.4 and $8.5, respectively.
The following table provides a summary of other intangible assets, which are included in other assets on our Consolidated Balance Sheets.
Notes to Consolidated Financial Statements  (Continued) (Amounts in Millions, Except Per Share Amounts) Assumptions


For the twelve months ended December 31, 2017, 2016 and 2015, 0.3 million, 0.1 million and 0.1 million stock options, respectively, were anti-dilutive and therefore excluded from this calculation.
Accelerated Share Repurchase Program.
On October 24, 2014, we entered into an accelerated share repurchase (ASR) program to repurchase shares of our common stock under our approved share repurchase program.
Under the ASR program, the number of shares to be repurchased is based generally on the daily volume weighted average price of our common stock during the term of the ASR program.
On October 24, 2014, we paid $115 million in exchange for an initial delivery of 1.4
expenses decreased to $23 million from $115 million in 2006 and $146 million in 2005, reflecting the reduced level of operations.
Operating profits for the Real Estate division, which principally sells higher-and-better-use properties, were $32 million, $124 million and $198 million in 2007, 2006 and 2005, respectively.
Looking forward to 2008, operating profits are expected to decline significantly, reflecting the reduced level of forestland holdings.
Operating earnings will primarily reflect the periodic sales of remaining acreage, and can be expected to vary from quarter to quarter depending on the timing of sale transactions.
Specialty Businesses and Other The Specialty Businesses and Other segment principally includes the operating results of the Arizona Chemical business as well as certain smaller businesses.
The Arizona Chemical business was sold in February 2007.


| Minimum capital ratios Well-capitalized ratios | BHC(a) | Capital ratios | CET1 | Tier 1 | Total | Tier 1 leverage |


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


| 2016 2015 2014 | Weighted-average assumptions: | Expected volatility | Expected term of stock options | Risk-free interest rate | Expected dividend yield | Weighted-average grant date fair value |


| 2006 2005 | Cash and cash equivalents | Long-term debt (including current portion of long-term debt) | Foreign currency forward contracts in a net (loss) gain position | Interest rate swap agreements in a net receivable position | Fuel swap agreements in a net payable position |


| 2018 2017 2016 | Risk-free rate | Expected volatility | Expected life (in years) | Expected dividend yield |


| December 31, 2014 | Less than 12 Months | (dollars in millions) | State and political subdivisions | Mortgage-backed securities: | Federal agencies and U.S. government sponsored entities | Other/non-agency | Total mortgage-backed securities | Total | December 31, 2013 | Less than 12 Months | (dollars in millions) | State and political subdivisions | Mortgage-backed securities: | Federal agencies and U.S. government sponsored entities | Other/non-agency | Total mortgage-backed securities | Total | In Millions | Fiscal 2018 | Fiscal 2019 | Fiscal 2020 | Fiscal 2021 | Fiscal 2022 | After fiscal 2022 | Total noncancelable future lease commitments | Less: interest | Present value of obligations under capital leases |


| Change in long-term rateof return on plan assets | Increase (decrease) in expense | U.S. plans | U.K. plans | The Netherlands plan | Canada plans | December 31, 2012 | Goodwill | Bottlers' franchise rights with indefinite lives | Trademarks with indefinite lives | Definite-lived intangible assets, net | Other intangible assets not subject to amortization | Total |


| Preferred Shares | December 31Shares in thousands | Authorized | $1 par value | Issued and outstanding | Series A | Series B | Series C | Series D | Series K | Series L | Series N | Total issued and outstanding |


existing short-term and long-term commitments and plans, and also to provide adequate financial flexibility to take advantage of potential strategic business opportunities should they arise within the next year.
However, there can be no assurance of the cost or availability of future borrowings, if any, under our commercial paper program, in the debt markets or our credit facilities.
At December 31, 2016 and 2015, our pension plans were $20.1 billion and $17.9 billion underfunded as measured under GAAP.
On an Employee Retirement Income Security Act (ERISA) basis our plans are more than 100% funded at December 31, 2016 with minimal required contributions in 2017.
We expect to make contributions to our plans of approximately $0.5 billion in 2017.
We may be required to make higher contributions to our pension plans in future years.
At December 31, 2016, we were in compliance with the covenants for our debt and credit facilities.
The most restrictive covenants include a limitation on mortgage debt and sale and leaseback transactions as a percentage of consolidated net tangible assets (as defined in the credit agreements), and a limitation on consolidated debt as a percentage of total capital (as defined).
When considering debt covenants, we continue to have substantial borrowing capacity.


| Payments Due by Period | Total | (in thousands) | Long-term debt obligations: | Net term notes to bank due September 7, 2025 | Interest on net term notes to bank due September 7, 2025 | Operating lease obligations: | Facilities space | Total |


| 2008 2007 2006 2005 2004 | Senior housing: | Average occupancy percentage-1 | Average effective annual rental per unit-1 | Units-2 | Life science: | Average occupancy percentage | Average effective annual rental per square foot | Square feet-2 | Medical office: | Average occupancy percentage | Average effective annual rental per square foot | Square feet-2 | Hospital: | Average occupancy percentage-1 | Average effective annual rental per bed-1 | Beds-2 | Skilled nursing: | Average occupancy percentage-1 | Average effective annual rental per bed-1 | Beds-2 |


| Con Edison CECONY | (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 | Net actuarial (gain)/loss | Plan amendments | 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 |


| Fiscal Years Ended | September 29, 2012 | Revenues: | Product sales | Service and other revenues | 100.0 | Costs and expenses: | Cost of product sales | Cost of product sales—amortization of intangible assets | Cost of product sales—impairment of intangible assets | Cost of service and other revenues | Research and development | Selling and marketing | General and administrative | Amortization of intangible assets | Contingent consideration—compensation expense | Contingent consideration—fair value adjustments | Impairment of goodwill | Impairment of intangible assets | Gain on sale of intellectual property, net | Litigation-related settlement charges, net | Acquired in-process research and development | Restructuring and divestiture charges, net | 94.3 | Income from operations | Interest income | Interest expense | Debt extinguishment loss | Other income (expense), net | (Loss) income before income taxes | Provision for income taxes | Net (loss) income | Years Ended | September 29, 2012 | Amount | Product Sales | Breast Health | Diagnostics | GYN Surgical | Skeletal Health | $1,657,728 | Years Ended | September 29, 2012 | Amount | Total Revenues | Operating Income | Operating Income as a % of Segment Revenue |


| 2018 2017 2016 | Weighted average common shares outstanding for basic computations | Weighted average dilutive effect of equity awards | Weighted average common shares outstanding for diluted computations |


matters.
This income adjustment mostly reduced NOLs and other tax credit carryforwards.
Additionally, the Company is seeking resolution of one issue raised during this examination through the IRS administrative appeals process.
The Company’s reserves for uncertain tax positions were adequate to cover all adjustments related to this examination period.
The IRS began its examination of the 2007-2009 tax years for the Company in 2010.
The Company’s contractual obligations as of December 31, 2011 are as follows:


Commercial loans held for sale During 2013 and 2012, the Bancorp transferred $5 million and $16 million, respectively, of commercial loans from the portfolio to loans held for sale that upon transfer were measured at fair value using significant unobservable inputs.
These loans had fair value adjustments in 2013 and 2012 totaling $4 million and $1 million, respectively, and were generally based on appraisals of the underlying collateral and were therefore, classified within Level 3 of the valuation hierarchy.
Additionally, during 2013 and 2012 there were fair value adjustments on existing commercial loans held for sale of $3 million and $12 million, respectively.
The fair value adjustments were also based on appraisals of the underlying collateral and were therefore classified within Level 3 of the valuation hierarchy.
An adverse change in the fair value of the underlying collateral would result in a decrease in the fair value measurement.
The Accounting Department determines the procedures for valuation of commercial HFS loans which may include a comparison to recently executed transactions of similar type loans.
A monthly review of the portfolio is performed for reasonableness.
Quarterly, appraisals approaching a year old are updated and the Real Estate Valuation group, which reports to the Chief Risk and Credit Officer, in conjunction with the Commercial Line of Business review the third party appraisals for reasonableness.
Additionally, the Commercial Line of Business Finance Department, which reports to the Bancorp Chief Financial Officer, in conjunction with Accounting review all loan appraisal values, carrying values and vintages.


| Reported amount Currency translation benefit/(cost) | In millions, except per share data | Revenues | Company-operated margins | Franchised margins | Selling, general & administrative expenses | Operating income | Income from continuing operations | Net income | Income from continuing operations per common share—diluted | Net income per common share—diluted |


| Qualified Pension Nonqualified Pension Postretirement Benefits | 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 (gains)/losses and changes in assumptions | Participant contributions | Federal Medicare subsidy on benefits paid | Benefits paid | Settlement payments | 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 | Settlement payments | Fair value of plan assets at end of year | Funded status | Amounts recognized on the consolidated balance sheet | Noncurrent asset | Current liability | Noncurrent liability | Net amount recognized on the consolidated balance sheet | Amounts recognized in accumulated other comprehensive income consist of: | Prior service cost (credit) | Net actuarial loss | Amount recognized in AOCI |


| As of April 30, 2011 2010 | Gross  Carrying  Amount | Tax Services: | Customer relationships | Noncompete agreements | Reacquired franchise rights | Franchise agreements | Purchased technology | Trade name | Business Services: | Customer relationships | Noncompete agreements | Attest firm affiliation | Trade name – amortizing | Trade name –non-amortizing | Total intangible assets |


(1) Amount represents the revenue not reported during the period as a result of the acquisition accounting adjustment associated with the accounting for deferred revenue in business combinations.
(2) Amount represents $58.1 million of amortization expense associated with intangible assets acquired in business combinations, $34.0 million of stock-based compensation expense, the $1.7 million adjustment to revenue as reflected in (1) above and $0.8 million of transaction expenses related to business combinations.
(3) Amount represents the impact of the adjustments to operating income referred to in (2) above, adjusted for the related income tax impact of $33.8 million.
(4) Amount represents the revenue not reported during the period as a result of the acquisition accounting adjustment associated with the accounting for deferred revenue in business combinations.
(5) Amount represents $61.0 million of amortization expense associated with intangible assets acquired in business combinations, $36.9 million of stock-based compensation expense, the $5.4 million adjustment to revenue as reflected in (4) above and $1.1 million of transaction expenses related to business combinations.
(6) Amount represents the impact of the adjustments to operating income referred to in (5) above, adjusted for the related income tax impact of $35.7 million.
Non-GAAP Measures Management uses non-GAAP financial measures (a) to evaluate the Company's historical and prospective financial performance as well as its performance relative to its competitors, (b) to set internal sales targets and spending budgets, (c) to allocate resources, (d) to measure operational profitability and the accuracy of forecasting, (e) to assess financial discipline over operational expenditures and (f) as an important factor in determining variable compensation for management and its employees.
In addition, many financial analysts that follow the Company focus on and publish both historical results and future projections based on non-GAAP financial measures.
The Company believes that it is in the best interest of its investors to provide this information to analysts so that they accurately report the non-GAAP financial information.
Moreover, investors have historically requested and the Company has historically reported these non-GAAP financial measures as a means of providing consistent and comparable information with past reports of financial results.
While management believes that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures.
These non-GAAP financial measures are not prepared in accordance with GAAP, are not reported by all of the Company's competitors and may not be directly comparable to similarly titled measures of the Company's competitors due to potential differences in the exact method of calculation.
The Company compensates for these limitations by using these non-GAAP financial measures as supplements to GAAP financial measures and by reviewing the reconciliations of the non-GAAP financial measures to their most comparable GAAP financial measures.


Research and Development We are committed to investing in highly productive research and development capabilities, particularly in electro-mechanical systems.
Our research and development ("R&D") expenditures were approximately $48.3 million, $47.3 million and $45.2 million for the years ended December 31, 2017, 2016 and 2015, respectively.
We concentrate on developing technology innovations that will deliver growth through the introduction of new products and solutions, and also on driving continuous improvements in product cost, quality, safety and sustainability.
We manage our R&D team as a global group with an emphasis on a global collaborative approach to identify and develop new technologies and worldwide product platforms.
We are organized on a regional basis to leverage expertise in local standards and configurations.
In addition to regional engineering centers in each geographic region, we also operate a global engineering center of excellence in Bangalore, India.
Seasonality Our business experiences seasonality that varies by product line.
Because more construction and do-it-yourself projects occur during the second and third calendar quarters of each year in the Northern Hemisphere, our security product sales, typically, are higher in those quarters than in the first and fourth calendar quarters.
However, our Interflex business typically experiences higher sales in the fourth calendar quarter due to project timing.
Revenue by quarter for the years ended December 31, 2017, 2016 and 2015 are as follows:


Hedging The following table presents the notional amount and estimated fair value of derivatives designated as hedging instruments by type of hedge designation at:


and government guaranteed fixed maturity securities and, to a lesser extent, certain other invested asset classes including real estate joint ventures and other invested assets to provide additional diversification and opportunity for long-term yield enhancement.
Other expenses were essentially flat despite an increase of $137 million from the impact of market conditions on certain expenses, primarily pension and postretirement benefit costs.
This increase was partially offset by a decrease of $85 million, predominantly from declines in information technology, travel, and professional services, including the positive impact of our Operational Excellence initiative.
A further reduction of expenses was achieved through a decrease in variable expenses, such as commissions and premium taxes of $46 million, a portion of which is offset by DAC capitalization.
The aforementioned declines in operating earnings were partially offset by the favorable impact of a $63 million decrease in policyholder dividends in the traditional life business, the result of a dividend scale reduction in the fourth quarter of 2009.
In addition, favorable mortality in the individual life business was partially offset by higher benefit utilization in the dental business during 2009, reflecting the negative employment trends in the marketplace.
The net impact of these two items benefited operating earnings by $36 million.
The 2009 results were also favorably impacted by our review of assumptions used to determine estimated gross profits and margins, which in turn are factors in determining the amortization for DAC and unearned revenue.
This review resulted in an unlocking event related to unearned revenue and, coupled with the impact from the prior years review, generated an increase in operating earnings of $82 million.
This increase was recorded in universal life and investment-type product policy fees.
Partially offsetting these increases was the impact of lower separate account balances, which resulted in lower fee income of $25 million.
DAC amortization reflects lower current year amortization of $108 million, stemming from the impact of the improvement in the financial markets in 2009, which increased our expected future gross profits, as well as lower current year gross margins in the closed block.
This decrease was partially offset by the net impact of refinements in both the prior and current years of $98 million, the majority of which was recorded in the prior year as a result of the 2008 review of certain DAC related assumptions.


| Year ended December 31, 2015 Year ended December 31, 2014 Increase Percentage Increase | Large Market Same Store | Secondary Market Same Store | Same Store Portfolio | Non-Same Store and Other | Total |


Net realized gains on commercial mortgage and other loans in 2010 were $35 million and primarily related to a net decrease in the loan loss reserves of $103 million and mark-to-market net gains on our interim loan portfolio of $17 million.
These net gains were partially offset by net realized losses on loan modifications, payoffs, and foreclosures within our commercial mortgage operations.
Net losses on commercial mortgage and other loans in 2009 were $517 million primarily related to the net increase in the loan loss reserve of $317 million and mark-to-market losses on mortgage loans within our commercial mortgage operations.
For additional information regarding our commercial mortgage and other loan loss reserves see General Account InvestmentsCommercial Mortgage and Other Loans Commercial Mortgage and Other Loan Quality.
 Net realized gains on derivatives were $601 million in 2010, compared to net realized gains of $171 million in 2009.
The net derivative gains in 2010 primarily reflect net gains of $521 million on interest rate derivatives used to manage duration as interest rates declined and net gains of $325 million primarily related to embedded derivatives and related hedge positions associated with certain variable annuity contracts.
See Results of Operations for Financial Services Businesses by SegmentU.
S.  Retirement Solutions and Investment Management DivisionIndividual Annuities for additional information.
Also contributing to these gains are net derivative gains of $99 million on currency derivatives used to hedge foreign denominated investments and net gains of $43 million on embedded derivatives associated with certain externally-managed investments in the European market.
Partially offsetting these gains were net derivative losses of $319 million on foreign currency forward contracts used to hedge the future income of non-U.
S.  businesses primarily in Japan and net losses of $75 million on credit derivatives as credit spreads tightened.
The net derivative gains in 2009 primarily reflect net gains of $376 million on embedded derivatives and related hedge positions associated with certain variable annuity contracts.
Also contributing to the net derivative gains in 2009 were net gains of $196 million on embedded derivatives associated with certain externallymanaged investments in the European market and net gains of $87 million on mark-to-market adjustments from credit derivatives.
Partially offsetting these gains were net mark-to-market losses of $376 million on interest rate derivatives used to manage duration and net losses of $121 million on currency derivatives used to hedge foreign denominated investments.


Uranium Mining Sites.
During a period between 1940 and the early 1970s, certain FMC predecessor entities were involved in uranium exploration and mining in the western U. S.  Similar exploration and mining activities by other companies have caused environmental impacts that have warranted remediation, and EPA and local authorities are currently evaluating the need for significant cleanup activities in the region.
To date, FMC has undertaken remediation at a limited number of sites associated with these predecessor entities.
An initiative to gather additional information about sites in the region is ongoing, and information gathered under this initiative was submitted to EPA Region 9 during the second and third quarters of 2008 and the fourth quarter of 2009 in response to an information request by EPA regarding uranium mining activities on Navajo Nation properties.
FCX utilized the results of FMCs remediation experience, in combination with historical and updated information to initially estimate the fair value of uranium-related liabilities assumed in the FMC acquisition.
Asset Retirement Obligations (AROs).
FCXs ARO cost estimates are reflected on a third-party cost basis and comply with FCXs legal obligation to retire tangible, long-lived assets.
A summary of changes in FCXs AROs for the years ended December 31 follows:


Base rates increased net revenue due to base rate increases at Entergy Mississippi and Entergy New Orleans that became effective in January 2003 and June 2003, respectively.
Entergy Gulf States implemented base rate decreases in its Louisiana jurisdiction effective June 2002 and January 2003.
The January 2003 base rate decrease of $22.1 million had a minimal impact on net income due to a corresponding reduction in nuclear depreciation and decommissioning expenses associated with the change in accounting estimate to reflect an assumed extension of River Bend's useful life.
The deferred fuel cost revisions variance was due to a revised unbilled sales pricing estimate made in December 2002 and further revision of that estimate in the first quarter of 2003 to more closely align the fuel component of that pricing with expected recoverable fuel costs at Entergy Louisiana.
The asset retirement obligation variance was due to the implementation of SFAS 143,
Accounting for Asset Retirement Obligations,
adopted in January 2003.
See
Critical Accounting Estimates  Nuclear Decommissioning Costs
for more details on SFAS 143.
The increase was offset by increased depreciation and decommissioning expenses and had an insignificant effect on net income.
The increase in net wholesale revenue was primarily due to an increase in sales volume to municipal and cooperative customers.
The March 2002 settlement agreement variance reflects the absence in 2003 of the effect of recording the ice storm settlement approved by the APSC in 2002.
This settlement resulted in previously deferred revenues at Entergy Arkansas per the transition cost account mechanism being recorded in net revenue in the second quarter of 2002.
The decrease was offset by a corresponding decrease in other operation and maintenance expenses and had a minimal effect on net income.
Gross operating revenues and regulatory credits Gross operating revenues include an increase in fuel cost recovery revenues of $682 million and $53 million in electric and gas sales, respectively, primarily due to higher fuel rates in 2003 resulting from increases in the market prices of purchased power and natural gas.
As such, this revenue increase was offset by increased fuel and purchased power expenses.
Entergy Louisiana, Inc.  Management's Financial Discussion and Analysis 201 Gross operating revenues, fuel and purchased power expenses, and other regulatory credits Gross operating revenues increased primarily due to: ?
an increase of $98.0 million in fuel cost recovery revenues due to higher fuel rates; and ?
an increase due to volume/weather, as discussed above.
The increase was partially offset by the following: ?
a decrease of $31.9 million in the price applied to unbilled sales, as discussed above; ?
a decrease of $12.2 million in rate refund provisions, as discussed above; and ?
a decrease of $5.2 million in gross wholesale revenue due to decreased sales to affiliated systems.
Fuel and purchased power expenses increased primarily due to: ?
an increase in the recovery from customers of deferred fuel costs; and ?
an increase in the market price of natural gas.
Other regulatory credits increased primarily due to: ?
the deferral in 2004 of $14.3 million of capacity charges related to generation resource planning as allowed by the LPSC; ?
the amortization in 2003 of $11.8 million of deferred capacity charges, as discussed above; and ?
the deferral in 2004 of $11.4 million related to Entergy's voluntary severance program, in accordance with a proposed stipulation with the LPSC staff.2003 Compared to 2002 Net revenue, which is Entergy Louisiana's measure of gross margin, consists of operating revenues net of: 1) fuel, fuel-related, and purchased power expenses and 2) other regulatory charges (credits).
Following is an analysis of the change in net revenue comparing 2003 to 2002.


During fiscal 2014 we generated $1.4 billion in cash from operations and $1.0 billion from the sale of our Intuit Financial Services business.
We also received $165 million in cash from the issuance of common stock under employee stock plans.
During the same period we used $1.6 billion in cash for the repurchase of shares of our common stock under our stock repurchase programs, $471 million for the acquisition of businesses (primarily Check), $421 million for net purchases of investments, $220 million for the payment of cash dividends, and $186 million for capital expenditures.
Over the next five fiscal years, we expect to invest a total of over $250 million in capital improvements to expand our headquarters campus in Mountain View, California.


FCX or its subsidiaries file income tax returns in the U. S.  federal jurisdiction and various state and foreign jurisdictions.
The tax years for FCXs major tax jurisdictions that remain subject to examination are as follows:


| 2019 2020 2021 2022 2023 2024 – 2028 | Qualified defined benefit pension plans | Retiree medical and life insurance plans |


2016 vs.  2015 Underlying sales increased by 10% from higher volumes of 11%, partially offset by lower pricing of 1%.
Volumes were higher primarily from new plants in China and higher merchant volumes across Asia.
Pricing was down due to continued pricing pressure on merchant products in China and helium oversupply into Asia.
Unfavorable currency impacts, primarily from the Chinese Renminbi, Korean Won, and Taiwanese Dollar decreased sales by 5%.
Operating income of $449.1 increased 18%, or $68.6, primarily due to higher volumes of $66 and lower operating costs of $34, partially offset by an unfavorable currency impact of $19 and unfavorable pricing, net of energy and fuel costs, of $12.
The lower operating costs were driven by our operational improvements.
Operating margin increased 300 bp, due to favorable cost performance and higher volumes.
Equity affiliates’ income of $57.8 increased $11.7 primarily due to favorable contract and insurance settlements, higher volumes, and improved cost performance.2015 vs.  2014 Underlying sales increased by 10% from higher volumes of 12%, partially offset by lower pricing of 2%.
Volumes were higher primarily from new plants, and in particular, a large on-site project in China.
Pricing was down due to continued pricing pressure on merchant products in China.
Unfavorable currency impacts decreased sales by 4%.
Higher energy contractual cost-pass through to customers increased sales by 1%.
Operating income of $380.5 increased 23%, or $70.1, primarily due to higher volumes of $76 and lower costs of $42 resulting from restructuring and underlying productivity, partially offset by lower pricing, net of energy and fuel costs, of $35 and an unfavorable currency impact of $13.
Operating margin increased 290 bp, primarily due to favorable cost performance and higher volumes, partially offset by lower pricing.
Equity affiliates’ income of $46.1 increased $8.1 primarily due to higher volumes and favorable cost performance.


THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Management’s Discussion and Analysis Net revenues in Equities were $6.60 billion, 4% lower than 2016, primarily due to lower commissions and fees, reflecting a decline in our listed cash equity volumes in the U. S.  Market volumes in the U. S.  also declined.
In addition, net revenues in equities client execution were lower, reflecting lower net revenues in derivatives, partially offset by higher net revenues in cash products.
Net revenues in securities services were essentially unchanged.
Operating expenses were $9.69 billion for 2017, essentially unchanged compared with 2016, due to decreased compensation and benefits expenses, reflecting lower net revenues, largely offset by increased technology expenses, reflecting higher expenses related to cloud-based services and software depreciation, and increased consulting costs.
Pre-tax earnings were $2.21 billion in 2017, 54% lower than 2016.


Risk factors and cautionary statement about forward-looking information This report includes forward-looking statements about our plans and future performance, including those under Outlook for 2009.
These statements use such words as may, will, expect, believe and plan.
 They reflect our expectations and speak only as of the date of this report.
We do not undertake to update them.
Our expectations (or the underlying assumptions) may change or not be realized, and you should not rely unduly on forward-looking statements.
We have identified the principal risks and uncertainties that affect our performance in the Companys filings with the Securities and Exchange Commission, and investors are urged to consider these risks and uncertainties when evaluating our historical and expected performance.


Risk monitoring and control Limits Market risk is controlled primarily through a series of limits set in the context of the market environment and business strategy.
In setting limits, the Firm takes into consideration factors such as market volatility, product liquidity and accommodation of client business and management experience.
The Firm maintains different levels of limits.
Corporate level limits include VaR and stress limits.
Similarly, line of business limits include VaR and stress limits and may be supplemented by loss advisories, nonstatistical measurements and profit and loss drawdowns.
Limits may also be allocated within the lines of business, as well at the portfolio level.
Limits are established by Market Risk in agreement with the lines of business.
Limits are reviewed regularly by Market Risk and updated as appropriate, with any changes approved by lines of business management and Market Risk.
Senior management, including the Firms Chief Executive Officer and Chief Risk Officer, are responsible for reviewing and approving certain of these risk limits on an ongoing basis.
All limits that have not been reviewed within specified time periods by Market Risk are escalated to senior management.
The lines of business are responsible for adhering to established limits against which exposures are monitored and reported.
Limit breaches are required to be reported in a timely manner by Risk Management to limit approvers, Market Risk and senior management.
Market Risk consults with Firm senior management and lines of business senior management to determine the appropriate course of action required to return to compliance, which may include a reduction in risk in order to remedy the excess.
Any Firm or line of business-level limits that are in excess for three business days or longer, or that are over limit by more than 30%, are escalated to senior management and the Firmwide Risk Committee.


Approximately 33% of the $16.3 billion total backlog at December 31, 2011, is expected to be converted into sales in 2012.
Total U. S.  Government orders comprised substantially all of the total backlog at the end of 2011.
Awards 2011—The value of new contract awards during the year ended December 31, 2011 was approximately $5.6 billion.
Significant new awards during this period included contracts for the construction of LPD-26 John P.  Murtha, DDG-113 John Finn and DDG-114 Ralph Johnson, continued engineering and construction of CVN-78 Gerald R.  Ford, advance
of exercise for stock options exercised or at period end for outstanding stock options, less the applicable exercise price.
The Company issued new shares to satisfy exercised stock options.
Compensation Expense The Company recorded $43 million, $34 million, and $44 million of expense related to stock awards for the years ended December 31, 2015, 2014, and 2013, respectively.
The Company recorded $17 million, $13 million, and $17 million as a tax benefit related to stock awards and stock options for the years ended December 31, 2015, 2014, and 2013, respectively.
The Company recognized tax benefits for the years ended December 31, 2015, 2014, and 2013, of $41 million, $53 million, and $32 million, respectively, from the issuance of stock in settlement of stock awards, and $4 million, $5 million, and $4 million for the years ended December 31, 2015, 2014, and 2013, respectively, from the exercise of stock options.
Unrecognized Compensation Expense As of December 31, 2015, the Company had less than $1 million of unrecognized compensation expense associated with RSRs granted in 2015 and 2014, which will be recognized over a weighted average period of 1.0 year, and $25 million of unrecognized expense associated with RPSRs granted in 2015, 2014, and 2013, which will be recognized over a weighted average period of 0.6 years.
As of December 31, 2015, the Company had no unrecognized compensation expense related to stock options.
Compensation expense for stock options was fully recognized as of December 31, 2013.20.


| July 31, | (In millions) | Executive deferred compensation plan liabilities | Reserve for promotional discounts and rebates | Reserve for product returns | Current portion of license fee payable | Current portion of deferred rent | Current portion of dividend payable | Interest payable | Other | Total other current liabilities |


| As of December 31, 2018 As of December 31, 2017 | Notional | (in millions) | Financial assets with interest rate risk: | Fixed maturities-1 | Commercial mortgage and other loans | Derivatives with interest rate risk: | Swaps | Futures | Options | Forwards | Synthetic GICs | Variable annuity and other living benefit feature embedded derivatives-2 | Financial liabilities with interest rate risk-3: | Short-term and long-term debt | Policyholders’ account balances—investment contracts | Net estimated potential loss |


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


| Amount (In Millions) | 2015 net revenue | Retail electric price | Other | 2016 net revenue |


Impairment of Intangible Assets.
We did not record any impairment charges to our intangible assets during fiscal 2014, 2013, or 2012.


tax expense.
We adopted the provisions of this guidance as of May 1, 2009.
The adoption did not have a material impact on our consolidated financial statements.
In June 2008, the FASB issued guidance, under Topic 260 – Earnings Per Share, addressing whether instruments granted in share-based payment transactions are participating securities prior to vesting and, therefore, should be included in the process of allocating earnings for purposes of computing earnings per share (EPS).
We adopted the provisions of this guidance as of May 1, 2009.
The adoption and retrospective application of this guidance reduced basic EPS as previously reported for fiscal year 2009 by $0.01 and increased diluted EPS by $0.01 for fiscal year 2008.
See additional discussion in note 3.


| Years Ended December 31, | 2011 | (In millions) | Accumulated other comprehensive income (loss), balance at January 1, | Gains (losses) deferred in other comprehensive income (loss) on the effective portion of cash flow hedges | Amounts reclassified to net derivative gains (losses) | Amounts reclassified to net investment income | Amounts reclassified to other expenses | Amortization of transition adjustment | Accumulated other comprehensive income (loss), balance at December 31, | Derivatives in Cash Flow Hedging Relationships | Net Derivative Gains (Losses) | (In millions) | For the Year Ended December 31, 2011: | Interest rate swaps | Foreign currency swaps | Interest rate forwards | Credit forwards | Total | For the Year Ended December 31, 2010: | Interest rate swaps | Foreign currency swaps | Interest rate forwards | Credit forwards | Total | For the Year Ended December 31, 2009: | Interest rate swaps | Foreign currency swaps | Interest rate forwards | Credit forwards | Total |


| Options Outstanding Options Exercisable | Range ofExercise Prices | $3.09 — $9.99 | $10.00 — $19.99 | 21 | Options exercisable and expected to become exercisable | Change | 2014 | (In millions, except percentages and ratios) | New orders | Net sales | Book to bill ratio | Operating income (loss) | Operating margin | Non-GAAP Adjusted Results | Non-GAAP adjusted operating income (loss) | Non-GAAP adjusted operating margin |


| (Millions of Dollars) Con Edison Con Edison of New York O&R | 2004 | 2005 | 2006 | 2007 | 2008 |


| Millions 2010 2009 2008 % Change2010 v 2009 % Change2009 v 2008 | Compensation and benefits | Fuel | Purchased services and materials | Depreciation | Equipment and other rents | Other | Total |


| Payments Due by Period | (in thousands) | Global headquarters operating lease-1 | Other operating leases-2 | Unconditional purchase obligations-3 | Obligations related to uncertain tax positions, including interest and penalties-4 | Other long-term obligations-5 | Total contractual obligations |


| December 31, | 2009 | Loans and Securities Pledged: | Federal Reserve Bank | FHLB-Cincinnati | Total loans and securities pledged | Total unused borrowing capacity at Federal Reserve Bank and FHLB-Cincinnati |


Termination Indemnity Plans The Company operates in certain jurisdictions, primarily in Europe, which require the recording of statutory termination obligations.
These obligations were assessed in accordance with EITF 88-1, Determination of Vested Benefit Obligation for a Defined Benefit Pension Plan.
The total liability recorded for these obligations was $68 million at December 31, 2005 and $81 million at December 31, 2004.


| December 31, 2006  (In millions) | Fixed maturity securities | Equity securities | Deferred policy acquisition costs | Other assets | Total assets held-for-sale | Policyholder account balances | Total liabilities held-for-sale |


| December 31 | (Dollars in millions) | By counterparty-1 | GSEs | Monolines | Whole loan and private-label securitization investors and other-2 | Total outstanding claims by counterparty | By product type-1 | Prime loans | Alt-A | Home equity | Pay option | Subprime | Other | Total outstanding claims by product type |


| Thousands of Dt Delivered Revenues in Millions (a) | For the Years Ended | Description | Residential | General | Firm transportation | Total firm sales and transportation | Interruptible sales (c) | NYPA | Generation plants | Other | Other operating revenues (d) | Total |


| December 31 | (Dollars in millions) | Consumer | Residential mortgage | Home equity | Discontinued real estate | Direct/Indirect consumer | Other consumer | Total consumer-2 | Commercial | U.S. commercial | Commercial real estate | Commercial lease financing | Non-U.S. commercial | 6,223 | U.S. small business commercial | Total commercial-3 | Total nonperforming loans and leases | Foreclosed properties | Total nonperforming loans, leases and foreclosed properties-4 |


| Year ended December 31, | 2006 | (in millions) | Operating results: | Revenues | Expenses | Adjusted operating income | Equity in earnings of operating joint ventures-1 | Income from continuing operations before income taxes, equity in earnings of operating joint ventures, extraordinary gain on acquisition andcumulative effect of accounting change |


| Years ended December 31, 2017 2016 2015 | Net earnings | Non-cash items | Changes in working capital | Net cash provided by operating activities | Net cash used by investing activities | Net cash used by financing activities | Effect of exchange rate changes on cash and cash equivalents | Net decrease in cash and cash equivalents | Cash and cash equivalents at beginning of year | Cash and cash equivalents at end of period |


Registration Statements ?
In May 2006, we filed a shelf registration statement on Form S-3 that registered an indeterminate amount of debt securities.
This registration statement was effective immediately upon filing under Securities and Exchange Commission regulations governing well-known seasoned issuers (the WKSI Registration Statement).  ?
In August 2006, we issued $250 million of 5.3% Notes due September 1, 2011, and $250 million of 5.45% Notes due September 1, 2016.
These Notes were issued under the WKSI Registration Statement.  ?
In March 2008, we issued $250 million of 5.0% Notes due April 1, 2013.
The Notes were issued under the WKSI Registration Statement.  ?
Proceeds from the debt issuances and any other offerings under the WKSI Registration Statement may be used for general corporate requirements.
These may include reducing existing borrowings, financing capital additions, funding contributions to our pension plans, future business acquisitions and working capital requirements.


| IN MILLIONS 2007 2006 2005 | Boston Market | Revenues | Pretax income (loss) | Chipotle | Revenues | Pretax income |


| December 31, 2008 December 31, 2007 | Carrying amount | ($ in millions) | U.S. Government and agencies | States and political subdivisions | Non-U.S. governments | Corporate — public | Corporate — private | Residential pass-through securities | Commercial mortgage-backed securities | Residential collateralized mortgage obligations | Asset-backed securities | Total fixed maturity securities |


Cash Provided by Operating Activities For the year ended March 31, 2015, cash provided by operating activities consisted of net income of $113.7 million, less non-cash items of $65.7 million and cash used for working capital of $4.7 million.
The increase in net income in fiscal 2015 included a deferred income tax benefit of $87.1 million primarily due to the release of our valuation allowance on certain of our deferred tax assets and higher Impella product revenue due to greater utilization in the U. S.  and Europe.
Other non-cash items primarily consisted of $16.5 million of stock-based compensation expense, $2.8 million of depreciation and amortization of long-lived assets, $2.2 million of write-downs of inventory and a $0.5 million change in fair value of contingent consideration.
The decrease in cash from changes in working capital included an $8.0 million increase in accounts receivable from higher revenues, a $7.0 million increase in inventory to support growing demand for our Impella products, and a $1.5 million increase in prepaid expenses.
These amounts were partially offset by $9.4 million increase in accounts payable and accrued expenses due to increase in operating expenses as discussed above in Costs and Expenses and an increase in deferred revenue of $2.3 million primarily due to an increase in preventative maintenance service contracts as we expand the use of our Impella AIC consoles to additional sites.
For the year ended March 31, 2014, cash provided by operating activities consisted of net income of $7.4 million, adjustments for noncash items of $16.6 million and cash used for working capital of $0.5 million.
Adjustments for non-cash items primarily consisted of $11.2 million of stock-based compensation expense, $2.5 million of depreciation and amortization of long-lived assets, $2.0 million of write-downs of inventory and a $0.9 million change in deferred tax provision.
The decrease in cash from changes in working capital was primarily due to a $2.4 million increase in accounts receivable and prepaid expenses, partially offset by a $1.9 million decrease in accounts payable and accrued expenses mostly related to timing of vendor payments.
For the year ended March 31, 2013, cash provided by operating activities consisted of net income of $15.0 million, adjustments for noncash items of $14.2 million and cash used in working capital of $2.8 million.
Adjustments for non-cash items primarily consisted of $9.5 million of stock-based compensation expense, $2.7 million of depreciation and amortization of long-lived assets, $1.2 million of write-downs of inventory and a $0.8 million change in deferred tax provision.
The decrease in cash from changes in working capital was primarily due to a $2.9 million increase in accounts receivable and prepaid expenses, a $5.3 million increase in inventory and a $1.2 million increase in deferred revenue, partially offset by a $4.2 million decrease in accounts payable and accrued expenses mostly related to timing of vendor payments.


In connection with the acquisition of Temple-Inland in February 2012, two special purpose entities became wholly-owned subsidiaries of International Paper.
In October 2007, Temple-Inland sold 1.55 million acres of timberlands for $2.38 billion.
The total consideration consisted almost entirely of notes due in 2027 issued by the buyer of the timberlands, which Temple-Inland contributed to two wholly-owned, bankruptcy-remote special purpose entities.
The notes are shown in Financial assets of special purpose entities in the accompanying consolidated balance sheet and are supported by $2.38 billion of irrevocable letters of credit issued by three banks, which are required to maintain minimum credit ratings on their long-term debt.
In the third quarter of 2012, International Paper completed is preliminary analysis of the acquisition date fair value of the notes and determined it to be $2.09 billion.
As a result of this analysis, Financial assets of special purposed entities decreased by $292 million and Goodwill increased by the same amount.
As of December 31, 2012 , the fair value of the notes was $2.21 billion.
In December 2007, Temple-Inlands two whollyowned special purpose entities borrowed $2.14 billion shown in Nonrecourse financial liabilities of special purpose entities in the accompanying consolidated balance sheet.
The loans are repayable in 2027 and are secured only by the $2.38 billion of notes and the irrevocable letters of credit securing the notes and are nonrecourse to the Company.
The loan agreements provide that if a credit rating of any of the banks issuing the letters of credit is downgraded below the specified threshold, the letters of credit issued by that bank must be replaced within 30 days with letters of credit from another qualifying financial institution.
In the third quarter of 2012, International Paper completed its preliminary analysis of the acquisition date fair value of the borrowings and determined it to be $2.03 billion.
As a result of this analysis, Nonrecourse financial liabilities of special purpose entities decreased by $110 million and Goodwill decreased by the same amount.
As of December 31, 2012 , the fair value of this debt was $2.12 billion.
The buyer of the Temple-Inland timberland issued the $2.38 billion in notes from its wholly-owned, bankruptcy-remote special purpose entities.
The buyers special purpose entities held the timberlands from the transaction date until November 2008, at which time the timberlands were transferred out of the buyers special purpose entities.
Due to the transfer of the timberlands, Temple-Inland evaluated the buyers special purpose entities and determined that they were variable interest entities and that Temple-Inland was the primary beneficiary.
As a result, in 2008, Temple-Inland


The auction rate securities that the Company has invested in are typically re-auctioned every seven to twenty-eight days.
However, as a result of liquidity conditions affecting capital markets, particularly in the U. S. , specifically for asset-backed securities, every auction for the securities held by the Company over the last several months of 2007 failed.
Due to the failed auctions, the Company has recognized unrealized losses in other comprehensive income of $3.9 million ($2.4 million net of taxes) for the reduction in fair market value of these securities at December 31, 2007.
The Company believes that the decline in fair market value is indicative of the severe pressure from the sub-prime lending collapse that began during the second half of 2007, rather than specific concerns with respect to the issuers of the auction rate securities in which the Company has invested or the securities themselves.
The auction rate securities in which the Company has invested consist of debt instruments and perpetual preferred securities.
At December 31, 2007, Moody’s Investors Service’s ratings of these securities ranged from Aa to Aaa and Standard and Poor’s ratings ranged from AA to AAA.
The Company believes that the gross unrealized losses on these securities are temporary in nature and the Company has the intent and, it believes, the ability to hold these securities until they have recovered their cost basis.
The Company currently anticipates that the market for these securities will be re-established within 18 months of December 31, 2007, but it is possible that a recovery may occur beyond this time period.
The Company believes that it has sufficient liquidity to meet its operating cash needs without the sale of these securities.
As a result of the factors discussed above, the Company has classified these investments as non-current assets on the consolidated balance sheet at December 31, 2007.
At December 31, 2006, the Company’s available-for-sale investments consisted of $33.9 million of auction rate securities, which were investments in preferred stock with no maturity dates and were included in current assets on the consolidated balance sheet at December 31, 2006.
The fair value of these investments was equal to their cost.
preferred stock was convertible into 0.885 shares of the Company’s common stock.
These authorizations comprised a single program, which had no set expiration date.
As of the close of business on July 31, 2007, the Company had been authorized to repurchase 33,954,294 shares of the Company’s common stock under that program, and it had repurchased 30,969,142 shares (including preferred shares on an as-converted basis), leaving 2,985,152 shares of common stock authorized for repurchase under the program.
On August 9, 2007, the Company announced that its Board of Directors had approved a new share repurchase program, authorizing the Company to repurchase in the aggregate up to 20 million shares of its issued and outstanding common stock.
This new program replaced the Company’s prior share repurchase program discussed above, which was terminated.
Through December 31, 2007, the Company had not repurchased any shares of the Company’s common stock under the new program, leaving the entire 20 million shares of common stock authorized for repurchase under the new program.
The new program has no set expiration date.


Note 3  Information on Business Segments We organize our business segments based on the nature of the products and services offered.
Effective December 31, 2012, we operate in five business segments: Aeronautics, Information Systems & Global Solutions (IS&GS), Missiles and Fire Control (MFC), Mission Systems and Training (MST), and Space Systems.
This structure reflects the reorganization of our former Electronic Systems business segment into the new MFC and MST business segments in order to streamline our operations and enhance customer alignment.
In connection with this reorganization, management layers at our former Electronic Systems business segment and our former Global Training and Logistics (GTL) business were eliminated, and the former GTL business was split between the two new business segments.
In addition, operating results for Sandia Corporation, which manages the Sandia National Laboratories for the U. S.  Department of Energy, and our equity interest in the U. K.  Atomic Weapons Establishment joint venture were transferred from our former Electronic Systems business segment to our Space Systems business segment.
The amounts, discussion, and presentation of our business segments reflect this reorganization for all years presented in this Annual Report on Form 10-K.
The following is a brief description of the activities of our business segments: ° Aeronautics  Engaged in the research, design, development, manufacture, integration, sustainment, support, and upgrade of advanced military aircraft, including combat and air mobility aircraft, unmanned air vehicles, and related technologies.
° Information Systems & Global Solutions  Provides management services, integrated information technology solutions, and advanced technology systems and expertise across a broad spectrum of applications for civil, defense, intelligence, and other government customers.
° Missiles and Fire Control  Provides air and missile defense systems; tactical missiles and air-to-ground precision strike weapon systems; fire control systems; mission operations support, readiness, engineering support, and integration services; logistics and other technical services; and manned and unmanned ground vehicles.
° Mission Systems and Training  Provides surface ship and submarine combat systems; sea and land-based missile defense systems; radar systems; mission systems and sensors for rotary and fixed-wing aircraft; littoral combat ships; simulation and training services; unmanned technologies and platforms; ship systems integration; and military and commercial training systems.
° Space Systems  Engaged in the research and development, design, engineering, and production of satellites, strategic and defensive missile systems, and space transportation systems.
Space Systems is also responsible for various classified systems and services in support of vital national security systems.
Operating results for our Space Systems business segment include our equity interests in United Launch Alliance, which provides expendable launch services for the U. S.  Government, United Space Alliance, which provided processing activities for the Space Shuttle program and is winding down following the completion of the last Space Shuttle mission in 2011, and a joint venture that manages the U. K. s Atomic Weapons Establishment program.


| Year Ended December 31, | 2017 | Consolidated Statement of Income Data-1 | Revenues: | Transaction and clearing, net-2 | Data services | Listings | Other revenues | Total revenues | Transaction-based expenses-2 | Total revenues, less transaction-based expenses | Operating expenses: | Compensation and benefits | Professional services | Acquisition-related transaction and integration costs-3 | Technology and communication | Rent and occupancy | Selling, general and administrative | Depreciation and amortization | Total operating expenses | Operating income | Other income (expense), net(4) | Income from continuing operations before income tax expense (benefit) | Income tax expense (benefit)(5) | Income from continuing operations | Income (loss) from discontinued operations, net of tax(6) | Net income | Net income attributable to non-controlling interest | Net income attributable to ICE-7 | Basic earnings (loss) per share attributable to ICE common shareholders: | Continuing operations-7 | Discontinued operations-6 | Basic earnings per share | Basic weighted average common shares outstanding-8 | Diluted earnings (loss) per share attributable to ICE common shareholders: | Continuing operations-7 | Discontinued operations-6 | Diluted earnings per share | Diluted weighted average common shares outstanding-8 | Dividend per share |


| Property: Occupied Square Footage Lease Expiration Dates | 4 Overlook Point and other locations, Lincolnshire, Illinois | 2601 Research Forest Drive, The Woodlands, Texas | 2300 Discovery Drive, Orlando, Florida | Devonshire Square and other locations, London, UK | 199 Water Street, New York, New York | 1000 N. Milwaukee Avenue, Glenview, Illinois | 7201 Hewitt Associates Drive, Charlotte, North Carolina |


| In millions December 31, 2009 2008 | Land | Buildings and improvements on owned land | Buildings and improvements on leased land | Equipment, signs and seating | Other | 33,440.5 | Accumulated depreciation and amortization | Net property and equipment |


As of December 31, 2016, the book value of our equity method investments exceeded our share of the book value of the investees underlying net assets by approximately $200 million, which represents amortizable intangible assets and in-process research and development, corresponding deferred tax liabilities, and goodwill.
The net losses from our equity method adjustments, presented within the Other, net caption of our consolidated statement of operations were $17 million in 2016 and were immaterial in 2015 and 2014.


| Millions, Except Percentages 2011 2010 2009 | Net income | Average equity | Return on average commonshareholders’ equity |


| Contingent consideration | 2014 | (Dollars in thousands) | Beginning balance – January 1 | Initial estimate upon acquisition | Payment | Revaluations | Translation adjustment | Ending balance – December 31 |


Home Loans & Insurance Impairment During the three months ended December 31, 2010, the Corporation performed an impairment test for the Home Loans & Insurance reporting unit as it was likely that there was a decline in its fair value as a result of increased uncertainties, including existing and potential litigation exposure and other potential risks, higher current servicing costs including loss mitigation efforts, foreclosure related issues and the redeployment of centralized sales resources to address servicing needs.
In step one of the goodwill impairment test, the fair value of Home Loans & Insurance was estimated based on a combination of the market approach and the income approach.
Under the market approach valuation, significant assumptions included market multiples and a control premium.
The significant assumptions for the valuation of Home Loans & Insurance under the income approach included cash flow estimates, the discount rate and the terminal value.
These assumptions were updated to reflect the current strategic plan forecast and to address the increased uncertainties referenced above.
Based on the results of step one of the impairment test, the Corporation determined that the carrying amount of Home Loans & Insurance, including goodwill, exceeded the fair value.
The carrying amount, fair value and goodwill for the Home Loans & Insurance reporting unit were $24.7 billion, $15.1 billion and $4.8 billion, respectively.
Accordingly, the Corporation per formed step two of the goodwill impairment test for this reporting unit.
In step two, the Corporation compared the implied fair value of the reporting units goodwill with the carrying amount of that goodwill.
Under step two of the goodwill impairment test, significant assumptions in measuring the fair value of the assets and liabilities of the reporting Intangible Assets unit including discount rates, loss rates and interest rates were updated to reflect the current economic conditions.
Based on the results of step two of the impairment test, the carrying value of the goodwill assigned to Home Loans & Insurance exceeded the implied fair value by $2.0 billion.
Accordingly, the Corporation recorded a non-cash, non-tax deductible goodwill impairment charge of $2.0 billion as of December 31, 2010 to reduce the carrying value of goodwill in the Home Loans & Insurance reporting unit.
Intangible Assets The table below presents the gross carrying amounts and accumulated amortization related to intangible assets at December 31, 2010 and 2009.


| December 31, | 2009 | (millions) | Materials and Supplies | Crude Oil | Total |


| December 31 2008 2007 | Inventory | Accrued liabilities and allowances | Employee benefits | Capitalized items | Tax basis differences on investments | Depreciation tax basis differences on fixed assets | Undistributednon-U.S.earnings | Tax carryforwards | Available-for-sale securities | Business reorganization | Warranty and customer reserves | Deferred revenue and costs | Valuation allowances | Deferred charges | Other | $3,471 |


Self-Insurance Certain insurable risks such as general liability, medical and workers compensation are self-insured by the Company up to certain limits.
Undiscounted accruals for claims under the Companys self-insurance program are based on claims filed and estimates for claims incurred but not yet reported.


For each of the Companies, the common equity ratio for the last five years was:


Michael A.  Vitelli was named Executive Vice President, President — Americas in March 2010.
He previously served as Executive Vice President — Customer Operating Groups since March 2008.
Mr.  Vitelli joined us in February 2004 and has held positions such as Senior Vice President and General Manager of Home Solutions.
Prior to joining us, he spent 23 years with Sony Electronics, Inc. , serving in positions of increasing responsibility including executive vice president of Sony’s Visual Products Company.
Mr.  Vitelli serves on the boards of the National Multiple Sclerosis Society, Minnesota Chapter, and the National Consumer Technology Industry chapter of the Anti-Defamation League, where he serves as the industry chair.


Performance of the Company’s obligations under the senior notes, including any repurchase obligations resulting from a change of control, is unconditionally guaranteed, jointly and severally, on an unsecured basis, by each of HII’s existing and future domestic restricted subsidiaries that guarantees debt under the Credit Facility (the “Subsidiary Guarantors”).
The guarantees rank equally with all other unsecured and unsubordinated indebtedness of the guarantors.
The Subsidiary Guarantors are each directly or indirectly 100% owned by HII.
There are no significant restrictions on the ability of HII or any Subsidiary Guarantor to obtain funds from their respective subsidiaries by dividend or loan.
Mississippi Economic Development Revenue Bonds—As of December 31, 2011 and 2010, the Company had $83.7 million outstanding from the issuance of Industrial Revenue Bonds issued by the Mississippi Business Finance Corporation.
These bonds accrue interest at a fixed rate of 7.81% per annum (payable semi-annually) and mature in 2024.
While repayment of principal and interest is guaranteed by Northrop Grumman Systems Corporation, HII has agreed to indemnify Northrop Grumman Systems Corporation for any losses related to the guaranty.
In accordance with the terms of the bonds, the proceeds have been used to finance the construction, reconstruction, and renovation of the Company’s interest in certain ship manufacturing and repair facilities, or portions thereof, located in the state of Mississippi.
Gulf Opportunity Zone Industrial Development Revenue Bonds—As of December 31, 2011 and 2010, the Company had $21.6 million outstanding from the issuance of Gulf Opportunity Zone Industrial Development Revenue Bonds (“GO Zone IRBs”) issued by the Mississippi Business Finance Corporation.
The GO Zone IRBs were initially issued in a principal amount of $200 million, and in November 2010, in connection with the anticipated spin-off, HII purchased $178 million of the bonds using the proceeds from a $178 million intercompany loan from Northrop Grumman.
See Note 20: Related Party Transactions and Former Parent Company Equity.
The remaining bonds accrue interest at a fixed rate of 4.55% per annum (payable semi-annually), and mature in 2028.
In accordance with the terms of the bonds, the proceeds have been used to finance the construction, reconstruction, and renovation of the Company’s interest in certain ship manufacturing and repair facilities, or portions thereof, located in the state of Mississippi.
The estimated fair value of the Company’s total long-term debt, including current portions, at December 31, 2011 and 2010, was $1,864 million and $128 million, respectively.
The fair value of the total long-term debt was calculated based on recent trades for most of the Company’s debt instruments or based on interest rates prevailing on debt with substantially similar risks, terms and maturities.
The aggregate amounts of principal payments due on long-term debt for each of the next five years and thereafter are:


Gain on disposition of assets in 2010 included pretax gains of $40 million from the sale of certain British Columbia forest licenses and associated rights, $13 million from the sale of closed facilities, $4 million from the sale of a sawmill and $4 million from the sale of distribution centers.
The $163 million pretax gain on sale of non-strategic timberlands in 2009 resulted from the sale of 140,000 acres in northwestern Oregon.
The total pretax gain on the 2008 sale of our Australian operations was $218 million; $212 million was recorded in other operating income, net and $6 million was recorded in equity in income of affiliates.
The full $218 million is presented on the Consolidated Statement of Operations as earnings from discontinued operations, net of taxes.
Foreign exchange (gains) losses result from changes in exchange rates primarily related to our Canadian operations.
Net Operating Loss Carryforwards Our state and foreign net operating loss carryforwards as of the end of 2010 are as follows: ?$488 million, which expire from 2011 through 2030; and ?$130 million, which do not expire.
Valuation Allowances With the exception of the valuation allowance discussed below, we believe it is more likely than not that we will have sufficient future taxable income to realize our deferred tax assets.
Our valuation allowance on our deferred tax assets was $120 million as of the end of 2010.
This primarily related to foreign net operating losses and state and provincial credits.
Total changes in our valuation allowance over the last year were: ?$17 million net increase in 2010.
This net increase resulted primarily from: – $2 million increase due to foreign exchange; – $10 million increase due to the change in expectations of future use of state credits and net operating loss carryforwards; and – $5 million increase due to additional foreign losses.
Reinvestment of Undistributed Earnings We have approximately $22 million in undistributed earnings from our foreign subsidiaries as of the end of 2010.
We have reinvested our foreign undistributed earnings; therefore they are not subject to U. S.  income taxes.
Generally, such earnings become subject to U. S.  tax upon the remittance of dividends and under certain other circumstances.
It is not practicable to estimate the amount of deferred tax liability on such undistributed earnings.
HOW WE ACCOUNT FOR INCOME TAXES The Income Taxes section of Note 1: Summary of Significant Accounting Policies provides details about how we account for our income taxes.
UNRECOGNIZED TAX BENEFITS Unrecognized tax benefits represent potential future funding obligations to taxing authorities if uncertain tax positions we have taken on previously filed tax returns are not sustained.
The total amount of unrecognized tax benefits as of December 31, 2010, and December 31, 2009, are $180 million and $170 million, respectively, which does not include related interest of $30 million and $23 million, respectively.
These amounts represent the gross amount of exposure in individual jurisdictions and do not reflect any additional benefits expected to be realized if such positions were not sustained, such as the federal deduction that could be realized if an unrecognized state deduction was not sustained.
Reconciliation of the Beginning and Ending Amount of Unrecognized Tax Benefits


| As of September 30, | 2013 | Construction in Progress and Finished Homes | (In millions) | East | Midwest | Southeast | South Central | Southwest | West | Corporate and unallocated -1 | $2,498.0 |


| Consolidated Statement of Income Data: Years Ended June 30 | (In thousands, except per share data) | Net revenues | Cost of sales | Product recall expenses | Gross profit | Selling, general and administrative expenses | Research and development expenses | Donations to research foundations | In-process research and development charge | Amortization of acquired intangible assets | Restructuring expenses | Total operating expenses | Income from operations | Other income (expenses): | Interest income (expense), net | Other, net | Total other income (expenses) | Income before income taxes | Income taxes | Net income | Basic earnings per share | Diluted earnings per share | Weighted average: | Basic shares outstanding | Diluted shares outstanding |


United Kingdom.
Bermuda Re’s UK branch conducts business in the UK and is subject to taxation in the UK.
Bermuda Re believes that it has operated and will continue to operate its Bermuda operation in a manner which will not cause them to be subject to UK taxation.
If Bermuda Re’s Bermuda operations were to become subject to UK income tax, there could be a material adverse impact on the Company’s financial condition, results of operations and cash flow.
Ireland.
Holdings Ireland and Ireland Re conduct business in Ireland and are subject to taxation in Ireland.
Available Information.
The Company’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8- K, proxy statements and amendments to those reports are available free of charge through the Company’s internet website at http://www.
everestre.
com as soon as reasonably practicable after such reports are electronically filed with the Securities and Exchange Commission (the “SEC”).
ITEM 1A.
RISK FACTORS In addition to the other information provided in this report, the following risk factors should be considered when evaluating an investment in our securities.
If the circumstances contemplated by the individual risk factors materialize, our business, financial condition and results of operations could be materially and adversely affected and the trading price of our common shares could decline significantly.
RISKS RELATING TO OUR BUSINESS Fluctuations in the financial markets could result in investment losses.
Prolonged and severe disruptions in the public debt and equity markets, such as occurred during 2008, could result in significant realized and unrealized losses in our investment portfolio.
For the year ended December 31, 2008, we incurred $695.8 million of realized investment gains and $310.4 million of unrealized investment losses.
Although financial markets significantly improved during 2009 and 2010, they could deteriorate in the future and again result in substantial realized and unrealized losses, which could have a material adverse impact on our results of operations, equity, business and insurer financial strength and debt ratings.
Our results could be adversely affected by catastrophic events.
We are exposed to unpredictable catastrophic events, including weather-related and other natural catastrophes, as well as acts of terrorism.
Any material reduction in our operating results caused by the occurrence of one or more catastrophes could inhibit our ability to pay dividends or to meet our interest and principal payment obligations.
Subsequent to April 1, 2010, we define a catastrophe as an event that causes a loss on property exposures before reinsurance of at least $10.0 million, before corporate level reinsurance and taxes.
Prior to April 1, 2010, we used a threshold of $5.0 million.
By way of illustration, during the past five calendar years, pre-tax catastrophe losses, net of contract specific reinsurance but before cessions under corporate reinsurance programs, were as follows:


| 2008 2007 | AAA-1 | AA | A | BBB | BB | Non-rated | 100% |


| Amount (In Thousands) | 2009 | 2010 | 2011 | 2012 | 2013 | Years thereafter | Total | Less: Amount representing interest | Present value of net minimum lease payments | 2006 | Property Type | Senior housing | Medical office building | Total | VIE Type | VIE tenants—operating leases | VIE tenants—DFLs | Senior secured loans | Mezzanine loans |


| 2018 2017 | Carrying Amount at Beginning of Period | Liabilities Incurred | Liabilities Settled-1 | Accretion | Revisions | Foreign Currency Translations | Carrying Amount at End of Period | Current Portion | Noncurrent Portion |


| Shares Granted | Vesting Period | Two years | Three years | Four years | Five years | Ten years | Total shares granted |


| ($ in millions)Reporting Segment Fiscal 2014 Net Sales Fiscal 2013 Net Sales % Inc(Dec) | Consumer Foods | Commercial Foods | Private Brands | Total |


| 2018 2017 2016 | (In thousands) | Residential | Commercial | Fire service | Industrial | Public and other(a) | Total |


window.
Whether specific assets will be considered qualifying collateral and the amount that may be borrowed against the collateral, remain at the discretion of the Federal Reserve.
We had approximately $57.0 billion as of December 31, 2016 in U. S.  credit card loans and charge card receivables that could be sold over time through our securitization trusts or pledged in return for secured borrowings to provide further liquidity, subject in each case to applicable market conditions and eligibility criteria.
Committed Bank Credit Facility In addition to the secured borrowing facilities described earlier in this section, we maintained a committed syndicated bank credit facility as of December 31, 2016 of $3.0 billion, which expires on December 9, 2018.
The availability of this credit line is subject to our compliance with certain financial covenants, principally the maintenance by American Express Credit Corporation (Credco) of a certain ratio of combined earnings and fixed charges to fixed charges.
As of December 31, 2016, we were in compliance with each of our covenants.
As of December 31, 2016, no amounts were drawn on the committed credit facility.
The capacity of the facility mainly served to further enhance our contingent funding resources.
Our committed bank credit facility does not contain a material adverse change clause, which might otherwise preclude borrowing under the credit facility, nor is it dependent on our credit rating.


| 2007 2006 2005 | Beginning accrued warranty and related costs | Cost of warranty claims | Accruals for product warranties | Ending accrued warranty and related costs |


| Declaration Date Record Date Payment Date Dividend Per Share | January 30, 2019 | October 24, 2018 | July 26, 2018 | April 25, 2018 | January 31, 2018 |


| (for the year ended December 31, in millions) 2007 2006 2005 | Average investments(a) | Pretax net investment income | After-tax net investment income | Average pretax yield(b) | Average after-tax yield(b) |


| In Billions Facility Amount Borrowed Amount | Credit facility expiring: | April 2017 | May 2019 | Total committed credit facilities | Uncommitted credit facilities | Total committed and uncommitted credit facilities |


| As of or For the Year Ended December 31, Variance 2013 vs. 2012 | 2013 | Customer Activity Metrics:-1 | DARTs | Average commission per trade | Margin receivables (dollars in billions) | End of period brokerage accounts | Net new brokerage accounts | Brokerage account attrition rate | Customer assets (dollars in billions) | Net new brokerage assets (dollars in billions) | Brokerage related cash (dollars in billions) | Company Metrics: | Corporate cash (dollars in millions) | E*TRADE Financial Tier 1 leverage ratio-2 | E*TRADE Financial Tier 1 common ratio-2 | E*TRADE Bank Tier 1 leverage ratio-3 | Special mention loan delinquencies (dollars in millions) | Allowance for loan losses (dollars in millions) | Enterprise net interest spread | Enterprise interest-earning assets (average dollars in billions) | Total employees (period end) |