higher in the fiscal 2013 period, including about $100 million for higher staffing expenses, about $60 million for higher advertising and other marketing program expenses, and about $23 million for higher share-based compensation expenses.
See “Cost of Revenue” and “Operating Expenses” later in this Item 7 for more information.
Net income from continuing operations increased 8% in fiscal 2013 compared with fiscal 2012 due to higher operating income and lower interest expense due to the repayment of debt in March 2012.
Diluted net income per share from continuing operations for fiscal 2013 increased 8% to $2.72, in line with the increase in net income compared with fiscal 2012.
Segment Results The information below is organized in accordance with our three reportable segments.
All of our segments operate primarily in the United States and sell primarily to customers in the United States.
International total net revenue was approximately 5% of consolidated total net revenue for all periods presented.
Segment operating income is segment net revenue less segment cost of revenue and operating expenses.
Segment expenses do not include certain costs, such as corporate selling and marketing, product development, and general and administrative expenses and share-based compensation expenses, which are not allocated to specific segments.
These unallocated costs totaled $890 million in fiscal 2014, $809 million in fiscal 2013, and $724 million in fiscal 2012.
Unallocated costs increased in fiscal 2014 compared with fiscal 2013 and in fiscal 2013 compared with fiscal 2012 due to increases in corporate product development and selling and marketing expenses in support of the growth of our businesses and to a lesser extent due to increases in share-based compensation expenses.
Segment expenses also do not include amortization of acquired technology, amortization of other acquired intangible assets, and goodwill and intangible asset impairment charges.
See Note 14 to the financial statements in Item 8 of this Annual Report for reconciliations of total segment operating income to consolidated operating income from continuing operations for each fiscal year presented.
We calculate revenue growth rates and segment operating margin figures using dollars in thousands.
Those results may vary slightly from figures calculated using the dollars in millions presented.


| 2009 2008 2007 | (Dollars in millions) | Net interest income-3 | Noninterest income: | Card income (loss) | Equity investment income | Gains on sales of debt securities | All other income (loss) | Total noninterest income | Total revenue, net of interest expense | Provision for credit losses | Merger and restructuring charges | All other noninterest expense | Income (loss) before income taxes | Income tax expense (benefit)(3) | Net income (loss) |


Entergy Texas Securitization Bonds - Hurricane Rita In April 2007 the PUCT issued a financing order authorizing the issuance of securitization bonds to recover $353 million of Entergy Texas’s Hurricane Rita reconstruction costs and up to $6 million of transaction costs, offset by $32 million of related deferred income tax benefits.
In June 2007, Entergy Gulf States Reconstruction Funding I, LLC, a company that is now wholly-owned and consolidated by Entergy Texas, issued $329.5 million of senior secured transition bonds (securitization bonds) as follows:


| As reported under Topic 606 Adjustments Balances under Prior GAAP | (In thousands) | Net income | Adjustments to reconcile net income to net cash provided by operating activities: | Deferred income taxes | Changes in operating assets and liabilities: | Receivables | Prepaid expenses and other | Other assets | Accounts payable and accrued liabilities | Deferred revenue |


| December 31, 2009 | Less than 12 Months | Estimated | Fair | Value | (In millions, except number of securities) | Fixed Maturity Securities: | U.S. corporate securities | RMBS | Foreign corporate securities | U.S. Treasury, agency and government guaranteed securities | CMBS | ABS | Foreign government securities | State and political subdivision securities | Other fixed maturity securities | Total fixed maturity securities | Equity Securities: | Common stock | Non-redeemable preferred stock | Total equity securities | Total number of securities in an unrealized loss position |


Restructuring Accruals have been recorded in conjunction with our restructuring actions.
These accruals include estimates primarily related to employee termination costs, contract termination costs and other related exit costs in conjunction with workforce reduction and programs related to the rationalization of manufacturing and engineering processes.
Actual costs may vary from these estimates.
These accruals are reviewed on a quarterly basis and changes to restructuring actions are appropriately recognized when identified.


Purchases of Equity Securities The following table provides information about our repurchases of our common stock registered pursuant to Section 12 of the Exchange Act during the quarter ended December 31, 2016.
(a) We close our books and records on the last Sunday of each month to align our financial closing with our business processes, except for the month of December, as our fiscal year ends on December 31.
As a result, our fiscal months often differ from the calendar months.
For example, September 26, 2016 was the first day of our October 2016 fiscal month.
(b) In October 2010, our Board of Directors approved a share repurchase program pursuant to which we are authorized to repurchase our common stock in privately negotiated transactions or in the open market at prices per share not exceeding the then-current market prices.
On September 22, 2016, our Board of Directors authorized a $2.0 billion increase to the program.
Under the program, management has discretion to determine the dollar amount of shares to be repurchased and the timing of any repurchases in compliance with applicable law and regulation.
This includes purchases pursuant to Rule 10b5-1 plans.
The program does not have an expiration date.
(c) During the quarter ended December 31, 2016, the total number of shares purchased included 11,393 shares that were transferred to us by employees in satisfaction of minimum tax withholding obligations associated with the vesting of restricted stock units.
These purchases were made pursuant to a separate authorization by our Board of Directors and are not included within the program.


| Change | Years Ended June 30, | 2009 | ($ in millions) | Investor Communication Solutions | Securities Processing Solutions | Clearing and Outsourcing Solutions | Other | Foreign currency exchange | Earnings before income taxes |


| Fair value of plan assets at beginning of year $10,269 $10,605 $3,787 $3,470 | Actual return on plan assets | Acquisitions/(divestitures)(4) | Employer contributions | Participants' contributions | Currency translation and other | ESOP debt impacts-5 | Benefit payments | FAIR VALUE OF PLAN ASSETS AT END OF YEAR | Reclassification of net obligation to held for sale liabilities | FUNDED STATUS |


| December 31, 2011 – in millions Domestic Certificates of Deposit | Three months or less | Over three through six months | Over six through twelve months | Over twelve months | Total |


| For the fiscal years ended October 31 | 2009 | In millions | Net revenue | Earnings from operations | Earnings from operations as a % of net revenue |


| 2004 $77,622 | 2005 | 2006 | 2007 | 2008 | Thereafter | Total cash obligations | Accreted value of original issue discount of the ATI 12.25% Notes | Accreted value of the related warrants | Balance as of December 31, 2003 |


(7) Financing Arrangements At December 25, 2016, Hasbro had available an unsecured committed line and unsecured uncommitted lines of credit from various banks approximating $700,000 and $128,000, respectively.
All of the short-term borrowings outstanding at the end of 2016 and 2015 represent borrowings made under, or supported by, these lines of credit.
Borrowings under the lines of credit were made by certain international affiliates of the Company on terms and at interest rates generally extended to companies of comparable creditworthiness in those markets.
The weighted average interest rates of the outstanding borrowings under the uncommitted lines of credit as of December 25, 2016 and December 27, 2015 were 8.17% and 3.97%, respectively.
The Company had no borrowings outstanding under its committed line of credit at December 25, 2016.
During 2016, Hasbro’s working capital needs were fulfilled by cash generated from operations, borrowings under lines of credit and utilization of its commercial paper program discussed below.
The unsecured committed line of credit, as amended on March 30, 2015 (the “Agreement”), provides the Company with a $700,000 committed borrowing facility through March 30, 2020.
The Agreement contains certain financial covenants setting forth leverage and coverage requirements, and certain other limitations typical of an investment grade facility, including with respect to liens, mergers and incurrence of indebtedness.
The Company was in compliance with all covenants as of and for the year ended December 25, 2016.
The Company pays a commitment fee (0.12% as of December 25, 2016) based on the unused portion of the facility and interest equal to a Base Rate or Eurocurrency Rate plus a spread on borrowings under the facility.


| 2014 2013 2012 | Computed expected tax | State taxes, net of federal effect | Indefinitely invested earnings of foreign subsidiaries | Research and development credit, net | Domestic production activities deduction | Other | Provision for income taxes | Effective tax rate |


| For the years ended December 31, | 2012 | (Dollars in thousands) | Production costs | Employee-related costs | Operating supplies and services | Maintenance materials and services | Other | Total |


CASH FLOWS The Company generates signifi cant cash from operations and has substantial credit capacity to fund operating and discretionary spending such as capital expenditures, dividends, share repurchases and debt repayments.
Cash provided by operations totaled $4.9 billion and exceeded capital expenditures by $2.9 billion in 2007, while cash provided by operations totaled $4.3 billion and exceeded capital expenditures by $2.6 billion in 2006.
In 2007, cash provided by operations increased $535 million compared to 2006 primarily due to increased operating results and lower income tax payments.
In 2006, cash provided by operations was fl at compared to 2005 due to increased operating results, offset by changes in working capital primarily due to higher income tax payments.
Cash used for investing activities totaled $1.2 billion in 2007, a decrease of $124 million compared to 2006, primarily due to net proceeds received from the Latam transaction and the sale of Boston Market in 2007, partly offset by higher capital expen ditures in 2007.
Cash used for investing activities totaled $1.3 billion in 2006, a decrease of $544 million compared to 2005.
The increase in capital expenditures was more than offset by the proceeds from the disposition of Chipotle as well as the sales of short-term investments.
Cash used for fi nancing activities totaled $4.0 billion in 2007, a decrease of $1.5 billion compared to 2006, primarily due to higher net debt issuances, partly offset by higher treasury stock purchases and an increase in the common stock dividend in 2007 compared to 2006.
In 2006, cash used for fi nancing activities totaled $5.5 billion compared to cash provided by fi nancing activities of $442 million in 2005.
The 2006 activity refl ected higher shares repurchased, higher net debt repayments and an increase in the common stock dividend.
As a result of the above activity, the Companys cash and equivalents balance decreased $147 million in 2007 to $2.0 billion, compared to a decrease of $2.1 billion in 2006.
In addition to cash and equivalents and cash provided by operations, the Company can meet short-term funding needs through commercial paper borrowings and line of credit agreements.


| As of April 30, 2016 April 30, 2015 | Short-term | Moody's | S&P-1 |


| 2006 | Net revenue | Net income | Net income per share—basic | Net income per share—assuming dilution | Payments Due by Period | Contractual Obligations | Long-Term Debt Obligations | Interest on Long-Term Debt Obligations | Operating Leases | Purchase Obligations -1 | Financing Leases | Long-Term Supply Contracts -2 | Private Equity Investment -3 | Total Contractual Obligations |


| Fiscal 2008 $1,977 | Fiscal 2009 | Fiscal 2010 | Fiscal 2011 | Fiscal 2012 | Thereafter | Total |


Contractual Obligations In 2011, we issued $1,200 million of senior notes and entered into the Credit Facility with third-party lenders in the amount of $1,225 million.
As of December 31, 2011, total outstanding long-term debt was $1,859 million, consisting of these senior notes and the Credit Facility, in addition to $105 million of third party debt that remained outstanding subsequent to the spin-off.
In connection with the spin-off, we entered into a Transition Services Agreement with Northrop Grumman, under which Northrop Grumman or certain of its subsidiaries provides us with certain services to help ensure an orderly transition following the distribution.
Under the Transition Services Agreement, Northrop Grumman provides, for up to 12 months following the spin-off, certain enterprise shared services (including information technology, resource planning, financial, procurement and human resource services), benefits support services and other specified services.
The original term of the Transition Services Agreement ends on March 31, 2012, although we have the right to and have cancelled certain services as we transition to new third-party providers.
The services provided by Northrop Grumman are charged to us at cost, and a limited number of these services may be extended for a period of approximately six months to allow full information systems transition.
See Note 20: Related Party Transactions and Former Parent Company Equity in Item 8.
In connection with the spin-off, we entered into a Tax Matters Agreement with Northrop Grumman (the Tax Matters Agreement) that governs the respective rights, responsibilities and obligations of Northrop Grumman and us after the spin-off with respect to tax liabilities and benefits, tax attributes, tax contests and other tax sharing regarding U. S.  federal, state, local and foreign income taxes, other taxes and related tax returns.
We have several liabilities with Northrop Grumman to the IRS for the consolidated U. S.  federal income taxes of the Northrop Grumman consolidated group relating to the taxable periods in which we were part of that group.
However, the Tax Matters Agreement specifies the portion of this tax liability for which we will bear responsibility, and Northrop Grumman has agreed to indemnify us against any amounts for which we are not responsible.
The Tax Matters Agreement also provides special rules for allocating tax liabilities in the event that the spin-off, together with certain related transactions, is not tax-free.
See Note 20: Related Party Transactions and Former Parent Company Equity in Item 8.
We do not expect either the Transition Services Agreement or the Tax Matters Agreement to have a significant impact on our financial condition and results of operations.


In the second quarter of 2002, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards No.145 “Rescission of FASB Statements No.4, 44, and 64, Amendment of FASB Statement No.13, and Technical Corrections” (“SFAS No.145”).
Effective January 1, 2003, Marathon adopted the provisions relating to the classification of the effects of early extinguishment of debt in the consolidated statement of income.
As a result, losses of $53 million from the early extinguishment of debt in 2002, which were previously reported as an extraordinary item (net of tax of $20 million), have been reclassified into income before income taxes.
The adoption of SFAS No.145 had no impact on net income for 2002.


Selling and Marketing Expenses.
Selling and marketing expenses increased 12% in fiscal 2012 compared to fiscal 2011.
These increases were primarily due to additional expenses from the inclusion of Gen-Probe, which accounted for $8.4 million of additional expense, and the inclusion of TCT for a full year, an increase in the number of sales personnel in the GYN Surgical business segment, an increase in compensation and benefits and higher commissions, continuing product launch activities related to our 3D Dimensions product, and higher travel expenses.
These expenses were also higher due to the extra week in fiscal 2012 compared to fiscal 2011.
The increase in fiscal 2012 was partially offset by lower expenditures for our direct-to-consumer advertising campaign for NovaSure.


| 2008 2007 2006 2005 | $42,915 | 30 September 2014 | Gross | Customer relationships | Patents and technology | Other | Total finite-lived intangibles | Trade names and trademarks, indefinite-lived | Total Intangible Assets |


| Actual as of | Covenant | Requirement | Maximum leverage ratio -1 | Minimum interest coverage ratio -2 |


Common Stock Repurchase Program The Company’s common stock repurchase program has been in place since August 2004.
In the aggregate, the Board of Directors has authorized the Company to repurchase $5 billion of the Company’s common stock under the program.
Under the program, the Company may repurchase outstanding shares of its common stock from time to time in the open market and through privately negotiated transactions.
Unless terminated earlier by resolution of the Company’s Board of Directors, the repurchase program will expire when the Company has repurchased all shares authorized under the program.
As of October 29, 2011, the Company had repurchased a total of approximately 125.0 million shares of its common stock for approximately $4,278.5 million under this program.
An additional $721.5 million remains available for repurchase of shares under the current authorized program.
The repurchased shares are held as authorized but unissued shares of common stock.
Any future common stock repurchases will be dependent upon several factors, including the amount of cash available to the Company in the United States and the Company’s financial performance, outlook and liquidity.
The Company also from time to time repurchases shares in settlement of employee tax withholding obligations due upon the vesting of restricted stock units, or in certain limited circumstances to satisfy the exercise price of options granted to the Company’s employees under the Company’s equity compensation plans.


| Revenue | (in millions) | $ Amount | United States | Europe | Asia Pacific | Other | Total | Property, Plant & Equipment | (in millions) | $ Amount | United States | Europe | Asia Pacific | Other | Total |


| Options WeightedAverageExercise Price Weighted Average Remaining Contractual Life in Years Aggregate Intrinsic Value ofIn-The-Money Options | Outstanding at December 31, 2013 | Granted | Exercised | Forfeited | Outstanding at December 31, 2014 | Vested and expected to vest at December 31, 2014 | Exercisable at December 31, 2014 | Outstanding Options | Range of Exercise Prices | $19.48-45.15 | 45.16-49.01 | 49.02-60.14 | 60.15-60.51 | 60.52-64.40 | 64.41-67.77 | 67.78-73.76 | 73.77-107.93 | 107.94-122.55 | 1,394,888 |


| December 31, 2008 | Cost or | Amortized | Cost | (In millions) | U.S. corporate securities | Residential mortgage-backed securities | Foreign corporate securities | U.S. Treasury/agency securities | Commercial mortgage-backed securities | Asset-backed securities | Foreign government securities | State and political subdivision securities | Other fixed maturity securities | Total fixed maturity securities -1, (2) | Common stock | Non-redeemable preferred stock -1 | Total equity securities | December 31, 2007 | Cost or | Amortized | Cost | (In millions) | U.S. corporate securities | Residential mortgage-backed securities | Foreign corporate securities | U.S. Treasury/agency securities | Commercial mortgage-backed securities | Asset-backed securities | Foreign government securities | State and political subdivision securities | Other fixed maturity securities | Total fixed maturity securities -1,(2) | Common stock | Non-redeemable preferred stock -1 | Total equity securities |


PERFORMANCE SHARE PLAN Under the Performance Share Plan (PSP), contingent awards of International Paper common stock are granted by the Committee.
The PSP awards are earned over a three-year period.
For the 2011 grant, one-fourth of the award is earned during each twelve-month period, with the final one-fourth segment earned over the full three-year period.
Beginning with the 2012 grant, the award is earned evenly over a thirty-six- month period.
PSP awards are earned based on the achievement of defined performance rankings of ROI and TSR compared to ROI and TSR peer groups of companies.
Awards are weighted 75% for ROI and 25% for TSR for all participants except for officers for whom the awards are weighted 50% for ROI and 50% for TSR.
The ROI component of the PSP awards is valued at the closing stock price on the day prior to the grant date.
As the ROI component contains a performance condition, compensation expense, net of estimated forfeitures, is recorded over the requisite service period based on the most probable number of awards expected to vest.
The TSR component of the PSP awards is valued using a Monte Carlo simulation as the TSR component contains a market condition.
The Monte Carlo simulation estimates the fair value of the TSR component based on the expected term of the award, a risk-free rate, expected dividends, and the expected volatility for the Company and its competitors.
The expected term is estimated based on the vesting period of the awards, the risk-free rate is based on the


No valuation allowance was provided on the deferred income tax asset attributable to the net unrealized losses on available-for-sale securities as of December 31, 2009.
This deferred tax asset reversed during 2010 to a deferred tax liability position attributable to the net unrealized gains on available-for-sale securities as of December 31, 2010.
The total deferred income tax asset also includes capital and net operating loss carryforwards for tax purposes available to offset future capital gains and taxable income, respectively.
The total capital loss carryforward, available to offset future capital gains, was $209.1 million as of December 31, 2010.
If not used, this remaining capital loss carryforward generated in 2009 will expire in 2014.
Domestic state net operating loss carryforwards were $235.8 million as of December 31, 2010, and will expire between 2017 and 2029.
Foreign net operating loss carryforwards generated in various foreign countries were $53.4 million as of December 31, 2010, with some operating loss carryforwards scheduled to expire beginning in 2013 while others never expire.
We maintain valuation allowances by jurisdiction against the deferred income tax assets related to certain of these carryforwards, as utilization of these income tax benefits fail the more likely than not criteria in certain jurisdictions.
A valuation allowance has been recorded on income tax benefits associated with state net operating loss carryforwards and foreign net operating loss carryforwards.
Adjustments to the valuation allowance will be made if there is a change in management’s assessment of the amount of the deferred income tax asset that is more likely than not to be realized.
Accumulated net operating losses of $640.8 million and $485.2 million at December 31, 2010 and 2009, respectively, are attributed to captive reinsurance companies that are temporarily excluded from our consolidated U. S.  federal income tax return.
These net operating losses will expire between 2021 and 2025.
One of the captive reinsurance companies will be able to join the consolidated U. S.  federal income tax return in 2012, with the other in 2013.
All accumulated net operating losses are anticipated to be utilized before expiration.
Therefore, no valuation allowance has been provided for the deferred income tax assets attributable to these net operating losses.
U. S.  federal and state deferred income taxes have not been provided on approximately $533.0 million of accumulated but undistributed earnings from operations of foreign subsidiaries at December 31, 2010.
Such earnings are considered to be indefinitely reinvested in the business.
It is not practical to determine the amount of the unrecognized deferred tax liability that would arise if these earnings were remitted due to foreign tax credits and exclusions that may become available at the time of remittance.
A tax liability will be recognized when we no longer plan to indefinitely reinvest the earnings or when we plan to sell all or a portion of our ownership interest.
Other Tax Information The Internal Revenue Service (‘‘IRS’’) has completed examination of our consolidated federal income tax returns for years prior to 2004.
We are contesting certain issues and have filed suit in the Court of Federal Claims, requesting refunds for the years 1995-2003.
We are also litigating a partnership issue for the years 2002-2003 in the federal district court of Iowa.
We had $230.9 million and $243.6 million of current income tax receivables associated with outstanding audit issues reported as other assets in our consolidated statements of financial position as of December 31, 2010 and 2009, respectively.
We do not expect the litigation to be resolved within the next twelve months.
The IRS commenced examination of the U. S.  consolidated federal income tax returns for 2004-2005 in March 2007.
The fieldwork is substantially complete and the final report is expected to be received sometime in the first or second quarter of 2011.
The statute of limitations for the 2004-2005 tax years expires on September 15, 2011.
The IRS commenced examination of the U. S.  consolidated federal income tax returns for 2006-2007 in March 2009 and of the tax return for 2008 in January 2010.


| Restricted Stock Units Outstanding Weighted-   Average   Grant Price Restricted Stock Outstanding Weighted-   Average   Grant Price | Unvested at January 1, 2010 | Granted | Vested | Cancelled | Unvested at December 31, 2010 |


ongoing review of the business requirements and capital needs of its non-U.
S.  subsidiaries, combined with the formation of specific strategies and steps taken to fulfill these requirements and needs, the Firm has determined that the undistributed earnings of certain of its subsidiaries would be indefinitely reinvested to fund current and future growth of the related businesses.
As management does not intend to use the earnings of these subsidiaries as a source of funding for its U. S.  operations, such earnings will not be distributed to the U. S.  in the foreseeable future.
For 2016, pretax earnings of $3.8 billion were generated and will be indefinitely reinvested in these subsidiaries.
At December 31, 2016, the cumulative amount of undistributed pretax earnings in these subsidiaries were $38.4 billion.
If the Firm were to record a deferred tax liability associated with these undistributed earnings, the amount would be $8.8 billion at December 31, 2016.
These undistributed earnings are related to subsidiaries located predominantly in the U. K.  where the 2016 tax rate was 28%.
Affordable housing tax credits The Firm recognized $1.7 billion, $1.6 billion and $1.6 billion of tax credits and other tax benefits associated with investments in affordable housing projects within income tax expense for the years 2016, 2015 and 2014, respectively.
The amount of amortization of such investments reported in income tax expense under the current period presentation during these years was $1.2 billion, $1.1 billion and $1.1 billion, respectively.
The carrying value of these investments, which are reported in other assets on the Firms Consolidated balance sheets, was $8.8 billion and $7.7 billion at December 31, 2016 and 2015, respectively.
The amount of commitments related to these investments, which are reported in accounts payable and other liabilities on the Firms Consolidated balance sheets, was $2.8 billion and $2.0 billion at December 31, 2016 and 2015, respectively.
Deferred taxes Deferred income tax expense/(benefit) results from differences between assets and liabilities measured for financial reporting purposes versus income tax return purposes.
Deferred tax assets are recognized if, in managements judgment, their realizability is determined to be more likely than not.
If a deferred tax asset is determined to be unrealizable, a valuation allowance is established.
The significant components of deferred tax assets and liabilities are reflected in the following table as of December 31, 2016 and 2015.


Note 2 BUSINESS SEGMENT INFORMATION BMS operates in a single segment engaged in the discovery, development, licensing, manufacturing, marketing, distribution and sale of innovative medicines that help patients prevail over serious diseases.
A global research and development organization and supply chain organization are responsible for the discovery, development, manufacturing and supply of products.
Regional commercial organizations market, distribute and sell the products.
The business is also supported by global corporate staff functions.
Segment information is consistent with the financial information regularly reviewed by the chief executive officer for purposes of evaluating performance, allocating resources, setting incentive compensation targets and planning and forecasting future periods.
Products are sold principally to wholesalers, and to a lesser extent, directly to distributors, retailers, hospitals, clinics, government agencies and pharmacies.
Gross revenues to the three largest pharmaceutical wholesalers in the U. S.  as a percentage of global gross revenues were as follows:


(1) Yields are based on quarterly average carrying values except for fixed maturities, equity securities and securities lending activity.
Yields for fixed maturities are based on amortized cost.
Yields for equity securities are based on cost.
Yields for fixed maturities and short-term investments and cash equivalents are calculated net of liabilities and rebate expenses corresponding to securities lending activity.
Yields exclude investment income on assets other than those included in invested assets.
Prior periods yields are presented on a basis consistent with the current period presentation.
The decrease in yield on the Japanese insurance portfolio for 2009 compared to 2008 is primarily attributable to lower fixed maturity reinvestment rates, including the reinvestment of proceeds realized from certain capital actions and a lower short-term interest rate environment both in the U. S.  and Japan.
The U. S.  dollar denominated fixed maturities that are not hedged to yen through third party derivative contracts provide a yield that is substantially higher than the yield on comparable Japanese fixed maturities.
The average value of U. S.  dollar denominated fixed maturities that are not hedged to yen through third party derivative contracts for 2009 and 2008 was approximately $10.1 billion and $9.9 billion, respectively, based on amortized cost.
For additional information regarding U. S.  dollar investments held in our Japanese insurance operations see, “—Results of Operations for Financial Services Businesses by Segment— International Insurance and Investments Division.
” Fixed Maturity Securities Investment Mix Our fixed maturity securities portfolio consists of publicly-traded and privately-placed debt securities across an array of industry categories.
The fixed maturity securities relating to our international insurance operations are primarily comprised of foreign government securities.
We manage our public portfolio to a risk profile directed or overseen by the Asset Liability Management and Risk Management groups and, in the case of our international insurance portfolios, to a profile that also reflects the local market environment.
The investment objectives for fixed maturity securities are consistent with those described above.
The total return that we earn on the portfolio will be reflected both as investment income and also as realized gains or losses on investments.
We use our private placement and asset-backed portfolios to enhance the diversification and yield of our overall fixed maturity portfolio.
Within our domestic portfolios, we maintain a private fixed income portfolio that is larger than the industry average as a percentage of total fixed income holdings.
Over the last several years, our investment staff has directly originated more than half of our annual private placement originations.
Our origination capability offers the opportunity to lead transactions and gives us the opportunity for better terms, including covenants and call protection, and to take advantage of innovative deal structures.
(1) Represents net shares issued from treasury pursuant to the Company’s stock-based compensation programs.
In the event of a liquidation, dissolution or winding-up of the Company, holders of Common Stock would be entitled to receive a proportionate share of the net assets of the Company that remain after paying all liabilities and the liquidation preferences of any preferred stock.
Common Stock Held in Treasury Common Stock held in treasury is accounted for at average cost.
Gains resulting from the reissuance of “Common Stock held in treasury” are credited to “Additional paid-in capital.
” Losses resulting from the reissuance of “Common Stock held in treasury” are charged first to “Additional paid-in capital” to the extent the Company has previously recorded gains on treasury share transactions, then to “Retained earnings.
”


Third-party sales for the Engineered Products and Solutions segment improved 7% in 2016 compared with 2015, primarily attributable to higher third-party sales of the two acquired businesses ($457), primarily related to the aerospace end market, and increased demand from the industrial gas turbine end market, partially offset by lower volumes in the oil and gas end market and commercial transportation end market as well as pricing pressures in aerospace.
Third-party sales for this segment improved 27% in 2015 compared with 2014, largely attributable to the third-party sales ($1,310) of the three acquired businesses (see above), and higher volumes in this segments legacy businesses, both of which were primarily related to the aerospace end market.
These positive impacts were slightly offset by unfavorable foreign currency movements, principally driven by a weaker euro.
ATOI for the Engineered Products and Solutions segment increased $47, or 8%, in 2016 compared with 2015, primarily related to net productivity improvements across all businesses as well as the volume increase from both the RTI acquisition and organic revenue growth, partially offset by a lower margin product mix and pricing pressures in the aerospace end market.
ATOI for this segment increased $16, or 3%, in 2015 compared with 2014, principally the result of net productivity improvements across most businesses, a positive contribution from acquisitions, and overall higher volumes in this segments legacy businesses.
These positive impacts were partially offset by unfavorable price and product mix, higher costs related to growth projects, and net unfavorable foreign currency movements, primarily related to a weaker euro.
In 2017, demand in the commercial aerospace end market is expected to remain strong, driven by the ramp up of new aerospace engine platforms, somewhat offset by continued customer destocking and engine ramp-up challenges.
Demand in the defense end market is expected to grow due to the continuing ramp-up of certain aerospace programs.
Additionally, net productivity improvements are anticipated while pricing pressure across all markets is likely to continue.


in customer financial circumstances and foreign currency fluctuations.
Additionally, the unbilled deferred revenue backlog for multi-year subscription agreements that are billed annually is typically higher at the beginning of the contract period, lower prior to renewal and increases when the agreement is renewed.
Accordingly, fluctuations in unbilled deferred revenue backlog may not be a reliable indicator of future business prospects and the related revenue associated with these contractual commitments.


Interest Rate Hedging We enter into interest rate swaps and treasury rate locks that qualify as cash flow hedges under SFAS No.133, Accounting for Derivative Instruments and Hedging Activities.
 We generally enter into interest rate swaps to manage our exposure to variable interest rate risk and treasury locks to manage the risk of interest rates rising prior to the issuance of debt.
We do not purchase derivatives for speculation.
Our cash flow hedges are recorded at fair value.
The effective portion of changes in fair value of our cash flow hedges is recorded in other comprehensive income and reclassified to earnings when the hedged item affects earnings.
The ineffective portion of changes in fair value of our cash flow hedges is recognized in earnings in the period affected.
We


| for the fiscal years ended September 30, 2017 2016 2015 | Net income attributable to Franklin Resources, Inc. | Less: allocation of earnings to participating nonvested stock and stock unit awards | Net Income Available to Common Stockholders | Weighted-average shares outstanding – basic | Dilutive effect of nonparticipating nonvested stock unit awards | Weighted-Average Shares Outstanding – Diluted | Earnings per Share | Basic | Diluted |


(a) The financial strength ratings reflect the ratings of the various reinsurance subsidiaries of the companies listed as of February 5, 2016.
(b) Total reinsurance assets include both the Non-Life Insurance Companies and the Life Insurance Companies reinsurance recoverable.
(c) Excludes collateral held in excess of applicable balances.
(d) Includes $1.8 billion recoverable under the 2011 retroactive reinsurance transaction pursuant to which a large portion of the Non-Life Insurance Companies net domestic asbestos liabilities were transferred to NICO.
Does not include reinsurance assets ceded to other reinsurers for which NICO has assumed the collection risk.
See Liability for Unpaid Losses and Loss Adjustment Expenses — Transfer of Domestic Asbestos Liabilities.
At December 31, 2015, we had no significant general reinsurance recoverable due from any individual reinsurer that was financially troubled.
Reinsurer capital levels continued to increase in 2015, thereby increasing the industry’s underwriting capacity.
This increased capacity has resulted in increased competition and lower rates for 2016 renewals.
Reduced profitability associated with lower rates could potentially result in reduced capacity or rating downgrades for some reinsurers.


Plan Assets The investment goal of the domestic pension plan assets is to generate an above benchmark return on a diversified portfolio of stocks, bonds and other investments.
The cash requirements of the pension obligation, which include a traditional formula principally representing payments to annuitants and a cash balance formula that allows lump sum payments and annuity payments, are designed to be met by the bonds and short-term investments in the portfolio.
The pension plan risk management practices include guidelines for asset concentration, credit rating and liquidity.
The pension plan does not invest in leveraged derivatives.
Derivatives such as futures contracts are used to reduce transaction costs and change asset concentration, while interest rate swaps and futures are used to adjust duration.
The investment goal of the domestic postretirement plan assets is to generate an above benchmark return on a diversified portfolio of stocks, bonds, and other investments, while meeting the cash requirements for the postretirement obligation that includes a medical benefit including prescription drugs, a dental benefit and a life benefit.
The postretirement plan risk management practices include guidelines for asset concentration, credit rating, liquidity and tax efficiency.
The postretirement plan does not invest in leveraged derivatives.
Derivatives such as futures contracts are used to reduce transaction costs and change asset concentration, while interest rate swaps and futures are used to adjust duration.
The plan fiduciaries for the Company’s pension and postretirement plans have developed guidelines for asset allocations reflecting a percentage of total assets by asset class, which are reviewed on an annual basis.
Asset allocation targets as of December 31, 2015 are as follows:


| Year Ended December 31, | 2012 | (In $ millions, except percentages) | Net sales | Net Sales Variance | Volume | Price | Currency | Other | Other (charges) gains, net | Operating profit (loss) | Operating margin | Equity in net earnings (loss) of affiliates | Earnings (loss) from continuing operations before tax | Depreciation and amortization |


In analyzing our liquidity for 2005, 2004 and 2003, reference is made to our consolidated statement of cash flows for the years ended December 31, 2005, 2004 and 2003; see Item 8.
Consolidated Financial Statements and Supplemental Data.
The statement of cash flows includes separate categories for operating, investing, and financing activities.
Cash provided by operating activities for 2005 was $113.6 million, which included net income of $92.5 million.
Adjustments for noncash items included $9.8 million in tax benefits related to stock compensation, $7.9 million of stock-based compensation and $7.8 million of depreciation and amortization offset by amortization of deferred warrant related loan fees of $6.1 million, net investment gains of $4.3 million and changes in fair value of derivatives of $3.3 million.
Sources of cash from changes in other assets and liabilities included a decrease in accounts receivable of $7.6 million, a decrease in income tax receivable of $2.0 million and an increase in accrued retention, incentive plan and other compensation benefits payable of $1.6 million.
These sources of cash were offset by a $9.7 million increase in accrued interest receivable.
Cash used for investing activities was $567.9 million for the year ended December 31, 2005.
Net cash outflow was primarily driven by a net increase in loans of $549.4 million and purchases of premises and equipment of $18.3 million.
In addition, purchases of investment securities of $534.3 million, offset by $27.3 million in proceeds from the sale of investment securities and $495.4 million in proceeds from maturities and pay-downs of investment securities also contributed to the net cash outflow.
Cash provided by financing activities was $289.2 million for the year ended December 31, 2005, largely, driven by net increases in other borrowings of $269.7 million and capital contributions from minority interest participants net of distributions of $45.4 million.
Deposits and proceeds from the issuance


| For the year ended December 31, 2011 | Purchases | (in millions) | Assets | Fixed maturities, available-for-sale: | Non-U.S. government | Corporate | Commercial mortgage-backed securities | Collateralized debt obligations | Other debt obligations | Total fixed maturities, available-for-sale | Fixed maturities, trading | Equity securities, available-for-sale | Derivative assets | Other investments | Separate account assets | Liabilities | Investment-type insurance contracts | Derivative liabilities | Other liabilities |


| 2001 2002 2003 2004 2005 | $205 |


| In Billions Facility Amount Borrowed Amount | Credit facility expiring: | May 2022 | June 2019 | Total committed credit facilities | Uncommitted credit facilities | Total committed and uncommitted credit facilities |


| Component Changes in AUM – Institutional | (in millions) | Active: | Equity | Fixed income | Multi-asset class | Alternatives | Active subtotal | Non-ETF Index: | Equity | Fixed income | Multi-asset class | Alternatives | Non-ETF Index subtotal | Long-terminstitutional |


| November 30, | 2010 | (In thousands) | Several recourse debt—repayment | Several recourse debt—maintenance | Joint and several recourse debt—repayment | Joint and several recourse debt—maintenance | Land seller debt and other debt recourse exposure | The Company’s maximum recourse exposure | Less: joint and several reimbursement agreements with the Company’s partners | The Company’s net recourse exposure |


| Plan category Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights-1(a)(b) Weighted-Average Exercise Price of Outstanding Options,Warrants and Rights Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding SecuritiesReflected in Column (a)) (c) | Equity compensation plans approved by security holders | Equity compensation plans not approved by security holders-2 | Total |


| Issued In Treasury Shares Outstanding | Balance, January 1, 2010 | Acquisition of Smith International, Inc. | Shares sold to optionees less shares exchanged | Shares issued under employee stock purchase plan | Stock repurchase program | Issued on conversions of debentures | Balance, December 31, 2010 | Shares sold to optionees less shares exchanged | Vesting of restricted stock | Shares issued under employee stock purchase plan | Stock repurchase program | Balance, December 31, 2011 | Shares sold to optionees less shares exchanged | Shares issued under employee stock purchase plan | Stock repurchase program | Balance, December 31, 2012 |


CITIZENS FINANCIAL GROUP, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 135 In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606).
The ASU requires that revenue from contracts with customers be recognized upon transfer of control of a good or service in the amount of consideration expected to be received.
The ASU also requires new qualitative and quantitative disclosures, including information about contract balances and performance obligations.
The Companys revenue is balanced between net interest income on financial assets and liabilities, which is explicitly excluded from the scope of the ASU, and noninterest income.
The Company has begun its implementation efforts which include the identification of revenue within the scope of the guidance, as well as the evaluation of related revenue contracts.
Based on this effort, adoption of the ASU is not expected to have a material impact on the timing of revenue recognition.
The Company plans to adopt the revenue recognition guidance in the first quarter of 2018.
NOTE 2 - CASH AND DUE FROM BANKS The Companys subsidiary banks maintain certain average reserve balances and compensating balances for check clearing and other services with the FRB.
At December 31, 2016 and 2015, the balance of deposits at the FRB amounted to $2.7 billion and $2.0 billion, respectively.
Average balances maintained with the FRB during the years ended December 31, 2016, 2015, and 2014 exceeded amounts required by law for the FRBs requirements.
All amounts, both required and excess reserves, held at the FRB currently earn interest at a fixed rate of 75 basis points.
The Company recorded interest income on FRB deposits of $7 million, $4 million, and $5 million for the years ended December 31, 2016, 2015, and 2014, respectively, in interest-bearing deposits in banks in the Consolidated Statement of Operations.


| (In millions) 2008 2007 | Asset retirement obligations as of January 1 | Liabilities incurred, including acquisitions | Liabilities settled | Accretion expense (included in depreciation, depletion and amortization) | Revisions to previous estimates | Held for sale(a) | Deconsolidation of EGHoldings | Asset retirement obligations as of December 31(b) |


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


A reconciliation of the U. S.  federal income tax rate of 35 percent to the actual effective tax rate is as follows:


| Year Ended December 31, 2010 | Other Assets | (in millions) | Fair Value, beginning of period | Total gains or (losses) (realized/unrealized): | Included in earnings: | Realized investment gains (losses), net | Asset management fees and other income | Interest credited to policyholders’ account balances | Included in other comprehensive income (loss) | Net investment income | Purchases, sales, issuances and settlements | Foreign currency translation | Other-1 | Transfers into Level 3-2 | Transfers out of Level 3-2 | Fair Value, end of period | Unrealized gains (losses) for the period relating to those Level 3 assets and liabilities that were still held at the end of theperiod(3): | Included in earnings: | Realized investment gains (losses), net | Asset management fees and other income | Interest credited to policyholders’ account balances | Included in other comprehensive income (loss) |


| 2018 2017 | Expected life (years) | Risk-free interest rate | Volatility | Dividend yield | Weighted average fair value per share at grant date |


| Sales Order Backlog As of September 30, | Homes in Backlog | 2014 | East | Midwest | Southeast | South Central | Southwest | West | 9,888 |


| Calendar year Pre-tax catastrophe losses | 2006 | 2005 | 2004 | 2003 | 2002 |


| Net tangible assets acquired as of September 18, 2007 $2,800 | Developed technology and know how | Customer relationship | Trade name | Deferred income tax liabilities, net | Goodwill | Final purchase price |


| Net tangible assets acquired $2.3 | Acquired technology | Tradename | In-process research and development | Goodwill | Total consideration |


Item 7A.
Quantitative and Qualitative Disclosure About Market Risk We are exposed to market risk in the ordinary course of business.
This market risk consists primarily of interest rate risk associated with our cash and cash equivalents.
The Company does not trade options for its own account.
?
our ability to meet our compliance obligations, including managing potential conflicts between our regulatory responsibilities and our for-profit status; ?
the ability of our compliance and risk management methods to effectively monitor and manage our risks; ?
our ability to attract and retain skilled management and other personnel; ?
our ability to manage our growth and strategic acquisitions or alliances effectively; ?
restrictions imposed by our debt obligations; ?
the satisfaction of the conditions precedent to the consummation of our proposed acquisition of Bats Global Markets, Inc.  (Bats), including, without limitation, the receipt of regulatory approvals on the terms desired or anticipated; ?
unanticipated difficulties or expenditures relating to the proposed transaction, including, without limitation, difficulties that result in the failure to realize expected synergies, efficiencies and cost savings from the proposed transaction within the expected time period (if at all), whether in connection with integration, combining trading platforms, broadening distribution of product offerings or otherwise; ?
our ability to maintain an investment grade credit rating; ?
risks relating to the value of our shares to be issued in the proposed transaction; ?
disruptions of our and Bats current plans, operations and relationships with market participants caused by the announcement and pendency of the proposed transaction; and ?
potential difficulties in our and Bats ability to retain employees as a result of the announcement and pendency of the proposed transaction.
For a detailed discussion of these and other factors that might affect our performance, see Part I, Item 1A.
of this Report.
We caution you not to place undue reliance on the forward-looking statements, which speak only as of the date of this filing Item 1.  Business Overview CBOE Holdings, Inc.  is the holding company for Chicago Board Options Exchange, Incorporated, CBOE Futures Exchange, LLC, C2 Options Exchange, Incorporated and other subsidiaries, including our majority ownership in CBOE Vest Financial Group Inc.  (CBOE Vest).
The Companys principal business is operating markets that offer for trading options on various market indexes (index options), mostly on an exclusive basis, and futures contracts, as well as on non-exclusive multiply-listed options, such as options on the stocks of individual corporations (equity options) and options on other exchange-traded products (ETP options), such as exchange-traded funds (ETF options) and exchange-traded notes (ETN options).
The Company operates CBOE, CFE and C2 as stand-alone exchanges, but reports the results of its operations in a single reporting segment.
CBOE is our primary options market and offers trading in listed options through a single system that integrates electronic trading and traditional open outcry trading on our trading floor in Chicago.
This integration of electronic trading and traditional open outcry trading into a single exchange is known as our Hybrid trading model.
CFE, our all-electronic futures exchange, offers trading of futures on the VIX Index and other products.
C2 is our all-electronic exchange that also offers trading of listed options, and may operate with a different market model and fee structure than CBOE.
All of our exchanges operate on our proprietary technology platform known as CBOE Command.
The following chart illustrates annual contract volume across the different categories of products traded at the Company for the periods indicated:


| Outstanding Reserves and Ranges By Segment -1 At December 31, 2012 | As | (Dollars inmillions) | Gross Reserves By Segment | U.S. Reinsurance | International | Bermuda | Insurance | Total Gross Reserves (excluding A&E) | A&E (All Segments) | Total Gross Reserves | (Some amounts may not reconcile due to rounding.) |


| As of December | $ in millions | Global Core Liquid Assets (GCLA) | Other cash | GCLA and cash | Secured client financing | Inventory | Secured financing agreements | Receivables | Institutional Client Services | Public equity | Private equity | Debt1 | Loans receivable2 | Other | Investing & Lending | Total inventory and related assets | Other assets | Total assets |


| Years Ended December 31, | (Dollars in millions) | 2012 | Attritional | Catastrophes | Total segment | 2011 | Attritional | Catastrophes | Total segment | 2010 | Attritional | Catastrophes | Total segment | Variance 2012/2011 | Attritional | Catastrophes | Total segment | Variance 2011/2010 | Attritional | Catastrophes | Total segment | (Some amounts may not reconcile due to rounding.) |


VORNADO REALTY TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) 147 10.
Redeemable Noncontrolling Interests - continued Redeemable noncontrolling interests on our consolidated balance sheets are recorded at the greater of their carrying amount or redemption value at the end of each reporting period.
Changes in the value from period to period are charged to additional capital in our consolidated statements of changes in equity.
Below is a table summarizing the activity of redeemable noncontrolling interests.


| Years Ended December 31, | (Dollars in millions) | Gross reserves | Reinsurance receivable | Net reserves | (Some amounts may not reconcile due to rounding.) |


Utilization of $8 million of the Company’s U. S.  federal net operating loss carryforwards are subject to annual limitations as a result of the ATI Technologies ULC (ATI) acquisition.
Gas Sales and Deliveries O&R generally recovers the cost of the gas that it buys and then sells to its firm sales customers.
It does not make any margin or profit on the gas it sells.
O&R’s gas revenues are subject to a weather normalization clause.
Effective November 2009, O&R’s New York gas revenues (which accounted for substantially all of O&R’s gas revenues in 2009) became subject to a revenue decoupling mechanism.
As a result, its gas delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
O&R’s gas deliveries and sales for the last five years wer


Operating Leases.
The Company leases its primary office locations under agreements that expire on varying dates through 2035.
In connection with certain lease agreements, the Company is responsible for escalation payments.
The contractual obligations table above includes only guaranteed minimum lease payments for such leases and does not project potential escalation or other lease-related payments.
These leases are classified as operating leases and, as such, are not recorded as liabilities on the consolidated statements of financial condition.


Entergy Corporation and Subsidiaries Notes to Financial Statements Accounting for Pension and Other Postretirement Benefits Accounting standards require an employer to recognize in its balance sheet the funded status of its benefit plans.
This is measured as the difference between plan assets at fair value and the benefit obligation.
Entergy uses a December 31 measurement date for its pension and other postretirement plans.
Employers are to record previously unrecognized gains and losses, prior service costs, and any remaining transition asset or obligation (that resulted from adopting prior pension and other postretirement benefits accounting standards) as comprehensive income and/or as a regulatory asset reflective of the recovery mechanism for pension and other postretirement benefit costs in the Registrant Subsidiaries respective regulatory jurisdictions.
For the portion of Entergy Louisiana that is not regulated, the unrecognized prior service cost, gains and losses, and transition asset/obligation for its pension and other postretirement benefit obligations are recorded as other comprehensive income.
Entergy Louisiana recovers other postretirement benefit costs on a pay-as-you-go basis and records the unrecognized prior service cost, gains and losses, and transition obligation for its other postretirement benefit obligation as other comprehensive income.
Accounting standards also require that changes in the funded status be recorded as other comprehensive income and/or a regulatory asset in the period in which the changes occur.
With regard to pension and other postretirement costs, Entergy calculates the expected return on pension and other postretirement benefit plan assets by multiplying the long-term expected rate of return on assets by the marketrelated value (MRV) of plan assets.
Entergy determines the MRV of pension plan assets by calculating a value that uses a 20-quarter phase-in of the difference between actual and expected returns.
For other postretirement benefit plan assets Entergy uses fair value when determining MRV.
Qualified Pension and Other Postretirement Plans Assets The Plan Administrators trust asset investment strategy is to invest the assets in a manner whereby long-term earnings on the assets (plus cash contributions) provide adequate funding for retiree benefit payments.
The mix of assets is based on an optimization study that identifies asset allocation targets in order to achieve the maximum return for an acceptable level of risk, while minimizing the expected contributions and pension and postretirement expense.
In the optimization studies, the Plan Administrator formulates assumptions about characteristics, such as expected asset class investment returns, volatility (risk), and correlation coefficients among the various asset classes.
The future market assumptions used in the optimization study are determined by examining historical market characteristics of the various asset classes and making adjustments to reflect future conditions expected to prevail over the study period.
The target asset allocation for pension adjusts dynamically based on the pension plans funded status.
The current targets are shown below.
The expectation is that the allocation to fixed income securities will increase as the pension plans funded status increases.
The following ranges were established to produce an acceptable, economically efficient plan to manage around the targets.
The target and range asset allocation for postretirement assets reflects recommendations made in the latest optimization study.
Entergys qualified pension and postretirement weighted-average asset allocations by asset category at December 31, 2015 and 2014 and the target asset allocation and ranges are as follows:


| December 31, 2017 December 31, 2016 | Carrying Value-1 | Debt and preferred equity investments | Fixed rate debt | Variable rate debt | $5,910,596 |


| Fiscal 2016 $377.0 | Fiscal 2017 | Fiscal 2018 | Fiscal 2019 | Fiscal 2020 |


Table of Contents 73 In May 2016, the Company entered into an accelerated share repurchase agreement (the May 2016 ASR) to repurchase an aggregate of $125.0 million of the Companys common stock.
Pursuant to the May 2016 ASR, the Company made a prepayment of $125.0 million and received initial share deliveries of shares valued at $100.0 million.
The remaining balance of $25.0 million was settled in August 2016.
Total shares purchased under the May 2016 ASR were approximately 2.4 million shares, at an average purchase price of $52.98 per share.
In December 2016, the Company entered into an accelerated share repurchase agreement (the December 2016 ASR) to repurchase an aggregate of $100.0 million of the Companys common stock.
Pursuant to the December 2016 ASR, the Company made a prepayment of $100.0 million and received initial share deliveries of shares valued at $80.0 million.
The remaining balance of $20.0 million is anticipated to be settled on or before February 16, 2017, upon completion of the repurchase.
Under the terms of the December 2016 ASR, the specific number of shares that the Company ultimately repurchases will be based on the volume-weighted average share price of the Companys common stock during the repurchase period, less a discount.
The following table summarizes stock repurchase activities as well as the reissuance of treasury stock for employee stock compensation purposes:


| As of February 28, 2010 | (In thousands) | Fiscal 2011 | Fiscal 2012 | Fiscal 2013 | Fiscal 2014 | Fiscal 2015 | Fiscal 2016 and thereafter | Total minimum lease payments | Less amounts representing interest | Present value of net minimum capital lease payments |


| 2008 $1,817 | 2009 | 2010 | 2011 | 2012 | Thereafter | Total cash obligations | Accreted value of the discount and premium of 3.00% Notes and 7.125% Notes | Balance as of December 31, 2007 |


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


| Year Ended April 30, | 2019 | Share-based compensation expense included in SD&A | Share-based compensation expense (benefit) included in other special project costs(A) | Total share-based compensation expense | Related income tax benefit |


| 2012 % Change 2011 % Change 2010 | Net Revenues | U.S. and Canada | International | Entertainment and Licensing | Operating Profit | U.S. and Canada | International | Entertainment and Licensing |


| Company Index November 17, 2011 December 31, 2011 December 31, 2012 December 31, 2013 December 31, 2014 | Delphi Automotive PLC -1 | S&P 500 -2 | Automotive Supplier Peer Group -3 | 2018 (Projected) | Copper(millions of recoverable pounds): | North America copper mines | South America mining | Indonesia mining | Total | Gold(thousands of recoverable ounces) | Molybdenum(millions of recoverable pounds) |


| December 31, 2014 2013 | Raw materials and packaging | Finished goods | Other | Total inventories |


Item 6.
Selected Financial Data.
The following selected financial data set forth should be read in conjunction with, and is qualified by reference to, Managements Discussion and Analysis of Financial Condition and Results of Operations and the consolidated financial statements and related notes included in this Form 10-K.
The selected financial data, with the exception of store counts and same store sales growth, has been derived from the audited consolidated financial statements of Dominos Pizza, Inc.  and subsidiaries.
This historical data is not necessarily indicative of results to be expected for any future period.


| 2010 $122 | 2011 | 2012 | 2013 | 2014 | Thereafter | Total future lease commitments |


13.
RENTALS AND LEASES The Company leases sales and administrative office facilities, distribution centers, research and manufacturing facilities, as well as vehicles and other equipment under operating leases.
Total rental expense under the Companys operating leases was $239 million in 2017 and $221 million in both 2016 and 2015.
As of December 31, 2017, identifiable future minimum payments with non-cancelable terms in excess of one year were:


| 2008 2007 2006 | Net income available for common shareholders | Adjustments: | Depreciation and amortization | Company share of joint venture depreciation and amortization | Earnings from depreciable property sales – wholly owned | Earnings from depreciable property sales – share of joint venture | Minority interest share of adjustments | Funds From Operations | Total Portfolio | Year of Expiration | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 and Thereafter | 113,744 | Total Portfolio Square Feet | Percent Occupied | 2008 | Basic net income available for common shareholders | Minority interest in earnings of common unitholders | Diluted net income available for common shareholders | Weighted average number of common shares outstanding | Weighted average partnership Units outstanding | Dilutive shares for stock-based compensation plans -1 | Weighted average number of common shares and potential dilutive securities |


investment income attributable to higher yields was primarily due to higher returns on fixed maturity securities, other limited partnership interests excluding hedge funds, equity securities and improved securities lending results, partially offset by lower returns on real estate joint ventures, cash, cash equivalents and short-term investments, hedge funds and mortgage loans.
Management anticipates that investment income and the related yields on other limited partnership interests may decline during 2008 due to increased volatility in the equity and credit markets during 2007.
Interest Margin Interest margin, which represents the difference between interest earned and interest credited to policyholder account balances increased in the Institutional and Individual segments for the year ended December 31, 2007 as compared to the prior year.
Interest earned approximates net investment income on investable assets attributed to the segment with minor adjustments related to the consolidation of certain separate accounts and other minor non-policyholder elements.
Interest credited is the amount attributed to insurance products, recorded in policyholder benefits and claims, and the amount credited to policyholder account balances for investment-type products, recorded in interest credited to policyholder account balances.
Interest credited on insurance products reflects the current year impact of the interest rate assumptions established at issuance or acquisition.
Interest credited to policyholder account balances is subject to contractual terms, including some minimum guarantees.
This tends to move gradually over time to reflect market interest rate movements and may reflect actions by management to respond to competitive pressures and, therefore, generally does not introduce volatility in expense.
Net Investment Gains (Losses) Net investment losses decreased by $644 million to a loss of $738 million for the year ended December 31, 2007 from a loss of $1,382 million for the comparable 2006 period.
The decrease in net investment losses was primarily due to a reduction of losses on fixed maturity securities resulting principally from the 2006 portfolio repositioning in a rising interest rate environment, increased gains from asset-based foreign currency transactions due to a decline in the U. S.  dollar year over year against several major currencies and increased gains on equity securities, partially offset by increased losses from the mark-to-market on derivatives and reduced gains on real estate and real estate joint ventures.
Underwriting Underwriting results are generally the difference between the portion of premium and fee income intended to cover mortality, morbidity or other insurance costs, less claims incurred, and the change in insurance-related liabilities.
Underwriting results are significantly influenced by mortality, morbidity or other insurance-related experience trends, as well as the reinsurance activity related to certain blocks of business.
Consequently, results can fluctuate from period to period.
Underwriting results, excluding catastrophes, in the Auto & Home segment were less favorable for the year ended December 31, 2007, as the combined ratio, excluding catastrophes, increased to 86.3% from 82.8% for the year ended December 31, 2006.
Underwriting results were favorable in the non-medical health & other, group life and retirement & savings businesses in the Institutional segment.
Underwriting results were unfavorable in the life products in the Individual segment.


| 2001 2002 Change | Foreign currency transaction (gains) and losses | Debt extinguishment expense | Loss on investments | Other, net | $37,485 |


| 2005 2004 2003 | Shares | Class A Common Stock | Balance at beginning of year | Common stock purchases | Stock award plans | Common stock issuances | Conversions of Class A to Class B common stock | Balance at end of year | Class B Common Stock | Balance at beginning of year | Common stock purchases | Conversions of Class A to Class B common stock | Balance at end of year | Additional Paid-In Capital | Balance at beginning of year | Stock award plans | Common stock purchases | Common stock issuances | Balance at end of year | Retained Earnings | Balance at beginning of year | Net income | Dividends ($1.32, $1.12, and $0.92) | Common stock purchases | Balance at end of year | Accumulated Other Comprehensive Income (Loss) | Foreign currency translation adjustment: | Balance at beginning of year | Aggregate adjustment for the year | Balance at end of year | Unrealized gain (loss) on marketable securities, net of tax: | Balance at beginning of year | Current period changes in fair value (net of tax effect of $0, $(10), and $13) | Reclassification to earnings (net of tax effect of $10, $(1), and $17) | Balance at end of year | Unrealized gain (loss) on cash flow hedges, net of tax: | Balance at beginning of year | Current period changes in fair value (net of tax effect of $81, $21, and $(6)) | Reclassification to earnings (net of tax effect of $(14), $4, and $(21)) | Balance at end of year | Additional minimum pension liability, net of tax: | Balance at beginning of year | Minimum pension liability adjustment (net of tax effect of $(8), $(10), and $(6)) | Balance at end of year | Accumulated other comprehensive income (loss) at end of year | Deferred Compensation Obligations | Balance at beginning of year | Common stock held for deferred compensation obligations | Balance at end of year | Treasury Stock | Balance at beginning of year | Common stock held for deferred compensation obligations | Balance at end of year | Total Shareowners’ Equity at End of Year | Comprehensive Income |


| Year ended December 31, (in millions) 2010 2009 2008 | Trading assets – debt and equity instruments(a) | Trading assets – derivative receivables | Trading liabilities – debt and equity instruments(a)(b) | Trading liabilities – derivative payables |


At December 31, 2011, there was $391 million of total pretax unrecognized compensation expense related to nonvested stock options, RSU and PSU awards which will be recognized over a weighted average period of 1.8 years.
For segment reporting, share-based compensation costs are unallocated expenses.15.


| December 31, 2017 2016 2015 | Discount rate: | Pension | Other postretirement benefits | Expected return on plan assets | Rate of compensation increase |


| September 30, | 2010 | ($ in 000's) | Assets Under Management: | Eagle Asset Management, Inc. | Eagle Money Market Funds | Raymond James Consulting Services (“RJCS”) | Unified Managed Accounts | Freedom Accounts & Other Managed Programs | Total Assets Under Management | Less: Assets Managed for Affiliated Entities | Net Assets Under Management | Non-Managed Fee-based Assets: | Passport | Ambassador | Other Non-Managed Fee-based Assets | Total |


| December 31, 2016 | AmortizedCost | ($ in millions) | Corporate & government securities: | Maturing in 2017 | Maturing in 2018 | Maturing in 2019 | Maturing in 2020 | Maturing in 2021 | Maturing in 2022 | Maturing in 2023 | Maturing in 2024 | Maturing in 2025 | Maturing in 2026 | Maturing in 2027 | Maturing in 2028 and beyond | Total corporate & government securities | Asset-backed securities | Commercial mortgage-backed securities | Residential mortgage-backed securities | Total fixed maturities |


| Fiscal Years Ended | March 28, 2009 | (millions) | Operating Income: | Wholesale | Retail | Licensing | 825.1 | Less: | Unallocated corporate expenses | Unallocated legal and restructuring charges | Total operating income |


Although our revenues are principally derived from customers domiciled in the United States, the ultimate points of origination or destination for some products transported are outside the United States.
Basis of Presentation  The Consolidated Financial Statements are presented in accordance with accounting principles generally accepted in the United States of America (GAAP) as codified in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC).
Subsequent Events Evaluation  We evaluated the effects of all subsequent events through February 5, 2010, the date of this report, which is concurrent with the date we file this report with the U. S.  Securities and Exchange Commission (SEC).2.
Significant Accounting Policies Change in Accounting Principle  We have historically accounted for rail grinding costs as a capital asset.
Beginning in the first quarter of 2010, we will change our accounting policy for rail grinding costs


Table of Contents In March 2008, the FASB issued SFAS No.161, Disclosures about Derivative Instruments and Hedging Activitiesan amendment of FASB Statement No.133, which requires companies to provide additional disclosures about its objectives and strategies for using derivative instruments, how the derivative instruments and related hedged items are accounted for under SFAS No.133, Accounting for Derivative Instruments and Hedging Activities , and related interpretations, and how the derivative instruments and related hedged items affect the Companys financial statements.
SFAS No.161 also requires companies to disclose information about credit risk-related contingent features in their hedged positions.
SFAS No.161 is effective for fiscal years and interim periods beginning after November 15, 2008 and is required to be adopted by the Company beginning in the second quarter of fiscal 2009.
Although the Company will continue to evaluate the application of SFAS No.161, management does not currently believe adoption will have a material impact on the Companys financial condition or operating results.


| 2008 $42,335 | 2009 | 2010 | 2011 | 2012 | Thereafter | Future Minimum Lease Payments |


| Moody’s InvestorService Standard andPoor’s Fitch Ratings | Rating | Outlook | Crude Oil, Condensate and NGLs (MMBbls) | United States | Proved Reserves as of: | December 31, 2008 | Revisions of Previous Estimates-2 | Extensions, Discoveries and Other Additions-3 | Purchase of Minerals in Place-4 | Sale of Minerals in Place-5 | Production-6 | December 31, 2009 | Revisions of Previous Estimates-2 | Extensions, Discoveries and Other Additions-3 | Purchase of Minerals in Place-4 | Sale of Minerals in Place-5 | Production-6 | December 31, 2010 | Revisions of Previous Estimates-2 | Extensions, Discoveries and Other Additions-3 | Purchase of Minerals in Place-4 | Sale of Minerals in Place-5 | Production-6 | December 31, 2011 | Proved Developed Reserves as of: | December 31, 2008 | December 31, 2009 | December 31, 2010 | December 31, 2011 | Proved Undeveloped Reserves as of: | December 31, 2008 | December 31, 2009 | December 31, 2010 | December 31, 2011 |


| 2017 $11.5 | 2018 | 2019 | 2020 | 2021 | 2022–2026 |


| Favorable/(Unfavorable) | Years ended December 31, | In millions | External sales | Intersegment sales | Total sales | Depreciation and amortization | Research, development and engineering expenses | Equity, royalty and interest income from investees | Interest income | Segment EBIT | Percentage Points | Segment EBIT as a percentage of total sales | U.S. Plans | Target Allocation | Investment description | Fixed income | Equity securities | Real estate/other | Total | Long-term Expected Return Assumptions | 2015 | U.S. plans | U.K. plans |


Middleton's reported cigars shipment volume for 2012 decreased 0.7% due primarily to changes in trade inventories, partially offset by volume growth as a result of retail share gains.
In the cigarette category, Marlboro's 2012 retail share performance continued to benefit from the brand-building initiatives supporting Marlboro's new architecture.
Marlboro's retail share for 2012 increased 0.6 share points versus 2011 to 42.6%.
In January 2013, PM USA expanded distribution of Marlboro Southern Cut nationally.
Marlboro Southern Cut is part of the Marlboro Gold family.
PM USA's 2012 retail share increased 0.8 share points versus 2011, reflecting retail share gains by Marlboro and by L&M in Discount.
These gains were partially offset by share losses on other portfolio brands.
In the machine-made large cigars category, Black & Mild's retail share for 2012 increased 0.5 share points.
The brand benefited from new untipped cigarillo varieties that were introduced in 2011, Black & Mild seasonal offerings and the 2012 third-quarter introduction of Black & Mild Jazz untipped cigarillos into select geographies.
In December 2012, Middleton announced plans to launch nationally Black & Mild Jazz cigars in both plastic tip and wood tip in the first quarter of 2013.
The following discussion compares smokeable products segment results for the year ended December 31, 2011 with the year ended December 31, 2010.
Net revenues, which include excise taxes billed to customers, decreased $221 million (1.0%) due to lower shipment volume ($1,051 million), partially offset by higher net pricing ($830 million), which includes higher promotional investments.
Operating companies income increased $119 million (2.1%), due primarily to higher net pricing ($831 million), which includes higher promotional investments, marketing, administration, and research savings reflecting cost reduction initiatives ($198 million) and 2010 implementation costs related to the closure of the Cabarrus, North Carolina manufacturing facility ($75 million), partially offset by lower volume ($527 million), higher asset impairment and exit costs due primarily to the 2011 Cost Reduction Program ($158 million), higher per unit settlement charges ($120 million), higher charges related to tobacco and health judgments ($87 million) and higher FDA user fees ($73 million).
For 2011, total smokeable products shipment volume decreased 4.0% versus 2010.
PM USA's reported domestic cigarettes shipment volume declined 4.0% versus 2010 due primarily to retail share losses and one less shipping day, partially offset by changes in trade inventories.
After adjusting for changes in trade inventories and one less shipping day, PM USA's 2011 domestic cigarette shipment volume was estimated to be down approximately 4% versus 2010.
PM USA believes that total cigarette category volume for 2011 decreased approximately 3.5% versus 2010, when adjusted primarily for changes in trade inventories and one less shipping day PM USA's total premium brands (Marlboro and Other Premium brands) shipment volume decreased 4.3%.
Marlboro's shipment volume decreased 3.8% versus 2010.
In the Discount brands, PM USA's shipment volume decreased 0.9%.
PM USA's shipments of premium cigarettes accounted for 93.7% of its reported domestic cigarettes shipment volume for 2011, down from 93.9% in 2010.
Middleton's 2011 reported cigars shipment volume was unchanged versus 2010.
For 2011, PM USA's retail share of the cigarette category declined 0.8 share points to 49.0% due primarily to retail share losses on Marlboro.
Marlboro's 2011 retail share decreased 0.6 share points.
In 2010, Marlboro delivered record full-year retail share results that were achieved at lower margin levels.
Middleton retained a leading share of the tipped cigarillo segment of the machine-made large cigars category, with a retail share of approximately 84% in 2011.
For 2011, Middleton's retail share of the cigar category increased 0.3 share points to 29.7% versus 2010.
Black & Mild's 2011 retail share increased 0.5 share points, as the brand benefited from new product introductions.
During the fourth quarter of 2011, Middleton broadened its untipped cigarillo portfolio with new Aroma Wrap?
foil pouch packaging that accompanied the national introduction of Black & Mild Wine.
This new fourthquarter packaging roll-out also included Black & Mild Sweets and Classic varieties.
During the second quarter of 2011, Middleton entered into a contract manufacturing arrangement to source the production of a portion of its cigars overseas.
Middleton entered into this arrangement to access additional production capacity in an uncertain competitive environment and an excise tax environment that potentially benefits imported large cigars over those manufactured domestically.


| September 30, 2007 September 30, 2006 | Trading Instruments | (in 000's) | Marketable: | Municipal | Corporate | Government | Agency | Total Debt Securities | Derivative Contracts | Equity Securities | Other Securities | Total |


| Volatility Factor | (Dollars in millions) | Risk Free Interest Rate | Less 100 basis points | Current rate -4.8% | Plus 100 basis points | (Dollars in thousands) | Year ended December 31, 2010 | Net interest income | Provision for loan losses | Noninterest income | Noninterest expense -2 | Income (loss) before income tax expense (3) | Total average loans | Total average assets | Total average deposits | Year ended December 31, 2009 | Net interest income (loss) | Provision for loan losses | Noninterest income (loss) | Noninterest expense, excluding impairment of goodwill -2 | Impairment of goodwill | Income (loss) before income tax expense (3) | Volatility Factor | (Dollars in millions) | Risk free interest rate: | Less 50 basis points | Current rate -1.0% | Plus 50 basis points |


| Year ended December 31,(a) 2005 2004 2003 | Statutory U.S. federal tax rate | Increase (decrease) in tax rate resulting from: | U.S. state and local income taxes, net offederal income tax benefit | Tax-exempt income | Non-U.S. subsidiary earnings | Business tax credits | Other, net | Effective tax rate |


| ECONOMIC VALUE OF EQUITY Estimated Exposure to Economic Value of Equity | 2005 | (Dollars in millions) Rate Change | + 200 bps shock | – 200 bps shock |


Xcel Energy applies Accounting Principles Board Opinion No.25 – “Accounting for Stock Issued to Employees” in accounting for stock-based compensation and, accordingly, no compensation cost is recognized for the issuance of stock options, as the exercise price of the options equals the fair-market value of Xcel Energy’s common stock at the date of grant.
In December 2002, the FASB issued SFAS No.148 – “Accounting for Stock-Based Compensation – Transition and Disclosure,” amending SFAS No.123 to provide alternative methods of transition for a voluntary change to the fair-value-based method of accounting for stock-based employee compensation, and requiring disclosure in both annual and interim Consolidated Financial Statements about the method used and the effect of the method used on results.
The pro forma impact of applying SFAS No.148 is as follows at Dec.  31:


| QualifiedPension NonqualifiedPension PostretirementBenefits | December 31 (Measurement Date) – in millions | Accumulated benefit obligation at end of year | Projected benefit obligation at beginning of year | Service cost | Interest cost | Amendments | Actuarial (gains)/losses and changes in assumptions | Participant contributions | Federal Medicare subsidy on benefits paid | Benefits paid | Projected benefit obligation at end of year | Fair value of plan assets at beginning of year | Actual return on plan assets | Employer contribution | Participant contributions | Federal Medicare subsidy on benefits paid | Benefits paid | Fair value of plan assets at end of year | Funded status | Amounts recognized 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 (AOCI)consist of: | Prior service cost (credit) | Net actuarial loss | Amount recognized in AOCI |


| Increase (Decrease) over prior year 2017 2016 | Residential sales | General service sales | Industrial sales | Wholesale power sales | Joint dispatch sales | Total sales | Average number of customers |


| Change | Fiscal Year | 2016 | United States | Rest of North and South America | Europe | Japan | China | Rest of Asia | Total Revenue |


| Total Number of Shares Purchased(a) Average PricePaid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs(b) | October 1 to October 28, 2007 | October 29 to November 25, 2007 | November 26 to December 31, 2007 | Total | Shares (in thousands) | Nonvested at January 1, 2010 | Vested | Granted | Reinvested Dividends | Forfeited / Expired | Nonvested at December 31, 2010 | RSUs Expected to Vest |


| Securities Maturing as of December 31, 2012 | Within One Year | (Dollars in millions) | Securities: | U.S. Treasury securities | Federal agency securities | Obligations of states and political subdivisions | Mortgage-backed securities: | Residential agency | Residential non-agency | Commercial agency | Commercial non-agency | Corporate and other debt securities | $38 | Weighted-average yield |


| (dollars in millions) 2016 2017 2018 17 vs. 16 18 vs. 17 | Sales: | Climate Technologies | Tools & Home Products | Total | Earnings: | Climate Technologies | Tools & Home Products | Total | Margin |


Four of the groups aircraft  the Gulfstream G350, G450, G500 and G550  as well as the out-of-production GV, share the same pilot-type rating.
This results in significant savings for multiple-aircraft fleet operators in training and maintenance costs, as well as enhanced safety in the operation of the aircraft.
In 2006, the Aerospace group continued to distinguish its products and services from its competition.
The company brought into service its newest business-jet aircraft, the mid-size, high-speed G150, replacing the G100.
The G150 offers an entirely new cabin design  a wider fuselage and space for larger seats  that can accommodate up to eight passengers.
In March, General Dynamics announced the Aerospace groups most comprehensive infrastructure renewal program since Gulfstreams inception in 1958.
This seven-year effort includes a new service center more than twice as large as the current facility; a unique sales and design center to help guide customers through the aircraft purchase and interior-design selection process; expansion of the existing manufacturing facilities; a new engineering building; and new paint hangars.
To ensure its continued leadership in the business-aviation industry, the Aerospace group is committed to ongoing investment in research and development (R&D).
Investments in innovative designs occur across a range of capabilities in aerodynamics; cockpit design and layout; and fuel, electrical and weight efficiencies.
These continue to enhance Gulfstreams reputation and lead to ongoing new-product offerings and broader customer choice.
To support these efforts, in 2006 the Aerospace group opened the new 100,000-square-foot Gulfstream Research and Development Center.
This facility has centralized the groups R&D efforts in advanced avionics, flight control systems and cabin technologies; enhanced vision systems, including synthetic vision; and new model concepts.
The company is making these investments to enable the Aerospace group to remain a leader in the business-jet aviation industry.
The Aerospace group offers several product enhancements for new aircraft and upgrades for existing planes to ensure new and current customers benefit from the results of these R&D investments.
Among them is the ultra-high-speed broadband multi-link (BBML) system, which is available for Gulfstreams large-cabin business-jet aircraft.
This sophisticated technology allows customers to access the Internet at connection speeds similar to those typically found in corporate offices while at altitudes up to 51,000 feet.
Gulfstreams BBML service is up to 10 times faster than other widely used in-flight connections.
Videoconferencing and Voice-over-Internet Protocol (VoIP) communications capabilities are available as well.
Additionally, the company continues to offer its industryleading Enhanced Vision System (EVS), a specially designed, forward-looking infrared (FLIR) camera that projects an infrared real-world image on the pilots heads-up display (HUD).
EVS enables the flight crew to see runway markings, taxiways, adjacent roads and surrounding areas in conditions of low light and reduced visibility, significantly enhancing the safety features of the aircraft.
Customer service remains a key market discriminator for the Aerospace group.
In addition to the new service center planned for the groups headquarters in Savannah, Georgia, the Aerospace group has expanded service support and pre-positioned spare-parts depots in Asia, Europe, the Middle East and Latin America.
In January 2007, the group announced the acquisition of WECO Aerospace Systems, a privately held aviation-component overhaul company, to augment the groups service capabilities.
The groups commitment to product service and support, which has garnered top industry awards for exemplary product support for the past seven years, continues to extend its outstanding record of aircraft safety, reliability and availability.
The company remains a leading provider of aircraft for government special-mission applications, including executive transportation, aerial reconnaissance, maritime surveillance, weather research and astronaut training.
Gulfstream aircraft are ideal for meeting these various mission requirements because of the aircrafts high-altitude capability, range, endurance, reliability and efficiency.
For example, in 2006 the company delivered a Conformal Airborne Early Warning (CAEW) special-mission aircraft to the Israeli Ministry of Defense.
This program entailed the most extensive exterior modification on a Gulfstream aircraft to date  including additional structural attachments and an enhanced electrical power system.
More than 160 government and special-mission Gulfstream aircraft are in service, completed or on order for 34 nations.
Net sales for the Aerospace group were 17 percent of the companys consolidated net sales in 2006 and 16 percent in 2005 and 2004.
Net sales by major products and services were as follows:


For Years Ended December 31


| December 31, | 2012 | Water | Residential | Commercial | Industrial | Private fire | Public authority & other | Total |


| Year Ended December | $ in millions, except per share amounts | Net revenues | Pre-tax earnings | Net earnings | Net earnings applicable to common shareholders | Diluted earnings per common share | Return on average common shareholders’ equity | Net earnings to average assets | Return on average total shareholders’ equity | Total average equity to average assets | Dividend payout ratio |


Con Edison of New York’s sales and transportation volumes for firm customers decreased 3.8 percent in 2004 compared with 2003 reflecting the impact of milder winter and warmer spring weather, partially offset by increased new business.
After adjusting for variations, principally weather and billing days in each period and the August 2003 regional power outage, firm gas sales and transportation volumes in the company’s service area increased 0.6 percent in 2004.
Non-firm transportation of customer-owned gas to NYPA and electric generating plants decreased 5.6 percent in 2004 as compared with 2003 due to higher gas prices.
In 2004, because of the relative prices of gas and fuel oil, electric generating plants in the company’s gas service area utilized oil rather than gas for a significant portion of their generation.
The decline in gas usage had minimal impact on earnings due to the application of a fixed demand charge for local transportation.
Con Edison of New York’s purchased gas cost decreased $6 million in 2004 compared with 2003, due to lower delivery volumes, partially offset by higher unit costs.
Additional information for our significant US operating areas is as follows:


| At or for the year ended December 31 | Dollars in millions, except as noted | BALANCESHEETHIGHLIGHTS | Assets (b) (c) | Loans (c) (d) | Allowance for loan and lease losses (c) | Interest-earning deposits with banks (c) (e) | Investment securities (c) | Loans held for sale (d) | Goodwill and other intangible assets | Equity investments (b) (c) (f) | Noninterest-bearing deposits | Interest-bearing deposits | Total deposits | Transaction deposits (g) | Borrowed funds (c) (d) (h) | Total shareholders’ equity (b) | Common shareholders’ equity (b) | CLIENTINVESTMENTASSETS(billions) | Discretionary client assets under management | Nondiscretionary client assets under management | Total client assets under administration | Brokerage account client assets | Total | SELECTEDRATIOS | Net interest margin (i) | Noninterest income to total revenue | Efficiency (b) | Return on | Average common shareholders’ equity (b) | Average assets (b) | Loans to deposits | Dividend payout (b) | Transitional Basel III common equity Tier 1 capital ratio (j) (k) | Transitional Basel III Tier 1 risk-based capital ratio (j) (k) | Pro forma fully phased-in Basel III common equity Tier 1 capital ratio (k) (l) (m) | Basel I Tier 1 common capital ratio (m) | Basel I Tier 1 risk-based capital ratio (m) | Common shareholders’ equity to total assets (b) | Average common shareholders’ equity to average assets (b) | SELECTEDSTATISTICS | Employees | Retail Banking branches | ATMs | Residential mortgage servicing portfolio – Serviced for Third Parties (in billions) | Commercial mortgage servicing portfolio – Serviced for PNC and Others (inbillions) |


| December 31, 2009 December 31, 2008 | Amortized Cost-1 | (in millions) | Less than three months | Three months or greater but less than six months | Six months or greater but less than nine months | Nine months or greater but less than twelve months | Greater than twelve months | Total |


| December 31, 2005 2004 | (In millions) | Reinsurance receivables related to insurance reserves: | Ceded claim and claim adjustment expense | Ceded future policy benefits | Ceded policyholders’ funds | Billed reinsurance receivables | Reinsurance receivables | Allowance for uncollectible reinsurance | Reinsurance receivables, net of allowance for uncollectible reinsurance |


| Fiscal Year Ended July 1, 2005 Fiscal Year Ended July 2, 2004 | (in millions) | Balance, beginning of period | Warranties issued | Repairs and replacements | Changes in liability for pre-existing warranties, including expirations | Balance, end of period |


| Calculation of Proportional Free Cash Flow (in millions) 2015 2014 2013 2015/2014 Change 2014/2013 Change | Net Cash Provided by Operating Activities | Add: capital expenditures related to service concession assets-1 | Adjusted Operating Cash Flow | Less: proportional adjustment factor on operating cash activities-2 -3 | Proportional Adjusted Operating Cash Flow | Less: proportional maintenance capital expenditures, net of reinsurance proceeds-2 | Less: proportional non-recoverable environmental capital expenditures-2 -4 | Proportional Free Cash Flow |