Table of Contents ITEM 7 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS LIQUIDITY AND CAPITAL RESOURCES We recorded net earnings of $35.4 million or $1.18 per share in 2004, compared with $52.2 million or $1.76 per share recorded in 2003 and $51.3 million or $1.86 per share in 2002.
Net earnings recorded in 2004 were negatively impacted by cost increases to steel and freight, as well as manufacturing inefficiencies during the first nine months of the year in our Ashland City plant and higher selling, general and administrative expense (SG&A).
While net earnings were flat in 2003 compared with 2002, the lower earnings per share amount in 2003 as compared with 2002 reflected the full-year impact of our stock offering in May 2002.
Our individual segment performance will be discussed later in this section.
Our working capital, excluding short-term debt, was $339.8 million at December 31, 2004, compared with $305.9 million and $225.1 million at December 31, 2003, and December 31, 2002, respectively.
The $33.9 million increase in 2004 reflects $44.9 million higher receivable balances due to longer payment terms experienced by both of our businesses as well as higher sales levels in the fourth quarter.
Offsetting the increase in receivable balances were $13.5 million lower inventory levels split about equally between Water Systems and Electrical Products and $14.3 million higher accounts payable balances.
The $80.8 million increase in 2003 reflects $46.6 million higher inventory balances due primarily to extensive manufacturing repositioning in our electric motor business and several new product introductions and manufacturing consolidation in our water systems business.
Additionally, receivable balances were $21.2 million higher due to price increases associated with new product introductions in our water systems business and an increase in international sales, which tend to have longer payment terms.
Finally, a $13.1 million increase in accounts payable balances was largely offset by $9.4 million in restructuring expenses paid out in 2003.
Reducing working capital is one of our major initiatives in 2005.
Cash provided by operating activities during 2004 was $67.2 million compared with $29.0 million during 2003 and $116.0 million during 2002.
Despite lower earnings in 2004, a smaller investment in working capital explains the majority of the improvement in cash flow compared with 2003.
The higher investment in working capital in 2003 (as discussed above), explains the majority of the difference between 2003 and 2002.
Our capital expenditures were $48.5 million in 2004, essentially the same as in 2003 and approximately $2.2 million higher than in 2002.
The increase in 2003 was associated with new product launches in our water systems business.
We are projecting 2005 capital expenditures to be approximately $55 million, essentially the same as our projected 2005 depreciation expense.
We believe that our present facilities and planned capital expenditures are sufficient to provide adequate capacity for our operations in 2005.
In June 2004, we completed a $265 million, five-year revolving credit facility with a group of eight banks.
The new facility expires on June 10, 2009, and it replaced a $250 million credit facility which expired on August 2, 2004, and was terminated on June 10, 2004.
The new facility backs up commercial paper and credit line borrowings.
As a result of the long-term nature of this facility, the commercial paper and credit line borrowings are now classified as long-term debt.
At December 31, 2004, we had available borrowing capacity of $153.9 million under this facility.
We believe that the combination of available borrowing capacity and operating cash flow will provide sufficient funds to finance our existing operations for the foreseeable future.
To take advantage of historically low long-term borrowing rates, we issued $50.0 million in senior notes with two insurance companies in June 2003.
The notes range in maturity between 2013 and 2016 and carry a weighted average interest rate of slightly less than 4.5 percent.
The proceeds of the notes were used to repay commercial paper and borrowing under the credit facility.
Our leverage, as measured by the ratio of total debt to total capitalization, was 32 percent at the end of 2004 and the end of 2003.
Aggregate Contractual Obligations A summary of our contractual obligations as of December 31, 2004, is as follows:


| Equity Price Exposure to Pretax Income | Equity Price Decline 10% | (in millions) | Asset-based management and distribution fees-1 | DAC and DSIC amortization-2 (3) | Variable annuity riders: | GMDB and GMIB-3 | GMWB | GMAB | DAC and DSIC amortization-4 | Total variable annuity riders | Macro hedge program-5 | Equity indexed annuities | Certificates | Indexed universal life insurance | Total |


Table 29 presents commercial credit exposure by type for utilized, unfunded and total binding committed credit exposure.
Commercial utilized credit exposure includes funded loans, standby letters of credit, financial guarantees, bankers acceptances and commercial letters of credit for which the bank is legally bound to advance funds under prescribed conditions, during a specified period.
Although funds have not been advanced, these exposure types are considered utilized for credit risk management purposes.
Total commercial committed credit exposure decreased by $10.1 billion, or one percent, at December 31, 2009 compared to December 31, 2008.
The decrease was largely driven by reductions in loans and leases partially offset by an increase in derivatives due to the acquisition of Merrill Lynch.
Total commercial utilized credit exposure decreased to $494.4 billion at December 31, 2009 compared to $498.7 billion at December 31, 2008.
Funded loans and leases declined due to limited demand for acquisition financing and capital expenditures in the large corporate and middle-market portfolios and as clients utilized the improved capital markets more extensively for their funding needs.
With the economic outlook remaining uncertain, businesses are aggressively managing working capital and production capacity, maintaining low inventories and deferring capital spending.
The increase in derivative assets was driven by the acquisition of Merrill Lynch substantially offset during 2009 by maturing transactions, mark-to-market adjustments from changing interest and foreign exchange rates, as well as narrower credit spreads.
The loans and leases funded utilization rate was 57 percent at December 31, 2009 compared to 58 percent at December 31, 2008.


| At December 31, | (dollar amounts in thousands) | Commercial and industrial: | Lease payments receivable | Estimated residual value of leased assets | Gross investment in commercial lease financing receivables | Net deferred origination costs | Deferred fees | Total net investment in commercial lease financing receivables |


| 2019 2018 | Interest incurred | Less: Capitalized interest | Interest Expense |


| Balance at Average Balance-1 2013 | December 31, 2013 | (dollars in millions) | Common equity | Preferred equity | Morgan Stanley shareholders’ equity | Junior subordinated debentures issued to capital trusts | Less: Goodwill and net intangible assets-2 | Tangible Morgan Stanley shareholders’ equity | Common equity | Less: Goodwill and net intangible assets-2 | Tangible common equity-3 |


| 2011 2010 | Money market funds | Mutual funds | Total Deferred Compensation Plan investments |


| Year Ended October 31, $ Change % Change $ Change % Change | 2012 | (dollars in millions) | Interest income | Interest expense | Gain (loss) on assets related to executive deferred compensation plan | Foreign currency exchange gain (loss) | Other, net | Total |


| Years Ended December 31, Percentage Change | (in millions) | Revenues: | Premiums | Policy fees | Net investment income | Other income | Total operating revenue | Benefits and expenses: | Policyholder benefits and losses incurred | Interest credited to policyholder account balances | Amortization of deferred policy acquisition costs | General operating and other expenses* | Total operating expenses | Pre-tax operating income |


| 2011 2010 | Gross Unrealized | Fair Value | Corporate notes and bonds | Commercial paper | U.S. government and agency securities | Municipal securities | Asset-backed securities | Mortgage-backed securities | Foreign government bonds | Other debt securities | Equity securities | $5,069 | Years Ended December 31 | Beginning balance January 1 | Sales | Total realized and unrealized gains (losses)Included in: | Earnings-1 | Comprehensive income | Ending balance December 31 | Losses recorded in earnings for Level 3 assets still held atDecember 31 |


| Income before income taxes $660 | Provision for income taxes | Net Income |


| (In millions) 2017 2016 2015 | Cabinets | Plumbing | Doors | Security | Total |


McKESSON CORPORATION FINANCIAL NOTES (Continued) Other Defined Benefit Plans Under various U. S.  bargaining unit labor contracts, we make payments into multi-employer pension plans established for union employees.
We are liable for a proportionate part of the plans’ unfunded vested benefits liabilities upon our withdrawal from the plan, however information regarding the relative position of each employer with respect to the actuarial present value of accumulated benefits and net assets available for benefits is not available.
Contributions to the plans and amounts accrued were not material for the years ended March 31, 2006, 2005 and 2004.
Defined Contribution Plans We have a contributory profit sharing investment plan (“PSIP”) for U. S.  employees not covered by collective bargaining arrangements.
Eligible employees may contribute up to 20% of their compensation to an individual retirement savings account.
Prior to 2006, the Company made matching contributions equal to or greater than 50% of employee contributions, not to exceed 3% of employee compensation.
Effective April 1, 2005, the Company makes matching contributions in an amount equal to 100% of the employee’s first 3% of pay deferred, and 50% of the employee’s deferral for the next 2% of pay deferred.
The Company provides for the PSIP contributions primarily with its common shares through its leveraged ESOP or cash payments.
The ESOP has purchased an aggregate of 24 million shares of the Company’s common stock since its inception.
These purchases were financed by 10 to 20-year loans from or guaranteed by us.
The ESOP’s outstanding borrowings are reported as long-term debt of the Company and the related receivables from the ESOP are shown as a reduction of stockholders’ equity.
The loans are repaid by the ESOP from interest earnings on cash balances and common dividends on shares not yet allocated to participants, common dividends on certain allocated shares and Company cash contributions.
The ESOP loan maturities and rates are identical to the terms of related Company borrowings.
Stock is made available from the ESOP based on debt service payments on ESOP borrowings.
Contribution expense for the PSIP in 2006, 2005 and 2004 was primarily ESOP related.
After-tax ESOP expense and other contribution expense, including interest expense on ESOP debt, was $7 million, $9 million and $8 million in 2006, 2005 and 2004.
Approximately 1 million, 1 million and 2 million shares of common stock were allocated to plan participants in 2006, 2005 and 2004.
Through March 31, 2006, 23 million common shares have been allocated to plan participants, resulting in a balance of 2 million common shares in the ESOP, which have not yet been allocated to plan participants.15.
Other Postretirement Benefits We maintain a number of postretirement benefits, consisting of healthcare and life insurance benefits, for certain eligible U. S.  employees.
Eligible employees consist of those who retired before March 31, 1999 and those who retire after March 31, 1999, but were an active employee as of that date, after meeting other age-related criteria.
We also provide postretirement benefits for certain U. S.  executives.
The measurement date for our postretirement plans is December 31.


| Years Ended December 31, | 2015 | (in millions) | RiverSource Life | Statutory net gain from operations-1 | Statutory net income-1 | IDS Property Casualty | Statutory net income (loss) |


| Years Ended December 31 2017 2016 Change 2016 2015 In Millions Change | CMS Energy, including Consumers | Issuance of debt | Net increase in EnerBank certificates of deposit | Issuance of common stock | Retirement of debt | Debt prepayment costs | Payment of dividends on common and preferred stock | Change in notes payable | Other financing activities | Net cash provided by financing activities | Consumers | Issuance of debt | Stockholder contribution from CMS Energy | Payment of dividends on common and preferred stock | Retirement of debt | Debt prepayment costs | Change in notes payable | Other financing activities | Net cash provided by (used in) financing activities |


| Year OperatingLeases CapitalLeases | (In Thousands) | 2017 | 2018 | 2019 | 2020 | 2021 | Years thereafter | Minimum lease payments | Less: Amount representing interest | Present value of net minimum lease payments |


| Years Ended December 31, | (in millions, except per share data) | Revenues: | Premiums | Policy fees | Net investment income | Net realized capital gains (losses) | Aircraft leasing revenue | Other income | Total revenues | Benefits, losses and expenses: | Policyholder benefits and losses incurred | Interest credited to policyholder account balances | Amortization of deferred policy acquisition costs | General operating and other expenses | Interest expense | Aircraft leasing expenses | Net loss on extinguishment of debt | Net (gain) loss on sale of properties and divested businesses | Total benefits, losses and expenses | Income (loss) from continuing operations before income taxes | Income tax expense (benefit) | Income (loss) from continuing operations | Income (loss) from discontinued operations, net of taxes | Net income (loss) | Net income (loss) from continuing operations attributable | to noncontrolling interests | Net income (loss) attributable to AIG | Income (loss) per common share attributable to AIG | common shareholders | Basic | Income (loss) from continuing operations | Income (loss) from discontinued operations | Net income (loss) attributable to AIG | Diluted | Income (loss) from continuing operations | Income (loss) from discontinued operations | Net income (loss) attributable to AIG | Dividends declared per common share |


| (In thousands) | Balance as of December 31, 2006 | Gross amount of the decreases in unrecognized tax benefits of tax positions taken during a prior year | Gross amount of the increases in unrecognized tax benefits as a result of tax positions taken during the current year | Amount of decreases in unrecognized tax benefits relating to settlements with taxing authorities | Reductions to unrecognized tax benefits resulting from the lapse of the applicable statute of limitations | Balance as of December 29, 2007 |


| 2013 2012 2011 | Interest incurred | Less: Capitalized interest | Interest Expense |


Postretirement Health Care.
EOG has postretirement medical and dental benefits in place for eligible United States and Trinidad employees and their eligible dependents, the costs of which are not material.8.
Commitments and Contingencies Letters of Credit and Guarantees.
At December 31, 2016 and 2015, respectively, EOG had standby letters of credit and guarantees outstanding totaling approximately $226 million and $272 million, primarily representing guarantees of payment or performance obligations on behalf of subsidiaries.
As of February 20, 2017, there were no demands for payment under these guarantees.
The diluted earnings per share calculation excludes stock options, SARs, restricted stock and units and performance units and stock that were anti-dilutive.
Shares underlying the excluded stock options and SARs totaled 10.3 million, 10.2 million and 0.7 million for the years ended December 31, 2016, 2015 and 2014, respectively.
For the years ended December 31, 2016 and 2015, respectively, 4.5 million and 5.3 million shares of restricted stock and restricted stock units and performance units and performance stock were excluded.10.


| (Dollars in thousands) Pass Performing (Criticized) Impaired Total | December 31, 2011: | Commercial loans: | Software | Hardware | Venture capital/private equity | Life science | Premium wine | Other | Total commercial loans | Consumer loans: | Real estate secured loans | Other consumer loans | Total consumer loans | Total gross loans | December 31, 2010: | Commercial loans: | Software | Hardware | Venture capital/private equity | Life science | Premium wine | Other | Total commercial loans | Consumer loans: | Real estate secured loans | Other consumer loans | Total consumer loans | Total gross loans |


| Year Ended December 31, | Dollars in Millions, except per share data | Total Revenues | Total Expenses | Earnings before Income Taxes | Provision for Income Taxes | Effective tax rate | Net Earnings Attributable to BMS | GAAP | Non-GAAP | Diluted Earnings Per Share | GAAP | Non-GAAP | Cash, Cash Equivalents and Marketable Securities |


Cost of revenues increased by $5.822 billion in 2004 from 2003 and by $6.040 billion in 2003 from 2002.
The increases are primarily in the RM&T segment and result from higher acquisition costs for crude oil, refined products, refinery charge and blend feedstocks and increased manufacturing expenses.
Selling, general and administrative expenses increased by $105 million in 2004 from 2003 and by $97 million in 2003 from 2002.
The increase in 2004 was primarily due to increased stock-based compensation and higher costs associated with business transformation and outsourcing.
Our 2004 results were also impacted by start-up costs associated with the LNG project in Equatorial Guinea and the increased cost of complying with governmental regulations.
The increase in 2003 was primarily due to increased employee benefit expenses (caused by increased pension expense resulting from changes in actuarial assumptions and a decrease in realized returns on plan assets) and other employee related costs.
Additionally, during 2003, we recorded a charge of $24 million related to organizational and business process changes.


Financing Activities Net cash used in financing activities totaled $100.7 million for the year ended December 31, 2009.
The equity issuance generated cash proceeds of $441.8 million and proceeds from the exercise of options were $80.0 million.
These inflows were offset by the redemption of senior notes of $397.2 million, net repayments of our credit facility of $12.0 million, and the $168.9 million payment of dividends declared in January, April, July and October 2009.  Financing cash flows also include a payment of $8.9 million to purchase the remaining 24.9% of Invesco Real Estate GmbH not already held by the company, the controlling interest having been acquired in December 2003.
The net cash used in financing activities also includes a net $44.9 million of outflows related to consolidated investment products (2008: $125.3 million; 2007: $27.7 million).
Net cash used in financing activities decreased from $740.8 million in 2007 to $666.4 million in 2008, primarily due to lower levels of capital being returned through public stock repurchases of Invesco Ltd.  common stock, in form of treasury shares.
Cash used for treasury share purchases in 2008 totaled $313.4 million compared to $716.0 million in 2007.
Dividends Invesco declares and pays dividends on a quarterly basis in arrears.
The 2009 quarterly dividend was $0.1025 per Invesco Ltd.  common share.
On October 16, 2009, the company declared a third quarter cash dividend, which was paid on December 2, 2009, to shareholders of record as of November 18, 2009.
On January 27, 2010, the company declared a fourth quarter cash dividend, which will be paid on March 10, 2010, to shareholders of record as of February 23, 2010.
The total dividend attributable to the 2009 fiscal year of $0.41 per share represented a 2.5% increase over the total dividend attributable to the 2008 fiscal year of $0.40 per share.
The declaration, payment and amount of any future dividends will be declared by our board of directors and will depend upon, among other factors, our earnings, financial condition and capital requirements at the time such declaration and payment are considered.
The board has a policy of managing dividends in a prudent fashion, with due consideration given to profit levels, overall debt levels, and historical dividend payouts.
The following table sets forth the historical amounts for quarterly and total dividends per Invesco Ltd.  common share attributable to each period indicated.
Actual declaration of these dividends occurred in the following fiscal quarter.


| December 31, 2013 | Asset Category | (in millions) | Equity securities: | U.S. large cap stocks | U.S. small cap stocks | Non-U.S. large cap stocks | Non-U.S. small cap stocks | Emerging markets | Debt securities: | U.S. investment grade bonds | U.S. high yield bonds | Non-U.S. investment grade bonds | Real estate investment trusts | Hedge funds | Pooled pension funds | Cash equivalents | Total |


| Twelve months ended December 31, 2008 | (Millions of Dollars) | Con Edison of New York | O&R | Total Utilities | Con Edison Development (a) | Con Edison Energy (a) | Con Edison Solutions (a) | Other (b) | Total continuing operations | Discontinued operations (c) | Total Con Edison |


Employee Management Solutions (EMS) product revenue is derived primarily from QuickBooks Basic Payroll and QuickBooks Enhanced Payroll, which are products sold on a subscription basis that offer payroll tax tables, payroll reports, federal and state payroll tax forms, and electronic tax payment and filing to small businesses that prepare their own payrolls.
EMS service and other revenue is derived primarily from QuickBooks Online Payroll, QuickBooks Assisted Payroll, Intuit Online Payroll, Intuit Full Service Payroll, fees for direct deposit services, and fees for other small business payroll and employee management services.
Service and other revenue for this segment also includes interest earned on funds held for customers.
Fiscal 2012 Compared with Fiscal 2011 EMS total net revenue increased $55 million or 12% in fiscal 2012 compared with fiscal 2011.
Revenue was higher in fiscal 2012 due to customer growth in our Enhanced desktop payroll and online payroll solutions, improved customer adoption of payroll direct deposit services, and price increases for desktop payroll customers.
At July 31, 2012 total payroll customers were up 2% while online payroll customers were up 19% compared with July 31, 2011.
EMS segment operating income as a percentage of related revenue increased to 61% in fiscal 2012 from 59% in fiscal 2011.
Segment operating income was higher in fiscal 2012 due to the increases in revenue described above, partially offset by higher staffing expenses associated with growing our online payroll business.
Fiscal 2011 Compared with Fiscal 2010 EMS total net revenue increased $39 million or 10% in fiscal 2011 compared with fiscal 2010.
Revenue was higher in fiscal 2011 due to more customers choosing our Enhanced desktop payroll and online payroll solutions, improved customer adoption of payroll direct deposit services, and price increases for desktop payroll customers.
At July 31, 2011 total payroll customers were up 2% while online payroll customers were up 13% compared with July 31, 2010.
EMS segment operating income as a percentage of related revenue decreased slightly to 59% in fiscal 2011 from 60% in fiscal 2010.
Revenue growth as described above was partially offset by higher cost of revenue associated with offering mix.


| Vesting Date Restricted Stock Units | January 25, 2011 | January 25, 2012 | January 25, 2013 |


| March 31, | 2008 | (in $000’s) | Cost of product revenue | Research and development | Selling, general and administrative | $5,376 | 2006 (in $000’s) | Net loss, as reported | Add: Stock-based compensation included in reported net loss | Deduct: Total stock-based employee compensation expense determined underfair value based method for all awards | Pro forma net loss | Basic and diluted loss per share | As reported | Pro forma | Options (in thousands) | Outstanding at beginning of year | Granted | Exercised | Cancelled | Outstanding at end of year | Exercisable at end of year | Vested and Unvested expected to vest at end of year |


| Year ended December 31, | 2005 | (in millions) | Operating results: | Revenues | Expenses | Adjusted operating income-1 |


ImClone Acquisition On November 24, 2008, we acquired all of the outstanding shares of ImClone Systems Inc.  (ImClone), a biopharmaceutical company focused on advancing oncology care, for a total purchase price of approximately $6.5 billion, which was fi nanced through borrowings.
This strategic combination will offer both targeted therapies and oncolytic agents along with a pipeline spanning all phases of clinical development.
The combination also expands our biotechnology capabilities.
The acquisition has been accounted for as a business combination under the purchase method of accounting, resulting in goodwill of $419.5 million.
No portion of this goodwill is expected to be deductible for tax purposes.
Allocation of Purchase Price We are currently determining the fair values of a signifi cant portion of these net assets.
The purchase price has been preliminarily allocated based on an estimate of the fair value of assets acquired and liabilities assumed as of the date of acquisition.
The fi nal determination of these fair values will be completed as soon as possible but no later than one year from the acquisition date.
Although the fi nal determination may result in asset and liability fair values that are different than the preliminary estimates of these amounts included herein, it is not expected that those differences will be material to our fi nancial results.


| May 27, 2012 May 29, 2011 | In Millions | U.S. commercial paper | Financial institutions | Total |


NOTE 10.
RESTRUCTURING Fiscal 2014 Restructuring Plan In the fourth quarter of fiscal 2014, in order to better align our global resources for Digital Media and Digital Marketing, we initiated a restructuring plan to vacate our Research and Development facility in China and our Sales and Marketing facility in Russia.
This plan consisted of reductions of approximately 350 full-time positions and we recorded restructuring charges of approximately $18.8 million related to ongoing termination benefits for the positions eliminated.
During fiscal 2015, we intend to vacate both of these facilities.
The amount accrued for the fair value of future contractual obligations under these operating leases was insignificant.
Other Restructuring Plans During the past several years, we have implemented Other Restructuring Plans consisting of reductions in workforce and the consolidation of facilities to better align our resources around our business strategies.
As of November 28, 2014, we considered our Other Restructuring Plans to be substantially complete.
We continue to make cash outlays to settle obligations under these plans, however the current impact to our Consolidated Financial Statements is not significant.


| Year Ended December 31 2007 2006 2005 | (In millions) | Net earned premiums | Net investment income | Net operating loss | Net realized investment losses | Net loss |


Notes to the Consolidated Financial Statements The Crown Group On October 2, 2017, PPG acquired The Crown Group (Crown), a U. S. -based coatings application services business, which is reported as part of PPG's Industrial Coatings reportable segment.
Crown is one of the leading component and product finishers in North America.
Crown applies coatings to customers manufactured parts and assembled products at 11 U. S.  sites.
Most of Crowns facilities, which also provide assembly, warehousing and sequencing services, are located at customer facilities or positioned near customer manufacturing sites.
The company serves manufacturers in the automotive, agriculture, construction, heavy truck and alternative energy industries.
The pro-forma impact on PPG's sales and results of operations, including the pro forma effect of events that are directly attributable to the acquisition, was not significant.
The results of this business since the date of acquisition have been reported within the industrial coatings business within the Industrial Coatings reportable segment.
Taiwan Chlorine Industries Taiwan Chlorine Industries (TCI) was established in 1986 as a joint venture between PPG and China Petrochemical Development Corporation (CPDC) to produce chlorine-based products in Taiwan, at which time PPG owned 60 percent of the venture.
In conjunction with the 2013 separation of its commodity chemicals business, PPG conveyed to Axiall Corporation (
Axiall) its 60% ownership interest in TCI.
Under PPGs agreement with CPDC, if certain post-closing conditions were not met following the three year anniversary of the separation, CPDC had the option to sell its 40% ownership interest in TCI to Axiall for $100 million.
In turn, Axiall had a right to designate PPG as its designee to purchase the 40% ownership interest of CPDC.
In April 2016, Axiall announced that CPDC had decided to sell its ownership interest in TCI to Axiall.
In June 2016, Axiall formally designated PPG to purchase the 40% ownership interest in TCI.
In August 2016, Westlake Chemical Corporation acquired Axiall, which became a wholly-owned subsidiary of Westlake.
In April 2017, PPG finalized its purchase of CPDCs 40% ownership interest in TCI.
The difference between the acquisition date fair value and the purchase price of PPGs 40% ownership interest in TCI has been recorded as a loss in discontinued operations during the year-ended December 31, 2017.
PPGs ownership in TCI is accounted for as an equity method investment and the related equity earnings are reported within Other income in the consolidated statement of income and in Legacy in Note 20, Reportable Business Segment Information.
 MetoKote Corporation In July 2016, PPG completed the acquisition of MetoKote Corporation (
MetoKote), a U. S. -based coatings application services business.
MetoKote applies coatings to customers' manufactured parts and assembled products.
It operates onsite coatings services within several customer manufacturing locations, as well as at regional service centers, located throughout the U. S. , Canada, Mexico, the United Kingdom, Germany, Hungary and the Czech Republic.
Customers ship parts to METOKOTE?
service centers where they are treated to enhance paint adhesion and painted with electrocoat, powder or liquid coatings technologies.
Coated parts are then shipped to the customers next stage of assembly.
MetoKote coats an average of more than 1.5 million parts per day.
The following table summarizes the estimated fair value of assets acquired and liabilities assumed as reflected in the final purchase price allocation for MetoKote.


| December 31, | 2009 | (In millions) | Balance Sheet Data -1 | Assets: | General account assets | Separate account assets | Total assets | Liabilities: | Policyholder liabilities -2 | Payables for collateral under securities loaned and other transactions | Bank deposits | Short-term debt | Long-term debt | Collateral financing arrangements | Junior subordinated debt securities | Other | Separate account liabilities | Total liabilities | Stockholders’ Equity: | MetLife, Inc.’s stockholders’ equity: | Preferred stock, at par value | Common stock, at par value | Additional paid-in capital | Retained earnings | Treasury stock, at cost | Accumulated other comprehensive income (loss) | Total MetLife, Inc.’s stockholders’ equity | Noncontrolling interests | Total equity | Total liabilities and stockholders’ equity |


| At December 31, 2014 | Life | Cash and invested assets | Accrued investment income | Deferred acquisition costs | Goodwill | Other assets | Total assets | At December 31, 2013* | Life | Cash and invested assets | Accrued investment income | Deferred acquisition costs | Goodwill | Other assets | Total assets | At December 31, 2014 | Life | Future policy benefits | Unearned and advance premium | Policy claims and other benefits payable | Debt | Total | At December 31, 2013* | Life | Future policy benefits | Unearned and advance premium | Policy claims and other benefits payable | Debt | Total |


| Year Ended December 31, | 2003 | (in thousands of U.S. dollars, except per share amounts) | Operating Data: | Revenues | Operating income -1 (4) | Income (loss) before taxes (4) | Net income (loss) (2) | Net income (loss) per share | Basic -2 | Diluted -2 | Other Data: | Depreciation and amortization | Capital expenditures | Balance Sheet Data: | Working capital | Total assets | Long-term debt, less current maturities | Stockholders’ equity | Payment Due by Period | Total | Contractual Obligations: | Total debt | Operating leases | Total Contractual Obligations | Commercial Commitments: | Standby letters of credit | Acquisition | ASEP Group Holding B.V. | ANS -1001 Ltd. (“Anson”) | Spirit Drilling Fluids Ltd. | Spirit Minerals L.P. | Rincon de los Sauces InspectionOperation | Western Thunderhorse | South Seas Inspection | Hochang Machinery Industries Co., Ltd. | Stork MSW | 2012 | 2013 | 2014 | 2015 | 2016 | Thereafter | Total future lease commitments | Years Ended December 31, | 2011 | Number of Shares | Shares under option at beginning of year | Granted | Cancelled | Exercised | Shares under option at end of year | Exercisable at end of year |


| December 31, 2015 December 31, 2014 | Level 1 | Cash and cash equivalents | Equity securities: | U.S.-based companies | International-based companies | Fixed-income securities: | Government bonds | Corporate bonds and debt securities | Mutual, pooled and commingled funds | Hedge funds/limited partnerships | Real estate | Other | Total |


| As of February 29 or 28 | (In thousands) | Revolving credit facility | Term loan | Finance and capital lease obligations | Non-recourse notes payable | Total debt | Less: current portion | Long-term debt, net of current portion |


The deferred fuel cost revisions variance resulted from a revised unbilled sales pricing estimate made in December 2002 and a further revision made in the first quarter of 2003 to more closely align the fuel component of that pricing with expected recoverable fuel costs.
The asset retirement obligation variance was due to the implementation of SFAS 143,
Accounting for Asset Retirement Obligations,
adopted in January 2003.
See
Critical Accounting Estimates
for more details on SFAS 143.
The increase was offset by decommissioning expense and had no effect on net income.
The volume variance was due to a decrease in electricity usage in the service territory.
Billed usage decreased 1,868 GWh in the industrial sector including the loss of a large industrial customer to cogeneration.


Year ended September 30, 2008 Compared with the Year ended September 30, 2007 - Proprietary Capital Proprietary Capital results in fiscal year 2008 were driven by the valuations within Raymond James Capital Partners, L. P. , Ballast Point Ventures I and II, L. P. , the EIF Funds, our direct merchant banking investments managed by Raymond James Capital, Inc.  and the third-party private equity funds in which RJF was invested.
During fiscal 2008, our direct merchant banking investments, Raymond James Capital Partners L. P.  and RJF private equity investment portfolio increased in value by $3 million, $8.2 million and $4 million, respectively.


Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis imprudence by the Utility operating companies in their execution of their obligations under the System Agreement.
See Note 2 to the financial statements for discussions of this litigation.
In November 2012 the Utility operating companies filed amendments to the System Agreement with the FERC pursuant to section 205 of the Federal Power Act.
The amendments consist primarily of the technical revisions needed to the System Agreement to (i) allocate certain charges and credits from the MISO settlement statements to the participating Utility operating companies; and (ii) address Entergy Arkansas’s withdrawal from the System Agreement.
The LPSC, MPSC, PUCT, and City Council filed protests at the FERC regarding the amendments and other aspects of the Utility operating companies’ future operating arrangements, including requests that the continued viability of the System Agreement in MISO (among other issues) be set for hearing by the FERC.
In December 2013 the FERC issued an order accepting the revisions filed in November 2012, subject to a further compliance filing and other conditions.
Entergy Services made the requisite compliance filing in February 2014 and the FERC accepted the compliance filing in November 2015.
In the November 2015 order, the FERC required Entergy Services to file a refund report consisting of the results of the intra-system bill rerun from December 19, 2013 through November 30, 2015 calculating the use of an energy-based allocator to allocate losses, ancillary services charges and credits, and uplift charges and credits to load of each participating Utility operating company.
The filing shows the following payments and receipts among the Utility operating companies:


(a) Specialty products include dental, vision, and other supplemental health and financial protection products.
Members included in these products may not be unique to each product since members have the ability to enroll in multiple products.
Expenses Total expenses, which exclude the market impact on indexed universal life benefits (net of hedges and the related DAC amortization), increased $191 million, or 10%, to $2.0 billion for the year ended December 31, 2014 compared to $1.9 billion for the prior year primarily due to higher benefits, claims, losses and settlement expenses related to our auto and home business.
Benefits, claims, losses and settlement expenses, which exclude the market impact on indexed universal life benefits (net of hedges), increased $164 million, or 13%, to $1.4 billion for the year ended December 31, 2014 compared to $1.3 billion for the prior year due to a $163 million increase in provision for estimated losses related to our auto and home business reflecting the impact of growth in exposures from an 11% increase in policies in force, an increase in catastrophe losses reflecting the growth in exposures and the extremely severe winter and spring weather during 2014, and adverse development in the 2013 and prior accident years auto liability coverage observed during the first quarter of 2014 resulting in a $30 million increase to prior accident year loss reserves.
Later in 2014, further adverse loss development was observed primarily in the 2014 auto book of business which resulted in a $60 million increase to loss reserves for estimated losses including IBNR.
Catastrophe losses were $66 million for the year ended December 31, 2014 compared to $42 million for the prior year.
The 2015 accident year non-catastrophe auto loss development is expected to trend approximately level with the 2014 accident year loss experience.
Corporate & Other Our Corporate & Other segment consists of net investment income or loss on corporate level assets, including excess capital held in our subsidiaries and other unallocated equity and other revenues as well as unallocated corporate expenses.
The Corporate & Other segment also includes revenues and expenses of CIEs, which are excluded on an operating basis.
NM Not Meaningful.
Our Corporate & Other segment pretax operating loss excludes net realized gains or losses and the impact of consolidating CIEs.
Our Corporate & Other segment pretax operating loss was $230 million for the year ended December 31, 2014 compared to $229 million for the prior year.
Net investment income (loss) was a loss of $6 million for the year ended December 31, 2014 compared to income of $8 million for the prior year due to a $13 million increase in losses associated with affordable housing partnerships.
Interest and debt expense decreased $12 million, or 36%, to $21 million for the year ended December 31, 2014 compared to $33 million for the prior year primarily due to $19 million in costs in 2013 related to the early redemption of our senior notes due 2015, partially offset by expenses in 2014 related to the early redemption of our senior notes due 2039.
General and administrative expense for the year ended December 31, 2014 included a provision for potential resolution of a regulatory matter regarding certain historical events and processes at one of our ongoing lines of business, which was partially offset by lower investment spending compared to the prior year.
Restricted shares issued under the Tektronix Plans were granted subject to certain time-based vesting restrictions such that the restricted share awards fully vested after a period of five years.
The holders of these restricted shares had the right to vote such shares and receive dividends and the shares were considered issued and outstanding at the date the award was granted.
As of December 31, 2014, all of the restricted shares and RSUs granted under the Tektronix Plans have fully vested.
The options, RSUs and restricted shares generally vest only if the employee is employed by the Company (or in the case of directors, the director continues to serve on the Company Board) on the vesting date or in other limited circumstances.
To cover the exercise of options and vesting of RSUs, the Company generally issues new shares from its authorized but unissued share pool, although it may instead issue treasury shares in certain circumstances.
In connection with the NetScout transaction disclosed in Note 3, the Company has agreed to: (i) allow stock options held by employees of the Company's communications business that are scheduled to vest between the closing date and August 4, 2015 to vest in accordance with their terms and remain exercisable for up to 90 days following such vesting date, and (ii) allow RSUs held by employees of the Company's communications business that are scheduled to vest between the closing date and August 4, 2015 to vest in accordance with their terms.
As of December 31, 2014, approximately 25 million shares of the Companys common stock were reserved for issuance under the 2007 Stock Incentive Plan.
The Company accounts for stock-based compensation by measuring the cost of employee services received in exchange for all equity awards granted, including stock options, RSUs and restricted shares, based on the fair value of the award as of the grant date.
The Company recognizes the compensation expense over the requisite service period (which is generally the vesting period but may be shorter than the vesting period if the employee becomes retirement eligible before the end of the vesting period).
The fair value for RSU and restricted stock awards was calculated using the closing price of the Companys common stock on the date of grant, adjusted for the fact that RSUs do not accrue dividends.
The fair value of the options granted was calculated using a Black-Scholes Merton option pricing model (Black-Scholes).


Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources – CNA Financial – (Continued) CNA has an effective Registration Statement on Form S-3 registering the future sale of an unlimited amount of its debt and equity securities.
Dividends Dividends of $3.00 per share of CNA’s common stock, including a special dividend of $2.00 per share, were declared and paid in 2015.
On February 5, 2016, CNA’s Board of Directors declared a quarterly dividend of $0.25 per share and a special dividend of $2.00 per share, payable March 9, 2016 to shareholders of record on February 22, 2016.
The declaration and payment of future dividends is at the discretion of CNA’s Board of Directors and will depend on many factors, including CNA’s earnings, financial condition, business needs, and regulatory constraints.
Ratings Ratings are an important factor in establishing the competitive position of insurance companies.
CNA’s insurance company subsidiaries are rated by major rating agencies and these ratings reflect the rating agency’s opinion of the insurance company’s financial strength, operating performance, strategic position and ability to meet its obligations to policyholders.
Agency ratings are not a recommendation to buy, sell or hold any security and may be revised or withdrawn at any time by the issuing organization.
Each agency’s rating should be evaluated independently of any other agency’s rating.
One or more of these agencies could take action in the future to change the ratings of CNA’s insurance subsidiaries.
The table below reflects the various group ratings issued by A. M.  Best Company (“A.
M.  Best”), Moody’s Investors Service, Inc.  (“Moody’s”) and Standard & Poor’s (“S&P”).
The table also includes the ratings for CNA senior debt.


Treasury’s net income in 2014 compared to a net loss in 2013 primarily reflects a $57.3 million increase in net interest income.
The improvement in net interest income primarily reflects lower net FTP funding costs and an increase in securities income, partially offset by an increase in interest expense.
The increase in non-interest income primarily reflects increases in net security gains and BOLI income.
The increase in non-interest expense primarily reflects increases in both direct and allocated expenses.
Average total assets increased $246 million in 2014 compared to 2013, reflecting increases in average securities and average short-term investments.
The $2.1 billion increase in average total liabilities in 2014 compared to 2013 reflects increases in average brokered deposits, average total borrowings and average notes and debentures ($400 million of subordinated notes were issued in June 2014).


| December 31, 2015 December 31, 2014-1 | In millions of dollars, except ratios | Common Equity Tier 1 Capital | Tier 1 Capital | Total Capital (Tier 1 Capital + Tier 2 Capital)(2) | Total Risk-Weighted Assets | Common Equity Tier 1 Capital ratio-3-4 | Tier 1 Capital ratio-3-4 | Total Capital ratio-3-4 |


| December 31, | 2003 | Carrying Amount | (Dollars in thousands) | Financial assets: | Cash and due from banks | Federal funds sold and securities purchased under agreement to resell | Investment securities, at fair value | Non-marketable securities | Net loans | Financial liabilities: | Noninterest-bearing demand deposits | NOW deposits | Money market deposits | Time deposits | Short-term borrowings | Long-term debt | Off-balance sheet financial assets: | Commitments to extend credit |


| Years Ended December 31 2011 2010 2009 | Interest income | Interest expense | Exchange losses (gains) | Other, net | $946 |


| 2007 $1,131,677 | 2008 | 2009 | 2010 | 2011 | Thereafter | Total |


| SharesAuthorizedand Outstanding Call Price perShare as ofDecember 31, 2017 | 2017 | Entergy Mississippi Preferred Stock | Without sinking fund: | Cumulative, $100 par value: | 4.36% Series | 4.56% Series | 4.92% Series | Total without sinking fund |


Note 24  Preferred stock JPMorgan Chase is authorized to issue 200 million shares of preferred stock, in one or more series, with a par value of $1 per share.
On April 23, 2008, the Firm issued 600,000 shares of Fixed to Floating Rate Noncumulative Perpetual Preferred Stock, Series I (Series I).
On July 15, 2008, each series of Bear Stearns preferred stock then issued and outstanding was exchanged into a series of JPMorgan Chase preferred stock (Cumulative Preferred Stock, Series E, Series F and Series G) having substantially identical terms.
As a result of the exchange, these preferred shares rank equally with the other series of the Firms preferred stock.
On August 21, 2008, the Firm issued 180,000 shares of 8.625% Noncumulative Perpetual Preferred Stock, Series J (Series J).
On October 28, 2008, pursuant to the U. S.  Department of the Treasurys (the U.
S.  Treasury) Capital Purchase Program (the Capital Purchase Program), the Firm issued to the U. S.  Treasury, in exchange for total proceeds of $25.0 billion, (i) 2.5 million shares of the Firms Fixed Rate Cumulative Perpetual Preferred Stock, Series K, par value $1 per share and liquidation preference $10,000 per share (the Series K Preferred Stock), and (ii) a warrant to purchase 88,401,697 shares of the Firms common stock at an exercise price of $42.42 per share (the Warrant).
The $25.0 billion proceeds were allocated to the Series K Preferred Stock and the Warrant based on the relative fair value of the instruments.
The difference between the initial carrying value of $23.7 billion that was allocated to the Series K Preferred Stock and its redemption value of $25.0 billion will be charged to retained earnings (with a corresponding increase in the carrying value of the Series K Preferred Stock) over the first five years of the contract as an adjustment to the dividend yield using the effective yield method.
The Series K Preferred Stock is nonvoting, qualifies as Tier 1 capital and ranks equally with the Firms other series of preferred stock.
In the event of a liquidation or dissolution of the Firm, JPMorgan Chases preferred stock then outstanding takes precedence over the Firms common stock for the payment of dividends and the distribution of assets.
Generally, dividends on shares of outstanding series of preferred stock are payable quarterly.
Dividends on the shares of Series I preferred stock are payable semiannually at a fixed annual dividend rate of 7.90% through April 2018, and then become payable quarterly at an annual dividend rate of three-month LIBOR plus 3.47%.
Dividends are payable quarterly on the Series K Preferred Stock at a fixed annual dividend rate of 5% for the first five years, and a fixed annual dividend rate of 9% thereafter.
The effective dividend yield of Series K Preferred stock is 6.16%.
The following is a summary of JPMorgan Chase preferred stock outstanding as of December 31, 2008.


(3) Significant Acquisitions and Dispositions 2010 Acquisition of Remaining Interest in Dugan Realty, L. L. C.  On July 1, 2010, we acquired our joint venture partners 50% interest in Dugan Realty, L. L. C.  (Dugan), a real estate joint venture that we had previously accounted for using the equity method, for a payment of $166.7 million.
Dugan held $28.1 million of cash at the time of acquisition, which resulted in a net cash outlay of $138.6 million.
As the result of this transaction we obtained 100% of Dugans membership interests.
At the date of acquisition, Dugan owned 106 industrial buildings totaling 20.8 million square feet and 63 net acres of undeveloped land located in Midwest and Southeast markets.
Dugan had a secured loan with a face value of $195.4 million due in October 2010, which was repaid at its scheduled maturity date, and a secured loan with a face value of $87.6 million due in October 2012 (see Note 8).
The acquisition was completed in order to pursue our strategy to increase our overall allocation to industrial real estate assets.
The following table summarizes our allocation of the fair value of amounts recognized for each major class of assets and liabilities (in thousands):


| Year ended December 31, 2005 | Revenues | (in millions) | Financial Services Businesses: | Individual Life | Individual Annuities | Group Insurance | Total Insurance Division | Asset Management | Financial Advisory | Retirement | Total Investment Division | International Insurance | International Investments | Total International Insurance and Investments Division | Corporate Operations | Real Estate and Relocation Services | Total Corporate and Other | Total | Realized investment gains (losses), net, and related adjustments | Charges related to realized investment gains (losses), net | Investment gains (losses) on trading account assets supporting insurance liabilities, net | Change in experience-rated contractholder liabilities due to asset value changes | Divested businesses | Equity in earnings of operating joint ventures | Total Financial Services Businesses | Closed Block Business | Total per Consolidated Financial Statements |


Stock Repurchases Our Board of Directors may authorize the purchase of our common shares.
Under our share repurchase authorization, shares may have been purchased from time to time at prevailing prices in the open market, by block purchases, through plans designed to comply with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, or in privately-negotiated transactions (including pursuant to accelerated share repurchase agreements with investment banks), subject to certain regulatory restrictions on volume, pricing, and timing.
On February 14, 2017, our Board of Directors authorized the repurchase of up to $2.25 billion of our common shares expiring on December 31, 2017, exclusive of shares repurchased in connection with employee stock plans.
On February 16, 2017, we entered into an accelerated share repurchase agreement, the February 2017 ASR, with Goldman, Sachs & Co.  LLC, or Goldman Sachs, to repurchase $1.5 billion of our common stock as part of the $2.25 billion share repurchase authorized on February 14, 2017.
On February 22, 2017, we made a payment of $1.5 billion to Goldman Sachs from available cash on hand and received an initial delivery of 5.83 million shares of our common stock from Goldman Sachs based on the then current market price of Humana common stock.
The payment to Goldman Sachs was recorded as a reduction to stockholders’ equity, consisting of a $1.2 billion increase in treasury stock, which reflected the value of the initial 5.83 million shares received upon initial settlement, and a $300 million decrease in capital in excess of par value, which reflected the value of stock held back by Goldman Sachs pending final settlement of the February 2017 ASR.
Upon settlement of the February 2017 ASR on August 28, 2017, we received an additional 0.84 million shares as determined by the average daily volume weighted-average share price of our common stock during the term of the agreement of $224.81, less a discount and subject to adjustments pursuant to the terms and conditions of the February 2017 ASR, bringing the total shares received under this program to 6.67 million.
In addition, upon settlement we reclassified the $300 million value of stock initially held back by Goldman Sachs from capital in excess of par value to treasury stock.
Subsequent to settlement of the February 2017 ASR, we repurchased an additional 3.04 million shares in the open market, utilizing the remaining $750 million of the $2.25 billion authorization prior to expiration.
On December 14, 2017, our Board of Directors authorized the repurchase of up to $3.0 billion of our common shares expiring on December 31, 2020, exclusive of shares repurchased in connection with employee stock plans.


7.
Reinsurance Generally, the Company reinsures 90% of the death benefit liability related to almost all individual fixed and variable universal life and term life insurance products.
As a result, the Company typically retains and is at risk for, at most, 10% of each policy’s death benefit from the first dollar of coverage for new sales of these policies, subject to the reinsurers fulfilling their obligations.
The Company began reinsuring risks at this level during 2001 (2002 for RiverSource Life of NY) for term life insurance and 2002 (2003 for RiverSource Life of NY) for individual fixed and variable universal life insurance.
Policies issued prior to these dates are not subject to these same reinsurance levels.
Generally, the maximum amount of life insurance risk retained by the Company is $1.5 million on a single life and $1.5 million on any flexible premium survivorship life policy.
Risk on fixed and variable universal life policies is reinsured on a yearly renewable term basis.
Risk on most term life policies starting in 2001 (2002 for RiverSource Life of NY) is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy.
For existing LTC policies, the Company ceded 50% of the risk on a coinsurance basis to subsidiaries of Genworth Financial, Inc.  (‘‘Genworth’’) and retained the remaining risk.
For RiverSource Life of NY, this reinsurance arrangement applies for 1996 and later issues only.
Generally, the Company retains at most $5,000 per month of risk per life on DI policies sold on policy forms introduced in most states in October 2007 (August 2010 for RiverSource Life of NY) and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies.
The Company retains all risk for new claims on DI contracts sold on other policy forms.
The Company also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions.
At December 31, 2012 and 2011, traditional life and UL insurance in force aggregated $191.4 billion and $191.2 billion, respectively, of which $138.6 billion and $136.2 billion were reinsured at the respective year ends.
Life insurance in force is reported on a statutory basis.
The Company also reinsures a portion of the risks associated with its personal auto, home and umbrella insurance products through three types of reinsurance agreements with unaffiliated reinsurance companies.
The Company purchases reinsurance with a limit of $5 million per loss and the Company retains $750,000 per loss.
The Company purchases catastrophe reinsurance that, for 2012, had a limit of $110 million per event and the Company retained $20 million per event.
For 2013, the Company’s catastrophe reinsurance has a limit of $125 million per event and we retain $20 million per event.
The Company also cedes 90% of every personal umbrella loss with a limit of $5 million.


ITEM 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS For the information required by this Item 12 with respect to beneficial ownership of our common stock, see “Security Ownership of Certain Beneficial Owners and Management” in the Proxy Statement for our 2016Annual Meeting, which information is incorporated herein by reference.
The following table sets forth certain information as of December 31, 2015 regarding our equity plans :


Assets under management generate fees based on a percentage of their market value.
They consist largely of mutual funds and separate accounts, which are comprised of money market products, equities, and taxable and nontaxable fixed income securities.
Compared to 2003, assets under management increased $154.8 billion, or 52 percent, due to the addition of $148.9 billion of FleetBoston assets under management and increased market valuation partially offset by outflows primarily in money market products.
Client brokerage assets, a source of commission revenue, were up $61.1 billion, or 69 percent, due to the addition of $55.4 billion FleetBoston client brokerage assets.
Client brokerage assets consist largely of investments in annuities, money market mutual funds, bonds and equities.
Assets in custody increased $57.1 billion, or 114 percent, and represent trust assets administered for customers.
The addition of $54.5 billion of assets in custody from FleetBoston drove the increase.
Trust assets encompass a broad range of asset types including real estate, private company ownership interest, personal property and investments.
Noninterest Income consists primarily of Investment and Brokerage Services, which represents fees earned on client assets, as well as brokerage commissions and trailer fees.
Investment and Brokerage Services revenue increased $1.1 billion, or 71 percent, to $2.7 billion.
The increase in Investment and Brokerage Services revenue was primarily due to growth in all client assets categories, driven by the addition of FleetBoston.
The impact of FleetBoston on Investment and Brokerage Services was $974 million.
Noninterest Expense increased $1.3 billion, or 64 percent, due to the $889 million increase in expenses related to the inclusion of FleetBoston and this segments allocation of the mutual fund settlement, which amounted to approximately $143 million pre-tax.
Also impacting Noninterest Expense was an increase in Personnel Expense reflecting the addition of 637 client managers in Premier Banking, additional financial advisors in BAI and increased incentives in BAI due to increased sales and changes to payout schedules.


| Regulated Electric Utility Regulated Natural Gas Utility All Other Reconciling Eliminations Consolidated Total | (Thousands of Dollars) | 2006 | Operating revenues from external customers | Intersegment revenues | Total revenues | Depreciation and amortization | Financing costs, mainly interest expense | Income tax expense (benefit) | Income (loss) from continuing operations | 2005 | Operating revenues from external customers | Intersegment revenues | Total revenues | Depreciation and amortization | Financing costs, mainly interest expense | Income tax expense (benefit) | Income (loss) from continuing operations | 2004 | Operating revenues from external customers | Intersegment revenues | Total revenues | Depreciation and amortization | Financing costs, mainly interest expense | Income tax expense (benefit) | Income (loss) from continuing operations |


Fuel expenses decreased $14 million in 2016 compared with 2015 due to lower unit costs ($19 million), offset by higher sendout volumes from the companys electric generating facilities ($5 million).
Other operations and maintenance expenses decreased $49 million in 2016 compared with 2015 due primarily to a decrease in the surcharges for assessments and fees that are collected in revenues from customers ($52 million) and lower uncollectible expense ($12 million), offset in part by higher costs for municipal infrastructure support ($8 million).
Depreciation and amortization increased $45 million in 2016 compared with 2015 due primarily to higher electric utility plant balances.
Taxes, other than income taxes increased $54 million in 2016 compared with 2015 due primarily to higher property taxes ($66 million), offset in part by lower state and local revenue taxes ($4 million), a favorable state audit settlement ($3 million), lower sales and use tax reserve based on a favorable audit settlement ($3 million) and lower payroll taxes ($2 million).
Gas CECONYs results of gas operations for the year ended December 31, 2016 compared with the year ended December 31, 2015 is as follows


Item 7A.
Quantitative and Qualitative Disclosures About Market Risk (Amounts in millions) In the normal course of business, we are exposed to market risks related to interest rates, foreign currency rates and certain balance sheet items.
From time to time, we use derivative instruments, pursuant to established guidelines and policies, to manage some portion of these risks.
Derivative instruments utilized in our hedging activities are viewed as risk management tools and are not used for trading or speculative purposes.
Interest Rates Our exposure to market risk for changes in interest rates relates primarily to the fair market value and cash flows of our debt obligations.
The majority of our debt (approximately 91% and 86% as of December 31, 2014 and 2013, respectively) bears interest at fixed rates.
We do have debt with variable interest rates, but a 10% increase or decrease in interest rates would not be material to our interest expense or cash flows.
The fair market value of our debt is sensitive to changes in interest rates, and the impact of a 10% change in interest rates is summarized below.


| (in 000s) | Asset (Liability) Balance at April 30, | 2005 | Interest rate swaps | Interest rate caps | Rate-lock equivalents | Prime short sales | $11,129 |


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


| 2009 2008 2007 | (Thousands of Dollars) | Interest income | Other nonoperating income | Insurance policy (expenses) income | Other nonoperating expenses | Other income, net |


| Post-TDR Recorded Investment (c) | During the year ended December 31, 2012Dollars in millions | Commercial lending | Commercial | Commercial real estate | Equipment lease financing | Total commercial lending | Consumer lending | Home equity | Residential real estate | Credit card | Other consumer | Total consumer lending | Total TDRs | During the year ended December 31, 2011 (e)Dollars in millions | Commercial lending | Commercial | Commercial real estate | Equipment lease financing (d) | Total commercial lending | Consumer lending | Home equity | Residential real estate | Credit card | Other consumer | Total consumer lending | Total TDRs |


| In millions of dollars 2009 2008 2007 % Change 2009 vs. 2008 % Change 2008 vs. 2007 | Net interest revenue | Non-interest revenue | Total revenues, net of interest expense | Total operating expenses | Net credit losses | Credit reserve build/(release) | Provision for benefits and claims | Provision for unfunded lending commitments | Provisions for loan losses and for benefits and claims | Income (loss) from continuing operations before taxes | Income taxes (benefits) | Income (loss) from continuing operations | Net income attributable to noncontrolling interests | Net income (loss) | Average assets(in billions of dollars) | Net credit losses as a percentage of average loans |


| December 31, 2015(in billions, except ratio data) Total assets at fair value Total level 3 assets | Trading debt and equity instruments | Derivative receivables(a) | Trading assets | AFS securities | Loans | MSRs | Private equity investments(b) | Other | Total assets measuredat fair value on a recurring basis | Total assets measured at fair value on a nonrecurring basis | Total assets measuredat fair value | Total Firm assets | Level 3 assets as a percentage of total Firm assets(a) | Level 3 assets as a percentage of total Firm assets at fair value(a) | 2015 | December 31, (in millions) | Loans(a) | Nonaccrual loans | Loans reported as trading assets | Loans | Subtotal | All other performing loans | Loans reported as trading assets | Loans | Total loans | Long-term debt | Principal-protected debt | Nonprincipal-protected debt(b) | Total long-term debt | Long-term beneficial interests | Nonprincipal-protected debt | Total long-term beneficial interests |


| Year Ended December 31, | (In millions) | North America E&P | International E&P | Oil Sands Mining(a) | Corporate | Total capital expenditures | Change in capital expenditure accrual | Additions to property, plant and equipment |


| Year Ended December 31, Change | 2010 | (In $ millions, except percentages) | Net sales | Net sales variance | Volume | Price | Currency | Other | Operating profit | Operating margin | Other (charges) gains, net | Equity in net earnings (loss) of affiliates | Earnings (loss) from continuing operations before tax | Depreciation and amortization |


| 2017 2016 2015 | European Union | Eastern Europe, Middle East & Africa | Asia | Latin America & Canada | 100.0% | 2017 | Pension plans | Postretirement plans |


| Payments Due by Period | ($ in millions) | Debt-1 | Capital lease obligations-1 | Operating leases where we are the primary obligor | Purchase obligations | Other noncurrent liabilities | Total contractual obligations |


Other income (expense) principally consists of interest income, interest expense and foreign currency exchange gains and losses.
Other income (expense) was higher in fiscal 2006 relative to fiscal 2005, with the majority of this difference caused by increased interest income in 2006.
Interest income for fiscal 2006 increased due to higher interest rates and larger cash and marketable securities balances during the year, increasing the returns on the Company’s cash and cash equivalents.
During fiscal 2006, the Company experienced foreign currency exchange gains of $0.6 million, although the U. S.  Dollar weakened slightly versus the Taiwan Dollar and British Pound ($32.60 TD/USD and $0.51 GBP/USD) relative to the end of fiscal 2005 ($32.84 TD/USD and $0.58 GBP/USD).
During fiscal 2005, the Company experienced foreign currency exchange gains of $15.3 million, as the U. S.  Dollar strengthened versus the Taiwan Dollar and British Pound ($32.84 TD/USD and $0.58 GBP/USD) relative to the end of fiscal 2004 (32.19 TD/USD and $0.52 GBP/USD).
Income Tax Provision Income tax expense increased by $19.0 million, to $80.4, for fiscal year 2006 from $61.4 million for fiscal year 2005, due to our higher taxable income.
The effective tax rate was 13.5% for fiscal 2006 versus 16.5% for fiscal 2005.
The decrease in tax rate is due to additional tax benefits received from Taiwan as a result of our continued capital investment in our manufacturing facilities in Taiwan, tax credits resulting from our decision to repatriate certain of our Taiwan earnings to our parent company, and the increased contribution to our income from lower tax jurisdictions during 2006 relative to 2005.
This lower effective tax rate resulted in a decrease in the ratio of income tax as a percentage of revenue of approximately 1.4% from fiscal 2005 to fiscal 2006.
Net Income As a result of the various factors noted above, net income increased 65% to $514.1 million for fiscal year 2006 compared to $311.2 million for fiscal year 2005.


| Contribution to Xcel Energy’s EPS | (Earnings per Share) | Xcel Energy Inc. financing costs | Eloigne(a) | Xcel Energy Inc. taxes and other results | Total Xcel Energy Inc. and other costs |


Dividend Policy To date, we have not paid a cash dividend on our common stock.
We presently intend to retain our net earnings for use in our operations and for geographic expansion and, therefore, we do not anticipate paying any cash dividends in the foreseeable future.
Transfer Agent and Registrar Contact our transfer agent for questions regarding your stock certificates, including changes of address, name or ownership; lost certificates; or to consolidate multiple accounts.
Wells Fargo Bank, N. A.  P. O.
Box 64854 South St.  Paul, Minnesota 55164-0854 Toll free: (800) 468-9716 Hearing impaired: (651) 450-4144 www.
wellsfargo.
com/shareownerservices Independent Auditors KPMG LLP 1021 East Cary Street, Suite 2000 Richmond, Virginia 23219-4023 Financial Information For quarterly sales and earnings information, financial reports, filings with the Securities and Exchange Commission (including Form 10-K), news releases and other investor information, please visit our investor website at: investor.
carmax.
com Information may also be obtained from the Investor Relations Department at: Email: investor_relations@carmax.
com Telephone: (804) 747-0422, ext.4489 CEO and CFO Certifications Our chief executive officer and chief financial officer have filed with the SEC the certifications required by Section 302 of the Sarbanes-Oxley Act of 2002 regarding the quality of our public disclosure.
These certifications are included as exhibits to the Annual Report on Form 10-K for fiscal 2008.
In addition, our chief executive officer annually certifies to the NYSE that he is not aware of any violation by CarMax of the NYSEs corporate governance listing standards.
This certification was submitted, without qualification, as required after the 2007 annual meeting of CarMaxs shareholders.
Corporate Governance Information Copies of the CarMax Corporate Governance Guidelines, the Code of Conduct, and the charters for each of the Audit Committee, Nominating and Governance Committee and Compensation and Personnel Committee are available from our investor website, at investor.
carmax.
com, under the corporate governance tab.
Alternatively, shareholders may obtain, without charge, copies of these documents by writing to Investor Relations at the CarMax home office.
Investor Relations Security analysts and investors are invited to contact: Katharine Kenny, Assistant Vice President, Investor Relations Telephone: (804) 935-4591 Email: katharine_kenny@carmax.
com General Information Members of the media and others seeking general information about CarMax should contact: Lisa Van Riper, Assistant Vice President, Public Affairs Telephone: (804) 935-4594 Email: lisa_vanriper@carmax.
com CARMAX, CARMAX THE AUTO SUPERSTORE,THE CARMAX ADVANTAGE, 5-DAY MONEY-BACK GUARANTEE (and design), VALUMAX and CARMAX.
COM are all registered trademarks or service marks of CarMax.
Other company, product and service names may be trademarks or service marks of their respective owners.


| As of December 31, 2013 | Ownership | (In percentages) | InfraServ GmbH & Co. Gendorf KG | InfraServ GmbH & Co. Knapsack KG | InfraServ GmbH & Co. Hoechst KG |


LIQUIDITY AND CAPITAL RESOURCES Our principal source of liquidity is operating cash flows.
Our net income and, consequently, our cash provided from operations are impacted by: sales volume, seasonal sales patterns, timing of new product introductions, profit margins and price changes.
Sales are typically higher during the third and fourth quarters of the year due to seasonal and holiday-related sales patterns.
Generally, working capital needs peak during the summer months.
We meet these needs primarily by issuing commercial paper.
Cash Flows from Operating Activities Our cash flows provided from (used by) operating activities were as follows:


| Millions of Dollars 2008 2007 2006 | Rental income | Net gain on non-operating asset dispositions | Interest income | Sale of receivables fees | Non-operating environmental costs and other | Total |


| Other Postretirement Benefits | Pension   Benefits | (In millions) | 2009 | 2010 | 2011 | 2012 | 2013 | 2014-2018 |


We recorded revenue related to the Neurovascular business following its divestiture of $122 million, in 2012 and $141 million in 2011, as compared to 2010 revenue generated by the Neurovascular business of $340 million.
We continue to generate net sales pursuant to our supply agreements with Stryker; however, these net sales are at significantly lower levels and at reduced gross profit margins as compared to periods prior to the divestiture.
NOTE D—GOODWILL AND OTHER INTANGIBLE ASSETS The gross carrying amount of goodwill and other intangible assets and the related accumulated amortization for intangible assets subject to amortization and accumulated write-offs of goodwill as of December 31, 2012 and 2011 is as follows:


| Year Ended December 31, | 2004 | (In billions, except number of | trading days) | U.S. high-grade | European high-grade | Other | Total | Number of U.S. trading days | Number of U.K. trading days | Year Ended December 31, | 2003 | $ | ($ in thousands) | Revenues | Commissions | U.S. high-grade | European high-grade | Other | Total commissions | Information and user access fees | License fees | Interest income | Other | Total revenues |


| Year Ended December 31, | 2009 | Gas delivered (mdth) | Firm Sales | Full service | Firm transportation | Total Firm Sales and Transportation | Interruptible Sales | Total Gas Sold To O&R Customers | Transportation of customer-owned gas | Interruptible transportation | Sales for resale | Sales to electric generating stations | Off-System Sales | Total Sales and Transportation | Gas delivered ($ in millions) | Firm Sales | Full service | Firm transportation | Total Firm Sales and Transportation | Interruptible Sales | Total Gas Sold To O&R Customers | Transportation of customer-owned gas | Sales to electric generating stations | Other operating revenues | Total Sales and Transportation | Average Revenue Per dth Sold | Residential | General |


| Ameren UE CIPS Genco CILCORP CILCO IP | 2008: | Statutory federal income tax rate: | Increases (decreases) from: | Permanent items(a) | Depreciation differences | Amortization of investment tax credit | State tax | Reserve for uncertain tax positions | Other(b) | Effective income tax rate | 2007: | Statutory federal income tax rate: | Increases (decreases) from: | Permanent items(a) | Depreciation differences | Amortization of investment tax credit | State tax | Reserve for uncertain tax positions | Other(c) | Effective income tax rate | 2006: | Statutory federal income tax rate: | Increases (decreases) from: | Permanent items(a) | Sales of noncore properties | Nondeductible expenses | Depreciation differences | Amortization of investment tax credit | State tax | Reserve for uncertain tax positions | Other(c) | Effective income tax rate |


| Year Ended December 31, | (millions of dollars) | Defined contribution expense | Defined benefit pension expense | Other postretirement employee benefit expense | Total | December 31, | (in millions) | Nonaccrual loans and leases | Commercial | Commercial real estate | Leases | Total commercial | Residential mortgages | Home equity loans | Home equity lines of credit | Home equity loans serviced by others | Home equity lines of credit serviced by others | Automobile | Student | Credit cards | Other retail | Total retail | Total nonaccrual loans and leases | Loans and leases that are accruing and 90 days or more delinquent | Commercial | Commercial real estate | Leases | Total commercial | Residential mortgages | Home equity loans | Home equity lines of credit | Home equity loans serviced by others | Home equity lines of credit serviced by others | Automobile | Student | Credit cards | Other retail | Total retail | Total accruing and 90 days or more delinquent | Total | Troubled debt restructurings-1 | Backlog as of   December 31, 2009 | 12 Month | Electric Power Infrastructure Services | Natural Gas and Pipeline Infrastructure Services | Telecommunications Infrastructure Services | Fiber Optic Licensing | Total | (In millions) | Net earnings | Interest expense (multiplied by 65%)1 | Return | Average debt2, 5 | Average equity3, 5 | Average benefit plan adjustments3, 4, 5 | Average invested capital | Return on invested capital | 2014 | Net sales | Operating profit | Operating margins | Backlog at year-end |


| 2017 2018 | FirstQuarter | Storage Rental Revenue | Service Revenue | Total Revenue |


| U.S. Pension and OtherPostretirement Benefit Plans International Pension Plans | December 31 | Net periodic benefit cost | Discount rate | Expected rate of return on plan assets | Salary growth rate | Benefit obligation | Discount rate | Salary growth rate | December 31 | Health care cost trend rate assumed for next year | Rate to which the cost trend rate is assumed to decline | Year that the trend rate reaches the ultimate trend rate |


Approximately 94% of our debt securities were investment-grade quality, with a weighted average credit rating of AA- by S&P at December 31, 2012.
Most of the debt securities that were below investment-grade were rated BB, the higher end of the below investment-grade rating scale.
Our investment policy limits investments in a single issuer and requires diversification among various asset types.
Tax-exempt municipal securities included pre-refunded bonds of $311 million at December 31, 2012 and $332 million at December 31, 2011.
These pre-refunded bonds were secured by an escrow fund consisting of U. S.  government obligations sufficient to pay off all amounts outstanding at maturity.
The ratings of these prerefunded bonds generally assume the rating of the government obligations at the time the fund is established.
Tax-exempt municipal securities that were not pre-refunded were diversified among general obligation bonds of U. S.  states and local municipalities as well as special revenue bonds.
General obligation bonds, which are backed by the taxing power and full faith of the issuer, accounted for $1.1 billion of these municipals in the portfolio.
Special revenue bonds, issued by a municipality to finance a specific public works project such as utilities, water and sewer, transportation, or education, and supported by the revenues of that project, accounted for $1.7 billion of these municipals.
Our general obligation bonds are diversified across the U. S.  with no individual state exceeding 11%.
In addition, certain monoline insurers guarantee the timely repayment of bond principal and interest when a bond issuer defaults and generally provide credit enhancement for bond issues related to our tax-exempt municipal securities.
We have no direct exposure to these monoline insurers.
We owned $627 million and $634 million at December 31, 2012 and 2011, respectively, of tax-exempt securities guaranteed by monoline insurers.
The equivalent weighted average S&P credit rating of these tax-exempt securities without the guarantee from the monoline insurer was AA-.
Our direct exposure to subprime mortgage lending is limited to investment in residential mortgage-backed securities and asset-backed securities backed by home equity loans.
The fair value of securities backed by Alt-A and subprime loans was $2 million at December 31, 2012 and $3 million at December 31, 2011.
There are no collateralized debt obligations or structured investment vehicles in our investment portfolio.
The percentage of corporate securities associated with the financial services industry was 22.8% at December 31, 2012 and 19.3% at December 31, 2011.
Gross unrealized losses and fair values aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows at December 31, 2012:


| 2018 2017 2016 | Operating profit, as reported | Rationalization charges | Kichler inventory step up adjustment | Operating profit, as adjusted | Operating profit margins, as reported | Operating profit margins, as adjusted |


| (in millions, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter Total | 2017 | Operating revenues | Operating income | Income from continuing operations | Loss from discontinued operations, net of tax | Net income | Net income attributable to Duke Energy Corporation | Earnings per share: | Income from continuing operations attributable to Duke Energy Corporation common stockholders | Basic | Diluted | Loss from discontinued operations attributable to Duke Energy Corporation common stockholders | Basic | Diluted | Net income attributable to Duke Energy Corporation common stockholders | Basic | Diluted | 2016 | Operating revenues | Operating income | Income from continuing operations | Income (Loss) from discontinued operations, net of tax | Net income (loss) | Net income (loss) attributable to Duke Energy Corporation | Earnings per share: | Income from continuing operations attributable to Duke Energy Corporation common stockholders | Basic | Diluted | Income (Loss) from discontinued operations attributable to Duke Energy Corporation common stockholders | Basic | Diluted | Net income (loss) attributable to Duke Energy Corporation common stockholders | Basic | Diluted |


As of December 31, 2012, Schlumberger had approximately $6.3 billion of cash and short-term investments on hand.
Schlumberger had separate committed debt facility agreements aggregating $4.1 billion with commercial banks, of which $3.8 billion was available and unused as of December 31, 2012.
This included $3.5 billion of committed facilities which support commercial paper borrowings in the United States and Europe.
Schlumberger believes that these amounts are sufficient to meet future business requirements for at least the next 12 months.
Schlumberger did not have any commercial paper borrowings outstanding as of December 31, 2012.


| Reconciliation of Adjusted EPS Years Ended December 31, | 2017 | Diluted earnings (loss) per share from continuing operations | Unrealized derivative gains | Unrealized foreign currency (gains) losses | Disposition/acquisition (gains) losses | Impairment losses | Loss on extinguishment of debt | Restructuring costs | U.S. Tax Law Reform Impact | Less: Net income tax benefit on adjustments | Adjusted EPS |


positions and collateral of the defaulting firm at each respective clearing organization, and taking into account any cross-margining loss sharing payments, any of the participating clearing organizations has a remaining liquidating surplus, and any other participating clearing organization has a remaining liquidating deficit, any additional surplus from the liquidation would be shared with the other clearing house to the extent that it has a remaining liquidating deficit.
Any remaining surplus funds would be passed to the bankruptcy trustee.
MF Global Bankruptcy Trust.
The company provided a $550.0 million financial guarantee to the bankruptcy trustee of MF Global to accelerate the distribution of funds to MF Global customers.
In the event that the trustee distributed more property in the second or third interim distributions than was permitted by the Bankruptcy Code and CFTC regulations, the company will make a cash payment to the trustee for the amount of the erroneous distribution or distributions up to $550.0 million in the aggregate.
A payment will only be made after the trustee makes reasonable efforts to collect the property erroneously distributed to the customer(s).
If a payment is made by the company, the company may have the right to seek reimbursement of the erroneously distributed property from the applicable customer(s).
The guarantee does not cover distributions made by the trustee to customers on the basis of their claims filed in the bankruptcy.
Because the trustee has now made payments to nearly all customers on the basis of their claims, the company believes that the likelihood of payment to the trustee is very remote.
As a result, the guarantee liability is estimated to be immaterial at December 31, 2012.
Family Farmer and Rancher Protection Fund.
In April 2012, the company established the Family Farmer and Rancher Protection Fund (the Fund).
The Fund is designed to provide payments, up to certain maximum levels, to family farmers, ranchers and other agricultural industry participants who use CME Group agricultural products and who suffer losses to their segregated account balances due to their CME clearing member becoming insolvent.
Under the terms of the Fund, farmers and ranchers are eligible for up to $25,000 per participant.
Farming and ranching cooperatives are eligible for up to $100,000 per cooperative.
The Fund has an aggregate maximum payment amount of $100.0 million.
If payments to participants were to exceed this amount, payments would be pro-rated.
Clearing members and customers must register in advance with the company and provide certain documentation in order to substantiate their eligibility.
Peregrine Financial Group, Inc.  (PFG) filed for bankruptcy protection on July 10, 2012.
PFG was not one of CMEs clearing members and its customers had not registered for the Fund.
Accordingly, they were not technically eligible for payments from the Fund.
However, because the Fund was newly implemented and because PFGs customers included many agricultural industry participants for whom the program was designed, the company decided to waive certain terms and conditions of the Fund, solely in connection with the PFG bankruptcy, so that otherwise eligible family farmers, ranchers and agricultural cooperatives could apply for and receive benefits from CME.
Based on the number of such PFG customers who applied and the estimated size of their claims, the company has recorded a liability in the amount of $2.1 million at December 31, 2012.16.


| December 31, 2009 | Total   Balance   Sheet | (In millions) | Assets: | Premiums, reinsurance and other receivables | Deferred policy acquisition costs and value of business acquired | Total assets | Liabilities: | Future policy benefits | Policyholder account balances | Other policy-related balances | Other liabilities | Total liabilities |


| (In millions) 2013 2012 2011 | Results of continuing operations | Items not included in results of oil and gas operations, net of tax: | Marketing income and other non-oil and gas producing related activities | Income from equity method investments | Items not allocated to segment income, net of tax: | Loss (gain) on asset dispositions | Long-lived asset impairments | Water abatement-Oil Sands Mining | Segment income | December 31, | (In millions) | 2013 | Future cash inflows | Future production and administrative costs | Future development costs | Future income tax expenses | Future net cash flows | 10 percent annual discount for estimated timing of cash flows | Standardized measure of discounted future net cash flows - | related to continuing operations | related to discontinued operations | 2012 | Future cash inflows | Future production and administrative costs | Future development costs | Future income tax expenses | Future net cash flows | 10 percent annual discount for estimated timing of cash flows | Standardized measure of discounted future net cash flows - | related to continuing operations | related to discontinued operations | 2011 | Future cash inflows | Future production and administrative costs | Future development costs | Future income tax expenses | Future net cash flows | 10 percent annual discount for estimated timing of cash flows | Standardized measure of discounted future net cash flows - | related to continuing operations | related to discontinued operations | 2013 | International E&P Operating Statistics | Net liquid hydrocarbon salesvolumes(mbbld)(a) | Europe | Africa | Total International E&P | Liquid hydrocarbon average price realizations(per bbl) | Europe | Africa | Total International E&P | Net natural gas sales volumes(mmcfd) | Europe(b) | Africa | Total International E&P | Natural gas average price realizations(per mcf) | Europe | Africa(c) | Total International E&P |


| U.S. International | 2019 | 2020 | 2021 | 2022 | 2023 | 2024-2028 |


| Payments Due by Period | December 31, 2007 | (In millions) | Debt (a) | Operating leases | Claim and claim expense reserves(b) | Future policy benefits reserves(c) | Policyholder funds reserves(c) | Purchase obligations(d) | Total |


| Fiscal 2007 Fiscal 2006 | Shares outstanding at beginning of period | Net impact of stock option exercises and other share issuances | Treasury stock purchases | Shares outstanding at end of period |


(a) Reflects estimated potential changes in benefits payable caused by changes in completion factors for incurred months prior to the most recent three months.
(b) Reflects estimated potential changes in benefits payable caused by changes in annualized claims trend used for the estimation of per member per month incurred claims for the most recent three months.


Effective February 6, 2017, the U. S.  fuel surcharge rates are reset weekly instead of monthly.
In addition, the price indices have moved from a two month to a two week lag.
Total domestic fuel surcharge revenue increased by $347 million in 2017 as a result of higher fuel surcharge rates caused by an increase in jet and diesel fuel prices, as well as an overall increase in package volume.
In addition to the factors above, fuel surcharge revenue was positively impacted by changes to the fuel surcharge calculation, as rates and price indices are updated more frequently to better align with prevailing market rates.
In 2016, total fuel surcharge revenue decreased by $219 million as a result of lower fuel surcharge rates caused by declining jet and diesel fuel prices, partially offset by the overall increase in package volume for the period.


| 2016 2015 | Proved properties | Unproved properties | Total | Accumulated depreciation, depletion and amortization | Net capitalized costs |


Notes to Five Year Summary (a) Includes the effects of items not considered in the assessment of the operating performance of our business segments (see the section,
“Results of Operations – Unallocated Corporate (Expense) Income, Net” in Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A)) which, on a combined basis, increased earnings from continuing operations before income taxes by $214 million, $139 million after tax ($0.31 per share).
Also includes a reduction in income tax expense of $62 million ($0.14 per share) resulting from a tax benefit related to claims we filed for additional extraterritorial income exclusion (ETI) tax benefits.
These items increased earnings by $201 million after tax ($0.45 per share).
(b) Includes the effects of items not considered in the assessment of the operating performance of our business segments (see the section,
“Results of Operations – Unallocated Corporate (Expense) Income, Net” in MD&A) which, on a combined basis, increased earnings from continuing operations before income taxes by $173 million, $113 million after tax ($0.25 per share).
(c) Includes the effects of items not considered in the assessment of the operating performance of our business segments (see the section,
“Results of Operations – Unallocated Corporate (Expense) Income, Net” in MD&A) which, on a combined basis, decreased earnings from continuing operations before income taxes by $215 million, $154 million after tax ($0.34 per share).
Also includes a reduction in income tax expense resulting from the closure of an Internal Revenue Service examination of $144 million ($0.32 per share).
These items reduced earnings by $10 million after tax ($0.02 per share).
(d) Includes the effects of items not considered in the assessment of the operating performance of our business segments which, on a combined basis, decreased earnings from continuing operations before income taxes by $153 million, $102 million after tax ($0.22 per share).
(e) Includes the effects of items not considered in the assessment of the operating performance of our business segments which, on a combined basis, decreased earnings from continuing operations before income taxes by $1,112 million, $632 million after tax ($1.40 per share).
(f) We define return on invested capital (ROIC) as net earnings plus after-tax interest expense divided by average invested capital (stockholders’ equity plus debt), after adjusting stockholders’ equity by adding back adjustments related to postretirement benefit plans.
We believe that reporting ROIC provides investors with greater visibility into how effectively we use the capital invested in our operations.
We use ROIC to evaluate multi-year investment decisions and as a long-term performance measure, and also use it as a factor in evaluating management performance under certain of our incentive compensation plans.
ROIC is not a measure of financial performance under GAAP, and may not be defined and calculated by other companies in the same manner.
ROIC should not be considered in isolation or as an alternative to net earnings as an indicator of performance.
We calculate ROIC as follows:


The company expects to amortize $1.7 million of actuarial loss from accumulated other comprehensive income (loss) into net periodic benefit costs in 2011.
At December 31, 2010, anticipated benefit payments from the plan in future years are as follows:


| 2010 2009 2008 | Numerator: | Net income | Denominator: | Weighted-average shares outstanding | Effect of dilutive securities | Weighted-average diluted shares | Basic earnings per common share | Diluted earnings per common share |


| Fiscal year ended December 30, 2006 Fiscal year ended December 31, 2005 Year over Year | Gross Profit | Outdoor/Fitness | Marine | Automotive/Mobile | Aviation | Total |


| 2008 | (Dollars in millions) | Trading account assets | Net derivative assets-2 | Available-for-saledebt securities | Loans and leases-3 | Mortgage servicing rights | Loansheld-for-sale-3 | Other assets-4 | Accrued expenses and other liabilities-3 |


| Years Ended | September 27, 2008 | Amount | Cost of Product Sales | Cost of Product Sales—Amortization of Intangible Assets | $630,392 |