related servicing.
Additionally, professional fees increased $686 million related to consulting fees for regulatory initiatives as well as higher legal expenses.
Other general operating expenses increased $4.9 billion largely as a result of a $3.0 billion increase in litigation expense, primarily mortgage-related, and an increase of $1.6 billion in mortgage-related assessments and waivers costs.
Merger and restructuring expenses decreased $1.2 billion in 2011.
Income Tax Expense The income tax benefit was $1.7 billion on the pre-tax loss of $230 million for 2011 compared to income tax expense of $915 million on the pre-tax loss of $1.3 billion for 2010.
These amounts are before FTE adjustments.
The effective tax rate for 2011 was not meaningful due to a small pre-tax loss, and for 2010, due to the impact of non-deductible goodwill impairment charges of $12.4 billion.
The income tax benefit for 2011 was driven by recurring tax preference items, such as tax-exempt income and affordable housing credits, a $1.0 billion benefit from the release of the remaining valuation allowance applicable to the Merrill Lynch capital loss carryover deferred tax asset, and a benefit of $823 million for planned realization of previously unrecognized deferred tax assets related to the tax basis in certain subsidiaries.
These benefits were partially offset by the $782 million tax charge for the U. K.  corporate income tax rate reductions referred to below.
The $3.2 billion of goodwill impairment charges recorded in 2011 were non-deductible.
The effective tax rate for 2010 excluding goodwill impairment charges from pre-tax income was 8.3 percent.
In addition to our recurring tax preference items, this rate was driven by a $1.7 billion benefit from the release of a portion of the valuation allowance applicable to the Merrill Lynch capital loss carryover deferred tax asset, partially offset by the $392 million charge from a one percent reduction to the U. K.  corporate income tax rate enacted during 2010.
On July 19, 2011, the U. K.  2011 Finance Bill was enacted which reduced the corporate income tax rate one percent to 26 percent beginning on April 1, 2011, and then to 25 percent effective April 1, 2012.
These rate reductions will favorably affect income tax expense on future U. K.  earnings but also required us to remeasure our U. K.  net deferred tax assets using the lower tax rates.
As noted above, the income tax benefit for 2011 included a $782 million charge for the remeasurement, substantially all of which was recorded in GBAM.
If corporate income tax rates were to be reduced to 23 percent by 2014 as suggested in U. K.  Treasury announcements and assuming no change in the deferred tax asset balance, a charge to income tax expense of approximately $400 million for each one percent reduction in the rate would result in each period of enactment (for a total of approximately $800 million).


| 3/31/2010 3/31/2011 3/31/2012 3/31/2013 3/31/2014 3/31/2015 | ABIOMED, Inc | Nasdaq Composite Index | Nasdaq Medical Equipment SIC Code 3840-3849 |


| Years ended December 31, 2009 2008 2007 | Net earnings | Non-cash items | Changes in working capital | Net cash provided/(used) by operating activities | Net cash (used)/provided by investing activities | Net cash provided/(used) by financing activities | Effect of exchange rate changes on cash and cash equivalents | Net increase/(decrease) in cash and cash equivalents | Cash and cash equivalents at beginning of year | Cash and cash equivalents at end of year |


| December 31, | 2008 | (In millions) | Financial assets | Receivables from United States Steel, including current portion | Other noncurrent assets(a) | Total financial assets | Financial liabilities | Long-term debt, including current portion(b) | Total financial liabilities |


| U.S. Canada Total | Proved undeveloped reserves as of December 31, 2011 | Extensions and discoveries | Revisions due to prices | Revisions other than price | Conversion to proved developed reserves | Proved undeveloped reserves as of December 31, 2012 |


The stock price performance included in this graph is not necessarily indicative of future stock price performance.


| Con Edison CECONY | (% of Pre-tax income) | STATUTORY TAX RATE | Federal | Changes in computed taxes resulting from: | State income tax | Cost of removal | Manufacturing deduction | Other | Effective tax rate |


| Preferred  Stock Common  Stock Common Stock Issuable Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss), Net Treasury Stock Total | (In thousands) | 2003 | Balance — January 1, 2003 | Comprehensive income: | Net income | Other comprehensive income, net of tax and reclassification adjustments: | Unrealized losses on investment securities | Unrealized gains on cash flow hedge | Minimum pension liability adjustment | 544,823 | Acquisition of Allfirst Financial Inc. — common stock issued | Repayment of management stock ownership program receivable | Stock-based compensation plans: | Stock option and purchase plans: | Compensation expense | Exercises | Directors’ stock plan | Deferred compensation plans, net, including dividend equivalents | Common stock cash dividends — $1.20 per share | Balance — December 31, 2003 | 2004 | Comprehensive income: | Net income | Other comprehensive income, net of tax and reclassification adjustments: | Unrealized losses on investment securities | Minimum pension liability adjustment | 679,659 | Purchases of treasury stock | Stock-based compensation plans: | Stock option and purchase plans: | Compensation expense | Exercises | Directors’ stock plan | Deferred compensation plans, net, including dividend equivalents | Common stock cash dividends — $1.60 per share | Balance — December 31, 2004 | 2005 | Comprehensive income: | Net income | Other comprehensive income, net of tax and reclassification adjustments: | Unrealized losses on investment securities | Minimum pension liability adjustment | 701,462 | Purchases of treasury stock | Repayment of management stock ownership program receivable | Stock-based compensation plans: | Stock option and purchase plans: Compensation expense | Exercises | Directors’ stock plan | Deferred compensation plans, net, including dividend equivalents | Common stock cash dividends — $1.75 per share | Balance — December 31, 2005 | 2005 | (In thousands) | December 31: | Gross unrealized gains | Gross unrealized losses | Year ended December 31: | Average gross unrealized gains | Average gross unrealized losses |


| Shares (in thousands) Weighted-AverageGrant-DateFair Value | Unvested at May 31, 2014 | Granted | Vested | Forfeited | Unvested at May 31, 2015 | Granted | Vested | Forfeited | Unvested at May 31, 2016 | Granted | Vested | Forfeited | Unvested at December 31, 2016 | Granted | Vested | Forfeited | Unvested at December 31, 2017 |


Collectively Significant Equity Method Investments The Company holds investments in real estate joint ventures, real estate funds and other limited partnership interests consisting of leveraged buy-out funds, hedge funds, private equity funds, joint ventures and other funds.
The portion of these investments accounted for under the equity method had a carrying value of $8.7 billion as of December 31, 2010.
The Company’s maximum exposure to loss related to these equity method investments is limited to the carrying value of these investments plus unfunded commitments of $2.9 billion as of December 31, 2010.
Except for certain real estate joint ventures, the Company’s investments in real estate funds and other limited partnership interests are generally of a passive nature in that the Company does not participate in the management of the entities.
As further described in Note 1, the Company generally records its share of earnings in its equity method investments using a three-month lag methodology and within net investment income.
As of December 31, 2010, aggregate net investment income from these equity method real estate joint ventures, real estate funds and other limited partnership interests exceeded 10% of the Company’s consolidated pre-tax income (loss) from continuing operations.
Accordingly, the Company is providing the following aggregated summarized financial data for such equity method investments.
This aggregated summarized financial data does not represent the Company’s proportionate share of the assets, liabilities, or earnings of such entities.
As of, and for the year ended December 31, 2010, the aggregated summarized financial data presented below reflects the latest available financial information.
Aggregate total assets of these entities totaled $262.9 billion and $209.9 billion as of December 31, 2010 and 2009, respectively.
Aggregate total liabilities of these entities totaled $77.6 billion and $64.5 billion as of December 31, 2010 and 2009,


| As of December 31, | 2017 | Balance Sheet Data: | Real estate, at cost | Total assets | Total debt | Total shareholders’ equity | Number of common shares outstanding |


| 2015 2014 | Vehicles | Aircraft | Buildings | Accumulated amortization | Property, plant and equipment subject to capital leases |


| 2008 2007 2006 | Collection: | Residential | Commercial | Industrial | Other | Total Collection | Transfer and disposal | Less: Intercompany | Transfer and Disposal, Net | Other | Revenue |


| Territory Competitor Marketed Product Competitor | U.S. | Europe | Europe | Europe | Europe | Europe | Europe |


Table of Contents 2009 and 2008, we also held $93.6 million and $285.3 million in municipal auction rate securities that we classified as long-term investments on our balance sheet.
See Auction Rate Securities below for more information.
Our primary source of liquidity has been cash from operations, which entails the collection of accounts receivable for products and services.
Our primary uses of cash have been for research and development programs, selling and marketing activities, capital projects, acquisitions of businesses, debt service costs and repurchases of common stock.
In March 2007 we issued five-year and ten-year senior unsecured notes totaling $1 billion in connection with our acquisition of Digital Insight.
We also have a $500 million unsecured revolving line of credit facility that is described later in this Item 7.
To date we have not borrowed under the facility.
The following table summarizes selected measures of our liquidity and capital resources at the dates indicated:


| Year Ended December 31, 2009 Year Ended December 31, 2008 | Yield-1 | ($ in millions) | Fixed maturities | Trading account assets supporting insurance liabilities | Equity securities | Commercial mortgage and other loans | Policy loans | Short-term investments and cash equivalents | Other investments | Gross investment income before investment expenses | Investment expenses | Investment income after investment expenses | Investment results of other entities and operations-2 | Total investment income |


| (Dollars in millions) 2016 2015 2014 2013 2012 | Allowance for loan and lease losses, January 1 | Loans and leases charged off | Residential mortgage | Home equity | U.S. credit card | Non-U.S. credit card | Direct/Indirect consumer | Other consumer | Total consumer charge-offs | U.S. commercial-1 | Commercial real estate | Commercial lease financing | Non-U.S. commercial | Total commercial charge-offs | Total loans and leases charged off | Recoveries of loans and leases previously charged off | Residential mortgage | Home equity | U.S. credit card | Non-U.S. credit card | Direct/Indirect consumer | Other consumer | Total consumer recoveries | U.S. commercial-2 | Commercial real estate | Commercial lease financing | Non-U.S. commercial | Total commercial recoveries | Total recoveries of loans and leases previously charged off | Net charge-offs | Write-offs of PCI loans | Provision for loan and lease losses | Other-3 | Allowance for loan and lease losses, December 31 | Less: Allowance included in assets of business held for sale-4 | Total allowance for loan and lease losses, December 31 | Reserve for unfunded lending commitments, January 1 | Provision for unfunded lending commitments | Other-3 | Reserve for unfunded lending commitments, December 31 | Allowance for credit losses, December 31 |


Economic useful life is the duration of time an asset is expected to be productively employed by us, which may be less than its physical life.
Assumptions on the following factors, among others, affect the determination of estimated economic useful life: wear and tear, obsolescence, technical standards, contract life, market demand, competitive position, raw material availability, and geographic location.
The estimated economic useful life of an asset is monitored to determine its appropriateness, especially in light of changed business circumstances.
For example, changes in technology, changes in the estimated future demand for products, or excessive wear and tear may result in a shorter estimated useful life than originally anticipated.
In these cases, we would depreciate the remaining net book value over the new estimated remaining life, thereby increasing depreciation expense per year on a prospective basis.
Likewise, if the estimated useful life is increased, the adjustment to the useful life decreases depreciation expense per year on a prospective basis.
We have numerous long-term customer supply contracts, particularly in the gases on-site business within the Tonnage Gases segment.
These contracts principally have initial contract terms of 15 to 20 years.
There are also long-term customer supply contracts associated with the tonnage gases business within the Electronics and Performance Materials segment.
These contracts principally have initial terms of 10 to 15 years.
Additionally, we have several customer supply contracts within the Equipment and Energy segment with contract terms that are primarily five to 10 years.
The depreciable lives of assets within this segment can be extended to 20 years for certain redeployable assets.
Depreciable lives of the production assets related to long-term contracts are matched to the contract lives.
Extensions to the contract term of supply frequently occur prior to the expiration of the initial term.
As contract terms are extended, the depreciable life of the remaining net book value of the production assets is adjusted to match the new contract term, as long as it does not exceed the physical life of the asset.
The depreciable lives of production facilities within the Merchant Gases segment are principally 15 years.
Customer contracts associated with products produced at these types of facilities typically have a much shorter term.
The depreciable lives of production facilities within the Electronics and Performance Materials segment, where there is not an associated long-term supply agreement, range from 10 to 15 years.
These depreciable lives have been determined based on historical experience combined with judgment on future assumptions such as technological advances, potential obsolescence, competitors’ actions, etc.
Management monitors its assumptions and may potentially need to adjust depreciable life as circumstances change.
A change in the depreciable life by one year for production facilities within the Merchant Gases and Electronics and Performance Materials segments for which there is not an associated long-term customer supply agreement would impact annual depreciation expense as summarized below:


Consolidated Results of Operations Year Ended December 31, 2009 compared with the Year Ended December 31, 2008 Unfavorable market conditions continued through 2009, providing a challenging business environment.
The largest and most significant impact continued to be on our investment portfolio as declining yields resulted in lower net investment income.
Market sensitive expenses were also negatively impacted by the market conditions as evidenced by an increase in pension and postretirement benefit costs.
Higher levels of unemployment continued to impact certain group businesses as a decrease in covered payrolls reduced growth.
Our auto and homeowners business was impacted by a declining housing market, the deterioration of the new auto sales market and the continuation of credit availability issues, all of which contributed to a decrease in insured exposures.
Despite the challenging business environment, revenue growth remained solid in the majority of our businesses.
A flight to quality during the year contributed to an improvement in sales in both our domestic fixed and variable annuity products.
We also saw an increase in market share, especially in the structured settlement business, where we experienced an increase of 53% in premiums.
An improvement in the global financial markets contributed to a recovery of sales in most of our international regions and resulted in improved investment performance in some regions during the second half of 2009.
We also benefited domestically from a strong residential mortgage refinance market and healthy growth in the reverse mortgage arena.


The decrease in the yield on interest-earning assets was primarily due to lower rates on new loans and purchased securities in the ongoing low interest rate environment, as well as the impact of higher levels of interest-earning deposits with banks maintained in light of anticipated regulatory requirements.
The decrease in the rate paid on interest-bearing liabilities was primarily due to redemptions of higher-rate bank notes and senior debt and subordinated debt, including the redemption of trust preferred and hybrid capital securities.
With respect to the first quarter of 2014, we expect net interest income to be down modestly compared with the fourth quarter of 2013 reflecting an anticipated continued decline in total purchase accounting accretion and the impact of fewer days in the first quarter somewhat offset by modest loan growth.
For the full year 2014, we expect total purchase accounting accretion to be down approximately $300 million compared with 2013.


(3) Significant Acquisitions and Dispositions Consolidation of Retail Joint Ventures Through March 31, 2009, we were a member in two retail real estate joint ventures with a retail developer.
Both entities were jointly controlled by us and our partner, through equal voting interests, and were accounted for as unconsolidated subsidiaries under the equity method.
As of April 1, 2009, we had made combined equity contributions of $37.9 million to the two entities and we also had combined outstanding principal and accrued interest of $173.0 million on advances to the two entities.
We advanced $2.0 million to the two entities, who then distributed the $2.0 million to our partner in exchange for the redemption of our partners membership interests, effective April 1, 2009, at which time we obtained 100% control of the voting interests of both entities.
We entered these transactions to gain control of these two entities because it will allow us to operate or dispose of the entities in a manner that best serves our capital needs.
In conjunction with the redemption of our partners membership interests, we entered a profits interest agreement that entitles our former partner to additional payments should the combined sale of the two acquired entities, as well as the sale of another retail real estate joint venture that we and our partner still jointly control, result in an aggregate profit.
Aggregate profit on the sale of these three projects will be calculated by using a formula defined in the profits interest agreement.
We have estimated that the fair value of the potential additional payment to our partner is insignificant.


Gas Sales and Deliveries O&R generally recovers the cost of the gas that it buys and then sells to its full-service customers.
It does not make any margin or profit on the gas it sells.
O&R’s gas revenues are subject to a weather normalization clause.
O&R’s New York gas revenues (which have accounted for substantially all of O&R’s gas revenues) are subject to a revenue decoupling mechanism.
As a result, its gas delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
O&R’s gas sales and deliveries for the last five years were:


| December 31, 2009 | Public | Carrying amount | (in millions) | Three months or less | Greater than three to six months | Greater than six to nine months | Greater than nine to twelve months | Greater than twelve to twenty-four months | Greater than twenty-four to thirty-six months | Greater than thirty-six months | Total fixed maturities, available-for-sale |


Foreign Currency Exchange Rate Risk We are exposed to currency fluctuations related to manufacturing or selling products in currencies other than the U. S.  dollar.
We may enter into foreign currency forward exchange contracts to reduce fluctuations in our long or short currency positions relating primarily to purchase commitments or forecasted purchases for equipment, raw materials and finished goods denominated in foreign currencies.
We also may hedge payment of forecasted intercompany transactions with our subsidiaries outside of the United States.
We generally hedge foreign currency price risks for periods from 3 to 12 months.
A summary of foreign currency forward exchange contracts and the corresponding amounts at contracted forward rates is as follows:


| 2015 2014 2013 | Cash and cash equivalents at beginning of year | Operating activities | Net earnings | Non-cash adjustments | Changes in working capital | Other, net | Net cash provided by operating activities | Net cash used for investing activities | Net cash provided by (used for) financing activities | Net change in cash and cash equivalents | Cash and cash equivalents at end of year |


| (In millions) 2006 2005 2004 2003 2002 | 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 |


| (Amounts in millions) 2012 2011 Change | Segment net sales | Cost of goods sold | Gross profit | Operating expenses | Segment operating earnings |


(1) Includes “trading account assets supporting insurance liabilities” and other fixed maturities classified as trading securities under U. S.  GAAP, but are held for “other than trading” activities in our segments that offer insurance, retirement and annuities products.
(2) The hypothetical change in fair value related to our variable annuity and other living benefit feature embedded derivatives reflects only the gross fair value change on the embedded derivatives, and excludes any offsetting impact of derivative instruments purchased to hedge such changes in fair value.
(3) Included in “Other liabilities” together with all liabilities of consolidated variable interest entities.
See Note 5 to the Consolidated Financial Statements for additional information regarding consolidated variable interest entities.
The tables above do not include approximately $154 billion of insurance reserve and deposit liabilities as of December 31, 2009 and $152 billion as of December 31, 2008 which are not considered financial liabilities.
We believe that the interest rate sensitivities of these insurance liabilities would serve as an offset to the net interest rate risk of the financial assets and liabilities, including investment contracts, which are set forth in these tables.
Our net estimated potential loss in fair value as of December 31, 2009 increased $1,407 million from December 31, 2008, primarily reflecting an increase in our fixed maturity securities portfolio in 2009.
The increase in our fixed maturity securities portfolio in 2009 was primarily due to a net increase in fair value driven by credit spread tightening, portfolio growth as a result of reinvestment of net investment income, the impact of foreign currency, and the acquisition of Yamato Life.
The estimated changes in fair values of our financial assets shown above relate primarily to assets invested to support our insurance liabilities, but do not include separate account assets associated with products for which investment risk is borne primarily by the separate account contractholders rather than by us.
Market Risk Related to Equity Prices We actively manage investment equity price risk against benchmarks in respective markets.
We benchmark our return on equity holdings against a blend of market indices, mainly the S&P 500 and Russell 2000 for U. S.  equities.
For foreign equities we benchmark against the Tokyo Price Index, or TOPIX, and the MSCI EAFE, a market index of European, Australian, and Far Eastern equities.
We target price sensitivities that approximate those of the benchmark indices.
We estimate our investment equity price risk from a hypothetical 10% decline in equity benchmark market levels and measure this risk in terms of the decline in fair market value of equity securities we hold.
Using this methodology, our estimated investment equity price risk as of December 31, 2009 was $809 million, representing a hypothetical decline in fair market value of equity securities we held at that date from $8.091 billion to $7.282 billion.
Our estimated investment equity price risk using this methodology as of December 31, 2008 was $680 million, representing a hypothetical decline in fair market value of equity securities we held at that date from $6.803 billion to $6.123 billion.
In calculating these amounts, we exclude separate account equity securities related to products for which the investment risk is borne primarily by the separate account contractholder rather than by us.
In addition to equity securities, as indicated above, we hold equity-based derivatives primarily to hedge the equity price risk embedded in the living benefit features in some of our variable annuity products.
As of December 31, 2009, our equity-based derivatives had notional values of $7.126 billion, and were reported at fair value as a $532 million asset, and the living benefit features accounted for as embedded derivatives were reported at fair value as a $55 million liability.
As of December 31, 2008, our equity-based derivatives had notional values of $7.353 billion, and were reported at fair value as a $1.908 billion asset, and the living benefits features accounted for as embedded derivatives were reported at fair value as a $3.229 billion liability.
Our estimated equity price risk associated with living benefit features accounted for as embedded derivatives, net of the related equity-based derivatives used in our living benefits hedging program, was a $61 million benefit as of December 31, 2009 and a less than $10 million benefit as of December 31, 2008, estimated based on a hypothetical 10% decline in equity benchmark market levels.
The higher sensitivity level as of December 31, 2009 primarily reflects the impact of our own risk on non-performance on the embedded derivative liabilities, which does not have an offsetting impact on the hedge assets.
See


| 2005 2006 2007 2008 2009 | Energy Commodity Services: | Capacity | Planned MW in operation | % of capacity sold forward | Energy | Planned generation (TWh) | % of planned generation sold forward | Blended Capacity and Energy (based on revenues) | % of planned energy and capacity sold forward | Average contract revenue per MWh |


| Core Technology Developed Technology Trademarks and Trade Names Customer Relationships Other Total | As of December 31, 2004: | Intangible assets subject to amortization: | Gross carrying amount | Accumulated amortization | Intangible assets not subject to amortization: | Gross carrying amount | Total identifiable intangible assets | As of December 31, 2003: | Intangible assets subject to amortization: | Gross carrying amount | Accumulated amortization | Intangible assets not subject to amortization: | Gross carrying amount | Total identifiable intangible assets |


ITEM 6 SELECTED FINANCIAL DATA The following tables show Intuit’s selected financial information for the past five fiscal years.
The comparability of the information is affected by a variety of factors, including acquisitions and divestitures of businesses, issuance and repayment of long-term debt, share-based compensation expense, amortization of acquired technology and other acquired intangible assets, repurchases of common stock under our stock repurchase programs, and the payment of cash dividends.
In fiscal 2007 we issued $1 billion in senior notes and in fiscal 2012 we repaid $500 million of those notes when they became due using cash from operations.
In fiscal 2009 through fiscal 2013 we acquired several companies, including PayCycle, Inc. , Mint Software Inc. , and Demandforce, Inc.  We have included the results of operations for each of them in our consolidated results of operations from their respective dates of acquisition.
We sold our Intuit Real Estate Solutions business in fiscal 2010.
In fiscal 2013 we completed the sale of our Intuit Websites business and in August 2013 we completed the sales of our Intuit Financial Services and Intuit Health businesses.
We accounted for all of these businesses as discontinued operations and have therefore reclassified our statements of operations for all periods presented below to reflect them as such.
We have also reclassified our balance sheets for all periods presented below to reflect Intuit Financial Services as discontinued operations.
The net assets of Intuit Real Estate Solutions, Intuit Websites, and Intuit Health were not significant, so we have not reclassified our balance sheets for any period presented below to reflect them as discontinued operations.
To better understand the information in these tables, investors should read “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7 of this Report, and the financial statements and related notes in Item 8 of this Report, especially Note 8, “Discontinued Operations.
”


PART IIITEM 5 – MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES(a) (1) Our common stock is listed on the New York Stock Exchange and is traded under the symbol “PNC.
” At the close of business on February 15, 2019, there were 53,986 common shareholders of record.
Holders of PNC common stock are entitled to receive dividends when declared by our Board of Directors out of funds legally available for this purpose.
Our Board of Directors may not pay or set apart dividends on the common stock until dividends for all past dividend periods on any series of outstanding preferred stock and certain outstanding capital securities issued by the parent company have been paid or declared and set apart for payment.
The Board of Directors presently intends to continue the policy of paying quarterly cash dividends.
The amount of any future dividends will depend on economic and market conditions, our financial condition and operating results, and other factors, including contractual restrictions and applicable government regulations and policies (such as those relating to the ability of bank and non-bank subsidiaries to pay dividends to the parent company and regulatory capital limitations).
The amount of our dividend is also currently subject to the results of the supervisory assessment of capital adequacy and capital planning processes undertaken by the Federal Reserve and our primary bank regulators as part of the Comprehensive Capital Analysis and Review (CCAR) process as described in the Supervision and Regulation section in Item 1 of this Report.
The Federal Reserve has the power to prohibit us from paying dividends without its approval.
For further information concerning dividend restrictions and other factors that could limit our ability to pay dividends, as well as restrictions on loans, dividends or advances from bank subsidiaries to the parent company, see the Supervision and Regulation section in Item 1, Item 1A Risk Factors, the Liquidity and Capital Management portion of the Risk Management section in Item 7, and Note 10 Borrowed Funds, Note 15 Equity and Note 18 Regulatory Matters in the Notes To Consolidated Financial Statements in Item 8 of this Report, which we include here by reference.
We include here by reference the information regarding our compensation plans under which PNC equity securities are authorized for issuance as of December 31, 2018 in the table (with introductory paragraph and notes) in Item 12 of this Report.
Our stock transfer agent and registrar is:Computershare Trust Company, N. A.250 Royall StreetCanton, MA 02021800-982-7652www.
computershare.
com/pncRegistered shareholders may contact Computershare regarding dividends and other shareholder services.
We include here by reference the information that appears under the Common Stock Performance Graph caption at the end of this Item 5.
(a)(2) None.
(b) Not applicable.


| Dollars in millions, except per share data 2009 2008 2007-1 Latam Transaction -1 2007 Excluding Latam Transaction 2009% Inc 2008 Adjusted% Inc | Operating income | Income from continuing operations | Income from discontinued operations | Net income | Income per common share – diluted | Continuing operations-2,3 | Discontinued operations | Net income-2,3 |


| Millions 2014 2013 2012 | Cash provided by operating activities | Cash used in investing activities | Dividends paid | Free cash flow |


| Natural Gas (Millions of cubic feet) | United States | Proved developed reserves: | December 31, 2010 | December 31, 2011 | December 31, 2012 | December 31, 2013 | Proved undeveloped reserves: | December 31, 2010 | December 31, 2011 | December 31, 2012 | December 31, 2013 | Total proved reserves: | Balance December 31, 2010 | Extensions, discoveries and other additions | Purchase of minerals in-place | Revisions of previous estimates | Production | Sale of properties | Balance December 31, 2011 | Extensions, discoveries and other additions | Purchase of minerals in-place | Revisions of previous estimates | Production | Sale of properties | Balance December 31, 2012 | Extensions, discoveries and other additions | Purchase of minerals in-place | Revisions of previous estimates | Production | Sale of properties | Balance December 31, 2013 |


| Year Ended December 31, Change | (in thousands, except percentages) | Revenue: | Lease licenses | Perpetual licenses | Software licenses | Maintenance | Service | Maintenance and service | Total revenue |


| Year Ended April 30, 2010 2009 2008 | Interest income: | Mortgage loans, net | Emerald Advance lines of credit | Investment securities | Other | $122,405 | Interest expense: | Borrowings | Deposits | FHLB advances | $90,569 |


| December 31, 2005 December 31, 2004 | Carrying Value | Assets | Long-term receivables | Interest rate swap agreements | Foreign currency exchange contracts | Forward commodity contracts | Liabilities | Long-term debt and related current maturities | Foreign currency exchange contracts | Forward commodity contracts |


Revenue Recognition The Company’s primary source of revenues is from product sales to its customers.
Revenue from sales of the Company’s products is recognized at the time the goods are delivered, title passes, and the risks and rewards of ownership pass to the customer, provided the earning process is complete and revenue is measurable.
Such recognition generally occurs when the products reach the shipping point, the sales price is fixed and determinable, and collection is reasonably assured.
Delivery is determined by the Company’s shipping terms, which are primarily freight on board (“FOB”) shipping point.
Revenue is recorded at the net amount to be received after deductions for estimated discounts, allowances and returns.
These estimates and related reserves are determined and adjusted as needed based upon historical experience, contract terms and other related factors.
The shipping costs for the majority of the Company’s sales are paid directly by the Company’s customers.
In the broadband communications market (approximately 6% of net sales in 2015), the Company pays for shipping costs to the majority of its customers.
Shipping costs are also paid by the Company for certain customers in the Interconnect Products and Assemblies segment.
Amounts billed to customers related to shipping costs are immaterial and are included in net sales.
Shipping costs incurred to transport products to the customer which are not reimbursed are included in Selling, general and administrative expenses.
Retirement Pension Plans Costs for retirement pension plans include current service costs and amortization of prior service costs over the average working life expectancy.
It is the Company’s policy to fund current pension costs taking into consideration minimum funding requirements and maximum tax deductible limitations.
The expense of retiree medical benefit programs is recognized during the employees’ service with the Company.
The recognition of expense for retirement pension plans and medical benefit programs is significantly impacted by estimates made by management such as discount rates used to value certain liabilities, expected return on assets, mortality projections and future health care costs.
The Company uses third-party specialists to assist management in appropriately measuring the expense and obligations associated with pension and other post-retirement plan benefits.
Stock-Based Compensation The Company accounts for its stock option and restricted share awards based on the fair value of the award at the date of grant and recognizes compensation expense over the service period that the awards are expected to vest.
The Company recognizes expense for stock-based compensation with graded vesting on a straight-line basis over the vesting period of the entire award.
Stock-based compensation expense includes the estimated effects of forfeitures, and estimates of forfeitures are adjusted over the requisite service period to the extent actual forfeitures differ, or are expected to differ from such estimates.
Changes in estimated forfeitures are recognized in the period of change and also impact the amount of expense to be recognized in future periods.
The Company’s income before income taxes was reduced by $44.2 ($32.9 after tax), $41.4 ($30.3 after tax) and $36.1 ($26.4 after tax) for the years ended December 31, 2015, 2014 and 2013, respectively, related to the expense incurred for stock-based compensation plans, which is included in Selling, general and administrative expenses in the accompanying Consolidated Statements of Income.
The fair value of stock options has been estimated at the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:


| Years Ended December 31, | 2009 | GAAP | (in millions, except percentages) | Revenues | Management and financial advice fees | Distribution fees | Net investment income (loss) | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | General and administrative expense | Total expenses | Pretax income (loss) |


| (in millions) 2015 2014 2013 | Balance, beginning of year | Increases due to: | Credit impairments on new securities subject to impairment losses | Additional credit impairments on previously impaired securities | Reductions due to: | Credit impaired securities fully disposed for which there was no | prior intent or requirement to sell | Credit impaired securities for which there is a current intent or | anticipated requirement to sell | Accretion on securities previously impaired due to credit* | Other | Balance, end of year |


Reservoir Characterization Revenue of $9.93 billion was 7% higher than the same period last year on stronger Wireline activity, higher WesternGeco marine and multiclient sales, and increased SIS software sales.
Year-on-year, pretax operating margin decreased 23 bps to 24.7% led by margin declines in Wireline and Testing Services, largely due to the revenue mix, as well as the impact of geopolitical events which prevailed during the first quarter of 2011.
The margin decline however was partially offset by a favorable WesternGeco multiclient sales mix and improved marine vessel utilization.


* Broadcasting service provided in connection with Freeview brand.
On October 30, 2002, the BBC, CCUK and BSkyB launched a multi-channel digital TV and radio broadcasting service under the brand Freeview.
 Freeview is a free-to-air broadcast service and is received by viewers via a settop box or other device.
At the end of 2003, there were approximately three million such devices in service, in contrast to the approximately 1.2 million set-top boxes in service with respect to ITVD service 20 months prior.
Our revenue derived from broadcast transmission services (including distribution and multiplexing) relating to Freeview is contractually based and therefore is not directly dependent on the number of Freeview viewers.
In connection with the launch of Freeview, in August 2002 CCUK entered into an agreement with the BBC to provide broadcast transmission along with distribution service for the second multiplex license (multiplex B) awarded to the BBC.
Also in August 2002, CCUK entered into an agreement with BSkyB to provide broadcast transmission along with distribution and multiplexing service in relation to 75% of the capacity of one of the CCUK multiplexes (multiplex C).
Both of these agreements are for an initial period of six years with options for the BBC and BSkyB to extend for an additional six-year term.
In addition, CCUK has entered into agreements to provide similar service to a number of TV, radio and interactive service content providers (including UKTV, Flextech, Viacom, EMAP, MIETV, OneWord, Guardian Media Group and BBC World Service) through the two multiplexes awarded to CCUK.
Freeview related agreements with the television content providers are also for six-year terms, with renewal options, while agreements with radio and interactive service providers are generally for shorter terms.
Through such agreements, CCUK is currently transmitting content for such customers with respect to approximately 90% of its licensed capacity and is negotiating with content providers with respect to the remaining capacity.
CCUK has contracted annual revenues of approximately ï¿¡27.2 million ($48.5 million) for the provision of transmission, distribution and multiplexing services related to its multiplex licenses, which replaces the approximately ï¿¡19.4 million annual revenues previously earned from the ITVD contract and is in addition to the revenues generated from the 1998 BBC Digital Transmission Contract.
See BusinessThe CompanyU.
K.  OperationsSignificant Contracts1998 BBC DTT Transmission Contract, 2002 BBC DTT Transmission Contract and BSkyB and Other Freeview Content DTT Transmission Contracts.
 As a result of its previous contract with ITVD, CCUK had already invested substantially all of the capital required to provide the Freeview related broadcast transmission service described above.
In addition, CCUK had previously been incurring, again by virtue of its previous contract with ITVD, a large proportion of the operating costs required to provide these services (including payments to BT for distribution circuits and payments to NTL for site rental).
Since CCUK is providing a more complete end-to-end service to content providers than was provided to ITVD, CCUK is incurring certain additional annual operating costs of approximately ï¿¡4.6 million ($8.2 million)


Financing Activities The change in cash used in financing activities in fiscal 2010, compared with cash provided by financing activities in fiscal 2009, was primarily the result of a $1.1 billion decrease in borrowings, net of repayments, compared to the prior year.
Larger borrowings in the prior year were associated with the acquisition of Best Buy Europe and normal working capital needs.
In addition, our increased operating cash flows in fiscal 2010 has allowed us to decrease our short-term borrowings.
The change in cash provided by financing activities in fiscal 2009, compared with cash used in financing


| 2018 2017 2016 | Balance at beginning of year | Additions charged to expense | Accounts written-off | Balance at end of year |


Capital Management During 2015, we repurchased approximately $2.4 billion of common stock, with an average price of $16.92 per share, in connection with our 2015 Comprehensive Capital Analysis and Review (CCAR) capital plan, which included a request to repurchase $4.0 billion of common stock over five quarters beginning in the second quarter of 2015, and to maintain the quarterly common stock dividend at the current rate of $0.05 per share.
Based on the conditional non-objection we received from the Federal Reserve on our 2015 CCAR submission, we were required to resubmit our CCAR capital plan by September 30, 2015 and address certain weaknesses the Federal Reserve identified in our capital planning process.
We have established plans and taken actions which addressed the identified weaknesses, and we resubmitted our CCAR capital plan on September 30, 2015.
The Federal Reserve announced that it did not object to our resubmitted CCAR capital plan on December 10, 2015.
As an Advanced approaches institution, under Basel 3, we were required to complete a qualification period (parallel run) to demonstrate compliance with the Basel 3 Advanced approaches capital framework to the satisfaction of U. S.  banking regulators.
We received approval to begin using the Advanced approaches capital framework to determine risk-based capital requirements beginning in the fourth quarter of 2015.
As previously disclosed, with the approval to exit parallel run, U. S.  banking regulators requested modifications to certain internal analytical models including the wholesale (e. g. , commercial) credit models.
All requested modifications were incorporated, which increased our risk-weighted assets, and are reflected in the risk-based ratios in the fourth quarter of 2015.
Having exited parallel run on October 1, 2015, we are required to report regulatory risk-based capital ratios and risk-weighted assets under both the Standardized and Advanced approaches.
The approach that yields the lower ratio is used to assess capital adequacy including under the Prompt Corrective Action (PCA) framework and was the Advanced approaches in the fourth quarter of 2015.
For additional information, see Capital Management on page 51.
Trust Preferred Securities On December 29, 2015, the Corporation provided notice of the redemption on January 29, 2016 of all trust preferred securities of Merrill Lynch Preferred Capital Trust III, Merrill Lynch Preferred Capital Trust IV and Merrill Lynch Preferred Capital Trust V (the Trust Preferred Securities).
In connection with the Corporations acquisition of Merrill Lynch & Co. , Inc.  in 2009, the Corporation recorded a discount to par value as purchase accounting adjustments associated with the Trust Preferred Securities.
The Corporation recorded a $612 million charge to net interest income related to the discount on these securities.
New Accounting Guidance on Recognition and Measurement of Financial Instruments In January 2016, the Financial Accounting Standards Board (FASB) issued new accounting guidance on recognition and measurement of financial instruments.
The Corporation has early adopted, retrospective to January 1, 2015, the provision that requires the Corporation to present unrealized gains and losses resulting from changes in the Corporations own credit spreads on liabilities accounted for under the fair value option (referred to as debit valuation adjustments, or DVA) in accumulated other comprehensive income (OCI).
The impact of the adoption was to reclassify, as of January 1, 2015, unrealized DVA losses of $2.0 billion pretax ($1.2 billion after tax) from retained earnings to accumulated OCI.
Further, pretax unrealized DVA gains of $301 million, $301 million and $420 million were reclassified from other income to accumulated OCI for the third, second and first quarters of 2015, respectively.
This had the effect of reducing net income as previously reported for the aforementioned quarters by $187 million, $186 million and $260 million, or approximately $0.02 per share in each quarter.
This change is reflected in consolidated results and the Global Markets segment results.
Results for 2014 were not subject to restatement under the provisions of the new accounting guidance.
Selected Financial Data Table 1 provides selected consolidated financial data for 2015 and 2014.


| 2006 2005 2004 | Years ended December 31 (dollars in millions) | Earning assets: | Short-term investments | Securities purchased under agreements to resell | Securities -1 | Loans: | Residential mortgage | Commercial | Commercial real estate finance | Consumer | Total loans | Total earning assets | Funding liabilities: | Deposits: | Non-interest-bearing deposits | Savings, interest-bearing checking and money market | Time | Total core deposits | Non-core deposits | Total deposits | Borrowings: | Federal funds purchased | FHLB advances | Repurchase agreements | Total borrowings | Subordinated notes | Total | Funding liabilities allocated to discontinued operations -2 | Total funding liabilities | Excess of earning assets over funding liabilities | Net interest income/spread | Net interest margin |


NOTE 19 REGULATORY MATTERS We are subject to the regulations of certain federal, state, and foreign agencies and undergo periodic examinations by such regulatory authorities.
The ability to undertake new business initiatives (including acquisitions), the access to and cost of funding for new business initiatives, the ability to pay dividends, the ability to repurchase shares or other capital instruments, the level of deposit insurance costs, and the level and nature of regulatory oversight depend, in large part, on a financial institutions capital strength.
At December 31, 2015 and December 31, 2014, PNC and PNC Bank, our domestic banking subsidiary, were both considered well capitalized, based on applicable U. S.  regulatory capital ratio requirements.
Beginning in 2015, to qualify as well capitalized, PNC must have Transitional Basel III capital ratios of at least 6% for Tier 1 risk-based capital and 10% for Total risk-based capital, and PNC Bank must have Transitional Basel III capital ratios of at least 6.5% for Common equity Tier 1 risk-based capital, 8% for Tier 1 risk-based capital, 10% for Total risk-based capital, and a Leverage ratio of at least 5%.
To qualify as well capitalized in 2014, regulators required insured depository institutions, such as PNC Bank, to maintain Transitional Basel III capital ratios of at least 6% for Tier 1 risk-based, 10% for Total riskbased and 5% for Leverage, and required bank holding companies, such as PNC, to maintain Transitional Basel III regulatory capital ratios of at least 6% Tier 1 risk-based and 10% for Total risk-based.
The following table sets forth the Transitional Basel III regulatory capital ratios at December 31, 2015 and December 31, 2014 for PNC and PNC Bank.


Item 3.
LEGAL PROCEEDINGS.
In May 2015, we received a subpoena in connection with an investigation by the Enforcement Division of the SEC requesting information related to our grant-making activities and compliance with the FCPA in various countries.
The SEC also seeks information related to Alexions recalls of specific lots of Soliris and related securities disclosures.
In addition, in October 2015, Alexion received a request from the DOJ for the voluntary production of documents and other information pertaining to Alexion's compliance with the FCPA.
Alexion is cooperating with these investigations.
At this time, Alexion is unable to predict the duration, scope or outcome of these investigations.
Given the ongoing nature of these investigations, management does not currently believe a loss related to these matters is probable or that the potential magnitude of such loss or range of loss, if any, can be reasonably estimated.


Accrued restructuring charges at June 30, 2010 are expected to result in cash expenditures funded from cash provided by operations of approximately $25 million and $6 million in fiscal 2011 and 2012, respectively.
We recorded other special charges in connection with the implementation of the Program for the years ended June 30, 2010 and 2009 of $12.3 million and $10.1 million, respectively, related to consulting, other professional services, and accelerated depreciation.
The total amount


In the normal course of business, the Company enters into various contractual obligations that may require future cash payments.
Contractual obligations at November 30, 2007 include long-term borrowings, operating leases and purchase obligations.
The Company’s future cash payments associated with its contractual obligations as of November 30, 2007 are summarized below:


| Description of Commitment Cash Payments Due During the Year Ending May 31, | (In millions) | Operating Leases | Capital Leases | Long-Term Debt-1 | Endorsement Contracts-2 | Product Purchase Obligations-3 | Other Purchase Obligations-4 | TOTAL |


| (in millions) 2007 2006 2005 | Sales of fixed maturities | Sales of equity securities | Sales of real estate and other assets | Other-than-temporary impairments | Foreign exchange transactions | Derivative instruments | Total | AIGFP other-than-temporary impairments* |


| (Millions) Adverse impact on after-tax earnings Positive impact on  after-tax earnings | 2007 | Foreign exchange rates | Interest rates | Commodity rates |


pipeline companies for the purchase of firm transportation from upstream points where gas has been purchased to the Utilities’ distribution systems, and for upstream storage services.
Charges under these transportation and storage contracts are approved by the FERC.
The Utilities are required to pay certain fixed charges under the supply, transportation and storage contracts whether or not the contracted capacity is actually used.
These fixed charges amounted to approximately $291 million in 2015, including $252 million for CECONY.
See “Contractual Obligations” below.
At December 31, 2015, the contracts were for various terms extending to 2020 for supply and 2027 for the transportation and storage.
In January 2016, CECONY entered into two 20-year transportation contracts, one of which is for capacity on the proposed Mountain Valley Pipeline (MVP) (see “Con Edison Transmission - CET Gas" below).
In addition, the Utilities purchase gas on the spot market and contract for interruptible gas transportation.
See “Recoverable Energy Costs” in Note A to the financial statements in Item 8.
Steam Operations Steam Facilities CECONY’s capitalized costs for utility plant, net of accumulated depreciation, for steam facilities, including steam's portion of the steam-electric generation facilities, were $1,849 million and $1,795 million at December 31, 2015 and 2014, respectively.
CECONY generates steam at one steam-electric generating station and five steam-only generating stations and distributes steam to its customers through approximately 105 miles of transmission, distribution and service piping.
Steam Sales and Deliveries CECONY’s steam sales and deliveries for the last five years were:


| Year Ended December 31, 2014 to 2015 % Change 2013 to 2014 % Change | 2015 | (in thousands) | General and administrative | General and administrative as a percentage of revenue |


In addition to the wells drilled and completed in 2015 included in the table above, wells that were in the process of drilling or completing at December 31, 2015 were as follows:


| In millions 2015 2014 2013 | Sales | Operating Profit (Loss) |


QUANTITATIVE AND QUALITATIVE DISCLOSURE OF MARKET RISK Our main exposure to market risk relates to interest rates and foreign currency exchange rates.
Our financial instruments that are subject to interest rate risk principally include fixedrate and floating rate long-term debt.
If interest rates were to change by plus or minus 1%, interest expense would increase or decrease by approximately $10 million related to our floating rate debt.
The estimated fair values of the Corporations long-term debt instruments at December 31, 2005 aggregated approximately $6.2 billion, compared with a carrying amount of approximately $5.0 billion.
The majority of our long-term debt obligations are not callable until maturity.
We have used interest rate swaps in the past to manage our exposure to fixed and variable interest rates; however, at year-end 2005, we had no such agreements in place.
We use forward foreign exchange contracts to manage our exposure to fluctuations in foreign currency exchange rates, and do so in ways that qualify for hedge accounting treatment.
These exchange contracts hedge the fluctuations in cash flows associated with firm commitments or specific anticipated transactions contracted in foreign currencies, or hedge the exposure to rate changes affecting foreign currency denominated assets or liabilities.
Related gains and losses on these contracts, to the extent they are effective hedges, are recognized in income at the same time the hedged transaction is recognized or when the hedged asset or liability is adjusted.
To the extent the hedges are ineffective, gains and losses on the contracts are recognized in the current period.
At December 31, 2005, the fair value of forward exchange contracts outstanding, as well as the amounts of gains and losses recorded during the year then ended, were not material.
We do not hold or issue derivative financial instruments for trading or speculative purposes.


During fiscal 2006, we repurchased 19 million shares of common stock for an aggregate purchase price of $892 million, of which $7 million settled after the end of our fiscal year.
In fiscal 2005, we repurchased 17 million shares of common stock for an aggregate purchase price of $771 million.
A total of 146 million shares were held in treasury at May 28, 2006.
We also used cash from operations to repay $189 million in outstanding debt in fiscal 2006.
In fiscal 2005, we repaid nearly $2.2 billion of debt, including the purchase of $760 million principal amount of our 6 percent notes due in 2012.
Fiscal 2005 debt repurchase costs were $137 million, consisting of $73 million of noncash interest rate swap losses reclassified from Accumulated Other Comprehensive Income, $59 million of purchase premium and $5 million of noncash unamortized cost of issuance expense.
Capital Structure


| 2012 2011 2010 | Balance January 1 | Additions related to current year positions | Additions related to prior year positions | Reductions for tax positions of prior years-1 | Settlements | Lapse of statute of limitations | Balance December 31 |


| (In millions) 2008 2007 2006 | Net sales including intersegment sales | Less intersegment sales | Net sales | Operating income-1 | -1Includes restructuring costs for all years, asset impairment charges in 2008 and 2006, lease cancellation costs in 2007, and other items in 2007 and 2006 |


Note H  Other Material Contingencies Manhattan Steam Main Rupture In July 2007, a CECONY steam main located in midtown Manhattan ruptured.
It has been reported that one person died and others were injured as a result of the incident.
Several buildings in the area were damaged.
Debris from the incident included dirt and mud containing asbestos.
The response to the incident required the closing of several buildings and streets for various periods.
Approximately 100 suits are pending against the company seeking generally unspecified compensatory and, in some cases, punitive damages, for personal injury, property damage and business interruption.
The company has not accrued a liability for the suits.
The company has notified its insurers of the incident and believes that the policies in force at the time of the incident will cover most of the companys costs, which the company is unable to estimate, but which could be substantial, to satisfy its liability to others in connection with the incident.
Investigation of Contractor Payments In January 2009, CECONY commenced an internal investigation relating to the arrests of certain employees and retired employees (most of whom have since been indicted or pleaded guilty) for accepting kickbacks from contractors that performed construction work for the company.
The company has retained a law firm, which has retained an accounting firm, to assist in the companys investigation.
The company is providing information to governmental authorities, which consider the company to be a victim of unlawful conduct, in connection with their investigation of the arrested employees and contractors.
The company has terminated its employment of the arrested employees and its contracts with the contractors.
In February 2009, the NYSPSC commenced a proceeding that, among other things, will examine the prudence of certain of the companys expenditures relating to the arrests and consider whether additional expenditures should also be examined (see Other Regulatory Matters in Note B).
The company, based upon its evaluation of its internal controls for 2009 and previous years, believes that the controls were effective to provide reasonable assurance that its financial statements have been fairly presented, in all material respects, in conformity with generally accepted accounting principles.
Because the companys investigation is ongoing, the company is unable to predict the impact of any of the employees unlawful conduct on the companys internal controls, business, results of operations or financial position.
Permit Non-Compliance and Pollution Discharges In March 2009, the New York State Department of Environmental Conservation (DEC) issued a proposed administrative Order on Consent to CECONY with respect to non-compliance with certain laws, regulations and permit conditions and discharges of pollutants at the companys steam generating facilities.
The proposed order effectively institutes a civil enforcement proceeding against the company.
In the proposed order, the DEC is seeking, among other things, the companys agreement to pay a penalty in an amount the DEC has not yet specified, retain an independent consultant to conduct a comprehensive audit of the companys generating facilities to determine compliance with federal and New York State environmental laws and regulations and recommend best practices, remove all equipment containing polychlorinated biphenyls from the companys steam and electric facilities, remediate polychlorinated biphenyl contamination, install certain wastewater treatment facilities, and comply with additional sampling, monitoring, and training requirements.
The Companies commitments to make payments in addition to these contractual commitments include their other liabilities reflected in their balance sheets, any funding obligations for their pension and other postretirement benefit plans, financial hedging activities, their collective bargaining agreements and Con Edisons guarantees of certain obligations of its businesses.
See Notes E, F, O and Guarantees in Note H to the financial statements in Item 8.
Capital Resources Con Edison is a holding company that operates only through its subsidiaries and has no material assets other than its interests in its subsidiaries.
Con Edison expects to finance its capital requirements primarily through internally-generated funds and the sale of its securities.
The company does not expect to need to issue additional common equity in 2012.
Con Edisons ability to make payments on its external borrowings and dividends on its common shares is also dependent on its receipt of dividends from its subsidiaries or proceeds from the sale of its securities or its interests in its subsidiaries.
For information about restrictions on the payment of dividends by the Utilities and significant debt covenants, see Note C to the financial statements in Item 8.
For information on the Companies commercial paper program and revolving credit agreements with banks, see Note D to the financial statements in Item 8.
The Utilities expect to finance their operations, capital requirements and payment of dividends to Con Edison from internally-generated funds (see Liquidity and Capital Resources  Cash Flows from Operating Activities in Item 7), contributions of equity capital from Con Edison and external borrowings.
The Utilities expect to meet their 2012 external financing requirements, including for maturing securities, through the issuance of up to $750 million of long-term debt.
The Companies require access to the capital markets to fund capital requirements that are substantially in excess of available internally-generated funds.
See Capital Requirements, above.
Each of the Companies believes that it will continue to be able to access capital, although capital market conditions may affect the timing of the Companies financing activities.
The Companies monitor the availability and costs of various forms of capital, and will seek to issue Con Edison common stock and other securities when it is necessary or advantageous to do so.
For information about the Companies long-term debt and short-term borrowing, see Notes C and D to the financial statements in Item 8.
In 2009, the NYSPSC authorized CECONY and O&R to issue up to $4,800 million and $500 million of securities, respectively (of which up to $550 million and $100 million, respectively, may be preferred stock and up to the entire amount authorized may be debt securities).
At December 31, 2011, CECONY and O&R had issued $1,470 million and $190 million, respectively, of debt securities pursuant to such authorization.
In addition, the NYSPSC has authorized the Utilities to refund outstanding debt securities and preferred stock should the Utilities determine that it is economic to do so.
Con Edisons competitive energy businesses have financed their operations and capital requirements primarily with capital contributions and borrowings from Con Edison, internallygenerated funds and external borrowings.


ITEM 6 SELECTED FINANCIAL DATA The following tables show Intuits selected financial information for the past five fiscal years.
The comparability of the information is affected by a variety of factors, including acquisitions and divestitures of businesses, issuance and repayment of long-term debt, share-based compensation expense, amortization of acquired technology and other acquired intangible assets, repurchases of common stock under our stock repurchase programs, and the payment of cash dividends.
In fiscal 2007 we issued $1 billion in senior notes and in fiscal 2012 we repaid $500 million of those notes when they became due using cash from operations.
In fiscal 2010 through fiscal 2014 we acquired several companies, including PayCycle, Inc. , Mint Software Inc. , Demandforce, Inc. , and Check Inc.  We have included the results of operations for each of them in our consolidated results of operations from their respective dates of acquisition.
We sold our Intuit Real Estate Solutions business in fiscal 2010.
In fiscal 2013 we completed the sale of our Intuit Websites business and in fiscal 2014 we completed the sales of our Intuit Financial Services and Intuit Health businesses.
We accounted for all of these businesses as discontinued operations and have therefore reclassified our statements of operations for all periods presented below to reflect them as such.
We have also reclassified our balance sheets for all periods presented below to reflect Intuit Financial Services as discontinued operations.
The net assets of Intuit Real Estate Solutions, Intuit Websites, and Intuit Health were not significant, so we have not reclassified our balance sheets for any period presented below to reflect them as discontinued operations.
To better understand the information in these tables, investors should read Managements Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of this Annual Report, and the financial statements and related notes in Item 8 of this Annual Report, especially Note 7, Discontinued Operations.


| (in millions) Cardiovascular Rhythm Management MedSurg Total | Balance as of December 31, 2013 | Purchase price adjustments | Goodwill acquired | Other changes in carrying amount* | Balance as of December 31, 2014 | Purchase price adjustments | Goodwill acquired | Balance as of December 31, 2015 |


| Business Segments At and for the Year Ended December 31 Total Corporation-1 Deposits -2 Global Card Services -3 | (Dollars in millions) | Net interest income(4) | Noninterest income | Total revenue, net of interest expense | Provision for credit losses(5) | Amortization of intangibles | Other noninterest expense | Income (loss) before income taxes | Income tax expense (benefit)(4) | Net income (loss) | Year end total assets | Home Loans & Insurance | (Dollars in millions) | Net interest income(4) | Noninterest income (loss) | Total revenue, net of interest expense | Provision for credit losses | Amortization of intangibles | Other noninterest expense | Income (loss) before income taxes | Income tax expense (benefit)(4) | Net income (loss) | Year end total assets | GWIM-2 | (Dollars in millions) | Net interest income(4) | Noninterest income | Total revenue, net of interest expense | Provision for credit losses(5) | Amortization of intangibles | Other noninterest expense | Income (loss) before income taxes | Income tax expense (benefit)(4) | Net income (loss) | Year end total assets |


| Fiscal Years Operating   Leases | 2012 | 2013 | 2014 | 2015 | 2016 | Later Years | Total | Impact-1 | Pretax | Three Months Ended: | December 31, 2009 — GAAP loss | 73.6 | 11.3 | December 31, 2008 — GAAP loss | 4.6 | (2.9 | Fourth Quarter | 2009 | Average Loans/Leases | Commercial and industrial | Commercial real estate | Total commercial | Automobile loans and leases | Home equity | Residential mortgage | Other consumer | Total consumer | Total loans/leases | First   Quarter 2009 | Preferred shares exchanged | Common shares issued: | At stated convertible option | As deemed dividend | Total common shares issued: | Deemed dividend |


Customer Resale Agreements and Bank Notes We have elected to account for structured resale agreements and structured bank notes, which are economically hedged using free-standing financial derivatives at fair value.
The fair value for structured resale agreements and structured bank notes is determined using a model which includes observable market data as inputs such as interest rates.
Readily observable market inputs to this model can be


| dollars in thousands 2014 2013 | Self-insurance Program | Self-insured liabilities (undiscounted) | Insured liabilities (undiscounted) | Discount rate | Amounts Recognized in Consolidated | Balance Sheets | Investments and long-term receivables | Other accrued liabilities | Other noncurrent liabilities | Net liabilities (discounted) |


| Total cost of shares purchased Total number of shares purchased Average price paid per share | 2015 | 2014 | 2013 |


Other liabilities primarily consist of liabilities for warranty, environmental and employee benefit obligations associated with the Facom acquisition and the previously discussed $22.1 million Besco non-controlling interest.
The weighted average useful lives assigned to the amortizable assets identified above are trade names – 7 years; customer relationships – 13 years; patents and technology – 15 years; and other intangible assets – 9 years.
The amount allocated to the trade names includes $171.6 million associated with the Facom acquisition (Facom?, Virax?, and USAG?)
which have been determined to have indefinite lives.
Goodwill associated with the 2006 acquisitions that is deductible for tax purposes amounts to $0.6 million.


| Purchase price $1,700 | Less: Stockholders' equity of EDC | Capital stock | Paid-in surplus | Retained earnings | Treasury stock | Adjustment of assets and liabilities to fair value: | Property and equipment | Deferred income tax asset | Employee severance plan | Investment in subsidiaries | Elimination of intangible asset – goodwill | Other net assets | Goodwill – negative |


| Years Ended December 31, | 2012 | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income (loss) | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest and debt expense | General and administrative expense | Total expenses | Operating loss |


At Dec.  31, 2009, commodity derivatives recorded to derivative instruments valuation included derivative contracts with gross notional amounts of approximately 37,932,000 megawatt hours (MwH) of electricity, 57,181,000 MMBtu of natural gas, and 3,580,000 gallons of vehicle fuel.
These amounts reflect the gross notional amounts of futures, forwards and FTRs and are not reflective of net positions in the underlying commodities.
Notional amounts for options are also included on a gross basis, but are weighted for the probability of exercise.
Credit Related Contingent Features  Contract provisions of the derivative instruments that the utility subsidiaries enter into may require the posting of collateral or settlement of the contracts for various reasons, including if the applicable utility subsidiary is unable to maintain its credit rating.
If the credit rating of PSCo at Dec.  31, 2009 were downgraded below investment grade, contracts underlying $0.6 million of derivative instruments in a liability position would have required Xcel Energy to post collateral or settle applicable contracts, which would have resulted in payments to counterparties of $3.4 million.
At Dec.  31, 2009, there was no collateral posted on these specific contracts.
Certain of the utility subsidiaries derivative instruments are also subject to contract provisions that contain adequate assurance clauses.
These provisions allow counterparties to seek performance assurance, including cash collateral, in the event that a given utility subsidiarys ability to fulfill its contractual obligations is reasonably expected to be impaired.
As of Dec.  31, 2009, Xcel Energys utility subsidiaries had no collateral posted related to adequate assurance clauses in derivative contracts.14.
Financial Instruments The estimated Dec.  31 fair values of Xcel Energys recorded financial instruments are as follows:


The following table summarizes the notional or contractual amounts and net fair value of financial derivatives at December 31, 2013 and December 31, 2012.
Table 56: Financial Derivatives Summary


| North America Africa | U.S. | Year Ended December 31, | 2015 | Crude and condensate(mbbld)(a) | Natural gas liquids(mbbld) | Natural gas(mmcfd)(b) | Synthetic crude oil(mbbld)(c) | Total production sold(mboed) | 2014 | Crude and condensate(mbbld)(a) | Natural gas liquids(mbbld) | Natural gas(mmcfd)(b) | Synthetic crude oil(mbbld)(c) | Total production sold(mboed) | 2013 | Crude and condensate(mbbld)(a) | Natural gas liquids(mbbld) | Natural gas(mmcfd)(b) | Synthetic crude oil(mbbld)(c) | Total production sold(mboed) |


PPG is in compliance with the restrictive covenants under its various credit agreements, loan agreements and indentures.
The CompanyÂ¡Â¯s revolving credit agreements include a financial ratio covenant.
The covenant requires that the amount of total indebtedness not exceed 60% of the CompanyÂ¡Â¯s total capitalization excluding the portion of accumulated other comprehensive income (loss) related to pensions and other postretirement benefit adjustments.
As of December 31, 2012, total indebtedness was 42% of the CompanyÂ¡Â¯s total capitalization excluding the portion of accumulated other comprehensive income (loss) related to pensions and other postretirement benefit adjustments.
Additionally, substantially all of the CompanyÂ¡Â¯s debt agreements contain customary crossdefault provisions.
Those provisions generally provide that a default on a debt service payment of $10 million or more for longer than the grace period provided (usually 10 days) under one agreement may result in an event of default under other agreements.
None of the CompanyÂ¡Â¯s primary debt obligations are secured or guaranteed by the CompanyÂ¡Â¯s affiliates.
Interest payments in 2012, 2011 and 2010 totaled $219 million, $212 million and $189 million, respectively.
In October 2009, the Company entered into an agreement with a counterparty to repurchase up to 1.2 million shares of the CompanyÂ¡Â¯s stock of which 1.1 million shares were purchased in the open market (465,006 of these shares were purchased as of December 31, 2009 at a weighted average price of $56.66 per share).
The counterparty held the shares until September of 2010 when the Company paid $65 million and took possession of these shares.
Rental expense for operating leases was $233 million, $249 million and $233 million in 2012, 2011 and 2010, respectively.
The primary leased assets include paint stores, transportation equipment, warehouses and other distribution facilities, and office space, including the CompanyÂ¡Â¯s corporate headquarters located in Pittsburgh, Pa.
Minimum lease commitments for operating leases that have initial or remaining lease terms in excess of one year as of December 31, 2012, are (in millions) $171 in 2013, $135 in 2014, $107 in 2015, $83 in 2016, $64 in 2017 and $135 thereafter.
The Company had outstanding letters of credit and surety bonds of $119 million as of December 31, 2012.
The letters of credit secure the CompanyÂ¡Â¯s performance to third parties under certain self-insurance programs and other commitments made in the ordinary course of business.
As of December 31, 2012 and 2011, guarantees outstanding were $96 million and $90 million, respectively.
The guarantees relate primarily to debt of certain entities in which PPG has an ownership interest and selected customers of certain of the CompanyÂ¡Â¯s businesses.
A portion of such debt is secured by the assets of the related entities.
The carrying values of these guarantees were $11 million and $13 million as of December 31, 2012 and 2011, respectively, and the fair values were $11 million and $21 million, as of December 31, 2012 and 2011, respectively.
The fair value of each guarantee was estimated by comparing the net present value of two hypothetical cash flow streams, one based on PPGÂ¡Â¯s incremental borrowing rate and the other based on the borrowerÂ¡Â¯s incremental borrowing rate, as of the effective date of the guarantee.
Both streams were discounted at a risk free rate of return.
The Company does not believe any loss related to these letters of credit, surety bonds or guarantees is likely.9.
Fair Value Measurement The accounting guidance on fair value measurements establishes a hierarchy with three levels of inputs used to determine fair value.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets and liabilities, are considered to be the most reliable evidence of fair value, and should be used whenever available.
Level 2 inputs are observable prices that are not quoted on active exchanges.
Level 3 inputs are unobservable inputs employed for measuring the fair value of assets or liabilities.


| Entergy Arkansas 1,516 | Entergy Gulf States | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | System Energy | Entergy Operations | Entergy Services | Entergy Nuclear Operations | Other subsidiaries | Total Full-time | Part-time | Total Entergy | 2003 | Lease  Payments | (In Millions) | Entergy Arkansas | Entergy Gulf States | Entergy Louisiana | System Energy | Total |


| 2016 2015 2014 | Weighted average common shares outstanding for basic computations | Weighted average dilutive effect of equity awards | Weighted average common shares outstanding for dilutedcomputations |


| Years Ended December 31, | 2007 | (In millions) | Revenues | Premiums | Net investment income and other revenues | Net investment gains (losses) | Total revenues | Expenses | Policyholder benefits and claims | Policyholder dividends | Change in policyholder dividend obligation | Other expenses | Total expenses | Revenues, net of expenses before income tax | Income tax | Revenues, net of expenses and income tax from continuing operations | Revenues, net of expenses and income tax from discontinued operations | Revenues, net of expenses, income taxes and discontinued operations | Years Ended December 31, | 2007 | (In millions) | Balance at December 31, | Less: | Cumulative effect of a change in accounting principle, net of income tax | Balance at January 1, | Change during year | Interest Rates | Weighted | Range | (In millions) | Senior notes | Repurchase agreements | Surplus notes | Fixed rate notes | Other notes with varying interest rates | Capital lease obligations | Total long-term debt | Total short-term debt | Total |


| Consolidated Balance Sheet Data At July 31, | (In millions) | Cash, cash equivalents and investments | Long-term investments | Working capital | Total assets | Current portion of long-term debt | Long-term debt | Other long-term obligations | Total stockholders’ equity |


On January 4, 2010 and January 5, 2009, we modified the fuel surcharge on air services by reducing the index used to determine the fuel surcharge by 2% in each of the two years.
The 2010 increase and 2009 decrease in the air and ground fuel surcharges are due to the significant variations in jet and diesel fuel prices (in addition to the reduction in the index on the air surcharge).
Total domestic fuel surcharge revenue, net of the impact of hedging, increased by $592 million in 2010, primarily due to the higher fuel surcharge rates described above, as


| December 31, | 2008 | (In millions) | Balance Sheet Data -1 | Assets: | General account assets | Separate account assets | Total assets -2 | Liabilities: | Life and health policyholder liabilities -4 | Property and casualty policyholder liabilities -4 | Short-term debt | Long-term debt | Collateral financing arrangements | Junior subordinated debt securities | Payables for collateral under securities loaned and other transactions | Other | Separate account liabilities | Total liabilities -2 | Stockholders’ Equity | Preferred stock, at par value | Common stock, at par value | Additional paid-in capital | Retained earnings -5 | Treasury stock, at cost | Accumulated other comprehensive income (loss) (6) | Total stockholders’ equity | Total liabilities and stockholders’ equity |


| (in thousands) | Cash and cash equivalents | Premiums receivable and other current assets | Property and equipment and other assets | Medical and other expenses payable | Other current liabilities | Other liabilities | Net tangible assets acquired |


| 2004 2003 2002 | Net loss as reported | Add: Stock-based employee compensation expense associated with modifications, net of related tax effect, included in net loss asreported | Less: Total stock-based employee compensation expense determined under fair value based method for all awards, net of related taxeffect | Pro-forma net loss | Basic and diluted net loss per share—as reported | Basic and diluted net loss per share pro-forma | Cash | Accounts receivable | Inventory, including fair value adjustments | Property and equipment | Other tangible assets | Accrued taxes | Accounts payable and accrued expenses | Customer relationships | Business licenses | Trade names | Deferred taxes, net | Goodwill | Purchase Price |


| 2010 2009 | Balance at January 1 | Additions based on tax positions related to the current year | Additions for tax positions of prior years | Reductions for tax positions of prior years | Settlements | Lapse of statute of limitations | Acquisitions | Foreign currency translation | Balance at December 31 |


Hurricane Isaac In June 2014 the LPSC voted to approve a series of orders which (i) quantified $290.8 million of Hurricane Isaac system restoration costs as prudently incurred; (ii) determined $290 million as the level of storm reserves to be re-established; (iii) authorized Entergy Louisiana to utilize Louisiana Act 55 financing for Hurricane Isaac system restoration costs; and (iv) granted other requested relief associated with storm reserves and Act 55 financing of Hurricane Isaac system restoration costs.
Entergy Louisiana committed to pass on to customers a minimum of $30.8 million of customer benefits through annual customer credits of approximately $6.2 million for five years.
Approvals for the Act 55 financings were obtained from the Louisiana Utilities Restoration Corporation and the Louisiana State Bond Commission.
See Note 2 to the financial statements for a discussion of the August 2014 issuance of bonds under Act 55 of the Louisiana Legislature.


| Stock-Settled Awards Cash-Settled Awards Performance-Based Awards | Awards | Non-vested as of January 1, 2017 | Granted | Vested | Forfeited | Non-vested as of December 31, 2017 | Total unrecognized compensation expense remaining | Weighted-average years expected to be recognized over |


The locations in Lincolnshire, Illinois, The Woodlands, Texas, Orlando, Florida, and Charlotte North Carolina, each of which were acquired as part of the Hewitt acquisition in 2010, are primarily dedicated to our HR Solutions segment.
The other locations listed above house personnel from each of our business segments.
In November 2011, Aon entered into an agreement to lease 190,000 square feet in a new building to be constructed in London, United Kingdom.
The agreement is contingent upon the completion of the building construction.
Aon expects to move into the new building in 2015 when it exercises an early break option at the Devonshire Square location.3
People’s United Financial, Inc.  and Subsidiaries Notes to Consolidated Financial Statements Restricted Stock Awarded The following is a summary of restricted stock award activity under the Incentive Plans and the RRP:


| ($ in millions) 2010 2009 2008 | Fixed income securities | Equity securities | Mortgage loans | Other investments | Change in intent write-downs |


MetLife, Inc.  Notes to the Consolidated Financial Statements  (Continued) Issuance Costs In connection with the offering of common equity units, the Holding Company incurred $55.3 million of issuance costs of which $5.8 million related to the issuance of the junior subordinated debentures underlying common equity units which funded the Series A and Series B trust preferred securities and $49.5 million related to the expected issuance of the common stock under the stock purchase contracts.
The $5.8 million in debt issuance costs were capitalized, included in other assets, and amortized using the effective interest method over the period from issuance date of the common equity units to the initial and subsequent stock purchase date.
The remaining $49.5 million of costs related to the common stock issuance under the stock purchase contracts and were recorded as a reduction of additional paid-in capital.
Earnings Per Common Share The stock purchase contracts are reflected in diluted earnings per common share using the treasury stock method.
The stock purchase contracts were included in diluted earnings per common share for the years ended December 31, 2008, 2007 and 2006 as shown in Note 20.
Remarketing of Junior Subordinated Debentures and Settlement of Stock Purchase Contracts On August 15, 2008, the Holding Company closed the successful remarketing of the Series A portion of the junior subordinated debentures underlying the common equity units.
The Series A junior subordinated debentures were modified as permitted by their terms to be 6.817% senior debt securities Series A, due August 15, 2018.
The Holding Company did not receive any proceeds from the remarketing.
Most common equity unit holders chose to have their junior subordinated debentures remarketed and used the remarketing proceeds to settle their payment obligations under the applicable stock purchase contract.
For those common equity unit holders that elected not to participate in the remarketing and elected to use their own cash to satisfy the payment obligations under the stock purchase contract, the terms of the debt are the same as the remarketed debt.
The initial settlement of the stock purchase contracts occurred on August 15, 2008, providing proceeds to the Holding Company of $1,035 million in exchange for shares of the Holding Companys common stock.
The Holding Company delivered 20,244,549 shares of its common stock held in treasury at a value of $1,064 million to settle the stock purchase contracts.
On February 17, 2009, the Holding Company closed the successful remarketing of the Series B portion of the junior subordinated debentures underlying the common equity units.
The Series B junior subordinated debentures were modified as permitted by their terms to be 7.717% senior debt securities Series B, due February 15, 2019.
The Holding Company did not receive any proceeds from the remarketing.
Most common equity unit holders chose to have their junior subordinated debentures remarketed and used the remarketing proceeds to settle their payment obligations under the applicable stock purchase contract.
For those common equity unit holders that elected not to participate in the remarketing and elected to use their own cash to satisfy the payment obligations under the stock purchase contract, the terms of the debt are the same as the remarketed debt.
The subsequent settlement of the stock purchase contracts occurred on February 17, 2009, providing proceeds to the Holding Company of $1,035 million in exchange for shares of the Holding Companys common stock.
The Holding Company delivered 24,343,154 shares of its newly issued common stock at a value of $1,035 million to settle the stock purchase contracts.
See also Notes 10, 12, 18 and 25.14.
Shares Subject to Mandatory Redemption and Company-Obligated Mandatorily Redeemable Securities of Subsidiary Trusts GenAmerica Capital I.
In June 1997, GenAmerica Corporation (GenAmerica) issued $125 million of 8.525% capital securities through a wholly-owned subsidiary trust, GenAmerica Capital I.
In October 2007, GenAmerica redeemed these securities which were due to mature on June 30, 2027.
As a result of this redemption, the Company recognized additional interest expense of $10 million.
Interest expense on these instruments is included in other expenses and was $20 million and $11 million for the years ended December 31, 2007 and 2006, respectively.15.
Income Tax The provision for income tax from continuing operations is as follows:


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


| 2008 2007 2006 2005 2004 | December 31Dollars in millions | Commercial | Commercial real estate | Consumer | Residential real estate | Equipment lease financing | Other | Total | December 31 - in millions | Commercial mortgage | Residential mortgage | Education | Other | Total |


| January 1, 2009 Net Flows Market Appreciation/ (Depreciation) & Other (1) ForeignExchange December 31, 2009 | (in billions) | Columbia Managed Assets:-2 | Retail Funds | Institutional Funds | Alternative Funds | Less: Eliminations | Total Columbia Managed Assets | Threadneedle Managed Assets: | Retail Funds | Institutional Funds | Alternative Funds | Total Threadneedle Managed Assets | Less: Sub-Advised Eliminations | Total Managed Assets |


| Years Ended December 31, | 2018 | (in millions) | Credit loss impairments: | Balance, beginning of period | New credit loss impairments | Additional credit loss impairments on securities previously impaired | Increases due to the passage of time on previously recorded credit losses | Reductions for securities which matured, paid down, prepaid or were sold during the period | Reductions for securities impaired to fair value during the period-1 | Accretion of credit loss impairments previously recognized due to an increase in cash flows expected to be collected | Balance, end of period |


| 2012 2011 2010 | (in thousands) | Net income | Add (subtract): | Non-cash operating activities-1 | Changes in working capital-2 | Pension and postretirement healthcare contributions | Net cash flows provided by operations |


| In millions Severance and Other | Opening balance (recorded first quarter 2010) | Additions and adjustments | Cash charges in 2010 | Cash charges in 2011 | Cash charges in 2012 | Balance, December 31, 2012 |


Operating lease amounts include minimum rental payments under our non-cancelable operating leases for office facilities, as well as limited computer and office equipment that we utilize under lease arrangements.
The amounts presented are consistent with contractual terms and are not expected to differ significantly, unless a substantial change in our headcount needs requires us to expand our occupied space or exit an office facility early.
Purchase obligation amounts include minimum purchase commitments for advertising, capital expenditures (computer equipment, software applications, engineering development services, construction contracts) and other goods and services that were entered into through our ordinary course of business.
For those contractual arrangements in which there are significant performance requirements, we have developed estimates to project expected payment obligations.
These estimates have been developed based upon historical trends, when available, and our anticipated future obligations.
Given the significance of such performance requirements within our advertising and other arrangements, actual payments could differ significantly from these estimates.
The table above does not include liabilities related to unrecognized tax benefits under FASB Interpretation No.48, Accounting for Uncertainty in Income Taxes (FIN 48).
As we are unable to reasonably predict the timing of settlement of such FIN 48 liabilities, the table does not include $494.3 million of such non-current liabilities recorded on our consolidated balance sheet as of December 31, 2007.
Off-Balance Sheet Arrangements As of December 31, 2007, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources.
Customer funds held by PayPal as an agent or custodian on behalf of our customers are not reflected in our consolidated balance sheets.
These funds include funds on behalf of U. S.  customers that are deposited in bank accounts insured by the Federal Deposit Insurance Corporation and funds that U. S.  customers choose to invest in the PayPal Money Market Fund, which totaled approximately $1.8 billion and $1.5 billion as of December 31, 2007 and 2006, respectively.
The PayPal Money Market Fund is invested in a portfolio managed by Barclays Global Fund Advisors.
Given the 17% decline in net revenues and the 13% decrease in non-interest expense, there was a 52% decline in pre-tax earnings.
Overall PCG margins decreased from 9.6% to 5.5%.
As over half of the PCG revenues are recurring or asset based in nature, the decline in the equity markets (and therefore in the market values of client assets) had a significant impact on revenue.
Financial service fees were also lower as these include transaction fees on certain fee-based accounts.
Results of Operations  Capital Markets The following table presents consolidated financial information for our Capital Markets segment for the years indicated:


| Year Ended December 31, 2010 | in millions, except per share data | GAAP results | Non-GAAP adjustments: | Goodwill impairment charge | Intangible asset impairment charges | Acquisition-related credits | Divestiture-related charges | Restructuring-related charges | Litigation-related net credits | Discrete tax items | Amortization expense | Adjusted results |


| Table 9 Contractual Obligations | December 31, 2016 | (Dollars in millions) | Long-term debt | Operating lease obligations | Purchase obligations | Time deposits | Other long-term liabilities | Estimated interest expense on long-term debt and time deposits-1 | Total contractual obligations | Year Ended October 31, | 2016 | (in thousands) | Revenue: | United States | Europe | Japan | Asia Pacific and Other | Consolidated |


| Consolidated Year Ended December 31, | 2016 | Revenues: | Distribution | Advertising | Other | Total revenues | Costs of revenue, excluding depreciation and amortization | Selling, general and administrative expense | Adjusted OIBDA | International Networks | 2016 | Revenues: | Distribution | Advertising | Other | Total revenues | Costs of revenue, excluding depreciation and amortization | Selling, general and administrative expenses | Adjusted OIBDA |


| S&P Credit Rating | AAA | Mortgage-backed securities | Residential mortgage-backed (RMBS) | Agency RMBS | Non-agency RMBS | Total RMBS | Commercial mortgage-backed | Total mortgage-backed securities |


| 2012 Quarters 2011 Quarters | (Dollars in millions) | Reconciliation of average shareholders’ equity to average tangible shareholders’ equity | Shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible shareholders’ equity | Reconciliation of period-end common shareholders’ equity to period-end tangible common shareholders’ equity | Common shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible common shareholders’ equity | Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity | Shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible shareholders’ equity | Reconciliation of period-end assets to period-end tangible assets | Assets | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible assets |


| 2015 2014 2013 | Third-party sales | ATOI |


| 2014 2013 | (Dollars in millions) | Net debt includes: | Current borrowings | Long-term borrowings | Unamortized debt discount | Total debt | Less: Cash and cash equivalents | Net debt | Total capital includes: | Net debt | Shareholders’ equity | Total capital | Percent of net debt to total capital |


| 2004 2003 | Finished goods | Raw materials and work in progress | Inventory step-up (primarily finished goods) | Inventories, net |