| December 31, 2011 2011 Net Charge-offs | (Dollars in millions) | U.S commercial | Commercial real estate | Non-U.S. commercial | U.S. small business commercial | Total | Accretable yield, January 1, 2010 | Accretion | Disposals/transfers | Reclassifications to nonaccretable difference | Accretable yield, December 31, 2010 | Accretion | Disposals/transfers | Reclassifications from nonaccretable difference | Accretable yield, December 31, 2011 | Year Ended December 31, | 2013 | ($ in millions, except per share amounts) | Net earnings (loss) | Adjusted earnings-1 | Earnings (loss) per share | Adjusted earnings per share-1 | Production (MBoe/d) | Realized price per Boe | Adjusted operating income per Boe-2 | Operating cash flow | Capitalized costs | Shareholder distributions-3 | Reserves (MMBoe) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 and thereafter | Total |


Rate Matters NSP-Minnesota Pending and Recently Concluded Regulatory Proceedings — MPUC Base Rate NSP-Minnesota Electric Rate Case — In November 2008, NSP-Minnesota filed a request with the MPUC to increase Minnesota electric rates by $156 million annually.
This request was later modified to $136 million.
In September 2009, the MPUC voted to approve a rate increase of approximately $91.4 million.
As part of its decision, the MPUC approved a 10-year life extension of the Prairie Island nuclear plant for purposes of determining depreciation and decommissioning expenses, effective Jan.  1, 2009.
This decision reduced NSP-Minnesota’s overall
PSCo and SPS have various pay-for-performance contracts with expiration dates through the year 2033.
In general, these contracts provide for capacity payments, subject to meeting certain contract obligations, and energy payments based on actual power taken under the contracts.
Certain contractual payment obligations are adjusted based on indices.
However, the effects of price adjustments are mitigated through cost-of-energy rate adjustment mechanisms.
At Dec.  31, 2009, the estimated future payments for capacity, accounted for as executory contracts, that the utility subsidiaries of Xcel Energy are obligated to purchase, subject to availability, are as follows:


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


| Year Ended December 31 2013 over 2012 2012 over 2011 | ($ in millions) | Sales and Service Revenues | Ingalls | Newport News | Intersegment eliminations | Total sales and service revenues | Operating Income (Loss) | Ingalls | Newport News | Total Segment Operating Income (Loss) | Non-segment factors affecting operating income (loss) | FAS/CAS Adjustment | Deferred state income taxes | Total operating income (loss) |


| 2017 2016 2015 | December 31, (in millions) | Federal funds sold and securities purchased under resale agreements | Securities borrowed | Trading assets: | Debt and equity instruments, excluding loans | Loans reported as tradingassets: | Changes in instrument-specific credit risk | Other changes in fair value | Loans: | Changes in instrument-specific credit risk | Other changes in fair value | Other assets | Deposits(a) | Federal funds purchased and securities loaned or sold under repurchase agreements | Short-term borrowings(a) | Trading liabilities | Beneficial interests issued by consolidated VIEs | Long-term debt(a)(b) |


| Year ended December 31 Change | Dollars in millions | Noninterest income | Asset management | Consumer services | Corporate services | Residential mortgage | Service charges on deposits | Other | Total noninterest income |


| December 31 | (Dollars in millions) | Consumer | Residential mortgage-1 | Home equity | U.S. credit card | Non-U.S. credit card | Direct/Indirect consumer-2 | Other consumer-3 | Total consumer loans excluding loans accounted for under the fair value option | Consumer loans accounted for under the fair value option-4 | Total consumer | Commercial | U.S. commercial-5 | Commercial real estate-6 | Commercial lease financing | Non-U.S. commercial | Total commercial loans excluding loans accounted for under the fair value option | Commercial loans accounted for under the fair value option-4 | Total commercial | Less: Loans of business held for sale-7 | Total loans and leases |


Non-Performing Assets A loan is generally considered “non-performing” when it is placed on non-accrual status.
A loan is generally placed on non-accrual status when it becomes 90 days past due as to interest or principal payments.
Past due status is based on the contractual payment terms of the loan.
A loan may be placed on non-accrual status before it reaches 90 days past due if such loan has been identified as presenting uncertainty with respect to the collectability of interest and principal.
A loan past due 90 days or more may remain on accruing status if such loan is both well secured and in the process of collection.
All previously accrued but unpaid interest on non-accrual loans is reversed from interest income in the period in which the accrual of interest is discontinued.
Interest payments received on non-accrual loans (including impaired loans) are generally applied as a reduction of principal if future collections are doubtful, although such interest payments may be recognized as income.
A loan remains on non-accrual status until the factors that indicated doubtful collectability no longer exist or until a loan is determined to be uncollectible and is charged off against the allowance for loan losses.
There were no loans past due 90 days or more and still accruing interest at December 31, 2016 or 2015.


Bristol-Myers Squibb 104 The Company’s investment strategy emphasizes equities in order to achieve high expected returns and, in the long run, low expense and low required cash contributions.
For the U. S.  pension plans, a target asset allocation of 70% public equity (58% U. S. , 12% international), 8% private equity and 22% fixed income is maintained and cash flow (i. e. , cash contributions, benefit payments) is used to rebalance back to the targets as necessary.
Investments are very well diversified within each of the three major asset categories.
About 40% of the U. S.  equity is passively managed.
Otherwise, all investments are actively managed.
Investment strategies for international pension plans are typically similar, although the asset allocations are usually more conservative.
Bristol–Myers Squibb Company common stock represents less than 1% of the plan assets at December 31, 2005 and 2004.
Assets for postretirement benefits are commingled with U. S.  pension plan assets and, therefore, the investment strategy is identical to that described above for U. S.  pension plans.
Contributions Although no minimum contributions will be required, the Company plans to make cash contributions to the U. S.  pension plans in 2006.
When contributions are made to the U. S.  pension plans, the Company may make tax-deductible contributions to the 401(h) account for retiree medical benefits equal to a portion of the pension normal cost.
Contributions to the international pension plans are now expected to be in the $70 to $90 million range for 2006.
Estimated Future Benefit Payments The following benefit payments for mainly the U.
S pension plans, which reflect expected future service, as appropriate, are expected to be paid:


There are several methods that can be used to determine the estimated fair value of the IPR&D acquired in a business combination.
We utilized the income method, which applies a probability weighting to the estimated future net cash fl ows that are derived from projected sales revenues and estimated costs.
These projections are based on factors such as relevant market size, patent protection, historical pricing of similar products, and expected industry trends.
The estimated future net cash fl ows are then discounted to the present value using an appropriate discount rate.
This analysis is performed for each project independently.
In accordance with FIN 4, Applicability of FASB Statement No.2 to Business Combinations Accounted for by the Purchase Method, these acquired IPR&D intangible assets totaling $4.71 billion and $340.5 million in 2008 and 2007, respectively, were expensed immediately subsequent to the acquisition because the products had no alternative future use.
The ongoing activities with respect to each of these products in development are not material to our research and development expenses.
In addition to the acquisitions of businesses, we also acquired several products in development.
The acquired IPR&D related to these products of $122.0 million and $405.1 million in 2008 and 2007, respectively, was also written off by a charge to income immediately upon acquisition because the products had no alternative future use.


| 2014 2013 2012 | Federal provision/(benefit) at statutory tax rate (35%) | State and local provision/(benefit), net of federal benefit | Acquisition of FNC | Other | Total tax provision/(benefit) – U.S. |


| Year Ended December 31, Year Ended December 31, | 2018 | NYSE cash equities (shares in millions): | NYSE listed (Tape A) issues: | Handled volume | Matched volume | Total NYSE listed consolidated volume | Share of total matched consolidated volume | NYSE Arca, NYSE American and regional listed (Tape B) issues: | Handled volume | Matched volume | Total NYSE Arca, NYSE American and regional listed consolidated volume | Share of total matched consolidated volume | Nasdaq listed (Tape C) issues: | Handled volume | Matched volume | Total Nasdaq listed consolidated volume | Share of total matched consolidated volume | Total cash handled volume | Total cash market share matched | NYSE equity options (contracts in thousands): | NYSE equity options volume | Total equity options volume | NYSE share of total equity options | Revenue capture or rate per contract: | Cash equities rate per contract (per 100 shares) | Equity options rate per contract |


| As of | (in millions) | Derivative Assets: | Designated Hedging Instruments | Currency hedge contracts | Currency hedge contracts | 88 | Non-Designated Hedging Instruments | Currency hedge contracts | Total Derivative Assets | Derivative Liabilities: | Designated Hedging Instruments | Currency hedge contracts | Currency hedge contracts | 30 | Non-Designated Hedging Instruments | Currency hedge contracts | Total Derivative Liabilities |


| 2008 2007 2006 2005 2004 | Softwood lumber-1 | Engineered solid section | Engineered I-joists | Oriented strand board | Plywood | Hardwood lumber | Other products produced-1 | Other products purchased for resale | Total |


| Years ended December 31 2018 2017 2016 | Statutory tax rate | U.S. state income taxes, net of U.S. federal benefit | Taxes on international operations-1 | Nondeductible expenses | Adjustments to prior year tax requirements | Adjustments to valuation allowances | Change in uncertain tax positions | Excess tax benefits related to shared based compensation-2 | U.S. Tax Reform impact-3 | Loss on disposition | Other — net | Effective tax rate |


| Revenue Mix Summary Year Ended Comparable Sales Summary Year Ended | January 31, 2015 | Consumer Electronics | Computing and Mobile Phones | Entertainment | Appliances | Services | Other | Total |


| A.M. Best Standard & Poor's Moody's | Senior Notes | Trust Preferred Securities | Long Term Notes |


| December 31, 2011 | Derivative Assets | (In millions) | Quoted prices in active markets for identical assets and liabilities (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total estimated fair value |


| Land $32,494 | Building | Acquired above-market leases | Acquired in-place leases | Restricted cash | Assets acquired | Mortgage note payable | Acquired below-market leases | Other liabilities, net of other assets | Liabilities assumed | Net assets acquired |


| Year Ended December 31, | 2009 | (Amounts in thousands) | Rental income | Property and maintenance expense | Real estate taxes and insurance expense | Property management expense | Total operating expenses | Net operating income |


In November 2016, the FASB amended the existing accounting standards for the classification and presentation of restricted cash in the statement of cash flows.
The Company adopted the guidance in the first quarter of fiscal 2019, beginning November 1, 2018, using the retrospective method.
As a result of adopting this accounting standards update, for the fiscal years ended October 31, 2018 and 2017, the Company
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Results of Operations – CNA Financial – (Continued) CNA’s property and casualty field structure consists of 33 branch locations across the country organized into 2 territories.
Each branch provides the marketing, underwriting and risk control expertise on the entire portfolio of products.
The Centralized Processing Operation for small and middle-market customers, located in Maitland, Florida, handles policy processing, billing and collection activities, and also acts as a call center to optimize customer service.
The claims structure consists of a centralized claim center designed to efficiently handle property damage and medical only claims and 14 claim office locations around the country handling the more complex claims.
CNA utilizes the net operating income financial measure to monitor its operations.
Net operating income is calculated by excluding from net income the after tax and minority interest effects of (1) net realized investment gains or losses, (2) income or loss from discontinued operations and (3) any cumulative effects of changes in accounting principles.
In evaluating the results of our Standard Lines and Specialty Lines segments, CNA management utilizes the loss ratio, the expense ratio, the dividend ratio, and the combined ratio.
These ratios are calculated using GAAP financial results.
The loss ratio is the percentage of net incurred claim and claim adjustment expenses to net earned premiums.
The expense ratio is the percentage of insurance underwriting and acquisition expenses, including the amortization of deferred acquisition costs, to net earned premiums.
The dividend ratio is the ratio of policyholders’ dividends incurred to net earned premiums.
The combined ratio is the sum of the loss, expense and dividend ratios.
Standard Lines The following table summarizes the results of operations for Standard Lines for the years ended December 31, 2007, 2006 and 2005.


| As of December 31 (dollars in millions) 2015 2014 2013 2012 2011 | Originated non-performing loans: | Commercial: | Commercial and industrial | Commercial real estate | Equipment financing | Total | Retail: | Residential mortgage | Home equity | Other consumer | Total | Total originated non-performing loans -1 | REO: | Residential | Commercial | Total REO | Repossessed assets | Total non-performing assets | Originated non-performing loans as a percentage of originated loans | Non-performing assets as a percentage of: | Originated loans, REO and repossessed assets | Tangible stockholders’ equity and originated allowance for loan losses |


Depreciation expense was $215.8 million, $182.6 million and $155.0 million for the years ended December 31, 2008, 2007 and 2006, respectively


| For the years ended December 31, 2007 2006 2005 | Operating revenues | Operating income | Net income | As of December 31: | Current assets | Noncurrent assets | Current liabilities | Noncurrent liabilities |


| Fair Value | (in millions) | Bonds available for sale | Common stocks available for sale | Preferred stocks available for sale | Financial Services securities available for sale | Securities lending invested collateral | Total |


| Years Ended December 31, 2015 2014 | Net income | Interest expense | Income taxes | Depreciation of fixed assets | Amortization of intangible assets | Total EBITDA | Total Debt | Total debt-to-EBITDA ratio |


| -1 December 31, 2007 December 31, 2006 | NAIC Designation | (in millions) | 1 | 2 | Subtotal Investment Grade | 3 | 4 | 5 | 6 | Subtotal Below Investment Grade | Total Public Fixed Maturities |


The closing price of our common stock on the NYSE on February 17, 2017 was $37.15.
As of February 17, 2017, there were 1,580 holders of record of our common stock, including CHESS Depository Nominees Pty Limited, which held shares of our common stock on behalf of our CDI holders.
Our board of directors has adopted a dividend policy under which we have paid, and in the future intend to pay, quarterly cash dividends on our common stock.
The amount and timing of future dividends will continue to be subject to the approval of our board of directors, in its sole discretion, and to applicable legal requirements.
In 2015 and 2016, our board of directors declared the following dividends:


| Year Ended December 31, | 2010 | Steam Sold (MMlb) | General | Apartment house | Annual power | Total Steam Delivered to CECONY Customers | Steam Sold ($ in millions) | General | Apartment house | Annual power | Other operating revenues | Total Steam Delivered to CECONY Customers | Average Revenue per MMlb Sold | Year Ended December | $ in millions | Compensation and benefits | U.K. bank payrolltax | Brokerage, clearing, exchange anddistribution fees | Market development | Communications and technology | Depreciation and amortization | Occupancy | Professional fees | Insurance reserves1 | Other expenses | Total non-compensation expenses | Total operating expenses | Total staff atperiod-end2 |


| December 31 | Nonperforming Loans and Leases | (Dollars in millions) | Consumer real estate | Core portfolio | Residential mortgage-1 | Home equity | Legacy Assets & Servicing portfolio | Residential mortgage-1 | Home equity | Credit card and other consumer | U.S. credit card | Non-U.S. credit card | Direct/Indirect consumer | Other consumer | Total consumer | Commercial | U.S. commercial | Commercial real estate | Commercial lease financing | Non-U.S. commercial | U.S. small business commercial | Total commercial | Total loans and leases |


Earnings (Loss) Per Share Diluted loss per share in fiscal 2015 was $0.60, including a loss of $1.46 per diluted share from continuing operations and earnings of $0.86 per diluted share from discontinued operations.
Diluted earnings per share in fiscal 2014 were $0.70, including $0.37 per diluted share from continuing operations and $0.33 per diluted share from discontinued operations.
See “Items Impacting Comparability” above as several significant items affected the comparability of year-over-year results of operations.


| Pension Benefits-1 Other Retiree Benefits-2 | Years ended June 30 | CHANGE IN BENEFIT OBLIGATION | Benefit obligation at beginning of year-3 | Service cost | Interest cost | Participants' contributions | Amendments | Net actuarial loss/(gain) | Acquisitions/(divestitures)(4) | Curtailments | Special termination benefits | Currency translation and other | Benefit payments | BENEFIT OBLIGATION AT END OF YEAR-3 |


| (Dollars in millions) 2016 2015 2014 | Net income | Other comprehensive income (loss), net-of-tax: | Net change in debt and marketable equity securities | Net change in debit valuation adjustments | Net change in derivatives | Employee benefit plan adjustments | Net change in foreign currency translation adjustments | Other comprehensive income (loss) | Comprehensive income |


| United States Equatorial Guinea Israel Other Int'l-2 Total | (millions) | Year Ended December 31, 2010 | Property Acquisition Costs | Proved-3 | Unproved-4 | Total Acquisition Costs | Exploration Costs-5 | Development Costs-6 | Total Consolidated Operations | Year Ended December 31, 2009 | Property Acquisition Costs | Proved-3 | Unproved-4 | Total Acquisition Costs | Exploration Costs-5 | Development Costs-6 | Total Consolidated Operations | Year Ended December 31, 2008 | Property Acquisition Costs | Proved-3 | Unproved-4 | Total Acquisition Costs | Exploration Costs-5 | Development Costs-6 | Total Consolidated Operations |


| Rental   Income Sublease   Income Gross   Rental   Payments | (In millions) | 2009 | 2010 | 2011 | 2012 | 2013 | Thereafter |


The products having the largest impact on our comparable store sales decline in fiscal 2011 were entertainment hardware and software (which includes video gaming hardware and software, CDs and DVDs) and televisions.
Comparable store sales gains in mobile phones, mobile computing (consisting of notebook computers, netbooks and tablets) partially offset these declines.
Revenue from our Domestic segments online operations increased 13% in fiscal 2011 and is incorporated in the table above.
The 6.3% comparable store sales decline in the consumer electronics revenue category was driven primarily by a decrease in the sales of televisions and cameras and camcorders, partially offset by strong sales from our expanded assortment of e-Readers.
The 3.6% comparable store sales gain in the home office revenue category was primarily the result of increased sales of mobile phones due to the continued growth of Best Buy Mobile, as well as gains in the sales of mobile computing.
The 13.3% comparable store sales decline in the entertainment revenue category was mainly the result of declining sales in video gaming hardware and software, partially caused by industry-wide softness combined with a decline in our market share, as well as the continued decline in the sales of DVDs and CDs as consumers shift to digital content.
The 7.0% comparable store sales gain in the appliances revenue category was due to an increase in unit sales with relatively flat average selling prices, with particular strength in kitchen and small appliances.
The 0.5% comparable store sales gain in the services revenue category was due primarily to a gain in the sales of computer services, partially offset by a decline in the sales of repair and home theater installation services, due in part to the decrease in television sales noted above.
Despite a modest decline in revenue, our Domestic segment experienced gross profit growth in fiscal 2011 of $324 million, or 3.6%, compared to fiscal 2010, due to rate improvements.
The 0.9% of revenue increase in the gross profit rate was due to favorable rate and mix impacts of 0.7% of revenue and 0.2% of revenue, respectively, and resulted primarily from the following factors collectively: ?
increased sales of higher-margin mobile phones as a result of the growth in Best Buy Mobile;


The accumulation of four quarters in fiscal years 2011 and 2010 for earnings per share may not equal the related per share amounts forthe years ended April 30, 2011 and 2010 due to the timing of the exercise of stock options and
In September 2015, our Board of Directors approved a $3.5 billion share repurchase program, effective through June 2019.
As a part of the repurchase program, in the current year, we purchased $184.8 million of our common stock at an average price of $23.51 per share.
See Item 8, note 8 to the consolidated financial statements for additional information.
In June 2019, our Board of Directors extended its previous share repurchase authorization for three years.
Approximately $1.0 billion remains under this authorization, which now expires in June 2022.
These repurchases may be effectuated through open market transactions, some of which may be effectuated under SEC Rule 10b5-1.
The Company may cancel, suspend, or extend the time period for the purchase of shares at any time.
Any repurchases will be funded primarily through available cash and cash from operations.
Although we may continue to repurchase shares, there is no assurance that we will purchase up to the full Board authorization.
Capital Investment.
Capital expenditures totaled $95.5 million and $98.6 million in fiscal years 2019 and 2018, respectively.
In addition, we expended net cash totaling $43.6 million and $42.5 million in fiscal years 2019 and 2018, respectively, to acquire franchisee and competitor businesses.
Our capital expenditures relate primarily to improvements to retail offices, as well as investments in computers, software and related assets.
As discussed in Item 1, Recent Developments, on June 10, 2019 we entered into a definitive agreement to acquire Wave, a rapidly growing financial solutions platform focused on changing the way small business owners manage their finances.
Under the terms of the agreement, H&R Block will acquire all outstanding shares of Wave for $405 million, subject to customary adjustments for working capital, debt and transaction expenses.
The acquisition will be funded with available cash.
FINANCING RESOURCES  We had no balance outstanding on our 2018 CLOC as of April 30, 2019.
As of April 30, 2019, amounts available to borrow under the 2018 CLOC were limited by the debt-to-EBITDA covenant to approximately $1.2 billion; however, our cash needs at April 30 generally do not require us to borrow on our CLOC at that time.
See Item 8, note 7 to the consolidated financial statements for discussion of the Senior Notes and our 2018 CLOC.
The following table provides ratings for debt issued by Block Financial as of April 30, 2019 and 2018:


The Companys recorded liabilities were $6 million at both December 31, 2008 and 2007 for indemnities, guarantees and commitments.
In connection with synthetically created investment transactions, the Company writes credit default swap obligations that generally require payment of principal outstanding due in exchange for the referenced credit obligation.
If a credit event, as defined by the contract, occurs the Companys maximum amount at risk, assuming the value of all referenced credit obligations is zero, was $1.9 billion at December 31, 2008.
However, the Company believes that any actual future losses will be significantly lower than this amount.
Additionally, the Company can terminate these contracts at any time through cash settlement with the counterparty at an amount equal to the then current estimated fair value of the credit default swaps.
As of December 31, 2008, the Company would have paid $37 million to terminate all of these contracts.


| 2009 2010 2011 2012 2013 2014 | State Street Corporation | S&P 500 Index | S&P Financial Index | KBW Bank Index |


| At December 31, 2014 Retail Group,Voluntary& WorksiteBenefits CorporateBenefitFunding LatinAmerica Asia -1 EMEA Corporate& Other Total | (In millions) | Total assets | Separate account assets | Separate account liabilities |


| Outstanding at Unvested Restricted Stock and Units Weighted Average Grant Date Fair Value | December 31, 2005 | Granted | Converted | Forfeited | December 31, 2006 | Granted | Converted | Forfeited | December 31, 2007 | Granted | Converted | Forfeited | December 31, 2008-1 |


| For the Years Ended December 31, | (In millions) | Transmission and distribution | Treatment and pumping | Services, meter and fire hydrants | General structure and equipment | Sources of supply | Wastewater | Total capital expenditures |


| Period Sharespurchased Average priceper share Shares purchased aspart of publiclyannounced plans orprograms Approximatevalue of sharesthat may yet bepurchased underpubliclyannounced plansor programs* | 09/30/18 to 10/27/18 | 10/28/18 to 11/24/18 | 11/25/18 to 12/29/18 | Total/Average |


| December 31, 2007 2006 | Deferred bond financing costs, net | Value of in-place and above-market leases, net | Prepaid expenses | Corporate assets, net of accumulated depreciation and amortization | Settlements on treasury lock agreements | Unamortized credit line fees, net | Other items | $35,648 |


| Non-vested Shares Number of Shares Weighted-Average Grant-Date Fair Value | Non-vested at September 27, 2008 | Granted. | Vested | Forfeited | Non-vested at September 26, 2009 |


| 2014 2013 2012 | Net sales | Operating profit | Operating margins | Backlog at year-end |


| Years ended December 31, | 2009 | Balance at beginning of period | Charged (reversed) to costs and expenses | Charged (reversed) to gross tax assets and other accounts | Balance at end of period |


| 2014 Change 2013 Change 2012 | Interest and dividend income | Interest expense | Other expense, net | Total other income/(expense), net |


Equity During 2016 we received $111 million in proceeds from stock issuances related to our stock option and employee stock purchase plans, as compared to $114 million in 2015 and $60 million 2014.
Proceeds from the exercise of employee stock options and employee stock purchases vary from period to period based upon, among other factors, fluctuations in the trading price of our common stock and in the exercise and stock purchase patterns of employees.
group purchasing organizations to sell our products to participating hospitals at negotiated prices.
We recognize revenue from these agreements following the same revenue recognition criteria discussed above.
Warranty Obligations We offer warranties on certain of our product offerings.
The majority of our warranty liability relates to implantable devices offered by our CRM business, which include defibrillator and pacemaker systems.
Our CRM products come with a standard limited warranty covering the replacement of these devices.
We offer a full warranty for a portion of the period post-implant, and a partial warranty for a period of time thereafter.
We estimate the costs that we may incur under our warranty programs based on the number of units sold, historical and anticipated rates of warranty claims and cost per claim, and record a liability equal to these estimated costs as cost of products sold at the time the product sale occurs.
We assess the adequacy of our recorded warranty liabilities on a quarterly basis and adjust these amounts as necessary.
Changes in our product warranty accrual during 2016, 2015, and 2014 consisted of the following (in millions):


| Number of Shares (In thousands) Weighted  Average  Exercise  Price Average  Remaining  Contractual  Term  (Years) Aggregate  Intrinsic  Value  (In billions) | Outstanding at September 25, 2005 | Options granted | Options assumed-1 | Options cancelled/forfeited/expired | Options exercised | Outstanding at September 24, 2006 | Exercisable at September 24, 2006 |


| 2018 2017 2016 | Expected volatility | Risk-free interest rate | Expected life (years) | Grant date fair value per share |


International Marketing Activities Our share of crude oil and condensate from the Aseng and Alen fields is sold at marketbased prices to Glencore Energy UK Ltd (Glencore Energy) under a long-term sales contract through 2018.
Our share of crude oil and condensate from the Alba field is sold to Glencore Energy under a short-term sales contract, subject to renewal.
These products are transported by tanker.
Natural gas from the Alba field is sold for $0.25 per MMBtu to a methanol plant, an LPG plant and an unaffiliated LNG plant.
The sales contract with the methanol plant runs through 2026, and the sales contract with the LNG plant runs through 2023.
The methanol and LPG plants are owned by affiliated entities accounted for under the equity method of accounting.
In Israel, we sell natural gas from the Tamar and Mari-B fields, and have agreements with multiple customers to sell natural gas under long-term contracts, ranging from 15 to 17 years.
See Delivery Commitments, below.


| 2019 2020 2021 2022 2023 | (millions) | Generating facilities | Transmission and distribution facilities | General facilities | Total utility capital expenditures |


REPUBLIC SERVICES, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued) high quality financial institutions.
Such balances may be in excess of FDIC insured limits.
To manage the related credit exposure, we continually monitor the credit worthiness of the financial institutions where we have deposits.
Concentrations of credit risk with respect to trade accounts receivable are limited due to the wide variety of customers and markets in which we provide services, as well as the dispersion of our operations across many geographic areas.
We provide services to small-container, large-container, municipal and residential, and energy services customers in the United States and Puerto Rico.
We perform ongoing credit evaluations of our customers, but generally do not require collateral to support customer receivables.
We establish an allowance for doubtful accounts based on various factors including the credit risk of specific customers, age of receivables outstanding, historical trends, economic conditions and other information.
Accounts Receivable, Net Accounts receivable represent receivables from customers for collection, transfer, recycling, disposal, energy services and other services.
Our receivables are recorded when billed or when the related revenue is earned, if earlier, and represent claims against third parties that will be settled in cash.
The carrying value of our receivables, net of the allowance for doubtful accounts and customer credits, represents their estimated net realizable value.
Provisions for doubtful accounts are evaluated on a monthly basis and are recorded based on our historical collection experience, the age of the receivables, specific customer information and economic conditions.
We also review outstanding balances on an account-specific basis.
In general, reserves are provided for accounts receivable in excess of 90 days outstanding.
Past due receivable balances are written-off when our collection efforts have been unsuccessful in collecting amounts due.
The following table reflects the activity in our allowance for doubtful accounts for the years ended December 31:


2016 Compared to 2015 The $108 million increase in base management fees was driven by $103 million from the Starwood Combination and the following Legacy-Marriott drivers: the impact of stronger sales at existing properties ($22 million) and unit growth across our system ($15 million), partially offset by the impact of unfavorable foreign exchange rates ($15 million), lower deferred fee recognition ($11 million), and lower fees from properties that converted from managed to franchised ($8 million).
The $185 million increase in franchise fees was driven by $98 million from the Starwood Combination and the following Legacy-Marriott drivers: the impact of unit growth across our system ($48 million), higher branding fees ($39 million), stronger sales at existing properties ($16 million), and higher fees from properties that converted from managed to franchised ($11 million), partially offset by lower relicensing fees ($22 million) and the impact of unfavorable foreign exchange rates ($7 million).
The $106 million increase in incentive management fees was driven by $72 million from the Starwood Combination and the following Legacy-Marriott drivers: higher net house profit and unit growth, higher incentive fees earned from a few limited-service portfolios ($10 million), and higher deferred fee recognition ($8 million), partially offset by the impact of unfavorable foreign exchange rates ($7 million).
In 2016, 69 percent of our Legacy-Marriott managed properties paid incentive management fees to us versus 68 percent in 2015.
In North America, 65 percent of Legacy-Marriott managed properties paid incentive management fees in 2016 compared to 63 percent in 2015.
Outside North America, 74 percent of Legacy-Marriott managed properties paid incentive management fees in both 2016 and 2015, representing 48 percent of our total incentive management fees in 2016 from Legacy-Marriott managed properties compared to 51 percent of our total incentive management fees in 2015.


| Payments due by year | (Millions) | Long-term debt, including current portion (Note 10) | Interest on long-term debt | Operating leases (Note 14) | Capital leases (Note 14) | Unconditional purchase obligations and other | Total contractual cash obligations | Adverse impact on after-tax earnings | (Millions) | Foreign exchange rates | Interest rates | Commodity prices | Fair Value Measurements Using Inputs Considered as | (Millions) | Asset Class | Equities | U.S. equities | Non-U.S. equities | Index and long/short equity funds* | Total Equities | Fixed Income | U.S. government securities | Non-U.S. government securities | U.S. corporate bonds | Non-U.S. corporate bonds | Derivative instruments | Other* | Total Fixed Income | Private Equity | Derivative instruments | Growth equity | Partnership investments* | Total Private Equity | Absolute Return | Fixed income and other | Hedge fund/fund of funds* | Partnership investments* | Total Absolute Return | Cash and Cash Equivalents | Cash and cash equivalents | Cash and cash equivalents, valued at net asset value* | Total Cash and Cash Equivalents | Total | Other items to reconcile to fair value of plan assets | Fair value of plan assets |


| Year Ended December 31, | 2014 | Electric Energy Delivered(millions of kWh) | CECONY full service customers | Delivery service for retail choice customers | Delivery service to NYPA customers and others | Total Deliveries in Franchise Area | Electric Energy Delivered($ in millions) | CECONY full service customers | Delivery service for retail choice customers | Delivery service to NYPA customers and others | Other operating revenues | Total Deliveries in Franchise Area | Average Revenue per kWh Sold(Cents) | Residential | Commercial and industrial |


| Total revenues—as reported $7,473 $7,346 $6,889 2% 7% | Impact of FX translation-2 | Total revenues—ex-FX-3 | Total operating expenses—as reported | Impact of FX translation-2 | Total operating expenses—ex-FX-3 | Provisions for credit losses—as reported | Impact of FX translation-2 | Provisions for credit losses—ex-FX-3 | Net income—as reported | Impact of FX translation-2 | Net income—ex-FX-3 |


| Table 49 Net Credit Default Protection by Credit Exposure Debt Rating December 31 | 2011 | (Dollars in millions) | Ratings-1, 2 | AAA | AA | A | BBB | BB | B | CCC and below | NR-3 | Total net credit default protection |


| Table 26 Home Equity – Key Credit Statistics December 31 | Reported Basis | (Dollars in millions) | Outstandings | Accruing past due 30 days or more-1 | Nonperforming loans-1 | Percent of portfolio | Refreshed combined LTV greater than 90 but less than 100 | Refreshed combined LTV greater than 100 | Refreshed FICO below 620 | 2006 and 2007 vintages-2 | Net charge-off ratio-3 |


| Year Ended December 31 2015 over 2014 2014 over 2013 | ($ in millions) | Net earnings (loss) | Depreciation and amortization | Stock-based compensation | Excess tax benefit related to stock-based compensation | Deferred income taxes | Retiree benefit funding less than (in excess of) expense | Insurance proceeds for investing purposes | Impairment of goodwill and intangible assets | Loss on early extinguishment of debt | Trade working capital decrease (increase) | Net cash provided by (used in) operating activities |


| 2003 2002 | (in thousands) | Land | Buildings | Equipment and computer software | Assets held for sale | 1,022,825 | Accumulated depreciation | Property and equipment, net |


| 2016 2015 Change | First quarter | Second quarter | Third quarter | Fourth quarter | Total year |


| Net Sales | (Amounts in millions) | Product Category: | Tools | Diagnostics and repair information | Equipment | $2,841.2 |


| Cash and cash equivalents $5,427.4 | Inventories | Other current assets | Property, plant and equipment | Other identifiable intangible assets:-1 | Products and product rights(10-yearweighted average useful life) | In-process research and development (“IPR&D”)(2) | Tradenames(26-yearweighted average useful life) | Other | Other noncurrent assets | Current liabilities | Deferred income tax liabilities | Long-term debt | Other noncurrent liabilities | Total identifiable net assets | Goodwill-3 | Estimated consideration transferred |


| Pension Benefits December 31 Other Benefits December 31 | ($ in millions) | Change in Benefit Obligation | Benefit obligation at beginning of year | Service cost | Interest cost | Plan participants' contributions | Actuarial loss (gain) | Benefits paid | Curtailments | Benefit obligation at end of year | Change in Plan Assets | Fair value of plan assets at beginning of year | Actual return on plan assets | Employer contributions | Plan participants' contributions | Benefits paid | Fair value of plan assets at end of year | Funded status | Amounts Recognized in the Consolidated Statements of Financial Position: | Pension plan assets | Current liability-1 | Non-current liability-2 | Accumulated other comprehensive loss (income) (pre-tax) related to: | Prior service costs (credits) | Net actuarial loss (gain) |


| As of June 30, | 2019 | (in millions) | FOX News Media Networks | FOX News(a) | FOX Business(a) | FOX Sports Networks | FS1(a) | FS2 | Big Ten Network(a) | FOX Deportes |


| 2013 2012 2011 | Cash dividends paid per common share | Cash dividends paid as a percent of prior-year retained earnings |


discounted cash flow model (DCF) to estimate the current fair value of its reporting units when testing for impairment, as management believes forecasted cash flows are the best indicator of such fair value.
A number of significant assumptions and estimates are involved in the application of the DCF model to forecast operating cash flows, including sales growth (volumes and pricing), production costs, capital spending, and discount rate.
Most of these assumptions vary significantly among the reporting units.
Cash flow forecasts are generally based on approved business unit operating plans for the early years and historical relationships in later years.
The WACC rate for the individual reporting units is estimated with the assistance of valuation experts.
Arconic would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value without exceeding the total amount of goodwill allocated to that reporting unit.
In connection with the interim impairment evaluation of long-lived assets for the disks operations (an asset group within the AEN business unit) in the second quarter of 2018, which resulted from a decline in forecasted financial performance for the business in connection with its updated three-year strategic plan, the Company also performed an interim impairment evaluation of goodwill for the AEN reporting unit.
The estimated fair value of the reporting unit was substantially in excess of the carrying value; thus, there was no impairment of goodwill.
Goodwill impairment tests in 2017 and 2016 indicated that goodwill was not impaired for any of the Companys reporting units, except for the Arconic Forgings and Extrusions (AFE) business whose estimated fair value was lower than its carrying value.
As such, Arconic recorded an impairment for the full amount of goodwill in the AFE reporting unit of $719.
The decrease in the AFE fair value was primarily due to unfavorable performance that was impacting operating margins and a higher discount rate due to an increase in the risk-free rate of return, while the carrying value increased compared to prior year.


| December 31 – in millions 2011 (a) 2010 (a) 2009 (a) 2008 (a) 2007 | Commercial lending | Commercial | Commercial real estate | Equipment lease financing | TOTAL COMMERCIAL LENDING | Consumer lending | Home equity | Residential real estate | Credit card | Other consumer | TOTAL CONSUMER LENDING | Total loans |


THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements Note 25.  Business Segments The firm reports its activities in the following four business segments: Investment Banking, Institutional Client Services, Investing & Lending and Investment Management.
Basis of Presentation In reporting segments, certain of the firms business lines have been aggregated where they have similar economic characteristics and are similar in each of the following areas: (i) the nature of the services they provide, (ii) their methods of distribution, (iii) the types of clients they serve and (iv) the regulatory environments in which they operate.
The cost drivers of the firm taken as a whole  compensation, headcount and levels of business activity  are broadly similar in each of the firms business segments.
Compensation and benefits expenses in the firms segments reflect, among other factors, the overall performance of the firm as well as the performance of individual businesses.
Consequently, pre-tax margins in one segment of the firms business may be significantly affected by the performance of the firms other business segments.
The firm allocates assets (including allocations of global core liquid assets and cash, secured client financing and other assets), revenues and expenses among the four business segments.
Due to the integrated nature of these segments, estimates and judgments are made in allocating certain assets, revenues and expenses.
The allocation process is based on the manner in which management currently views the performance of the segments.
Transactions between segments are based on specific criteria or approximate third-party rates.
Total operating expenses include charitable contributions that have not been allocated to individual business segments.
Management believes that the information in the table below provides a reasonable representation of each segments contribution to consolidated pre-tax earnings and total assets.


| Year ended December 31 (in millions) 2008 2007 2006 | Gains on sales and exchanges of investments, net | Investment impairment losses | Unrealized gains (losses) on trading securities and hedged items | Mark to market adjustments on derivatives related to trading securities and hedged items | Mark to market adjustments on derivatives | Interest and dividend income | Other | Investment income (loss), net |


| Year Ended April 30, 2011 2010 (in 000s) 2009 | Balance as of May 1: | Amount related to repurchase and indemnifications | Amount related to indemnity agreement dated April 2008 | 188,200 | Changes: | Provisions | Losses on repurchase and indemnifications | Payments under indemnity agreement dated April 2008 | Balance as of April 30: | Amount related to repurchase and indemnifications | Amount related to indemnity agreement dated April 2008 | $126,260 |


| 2017 2016 | (Dollars in thousands) | Deferred tax assets: | Tax loss and credit carryforwards | Pension | Reserves and accruals | Other | Less: valuation allowances | Total deferred tax assets | Deferred tax liabilities: | Property, plant and equipment | Intangibles — stock acquisitions | Unremitted foreign earnings | Other | Total deferred tax liabilities | Net deferred tax liability |


| 2017 2016 | (Dollars in millions) | Net debt includes: | Current borrowings | Long-term borrowings | Unamortized debt discount | Unamortized debt issuance costs | 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 |


DERIVATIVES AND HEDGING ACTIVITIES We periodically enter into interest rate swap agreements and forward contracts to manage exposure to interest rate fluctuations and to mitigate foreign exchange volatility.
In May of 2005, we terminated all of our long-term interest rate swap agreements covering the $350.0 6.25% Senior Unsecured Notes and $150.0 of the $500.0 7.25% Senior Unsecured Notes.
In connection with the interest rate swap termination, our net cash receipts were $1.1, which is recorded as an offset to interest expense over the remaining life of the related debt.
We have entered into foreign currency transactions in which various foreign currencies are bought or sold forward.
These contracts were entered into to meet currency requirements arising from specific transactions.
The changes in value of these forward contracts have been recorded in other income or expense.
As of December 31, 2006 and 2005, we had contracts covering $0.2 and $6.2, respectively, of notional amount of currency and the fair value of the forward contracts was negligible.
The terms of the 4.50% Notes include two embedded derivative instruments and the terms of our 4.25% Notes and our Series B Preferred Stock each include one embedded derivative instrument.
The fair value of these derivatives on December 31, 2006 was negligible.


| Year Ended December 31, 2013 to 2014 % Change 2012 to 2013 % Change | 2014 | (in thousands) | General and administrative | General and administrative as a percentage of revenue |


results in the dollar duration of equity.
Duration of equity is computed by dividing the dollar duration of equity by the fair value of equity.
Income simulation is an estimate of the net interest income that would be recognized under different rate environments.
Net interest income is measured under several parallel and nonparallel interest rate environments and deposit repricing assumptions, taking into account an estimate of the possible exercise of options within the portfolio.
Both of these measurement methods require that we assess a number of variables and make various assumptions in managing the Company’s exposure to changes in interest rates.
The assessments address loan and security prepayments, early deposit withdrawals, and other embedded options and noncontrollable events.
As a result of uncertainty about the maturity and repricing characteristics of both deposits and loans, the Company estimates ranges of duration and income simulation under a variety of assumptions and scenarios.
The Company’s interest rate risk position changes as the interest rate environment changes and is managed actively to try to maintain a consistent slightly asset-sensitive position.
However, positions at the end of any period may not be reflective of the Company’s position in any subsequent period.
We should note that estimated duration of equity and the income simulation results are highly sensitive to the assumptions used for deposits that do not have specific maturities, such as checking, savings, and money market accounts and also to prepayment assumptions used for loans with prepayment options.
Given the uncertainty of these estimates, we view both the duration of equity and the income simulation results as falling within a range of possibilities.
For income simulation, Company policy requires that interest sensitive income from a static balance sheet is expected to decline by no more than 10% during one year if rates were to immediately rise or fall in parallel by 200 basis points.
As of the dates indicated, Schedule 41 shows the Company’s estimated range of duration of equity and percentage change in interest sensitive income in the first year after the rate change if interest rates were to sustain an immediate parallel change of 200 basis points; the “low” and “high” results differ based on the assumed speed of repricing of administered-rate deposits (money market, interest-on-checking, and savings):


ITEM 6.
Selected Financial Data The following tables set forth selected consolidated financial information from our audited Consolidated Financial Statements as of and for the fiscal years ended June 30, 2013, 2012, 2011, 2010 and 2009.
The selected financial data presented below should be read in conjunction with our Financial Statements and the accompanying Notes included in this Annual Report on Form 10-K and Managements Discussion and Analysis of Financial Condition and Results of Operations.


| December 31 | (Dollars in millions) | Consumer | Residential mortgage-1 | Home equity | Discontinued real estate-2 | Credit card – domestic | Credit card – foreign | Direct/Indirect consumer-3 | Other consumer-4 | Total consumer | Commercial | Commercial – domestic-5 | Commercial real estate-6 | Commercial lease financing | Commercial – foreign | Total commercial loans | Commercial loans measured at fair value-7 | Total commercial | Total loans and leases |


Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis 10 The volume/weather variance is primarily due to an increase of 1,402 GWh, or 1%, in billed electricity usage, including an increase in industrial usage and the effect of more favorable weather.
The increase in industrial sales was primarily due to expansion in the chemicals industry and the addition of new customers, partially offset by decreased demand primarily due to extended maintenance outages for existing chemicals customers.
The Waterford 3 replacement steam generator provision is due to a regulatory charge of approximately $32 million recorded in 2015 related to the uncertainty associated with the resolution of the Waterford 3 replacement steam generator project.
See Note 2 to the financial statements for a discussion of the Waterford 3 replacement steam generator prudence review proceeding.
The MISO deferral variance is primarily due to the deferral in 2014 of non-fuel MISO-related charges, as approved by the LPSC and the MPSC.
The deferral of non-fuel MISO-related charges is partially offset in other operation and maintenance expenses.
See Note 2 to the financial statements for further discussion of the recovery of non-fuel MISO-related charges.
The Louisiana business combination customer credits variance is due to a regulatory liability of $107 million recorded by Entergy in October 2015 as a result of the Entergy Gulf States Louisiana and Entergy Louisiana business combination.
Consistent with the terms of the stipulated settlement in the business combination proceeding, electric customers of Entergy Louisiana will realize customer credits associated with the business combination; accordingly, in October 2015, Entergy recorded a regulatory liability of $107 million ($66 million net-of-tax).
See Note 2 to the financial statements for further discussion of the business combination and customer credits.


3.
DEBT On October 31, 2012, the Company entered into a Revolving Credit Agreement with SunTrust Bank and Bank of America, N. A.  for an unsecured line of credit of up to $175.0 million, which includes a $75.0 million letter of credit subfacility, and a $25.0 million swingline subfacility.
The Credit Agreement was amended on October 30, 2014 to extend the maturity date to October 31, 2018 and add three optional one year extensions.
On October 27, 2015 the Company exercised a one year extension option to extend the maturity date to October 31, 2019.
As of December 31, 2017, no borrowings were outstanding under the line of credit or under the swingline subfacility.
The Company maintains approximately $29.4 million in letters of credit.
These letters of credit are required by the Companys fronting insurance companies and/or certain states, due to the Companys self-insured status, to secure various workers compensation and casualty insurance contracts coverage.
The Company believes that it has adequate liquid assets, funding sources and insurance accruals to accommodate such claims.
The Revolving Credit Agreement is guaranteed by certain of Rollins domestic-subsidiaries.
The maturity date of the Credit Agreement is October 31, 2019, subject to up to two optional extensions of the Credit Agreement for one year each.
Revolving loans under the Revolving Credit Agreement bear interest at one of the following two rates, at the Companys election: ?
the Base Rate, which shall mean the highest of (i) the per annum rate which the Administrative Agent publicly announces from time to time as its prime lending rate, (ii) the Federal Funds rate, plus 0.50% per annum, and (iii) the Adjusted LIBOR Rate (which equals LIBOR as increased to account for the maximum reserve percentages established by the U. S.  Federal Reserve) determined on a daily basis for an interest period of one (1)month, plus 1.0% per annum.  ?
with respect to any Eurodollar borrowings, the Adjusted LIBOR Rate plus an additional amount, which varies between 0.75% and 1.00%, based upon Rollins then-current debt-to-EBITDA ratio.
As of December 31, 2017, the additional rate allocated was .75%.
The Revolving Credit Agreement contains customary terms and conditions, including, without limitation, certain financial covenants including covenants restricting the Companys ability to incur certain indebtedness or liens, or to merge or consolidate with or sell substantially all of its assets to another entity.
Further, the Revolving Credit Agreement contains financial covenants restricting the Companys ability to permit the ratio of the Companys consolidated debt to EBITDA to exceed certain limits.
The Company was in compliance with applicable debt covenants at December 31, 2017 and expects to maintain compliance throughout 2018.4.
TRADE RECEIVABLES The Allowance for Doubtful Accounts is principally calculated based on the application of estimated loss percentages to delinquency aging totals, based on contractual terms, for the various categories of receivables.
Bad debt write-offs occur according to Company policies that are specific to pest control, commercial and termite accounts.


| Years Ended December 31, | (in millions) | Net income | Amortization of intangibles(a) | Non-cash equity-based compensation | Non-cash equity-based compensation related to equity investment(b) | Net loss on extinguishments of long-term debt | Acquisition and integration expenses(c) | Gain on remeasurement of equity investment(d) | Other adjustments(e) | Aggregate adjustment for income taxes(f) | Non-GAAP net income(g) |


| Current assets $497 | Property, plant and equipment, net | Goodwill | Other long-term assets | Total assets | Current liabilities, including current maturities of long-term debt | Long-term liabilities | Long-term debt | Total liabilities | Total purchase price |


| Net fair value of acquired assets and liabilities $206,852 | Less advances to acquired entities eliminated upon consolidation | Less acquisition date carrying value of equity in acquired entities | Loss on business combination |


| In millions 2007 2008 2009 2010 2011 Thereafter | Lease obligations (a) | Purchase obligations (b,c) | Total |


Commercial Real Estate The commercial real estate portfolio is predominantly managed in Global Commercial Banking and consists of loans made primarily to public and private developers, homebuilders and commercial real estate firms.
Outstanding loans decreased $20.1 billion at December 31, 2010 compared to December 31, 2009 due to portfolio attrition, the sale of First Republic, transfer of certain assets to LHFS and net charge-offs.
The portfolio remains diversified across property types and geographic regions.
California represents the largest state concentration at 18 percent of commercial real estate loans and leases at December 31, 2010.
For more information on geographic and property concentrations, refer to Table 38.  Credit quality for commercial real estate is showing signs of stabilization; however, we expect that elevated unemployment and ongoing pressure on vacancy and rental rates will continue to affect primarily the non-homebuilder portfolio.
Compared to December 31, 2009, nonper forming commercial real estate loans and foreclosed properties decreased in the homebuilder, retail and land development property types, partially offset by an increase in office and multi-use property types.
Reservable criticized balances declined by $3.3 billion primarily due to stabilization in the homebuilder portfolio and retail and unsecured segments in the non-homebuilder portfolio, partially offset by continued deterioration in the multi-family rental and office property types within the non-homebuilder portfolio.
Net charge-offs decreased $685 million in 2010 compared to 2009 due to declines in the homebuilder portfolio resulting from a slower rate of declining appraisal values.


| 2007 2006 2005 2004 2003 | December 31Dollars in millions | Commercial | Commercial real estate | Consumer | Residential mortgage | Lease financing | Other | Total |


Retirement Benefits Pension Benefit Plans The Company’s noncontributory pension plan (the ‘‘Regular Pension Plan’’) covers U. S.  employees who became eligible after one year of service.
The benefit formula is dependent upon employee earnings and years of service.
Effective January 1, 2005, newly-hired employees were not eligible to participate in the Regular Pension Plan.
The Company also provides defined benefit plans which cover non-U.
S.  employees in certain jurisdictions, principally the United Kingdom, Germany, Ireland, Japan and Korea (the ‘‘Non-U.
S.  Plans’’).
Other pension plans are not material to the Company either individually or in the aggregate.
The Company has a noncontributory supplemental retirement benefit plan (the ‘‘Officers’ Plan’’) for its officers elected prior to December 31, 1999.
The Officers’ Plan contains provisions for vesting and funding the participants’ expected retirement benefits when the participants meet the minimum age and years of service requirements.
Elected officers who were not yet vested in the Officers’ Plan as of December 31, 1999 had the option to remain in the Officers’ Plan or elect to have their benefit bought out in restricted stock units.
Effective December 31, 1999, newly elected officers are not eligible to participate in the Officers’ Plan.
Effective June 30, 2005, salaries were frozen for this plan.
The Company has an additional noncontributory supplemental retirement benefit plan, the Motorola Supplemental Pension Plan (‘‘MSPP’’), which provides supplemental benefits to individuals by replacing the Regular Pension Plan benefits that are lost by such individuals under the retirement formula due to application of the limitations imposed by the Internal Revenue Code.
However, elected officers who are covered under the Officers’ Plan or who participated in the restricted stock buy-out are not eligible to participate in MSPP.
Effective January 1, 2007, eligible compensation was capped at the IRS limit plus $175,000 (the ‘‘Cap’’) or, for those


| Residential Mortgage - Agency Commercial Mortgage | (Dollars in millions) | Cash proceeds from new securitizations-1 | Gains on securitizations-2 | Repurchases from securitization trusts-3 |


| (In thousands) 2016 % ofRevenue 2015 % ofRevenue % Change | Revenues | System sales | Support and maintenance | Services | Reimbursed travel | Total revenues | Costs of revenue | Costs of revenue | Total margin | Operating expenses | Sales and client service | Software development | General and administrative | Amortization of acquisition-related intangibles | Total operating expenses | Total costs and expenses | Operating earnings | Other income, net | Income taxes | Net earnings |


| At December 31, 2014 At December 31, 2013 | Fair Value | (dollars in millions) | Private equity funds | Real estate funds | Hedge funds-1: | Long-short equity hedge funds | Fixed income/credit-related hedge funds | Event-driven hedge funds | Multi-strategy hedge funds | Total |


Table of Contents as of September 28, 2013.
The Companys share repurchase program does not obligate it to acquire any specific number of shares.
Under the program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the Exchange Act).
In August 2012, the Company entered into an accelerated share repurchase arrangement (ASR) with a financial institution to purchase up to $1.95 billion of the Companys common stock in 2013.
In the first quarter of 2013, 2.6 million shares were initially delivered to the Company.
In April 2013, the purchase period for the ASR ended and an additional 1.5 million shares were delivered to the Company.
In total, 4.1 million shares were delivered under the ASR at an average repurchase price of $478.20 per share.
The shares were retired in the quarters they were delivered, and the up-front payment of $1.95 billion was accounted for as a reduction to shareholders equity in the Companys Consolidated Balance Sheet in the first quarter of 2013.
In April 2013, the Company entered into a new ASR program with two financial institutions to purchase up to $12 billion of the Companys common stock.
In exchange for up-front payments totaling $12 billion, the financial institutions committed to deliver shares during the ASRs purchase periods, which will end during 2014.
The total number of shares ultimately delivered, and therefore the average price paid per share, will be determined at the end of the applicable purchase period based on the volume weighted average price of the Companys stock during that period.
During the third quarter of 2013, 23.5 million shares were initially delivered to the Company and retired.
This does not represent the final number of shares to be delivered under the ASR.
The up-front payments of $12 billion were accounted for as a reduction to shareholders equity in the Companys Consolidated Balance Sheet.
The Company reflected the ASRs as a repurchase of common stock for purposes of calculating earnings per share and as forward contracts indexed to its own common stock.
The forward contracts met all of the applicable criteria for equity classification, and, therefore, were not accounted for as derivative instruments.
During 2013, the Company repurchased 19.4 million shares of its common stock in the open market at an average price of $464.11 per share for a total of $9.0 billion.
These shares were retired upon repurchase.


| December 31, | 2009 | (in millions) | 8.2% notes payable, due 2009 | 3.31% notes payable, due 2011 | 3.63% notes payable, due 2011 | 7.875% notes payable, due 2014 | 8.875% notes payable, due 2019 | 6.05% notes payable, due 2036 | 8% surplus notes payable, due 2044 | Non-recourse mortgages and notes payable | Other mortgages and notes payable | Total long-term debt | December 31, 2008 | 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 maturity securities, available-for-sale | 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 maturity securities, available-for-sale | December 31, 2008 | 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 maturity securities, available-for-sale |


| (Dollars in millions) 2010 2009 | Net interest income-1 | As reported-2 | Impact of market-based net interest income-3 | Core net interest income | Impact of securitizations-4 | Core net interest income | Average earning assets | As reported | Impact of market-based earning assets-3 | Core average earning assets | Impact of securitizations-5 | Core average earning assets | Net interest yield contribution-1 | As reported-2 | Impact of market-based activities-3 | Core net interest yield on earning assets | Impact of securitizations | Core net interest yield on earning assets |


| 2017 2016 2015 | Net Income | Non-cash operating activities-1 | Pension and postretirement plan contributions (UPS-sponsored plans) | Hedge margin receivables and payables | Income tax receivables and payables | Changes in working capital and other non-current assets and liabilities | Other operating activities | Net cash from operating activities |


| Successor Predecessor | YearEndedDecember 31,2005 | (in $millions) | Accelerated amortization of deferredfinancing costs on early redemption and prepayment ofdebt | Premiumpaid on early redemption ofdebt | Otherinterestexpense | Totalinterestexpense |


| 2018 2017 2016 | Ameren Missouri | Ameren Illinois Electric Distribution | Ameren Illinois Natural Gas | Ameren Illinois Transmission | ATXI | Other(a) | Ameren |


| 2015 2014 2013 | Balance January 1 | Additions related to current year positions | Additions related to prior year positions | Reductions for tax positions of prior years-1 | Settlements-1 | Lapse of statute of limitations | Balance December 31 |


| Year Ended December 31, 2014 Year Ended December 31, 2013 | As Reported | Cost of products sold, excluding intangible asset amortization | Research and development | Selling, general and administrative | Special items | Operating expenses | Earnings before income taxes | Provision for income taxes | Net earnings | Net Earnings of Zimmer Holdings, Inc. | Earnings Per Common Share - Basic | Earnings Per Common Share - Diluted | Foreign currency cumulative translation adjustments | Total Other Comprehensive Income (Loss) | Comprehensive Income | Comprehensive Income Attributable to Zimmer Holdings, Inc. |


| Year Ended December 31, 2007 | Financial Services Businesses | Yield-1 | ($ in millions) | Fixed maturities | Trading account assets supporting insurance liabilities | Equity securities | Commercial 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 | Year Ended December 31, 2006 | Financial Services Businesses | Yield-1 | ($ in millions) | Fixed maturities | Trading account assets supporting insurance liabilities | Equity securities | Commercial 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 |


| As of | (dollars in millions) | Balance Sheet Data: | Total assets | Loans and leases-18 | Allowance for loan and lease losses | Total securities | Goodwill | Total liabilities | Deposits | Federal funds purchased and securities sold under agreements to repurchase | Other short-term borrowed funds | Long-term borrowed funds | Total stockholders’ equity | Other Balance Sheet Data: | Asset Quality Ratios: | Allowance for loan and lease losses as a percentage of total loans and leases | Allowance for loan and lease losses as a percentage of nonperforming loans and leases | Nonperforming loans and leases as a percentage of total loans and leases | Capital ratios:-19 | CET1 capital ratio-20 | Tier 1 capital ratio-21 | Total capital ratio-22 | Tier 1 leverage ratio-23 |


| Millions 2013 2012 2011 % Change 2013 v 2012 % Change 2012 v 2011 | Freight revenues | Other revenues | Total |


| Current assets $28.1 | Property and equipment, net | Goodwill | IPR&D | Current liabilities assumed | Deferred income taxes | Contingent consideration | Total cash purchase price | Less: cash acquired | Total cash purchase price, net of cash acquired | Three Months Ended | Mar 31,  2009 | (In thousands) | Revenues | Commissions | U.S. high-grade -1 | Eurobond -2 | Other -3 | Total commissions | Technology products andservices -4 | Information and user accessfees -5 | Interest income -6 | Other -7 | Total revenues | Expenses | Employee compensation andbenefits | Depreciation and amortization | Technology and communications | Professional and consulting fees | Occupancy | Marketing and advertising | General and administrative | Total expenses | Income before income taxes | Provision for income taxes | Net income |


Rent expense and certain office equipment expense under lease agreements amounted to $134 million, $136 million and $132 million in 2016, 2015 and 2014, respectively.
Investment Commitments.
At December 31, 2016, the Company had $192 million of various capital commitments to fund sponsored investment funds, including consolidated VIEs.
These funds include private equity funds, real assets funds, and opportunistic funds.
This amount excludes additional commitments made by consolidated funds of funds to underlying third-party funds as third-party noncontrolling interest holders have the legal obligation to fund the respective commitments of such funds of funds.
In addition to the capital commitments of $192 million, the Company had approximately $12 million of contingent commitments for certain funds which have investment periods that have expired.
Generally, the timing of the funding of these commitments is unknown and the commitments are callable on demand at any time prior to the expiration of the commitment.
These unfunded commitments are not recorded on the consolidated statements of financial condition.
These commitments do not include potential future commitments approved by the Company that are not yet legally binding.
The Company intends to make additional capital commitments from time to time to fund additional investment products for, and with, its clients.
Contingencies Contingent Payments Related to Business Acquisitions.
In connection with certain acquisitions, BlackRock is required to make contingent payments, subject to achieving specified performance targets, which may include revenue related to acquired contracts or new capital commitments for certain products.
The fair value of the remaining aggregate contingent payments at December 31, 2016 totaled $115 million and is included in other liabilities on the consolidated statement of financial condition.
Other Contingent Payments.
The Company acts as the portfolio manager in a series of derivative transactions and has a maximum potential exposure of $17 million between the Company and counterparty.
See Note 7, Derivatives and Hedging, for further discussion.
Legal Proceedings.
From time to time, BlackRock receives subpoenas or other requests for information from various U. S.  federal, state governmental and domestic and international regulatory authorities in connection with


| Pension Benefits Retiree Medical and OtherPostretirement Benefits | 2015 | Defined benefit plans: | Service cost | Interest cost | Expected return on assets | Curtailments | Settlements | Amortization of: | Prior service cost (benefit) (1) | Unrecognized net loss (gain) | Net periodic benefit cost (income) for defined benefit plans | Defined contribution plans | $691 |


| (Dollars per gallon) 2009 2008 | Chicago Spot Unleaded regular gasoline | Chicago Spot Ultra-low sulfur diesel | U.S. Gulf Coast Spot Unleaded regular gasoline | U.S. Gulf Coast Spot Ultra-low sulfur diesel |


* 100% or greater.
(1) Includes $49 million, $279 million and $200 million of IPR&D impairment charges in 2014, 2013 and 2012, respectively.
Materials and Production Materials and production costs were $16.8 billion in 2014, $17.0 billion in 2013 and $16.4 billion in 2012.
Costs include expenses for the amortization of intangible assets recorded in connection with mergers and acquisitions which totaled $4.2 billion in 2014, $4.7 billion in 2013 and $4.9 billion in 2012.
Costs in 2014 and 2013 include intangible asset impairment charges of $1.1 billion and $486 million, respectively, related to marketed products (see Note 7 to the consolidated financial statements).
The Company may recognize additional non-cash impairment charges in the future related to product intangibles that were measured at fair value and capitalized in connection with mergers and acquisitions and such charges could be material.
Additionally, costs in 2013 include a $41 million intangible asset impairment charge related to a licensing agreement.
Also included in materials and production were costs associated with restructuring activities which amounted to $482 million, $446 million and $188 million in 2014, 2013 and 2012, respectively, including accelerated depreciation and asset write-offs related to the planned sale or closure of manufacturing facilities.
Separation costs associated with manufacturing-related headcount reductions have been incurred and are reflected in Restructuring costs as discussed below.
Gross margin was 60.3% in 2014 compared with 61.5% in 2013 and 65.2% in 2012.
The amortization of intangible assets, as well as the restructuring and impairment charges noted above reduced gross margin by 13.6 percentage points in 2014, 12.8 percentage points in 2013 and 10.7 percentage points in 2012.
Excluding these impacts, the gross margin decline in 2014 as compared with 2013 was driven primarily by the unfavorable effects of inventory write-offs largely related to Victrelis, as well as by changes in product mix, partially offset by the sale of the U. S.  marketing rights to Saphris.
The gross margin decline in 2013 as compared with 2012 was driven in part by the loss of Singulair sales as result of patent expiries in the United States in August 2012 and in major European markets in February 2013.
In addition, generic competition in the United States coupled with changes in product mix and continued pricing pressures in mature markets also negatively affected gross margin in 2013 as compared with 2012.
Marketing and Administrative Marketing and administrative expenses declined 3% in 2014 to $11.6 billion driven primarily by lower selling costs and promotional spending, the divestiture of MCC and the favorable effect of foreign exchange, partially offset by an additional year of expense related to the health care reform fee as discussed below, as well as higher acquisition and divestiture-related costs.
Marketing and administrative expenses decreased 7% in 2013 to $11.9 billion largely due to lower promotional spending and selling costs resulting from restructuring activities, and also reflecting the favorable effect of foreign exchange.
Expenses for 2014, 2013 and 2012 include restructuring costs of $200 million, $145 million and $90 million, respectively, related primarily to accelerated depreciation for facilities to be closed or


| December 31, 2014 December 31, 2013 | Amount | U.S. dollar notes due 2015–2093 | U.S. dollar debentures due 2017–2098 | U.S. dollar zero coupon notes due 20202 | Euro notes due 2022 and 20263 | Other, due through 20984 | Fair value adjustment5 | Total6,7 | Less current portion | Long-term debt |


| December 31, 2012 Fair Values of Derivatives (a) December 31, 2011 Fair Values of Derivatives (a) | Assets | (Thousands of dollars) | Derivatives designated as hedging instruments | Commodity contracts | Financial contracts | Physical contracts | Interest-rate contracts | Total derivatives designated as hedging instruments | Derivatives not designated as hedging instruments | Commodity contracts | Nontrading instruments | Financial contracts | Physical contracts | Trading instruments | Financial contracts | Total derivatives not designated as hedging instruments | Total derivatives |


| Increase (decrease) in pretax earnings givenan interest rate decrease of X basis points Increase (decrease) in pretax earnings givenan interest rate increase of X basis points | -300 | (in thousands) | As of December 31, 2008 | Investment income | Interest expense | Pretax | As of December 31, 2007 | Investment income | Interest expense | Pretax |


| 2016 2015 2014 | Asset impairments | Layoff costs | Net loss on divestitures of businesses | Other | Reversals of previously recorded layoff costs | Restructuring and other charges |


| Year Ended December 31, | 2017 | Operating Data: | Rental income | Property operating income-1 | Operating income | Income from continuing operations | Gain on sale of real estate and change in control of interests, net | Net income | Net income available for common shareholders | Net cash provided by operating activities | Net cash used in investing activities | Net cash provided by (used in) financing activities | Earnings per common share, basic: | Net income available to common shareholders | Weighted average number of common shares, basic | Earnings per common share, diluted: | Net income available to common shareholders | Weighted average number of common shares, diluted | Dividends declared per common share | Other Data: | Funds from operations available to common shareholders-2 | EBITDA-3 | Adjusted EBITDA-3 | Ratio of EBITDA to combined fixed charges and preferred share dividends-3(4) | Ratio of Adjusted EBITDA to combined fixed charges and preferred share dividends-3(4) |


| Total interest-bearing liabilities 163,784 139,321 156,029 0.37 0.34 0.43 | Net interest income | Net interest rate spread | Impact of noninterest-bearing funds on margin | Net interest margin |


Cost of Revenue Cost of revenue includes infrastructure costs, other direct costs, amortization of acquired intangible assets and capitalized labor costs, allocated facilities costs, as well as traffic acquisition costs (“TAC”).
Infrastructure costs which consist primarily of data center costs related to our co-located facilities, which include lease and hosting costs, related support and maintenance costs and energy and bandwidth costs, as well as depreciation of our servers and networking equipment, and personnel-related costs, including salaries, benefits and stock-based compensation, for our operations teams.
TAC consists of costs we incur with third parties in connection with the sale to advertisers of our advertising products that we place on third-party publishers’ websites, applications or other offerings collectively resulting from acquisitions, and from our organically-built advertising network, Twitter Audience Platform.
Many of the elements of our cost of revenue are relatively fixed, and cannot be reduced in the near term to offset any decline in our revenue.


| At December 31, 2009 Cross-border Total  exposure | (in billions) | South Korea | India | Brazil | China | Taiwan | Hong Kong | Mexico | Chile | Malaysia | South Africa | At December 31, 2008 | (in billions) | South Korea | India | China | Brazil | Taiwan | Hong Kong | United Arab Emirates | Mexico | South Africa | Russia |


MARKET RISK MANAGEMENT  CUSTOMER-RELATED TRADING RISK We engage in fixed income securities, derivatives and foreign exchange transactions to support our customers investing and hedging activities.
These transactions, related hedges and the credit valuation adjustment (CVA) related to our customer derivatives portfolio are marked-to-market on a daily basis and reported as customer-related trading activities.
We do not engage in proprietary trading of these products.
We use value-at-risk (VaR) as the primary means to measure and monitor market risk in customer-related trading activities.
We calculate a diversified VaR at a 95% confidence interval.
VaR is used to estimate the probability of portfolio losses based on the statistical analysis of historical market risk factors.
A diversified VaR reflects empirical correlations across different asset classes.
During 2013, our 95% VaR ranged between $1.7 million and $5.5 million, averaging $3.5 million.
During 2012, our 95% VaR ranged between $1.1 million and $5.3 million, averaging $3.2 million.
To help ensure the integrity of the models used to calculate VaR for each portfolio and enterprise-wide, we use a process known as backtesting.
The backtesting process consists of comparing actual observations of gains or losses against the VaR levels that were calculated at the close of the prior day.
This assumes that market exposures remain constant throughout the day and that recent historical market variability is a good predictor of future variability.
Our customer-related trading activity includes customer revenue and intraday hedging which helps to reduce losses, and may reduce the number of instances of actual losses exceeding the prior day VaR measure.
There was one such instance during 2013 under our diversified VaR measure where actual losses exceeded the prior day VaR measure.
In comparison, there were two such instances during 2012.
We use a 500 day look back period for backtesting and include customer-related revenue.
The following graph shows a comparison of enterprise-wide gains and losses against prior day diversified VaR for the period indicated.
Table 53: Enterprise-Wide Gains/Losses Versus Value-atRisk
Total customer-related trading revenue was as follows: Table 54: Customer-Related Trading Revenue
(a) Includes changes in fair value for certain loans accounted for at fair value.
Customer-related trading revenues for 2013 increased $7 million compared with 2012.
The increase primarily resulted from the impact of higher market interest rates on credit valuations for customer-related derivatives activities and improved debt underwriting results which were partially offset by reduced client sales revenue.


Supplementary Leverage Ratio The Revised Capital Framework introduces a new supplementary leverage ratio for Advanced approach banking organizations.
Under amendments to the Revised Capital Framework, the U. S.  federal bank regulatory agencies approved a final rule that implements the supplementary leverage ratio aligned with the definition of leverage established by the Basel Committee.
The supplementary leverage ratio compares Tier 1 capital to a measure of leverage exposure, defined as the sum of our quarterly average assets less certain deductions plus certain off-balance-sheet exposures, including a measure of derivatives exposures and commitments.
The Revised Capital Framework requires a minimum supplementary leverage ratio of 5.0% (comprised of the minimum requirement of 3.0% and a 2.0% buffer) for U. S.  banks deemed to be G-SIBs, effective on January 1, 2018.
Certain disclosures regarding the supplementary leverage ratio are required beginning in the first quarter of 2015.
As of December 2014, our estimated supplementary leverage ratio was 5.0%, including Tier 1 capital on a fully phased-in basis of $73.17 billion (CET1 of $64.26 billion plus perpetual non-cumulative preferred stock of $9.20 billion less other adjustments of $290 million) divided by total leverage exposure of $1.45 trillion (total quarterly average assets of $873 billion plus adjustments of $579 billion, primarily comprised of off-balance-sheet exposure related to derivatives and commitments).
We believe that the estimated supplementary leverage ratio is meaningful because it is a measure that we, our regulators and investors use to assess our ability to meet future regulatory capital requirements.
The supplementary leverage ratio is a non-GAAP measure and may not be comparable to similar non-GAAP measures used by other companies.
This estimated supplementary leverage ratio is based on our current interpretation and understanding of the U. S.  federal bank regulatory agencies final rule and may evolve as we discuss its interpretation and application with our regulators.


| Scenario 1 Scenario 2 Scenario 3 Scenario 4 Scenario 5 Scenario 6 | Overnight rate change (bps) | 10-year rate change (bps) | Impact to net interest revenue(in millions of dollars) | December 31, 2010 | In millions of dollars | U.S. dollar | Instantaneous change | Gradual change | Mexican peso | Instantaneous change | Gradual change | Euro | Instantaneous change | Gradual change | Japanese yen | Instantaneous change | Gradual change | Pound sterling | Instantaneous change | Gradual change | For the Years Ended December 31, | 2008 | (In millions, except percentages) | Gross assessments | Rebates and incentives | Net assessments |


The Companies do not expect the total amounts of uncertain tax positions or unrecognized tax benefits to significantly increase or decrease within the next 12 months.


Long-term Borrowings.
The carrying value of long-term borrowings at December 31, 2014 included the following:


| Minimum Basel III Regulatory Capital Levels | January 1,2016 | Common equity tier 1 risk-based capital ratio | Tier 1 risk-based capital ratio | Total risk-based capital ratio |


Year Ended December 31, 2013 Compared to the Year Ended December 31, 2012 Net Loss Segment net loss increased $45,183 or 82%, to $100,241 for Twelve Months 2013 compared with a net loss of $55,058 for Twelve Months 2012.
The increase is primarily related to a $19,388 (after-tax) decrease in net realized gains on investments, increased employee-related and business acquisition-related expenses and additional expenses in areas targeted for growth.
In addition, interest expense increased $11,329 (after-tax) due to the March 2013 issuance of senior notes with an aggregate principal amount of $700,000.
Total Revenues Total revenues decreased $34,713 or 33%, to $72,093 for Twelve Months 2013 compared with $106,806 for Twelve Months 2012.
The decrease in revenues is mainly due to decreased net realized gains on investments.
Total Benefi ts, Losses and Expenses Total benefi ts, losses and expenses increased $50,405 or 30%, to $221,073 in Twelve Months 2013 compared with $170,668 in Twelve Months 2012.
The increase is primarily due to increased employee-related and business acquisition-related expenses, additional expenses in areas targeted for growth and increased interest expense related to the March 2013 debt issuance mentioned above.
In addition, policyholders benefi ts increased $5,949 attributable to increased claims payable accruals associated with discontinued businesses.
Investments The Company had total investments of $14,131,452 and $14,244,015 as of December 31, 2014 and December 31, 2013, respectively.
For more information on our investments see Note 5 to the Consolidated Financial Statements included elsewhere in this report.
The following table shows the credit quality of our fi xed maturity securities portfolio as of the dates indicated:


| Estimated % Change inNet Interest Income over 12 Months December 31, | Basis points | Instantaneous Change in Interest Rates | +200 | +100 | -100 | -200 | Gradual Change in Interest Rates | +200 | +100 | -100 | -200 |


| Entergy Arkansas Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy | (In Thousands) | 2016: | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | 2015: | First Quarter | Second Quarter | Third Quarter | Fourth Quarter |


Commercial aircraft financing commitments include commitments to provide financing related to aircraft on order, under option for deliveries or proposed as part of sales campaigns or refinancing with respect to delivered aircraft, based on estimated earliest potential funding dates.
Based on historical experience, we anticipate that we will not be required to fund a significant portion of our financing commitments.
However, there can be no assurances that we will not be required to fund greater amounts than historically required, particularly if the Export-Import Bank of the United States continues to be unable to, or does not, provide new financing support.
See Note 11 to our Consolidated Financial Statements.


| Year ended December 31, | 2016 | (in millions) | Operating results: | Revenues | Benefits and expenses | Adjusted operating income | Realized investment gains (losses), net, and related adjustments | Related charges | Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures |


| Balance at December 31, 2011 $4,045 | Increase based on tax positions related to the current period | Increase based on tax positions related to prior periods | Decreases based on tax positions related to prior periods | Decreases related to settlements with taxing authorities | Decreases related to a lapse of applicable statute of limitations | Balance at December 31, 2012 | Increase based on tax positions related to the current period | Increase based on tax positions related to prior periods | Decreases based on tax positions related to prior periods | Decreases related to settlements with taxing authorities | Balance at December 31, 2013 | Increase based on tax positions related to the current period | Increase based on tax positions related to prior periods | Decreases based on tax positions related to prior periods | Decreases related to settlements with taxing authorities | Decreases related to a lapse of applicable statute of limitations | Balance at December 31, 2014 |


| Weighted Average Useful Life (years) | Purchased technology | Localization | Trademarks | Customer contracts and relationships | Other intangibles |


| Total Loans Nonaccrual and 90 days or more past due Net loan charge-offs(a)Year ended | December 31, (in millions) | Home finance | Auto & education finance | Consumer & small business and other | Credit card receivables | Total consumer loans | Total wholesale loans | Total loans reported | Securitized loans: | Residential mortgage(b) | Automobile | Credit card | Total consumer loans securitized | Securitized wholesale activities | Total loans securitized(c) | Total loans reported and securitized(d) |


THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements Commercial Lending.
The firms commercial lending commitments are extended to investment-grade and noninvestment-grade corporate borrowers.
Commitments to investment-grade corporate borrowers are principally used for operating liquidity and general corporate purposes.
The firm also extends lending commitments in connection with contingent acquisition financing and other types of corporate lending as well as commercial real estate financing.
Commitments that are extended for contingent acquisition financing are often intended to be short-term in nature, as borrowers often seek to replace them with other funding sources.
Sumitomo Mitsui Financial Group, Inc.  (SMFG) provides the firm with credit loss protection on certain approved loan commitments (primarily investment-grade commercial lending commitments).
The notional amount of such loan commitments was $27.03 billion and $27.51 billion as of December 2015 and December 2014, respectively.
The credit loss protection on loan commitments provided by SMFG is generally limited to 95% of the first loss the firm realizes on such commitments, up to a maximum of approximately $950 million.
In addition, subject to the satisfaction of certain conditions, upon the firms request, SMFG will provide protection for 70% of additional losses on such commitments, up to a maximum of $1.13 billion, of which $768 million of protection had been provided as of both December 2015 and December 2014.
The firm also uses other financial instruments to mitigate credit risks related to certain commitments not covered by SMFG.
These instruments primarily include credit default swaps that reference the same or similar underlying instrument or entity, or credit default swaps that reference a market index.
Warehouse Financing.
The firm provides financing to clients who warehouse financial assets.
These arrangements are secured by the warehoused assets, primarily consisting of consumer and corporate loans.
Contingent and Forward Starting Resale and Securities Borrowing Agreements/Forward Starting Repurchase and Secured Lending Agreements The firm enters into resale and securities borrowing agreements and repurchase and secured lending agreements that settle at a future date, generally within three business days.
The firm also enters into commitments to provide contingent financing to its clients and counterparties through resale agreements.
The firms funding of these commitments depends on the satisfaction of all contractual conditions to the resale agreement and these commitments can expire unused.
Letters of Credit The firm has commitments under letters of credit issued by various banks which the firm provides to counterparties in lieu of securities or cash to satisfy various collateral and margin deposit requirements.
Investment Commitments The firms investment commitments of $6.05 billion and $5.16 billion as of December 2015 and December 2014, respectively, include commitments to invest in private equity, real estate and other assets directly and through funds that the firm raises and manages.
Of these amounts, $2.86 billion and $2.87 billion as of December 2015 and December 2014, respectively, relate to commitments to invest in funds managed by the firm.
If these commitments are called, they would be funded at market value on the date of investment.
Leases The firm has contractual obligations under long-term noncancelable lease agreements for office space expiring on various dates through 2069.
Certain agreements are subject to periodic escalation provisions for increases in real estate taxes and other charges.
The table below presents future minimum rental payments, net of minimum sublease rentals.


| 2014 2013 2012 | Net sales | Operating profit | Operating margins | Backlog at year-end |


The Company also has the following key U. S.  patent protection for drug candidates in Phase 3 development:
Unless otherwise noted, the patents in the above charts are compound patents.
Each patent is subject to any future patent term restoration of up to five years and six month pediatric market exclusivity, either or both of which may be available.
In addition, depending on the circumstances surrounding any final regulatory approval of the compound, there may be other listed patents or patent applications pending that could have relevance to the product as finally approved; the relevance of any such application would depend upon the claims that ultimately may be granted and the nature of the final regulatory approval of the product.
Also, regulatory exclusivity tied to the protection of clinical data is complementary to patent protection and, in some cases, may provide more effective or longer lasting marketing exclusivity than a compound’s patent estate.
In the United States, the data protection generally runs five years from first marketing approval of a new chemical entity, extended to seven years for an orphan drug indication and 12 years from first marketing approval of a biological product.
For further information with respect to the Company’s patents, see Item 1A.
“Risk Factors” and Item 8.
“Financial Statements and Supplementary Data,” Note 10.
“Contingencies and Environmental Liabilities” below.
Worldwide, all of the Company’s important products are sold under trademarks that are considered in the aggregate to be of material importance.
Trademark protection continues in some countries as long as used; in other countries, as long as registered.
Registration is for fixed terms and can be renewed indefinitely.
Royalty income in 2014 on patent and know-how licenses and other rights amounted to $274 million.
Merck also incurred royalty expenses amounting to $1.1 billion in 2014 under patent and know-how licenses it holds.
Research and Development The Company’s business is characterized by the introduction of new products or new uses for existing products through a strong research and development program.
Approximately 11,400 people are employed in the Company’s research activities.
Research and development expenses were $7.2 billion in 2014, $7.5 billion in 2013 and $8.2 billion in 2012 (which included restructuring costs and acquisition-related costs in all years).
The Company