The following table details the estimated liability with respect to our contingent acquisition obligations and the estimated amount that would be paid under the options, in the event of exercise at the earliest exercise date.
All payments are contingent upon achieving projected operating performance targets and satisfying other
Noncontrolling interests represent the impact of consolidating certain low-income housing tax credit funds and impact Other Revenue, Interest Expense, and Other Expenses in this segment (See Note 9 of the Notes to Consolidated Financial Statements for further details).
Year ended September 30, 2009 Compared with the Year ended September 30, 2008  Capital Markets Capital Markets net revenues increased 10% compared to the prior year due to record trading profits, which increased $45 million from the prior years $3.5 million loss.
These profits were almost entirely generated on domestic fixed income products, 76% on municipal and 37% on taxable products.
In addition, fixed income institutional sales commissions were 61% higher, as the volatile fixed income markets led many institutions to seek expertise on mortgage-backed products, and many increased their overall weighting in fixed income products.
At the same time, institutions decreased their weighting in equities and equity institutional sales commissions declined 14%.
This decline was magnified by a lack of new issue activity.
The steep equity market decline early in the year led to lower investment banking fee revenue.
Equity underwriting fees were $5.3 million and $10.4 million below the prior year in the U. S.  and Canada, respectively.
This was attributable to the lack of underwritings due to the declining equity markets during the first two quarters.
Capital markets activity increased during the third quarter, with 82% of our deals occurring in the last two quarters of the fiscal year, actually generating nine more deals than in the prior year.
However, the deals were smaller and we were generally allotted a smaller portion of the deals than in the prior year, resulting in lower revenues.
Merger and acquisition fees, which are included in investment banking revenue, were $40.6 million, up 6% from the prior year.
Gross revenues were up 5% from the prior year and net revenues were up 10%.
Coupled with a 5% increase in noninterest expense, pre-tax earnings were up 68% from the prior year as the impact of increased trading profits is significant to our pre-tax profits.
Commission expense increased with a greater percentage (17%) than commission revenues (10%) due to the big increase in fixed income institutional sales commissions which have a higher payout than equity institutional sales commissions.
The other compensation expenses, communications and information processing and business development expenses decreased slightly as a result of expense control.
Occupancy expense increased 7% due to growth.
We have taken advantage of the opportunities to add quality Capital Markets teams.
Equity Capital Markets acquired the investment banking firm of Lane Berry International, Inc.
The acquisition added 21 investment banking professionals and new offices in Boston and Denver.
In total, Investment Banking added a net 26 professionals as compared to the prior year.
Fixed Income has taken advantage of market conditions in the taxable fixed income institutional sales area to recruit 23 additional professionals, representing a 21% increase in its producing professionals.


| As of December 2017 | $ in millions | Loans Receivable | Corporate loans | Loans to PWM clients | Loans backed by: | Commercial real estate | Residential real estate | Marcus loans | Other loans | Total | Lending Commitments | Corporate | Other | Total | As of December 2016 | $ in millions | Loans Receivable | Corporate loans | Loans to PWM clients | Loans backed by: | Commercial real estate | Residential real estate | Marcus loans | Other loans | Total | Lending Commitments | Corporate | Other | Total |


| Effect on U.S. and Canadian Plans: Increase/(Decrease) | Assumption | Discount rate | Health care cost trend rates — total expense | Health care cost trend rates — service and interest expense | Increase/(Decrease) | Assumption | Repossession rates * | Loss severity |


value of our liquid assets, as defined, totaled $75.98 billion, compared to $85.81 billion as of December 31, 2008.
The decrease was mainly attributable to unusually high 2008 deposit balances, as we experienced a significant increase in customer deposits during the second half of 2008 as the credit markets worsened.
As customers accumulated liquidity, they placed cash with us, and these incremental customer deposits remained with State Street Bank at December 31, 2008.
During 2009, as markets normalized, deposit levels moderated as customers returned to investing their cash, and our liquid asset levels declined accordingly.
Due to the unusual size and volatile nature of these customer deposits, we maintained approximately $22.45 billion at central banks as of December 31, 2009, in excess of regulatory required minimums.
Securities carried at $40.96 billion as of December 31, 2009, compared to $42.74 billion as of December 31, 2008, were designated as pledged for public and trust deposits, borrowed funds and for other purposes as provided by law, and are excluded from the liquid assets calculation, unless pledged to the Federal Reserve Bank of Boston.
Liquid assets included securities pledged to the Federal Reserve Bank of Boston to secure State Street Banks ability to borrow from their discount window should the need arise.
This access to primary credit is an important source of back-up liquidity for State Street Bank.
As of December 31, 2009, we had no outstanding primary credit borrowings from the discount window.
Based upon our level of liquid assets and our ability to access the capital markets for additional funding when necessary, including our ability to issue debt and equity securities under our current universal shelf registration, management considers overall liquidity at December 31, 2009 to be sufficient to meet State Streets current commitments and business needs, including supporting the liquidity of the commercial paper conduits and accommodating the transaction and cash management needs of our customers.
As referenced above, our ability to maintain consistent access to liquidity is fostered by the maintenance of high investment-grade ratings on our debt, as measured by the major independent credit rating agencies.
Factors essential to retaining high credit ratings include diverse and stable core earnings; strong risk management; strong capital ratios; diverse liquidity sources, including the global capital markets and customer deposits; and strong liquidity monitoring procedures.
High ratings on debt minimize borrowing costs and enhance our liquidity by ensuring the largest possible market for our debt.
A downgrade or reduction of these credit ratings could have an adverse impact to our ability to access funding at favorable interest rates.
The following table presents information about State Streets and State Street Banks credit ratings as of February 22, 2010.


| Location Approximate Square Footage | Alpharetta, Georgia | Jersey City, New Jersey | Arlington, Virginia | Menlo Park, California | Sandy, Utah | New York, New York | Chicago, Illinois |


Copyright?2019 Standard & Poor's, a division of S&P Global.
All rights reserved
MetLife, Inc.  Notes to the Consolidated Financial Statements  (Continued) Commitments Leases In accordance with industry practice, certain of the Companys income from lease agreements with retail tenants are contingent upon the level of the tenants revenues.
Additionally, the Company, as lessee, has entered into various lease and sublease agreements for office space, information technology and other equipment.
Future minimum rental and sublease income, and minimum gross rental payments relating to these lease agreements are as follows:


Part II Item 5.
Market for the Registrant’s Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities Simon Market Information Simon’s common stock trades on the New York Stock Exchange under the symbol “SPG”.
The quarterly price range for the shares and the dividends declared per share for each quarter in the last two fiscal years are shown below:


Contract generation gross margin increased $60 million, or 8%, to $827 million in 2001 from $767 million in 2000.
Excluding businesses acquired or that commenced commercial operations during 2001 and 2000, contract generation gross margin decreased 6% to $710 million in 2001.
Contract generation gross margin increased in all geographic regions except for Asia.
The contract generation gross margin as a percentage of revenues decreased to 33% in 2001 from 44% in 2000.
In South America, contract generation gross margin increased $17 million and was 27% of revenues.
The increase is due to the acquisition of Gener offset by a decline at Tiete from the rationing of electricity in Brazil.
In North America, contract generation gross margin increased $8 million and was 50% of revenues.
The increase is due to improvements at Southland and Beaver Valley partially offset by a decrease at Thames from the contract buydown (see footnote 13 to the Companys consolidated financial statements).
In Europe/ Africa, contract generation gross margin increased $44 million and was 30% of revenues.
The increase is due primarily to our additional ownership interest in Kilroot and the acquisition of Ebute in Nigeria.
In Asia, contract generation gross margin decreased $22 million and was 29% of revenues.
The decrease is due mainly to additional bad debt provisions at Jiaozuo, Hefei and Aixi in China that were partially offset by the start of commercial operations at Haripur.
The decrease in contract generation gross margin as a percentage of revenue is due to the acquisition of generation businesses with overall gross margin percentages, which are lower than the overall portfolio of generation businesses.
As a percentage of sales, contract generation gross margin declined in South America and Asia, was relatively flat in North America and increased in Europe/Africa and the Caribbean.
The competitive supply gross margin decreased $119 million, or 21%, to $440 million in 2001 from $559 million in 2000.
Excluding businesses acquired or that commenced commercial operations during 2001 and 2000, competitive supply gross margin decreased 26% to $408 million in 2001.
The overall decrease is due to declines in Europe/Africa and South America that were partially offset by slight increases in North America, the Caribbean and Asia.
The competitive supply gross margin as a percentage of revenues decreased to 16% in 2001 from 23% in 2000.
In South America, competitive supply segment gross margin decreased $61 million and was 1% of revenues due to declines at our businesses in Argentina.
In Europe/Africa, competitive supply segment gross margin decreased $95 million and was 22% of revenues.
The decrease is due primarily to declines at Drax, Barry and Fifoots from the lower market prices in the U. K.  In North America, competitive supply segment gross margin increased $14 million and was 11% of revenues.
The increase was due to an expanded customer base at New Energy and was partially offset by decreases at Somerset in New York and Deepwater in Texas.
In the Caribbean (which includes Colombia), the competitive supply gross margin increased $15 million and was 29% of revenues.
The increase is due primarily to the acquisition of Chivor.


| (millions) Before application of SFAS No. 158 (a) Adjustments After application of SFAS No. 158 | Other assets: | Other intangibles — pension | Pension | $865.0 | Total assets | Other current liabilities: | Pension, postretirement, and postemployment benefits | $53.0 | Other liabilities: | Pension, postretirement, and postemployment benefits (a) | Deferred income taxes (b) | $280.4 | Total liabilities | Accumulated other comprehensive income (loss) (a) |


Long-term debt at December31, 2009 and December31, 2008 includes $19,345 million and $24,060 million, respectively, of junior subordinated debt.
The Company formed statutory business trusts under the laws of the state of Delaware.
The trusts exist for the exclusive purposes of (i) issuing trust securities representing undivided beneficial interests in the assets of the Trust; (ii) investing the gross proceeds of the trust securities in junior subordinated deferrable interest debentures (subordinated debentures) of its parent; and (iii) engaging in only those activities necessary or incidental thereto.
Upon approval from the Federal Reserve, Citigroup has the right to redeem these securities.
Citigroup has contractually agreed not to redeem or purchase (i) the 6.50% Enhanced Trust Preferred securities of Citigroup Capital XV before September15, 2056, (ii) the 6.45% Enhanced Trust Preferred securities of Citigroup Capital XVI before December31, 2046, (iii) the 6.35% Enhanced Trust Preferred securities of Citigroup Capital XVII before March 15, 2057, (iv) the 6.829% Fixed Rate/Floating Rate Enhanced Trust Preferred securities of Citigroup Capital XVIII before June28, 2047, (v) the 7.250% Enhanced Trust Preferred securities of Citigroup Capital XIX before August15, 2047, (vi) the 7.875% Enhanced Trust Preferred securities of Citigroup Capital XX before December15, 2067, and (vii) the 8.300% Fixed Rate/Floating Rate Enhanced Trust Preferred securities of Citigroup Capital XXI before December21, 2067, unless certain conditions, described in Exhibit4.03 to Citigroup’s Current Report on Form 8-K filed on September18, 2006, in Exhibit4.02 to Citigroup’s Current Report on Form 8-K filed on November28, 2006, in Exhibit4.02 to Citigroup’s Current Report on Form 8-K filed on March 8, 2007, in Exhibit4.02 to Citigroup’s Current Report on Form 8-K filed on July2, 2007, in Exhibit4.02 to Citigroup’s Current Report on Form 8-K filed on August17, 2007, in Exhibit4.2 to Citigroup’s Current Report on Form 8-K filed on November27, 2007, and in Exhibit4.2 to Citigroup’s Current Report on Form 8-K filed on December21, 2007, respectively, are met.
These agreements are for the benefit of the holders of Citigroup’s 6.00% junior subordinated deferrable interest debentures due 2034.
Citigroup owns all of the voting securities of these subsidiary trusts.
These subsidiary trusts have no assets, operations, revenues or cash flows other than those related to the issuance, administration, and repayment of the subsidiary trusts and the subsidiary trusts’ common securities.
These subsidiary trusts’ obligations are fully and unconditionally guaranteed by Citigroup


Note: The table above does not include unamortized discounts associated with our senior notes, or amounts related to interest rate contracts used to hedge the fair value of certain of our senior notes or debt issuance costs.


Credit Derivatives The firm enters into a broad array of credit derivatives in locations around the world to facilitate client transactions and to manage the credit risk associated with marketmaking and investing and lending activities.
Credit derivatives are actively managed based on the firms net risk position.
Credit derivatives are individually negotiated contracts and can have various settlement and payment conventions.
Credit events include failure to pay, bankruptcy, acceleration of indebtedness, restructuring, repudiation and dissolution of the reference entity.
Credit Default Swaps.
Single-name credit default swaps protect the buyer against the loss of principal on one or more bonds, loans or mortgages (reference obligations) in the event the issuer (reference entity) of the reference obligations suffers a credit event.
The buyer of protection pays an initial or periodic premium to the seller and receives protection for the period of the contract.
If there is no credit event, as defined in the contract, the seller of protection makes no payments to the buyer of protection.
However, if a credit event occurs, the seller of protection is required to make a payment to the buyer of protection, which is calculated in accordance with the terms of the contract.
Credit Indices, Baskets and Tranches.
Credit derivatives may reference a basket of single-name credit default swaps or a broad-based index.
If a credit event occurs in one of the underlying reference obligations, the protection seller pays the protection buyer.
The payment is typically a pro-rata portion of the transactions total notional amount based on the underlying defaulted reference obligation.
In certain transactions, the credit risk of a basket or index is separated into various portions (tranches), each having different levels of subordination.
The most junior tranches cover initial defaults and once losses exceed the notional amount of these junior tranches, any excess loss is covered by the next most senior tranche in the capital structure.
Total Return Swaps.
A total return swap transfers the risks relating to economic performance of a reference obligation from the protection buyer to the protection seller.
Typically, the protection buyer receives from the protection seller a floating rate of interest and protection against any reduction in fair value of the reference obligation, and in return the protection seller receives the cash flows associated with the reference obligation, plus any increase in the fair value of the reference obligation.
Credit Options.
In a credit option, the option writer assumes the obligation to purchase or sell a reference obligation at a specified price or credit spread.
The option purchaser buys the right, but does not assume the obligation, to sell the reference obligation to, or purchase it from, the option writer.
The payments on credit options depend either on a particular credit spread or the price of the reference obligation.


| December 31,2009 December 31,2010 December 31,2011 December 31,2012 December 31,2013 December 31,2014 | DISCA | DISCB | DISCK | S&P 500 | Peer Group |


| (Dollar amounts in millions) December 31, 2012 December 31, 2011 | Total investments, GAAP | Investments held by consolidated sponsored investmentfunds-1 | Net exposure to consolidated investment funds | Total investments, as adjusted | Federal Reserve Bank stock-2 | Carried interest | Deferred compensation investments | Hedged investments | Total “economic” investment exposure |


| As of December 31, | 2016-1 | (In millions) | Balance Sheet Data: | Total assets | Short-term debt and current maturities | Long-term debt, net of current portion | Total debt, net | Total equity |


(a) Accounts receivable includes $32 million that is due from us.
(b) Current liabilities include $8 million that is due to us.
We determined that the excess of fair value over consideration paid was attributable to potential future restructuring scenarios made necessary due to the uncertainty in sales demand beyond in-place supply agreements.
Restructuring costs, if incurred, would be expensed in future periods.
As potential future restructuring activities do not qualify to be recorded as a liability in the application of the acquisition method of accounting, none was recorded, and we recorded the excess as a bargain purchase gain, classified as Interest income and other non-operating income, net.
We did not provide the pro forma financial information because we do not believe the information is material.
We began to record the results of GMS operations in our consolidated financial statements from the date of acquisition.


| ($ in millions) Fair value at December 31, 2008 % to Total Investments Fair value at December 31, 2007 % to Total Investments | U.S. government and agencies | Municipal | Corporate | Foreign government | Mortgage-backed securities ("MBS") | CMBS | ABS | Redeemable preferred stock | Total fixed income securities |


PENSION BENEFITS The Company sponsors defined benefit pension plans and defined contribution plans that cover a substantial portion of its worldwide employees.
The principal defined benefit pension plans—the U. S.  salaried pension plan and the U. K.  pension plan—were closed to new participants in 2005 and were replaced with defined contribution plans.
Over the long run, the shift to defined contribution plans is expected to reduce volatility of both plan expense and contributions.
The fair market value of plan assets for our defined benefit pension plans as of the 30 September 2015 measurement date decreased to $3,916.4 from $4,114.6 at the end of fiscal year 2014.
The projected benefit obligation for these plans was $4,787.8 and $4,738.6 at the end of the fiscal years 2015 and 2014, respectively.
Refer to Note 16, Retirement Benefits, to the consolidated financial statements for comprehensive and detailed disclosures on our postretirement benefits.
Pension Expense


Restricted Stock Awards Restricted stock awards generally vest ratably over three to four years or at the end of five years.
Vesting of restricted stock awards may be accelerated based on age and length of service.
Compensation expense for restricted stock awards is based on the market price of Ameriprise Financial stock on the date of grant and is amortized on a straight-line basis over the vesting period.
Quarterly dividends are paid on restricted stock, as declared by the Company’s Board of Directors, during the vesting period and are not subject to forfeiture.
Certain advisors receive a portion of their compensation in the form of restricted stock awards which are subject to forfeiture based on future service requirements.
A summary of the Company’s restricted stock award activity for 2010 is presented below (shares in millions):


| Amount Increase/(decrease) Increase/(decrease) excluding currency translation | Dollars in millions | Company-operated sales: | U.S. | Europe | APMEA | Other Countries & Corporate | Total | Franchised revenues: | U.S. | Europe | APMEA | Other Countries & Corporate | Total | Total revenues: | U.S. | Europe | APMEA | Other Countries & Corporate | Total |


ABIOMED, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements—(Continued) Note 15.
Commitments and Contingencies (Continued) The Company applies the disclosure provisions of FIN No.45, Guarantor’s Accounting and Disclosure Requirements for Guarantees, Including Guarantees of Indebtedness of Others, and Interpretation of FASB Statements No.5, 57 and 107 and Rescission of FASB Interpretation No.34 (FIN No.45) to its agreements that contain guarantee or indemnification clauses.
These disclosure provisions expand those required by SFAS No.5, Accounting for Contingencies, by requiring that guarantors disclose certain types of guarantees, even if the likelihood of requiring the guarantor’s performance is remote.
In addition to product warranties, the following is a description of arrangements in which the Company is a guarantor.
Indemnifications—In many sales transactions, the Company indemnifies customers against possible claims of patent infringement caused by the Company’s products.
The indemnifications contained within sales contracts usually do not include limits on the claims.
The Company has never incurred any material costs to defend lawsuits or settle patent infringement claims related to sales transactions.
Under the provisions of FIN No.45, intellectual property indemnifications require disclosure only.
The Company enters into agreements with other companies in the ordinary course of business, typically with underwriters, contractors, clinical sites and customers that include indemnification provisions.
Under these provisions the Company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of its activities.
These indemnification provisions generally survive termination of the underlying agreement.
The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is unlimited.
Abiomed has never incurred any material costs to defend lawsuits or settle claims related to these indemnification agreements.
As a result, the estimated fair value of these agreements is minimal.
Accordingly, the Company has no liabilities recorded for these agreements as of March 31, 2008.
Clinical study agreements—In the Company’s clinical study agreements, Abiomed has agreed to indemnify the participating institutions against losses incurred by them for claims related to any personal injury of subjects taking part in the study to the extent they relate to uses of the Company’s devices in accordance with the clinical study agreement, the protocol for the device and Abiomed’s instructions.
The indemnification provisions contained within the Company’s clinical study agreements do not generally include limits on the claims.
The Company has never incurred any material costs related to the indemnification provisions contained in its clinical study agreements.
Facilities Leases—As of March 31, 2008, the Company had entered into leases for its facilities, including its primary operating facility in Danvers, Massachusetts with terms through fiscal 2010.
The Danvers lease may be extended, at the Company’s option, for two successive additional periods of five years each with monthly rent charges to be determined based on then current fair rental values.
The Company’s lease for its Aachen location expires in December 2012.
Total rent expense under these leases, included in the accompanying consolidated statements of operations approximated $2.2 million, $1.6 million, and $1.3 million for the fiscal years ended March 31, 2008, 2007 and 2006, respectively.
Future minimum lease payments under all significant non-cancelable operating leases as of March 31, 2008 are approximately as follows:


The margins for natural gas on a per MMBTU basis were $.035 for 2002 and 2001 and $.027 for 2000.
The increase in natural gas margin on a per MMBTU basis for 2001 compared to 2000 was due to the improvement in natural gas prices.
The margins for crude oil on a per Bbl basis were $.84 for 2002, $.95 for 2001 and $1.28 for 2000.
The decrease in crude oil margin for 2002 compared to 2001 was due to increased general and administrative expenses coupled with higher transportation expense.
The decrease in crude oil margin for 2001 compared to 2000 was due to lower crude oil prices.


Hologic, Inc.  Notes to Consolidated Financial Statements (continued) (In thousands, except per share data) Option Exchange Program On December 22, 2008, the Board of Directors approved, subject to stockholder approval, a stock option exchange program (the “Option Exchange Program”).
The Option Exchange Program was approved at the Annual Meeting of Stockholders held on March 4, 2009.
The Option Exchange Program permitted eligible employees to exchange their outstanding options issued on January 16, 2008 at an exercise price per share of $33.31 for a lesser number of new options (“New Options”), with such number of New Options issuable upon exchange calculated pursuant to an exchange ratio based on the original exercise price of the surrendered option.
The exchange offer expired on April 5, 2009.
Pursuant to the Option Exchange Program, the New Options have an exercise price of $14.87, which is 110% of the last reported closing sales price of the Company’s common stock as of the date of the new grant, which was April 5, 2009.
The total number of stock options eligible to be exchanged of 784 was exchanged for 406 New Options.
On the date of exchange, the estimated fair value of the New Options approximated the estimated fair value of the exchanged stock options calculated immediately prior to the exchange.
As such, there is no incremental fair value of the New Options, and the Company will not record additional compensation expense related to the exchange.
The Company will continue to recognize the remaining compensation expense related to the exchanged options over the remaining vesting period of the original options.
The New Options become exercisable over a period of four years, with 25% vesting on the first anniversary of the date the New Options were granted and 25% vesting on each anniversary thereafter, so long as the option holder continues to be employed by the Company.


$43.3 million in 2011 compared to $34.1 million in 2010.
The Retail segment represented 13% and 15% of the Companys total net sales in 2011 and 2010, respectively.
The Retail segments operating income was $4.7 billion, $3.2 billion, and $2.3 billion during 2012, 2011, and 2010 respectively.
These year-over-year increases in Retail operating income were primarily attributable to higher overall net sales that resulted in significantly higher average revenue per store during the respective years.


| % of Total Revenue | 2012 | Domestic | United Kingdom | Continental Europe | Asia Pacific | Latin America | Other |


| Year ended June 30, | 2010 | Net income | Non-cash expenses | Change in receivables | Change in deferred revenue | Change in other assets and liabilities | Net cash from operating activities |


| Change | 2012 | (in millions) | Revenues: | Services: | Provider services | Home care services | Pharmacy solutions | Integrated wellness services | Total services revenues | Intersegment revenues: | Pharmacy solutions | Provider services | Integrated wellness services | Home care services | Total intersegment revenues | Total services and intersegment revenues | Income before income taxes | Operating cost ratio |


COMMON STOCK Treasury Stock In July 2014, the Board of Directors approved a stock repurchase program authorizing the Company to purchase up to $750.0 million of the Companys common stock.
In November 2016, the Board of Directors approved a new stock repurchase program providing for an additional $1.0 billion of repurchases of our common stock.
The repurchase programs do not have an expiration date.
Stock repurchased under these programs may be used to offset obligations under the Companys employee stock-based benefit programs and stock-based business acquisitions, and will reduce the total shares outstanding.
During 2016, 2015, and 2014, the Company repurchased 7.3 million, 2.6 million, and 4.4 million shares, respectively, at an aggregate cost of $662.3 million, $280.1 million, and $300.9 million, respectively, including


| $ in millions Loans Receivable Loans, at Fair Value Total | As of December 2018 | Loan Type | Corporate loans | PWM loans | Commercial real estate loans | Residential real estate loans | Consumer loans | Other loans | Allowance for loan losses | Total | Region | Americas | Europe, Middle East and Africa | Asia | Total | As of December 2017 | Loan Type | Corporate loans | PWM loans | Commercial real estate loans | Residential real estate loans | Consumer loans | Other loans | Allowance for loan losses | Total | Region | Americas | Europe, Middle East and Africa | Asia | Total | $ in millions | As of December 2018 | Cash and cash equivalents | Resale agreements | Securities borrowed | Loans receivable | Customer and other receivables | Financial instruments owned | Subtotal | Other assets | Total assets | As ofDecember 2017 | Cash and cash equivalents | Resale agreements | Securities borrowed | Loans receivable | Customer and other receivables | Financial instruments owned | Subtotal | Other assets | Total assets |


Off-Balance Sheet Arrangements We currently do not have any relationships with unconsolidated entities or financial partnerships, often referred to as structured finance or special purpose entities, that have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.
Lease and Contractual Obligations The Company currently leases additional office space, a data center and remote network operations center, with lease terms remaining from 3 months to 103 months as of December 31, 2016.
In December 2014, we entered into an agreement with FINRA to provide certain regulatory services to the CBOE and C2 options markets.
The agreement included the assignment of the office space CBOE leased for regulatory operations.
Total rent expense related to current and former lease obligations for the years ended December 31, 2016, 2015 and 2014 totaled $4.4 million, $4.1 million and $3.8 million, respectively.
Future minimum payments under our operating leases and contractual obligations were as follows at December 31, 2016 (in thousands):


| Years Ended December 31, | 2008 | (In millions) | Operating Revenues | Premiums | Universal life and investment-type product policy fees | Net investment income | Other revenues | Total operating revenues | Operating Expenses | Policyholder benefits and claims and policyholder dividends | Interest credited to policyholder account balances | Capitalization of DAC | Amortization of DAC and VOBA | Interest expense | Other expenses | Total operating expenses | Provision for income tax expense (benefit) | Operating earnings |


| Year Ended December 31, | 2014 | Gas Delivered(MDt) | Firm sales | Full service | Firm transportation | Total Firm Sales | Interruptible sales | Total Gas Delivered to O&R Customers | Transportation of customer-owned gas | Sales for resale | Sales to electric generating stations | Off-system sales | Total Sales | Year Ended December 31, | 2014 | Gas Delivered($ in millions) | Firm sales | Full service | Firm transportation | Total Firm Sales | Interruptible Sales | Total Gas Delivered to O&R Customers | Transportation of customer-owned gas | Sales to electric generating stations | Other operating revenues | Total Sales | Average Revenue Per Dt Sold | Residential | General |


| 2013 2012 | Pension and postretirement benefits | Labor-related deemed claim -1 | Aircraft and facility financing renegotiations and rejections -2, -3 | Fair value of conversion discount -4 | Professional fees | Other | Total reorganization items, net |


NOTE 17 STOCK PROGRAMS As of June 30, 2008, the Company has three active equity compensation plans which include the Amended and Restated Fiscal 2002 Share Incentive Plan, the Fiscal 1999 Share Incentive Plan and the Non-Employee Director Share Incentive Plan (collectively, the Plans).
These Plans currently provide for the issuance of 33,194,400 shares, which consist of shares originally provided for and shares transferred to the Plans from a previous plan and employment agreement, to be granted in the form of stock-based awards to key employees, consultants and non-employee directors of the Company.
As of June 30, 2008, approximately 7,184,400 shares of Class A Common Stock were reserved and available to be granted pursuant to these Plans, subject to the approval by the Stock Plan Subcommittee of the Companys Board of Directors of expected payouts for performance share units (PSU) vested as of June 30, 2008.
The Company may satisfy the obligation of its stock-based compensation awards with either new or treasury shares.
The Companys stock compensation awards outstanding at June 30, 2008 include stock options, PSUs, restricted stock units (RSU) and share units.
Total net stock-based compensation expense is attributable to the granting of, and the remaining requisite service periods of, stock options, PSUs, RSUs and share units.
Compensation expense attributable to net stockbased compensation for fi scal 2008, 2007 and 2006 was $47.2 million ($31.2 million after tax), $43.2 million ($28.3 million after tax) and $35.7 million ($23.4 million after tax), respectively.
As of June 30, 2008, the total unrecognized compensation cost related to nonvested stock-based awards was $27.6 million and the related weighted- average period over which it is expected to be recognized is approximately 1.6 years.


| Year Ended December | $ in millions | Total other financial assets | Beginning balance | Net realized gains/(losses) | Net unrealized gains/(losses) | Purchases | Settlements | Ending balance | Total other financial liabilities | Beginning balance | Net realized gains/(losses) | Net unrealized gains/(losses) | Purchases | Sales | Issuances | Settlements | Transfers into level 3 | Transfers out of level 3 | Ending balance |


| Oil   (MMBbls) Gas   (Bcf) NGLs   (MMBbls) Total   (MMBoe) | U.S. Onshore | Canada | North America Onshore |


Savings Plan The principal defined contribution plan is the Bristol-Myers Squibb Savings and Investment Program.
The Company’s contribution is based on employee contributions and the level of Company match.
The Company’s contributions to the plan were $51 million in 2005, $53 million in 2004 and $51 million in 2003.


| Year Ended December 31, (dollars in thousands) Year Ended December 31, (per home) | 2007 | Turnover capital expenditures | Asset preservation expenditures | Total recurring capital expenditures | Revenue enhancing improvements | Major renovations | Total capital expenditures | Repair and maintenance expense |


| Performance Share Units | ShareUnits | Nonvested at January 1, 2015 | Granted(a) | Forfeitures | Earned and vested(b) | Nonvested at December 31, 2015 |


Approximately 96% of our debt securities were investment-grade quality, with an average credit rating of AA by S&P at December 31, 2010.
Most of the debt securities that were below investment-grade were rated BB, the higher end of the below investment-grade rating scale.
Our investment policy limits investments in a single issuer and requires diversification among various asset types.
Tax-exempt municipal securities included pre-refunded bonds of $343.9 million at December 31, 2010 and $346.9 million at December 31, 2009.
These pre-refunded bonds were secured by an escrow fund consisting of U. S.  government obligations sufficient to pay off all amounts outstanding at maturity.
The ratings of these pre-refunded bonds generally assume the rating of the government obligations (AAA by S&P) at the time the fund is established.
In addition, certain monoline insurers guarantee the timely repayment of bond principal and interest when a bond issuer defaults and generally provide credit enhancement for bond issues related to our tax-exempt municipal securities.
We have no direct exposure to these monoline insurers.
We owned $597.2 million and $587.2 million at December 31, 2010 and 2009, respectively, of tax-exempt securities guaranteed by monoline insurers.
The equivalent S&P credit rating of these tax-exempt securities without the guarantee from the monoline insurer was AA.
Our direct exposure to subprime mortgage lending is limited to investment in residential mortgage-backed securities and asset-backed securities backed by home equity loans.
The fair value of securities backed by Alt-A and subprime loans was $3.4 million at December 31, 2010 and $5.5 million at December 31, 2009.
There are no collateralized debt obligations or structured investment vehicles in our investment portfolio.
The percentage of corporate securities associated with the financial services industry was 29.4% at December 31, 2010 and 37.3% at December 31, 2009.
Duration is indicative of the relationship between changes in fair value and changes in interest rates, providing a general indication of the sensitivity of the fair values of our debt securities to changes in interest rates.
However, actual fair values may differ significantly from estimates based on duration.
The average duration of our debt securities was approximately 4.6 years at December 31, 2010.
Including cash equivalents, the average duration was approximately 4.0 years.
Based on the duration including cash equivalents, a 1% increase in interest rates would generally decrease the fair value of our securities by approximately $395 million.


| 2003 2002 | Quarter | First | Second | Third | Fourth | Commercial  Banking | (Dollars in thousands) | 2001 | Net interest income | Provision for loan losses-5 | Noninterest income (loss)(6) | Noninterest expense-7 | Minority interest in net losses of consolidated affiliates | Income (loss) before income taxes | Total assets-8 | 2003 | Shares | Outstanding at January 1, | Granted | Exercised | Forfeited | Outstanding at December 31, | Exercisable at December 31, | Options Outstanding | Ranges of Exercise Prices | $7.88-15.03 | 15.15-19.20 | 19.24-22.50 | 22.97-23.69 | 23.76-24.57 | 24.80-25.17 | 25.29-26.06 | 26.24-31.29 | 31.45-34.84 | 35.26-58.25 | $7.88-58.25 |


| 4/09 4/10 4/11 4/12 4/13 4/14 | NetApp, Inc. | NASDAQ Composite | S&P 500 | S&P 500 Information Technology | December 31, 2007 | Less than twelve months | Carrying value | (in millions) | Fixed maturities, available-for-sale: | U.S. government and agencies | Non-U.S. governments | States and political subdivisions | Corporate — public | Corporate — private | Mortgage-backed and other asset-backed securities | Total fixed maturities, available-for-sale | Total equity securities, available-for-sale | December 31, | 2007 | (in millions) | 8.2% notes payable, due 2009 | 3.31% notes payable, due 2011 | 3.63% notes payable, due 2011 | 6.05% notes payable, due 2036 | 8% surplus notes payable, due 2044 | Nonrecourse mortgages and notes payable | Other mortgages and notes payable | Total long-term debt |


| Level 1 Level 2 Level 3 Total | (In Millions) | Assets: | Temporary cash investments | Decommissioning trust funds | Power contracts | Securitization recovery trust account | Other investments | $2,360 | Liabilities: | Gas hedge contracts |


| In millions, except per share amounts 2006 2005 2004 | Revenues | Earnings from discontinued operation | Earnings from operation | Income tax expense | Earnings from operation, net of taxes | Loss on sales and impairments | Income tax benefit | Loss on sales and impairments, net of taxes | Earnings (loss) from discontinued operation, net of taxes | Earnings per common share from discontinued operation - assuming dilution | Earnings from operation | Loss on sales and impairments | Earnings (loss) per common share from discontinued operation, net of taxes and minority interest - assumingdilution |


| December 31, | 2007 | Cost  Basis | Mortgage-backed securities: | Backed by U.S. Government sponsored and Federal Agencies | Collateralized mortgage obligations and other | Total mortgage-backed securities | Investment securities: | Asset-backed securities | Municipal bonds | Corporate bonds | Other debt securities | Publicly traded equity securities: | Preferred stock | Corporate investments | Retained interest from securitizations | Total investment securities | Total available-for-sale securities | Within One Year | Balance  Due | Mortgage-backed securities: | Backed by U.S. Government sponsored and Federal agencies | Collateralized mortgage obligations and other | Total mortgage-backed securities | Investment securities: | Municipal bonds-1 | Corporate debt | Other debt securities | Publicly traded equity securities | Preferred stock-2 | Corporate investments-3 | Retained interests from securitizations | Total investment securities | Total available-for-sale securities |


| As of February 28, 2014 | (In thousands) | Fiscal 2015 | Fiscal 2016 | Fiscal 2017 | Fiscal 2018 | Fiscal 2019 | Fiscal 2020 and thereafter | Total minimum lease payments | Less amounts representing interest | Present value of net minimum lease payments |


| Stock-Settled Awards Cash-Settled Awards Performance-Based Awards | Awards | Non-vested as of January 1, 2012 | Granted | Vested | Forfeited | Non-vested as of December 31, 2012 | Total unrecognized compensation expense remaining | Weighted-average years expected to be recognized over |


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


| Pension Benefits | U.S. Plans | 2017 | Weighted Average Assumptions at December 31 | Discount rate | Average rate of increase in compensation | Weighted Average Assumptions Used to Determine Net Benefit Cost for the Year Ended December 31 | Discount rate - Service cost | Effective interest rate on benefit obligation | Expected long-term rate of return on assets | Average rate of increase in compensation | Pension Benefits | U.S. Plans | 2016 | Service cost | Interest cost | Expected return on assets | Amortization of prior service costs/(credits) | Net remeasurement (gain)/loss | Separation programs/other | Settlements and curtailments | Net periodic benefit cost/(income) |


CME Non-Qualified Plans.
CME maintains non-qualified plans, under which participants may make assumed investment choices with respect to amounts contributed on their behalf.
Although not required to do so, CME invests such contributions in assets that mirror the assumed investment choices.
The balances in these plans are subject to the claims of general creditors of the exchange and totaled $28.8 million and $23.4 million at December 31, 2010 and 2009, respectively.
Although the value of the plans is recorded as an asset in the consolidated balance sheets, there is an equal and offsetting liability.
The investment results of these plans have no impact on net income as the investment results are recorded in equal amounts to both investment income and compensation and benefits expense.


| December 31 | (Dollars in millions) | Consumer | Residential mortgage | Home equity | Discontinued real estate | Direct/Indirect consumer | Other consumer | Total consumer | Commercial | Commercial – domestic-1 | Commercial real estate | Commercial lease financing | Commercial – foreign | Total commercial | Total nonperforming loans and leases |


Other Commitments As of September 29, 2012, the Company had outstanding off-balance sheet third-party manufacturing commitments and component purchase commitments of $21.1 billion.
In addition to the off-balance sheet commitments mentioned above, the Company had outstanding obligations of $988 million as of September 29, 2012, which were comprised mainly of commitments to acquire capital assets, including product tooling and manufacturing process equipment, and commitments related to advertising, research and development, Internet and telecommunications services and other obligations.
Contingencies The Company is subject to various legal proceedings and claims that have arisen in the ordinary course of business and have not been fully adjudicated, certain of which are discussed in Part I, Item 3 of this Form 10-K under the heading “Legal Proceedings” and in Part I, Item 1A of this Form 10-K under the heading “Risk Factors.
” In the opinion of management, there was not at least a reasonable possibility the Company may have incurred a material loss, or a material loss in excess of a recorded accrual, with respect to loss contingencies.
However, the outcome of litigation is inherently uncertain.
Therefore, although management considers the likelihood of such an outcome to be remote, if one or more of these legal matters were resolved against the Company in a reporting period for amounts in excess of management’s expectations, the Company’s consolidated financial statements for that reporting period could be materially adversely affected.
Apple Inc.  vs Samsung Electronics Co. , Ltd, et al.
On August 24, 2012, a jury returned a verdict awarding the Company $1.05 billion in its lawsuit against Samsung Electronics and affiliated parties in the United States District Court, Northern District of California, San Jose Division.
Because the award is subject to entry of final judgment and may be subject to appeal, the Company has not recognized the award in its consolidated financial statements for the year ended September 29, 2012.


(a) The shares reported in this column represent purchases settled in the fourth quarter of 2015 relating to (i) our purchases of shares in open-market transactions to meet our obligations under stock-based compensation plans, and (ii) our purchases of shares from our employees and non-employee directors in connection with the exercise of stock options, the vesting of restricted stock, and other stock compensation transactions in accordance with the terms of our stock-based compensation plans.
(b) On July 13, 2015, we announced that our board of directors approved our purchase of $2.5 billion of our outstanding common stock (with no expiration date), which was in addition to the remaining amount available under our $3 billion program previously authorized.
During the third quarter of 2015, we completed our purchases under the $3 billion program.
As of December 31, 2015, we had $1.3 billion remaining available for purchase under the $2.5 billion program.


| -1(2) December 31, 2005 December 31, 2004 | NAIC Designation | (in millions) | 1 | 2 | Subtotal Investment Grade | 3 | 4 | 5 | 6 | Subtotal Below Investment Grade | Total Public Fixed Maturities | -1 | NAIC Designation | (in millions) | 1 | 2 | Subtotal Investment Grade | 3 | 4 | 5 | 6 | Subtotal Below Investment Grade | Total Public Fixed Maturities |


| AAG Series A Preferred Stock $3,329 | Single-dip equity obligations | Labor-related deemed claim | Total | 2013 | (In cents) | Total mainline CASM | Less: Special items, net | Less: Aircraft fuel and related taxes | Less: Profit sharing | Total mainline CASM excluding special items, fuel and profit sharing1 |


| December 31, | (In millions) | Term loan | Revolving credit facility | 3.125% senior notes due 2015 | 3.125% senior notes due 2016 | 6.8% senior notes due 2017 | 4.625% senior notes due 2020 | 4.75% senior notes due 2021 | 3.5% senior notes due 2022 | Other borrowings | Long-term debt (including current maturities) |


The Company reviews all investments for other-than-temporary impairment at least quarterly or as indicators of impairment exist.
Indicators of impairment include the duration and severity of the decline in fair value below carrying value as well as the intent and ability to hold the investment to allow for a recovery in the market value of the investment.
In addition, the Company considers qualitative factors that include, but are not limited to: (i) the financial condition and business plans of the investee including its future earnings potential, (ii) the investees credit rating, and (iii) the current and expected market and industry conditions in which the investee operates.
If a decline in the fair value of an investment is deemed by management to be other-than-temporary, the Company writes down the carrying value of the investment to fair value, and the amount of the write-down is included in net earnings.
Such a determination is dependent on the facts and circumstances relating to each investment.
The Company recognized $0 million, $1 million and $0 million of other-than-temporary impairment losses related to equity securities in the consolidated statements of operations for the years ended December 31, 2010, 2009, and 2008, respectively.
The amortized cost, gross unrealized gain, gross unrealized loss and fair values for available-for-sale securities by major security type are as follows:


| Year ended December 31, | 2009 | Operating results: | Revenues | Benefits and expenses | Adjusted operating income | Realized investment gains (losses), net, and related adjustments(1) | Related charges-2 | Income from continuing operations before income taxes and equity in earnings of operating joint ventures |


| Accruing Past Due 90 Days or More Nonperforming | December 31 | (Dollars in millions) | Residential mortgage-2, 3 | Home equity-2 | Discontinued real estate-2 | U.S. credit card | Non-U.S.credit card | Direct/Indirect consumer | Other consumer | Total |


SILICON VALLEY BANCSHARES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) 20.
Off-Balance Sheet Arrangements, Guarantees, and Other Commitments (Continued) Obligation Under Guarantees The Company provides guarantees related to financial and performance standby letters of credit.
The table below summarizes the Companys standby letter of credits at December 31, 2003.
The maximum potential amount of future payments represents the amount that could be lost under the standby letter of credits if there were a total default by the guaranteed parties, without consideration of possible recoveries under recourse provisions or from the collateral held or pledged.


| Millions OperatingLeases CapitalLeases | 2018 | 2019 | 2020 | 2021 | 2022 | Later years | Total minimum lease payments | Amount representing interest | Present value of minimum lease payments |


| (Millions of Dollars) | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 and thereafter | Total |


| Year EndedDecember 31, Seven MonthsEndedDecember 31, 2016 Year EndedMay 31, 2016 | 2018 | (in thousands) | Revenues-1(2): | North America | Europe | Asia-Pacific | Consolidated revenues | Operating income (loss)(2): | North America | Europe | Asia-Pacific | Corporate-2 | Consolidated operating income | Depreciation and amortization-2: | North America | Europe | Asia-Pacific | Corporate | Consolidated depreciation and amortization |


| As of December | in millions | Securities purchased under agreements toresell1 | Securities borrowed2 | Securities sold under agreements torepurchase1 | Securitiesloaned2 | Consolidated Balance Sheet Data | (In millions) | Cash, cash equivalents and investments | Long-term investments | Working capital | Total assets | Current portion of long-term debt | Long-term debt | Other long-term obligations | Total stockholders’ equity |


| Years ended December 31, 2018 2017 2016 | Revenues | % of total company revenues | Earnings from operations | Operating margins |


| (millions) 2017 2016 2015 | Net tangible assets acquired and equity method investments | Identifiable intangible assets | Customer relationships | Patents | Trademarks | Non-compete agreements | Other technology | Total intangible assets | Goodwill | Total aggregate purchase price | Acquisition related liabilities and contingent consideration | Net cash paid for acquisitions, including acquisition related | liabilities and contingent consideration |


| Year ended December 31Dollars in millions 2012 2011 | Net interest income | Net interest margin |


The fair value adjustment presented above represents changes in the fair value of the portion of Schlumbergers fixed rate debt that is hedged through the use of interest rate swaps.
During the third quarter of 2009, Schlumberger issued $450 million of 3.00% Guaranteed Notes due 2013.  an initial conversion price of $40.00 per share).
The conversion rate may be adjusted for certain events, but it will not be adjusted for accrued interest.
On or after June 6, 2010, Schlumberger may redeem for cash all or part of the debentures, upon notice to the holders, at the redemption prices of 100% of the principal amount of the debentures, plus accrued and unpaid interest to the date of redemption.
On June 1, 2010, June 1, 2013 and June 1, 2018, holders may require Schlumberger to repurchase their Series B debentures.
The repurchase price will be 100% of the principal amount of the debentures plus accrued and unpaid interest to the repurchase date.
The repurchase price for repurchases on June 1, 2010 will be paid in cash.
On the other repurchase dates, Schlumberger may choose to pay the repurchase price in cash or common stock or any combination of cash and common stock.
In addition, upon the occurrence of a Fundamental Change (defined as a change in control or a termination of trading of SchlumbergerÂ¡Â¯s common stock), holders may require Schlumberger to repurchase all or a portion of their debentures for an amount equal to 100% of the principal amount of the debentures plus accrued and unpaid interest to the repurchase date.
The repurchase price may be paid in cash, Schlumberger common stock (or if Schlumberger is not the surviving entity in a merger, the securities of the surviving entity) or a combination of cash and the applicable securities, at SchlumbergerÂ¡Â¯s option.
The applicable securities will be valued at 99% of their market price.
SchlumbergerÂ¡Â¯s option to pay the repurchase price with securities is subject to certain conditions.
The debentures will mature on June 1, 2023 unless earlier redeemed or repurchased.
During 2008 and 2007, $95 million and $34 million of the Series B debentures were converted into 2.4 million and 0.9 million shares of Schlumberger common stock, respectively.
There were $321 million of the Series B debentures outstanding at both December 31, 2009 and December 31, 2008.
The fair value of the Series B debentures at December 31, 2009 and December 31, 2008 was $527 million and $398 million, respectively, and was based on quoted market prices.
Other Long-term Debt Other Long-term Debt consists of the following:
The fair value adjustment presented above represents changes in the fair value of the portion of SchlumbergerÂ¡Â¯s fixed rate debt that is hedged through the use of interest rate swaps.
During the third quarter of 2009, Schlumberger issued $450 million of 3.00% Guaranteed Notes due 2013.
During the first quarter of 2009, Schlumberger entered into a ¬3.0 billion Euro Medium Term Note program.
This program provides for the issuance of various types of debt instruments such as fixed or floating rate notes in euro, US dollar or other currencies.
Schlumberger issued ¬1.0 billion 4.50% Guaranteed Notes due 2014 in the first quarter of 2009 under this program.
Schlumberger entered into agreements to swap these euro notes


SHAREHOLDER RETURN PERFORMANCE PRESENTATION The graph presented below compares the cumulative total shareholder return on State Street's common stock to the cumulative total return of the S&P 500 Index and the S&P Financial Index over a five-year period.
The cumulative total shareholder return assumes the investment of $100 in State Street common stock and in each index on December 31, 2007 at the closing price on the last trading day of 2007, and also assumes reinvestment of common stock dividends.
The S&P Financial Index is a publicly available measure of 80 of the Standard & Poor's 500 companies, representing 26 diversified financial services companies, 22 insurance companies, 17 real estate companies and 15 banking companies.
Comparison of Five-Year Cumulative Total Shareholder Return


Credit Exposure—Derivatives.
The Company incurs credit risk as a dealer in over-the-counter (“OTC”) derivatives.
Credit risk with respect to derivative instruments arises from the failure of a counterparty to perform according to the terms of the contract.
In connection with its OTC derivative activities, the Company generally enters into master netting agreements and collateral arrangements with counterparties.
These agreements provide the Company with the ability to demand collateral, as well as to liquidate collateral and offset receivables and payables covered under the same master netting agreement in the event of counterparty default.
The Company manages its trading positions by employing a variety of risk mitigation strategies.
These strategies include diversification of risk exposures and hedging.
Hedging activities consist of the purchase or sale of positions in related securities and financial instruments, including a variety of derivative products (e. g. , futures, forwards, swaps and options).
For credit exposure information on the Company’s OTC derivative products, see Note 4 to the consolidated financial statements in Item 8.  Credit Derivatives.
A credit derivative is a contract between a seller and buyer of protection against the risk of a credit event occurring on one or more debt obligations issued by a specified reference entity.
The buyer typically pays a periodic premium over the life of the contract and is protected for the period.
If a credit event occurs, the seller is required to make payment to the beneficiary based on the terms of the credit derivative contract.
Credit events, as defined in the contract, may be one or more of the following defined events: bankruptcy, dissolution or insolvency of the referenced entity, failure to pay, obligation acceleration, repudiation, payment moratorium and restructurings.
The Company trades in a variety of credit derivatives and may either purchase or write protection on a single name or portfolio of referenced entities.
In transactions referencing a portfolio of entities or securities, protection may be limited to a tranche of exposure or a single name within the portfolio.
The Company is an active market maker in the credit derivatives markets.
As a market maker, the Company works to earn a bid-offer spread on client flow business and manages any residual credit or correlation risk on a portfolio basis.
Further, the Company uses credit derivatives to manage its exposure to residential and commercial mortgage loans and corporate lending exposures during the periods presented.
The effectiveness of the Company’s credit default swap (“CDS”) protection as a hedge of its exposures may vary depending upon a number of factors, including the contractual terms of the CDS.
The Company actively monitors its counterparty credit risk related to credit derivatives.
A majority of the Company’s counterparties are composed of banks, broker-dealers, insurance and other financial institutions.
Contracts with these counterparties may include provisions related to counterparty rating downgrades, which may result in the counterparty posting additional collateral to the Company.
As with all derivative contracts, the Company considers counterparty credit risk in the valuation of its positions and recognizes credit valuation adjustments as appropriate within Trading revenues in the consolidated statements of income.


2009Net cash provided by operating activities in 2009 decreased $427 million as compared with 2008, due primarily to an increase in trade working capital of $366 million and an increase in deferred income taxes of $108 million.
The trade working capital change resulted primarily from the unfavorable impact of delayed customer billings associated with negative performance adjustments on the LPD-22 through LPD- 25 contract due to projected cost increases at completion.
See Note 7: Contract Charges in Item 8.
The change in deferred taxes was due to the timing of contract related deductions.
U. S.  federal income tax payments made by Northrop Grumman on our behalf were $132 million in 2009.


| (Dollars in millions) 2016 2015 | Sales and trading revenue | Fixed-income, currencies and commodities | Equities | Total sales and trading revenue | Sales and trading revenue, excluding net DVA-3 | Fixed-income, currencies and commodities | Equities | Total sales and trading revenue, excluding net DVA |


International Insurance Division Foreign Currency Exchange Rate Movements and Related Hedging Strategies As a U. S. -based company with significant business operations outside the U. S. , particularly in Japan, we are subject to foreign currency exchange rate movements that could impact our U. S.  dollar-equivalent shareholder return on equity.
We seek to mitigate this impact through various hedging strategies, including the use of derivative contracts and by holding U. S.  dollar-denominated assets in certain of our foreign subsidiaries.
The operations of our International Insurance division are subject to currency fluctuations that can materially affect our U. S.  dollarequivalent earnings from period to period, even if earnings on a local currency basis are relatively constant.
We enter into forward currency derivative contracts as part of our strategy to effectively fix the currency exchange rates for a portion of our prospective non-U.
S.  dollardenominated earnings streams, thereby reducing earnings volatility from foreign currency exchange rate movements.
The forward currency hedging program is primarily associated with our insurance operations in Japan and Korea.
Separately, our Japanese insurance operations offer a variety of non-yen denominated products, primarily comprised of U. S.  and Australian dollar-denominated products that are supported by investments in corresponding currencies.
While these non-yen denominated assets and liabilities are economically matched, prior to 2015, differences in the accounting for changes in the value of these assets and liabilities due to changes in foreign currency exchange rate movements resulted in volatility in reported U. S.  GAAP earnings.
As a result of continued growth in these portfolios, effective in the first quarter of 2015, we implemented a new structure in Gibraltar Life that disaggregated the U. S.  and Australian dollar-denominated businesses into separate divisions, each with its own functional currency that aligns with the underlying products and investments.
For further information on the hedging strategies used to mitigate the risks of foreign currency exchange rate movements on earnings as well as the U. S.  GAAP earnings impact from products denominated in non-local currencies, see Impact of foreign currency exchange rate movements on earnings.
 We utilize a yen hedging strategy that calibrates the hedge level to preserve the relative contribution of our yen-based business to the Companys overall return on equity on a leverage neutral basis.
We implement this hedging strategy utilizing a variety of instruments, including foreign currency derivative contracts, as discussed above, as well as U. S.  dollar-denominated assets and, to a lesser extent, dual currency and synthetic dual currency assets held locally in our Japanese insurance subsidiaries.
We may also hedge using instruments held in our U. S.  domiciled entities, such as U. S.  dollar-denominated debt that has been swapped to yen.
The total hedge level may vary based on our periodic assessment of the relative contribution of our yen-based business to the Companys overall return on equity
The following table sets forth the composition related to the investments of our Japanese insurance operations general account as of the dates indicated.


PENSION AND OTHER POST-RETIREMENT BENEFIT COSTS We offer the following benefits to some or all of our employees: a domestic trust-based noncontributory qualified defined benefit pension plan (U.
S.  Qualified Plan) and an unfunded, non-qualified domestic noncontributory pension plan to provide benefits in excess of statutory limitations (collectively with the U. S.  Qualified Plan, the Domestic Plans); a domestic contributory defined contribution plan; international pension plans, which vary by country, consisting of both defined benefit and defined contribution pension plans; deferred compensation arrangements; and certain other postretirement benefit plans.
The amounts needed to fund future payouts under our defined benefit pension and post-retirement benefit plans are subject to numerous assumptions and variables.
Certain significant variables require us to make assumptions that are within our control such as an anticipated discount rate, expected rate of return on plan assets and future compensation levels.
We evaluate these assumptions with our actuarial advisors and select assumptions that we believe reflect the economics underlying our pension and post-retirement obligations.
While we believe these assumptions are within accepted industry ranges, an increase or decrease in the assumptions or economic events outside our control could have a direct impact on reported net earnings.
The discount rate for each plan used for determining future net periodic benefit cost is based on a review of highly rated long-term bonds.
For fiscal 2013, we used a discount rate for our Domestic Plans of 3.90% and varying rates on our international plans of between 1.00% and 7.00%.
The discount rate for our Domestic Plans is based on a bond portfolio that includes only long-term bonds with an Aa rating, or equivalent, from a major rating agency.
As of June 30, 2013, we used an above-mean yield curve, rather than the broad-based yield curve we used before, because we believe it represents a better estimate of an effective settlement rate of the obligation, and the timing and amount of cash flows related to the bonds included in this portfolio are expected to match the estimated defined benefit payment streams of our Domestic Plans.
The benefit obligation of our Domestic Plans would have been higher by approximately $34 million at June 30, 2013 had we not used the above-mean yield curve.
For our international plans, the discount rate in a particular country was principally determined based on a yield curve constructed from high quality corporate bonds in each country, with the resulting portfolio having a duration matching that particular plan.
For fiscal 2013, we used an expected return on plan assets of 7.50% for our U. S.  Qualified Plan and varying rates of between 2.25% and 7.00% for our international plans.
In determining the long-term rate of return for a plan, we consider the historical rates of return, the nature of the plans investments and an expectation for the plans investment strategies.
See Note 12  Pension, Deferred Compensation and Post-retirement Benefit Plans of Notes to Consolidated Financial Statements for details regarding the nature of our pension and post-retirement plan investments.
The difference between actual and expected return on plan assets is reported as a component of accumulated other comprehensive income.
Those gains/losses that are subject to amortization over future periods will be recognized as a component of the net periodic benefit cost in such future periods.
For fiscal 2013, our pension plans had actual return on assets of approximately $74 million as compared with expected return on assets of approximately $64 million.
The resulting net deferred gain of approximately $10 million, when combined with gains and losses from previous years, will be amortized over periods ranging from approximately 7 to 22 years.
The actual return on plan assets from our international pension plans exceeded expectations, primarily reflecting a strong performance from fixed income and equity investments.
The lower than expected return on assets from our U. S.  Qualified Plan was primarily due to weakness in our fixed income investments, partially offset by our strong equity returns.
A 25 basis-point change in the discount rate or the expected rate of return on plan assets would have had the following effect on fiscal 2013 pension expense:


| 2014 2013 | Vehicles | Aircraft | Buildings | Plant Equipment | Technology Equipment | Accumulated amortization | $1,791 |


Year ended September 30, 2008 Compared with the Year ended September 30, 2007 - Other Revenue in the Other segment includes interest earnings on available corporate cash balances and gains/losses on corporate investments, including company-owned life insurance used as a funding vehicle for non-qualified deferred compensation programs.
Expenses in this segment are predominantly executive compensation and certain compensation accruals related to our benefit plans as a result of increased profitability at RJ Bank.


| 2017 2016 | 2016 Facility | $400 million 1.850% senior notes due 2017 | $800 million 2.050% senior notes due 2018 | $500 million 6.250% senior notes due 2019 | $600 million 3.000% senior notes due 2020 | $500 million 2.800% senior notes due 2021 | $500 million 3.125% senior notes due 2022 | $300 million 3.850% senior notes due 2025 | $700 million 3.800% senior notes due 2026 | Other | Less unamortized debt issuance costs | Total debt | Less current portion, net of issuance costs | Long-term debt |


Prior to January 1, 2005, the Black-Scholes model was used to determine the fair value of Stock Options granted and recognized in the financial statements or as reported in the pro forma disclosure which follows.
The fair value of Stock Options issued on or after January 1, 2005 was estimated on the date of grant using a binomial lattice model.
The Company made this change because lattice models produce more accurate option values due to the ability to incorporate assumptions about grantee exercise behavior resulting from changes in the price of the underlying shares.
In addition, lattice models allow for changes in critical assumptions over the life of the option in comparison to closed-form models like Black-Scholes, which require single-value assumptions at the time of grant.
The Company used daily historical volatility since the inception of trading when calculating Stock Option values using the Black-Scholes model.
In conjunction with the change to the binomial lattice model, the Company began estimating expected future volatility based upon an analysis of historical prices of the Holding Companys common stock and call options on that common stock traded on the open market.
The Company uses a weighted-average of the implied volatility for publicly traded call options with the longest remaining maturity nearest to the money as of each valuation date and the historical volatility, calculated using monthly closing prices of the Holding Companys common stock.
The Company chose a monthly measurement interval for historical volatility as it believes this better depicts the nature of employee option exercise decisions being based on longer-term trends in the price of the underlying shares rather than on daily price movements.
The risk-free rate is based on observed interest rates for instruments with maturities similar to the expected term of the Stock Options.
Whereas the Black-Scholes model requires a single spot rate for instruments with a term matching the expected life of the option at the valuation date, the binomial lattice model allows for the use of different rates for each year over the contractual term of the option.


| 2017 2016 2015 | Risk-free interest rate | Weighted average volatility | Dividend yield | Expected years until exercise |


2.
New Accounting Standards Effective January 1, 2003, Marathon adopted Statement of Financial Accounting Standards No.143
“Accounting for Asset Retirement Obligations” (“SFAS No.143”).
This statement requires that the fair value of an asset retirement obligation be recognized in the period in which it is incurred if a reasonable estimate of fair value can be made.
The present value of the estimated asset retirement cost is capitalized as part of the carrying amount of the long-lived asset.
Previous accounting standards used the units-of-production method to match estimated future retirement costs with the revenues generated from the producing assets.
In contrast, SFAS No.143 requires depreciation of the capitalized asset retirement cost and accretion of the asset retirement obligation over time.
The depreciation will generally be determined on a units-of-production basis over the life of the field, while the accretion to be recognized will escalate over the life of the producing assets, typically as production declines.
For Marathon, asset retirement obligations primarily relate to the abandonment of oil and gas producing facilities.
While assets such as refineries, crude oil and product pipelines, and marketing assets have retirement obligations covered by SFAS No.143, certain of those obligations are not recognized since the fair value cannot be estimated due to the uncertainty of the settlement date of the obligation.
The transition adjustment related to adopting SFAS No.143 on January 1, 2003, was recognized as a cumulative effect of a change in accounting principle.
The cumulative effect on net income of adopting SFAS No.143 was a net favorable effect of $4 million, net of tax of $4 million.
At the time of adoption, total assets increased $120 million, and total liabilities increased $116 million.
The amounts recognized upon adoption are based upon numerous estimates and assumptions, including future retirement costs, future recoverable quantities of oil and gas, future inflation rates and the credit-adjusted risk-free interest rate.
Changes in asset retirement obligations during the year were:


| December 31, | 2011 | (In millions) | Fund Groupings: | Equity | Balanced | Bond | Money Market | Specialty | Total |


| 2014: High Low | January 1, 2014 to March 31, 2014 | April 1, 2014 to June 30, 2014 | July 1, 2014 to September 30, 2014 | October 1, 2014 to December 31, 2014 | 2013: | January 1, 2013 to March 31, 2013 | April 1, 2013 to June 30, 2013 | July 1, 2013 to September 30, 2013 | October 1, 2013 to December 31, 2013 |


| Operating Subsidiary: A.M. Best Standard & Poor's Moody's | Everest Re | Bermuda Re | Ireland Re | Everest National | Everest Indemnity | Everest Security | Everest International Assurance, Ltd. | Everest International | Everest Canada | Everest Denali | Everest Premier |


| Years Ended December 31, | 2017 | Net income | Less: Net income attributable to noncontrolling interests | Net income attributable to Ameriprise Financial | Basic: Weighted-average common shares outstanding | Effect of potentially dilutive nonqualified stock options and other share-based awards | Diluted: Weighted-average common shares outstanding | Basic | Diluted |


| Dollars in millions December 31 2015 December 312014 | Nonperforming loans | Total commercial lending | Total consumer lending (a) | Total nonperforming loans (b) | OREO and foreclosed assets | Other real estate owned (OREO) | Foreclosed and other assets | Total OREO and foreclosed assets (c) | Total nonperforming assets | Nonperforming loans to total loans | Nonperforming assets to total loans, OREO and foreclosed assets | Nonperforming assets to total assets | Interest on nonperforming loans | Computed on original terms | Recognized prior to nonperforming status |


| Payments (Receipts) (In Millions) | Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas |


| Maximum potential amount of future payments | In billions of dollars | Financial standby letters of credit | Performance guarantees | Derivative instruments deemed to be guarantees | Guarantees of collection of contractual cash flows | Loans sold with recourse | Securities lending indemnifications | Credit card merchant processing | Custody indemnifications and other | Total |


| Years Ended December 31, | 2011 | GAAP | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Premiums | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest credited to fixed accounts | Benefits, claims, losses and settlement expenses | Amortization of deferred acquisition costs | Interest and debt expense | General and administrative expense | Total expenses | Income from continuing operations before income tax provision | Income tax provision | Income from continuing operations | Loss from discontinued operations, net of tax | Net income | Less: Net income (loss) attributable to non- controlling interests | Net income attributable to Ameriprise Financial |


| 2006 2005 | (In thousands) | December 31: | Gross unrealized gains | Gross unrealized losses | Year ended December 31: | Average gross unrealized gains | Average gross unrealized losses |


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 8Commitments and Contingencies (Continued) provide renewal options for terms of 3 to 7 additional years.
Leases for retail space are for terms of 5 to 20 years, the majority of which are for 10 years, and often contain multi-year renewal options.
As of September 29, 2007, the Companys total future minimum lease payments under noncancelable operating leases were $1.4 billion, of which $1.1 billion related to leases for retail space.
Rent expense under all operating leases, including both cancelable and noncancelable leases, was $151 million, $138 million, and $140 million in 2007, 2006, and 2005, respectively.
Future minimum lease payments under noncancelable operating leases having remaining terms in excess of one year as of September 29, 2007, are as follows (in millions):


Gains on Level 3 commodity derivatives recognized in earnings for the year ended Dec.  31, 2008, include $3.7 million of net unrealized gains relating to commodity derivatives held at Dec.  31, 2008.
Realized and unrealized gains and losses on commodity trading activities are included in electric revenues.
Realized and unrealized gains and losses on short-term wholesale activities reflect the impact of regulatory recovery and are deferred as regulatory assets and liabilities.
Realized and unrealized gains and losses on nuclear decommissioning fund investments are deferred as a component of a nuclear decommissioning regulatory asset.16.


Net Operating Revenues Year Ended December 31, 2014 versus Year Ended December 31, 2013 The Company’s net operating revenues decreased $856 million, or 2 percent.
The following table illustrates, on a percentage basis, the estimated impact of key factors resulting in the increase (decrease) in net operating revenues for each of our operating segments:


Reserves for Asbestos and Environmental Losses and LAE.
At December 31, 2012, the Company’s gross reserves for A&E claims represented 4.4% of its total reserves.
The Company’s A&E liabilities stem from Mt.
McKinley’s direct insurance business and Everest Re’s assumed reinsurance business.
There are significant uncertainties in estimating the amount of the Company’s potential losses from A&E claims and ultimate values cannot be estimated using traditional reserving techniques.
See ITEM 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Asbestos and Environmental Exposures” and Item 8, “Financial Statements and Supplementary Data” - Note 3 of Notes to Consolidated Financial Statements.
Mt.
McKinley’s book of direct A&E exposed insurance policies is relatively small and homogenous.
It arises from a limited period, from 1975 to 1984.
The book was principally excess liability, thereby limiting exposure analysis to a limited number of policies and forms.
As a result of this focused structure, the Company believes that it is able to comprehensively analyze its exposures, allowing it to identify, analyze and actively monitor those claims which have unusual exposure, including policies on which it may be exposed to pay expenses in addition to policy limits or on which non-products coverage may be contended.
There can be no assurance that reserves for, and losses from, claim obligations will not increase in the future, possibly by a material amount.
However, we believe that our existing reserves and reserving methodologies lessen the probability that any such increase would have a material adverse effect on our financial condition, results of operations or cash flows.
In this context, we note that over the past 10 years, our calendar year operations have been affected by effects from prior period reserve re-estimates, ranging from a favorable $30.9 million in 2010, representing 0.4% of the net prior period reserves for the year in which the adjustment was made, to an unfavorable $249.4 million in 2004, representing 4.8% of the net prior period reserves for the year in which the adjustment was made.
We have included ranges for loss reserve estimates determined by our actuaries, which have been developed through a combination of objective and subjective criteria.
Our presentation of this information may not be directly comparable to similar presentations of other companies as there are no consistently applied actuarial or accounting standards governing such presentations.
Our recorded reserves are an aggregation of our best point estimates for approximately 200 reserve groups and reflect our best point estimate of our liabilities.
Our actuarial methodologies develop point estimates rather than ranges and the ranges are developed subsequently based upon historical and prospective variability measures.
The following table below represents the reserve levels and ranges for each of our business segments for the period indicated.


| (in millions of U.S. dollars, except for percentages) Long-tail Short-tail Total % of net unpaid reserves* | 2008 | Insurance – North American | Insurance – Overseas General | Global Reinsurance | Total | 2007 | Insurance – North American** | Insurance – Overseas General | Global Reinsurance*** | Total |


| Years Ended June 30, | 2009 | ($ in millions) | Interest expense on notes payable to ADP affiliated parties | Interest expense on borrowings | Interest income | Foreign currency exchange (gain) loss | Gain from purchase of senior notes | Other | Other expenses, net |


| December 31, 2009 December 31, 2008 | Amortized Cost | (in millions) | Short-term Investments and Cash Equivalents | Fixed Maturities: | Corporate Securities | Commercial Mortgage-Backed | Residential Mortgage-Backed | Asset Backed Securities | Foreign Government | U.S. Government | Total Fixed Maturities | Equity Securities | Total trading account assets supporting insurance liabilities |


| 2015 Quarters 2014 Quarters | (Dollars in millions) | Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis | Net interest income | Fully taxable-equivalent adjustment | Net interest income on a fully taxable-equivalent basis | Reconciliation of total revenue, net of interest expense to total revenue, net of interest expense on a fully taxable-equivalent basis | Total revenue, net of interest expense-2 | Fully taxable-equivalent adjustment | Total revenue, net of interest expense on a fully taxable-equivalent basis | Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis | Income tax expense (benefit)(2) | Fully taxable-equivalent adjustment | Income tax expense (benefit) on a fully taxable-equivalent basis | Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity | Common shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible common shareholders’ equity | Reconciliation of average shareholders’ equity to average tangible shareholders’ equity | Shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible shareholders’ equity | Reconciliation of period-end common shareholders’ equity to period-end tangible common shareholders’ equity | Common shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible common shareholders’ equity | Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity | Shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible shareholders’ equity | Reconciliation of period-end assets to period-end tangible assets | Assets | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible assets | Year Ended December 31 | Beginning balance | Warranty expense | Payments | Adjustments* | Ending balance |


| December 31 | Nonperforming   Loans and   Foreclosed   Properties-1 | (Dollars in millions) | Commercial real estate – non-homebuilder | Office | Multi-family rental | Shopping centers/retail | Industrial/warehouse | Multi-use | Hotels/motels | Land and land development | Other-3 | Total non-homebuilder | Commercial real estate – homebuilder | Total commercial real estate |


| in thousands Level 11 Level 21 Level 31 Total | Asset Category | Debt securities | Investment funds | Commodity funds | Equity funds | Short-term funds | Venture capital and partnerships | Total pension plan assets | in thousands | Asset Category | Debt securities | Investment funds | Commodity funds | Equity funds | Short-term funds | Venture capital and partnerships | Total pension plan assets |


| (Dollars in millions) Average Maximum Minimum | 2001: | Foreign exchange products | Interest rate products | 2000: | Foreign exchange products | Interest rate products |


| Year EndedDecember 31, 2015 Year EndedDecember 31, 2014 Year EndedDecember 31, 2013 | Dollars inMillions | Notebooks/Mobile Devices | Netcomm Products | Enterprise and Data Storage (Including Drives) | Other Hardware | Software | Services | Other-1 | Total Net sales |


(8) We have incurred other various expenses from specific events or projects that we consider highly variable or have a significant impact to our operating results that we have excluded from our non-GAAP financial measures.
This includes legal entity and operational restructuring as well as our costs of complying with our DPA with the U. S.  government related to certain FCPA matters involving Biomet and certain of its subsidiaries.
Under the DPA, which has a three-year term, we are subject to oversight by an independent compliance monitor, which monitorship commenced in July 2017.
The excluded costs include the fees paid to the independent compliance monitor and to external legal counsel assisting in the matter.
(9) Represents the tax effects on the previously specified items.
The tax effect for the U. S.  jurisdiction is calculated based on an effective rate considering federal and state taxes, as well as permanent items.
For jurisdictions outside the U. S. , the tax effect is calculated based upon the statutory rates where the items were incurred.
(10) The 2016 period includes negative effects from finalizing the tax accounts for the Biomet merger.
Under the applicable U. S.  GAAP rules, these measurement period adjustments are recognized on a prospective basis in the period of change.
(11) The 2017 Tax Act resulted in a net favorable provisional adjustment due to the reduction of deferred tax liabilities for unremitted earnings and revaluation of deferred tax liabilities to a 21 percent rate, which was partially offset by provisional tax charges related to the toll charge provision of the 2017 Tax Act.
In 2018, we finalized our estimates of the effects of the 2017 Tax Act based upon final guidance issued by U. S.  tax authorities.
(12) Other certain tax adjustments in 2018 primarily related to changes in tax rates on deferred tax liabilities recorded on intangible assets recognized in acquisition-related accounting and adjustments from internal restructuring transactions that provide us access to offshore funds in a tax efficient manner.
In 2017, other certain tax adjustments relate to tax benefits from lower tax rates unrelated to the impact of the 2017 Tax Act, net favorable resolutions of various tax matters and net favorable adjustments from internal restructuring transactions.
The 2016 adjustment primarily related to a favorable adjustment to certain deferred tax liabilities recognized as part of acquisition-related accounting and favorable resolution of certain tax matters with taxing authorities offset by internal restructuring transactions that provide us access to offshore funds in a tax efficient manner.
(13) Diluted share count used in Adjusted Diluted EPS:


Off-Balance Sheet Arrangements We have no off-balance sheet debt or similar obligations, other than financial assurance instruments and operating leases, that are not classified as debt.
We do not guarantee any third-party debt.


| December 31,2006 | Bank of America Corporation | Senior Debt | Moody’s | Standard & Poor’s-1 | Fitch, Inc.-2 | Net Charge-offs/Losses | (Dollars in millions) | Held basis | Residential mortgage | Home equity | Discontinued real estate | Credit card – domestic | Credit card – foreign | Direct/Indirect consumer | Other consumer | Total held | Supplemental managed basis data | Credit card – domestic | Credit card – foreign | Total credit card – managed |


| December 31, 2016 | Less than 12 Months | (dollars in millions) | State and political subdivisions | Mortgage-backed securities: | Federal agencies and U.S. government sponsored entities | Other/non-agency | Total mortgage-backed securities | Total | December 31, 2015 | Less than 12 Months | (dollars in millions) | State and political subdivisions | US Treasury and other | Mortgage-backed securities: | Federal agencies and U.S. government sponsored entities | Other/non-agency | Total mortgage-backed securities | Total |


| 2014 2013 | Indefinite-life intangible asset—Pullmantur trademarks and trade names | Foreign currency translation adjustment | Total |


| Account Party/Borrower(s) Expiration Capacity Letter of   Credit   Issuances Drawdowns Unused   Commitments Maturity   (Years) | (In millions) | MetLife, Inc. | MetLife, Inc. | Exeter Reassurance Company Ltd., MetLife, Inc., & Missouri Reinsurance (Barbados), Inc. | Exeter Reassurance Company Ltd. | MetLife Reinsurance Company of South Carolina & MetLife, Inc. | MetLife Reinsurance Company of Vermont & MetLife, Inc. | MetLife Reinsurance Company of Vermont & MetLife, Inc. | Total |


Depreciation on capital leases is recorded as depreciation expense in our results of operations.
As of May 27, 2018, we have issued guarantees and comfort letters of $540.8 million for the debt and other obligations of consolidated subsidiaries, and guarantees and comfort letters of $167.3 million for the debt and other obligations of non-consolidated affiliates, mainly CPW.
In addition, off-balance sheet arrangements are generally limited to the future payments under non-cancelable operating leases, which totaled $559.3 million as of May 27, 2018.


| Three Months Ended | Dec. 31, 2018 | (Unaudited, in thousands) | Reconciliation of Net Income (Loss) to Non-GAAP Net Income: | Net income (loss) | Exclude: Provision (benefit) for income taxes | Income (loss) before income taxes | Stock-based compensation expense | Amortization of acquired intangible assets | Non-cash interest expense related to convertible notes | Impairment of investments in privately-held companies | Restructuring charges and one-time nonrecurring gain | Non-GAAP income before income taxes | Non-GAAP provision for income taxes | Non-GAAP net income |


| Three Months Ended During 2008 | March 31 | (in thousands, except share data, unaudited) | Total revenues | Income before income taxes, equity income from unconsolidated joint ventures and minority interests' share in earnings | Total discontinued operations | Net income applicable to common shares | Dividends paid per common share | Basic earnings per common share | Diluted earnings per common share |


| (Amounts in millions) 2013 2012 2011 | Unrecognized tax benefits at beginning of year | Gross increases – tax positions in prior periods | Gross decreases – tax positions in prior periods | Gross increases – tax positions in the current period | Settlements with taxing authorities | Lapsing of statutes of limitations | Unrecognized tax benefits at end of year |


| Refinery Utilization | 2008 | HOVENSA | Crude | Fluid catalytic cracker | Coker | Port Reading |


Managements discussion and analysis 180 JPMorgan Chase & Co. /2012 Annual Report ?
A 50 basis point deterioration in forecasted credit card loss rates could imply an increase to modeled annualized credit card loan loss estimates of approximately $800 million.  ?
A one-notch downgrade in the Firms internal risk ratings for its entire wholesale loan portfolio could imply an increase in the Firms modeled loss estimates of approximately $2.1 billion.
The purpose of these sensitivity analyses is to provide an indication of the isolated impacts of hypothetical alternative assumptions on modeled loss estimates.
The changes in the inputs presented above are not intended to imply managements expectation of future deterioration of those risk factors.
These analyses are not intended to estimate changes in the overall allowance for loan losses, which would also be influenced by the judgment management applies to the modeled loss estimates to reflect the uncertainty and imprecision of these modeled loss estimates based on then current circumstances and conditions.
It is difficult to estimate how potential changes in specific factors might affect the allowance for credit losses because management considers a variety of factors and inputs in estimating the allowance for credit losses.
Changes in these factors and inputs may not occur at the same rate and may not be consistent across all geographies or product types, and changes in factors may be directionally inconsistent, such that improvement in one factor may offset deterioration in other factors.
In addition, it is difficult to predict how changes in specific economic conditions or assumptions could affect borrower behavior or other factors considered by management in estimating the allowance for credit losses.
Given the process the Firm follows in evaluating the risk factors related to its loans, including risk ratings, home price assumptions, and credit card loss estimates, management believes that its current estimate of the allowance for credit loss is appropriate.
Fair value of financial instruments, MSRs and commodities inventory JPMorgan Chase carries a portion of its assets and liabilities at fair value.
The majority of such assets and liabilities are measured at fair value on a recurring basis.
Certain assets and liabilities are measured at fair value on a nonrecurring basis, including certain mortgage, home equity and other loans, where the carrying value is based on the fair value of the underlying collateral.
Assets measured at fair value The following table includes the Firms assets measured at fair value and the portion of such assets that are classified within level 3 of the valuation hierarchy.
For further information, see Note 3 on pages 196214 of this Annual Report.


Electric Supply The electricity O&R sold to its customers in 2013 was purchased under firm power contracts or through the wholesale electricity markets administered by the NYISO and PJM.
The company expects that these resources will again be adequate to meet the requirements of its customers in 2014.
O&R does not own any electric generating capacity.


| Immediate change in rates | December 31, (in millions) | 2010 | 2009 |


| Year Ended December 2018 Year Ended December 2017 | $ in millions | Changes in the allowance for credit losses | Beginning balance | Net charge-offs | Provision | Other | Ending balance | Allowance for losses by impairment methodology | Specific | Portfolio | PCI | Total |


| Jurisdiction Gross Loss Carryforward Expiration Period | U.S. State Net Operating Loss | U.S. Federal Capital Loss | Foreign Net Operating Loss | Foreign Capital Loss |