THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements The firm is unable to develop an estimate of the maximum payout under these guarantees and indemnifications.
However, management believes that it is unlikely the firm will have to make any material payments under these arrangements, and no material liabilities related to these guarantees and indemnifications have been recognized in the consolidated statements of financial condition as of both December 2017 and December 2016.
Other Representations, Warranties and Indemnifications.
The firm provides representations and warranties to counterparties in connection with a variety of commercial transactions and occasionally indemnifies them against potential losses caused by the breach of those representations and warranties.
The firm may also provide indemnifications protecting against changes in or adverse application of certain U. S.  tax laws in connection with ordinary-course transactions such as securities issuances, borrowings or derivatives.
In addition, the firm may provide indemnifications to some counterparties to protect them in the event additional taxes are owed or payments are withheld, due either to a change in or an adverse application of certain non-U.
S.  tax laws.
These indemnifications generally are standard contractual terms and are entered into in the ordinary course of business.
Generally, there are no stated or notional amounts included in these indemnifications, and the contingencies triggering the obligation to indemnify are not expected to occur.
The firm is unable to develop an estimate of the maximum payout under these guarantees and indemnifications.
However, management believes that it is unlikely the firm will have to make any material payments under these arrangements, and no material liabilities related to these arrangements have been recognized in the consolidated statements of financial condition as of both December 2017 and December 2016.
Guarantees of Subsidiaries.
Group Inc.  fully and unconditionally guarantees the securities issued by GS Finance Corp. , a wholly-owned finance subsidiary of the firm.
Group Inc.  has guaranteed the payment obligations of Goldman Sachs & Co.  LLC (GS&Co. )
and GS Bank USA, subject to certain exceptions.
In addition, Group Inc.  guarantees many of the obligations of its other consolidated subsidiaries on a transaction-by-transaction basis, as negotiated with counterparties.
Group Inc.  is unable to develop an estimate of the maximum payout under its subsidiary guarantees; however, because these guaranteed obligations are also obligations of consolidated subsidiaries, Group Inc. s liabilities as guarantor are not separately disclosed.
Note 19.


Employee Stock Purchase Plan We have an Employee Stock Purchase Plan under which the sale of 2.4 million shares of our common stock has been authorized.
Employees may designate up to the lesser of $25,000 or 20% of their annual compensation for the purchase of stock.
The price for shares purchased under the plan is 85% of the market value on the last day of the quarterly purchase period.
As of May 31, 2010, 0.9 million shares had been issued under this plan, with 1.5 million shares reserved for future issuance.


| As of December 31 (dollars in millions) 2014 2013 2012 2011 2010 | Originated non-performing loans: | Commercial: | Commercial real estate | Commercial and industrial | Equipment financing | Total | Retail: | Residential mortgage | Home equity | Other consumer | Total | Total originated non-performing loans -1 | REO: | Residential | Commercial | Total REO | Repossessed assets | Total non-performing assets | Originated non-performing loans as a percentage oforiginated loans | Non-performing assets as a percentage of: | Originated loans, REO and repossessed assets | Tangible stockholders’ equity andoriginated allowance for loan losses |


The following table summarizes the consolidated statements of cash flows for the years ended December 31, 2017, 2016 and 2015:


| AAA AA A BBB BB and Below Total | Amortized  Cost | 2003 & Prior | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | Total | Credit protection | For the years ended December 31, | 2011 | OTTI losses recognized in OCI | Changes in fair value and/or sales | Tax and deferred acquisition costs | Change in non-credit impairments recognized in OCI |


| Con Edison CECONY | (Millions of Dollars) | Balance at January 1, | Additions based on tax positions related to the current year | Additions based on tax positions of prior years | Reductions for tax positions of prior years | Reductions from expiration of statute of limitations | Settlements | Balance at December 31, |


| 2010  Quarter ended | March 31 | Revenues | Gross profit | Net income (loss) | Basic earnings per share | Diluted earnings per share |


| Calendar year: Pre-tax catastrophe losses | (Dollars in millions) | 2010 | 2009 | 2008 | 2007 | 2006 |


| NRG Owned Projects Location PPA MW(a) COD or Expected COD Status | Guam | Ivanpah(b) | CVSR(c) |


| Year Ended March 31, Potential Dilutive Shares from Exercise of Common Stock Options | 2001 | 2002 | 2003 |


| Television Service InternationalSubscribers/Viewers(millions) | Quest | Nordic broadcast networks(a) | Giallo | Frisbee | Focus | K2 | DeeJay TV | Discovery HD World | Shed | Discovery History | Discovery World | Discovery en Espanol (U.S.) | Discovery Familia (U.S.) |


| Year Ended December 31, | 2006 | Reconstructive | Knees | Hips | Extremities | Dental | Total | Trauma | Spine | OSP and other | Total |


| Target Allocation Range TargetPercentage ofPlan Assets byStrategyatDecember 31 | PNC Pension Plan | Asset Category | Domestic Equity | International Equity | Private Equity | Total Equity | Domestic Fixed Income | High Yield Fixed Income | Total Fixed Income | Real estate | Other | Total |


| Years ended December 31, 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 | (In thousands, except per share, Team Members, stores and ratio data) | INCOME STATEMENT DATA: | Sales ($) | Cost of goods sold, including warehouse and distribution expenses | Gross profit | Selling, general and administrative expenses | Former CSK officer clawback | Legacy CSK Department of Justice investigation charge | Operating income | Write-off of asset-based revolving credit agreement debt issuance costs | Termination of interest rate swap agreements | Gain on settlement of note receivable | Other income (expense), net | Total other income (expense) | Income before income taxes | Provision for income taxes | Net income ($) | Basic earnings per common share: | Earnings per share – basic ($) | Weighted-average common shares outstanding – basic | Earnings per common share -assuming dilution: | Earnings per share – assuming dilution ($) | Weighted-average common shares outstanding – assuming dilution | SELECTED OPERATING DATA: | Number of Team Members at year end | Number of stores at year end (a) | Total store square footage at year end (b) | Sales per weighted-average store (c)($) | Sales per weighted-average square foot (b)(d)($) | Percentage increase in comparable store sales (e)(f) |


| (In thousands) WeightedAverageAmortizationPeriod AmortizationMethod Cost AccumulatedAmortization NetCarryingAmount | March 2018 | Amortizable intangible assets: | Customer relationships | License agreements | Trademarks | Other | Amortizable intangible assets, net | Indefinite-lived intangible assets: | Trademarks and trade names | Intangible assets, net | (In thousands) | December 2017 | Amortizable intangible assets: | Customer relationships | License agreements | Trademarks | Other | Amortizable intangible assets, net | Indefinite-lived intangible assets: | Trademarks and trade names | Intangible assets, net |


| December 31, | 2010 | Estimated Fair Value | (In millions) | Government and agency fixed maturity securities: | United States -1 | Japan | Mexico |


| Earnings to Fixed Charges (Times) | 2006 | Con Edison | CECONY |


Company Stock Performance The following graph shows a comparison of cumulative total shareholder return, calculated on a dividend-reinvested basis, for the Company, the S&P 500 Index, the S&P Information Technology Index and the Dow Jones U. S.  Technology Supersector Index for the five years ended September 29, 2018.
The graph assumes $100 was invested in each of the Company’s common stock, the S&P 500 Index, the S&P Information Technology Index and the Dow Jones U. S.  Technology Supersector Index as of the market close on September 27, 2013.
Note that historic stock price performance is not necessarily indicative of future stock price performance.


Transfers of Financial Assets with Risk Retained through Derivatives The Corporation enters into certain transactions involving the transfer of financial assets that are accounted for as sales where substantially all of the economic exposure to the transferred financial assets is retained by the Corporation through a derivative agreement with the initial transferee.
These transactions are accounted for as sales because the Corporation does not retain control over the assets transferred.
Through December 31, 2015, the Corporation transferred $7.9 billion of primarily non-U.
S.  government-guaranteed mortgagebacked securities (MBS) to a third-party trust.
The Corporation received gross cash proceeds of $7.9 billion at the transfer dates.
At December 31, 2015, the fair value of these securities was $7.2 billion.
The Corporation simultaneously entered into derivatives with those counterparties whereby the Corporation retained certain economic exposures to those securities (e. g. , interest rate and/or credit risk).
A derivative asset of $24 million and a liability of $29 million were recorded at December 31, 2015 and are included in credit derivatives in the derivative instruments table on page 147.
The economic exposure retained by the Corporation is typically hedged with interest rate swaps and interest rate swaptions.


| Year Ended December 31, | (dollars in millions) | Salaries and employee benefits | Outside services | Occupancy | Equipment expense | Amortization of software | Goodwill impairment | Other operating expense | Noninterest expense |


| 2013 2012 2011 | Weighted average coupon of long-term borrowings at period-end-1 | Effective average borrowing rate for long-term borrowings after swaps at period-end-1 |


| advertising investor relations | brand consultancy | corporate social responsibility consulting | crisis communications | custom publishing | data analytics | database management | direct marketing | entertainment marketing | environmental design | experiential marketing | field marketing | financial/corporate business-to-business advertising | graphic arts | healthcare communications | instore design | interactive marketing |


LIQUIDITY AND CAPITAL RESOURCES We maintained a strong financial position throughout fiscal year 2019.
As of 30 September 2019, our consolidated balance sheet included cash and cash items of $2,248.7.
We continue to have consistent access to commercial paper markets, and cash flows from operating and financing activities are expected to meet liquidity needs for the foreseeable future.
As of 30 September 2019, we had $971.5 of foreign cash and cash items compared to a total amount of cash and cash items of $2,248.7.
As a result of the Tax Act, we do not expect that a significant portion of our foreign subsidiaries' and affiliates' earnings will be subject to U. S.  income tax upon subsequent repatriation to the United States.
The repatriation of these earnings may be subject to foreign withholding and other taxes depending on the country in which the subsidiaries and affiliates reside.
However, because we have significant current investment plans outside the U. S. , it is our intent to permanently reinvest the majority of our foreign cash and cash items that would be subject to additional taxes outside the U. S.  Refer to Note 23, Income Taxes, for additional information.


| December 31, | 2008 | (In millions) | Projected benefit obligation | Accumulated benefit obligation | Fair value of plan assets |


| Year Ended December 31, | 2010 | (In thousands) | Total segment operating profit | Add (less): | Corporate & other(a) | Restructuring and other charges | Port de Bouc facility disposition charges | GAAP Operating profit | Total segment income | Add (less): | Corporate & other | Restructuring and other charges | Port de Bouc facility disposition charges | Interest and financing expenses | Other income (expense), net | Income tax (expense) benefit | GAAP Net income attributable to Albemarle Corporation | Year Ended December 31, | 2009 | (In thousands) | Total segment operating profit | Add (less): | Corporate & other(a) | Restructuring and other charges | Port de Bouc facility disposition charges | GAAP Operating profit | Total segment income | Add (less): | Corporate & other | Restructuring and other charges | Port de Bouc facility disposition charges | Interest and financing expenses | Other (expenses) income, net | Income tax benefit | GAAP Net income attributable to Albemarle Corporation |


(1) Represents the net impact of (a) gains resulting from reclassification of noncredit impairment losses for fixed maturities with bifurcated OTTI from net realized capital gains (losses) to OCI and (b) losses resulting from reclassification of previously recognized noncredit impairment losses from OCI to net realized capital gains (losses) for fixed maturities with bifurcated OTTI that had additional credit losses or fixed maturities that previously had bifurcated OTTI that have now been sold or are intended to be sold.
We estimate the amount of the credit loss component of a fixed maturity security impairment as the difference between amortized cost and the present value of the expected cash flows of the security.
The present value is determined using the best estimate cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security.
The methodology and assumptions for establishing the best estimate cash flows vary depending on the type of security.
The ABS cash flow estimates are based on security specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity and prepayment speeds and structural support, including subordination and guarantees.
The corporate security cash flow estimates are derived from scenario-based outcomes of expected corporate restructurings or liquidations using bond specific facts and circumstances including timing, security interests and loss severity.
The following table provides a rollforward of accumulated credit losses for fixed maturities with bifurcated credit losses.
The purpose of the table is to provide detail of (1) additions to the bifurcated credit loss amounts recognized in net realized capital gains (losses) during the period and (2) decrements for previously recognized bifurcated credit losses


CMS Energy’s estimate of response activity costs and the timing of expenditures could change if there are changes in circumstances or assumptions used in calculating the liability.
Although a liability for its present estimate of remaining response activity costs has been recorded, CMS Energy cannot predict the ultimate financial impact or outcome of this matter.
CMS Energy and Consumers classify fair value measurements within the fair value hierarchy based on the lowest level of input that is significant to the fair value measurement in its entirety.
Assets and Liabilities Measured at Fair Value on a Recurring Basis Presented in the following table are CMS Energy’s and Consumers’ assets and liabilities recorded at fair value on a recurring basis:


| Vesting Condition Date Vested Number of Shares Vested Compensation Cost Recognized Upon Vesting Shares Withheld for Taxes1 | Market-based (TEV = $5.9 billion) | Market-based (TEV = $6.2 billion) |


| Year Ended December 31, | 2016 | Consolidated Statement of Income Data-1 | Revenues: | Transaction and clearing, net-2 | Data services | Listings | Other revenues | Total revenues | Transaction-based expenses-2 | Total revenues, less transaction-based expenses | Operating expenses: | Compensation and benefits | Professional services | Acquisition-related transaction and integration costs-3 | Technology and communication | Rent and occupancy | Selling, general and administrative | Depreciation and amortization | Total operating expenses | Operating income | Other expense, net-4 | Income from continuing operations before income tax expense | Income tax expense | Income from continuing operations | Income (loss) from discontinued operations, net of tax(5) | Net income | Net income attributable to non-controlling interest | Net income attributable to ICE-6 | Basic earnings (loss) per share attributable to ICE common shareholders(7): | Continuing operations-6 | Discontinued operations-5 | Basic earnings per share | Basic weighted average common shares outstanding-8 | Diluted earnings (loss) per share attributable to ICE common shareholders(7): | Continuing operations-6 | Discontinued operations-5 | Diluted earnings per share | Diluted weighted average common shares outstanding-8 | Dividend per share-7 |


securities and the resulting net unrealized losses as of December 31, 2011 to be temporary and not the result of any material changes in the credit characteristics of the securities.
Additional information about our assessment of impairment is provided in note 3 to the consolidated financial statements included under Item 8.
In late 2010, several major U. S.  financial institutions participated in a mortgage foreclosure moratorium with respect to residential mortgages.
While the moratorium has been lifted, the residential mortgage servicing environment remains challenging, and the timeline to liquidate distressed loans continues to extend.
The rate at which distressed residential mortgages are liquidated may affect, among other things, our investment securities portfolio.
Such effects could include the timing of cash flows or the credit quality associated with the mortgages collateralizing certain of our residential mortgage-backed securities, which, accordingly, could result in the recognition of additional other-than-temporary impairment in future periods.
Loans and Leases The following table presents U. S.  and non-U.
S.  loans and leases, by segment, and aggregate average loans and leases, as of and for the years ended December 31 (excluding the allowance for loan losses):


| Year endedDecember 31Dollars in millions Charge-offs Recoveries Net Charge-offs Percent of Average Loans | 2011 | Commercial | Commercial real estate | Equipment lease financing | Home equity | Residential real estate | Credit card | Other consumer | Total | 2010 | Commercial | Commercial real estate | Equipment lease financing | Home equity | Residential real estate | Credit card | Other consumer | Total |


PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 5.
VARIABLE INTEREST ENTITIES (continued) Consolidated Variable Interest Entities for which the Company is not the Sponsor The Company is the primary beneficiary of certain VIEs in which the Company has invested, as part of its investment activities, but over which the Company does not exercise control and is not the sponsor.
Included among these structured investments are structured investments issued by a VIE that manages yen-denominated investments coupled with cross-currency coupon swap agreements thereby creating synthetic dual currency investments.
The Companys position in the capital structure and/or relative size indicates that the Company is the primary beneficiary.
The Company has not provided material financial or other support that was not contractually required to these VIEs.
The table below reflects the carrying amount and balance sheet caption in which the assets and liabilities of consolidated VIEs for which the Company is not the sponsor are reported.
These liabilities primarily comprise obligations under debt instruments issued by the VIEs that are non-recourse to the Company.
The creditors of each consolidated VIE have recourse only to the assets of that VIE.
As reflected in the table below, total assets of consolidated VIEs for which the Company is not a sponsor decreased from December 31, 2008 to December 31, 2009, reflecting the deconsolidation of a VIE that manages investments in the European market.
The assets held by the VIE were distributed to the Company during March 2009.


| 2006 2005 2004 | Shares | Options outstanding, beginning of year | Options granted | Options exercised | Options expired/cancelled | Options outstanding, end of year | Shares exercisable, end of year | Restricted shares granted | Restricted shares vested | Restricted shares outstanding, end of year | Shares reserved for future option orrestricted stock grants, end of year |


| Years Ended December 31, | 2005 | Number of landfills owned or operated | Net investment, excluding non-depletable land (in millions) | Total estimated available disposal capacity (in millions of cubic yards) | Net investment per cubic yard | Landfill depletion and amortization expense (in millions) | Accretion expense (in millions) | 118.7 | Airspace consumed (in millions of cubic yards) | Depletion, amortization and accretion expense per cubic yard of airspace consumed |


| As of December 31 (dollars in millions) 2013 2012 2011 2010 2009 | Originated non-performing loans: | Commercial Banking: | Commercial real estate | Commercial and industrial | Equipment financing | Total | Retail: | Residential mortgage | Home equity | Other consumer | Total | Total originated non-performing loans -1 | REO: | Residential | Commercial | Total REO | Repossessed assets | Total non-performing assets | Originated non-performing loans as a percentage oforiginated loans | Non-performing assets as a percentage of: | Originated loans, REO and repossessed assets | Tangible stockholders’ equity andoriginated allowance for loan losses |


Employee Benefit Plans GII sponsors an employee retirement plan under which its employees may contribute up to 50% of their annual compensation subject to Internal Revenue Code maximum limitations and to which GII contributes a specified percentage of each participant’s annual compensation up to certain limits as defined in the Plan.
Additionally, GEL has a defined contribution plan under which its employees may contribute up to 5% of their annual compensation.
Both GII and GEL contribute an amount determined annually at the discretion of the Board of Directors.
During the years ended December 25, 2004, December 27, 2003, and December 28, 2002, expense related to these plans of $5,183, $4,197, and $2,728, respectively, was charged to operations.
Certain of the Company’s foreign subsidiaries participate in local defined benefit pension plans.
Contributions are calculated by formulas that consider final pensionable salaries.
Neither obligations nor contributions for the years ended December 25, 2004, December 27, 2003, and December 28, 2002 were significant.
The Company uses credit derivatives to purchase credit protection and to assume credit risk with respect to a single entity, referenced index, or asset pool.
The Company purchases credit protection through credit default swaps to economically hedge and manage credit risk of certain fixed maturity investments across multiple sectors of the investment portfolio.
The Company also enters into credit default swaps that assume credit risk as part of replication transactions.
Replication transactions are used as an economical means to synthetically replicate the characteristics and performance of assets that are permissible investments under the Company’s investment policies.
These swaps reference investment grade single corporate issuers and baskets, which include customized diversified portfolios of corporate issuers, which are established within sector concentration limits and may be divided into tranches which possess different credit ratings.
As of December 31, 2015 and 2014, the notional amount related to credit derivatives that purchase credit protection was $0.4 billion and $0.6 billion, respectively, while the fair value was $18 and $(6), respectively.
As of December 31, 2015 and 2014, the notional amount related to credit derivatives that assume credit risk was $2.5 billion and $1.5 billion, respectively, while the fair value was $(13) and $3, respectively.
For further information on credit derivatives, see Note 6 Investments and Derivative Instruments of Notes to Consolidated Financial Statements.
Investment Portfolio Risks and Risk Management Investment Portfolio Composition The following table presents the Company’s fixed maturities, AFS, by credit quality.
The following average credit ratings referenced throughout this section are based on availability, and are the midpoint of the applicable ratings among Moody’s, S&P, Fitch and Morningstar.
If no rating is available from a rating agency, then an internally developed rating is used.


| December 31,2008 December 31,2009 December 31,2010 December 31,2011 December 31,2012 | DISCA | DISCB | DISCK | S&P 500 | Peer Group |


Contributions and Projected Benefit Payments Pension contributions to funded plans and benefit payments for unfunded plans for fiscal year 2019 were $40.2.
Contributions for funded plans resulted primarily from contractual and regulatory requirements.
Benefit payments to unfunded plans were due primarily to the timing of retirements.
We anticipate contributing $30 to $40 to the defined benefit pension plans in fiscal year 2020.
These contributions are anticipated to be driven primarily by contractual and regulatory requirements for funded plans and benefit payments for unfunded plans, which are dependent upon timing of retirements.
Projected benefit payments, which reflect expected future service, are as follows:


| December 31, | Buy (Sell) | Chinese Renminbi | Brazilian Real | Taiwan Dollar | Japanese Yen | British Pound |


Performance Units and Performance Stock.
EOG has granted performance units and/or performance stock (Performance Awards) to its executive officers annually since 2012.
As more fully discussed in the grant agreements, the performance metric applicable to these performance-based grants is EOG's total shareholder return over a three-year performance period relative to the total shareholder return of a designated group of peer companies (Performance Period).
Upon the application of the performance multiple at the completion of the Performance Period, a minimum of 0% and a maximum of 200% of the Performance Awards granted could be outstanding.
Subject to the termination provisions set forth in the grant agreements and the applicable performance multiple, the grants of Performance Awards will generally "cliff" vest five years from the date of grant.
The fair value of the Performance Awards is estimated using a Monte Carlo simulation.
Stock-based compensation expense related to the Performance Awards totaled $11 million, $5 million and $9 million for the years ended December 31, 2016, 2015 and 2014, respectively.
At December 31, 2015, 405,000 Performance Awards were outstanding.
Upon completion of the Performance Period for the Performance Awards granted in 2012, a performance multiple of 200% was applied to the 2012 grants resulting in an additional grant of 142,556 Performance Awards in February 2016.
During the twelve-month period ended December 31, 2016, a total of 131,750 Performance Awards were granted.
A total of 134,016 Performance Awards were released during the twelve months ended December 31, 2016, with a total intrinsic value of $9.7 million, based upon the closing price of EOG's common stock on the release date.
Upon the application of the performance multiple at the completion of the remaining Performance Periods, a minimum of 151,096 and a maximum of 939,484 Performance Awards could be outstanding.
There were 545,290 Performance Awards outstanding as of December 31, 2016.
The total intrinsic value of Performance Awards outstanding at December 31, 2016 was $55.1 million.
Upon completion of the performance period for the Performance Awards granted in 2013, a performance multiple of 200% was applied to the 2013 grants resulting in an additional grant of 118,834 Performance Awards in February 2017.


| 2010 2009 2008 | Risk-free rate of return | Expected term (in years) | Expected volatility | Expected dividend yield | Weighted-average fair value per option granted |


1.
Net revenues related to the firms consolidated investments, previously reported in other net revenues within Investing & Lending, are now reported in equity securities and debt securities and loans, as results from these activities ($391 million for 2015) are no longer significant principally due to the sale of Metro in the fourth quarter of 2014.
Reclassifications have been made to previously reported amounts to conform to the current presentation.2.
Includes net provisions for litigation and regulatory proceedings of $4.01 billion (of which $3.37 billion was related to the agreement in principle with the RMBS Working Group) for 2015, $754 million for 2014 and $962 million for 2013.
See Note 27 for further information about this agreement in principle.3.
Includes charitable contributions that have not been allocated to the firms segments of $148 million for 2015, $137 million for 2014 and $155 million for 2013.4.
Includes $37 million of realized gains on available-for-sale securities.


| March 31, 2015 (in $000’s) | Beginning balance | Additions | Foreign currency translation impact | Ending balance |


| 2008 2007 | (in millions of U.S. dollars) | Case reserves | IBNR | Total |


| Common Equity Ratio (Percent of total capitalization) | 2006 | Con Edison | CECONY |


| 2007 2006 2005 % Change 2007 v 2006 % Change 2006 v 2005 | Avg. train speed (miles per hour) | Avg. terminal dwell time (hours) | Gross ton-miles (billions) | Revenue ton-miles (billions) | Operating ratio | Avg. full-time-equivalent employees | Customer satisfaction index | Payments Due by December 31, | Contractual ObligationsMillions of Dollars | Debt [a] | Operating leases | Capital lease obligations [b] | Purchase obligations [c] | Other post retirement benefits [d] | Income tax contingencies [e] | Total contractual obligations |


Incurred Losses and LAE.
The following table presents the incurred losses and LAE for the U. S.  Reinsurance segment for the periods indicated.
(Some amounts may not reconcile due to rounding. )
The current years attritional loss ratio improved by 7.9 points due to results from increased property quota share business.
We experienced $181.7 million of catastrophe loss development in 2006 which did not recur in 2007, which contributed another 14.6 points.
In addition, we had a greater amount of favorable reserve development related to prior years, which provided 7.0 points of improvement.
These favorable factors were partially mitigated by an 18.6 point increase driven by asbestos reserve strengthening.
Incurred losses and LAE decreased 42.5% to $851.2 million for 2006 compared to $1,479.6 million for 2005, primarily due to significantly reduced catastrophe losses, principally within the treaty property unit and decreased earned premiums.
The segment loss ratio improved by 39.6 points for 2006 compared to 2005.
The factors driving this change were a favorable 35.8 point decrease in catastrophe losses and a 5.1 point decrease in the attritional loss ratio.
Segment Expenses.
Commission and brokerage expenses increased by 9.8% to $327.2 million for 2007 from $298.1 million in 2006, principally due to an $18.9 million increase in contingent commissions and somewhat higher base ceding commissions, generally.
Segment other underwriting expenses for 2007 increased to $33.3 million from $24.9 million for 2006, principally due to the allocation of certain corporate charges to segments, which had been previously retained in corporate expenses.
Commission and brokerage decreased by 16.8% to $298.1 million in 2006 from $358.1 million in 2005, principally due to decreased earned premium volume and the mix of business.
Segment other underwriting expenses for 2006 increased nominally to $24.9 million from $24.0 million for 2005.


Commercial Operations Overview NRG seeks to maximize profitability and manage cash flow volatility through the marketing, trading and sale of energy, capacity and ancillary services into spot, intermediate and long-term markets and through the active management and trading of emissions allowances, fuel supplies and transportation-related services.
The Company's principal objectives are the realization of the full market value of its asset base, including the capture of its extrinsic value, the management and mitigation of commodity market risk and the reduction of cash flow volatility over time.
NRG enters into power sales and hedging arrangements via a wide range of products and contracts, including PPAs, fuel supply contracts, capacity auctions, natural gas derivative instruments and other financial instruments.
In addition, because changes in power prices in the markets where NRG operates are generally correlated to changes in natural gas prices, NRG uses hedging strategies that may include power and natural gas forward sales contracts to manage the commodity price risk primarily associated with the Company's coal and nuclear generation assets.
The objective of these hedging strategies is to stabilize the cash flow generated by NRG's portfolio of assets.
NRG also trades electric power, natural gas and related commodity and financial products, including forwards, futures, options and swaps, through its ownership of BETM, which is also an energy management service provider for primarily thirdparty generating assets.
Certain other NRG entities trade to a lesser extent, utilizing similar products as well as oil and weather products.
The Company seeks to generate profits from volatility in the price of electricity, capacity, fuels and transmission congestion by buying and selling contracts in wholesale markets under guidelines approved by the Company's risk management committee.


| Pension Other Benefits | 2014 | Discount rate | Rate of compensation increase | Initial healthcare trend rate | Ultimate healthcare trend rate |


| Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value | 2005 | Cash and Cash Equivalents | Debt Securities — Available for Sale | Total Cash and Investments | 2004 | Cash and Cash Equivalents | Debt Securities — Available for Sale | Total Cash and Investments |


| Years ended December 31, Federal State | 2007 to 2011 | 2012 to 2016 | 2017 to 2021 | 2022 to 2026 | Total |


| Year Ended December 31, | 2010 | Statement of Operations Data: | Revenue | Expenses: | Cost of operations | Depreciation, amortization and depletion | Accretion | Selling, general and administrative | Loss (gain) on disposition of assets and impairments, net | Restructuring charges | Operating income | Interest expense | Loss on extinguishment of debt | Interest income | Other income (expense), net | Income before income taxes | Provision for income taxes | Net income | Less: Income attributable to noncontrolling interests | Net income attributable to Republic Services, Inc. | Basic earnings per share attributable to Republic Services, Inc. stockholders: | Basic earnings per share | Weighted average common shares outstanding | Diluted earnings per share attributable to Republic | Services, Inc. stockholders: | Diluted earnings per share | Weighted average common and common equivalent shares outstanding | Cash dividends per common share | 2010 | Depreciation and amortization of property and equipment | Landfill depletion and amortization | Depreciation, amortization and depletion expense |


On July 25, 2008, we filed a lawsuit against Teva and Barr for infringement of four Sensipar?
patents.
The lawsuit is based on the Abbreviated New Drug Application (ANDA) filed by Teva and Barr which seeks approval to market generic versions of Sensipar?.
(See Note 10, Contingencies to the Consolidated Financial Statements. )
These generic versions could compete with Sensipar?
in the future.
Vectibix?
(panitumumab) Vectibix?
is our trademark for our first entirely human monoclonal antibody for the treatment of patients with EGFr expressing mCRC after disease progression on, or following fluoropyrimidine-, oxaliplatin- and irinotecan- containing chemotherapy regimens.
EGFr is a protein that plays an important role in cancer cell signaling and is over-expressed in many human cancers.
Vectibix?
is an entirely human monoclonal antibody that binds with high affinity to EGFrs and interferes with signals that might otherwise stimulate growth and survival of the cancer cell.
The goal of developing entirely human monoclonal antibodies is to offer effective targeted therapies with lessened risk of immune response against these agents.
Vectibix?
received FDA approval in September 2006.
On December 5, 2007, the European Commission granted a conditional marketing authorization for Vectibix?, which was renewed in December 2008, as a monotherapy for the treatment of patients with EGFr expressing mCRC with non-mutated (wild-type) KRAS genes after failure of standard chemotherapy regimens.
We acquired full ownership of Vectibix?
as part of our acquisition of Abgenix, Inc.  (Abgenix) in April 2006.
Nplate?
(romiplostim) On August 22, 2008, the FDA approved Nplate?, the first platelet producer for the treatment of thrombocytopenia in splenectomized (spleen removed) and non-splenectomized adults with chronic ITP.
Nplate?, the first FDA approved peptibody protein, works by raising and sustaining platelet counts.
On February 6, 2009, we announced that the European Commission granted marketing authorization for Nplate?
for the treatment of splenectomized adult chronic ITP patients who are refractory to other treatments (e. g.  corticosteroids, immunoglobulins).
In the EU, Nplate?
may also be considered as second line treatment for adult non-splenectomized ITP patients where surgery is contra-indicated.
Product candidates We are currently studying new product candidates, including denosumab, and currently marketed products for new indications, which, if approved, we expect will enter into highly competitive markets.
If successful, these product candidates will face substantial competition from products currently marketed as well as those under development by other biotechnology and pharmaceutical companies.
For example, the bone loss setting, in which denosumab would compete, is currently comprised of three therapeutic classes: bisphosphonates, selective estrogen receptor modulators and anabolic agents.
Competitive intensity will increase in the bone loss setting with the expected approval of new agents.
If denosumab is approved, we would need to significantly expand our sales and marketing capabilities to support its successful launch.
The following table reflects other companies and their currently marketed products that will compete with denosumab, if approved:


| (a) (b) (c) (d) | Period | 10/01/04 – 10/31/04 | 11/01/04 – 11/30/04 | 12/01/04 – 12/31/04 | Total: | Stockholder's Equity | (Dollars in millions) | Common stock: | Balance at beginning of year | Issuance(a) | Balance at end of year | Treasury common stock, at cost: | Balance at beginning of year | Repurchased | Reissued for: | Employee stock plans | Non-employee directors deferred compensation plan | Balance at end of year | Comprehensive Income | 2004 | Additional paid-in capital: | Balance at beginning of year | Common stock issuance(a) | Treasury common stock reissued | Balance at end of year | Unearned compensation: | Balance at beginning of year | Change during year | Balance at end of year | Retained earnings: | Balance at beginning of year | Net income | Dividends paid: (per share: $1.03 in 2004, $.96 in 2003 and $.92 in 2002) | Balance at end of year | Accumulated other comprehensive income (loss)(b): | Minimum pension liability adjustments: | Balance at beginning of year | Changes during year | Balance at end of year | Foreign currency translation adjustments: | Balance at beginning of year | Changes during year | Balance at end of year | Deferred gains (losses) on derivative instruments: | Balance at beginning of year | Reclassification of the cumulative effect adjustment into income | Changes in fair value | Reclassification to income | Balance at end of year | Total balances at end of year | Total comprehensive income | Total stockholders' equity | (b)Related income tax provision (credit) on changes and reclassifications during the year: | Minimum pension liability adjustments | Foreign currency translation adjustments | Net deferred gains (losses) on derivative instruments |


In 2007, compensation cost was reduced by $1.1 million related to stock option forfeitures from the global supply chain transformation program.
The 2006 compensation amount included $1.2 million for the impact of the modification of stock option grants resulting in accelerated vesting of stock options.
In 2005, this amount was $3.9 million.
The modification related to employees exiting our Company in 2006 and 2005 under the terms of the voluntary workforce reduction program.
A summary of the status of our Company’s stock options and changes during the years ending on those dates follows:


| For the Years Ended December 31, 2013 2012 2011 | Impairment/loss on disposal of assets | Consulting and professional fees | Employee severance and retention, including share-based compensation acceleration | Dedicated project personnel | Certain R&D agreements | Relocated facilities | Distributor acquisitions | Certain litigation matters | Contract terminations | Contingent consideration adjustments | Accelerated software amortization | Other | Special items |


Segment and Brand Statistics The following brand statistics present RevPAR, occupancy, and ADR for comparable properties 2017, 2017 compared to 2016, 2016, and 2016 compared to 2015, including Legacy-Starwood comparable properties for the full years even though Marriott did not own the Legacy-Starwood brands before the Starwood Combination.
Systemwide statistics include data from our franchised properties, in addition to our company-operated properties.2017 Compared to 2016


| 2009 $19,766 | 2010 | 2011 | 2012 | 2013 | 2014 – 2018 | 2008 | Earnings (Loss) per Share: | Basic—as originally reported | Basic—impact of EITF 03-6-1 | Basic—as will be reported in 2009 | Diluted—as originally reported | Diluted—impact of EITF 03-6-1 | Diluted—as will be reported in 2009 |


Premiums.
Gross written premiums increased by 22.0% to $2,593.0 million in 2017 from $2,125.8 million in 2016, primarily due to an increase in the new crop reinsurance business, an increase in treaty property business and the influx of reinstatement premiums due to the catastrophe losses and an increase in mortgage business.
Net written premiums increased by 13.9% to $2,245.4 million in 2017 compared to $1,970.6 million in 2016.
The difference between the change in gross written premiums compared to the change in net written premiums is primarily due to varying utilization of reinsurance.
Premiums earned increased by 5.3% to $2,181.2 million in 2017, compared to $2,072.2 million in 2016.
The change in premiums earned relative to net written premiums is primarily the result of changes in the mix of business and timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.
Gross written premiums decreased by 1.0% to $2,125.8 million in 2016 from $2,147.9 million in 2015, primarily due to a decrease in treaty property business, partially offset by an increase in treaty casualty business.
Net written premiums increased by 6.2% to $1,970.6 million in 2016 compared to $1,855.9 million in 2015.
The difference between the change in gross written premiums compared to the change in net written premiums is primarily due to the assumption of the crop business due to the sale of Heartland and a concurrent new crop reinsurance contract.
Premiums earned increased 6.1% to $2,072.2 million in 2016, compared to $1,952.7 million in 2015.
The change in premiums earned relative to net written premiums is primarily the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.


| Cash and cash equivalents $170.9 | Receivables | Assets held for sale, net | Inventories | Prepaid and other current assets | Property, plant and equipment | Goodwill | Intangibles | Investment in unconsolidated affiliate | Other assets | Accounts payable and accrued liabilities | Accrued income taxes | Long-term debt | Deferred income taxes | Minority interest | Other liabilities | Total preliminary purchase price |


Income Taxes Income tax expense decreased to $25 million in 2002 from $91 million in 2001, primarily from the decrease in income.
However, the effective income tax rate increased to 59 percent in 2002 from 41 percent in 2001.
During 2002, more of the Companys income was from international operations.
Some of the countries in which the international operations were conducted have a higher statutory income tax rate than the United States.
To a lesser extent, also impacting the effective rate in 2002 was the lower income level.


| ($ millions) 2017 N/A Change vs. 2016 2% 2016 N/A Change vs. 2015 -2% | Net sales | Net earnings | % of net sales |


| (Dollars in millions) Fiscal2011 % ofRelatedRevenue Fiscal2010 % ofRelatedRevenue Fiscal2009 % ofRelatedRevenue | Cost of product revenue | Cost of service and other revenue | Amortization of acquired technology | Total cost of revenue |


| North America Africa | (Dollars per boe) | 2014 | 2013 | 2012 |


| 2007 2006 2005 | Net sales to customers | U.S. | Canada | China | Total revenue | Long-lived assets | U.S. | Canada | China | Total long-lived assets |


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


h.  Translation of Foreign Currencies The functional currency for the Companys foreign sales and research and development operations is the applicable local currency.
Gains and losses resulting from translation of these foreign currencies into U. S.  dollars are recorded in accumulated other comprehensive (loss) income.
Transaction gains and losses and remeasurement of foreign currency denominated assets and liabilities are included in income currently, including those at the Companys principal foreign manufacturing operations where the functional currency is the U. S.  dollar.
Foreign currency transaction gains or losses included in other expenses, net, were not material in fiscal 2009, 2008 or 2007.  i.


ANALOG DEVICES, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) As of October 31, 2009, the total notional amount of these undesignated hedges was $38 million.
The fair value of these hedging instruments in the Companys condensed consolidated balance sheet as of October 31, 2009 was immaterial.
Interest Rate Exposure Management  On June 30, 2009, the Company entered into interest rate swap transactions related to its outstanding notes where the Company swapped the notional amount of its $375 million of fixed rate debt at 5.0% into floating interest rate debt through July 1, 2014.
Under the terms of the swaps, the Company will (i) receive on the $375 million notional amount a 5.0% annual interest payment that is paid in two installments on the 1st of every January and July, commencing January 1, 2010 through and ending on the maturity date; and (ii) pay on the $375 million notional amount an annual three-month LIBOR plus 2.05% (2.34% as of October 31, 2009) interest payment, payable in four installments on the 1st of every January, April, July and October, commencing on October 1, 2009 and ending on the maturity date.
The LIBOR based rate is set quarterly three months prior to the date of the interest payment.
The Company designated these swaps as fair value hedges.
The fair value of the swaps at inception were zero and subsequent changes in the fair value of the interest rate swaps were reflected in the carrying value of the interest rate swaps on the balance sheet.
The carrying value of the debt on the balance sheet was adjusted by an equal and offsetting amount.
The gain or loss on the hedged item (that is fixedrate borrowings) attributable to the hedged benchmark interest rate risk and the offsetting gain or loss on the related interest rate swaps as of October 31, 2009 is as follows:


We expect that approximately $1.2 billion, or about $800 million net of tax, of actuarial losses and net prior service credit related to postretirement benefit plans included in accumulated other comprehensive loss at the end of 2016 to be recognized in net periodic benefit cost during 2017.
Of this amount, $1.1 billion, or $743 million net of tax, relates to our qualified defined benefit plans and is included in our expected 2017 pension expense of $1.4 billion.
Actuarial Assumptions The actuarial assumptions used to determine the benefit obligations at December 31 of each year and to determine the net periodic benefit cost for each subsequent year, were as follows:


Financial Condition At December 31, 2005 we had $131.8 million of cash and cash equivalents.
We also had $255.3 million of restricted cash deposits, including $144.9 million of restricted cash held for capital expenditures under certain debt facilities and $25.3 million pledged to various regulatory agencies and governmental entities as financial guarantees of our performance related to final capping, closure and post-closure obligations at our landfills.
In June 2005, we entered into a new $750.0 million unsecured revolving credit facility with a group of banks which expires in 2010.
This facility replaced our prior facilities which aggregated $750.0 million.
Borrowings under the credit facility bear interest at LIBOR-based rates.
We use our operating cash flow and proceeds from our credit facilities to finance our working capital, capital expenditures, acquisitions, share repurchases, dividends and other requirements.
At December 31, 2005, letters of credit outstanding totaling $391.2 million were secured by our revolving credit facility.
As a result, as of December 31, 2005 we had $358.8 million available under our credit facility.
In May 1999, we sold $600.0 million of unsecured notes in the public market.
$225.0 million of these notes bore interest at 6.625% per annum and matured in May 2004.
The remaining $375.0 million bear interest at 7.125% per annum and mature in 2009.
Interest on these notes is payable semi-annually in May and November.
The $225.0 million and $375.0 million in notes were offered at a discount of $1.0 million and $.5 million, respectively.
In March 2005, we exchanged $275.7 million of our outstanding 7.125% notes due 2009 for new notes due 2035.
The new notes bear interest at 6.086%.
We paid a premium of $27.6 million related to the exchange.
This premium will be amortized over the life of the new notes using the effective yield method.
REPUBLIC SERVICES, INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (All tables in millions, except per share data) — (Continued) The following table summarizes the stock option activity for the years ended 2003, 2004 and 2005:


Item 3.
LEGAL PROCEEDINGS During September and October 2010, PCA and eight other U. S.  and Canadian containerboard producers were named as defendants in five purported class action lawsuits filed in the United States District Court for the Northern District of Illinois, alleging violations of the Sherman Act.
The lawsuits have been consolidated in a single complaint under the caption Kleen Products LLC v Packaging Corp.  of America et al.
The consolidated complaint alleges that the defendants conspired to limit the supply of containerboard, and that the purpose and effect of the alleged conspiracy was to artificially increase prices of containerboard products during the period from August 2005 to the time of filing of the complaint.
The complaint was filed as a purported class action suit on behalf of all purchasers of containerboard products during such period.
The complaint seeks treble damages and costs, including attorneys fees.
The defendants motions to dismiss the complaint were denied by the court in April 2011.
PCA believes the allegations are without merit and will defend this lawsuit vigorously.
However, as the lawsuit is in the document production phase of discovery, PCA is unable to predict the ultimate outcome or estimate a range of reasonably possible losses.
PCA is a party to various other legal actions arising in the ordinary course of our business.
These legal actions cover a broad variety of claims spanning our entire business.
As of the date of this filing, we believe it is not reasonably possible that the resolution of these legal actions will, individually or in the aggregate, have a material adverse effect on our financial condition, results of operations or cash flows.


| (in millions, except per share and ratio data) 2008(c) 2007 Change | Selected income statement data | Total net revenue | Provision for credit losses(a) | Total noninterest expense | Income before extraordinary gain | Extraordinary gain(b) | Net income | Diluted earnings per share | Income before extraordinary gain | Net income | Return on common equity | Income before extraordinary gain | Net income |


The valuation allowance as of 30 September 2016 of $155.2 primarily related to the tax benefit on the federal capital loss carryforward of $48.0, tax benefit of foreign loss carryforwards of $37.7, and capital assets of $58.0 that were generated from the loss recorded on the exit from the Energy-from-Waste business in 2016.
If events warrant the reversal of the valuation allowance, it would result in a reduction of tax expense.
We believe it is more likely than not that future earnings and reversal of deferred tax liabilities will be sufficient to utilize our deferred tax assets, net of existing valuation allowance, at 30 September 2016.
The deferred tax liability associated with unremitted earnings of foreign entities decreased in part due to the dividend to repatriate cash from a foreign subsidiary in South Korea.
This amount was also impacted by ongoing activity including earnings, dividend payments, tax credit adjustments, and currency translation impacting the undistributed earnings of our foreign subsidiaries and corporate joint ventures which are not considered to be indefinitely reinvested outside of the U. S.  We record U. S.  income taxes on the undistributed earnings of our foreign subsidiaries and corporate joint ventures unless those earnings are indefinitely reinvested outside of the U. S.  These cumulative undistributed earnings that are considered to be indefinitely reinvested in foreign subsidiaries and corporate joint ventures are included in retained earnings on the consolidated balance sheets and amounted to $6,300.9 as of 30 September 2016.
An estimated $1,467.8 in U. S.  income and foreign withholding taxes would be due if these earnings were remitted as dividends after payment of all deferred taxes.


| Percentage of | Rating | Aaa/Aa/A | Baa | Ba | B and lower | Total |


| Actual To be well-capitalized | (Amounts in thousands) | As of December 31, 2014 | Total capital (to risk-weighted assets) | The Company | Zions First National Bank | California Bank & Trust | Amegy Bank | Tier 1 capital (to risk-weighted assets) | The Company | Zions First National Bank | California Bank & Trust | Amegy Bank | Tier 1 capital (to average assets) | The Company | Zions First National Bank | California Bank & Trust | Amegy Bank |


| Change in Assumption EstimatedIncrease to 2008PensionExpense(In millions) | .5% decrease in discount rate | .5% decrease in expected long-term return on assets | .5% increase in compensation rate |


| (Stated in millions) | 2015 | Income | before | Revenue | North America | Latin America | Europe/CIS/Africa | Middle East & Asia | Eliminations & other | Pretax operating income | Corporate & other-1 | Interest income-2 | Interest expense-3 | Charges & credits-4 | $35,475 |


Net Deferred Tax Assets At July 31, 2014, we had net deferred tax assets of $72 million which included a valuation allowance of $24 million for loss and tax credit carryforwards related state tax credits, state capital and operating losses, and foreign losses.
We recorded the valuation allowance to reflect uncertainties about whether we will be able to utilize some of our deferred tax assets before they expire.
While we believe our current valuation allowance is sufficient, we could in the future be required to increase the valuation allowance to take into account additional deferred tax assets that we may be unable to realize.
We assess the need for an adjustment to the valuation allowance on a quarterly basis.
The assessment is based on our estimates of future sources of taxable income for the jurisdictions in which we operate and the periods over which our deferred tax assets will be realizable.
See Note 10 to the financial statements in Item 8 of this Annual Report for more information.
We provide U. S.  federal income taxes on the earnings of foreign subsidiaries unless the subsidiaries' earnings are intended to be indefinitely reinvested in our international operations.
To the extent that foreign earnings previously treated as indefinitely reinvested are repatriated, the related U. S.  tax liability may, subject to certain limitations, be reduced by any foreign income taxes paid on these earnings.
At July 31, 2014, the cumulative amount of earnings upon which U. S.  income taxes had not been provided was approximately $48 million.
The unrecognized deferred tax liability for these earnings was approximately $7 million.


| December 31, 2008 December 31, 2007 | NAIC rating | ($ in millions) | 1 | 2 | 3 | 4 | 5 | 6 | Total fixed maturity securities |


* Reflects a $124 million pre-tax charge in 2004, in accordance with Con Edison of New Yorks electric, gas and steam rate plans.
Con Edison of New York


(1) Our risk of loss is limited to our initial investment measured at amortized cost for fixed maturities, available-for-sale and to fair value for our fixed maturities, trading.
Sponsored Investment Funds We are the investment manager for certain money market mutual funds that are deemed to be VIEs.
We are not the primary beneficiary of these VIEs since our involvement is limited primarily to being a service provider, and our variable interest does not absorb the majority of the variability of the entities net assets.
As of December 31, 2010, these VIEs held $1.7 billion in total assets.
During 2010, we chose to contribute $3.2 million to these VIEs for competitive reasons and have no contractual obligation to further contribute to the funds.
We provide asset management and other services to certain investment structures that are considered VIEs as we generally earn management fees and in some instances performance based fees.
We are not the primary beneficiary of these entities as we do not have the obligation to absorb losses of the entities that could be potentially significant to the VIE or the right to receive benefits from these entities that could be potentially significant.
Net investment income decreased primarily due to lower inflation-based investment returns related to deflation in Chile during 2009, lower yields on floating rate investments supporting floating rate liabilities, and a decrease in average invested assets.
For additional information, see Investments  Investment Results.
 Net realized capital gains (losses) can be volatile due to mark-to-market adjustments of certain invested assets, other than temporary impairments of invested assets and our decision to sell invested assets.
Net realized capital losses decreased primarily due to mark-to-market gains versus losses on fixed maturities and equity securities classified as trading and higher gains on sales of fixed maturities.
For additional information, see Investments  Investment Results.
 Total Expenses Benefits, claims and settlement expenses decreased $538.1 million for our Retirement and Investor Services segment, primarily due to a decrease in our investment only business resulting from our decision to scale back this business and lower variable crediting rates.
Also contributing to the decline within the segment was a decrease in the change in reserves resulting from lower sales of annuities with life contingencies in our full service payout and individual annuities businesses.
In addition, benefits, claims and settlement expenses decreased $257.4 million for our Principal International segment, primarily due to lower interest crediting rates to customers in Chile, which were impacted by deflation, and the weakening of the Chilean peso against the U. S.  dollar.
Despite a $177.0 million increase in employee defined benefit pension and other postretirement benefit costs, operating expenses (excluding the impacts of DPAC and commissions) for our organization decreased as a result of company-wide expense savings initiatives.
Retirement and Investor Services operating expenses decreased $358.5 million, primarily due to a decrease in DPAC amortization related to favorable true-up impacts from equity markets in 2009 compared to unfavorable true-up impacts from equity markets in 2008.
In addition, lower commission expense and fees paid to advisors stemming from a decrease in average account values in our Principal Funds business contributed to a decline in segment operating expenses.
Furthermore, operating expenses decreased $115.6 million for the U. S.  Insurance Solutions segment, primarily due to lower DPAC amortization and lower non-deferred sales-related expenses in our individual life insurance business.
Income Taxes The effective income tax rates were 13% and 1% for the years ended December 31, 2009 and 2008, respectively.
The effective income tax rate for the year ended December 31, 2009, was lower than the U. S.  statutory rate primarily due to income tax deductions allowed for corporate dividends received, taxes on our share of earnings generated from equity method investments reflected in net investment income and the interest exclusion from taxable income.
The effective income tax rate for the year ended December 31, 2008, was lower than the U. S.  statutory rate primarily due to income tax deductions allowed for corporate dividends received, interest exclusion from taxable income and additional U. S.  foreign tax credits resulting from the second quarter 2008 enactment of legislation to increase the Brazilian tax rate.
The effective income tax rate increased to 13% from 1% for the years ended December 31, 2009 and 2008, respectively, primarily due to a decrease in our net realized capital losses with no proportionate change in permanent items and additional U. S.  foreign tax credits reflected in 2008 resulting from the Brazilian tax rate increase.
The net increase in deferred tax liabilities associated with the 2008 enacted Brazilian income tax rate is reflected in net investment income because the equity method of accounting is applied to our Brazilian operations; however, the benefit from additional U. S.  foreign tax credits is reflected in income tax expense.
Results of Operations by Segment For results of operations by segment see Item 8.
Financial Statements and Supplementary Data, Notes to Consolidated Financial Statements, Note 16, Segment Information.
 Retirement and Investor Services Segment Retirement and Investor Services Trends Account values are a key indicator of earnings growth for the segment, as account values are the base by which the segment generates its fee and spread-based profits.
Net cash flow and market performance are the two main drivers of account value growth.
Net cash flow reflects the segments ability to attract and retain client deposits.
Market performance reflects not only the equity market performance, but also the investment performance of fixed income investments supporting our spread business.
The percentage growth in earnings of the segment should generally track the percentage growth in account values.
This trend may vary due to changes in business and/or product mix.
The following table presents the Retirement and Investor Services account value rollforward for the years indicated:


| Year ended December 31 | Dollars in millions, except per share data | SUMMARYOFOPERATIONS | Interest income | Interest expense | Net interest income | Noninterest income (b) | Total revenue | Provision for credit losses | Noninterest expense | Income from continuing operations before income taxes and noncontrolling interests | Income taxes | Income from continuing operations before noncontrolling interests | Income from discontinued operations (net of income taxes of zero, zero, zero, $338 and$54) (c) | Net income | Less: Net income (loss) attributable to noncontrolling interests | Preferred stock dividends (d) | Preferred stock discount accretion and redemptions (d) | Net income attributable to common shareholders (d) | PERCOMMONSHARE | Basic earnings | Continuing operations | Discontinued operations (c) | Net income | Diluted earnings | Continuing operations | Discontinued operations (c) | Net income | Book value | Cash dividends declared |


Retail Operations In 2013, the Company's Retail Business sold electricity to residential, commercial and industrial consumers at either fixed, indexed or variable prices.
Residential and smaller commercial consumers typically contract for terms ranging from one month to two years while industrial contracts are often between one year and five years in length.
In 2013, the Company's Retail Business sold approximately 60 TWhs of electricity.
In any given year, the quantity of TWh sold can be affected by weather, economic conditions and competition.
The wholesale supply is typically purchased as the load is contracted in order to secure profit margin.
The wholesale supply is purchased from a combination of NRG's wholesale portfolio and other third parties, depending on the existing hedge position for the NRG wholesale portfolio at the time.
The ability to choose supply from the market or the Company's portfolio allows for an optimal combination to support and stabilize retail margins.


| Year ended December 31, | 2009 | Impact on revenues and adjusted operating income: | International Insurance | International Investments | Total International Insurance and Investments Division |


Investment Income.
Investment income decreased by $2.3 million or 64.9% to $1.2 million for the year ended December 31, 2009 from $3.5 million for the year ended December 31, 2008.
This decrease was primarily due to lower interest rates.


| Preferred  Stock Common  Stock Common Stock Issuable Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss), Net Treasury Stock Total | (In thousands) | 2002 | Balance — January 1, 2002 | Comprehensive income: | Net income | Other comprehensive income, net of tax and reclassification adjustments: | Unrealized gains on investment securities | Unrealized losses on cash flow hedge | 488,705 | Purchases of treasury stock | Stock-based compensation plans: | Stock option and purchase plans: | Compensation expense | Exercises | Directors’ stock plan | Deferred compensation plans, net, including dividend equivalents | Common stock cash dividends — $1.05 per share | Balance — December 31, 2002 | 2003 | Comprehensive income: | Net income | Other comprehensive income, net of tax and reclassification adjustments: | Unrealized losses on investment securities | Unrealized gains on cash flow hedge | Minimum pension liability adjustment | 544,823 | Acquisition of Allfirst Financial Inc. — common stock issued | Repayment of management stock ownership program receivable | Stock-based compensation plans: | Stock option and purchase plans: | Compensation expense | Exercises | Directors’ stock plan | Deferred compensation plans, net, including dividend equivalents | Common stock cash dividends — $1.20 per share | Balance — December 31, 2003 | 2004 | Comprehensive income: | Net income | Other comprehensive income, net of tax and reclassification adjustments: | Unrealized losses on investment securities | Minimum pension liability adjustment | 679,659 | Purchases of treasury stock | Stock-based compensation plans: | Stock option and purchase plans: | Compensation expense | Exercises | Directors’ stock plan | Deferred compensation plans, net, including dividend equivalents | Common stock cash dividends — $1.60 per share | Balance — December 31, 2004 |


| Year Ended December 31, | (dollars in millions) | Salaries and employee benefits | Outside services | Occupancy | Equipment expense | Amortization of software | Other operating expense | Noninterest expense |


| 2009 2008 2007 | Balance at beginning of year | Additions charged to expense | Accounts written-off | Acquisitions | Balance at end of year |


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


Sponsorships and Other Marketing Commitments Within the normal course of business, the Company enters into contractual commitments in order to promote the Companys brand and products.
These commitments include sponsorship agreements with teams and athletes on the collegiate and professional levels, official supplier agreements, athletic event sponsorships and other marketing commitments.
The following is a schedule of the Companys future minimum payments under its sponsorship and other marketing agreements as of December 31, 2011:


| December 31, 2015 | AmortizedCost | (in millions) | Fixed maturities, available-for-sale | U.S. Treasury securities and obligations of U.S. government authorities and agencies | Obligations of U.S. states and their political subdivisions | Foreign government bonds | U.S. corporate public securities | U.S. corporate private securities-1 | Foreign corporate public securities | Foreign corporate private securities | Asset-backed securities-2 | Commercial mortgage-backed securities | Residential mortgage-backed securities-3 | Total fixed maturities, available-for-sale-1 | Equity securities, available-for-sale | December 31, 2015 | AmortizedCost | (in millions) | Fixed maturities, held-to-maturity | Foreign government bonds | Foreign corporate public securities | Foreign corporate private securities-5 | Commercial mortgage-backed securities | Residential mortgage-backed securities-3 | Total fixed maturities, held-to-maturity-5 |


| 2009 2008 2007 | (in millions) | Balance, beginning of year | Capitalization of commissions, sales and issue expenses | Amortization | Change in unrealized investment gains and losses | Foreign currency translation and other | Impact of adoption of guidance on accounting for deferred acquisition costs in connection with modifications or exchanges ofinsurance contracts | Balance, end of year | Other Postretirement  Benefits  (in millions) | One percentage point increase | Increase in total service and interest costs | Increase in postretirement benefit obligation | One percentage point decrease | Decrease in total service and interest costs | Decrease in postretirement benefit obligation | Pension | Minimum | Asset Category | U.S. Equities | International Equities | Fixed Maturities | Short-term Investments | Real Estate | Other |


| Year Ended December 31, | 2006 | (in millions, except per share and ratio information) | Income Statement Data: | Revenues: | Premiums | Policy charges and fee income | Net investment income | Realized investment gains (losses), net | Asset management fees and other income | Total revenues | Benefits and expenses: | Policyholders’ benefits | Interest credited to policyholders’ account balances | Dividends to policyholders | General and administrative expenses | Loss on disposition of property and casualty insurance operations | Total benefits and expenses | Income from continuing operations before income taxes, equity in earnings of operating joint ventures, extraordinary gain on acquisition andcumulative effect of accounting change | Income tax expense (benefit) | Income from continuing operations before equity in earnings of operating joint ventures, extraordinary gain on acquisition and cumulativeeffect of accounting change | Equity in earnings of operating joint ventures, net of taxes | Income from continuing operations before extraordinary gain on acquisition and cumulative effect of accounting change-3 | Income (loss) from discontinued operations, net of taxes | Extraordinary gain on acquisition, net of taxes | Cumulative effect of accounting change, net of taxes | Net income | Basic income from continuing operations before extraordinary gain on acquisition and cumulative effect of accounting change pershare—Common Stock | Diluted income from continuing operations before extraordinary gain on acquisition and cumulative effect of accounting change pershare—Common Stock | Basic net income per share—Common Stock | Diluted net income per share—Common Stock | Basic and diluted net income (loss) per share—Class B Stock | Dividends declared per share—Common Stock | Dividends declared per share—Class B Stock | Ratio of earnings to fixed charges-1 |


| Years ended December 31 2014 2013 2012 2011 2010 | Commercial: | Commercial real estate | Commercial and industrial | Equipment financing | Retail: | Residential mortgage | Home equity | Other consumer | Total portfolio |


| Year Gallons Average Priceper Gallon Aircraft FuelExpense Percent of TotalOperating Expenses | 2018 | 2017 | 2016 |


| Year Ended December 31, 2017 2016 2015 | All operating currencies | Brazilian real | Mexican peso | Australian dollar | South African rand | British pound | Euro | Japanese yen |


| 2011 2010 | By-ProductMethod | Revenues, excluding adjustments | Site production and delivery, before net noncash | and other costs shown below | By-product credits | Treatment charges | Unit net cash costs | Depreciation, depletion and amortization | Noncash and other costs, net | Total unit costs | Revenue adjustments, primarily for pricing on | prior period open sales | Gross profit per pound | Copper sales (millions of recoverable pounds) |


To measure, monitor, and report on our interest-rate risk position, we use (1) NIR simulation, or NIR-at-risk, which measures the impact on NIR over the next twelve months to immediate, or “rate shock,” and gradual, or “rate ramp,” changes in market interest rates; and (2) economic value of equity, or EVE, which measures the impact on the present value of all NIR-related principal and interest cash flows of an immediate change in interest rates.
NIR-at-risk is designed to measure the potential impact of changes in market interest rates on NIR in the short term.
EVE, on the other hand, is a long-term view of interest-rate risk, but with a view toward liquidation of State Street.
Both of these measures are subject to ALCO-established guidelines, and are monitored regularly, along with other relevant simulations, scenario analyses and stress tests by both Global Treasury and ALCO.
In calculating our NIR-at-risk, we start with a base amount of NIR that is projected over the next twelve months, assuming that the then-current yield curve remains unchanged over the period.
Our existing balance sheet assets and liabilities are adjusted by the amount and timing of transactions that are forecasted to occur over the next twelve months.
That yield curve is then “shocked,” or moved immediately, ±100 basis points in a parallel fashion, or at all points along the yield curve.
Two new twelve-month NIR projections are then developed using the same balance sheet and forecasted transactions, but with the new yield curves, and compared to the base scenario.
We also perform the calculations using interest rate ramps, which are ±100 basis point changes in interest rates that are assumed to occur gradually over the next twelve-month period, rather than immediately as we do with interest-rate shocks.
EVE is based on the change in the present value of all NIR-related principal and interest cash flows for changes in market rates of interest.
The present value of existing cash flows with a then-current yield curve serves as the base case.
We then apply an immediate parallel shock to that yield curve of ±200 basis points and recalculate the cash flows and related present values.
A large shock is used to better capture the embedded option risk in our mortgage-backed securities that results from the borrower’s prepayment opportunity.
Key assumptions used in the models described above include the timing of cash flows; the maturity and repricing of balance sheet assets and liabilities, especially option-embedded financial instruments like mortgage-backed securities; changes in market conditions; and interest-rate sensitivities of our customer liabilities with respect to the interest rates paid and the level of balances.
These assumptions are inherently uncertain and, as a result, the models cannot precisely predict future NIR or predict the impact of changes in interest rates on NIR and economic value.
Actual results could differ from simulated results due to the timing, magnitude and frequency of changes in interest rates and market conditions, changes in spreads and management strategies, among other factors.
Projections of potential future streams of NIR are assessed as part of our forecasting process.
The following table presents the estimated exposure of NIR for the next twelve months, calculated as of December 31, 2008 and 2007, due to an immediate ± 100 basis point shift in then-current interest rates.
Estimated incremental exposures presented below are dependent on management’s assumptions about asset and liability sensitivities under various interest-rate scenarios, such as those previously discussed, and do not reflect any actions management may undertake in order to mitigate some of the adverse effects of interest-rate changes on State Street’s financial performance.


| Reported in: | Allowance for | credit losses on: | Loans | Lending-relatedcommitments |


The amount available to us to pay cash dividends is restricted by our subsidiaries’ debt agreements.
The indentures governing the senior subordinated notes and the senior discount notes also limit, but do not prohibit, the ability of BCP Crystal, Crystal LLC and their respective subsidiaries to pay dividends.
Any decision to declare and pay dividends in the future will be made at the discretion of our board of directors and will depend on, among other things, our results of operations, cash requirements, financial condition, contractual restrictions and other factors that our board of directors may deem relevant.
Under the Domination Agreement, any minority shareholder of Celanese AG who elects not to sell its shares to the Purchaser will be entitled to remain a shareholder of Celanese AG and to receive a gross guaranteed fixed annual payment on their shares of u3.27 per Celanese Share less certain corporate taxes to be paid by CAG in lieu of any future dividend.
See ‘‘The Transactions— Post-Tender Offer Events—Domination and Profit and Loss Transfer Agreement.
’’ Under Delaware law, our board of directors may declare dividends only to the extent of our ‘‘surplus’’ (which is defined as total assets at fair market value minus total liabilities, minus statutory capital), or if there is no surplus, out of our net profits for the then current and/or immediately preceding fiscal years.
The value of a corporation’s assets can be measured in a number of ways and may not necessarily equal their book value.
The value of our capital may be adjusted from time to time by our board of directors but in no event will be less than the aggregate par value of our issued stock.
Our board of directors may base this determination on our financial statements, a fair valuation of our assets or another reasonable method.
Our board of directors will seek to assure itself that the statutory requirements will be met before actually declaring dividends.
In future periods, our board of directors may seek opinions from outside valuation firms to the effect that our solvency or assets are sufficient to allow payment of dividends, and such opinions may not be forthcoming.
If we sought and were not able to obtain such an opinion, we likely would not be able to pay dividends.
In addition, pursuant to the terms of our preferred stock, we are prohibited from paying a dividend on our Series A common stock unless all payments due and payable under the preferred stock have been made.


Non-Performing Assets A loan is generally considered “non-performing” when it is placed on non-accrual status.
A loan is generally placed on non-accrual status when it becomes 90 days past due as to interest or principal payments.
Past due status is based on the contractual payment terms of the loan.
A loan may be placed on non-accrual status before it reaches 90 days past due if such loan has been identified as presenting uncertainty with respect to the collectability of interest and principal.
A loan past due 90 days or more may remain on accruing status if such loan is both well secured and in the process of collection.
All previously accrued but unpaid interest on non-accrual loans is reversed from interest income in the period in which the accrual of interest is discontinued.
Interest payments received on non-accrual loans (including impaired loans) are generally applied as a reduction of principal if future collections are doubtful, although such interest payments may be recognized as income.
A loan remains on non-accrual status until the factors that indicated doubtful collectability no longer exist or until a loan is determined to be uncollectible and is charged off against the allowance for loan losses.
There were no loans past due 90 days or more and still accruing interest at December 31, 2015 or 2014.


| Accruals atJanuary 1,2003 2003AdditionalCharges 2003 -1 Adjustments 2003 Amount Used Accruals atDecember 31,2003 | Exit costs — lease terminations | Employee separation costs | $545 |


Approximately $142 of the $1,161 of pretax losses deferred in accumulated other comprehensive income (loss) at September 30, 2017 will be amortized to expense in 2018.
As of September 30, 2017, U. S.  pension plans were underfunded by $77 in total, including unfunded plans totaling $201.
The non-U.
S.  plans were underfunded by $253, including unfunded plans totaling $215.
The grant date fair value of options is estimated using the Black-Scholes option-pricing model.
The weighted-average assumptions used in valuations for 2017, 2016 and 2015 are, respectively: risk-free interest rate, based on U. S.  Treasury yields, 1.7 percent, 1.9 percent and 1.9 percent; dividend yield, 3.6 percent, 3.8 percent and 3.1 percent; and expected volatility, based on historical volatility, 24 percent, 27 percent and 28 percent.
The expected life of each option awarded is seven years based on historical experience and expected future exercise patterns.


| 2010 2009 | (In millions) | Allowance for loan losses at beginning of year | Provision for loan losses | Loan losses: | Charge-offs | Recoveries | Net loan losses | Allowance for loan losses at end of year | Reserve for unfunded credit commitments at beginning of year | Provision for unfunded credit commitments | Reserve for unfunded credit commitments at end of year | Allowance for credit losses at end of year |


| 2014 2013 2012 | Risk-free interest rate(a) | Expected term(b) | Expected share price volatility(c) |


| Year Gallons Average Price per Gallon Aircraft Fuel Expense Percent of Total Mainline Operating Expenses | 2014 | 2013 (a) | 2012 (a) |


| At December 31, | (Dollars in millions) | Balance at beginning of year | Liabilities assumed | Adjustments to reserves | Benefits paid in the current year | Balance at end of year | (Some amounts may not reconcile due to rounding.) |


| Shares Weighted Average Grant-date Fair Value | Non-vested shares at January 1 | Granted | Deferred | Vested | Forfeited | Non-vested shares at December 31 |


| 2008 2007 2006 2005 2004 | Softwood lumber –board feet-1 | Engineered solid section – cubic feet-2 | Engineered I-joists –lineal feet-2 | Oriented strand board – square feet (3/8”) | Plywood – square feet (3/8”)(3) | Veneer – square feet (3/8”)(3)(4) | Composite panels – square feet (3/4”)(1) | Hardwood lumber – board feet |


AUTOMOBILE PORTFOLIO Our strategy in the automobile portfolio continues to focus on high quality borrowers as measured by both FICO and internal custom scores, combined with appropriate LTVs, terms, and profitability.
Our strategy and operational capabilities allow us to appropriately manage the origination quality across the entire portfolio, including our newer markets.
Although increased origination volume and entering new markets can be associated with increased risk levels, we believe our disciplined strategy and operational processes significantly mitigate these risks.
We have continued to consistently execute our value proposition and take advantage of available market opportunities.
Importantly, we have maintained our high credit quality standards while expanding the portfolio.


The Protection segment offers a variety of protection products to address the protection and risk management needs of the Companys retail clients including life, DI and property-casualty insurance.
Life and DI products are primarily provided through the Companys affiliated advisors.
The Companys property-casualty products are provided direct, primarily through affinity relationships.
The Company issues insurance policies through its life insurance subsidiaries and the property casualty companies.
The primary sources of revenues for this segment are premiums, fees, and charges that the Company receives to assume insurance-related risk.
The Company earns net investment income on invested assets supporting insurance reserves and capital supporting the business.
The Company also receives fees based on the level of assets supporting VUL separate account balances.
This segment earns intersegment revenues from fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource Variable Series Trust, Columbia Funds Variable Insurance Trust, Columbia Funds Variable Insurance Trust I and Wanger Advisors Trust funds under the VUL contracts.
Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management segment, as well as expenses for investment management services provided by the Asset Management segment.


| December 31 | (Dollars in millions) | Europe | Asia Pacific | Latin America | Middle East and Africa | Other | Total regional foreign exposure |


U. S.  MARKET PULP sales in 2006 were $509 million, compared with $526 million and $437 million in 2005 and 2004, respectively.
Sales volumes in 2006 were down from 2005 levels, primarily for paper and tissue pulp.
Average sales price realizations were higher in 2006, reflecting higher average prices for fluff pulp and bleached hardwood and softwood pulp.
Operating earnings increased 30% from 2005 and more than 100% from 2004 principally due to the impact of the higher average sales prices.
Input costs for wood and energy were higher in 2006 than in 2005.
Manufacturing operations were unfavorable, driven primarily by poor operations at our Riegelwood, North Carolina mill.


| December 31,(in dollars) 2011 2012 2013 2014 2015 2016 | JPMorgan Chase | KBW Bank Index | S&P Financial Index | S&P 500 Index |


| December 31, | 2008 | Carrying | Type | (In millions) | Real estate | Real estate joint ventures | Foreclosed real estate | 7,585 | Real estate held-for-sale | Total real estate holdings |


| Years Ended December 31, | 2006 | (In millions) | Balance at December 31, | Balance at January 1, | Change during year | Interest Rates | Weighted | Range | (In millions) | Senior notes | Repurchase agreements | Surplus notes | Fixed rate notes | Other notes with varying interest rates | Capital lease obligations | Total long-term debt | Total short-term debt | Total |


| As of December 31, 2015 As of December 31, 2014 | (in millions) | Amortizable intangible assets | Technology-related | Patents | Other intangible assets | $10,997 | Unamortizable intangible assets | Goodwill | In-process research and development (IPR&D) | Technology-related | $16,592 |


| 2012 2011 -1 | Prepaid income tax | Prepaid operating ground leases | Value added tax and other consumption tax receivables | Prepaid assets | Other miscellaneous current assets | Balance as of December 31, |


CONTRACTUAL OBLIGATIONS We typically have various contractual obligations, which are recorded as liabilities in our consolidated balance sheets, while other items, such as certain purchase commitments and other executory contracts, are not recognized, but are disclosed herein.
For example, we are contractually committed to contracts for information-technology outsourcing, certain enterprise-wide informationtechnology software licensing and maintenance and make certain minimum lease payments for the use of property under operating lease agreements.
We believe that the amount of cash and cash equivalents on hand, cash flow expected from operations and availability under our credit facility will be adequate for us to execute our business strategy and meet anticipated requirements for lease obligations, capital expenditures, working capital and debt service for 2019.
The following table summarizes our significant contractual obligations and commercial commitments as of December 31, 2018, over the next several years.
Additional details regarding these obligations are provided in the notes to our consolidated financial statements, as referenced in the footnotes to the table:


| Jurisdiction Years | United States-1 | Connecticut | Mississippi | Virginia-1 |


| Year Ended December 31, | 2004 | $ | ($ in thousands) | Revenues | Commissions | U.S. high-grade | European high-grade | Other | Total commissions | Information and user access fees | License fees | Interest income | Other | Total revenues |


During 2016, 2015 and 2014, we repurchased 13.7 million shares of our common stock for total consideration of $700 million, 5.7 million shares of our common stock for total consideration of $345 million, and 4.1 million shares of our common stock for total consideration of $217 million, respectively.
At the end of 2016, $100 million remains available for repurchase under our current repurchase program.
Although we may continue to repurchase shares, there is no assurance that we will repurchase up to the full amount of shares remaining available under the program.
Refer to Note (14) of the notes to consolidated financial statements for further information regarding our share repurchase programs.
During 2016, we paid $2 million of contingent consideration related to our acquisition of InterMedHx, LLC.
In 2015 we paid an aggregate of $11 million of contingent consideration related to our acquisitions of InterMedHx, LLC and Kaufman & Keen, LLC (doing business as PureWellness).
In 2014, we paid $11 million of contingent consideration related to our acquisition of PureWellness.
We expect additional contingent consideration payments in 2017 related to our acquisitions of the Lee's Summit Tech Center and InterMedHx.
Refer to Note (2) of the notes to consolidated financial statements for additional information regarding our contingent consideration arrangements.
In January 2014 we received $48 million of cash grants from the Kansas Department of Commerce for project costs in connection with the construction of our Continuous Campus.
Refer to Note (16) of the notes to consolidated financial statements for additional information.


| December 31, | (in millions) | Equity | Fixed income | Multi-asset | Alternatives | Long-term | Cash management | Advisory | Total |


Note 10 – Commitments and Contingencies Accrued Warranty and Indemnification The Company offers a basic limited parts and labor warranty on its hardware products.
The basic warranty period for hardware products is typically one year from the date of purchase by the end-user.
The Company also offers a 90-day basic warranty for its service parts used to repair the Company’s hardware products.
The Company provides currently for the estimated cost that may be incurred under its basic limited product warranties at the time related revenue is recognized.
Factors considered in determining appropriate accruals for product warranty obligations include the size of the installed base of products subject to warranty protection, historical and projected warranty claim rates, historical and projected cost-per-claim and knowledge of specific product failures that are outside of the Company’s typical experience.
The Company assesses the adequacy of its pre-existing warranty liabilities and adjusts the amounts as necessary based on actual experience and changes in future estimates.
The following table shows changes in the Company’s accrued warranties and related costs for 2014, 2013 and 2012 (in millions):


| AAA AA A BBB BB and Below Total | Vintage Year [1] | 2005 & Prior | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | Total | Credit protection | AAA | Vintage Year [1] | 2005 & Prior | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | Total | Credit protection |


| Range Actual | USRIP | Large-Cap Equity | Small- and Mid-Cap Equity | International Equity | Private Equity | Hedge Funds | Real Assets | Fixed Income | Cash |


| Millions 2011 2010 2009 % Change 2011 v 2010 % Change 2010 v 2009 | Freight revenues | Other revenues | Total |


| Location Primary Use Owned/Leased Lease Expiration Approximate Size (in squarefeet)(1) | 20South Wacker Drive, Chicago,Illinois | 141West JacksonChicago, Illinois | 550West WashingtonChicago, Illinois | OneNorth EndNew York, New York | 33Cannon Street, London | OneNew Change, London | AnnexData CenterChicagoland area | RemoteData CenterChicagoland area | DataCenter 3Chicagoland area |


acquire operations and facilities from municipalities and other local governments, as they increasingly seek to raise capital and reduce risk.
We realize synergies from consolidating businesses into our existing operations, whether through acquisitions or public-private partnerships, which allows us to reduce capital expenditures and expenses associated with truck routing, personnel, fleet maintenance, inventories and back-office administration.
Operating Model The goal of our operating model pillar is to deliver a consistent, high-quality service to all of our customers through the Republic Way: One Way.
Everywhere.
Every day.
This approach of developing standardized processes with rigorous controls and tracking allows us to leverage our scale and deliver durable operational excellence.
The Republic Way is the key to harnessing the best of what we do as operators and translating that across all facets of our business.
A key enabler of the Republic Way is our organizational structure that fosters a high performance culture by maintaining 360-degree accountability and full profit and loss responsibility with local management, supported by a functional structure to provide subject matter expertise.
This structure allows us to take advantage of our scale by coordinating functionally across all of our markets, while empowering local management to respond to unique market dynamics.
We have rolled out several productivity and cost control initiatives designed to deliver the best service possible to our customers in the most efficient and environmentally sound way.
Fleet Automation Approximately 75% of our residential routes have been converted to automated single-driver trucks.
By converting our residential routes to automated service, we reduce labor costs, improve driver productivity, decrease emissions and create a safer work environment for our employees.
Additionally, communities using automated vehicles have higher participation rates in recycling programs, thereby complementing our initiative to expand our recycling capabilities.
Fleet Conversion to Compressed Natural Gas (CNG) Approximately 19% of our fleet operates on natural gas.
We expect to continue our gradual fleet conversion to CNG as part of our ordinary annual fleet replacement process.
We believe a gradual fleet conversion is the most prudent approach to realizing the full value of our previous fleet investments.
Approximately 30% of our replacement vehicle purchases during 2017 were CNG vehicles.
We believe using CNG vehicles provides us a competitive advantage in communities with strict clean emission initiatives that focus on protecting the environment.
Although upfront capital costs are higher, using CNG reduces our overall fleet operating costs through lower fuel expenses.
As of December 31, 2017, we operated 37 CNG fueling stations.
Standardized Maintenance Based on an industry trade publication, we operate the seventh largest vocational fleet in the United States.
As of December 31, 2017, our average fleet age in years, by line of business, was as follows: