| Years Ended December 31, | 2006 | (In millions) | Investment return | Expense | In-force/Persistency | Policyholder dividends and other | Total |


Upon the termination of a participants employment with the Company by reason of death or disability or by the Company without cause (as defined in the respective award agreements), an award in amount equal to (i) the value of the award granted multiplied by (ii) a fraction, (x) the numerator of which is the number of full months between grant date and the date of such termination, and (y) the denominator of which is the term of the award, such product to be rounded down to the nearest whole number, and reduced by (iii) the value of any award that previously vested, shall immediately vest and become payable to the Participant.
Upon the termination of a Participants employment with the Company for any other reason, any unvested portion of the award shall be forfeited and cancelled without consideration.
There was $19 million and $0 million of tax benefit realized from stock option exercises and vesting of RSUs during the years ended December 31, 2010 and 2009, respectively.
During the year ended December 31, 2008 the Company reversed $8 million of the $19 million tax benefit that was realized during the year ended December 31, 2007.
Deferred Compensation In April 2007, certain participants in the Companys 2004 deferred compensation plan elected to participate in a revised program, which includes both cash awards and restricted stock units (see Restricted Stock Units below).
Based on participation in the revised program, the Company expensed $9 million, $10 million and $8 million during the years ended December 31, 2010, 2009 and 2008, respectively, related to the revised program and made payments of $4 million during the year ended December 31, 2010 to participants who left the Company and $28 million to active employees during December 2010.
As of December 31, 2010, $1 million remains to be paid during 2011 under the revised program.
As of December 31, 2009, there was no deferred compensation payable remaining associated with the 2004 deferred compensation plan.
The Company recorded expense related to participants continuing in the 2004 deferred


Note 6—Mergers and Acquisitions ElderTrust Merger On February 5, 2004, the Company consummated a merger transaction in an all cash transaction valued at $184 million (the “ElderTrust Transaction”).
The ElderTrust Transaction adds nine assisted living facilities, one independent living facility, five skilled nursing facilities, two medical office buildings and a financial office building (the “ElderTrust Properties”) to the Company’s portfolio.
The ElderTrust Properties are leased by the Company to various operators under leases providing for aggregated, annual cash base rent of approximately $16.2 million, subject to escalation as provided in the leases.
The leases have remaining terms primarily ranging from four to 11 years.
At the closing of the ElderTrust Transaction, the Company also acquired all of the limited partnership units in ElderTrust Operating Limited Partnership (“ETOP”) directly from their owners at $12.50 per unit, excluding 31,455 Class C Units in ETOP (which will remain outstanding).
ETOP owns directly or indirectly all of the ElderTrust Properties.
The Company funded the $101 million equity portion of the purchase price with cash on ElderTrust’s balance sheet, a portion of the $85 million in proceeds from its December 2003 sale of ten facilities to Kindred and draws on the Company’s revolving credit facility (the “Revolving Credit Facility”) under its Second Amended and Restated Security and Guaranty Agreement, dated as of April 17, 2002 (the “2002 Credit Agreement”).
The Company’s ownership of the ElderTrust Properties is subject to approximately $83 million of property level debt and other liabilities.
At the close of the ElderTrust Transaction, ElderTrust had approximately $33.5 million in unrestricted and restricted cash on hand.
The acquisition was accounted for under the purchase method.
The following table summarizes the preliminary estimated fair values of the assets acquired and liabilities assumed at the date of acquisition.
Such estimates are subject to refinement as additional valuation information is received.
Operations from this merger will be reflected in the Company’s consolidated financial statements for periods subsequent to the acquisition date of February 5, 2004.
The Company is in the process of computing fair values, thus, the allocation of the purchase price is subject to refinement.


| Total Cumulative Return 2012 2013 2014 2015 2016 | Edwards Lifesciences | S&P 500 | S&P 500 Healthcare Equipment Index |


(a) Represents weighted average price per share.
The total aggregate intrinsic value of options (the amount by which the stock price exceeded the exercise price of the option on the date of exercise) that were exercised during 2017, 2016 and 2015 was $142 million, $140 million and $160 million, respectively.


| (Millions of Dollars) 2005 2004 Variance 2005 vs. 2004 2003 Variance 2004 vs. 2003 | Operating activities | Investing activities | Financing activities | Net change for the period | Balance at beginning of period | Balance at end of period | (Millions of Dollars) | Operating activities | Investing activities | Financing activities | Net change for the period | Balance at beginning of period | Balance at end of period |


Net Interest Analysis The following table presents average balance data and interest income and expense data, as well as the related net interest income:


| 2010 2009 | Financing proceeds | Capping, closure and post-closure obligations | Self-insurance | Other | Total restricted cash and marketable securities |


| (Dollars in millions) Total Lessthan 1year 1-3years 3-5years After 5years | Long-term debt (including current portion) | Interest on debt-1 | Pension and other postretirement cash requirements | Capital lease obligations | Operating lease obligations | Purchase obligations not recorded on the Consolidated Statements of Financial Position | Purchase obligations recorded on the Consolidated Statements of Financial Position | Total contractual obligations |


| Agreed enterprise value $4,719 | Less: fair value of assumed long-term debt outstanding, net | Cash consideration paid to DPL’s common stockholders | Add: cash paid for outstanding stock-based awards | Total cash consideration paid | 2010 | Net Revenues | U.S. and Canada | International | Entertainment and Licensing | Operating Profit | U.S. and Canada | International | Entertainment and Licensing |


| Accumulated Other Comprehensive Income(Loss) (1) (in millions) | Interest rate derivatives | Cross currency derivatives | Foreign currency derivatives | Commodity and other derivatives |


UNITED PARCEL SERVICE, INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) exercised portion of a stock appreciation right will reduce the share reserve by one share.
Each share issued pursuant to restricted stock and stock units, and restricted performance shares and units, will reduce the share reserve by 2.76 shares.
As of December 31, 2009, management incentive awards, stock options, restricted performance units, and restricted stock units had been granted under the Incentive Compensation Plan.
We had 65.7 million shares available to be issued under the Incentive Compensation Plan as of December 31, 2009.
Management Incentive Awards & Restricted Stock Units Persons earning the right to receive management incentive awards are determined annually by the Compensation Committee of the UPS Board of Directors.
Our management incentive awards program provides that half of the annual management incentive award, with certain exceptions, be made in restricted stock units (“RSUs”), which generally vest over a five-year period.
The other half of the award is in the form of cash or unrestricted shares of class A common stock and is fully vested at the time of grant.
These management incentive awards are generally granted in the fourth quarter of each year.
Upon vesting, RSUs result in the issuance of the equivalent number of UPS class A common shares after required tax withholdings.
Except in the case of death, disability, or retirement, RSUs granted for our management incentive awards generally vest over a five year period with approximately 20% of the award vesting at each anniversary date of the grant.
The entire grant is expensed on a straight-line basis over the requisite service period.
All RSUs granted are subject to earlier cancellation or vesting under certain conditions.
Dividends earned on management incentive award RSUs are reinvested in additional RSUs at each dividend payable date.
We also award RSUs in conjunction with our long-term incentive performance awards program to certain eligible employees.
The RSUs ultimately granted under the long-term incentive performance award will be based upon the achievement of certain performance measures, including growth in consolidated revenue and operating return on invested capital, each year during the performance award cycle, and other measures, including growth in consolidated earnings, over the entire three year performance award cycle.
As of December 31, 2009, we had the following RSUs outstanding, including reinvested dividends.


| 2008 2007 2006 | (in thousands, except per share data) | Basic EPS: | Net income available to common shareholders | Basic weighted average shares outstanding | Earnings per share | Diluted EPS: | Net income available to common shareholders | Basic weighted average shares outstanding | Plus: dilutive effect of stock options and restricted stock awards | Diluted weighted average shares outstanding | Earnings per share |


| 2014 2013 2012 | Expected term (in years)(1) | Risk-free rate of return-2 | Expected volatility-3 | Expected dividend yield-4 | Fair value per option granted |


| December 31, | 2009 | % of | Amortized | Cost | (In millions) | Commercial: | Performing | Restructured | Potentially delinquent | Delinquent or under foreclosure | Total | Agricultural -1: | Performing | Restructured | Potentially delinquent | Delinquent or under foreclosure | Total | Residential and Consumer -2: | Performing | Restructured | Potentially delinquent | Delinquent or under foreclosure | Total |


ITEM 3.
LEGAL PROCEEDINGS See “Legal and Regulatory Matters” in note 12.
Contingencies to the Consolidated Financial Statements beginning on page 87 for CME Group’s legal proceedings disclosure which is incorporated herein by reference.
ITEM 4.
MINE SAFETY DISCLOSURES Not applicable.
there are many acquisition opportunities available within our target markets.
The extent to which we make and effectively integrate appropriate acquisitions will affect our overall growth and operating results.
We also continually assess the strategic fit of our existing businesses and may divest businesses that are deemed not to fit with our strategic plan or are not achieving the desired return on investment.
Danaher Corporation, originally DMG, Inc. , was organized in 1969 as a Massachusetts real estate investment trust.
In 1978 it was reorganized as a Florida corporation under the name Diversified Mortgage Investors, Inc.  (“DMI”) which in a second reorganization in 1980 became a subsidiary of a newly created holding company named DMG, Inc.  We adopted the name Danaher in 1984 and were reincorporated as a Delaware corporation following the 1986 annual meeting of our shareholders.
Operating Segments The table below describes the percentage of our total annual revenues attributable to each of our four segments over each of the last three years:


Kendal Vroman, 39 Mr.  Vroman has served as our Managing Director, Commodity Products, OTC Services & Information Products since February 2010.
Mr.  Vroman previously served as Managing Director and Chief Corporate Development Officer from 2008 to 2010.
Mr.  Vroman joined us in 2001 and since then has held positions of increasing responsibility, including most recently as Managing Director, Corporate Development and Managing Director, Information and Technology Services.


| Name of Beneficial Owner Shares of Common Stock Beneficially Owned-1 Percent of Common Stock Outstanding | Fidelity Investments | Steven P. Jobs | William V. Campbell | Timothy D. Cook | Millard S. Drexler | Tony Fadell | Albert A. Gore, Jr. | Ronald B. Johnson | Arthur D. Levinson | Peter Oppenheimer | Eric E. Schmidt | Jerome B. York | All current executive officers and directors as a group (14 persons) |


| 2017 2016 | Average borrowings | Maximum borrowings outstanding | Weighted average interest rates, computed on daily basis | Weighted average interest rates, as of December 31 |


| Years Ended December 31 2017 2016 Change 2016 2015 In Millions Change | CMS Energy, including Consumers | Net income | Non-cash transactions1 | Postretirement benefits contributions | Changes in core working capital2 | Changes in other assets and liabilities, net | Net cash provided by operating activities | Consumers | Net income | Non-cash transactions1 | Postretirement benefits contributions | Changes in core working capital2 | Changes in other assets and liabilities, net | Net cash provided by operating activities |


| Years Ended December 31, | 2008 | (in millions, except per share amounts) | Numerator: | Net income (loss) | Denominator: | Basic: Weighted-average common shares outstanding | Effect of potentially dilutive nonqualified stock options and other share-based awards | Diluted: Weighted-average common shares outstanding | Earnings (loss) per common share: | Basic | Diluted |


Supplementary Information on Oil and Gas Producing Activities (Unaudited)1082017 proved reserves decreased by 647 mmboe primarily due to the following:?
Revisions of previous estimates: Increased by 49 mmboe primarily due to the acceleration of higher economic wells in the Bakken into the 5-year plan resulting in an increase of 44 mmboe, with the remainder being due to revisions across the business. ?
Extensions, discoveries, and other additions: Increased by 116 mmboe primarily due to an increase of 97 mmboe associated with the expansion of proved areas and wells to sales from unproved categories in Oklahoma. ?
Purchases of reserves in place: Increased by 28 mmboe from acquisitions of assets in the Northern Delaware Basin in New Mexico. ?
Production: Decreased by 145 mmboe. ?
Sales of reserves in place: Decreased by 695 mmboe including 685 mmboe associated with the sale of our Canadian business and 10 mmboe associated with divestitures of certain conventional assets in Oklahoma and Colorado.
See Item 8.
Financial Statements and Supplementary Data - Note 5 to the consolidated financial statements for information regarding these dispositions.2016 proved reserves decreased by 67 mmboe primarily due to the following:?
Revisions of previous estimates: Increased by 63 mmboe primarily due to an increase of 151 mmboe associated with the acceleration of higher economic wells in the U. S.  resource plays into the 5-year plan and a decrease of 64 mmboe due to U. S.  technical revisions.  ?
Extensions, discoveries, and other additions: Increased by 60 mmboe primarily associated with the expansion of proved areas and new wells to sales from unproven categories in Oklahoma.  ?
Purchases of reserves in place: Increased by 34 mmboe from acquisition of STACK assets in Oklahoma. ?
Production: Decreased by 144 mmboe. ?
Sales of reserves in place: Decreased by 84 mmboe associated with the divestitures of certain Wyoming and Gulf of Mexico assets.2015 proved reserves decreased by 35 mmboe primarily due to the following:?
Revisions of previous estimates: Decreased by 2 mmboe primarily resulting from an increase of 105 mmboe associated with drilling programs in U. S.  resource plays and an increase of 67 mmboe in discontinued operations due to technical reevaluation and lower royalty percentages related to lower realized prices, offset by a decrease of 173 mmboe which was largely due to reductions to our capital development program and adherence to the SEC 5-year rule.  ?
Extensions, discoveries, and other additions: Increased by140 mmboe as a result of drilling programs in our U. S.  resource plays. ?
Production: Decreased by 157 mmboe. ?
Sales of reserves in place: U. S.  conventional assets sales contributed to a decrease of 18 mmboe.


EMEA net premiums written increased in 2015 compared to 2014, primarily in automobile and in warranty service programs, partially offset by decreases in Accident and Health.2014 and 2013 Comparison Americas net premiums written increased in 2014 compared to 2013, primarily due to an increase in all product lines in our Latin America operations and growth in U. S.  personal property and automobile businesses.
These were partially offset by a decrease in U. S.  Accident and Health due to our continued focus on maintaining underwriting discipline.
Asia Pacific net premiums written increased in 2014 compared to 2013, primarily due to production increases in Japan Accident and Health and in property and automobile business outside of Japan.
EMEA net premiums written increased in 2014 compared to 2013, due to growth in the automobile business and warranty service programs, partially offset by a decrease in the Accident and Health business.


| Payments Due by Period Total Less than 1 year 1-3 years 4-5 years More than 5 years | Contractual Obligations | Operating leases | Principal payments of long-term debt | Interest payments on long-term debt | Data and telecommunications agreements | Total |


At December 31, 2011, cash and cash equivalents decreased $811 million from December 31, 2010 to $1.7 billion.
The decrease in cash and cash equivalents was due to $2.9 billion of cash provided by operating activities, $4.9 billion of cash used for investing activities, $1.41 billion of cash provided by financing activities, an unfavorable effect of foreign currency exchange rates on cash of $122 million and a $79 million increase in cash of discontinued and held-for-sale businesses.


Domestic utility companies and System Energy Notes to Respective Financial Statements 323 protested the disallowance of these deductions to the Office of IRS Appeals.
Entergy expects to receive a Notice of Deficiency in 2005 for this item, and plans to vigorously contest this matter.
Entergy believes that the contingency provision established in its financial statements sufficiently covers the risk associated with this item.
Mark to Market of Certain Power Contracts In 2001, Entergy Louisiana changed its method of accounting for tax purposes related to its wholesale electric power contracts.
The most significant of these is the contract to purchase power from the Vidalia hydroelectric project.
The new tax accounting method has provided a cumulative cash flow benefit of approximately $790 million as of December 31, 2004.
The related IRS interest exposure is $93 million at December 31, 2004.
This benefit is expected to reverse in the years 2005 through 2031.
The election did not reduce book income tax expense.
The timing of the reversal of this benefit depends on several variables, including the price of power.
Due to the temporary nature of the tax benefit, the potential interest charge represents Entergy's net earnings exposure.
Entergy Louisiana's 2001 tax return is currently under examination by the IRS, though no adjustments have yet been proposed with respect to the mark to market election.
Entergy believes that the contingency provision established in its financial statements will sufficiently cover the risk associated with this issue.
CashPoint Bankruptcy (Entergy Arkansas, Entergy Gulf States, Entergy Louisiana, Entergy Mississippi, and Entergy New Orleans) In 2003 the domestic utility companies entered an agreement with CashPoint Network Services (CashPoint) under which CashPoint was to manage a network of payment agents through which Entergy's utility customers could pay their bills.
The payment agent system allows customers to pay their bills at various commercial or governmental locations, rather than sending payments by mail.
Approximately one-third of Entergy's utility customers use payment agents.
On April 19, 2004, CashPoint failed to pay funds due to the domestic utility companies that had been collected through payment agents.
The domestic utility companies then obtained a temporary restraining order from the Civil District Court for the Parish of Orleans, State of Louisiana, enjoining CashPoint from distributing funds belonging to Entergy, except by paying those funds to Entergy.
On April 22, 2004, a petition for involuntary Chapter 7 bankruptcy was filed against CashPoint by other creditors in the United States Bankruptcy Court for the Southern District of New York.
In response to these events, the domestic utility companies expanded an existing contract with another company to manage all of their payment agents.
The domestic utility companies filed proofs of claim in the CashPoint bankruptcy proceeding in September 2004.
Although Entergy cannot precisely determine at this time the amount that CashPoint owes to the domestic utility companies that may not be repaid, it has accrued an estimate of loss based on current information.
If no cash is repaid to the domestic utility companies, an event Entergy does not believe is likely, the current estimates of maximum exposure to loss are approximately as follows:


| Year ended December 31,(in millions) 2013 2012 2011 | Compensation expense | Noncompensation expense: | Occupancy expense | Technology, communications and equipment expense | Professional and outside services | Marketing | Other expense(a)(b) | Amortization of intangibles | Total noncompensation expense | Total noninterest expense |


(a) Net Coal capacity represents nominal summer net MW capacity of power generated as adjusted for the Company's ownership position excluding capacity from inactive/mothballed units, see Item 2 - Properties for units scheduled to be deactivated.
(b) Forecasted generation dispatch output (MWh) based on forward price curves as of December 31, 2013, which is then divided by number of hours in a given year to arrive at MW capacity.
The dispatch takes into account planned and unplanned outage assumptions.
(c) Includes amounts under power sales contracts and natural gas hedges.
The forward natural gas quantities are reflected in equivalent MWh based on forward market implied heat rate as of December 31, 2013, and then combined with power sales to arrive at equivalent MWh hedged which is then divided by number of hours in given year to arrive at MW hedged.
The Coal Sales include swaps and delta of options sold which is subject to change.
For detailed information on the Company's hedging methodology through use of derivative instruments, see discussion in Item 15 - Note 5, Accounting for Derivative Instruments and Hedging Activities, to the Consolidated Financial Statements.
Includes inter-segment sales from the Company's wholesale power generation business to the Retail Business.
(d) Percentage hedged is based on total Coal sales as described in (c) above divided by the forecasted Coal capacity.
(e) Represents U. S.  Coal sales, including energy revenue and demand charges, excluding revenues derived from capacity auctions.


| (in billions) December 31, 2009 December 31, 2008 December 31, 2007-1 | Direct lending collateral pools | Collateral pools underlying SSgA lending funds |


| Years Ended December 31, | (Dollars in millions) | Gross reserves at beginning of period | Incurred related to: | Current year | Prior years | Total incurred losses | Paid related to: | Current year | Prior years | Total paid losses | Foreign exchange/translation adjustment | Change in reinsurance receivables on unpaid losses and LAE | Gross reserves at end of period | (Some amounts may not reconcile due to rounding.) |


| Twelve Months Ended July 31, | (In thousands, except per share amounts) | Cost of product revenue | Cost of service and other revenue | Selling and marketing | Research and development | General and administrative | Reduction of operating income from continuingoperations and income from continuing operationsbefore income taxes | Income tax benefit | Reduction of net income from continuing operations | Reduction of net income per share fromcontinuing operations: | Basic | Diluted |


The Corporation also provides credit enhancement to investors in certain municipal bond trusts whereby the Corporation guarantees the payment of interest and principal on floating-rate certificates issued by these trusts in the event of default by the issuer of the underlying municipal bond.
If a customer holds the residual interest in a trust, that customer typically has the unilateral ability to liquidate the trust at any time, while the Corporation typically has the ability to trigger the liquidation of that trust if the market value of the bonds held in the trust declines below a specified threshold.
This arrangement is designed to limit market losses to an amount that is less than the customers residual interest, effectively preventing the Corporation from absorbing losses incurred on assets held within that trust.
The weighted-average remaining life of bonds held in the trusts at December 31, 2010 was 13.3 years.
There were no material write-downs or downgrades of assets or issuers during 2010.
During 2010 and 2009, the Corporation was the transferor of assets into unconsolidated municipal bond trusts and received cash proceeds from new securitizations of $1.2 billion and $664 million.
At December 31, 2010 and 2009, the principal balance outstanding for unconsolidated municipal bond securitization trusts for which the Corporation was transferor was $2.2 billion and $6.9 billion.
The Corporations liquidity commitments to unconsolidated municipal bond trusts, including those for which the Corporation was transferor, totaled $4.0 billion and $9.8 billion at December 31, 2010 and 2009.
Automobile and Other Securitization Trusts The Corporation transfers automobile and other loans into securitization trusts, typically to improve liquidity or manage credit risk.
At December 31, 2010, the Corporation serviced assets or otherwise had continuing involvement with automobile and other securitization trusts with outstanding balances of $10.5 billion, including trusts collateralized by automobile loans of $8.4 billion, student loans of $1.3 billion, and other loans and receivables of $774 million.
At December 31, 2009, the Corporation serviced assets or otherwise had continuing involvement with automobile and other securitization trusts with outstanding balances of $11.9 billion, including trusts collateralized by automobile loans of $11.0 billion and other loans of $905 million.
The Corporation transferred $3.0 billion of automobile loans, $1.3 billion of student loans and $303 million of other receivables to the trusts during 2010 and $9.0 billion of automobile loans during 2009.
Multi-seller Conduits The Corporation previously administered four multi-seller conduits which provided a low-cost funding alternative to the conduits customers by facilitating access to the commercial paper market.
These customers sold or otherwise transferred assets to the conduits, which in turn issued short-term commercial paper that was rated high-grade and was collateralized by the underlying assets.
The Corporation provided combinations of liquidity and SBLCs to the conduits for the benefit of third-party investors.
These commitments had an aggregate notional amount outstanding of $34.5 billion at December 31, 2009.
The Corporation liquidated the four conduits and terminated all liquidity and other commitments during 2010.
Liquidation of the conduits did not impact the Corporations consolidated results of operations.


Selling, General and Administrative (SG&A) Expenses In 2012, our SG&A expenses increased $48 million, or two percent, as compared to 2011, and were 240 basis points higher as a percentage of net sales.
This increase was driven primarily by continued investments in acquisitions and in commercial resources and infrastructure for global expansion, particularly in emerging markets, and a non-recurring asset impairment charge as a result of a program termination.
Also contributing to the year-over-year increase was a benefit recorded in 2011 as a result of a reversal of previously established allowances for doubtful accounts against long-outstanding receivables in Greece.
These increases in SG&A were partially offset by declines in spending as a result of our restructuring and other cost reduction initiatives and the impact of changes in foreign currency exchange rates.
Beginning in January 2013, as a result of new legislation, all medical device manufacturers will be subject to a 2.3 percent excise tax on U. S.  sales of Class I, II and III medical devices.
We intend to record this tax within our selling, general and administrative expenses and expect that our excise tax liability for 2013 will be up to $80 million.
In 2011, our SG&A expenses decreased $93 million, or four percent, as compared to 2010, and were 50 basis points lower as a percentage of net sales.
Our SG&A expenses were lower in 2011, as compared to 2010, as a result of the sale of our Neurovascular business to Stryker in January 2011 and lower expenses due to our restructuring initiatives and cost containment discipline.
In addition, our SG&A expenses for 2011 benefited from the reversal of $20 million of previously established allowances for doubtful accounts against long-outstanding receivables in Greece in 2011.
These receivables had previously been fully


| December 31, | (Dollars in Millions) | Trade receivables | Miscellaneous receivables | 3,585 | Less allowances | Receivables, net |


| (in millions, except ratios) 2014 2013 2012 | Revenue | Mortgage fees and related income | All other income | Noninterest revenue | Net interest income | Total net revenue | Provision for credit losses | Noninterest expense | Income before income tax expense | Net income | Return on common equity | Overhead ratio | Equity (period-end and average) |


| Years Ended December 31, | (Dollars in millions) | Gross reserves at beginning of period | Incurred related to: | Current year | Prior years | Total incurred losses | Paid related to: | Current year | Prior years | Total paid losses | Foreign exchange/translation adjustment | Change in reinsurance receivables on unpaid losses and LAE | Gross reserves at end of period |


| Year Ended December 31, 2017 2016 2015 | Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Corporate | Total |


CELANESE CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Included in the pension obligations above are accrued liabilities relating to supplemental retirement plans for certain employees amounting to $235 million and $238 million as of December 31, 2005 and 2004, respectively.
Pension expense relating to these plans included in net periodic benefit cost totaled $15 million, $11 million, $5 million and $18 million for the year ended December 31, 2005, the nine months ended December 31, 2004, the three months ended March 31, 2004 and for the year ended December 31, 2003, respectively.
To fund these obligations, non-qualified trusts were established, included within other non-current assets, which held marketable securities valued at $181 million and $127 million at December 31, 2005 and 2004, respectively, and recognized income (loss), excluding appreciation of insurance contracts, of $6 million, $6 million, $(1) million and $3 million for the year ended December 31, 2005, the nine months ended December 31, 2004, the three months ended March 31, 2004 and the year ended December 31, 2003, respectively.
In addition to holding marketable securities, the nonqualified trust holds investments in insurance contracts of $68 million as of December 31, 2005 and 2004, respectively.
In 2005, the Successor contributed $9 million to these trusts from proceeds received from the demutualization of an insurance company.
In 2003, the Predecessor contributed $18 million to these trusts from proceeds received from the demutualization of an insurance company.
The gain associated with these proceeds was included within Other income (expense), net, in the consolidated statement of operations.
The asset allocation for the qualified U. S.  defined benefit pension plan as of December 31, 2005 and 2004, respectively, and the target allocation ranges for 2006 by asset category is presented below.
The fair value of plan assets for this plan was $2,222 million and $2,199 million as of December 31, 2005 and 2004, respectively.
These asset amounts represent approximately 85% of the total pension assets at December 31, 2005 and 88% at December 31, 2004.
The expected long-term rate of return on these assets was 8.5% at December 31, 2005 and 2004, respectively.
Plan assets did not include any investment in Celanese Corporation common shares during the periods presented.


The cumulative amount of Arconics foreign undistributed net earnings for which no deferred taxes have been provided was approximately $450 at December 31, 2016.
Arconic has a number of commitments and obligations related to the Companys growth strategy in foreign jurisdictions.
As such, management has no plans to distribute such earnings in the foreseeable future, and, therefore, has determined it is not practicable to determine the related deferred tax liability.


| Years Ended December 31, | 2010 | GAAP | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Amortization of deferred acquisition costs | General and administrative expense | Total expenses | Pretax income |


| Year ended December 31, 2007 Consumer activities Wholesale activities | (in millions, except rates and where | otherwise noted) | Principal securitized | Pretax gains | Cash flow information: | Proceeds from securitizations | Servicing fees collected | Other cash flows received | Proceeds from collections reinvested in revolving securitizations | Key assumptions (rates per annum): | Prepayment rate(a) | PPR | Weighted-average life (in years) | Expected credit losses | Discount rate |


is downgraded below a specified threshold, the new bank is required to provide credit support for its obligation.
Fees of $5 million were incurred in connection with this replacement.
On November 29, 2011, Standard and Poor's reduced its credit rating of senior unsecured long-term debt of Lloyds TSB Bank Plc, which issued letters of credit that support $1.2 billion of the Timber Notes, below the specified threshold.
The letters of credit were successfully replaced by another qualifying institution.
Fees of $4 million were incurred in connection with this replacement.
On January 23, 2012, Standard and Poor's reduced its credit rating of senior unsecured long-term debt of SociÃ©tÃ© GÃ©nÃ©rale SA, which issued letters of credit that support $666 million of the Timber Notes, below the specified threshold.
The letters of credit were successfully replaced by another qualifying institution.
Fees of $5 million were incurred in connection with this replacement.
On June 21, 2012, Moody's Investor Services reduced its credit rating of senior unsecured long-term debt of BNP Paribas, which issued letters of credit that support $707 million of Timber Notes, below the specified threshold.
On December 19, 2012, the Company and the third-party managing member agreed to a continuing replacement waiver for these letters of credit, terminable upon 30 days notice.
Activity between the Company and the Entities was as follows:


Integrated Gas Our integrated gas strategy is to link stranded natural gas resources with areas where a supply gap is emerging due to declining production and growing demand.
Our integrated gas operations include marketing and transportation of products manufactured from natural gas, such as LNG and methanol, primarily in west Africa, the U. S.  and Europe.
Our most significant LNG investment is our 60 percent ownership in a production facility in Equatorial Guinea, which sells LNG under a long-term contract at prices tied to Henry Hub natural gas prices.
In 2009, the gross sales from the plant were 3.9 million metric tonnes, while in 2008, its first full year of operations, the plant sold 3.4 million metric tonnes.
Industry estimates of 2009 LNG trade are approximately 185 million metric tonnes.
More LNG production facilities and tankers were under construction in 2009.
As a result of the sharp worldwide economic downturn in 2008, continued weak economies are expected to lower natural gas consumption in various countries; therefore, affecting near-term demand for LNG.
Long-term LNG supply continues to be in demand as markets seek the benefits of clean burning natural gas.
Market prices for LNG are not reported or posted.
In general, LNG delivered to the U. S.  is tied to Henry Hub prices and will track with changes in U. S.  natural gas prices, while LNG sold in Europe and Asia is indexed to crude oil prices and will track the movement of those prices.
We own a 45 percent interest in a methanol plant located in Equatorial Guinea through our investment in AMPCO.
Gross sales of methanol from the plant totaled 960,374 metric tonnes in 2009 and 792,794 metric tonnes in 2008.
Methanol demand has a direct impact on AMPCOs earnings.
Because global demand for methanol is rather limited, changes in the supply-demand balance can have a significant impact on sales prices.
The 2010 Chemical Markets Associates, Inc.  estimates world demand for methanol in 2009 was 41 million metric tonnes.
Our plant capacity is 1.1 million, or about 3 percent of total demand.


Columbia Management Columbia is an asset management business serving the needs of both institutional clients and individual customers.
Columbia provides asset management services, including mutual funds, liquidity strategies and separate accounts.
Columbia mutual fund offerings provide a broad array of investment strategies and products including equities, fixed income (taxable and non-taxable) and money market (taxable and non-taxable) funds.
Columbia distributes its products and services directly to institutional clients, and distributes to individuals through The Private Bank, Family Wealth Advisors, Premier Banking and Investments, and nonproprietary channels including other brokerage firms.
Net Income increased $43 million, or 15 percent, primarily as a result of an increase in Investment and Brokerage Services of $211 million, or 16 percent, in 2006.
This increase is due to higher assets under management driven by net inflows in money market and equity funds, and market appreciation.
Noninterest Expense increased $105 million, or 12 percent, primarily due to higher Personnel costs including revenue-based compensation and other operating costs.


if this estimated cost experience percent were to increase or decrease .6 percent, the sales incentive accrual at October 31, 2011 would increase or decrease by approximately $35 million.
Product Warranties At the time a sale to a dealer is recognized, the company records the estimated future warranty costs.
The company generally determines its total warranty liability by applying historical claims rate experience to the estimated amount of equipment that has been sold and is still under warranty based on dealer inventories and retail sales.
The historical claims rate is primarily determined by a review of five-year claims costs and consideration of current quality developments.
Variances in claims experience and the type of warranty programs affect these estimates, which are reviewed quarterly.
The product warranty accruals, excluding extended warranty unamortized premiums, at October 31, 2011, 2010 and 2009 were $662 million, $559 million and $513 million, respectively.
The changes were primarily due to higher sales volumes in 2011 and 2010.
Estimates used to determine the product warranty accruals are significantly affected by the historical percent of warranty claims costs to sales.
Over the last five fiscal years, this percent has varied by an average of approximately plus or minus .05 percent, compared to the average warranty costs to sales percent during that period.
Holding other assumptions constant, if this estimated cost experience percent were to increase or decrease .05 percent, the warranty accrual at October 31, 2011 would increase or decrease by approximately $20 million.


| Cash and short-term investments $197.7 | Developed product technology (Cialis)1 | Tax benefit of net operating losses | Goodwill | Long-term debt assumed | Deferred taxes | Other assets and liabilities — net | Acquired in-process research and development | Total purchase price |


| 2003 $127.7 | 2004 | 2005 | 2006 | 2007 |


| Year Ended December 31, | 2012 | Gross | (thousands of acres) | Onshore US | Deepwater Gulf of Mexico | Equatorial Guinea | Israel-1 | Cameroon-2 | Total |


| Year ended December 31, | 2018 | (in millions) | Operating results: | Revenues | Benefits and expenses | Adjusted operating income | Realized investment gains (losses), net, and related adjustments | Related charges | Income (loss) before income taxes and equity in earnings of operating joint ventures |


| (Dollars in millions, except as noted) 2013 2012 | Loan production | Total Corporation-1: | First mortgage | Home equity | CRES: | First mortgage | Home equity | Year end | Mortgage serviced portfolio (in billions)(2, 3) | Mortgage loans serviced for investors (in billions) | Mortgage servicing rights: | Balance | Capitalized mortgage servicing rights(% of loans serviced for investors) |


| 2005 2004 | (in millions) | Life insurance | Individual and group annuities and supplementary contracts | Other contract liabilities | Subtotal future policy benefits excluding unpaid claims and claim adjustment expenses | Unpaid claims and claim adjustment expenses | Total future policy benefits |


(1) Primarily represents the net impact of portfolio sales, consolidations and deconsolidations, foreign currency translation adjustments and certain other reclassifications.
(2) Represents allowance for loan and lease losses related to the non-U.
S.  credit card loan portfolio, which is included in assets of business held for sale on the Consolidated Balance Sheet at December 31, 2016.
In 2016, 2015 and 2014, for the PCI loan portfolio, the Corporation recorded a provision benefit of $45 million, $40 million and $31 million, respectively.
Write-offs in the PCI loan portfolio totaled $340 million, $808 million and $810 million during 2016, 2015 and 2014, respectively.
Write-offs included $60 million, $234 million and $317 million associated with the sale of PCI loans during 2016, 2015 and 2014, respectively.
The valuation allowance associated with the PCI loan portfolio was $419 million, $804 million and $1.7 billion at December 31, 2016, 2015 and 2014, respectively


| Years Ended December 31, | 2010 | (In millions) | Revenues | Premiums | Net investment income | Net investment gains (losses): | Other-than-temporaryimpairments on fixed maturity securities | Other-than-temporaryimpairments on fixed maturity securities transferred to other comprehensive income (loss) | Other net investment gains (losses) | Total net investment gains (losses) | Net derivative gains (losses) | Total revenues | Expenses | Policyholder benefits and claims | Policyholder dividends | Other expenses | Total expenses | Revenues, net of expenses before provision for income tax expense (benefit) | Provision for income tax expense (benefit) | Revenues, net of expenses and provision for income tax expense (benefit) | Years Ended December 31, | 2010 | (In millions) | Balance at December 31, | Less: | Closed block adjustment -1 | Balance at January 1, | Change during year |


| 2013 2012 2011 | Net income (loss) attributable to Ameren Corporation | Earnings (loss) per common share - diluted | Net income attributable to Ameren Corporation - continuing operations | Earnings per common share - diluted - continuing operations |


Other Arrangements We maintained a $300 million credit and security facility secured by our U. S.  trade receivables maturing on June 9, 2017.
We had borrowings of $60 million outstanding under this facility as of December 31, 2016 and no borrowings outstanding as of December 31, 2015.
On February 7, 2017, we amended the terms of this credit and security facility, including increasing the facility size to $400 million.
This amendment retained a similar maximum leverage ratio requirement and extended the facility maturity to February 2019.
We also have accounts receivable factoring programs in certain European countries that we account for as sales under Financial Accounting Standards Board (FASB) Accounting Standards Codification?
(ASC) Topic 860, Transfers and Servicing.
These agreements provide for the sale of accounts receivable to third parties, without recourse, of up to approximately $391 million as of December 31, 2016.
We de-recognized $152 million of receivables as of December 31, 2016 at an average interest rate of 1.8 percent, and $151 million as of December 31, 2015 at an average interest rate of 2.4 percent.
In addition, we have uncommitted credit facilities with a commercial Japanese bank that provide for borrowings, promissory notes discounting and receivables factoring of up to 21.000 billion Japanese yen (approximately $180 million as of December 31, 2016).
We de-recognized $149 million of notes receivable as of December 31, 2016 at an average interest rate of 1.6 percent and $132 million of notes receivable as of December 31, 2015 at an average interest rate of 1.6 percent.
De-recognized accounts and notes are excluded from trade accounts receivable, net in the accompanying audited consolidated balance sheets.
We had outstanding letters of credit of $44 million as of December 31, 2016 and as of December 31, 2015.
As of December 31, 2016 and 2015, none of the beneficiaries had drawn upon the letters of credit or guarantees.
We believe we will generate sufficient cash from operations to fund these arrangements and intend to fund these arrangements without drawing on the letters of credit.
For additional details related to our debt, including our revolving credit facility, term loans, senior notes and other arrangements, see Note FBorrowings and Credit Arrangements to our consolidated financial statements included in Item 8 of this Annual Report.


| Years Ended December 31, | 2008 | (in millions, except percentages) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | General and administrative expense | Total expenses | Pretax income (loss) |


| Years Ended February 28 | (In millions) | Used vehicle sales | Wholesale vehicle sales | Other sales and revenues: | Extended protection plan revenues | Third-party finance fees, net | Service revenues | Other | Total other sales and revenues | Total net sales and operating revenues |


| 2012 2011 2010 | Net sales | Operating profit | Operating margins | Backlog at year-end |


a) Upon adoption of SFAS No.158, the Bancorp measured its liability for its total pension and other postretirement obligations to be $59 million.


| Year ended December 31, | (Dollars in thousands) | Unused commitment fees | Fund management fees | Service-based fee income -1 | Net gains on the sale of certain assets related to our equity management services business | Loan syndication fees | Gains (losses) on revaluation of foreign currency instruments (2) | Currency revaluation (losses) gains (3) | Other | Total other noninterest income |


| (In millions) PensionBenefits OtherBenefits | 2006 | 2007 | 2008 | 2009 | 2010 | Years 2011 – 2015 | In millions | December 31, 2015 | Impaired loans with an associated allowance | Commercial | Commercial real estate | Home equity | Residential real estate | Credit card | Other consumer | Total impaired loans with an associated allowance | Impaired loans without an associated allowance | Commercial | Commercial real estate | Home equity | Residential real estate | Other consumer | Total impaired loans without an associated allowance | Total impaired loans | December 31, 2014 | Impaired loans with an associated allowance | Commercial | Commercial real estate | Home equity | Residential real estate | Credit card | Other consumer | Total impaired loans with an associated allowance | Impaired loans without an associated allowance | Commercial | Commercial real estate | Home equity | Residential real estate | Total impaired loans without an associated allowance | Total impaired loans |


| Shares in millions Nonvested Incentive/ Performance Units Shares Weighted- Average Grant Date Fair Value Nonvested Restricted Share/ Restricted Share Units Weighted- Average Grant Date Fair Value | December 31, 2015 | Granted (b) | Vested/Released (b) | December 31, 2016 |


Sales of Unregistered Securities Not applicable.
Repurchases of Equity Securities The following table provides information regarding our purchases of our equity securities during the period from October 1, 2017 to December 31, 2017.


| Three Months Ended December 31, 2016 Three Months Ended March 31, 2017 Three Months Ended June 30, 2017 | United States | Previously Reported MAU | Adjustment-1 | Adjusted MAU | Three Months Ended | Dec. 31, 2017 | (Unaudited, in thousands) | Cost of revenue | Research and development | Sales and marketing | General and administrative | Total stock-based compensation expense |


| 2007 $6,820,397 | 2008 | 2009 | 2010 | 2011 | Thereafter | $7,505,267 |


| U.S. Canada E.G. OtherAfrica Other Int'l Cont Ops Disc Ops Total | Year Ended December 31, 2015 | Revenues and other income: | Sales | Transfers | Other income(a) | Total revenues and other income | Expenses: | Production costs | Exploration expenses(b) | Depreciation, depletion and | amortization(c) | Technical support and other | Total expenses | Results before income taxes | Income tax provision | Results of operations | Year Ended December 31, 2014 | Revenues and other income: | Sales | Transfers | Other income(a) | Total revenues and other income | Expenses: | Production costs | Exploration expenses | Depreciation, depletion and | amortization(c) | Technical support and other | Total expenses | Results before income taxes | Income tax provision | Results of operations | Year Ended December 31, 2013 | Revenues and other income: | Sales | Transfers | Other income(a) | Total revenues and other income | Expenses: | Production costs | Exploration expenses | Depreciation, depletion and | amortization(c) | Technical support and other | Total expenses | Results before income taxes | Income tax provision | Results of operations |


| Long-term debt maturities andestimated interest payments 2016 2017 2018 2019-2020 after 2020 | (In Millions) | Utility | Entergy Wholesale Commodities | Parent and Other | Total |


(1) Losses and gains due to curtailment, settlement and special termination benefits relate to repositioning and divestiture actions.
The estimated net actuarial loss and prior service (benefit) cost that will be amortized from Accumulated other comprehensive income (loss) into net expense in 2017 are approximately $233 million and $(2) million, respectively, for defined benefit pension plans.
For postretirement plans, the estimated 2017 net actuarial loss and prior service (benefit) cost amortizations are approximately $28 million and $(9) million, respectively.


| December 31, (in millions) 2014 2013 | Residential real estate – excluding PCI | Home equity: | Senior lien | Junior lien | Mortgages: | Prime, including option ARMs | Subprime | Other consumer loans | Auto | Business banking | Student and other | Residential real estate – PCI | Home equity | Prime mortgage | Subprime mortgage | Option ARMs | Total retained loans |


| 2011 Quarters 2010 Quarters | (Dollars in millions, except per share information) | Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis | Net interest income | Fully taxable-equivalent adjustment | Net interest income on a fully taxable-equivalent basis | Reconciliation of total revenue, net of interest expense to total revenue, net of interest expense on a fully taxable-equivalent basis | Total revenue, net of interest expense | Fully taxable-equivalent adjustment | Total revenue, net of interest expense on a fully taxable-equivalent basis | Reconciliation of total noninterest expense to total noninterest expense, excluding goodwill impairment charges | Total noninterest expense | Goodwill impairment charges | Total noninterest expense, excluding goodwill impairment charges | Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis | Income tax expense (benefit) | Fully taxable-equivalent adjustment | Income tax expense (benefit) on a fully taxable-equivalent basis | Reconciliation of net income (loss) to net income (loss), excluding goodwill impairment charges | Net income (loss) | Goodwill impairment charges | Net income (loss), excluding goodwill impairment charges | Reconciliation of net income (loss) applicable to common shareholders to net income (loss) applicable to common shareholders, excluding goodwill impairment charges | Net income (loss) applicable to common shareholders | Goodwill impairment charges | Net income (loss) applicable to common shareholders, excluding goodwill impairment charges | Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity | Common shareholders’ equity | Common Equivalent Securities | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible common shareholders’ equity |


Table of Contents The following table sets forth certain consolidated quarterly income statement data for the eight quarters ended December 31, 2004.
In our opinion, this unaudited information has been prepared on a basis consistent with our annual financial statements and includes all adjustments (consisting only of normal recurring adjustments) necessary for a fair statement of the unaudited quarterly data.
This information should be read in conjunction with our Consolidated Financial Statements and related Notes included in this annual report on Form 10-K.
The results of operations for any quarter are not necessarily indicative of results that we may achieve for any subsequent periods.


The following table provides information about our common stock that has been or may be issued under our equity compensation plans as of December 31, 2014: ?
Intercontinental Exchange Holdings, Inc.  2013 Omnibus Employee Incentive Plan ?
Intercontinental Exchange Holdings, Inc.  2013 Omnibus Non-Employee Director Incentive Plan ?
Intercontinental Exchange Holdings, Inc.  2009 Omnibus Incentive Plan ?
Intercontinental Exchange Holdings, Inc.  2003 Restricted Stock Deferral Plan for Outside Directors ?
Intercontinental Exchange Holdings, Inc.  2000 Stock Option Plan ?
Creditex Amended and Restated 1999 Stock Option/Stock Issuance Plan ?
NYSE Amended and Restated Omnibus Incentive Plan ?
NYSE 2006 Stock Incentive Plan The 2000 Stock Option Plan and the Creditex Amended and Restated 1999 Stock Option/Stock Issuance Plan were retired on May 14, 2009 when our shareholders approved the 2009 Omnibus Incentive Plan.
The 2009 Omnibus Incentive Plan was retired on May 17, 2013 when our shareholders approved the Intercontinental Exchange Holdings, Inc.  2013 Omnibus Employee Incentive Plan.
No future grants will be made from the retired ICE or Creditex plans.
Certain grants continue to be made to legacy NYSE employees


| 2017 2016 2015 | Beginning balance | Additions for tax positions of prior periods | Additions for tax positions of the current period | Additions due to acquisitions | Reductions for tax positions of prior periods | Reductions attributable to settlements with taxing authorities | Reductions attributable to lapses of applicable statute of limitations | Ending balance |


| 2007 2006 | Finished goods | Work in progress | Raw materials | Inventories, net | 2007 | Land | Building and equipment | Capitalized software costs | Instruments | Construction in progress | 1,975.9 | Accumulated depreciation | Property, plant and equipment, net |


Long-Term Liquidity Measurement: Net Stable Funding Ratio (NSFR) In the second quarter of 2016, the Federal Reserve Board, the FDIC and the OCC issued a proposed rule to implement the Basel III NSFR requirement.
The U. S. -proposed NSFR is largely consistent with the Basel Committee’s final NSFR rules.
In general, the NSFR assesses the availability of a bank’s stable funding against a required level.
A bank’s available stable funding would include portions of equity, deposits and long-term debt, while its required stable funding would be based on the liquidity characteristics of its assets, derivatives and commitments.
Standardized weightings would be required to be applied to the various asset and liabilities classes.
The ratio of available stable funding to required stable funding would be required to be greater than 100%.
While Citi believes that it is compliant with the proposed U. S. NSFR rules as of December 31, 2016, it will need to evaluate any final version of the rules, which are expected to be released during 2017.
The proposed rules would require full implementation of the U. S. NSFR beginning January 1, 2018.


| 2012 2011 2010 | (dollars in thousands) | Net trade sales by business segment: | Interconnect Products and Assemblies | Cable Products | $4,292,065 | Net trade sales by geographic area -1: | United States | China | Other International Locations | $4,292,065 |


At December 31, 2009, the fair value of the qualified pension plan assets was greater than both the accumulated benefit obligation and the projected benefit obligation.
The nonqualified pension plan, which contains several individual plans that are accounted for together, is unfunded.
Contributions from us and, in the case of postretirement benefit plans, participant contributions cover all benefits paid under the nonqualified pension plan and postretirement benefit plans.
The postretirement plan provides benefits to certain retirees that are at least actuarially equivalent to those provided by Medicare Part D and accordingly, we receive a federal subsidy as shown in the table.
PNC PENSION PLAN ASSETS Assets related to our qualified pension plan (the Plan) are held in trust (the Trust).
The trustee is PNC Bank, N. A.
The Trust is exempt from tax pursuant to section 501(a) of the Internal Revenue Code (the Code).
The Plan is qualified under section 401(a) of the Code.
Plan assets consist primarily of listed domestic and international equity securities and US government, agency, and corporate debt securities and real estate investments.
Plan assets as of December 31, 2009 do include common stock of PNC.
Assets related to the pension plan investments of the former National City qualified pension plan are held in trust.
The trustee is PNC Bank, N. A.
The Trust is exempt from tax pursuant to section 501(a) of the Code as of December 31, 2009.
The plan is qualified under section 401(a) of the Code.
During 2009, the majority of plan assets were transferred to the PNC Trust.
At December 31, 2009, plan assets consist primarily of cash equivalents, listed domestic and international equity securities and US government, agency, and corporate debt securities.
Plan assets do include common stock of PNC as discussed below.
The Pension Plan Administrative Committee (the Committee) adopted the current Pension Plan Investment Policy Statement, including the updated target allocations and allowable ranges shown below, on August 13, 2008.


| At December 31, | (Dollars in millions) | U.S. Reinsurance | International | Bermuda | Mt. Logan | Total | (Some amounts may not reconcile due to rounding.) |


Operating Lease Residual Values The carrying value of equipment on operating leases is affected by the estimated fair values of the equipment at the end of the lease (residual values).
Upon termination of the lease, the equipment is either purchased by the lessee or sold to a third party, in which case the company may record a gain or a loss for the difference between the estimated residual value and the sales price.
The residual values are dependent on current economic conditions and are reviewed quarterly.
Changes in residual value assumptions would affect the amount of depreciation expense and the amount of investment in equipment on operating leases.
The total operating lease residual values at October 31, 2012, 2011 and 2010 were $1,676 million, $1,425 million and $1,276 million, respectively.
The changes in 2012 and 2011 were primarily due to the increasing levels of operating leases.


Results of Operations Consolidated Results of Operations The following table summarizes net income (loss) for the periods presented.


| $ in millions First Quarter Second Quarter Third Quarter Fourth Quarter Total | 2018 | 2019 | 2020 | 2021 | 2022 - thereafter | Total |


| At December 31, | 2010 | Contract amount represents credit risk | Commitments to extend credit | Commercial | Consumer | Commercial real estate | Standby letters of credit |


| In millions of dollars 2010 2009 | Effective portion of cash flow | hedges included in AOCI | Interest rate contracts | Foreign exchange contracts | Total effective portion of cash flow | hedges included in AOCI | Effective portion of cash flow | hedges reclassified from AOCI | to earnings | Interest rate contracts | Foreign exchange contracts | Total effective portion of cash flow | hedges reclassified from AOCI to | earnings-1 |


Pension and postretirement expense decreased $97 million in 2013 compared to 2012, compared to an increase of $95 million for 2012 compared to 2011.2012 includes a $26 million charge related to the first-quarter 2012 voluntary early retirement incentive program (discussed in Note 10).
Pension and postretirement expense is recorded in cost of sales; selling, general and administrative expenses (SG&A); and research, development and related expenses (R&D).
Refer to Note 10 (Pension and Postretirement Plans) for components of net periodic benefit cost and the assumptions used to determine net cost.
Cost of Sales: Cost of sales includes manufacturing, engineering and freight costs.
Cost of sales, measured as a percent of net sales, was 52.1 percent in 2013, a decrease of 0.3 percentage points from 2012.
Cost of sales as a percent of sales decreased due to the combination of selling price increases and raw material cost decreases, as selling prices rose 0.9 percent and raw material cost deflation was approximately 2 percent favorable year-on-year.
In addition, lower pension and postretirement costs (of which a portion impacts cost of sales), in addition to organic volume increases, decreased cost of sales as a percent of sales.
These benefits were partially offset by the impact of 2012 acquisitions and lower factory utilization.
Cost of sales, measured as a percent of net sales, was 52.4 percent in 2012, a decrease of 0.6 percentage points from 2011.
The net impact of selling price/raw material cost changes was the primary factor that decreased cost of sales as a percent of sales, as selling prices increased 1.4 percent and raw material costs decreased approximately 2 percent.
This benefit was partially offset by higher pension and postretirement costs.
Selling, General and Administrative Expenses: Selling, general and administrative expenses (SG&A) increased $282 million, or 4.6 percent, in 2013 when compared to 2012.
In 2013, SG&A included strategic investments in business transformation, enabled by 3M’s global enterprise resource planning (ERP) implementation, in addition to increases from acquired businesses that were largely not in 3M’s 2012 spending (Ceradyne, Inc.  and Federal Signal Technologies), which were partially offset by lower pension and postretirement expense.
SG&A, measured as a percent of sales, increased 0.3 percentage points to 20.7 percent in 2013, compared to 20.4 percent in 2012.
SG&A decreased $68 million, or 1.1 percent, in 2012 when compared to 2011.
In addition to cost-control and other productivity efforts, 3M experienced some savings from its first-quarter 2012 voluntary early retirement incentive program and other restructuring actions.
These benefits more than offset increases related to acquisitions, higher year-on-year pension and postretirement expense, and restructuring expenses.
SG&A in 2012 included increases from acquired businesses which were not in 3M’s full-year 2011 base spending, primarily related to the 2011 acquisitions of Winterthur Technologie AG and the do-it-yourself and professional business of GPI Group, in addition to SG&A spending related to the 2012 acquisitions of Ceradyne, Inc. , Federal Signal Technologies Group, and CodeRyte, Inc.  SG&A, measured as a percent of sales, was 20.4 percent in 2012, a decrease of 0.4 percentage points when compared to 2011.
Research, Development and Related Expenses: Research, development and related expenses (R&D) increased 4.9 percent in 2013 compared to 2012 and increased 4.1 percent in 2012 compared to 2011, as 3M continued to support its key growth initiatives, including more R&D aimed at disruptive innovation.
In 2013, increases from acquired businesses that were largely not in 3M’s 2012 spending (primarily Ceradyne, Inc.  and Federal Signal Technologies) were partially offset by lower pension and postretirement expense.
In 2012, investments to support key growth initiatives, along with higher pension and postretirement expense, were partially


ITEM 7.
Managements Discussion and Analysis of Financial Condition and Results of Operations.
This Managements Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our discussion of cautionary statements and significant risks to the companys business under Item 1A.
Risk Factors of the 2018 Form?10-K.  OVERVIEW Our sales and revenues for 2018 were $54.722 billion, a 20?percent increase from 2017 sales and revenues of $45.462?billion.
The increase was primarily due to higher sales volume, mostly due to improved demand across all regions and across the three primary segments.
Profit per share for 2018 was $10.26, compared to profit per share of $1.26 in 2017.
Profit was $6.147 billion in 2018, compared with $754 million in 2017.
The increase was primarily due to lower tax expense, higher sales volume, decreased restructuring costs and improved price realization.
The increase was partially offset by higher manufacturing costs and selling, general and administrative (SG&A) and research and development (R&D) expenses and lower profit from the Financial Products Segment.
Fourth-quarter 2018 sales and revenues were $14.342 billion, up $1.446 billion, or 11 percent, from $12.896 billion in the fourth quarter of 2017.
Fourth-quarter 2018 profit was $1.78 per share, compared with a loss of $2.18 per share in the fourth quarter of 2017.
Fourth-quarter 2018 profit was $1.048 billion, compared with a loss of $1.299 billion in 2017.
Highlights for 2018 include: z Sales and revenues in 2018 were $54.722 billion, up 20?percent from 2017.
Sales improved in all regions and across the three primary segments.
z Operating profit as a percent of sales and revenues was 15.2?percent in 2018, compared with 9.8 percent in 2017.
Adjusted operating profit margin was 15.9 percent in 2018, compared with 12.5 percent in 2017.  z Profit was $10.26 per share for 2018, and excluding the items in the table below, adjusted profit per share was $11.22.
For 2017 profit was $1.26 per share, and excluding the items in the table below, adjusted profit per share was $6.88.  z In order for our results to be more meaningful to our readers, we have separately quantified the impact of several significant items:


The services we currently provide include collection, landfill (solid and hazardous waste landfills), transfer, recycling and resource recovery and other services, as described below.
The following table shows revenues (in millions) contributed by these services for the years ended December 31:


| Year ended December 31, | 2005 | (in millions) | Operating results: | Revenues | Benefits and expenses | Adjusted operating income | Realized investment gains (losses), net, and related adjustments(1) | Related charges-2 | Income from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accountingchange | December 31, 2005 | Financial Services Businesses | ($ in millions) | Fixed Maturities: | Public, available for sale, at fair value | Public, held to maturity, at amortized cost | Private, available for sale, at fair value | Private, held to maturity, at amortized cost | Trading account assets supporting insurance liabilities, at fair value | Other trading account assets, at fair value | Equity securities, available for sale, at fair value | Commercial loans, at book value | Policy loans, at outstanding balance | Other long-term investments-1 | Short-term investments | Total general account investments | Invested assets of other entities and operations-2 | Total investments | December 31, 2005 | Amortized Cost | (in millions) | Short-term Investments and Cash Equivalents | Fixed Maturities: | U.S. Government | Foreign Government | Corporate Securities | Asset-Backed Securities | Mortgage Backed | Total Fixed Maturities | Equity Securities | Total trading account assets supporting insurance liabilities |


CITIZENS FINANCIAL GROUP, INC.  MANAGEMENTS DISCUSSION AND ANALYSIS 108 The secondary source of our interest rate risk is driven by longer term rates comprising the rollover or reinvestment risk on fixed rate loans as well as the prepayment risk on mortgage related loans and securities funded by non-rate sensitive deposits and equity.
The primary goal of interest rate risk management is to control exposure to interest rate risk within policy limits approved by the Board.
These limits and guidelines reflect our tolerance for interest rate risk over both shortterm and long-term horizons.
To ensure that exposure to interest rate risk is managed within this risk appetite, we must both measure the exposure and, as necessary, hedge it.
The Treasury Asset and Liability Management team is responsible for measuring, monitoring and reporting on the structural interest rate risk position.
These exposures are reported on a monthly basis to the Asset and Liability Committee (ALCO) and at Board meetings.
We measure structural interest rate risk through a variety of metrics intended to quantify both short-term and long-term exposures.
The primary method that we use to quantify interest rate risk is simulation analysis in which we model net interest income from assets, liabilities and hedge derivative positions under various interest rate scenarios over a three-year horizon.
Exposure to interest rate risk is reflected in the variation of forecasted net interest income across scenarios.
Key assumptions in this simulation analysis relate to the behavior of interest rates and spreads, the changes in product balances and the behavior of loan and deposit clients in different rate environments.
The most material of these behavioral assumptions relate to the repricing characteristics and balance fluctuations of deposits with indeterminate (i. e. , non-contractual) maturities as well as the pace of mortgage prepayments.
Assessments are periodically made by running sensitivity analysis of the impact of key assumptions.
The results of these analyses are reported to ALCO.
As the future path of interest rates cannot be known in advance, we use simulation analysis to project net interest income under various interest rate scenarios including a most likely (implied forward) scenario as well as a variety of deliberately extreme and perhaps unlikely scenarios.
These scenarios may assume gradual ramping of the overall level of interest rates, immediate shocks to the level of rates and various yield curve twists in which movements in short- or long-term rates predominate.
Generally, projected net interest income in any interest rate scenario is compared to net interest income in a base case where market forward rates are realized.
The table below reports net interest income exposures against a variety of interest rate scenarios.
Our policies involve measuring exposures as a percentage change in net interest income over the next year due to either instantaneous or gradual parallel changes in rates relative to the market implied forward yield curve.
With rates rising from historically low levels due to Federal Open Market Committee rate increases in December 2016, March 2017, June 2017, and December 2017, exposure to falling rates has increased.
While rates have begun to rise off of the very low levels, an instantaneous decline of 2.0% is still not possible.
As the following table illustrates, our balance sheet is asset-sensitive: net interest income would benefit from an increase in interest rates.
Exposure to a decline in interest rates is within limit.
While an instantaneous and severe shift in interest rates was used in this analysis, we believe that any actual shift in interest rates would likely be more gradual and would therefore have a more modest impact as demonstrated in the following table.
The table below presents the sensitivity of net interest income to various parallel yield curve shifts from the market implied forward yield curve:


| Year Ended December 31, Variance 2011 vs. 2010 | 2011 | Net operating interest income | Commissions | Fees and service charges | Principal transactions | Gains on loans and securities, net | Net impairment | Other revenues | Total non-interest income | Total net revenue |


| Millions of Dollars OperatingLeases Capital Leases | 2007 | 2008 | 2009 | 2010 | 2011 | Later Years | Total minimum lease payments | Amount representing interest | Present value of minimum lease payments |


Determining the fair value of a FTR requires numerous management forecasts that vary in observability, including various forward commodity prices, retail and wholesale demand, generation, and resulting transmission system congestion.
Given the limited observability of managements forecasts for several of these inputs, these instruments have been assigned a Level 3.
Level 3 commodity derivatives assets and liabilities include $36.9 million and $13.4 million of estimated fair values, respectively, for FTRs held at Dec.  31, 2008.
Determining the fair value of certain commodity forwards and options can require management to make use of subjective forward price and volatility forecasts for commodities and locations with limited observability, or subjective forecasts which extend to periods beyond those readily observable on active exchanges or quoted by brokers.
When less observable forward price and volatility forecasts are significant to determining the value of commodity forwards and options, these instruments are assigned to Level 3.
Level 3 commodity derivatives assets and liabilities include $2.7 million and $2.9 million of estimated fair values, respectively, for commodity forwards and options held at Dec.  31, 2008.
Nuclear Decommissioning Fund  Nuclear decommissioning fund assets assigned to Level 3 consist of asset-backed and mortgage-backed securities.
To the extent appropriate, observable market inputs are utilized to estimate the fair value of these securities, however, less observable and subjective risk-based adjustments to estimated yield and forecasted prepayments are often significant to these valuations.
Therefore, estimated fair values for all asset-backed and mortgagebacked securities totaling $109.4 million in the nuclear decommissioning fund at Dec.  31, 2008 (approximately 9 percent of total assets measured at fair value), are assigned to Level 3.
Realized and unrealized gains and losses on nuclear decommissioning fund investments are deferred as a component of a nuclear decommissioning regulatory asset.


| Denominator | 2008 | Related business revenues: | Solid waste | Waste-to-energy | Base business | Commodity | Electricity (IPPs) | Fuel surcharges and mandated fees | Total Company |


| 2010 2009 2008 | (Millions of dollars) | Exploration and Production | Exploration | Production and development | Acquisitions (including leaseholds) | 5,394 | Marketing, Refining and Corporate | Total |


| In millions of dollars Net unrealized gains (losses) on investment securities Foreign currency translation adjustment, net of hedges Cash flow hedges Pension liability adjustments Accumulated other comprehensive income (loss) | Balance at January 1, 2008 | Change in net unrealized gains (losses) on investment securities, net of taxes | Reclassification adjustment for net losses included in net income, net of taxes | Foreign currency translation adjustment, net of taxes-1 | Cash flow hedges, net of taxes-2 | Pension liability adjustment, net of taxes-3 | Change | Balance at December 31, 2008 | Cumulative effect of accounting change (ASC 320-10-35/FSP FAS 115-2 | and FAS 124-2) | Balance at January 1, 2009 | Change in net unrealized gains (losses) on investment securities, net of taxes(4) | Reclassification adjustment for net losses included in net income, net of taxes | Foreign currency translation adjustment, net of taxes-1 | Cash flow hedges, net of taxes-2 | Pension liability adjustment, net of taxes-3 | Change | Balance at December 31, 2009 | Change in net unrealized gains (losses) on investment securities, net of taxes(4) | Reclassification adjustment for net gains included in net income, net of taxes | Foreign currency translation adjustment, net of taxes-1 | Cash flow hedges, net of taxes-2 | Pension liability adjustment, net of taxes-3 | Change | Balance at December 31, 2010 |


| In millions 2005 2004 2003 | Sales | Operating Profit |


| Percentages ofRelated Revenues Fiscal Year Ended September 30, | 2014 | Gross profit — Home sales | Gross profit — Land/lot sales and other | Inventory and land option charges | Gross profit — Total homebuilding | Selling, general and administrative expense | Interest expense | Other (income) | Homebuilding pre-tax income | September 30, | 2015 | (In millions) | Buildings and improvements | Model home furniture | Office furniture and equipment | Land | Total property and equipment | Accumulated depreciation | Property and equipment, net -1 |


2010 Annual Report 27 We continue to maximize our operating cash flows with our working capital initiatives designed to improve working capital items that are most directly affected by changes in sales volume, such as receivables, inventories and accounts payable.
Those improvements are being driven by several actions including non-recourse factoring of non-US trade receivables, revised contractual payment terms with customers and vendors, enhanced collection processes and various supply chain initiatives designed to optimize inventory levels.
Progress in this area is monitored each period and is a component of our annual incentive plan.
The following summarizes certain working capital components expressed as a percentage of trailing twelve months’ net sales.


| 2014 2013 2012 2011 2010 | As of December 31(dollars in millions) | Commercial: | Commercial real estate | Commercial and industrial | Equipment financing | Retail: | Residential mortgage | Home equity | Other consumer | Total originated allowance for loan losses |


| One Percentage Point | Increase | Effect on total service and interest cost components | Effect on benefit obligation | Year Ended December 31, 2010 | Financial Services Businesses | Yield-1 | ($ in millions) | Fixed maturities | Trading account assets supporting insurance liabilities | Equity securities | Commercial mortgage and other loans | Policy loans | Short-term investments and cash equivalents | Other investments | Gross investment income before investment expenses | Investment expenses | Investment income after investment expenses | Investment results of other entities and operations-2 | Total investment income |


FINANCIAL INSTRUMENTS NOT RECORDED AT FAIR VALUE ON A RECURRING BASIS Financial instruments not recorded at fair value on a recurring basis include non-marketable equity securities and equity method investments that have not been remeasured or impaired in the current period, grants receivable, loans receivable, reverse repurchase agreements, and our short-term and long-term debt.
Prior to the adoption of the new financial instrument standard, our non-marketable cost method investments were disclosed at fair value on a recurring basis.
The carrying amount and fair value of our non-marketable cost method investments as of December 30, 2017 were $2.6 billion and $3.6 billion, respectively.
These measures are classified as Level 3 within the fair value hierarchy based on the nature of the fair value inputs.
As of December 29, 2018, the aggregate carrying value of grants receivable, loans receivable, and reverse repurchase agreements was $833 million (the aggregate carrying amount as of December 30, 2017 was $935 million).
The estimated fair value of these financial instruments approximates their carrying value and is categorized as Level 2 within the fair value hierarchy based on the nature of the fair value inputs.
For information related to the fair value of our short-term and long-term debt, see Note 15: Borrowings.


| Quarter Ended | March 31, 2007 | (Thousands of Dollars, except per share amounts) | Revenue | Operating income | Income from continuing operations | Discontinued operations — income | Net income | Earnings available for common shareholders | Earnings per share total — basic | Earnings per share total — diluted |


| December 31, 2017 December 31, 2016 | Dollars in millions | Geography | California | Florida | New Jersey | Illinois | Pennsylvania | Maryland | New York | Virginia | North Carolina | Ohio | All other states | Total residential realestate loans |


| Year Ended December 31, | (In thousands) | Mens | Womens | Youth | Accessories | Total net sales | License revenues | Total net revenues |


| Percent Hypothetical Reduction in Fair Value and Related Impairment | (in millions) | Eastern Division | NorthCentral Division | Southern Division | Western Division | $— |


| December 31 | 2006 | (In thousands) | Commitments to extend credit | Home equity lines of credit | Commercial real estate loans to be sold | Other commercial real estate and construction | Residential real estate loans to be sold | Other residential real estate | Commercial and other | Standby letters of credit | Commercial letters of credit | Financial guarantees and indemnification contracts | Commitments to sell real estate loans |


Our franchise program As of December 30, 2007, our 4,584 domestic franchise stores were owned and operated by our 1,243 domestic franchisees.
The success of our franchise formula, which enables franchisees to benefit from our brand name with a relatively low initial capital investment, has attracted a large number of motivated entrepreneurs as franchisees.
As of December 30, 2007, the average domestic franchisee operated approximately three to four stores and had been in our franchise system for twelve years.
At the same time, only seven of our domestic franchisees operated more than 50 stores, including our largest domestic franchisee, which operates 143 stores.
Domestic franchisees We apply rigorous standards to prospective franchisees.
We generally require prospective domestic franchisees to manage a store for at least one year before being granted a franchise.
This enables us to observe the operational and financial performance of a potential franchisee prior to entering into a long-term contract.
We also restrict the ability of domestic franchisees to become involved in other businesses, which focuses our franchisees attention on operating their stores.
As a result, the vast majority of our franchisees come from within the Dominos Pizza system.
We believe these standards are unique to the franchise industry and result in qualified and focused franchisees operating their stores.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) ACE Limited and Subsidiaries Share-based compensation expense for stock options and shares issued under the Employee Stock Purchase Plan (ESPP) amounted to $24 million ($22 million after tax or $0.07 per basic and diluted share), $23 million ($21 million after tax or $0.06 per basic and diluted share), and $20 million ($18 million after tax or $0.05 per basic and diluted share) for the years ended December 31, 2008, 2007, and 2006, respectively.
For the years ended December 31, 2008, 2007 and 2006, the expense for the restricted stock was $101 million ($71 million after tax), $77 million ($57 million after tax), and $65 million ($49 million after tax), respectively.
During 2004, the Company established the ACE Limited 2004 Long-Term Incentive Plan (the 2004 LTIP).
Once the 2004 LTIP was approved by shareholders, it became effective February 25, 2004.
It will continue in effect until terminated by the Board.
This plan replaced the ACE Limited 1995 Long-Term Incentive Plan, the ACE Limited 1995 Outside Directors Plan, the ACE Limited 1998 Long-Term Incentive Plan, and the ACE Limited 1999 Replacement Long-Term Incentive Plan (the Prior Plans) except as to outstanding awards.
During the Companys 2008 annual general meeting, shareholders voted to increase the number of Common Shares authorized to be issued under the 2004 LTIP from 15,000,000 Common Shares to 19,000,000 Common Shares.
Accordingly, under the 2004 LTIP, a total of 19,000,000 Common Shares of the Company are authorized to be issued pursuant to awards made as stock options, stock appreciation rights, performance shares, performance units, restricted stock, and restricted stock units.
The maximum number of shares that may be delivered to participants and their beneficiaries under the 2004 LTIP shall be equal to the sum of: (i) 19,000,000 shares; and (ii) any shares that are represented by awards granted under the Prior Plans that are forfeited, expired, or are canceled after the effective date of the 2004 LTIP, without delivery of shares or which result in the forfeiture of the shares back to the Company to the extent that such shares would have been added back to the reserve under the terms of the applicable Prior Plan.
As of December 31, 2008, a total of 10,591,090 shares remain available for future issuance under this plan.
Under the 2004 LTIP, 3,000,000 Common Shares are authorized to be issued under the ESPP.
As of December 31, 2008, a total of 989,812 Common Shares remain available for issuance under the ESPP.
Stock options The Companys 2004 LTIP provides for grants of both incentive and non-qualified stock options principally at an option price per share of 100 percent of the fair value of the Companys Common Shares on the date of grant.
Stock options are generally granted with a 3-year vesting period and a 10-year term.
The stock options vest in equal annual installments over the respective vesting period, which is also the requisite service period.
Included in the Companys share-based compensation expense in the year ended December 31, 2008, is the cost related to the unvested portion of the 2005-2008 stock option grants.
The fair value of the stock options was estimated on the date of grant using the Black-Scholes option-pricing model that uses the assumptions noted in the following table.
The risk-free interest rate is based on the U. S.  Treasury yield curve in effect at the time of grant.
The expected life (estimated period of time from grant to exercise date) was estimated using the historical exercise behavior of employees.
Expected volatility was calculated as a blend of (a) historical volatility based on daily closing prices over a period equal to the expected life assumption, (b) longterm historical volatility based on daily closing prices over the period from ACEs initial public trading date through the most recent quarter, and (c) implied volatility derived from ACEs publicly traded options.
The fair value of the options issued is estimated on the date of grant using the Black-Scholes option-pricing model, with the following weighted-average assumptions used for grants for the years indicated:


| Twelve Months Ended December 31, Change | Net cash provided by (used in): | (In millions) | Net short-term borrowings (repayments) | Proceeds from issuance of long-term debt | Payments on long-term debt | Payment of contingent consideration | Debt issuance costs |


| December 31, 2008 Outstandings Year Ended December 31, 2008  SOP 03-3 Net Charge-offs-1 | (Dollars in millions) | California | Florida | Arizona | Virginia | Washington | Other U.S./ Foreign | Total SOP 03-3 discontinued real estate loans |


Investing Activities Net cash used in investing activities was $752.3 million, $404.2 million and $1,759.1 million in the years ended December 31, 2017, 2016 and 2015, respectively.
The increase in the year ended December 31, 2017 compared with the year ended December 31, 2016 was primarily due to the acquisition of Sevcon and higher capital expenditures, including tooling outlays, offset by the 2016 sales of Divgi-Warner and the Remy light vehicle aftermarket business.
The decrease in the year ended December 31, 2016 compared with the year ended December 31, 2015 was primarily driven by lower capital expenditures, including tooling outlays, the 2016 sales of Divgi-Warner and the Remy light vehicle aftermarket business and the 2015 acquisition of Remy and BERU Diesel.
Year over year capital spending increase of $59.4 million during the year ended December 31, 2017 is due to higher spending required for new program awards within the Drivetrain segment.
Year over year capital spending decrease of $76.7 million during the year ended December 31, 2016 was primarily due to lower spending on new buildings and building expansions.


| FCX Issuer FM O&G LLC Guarantor Non-guarantor Subsidiaries Eliminations Consolidated FCX | Revenues | Total costs and expenses | Operating loss | Interest expense, net | Net gain on early extinguishment and exchanges of debt | Other income (expense), net | (Loss) income before income taxes and equity in affiliated companies’ net (losses) earnings | (Provision for) benefit from income taxes | Equity in affiliated companies’ net (losses) earnings | Net (loss) income from continuing operations | Net loss from discontinued operations | Net (loss) income | Net income, and gain on redemption and preferred dividends attributable to noncontrolling interests: | Continuing operations | Discontinued operations | Net (loss) income attributable to common stockholders | Other comprehensive (loss) income | Total comprehensive (loss) income |


| Payments Due by December 31, | Contractual ObligationsMillions | Debt [a] | Operating leases [b] | Capital lease obligations [c] | Purchase obligations [d] | Other post retirement benefits [e] | Income tax contingencies [f] | Total contractualobligations | Millions | Deferred income tax liabilities: | Property | Other | Total deferred income tax liabilities | Deferred income tax assets: | Accrued wages | Accrued casualty costs | Stock compensation | Retiree benefits | Credits | Other | Total deferred income tax assets | Net deferred income tax liability | Millions | Notes and debentures, 1.8% to 7.9% due through 2067 | Equipment obligations, 2.6% to 6.7% due through 2031 | Capitalized leases, 3.1% to 8.0% due through 2028 | Receivables Securitization (Note 11) | Term loans - floating rate, due in 2019 | Commercial paper,2.6%to 2.8% due in 2019 | Medium-term notes,9.3%to 10.0% due through 2020 | Mortgage bonds, redeemed March 15, 2018 | Unamortized discount and deferred issuance costs | Total debt | Less: current portion | Total long-term debt |


| % Change | Dollar in Millions | Cost of products sold | Marketing, selling and administrative | Research and development | Other (income)/expense | Total Expenses |


Derivatives used in trading activities Various derivative financial instruments are offered to enable customers to meet their financing and investing objectives and for their risk management purposes.
Derivative financial instruments used in trading activities consisted predominantly of interest rate swaps, but also included interest rate caps, floors, and futures, as well as foreign exchange options.
Interest rate options grant the option holder the right to buy or sell an underlying financial instrument for a predetermined price before the contract expires.
Interest rate futures are commitments to either purchase or sell a financial instrument at a future date for a specified price or yield and may be settled in cash or through delivery of the underlying financial instrument.
Interest rate caps and floors are option-based contracts that entitle the buyer to receive cash payments based on the difference between a designated reference rate and a strike price, applied to a notional amount.
Written options, primarily caps, expose Huntington to market risk but not credit risk.
Purchased options contain both credit and market risk.
The interest rate risk of these customer derivatives is mitigated by entering into similar derivatives having offsetting terms with other counterparties.
The credit risk to these customers is evaluated and included in the calculation of fair value.
The net fair values of these derivative financial instruments, for which the gross amounts are included in accrued income and other assets or accrued expenses and other liabilities at December 31, 2010 and 2009, were $46.3 million and $45.1 million, respectively.
The total notional values of derivative financial instruments used by Huntington on behalf of customers, including offsetting derivatives, were $9.8 billion and $9.6 billion at December 31, 2010 and 2009, respectively.
Huntingtons credit risks from interest rate swaps used for trading purposes were $263.0 million and $255.7 million at the same dates, respectively.


| December 31, 2015 | Asset Category | (in millions) | Equity securities: | U.S. large cap stocks | U.S. small cap stocks | Non-U.S. large cap stocks | Non-U.S. small cap stocks | Emerging markets | Debt securities: | U.S. investment grade bonds | U.S. high yield bonds | Non-U.S. investment grade bonds | Real estate investment trusts | Hedge funds | Pooled pension funds | AVC assets (pooled pension funds) | Cash equivalents | Total | December 31, 2014 | Asset Category | (in millions) | Equity securities: | U.S. large cap stocks | U.S. small cap stocks | Non-U.S. large cap stocks | Non-U.S. small cap stocks | Emerging markets | Debt securities: | U.S. investment grade bonds | U.S. high yield bonds | Non-U.S. investment grade bonds | Real estate investment trusts | Hedge funds | Pooled pension funds | AVC assets (pooled pension funds) | Cash equivalents | Total |


| For the year ended December 31, | 2008 | (in billions) | Account values, beginning of period | Net cash flow | Credited investment performance | Other | Account values, end of period |


| Year ended December 31, U.S. pension benefits Non- U.S. pension benefits Other postretirement benefits before Medicare Part D subsidy | (in millions) | 2006 | 2007 | 2008 | 2009 | 2010 | Years 2011–2015 |


| For the years ended December 31, 2016 2015 2014 | Units granted | Weighted-average fair value at date of grant | Monte Carlo simulation assumptions: | Estimated values | Dividend yields | Expected volatility |


FAIR VALUE OF FINANCIAL INSTRUMENTS: The carrying values of cash, cash equivalents, accounts receivable, accounts payable, accrued expenses, other accrued liabilities and short-term obligations are deemed to be reasonable estimates of their fair values because of their short-term nature.
The fair values of investments are based on quoted market prices for those or similar investments.
The carrying value of long-term debt is considered a reasonable estimate of fair value due to the variable interest rate underlying the Companys credit facility.
The Companys interest rate swap agreement is recorded at fair value, utilizing the value of a hypothetical derivative with the same characteristics as the swap agreement.
DERIVATIVE FINANCIAL INSTRUMENTS: The Company holds a derivative financial instrument to manage interest rate risk.
The Company accounts for this instrument as a cash flow hedge in accordance with FASB Statement No.133, Accounting for Derivative Instruments and Hedging Activities (Statement No.133), which requires that every derivative instrument be recorded on the balance sheet as either an asset or liability measured at its fair value as of the reporting date.
Statement No.133 also requires that changes in the Companys derivative fair value be recognized in earnings, unless specific hedge accounting and documentation criteria are met (i. e.  the instrument is accounted for as a hedge).
The Company records the effective portion of its derivative financial instrument in accumulated other comprehensive income on the consolidated balance sheets.
Any ineffective portion or excluded portion of the designated cash flow hedge would be recognized in earnings.
The Companys current cash flow hedge does not have an ineffective or excluded portion.
The Company utilizes the hypothetical derivative method to ensure the hedge is effective in offsetting variability in interest expense associated with its credit facility.
The Company uses the dollar offset method for calculating ineffectiveness by comparing the cumulative fair value of the swap to the cumulative fair value of the hypothetical derivative.


| For the years ended December 31 2013 2012 2011 | Shares authorized for repurchase at January 1 | Additional authorizations(a) | Share repurchases(b) | Shares authorized for repurchase at December 31 | Average price paid per share |


| $ in millions Total-4,5,6 Within 1 Year 1-3 Years 3-5 Years More Than 5 Years | Long-term debt-1 | Estimated interest payments on long-term debt-1 | Operating leases-2 | Purchase obligations-3 | Total |