(8) The computation of average common equity for each business segment is determined using the Companys Required Capital framework, an internal capital adequacy measure (see Liquidity and Capital ResourcesRegulatory RequirementsRequired Capital herein).
Average common equity for each business segment is a non-GAAP financial measure that the Company considers to be a useful measure to the Company and investors to assess capital adequacy.
(9) The calculation of each business segments return on average common equity uses income from continuing operations applicable to Morgan Stanley less preferred dividends as a percentage of each business segments average common equity.
The return on average common equity is a non-GAAP financial measure that the Company considers to be a useful measure to the Company and investors to assess operating performance.
The effective tax rates used in the computation of business segments return on average common equity were determined on a separate legal entity basis.
To determine the return on consolidated average common equity, excluding the impact of DVA, also a non-GAAP financial measure, both the numerator and the denominator were adjusted to exclude the impact of DVA.
The impact of DVA in 2014, 2013 and 2012 was 0.8%, (0.6)% and (5.1)%, respectively.
(10) Average tangible common equity is a non-GAAP financial measure that the Company considers to be a useful measure to the Company and investors to assess capital adequacy.
For a discussion of tangible common equity, see Liquidity and Capital ResourcesCapital Management herein.
(11) Return on average tangible common equity is a non-GAAP financial measure that the Company considers to be a useful measure to the Company and investors to assess capital adequacy.
The calculation of return on average tangible common equity uses income from continuing operations applicable to Morgan Stanley less preferred dividends as a percentage of average tangible common equity.
To determine the return on average tangible common equity, excluding the impact of DVA, also a non-GAAP financial measure, both the numerator and the denominator were adjusted to exclude the impact of DVA.
The impact of DVA in 2014, 2013 and 2012 was 0.8%, (0.7)% and (5.8)%, respectively.
(12) From time to time, the Company may disclose certain non-GAAP financial measures in the course of its earnings releases, earnings conference calls, financial presentations and otherwise.
For these purposes, U.
S.  GAAP refers to accounting principles generally accepted in the U. S.  The U. S.  Securities and Exchange Commission (the SEC) defines a non-GAAP financial measure as a numerical measure of historical or future financial performance, financial positions, or cash flows that excludes or includes amounts or is subject to adjustments that effectively exclude, or include, amounts from the most directly comparable measure calculated and presented in accordance with U. S.  GAAP.
Non-GAAP financial measures disclosed by the Company are provided as additional information to investors in order to provide them with further transparency about, or as an alternative method for assessing, the Companys financial condition and operating results.
These measures are not in accordance with, or a substitute for, U. S.  GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies.
Whenever the Company refers to a non-GAAP financial measure, the Company will also generally present the most directly comparable financial measure calculated and presented in accordance with U. S.  GAAP, along with a reconciliation of the differences between the non-GAAP financial measure and the U. S.  GAAP financial measure.


| December 31, 2012 December 31, 2011 | Amount | Fixed maturities, AFS, at fair value | Fixed maturities, at fair value using the fair value option | Equity securities, AFS, at fair value | Mortgage loans | Policy loans, at outstanding balance | Limited partnerships and other alternative investments | Other investments [1] | Short-term investments | Total investments excluding equity securities, trading | Equity securities, trading, at fair value [2] | Total investments [3] | For the years ended December 31, | 2012 | Amount | Fixed maturities [2] | Equity securities, AFS | Mortgage loans | Policy loans | Limited partnerships and other alternative investments | Other Investments [3] | Investment expense | Total securities AFS and other | Equity securities, trading | Total net investment income (loss), before-tax | Total securities, AFS and other excluding limited partnerships and other alternative investments |


Hologic, Inc.  Notes to Consolidated Financial Statements (continued) (In thousands, except per share data) purchased products that the Company continues to sell as well as utilize to enhance and incorporate into the Companys existing products.
The intangible assets are expected to be amortized on a straight-line basis over the expected useful lives as the anticipated undiscounted cash flows are relatively consistent over the expected useful lives of the intangible assets.
The estimated $600 of purchase price allocated to in-process research and development projects related to AEGs Organic Photoconductor Coating and Selenium product lines.
The deferred income tax liability relates to the tax effect of acquired identifiable intangible assets, and fair value adjustments to acquired inventory, land, building and related improvements as such amounts are not deductible for tax purposes.
The Company had an existing relationship with AEG as a supplier of inventory items.
The supply agreement was entered into in prior years at arms length terms and conditions.
No minimum purchase requirements existed and the pricing was consistent with other vendor agreements.
Acquisition of R2 Technology, Inc.  On July 13, 2006, the Company completed the acquisition of R2 Technology, Inc.  (R2) pursuant to an Agreement and Plan of Merger dated April 24, 2006.
The results of operations for R2 have been included in the Companys consolidated financial statements from the date of acquisition as part of its Mammography/Breast Care business segment.
R2, previously located in Santa Clara, California, develops and sells computer-aided detection technology and products (CAD), an innovative technology that assists radiologists in the early detection of breast cancer.
The aggregate purchase price for R2 of approximately $220,600 consisted of approximately 4,400 shares of Hologic Common Stock valued at $205,500, cash paid of $6,900, debt assumed of $5,700 and approximately $2,500 for acquisition related fees and expenses.
The Company determined the fair value of the shares issued in connection with the acquisition in accordance with EITF Issue No.99-12, Determination of the Measurement Date for the Market Price of Acquirer Securities Issued in a Purchase Business Combination.
The components and allocation of the purchase price, consists of the following approximate amounts:


| December 31, | 2011 | (In millions) | Other Assets: | Premium tax offset for future undiscounted assessments | Premium tax offsets currently available for paid assessments | Receivable for reimbursement of paid assessments -1 | $117 | Other Liabilities: | Insolvency assessments |


| 2017 2016 2015 | Amount | Income tax expense at the U.S. federal statutory tax rate | Deferred tax write down and transition tax(a) | Excess tax benefits for share-based payment awards | U.S. manufacturing deduction benefit(b) | Research and development tax credit | Tax deductible dividends | Other, net | Income tax expense |


Equity Compensation Plan Information The following table summarizes the equity compensation plan information as of December 31, 2011.
Information is included for equity compensation plans approved by the stockholders and equity compensation plans not approved by the stockholders.


| Payment Due by Period | Total | Notes and Term Loan, including interest | Operating lease obligations | Purchase obligations | Total |


| Favorable/(Unfavorable) | Years ended December 31, | In millions | External sales-1 | Intersegment sales-1 | Total sales | Depreciation and amortization | Research, development and engineering expenses | Equity, royalty and interest income from investees | Interest income | Loss contingency charges-2 | Impairment of light-duty diesel assets-2 | Restructuring actions and other charges-2 | Segment EBIT | Percentage Points | Segment EBIT as a percentage of total sales |


| (Dollar amounts in millions) 2007 Percent change 2006 Percent change 2005 | Salaries and bonuses | Employee benefits: | Employee health and insurance | Retirement | Payroll taxes and other | Total benefits | Total salaries and employee benefits | Full-time equivalent employees(“FTEs”) at December 31 |


| Amount (In Millions) | 2014 net revenue | Retail electric price | Volume/weather | Louisiana business combination customer credits | MISO deferral | Waterford 3 replacement steam generator provision | Other | 2015 net revenue |


| U.S. International | Pension plan assets and obligations, net: | Prepaid benefit cost | Accrued current benefit cost | Accrued noncurrent benefit cost | Net liability recognized in the Consolidated Balance Sheet | U.S. | Other postretirement benefit obligations: | Accrued current benefit cost | Accrued noncurrent benefit cost | Liability recognized in the Consolidated Balance Sheet |


| December 31, | (dollar amounts in millions) | Consolidated capital calculations: | Common shareholders’ equity | Preferred shareholders’ equity | Total shareholders’ equity | Goodwill | Other intangible assets | Other intangible asset deferred tax liability-1 | Total tangible equity-2 | Preferred shareholders’ equity | Total tangible common equity-2 | Total assets | Goodwill | Other intangible assets | Other intangible asset deferred tax liability-1 | Total tangible assets-2 | Tier 1 capital | Preferred shareholders’ equity | Trust-preferred securities | REIT-preferred stock | Tier 1 common equity-2 | Risk-weighted assets (RWA) | Tier 1 common equity / RWA ratio-2 | Tangible equity / tangible asset ratio-2 | Tangible common equity / tangible asset ratio-2 | Tangible common equity / RWA ratio-2 | Year ended December 31, | (dollar amounts in thousands) | Retail and Business Banking | Regional and Commercial Banking | AFCRE | WGH | Treasury / Other | Net income |


| Years Ended December 31 2018 2017 2016 | Net product sales recorded by Merck | Merck’s profit share from sales in Bayer’s marketing territories | Total sales | Cost of sales-1 | Selling, general and administrative | Research and development | December 31 | Receivables from Bayer included inOther current assets | Payables to Bayer included inAccrued and other current liabilities-2 | Payables to Bayer included inOther Noncurrent Liabilities-2 |


| 2018 2017 2016 | Year ended December 31,(in millions) | Foreign exchange derivatives |


| Year Ended Dec. 31 | 2015 | Xcel Energy | Coal | Natural Gas | Wind(a) | Nuclear | Hydroelectric | Other(b) | Total | Owned generation | Purchased generation | Total |


MASCO CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) O.
SEGMENT INFORMATION – (Concluded) (1) Included in net sales were export sales from the U. S.  of $246 million, $277 million and $275 million in 2010, 2009 and 2008, respectively.
(2) Intra-company sales between segments represented approximately two percent of net sales in 2010, three percent of net sales in 2009 and one percent of net sales in 2008.
(3) Included in net sales were sales to one customer of $1,993 million, $2,053 million and $2,058 million in 2010, 2009 and 2008, respectively.
Such net sales were included in the following segments: Cabinets and Related Products, Plumbing Products, Decorative Architectural Products and Other Specialty Products.
(4) Net sales from the Company’s operations in the U. S.  were $5,618 million, $5,952 million and $7,150 million in 2010, 2009 and 2008, respectively.
(5) Net sales, operating (loss) profit, property additions and depreciation and amortization expense for 2010, 2009 and 2008 excluded the results of businesses reported as discontinued operations in 2010, 2009 and 2008.
(6) Included in segment operating (loss) profit for 2010 were impairment charges for goodwill and other intangible assets as follows: Plumbing Products – $1 million; and Installation and Other Services – $720 million.
Included in segment operating profit (loss) for 2009 were impairment charges for goodwill as follows: Plumbing Products – $39 million; Other Specialty Products – $223 million.
Included in segment operating profit (loss) for 2008 were impairment charges for goodwill and other intangible assets as follows: Cabinets and Related Products – $59 million; Plumbing Products – $203 million; Installation and Other Services – $52 million; and Other Specialty Products – $153 million.
(7) General corporate expense, net included those expenses not specifically attributable to the Company’s segments.
(8) During 2009, the Company recognized a curtailment loss related to the plan to freeze all future benefit accruals beginning January 1, 2010 under substantially all of the Company’s domestic qualified and non-qualified defined-benefit pension plans.
See Note M to the consolidated financial statements.
(9) The charge for litigation settlement in 2009 relates to a business unit in the Cabinets and Related Products segment.
The charge for litigation settlement in 2008 relates to a business unit in the Installation and Other Services segment.
(10) See Note L to the consolidated financial statements.
(11) Long-lived assets of the Company’s operations in the U. S.  and Europe were $3,684 million and $617 million, $4,628 million and $690 million, and $4,887 million and $770 million at December 31, 2010, 2009 and 2008, respectively.
(12) Segment assets for 2009 and 2008 excluded the assets of businesses reported as discontinued operations.


| 2013 2012 | Price Range | High | First Quarter | Second Quarter | Third Quarter | Fourth Quarter |


CITIZENS FINANCIAL GROUP, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 161 Treasury Stock During the year ended December 31, 2016, as part of its 2016 CCAR plan, the Company paid $430 million to repurchase 17,332,684 common shares at an average price of $24.81; $405 million was recorded in treasury stock and $25 million was recorded in additional paid in capital.
The repurchased shares are held in treasury stock.
During the year ended December 31, 2016, the Company recorded no shares of treasury stock associated with share-based compensation plan activity.
During the year ended December 31, 2015, the Company recorded 876,087 shares of treasury stock associated with share-based compensation plan activity for a total cost of $22 million at a weighted-average price per share of $25.50.
On August 3, 2015, the Company used the net proceeds of its public offering of $250 million aggregate principal amount 4.350% Subordinated Notes due 2025 issued on July 31, 2015, to repurchase 9,615,384 shares of its outstanding common stock at a public offering price of $26.00 per share.
The repurchased shares are held in treasury stock.
On April 7, 2015, the Company used the net proceeds of the Series A Preferred Stock offering to repurchase 10,473,397 shares of its common stock at a total cost of approximately $250 million and a price per share of $23.87, which equaled the volumeweighted average price of the Companys common stock for all traded volume over the five trading days preceding the repurchase agreement date of April 1, 2015.
The repurchased shares are held in treasury stock.


NOTE 12.
STOCK-BASED COMPENSATION (Entergy Corporation) Entergy grants stock options, restricted stock, performance units, and restricted stock unit awards to key employees of the Entergy subsidiaries under its Equity Ownership Plans which are shareholder-approved stock-based compensation plans.
The Equity Ownership Plan, as restated in February 2003, expired December 31, 2016.
Effective January 1, 2007, Entergy’s shareholders approved the 2007 Equity Ownership and Long-Term Cash Incentive Plan (2007 Plan).
The maximum aggregate number of common shares that were available for issuance from the 2007 Plan for stock-based awards was 7,000,000 with no more than 2,000,000 available for non-option grants.
The 2007 Plan, which only applied to awards granted between January 1, 2007 and May 5, 2011, will expire after 10 years.
Effective May 6, 2011, Entergy’s shareholders approved the 2011 Equity Ownership and Long-Term Cash Incentive Plan (2011 Plan).
The maximum number of common shares that were available for issuance from the 2011 Plan for stock-based awards was 5,500,000 with no more than 2,000,000 available for incentive stock option grants.
The 2011 Plan, which only applied to awards granted between May 6, 2011 and May 7, 2015, will expire after 10 years.
Effective May 8, 2015, Entergy’s shareholders approved the 2015 Equity Ownership and Long-Term Cash Incentive Plan (2015 Plan).
The maximum number of common shares that can be issued from the 2015 Plan for stock-based awards is 6,900,000 with no more than 1,500,000 available for incentive stock option grants.
The 2015 Plan, which only applies to awards granted on or after May 6, 2011, will expire after 10 years.
As of December 31, 2016, there were 5,192,463 authorized shares remaining for stock-based awards, including 1,500,000 for incentive stock option grants.
Stock Options Stock options are granted at exercise prices that equal the closing market price of Entergy Corporation common stock on the date of grant.
Generally, stock options granted will become exercisable in equal amounts on each of the first three anniversaries of the date of grant.
Unless they are forfeited previously under the terms of the grant, options expire 10 years after the date of the grant.


| December 31 | Outstandings | (Dollars in millions) | California | Florida | New York | Texas | Virginia | Other U.S./Foreign | Total residential mortgage loans (excluding the Countrywide purchased impaired residentialmortgage loan portfolio) | Total Countrywide purchased impaired residential mortgage loan portfolio-1 | Total residential mortgage loan portfolio |


| Amount (In Thousands) | 2012 | 2013 | 2014 | 2015 | 2016 | Years thereafter | Total | Less: Amount representing interest | Present value of net minimum lease payments |


| 2013 2012 2011 | (dollars in millions) | Restricted stock units-1 | Stock options | Performance-based stock units | Total-2 | Quoted Prices in Active Markets for Identical Assets (Level1) | (dollars in millions) | Assets: | Investments: | Cash and cash equivalents-1 | U.S. government and agency securities: | U.S. Treasury securities | U.S. agency securities | Total U.S. government and agency securities | Corporate and other debt: | State and municipal securities | Collateralized debt obligations | Total corporate and other debt | Derivative contracts-2 | Derivative-related cash collateral receivable | Commingled trust funds-3 | Foreign funds-4 | Other investments | Total investments | Receivables: | Other receivables-1 | Total receivables | Total assets | Liabilities: | Derivative contracts-5 | Derivative-related cash collateral payable | Other liabilities-1 | Total liabilities | Net pension assets |


| 2017 2016* 2015* 2014* 2013* | Statement of Earnings data: | Upstream revenues | Total revenues | Earnings (loss) from continuing operations(1) | Earnings (loss) from continuing operationsattributable to Devon(1) | Earnings (loss) from continuing operations per shareattributable to Devon: | Basic-1 | Diluted-1 | Cash dividends per common share | Balance Sheet data: | Total assets-1 | Long-term debt-2 | Stockholders' equity | Common shares outstanding | 2017 | Net earnings (loss) attributable to Devon | Net earnings (loss) per diluted share attributable to Devon | Core earnings (loss) attributable to Devon(1) | Core earnings (loss) per diluted share attributable to Devon(1) | Retained production (MBoe/d) | Total production (MBoe/d) | Realized price per Boe-2 | Operating cash flow | Capitalized expenditures, including acquisitions | Shareholder and noncontrolling interests distributions | Cash and cash equivalents | Total debt | Reserves (MMBoe) |


| Units Weighted Average Grant-Date Fair Value per Unit | (In whole) | Outstanding at December 31, 2009 | Granted | Conversions | Outstanding at December 31, 2010 |


| Pension Benefits December 31 Other Benefits December 31 | ($ in millions) | Change in Benefit Obligation | Benefit obligation at beginning of year | Service cost | Interest cost | Plan participants' contributions | Plan amendments | Actuarial loss (gain) | Benefits paid | Benefit obligation at end of year | Change in Plan Assets | Fair value of plan assets at beginning of year | Actual return on plan assets | Employer contributions | Plan participants' contributions | Benefits paid | Fair value of plan assets at end of year | Funded status | Amounts Recognized in the Consolidated Statements of Financial Position: | Pension plan assets-1 | Current liability-2 | Non-current liability-3 | Accumulated other comprehensive loss (income) (pre-tax) related to: | Prior service costs (credits) | Net actuarial loss (gain) |


| Amount (In Millions) | 2011 net revenue | Nuclear realized price changes | Nuclear volume | Other | 2012 net revenue |


(1) At December 31, 2014, 2013 and 2012, the cumulative CVA reduced the derivative assets balance by $1.6 billion, $1.6 billion and $2.4 billion, respectively.
(2) FVA was adopted in 2014 and the cumulative FVA reduced the net derivatives balance by $497 million.
(3) At December 31, 2014, 2013 and 2012, the cumulative DVA reduced the derivative liabilities balance by $0.8 billion, $0.8 billion and $0.8 billion, respectively.
n/a = not applicable


Additional Consumer and Corporate Credit Details Loans Outstanding


The allocation of the allowance for loan losses on originated loans at December 31, 2015 reflects management’s assessment of credit risk and probable loss within each portfolio.
This assessment is based on a variety of internal and external factors including, but not limited to, the likelihood and severity of loss, portfolio growth and related risk characteristics, and current economic conditions.
With respect to the originated portfolio, an allocation of a portion of the allowance to one loan segment does not preclude its availability to absorb losses in another loan segment.
Management believes that the level of the allowance for loan losses at December 31, 2015 is appropriate to cover probable losses.


| (In millions) 2005 2004 2003 2002 2001 | Net earnings | Interest expense (multiplied by 65%)1 | Return | Average debt2, 5 | Average equity3, 5 | Average minimum pension liability3, 4, 5 | Average invested capital | Return on invested capital |


| (Dollars in millions) 2018 2017 | Sales return, rebate, and discount liabilities, beginning of year | Reduction of net sales due to sales returns, discounts, and rebates-1 | Cash payments of discounts and rebates | Sales return, rebate, and discount liabilities, end of year |


Common Stock Dividends Per Share  Historically, Xcel Energy has paid quarterly dividends to its shareholders.
Dividends on common stock are paid as declared by the Board of Directors.
Dividends declared per share for the quarters of 2008, 2007 and 2006 are:


| Year ended December 31, (in millions) 2010 2009 2008 | U.S. | Non-U.S.(a) | Income before incometax expense/(benefit)andextraordinary gain |


| Years Ended December 31 2009 2008 2007 | In Millions | Revenues | Discontinued operations: | Pretax income (loss) from discontinued operations | Income tax expense (benefit) | Income (Loss) From Discontinued Operations, Net of Tax Expense (Benefit) |


?
Asset Utilization  In response to economic conditions and lower revenue in 2009, we implemented productivity initiatives to improve efficiency and reduce costs, in addition to adjusting our resources to reflect lower demand.
Although varying throughout the year, our resource reductions included removing from service approximately 26% of our road locomotives and 18% of our freight car inventory by year end.
We also reduced shift levels at most rail facilities and closed or significantly reduced operations in 30 of our 114 principal rail yards.
These demand-driven resource adjustments and our productivity initiatives combined to reduce our workforce by 10%.  ?
Fuel Prices  As the economy worsened during the third and fourth quarters of 2008, fuel prices dropped dramatically, reaching $33.87 per barrel in December 2008, a near five-year low.
Throughout 2009, crude oil prices generally increased, ending the year around $80 per barrel.
Overall, our average fuel price decreased by 44% in 2009, reducing operating expenses by $1.3 billion compared to 2008.
We also reduced our consumption rate by 4% during the year, saving approximately 40 million gallons of fuel.
The use of newer, more fuel efficient locomotives; increased use of distributed locomotive power; fuel conservation programs; and improved network operations and asset utilization all contributed to this improvement.  ?
Free Cash Flow  Cash generated by operating activities totaled $3.2 billion, yielding free cash flow of $515 million in 2009.
Free cash flow is defined as cash provided by operating activities, less cash used in investing activities and dividends paid.
Free cash flow is not considered a financial measure under accounting principles generally accepted in the United States (GAAP) by SEC Regulation G and Item 10 of SEC Regulation S-K.  We believe free cash flow is important in evaluating our financial performance and measures our ability to generate cash without additional external financings.
Free cash flow should be considered in addition to, rather than as a substitute for, cash provided by operating activities.
The following table reconciles cash provided by operating activities (GAAP measure) to free cash flow (non-GAAP measure):


| Table 20 Consumer Loans | December 31 | Outstandings | (Dollars in millions) | Residential mortgage-1 | Home equity | Discontinued real estate-2 | U.S. credit card | Non-U.S. credit card | Direct/Indirect consumer-3 | Other consumer-4 | Consumer loans excluding loans accounted for under the fair value option | Loans accounted for under the fair value option-5 | Total consumer loans | Table 21 | December 31 | Accruing Past Due90 Days or More | (Dollars in millions) | Residential mortgage-1 | Home equity | Discontinued real estate | U.S. credit card | Non-U.S. credit card | Direct/Indirect consumer | Other consumer | Total-2 | Consumer loans as a percentage of outstanding consumer loans-2 | Consumer loans as a percentage of outstanding loans excluding Countrywide PCI and fully-insured loan portfolios-2 |


In the first quarter of 2012, our Power Generation segment reorganized its reporting structure to include the following businesses.  ?
Power products - Our power products business manufactures generators for commercial and consumer applications ranging from two kilowatts (kW) to one megawatt (MW) under the Cummins Power Generation and Cummins Onan brands.  ?
Power systems - Our power systems business manufactures and sells diesel fuel-based generator sets over one MW, paralleling systems and transfer switches for critical protection and distributed generation applications.
We also offer integrated systems that consist of generator sets, power transfer and paralleling switchgear for applications such as data centers, health care facilities and waste water treatment plants.  ?
Alternators - Our alternator business (formally called generator technologies prior to the fourth quarter of 2013) designs, manufactures, sells and services A/C generator/alternator products internally as well as to other generator set assemblers.
Our products are sold under the Stamford, AVK and Markon brands and range in output from 0.6 kilovolt-amperes (kVA) to 30,000 kVA.  ?
Power solutions - Our power solutions business provides natural gas fuel-based turnkey solutions for distributed generation and energy management applications in the range of 300-2000 kW products.
The business also serves a global rental account for diesel and gas generator sets.
Sales for our Power Generation segment by business (including 2011 reorganized balances) were as follows:


| Period (a) Total Numberof SharesPurchased(2) (b) Average PricePaid perShare(2)(3) (c) Total Numberof Shares Purchasedas Part of PubliclyAnnounced Plansor Programs(1) (d) Maximum Number(or Approximate DollarValue) of Shares thatMay Yet Be PurchasedUnder the Plans orPrograms(1) | 10/2/05 to 10/29/05 | 10/30/05 to 11/26/05 | 11/27/05 to 12/31/05 | Total |


| Twelve Months Ended July 31, | (In millions) | Total fair value of RSUs vested | Share-based compensation for RSUs | Total tax benefit related to RSU share-based compensation expense | Cash tax benefits realized for tax deductions for RSUs |


| Outstanding Nonaccrual | As of December 31 ($ in millions) | Ohio | Michigan | Florida | Illinois | Indiana | North Carolina | Kentucky | Tennessee | All other states | Total |


| Years Ended October 31, | 2018 | (in millions, except per share data) | Combined and Consolidated Statement of Operations Data:(a) | Net revenue | Income (loss) before taxes | Net income | Net income per share(b) | Basic | Diluted | Weighted average shares used in computing net income per share:(b) | Basic | Diluted |


Indefinite-lived Intangibles, including In-Process Research and Development Our indefinite-lived intangible assets that are not subject to amortization include acquired balloon and other technology, which is
representative.
In October 2016, we notified Preventice of our intent to terminate the commercial agreement and will transition the sales force back to Preventice in 2017 under the terms of the agreement.
On April 13, 2015, we acquired 25 percent of the common stock of Frankenman Medical Equipment Company (Frankenman).
Frankenman is a privately-held company headquartered in Suzhou, China, and is a local market leader in surgical staplers.
Additionally, we entered into co-promotional and co-selling agreements with Frankenman to commercialize selected products jointly in China.
We believe this alliance will enable us to reach more clinicians and treat more patients in China by providing access to training on less invasive endoscopic technologies with clinical and economic benefits.
We are accounting for our investments in Preventice and Frankenman, as well as certain of our other strategic investments, as equity method investments, in accordance with FASB ASC Topic 323.
The aggregate carrying amount of our strategic investments as of December 31, 2016 and December 31, 2015, were comprised of the following categories:


| December 31, 2015 | Lowest Rating Agency Rating-1 | Vintage | (in millions) | 2015 | 2014 | 2013 | 2012—2009 | 2008—2007 | 2006 | 2005 & Prior | Total commercial mortgage-backed securities-2(3) |


| (In millions) United States Europe West Africa Other Int’l. Consolidated Equity Investees Total | December 31, 2003: | Future cash inflows | Future production, transportation and administrative costs | Future development costs | Future income tax expenses | Future net cash flows | 10% annual discount for estimated timing of cash flows | Standardized measure of discounted future net cash flows relating to proved oil and gas reserves(a) | December 31, 2002: | Future cash inflows | Future production, transportation and administrative costs | Future development costs | Future income tax expenses | Future net cash flows | 10% annual discount for estimated timing of cash flows | Standardized measure of discounted future net cash flows relating to proved oil and gas reserves(a) | Standardized measure of discounted future net cash flows relating to discontinued operations | December 31, 2001: | Future cash inflows | Future production, transportation and administrative costs | Future development costs | Future income tax expenses | Future net cash flows | 10% annual discount for estimated timing of cash flows | Standardized measure of discounted future net cash flows relating to proved oil and gas reserves(a) | Standardized measure of discounted future net cash flows relating to discontinued operations | (In millions) | E&P | RM&T | OERB | Segment revenues | Elimination of intersegment revenues | Elimination of sales to United States Steel | Total revenues | Items included in both revenues and costs and expenses: | Consumer excise taxes on petroleum products and merchandise | Matching crude oil and refined product buy/sell transactions settled in cash: | E&P | RM&T | Total buy/sell transactions |


| Fiscal year ended December 30, 2006 Fiscal year ended December 31, 2005 Year over Year | Net Sales | Outdoor/Fitness | Marine | Automotive/Mobile | Aviation | Total |


| In billions of dollars Dec. 31, 2018 Sept. 30, 2018 Dec. 31, 2017 | Global Consumer Banking | North America | Latin America | Asia-1 | Total | Institutional Clients Group | Corporate lending | Treasury and trade solutions (TTS) | Private bank | Markets and securities servicesand other | Total | TotalCorporate/Other | Total Citigroup loans (AVG) | Total Citigroup loans (EOP) |


| Payments due in year ending | Contractual Obligations-1 | (in millions) | Contractholder funds-2 | Future policy benefits and claims-3 | Long-term debt-4 | Certificates of deposit-5 | Other long-term liabilities-6 | Capital leases | Long-term debt interest | Operating leases-7 | Purchase obligations-8 | Total contractual obligations |


| December 31, 2009 December 31,2008 | In millions | Commercial (a) | Commercial real estate (a) | Consumer | Residential real estate | Total | In millions | January 1 | Accretion (including cash recoveries) | Adjustments resulting from changes in purchase price allocation | Net reclassifications from non- accretable to accretable | Disposals | December 31 |


| Month Total Number of Shares Purchased Avg. Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Programs Max. Number of Shares That May Yet Be Purchased Under the Programs-1,(2) | October 2016 | Repurchase program | November 2016 | Repurchase program | December 2016 | Repurchase program | Total quarter ended December 31, 2016 | Repurchase program |


| December 31, 2008Dollars in millions Notional amount Estimated net fair value Weighted- Average Remaining Maturity InYears | Credit Default Swaps – Guarantees | Single name | Index traded | Total (a) | Credit Default Swaps – Beneficiaries | Single name | Index traded | Total (b) | Total (c) |


| Years Ended March 31, Change | (Dollars in millions) | Gross Profit | Distribution Solutions-1 | Technology Solutions-2 | Total | Gross Profit Margin | Distribution Solutions | Technology Solutions | Total |


| Interim surcharge $53.9 million | Items to be addressed as part of unbundling | Imputed capacity charges | Other |


| December 31, | (in millions) | Beginning assets under management | Net inflows (outflows) | Long-term-1 | Cash management | Advisory-2 | Total net inflows (outflows) | Acquisitions-3 | Market change | FX impact-4 | Total change | Ending assets under management |


| In millions of dollars at year end Due within 1 year Over 1 year but within 5 years Over 5 years Total | U.S. Consumer mortgage loan portfolio type | First mortgages | Second mortgages | Total | Fixed/variable pricing of U.S. Consumer mortgage loans with maturities due after one year | Loans at fixed interest rates | Loans at floating or adjustable interest rates | Total |


The increase in expense from 2005 to 2006 was primarily a result of both increases in service and interest cost and amortization of net actuarial losses resulting largely from lower discount rates, partially offset by the impact of an increase in the expected return on plan assets due to a larger plan assets base.
The decrease in expense from 2006 to 2007 was primarily the result of an increase in the expected return on plan assets and a decrease in amortization of net actuarial losses resulting from the $350 million contribution made in


| Period Total Number of Shares (or Units) Purchased (1) Average Price Paid per Share (or Unit) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (in millions) (2) | January 1, 2009 — January 31, 2009 | February 1, 2009 — February 28, 2009 | March 1, 2009 — March 31, 2009 | April 1, 2009 — April 30, 2009 | May 1, 2009 — May 31, 2009 | June 1, 2009 — June 30, 2009 | July 1, 2009 — July 31, 2009 | August 1, 2009 — August 31, 2009 | September 1, 2009 — September 30, 2009 | October 1, 2009 — October 31, 2009 | November 1, 2009 — November 30, 2009 | December 1, 2009 — December 31, 2009 | Total |


Xcel Energy’s ongoing investment strategy is based on plan-specific investment recommendations that seek to minimize potential investment and interest rate risk as a plan’s funded status increases over time.
The investment recommendations result in a greater percentage of long-duration fixed income securities being allocated to specific plans having relatively higher funded status ratios and a greater percentage of growth assets being allocated to plans having relatively lower funded status ratios.
The aggregate projected asset allocation presented in the table above for the master pension trust results from the plan-specific strategies.


STATEMENT OF CASH FLOWS The Company considers short-term, highly liquid investments with an original maturity of 90 days or less to be cash equivalents.
SABBATICAL LEAVE In certain countries, eligible employees are entitled to take a paid sabbatical after a predetermined period of service.
In 2006, the FASB issued guidance on accounting for sabbatical leave, codified in the Compensation  General Topic of the FASB ASC.
Under this guidance, compensation costs associated with a sabbatical should be accrued over the requisite service period, assuming certain conditions are met.
The Company adopted the guidance effective January 1, 2007, as required and accordingly, recorded a $36.1 million cumulative adjustment, net of tax, to decrease beginning retained earnings in the first quarter 2007.
The annual impact to earnings is not significant.
SUBSEQUENT EVENTS In May 2009, the FASB issued guidance on subsequent events, codified in the Subsequent Events Topic of the FASB ASC.
This guidance sets forth the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements.
The guidance also indicates the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements, as well as the disclosures that an entity should make about events or transactions that occurred after the balance sheet date.
The Company adopted this guidance beginning in the second quarter 2009.
The adoption had no impact on our consolidated financial statements, besides the additional disclosure.
The Company evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission, which was February 26, 2010.
There were no subsequent events that required recognition or disclosure.


| 2017 2018 | North America | South America | Europe | Middle East & Africa | Asia Pacific | Total Automotive | Ford Credit | Mobility | Total Company |


| (in millions) Premiums and Other Considerations Net Investment Income Net Realized Capital Gains (Losses) Total Revenues Operating Income | 2007 | Group retirement products | Individual fixed annuities | Individual variable annuities | Individual annuities — runoff* | Total | 2006 | Group retirement products | Individual fixed annuities | Individual variable annuities | Individual annuities — runoff* | Total | 2005 | Group retirement products | Individual fixed annuities | Individual variable annuities | Individual annuities — runoff* | Total | Percentage Increase/(Decrease) 2007 vs. 2006: | Group retirement products | Individual fixed annuities | Individual variable annuities | Individual annuities — runoff | Total | Percentage Increase/(Decrease) 2006 vs. 2005: | Group retirement products | Individual fixed annuities | Individual variable annuities | Individual annuities — runoff | Total |


Our computation of expected volatility for 2006 and 2007 was based on a combination of historical and market-based implied volatility from traded options on our stock.
Prior to 2006, our computation of expected volatility was based on historical volatility.
Our computation of expected life was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior.
The interest rate for periods within the contractual life of the award is based on the U. S.  Treasury yield curve in effect at the time of grant.
We recognize interest and penalties related to unrecognized tax benefits as part of income tax expense in the Consolidated Statements of Operations, which is consistent with prior reporting periods.
As of December 31, 2011, three tax years were subject to audit by the United States Internal Revenue Service (IRS), covering the years 2009 through 2011.
In 2011, IRS examinations of the 2004 through 2008 tax returns were completed, and a final audit report was issued.
We are now waiting on review and final sign-off by the Joint Committee on Taxation.
Refunds aggregating $15.6 are expected for all years associated with the audit.
In addition, in 2011 we adjusted our reserve for uncertain tax positions with respect to the largest issue in connection with this examination, related to worthless stock deductions, which had a favorable impact on our tax provision of $3.6.
Five tax years were undergoing (or subject to) audit by the Canada Revenue Agency, covering the periods 2005 through 2009.
Examinations are in progress for each of these years and are at various stages of completion, but to date we are not aware of any material adjustments.
Various state and other foreign jurisdiction tax years remain open to examination as well, though we believe assessments (if any) would be immaterial to our consolidated financial statements.
We are not aware of any changes that would materially impact our tax expense for an increase or decrease in the total amount of unrecognized tax benefits within the next 12 months.
Deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of our assets and liabilities.
The major temporary differences and their associated deferred tax assets or liabilities are as follows:


| Location Operations Conducted ApproximateSquare Feet LeaseExpirationDates | New Haven, Connecticut | Dublin, Ireland | Lexington, Massachusetts | Bogart, Georgia | Smithfield, Rhode Island | Zurich, Switzerland |


| For the fiscal years ended June 30, | Notes | Operating activities: | Net (loss) income | Less: Income (loss) from discontinued operations, net of tax | (Loss) income from continuing operations | Adjustments to reconcile (loss) income from continuing operations to cash provided by operating activities: | Depreciation and amortization | Equity losses (earnings) of affiliates | Cash distributions received from affiliates | Impairment charges | Other, net | Deferred income taxes and taxes payable | Change in operating assets and liabilities, net of acquisitions: | Receivables and other assets | Inventories, net | Accounts payable and other liabilities | NAM Group settlement | Net cash provided by operating activities from continuing operations | Net cash used in operating activities from discontinued operations | Net cash provided by operating activities | Investing activities: | Capital expenditures | Changes in restricted cash for Wireless Group acquisition | Acquisitions, net of cash acquired | Investments in equity affiliates and other | Other investments | Proceeds from business dispositions | Proceeds from property, plant and equiptment and other asset dispositions | Other | Net cash used in investing activities from continuing operations | Net cash provided by (used in) investing activities from discontinued operations | Net cash used in investing activities | Financing activities: | Borrowings | Repayment of borrowings acquired in acquisitions | Repurchase of shares | Dividends paid | Other, net | Net cash (used in) provided by financing activities from continuing operations | Net cash used in financing activities from discontinued operations | Net cash (used in) provided by financing activities | Net increase (decrease) in cash and cash equivalents | Cash and cash equivalents, beginning of year | Exchange movement on opening cash balance | Cash and cash equivalents, end of year |


| Years Ended December 31, | 2008 | (in millions, except percentages) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Premiums | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest credited to fixed accounts | Benefits, claims, losses and settlement expenses | Amortization of deferred acquisition costs | General and administrative expense | Total expenses | Pretax income (loss) |


| (in millions of U.S. dollars) 2010 | Balance, beginning of year | Net income | Dividends declared on Common Shares | Change in net unrealized appreciation (depreciation) on investments, net of tax | Repurchase of shares | Other movements, net of tax | Balance, end of year |


| Global Payments S&P 500 S&P Information Technology | May 31, 2002 | May 31, 2003 | May 31, 2004 | May 31, 2005 | May 31, 2006 | May 31, 2007 |


| 2001 2002 2003 | (Millions of dollars) | Electric utility | Gas utility | Common utility | Total utility | NRG | Other nonregulated | Total capital expenditures | Sinking funds and debt maturities | Total capital requirements |


| For the Years Ended December 31, | 2011 | Operating Revenues (dollars in thousands) | Customer Class | Water service: | Residential | Commercial | Industrial | Public and other | Other water revenues | Total water revenues | Wastewater service | Other revenues | $2,368,891 |


| Owned Leased | United States | Canada | Europe | Rest of World |


GUARANTEES AND WARRANTIES In April 2015, we entered into joint venture arrangements in Saudi Arabia.
An equity bridge loan has been provided to the joint venture until 2020 to fund equity commitments, and we guaranteed the repayment of our 25% share of this loan.
Our venture partner guaranteed repayment of their share.
Our maximum exposure under the guarantee is approximately $100.
As of 30 September 2016, we recorded a noncurrent liability of $94.4 for our obligation to make future equity contributions based on the equity bridge loan.
Air Products has also entered into a sale of equipment contract with the joint venture to engineer, procure, and construct the industrial gas facilities that will supply gases to Saudi Aramco.
We have provided bank guarantees to the joint venture of up to $311 to support our performance under the contract.
Exposures under the guarantees decline over time and will be completely extinguished after completion of the project.
We are party to an equity support agreement and operations guarantee related to an air separation facility constructed in Trinidad for a venture in which we own 50%.
At 30 September 2016, maximum potential payments under joint and several guarantees were $29.0.
Exposures under the guarantees decline over time and will be completely extinguished by 2024.
During the first quarter of 2014, we sold the remaining portion of our Homecare business and entered into an operations guarantee related to obligations under certain homecare contracts assigned in connection with the transaction.
Our maximum potential payment under the guarantee is ￡20 million (approximately $25 at 30 September 2016), and our exposure will be extinguished by 2020.
To date, no equity contributions or payments have been made since the inception of these guarantees.
The fair value of the above guarantees is not material.
2015 vs.  2014 On a GAAP basis, the effective tax rate was 24.0% and 27.1% in 2015 and 2014, respectively.
The effective tax rate was higher in fiscal year 2014 primarily due to the goodwill impairment charge of $305.2, which was not deductible for tax purposes, and the Chilean tax reform enacted in September 2014 which increased income tax expense by $20.6.
These impacts were partially offset by an income tax benefit of $51.6 associated with losses from transactions and a tax election in a non-U.
S.  subsidiary.
Refer to Note 10, Goodwill, and Note 23, Income Taxes, to the consolidated financial statements for additional information.
On a non-GAAP basis, the effective tax rate was 24.2% and 24.1% in 2015 and 2014, respectively.
Discontinued Operations On 29 March 2016, the Board of Directors approved the Company’s exit of its Energy-from-Waste (EfW) business.
As a result, efforts to start up and operate its two EfW projects located in Tees Valley, United Kingdom, have been discontinued.
The decision to exit the business and stop development of the projects was based on continued difficulties encountered and the Company’s conclusion, based on testing and analysis completed during the second quarter of fiscal year 2016, that significant additional time and resources would be required to make the projects operational.
In addition, the decision allows the Company to execute its strategy of focusing resources on its core Industrial Gases business.
The EfW segment has been presented as a discontinued operation.
Prior year EfW business segment information has been reclassified to conform to current year presentation.
In fiscal 2016, our loss from discontinued operations, net of tax, of $884.2 primarily resulted from the write down of assets to their estimated net realizable value and to record a liability for plant disposition and other costs.
Income tax benefits related only to one of the projects, as the other did not qualify for a local tax deduction.
The loss from discontinued operations also includes land lease costs, commercial and administrative costs, and costs incurred for ongoing project exit activities.
We expect additional exit costs of $50 to $100 to be recorded in future periods.
In fiscal 2015, our loss from discontinued operations, net of tax, related to EfW was $6.8.
This resulted from costs for land leases and commercial and administrative expenses.
In fiscal 2014, our loss from discontinued operations, net of tax, was $2.9.
This included a loss, net of tax, of $7.5 for the cost of EfW land leases and commercial and administrative expenses.
This loss was partially offset by a gain of $3.9 for the sale of the remaining Homecare business and settlement of contingencies related to a sale of a separate portion of the business to The Linde Group in 2012.
Refer to Note 4, Discontinued Operations, for additional details.
Segment Analysis


MARKET PRICE AND DIVIDENDS D UKE R E A LT Y C O R P O RAT I O N 38 2002 A NNUAL R EPORT The Company’s common shares are listed for trading on the New York Stock Exchange, symbol DRE.
The following table sets forth the high and low sales prices of the common stock for the periods indicated and the dividend paid per share during each such period.
Comparable cash dividends are expected in the future.


OREO During 2013 and 2012, the Bancorp recorded nonrecurring adjustments to certain commercial and residential real estate properties classified as OREO and measured at the lower of carrying amount or fair value.
These nonrecurring losses are primarily due to declines in real estate values of the properties recorded in OREO.
For the years ended December 31, 2013 and 2012, these losses include $19 million and $17 million, respectively, recorded as charge-offs, on new OREO properties transferred from loans during the respective periods and $26 million and $57 million, respectively, recorded as negative fair value adjustments on OREO in other noninterest income subsequent to their transfer from loans.
As discussed in the following paragraphs, the fair value amounts are generally based on appraisals of the property values, resulting in a


| Year Ended December 31, 2010 | ($ in millions, except per share amounts) | Sales and service revenues | Operating income (loss) | Earnings (loss) before income taxes | Net earnings (loss) | Net earnings (loss) attributable to HII | Basic earnings (loss) per share | Diluted earnings (loss) per share |


| Con Edison Con Edison of New York | Plan Year | 2006 | 2005 | 2004 | 2003 | 2002 | 2001 | 2000 | 1999 | Total |


| 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 | Amortization of deferred acquisition costs | General and administrative expense | Total expenses | Pretax income |


| (in millions) 2012 2011 2010 | Balance at January 1 | Contribution by Dow Jones | Distribution to Dow Jones | Allocation of stock-based compensation | Total comprehensive income attributable to redeemable non-controlling interest | Balance at December 31 |


| High Low Dividends | 2005: | Fourth Quarter | Third Quarter | Second Quarter | First Quarter | 2004: | Fourth Quarter | Third Quarter | Second Quarter | First Quarter |


THE AES CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) DECEMBER 31, 2011, 2010, AND 2009 (1) Weighted average interest rate at December 31, 2011.
(2) The Company has interest rate swaps and interest rate option agreements in an aggregate notional principal amount of approximately $3.6 billion on non-recourse debt outstanding at December 31, 2011.
The swap agreements economically change the variable interest rates on the portion of the debt covered by the notional amounts to fixed rates ranging from approximately 1.44% to 6.98%.
The option agreements fix interest rates within a range from 1.00% to 7.00%.
The agreements expire at various dates from 2016 through 2028.
(3) Multilateral loans include loans funded and guaranteed by bilaterals, multilaterals, development banks and other similar institutions.
(4) Non-recourse debt of $704 million and $945 million as of December 31, 2011 and 2010, respectively, was excluded from non-recourse debt and included in current and long-term liabilities of held for sale and discontinued businesses in the accompanying Consolidated Balance Sheets.
Non-recourse debt as of December 31, 2011 is scheduled to reach maturity as set forth in the table below:


| For the Years Ended December 31, | (Millions of Dollars) | Operating revenues | Gas purchased for resale | Other operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Gas operating income | Thousands of Dt Delivered | For the Years Ended | Description | Residential | General | Firm transportation | Total firm sales and transportation | Interruptible sales (c) | NYPA | Generation plants | Other | Other operating revenues (d) | Total |


| $ in millions Before Consolidation-1 Consolidated Investment Products Adjustments-1(2) Total | Year ended December 31, 2010 | Total operating revenues | Total operating expenses | Operating income | Equity in earnings of unconsolidated affiliates | Interest and dividend income | Other investment income/(losses) | Interest expense | Income before income taxes | Income tax provision | Net income | (Gains)/losses attributable to noncontrolling interests in consolidated entities, net | Net income attributable to common shareholders |


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


| Average for theYear Ended December | in millions | U.S. dollar-denominated | Non-U.S. dollar-denominated | Total |


| Regulator Allowed Return on Equity Percent of Common Equity Rate Base (in billions) Portion of Ameren's 2013 Operating Revenues(a) | Ameren Missouri | Electric service(b)(c) | Natural gas delivery service(d) | Ameren Illinois | Electric distribution delivery service(f) | Natural gas delivery service(g) | Electric transmission delivery service(h) | ATXI | Electric transmission delivery service(h) |


In February 2007, the FASB issued SFAS No.159 “The Fair Value Option for Financial Assets and Liabilities—Including an amendment of FASB Statement No.115” (SFAS No.159).
This statement provides companies with an option to report selected financial assets and liabilities at fair value and establishes presentation and disclosure requirements designed to facilitate comparisons between companies that choose different measurement attributes for similar types of assets and liabilities.
SFAS No.159 is effective for us as of January 1, 2008.
We are in the process of evaluating the impact that SFAS No.159 will have on our consolidated financial statements.


| 2018 2017 2016 | Intrinsic value | Exercise proceeds | Income tax benefit realized |


the year are summarized below:


| Twelve Months Ended   December 31, Change | 2009 | Loans/Leases | Commercial and industrial | Commercial real estate | Total commercial | Automobile loans and leases | Home equity | Residential mortgage | Other consumer | Total consumer | Total loans | Deposits | Demand deposits — noninterest-bearing | Demand deposits — interest-bearing | Money market deposits | Savings and other domestic time deposits | Core certificates of deposit | Total core deposits | Other deposits | Total deposits | 2009 | December 31, | Total accruing loans | Total nonaccrual loans | Total Loans | OREO | Total Franklin loans and OREO |


aggregate, have a material impact on our results of operations, financial condition or cash flows.
Product Warranties.
We provide warranties to our customers associated with certain product sales.
We record estimated warranty costs in the period in which the related products are delivered.
The warranty liability recorded at each balance sheet date is based on the number of months of warranty coverage remaining for products delivered and the average historical monthly warranty payments.
Warranty obligations incurred in connection with long-term production contracts are accounted for within the contract estimates at completion (EACs).
Our other warranty obligations, primarily for business jet aircraft, are included in other current liabilities and other liabilities on the Consolidated Balance Sheet.
The changes in the carrying amount of warranty liabilities for each of the past three years were as follows:


| Years Ended December 31, | 2008 | (In millions) | Statement of Income Data -1 | Revenues -2, (3): | Premiums | Universal life and investment-type product policy fees | Net investment income | Other revenues | Net investment gains (losses) | Total revenues | Expenses -2, (3): | Policyholder benefits and claims | Interest credited to policyholder account balances | Policyholder dividends | Other expenses | Total expenses | Income from continuing operations before provision for income tax | Provision for income tax -2 | Income from continuing operations | Income (loss) from discontinued operations, net of income tax (2) | Income before cumulative effect of a change in accounting, net of income tax | Cumulative effect of a change in accounting, net of income tax -3 | Net income | Preferred stock dividends | Net income available to common shareholders |


| Year ended December 31, (in millions) 2009 2008 2007 | Investment banking fees | Principal transactions | Lending- and deposit-related fees | Asset management, administrationand commissions | Securities gains | Mortgage fees and related income | Credit card income | Other income | Noninterest revenue | Net interest income | Total net revenue |


| Foreign Currency Translation Foreign Currency Hedges Minimum Pension Liability Unrealized Gains on Securities Accumulated Other Comprehensive Income | Beginning balance at January 1, 2004 | Other comprehensive income (loss) | Balance at December 31, 2004 |


(1) Includes $91 million of fair value and $1 million of gross unrealized losses at December 31, 2014, on securities classified as held-to-maturity, a portion of which is not reflected in AOCI.
(2) Prior period amounts are presented on a basis consistent with the current period presentation.
The gross unrealized losses on fixed maturity securities at December 31, 2015 and 2014, were composed of $3,750 million and $1,156 million, related to high or highest quality securities based on the National Association of Insurance Commissioners (“NAIC”) or equivalent rating and $583 million and $200 million, related to other than high or highest quality securities based on NAIC or equivalent rating, respectively.
At December 31, 2015, the $1,802 million of gross unrealized losses of twelve months or more were concentrated in the energy, consumer non-cyclical, and basic industry sectors of the Company’s corporate securities.
At December 31, 2014, the $901 million of gross unrealized losses of twelve months or more were concentrated in the energy, consumer non-cyclical and utility sectors of the Company’s corporate securities.
In accordance with its policy described in Note 2, the Company concluded that an adjustment to earnings for OTTI for these securities was not warranted at either December 31, 2015 or 2014.
These conclusions are based on a detailed analysis of the underlying credit and cash flows on each security.
The gross unrealized losses are primarily attributable to general credit spread widening and foreign currency exchange rate movements.
At December 31, 2015, the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell these securities before the anticipated recovery of its remaining amortized cost basis.
At December 31, 2015, $19 million of the gross unrealized losses on equity securities represented declines in value of greater than 20%, $18 million of which had been in that position for less than six months.
At December 31, 2014, $13 million of the gross unrealized losses on equity securities represented declines in value of greater than 20%, all of which had been in that position for less than six months.
In accordance with its policy described in Note 2, the Company concluded that an adjustment for OTTI for these equity securities was not warranted at either December 31, 2015 or 2014.
In the normal course of business, the Company sells securities under agreements to repurchase and enters into securities lending transactions.
The following table sets forth the composition of repurchase agreements as of the date indicated.


| 2014 Change 2013 Change 2012 | iTunes, Software and Services | Percentage of total net sales |


| 2017 2016 2015 | Amount | (in millions, except percentages) | Income before income taxes | Federal statutory tax | State tax effect, net of federal benefit | Foreign earnings | Impact of foreign tax credits1 | Impact of settlements with tax authorities | Transition Tax | Remeasurement of U.S. deferred taxes | Other, net | Income tax expense |


| (dollars in millions) Total Deposits Total Deposit Rank Deposit Market Share | MSA | Boston, MA | Philadelphia, PA | Providence, RI | Pittsburgh, PA | Cleveland, OH | Detroit, MI | Manchester, NH | Albany, NY | Buffalo, NY | Rochester, NY |


| Three Months Ended | Dec 31,2018 | (In thousands, except per share amounts) (unaudited) | Revenues | Commissions | Information services | Post-trade services | Other | Total revenues | Expenses | Employee compensation and benefits | Depreciation and amortization | Technology and communications | Professional and consulting fees | Occupancy | Marketing and advertising | Clearing costs | General and administrative | Total expenses | Operating income | Other income (expense) | Investment income | Other, net | Total other income | Income before income taxes | Provision for income taxes | Net income | Net income per common share | Basic | Diluted | 2008 | 2009 | 2010 | 2011 | 2012 | Thereafter | Total maturities | Unamortized fair value adjustment | Unamortized commission fees and discounts | Senior notes payable and other debt |


Item 6.
Selected Financial Data The following tables present selected consolidated financial information for the company as of and for each of the five fiscal years in the period ended December 31, 2015.
Except as otherwise noted below, the consolidated financial information has been prepared in accordance with U. S.  generally accepted accounting principles.


| December 31, 2012 December 31, 2011 | (Dollar amounts in millions) | Trading investments: | Deferred compensation plan mutual funds | Equity/Multi-asset class mutual funds | Debt securities: | Corporate debt | U.S. government debt | Foreign debt | Total trading investments |


| Equity Price Exposure to Pretax Income | Equity Price Decline 10% | (in millions) | Asset-based management and distribution fees-1 | DAC and DSIC amortization-2(3) | Variable annuity riders: | GMDB and GMIB-3 | GMWB | GMAB | DAC and DSIC amortization-4 | Total variable annuity riders | Macro hedge program-5 | Equity indexed annuities | Certificates | Indexed universal life insurance | Total | Interest Rate Exposure to Pretax Income | Interest Rate Increase 100 Basis Points | (in millions) | Asset-based management and distribution fees-1 | Variable annuity riders: | GMDB and GMIB | GMWB | GMAB | DAC and DSIC amortization-4 | Total variable annuity riders | Macro hedge program-5 | Fixed annuities, fixed insurance and fixed portion of variable annuities and variable insurance products | Brokerage client cash balances | Certificates | Indexed universal life insurance | Total | December 31, | 2014 | (in millions) | Syndicated loans | Unpaid principal balance | Excess unpaid principal over fair value | Fair value | Fair value of loans more than 90 days past due | Fair value of loans in nonaccrual status | Difference between fair value and unpaid principal of loans more than 90 days past due, loans in nonaccrual status or both | Debt | Unpaid principal balance | Excess unpaid principal over fair value | Fair value |


Year Ended December 31, 2013
(1)  See definitions of operating revenues and operating expenses under “— Non-GAAP and Other Financial Disclosures” for the components of such adjustments
cash consideration that would be received for instances when the service components are sold separately.
If the fair value to the customer for each service is not objectively determinable, we make our best estimate of the services’ stand-alone selling price and record revenue as it is earned over the service period.
Receivables We record a receivable when a customer is billed or when revenue is recognized prior to billing a customer.
For multi-year agreements, we generally invoice customers annually at the beginning of each annual period.
The opening balance of accounts receivable, net of allowance for doubtful accounts, was $1,319 million as of January 1, 2018.
Contract Assets Contract assets include unbilled amounts from when the Company transfers service to a customer before a customer pays consideration or before payment is due.
As of December 31, 2018 and 2017, contract assets were $26 million and $17 million, respectively, and are included in accounts receivable in our consolidated balance sheets.
Unearned Revenue We record unearned revenue when cash payments are received or due in advance of our performance.
The increase in the unearned revenue balance for the year ended December 31, 2018 is primarily driven by cash payments received or due in advance of satisfying our performance obligations, offset by $1.5 billion of revenues recognized that were included in the unearned revenue balance at the beginning of the period.
Remaining Performance Obligations Remaining performance obligations represent the transaction price of contracts for work that has not yet been performed.
As of December 31, 2018, the aggregate amount of the transaction price allocated to remaining performance obligations was $1.4 billion.
We expect to recognize revenue on approximately half and three-quarters of the remaining performance obligations over the next 12 and 24 months, respectively, with the remainder recognized thereafter.
We do not disclose the value of unfulfilled performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts where revenue is a usage-based royalty promised in exchange for a license of intellectual property.
Costs to Obtain a Contract We recognize an asset for the incremental costs of obtaining a contract with a customer if we expect the benefit of those costs to be longer than one year.
We have determined that certain sales commission programs meet the requirements to be capitalized.
Total capitalized costs to obtain a contract were $101 million as of December 31, 2018, and are included in prepaid and other current assets and other non-current assets on our consolidated balance sheets.
The asset will be amortized over a period consistent with the transfer to the customer of the goods or services to which the asset relates, calculated based on the customer term and the average life of the products and services underlying the contracts.
The expense is recorded within selling and general expenses.
We expense sales commissions when incurred if the amortization period would have been one year or less.
These costs are recorded within selling and general expenses.
Presentation of net periodic pension cost and net periodic postretirement benefit cost During the first quarter of 2018, we adopted new accounting guidance requiring that net periodic benefit cost for our retirement and postretirement plans other than the service cost component be included outside of operating profit; these costs are included in other income, net in our consolidated statements of income.
The components of other income, net for the year ended December 31 are as follows:


1) The Company's SBO portfolio consists of loans that were originally serviced by others.
The Company now services a portion of this portfolio internally.
Concentrations of Credit Risk Most of the Company's business activity is with customers located in the New England, Mid-Atlantic and Midwest regions.
Generally, loans are collateralized by assets including real estate, inventory, accounts receivable, other personal property and investment securities.
As of December 31, 2014 and 2013, the Company had a significant amount of loans collateralized by residential and commercial real estate.
There are no significant concentrations in particular industries within the commercial loan portfolio.
Exposure to credit losses arising from lending transactions may fluctuate with fair values of collateral supporting loans, which may not perform according to contractual agreements.
The Company's policy is to collateralize loans to the extent necessary; however, unsecured loans are also granted on the basis of the financial strength of the applicant and the facts surrounding the transaction.
Certain loan products, including residential mortgages, home equity loans and lines of credit, and credit cards, have contractual features that may increase credit exposure to the Company in the event of an increase in interest rates or a decline in housing values.
These products include loans that exceed 90% of the value of the underlying collateral (high LTV loans), interest- only and negative amortization residential mortgages, and loans with low introductory rates.
Certain loans have more than one of these characteristics
At December 31, 2016, 438,519,780 shares were issued and outstanding.
Dividends paid in each of 2016, 2015 and 2014 were $0.36 per annum or $0.09 per quarter.
The current dividend yield as authorized by Arconics Board of Directors is $0.24 per annum or $0.06 per quarter.
In July 2015, Arconic issued 29 million shares (87 million sharespre-Reverse Stock Split) of common stock as consideration paid to acquire RTI (see Note F).
In early 2014, Arconic issued 30 million shares (89 million sharespre-Reverse Stock Split) of common stock under the terms of Arconics 5.25% Convertible Notes due March 15, 2014.
Also, in November 2014, Arconic issued 12 million shares (37 million sharespre-Reverse Stock Split) of common stock as part of the consideration paid to acquire Firth Rixson (see Note F).
As of December 31, 2016, 45 million shares of common stock were reserved for issuance under Arconics stock-based compensation plans.
Arconic buys shares in the open market to satisfy the exercise of stock options and the conversion of stock awards.
Share Activity (number of shares)


| December 31, 2006 | Public | Carrying amount | (in millions) | Three months or less | Greater than three to six months | Greater than six to nine months | Greater than nine to twelve months | Greater than twelve to twenty-four months | Greater than twenty-four to thirty-six months | Greater than thirty-six months | Total fixed maturities, available-for-sale |


(a) Includes the impact of RBC Bank (USA), which we acquired on March 2, 2012.
(b) Includes the impact of National City, which we acquired on December 31, 2008.
(c) Includes the impact of National City except for the following Selected Ratios: Net interest margin, Noninterest income to total revenue, Efficiency, Return on Average common shareholders equity, Return on Average assets, Dividend payout and Average common shareholders equity to average assets.
(d) Represents the sum of interest-bearing money market deposits, interest-bearing demand deposits, and noninterest-bearing deposits.
(e) Includes long-term borrowings of $19.3 billion, $20.9 billion, $24.8 billion, $26.3 billion and $33.6 billion for 2012, 2011, 2010, 2009 and 2008, respectively.
Borrowings which mature more than one year after December 31, 2012 are considered to be long-term.
(f) Amounts for 2012, 2011 and 2010 include cash and money market balances.
(g) Calculated as taxable-equivalent net interest income divided by average earning assets.
The interest income earned on certain earning assets is completely or partially exempt from federal income tax.
As such, these tax-exempt instruments typically yield lower returns than taxable investments.
To provide more meaningful comparisons of net interest margins for all earning assets, we use net interest income on a taxable-equivalent basis in calculating net interest margin by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments.
This adjustment is not permitted under accounting principles generally accepted in the United States of America (GAAP) on the Consolidated Income Statement.
The taxable-equivalent adjustments to net interest income for the years 2012, 2011, 2010, 2009 and 2008 were $144 million, $104 million, $81 million, $65 million and $36 million, respectively.
RESIDENTIAL MORTGAGE-BACKED SECURITIES At December 31, 2012, our residential mortgage-backed securities portfolio was comprised of $31.4 billion fair value of US government agency-backed securities and $6.1 billion fair value of non-agency (private issuer) securities.
The agency securities are generally collateralized by 1-4 family, conforming, fixed-rate residential mortgages.
The non-agency securities are also generally collateralized by 1-4 family residential mortgages.
The mortgage loans underlying the non-agency securities are generally non-conforming (i. e. , original balances in excess of the amount qualifying for agency securities) and predominately have interest rates that are fixed for a period of time, after which the rate adjusts to a floating rate based upon a contractual spread that is indexed to a market rate (i. e. , a hybrid ARM), or interest rates that are fixed for the term of the loan.
Substantially all of the non-agency securities are senior tranches in the securitization structure and at origination had credit protection in the form of credit enhancement, overcollateralization and/or excess spread accounts.
During 2012, we recorded OTTI credit losses of $99 million on non-agency residential mortgage-backed securities.
All of the losses were associated with securities rated below investment grade.
As of December 31, 2012, the noncredit portion of impairment recorded in Accumulated other comprehensive income for non-agency residential mortgagebacked securities for which we have recorded an OTTI credit loss totaled $150 million and the related securities had a fair value of $3.7 billion.
The fair value of sub-investment grade investment securities for which we have not recorded an OTTI credit loss as of December 31, 2012 totaled $1.9 billion, with unrealized net gains of $114 million.
COMMERCIAL MORTGAGE-BACKED SECURITIES The fair value of the non-agency commercial mortgagebacked securities portfolio was $5.9 billion at December 31, 2012 and consisted of fixed-rate, private-issuer securities collateralized by non-residential properties, primarily retail properties, office buildings, and multi-family housing.
The agency commercial mortgage-backed securities portfolio was $2.0 billion fair value at December 31, 2012 consisting of multi-family housing.
Substantially all of the securities are the most senior tranches in the subordination structure.
There were no OTTI credit losses on commercial mortgagebacked securities during 2012.
ASSET-BACKED SECURITIES The fair value of the asset-backed securities portfolio was $6.5 billion at December 31, 2012 and consisted of fixed-rate and floating-rate, private-issuer securities collateralized primarily by various consumer credit products, including residential mortgage loans, credit cards, automobile loans, and student loans.
Substantially all of the securities are senior tranches in the securitization structure and have credit protection in the form of credit enhancement, over-collateralization and/or excess spread accounts.
We recorded OTTI credit losses of $11 million on assetbacked securities during 2012.
All of the securities are collateralized by first lien and second lien residential mortgage loans and are rated below investment grade.
As of December 31, 2012, the noncredit portion of impairment recorded in Accumulated other comprehensive income for asset-backed securities for which we have recorded an OTTI credit loss totaled $52 million and the related securities had a fair value of $603 million.
For the sub-investment grade investment securities (available for sale and held to maturity) for which we have not recorded an OTTI loss through December 31, 2012, the fair value was $47 million, with unrealized net losses of $3 million.
The results of our security-level assessments indicate that we will recover the cost basis of these securities.
Note 8 Investment Securities in the Notes To Consolidated Financial Statements in Item 8 of this Report provides additional information on OTTI losses and further detail regarding our process for assessing OTTI.
If current housing and economic conditions were to worsen, and if market volatility and illiquidity were to worsen, or if market interest rates were to increase appreciably, the valuation of our investment securities portfolio could be adversely affected and we could incur additional OTTI credit losses that would impact our Consolidated Income Statement.


| 2009 | Capital Adequacy | Total risk-weighted assets (in millions) | Tier 1 leverage ratio | Tier 1 risk-based capital ratio | Total risk-based capital ratio | Tangible common equity/asset ratio-8 | Tangible equity/asset ratio-9 | Tangible common equity/risk-weighted assets ratio |


| 2007 2006 2005 | Shares | Deferred Compensation Obligations | Balance at beginning of year | Reinvested dividends | Option exercise deferrals | Benefit payments | Balance at end of year | Treasury Stock | Balance at beginning of year | Reinvested dividends | Option exercise deferrals | Benefit payments | Balance at end of year |


(a) Amounts in table represent recorded investment and exclude loans held for sale.
(b) Past due loan amounts exclude purchased impaired loans, even if contractually past due (or if we do not expect to receive payment in full based on the original contractual terms), as we are currently accreting interest income over the expected life of the loans.
(c) Consumer loans accounted for under the fair value option for which we do not expect to collect substantially all principal and interest are subject to nonaccrual accounting and classification upon meeting any of our nonaccrual policies.
Given that these loans are not accounted for at amortized cost, these loans have been excluded from the nonperforming loan population.
(d) Pursuant to alignment with interagency supervisory guidance on practices for loans and lines of credit related to consumer lending in the first quarter of 2013, accruing consumer loans past due 30  59 days decreased $44 million, accruing consumer loans past due 60  89 days decreased $36 million and accruing consumer loans past due 90 days or more decreased $315 million, of which $295 million related to Residential real estate government insured loans.
As part of this alignment, these loans were moved into nonaccrual status.
(e) Past due loan amounts at December 31, 2013 include government insured or guaranteed Residential real estate mortgages totaling $.1 billion for 30 to 59 days past due, $.1 billion for 60 to 89 days past due and $1.0 billion for 90 days or more past due.
Past due loan amounts at December 31, 2012 include government insured or guaranteed Residential real estate mortgages totaling $.1 billion for 30 to 59 days past due, $.1 billion for 60 to 89 days past due and $1.9 billion for 90 days or more past due.
(f) Past due loan amounts at December 31, 2013 include government insured or guaranteed Other consumer loans totaling $.2 billion for 30 to 59 days past due, $.1 billion for 60 to 89 days past due and $.3 billion for 90 days or more past due.
Past due loan amounts at December 31, 2012 include government insured or guaranteed Other consumer loans totaling $.2 billion for 30 to 59 days past due, $.1 billion for 60 to 89 days past due and $.3 billion for 90 days or more past due.


| (millions) 2017 2016 2015 | Beginning balance | Bad debt expense | Write-offs | Other (a) | Ending balance |


| Reconciliation of Denominator Used For Adjusted Earnings Per Share Years Ended December 31, 2017 Years Ended December 31, 2016 | (in millions, except per share data) | GAAP DILUTED LOSS PER SHARE | Loss from continuing operations attributable to The AES Corporation common stockholders | EFFECT OF DILUTIVE SECURITIES | Restricted stock units | NON-GAAP DILUTED LOSS PER SHARE |


| Net income, as reported $480,121 | Deduct: Total share-based compensation expense determined under fair value based method for stock options, net of related taxeffects | Pro forma net income | Net earnings per common share: | Basic – as reported | Basic – pro forma | Diluted – as reported | Diluted – pro forma |


| Investment Objective Value inBillions Percentageof TotalAUM | Equity | Growth potential, income potential, value or various combinations thereof | Multi-Asset/Balanced | Asset allocation, balanced, flexible, alternative and income-mixed funds | Fixed Income | Global/international, U.S. tax-free and U.S. taxable | Cash Management | Short-term liquid assets | Total | December 31, 2005 | Less than twelve months | Fair Value of Investments | (Dollars in thousands) | U.S. Treasury securities | U.S. agencies and corporations: | Collateralized mortgage obligations | Mortgage-backed securities | Discount notes and bonds | Asset-backed securities | Commercial mortgage-backed securities | Total temporarily impaired securities |


| (Thousands of barrels per day) 2008 | Garyville, Louisiana | Catlettsburg, Kentucky | Robinson, Illinois | Detroit, Michigan | Canton, Ohio | Texas City, Texas | St. Paul Park, Minnesota | TOTAL |


| Year endedDecember 31 | In millions | Gains (losses) on derivativesrecognized in OCI – (effectiveportion) | Less: Gains (losses) reclassified fromaccumulated OCI into income –(effective portion) | Interest income | Noninterest income | Total gains (losses) reclassified fromaccumulated OCI into income –(effective portion) | Net unrealized gains (losses) on cashflow hedge derivatives | December 31, 2017 | Dollars in millions | Geography | California | Florida | Maryland | Texas | Virginia | Pennsylvania | Illinois | New York | Ohio | New Jersey | All other states | Total commercial realestate loans |


(1) Our Convertible Notes can first be put to us on December 13, 2013, and we have assumed for purpose of the above table that the remaining portion of the Original Notes will be paid off in fiscal 2014.
On November 18, 2010, we exchanged Exchange Notes in an aggregate principal amount of $450.0 million for Original Notes in the aggregate principal amount of $450.0 million.
The first put date on the Exchange Notes is December 15, 2016, and we have assumed for purposes of the above table that the Exchange Notes will be paid off in fiscal 2017.
(2) The financing leases represent two leases for an office building and a manufacturing facility, which were required to be recorded on our balance sheet under US GAAP.
See Note 12 to our consolidated financial statements contained in Item 15 of this Annual Report for more information.
(3) Amounts represent those recorded in accrued expenses and other long-term liabilities on our consolidated balance sheet.
See Contingent Earn-Out Payments for a more complete description of our contingent earn-out obligations.
(4) Purchase obligations primarily relate to inventory purchases, and to a lesser extent, other operating expense commitments.
(5) Pension obligations do not include our obligation under the DCP of $17.2 million, which is recorded as a current liability.
The DCP benefits are generally paid out at retirement or termination of employment.
(6) This represents a private equity investment commitment with a limited liability partnership.
The above table does not reflect our long-term liabilities associated with uncertain tax positions recorded under FIN 48 (codified primarily in ASC 740, Income Taxes) totaling $11.2 million.
Due to the complexity associated with tax uncertainties, we cannot reasonably make a reliable estimate of the period in which we expect to settle these non-current liabilities.
See Note 8 to our consolidated financial statements contained in Item 15 of this Annual Report for more information on our unrecognized tax benefits.
In addition, certain of our cost method equity investments give us the option to acquire the company in the future.
Since it is not possible to estimate when, or even if, we will exercise our option to acquire these companies, we have not included these future potential payments in the table above.


| In millions 2014 2013 | January 1 | New nonperforming assets (a) | Charge-offs and valuation adjustments (b) | Principal activity, including paydowns and payoffs | Asset sales and transfers to loans held for sale | Returned to performing status | December 31 |


| Options (in thousands) Weighted  Average Exercise Price Weighted  Average Remaining  Contractual Term (years) Aggregate Intrinsic Value  (in thousands) | Outstanding at beginning of year | Granted | Exercised | Cancelled | Expired | Outstanding at end of year | Exercisable at end of year | Vested and Unvested expected to vest at end of year |


| U.S. Onshore Canada North America | Proved undeveloped reserves as of December 31, 2010 | Extensions and discoveries | Revisions due to prices | Revisions other than price | Conversion to proved developed reserves | Proved undeveloped reserves as of December 31, 2011 |


| Asset Derivatives Fair Value December 31 Liability Derivatives Fair Value December 31 | 2014 | (In thousands) | Derivatives designated and qualifying as hedging instruments | Fair value hedges: | Interest rate swap agreements(a) | Commitments to sell real estate loans(a) | 73,979 | Derivatives not designated and qualifying as hedging instruments | Mortgage-related commitments to originate real estate loans for sale(a) | Commitments to sell real estate loans(a) | Trading: | Interest rate contracts(b) | Foreign exchange and other option and futures contracts(b) | 264,876 | Total derivatives |


| in millions | Visa Inc. common stock | Visa Europe put option | Liability under Framework Agreement | Total purchase consideration |


As of December 31, 2006, we also leased an office and laboratory facility in Connecticut, additional office, distribution and storage facilities in San Diego, and four foreign facilities located in Japan, Singapore, China and the Netherlands under non-cancelable operating leases that expire at various times through July 2011.
These leases contain renewal options ranging from one to five years.
As of December 31, 2006, our contractual obligations were (in thousands):


| Loan Type December 31, 2011 Senior Financing December 31, 2011 Amount Outstanding, Net of Discounts December 31, 2010 Amount Outstanding, Net of Discounts Initial Maturity Date | Other Loan-1 | Mortgage/Mezzanine Loan-1 | Mortgage/ Mezzanine Loan-1 | Mezzanine Loan-1 | Mezzanine Loan-1(2)(3)(6)(7) | Mezzanine Loan-1(7)(14) | Junior Participation-1(4)(6)(7) | Mortgage/Mezzanine Loan-1(8)(18) | Junior Participation-1(6) | Junior Participation-6 | Junior Participation-6 | Junior Participation-5(6) | Mortgage/ Mezzanine Loan-2(9) | Junior Participation-11 | Junior Participation | Mezzanine Loan-1(12) | Mezzanine Loan-1(17) | Mortgage-10 | Mortgage-13 | Mezzanine Loan-15 | Mezzanine Loan-1(16) | Mezzanine Loan-1 | Junior Participation-1 | Mezzanine Loan | Mezzanine Loan-1 | Mezzanine Loan-19 | Mezzanine Loan | Mezzanine Loan | Other Loan | Loan loss reserve-6 | $3,856,292 |


ENBREL sales growth for the year ended December 31, 2008 reflects higher demand principally due to increases in average net sales price.
ENBREL sales were also favorably impacted by approximately $100 million due to a change in our distribution model for ENBREL.
Previously, ENBREL was shipped directly to pharmacies.
However, beginning in the three months ended March 31, 2008, we commenced using a wholesaler distributor model, similar to our other marketed products.
Also, ENBREL sales growth for the year ended December 31, 2008 was affected by share declines in the rheumatology and dermatology segments in the United States compared to the prior year due to increased competitive activity.
However, sales growth continued in both rheumatology and dermatology, and ENBREL continues to maintain a leading position in both segments.
ENBREL sales growth for the year ended December 31, 2007 was driven by demand due to increases in both patients and average net sales price.
While ENBREL continued to maintain a leading position in both rheumatology and dermatology, the sales growth during the year ended December 31, 2007 was affected by slight share declines in the United States in both segments compared to the prior year due to increased competitive activity.


| Year Ended December 31 | ($ in millions) | Cost of product sales | % of product sales | Cost of service revenues | % of service revenues | General and administrative expenses | % of total sales and service revenues | Goodwill impairment | Cost of sales and service revenues |


| (In millions) 2018 2017 2016 | Operating activities | Investing activities | Financing activities |


| Years ended December 31, Federal State | 2004 to 2008 | 2009 to 2013 | 2014 to 2018 | 2019 to 2023 | Total |


$3.5 billion.
We believe that this is primarily due to a lack of financing for purchasers.
However, we have been able to access capital for refinancing purposes which we believe primarily results from the asset quality of our portfolio and our ability to create and preserve asset value.
Leasing activity for Manhattan, a borough of New York City, totaled approximately 16.3 million square feet compared to approximately 19.1 million square feet in 2008.
Of the total 2009 leasing activity in Manhattan, the Midtown submarket accounted for approximately 11.3 million square feet, or 69.1%.
Midtowns overall vacancy increased from 8.5% at December 31, 2008 to 12.0% at December 31, 2009, after reaching as high as 13.4% in October 2009.
Overall asking rents for direct space in Midtown decreased from $72.08 at year-end 2008 to $57.32 at year-end 2009, a decrease of 20.5%.
The decrease in rents has been driven by increased vacancy resulting from the financial crisis.
Management believes that rental rates will begin to moderate and concession packages will decline during 2010 as vacancy shrinks.
During 2009, minimal new office space was added to the Midtown office inventory.
In a supply-constrained market, there is only 2.0 million square feet under construction in Midtown as of year-end and which becomes available in the next two years, only 7.3% of which is pre-leased.
We saw significant fluctuations in short-term interest rates, although they still remain low compared to historical levels.
The 30-day LIBOR rate ended 2009 at 0.23%, a 21 basis point decrease from the end of 2008.
Ten-year US Treasuries ended 2009 at 3.83%, a 162 basis point increase from the end of 2008.
Our activities for 2009 included: ?
Acquired two sub-leasehold positions at 420 Lexington Avenue for approximately $15.9 million; ?
Sold two properties for an aggregate gross sales price of approximately $135.7 million generating losses to us of approximately $7.1 million; ?
Signed 217 office leases totaling 2.1 million square feet during 2009 while increasing the cash rents paid by new tenants on previously occupied space by 14.8% and decreasing cash rents by 2.4% over the most recent cash rent paid by the previous tenants for the same space for the Manhattan and Suburban properties, respectively; ?
Sold 19,550,000 shares of our common stock, generating net proceeds of approximately $387.1 million; ?
Repurchased approximately $564.6 million of our exchangeable and non-exchangeable notes and a portion of our 2007 unsecured revolving credit facility, realizing gains on early extinguishment of debt of approximately $86.0 million; ?
Originated or acquired approximately $184.3 million of new structured finance investments, net of redemptions and recorded approximately $146.5 million in loan loss reserves and charge offs; and ?
Closed on approximately $1.0 billion of mortgage financings.
As of December 31, 2009, we owned the following interests in commercial office properties in the New York Metro area, primarily in midtown Manhattan, a borough of New York City, or Manhattan.
Our investments in the New York Metro area also include investments in Brooklyn, Queens, Long Island, Westchester County, Connecticut and New Jersey, which are collectively known as the Suburban assets:


| Q1 Q2 Q3 Q4 Full Year | 2018 | Reported supplemental revenues | Reported contingent revenues | Reported supplemental and contingent revenues | 2017 | Reported supplemental revenues | Reported contingent revenues | Reported supplemental and contingent revenues | 2016 | Reported supplemental revenues | Reported contingent revenues | Reported supplemental and contingent revenues | 2018 | Compensation expense, as reported | Acquisition integration | Workforce related charges | Acquisition related adjustments | Levelized foreign currency translation | Compensation expense, as adjusted | Reported compensation expense ratios | Adjusted compensation expense ratios | Reported revenues | Adjusted revenues - see page 28 |


| Shares Weighted-Average Exercise Price (per share) Weighted-Average Remaining Life (years) Aggregate Intrinsic Value | Options outstanding at January 1, 2014 | Granted | Forfeited or expired | Exercised | Options outstanding at December 31, 2014 | Exercisable at December 31, 2014 | 2014 | Intrinsic value | Exercise proceeds | Income tax benefit |


The increase in sales and marketing expense in fiscal 2005 compared to fiscal 2004 was primarily due to: (1) an increase of $27.8 million in variable compensation driven by shipments, higher commission rates applied to shipments beginning in fiscal 2005 and increased business performance-related compensation; (2) an increase of $4.6 million in sales and marketing personnel and related costs due to increased headcount and acquisitions during the fiscal year; and (3) an increase of $4.6 million in severance-related costs associated with a workforce reduction executed during the third and fourth quarters of fiscal 2005.
These increases were partially offset by decreases of: (1) $4.2 million as a result of a reduction in expenses for sales conferences and related meetings; (2) $1.6 million in human resources, information technology and facilities corporate allocated costs allocated to this line item compared to fiscal 2004 as a result of decreased headcount; (3) $1.2 million related to reduced depreciation to this line item; and (4) $1.0 million related to reduced travel expenses.


| Years ended December 31, 2009 2008 2007 | Commercial Airplanes | Boeing Defense, Space & Security | Boeing Capital Corporation | Other segment | Unallocated items and eliminations | Total |


only those CPU and AMD APU products that are commonly referred to as
“processors in a box” and for certain server CPU products.
The Company also offered extended limited warranties to certain customers of
“tray” microprocessor products and/or professional graphics products who have written agreements with the Company and target their computer systems at the commercial and/or embedded markets.
Changes in the Company’s estimated liability for product warranty during the years ended December 26, 2015 and December 27, 2014 are as follows:


| Year ended December 31, | 2018 | (in millions) | Operating results-1: | Revenues | Expenses | Adjusted operating income | Realized investment gains (losses), net, and related adjustments | Equity in earnings of operating joint ventures and earnings attributable to noncontrolling interests | Income (loss) before income taxes and equity in earnings of operating joint ventures | Year ended December 31, | 2018 | (in millions) | U.S. GAAP results: | Revenues | Benefits and expenses | Income (loss) before income taxes and equity in earnings of operating joint ventures |


| Ratings profile of VIE assets of the multi-seller conduits(a) Commercial paper funded Wt. avg. expected | December 31, 2007 | (in billions) | Asset types: | Credit card | Vehicle loans and leases | Trade receivables | Student loans | Commercial | Residential mortgage | Capital commitments | Rental car finance | Equipment loans and leases | Floorplan– vehicle | Floorplan– other | Consumer | Other | Total |