Total debt, which includes long-term debt, current maturities of long-term debt, commercial paper and other short-term borrowings, was $4.7 billion, $6.6 billion and $6.8 billion for 2017, 2016 and 2015, respectively.
During the year, the Company repaid $250 million of 5.125% notes that matured in December 2016.
In 2015, the Company issued $500 million of 2.625% notes due December 2021 and $500 million of 3.150% notes due June 2025, and repaid $250 million of 5.0% notes that matured in December 2014 and $250 million of 4.125% notes that matured in April 2015.
The total debt-to-capital ratio and the net debt-to-net capital ratio (less cash and short-term investments) decreased in 2017 due to lower total debt outstanding and higher common stockholders equity from changes in other comprehensive income.
The total debt-to-capital ratio and the net debt-to-net capital ratio (less cash and short-term investments) increased in 2016 due to lower common stockholders equity from share repurchases and changes in other comprehensive income.
The operating cash flow from continuing operations-to-debt ratio increased in 2017 primarily due to lower debt in the current year.
The operating cash flow from continuing operations-todebt ratio increased in 2016 primarily due to taxes paid in 2015 on the divestiture gains and lower debt in 2016.
The interest coverage ratio is computed as earnings from continuing operations before income taxes plus interest expense, divided by interest expense.
The increase in interest coverage in 2017 reflects lower interest expense in the current year.
The decrease in interest coverage in 2016 reflects lower pretax earnings, largely due to the divestiture gains of $1,039 million in 2015, and slightly higher interest expense.
In April 2014, the Company entered into a $3.5 billion fiveyear revolving backup credit facility with various banks, which replaced the December 2010 $2.75 billion facility.
The credit facility is maintained to support general corporate purposes, including commercial paper borrowing.
The Company has not incurred any borrowings under this or previous facilities.
The credit facility contains no financial covenants and is not subject to termination based on a change of credit rating or material adverse changes.
The facility is unsecured and may be accessed under various interest rate and currency denomination alternatives at the Companys option.
Fees to maintain the facility are immaterial.
The Company also maintains a universal shelf registration statement on file with the SEC under which
upon regulatory approval.
The 2007 Trust Securities, will be exchanged into a like amount of Holding Company junior subordinated debentures on December 15, 2037, the scheduled redemption date; mandatorily under certain circumstances; and at any time upon the Holding Company exercising its option to redeem the securities.
The 2007 Trust Securities will be exchanged for junior subordinated debentures prior to repayment and the Holding Company is ultimately responsible for repayment of the junior subordinated debentures.
The Holding Companys other rights and obligations as it relates to the deferral of interest, redemption, replacement capital obligation and RCC associated with the issuance of the Trust Securities are more fully described in The Company  Liquidity and Capital Sources  Debt Issuances.
 As described more fully in The Company  Liquidity and Capital Sources  Debt Issuances: ?
In December 2007, the Holding Company, in connection with the collateral financing arrangement associated with MRCs reinsurance of the closed block liabilities, entered into an agreement with an unaffiliated financial institution under which the Holding Company is entitled to the interest paid by MRC on the surplus notes of 3-month LIBOR plus 0.55% in exchange for the payment of 3-month LIBOR plus 1.12%, payable quarterly.
Under this agreement, the Holding Company may also be required to pledge collateral or make payments to the unaffiliated financial institution related to any decline in the estimated fair value of the surplus notes and in connection with any early termination of this agreement.
During the year ended December 31, 2008, the Holding Company paid $800 million to the unaffiliated financial institution related to a decline in the estimated fair value of the surplus notes.
This payment reduced the amount under the agreement on which the Holding Companys interest payment is due but did not reduce the outstanding amount of the surplus notes.
In addition, the Holding Company had pledged collateral of $230 million to the unaffiliated financial institution at December 31, 2008.
No collateral was pledged at December 31, 2007.
The Holding Companys net cost of 0.57% has been allocated to MRC.
For the year ended December 31, 2008, this amount was $14 million.
For the year ended December 31, 2007 this amount was immaterial.  ?
In May 2007, the Holding Company, in connection with the collateral financing arrangement associated with MRSCs reinsurance of universal life secondary guarantees, entered into an agreement with an unaffiliated financial institution under which the Holding Company is entitled to the return on the investment portfolio held by a trust established in connection with this collateral financing arrangement in exchange for the payment of a stated rate of return to the unaffiliated financial institution of 3-month LIBOR plus 0.70%, payable quarterly.
The Holding Company may also be required to make payments to the unaffiliated financial institution, for deposit into the trust, related to any decline in the fair value of the assets held by the trust, as well as amounts outstanding upon maturity or early termination of the collateral financing arrangement.
As a result of this agreement, the Holding Company effectively assumed the $2.4 billion liability under the collateral financing agreement along with a beneficial interest in the trust holding the associated assets.
The Holding Company simultaneously contributed to MRSC its beneficial interest in the trust, along with any return to be received on the investment portfolio held by the trust.
For the year ended December 31, 2008, the Holding Company paid $320 million to the unaffiliated financial institution as a result of the decline in the fair value of the assets in the trust.
All of the $320 million was deposited into the trust.
In January 2009, the Holding Company paid an additional $360 million to the unaffiliated financial institution as a result of the continued decline in the fair value of the assets in trust which was also deposited into the trust.
In addition, the Holding Company may be required to pledge collateral to the unaffiliated financial institution under this agreement.
At December 31, 2008, the Holding Company had pledged $86 million under the agreement.
No collateral had been pledged under the agreement as December 31, 2007.
Interest expense incurred by the Holding Company under the collateral financing arrangement for the years ended December 31, 2008 and 2007 was $107 million and $84 million, respectively.
The allocation of these financing costs to MRSC is included in other revenues and recorded as an additional investment in MRSC.
In December 2006, the Holding Company issued junior subordinated debentures with a face amount of $1.25 billion.
See The Company  Liquidity and Capital Sources  Debt Issuances for further information.
In September 2006, the Holding Company issued $204 million of affiliated long-term debt with an interest rate of 6.07% maturing in 2016.
In March 2006, the Holding Company issued $10 million of affiliated long-term debt with an interest rate of 5.70% maturing in 2016.
The following table summarizes the Holding Companys outstanding senior notes series, excluding any premium or discount, at December 31, 2008:


| Twelve Months Ended | (Millions of Dollars) | Operating revenues | Gas purchased for resale | Net revenues | Operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Gas operating income |


| (Dollar amounts in millions) 12/31/2011 Net New Business Net  Acquired Market /FX App (Dep) 12/31/2012 | Core | Currency and commodities | Alternatives |


| (Thousands of barrels per day) 2007 2006 2005 | Gasoline | Distillates | Propane | Feedstocks and Special Products | Heavy Fuel Oil | Asphalt | TOTAL(a) | Average sales price (Dollars per barrel) |


transactions are reported in cost of revenues, or on a
‘‘net’’ basis.
Transactions under contracts entered into before April 1, 2006 will continue to be reported on a
‘‘gross’’ basis.
Each purchase and sale transaction has the characteristics of a separate legal transaction, including separate invoicing and cash settlement.
Accordingly, we believed that we were required to account for these transactions separately.
An accounting interpretation clarified the circumstances under which a matching buy/sell transaction should be viewed as a single transaction involving the exchange of inventory.
For a further description of the accounting requirements and how they apply to matching buy/sell transactions, see Note 2 to the consolidated financial statements.
This accounting change had no effect on net income but the amounts of revenues and cost of revenues recognized after April 1, 2006 are less than the amounts that would have been recognized under previous accounting practices.
Additionally, this accounting change impacts the comparability of certain operating statistics, most notably
‘‘refining and wholesale marketing gross margin per gallon.
’’ While this change does not have an effect on the refining and wholesale marketing gross margin (the numerator for calculating this statistic), sales volumes (the denominator for calculating this statistic) recognized after April 1, 2006 are less than the amount that would have been recognized under previous accounting practices because volumes related to matching buy/sell transactions under contracts entered into or modified on or after April 1, 2006 have been excluded.
Accordingly, the resulting refining and wholesale marketing gross margin per gallon statistic will be higher than that same statistic calculated from amounts determined under previous accounting practices.
The effect of this change on the refining and wholesale marketing gross margin per gallon for 2006 was not significant.


| Dollars in billions December 31 2012 December 312011 | Net outstanding standby letters of credit | Internal credit ratings (as a percentage of portfolio): | Pass (a) | Below pass (b) |


| Table 15 Bank of America, N.A. and FIA Card Services, N.A. Regulatory Capital | December 31 | 2011 | (Dollars in millions) | Tier 1 | Bank of America, N.A. | FIA Card Services, N.A. | Total | Bank of America, N.A. | FIA Card Services, N.A. | Tier 1 leverage | Bank of America, N.A. | FIA Card Services, N.A. |


| 2007 2006 2005 | (Awards in thousands) | Outstanding beginning of year | Exercised | Forfeited | Expired | Outstanding at end of year | Exercisable at end of year |


(D) Executive Deferred Compensation Plan Effective January 1, 2011, we established an unfunded nonqualified deferred compensation plan to permit certain eligible associates to defer receipt of a portion of their compensation to a future date.
This plan also includes a restorative company contribution designed to compensate the plan participants for any loss of company contributions under the Retirement Savings 401(k) Plan and the Retirement Restoration Plan due to a reduction in their eligible compensation resulting from deferrals into the Executive Deferred Compensation Plan.
The total cost for this plan was not significant in fiscal 2016, fiscal 2015 and fiscal 2014.11.


German InfraServ Entities On January 1, 1997, coinciding with a reorganization of the Hoechst businesses in Germany, real estate service companies (InfraServ Entities) were created to own directly the land and property and to provide various technical and administrative services at each of the manufacturing locations.
The Company owns manufacturing facilities at the InfraServ location in Frankfurt am Main-Hoechst, Germany and holds equity interests in the companies which own and operate the former Hoechst sites in Frankfurt am Main-Hoechst, Gendorf and Knapsack, all of which are located in Germany.
InfraServ Entities are liable for any residual contamination and other pollution because they own the real estate on which the individual facilities operate.
In addition, Hoechst, and its legal successors, as the responsible party under German public law, is liable to third parties for all environmental damage that occurred while it was still the owner of the plants and real estate (Note 23).
The contribution agreements entered into in 1997 between Hoechst and the respective operating companies, as part of the divestiture of these companies, provide that the operating companies will indemnify Hoechst, and its legal successors, against environmental liabilities resulting from the transferred businesses.
Additionally, the InfraServ Entities have agreed to indemnify Hoechst, and its legal successors, against any environmental liability arising out of or in connection with environmental pollution of any site.
The InfraServ partnership agreements provide that, as between the partners, each partner is responsible for any contamination caused predominantly by such partner.
Any liability, which cannot be attributed to an InfraServ partner and for which no third party is responsible, is required to be borne by the InfraServ partnership.
If an InfraServ partner defaults on its respective indemnification obligations to eliminate residual contamination, the owners of the remaining participation in the InfraServ companies have agreed to fund such liabilities, subject to a number of limitations.
To the extent that any liabilities are not satisfied by either the InfraServ Entities or their owners, these liabilities are to be borne by the Company in accordance with the demerger agreement.
However, Hoechst, and its legal successors, will reimburse the Company for two-thirds of any such costs.
Likewise, in certain circumstances the Company could be responsible for the elimination of residual contamination on several sites that were not transferred to InfraServ companies, in which case Hoechst, and its legal successors, must also reimburse the Company for two-thirds of any costs so incurred.
The German InfraServ Entities are owned partially by the Company (Note 8), as noted below, and the remaining ownership is held by various other companies.
The Company's ownership interest and environmental liability participation percentages for such liabilities which cannot be attributed to an InfraServ partner are as follows:


McKESSON CORPORATION FINANCIAL REVIEW (Continued) 46 Financing activities for 2007 include our March 2007 issuance of $500 million of 5.25% notes due 2013 and $500 million of 5.70% notes due 2017.
Net proceeds of $997 million from the issuance of the notes, after offering expenses, were used, together with cash on hand, to repay $1.0 billion of short-term borrowings then outstanding under the interim facility we entered into in connection with the acquisition of Per-Se.
Financing activities for 2007 also include $1.0 billion of cash paid for stock repurchases and $72 million of dividends paid, partially offset by $399 million of cash receipts from common stock issuances.
The Companys Board of Directors (the Board) has authorized the repurchase of McKessons common stock from time to time in open market or private transactions, which is described in more detail in Financial Note 19, Stockholders Equity, to the accompanying consolidated financial statements.
During 2009, 2008 and 2007, the Company repurchased $484 million, $1,686 million and $1,001 million of its common stock at average prices of $50.52, $59.48 and $51.46.
As of March 31, 2009, $830 million remained available for future repurchases under the outstanding April 2008 Board approved share repurchase plan.
In July 2008, the Board authorized the retirement of shares of the Companys common stock that may be repurchased from time to time pursuant to its stock repurchase program.
During the second quarter of 2009, all of the 4 million repurchased shares, which we purchased for $204 million, were formally retired by the Company.
The retired shares constitute authorized but unissued shares.
We elected to allocate any excess of share repurchase price over par value between additional paid-in capital and retained earnings.
As such, $165 million was recorded as a decrease to retained earnings.
In April 2008, the Board approved a change in the Companys dividend policy by increasing the amount of the Companys quarterly dividend from six cents to twelve cents per share, applicable to ensuing quarterly dividend declarations until further action by the Board.
The Company anticipates that it will continue to pay quarterly cash dividends in the future.
However, the payment and amount of future dividends remain within the discretion of the Board and will depend upon the Companys future earnings, financial condition, capital requirements and other factors.
Although we believe that our operating cash flow, financial assets, current access to capital and credit markets, as evidenced by our most recent debt issuance in February 2009, including our existing credit and sales facilities, will give us the ability to meet our financing needs for the foreseeable future, there can be no assurance that continued or increased volatility and disruption in the global capital and credit markets will not impair our liquidity or increase our costs of borrowing.


| Twelve Months Ended December 31, Change | 2015 vs. 2014 | International | (In millions) | Operating revenue: | Europe | Latin America | Canada | Total operating revenue | % of consolidated revenue | Total operating income | Operating margin |


Use of Estimates The preparation of the financial statements requires management to make a number of estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period.
The most significant estimates, as discussed within our Summary of Significant Accounting Policies, pertain to the critical assumptions utilized in testing real estate assets for impairment as well as in estimating the fair value of real estate assets when an impairment event has taken place.
Actual results could differ from those estimates.


| In millions December 31 2012 December 31 2011 | Home equity loans/lines: | Private investors (a) | In millions | Consumer lending: | Real estate-related | Credit card (a) | Other consumer | Total consumer lending (b) | Total commercial lending | Total TDRs | Nonperforming | Accruing (c) | Credit card (a) | Total TDRs |


| System Peak Demand (in MW) | 2018 | NSP System(a) | PSCo(a) | SPS(a) |


| 2011 2010 | Insurance Contracts | Beginning balance January 1 | Actual return on plan assets | Relating to assets still held at December 31 | Relating to assets sold during the year | Purchases | Sales | Transfers to Level 3 | Ending balance December 31 |


| In millions Dec. 312012 Dec. 312011 | Total consumer lending (a) | Total commercial lending | Total TDRs | Nonperforming | Accruing (b) | Credit card (c) | Total TDRs |


During the year ended December 31, 2005, 3M entered into two immaterial additional business combinations for a total purchase price of $27 million, net of cash acquired.1) 3M (Electro and Communications Business) purchased certain assets of Siemens Ultrasound division’s flexible circuit manufacturing line, a U. S.  operation.
The acquired operation produces flexible interconnect circuits that provide electrical connections between components in electronics systems used primarily in the transducers of ultrasound machines.2) 3M (Display and Graphics Business) purchased certain assets of Mercury Online Solutions Inc. , a U. S.  operation.
The acquired operation provides hardware and software technologies and network management services for digital signage and interactive kiosk networks.


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


| Year Ended December 31, | 2003 | $ | ($ in thousands) | Expenses | Employee compensation and benefits | Depreciation and amortization | Technology and communications | Professional and consulting fees | Warrant-related expense | Marketing and advertising | Moneyline revenue share | Restructuring charges | General and administrative | Total expenses |


Power Generation Segment Results Financial data for the Power Generation segment was as follows:
Sales for our Power Generation segment by business were as follows:


| Years Ended December 31, | 2013 | (in millions) | Current income tax | Federal | State and local | Foreign | Total current income tax | Deferred income tax | Federal | State and local | Foreign | Total deferred income tax | Total income tax provision |


Note 13  Equity Method Investments Noble Energy owns a 45% interest in Atlantic Methanol Production Company, LLC (AMPCO), which owns and operates a methanol production facility and related facilities in Equatorial Guinea and a 28% interest in Alba Plant, LLC (Alba Plant), which owns and operates a liquefied petroleum gas (LPG) processing plant.
Construction of the Alba Plant was funded primarily through advances by the Company and other owners in exchange for notes payable by the Alba Plant.
The notes mature on December 31, 2011 and bear interest at the 90-day LIBOR rate plus 3%.
Noble Energy owns 50% interests in AMPCO Marketing, LLC and AMPCO Services, LLC, which provide technical and consulting services.
These investments, which are accounted for using the equity method, are included in equity method investments on the Companys balance sheets, and the Companys share of earnings is reported as income from equity method investments on the Companys statements of operations.
Summarized, 100% combined financial information for equity method investees was as follows: Balance Sheet Information


| Facility Name Location Commodity Handled Interest Gross Loading Capacity* | Marine | Beaumont | Clifton Ridge † | Freeport | Hartford † | Pecan Grove † | Portland | Richmond | San Bernard | Tacoma | Tremley Point † | Rail | Bayway † | Beaumont | Ferndale † | Missoula | Palermo † | Thompson Falls | Petroleum Coke | Lake Charles |


Future Policy Benefit Reserves.
The Company wrote a limited amount of life and annuity reinsurance in its Bermuda segment.
Future policy benefit liabilities for annuities are reported at the accumulated fund balance of these contracts.
Reserves for those liabilities include mortality provisions with respect to life and annuity claims, both reported and unreported.
Actual experience in a particular period may be worse than assumed experience and, consequently, may adversely affect the Company’s operating results for that period.
See ITEM 8, “Financial Statements and Supplementary Data” - Note 1F of Notes to Consolidated Financial Statements.
Activity in the reserve for future policy benefits is summarized for the periods indicated:


We are working on several projects and we expect to continue to review and evaluate potential acquisitions of businesses, products or technologies, and strategic alliances that we believe will complement our current or future business.
Subject to the Risk Factors set forth in Part I, Item 1A of this report and the general disclaimers set forth in our Special Note Regarding Forward-Looking Statements at the outset of this Report, we believe that cash flow from operations and cash available from our Amended Credit Agreement will provide us with sufficient funds in order to fund our expected operations over the next twelve months.
Our longer-term liquidity is contingent upon future operating performance and our ability to continue to meet financial covenants under our Amended Credit Agreement.
We may also require additional capital in the future to fund capital expenditures, acquisitions or other investments, or to repay our convertible notes.
The holders of the convertible notes may require us to repurchase the notes on December 13 of 2013, and on each of December 15, 2017, 2022, 2027 and 2032 at a repurchase price equal to 100% of their accreted principal amount.
These capital requirements could be substantial.
Our operating performance may also be affected by matters discussed under the above-referenced Risk Factors as elsewhere in this report.
These risks, trends and uncertainties may also adversely affect our longterm liquidity.


Tobacco-Related Cases Set for Trial: As of January 29, 2018, three Engle progeny cases are set for trial through March 31, 2018.
There are no other individual smoking and health cases against PM USA set for trial during this period.
Cases against other companies in the tobacco industry may be scheduled for trial during this period.
Trial dates are subject to change.
Trial Results: Since January 1999, excluding the Engle progeny cases (separately discussed below), verdicts have been returned in 63 smoking and health, “Lights/Ultra Lights” and health care cost recovery cases in which PM USA was a defendant.
Verdicts in favor of PM USA and other defendants were returned in 42 of the 63 cases.
These 42 cases were tried in Alaska (1), California (7), Connecticut (1), Florida (10), Louisiana (1), Massachusetts (2), Mississippi (1), Missouri (4), New Hampshire (1), New Jersey (1), New York (5), Ohio (2), Pennsylvania (1), Rhode Island (1), Tennessee (2) and West Virginia (2).
A motion for a new trial was granted in one of the cases in Florida and in the case in Alaska.
In the Alaska case (Hunter), the trial court withdrew its order for a new trial upon PM USA’s motion for reconsideration.
In December 2015, the Alaska Supreme Court reversed the trial court decision and remanded the case with directions for the trial court to reassess whether to grant a new trial.
In March 2016, the trial court granted a new trial and PM USA filed a petition for review of that order with the Alaska Supreme Court, which the court denied in July 2016.
The retrial began in October 2016.
In November 2016, the court declared a mistrial after the jury failed to reach a verdict.
The plaintiff subsequently moved for a new trial, which is scheduled to begin April 9, 2018.
See Types and Number of Cases above for a discussion of the trial results in In re: Tobacco Litigation (West Virginia consolidated cases).
Of the 21 non-Engle progeny cases in which verdicts were returned in favor of plaintiffs, 18 have reached final resolution.
As of January 29, 2018, 116 state and federal Engle progeny cases involving PM USA have resulted in verdicts since the Florida Supreme Court’s Engle decision as follows: 61 verdicts were returned in favor of plaintiffs; 45 verdicts were returned in favor of PM USA.
Eight verdicts that were initially returned in favor of plaintiff were reversed post-trial or on appeal and remain pending and two verdicts in favor of PM USA were reversed for a new trial.
See Smoking and Health Litigation - Engle Progeny Trial Court Results below for a discussion of these verdicts.
Judgments Paid and Provisions for Tobacco and Health Litigation Items (Including Engle Progeny Litigation): After exhausting all appeals in those cases resulting in adverse verdicts associated with tobacco-related litigation, since October 2004, PM USA has paid in the aggregate judgments and settlements (including related costs and fees) totaling approximately $490 million and interest totaling approximately $184 million as of December 31, 2017.
These amounts include payments for Engle progeny judgments (and related costs and fees) totaling approximately $99 million, interest totaling approximately $22 million and payment of approximately $43 million in connection with the Federal Engle Agreement, discussed below.


Unit case volume for Bottling Investments increased 10 percent.
The group had growth in key markets where we own or otherwise consolidate bottling operations, including unit case volume growth of 4 percent in China, 16 percent in India, 5 percent in the Philippines and 1 percent in Germany.
The Company’s consolidated bottling operations accounted for 34 percent, 65 percent, 100 percent and 100 percent of the unit case volume in China, India, the Philippines and Germany, respectively.
The group’s volume growth included a benefit of 3 percentage points attributable to the acquisition of bottling operations in Vietnam, Cambodia and Guatemala during the year ended December 31, 2012.
Concentrate Sales Volume In 2013, concentrate sales volume and unit case volume both grew 2 percent compared to 2012.
Likewise, in 2012, concentrate sales volume and unit case volume both grew 4 percent compared to 2011.
The differences between concentrate sales volume and unit case volume growth rates for individual operating segments in 2013 and 2012 were primarily due to the timing of concentrate shipments and the impact of unit case volume from certain joint ventures in which the Company has an equity interest, but to which the Company does not sell concentrates, syrups, beverage bases or powders.
Analysis of Consolidated Statements of Income


Notes to Consolidated Financial Statements  (continued) (Amounts in Millions, Except Per Share Amounts) Guarantees We have guaranteed certain obligations of our subsidiaries relating principally to operating leases and uncommitted lines of credit of certain subsidiaries.
As of December 31, 2018 and 2017, the amount of parent company guarantees on lease obligations was $824.5 and $829.2, respectively, the amount of parent company guarantees primarily relating to uncommitted lines of credit was $349.1 and $308.8, respectively, and the amount of parent company guarantees related to daylight overdrafts, primarily utilized to manage intra-day overdrafts due to timing of transactions under cash pooling arrangements without resulting in incremental borrowings, was $207.8 and $182.2, respectively.
In the event of non-payment by the applicable subsidiary of the obligations covered by a guarantee, we would be obligated to pay the amounts covered by that guarantee.
As of December 31, 2018, there were no material assets pledged as security for such parent company guarantees.


Adjusted Operating Profit as a Percent of Net Sales Excluding Certain Items Affecting Comparability We believe this measure provides useful information to investors because it is important for assessing our operating profit margin on a comparable basis.
Adjusted operating profit excludes certain items affecting comparability


| December 31 | 2004 | (In thousands) | Commitments to extend credit | Home equity lines of credit | Commercial real estate loans to be sold | Other commercial real estate and construction | Residential real estate loans to be sold | Other residential real estate | Commercial and other | Standby letters of credit | Commercial letters of credit | Financial guarantees and indemnification contracts | Commitments to sell real estate loans |


| In millions, except per share amounts 2005 2004 | Net Earnings (Loss) | As reported | Pro forma | Basic Earnings (Loss) Per Common Share | As reported | Pro forma | Diluted Earnings (Loss) Per Common Share | As reported | Pro forma |


| (In millions) 2006 2005 2004 2003 2002 | Net earnings | Interest expense (multiplied by 65%)1 | Return | Average debt2, 5 | Average equity3, 5 | Average benefit plan adjustments3, 4,5 | Average invested capital | Return on invested capital |


American International Group, Inc. , and Subsidiaries The Capital Markets wind-down and other segment developments affecting pre-tax income (loss) described above are discussed further in Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity of Parent and Subsidiaries — Financial Services — Capital Markets Wind-down.
Accrued compounding interest and fees (reflected as non-cash expenses) were paid in kind in 2010 and 2009 under the provisions of the FRBNY Credit Facility and, accordingly, did not reduce operating cash flow in any period.
Debt under the FRBNY Credit Facility includes total accrued compounding interest and fees of $6.4 billion at December 31, 2010.
This amount was fully repaid in cash on January 14, 2011 as part of the Recapitalization.
Net cash used in investing activities in 2010 primarily resulted from net purchases of fixed maturity securities, resulting from AIG’s investment of cash generated from operating activities, and the redeployment of liquidity that had been accumulated by the insurance companies in 2008 and 2009.
In these years, Net cash provided by investing activities resulted from the net proceeds from the sale and maturity of investments.


| Table 4 Noninterest Income | (Dollars in millions) | Card income | Service charges | Investment and brokerage services | Investment banking income | Equity investment income | Trading account profits | Mortgage banking income (loss) | Insurance income | Gains on sales of debt securities | Other income | Net impairment losses recognized in earnings on available-for-sale debt securities | Total noninterest income |


| 2007 2006 | (in millions) | Joint ventures and limited partnerships: | Real estate related | Non real estate related | Total joint ventures and limited partnerships | Real estate held through direct ownership | Other | Total other long-term investments |


| Named Exeutive Officer Stock Options | J. Wayne Leonard | Leo P. Denault | Richard J. Smith | E. Renae Conley | Hugh T. McDonald | Haley Fisackerly | Joseph F. Domino | Roderick K. West | Theodore H. Bunting, Jr. | Carolyn Shanks |


| Total Level 1 Level 2 Level 3 | -1 | -2 | Domestic Equity Securities | Rollins, Inc. Stock | Other Securities | Global Equity Securities | -3 | -4 | -5 | -6 | -7 | Total | Total | -1 | -2 | Domestic Equity Securities | Rollins, Inc. Stock | Other Securities | Global Equity Securities | -3 | -4 | -5 | -6 | -7 | Total | December 31, | Accounts receivable, net | Materials and supplies | Equipment and property | Goodwill | Customer contracts | Other intangible assets | Current liabilities | Other assets and liabilities, net | Total consideration paid | Less: Contingent consideration liability | Total cash purchase price |


| 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 | (In millions) | Gross Liability, End of Year | Reinsurance Recoverable, End of Year | Net Liability, End of Year | Reestimated Gross Liability | Reestimated Reinsurance Recoverable | Reestimated Net Liability | Cumulative Gross | Redundancy/(Deficiency) |


| December 31, | 2010 | (In millions) | Commercial paper | MetLife Bank, N.A. — Advances agreements with the FHLB of NY | Other | Total short-term debt | Average daily balance | Average days outstanding | Borrower(s) | (In millions) | MetLife, Inc. and MetLife Funding, Inc. | MetLife, Inc. and MetLife Funding, Inc. | Total |


| 2008 2007 2006 | Balance at January 1 | Increase (decrease) in fair value | Reclassifications to earnings | Balance at December 31 | December 31, | (In thousands) | Commercial | Commercial real estate | Consumer | Outstanding balance | Carrying amount | Less ALLL | Carrying amount, net |


| December 31, | 2016 | Uncertain gross tax positions, January 1 | Current year tax positions | Increase prior year tax positions | Decrease prior year tax positions | Settlements | Lapse of statutes of limitations | Uncertain gross tax positions, December 31 |


supplies.
Expenses for purchased services increased 10% compared to 2012 due to logistics management fees, an increase in locomotive overhauls and repairs on jointly owned property.
Expenses for contract services increased $103 million in 2012 versus 2011, primarily due to increased demand for transportation services purchased by our logistics subsidiaries for their customers and additional costs for repair and maintenance of locomotives and freight cars.
Depreciation – The majority of depreciation relates to road property, including rail, ties, ballast, and other track material.
Depreciation was up 1% compared to 2012.
Recent depreciation studies allowed us to use longer estimated service lives for certain equipment, which partially offset the impact of a higher depreciable asset base resulting from larger capital spending in recent years.
A higher depreciable asset base, reflecting ongoing capital spending, increased depreciation expense in 2012 compared to 2011.
Equipment and Other Rents – Equipment and other rents expense primarily includes rental expense that the Railroad pays for freight cars owned by other railroads or private companies; freight car, intermodal, and locomotive leases; and office and other rent expenses.
Additional container costs resulting from the logistics management arrangement, and increased automotive shipments, partially offset by lower cycle times drove a $51 million increase in our short-term freight car rental expense versus 2012.
Conversely, lower locomotive and freight car lease expenses partially offset the higher freight car rental expense.
Increased automotive and intermodal shipments, partially offset by improved car-cycle times, drove an increase in our short-term freight car rental expense in 2012 compared to 2011.
Conversely, lower locomotive lease expense partially offset the higher freight car rental expense.
Other – Other expenses include state and local taxes, freight, equipment and property damage, utilities, insurance, personal injury, environmental, employee travel, telephone and cellular, computer software, bad debt, and other general expenses.
Higher property taxes and costs associated with damaged freight and property increased other costs in 2013 compared to 2012.
Continued improvement in our safety performance and lower estimated liability for personal injury, which reduced our personal injury expense year-over-year, partially offset increases in other costs.
Other costs in 2012 were slightly higher than 2011 primarily due to higher property taxes.
Despite continual improvement in our safety experience and lower estimated annual costs, personal injury expense increased in 2012 compared to 2011, as the liability reduction resulting from historical claim experience was less than the reduction in 2011.


| At December 31, | 2011 | (dollar amounts in thousands) | Commercial: | Commercial and industrial | Commercial real estate | Total commercial | Consumer: | Automobile | Home equity | Residential mortgage | Other loans | Total consumer | Total allowance for loan and lease losses | Allowance for unfunded loan commitments | Total allowance for credit losses | At December 31, | 2011 | (dollar amounts in thousands) | Criticized commercial loans, beginning of period | New additions / increases | Advances | Upgrades to Pass | Payments | Loan losses | Criticized commercial loans, end of period |


| Year ended December 31, | (Dollars in thousands) | Net interest (loss) income | Noninterest income | Noninterest expense | Loss before income tax expense | Total average assets | Year ended December 31, | (Dollars in thousands) | GAAP noninterest income | Less: income attributable to noncontrolling interests, including carried interest -1 | Non-GAAP noninterest income, net of noncontrolling interests | Less: net losses on SVBIF sale transaction -2 | Non-GAAP noninterest income, net of noncontrolling interests and excluding net losses on SVBIF sale transaction |


| At December 31, 2018 As Reported 2017 As Reported | (in millions) | Liability for unpaid losses and loss adjustment expenses | Future policy benefits for life and accident and health insurance contracts | Reserve for unearned premiums | Reinsurance assets(a) |


| December 31, 2015 Principal Unamortized  Discount Net Short Term  Debt Long Term  Debt | (In millions) | Loews Corporation | CNA Financial | Diamond Offshore | Boardwalk Pipeline | Loews Hotels | Total |


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Other Current Assets.
Other current assets on our Consolidated Balance Sheets include certain current tax receivable accounts.
As of December 31, 2018 and 2017 these assets were approximately, $69.4 million and $54.2 million, respectively.
Other current assets also includes an insurance receivable for costs incurred to date related to the 2017 cybersecurity incident that are reimbursable and probable of recovery under our insurance coverage.
As of December 31, 2018 the Company had no receivable outstanding.
As of December 31, 2017, the Company has recorded a receivable of $35.0 million.
For additional information, see Note 6.
Other current assets also include amounts in specifically designated accounts that hold the funds that are due to customers from our debt collection and recovery management services.
As of December 31, 2018 and 2017 these assets were approximately $31.0 million and $21.4 million, respectively, with fully offsetting balances in other current liabilities.
These amounts are restricted as to their current use and will be released according to the specific customer agreements.


MetLife, Inc.  Notes to the Consolidated Financial Statements  (Continued) Performance Share amounts above represent aggregate initial target awards and do not reflect potential increases or decreases resulting from the final performance factor to be determined at the end of the respective performance period.
At December 31, 2009, the three year performance period for the 2007 Performance Share grants was completed.
Included in the immediately preceding table are 801,750 outstanding Performance Shares to which the final performance factor will be applied.
The calculation of the performance factor is expected to be finalized during the second quarter of 2010 after all data necessary to perform the calculation is publicly available.
Performance Share awards are accounted for as equity awards but are not credited with dividend-equivalents for actual dividends paid on the Holding Companys common stock during the performance period.
Accordingly, the estimated fair value of Performance Shares is based upon the closing price of the Holding Companys common stock on the date of grant, reduced by the present value of estimated dividends to be paid on that stock during the performance period.
Compensation expense related to initial Performance Shares granted prior to January 1, 2006 and expected to vest is recognized ratably during the performance period.
Compensation expense related to initial Performance Shares granted on or after January 1, 2006 and expected to vest is recognized ratably over the performance period or the period to retirement eligibility, if shorter.
Performance Shares expected to vest and the related compensation expenses may be further adjusted by the performance factor most likely to be achieved, as estimated by management, at the end of the performance period.
Compensation expense of $11 million, $70 million and $90 million, related to Performance Shares was recognized for the years ended December 31, 2009, 2008 and 2007, respectively.
At December 31, 2009, there was $29 million of total unrecognized compensation costs related to Performance Share awards.
It is expected that these costs will be recognized over a weighted average period of 1.52 years.


| 2015 2014 2013 | Ameren Missouri | Ameren Illinois | Other | Ameren(a) |


Commitments and Contingencies Asserted and Unasserted Claims  Various claims and lawsuits are pending against us and certain of our subsidiaries.
We cannot fully determine the effect of all asserted and unasserted claims on our consolidated results of operations, financial condition, or liquidity; however, to the extent possible, where asserted and unasserted claims are considered probable and where such claims can be reasonably estimated, we have recorded a liability.
We do not expect that any known lawsuits, claims, environmental costs, commitments, contingent liabilities, or guarantees will have a material adverse effect on our consolidated results of operations, financial condition, or liquidity after taking into account liabilities and insurance recoveries previously recorded for these matters.
Personal Injury  The cost of personal injuries to employees and others related to our activities is charged to expense based on estimates of the ultimate cost and number of incidents each year.
We use third-party actuaries to assist us in measuring the expense and liability, including unasserted claims.
The Federal Employers Liability Act (FELA) governs compensation for work-related accidents.
Under FELA, damages are assessed based on a finding of fault through litigation or out-of-court settlements.
We offer a comprehensive variety of services and rehabilitation programs for employees who are injured at work.
Our personal injury liability is discounted to present value using applicable U. S.  Treasury rates.
Approximately 88% of the recorded liability related to asserted claims, and approximately 12% related to unasserted claims at December 31, 2008.
Because of the uncertainty surrounding the ultimate outcome of personal injury claims, it is reasonably possible that future costs to settle these claims may range from


| 2002 2001 2000 | Land, buildings and tenant improvements, net | Land held for development | Other assets | $1,338,464 | Property indebtedness | Other liabilities | 631,950 | Owners’ equity | $1,338,464 | Rental income | Net income | 2017 | Fixed rate secured debt | Weighted average interest rate | Variable rate secured debt | Weighted average interest rate | Fixed rate unsecured debt | Weighted average interest rate | Variable rate unsecured notes | Rate at December 31, 2016 | Unsecured line of credit | Rate at December 31, 2016 |


Accounting for Derivative Hedging Citigroup accounts for its hedging activities in accordance with ASC 815, Derivatives and Hedging.
As a general rule, hedge accounting is permitted where the Company is exposed to a particular risk, such as interest rate or foreign exchange risk, that causes changes in the fair value of an asset or liability or variability in the expected future cash flows of an existing asset, liability or a forecasted transaction that may affect earnings.
Derivative contracts hedging the risks associated with changes in fair value are referred to as fair value hedges, while contracts hedging the variability of expected future cash flows are cash flow hedges.
Hedges that utilize derivatives or debt instruments to manage the foreign exchange risk associated with equity investments in non-U.
S. -dollar-functionalcurrency foreign subsidiaries (net investment in a foreign operation) are net investment hedges.
To qualify as an accounting hedge under the hedge accounting rules (versus an economic hedge where hedge accounting is not applied), a hedging relationship must be highly effective in offsetting the risk designated as being hedged.
The hedging relationship must be formally documented at inception, detailing the particular risk management objective and strategy for the hedge.
This includes the item and risk(s) being hedged, the hedging instrument being used and how effectiveness will be assessed.
The effectiveness of these hedging relationships is evaluated at hedge inception and on an ongoing basis both on a retrospective and prospective basis, typically using quantitative measures of correlation, with hedge ineffectiveness measured and recorded in current earnings.
Hedge effectiveness assessment methodologies are performed in a similar manner for similar hedges, and are used consistently throughout the hedging relationships.
The assessment of effectiveness may exclude changes in the value of the hedged item that are unrelated to the risks being hedged and the changes in fair value of the derivative associated with time value.
Prior to January 1, 2018, these excluded items were recognized in current earnings for the hedging derivative, while changes in the value of a hedged item that were not related to the hedged risk were not recorded.
Upon adoption of ASC 2017-12, Citi excludes changes in the cross currency basis associated with cross currency swaps from the assessment of hedge effectiveness and records it in other comprehensive income.
Discontinued Hedge Accounting A hedging instrument must be highly effective in accomplishing the hedge objective of offsetting either changes in the fair value or cash flows of the hedged item for the risk being hedged.
Management may voluntarily de-designate an accounting hedge at any time, but if a hedging relationship is not highly effective, it no longer qualifies for hedge accounting and must be de-designated.
Subsequent changes in the fair value of the derivative are recognized in Other revenue or Principal transactions, similar to trading derivatives, with no offset recorded related to the hedged item.
For fair value hedges, any changes in the fair value of the hedged item remain as part of the basis of the asset or liability and are ultimately realized as an element of the yield on the item.
For cash flow hedges, changes in fair value of the end-user derivative remain in Accumulated other comprehensive income (loss) (AOCI) and are included in the earnings of future periods when the forecasted hedged cash flows impact earnings.
However, if it becomes probable that some or all of the hedged forecasted transactions will not occur, any amounts that remain in AOCI related to these transactions must be immediately reflected in Other revenue.
The foregoing criteria are applied on a decentralized basis, consistent with the level at which market risk is managed, but are subject to various limits and controls.
The underlying asset, liability or forecasted transaction may be an individual item or a portfolio of similar items.


Table of Contents POLO RALPH LAUREN CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) Additional information pertaining to the restricted stock and RSU activity is as follows:


| Year Amount | 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total |


During the years ended December 31, 2014, 2015 and 2016, we declared distributions to our stockholders of $1,048.9 million, $402.6 million, and $502.9 million, respectively.
These distributions represent approximately $5.37 per share, $1.91 per share and $2.04 per share for the years ended December 31, 2014, 2015 and 2016, respectively, based on the weighted average number of common shares outstanding during each respective year.
For 2014, total amounts distributed included a special distribution declared by our board of directors of $700.0 million, or $3.61 per share, associated with our conversion to a REIT, of which $560.0 million was paid in the form of our common stock and $140.0 million was paid in cash.
On February 15, 2017, we declared a dividend to our stockholders of record as of March 15, 2017 of $0.55 per share, payable on April 3, 2017


| (In thousands) December 31,  2007 | 2008 | 2009 | 2010 | 2011 | 2012 and thereafter | Total future minimum sponsorship and other marketing payments |


| Year Ended December 31, 2016 to 2017 % Change 2015 to 2016 % Change | 2017 | (in thousands) | Cost of revenue | Cost of revenue as a percentage of revenue |


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


NM Not Meaningful.
Overall Income from continuing operations before income tax provision increased $577 million, or 29%, to $2.5 billion for the year ended December 31, 2014 compared to $2.0 billion for the prior year primarily reflecting the impact of market appreciation, wrap account net inflows, an increase in net income from CIEs and the market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization), partially offset by a $109 million decrease from unlocking, asset management retail fund distributions and higher auto and home claim and claim adjustment expense.
The market impact on variable annuity guaranteed benefits (net of hedges and the related DSIC and DAC amortization) was an expense of $94 million for the year ended December 31, 2014 compared to an expense of $170 million for the prior year, which included a $17 million benefit associated with unlocking.
The following table presents the total pretax impacts on our revenues and expenses attributable to unlocking for the years ended December 31:


Item 2.
Properties.
The following chart indicates the facilities we lease as of December 30, 2007, the location and size of each such facility and their designated use.
During 2007, we expanded our facilities and leased additional space to accommodate growth in our business.
We anticipate continuing to expand our facilities over the next several years as we continue to expand our worldwide commercial operations and our manufacturing capabilities.


Performance Share Units Under the 2005 ICP, the Company’s Executive Leadership Team may be awarded a target number of performance share units (‘‘PSUs’’).
PSUs will be earned only to the extent that the Company attains certain goals relating to the Company’s performance and relative total shareholder returns against peers over a three-year period.
The awards also have a three-year service condition with cliff vesting with an accelerated service condition based on age and length of service.
The actual number of PSUs ultimately earned could vary from zero, if performance goals are not met, to as much as 200% of the target, if performance goals are significantly exceeded.
The value of each target PSU is equal to the value of one share of Ameriprise common stock.
The total amount of target PSUs outstanding at the end of December 31, 2014, 2013 and 2012 was 0.2 million, 0.3 million, 0.2 million, respectively.
The PSUs are liability awards.
During the year ended December 31, 2014, the value of shares settled for PSU awards was $20 million.
There were no settlements made for PSU awards for the years ended December 31, 2013 and 2012.


| (In millions) 2009 2008 | Indemnified securities financing | Asset purchase agreements-1 | Unfunded commitments to extend credit | Standby letters of credit |


| Year Amount | 2014 | 2015 | 2016 | 2017 | 2018 |


| $ in millions AerospaceSystems ElectronicSystems InformationSystems TechnicalServices Total | Balance as of December 31, 2010 | Businesses sold | Balance as of December 31, 2011 | Businesses acquired, sold and other | Balance as of December 31, 2012 |


| December 31, 2011 December 31, 2010 | In millions | Commercial | Commercial real estate | Consumer | Residential real estate | Total |


| Pension Benefits OtherPostretirement Benefits | 2013 | Weighted-average assumptions used to determinebenefit obligations at December 31: | Discount rate | Rate of compensation increase | Weighted-average assumptions used to determine netperiodic benefit cost for the years ended December 31: | Discount rate | Expected return on plan assets | Rate of compensation increase | Assumed health care cost trend rates at December 31: -1 | Health care cost trend rate assumed for next year | Rate to which the cost trend rate is assumed to decline(the ultimate trend rate) | Year that the rate reaches the ultimate trend rate |


Item 7A.
Quantitative and Qualitative Disclosure About Market Risks Market Risk We are exposed to market risks primarily from changes in interest rates and foreign currency exchange rates.
We use certain derivative financial instruments, including interest rate swaps and foreign currency forward exchange contracts, to manage interest rate and foreign currency risk.
We do not use derivatives for trading purposes, to generate income or to engage in speculative activity.
Interest Rate Risk In addition to existing cash balances and cash provided by operating activities, we use fixed rate and variable rate debt to finance our operations.
We are exposed to interest rate risk on these debt obligations and related interest rate swaps.
The Notes (as defined in Note 13 to the Consolidated Financial Statements) represent substantially all of our fixed-rate long-term debt obligations.
The carrying value of the Notes was $1,950.0 million as of December 31, 2012.
The fair value of the Notes was approximately $2,138.2 million as of December 31, 2012.
The potential reduction in fair value of the Notes from a hypothetical 10 percent increase in market interest rates would not be material to the overall fair value of the debt.
Our floating rate long-term debt obligations principally relate to borrowings under the FIS Credit Agreement (as also defined in Note 13 to the Consolidated Financial Statements).
An increase of 100 basis points in the LIBOR rate would increase our annual debt service under the FIS Credit Agreement, after we include the impact of our interest rate swaps, by $9.3 million (based on principal amounts outstanding as of December 31, 2012).
We performed the foregoing sensitivity analysis based on the principal amount of our floating rate debt as of December 31, 2012, less the principal amount of such debt that was then subject to an interest rate swap converting such debt into fixed rate debt.
This sensitivity analysis is based solely on


| EntergyArkansas EntergyGulf StatesLouisiana EntergyLouisiana EntergyMississippi EntergyNew Orleans EntergyTexas SystemEnergy | (In Thousands) | 2011: | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | 2010: | First Quarter | Second Quarter | Third Quarter | Fourth Quarter |


VISA INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued) September 30, 2008 (in millions, except as noted) require the Company to redeem all class C (series II) common stock at any time after December 4, 2008.
Therefore, in March 2008, the Company reclassified all class C (series II) common stock at its then fair value of $1.125 billion to temporary equity on the Companys consolidated balance sheet with a corresponding reduction in additional paid-in-capital of $1.104 billion and accumulated income (deficit) of $21 million.
The Company accreted this stock to its redemption price of $1.146 billion, adjusted for dividends and certain other adjustments, on a straight-line basis, from March 2008 to October 2008 through accumulated income.
See Note 4Visa Europe for a roll-forward of the balance of class C (series II) common stock.
The following table sets forth the number of shares of common stock issued and outstanding by class at September 30, 2008 and the impact of the October 2008 redemptions and subsequent conversion of the remaining outstanding shares of class C (series III and series IV) to class C (series I) shares and the number of shares of common stock issued and outstanding after the October 2008 redemptions in total and on as converted basis:


Legal and Other Contingencies We are involved from time to time in various legal proceedings and claims, including commercial or contractual disputes, product liability claims, government investigations, product warranties and environmental and other matters, that arise in the normal course of business.
We routinely assess the likelihood of any adverse judgments or outcomes related to these matters, as well as ranges of probable losses, by consulting with internal personnel involved with such matters as well as with outside legal counsel handling such matters.
We have accrued for estimated losses in accordance with U. S.  GAAP for those matters where we believe that the likelihood of a loss has occurred, is probable and the amount of the loss is reasonably estimable.
The determination of the amount of such reserves is based on knowledge and experience with regard to past and current matters and consultation with internal personnel involved with such matters and with outside legal counsel handling such matters.
The amount of such reserves may change in the future due to new developments or changes in circumstances.
The inherent uncertainty related to the outcome of these matters can result in amounts materially different from any provisions made with respect to their resolution.


Supplemental Savings Plan—CME maintains a supplemental plan to provide benefits for employees who have been impacted by statutory limits under the provisions of the qualified pension and savings plan.
All CME employees hired prior to January 1, 2007 are immediately vested in their supplemental plan benefits.
All CME employees hired on or after January 1, 2007 are subject to the vesting requirements of the underlying qualified plans.
Total expense for the supplemental plan was $0.9 million, $0.7 million and $1.3 million for 2010, 2009 and 2008, respectively.


| 5/9/2013 12/31/2013 12/31/2014 12/31/2015 12/31/2016 | Q | Peer Group | S&P 500 |


| 2010 2009 2008 | (in millions) | Fixed maturity securities on which an OTTI loss has been recognized | Fixed maturity securities, available for sale—all other | Equity securities, available for sale | Derivatives designated as cash flow hedges-1 | Other investments-2 | Net unrealized gains (losses) on investments | 2010 | Less than twelve months | Fair Value | (in millions) | Fixed maturities-1 | U.S. Treasury securities and obligations of U.S. government authorities and agencies | Obligations of U.S. states and their political subdivisions | Foreign government bonds | Corporate securities | Commercial mortgage-backed securities | Asset-backed securities | Residential mortgage-backed securities | Total |


| Domestic Pension Plan Foreign Pension Plans Domestic Postretirement Benefit Plan | Years ended December 31, | Net periodic cost | Discount rate | Rate of compensation increase | Expected return on plan assets | Interest crediting rates | Benefit obligation | Discount rate | Rate of compensation increase | Interest crediting rates | Health care cost trend rate assumed for next year | Initial rate (weighted-average) | Year ultimate rate is reached | Ultimate rate |


| Number of shares Weighted-averageexercise priceper share Weighted-averagecontractual term Aggregate intrinsicvalue | Outstanding at January 1, 2013 | Granted | Exercised | Canceled | Outstanding at December 31, 2013 | Granted | Exercised | Canceled | Outstanding at December 31, 2014 | Exercisable at December 31, 2014 |


| 2004 2003 2002 | Sales | Operating income/(loss) from discontinued operations | Gain/(loss) on discontinued operations | (Provision for)/benefit from income taxes | Income/(loss) from discontinued operations |


The strategy for GCSBB is to attract, retain and deepen customer relationships.
We execute this strategy through our ability to offer a wide range of products and services through a franchise that stretches coast to coast through 32 states and the District of Columbia.
We also provide credit card products to customers in Canada, Ireland, Spain and the United Kingdom.
In the U. S. , we serve approximately 59 million consumer and small business relationships utilizing our network of 6,139 banking centers, 18,685 domestic branded ATMs, and telephone and Internet channels.
GCSBB is made up of three businesses: Deposits and Student Lending, Card Services and MHEIS.
GCSBB, specifically the Card Services business, is presented on a managed basis.
For a reconciliation of managed GCSBB to held GCSBB, see Note 22  Business Segment Information to the Consolidated Financial Statements.
Net income decreased $5.1 billion, or 55 percent, to $4.2 billion compared to 2007 as growth in noninterest income and net interest income was more than offset by higher provision for credit losses and an increase in noninterest expense.
Net interest income increased $5.1 billion, or 18 percent, to $33.9 billion due to higher margin on ALM activities and the impact of the Countrywide and LaSalle acquisitions.
In addition, average loans and leases, and average deposits increased $56.2 billion and $40.3 billion, or 19 percent and 12 percent.
Noninterest income increased $5.4 billion, or 28 percent, due to increased mortgage banking income and insurance premiums primarily as a result of the Countrywide acquisition, and higher service charges.
In addition, noninterest income benefited from the $388 million gain from the Visa IPO transactions and $283 million gain on the sale of a card portfolio.
Provision for credit losses increased $13.9 billion to $26.8 billion compared to $12.9 billion in 2007, driven by increases of $8.2 billion and $5.3 billion in Card Services and MHEIS.
For further discussion related to Card Services and MHEIS, see their respective discussions beginning on pages 35 and 36.
Noninterest expense increased $4.6 billion, or 23 percent, to $24.9 billion, primarily driven by the Countrywide and LaSalle acquisitions.


| 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 |


| Modifications Current Modifications 30-89 Days Delinquent Modifications 90-179 Days Delinquent Modifications 180+ Days Delinquent Total Recorded Investment in Modifications | December 31, 2012 | One- to four-family | Home equity | Total | December 31, 2011 | One- to four-family | Home equity | Total | Recorded Investment in Modifications before Charge- offs | December 31, 2012 | One- to four-family | Home equity | Total | December 31, 2011 | One- to four-family | Home equity | Total |


| Final Purchase Price Allocation -1 Preliminary Purchase Price Allocation -2 | Current assets -3 | Non-current assets | Property and equipment | Intangible assets -4 | Current liabilities | Other non-current liabilities -5 | Fair value of net assets acquired | Goodwill -6 |


| For the year ended December 31, 2004 (In thousands) | Cash provided by operating activities | Cash used in investing activities | Cash used by financing activities | Decrease in cash and cash equivalents | Cash and cash equivalents, beginning of period | Cash and cash equivalents, end of period |


For further discussion of the companys steam operating revenues and its steam results, see Results of Operations in Item 7.
For additional segment information, see Note N to the financial statements in Item 8.
Steam Peak Demand and Capacity Demand for steam in CECONYs service area peaks during the winter heating season.
The one-hour peak demand during the winter of 2009/2010 (through January 31, 2010) occurred on January 4, 2010 when the demand reached 8.0 MMlbs per hour.
The companys estimate for the winter of 2010/2011 peak demand of its steam customers is 9.6 MMlbs per hour under design criteria, which assumes severe weather.
On December 31, 2009, the steam system had the capability of delivering approximately 13.2 MMlbs of steam per hour and CECONY estimates that the system will have the capability to deliver this capacity in the 2010/2011 winter.
Steam Supply Fifty-two percent of the steam produced by CECONY in 2009 was supplied by the companys steam-only generating assets; 31 percent was produced by the companys steam-electric generating assets, where steam and electricity are primarily cogenerated; and 17 percent was purchased under an agreement with Brooklyn Navy Yard Cogeneration Partners L. P.  O&R Electric Operations Electric Facilities O&Rs capitalized costs for utility plant, net of accumulated depreciation, for distribution facilities were $618 million and $588 million at December 31, 2009 and 2008, respectively.
For its transmission facilities, the costs for utility plant, net of accumulated depreciation, were $137 million and $136 million at December 31, 2009 and 2008, respectively.
the Company had federal net operating loss carry-forwards of $93 million, which expire in 2014 through 2030, state net operating loss carry-forwards of $336 million, which expire in 2013 through 2032, and foreign net operating loss carry-forwards of $55 million, $13 million of which expire in 2016 through 2032 and the remainder of which do not expire.7.
Employee Stock and Savings Plans Stock Plans The Company recognizes the fair value of share-based compensation granted to employees in cost of processing and services, cost of product and selling, general and administrative expense in its consolidated statements of income.
The Companys share-based compensation primarily consists of the following: Stock Options  The Company generally grants stock options to employees and non-employee directors at exercise prices equal to the fair market value of the Companys stock on the dates of grant, which are typically in the first quarter of the year.
Stock options generally vest over a three year period beginning on the first anniversary of the grant.
All stock options expire ten years from the date of the award.
The Company recognizes compensation expense for the fair value of the stock options over the requisite service period of the stock option award.
Restricted Stock Units  The Company awards restricted stock units to employees and non-employee directors.
The Company recognizes compensation expense for restricted stock units based on the market price of the common stock on the date of award over the period during which the awards vest.
Employee Stock Purchase Plan  The Company maintains an employee stock purchase plan that allows eligible employees to purchase a limited number of shares of common stock each quarter through payroll deductions at 85% of the closing price of the Companys common stock on the last business day of each calendar quarter.
The Company recognizes compensation expense related to the 15% discount on the purchase date.
Share-based compensation expense was $44 million in 2012 and $39 million in each of 2011 and 2010.
The income tax benefits related to share-based compensation totaled $15 million, $14 million and $13 million in 2012, 2011 and 2010, respectively.
At December 31, 2012, the total remaining unrecognized compensation cost for unvested stock options and restricted stock units, net of estimated forfeitures, of $53 million is expected to be recognized over a weighted-average period of 2.3 years.
The weighted-average estimated fair value of stock options granted during 2012, 2011 and 2010 was $21.71, $22.68 and $17.46 per share, respectively.
The fair values of stock options granted were estimated on the date of grant using a binomial option-pricing model with the following assumptions:


| Period Total Number ofSharesPurchased[a] AveragePrice PaidPerShare Total Number of SharesPurchased as Part of aPublicly AnnouncedPlan or Program [b] Maximum Number ofShares That May YetBe Purchased Under the Planor Program [b] | Oct. 1 through Oct. 31 | Nov. 1 through Nov. 30 | Dec. 1 through Dec. 31 | Total |


| Year ended December 31, 2005 | (In millions, except per share amounts) | Net income as reported | Add: Stock option compensation expense included in reported net income, net of related taxes | Deduct: Total stock option compensation expense determined under fair value method for all awards, net of related taxes | Pro forma net income | Earnings per share: | Basic—as reported | Basic—pro forma | Diluted—as reported | Diluted—pro forma |


| December 31, | (in millions) | Balance sheet data: | Cash and cash equivalents | Goodwill and intangible assets, net | Total assets-1 | Less: | Separate account assets-2 | Collateral held under securities lending agreements-2 | Consolidated investment vehicles-3 | Adjusted total assets | Borrowings | Total BlackRock, Inc. stockholders’ equity | Assets under management: | Equity: | Active | iSharesETFs | Non-ETF index | Equity subtotal | Fixed income: | Active | iSharesETFs | Non-ETF index | Fixed income subtotal | Multi-asset | Alternatives: | Core | Currency and commodities-4 | Alternatives subtotal | Long-term | Cash management | Advisory-5 | Total |


| Statement of Income October 29, 2011 October 30, 2010 | Classification | Other income |


| 12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018 | HUM | S&P 500 | Peer Group |


Cash used for investing activities was $567.9 million for 2005.
Net cash outflow was primarily driven by a net increase in loans of $549.4 million and purchases of premises and equipment of $18.3 million.
In addition, purchases of investment securities of $534.3 million, offset by $27.3 million in proceeds from the sale of investment securities and $495.4 million in proceeds from maturities and pay-downs of investment securities also contributed to the net cash outflow.
Cash provided by financing activities was $289.2 million for 2005, largely driven by net increases in other borrowings of $269.7 million and capital contributions from minority interest participants net of distributions of $45.4 million.
Deposits and proceeds from the issuance of common stock due to exercises of employee stock options also contributed $33.2 million and $18.6 million, respectively.
These sources of cash were offset by repurchases of our common stock of $77.7 million during 2005.
Cash and cash equivalents were $462.1 million at December 31, 2005.2004 Cash provided by operating activities for 2004 was $94.3 million, which included net income of $63.9 million.
Significant adjustments for noncash items included $9.9 million in tax benefits related to stock compensation, depreciation and amortization of $8.8 million, and deferred income tax expense of $5.6 million, offset by a net recovery of loan losses of $10.3 million, amortization of deferred warrant related loan fees of $5.7 million and net investment gains of $5.2 million.
Sources of cash from changes in other assets and liabilities included increases in accrued retention, incentive plans and other compensation benefits payable of $17.3 million and a decrease in income tax receivable of $4.6 million.
These sources of cash were offset by a $7.3 million increase in accounts receivable and an increase in accrued interest receivable of $3.4 million.
Cash used for investing activities was $876.3 million for 2004.
Net cash outflow was primarily driven by purchases of investment securities of $1.4 billion, partially offset by $162.0 million in proceeds from the sale of investment securities and $729.2 million in proceeds from maturities and pay-downs of investment securities.
A net increase in loans of $341.7 million also contributed to the net cash outflow.
Cash provided by financing activities was $573.9 million for 2004, largely driven by net increases in deposits of $552.7 million.
Proceeds from the issuance of common stock due to exercises of employee stock options and capital contributions from minority interest participants net of distributions also contributed $25.1 million and $16.9 million, respectively.
These sources of cash were offset by repurchases of our common stock of $12.6 million during 2004 and a decrease in other borrowings of $8.1 million.
Cash and cash equivalents were $627.2 million at December 31, 2004.
Financial Ratios


We recorded an income tax provision of $39.2 million for fiscal 2017, compared to $27.7 million for fiscal 2016.
The increase in income tax provision for fiscal 2017 was due primarily to higher income in fiscal 2017 due to higher Impella product revenue.
Net Income For fiscal 2017, we recognized net income of $52.1 million, or $1.21 per basic share and $1.17 per diluted share, compared to $38.1 million, or $0.90 per basic share and $0.85 per diluted share for fiscal 2016.
Our net income for fiscal 2017 was driven primarily to higher Impella product revenue due to greater utilization of our Impella devices in the U. S.  and Europe.
As described within Note 2.
“Summary of Significant Accounting Policies” to our consolidated financial statements in this Report, we will adopt ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, in the first quarter of fiscal 2018.
We believe that the adoption of ASU 2016-09 will have a significant impact on our consolidated financial statements, most notably, the requirement to recognize certain tax benefits or shortfalls upon restricted stock unit vestings or stock option exercises in the income tax provision in our consolidated statement of operations.
The adoption of ASU 2016-09 is likely to introduce fluctuations to net income, our income tax provision and earnings per share in fiscal 2018.


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


| Years ended December 31, | 2012 | Cash paid for interest | Cash paid for income taxes, net of refunds1 |


| Dollars in Millions 2007 2006 2005 | Revenues | Gross profit | Net income | Current assets | Current liabilities |


| GEOGRAPHIC AREAS 2012 2011 2010 | Net sales and revenues | Unaffiliated customers: | U.S. and Canada: | Equipment operations net sales -87%* | Financial services revenues -79%* | Total | Outside U.S. and Canada: | Equipment operations net sales | Financial services revenues | Total | Other revenues | Total |


Managements Discussion and Analysis Investing & Lending Investing & Lending includes our investing activities and the origination of loans to provide financing to clients.
These investments and loans are typically longer-term in nature.
We make investments, some of which are consolidated, directly and indirectly through funds that we manage, in debt securities and loans, public and private equity securities, and real estate entities.
The table below presents the operating results of our Investing & Lending segment.


1 Segment operating income and operating margin exclude approximately $5 of restructuring and other reorganization-related charges.
See “Restructuring and Other Reorganization-Related Charges (Reversals), net” in Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 9 to the Consolidated Financial Statements for further information.
Operating income increased during 2013 when compared to 2012 due to an increase in revenue of $99.0, partially offset by increases in salaries and related expenses of $38.8 and office and general expenses of $36.8.
The increase in salaries and related expenses was primarily attributable to increases in our workforce across most disciplines, primarily at our public relations business to support business growth.
Office and general expenses increased primarily due to higher production expenses related to pass-through costs for certain projects where we acted as principal that increased in size or were new during 2013.
Operating income increased during 2012 when compared to 2011 due to an increase in revenue of $104.9, partially offset by increases in salaries and related expenses of $51.2 and office and general expenses of $40.9.
The increase in salaries and related expenses was primarily attributable to increases in our workforce across all disciplines to support business growth, which resulted in an increase in base salaries and benefits.
Office and general expenses increased primarily due to higher production expenses related to pass-through costs for certain projects where we acted as principal that increased in size or were new during 2012.


| December 31, 2008 | Derivative Assets | (In millions) | Quoted prices in active markets for identical assets and liabilities (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total estimated fair value |


(5) Excludes $218 million of liabilities for uncertain tax positions due to our inability to reasonably estimate the period(s) when potential cash settlements will be made.


| March 31, | 2011 | (in $000’s) | Cost of product revenue | Research and development | Selling, general and administrative | $5,421 |


| (Dollars in millions) 2009 | Balance, January 1, 2009 | Credit component of other-than-temporary impairment not reclassified to OCI in connection with the cumulative-effect transitionadjustment-1 | Additions for the credit component on debt securities on which other-than temporary impairment wasnot previously recognized-2 | Balance, December 31, 2009 |


| Variance | (Dollar amounts in millions) | Non-operating income (expense), GAAP basis | Less: Net income (loss) attributable to NCI(1) | Non-operating income (expense)(2) | Compensation expense related to (appreciation) depreciation on deferred compensation plans | Non-operating income (expense), as adjusted(2) |


* These financial instruments are not measured at fair value on a recurring basis.
See the indicated footnotes for additional information about the carrying and fair values of these financial instruments.
Foreign time deposits are measured at cost plus accrued interest, which approximates fair value, and are accordingly classified as Level 2 securities.
A three-level valuation hierarchy exists for disclosure of fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.
The three levels are defined as follows: ?
Level 1 - inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.  ?
Level 2 - inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.  ?
Level 3 - inputs to the valuation methodology are unobservable and significant to the fair value measurement.
An asset or liability's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.
There are three types of valuation approaches: a market approach, which uses observable prices and other relevant information that t is generated by market transactions involving identical or comparable assets or liabilities; an income approach, which uses valuation techniques to convert future amounts to a single, discounted present value amount; and a cost approach, which is based on the amount that currently would be required to replace the service capacity of an asset.
The following is a description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy.
Cash equivalents Cash investments in affiliated money market funds are valued underr the market approach through the use of quoted market prices in an active market, which is the net asset value of the underlying funds, and are classified within level 1 of the valuation hierarchy.
Available--for-sale investments Seed money is valued under the market approach through the use of quoted market prices available in an active market and is classified within level 1 of the valuation hierarchy; there is no modeling or additional information needed to arrive at the fair values of these investments.
At December 31, 2017 and December 31, 2016, investments in CLOs were valued using pricing information obtained by an independent third-party pricing source.
Other debt securities are valued using a cost valuation technique due to the lack of available cash flow and market data and are accordingly also classified within level 3 of the valuation hierarchy.


(1) As a result of the Class B Repurchase, for the year ended December 31, 2016, the Closed Block, along with certain related assets and liabilities, comprises the Closed Block division, which is accounted for as a divested business that is reported separately from the divested businesses that are included in Corporate and Other operations.


| December 31 | 2007 | (Dollars in millions) | Allowance for loan and lease losses | Residential mortgage | Credit card – domestic | Credit card – foreign | Home equity | Direct/Indirect consumer | Other consumer | Total consumer | Commercial – domestic-1 | Commercial real estate | Commercial lease financing | Commercial – foreign | Total commercial-2 | Allowance for loan and lease losses | Reserve for unfunded lending commitments | Allowance for credit losses |


| The Company $6,621,539 14.67% $4,514,553 10.00% | Zions First National Bank | California Bank & Trust | Amegy Bank | Tier 1 capital (to risk-weighted assets) | The Company | Zions First National Bank | California Bank & Trust | Amegy Bank | Tier 1 capital (to average assets) | The Company | Zions First National Bank | California Bank & Trust | Amegy Bank |


| Years Ended December 31, Increase (Decrease) | 2015 | Loss ratio | Catastrophe losses and reinstatement premiums | Prior year development net of premium adjustments | Accident year loss ratio, as adjusted | Acquisition ratio | General operating expense ratio | Expense ratio | Combined ratio | Catastrophe losses and reinstatement premiums | Prior year development net of premium adjustments | Accident year combined ratio, as adjusted | Direct Investment book | Global Capital Markets | Run-off insurance Lines | Consolidation and eliminations | Total Corporate and Other pre-tax operating loss |


| Outstandings  December 31 Purchased Impaired Portfolio Net Charge-offs-1Year Ended December 31 | (Dollars in millions) | California | Florida | Virginia | Arizona | Colorado | Other U.S./Foreign | Total Countrywide purchased impaired home equity portfolio | Outstandings-1December 31 | (Dollars in millions) | California | Florida | Arizona | Washington | Virginia | Other U.S./Foreign | Total Countrywide purchased impaired discontinued real estate loan portfolio |


The Company amortizes its intangible assets over periods ranging from three to fifteen years.
Amortization of intangible assets for the years ended December 31, 2005 and 2004 aggregated approximately $136.0 million and $97.8 million, respectively (excluding amortization of deferred financing costs, which is included in interest expense).
The Company expects to record amortization expense of approximately $183.6 million, $178.3 million, $174.4 million, $172.7 million and $170.3 million, for the years ended December 31, 2006, 2007, 2008, 2009 and 2010, respectively.
These amounts are subject to changes in estimates until the preliminary allocation of the SpectraSite purchase price is finalized.6.


BROKERAGE RECEIVABLES AND BROKERAGE PAYABLES Citi has receivables and payables for financial instruments sold to and purchased from brokers, dealers and customers, which arise in the ordinary course of business.
Citi is exposed to risk of loss from the inability of brokers, dealers or customers to pay for purchases or to deliver the financial instruments sold, in which case Citi would have to sell or purchase the financial instruments at prevailing market prices.
Credit risk is reduced to the extent that an exchange or clearing organization acts as a counterparty to the transaction and replaces the broker, dealer or customer in question.
Citi seeks to protect itself from the risks associated with customer activities by requiring customers to maintain margin collateral in compliance with regulatory and internal guidelines.
Margin levels are monitored daily, and customers deposit additional collateral as required.
Where customers cannot meet collateral requirements, Citi may liquidate sufficient underlying financial instruments to bring the customer into compliance with the required margin level.
Exposure to credit risk is impacted by market volatility, which may impair the ability of clients to satisfy their obligations to Citi.
Credit limits are established and closely monitored for customers and for brokers and dealers engaged in forwards, futures and other transactions deemed to be credit sensitive.


| 2014 2013 2012 | Year ended December 31,(in millions, except rates)(a) | Principal securitized | All cash flows during the period: | Proceeds from new securitizations(b) | Servicing fees collected | Purchases of previously transferred financial assets (or the underlying collateral)(c) | Cash flows received on interests |


In December 2011, one of Arconics former subsidiaries in Brazil applied for a tax holiday related to its expanded mining and refining operations.
During 2013, the application was amended and re-filed and, separately, a similar application was filed for another one of Arconics former subsidiaries in Brazil.
The deadline for the Brazilian government to deny the application was July 11, 2014.
Since Arconic did not receive notice that its applications were denied, the tax holiday took effect automatically on July 12, 2014.
As a result, the tax rate applicable to qualified holiday income for these subsidiaries decreased significantly (from 34% to 15.25%), resulting in future cash tax savings over the 10-year holiday period (retroactively effective as of January 1, 2013).
Additionally, a portion of one of the subsidiaries net deferred tax assets that reverses within the holiday period was remeasured at the new tax rate (the net deferred tax asset of the other subsidiary was not remeasured since it could still be utilized against the subsidiarys future earnings not subject to the tax holiday).
This remeasurement resulted in a decrease to that subsidiarys net deferred tax assets and a noncash charge to earnings of $52 ($31 after noncontrolling interests).
The following table details the changes in the valuation allowance:


| (In millions) 2007 2006 2005 2004 2003 | Net earnings | Interest expense (multiplied by 65%)1 | Return | Average debt2, 5 | Average equity3, 5 | Average benefit plan adjustments3, 4, 5 | Average invested capital | Return on invested capital | At December 31, | 2005 | (in millions) | Fixed maturities, available for sale | Fixed maturities, held to maturity | Commercial loans | Other long-term investments | Short-term investments | Cash and cash equivalents | Accrued investment income | Other assets | Total assets of consolidated VIEs | Total liabilities of consolidated VIEs |


| December 31, | (in millions) | Undrawn commitments to extend credit | Financial standby letters of credit | Performance letters of credit | Commercial letters of credit | Marketing rights | Risk participation agreements | Residential mortgage loans sold with recourse | Total |


| Long-term debt maturities 2004 2005 2006 2007 2008-2009 after 2009 | (In Millions) | As of December 31, 2003 | U.S. Utility | Non-Utility Nuclear | Energy Commodity Services | Parent and Other | Total | As of December 31, 2004 | U.S. Utility | Non-Utility Nuclear | Energy Commodity Services | Parent and Other | Total |


| Gold Ounces Sold Costs Applicable to Sales-1 Depreciation, Depletion and Amortization | 2007 | (in thousands) | Year ended December 31, |


Dow Jones Revenues were $1,570 million for the fiscal year ended June 30, 2016, an increase of $4 million, as compared to fiscal 2015 revenues of $1,566 million.
Circulation and subscription revenues increased by $33 million, due to higher revenues at The Wall Street Journal of $20 million primarily related to price increases and digital volume growth and the $19 million positive impact of the 53rd week, partially offset by the $10 million negative impact of foreign currency fluctuations.
Professional information business revenues were flat compared to fiscal 2015.
Advertising revenues decreased $27 million primarily resulting from lower print advertising of $36 million, partially offset by higher digital advertising revenues.
The impact of the 53rd week resulted in a revenue increase of $7 million.


| Facility Name Location North Dakota Kansas Commodity Handled Crude Oil Refined Petroleum Products Interest 70% 100 Gross Storage Capacity (MBbl) 235 978 Gross Rack Capacity (MBD) N/A N/A | Pasadena † | Pecan Grove † | Ponca City † | Ponca City Crude † | Portland | Renton | Richmond | River Parish † | Rock Springs | Sacramento | San Bernard | Santa Margarita | Sheridan † | Spokane | Tacoma | Torrance | Tremley Point † | Westlake | Wichita Falls † | Wichita North † | Wichita South † |


| November 30, | 2010 | Carrying Amount | (In thousands) | ASSETS | Rialto Investments: | Loans receivable | Investments—held-to-maturity | Lennar Financial Services: | Loans held-for-investment, net | Investments—held-to-maturity | LIABILITIES | Lennar Homebuilding: | Senior notes and other debts payable | Rialto Investments: | Notes payable | Lennar Financial Services: | Notes and other debts payable |


| 2015 2014 2013 | Earnings from operations | Adjustments: | General and administrative | Management and other fees from affiliates | Depreciation and amortization | Merger and integration expenses | Acquisition and investment related costs | Net operating income | Less: Non Same-Property NOI | Same-Property NOI |


| December 31, | (dollars in millions) | Commercial | Commercial real estate | Leases | Total commercial | Residential mortgages | Home equity loans | Home equity lines of credit | Home equity loans serviced by others | Home equity lines of credit serviced by others | Student | Total retail | Total non-core loans | Other assets | Total non-core assets |


| December 31, 2008 | Proved Developed Reserves | United States | Crude oil, condensate and NGLs (MMBbls) | Natural gas (Bcf) | Total US (MMBoe)(1) | International | Crude oil, condensate and NGLs (MMBbls) | Natural gas (Bcf) | Total International (MMBoe)(1) | Worldwide | Crude oil, condensate and NGLs (MMBbls) | Natural gas (Bcf) | Total Worldwide (MMBoe)(1) (2) |


| 2017 2016 | (DOLLARS IN THOUSANDS) | Cash and cash equivalents-1 | Credit facilities and bank overdrafts-2 | Long-term debt:-3 | Senior notes - 2007 | Senior notes - 2013 | Euro Senior notes - 2016 | Senior notes - 2017 |


Other subsidiaries.
The ability of our investment management subsidiaries and the majority of our other operating subsidiaries to pay dividends is largely unrestricted from a regulatory standpoint.
Liquidity of Insurance Subsidiaries We manage the liquidity of our insurance operations to ensure stable, reliable and cost-effective sources of cash flows to meet all of our obligations.
Liquidity within each of our insurance subsidiaries is provided by a variety of sources, including portfolios of liquid assets.
The investment portfolios of our subsidiaries are integral to the overall liquidity of our insurance operations.
We segment our investment portfolios and employ an asset/liability management approach specific to the requirements of each of our product lines.
This enhances the discipline applied in managing the liquidity, as well as the interest rate and credit risk profiles, of each portfolio in a manner consistent with the unique characteristics of the product liabilities.
Liquidity is measured against internally-developed benchmarks that take into account the characteristics of both the asset portfolio and the liabilities that they support.
We consider attributes of the various categories of liquid assets (for example, type of asset and credit quality) in calculating internal liquidity measures to evaluate our insurance operations’ liquidity under various stress scenarios, including company-specific and market-wide events.
We continue to believe that cash generated by ongoing operations and the liquidity profile of our assets provide sufficient liquidity under reasonably foreseeable stress scenarios for each of our insurance subsidiaries.
Cash Flow The principal sources of liquidity for our insurance subsidiaries are premiums, investment and fee income, and investment maturities and sales associated with our insurance and annuity operations, as well as internal and external borrowings.
The principal uses of that liquidity include benefits, claims and dividends paid to policyholders, and payments to policyholders and contractholders in connection with surrenders, withdrawals and net policy loan activity.
Other uses of liquidity may include commissions, general and administrative expenses, purchases of investments, the payment of dividends to the parent holding company, hedging and reinsurance activity and payments in connection with financing activities.
In each of our major insurance subsidiaries, we believe that the cash flows from operations are adequate to satisfy current liquidity requirements.
The continued adequacy of this liquidity will depend upon factors such as future securities market conditions, changes in interest rate levels, policyholder perceptions of our financial strength, policyholder behavior, catastrophic events and the relative safety and attractiveness of competing products, each of which could lead to reduced cash inflows or increased cash outflows.
Our insurance operations’ cash flows from investment activities result from repayments of principal, proceeds from maturities and sales of invested assets and investment income, net of amounts reinvested.
The primary liquidity risks with respect to these cash flows are the risk of default by debtors or bond insurers, our counterparties’ willingness to extend repurchase and/or securities lending arrangements, commitments to invest and market volatility.
We closely manage these risks through our credit risk management process and regular monitoring of our liquidity position.


Divestiture of the Information Systems & Global Solutions Business OnAugust 16, 2016, we divested our former IS&GS business, which merged with Leidos, in a ReverseMorrisTrrust transaction (the Transaction).
The Transaction was completed in a multi-step process pursuant to which we initially contributed the IS&GS business to Abacus Innovations Corporation (Abacus), a wholly owned subsidiary of Lockheed Martin created to facilitate the Transaction, and the common stock of Abacus was distributed to participating Lockheed Martin stockholders through an exchange offer.
Under the terms of the exchange offer, Lockheed Martin stockholders had the option to exchange shares of Lockheed Martin common stock for shares of Abacus common stock.
At the conclusion of the exchange offer, all shares of Abacus common stock were exchanged for 9,369,694 shares of Lockheed Martin common stock held by Lockheed Martin stockholders that elected to participate in the exchange.
The shares of Lockheed Martin common stock that were exchanged and accepted were retired, reducing the number of shares of our common stock outstanding by approximately 3%.
Following the exchange offer, Abacus merged with


| 2014 2013 2012 | Rent expense | Less: sublease income | Net rent expense |