| 2013 Change2013 over 2012 2012 Change2012 over 2011 2011 | (In millions, except percentages) | Taiwan | China | Korea | Japan | Southeast Asia | Asia Pacific | United States | Europe | Total |


The Companys federal tax returns for 2016 and 2017, and tax returns in certain states and foreign jurisdictions for 2008 through 2017 remain subject to examination by taxing authorities.
At December 31, 2017, the Company had federal net operating loss carry-forwards of $36 million, which expire in 2018 through 2037, state net operating loss carry-forwards of $579 million, which expire in 2018 through 2037, and foreign net operating loss carry-forwards of $486 million, $47 million of which expire in 2021 through 2037, 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 awards 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 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.
Restricted stock units generally vest over a threeyear period beginning on the second anniversary of the award.
Performance Share Units  The Company awards performance share units to employees.
The number of shares issued at the end of the performance period is determined by the level of achievement of pre-determined earnings and revenue growth performance goals.
The Company recognizes the expense, which is determined by utilizing a probability assessment that the performance goals will be achieved, ratably over the requisite performance period of the award.
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 $63 million in 2017, $68 million in 2016 and $65 million in 2015.
Share-based compensation in 2017 and 2016 includes expense recognized on performance share units as management views the performance goals as probable of attainment.
The income tax benefits related to share-based compensation totaled $21 million, $23 million and $22 million in 2017, 2016 and 2015, respectively.
At December 31, 2017, the total remaining unrecognized compensation cost for unvested stock options, restricted stock units and performance share units, net of estimated forfeitures, of $64 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 2017, 2016 and 2015 was $37.53, $31.47 and $25.51 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:


(1) In 2008, volumes include the effect of crude oil sales in excess of volumes produced of 1 MBopd in West Africa.
During 2007, crude oil sales volumes equaled volumes produced.
In 2006, volumes include the effect of crude oil sales in excess of volumes produced of 1 MBopd in West Africa and crude oil sales less than volumes produced of 1 MBopd in other international.
(2) Average crude oil sales prices for the US reflect reductions of $22.06 per Bbl (2008), $13.68 per Bbl (2007), and $11.41 per Bbl (2006) from hedging activities.
Average crude oil sales prices for West Africa reflect reductions of $7.59 per Bbl (2008) and $2.19 per Bbl (2007) from hedging activities.
We did not hedge West Africa crude oil sales in 2006.
Average natural gas sales prices in the US reflect an increase of $0.23 per Mcf (2008), an increase of $1.12 per Mcf (2007), and a reduction of $0.25 per Mcf (2006) from hedging activities.
(3) Average production costs include oil and gas operating costs, workover and repair expense, production and ad valorem taxes, and transportation expense.
(4) Natural gas from the Alba field in Equatorial Guinea is under contract for $0.25 per MMBtu to a methanol plant, an LPG plant and an LNG plant.
Sales to these plants are based on a BTU equivalent and then converted to a dry gas equivalent volume.
The methanol and LPG plants are owned by affiliated entities accounted for under the equity method of accounting.
The volumes produced by the LPG plant are included in the crude oil information.
The price on an Mcf basis has been adjusted to reflect the Btu content of gas sales.


| 12/9/2013 12/31/2013 12/31/2014 | American Airlines Group Inc. | Amex Airline Index | S&P 500 |


| (in millions) 2017 2016 2015 | Accrued liability for tobacco and health litigation items at beginning of year | Pre-tax charges for: | Tobacco and health judgments | Related interest costs | Agreement to resolve federalEngleprogeny cases | Agreement to resolveAspinallincluding relatedinterest costs | Agreement to resolveMiner | Payments | Accrued liability for tobacco and health litigation items atend of year |


| In millions AggregateAssets Aggregate Liabilities PNC Risk of Loss | December 31, 2008 | Market Street | Collateralized debt obligations | Partnership interests in tax credit investments (b) (c) (d) | Total (c) | December 31, 2007 | Market Street | Collateralized debt obligations | Partnership interests in low income housing projects | Total |


| U.S. Dollars Australian Dollars British Pound Sterling | Fiscal year ended June 30, 2019 | Revenues | Operating and Selling, general and administrative expenses | Fiscal year ended June 30, 2018 | Revenues | Operating and Selling, general and administrative expenses |


| 2018 2017 2016 | Net cash provided by (used in) | Operating Activities | Investing Activities | Financing Activities |


| Name Power Plant Type Base/Peak/Intermediate Base Base Power Pool/Location ISO-NE/New Hampshire ECAR/Michigan Aggregate Capacity (in MW) 525 29(b) | Newington(a) | ADA | Total Base Capacity | GENOR | CEEMI | Lakewood | Total Intermediate Capacity | CEEMI | Ocean Peaking | Rock Springs | Total Peaking Capacity | Total Capacity |


| December 31, 2006 December 31, 2005 | Financial Services Businesses | Gross Carrying Value | ($ in millions) | Commercial loans by region: | U.S. Regions: | Pacific | South Atlantic | Middle Atlantic | East North Central | West South Central | Mountain | West North Central | New England | East South Central | Subtotal—U.S. | Asia | Other | Total Commercial Loans | December 31, 2006 | Financial Services Businesses | Gross Carrying Value | ($ in millions) | Commercial loans by property type: | Industrial buildings | Office buildings | Apartment complexes | Other | Retail stores | Agricultural properties | Residential properties | Subtotal of collateralized loans | Uncollateralized loans | Total Commercial Loans |


| Year Ended December 31, 2013 2012 2011 | Issuances of debt | Payments of debt | Issuances of stock | Purchases of stock for treasury | Dividends | Other financing activities | Net cash provided by (used in) financing activities |


| 2004 2003 2002 | Net sales | Cost of sales | Gross margin | Gross margin percentage |


| Year Ended December 31 | ($ in millions, except per share amounts) | Sales and service revenues | Goodwill impairment | Operating income (loss) | Net earnings (loss) | Total assets | Long-term debt-1 | Total long-term obligations | Net cash provided by (used in) operating activities | Free cash flow-2 | Dividends declared per share | Basic earnings (loss) per share | Diluted earnings (loss) per share |


| Year Ended December 31, Percentage Change | 2010 | (in millions) | Compensation and benefits | Marketing and advertising | Depreciation and amortization | Professional and contract services | Computer operations and data communications | Occupancy | Regulatory | Merger and strategic initiatives | General, administrative and other | Total operating expenses |


| Year Weighted-AverageSupply ofBerthsMarketedGlobally-1 Royal Caribbean Cruises Ltd. Total Berths GlobalCruiseGuests-1 North AmericanCruiseGuests-2 EuropeanCruiseGuests -3 | 2009 | 2010 | 2011 | 2012 | 2013 |


HPL Technologies, Inc.  (HPL) The Company acquired HPL on December 7, 2005 in an all-cash transaction.
Reasons for the Acquisition.
The Company believes that the acquisition of HPL will help solidify the Company’s position as a leading electronic design automation vendor in design for manufacturing (DFM)


| Years Ended November 30, | (In thousands) | East: | Sales of homes | Cost of homes sold | Gross margins on home sales | Central: | Sales of homes | Cost of homes sold | Gross margins on home sales | West: | Sales of homes | Cost of homes sold | Gross margins on home sales | Southeast Florida: | Sales of homes | Cost of homes sold | Gross margins on home sales | Houston: | Sales of homes | Cost of homes sold | Gross margins on home sales | Other | Sales of homes | Cost of homes sold | Gross margins on home sales | Total gross margins on home sales |


| (Dollars in millions) 2012 2011 2010 2009 2008 | Loan and allowance ratios: | Loans and leases outstanding at December 31-6 | Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31-6 | Consumer allowance for loan and lease losses as a percentage of total consumer loans outstanding at December 31-7 | Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at December 31-8 | Average loans and leases outstanding-6 | Net charge-offs as a percentage of average loans and leases outstanding-6, 9 | Net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding-6, 10 | Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31-6, 11 | Ratio of the allowance for loan and lease losses at December 31 to net charge-offs-9 | Ratio of the allowance for loan and lease losses at December 31 to net charge-offs and PCI write-offs-10 | Amounts included in the allowance for loan and lease losses that are excluded from nonperforming loans and leases at December 31-12 | Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding amounts included in the allowance for loan and lease losses that are excluded from nonperforming loans and leases at December 31-12 | Loan and allowance ratios excluding PCI loans and the related valuation allowance:-13 | Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31-6 | Consumer allowance for loan and lease losses as a percentage of total consumer loans outstanding at December 31-7 | Net charge-offs as a percentage of average loans and leases outstanding-6 | Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31-6, 11 | Ratio of the allowance for loan and lease losses at December 31 to net charge-offs |


Note N – Stock-Based Compensation The Companies provide stock-based compensation in the form of stock options, restricted stock units and contributions to a stock purchase plan.
Stock Options The Stock Option Plan (the 1996 Plan) provided for awards of stock options to officers and employees for up to 10 million shares of the common stock.
The Long Term Incentive Plan (LTIP) among other things, provides for awards of restricted stock units to officers, stock options to employees and deferred stock units to Con Edison’s non-officer directors for up to 10 million shares of common stock (of which not more than four million shares may be restricted stock or stock units).
Stock options generally vest over a three-year period and have a term of ten years.
Options are granted at an exercise price equal to the fair market value of a common share when the option was


| Actual Estimate | (Millions of Dollars) | CECONY (a)(b) | Electric | Gas | Steam | Sub-total | O&R | Electric | Gas | Sub-total | Con Edison Transmission | CET Electric | CET Gas | Sub-total | Clean Energy Businesses | Total capital expenditures | Retirement of long-term securities | Con Edison – parent company | CECONY | O&R | Clean Energy Businesses | Total retirement of long-term securities | Total capital requirements |


| 2013 2012 2011 | Balance at beginning of year | Liabilities assumed in the acquisitions of PXP and MMRa | Liabilities incurred | Settlements and revisions to cash flow estimates, net | Accretion expense | Spending | Other | Balance at end of year | Less: current portion | Long-term portion |


REGENERON PHARMACEUTICALS, INC.  NOTES TO FINANCIAL STATEMENTS (Continued) For the years ended December 31, 2009, 2008, and 2007 (Unless otherwise noted, dollars in thousands, except per share data) At December 31, 2009 and 2008, marketable securities included an additional unrealized gain of $1.4 million and an additional unrealized loss of $0.4 million, respectively, related to one equity security in the Companys marketable securities portfolio.
The following table shows the fair value of the Companys marketable securities that have unrealized losses and that are deemed to be only temporarily impaired, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at December 31, 2009 and 2008.
The debt securities listed at December 31, 2009 mature at various dates through December 2011.


| As of December 31, | 2012 | (In thousands) | Balance Sheet Data:-8 | Cash and cash equivalents (including restricted cash)(9) | Property and equipment, net | Total assets | Long-term obligations, including current portion | Total American Tower Corporation equity |


| Gold or Copper Produced Costs Applicable to Sales-1 Depreciation and Amortization All-In Sustaining Costs-2 | 2018 | GOLD | Boddington | Tanami | Kalgoorlie | Total / Weighted Average-3 | COPPER | Boddington | COPPER | Boddington |


| Criticized Commercial Loans | In millions | December 31, 2011 | Commercial | Commercial real estate | Equipment lease financing | Purchased impaired loans | Total commercial lending (f) | December 31, 2010 | Commercial | Commercial real estate | Equipment lease financing | Purchased impaired loans | Total commercial lending (f) |


The following table summarizes information regarding stock options outstanding as of December 31, 2005:


During 2008, the Company moved certain of its operations in New York from Long Island City to New York City.
As a result of this movement of operations and current market conditions, which precluded the Companys immediate and complete sublet of all unused space in both Long Island City and New York City, the Company incurred a lease impairment charge of $38 million which is included within other expenses in Banking, Corporate & Other.
The impairment charge was determined based upon the present value of the gross rental payments less sublease income discounted at a risk-adjusted rate over the remaining lease terms which range from 15-20 years.
The Company has made assumptions with respect to the timing and amount of future sublease income in the determination of this impairment charge.
During 2009, pending sublease deals were impacted by the further decline of market conditions, which resulted in an additional lease impairment charge of $52 million.
See Note 19 for discussion of $28 million of such charges related to restructuring.
Additional impairment charges could be incurred should market conditions deteriorate further or last for a period significantly longer than anticipated.
Commitments to Fund Partnership Investments The Company makes commitments to fund partnership investments in the normal course of business.
The amounts of these unfunded commitments were $4.1 billion and $4.5 billion at December 31, 2009 and 2008, respectively.
The Company anticipates that these amounts will be invested in partnerships over the next five years.
Mortgage Loan Commitments The Company has issued interest rate lock commitments on certain residential mortgage loan applications totaling $2.7 billion and $8.0 billion at December 31, 2009 and 2008, respectively.
The Company intends to sell the majority of these originated residential mortgage loans.
Interest rate lock commitments to fund mortgage loans that will be held-for-sale are considered derivatives and their estimated fair value and notional amounts are included within interest rate forwards in Note 4.
The Company also commits to lend funds under certain other mortgage loan commitments that will be held-for-investment.
The amounts of these mortgage loan commitments were $2.2 billion and $2.7 billion at December 31, 2009 and 2008, respectively.
Commitments to Fund Bank Credit Facilities, Bridge Loans and Private Corporate Bond Investments The Company commits to lend funds under bank credit facilities, bridge loans and private corporate bond investments.
The amounts of these unfunded commitments were $1.3 billion and $1.0 billion at December 31, 2009 and 2008, respectively.
Guarantees In the normal course of its business, the Company has provided certain indemnities, guarantees and commitments to third parties pursuant to which it may be required to make payments now or in the future.
In the context of acquisition, disposition, investment and other transactions, the Company has provided indemnities and guarantees, including those related to tax, environmental and other specific liabilities and other indemnities and guarantees that are triggered by, among other things, breaches of representations, warranties or covenants provided by the Company.
In addition, in the normal course of business, the Company provides indemnifications to counterparties in contracts with triggers similar to the foregoing, as well as for certain other liabilities, such as third-party lawsuits.
These obligations are often subject to time limitations that vary in duration, including contractual limitations and those that arise by operation of law, such as applicable statutes of limitation.
In some cases, the maximum potential obligation under the indemnities and guarantees is subject to a contractual limitation ranging from less than $1 million to $800 million, with a cumulative maximum of $1.6 billion, while in other cases such limitations are not specified or applicable.
Since certain of these obligations are not subject to limitations, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these guarantees in the future.
Management believes that it is unlikely the Company will have to make any material payments under these indemnities, guarantees, or commitments.
In addition, the Company indemnifies its directors and officers as provided in its charters and by-laws.
Also, the Company indemnifies its agents for liabilities incurred as a result of their representation of the Companys interests.
Since these indemnities are generally not subject to limitation with respect to duration or amount, the Company does not believe that it is possible to determine the maximum potential amount that could become due under these indemnities in the future.


| Year Ended December 31, | 2017 | Shares | $Share buybacks | Income tax withholding | Exercise cost | 33,868,356 |


Contractual Obligations The table below summarizes the future estimated cash payments related to certain contractual obligations as of December 31, 2016.
The estimated payments reflected in this table are based on management’s estimates and assumptions about these obligations.
Because these estimates and assumptions are necessarily subjective, the actual cash outflows in future periods will vary, possibly materially, from those reflected in the table.
In addition, we do not believe that our cash flow requirements can be adequately assessed based solely upon an analysis of these obligations, as the table below does not contemplate all aspects of our cash inflows, such as the level of cash flow generated by certain of our investments, nor all aspects of our cash outflows.


Table of Contents Our Certificate of Incorporation and Bylaws include anti-takeover provisions that may make it difficult for another company to acquire control of us or limit the price investors might be willing to pay for our stock.
Certain provisions of our Certificate of Incorporation and Bylaws could delay the removal of incumbent directors and could make it more difficult to successfully complete a merger, tender offer, or proxy contest involving us.
Our Certificate of Incorporation has provisions that give our Board the ability to issue preferred stock and determine the rights and designations of the preferred stock at any time without stockholder approval.
The rights of the holders of our common stock will be subject to, and may be adversely affected by, the rights of the holders of any preferred stock that may be issued in the future.
The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could have the effect of making it more difficult for a third party to acquire, or of discouraging a third party from acquiring, a majority of our outstanding voting stock.
In addition, the staggered terms of our board of directors could have the effect of delaying or deferring a change in control.
In addition, certain provisions of the Delaware General Corporation Law (DGCL), including Section 203 of the DGCL, may have the effect of delaying or preventing changes in the control or management of Illumina.
Section 203 of the DGCL provides, with certain exceptions, for waiting periods applicable to business combinations with stockholders owning at least 15% and less than 85% of the voting stock (exclusive of stock held by directors, officers, and employee plans) of a company.
The above factors may have the effect of deterring hostile takeovers or otherwise delaying or preventing changes in the control or management of Illumina, including transactions in which our stockholders might otherwise receive a premium over the fair market value of our common stock.


MetLife, Inc.  Notes to the Consolidated Financial Statements  (Continued) At December 31, 2008, the Companys total amount of unrecognized tax benefits was $766 million and the total amount of unrecognized tax benefits that would affect the effective tax rate, if recognized, was $567 million.
The total amount of unrecognized tax benefits decreased by $74 million from December 31, 2007 primarily due to settlements reached with the IRS with respect to certain significant issues involving demutualization, leasing and tax credits offset by additions for tax positions of the current year.
As a result of the settlements, items within the liability for unrecognized tax benefits, in the amount of $153 million, were reclassified to current and deferred income tax payable, as applicable, of which $20 million was paid in 2008 and $133 million was paid in 2009.
At December 31, 2009, the Companys total amount of unrecognized tax benefits was $773 million and the total amount of unrecognized tax benefits that would affect the effective tax rate, if recognized, was $583 million.
The total amount of unrecognized tax benefits increased by $7 million from December 31, 2008 primarily due to additions for tax positions of the current and prior years offset by settlements reached with the IRS.
Settlements with tax authorities amounted to $46 million, of which $44 million was reclassified to current income tax payable and paid in 2009 and $2 million reduced current income tax expense.
The Companys liability for unrecognized tax benefits may decrease in the next 12 months pending the outcome of remaining issues, taxexempt income and tax credits, associated with the 2000 to 2002 IRS audit.
A reasonable estimate of decrease cannot be made at this time.
However, the Company continues to believe that the ultimate resolution of the issues will not result in a material change to its consolidated financial statements, although the resolution of income tax matters could impact the Companys effective tax rate for a particular future period.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


| Fair value of plan assets at beginning of year $10,605 $11,098 $3,470 $3,574 | Actual return on plan assets | Acquisitions/(divestitures) | Employer contributions | Participants' contributions | Currency translation and other | ESOP debt impacts-4 | Benefit payments | FAIR VALUE OF PLAN ASSETS AT END OF YEAR | Reclassification of net obligation to held for sale liabilities | FUNDED STATUS |


| 2018 2017 2016 | Total common shareholders' equity | Long-term debt and redeemable preferred stock at redemption value | Short-term debt and current portion of long-term debt | Total |


| 2008 2007 2006 | Weighted average exercise price per share | Expected annual dividends per share | Expected life in years | Expected volatility | Risk-free interest rate | Weighted average grant date fair value of stock option awards granted |


| 2009 2008 2007 % Change 2009 v 2008 % Change 2008 v 2007 | Average train speed (miles per hour) | Average terminal dwell time (hours) | Average rail car inventory (thousands) | Gross ton-miles (billions) | Revenue ton-miles (billions) | Operating ratio | Employees (average) | Customer satisfaction index |


| 2015 2014 | (in billions) | Beginning balance | Net flows-1 | Market appreciation (depreciation) and other(1) | Ending balance | Advisory wrap account assets ending balance-2 | Average advisory wrap account assets-3 |


Money Market and Overdraft Lines of Credit The Company has certain uncommitted money market and overdraft lines of credit that are used from time to time for working capital purposes.
As of December 31, 2015 and 2014, there was no outstanding balance on Apaches lines of credit.
Unsecured Committed Bank Credit Facilities In June 2015, the Company entered into a five-year revolving credit facility which matures in June 2020, subject to Apaches two, one-year extension options.
The facility provides for aggregate commitments of $3.5 billion (including a $750 million letter of credit subfacility), with rights to increase commitments up to an aggregate $4.5 billion.
Proceeds from borrowings may be used for general corporate purposes.
Apaches available borrowing capacity under this facility supports its commercial paper program.
In connection with entry into the $3.5 billion facility, Apache terminated $5.3 billion in commitments under existing credit facilities.
As of December 31, 2015, aggregate available borrowing capacity under this credit facility was $3.5 billion.
At the Companys option, the interest rate per annum for borrowings under the facility is either a base rate, as defined, plus a margin or the London Inter-bank Offered Rate (LIBOR), plus a margin.
At December 31, 2015, the margin over LIBOR was 1.0 percent.
The Company also pays quarterly a facility fee at per annum rate on total commitments, which at December 31, 2015 was 0.125 percent of the total $3.5 billion in commitments.
The margins and the facility fee vary based upon the Companys senior long-term debt rating.
The financial covenants of the credit facility require the Company to maintain an adjusted debt-to-capital ratio of not greater than 60 percent at the end of any fiscal quarter.
For purposes of this calculation, capital excludes the effects of non-cash write-downs, impairments, and related charges occurring after June 30, 2015.
Negative covenants restrict the ability of the Company and its subsidiaries to create liens securing debt on its hydrocarbon-related assets, with exceptions for liens typically arising in the oil and gas industry, purchase money liens, liens on subsidiary assets located outside of the United States and Canada, and liens arising as a matter of law, such as tax and mechanics liens.
The Company also may incur liens on assets if debt secured thereby does not exceed 5 percent of the Companys consolidated assets, or approximately $940 million as of December 31, 2015.
Negative covenants also restrict Apaches ability to merge with another entity unless it is the surviving entity, dispose of substantially all of its assets, and guarantee debt of non-consolidated entities in excess of the stated threshold.
Apache recorded non-cash after-tax write-downs of its proved oil and gas properties totaling $16.6 billion, $3.1 billion, and $541 million in 2015, 2014, and 2013, respectively.
The following table reflects write-downs by country:


The volume/weather variance is primarily due to an increase of 1,046 GWh, or 8%, in billed electricity usage in all sectors, primarily due to the effect of more favorable weather on the residential sector.
Gross operating revenues, fuel and purchased power expenses, and other regulatory charges (credits) Gross operating revenues increased primarily due to an increase of $22 million in power management rider revenue as the result of higher rates, the volume/weather variance discussed above, and an increase in Grand Gulf rider revenue as a result of higher rates and increased usage, offset by a decrease of $23.5 million in fuel cost recovery revenues due to lower fuel rates.
Fuel and purchased power expenses decreased primarily due to a decrease in deferred fuel expense as a result of prior over-collections, offset by an increase in the average market price of purchased power coupled with increased net area demand.
Other regulatory charges increased primarily due to increased recovery of costs associated with the power management recovery rider.
Other Income Statement Variances 2011 Compared to 2010 Other operation and maintenance expenses decreased primarily due to: x a $5.4 million decrease in compensation and benefits costs primarily resulting from an increase in the accrual for incentive-based compensation in 2010 and a decrease in stock option expense; and x the sale of $4.9 million of surplus oil inventory.
The decrease was partially offset by an increase of $3.9 million in legal expenses due to the deferral in 2010 of certain litigation expenses in accordance with regulatory treatment.
Taxes other than income taxes increased primarily due to an increase in ad valorem taxes due to a higher 2011 assessment as compared to 2010, partially offset by higher capitalized property taxes as compared with prior year.
Depreciation and amortization expenses increased primarily due to an increase in plant in service.
Interest expense decreased primarily due to a revision caused by FERC’s acceptance of a change in the treatment of funds received from independent power producers for transmission interconnection projects.


HOW WE MEASURE OUR PRODUCT We report Timberlands data in cubic meters.
Cubic meters measure the total volume of wood fiber in a tree or log that we can sell.
Cubic meter volume is determined from the large- and small-end diameters and length and provides a more consistent and comparative measure of timber and log volume among operating regions, species, size and seasons of the year than other units of measure.
We also use two other units of measure when transacting business including: ?thousand board feet (MBF) — used in the West to measure the expected lumber recovery from a tree or log, but it does not include taper or recovery of nonlumber residual products; and ?green tons — used in the South to measure weight, but factors used for conversion to product volume can vary by species, size, location and season.
Both measures are accurate in the regions where they are used, but they do not provide a meaningful basis for comparisons between the regions.
The conversion rate for MBF to cubic meters varies based on several factors including diameter, length and taper of the timber.
The average conversion rate for MBF to cubic meters is approximately 6.7 cubic meters per MBF.
The conversion rate from green tons to cubic meters also varies based on the season harvested and the specific gravity of the wood for the region where the timber is grown.
An average conversion rate for green tons to cubic meters is approximately 0.825 cubic meters per green ton.
WHERE WE DO IT Our timberlands assets are located primarily in North America.
In the U. S.  we own and manage sustainable forests in nine states for use in wood products and pulp and paper manufacturing.
We own or lease: ?4.1 million acres in the southern U. S.  (Alabama, Arkansas, Louisiana, Mississippi, North Carolina, Oklahoma and Texas); and ?2.0 million acres in the Pacific Northwest (Oregon and Washington).
Our international operations are located primarily in Uruguay and China where, as of December 31, 2010, we own a total of 317,000 acres and have long-term leases on another 70,000 acres.
In addition, we have renewable, long-term licenses on 14.0 million acres of forestland owned by the provincial government of four Canadian provinces.
Our total timber inventory — including timber on owned and leased land in our U. S.  and international operations — is approximately 303 million cubic meters.
The timber inventory on licensed lands in Canada is approximately 371 million cubic meters.
The amount of timber inventory does not translate into an amount of lumber or panel products because the quantity of end products: ?varies according to the species, size and quality of the timber; and ?will change through time as the mix of these variables adjust.
The species, size and grade of the trees affects the relative value of our timberlands.
DISCUSSION OF OPERATIONS BY GEOGRAPHY Summary of 2010 Timber Inventory and Timberland Locations United States


SERVICE AND PRODUCT OFFERINGS – In addition to our retail offices, we offer a number of digital tax preparation alternatives.
By offering professional and do-it-yourself tax preparation options through multiple channels, we seek to serve our clients in the manner they choose to be served.
We also offer clients a number of options for receiving their income tax refund, including a check directly from the IRS, an electronic deposit directly to their bank account, a prepaid debit card or a RAC.
Software Products.
We develop and market H&R Block At HomeTM income tax preparation software.
H&R Block At HomeTM offers a simple step-by-step tax preparation interview, data imports from money management


| Years Ended December 31 2009 2008 2007 | Sales | Materials and production costs | Other expense, net | Income before taxes | December 31 | Current assets | Noncurrent assets | Total liabilities (all current) |


| Year Ended December 31, | 2011 | Revenues | Net income | Net income applicable to HCP, Inc. | Basic earnings per common share | Diluted earnings per common share |


Contractual Obligations The following table presents payments due by period for long-term contractual obligations as of December 31, 2007:


| Number of Shares Repurchased -1 Average Price Per Share | October 1 through October 31 | November 1 through November 30 | December 1 through December 31 |


| Interest Rate   Subsequent to | Scheduled | Face | Issuer | (In millions) | MetLife, Inc. | MetLife Capital Trust X -1 | MetLife Capital Trust IV -1 | MetLife, Inc. | $3,191 |


| In millions EstimatedFair Value $536 8 109 14 26 AverageRemainingUseful Life (at acquisitiondate) 12-17 years 5-10 years Indefinite 4-7 years 2 years | Asset Class: | Total |


| December 31, 2007 December 31, 2006 | Notional | Amount | (In millions) | Interest rate swaps | Interest rate floors | Interest rate caps | Financial futures | Foreign currency swaps | Foreign currency forwards | Options | Financial forwards | Credit default swaps | Synthetic GICs | Other | Total |


| December 31, 2016 | (Dollars in thousands) | Commercial loans: | Software/internet | Hardware | Private equity/venture capital | Life science/healthcare | Premium wine | Other | Commercial loans | Real estate secured loans: | Premium wine | Consumer loans | Other | Real estate secured loans | Construction loans | Consumer loans | Total gross loans |


Residential Mortgage Loans Held for Sale We have elected to account for certain residential mortgage loans originated for sale at fair value on a recurring basis.
As of December 31, 2009, all residential mortgage loans held for sale were at fair value.
Residential mortgage loans are valued based on quoted market prices, where available, prices for other traded mortgage loans with similar characteristics, and purchase commitments and bid information received from market participants.
These loans are regularly traded in active markets and observable pricing information is available from market participants.
The prices are adjusted as necessary to include the embedded servicing value in the loans and to take into consideration the specific characteristics of certain loans that are priced based on the pricing of similar loans.
These adjustments represent unobservable inputs to the valuation but are not considered significant to the fair value of the loans.
Accordingly, residential mortgage loans held for sale are classified as Level 2.
At December 31, 2009, residential mortgage loans held for sale for which we elected the fair value option had an aggregate fair value and outstanding principal balance of $1.0 billion.
Throughout 2009, certain residential mortgage loans for which we elected the fair value option were subsequently reclassified to portfolio loans.
Changes in fair value due to instrument-specific credit risk for 2009 was not material.
At December 31, 2009, residential mortgage loans held in portfolio had a total fair value of $88 million and a total outstanding principal balance of $104 million.


Entergy Corporation and Subsidiaries Management's Financial Discussion and Analysis 14 Revenues and fuel and purchased power expenses decreased for Energy Commodity Services by $1,075.8 million and $876.9 million, respectively, in 2002 primarily due to:  a decrease of $542.9 million in revenues and $539.6 million in fuel and purchased power expenses resulting from the sale of Highland Energy in the fourth quarter of 2001;  a decrease of $161.7 million in revenues resulting from the sale of the Saltend plant in August 2001; and  a decrease of $139.1 million in revenues and $133.5 million in purchased power expenses due to the contribution of substantially all of Entergy's power marketing and trading business to Entergy-Koch in February 2001.
Earnings from Entergy-Koch are reported as equity in earnings of unconsolidated equity affiliates in the financial statements.
The net income effect of the lower revenues was more than offset by the income from Entergys investment in Entergy-Koch.
The income from Entergys investment in Entergy-Koch was $31.9 million higher in 2002 primarily as a result of earnings at Entergy-Koch Trading (EKT) and higher earnings at Gulf South Pipeline due to more favorable transportation contract pricing.
Although the gain/loss days ratio reported below declined in 2002, EKT made relatively more money on the gain days than the loss days, and thus had an increase in earnings for the year.
Following are key performance measures for Entergy-Koch's operations for 2002 and 2001:


| Estimated % Change inNet Interest Income over 12 Months December 31, | Basis points | Instantaneous Change in Interest Rates | +200 | +100 | -100 | Gradual Change in Interest Rates | +200 | +100 | -100 |


| For the Year Ended December 31, | (Millions of Dollars, except per share amounts) | Operating revenues | Energy costs | Operating income | Net income | Total assets (f)(g) | Long-term debt (f) | Total equity | Net Income per common share – basic | Net Income per common share – diluted | Dividends declared per common share | Book value per share | Average common shares outstanding(millions) | Stock price low | Stock price high |


| Year Ended December 31 2009 2008 2007 | Nuclear-powered submarines | Surface combatants | Auxiliary and commercial ships | Repair and other services | Total Marine Systems |


Table of Contents Index to Financial Statements 19 approximately 91% of total proved reserves.
The reserves audit for 2014 included a detailed review of eight of our major fields and covered approximately 88% of total proved reserves.
In connection with the 2016 reserves audit, NSAI prepared its own estimates of our proved reserves.
In order to prepare its estimates of proved reserves, NSAI examined our estimates with respect to reserves quantities, future production rates, future net revenue, and the present value of such future net revenue.
NSAI also examined our estimates with respect to reserves categorization, using the definitions for proved reserves set forth in Regulation S-X Rule 4-10(a) and subsequent SEC staff interpretations and guidance.
In the conduct of the reserves audit, NSAI did not independently verify the accuracy and completeness of information and data furnished by us with respect to ownership interests, crude oil and natural gas production, well test data, historical costs of operation and development, product prices, or any agreements relating to current and future operations of the fields and sales of production.
However, if in the course of the examination something came to the attention of NSAI which brought into question the validity or sufficiency of any such information or data, NSAI did not rely on such information or data until it had satisfactorily resolved its questions relating thereto or had independently verified such information or data.
NSAI determined that our estimates of reserves have been prepared in accordance with the definitions and regulations of the SEC, including the criteria of reasonable certainty, as it pertains to expectations about the recoverability of reserves in future years, under existing economic and operating conditions, consistent with the definition in Rule 4-10(a)(24) of Regulation S-X.
NSAI issued an unqualified audit opinion on our proved reserves at December 31, 2016, based upon their evaluation.
NSAI concluded that our estimates of proved reserves were, in the aggregate, reasonable and have been prepared in accordance with Standards Pertaining to the Estimating and Auditing of Oil and Gas Reserves Information promulgated by the Society of Petroleum Engineers.
NSAIs report is attached as Exhibit 99.1 to this Annual Report on Form 10-K.
When compared on a field-by-field basis, some of our estimates are greater and some are less than the estimates of NSAI.
Given the inherent uncertainties and judgments that go into estimating proved reserves, differences between internal and external estimates are to be expected.
For proved reserves at December 31, 2016, on a quantity basis, the NSAI field estimates ranged from 3.1 MMBoe or 2% above to 6 MMBoe or 7% below as compared with our estimates on a field-by-field basis.
Differences between our estimates and those of NSAI are reviewed for accuracy but are not further analyzed unless the aggregate variance is greater than 10%.
Reserves differences at December 31, 2016 were, in the aggregate, approximately 27.9 MMBoe, or 2%.
Proved Reserves We have historically added reserves through our exploration program, development activities, and acquisition of producing properties.
Changes in proved reserves were as follows:


Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.
In certain transactions, including certain aircraft financing leases and loans, the lessors, lenders and/or other parties have rights to terminate the transaction based on changes in foreign tax law, illegality or certain other events or circumstances.
In such a case, American may be required to make a lump sum payment to terminate the relevant transaction.
American has general indemnity clauses in many of its airport and other real estate leases where American as lessee indemnifies the lessor (and related parties) against liabilities related to American’s use of the leased property.
Generally, these indemnifications cover liabilities resulting from the negligence of the indemnified parties, but not liabilities resulting from the gross negligence or willful misconduct of the indemnified parties.
In addition, American provides environmental indemnities in many of these leases for contamination related to American’s use of the leased property.
Under certain contracts with third parties, American indemnifies the third-party against legal liability arising out of an action by the third-party, or certain other parties.
The terms of these contracts vary and the potential exposure under these indemnities cannot be determined.
American has liability insurance protecting American for some of the obligations it has undertaken under these indemnities.
American is involved in certain claims and litigation related to its operations.
American is also subject to regulatory assessments in the ordinary course of business.
American establishes reserves for litigation and regulatory matters when those matters present loss contingencies that are both probable and can be reasonably estimated.
In the opinion of management, liabilities, if any, arising from these regulatory matters, claims and litigation will not have a material adverse effect on American’s consolidated financial position, results of operations, or cash flows, after consideration of available insurance.
As of December 31, 2015, American had issued guarantees covering AAG’s $750 million aggregate principal amount of 5.50% senior notes due 2019, $500 million aggregate principal amount of 6.125% senior notes due 2018 and $500 million aggregate principal amount of 4.625% senior notes due 2020.
(h) Other As a result of the terrorist attacks of September 11, 2001 (the Terrorist Attacks) and the subsequent liability protections provided for by the Air Transportation Safety and System Stabilization Act (the Stabilization Act), American recorded a liability for the Terrorist Attacks claims equal to the related insurance receivable due to American.
The Stabilization Act provides that, notwithstanding any other provision of law, liability for all claims, whether compensatory or punitive, arising from the Terrorist Attacks, against any air carrier shall not exceed the liability coverage maintained by the air carrier.
As of December 31, 2015, the remaining liability and the amount of the offsetting receivable were each $974 million.14.
Supplemental Cash Flow Information Supplemental disclosure of cash flow information and non-cash investing and financing activities are as follows (in millions):


| Functional Currency 2011 2010 | European Currencies | Chinese Renminbi | Canadian Dollar | Mexican Peso | Other | Total |


| Comparable sales impact 0.2% | Non-comparable sales-1 | Total revenue decrease |


As a result of time lags between the funding of investments, the finalization of legal documents and the completion of the SVO filing process, the fixed maturity portfolio generally includes securities that have not yet been rated by the SVO as of each balance sheet date.
Pending receipt of SVO ratings, the categorization of these securities by NAIC designation is based on the expected ratings indicated by internal analysis.
Investments of our international insurance companies are not subject to NAIC guidelines.
Investments of our Japanese insurance operations are regulated locally by the Financial Services Agency, an agency of the Japanese government.
The Financial Services Agency has its own investment quality criteria and risk control standards.
Our Japanese insurance companies comply with the Financial Services Agency’s credit quality review and risk monitoring guidelines.
The credit quality ratings of the investments of our Japanese insurance companies are based on ratings assigned by nationally recognized credit rating agencies, including Moody’s, Standard & Poor’s, or rating equivalents based on ratings assigned by Japanese credit ratings agencies.
The amortized cost of our public and private fixed maturities attributable to the Financial Services Businesses considered other than high or highest quality based on NAIC or equivalent rating totaled $9.5 billion, or 7%, of the total fixed maturities as of December 31, 2009 and $9.0 billion, or 7%, of the total fixed maturities as of December 31, 2008.
Fixed maturities considered other than high or highest quality based on NAIC or equivalent rating represented 29% and 19% of the gross unrealized losses attributable to the Financial Services Businesses as of December 31, 2009 and December 31, 2008, respectively.
The increase in fixed maturity securities considered other than high or highest quality based on NAIC or equivalent rating is primarily due to credit migration on existing securities, rather than new originations or purchases.
As of December 31, 2009, the amortized cost of our public and private below investment grade fixed maturities attributable to the Financial Services Business, based on the lowest of external rating agency ratings, totaled $10.5 billion, or 8%, of the total fixed maturities, and may include securities considered high or highest quality by the NAIC based on the new rules for residential mortgage-backed securities described above.
The amortized cost of our public and private fixed maturities attributable to the Closed Block Business considered other than high or highest quality based on NAIC or equivalent rating totaled $6.7 billion, or 16%, of the total fixed maturities as of December 31, 2009 and $6.6 billion, or 15%, of the total fixed maturities as of December 31, 2008.
Fixed maturities considered other than high or highest quality based on NAIC or equivalent rating represented 41% of the gross unrealized losses attributable to the Closed Block Business as of December 31, 2009, compared to 29% of gross unrealized losses as of December 31, 2008.
As of December 31, 2009, the amortized cost of our public and private below investment grade fixed maturities attributable to the Closed Block Business, based on the lowest of external rating agency ratings, totaled $7.3 billion, or 17%, of the total fixed maturities, and may include securities considered high or highest quality by the NAIC based on the new rules for residential mortgage-backed securities described above.


| 2011 Period-to- Period Change 2010 Period-to- Period Change 2009 | Depreciation of tangible property and equipment | Amortization of landfill airspace | Amortization of intangible assets | $1,229 |


| (In millions) Food Care Product Care Total | Gross Carrying Value at December 31, 2016 | Accumulated impairment | Carrying Value at December 31, 2016 | Acquisition and divestiture | Currency translation | Gross Carrying Value at December 31, 2017 | Accumulated impairment | Carrying Value at December 31, 2017 | Acquisition, purchase price and other adjustments | Currency translation | Gross Carrying Value at December 31, 2018 | Accumulated impairment | Carrying Value at December 31, 2018 | December 31, 2018 | (In millions) | Customer relationships | Trademarks and tradenames | Capitalized software | Technology | Contracts | Total intangible assets with definite lives | Trademarks and tradenames with indefinite lives | Total identifiable intangible assets, net |


Risk monitoring and control Limits Market risk is controlled primarily through a series of limits set in the context of the market environment and business strategy.
In setting limits, the Firm takes into consideration factors such as market volatility, product liquidity and accommodation of client business and management experience.
The Firm maintains different levels of limits.
Corporate level limits include VaR and stress limits.
Similarly, line of business limits include VaR and stress limits and may be supplemented by loss advisories, nonstatistical measurements and profit and loss drawdowns.
Limits may also be allocated within the lines of business, as well at the portfolio level.
Limits are established by Market Risk in agreement with the lines of business.
Limits are reviewed regularly by Market Risk and updated as appropriate, with any changes approved by lines of business management and Market Risk.
Senior management, including the Firms Chief Executive Officer and Chief Risk Officer, are responsible for reviewing and approving certain of these risk limits on an ongoing basis.
All limits that have not been reviewed within specified time periods by Market Risk are escalated to senior management.
The lines of business are responsible for adhering to established limits against which exposures are monitored and reported.
Limit breaches are required to be reported in a timely manner by Risk Management to limit approvers, Market Risk and senior management.
In the event of a breach, Market Risk consults with Firm senior management and lines of business senior management to determine the appropriate course of action required to return to compliance, which may include a reduction in risk in order to remedy the excess.
Any Firm or line of business-level limits that are in excess for three business days or longer, or that are over limit by more than 30%, are escalated to senior management and the Firmwide Risk Committee.


| Business Location USA—IN USA—OH Fuel Coal/Gas/Oil Coal/Diesel/Solar Gross MW 3,699 3,817 AES Equity Interest (Percent, Rounded) 100% 100% Year Acquired or Began Operation 2001 2011 | 7,516 |


STOCKHOLDERS EQUITY As discussed in Note 2, we elected to early adopt new guidance related to accounting for employee share-based payments prospectively effective January 1, 2016.
The adoption of this new guidance resulted in the recognition of approximately $20 million of tax benefits in net income in our consolidated statement of income for the three months ended March 31, 2016 that had previously been recorded as additional paid-in capital in our consolidated balance sheet.


| 2010 2009 2008 | Balance as of January 1, | Current year increases | Recoveries and other | Balance as of December 31, |


Financial Instruments Cash Equivalents and Marketable Securities All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents.
The Companys marketable debt and equity securities have been classified and accounted for as available-for-sale.
Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designations at each balance sheet date.
The Company classifies its marketable debt securities as either short-term or long-term based on each instruments underlying contractual maturity date.
Marketable debt securities with maturities of 12 months or less are classified as short-term and marketable debt securities with maturities greater than 12 months are classified as long-term.
The Company classifies its marketable equity securities, including mutual funds, as either short-term or long-term based on the nature of each security and its availability for use in current operations.
The Companys marketable debt and equity securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported as a component of shareholders equity.
The cost of securities sold is based upon the specific identification method.
Derivative Financial Instruments The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value.
For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (AOCI) in shareholders equity and reclassified into income in the same period or periods during which the hedged transaction affects earnings.
The ineffective portion of the gain or loss on the derivative instrument, if any, is recognized in current income.
To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions.
For options designated as cash flow hedges, changes in the time value are excluded from the assessment of hedge effectiveness and are recognized in income.
For derivative instruments that hedge the exposure to changes in the fair value of an asset or a liability and that are designated as fair value hedges, both the net gain or loss on the derivative instrument as well as the offsetting gain or loss on the hedged item attributable to the hedged risk are recognized in earnings in the current period.
The Company had no fair value


2,067,643 shares of AIG common stock upon exercise of 14.
Stock Compensation Plans options expiring during 2006.
In addition, nonemployee Continued directors of AIG made valid elections to defer delivery of At January 1, 1999, the date of the AIG/SAI merger, SAI 21,093 shares of AIG common stock upon exercise of options had five stock-based compensation plans pursuant to which expiring during 2006.  options, restricted stock, and deferred share and share unit As a result of the acquisition of the Hartford Steam Boiler obligations had been issued and remained outstanding.
Options Inspection and Insurance Company (HSB) in November 2000, granted under these plans had an exercise price equal to the HSB options outstanding at the acquisition date were fully market price on the date of grant, had a maximum term of ten vested and were converted into options to purchase AIG years, and generally became exercisable ratably over a five-year common stock at the exchange ratio of 0.4178 shares of AIG period.
Substantially all of the SAI options outstanding at the common stock for each share of HSB common stock.
No merger date became fully vested on that date and were further options can be granted under the HSB option plans, converted into options to purchase AIG common stock at the but outstanding options so converted continue in force until exchange ratio of 0.855 shares of AIG common stock for each exercise or expiration.
At December 31, 2005, there were share of SAI common stock.
No further options can be granted 688,648 shares of AIG common stock reserved for issuance under the SAI plans, but outstanding options so converted under the HSB option plans, none of which qualified for ISO continue in force until exercise or expiration.
At December 31, Treatment.2005, there were 11,526,992 shares of AIG common stock At August 29, 2001, AGC had stock-based compensation reserved for issuance on exercise of options under these plans.
plans pursuant to which options and restricted share units had None of these options qualified for ISO Treatment as of been issued and remained outstanding.
Options granted under December 31, 2005.  these plans had an exercise price equal to the market price on During 2005, 2004 and 2003, deferred share and share unit the date of the grant, had a maximum term of ten years, and obligations with respect to 1,895 shares, 1,895 shares and generally became exercisable ratably over a three-year period.1,895 shares, respectively, of AIG common stock vested and All of the AGC options outstanding at the acquisition date were issued.
No additional deferred share or share unit became fully vested on that date and were converted into obligations may be granted under the SAI plans.
As of options to purchase AIG common stock at an exchange ratio December 31, 2005, deferred share and share unit obligations of 0.5790 shares of AIG common stock for each share of AGC with respect to 59,972 shares remained outstanding under the common stock.
No further options can be granted under the SAI plans.
AGC plans, but outstanding options so converted continue in The AIG Board of Directors has construed the AIG stock force until exercise or expiration.
At December 31, 2005, there option plans to allow, at the request of an optionee, the were 10,805,219 shares of AIG common stock reserved for deferral of delivery of AIG shares otherwise deliverable upon issuance on exercise of options under these plans.
Options with the exercise of an option to a date or dates specified by the respect to 1,250,221 of these shares qualified for ISO Treat- optionee.
During 2005, options with respect to 1,731,471 ment as of December 31, 2005.  shares were exercised with delivery deferred.
At December 31, 2005, optionees had made valid elections to defer delivery of Additional information with respect to AIG’s plans at December 31, 2005, and changes for the three years then ended, were as follows:


| For the Year Ended December 31, | 2012 | Oil Volume – b/d: | United States | Canada | North America | Egypt-3 | Australia | North Sea | Argentina | International | Total-1 | Natural Gas Volume – Mcf/d: | United States | Canada | North America | Egypt-3 | Australia | North Sea | Argentina | International | Total-2 | Natural Gas Liquids (NGL) Volume – b/d: | United States | Canada | North America | Egypt | North Sea | Argentina | International | Total | BOE per day-4 | United States | Canada | North America | Egypt | Australia | North Sea | Argentina | International | Total |


| January 26, 2014 January 27, 2013 | GrossCarryingAmount | (In thousands) | Acquisition-related intangible assets | Patents and licensed technology | Total intangible assets |


| December 31, 2011 December 31, 2010 | Total  Assets | CDOs [3] | Limited partnerships | Total |


| 7/02 7/03 7/04 7/05 12/05 12/06 12/07 | Alexion Pharmaceuticals, Inc. | NASDAQ Composite | NASDAQ Biotechnology |


| Year Ended January 31 | 2014 | (in millions) | Unrecognized tax benefits at beginning of year | Additions for tax positions related to current year | Additions for tax positions related to prior years | Reductions for tax positions related to prior years | Settlements with taxing authorities | Lapse of statute of limitations | Unrecognized tax benefits at end of year | Unrecognized tax benefits that, if recognized, would affect the effective income tax rate |


| 2010 2009-1 | In millions of dollars, except per share amounts | Revenues, net of interest expense | Operating expenses | Provisions for credit losses and for benefits and claims | Income (loss) from continuing operations before income taxes | Income taxes (benefits) | Income (loss) from continuing operations | Income (loss) from discontinued operations, net of taxes | Net income (loss) before attribution ofnoncontrolling interests | Net income (loss) attributable to noncontrolling interests | Citigroup’s net income (loss) | Earnings per share-2(3) | Basic | Income (loss) from continuing operations | Net income (loss) | Diluted | Income (loss) from continuing operations | Net income (loss) | Common stock price per share | High | Low | Close | Dividends per share of common stock |


| December 31, 2008 | Fixed Maturity Securities | (In millions) | Quoted prices in active markets for identical assets (Level 1) | Independent pricing source | Internal matrix pricing or discounted cash flow techniques | Significant other observable inputs (Level 2) | Independent pricing source | Internal matrix pricing or discounted cash flow techniques | Independent broker quotations | Significant unobservable inputs (Level 3) | Total estimated fair value |


| Amount(in millions) IssuanceDate Maturity Date Semi-annualCoupon Rate | January 2017 Notes | October 2018 Notes | January 2020 Notes | May 2020 Notes | May 2022 Notes | May 2025 Notes | October 2023 Notes | November 2035 Notes | January 2040 Notes | $4,650 |


| 2007 versus 2006 Ameren (a) UE CIPS Genco CILCORP CILCO IP | Electric revenue change: | Effect of weather (estimate) | UE electric rate increase | Storm-related outages (estimate) | JDA terminated December 31, 2006 | Elimination of CILCO/AERG power supply agreement | Interchange revenues, excluding estimated weather impact of -$47 million | Illinois electric settlement agreement, net of reimbursement | FERC-ordered MISO resettlements – March 2007 | Mark-to-market losses on energy contracts | Illinois rate redesign, generation repricing, growth and other (estimate) | Total electric revenue change | Fuel and purchased power change: | Fuel: | Generation and other | Emission allowance sales (costs) | Mark-to-market gains (losses) on fuel contracts | Price | JDA terminated December 31, 2006 | Purchased power | Entergy Arkansas, Inc. power purchase agreement | Elimination of CILCO/AERG power supply agreement | Insurance recovery | FERC-ordered MISO resettlements – March 2007 | Storm-related energy costs (estimate) | Total fuel and purchased power change | Net change in electric margins | Net change in gas margins |


Item 2.
PROPERTIES The table below provides a summary of our four owned containerboard mills, the principal products produced and each mills year-end 2012 annual practical maximum capacity based upon all of our paper machines production capabilities, as reported to the AF&PA:


Note P  Fair Value Measurements The accounting rules for fair value measurements and disclosures define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date in a principal or most advantageous market.
Fair value is a market-based measurement that is determined based on inputs, which refer broadly to assumptions that market participants use in pricing assets or liabilities.
These inputs can be readily observable, market corroborated, or generally unobservable firm inputs.
The Companies often make certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, and the risks inherent in the inputs to valuation techniques.
The Companies use valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs.
The accounting rules for fair value measurements and disclosures established a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value in three broad levels.
The rules require that assets and liabilities be classified in their entirety based on the level of input that is


| Severance and Other Benefits Asset Actions Contract Actions/Other Total | 2013 Charge | Amount reflected in pension liability | Noncash expenses | Cash expenditures | Currency translation adjustment | 30 September 2013 | Cash expenditures | Currency translation adjustment | 30 September 2014 |


| Twelve Months Ended | (millions of dollars) | Operating revenues | Purchased power | Fuel | Net revenues | Operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Electric operating income |


| Amount (In Millions) | 2015 net revenue | Reserve equalization | Purchased power capacity | Transmission revenue | Retail electric price | Net wholesale | Other | 2016 net revenue |


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 2Financial Instruments (Continued) Typically, the Company hedges portions of its forecasted foreign currency exposure associated with revenue and inventory purchases over a time horizon of up to 6 months.
Derivative instruments designated as cash flow hedges must be de-designated as hedges when it is probable the forecasted hedged transaction will not occur in the initially identified time period or within a subsequent 2 month time period.
Deferred gains and losses in other comprehensive income associated with such derivative instruments are immediately reclassified into earnings in other income and expense.
Any subsequent changes in fair value of such derivative instruments are also reflected in current earnings unless they are re-designated as hedges of other transactions.
The Company recognized net gains of approximately $672,000 and $421,000 in 2007 and 2006, respectively, and a net loss of $1.6 million in 2005 in other income and expense related to the loss of hedge designation on discontinued cash flow hedges due to changes in the Companys forecast of future net sales and cost of sales and due to prevailing market conditions.
As of September 29, 2007, the Company had a net deferred gain associated with cash flow hedges of approximately $468,000, net of taxes, substantially all of which is expected to be reclassified to earnings by the end of the second quarter of fiscal 2008.
The net gain or loss on the effective portion of a derivative instrument designated as a net investment hedge is included in the cumulative translation adjustment account of accumulated other comprehensive income within shareholders equity.
For the years ended September 29, 2007 and September 30, 2006, the Company had a net loss of $2.6 million and a net gain of $7.4 million, respectively, included in the cumulative translation adjustment.
The Company may also enter into foreign currency forward and option contracts to offset the foreign exchange gains and losses generated by the re-measurement of certain assets and liabilities recorded in non-functional currencies.
Changes in the fair value of these derivatives are recognized in current earnings in other income and expense as offsets to the changes in the fair value of the related assets or liabilities.
Due to currency market movements, changes in option time value can lead to increased volatility in other income and expense.


| U.S. International | 2017 | 2018 | 2019 | 2020 | 2021 | 2022–2026 |


| At December 31, 2017 A.M. Best Rating(a) Gross Reinsurance Assets Percent of Reinsurance Assets (b) Uncollateralized Reinsurance Assets | (in millions) | Reinsurer: | Berkshire Hathaway Group of Companies | Swiss Reinsurance Group of Companies | Years Ended December 31, | Operating Information | Natural gas gathered(BBtu/d) | Natural gas processed(BBtu/d) | Natural gas transported(MMcf/d) | Natural gas sales(BBtu/d) | Natural gas liquids gathered(MBbl/d) | Natural gas liquids sales(MBbl/d) | Natural gas liquids fractionated(MBbl/d) | Natural gas liquids transported(MBbl/d) | Capital expenditures(Thousands of dollars) | Conway-to-Mount Belvieu OPIS average spread Ethane/Propane mixture ($/gallon) | Realized composite NGL sales prices ($/gallon)(b) | Realized condensate sales price ($/Bbl)(b) | Realized natural gas sales price ($/MMBtu)(b) | Realized gross processing spread ($/MMBtu)(b) |


| In millions of dollars at year end, except ratios 2009 2008 | Total Citigroup stockholders’ equity | Less: | Preferred stock | Common equity | Less: | Goodwill | Intangible assets (other than MSRs) | Related net deferred taxes | Tangible common equity (TCE) | Tangible assets | GAAP assets | Less: | Goodwill | Intangible assets (other than MSRs) | Related deferred tax assets | Tangible assets (TA) | Risk-weighted assets (RWA) | TCE/TA ratio | TCE ratio(TCE/RWA) | In billions of dollars at year end | Tier 1 Capital | Total Capital (Tier 1 Capital and Tier 2 Capital) | Tier 1 Capital ratio | Total Capital ratio | Leverage ratio-1 |


| Planned construction and capital investment 2003 2004 2005 | U.S. Utility | Non-Utility Nuclear | Energy Commodity Services | Other |


Automated valuation services may be used primarily for residential properties when values from any of the previous methods were not available within 90 days of the balance sheet date.
These services use models based on market, economic, and demographic values.
The use of these models has only occurred in a very few instances and the related property valuations have not been sufficiently significant to consider disclosure under Level 3 rather than Level 2.
Impaired loans that are not collateral-dependent were measured based on the present value of future cash flows discounted at the expected coupon rates over the lives of the loans.
Because the loans were not discounted at market interest rates, the valuations do not represent fair value and have been excluded from the nonrecurring fair value balance in the preceding schedules.
Fair Value of Certain Financial Instruments Following is a summary of the carrying values and estimated fair values of certain financial instruments:


| Year Ended December 31 2016 2015 2014 | (In millions) | Medical professional liability | Other professional liability and management liability | Surety | Commercial auto | General liability | Workers’ compensation | Other | Total pretax (favorable) unfavorable development |


| 2017 2016 2015 | Interest expense on debt and capital lease obligations | Accretion of debt discounts | Accretion of remediation liabilities and other | Less: capitalized interest | Total interest expense |


| (Millions of Dollars) 2005 2004 2003 | Cash provided by (used in) operating activities | Continuing operations | Discontinued operations | Total |


| (Millions of Dollars, except per share amounts) 2011 2012 2013 2014 2015 | Reported net income – GAAP basis | Impairment of assets held for sale (a) | Gain on sale of solar electric production projects (b) | Loss from LILO transactions (c) | Net mark-to-market effects of the competitive energy businesses (d) | Adjusted earnings | Reported earnings per share – GAAP basis (basic) | Impairment of assets held for sale | Gain on sale of solar electric production projects | Loss from LILO transactions | Net mark-to-market effects of the competitive energy businesses | Adjusted earnings per share |


The table below presents estimated capital costs that are based on current technology to comply with the federal Clean Air Interstate Rule and related state implementation plans through 2018 as well as federal ambient air quality standards including ozone and fine particulates, and the federal Clean Air Visibility rule.
The estimates described below could change depending upon additional federal or state requirements, the implementation of any revisions to the federal Clean Air Interstate Rule, the requirements under a mercury MACT standard, whether the variance or rule amendment request with respect to the Illinois MPS discussed above is granted, new technology, variations in costs of material or labor, or alternative compliance strategies, among other reasons.
The timing of estimated capital costs may also be influenced by whether emission allowances are used to comply with any future rules, thereby deferring capital investment.


| December 31 | (Dollars in millions) | Consumer | Residential mortgage | Home equity | Direct/Indirect consumer | Other consumer | Total consumer-2 | Commercial | U.S. commercial | Commercial real estate | Commercial lease financing | Non-U.S. commercial | 1,643 | U.S. small business commercial | Total commercial-3 | Total nonperforming loans and leases | Foreclosed properties | Total nonperforming loans, leases and foreclosed properties |


| Quarter Ended | March 31 | (in thousands, except percentages) | 2006 | Net revenues | Current quarter vs prior quarter | 2007 | Net revenues | Current quarter vs prior quarter | 2008 | Net revenues | Current quarter vs prior quarter |


| December 31 | (Dollars in millions) | By counterparty | Private-label securitization trustees, whole-loan investors, including third-party securitization sponsors and other-1 | Monolines | GSEs | Total unresolved repurchase claims by counterparty, net of duplicate claims |


| Fiscal Years Ended | April 2,   2011 | (millions) | Net Revenues: | Wholesale | Retail | Licensing | Total net revenues |


| 2014 2013 2012 | Smokeable products | Smokeless products | Wine | All other | Total |


L E T T E R S O F C R E D I T The Company has arrangements available for the issuance of letters of credit, which letters are generally collateralized by the Companys cash and investments.
The Companys agreement with Citibank is a bilateral letter of credit agreement only.
On November 6, 2007 the Citibank bilateral letter of credit agreement was decreased by $50.0 million to $300.0 million.
All other terms of this agreement remain the same.
The Companys other facility, the Wachovia Group Credit Facility, involves a syndicate of lenders (see Note 5 of the Group Credit Facility), with Wachovia acting as administrative agent.
The Citibank Holdings Credit Facility involves a syndicate of lenders (see Note 5 of the Holdings Credit Facility), with Citibank acting as administrative agent.
At December 31, 2007 and 2006, letters of credit for $491.1 million and $460.0 million, respectively, were issued and outstanding.
The letters of credit collateralize reinsurance obligations of the Companys non-U.
S.  operations.
The following table summarizes the Companys letters of credit at December 31, 2007.


13.
STOCKHOLDERS’ EQUITY Warrants—In January 2003, the Company issued warrants to purchase approximately 11.4 million shares of its Common Stock in connection with an offering of 808,000 units, each consisting of $1,000 principal amount at maturity of ATI 12.25% senior subordinated discount notes due 2008 and a warrant to purchase 14.0953 shares of the Company’s Common Stock.
These warrants became exercisable on January 29, 2006 at an exercise price of $0.01 per share.
As these warrants expired on August 1, 2008, none were outstanding as of December 31, 2008.
In August 2005, the Company completed its merger with SpectraSite, Inc.  and assumed outstanding warrants to purchase shares of SpectraSite, Inc.  common stock.
As of the merger completion date, each warrant was exercisable for two shares of SpectraSite, Inc.  common stock at an exercise price of $32 per warrant.
Upon completion of the merger, each warrant to purchase shares of SpectraSite, Inc.  common stock automatically converted into a warrant to purchase shares of the Company’s Common Stock, such that upon exercise of each warrant, the holder has a right to receive 3.575 shares of the Company’s Common Stock in lieu of each share of SpectraSite, Inc.  common stock that would have been receivable under each assumed warrant prior to the merger.
Upon completion of the Company’s merger with SpectraSite, Inc. , these warrants were exercisable for approximately 6.8 million shares of Common Stock.
Of these warrants, warrants to purchase approximately 1.8 million and 2.0 million shares of Common Stock remained outstanding as of December 31, 2008 and 2007, respectively.
These warrants will expire on February 10, 2010.
Stock Repurchase Programs—During the year ended December 31, 2008, the Company repurchased an aggregate of approximately 18.3 million shares of its Common Stock for an aggregate of $697.1 million, including commissions and fees, pursuant to its publicly announced stock repurchase programs, as described below.


| As of December | $ in millions | Fair value of retained interests | Weighted average life (years) | Constant prepayment rate | Impact of 10% adverse change | Impact of 20% adverse change | Discount rate | Impact of 10% adverse change | Impact of 20% adverse change |


O. Policyholder Dividends.
The Company issues certain insurance policies with dividend payment features.
These policyholders share in the operating results of their respective policies in the form of dividends declared.
Dividends to policyholders are accrued during the period in which the related premiums are earned and are determined based on the terms of the individual policies.
P. Application of New Accounting Standards.
In November 2005, the Financial Accounting Standards Board (“FASB”) issued FASB Staff Position (“FSP”) FAS 115-1, “The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments” (“FAS 115-1”), which was effective for reporting periods beginning after December 15, 2005.
FAS 115-1 addresses the determination of when an investment is considered impaired, whether the impairment is other than temporary and the measurement of an impairment loss.
An other than temporary impairment loss is recorded as a net realized capital loss in the consolidated statements of operations and comprehensive income (loss) in the period in which it is impaired.
FAS 115-1 also includes accounting considerations subsequent to the recognition of an other-than-temporary impairment and requires certain disclosures about unrealized losses not recognized as other-than-temporary impairments.
The Company adopted FAS 115-1 prospectively effective January 1, 2006.
The Company believes that all unrealized losses in its investment portfolio are temporary in nature as of December 31, 2007.
In July 2006, FASB released FASB Interpretation No.48, “Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No.109” (“FIN 48”), which is effective for fiscal years beginning after December 15, 2006.
FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an enterprise’s financial statements in accordance with FASB Statement No.109, “Accounting for Income Taxes” (“FAS 109”).
FIN 48 prescribes the financial statement recognition and measurement criteria for tax positions taken or expected to be taken in a tax return.
Further, FIN 48 expands the required disclosures associated with uncertain tax positions.
As a result of the implementation of FIN 48, the Company recorded no adjustment in the liability for unrecognized income tax benefits and no adjustment to beginning retained earnings.
In September 2006, the FASB issued FAS No.157 “Fair Value Measurements” (“FAS 157”).
FAS 157 defines fair value, establishes a framework for measuring fair value consistently in GAAP and expands disclosures about fair value measurements.
The Company adopted FAS 157 as of January 1, 2007.
In September 2006, the FASB issued FAS No.158 “Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans” (“FAS 158”), which is effective for employers with publicly traded equity securities as of the end of the fiscal year ending after December 15, 2006.
FAS 158 requires an employer to (a) recognize in its financial statements an asset for a plan’s over funded status or a liability for a plan’s under funded status, (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year and (c) recognize changes in the funded status of a defined benefit post-retirement plan in the year in which the changes occur as other comprehensive income.
The Company adopted FAS 158 for the reporting period ended December 31, 2006.


| Residential Mortgage | Agency | (Dollars in millions) | Cash proceeds from new securitizations-1 | Loss on securitizations, net of hedges-2 |


Table of Contents unsecured claims with respect to facility agreements supporting certain issuances of special facility revenue bonds.
The Debtors recorded an estimated claim associated with the rejection or modification of a financing or facility agreement when the applicable motion was filed with the Bankruptcy Court to reject or modify such financing or facility agreement and the Debtors believed that it was probable the motion would be approved, and there was sufficient information to estimate the claim.
See Note 2 to AAGs Consolidated Financial Statements in Part II, Item 8A for further information.
(3) Pursuant to the Plan, the Debtors agreed to allow certain post-petition unsecured claims on obligations.
As a result, during the year ended December 31, 2013, we recorded reorganization charges to adjust estimated allowed claim amounts previously recorded on rejected special facility revenue bonds of $180 million, allowed general unsecured claims related to the 1990 and 1994 series of special facility revenue bonds that financed certain improvements at JFK, and rejected bonds that financed certain improvements at ORD, which are included in the table above.
(4) The Plan allowed unsecured creditors receiving AAG Series A Preferred Stock a conversion discount of 3.5%.
Accordingly, we recorded the fair value of such discount upon the confirmation of the Plan by the Bankruptcy Court.


| As of | (In millions) | Cash(a) | Short-term investments(a) | Available capacity under Syndicated Credit Facility(b) | Available capacity under Contingent Liquidity Facility | Available capacity under the Department of the Treasury Commitment (Series G)(b) | Available borrowing under the FRBNY Credit Facility(c) | Available capacity under the Department of the Treasury Commitment (Series F)(c) | Total AIG Parent liquidity sources(d) |


Other Revenues Refund of Deepwater Gulf of Mexico Royalties We have recorded a refund of $86 million attributable to royalties that we previously paid on production of approximately 900 MBbls of crude oil and 3,000 MMcf of natural gas that was produced from January 1, 2003 through July 31, 2009 in the deepwater Gulf of Mexico.
We have requested a refund from the MMS and anticipate receiving the monies in early 2010.
Interest of $11 million related to the refund has been recorded in interest income.
See Item 8.
Financial Statements and Supplementary Data  Note 2.
Summary of Significant Accounting Policies.
Other Other revenues include electricity sales and gathering, marketing and processing revenues.
See Electricity Sales and Expense below.
See Item 8.
Financial Statements and Supplementary Data  Note 2.
Summary of Significant Accounting Policies.


At December 31, 2009, PNC Bank, N. A. , our domestic bank subsidiary, was considered well capitalized based on US regulatory capital ratio requirements.
See the Supervision And Regulation section of Item 1 of this Report and Note 23 Regulatory Matters in the Notes To Consolidated Financial Statements in Item 8 of this Report for additional information.
We believe PNC Bank, N. A.  will continue to meet these requirements during 2010.


| Dollars in millions, except per share data 2008 2007-1 Latam Transaction -1 2007ExcludingLatamTransaction 2006 2008 Adjusted% Inc 2007 Adjusted% Inc | Operating income | Income from continuing operations | Income from discontinued operations | Net income | Income per common share – diluted | Continuing operations-2,3 | Discontinued operations | Net income-2,3 |


ITEM 7.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Our company has subsidiaries that provide tax, investment, retail banking and business services and products.
We are the only major company offering a full range of software, online and in-office tax preparation solutions, combined with personalized financial advice concerning retirement savings, home ownership and other opportunities to help clients build a better financial future.
Corporate Cost Reduction Program.
During the third quarter of fiscal year 2008, we announced the implementation of a program we expect will reduce corporate staff and overhead expenses by approximately $110 million per year.
As a result of this initiative, we recorded a pretax charge for severance-related benefits of $19.5 million during fiscal year 2008.
Of the total severance charge, $11.3 million was recorded in our corporate operations, while $3.1 million, $2.4 million and $2.7 million was recorded in our Tax Services, Business Services and Consumer Financial Services segments, respectively.
We expect these actions will result in reduced compensation expense of approximately $50 million per year.
In addition, we are seeking to eliminate approximately $60 million of non-compensation overhead expenses such as consulting, marketing, travel and entertainment.
Discontinued Operations  Recent Developments.
Effective November 2006, our Board of Directors approved a plan to exit the mortgage business operated through our subsidiary, OOMC, and we began reporting that business as discontinued operations.
During our third fiscal quarter ended January 31, 2008, OOMC ceased all loan origination activities, and initiated a plan to sell its servicing operations.
On April 30, 2008, OOMC sold its loan servicing assets to an affiliate of WL Ross pursuant to a previously announced agreement dated March 17, 2008.
After repayment of debt outstanding under OOMCs servicing advance facility totaling $986.2 million, OOMC realized net cash proceeds of $212.5 million from WL Ross and $19.9 million previously held in escrow pursuant to the servicing advance facility, for a total of $232.4 million at closing.
OOMC also retained a receivable relating to certain servicing assets of $117.4 million.
During fiscal year 2007, we also committed to a plan to sell two smaller lines of business and completed the wind-down of one other line of business, all of which were previously reported in our Business Services segment.
The two businesses held-for-sale were sold during fiscal year 2008.
Additionally, during fiscal year 2007, we completed the wind-down of our tax operations in the United Kingdom, which were previously reported in Tax Services.
At April 30, 2008, we met the criteria requiring us to present the related financial results of these businesses as discontinued operations in the consolidated financial statements.
All periods presented reflect our discontinued operations.
See Item 8, note 19 to our consolidated financial statements for additional information.


| MSA Total Branches Deposits Market Rank-1 Market Share-1 | Boston, MA | Philadelphia, PA | Providence, RI | Pittsburgh, PA | Cleveland, OH | Detroit, MI | Manchester, NH | Albany, NY | Buffalo, NY | Rochester, NY |


| Years Ended December 31, 2016/2015 2015/2014 | (Dollars in millions) | Gross written premiums | Net written premiums | Premiums earned | Incurred losses and LAE | Commission and brokerage | Other underwriting expenses | Underwriting gain (loss) | Point Chg | Loss ratio | Commission and brokerage ratio | Other underwriting expense ratio | Combined ratio | (Some amounts may not reconcile due to rounding.) |


| Table 52 Total Cross-border Exposure Exceeding One Percent of Total Assets-1 | (Dollars in millions) | United Kingdom | 2010 | Japan-2 |


Reinsurance Generally, the Company reinsures 90% of the death benefit liability related to almost all individual fixed and variable universal life and term life insurance products.
As a result, the Company typically retains and is at risk for, at most, 10% of each policy’s death benefit from the first dollar of coverage for new sales of these policies, subject to the reinsurers fulfilling their obligations.
The Company began reinsuring risks at this level during 2001 (2002 for RiverSource Life of NY) for term life insurance and 2002 (2003 for RiverSource Life of NY) for individual fixed and variable universal life insurance.
Policies issued prior to these dates are not subject to these same reinsurance levels.
Generally, the maximum amount of life insurance risk retained by the Company is $1.5 million on a single life and $1.5 million on any flexible premium survivorship life policy.
Risk on fixed and variable universal life policies is reinsured on a yearly renewable term basis.
Risk on most term life policies starting in 2001 (2002 for RiverSource Life of NY) is reinsured on a coinsurance basis, a type of reinsurance in which the reinsurer participates proportionally in all material risks and premiums associated with a policy.
For existing LTC policies, the Company retained 50% of the risk and ceded the remaining 50% of the risk on a coinsurance basis to subsidiaries of Genworth Financial, Inc.  (‘‘Genworth’’).
For RiverSource Life of NY, this reinsurance arrangement applies for 1996 and later issues only.
Generally, the Company retains at most $5,000 per month of risk per life on DI policies sold on policy forms introduced in most states in October 2007 (August 2010 for RiverSource Life of NY) and reinsures the remainder of the risk on a coinsurance basis with unaffiliated reinsurance companies.
The Company retains all risk for new claims on DI contracts sold on other policy forms.
The Company also retains all risk on accidental death benefit claims and substantially all risk associated with waiver of premium provisions.
At December 31, 2011 and 2010, traditional life and UL insurance in force aggregated $191.2 billion and $192.0 billion, respectively, of which $136.2 billion and $134.0 billion were reinsured at the respective year ends.
Life insurance in force is reported on a statutory basis.
The Company also reinsures a portion of the risks associated with its personal auto, home and umbrella insurance products through three types of reinsurance agreements with unaffiliated reinsurance companies.
The Company purchases reinsurance with a limit of $5 million per loss and the Company retains $750,000 per loss.
The Company purchases catastrophe reinsurance with a limit of $90 million per event and retains $10 million per event.
Those limits change in 2012 to $110 million and $20 million, respectively.
The Company also cedes 90% of every personal umbrella loss with a limit of $5 million.
The effect of reinsurance on premiums was as follows:


| 2010 2009 2008 | Net pension cost | Net postretirement benefit costs | Total | Impact on 2010 Expense | 25 basis point decrease in discount rate | 25 basis point increase in discount rate | 25 basis point decrease in expected return on assets | 25 basis point increase in expected return on assets |


| Years ended December 31, 2013 2012 2011 | Stock options | Restricted stock units and other awards | Share-based plans expense | Income tax benefit |


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


| Pension plans Postretirement benefit plans | U.S. plans | In millions of dollars | Benefits earned during the year | Interest cost on benefit obligation | Expected return on plan assets | Amortization of unrecognized | Prior service (benefit) cost | Net actuarial loss | Curtailment loss (gain)(1) | Settlement loss-1 | Total net (benefit) expense |


| 2006 2005 2004 | Changes in fair value of derivatives | Adjustment for net losses realized and included in net income | Change in unrealized gain/loss on derivative instruments |


Table of Contents totaled an absolute notional equivalent of $292.3 million and $190.5 million, respectively, with the year-over-year increase primarily driven by earnings growth.
At this time, we do not hedge these long-term investment exposures.
We do not use foreign exchange contracts for speculative trading purposes, nor do we hedge our foreign currency exposure in a manner that entirely offsets the effects of changes in foreign exchange rates.
We regularly review our hedging program and assess the need to utilize financial instruments to hedge currency exposures on an ongoing basis.
Cash Flow HedgingHedges of Forecasted Foreign Currency Revenue We may use foreign exchange purchased options or forward contracts to hedge foreign currency revenue denominated in Euros, British Pounds and Japanese Yen.
We hedge these cash flow exposures to reduce the risk that our earnings and cash flows will be adversely affected by changes in exchange rates.
These foreign exchange contracts, carried at fair value, may have maturities between one and twelve months.
We enter into these foreign exchange contracts to hedge forecasted revenue in the normal course of business and accordingly, they are not speculative in nature.
We record changes in the intrinsic value of these cash flow hedges in accumulated other comprehensive income (loss) until the forecasted transaction occurs.
When the forecasted transaction occurs, we reclassify the related gain or loss on the cash flow hedge to revenue.
In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, we reclassify the gain or loss on the related cash flow hedge from accumulated other comprehensive income (loss) to interest and other income, net on our Consolidated Statements of Income at that time.
For the fiscal year ended November 30, 2018, there were no net gains or losses recognized in other income relating to hedges of forecasted transactions that did not occur.


| Asbestos Environmental Total | (in millions of U.S. dollars) | Balance at December 31, 2008 | Incurred activity | Payment activity | Foreign currency revaluation | Balance at December 31, 2009 |


| Year Ended December 31, | 2015 | Allowance for loan and lease losses, beginning of year | Loan and lease charge-offs | Commercial: | Commercial and industrial | Commercial real estate: | Construction | Commercial | Commercial real estate | Total commercial | Consumer: | Automobile | Home equity | Residential mortgage | Other consumer | Total consumer | Total charge-offs | Recoveries of loan and lease charge-offs | Commercial: | Commercial and industrial | Commercial real estate: | Construction | Commercial | Total commercial real estate | Total commercial | Consumer: | Automobile | Home equity | Residential mortgage | Other consumer | Total consumer | Total recoveries | Net loan and lease charge-offs | Provision for loan and lease losses | Allowance for assets sold and securitized or transferred to loans held for sale | Allowance for loan and lease losses, end of year | Allowance for unfunded loan commitments, beginning of year | (Reduction in) Provision for unfunded loan commitments and letters of credit losses | Allowance for unfunded loan commitments, end of year | Allowance for credit losses, end of year |