(1) During the fourth quarter of 2016, we determined that our internal revenue growth rates for the three and nine months ended September 30, 2016 were incorrectly calculated in our Other International Business segment.
Approximately $4.4 million of revenue associated with the Recall Transaction was attributed to our business as it existed prior to the Recall Transaction.
This incorrect calculation impacted our previously reported internal revenue growth rates for our Other International Business segment as well as our consolidated internal revenue growth rates.
The corrected internal storage rental revenue, internal service revenue and internal total revenue growth rates for our Other International Business segment were 7.5%, 1.6% and 5.0%, respectively, for the three months ended September 30, 2016 and 8.5%, 5.9% and 7.4%, respectively, for the nine months ended September 30, 2016.
Our corrected consolidated internal storage rental revenue, internal service revenue and internal total revenue growth rates were 2.1%, (1.3)% and 0.8%, respectively, for the three months ended September 30, 2016 and 2.1%, (0.5)% and 1.1%, respectively, for the nine months ended September 30, 2016.
Management has assessed, both quantitatively and qualitatively, the impact of this incorrect calculation of our internal revenue growth rates for the three and nine months ended September 30, 2016 and concluded that such changes were not material to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2016.
We expect our consolidated internal storage rental revenue growth rate for 2017 to be approximately 2.0% to 2.5%.
During the past eight quarters, our internal storage rental revenue growth rate has ranged between 2.1% and 3.0%.
Our internal storage rental revenue growth rates have been relatively stable over the past two fiscal years, as internal storage rental revenue growth for full year 2015 and 2016 were 2.7% and 2.3%, respectively.
At various points in the economic cycle, internal storage rental revenue growth may be influenced by changes in pricing and volume.
Within our international portfolio, the Western European Business segment is generating consistent low single-digit internal storage rental revenue growth, while the Other International Business segment is producing high single-digit internal storage rental revenue growth by capturing the first-time outsourcing trends for physical records storage and management in those markets.
The internal growth rate for service revenue is inherently more volatile than the internal growth rate for storage rental revenues due to the more discretionary nature of certain services we offer, such as large special projects, and, as a commodity, the volatility of pricing for recycled paper.
These revenues, which are often event-driven and impacted to a greater extent by economic downturns as customers defer or cancel the purchase of certain services as a way to reduce their short-term costs, may be difficult to replicate in future periods.
The internal growth rate for total service revenues over the past eight quarters reflects reduced retrieval/re-file activity and a related decrease in transportation revenues within our North American Records and Information Management Business and Western European Business segments, as well as continued service declines in service revenue activity levels in our North American Data Management Business segment as the storage business becomes more archival in nature.


| December 31, 2011 | Less Than 12 Months | Amortized | Cost | ABS | CDOs | CMBS | Corporate [1] | Foreign govt./govt. agencies | Municipal | RMBS | U.S. Treasuries | Total fixed maturities | Equity securities | Total securities in an unrealized loss | December 31, 2010 | Less Than 12 Months | Amortized | Cost | ABS | CDOs | CMBS | Corporate | Foreign govt./govt. agencies | Municipal | RMBS | U.S. Treasuries | Total fixed maturities | Equity securities | Total securities in an unrealized loss |


| 2013 2012 | $1.50 billion revolving credit facility | 2013 Notes* | 2017 Notes | 2018 Notes | 2019 Notes | 2022 Notes | Senior Subordinated Convertible Notes | Other | Total debt | Less current portion | Long-term debt |


Owned and leased hotel revenues decreased during the year ended December 31, 2016 compared to the year ended December 31, 2015, primarily as a result of the effect of foreign currency changes and property disposals.
Foreign currency changes accounted for $62 million of the decrease.
On a currency neutral basis, revenues decreased $82 million, which was attributable to a net decrease in revenues of $85 million from properties disposed between January 1, 2015 and December 31, 2016.
Excluding foreign currency changes and property disposals, revenues increased at our comparable owned and leased hotels due to an increase in RevPAR of 2.1 percent, primarily attributable to an increase in ADR of 2.9 percent.


REVIEW OF 2017 VS.  2016
Our consolidated revenue increased in 2017 driven by higher volume across our Combat Systems group and increased revenue from aircraft deliveries and aircraft services in our Aerospace group.
These increases were offset partially by lower C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) solutions revenue in our Information Systems and Technology group.
While revenue increased, operating costs and expenses decreased, resulting in an 11.9% increase in operating earnings and margin growth of 130 basis points.
Operating earnings and margin expanded at each of our business groups in 2017.


| U.S. Pension Benefits Non-U.S.Pension Benefits Other PostretirementBenefits | (Millions of dollars) | Change in plan assets: | Fair value of plan assets, beginning of year | Actual return on plan assets | Foreign currency exchange rates | Company contributions | Participant contributions | Benefits paid | Settlements and termination benefits | Fair value of plan assets, end of year |


Table of Contents ADOBE SYSTEMS INCORPORATED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) repatriated, the related U. S.  tax liability may be reduced by any foreign income taxes paid on these earnings.
As of November 30, 2012, the cumulative amount of earnings upon which U. S.  income taxes have not been provided is approximately $2.9 billion.
The unrecognized deferred tax liability for these earnings is approximately $0.8 billion.
As of November 30, 2012, we have U. S.  net operating loss carryforwards of approximately $33.7 million for federal and $77.7 million for state.
We also have federal, state and foreign tax credit carryforwards of approximately $1.9 million, $18.0 million and $17.6 million, respectively.
The net operating loss carryforward assets, federal tax credits and foreign tax credits will expire in various years from fiscal 2017 through 2032.
The state tax credit carryforwards can be carried forward indefinitely.
The net operating loss carryforward assets and certain credits are subject to an annual limitation under Internal Revenue Code Section 382, but are expected to be fully realized.
In addition, we have been tracking certain deferred tax attributes of $45.0 million which have not been recorded in the financial statements pursuant to accounting standards related to stock-based compensation.
These amounts are no longer included in our gross or net deferred tax assets.
Pursuant to these standards, the benefit of these deferred tax assets will be recorded to equity if and when they reduce taxes payable.
As of November 30, 2012, a valuation allowance of $28.2 million has been established for certain deferred tax assets related to the impairment of investments and certain foreign assets.
For fiscal 2012, the total change in the valuation allowance was $23.0 million, of which $2.1 million was recorded as a tax benefit through the income statement.


| 2005 2004 2003 | (in millions) | Net income | Other comprehensive income, net of tax: | Change in foreign currency translation adjustments | Change in net unrealized investments gains (losses)(1) | Additional pension liability adjustment | Cumulative effect of accounting change | Other comprehensive loss, net of tax benefit of $371, $461, $159 | Comprehensive income |


| 2014 2013 | Remaining net rentals | Estimated unguaranteed residual value | Non-recourse mortgage debt | Unearned and deferred income | Net investment in leveraged lease |


| Contractual obligations by year | In millions of dollars at year end | Long-term debt obligations-1 | Operating lease obligations | Purchase obligations | Other liabilities reflected on the Company’s Consolidated Balance Sheet-2 | Total |


| December 31, 2010 | Gross Derivative Assets | Trading | Derivatives | and | Contract/ | (Dollars in billions) | Interest rate contracts | Swaps | Futures and forwards | Written options | Purchased options | Foreign exchange contracts | Swaps | Spot, futures and forwards | Written options | Purchased options | Equity contracts | Swaps | Futures and forwards | Written options | Purchased options | Commodity contracts | Swaps | Futures and forwards | Written options | Purchased options | Credit derivatives | Purchased credit derivatives: | Credit default swaps | Total return swaps/other | Written credit derivatives: | Credit default swaps | Total return swaps/other | Gross derivative assets/liabilities | Less: Legally enforceable master netting agreements | Less: Cash collateral applied | Total derivative assets/liabilities |


ADDITIONAL DISCLOSURES Forward-Looking Statements This report, including MD&A, contains certain forward-looking statements, including, but not limited to, certain plans, expectations, goals, projections, and statements, which are not historical facts and are subject to numerous assumptions, risks, and uncertainties.
Statements that do not describe historical or current facts, including statements about beliefs and expectations, are forward-looking statements.
Forward-looking statements may be identified by words such as expect, anticipate, believe, intend, estimate, plan, target, goal, or similar expressions, or future or conditional verbs such as will, may, might, should, would, could, or similar variations.
The forward-looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995.
While there is no assurance that any list of risks and uncertainties or risk factors is complete, below are certain factors which could cause actual results to differ materially from those contained or implied in the forward-looking statements: changes in general economic, political, or industry conditions; uncertainty in U. S.  fiscal and monetary policy, including the interest rate policies of the Federal Reserve Board; volatility and disruptions in global capital and credit markets; movements in interest rates; competitive pressures on product pricing and services; success, impact, and timing of our business strategies, including market acceptance of any new products or services implementing our “Fair Play” banking philosophy; the nature, extent, timing, and results of governmental actions, examinations, reviews, reforms, regulations, and interpretations, including those related to the Dodd-Frank Wall Street
divestiture of our Arrow and Moores businesses, and an unfavorable sales mix of international plumbing products, which, in aggregate, decreased sales by two percent.
Net sales for 2016 were positively affected by increased sales volume of plumbing products, paints and other coating products and builders' hardware.
Net sales for 2016 were also positively affected by favorable sales mix of cabinets and windows, and net selling price increases of North American windows and North American and international plumbing products.
Net sales for 2016 were negatively affected by lower sales volume of cabinets and lower net selling prices of paints and other coating products.
Our gross profit margins were 32.2 percent, 34.2 percent and 33.4 percent in 2018, 2017 and 2016, respectively.
The 2018 gross profit margin was negatively impacted by an increase in commodity costs, the recognition of the inventory step up adjustment established as a part of the the acquisition of Kichler, an increase in other expenses (such as logistics costs and salaries) and unfavorable sales mix.
These negative impacts were partially offset by an increase in net selling prices, the benefits associated with cost savings initiatives, and increased sales volume.
The 2017 gross profit margin was positively impacted by increased sales volume, a more favorable relationship between net selling prices and commodity costs, and cost savings initiatives.
Selling, general and administrative expenses as a percent of sales were 17.7 percent in 2018 compared with 18.6 percent in 2017 and 18.7 percent in 2016.
The decrease in selling, general and administrative expenses, as a percentage of sales, was driven by leverage of fixed expenses, due primarily to increased sales volume, and improved cost control.


| For the fiscal years ended June 30, | 2016 | (in millions, except %) | Revenues: | Consumer | Other | Total Revenues | Operating expenses | Selling, general and administrative | Segment EBITDA |


Retirement Benefits Pension Benefit Plans The Companys noncontributory pension plan (the Regular Pension Plan) covers U. S.  employees who became eligible after one year of service.
The benefit formula is dependent upon employee earnings and years of service.
Effective January 1, 2005, newly-hired employees were not eligible to participate in the Regular Pension Plan.
The Company also provides defined benefit plans which cover non-U.
S.  employees in certain jurisdictions principally the United Kingdom, Germany, Ireland, Japan and Korea (the Non-U.
S.  Plans).
Other pension plans are not material to the Company either individually or in the aggregate.
The Company has a noncontributory supplemental retirement benefit plan (the Officers Plan) for its officers elected prior to December 31, 1999.
The Officers Plan contains provisions for vesting and funding the participants expected retirement benefits when the participants meet the minimum age and years of service requirements.
Elected officers who were not yet vested in the Officers Plan as of December 31, 1999 had the option to remain in the Officers Plan or elect to have their benefit bought out in restricted stock units.
Effective December 31, 1999, newly elected officers are not eligible to participate in the Officers Plan.
Effective June 30, 2005, salaries were frozen for this plan.
The Company has an additional noncontributory supplemental retirement benefit plan, the Motorola Supplemental Pension Plan (MSPP), which provides supplemental benefits to individuals by replacing the Regular Pension Plan benefits that are lost by such individuals under the retirement formula due to application of the limitations imposed by the Internal Revenue Code.
However, elected officers who are covered under the Officers Plan or who participated in the restricted stock buy-out are not eligible to participate in MSPP.
Effective


| 2004 2003 $ Change % Change | (Dollars in millions) | Years ended December 31, | Fee Revenue: | Servicing fees | Management fees | Trading services | Securities finance | Processing fees and other | Total fee revenue | Net Interest Revenue: | Interest revenue | Interest expense | Net interest revenue | Provision for loan losses | Net interest revenue after provision for loan losses | Gains on sales of available-for-sale investment securities, net | Gain on sale of Private Asset Management business, net of exitand other associated costs | Gain on sale of Corporate Trust business | Total revenue |


2015 Compared to 2014.
Revenue in 2015 increased by $815.0 million compared to 2014.
On a constant currency basis, revenue in 2015, using the prior year’s monthly exchange rates for our settlement currencies other than the U. S.  dollar, would have increased by $896.7 million or 64% compared to 2014.
In 2015, advertising revenue increased by 59% compared to 2014.
On a constant currency basis, advertising revenue in 2015, using the prior year’s monthly exchange rates for our settlement currencies other than the U. S.  dollar, would have increased 65% compared to 2014.
The substantial majority of our advertising revenue was generated from our owned and operated platform.
Advertising revenue generated from the sale of our advertising services on our owned and operated platform in 2015 was $1.80 billion as compared to $1.24 billion in 2014.
Advertising revenue generated from the sale of our advertising services on third party publishers’ websites, applications and other offerings in 2015 was $194.2 million as compared to $11.4 million in 2014, which increase was driven, in part, by the acquisition of TellApart.
The overall increase in advertising revenue was primarily attributable to a 107% increase in the number of ad engagements offset by a 23% decrease in average cost per ad engagement in 2015 compared to 2014.
The increase in ad engagements was primarily the result of our move to auto-play video in late 2015, as well as growth in our advertising revenue generated from third party publishers’ websites, applications and other offerings, and an increase in ad load.
The decrease in average cost per ad engagement was due primarily to the shift to auto-play video, which delivers more engagement at a much lower average cost per engagement than click-to-play video ads.
Advertising revenue continued to be driven by growth in demand for our advertising products, particularly video and website card formats as well as growth in our advertising base.
In 2015, data licensing and other revenue increased by 52% compared to 2014.
The increase was primarily attributable to growth in mobile advertising exchange services as well as the increase in data licensing fees from the offering of “Gnip”-branded products for a full year in 2015 as compared to the partial year in 2014.2014 Compared to 2013.
Revenue in 2014 increased by $738.1 million compared to 2013.
In 2014, advertising revenue increased by 111% compared to 2013.
The increase was primarily attributable to a 175% increase in the number of ad engagements in 2014 offset by a 23% decrease in average cost per ad engagement in 2014 compared to 2013.
Advertising revenue also benefited from sales of our Promoted Products on our mobile applications as well as from an increase in international revenue.
In 2014, data licensing and other revenue increased by 109% compared to 2013.
The majority of this increase was attributable to a full year of revenue generated from mobile advertising exchange services in 2014 as compared to the partial year of revenue generated in the prior year.


| December 31, 2009 December 31, 2008 | Financial Services Businesses | (in millions) | General Account | Commercial Mortgage-Backed Securities, at fair value: | Fixed Maturity Securities | Trading Account Assets Supporting Insurance Liabilities | Other Trading Account Assets | Commercial Mortgage Loans, at gross carrying value-1 | Real estate related joint ventures and limited partnerships-2 | Real estate held through direct ownership-3 | Other Entities and Operations-4 | Commercial Mortgage-Backed Securities, at fair value: | Fixed Maturity Securities | Other Trading Account Assets | Commercial Mortgage Loans, at gross carrying value-5 | Real estate related joint ventures and limited partnerships-2 | Real estate held through direct ownership-3 |


| 2015 2014 | RiskCorridorSettlement | (in millions) | Other current assets | Trade accounts payable and accrued expenses | Net current (liability) asset |


| 2005 2004 | High | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | For the Year |


| 2014 | Capital adequacy | Total risk-weighted assets(in millions)(11) | Tier 1 leverage ratio-11 | Tier 1 risk-based capital ratio-11 | Total risk-based capital ratio-11 | Tier 1 common risk-based capital ratio-11 | Tangible common equity / tangible asset ratio-8 | Tangible equity / tangible asset ratio-9 | Tangible common equity / risk-weighted assets ratio-11 |


| Year Ended December 31, 2009 | in millions, except per share data | GAAP results | Non-GAAP adjustments: | Intangible asset impairment charges | Acquisition-related charges | Divestiture-related credits | Restructuring-related charges | Litigation-related net charges | Discrete tax items | Amortization expense | Adjusted results |


| (In millions) United States Europe Africa Other Int’l Total | 2008 | Sales(a) | Transfers | Other income(b) | Total revenues | Expenses: | Production costs | Transportation costs | Exploration expenses | Depreciation, depletion and amortization | Administrative expenses | Total expenses | Other production-related income (loss)(c) | Results before income taxes | Income tax (provision) benefit | Results of continuing operations | 2007 | Sales(a) | Transfers | Other income(b) | Total revenues | Expenses: | Production costs | Transportation costs | Exploration expenses | Depreciation, depletion and amortization | Administrative expenses | Total expenses | Other production-related income(c) | Results before income taxes | Income tax (provision) benefit | Results of continuing operations | Results of discontinued operations | 2006 | Sales(a) | Transfers | Other income(b) | Total revenues | Expenses: | Production costs | Transportation costs | Exploration expenses | Depreciation, depletion and amortization | Administrative expenses | Total expenses | Other production-related income(c) | Results before income taxes | Income tax (provision) benefit | Results of continuing operations | Results of discontinued operations |


| 2011 % Change 2010 % Change 2009 | Revenue | Gross Profit | Gross Profit Margin |


| Pension Benefits Other Benefits | (Dollars in Millions) | Service cost—benefits earned during the year | Interest cost on projected benefit obligation | Expected return on plan assets | Net amortization and deferral | Net periodic benefit cost | Curtailments and settlements | Total net periodic benefit cost |


| Number ofOptions(In Millions) WeightedAverageExercisePrice WeightedAverageRemainingContractualTerm(In Years) AggregateIntrinsicValue(In Millions) | Vested | Expected to vest | Total |


Consumer Packaging Demand and pricing for Consumer Packaging products correlate closely with consumer spending and general economic activity.
In addition to prices and volumes, major factors affecting the profitability of Consumer Packaging are raw material and energy costs, freight costs, manufacturing efficiency and product mix.
Consumer Packaging net sales in 2014 decreased 1% from 2013, but increased 7% from 2012.
Operating profits increased 11% from 2013, but decreased 34% from 2012.
Excluding sheet plant closure costs, costs associated with the permanent shutdown of a paper machine at our Augusta, Georgia mill and costs related to the sale of the Shorewood business, 2014 operating profits were 11% lower than in 2013, and 30% lower than in 2012.
Benefits from higher average sales price realizations and a favorable mix ($60 million) were offset by lower sales volumes ($11 million), higher operating costs ($9 million), higher planned maintenance downtime costs ($12 million), higher input costs ($43 million) and higher other costs ($7 million).
In addition, operating profits in 2014 include $8 million of costs associated with sheet plant closures, while operating profits in 2013 include costs of $45 million related to the permanent shutdown of a paper machine at our Augusta, Georgia mill and $2 million of costs associated with the sale of the Shorewood business.


| Years Ended December 31, | 2008 | (in millions, except percentages) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Amortization of deferred acquisition costs | General and administrative expense | Total expenses | Pretax income | Less: Net loss attributable to noncontrolling interests | Pretax income attributable to Ameriprise Financial | Percent Change 2017 vs. 2016 | Volume 1 | Consolidated | Europe, Middle East & Africa | Latin America | North America | Asia Pacific | Bottling Investments | Fiscal Year | 2017 | Apple Inc. ("Apple") | Huawei Technologies Co., Ltd. ("Huawei") | Samsung Electronics, Co., Ltd. ("Samsung") |


| Years Ended December 31, | (in millions) | Net income | Depreciation and amortization | Income tax expense | Interest expense, net | EBITDA | Non-cash equity-based compensation | Net loss on extinguishment of long-term debt(a) | Loss (income) from equity investments(b) | Acquisition and integration expenses(c) | Gain on remeasurement of equity investment(d) | Other adjustments(e) | Adjusted EBITDA(f) | Years Ended December 31, | (dollars in millions) | Net sales | Gross profit | Income from operations | Net income | Non-GAAP net income | Adjusted EBITDA | Average daily sales | Net debt (defined as total debt minus cash and cash equivalents)(1) | Cash conversion cycle (in days)(2) | Years Ended December 31, | 2015 | Dollars inMillions | Net sales | Cost of sales | Gross profit | Selling and administrative expenses | Advertising expense | Income from operations | Interest expense, net | Net loss on extinguishments of long-term debt | Gain on remeasurement of equity investment | Other (expense) income, net | Income before income taxes | Income tax expense | Net income |


FUTURE TRENDS The Company expects crude oil and natural gas production to increase in 2003 and 2004 compared to 2002.
The increased production in 2003 is expected primarily from the phase 2A expansion of the Alba field in Equatorial Guinea, the startup of production from the Mari-B field, offshore Israel, production from the CDX block in China and a full year of production in Ecuador.
The increase in 2004 is expected primarily from the continued expansion of markets in Israel and the phase 2B expansion of the LPG plant in Equatorial Guinea.
The Company recently set its 2003 capital expenditures budget at approximately $510 million.
Such expenditures are planned to be funded principally through internally generated cash flows.
The Company believes that it has the capital structure to take advantage of strategic acquisitions, as they become available, through internally generated cash flows or available lines of credit and other borrowing opportunities.
Ecuador.
Noble Energy has been actively engaged in exploration, exploitation and development of crude oil and natural gas properties in Ecuador since 1996.
The Company is currently utilizing the gas in the Amistad gas field (offshore Ecuador), which was discovered in the 1970s, to generate electricity through its 100 percent owned natural gas-fired power plant, located near the city of Machala.
Currently generating 130 MW, with additional capital investment, the power plant will ultimately be capable of generating 220 MW of electricity into the Ecuadorian power grid.
The concession covers 12,355 gross developed acres and 851,771 gross undeveloped acres encompassing the Amistad field.
For more information, see Item 2.
Properties--Crude Oil and Natural Gas of this Form 10-K.  Equatorial Guinea.
Noble Energy has been actively engaged in exploration, exploitation and development of crude oil and natural gas properties offshore Equatorial Guinea (West Africa) since 1990.
The offshore Equatorial Guinea production is from the Alba field, which produces natural gas and condensate.
The majority of the natural gas production is sold to a methanol plant, which began production in the second quarter of 2001.
The methanol plant has a 25-year contract to purchase natural gas from the Alba field.
The plant is owned by Atlantic Methanol Production Company LLC (AMPCO), in which the Company indirectly owns a 45 percent interest through its ownership of Atlantic Methanol Capital Company (AMCCO).
For more information on the methanol plant, see Item 1.  Business--Unconsolidated Subsidiary of this Form 10-K.  At December 31, 2002, the Company held 45,203 gross developed acres and 266,754 gross undeveloped acres offshore Equatorial Guinea on which the Company may conduct future exploration activities.
For more information, see Item 2.
Properties--Crude Oil and Natural Gas of this Form 10-K.  Israel.
Noble Energy has been actively engaged in exploration, exploitation and development of crude oil and natural gas properties in the Mediterranean Sea, offshore Israel, since 1998.
The Company owns a 47 percent interest in 11 licenses and two leases.
At December 31, 2002, the Company held 123,552 gross developed acres and 1,028,796 gross undeveloped acres located about 20 miles offshore Israel in water depths ranging from 700 feet to 5,000 feet.
Noble Energy and its partners announced on June 25, 2002 they had executed a definitive agreement for the sale of natural gas to Israel Electric Corporation (IEC).
For more information, see Item 2.
Properties--Crude Oil and Natural Gas of this Form 10-K.  North Sea.
Noble Energy has been actively engaged in exploration, exploitation and development of crude oil and natural gas properties in the North Sea (Denmark, Netherlands and United Kingdom) since 1996.
At December 31, 2002, the Company held 81,675 gross developed acres and 677,029 gross undeveloped acres on which the Company may conduct future exploration activities.
For more information, see Item 2.
Properties-- Crude Oil and Natural Gas of this Form 10-K.  Vietnam.
Noble Energy owns a 77 percent interest in two offshore blocks totaling 1,701,812 gross undeveloped acres in the Nam Con Son Basin.
For more information, see Item 2.
Properties--Crude Oil and Natural Gas of this Form 10-K.  Production Activities Operated Property Statistics.
The percentage of crude oil and natural gas wells operated and the percentage of sales volume from operated properties are shown in the following table as of December 31:


| December 31, 2014 | Nonaccrual | Outstanding Balances(a) | (Dollars in thousands) | New York | Pennsylvania | Mid-Atlantic | Other | Total |


Additional paid-in-capital (APIC) P Pool p p ( ) The Company adopted ASU 2016-09 during fiscal 2018.
ASU 2016-09 eliminated the APIC pool and requires that excess tax benefits and tax deficiencies be recorded in the income statement when awards are settled.
As a result of this adoption the Company recorded total excess tax benefits of $28.7 million and $26.2 million in fiscal 2019 and fiscal 2018, respectively, from its stock-based compensation payments within income tax expense in its consolidated statements of income.
For fiscal 2017, the APIC pool represented the excess tax benefits related to stock-based compensation that were available to absorb future tax deficiencies.
If the amount of future tax deficiencies was greater than the available APIC pool, the Company recorded the excess as income tax expense in its consolidated statements of income.
For fiscal 2017, the Company had a sufficient APIC pool to cover any tax deficiencies recorded and as a result, these deficiencies did not affect its results of operations.


Equity Equity at December 31, 2014 was $6.6 billion, a decrease of $1.6 billion from December 31, 2013.
The decrease resulted primarily due to share repurchases of $2.3 billion, $273 million of dividends to shareholders, and an increase in Accumulated other comprehensive loss of $760 million, partially offset by Net income of $1.4 billion.
The $760 million increase in Accumulated other comprehensive loss from December 31, 2013, primarily reflects the following: ?
negative net foreign currency translation adjustments of $504 million, which are attributable to the strengthening of the U. S.  dollar against certain foreign currencies, ?
an increase of $260 million in net post-retirement benefit obligations, ?
net derivative gains of $5 million, and ?
net investment losses of $1 million.


| (millions) 2006 | Net sales | Gross profit | Net earnings (loss) | Current assets | Noncurrent assets | Current liabilities | Noncurrent liabilities | (millions) | 2006 | Trademarks | Other | Total |


| Change | Fiscal Year | 2012 | R&D Expenses | R&D Expenses as a % of Revenue |


management’s discussion and analysis of financial condition and results of operations maturity at an effective rate of 6.33%.
In December we issued $250 million of unsecured floating rate debt at 26 basis points over LIBOR.
The debt matures in two years, but is callable at our option after six months.
● In August, we paid off $15 million of a $40 million secured floating rate term loan.
We also assumed $29.9 million of secured debt in conjunction with a property acquisition in Atlanta.
● The average balance and average borrowing rate of our $500 million revolving credit facility were slightly higher in 2004 than in 2003.
At the end of 2004 we were not utilizing our credit facility.


| Pension Postretirement | Non-U.S. Plans | 2005 | Discount rate | Rate of compensation increase | 2004 | Discount rate | Rate of compensation increase |


| 2016 2015 | (in millions) | Balance Sheet Data: | Current assets | Current liabilities | Long-term liabilities | Equity |


National City sold residential mortgage loans and home equity lines of credit (collectively, loans) in the normal course of business.
These agreements usually require certain representations concerning credit information, loan documentation, collateral, and insurability.
On a regular basis, investors may request PNC to indemnify them against losses on certain loans or to repurchase loans which the investors believe do not comply with applicable representations.
Upon completion of its own investigation as to the validity of the claim, PNC will repurchase or provide indemnification on such loans.
Indemnification requests are generally received within two years subsequent to the date of sale.
Management maintains a liability for estimated losses on loans expected to be repurchased, or on which indemnification is expected to be provided, and regularly evaluates the adequacy of this recourse liability based on trends in repurchase and indemnification requests, actual loss experience, known and inherent risks in the loans, and current economic conditions.
At December 31, 2008 the liability for estimated losses on repurchase and indemnification claims was $406 million.


| Con Edison CECONY | (millions of dollars) | Electric | Generation | Transmission | Distribution | Gas* | Steam | General | Held for future use | Construction work in progress | Net Utility Plant |


(J) Net Loss per Share Basic net loss per share is computed by dividing net loss by the weighted-average number of common shares outstanding during the fiscal year.
Diluted net loss per share is computed by dividing net loss by the weighted-average number of dilutive common shares outstanding during the fiscal year.
Diluted weighted-average shares reflect the dilutive effect, if any, of potential common stock such as options and warrants based on the treasury stock method.
No potential common stock is considered dilutive in periods in which a loss is reported, such as the fiscal years ended March 31, 2001, 2002 and 2003, because all such common equivalent shares would be antidilutive.
The calculation of diluted weighted-average shares outstanding for the years ended March 31, 2001, 2002 and 2003 excludes the options to purchase common stock as shown below.


| (Dollars in millions, except per share amounts, shares in thousands) Period Total Number of Shares Purchased Under Publicly Announced Program Average Price Paid per Share Approximate Dollar Value of Shares Purchased UnderPublicly Announced Program Approximate Dollar Value of Shares Yet to be Purchased Under Publicly Announced Program | October 1 - October 31, 2011 | November 1 - November 30, 2011 | December 1 - December 31, 2011 | Total |


| Year Ended December | in millions | Residential mortgages | Commercial mortgages | Other financial assets | Total | Cash flows on retained interests |


| Jurisdiction Years Subject to Examination N/A Additional Open Years 2014-2018 | Indonesia | Peru | Chile |


| Maximum potential amount of future payments | In billions of dollars at December 31, | 2009 | Financial standby letters of credit | Performance guarantees | Derivative instruments considered to be guarantees | Loans sold with recourse | Securities lending indemnifications-1 | Credit card merchant processing-1 | Custody indemnifications and other | Total |


| December 31, | 2010 | (In millions) | Net embedded derivatives within asset host contracts: | Ceded guaranteed minimum benefits | Options embedded in debt or equity securities | Net embedded derivatives within asset host contracts | Net embedded derivatives within liability host contracts: | Direct guaranteed minimum benefits | Other | Net embedded derivatives within liability host contracts | Years Ended December 31, | 2010 | (In millions) | Net derivative gains (losses) (1) | Policyholder benefits and claims |


11.
Reserves The following table provides reserve information by the Company’s major lines of business at the dates shown:


| Fiscal Year Ended September 30, | Statement of Operations Data: | (in millions, except per share data) | Operating revenues | Operating expenses | Operating income | Net income attributable to Visa Inc. | Basic earnings per share—class A common stock | Diluted earnings per share—class A common stock |


| For the year ended December 31, 2011 | Change attributed to | As adjusted | (in millions, except per share data) | Revenue | Fees and other revenues | Net investment income | Expenses | Benefits, claims and settlement expenses | Operating expenses | Income before income taxes | Income taxes | Net income | Net income available to common stockholders | Earnings per common share | Basic earnings per common share | Diluted earnings per common share |


| (Millions) 2006 2005 2004 | Total intrinsic value of stock options exercised | Cash received from stock option exercises | Income tax benefit from the exercise of stock options | Total fair value of stock options vested |


| In Millions 2011 | Years Ended December 31 | CMS Energy, including Consumers | Issuance of FMBs, senior notes, and other debt | Retirement of debt | Issuance of common stock | Redemption of preferred stock | Payments of common and preferred stock dividends | Other financing activities | Net cash provided by (used in) financing activities | Consumers | Issuance of FMBs | Retirement of debt | Payment of common and preferredstock dividends | Redemption of preferred stock | Stockholder contribution from CMS Energy | Other financing activities | Net cash provided by (used in) financing activities |


| 2012 2011 2010 | Risk-free interest rate | Expected life (years) | Expected dividend yield | Volatility | Weighted-average Black-Scholes fair value per share at date of grant |


| Years Ended | September 24, 2005 | Amount | Product Sales | Mammography/Breast Care | Osteoporosis Assessment | Other | $229,075 |


| Total Equivalent Reserves (Thousands barrels of oil equivalent) | United States | Proved developed reserves: | December 31, 2010 | December 31, 2011 | December 31, 2012 | December 31, 2013 | Proved undeveloped reserves: | December 31, 2010 | December 31, 2011 | December 31, 2012 | December 31, 2013 | Total proved reserves: | Balance December 31, 2010 | Extensions, discoveries and other additions | Purchase of minerals in-place | Revisions of previous estimates | Production | Sale of properties | Balance December 31, 2011 | Extensions, discoveries and other additions | Purchase of minerals in-place | Revisions of previous estimates | Production | Sale of properties | Balance December 31, 2012 | Extensions, discoveries and other additions | Purchase of minerals in-place | Revisions of previous estimates | Production | Sale of properties | Balance December 31, 2013 |


| East 2017 2018 2019 2020 AnnualAverage for2017-2020 | (Dollars in millions unless otherwise stated) | Net Coal Capacity (MW)(a) | Forecasted Coal Capacity (MW)(b) | Total Coal Sales (GWh)(c) | Percentage Coal Capacity Sold Forward(d) | Total Forward Hedged Revenues(e) | Weighted Average Hedged Price ($ per MWh)(e) | Average Equivalent Natural Gas Price ($ per MMBtu)(e) | Gross Margin Sensitivities | Gas Price Sensitivity Up $0.50/MMBtu on Coal Units | Gas Price Sensitivity Down $0.50/MMBtu on Coal Units | Heat Rate Sensitivity Up 1 MMBtu/MWh on Coal Units | Heat Rate Sensitivity Down 1 MMBtu/MWh on Coal Units |


Duration-Managed.
Our exposure to interest rate risk stems largely from our substantial holdings of guaranteed fixed rate liabilities in our U. S.  Asset Management and Accumulation segment.
We actively manage the duration of assets and liabilities in these products by minimizing the difference between the two.
We have established a maximum tolerance for this difference and seek to stay within this tolerance.
As of December 31, 2007, the difference between the asset and liability durations on our primary duration-managed portfolio was -.01.
This duration gap indicates that, as of this date, the sensitivity of the fair value of our assets to interest rate movements is less than that of the fair value of our liabilities.
Our goal is to minimize the duration gap.
Currently, our guidelines indicate that total duration gaps between the asset and liability portfolios should be within +/-0.25.
The value of the assets in this portfolio was $33,183.4 million as of December 31, 2007.


VISA INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued) September 30, 2009 (in millions, except as noted) Note 2The Reorganization Description of the Reorganization and Purchase Consideration In a series of transactions from October 1 to October 3, 2007, Visa undertook a reorganization in which Visa U. S. A. , Visa International, Visa Canada and Inovant became direct or indirect subsidiaries of Visa Inc.  and the Retrospective Responsibility Plan was established.
See Note 4Retrospective Responsibility Plan.
For accounting purposes, the Company reflected the reorganization as a single transaction occurring on October 1 (the reorganization date), using the purchase method of accounting with Visa U. S. A.  as the accounting acquirer.
The net assets underlying the acquired interests in Visa International, Visa Canada, and Inovant (the acquired interests) were recorded at fair value at the reorganization date with the excess purchase price over this value attributed to goodwill.
Visa Europe did not become a subsidiary of Visa Inc. , but rather remained owned and governed by its European member financial institutions and entered into a set of contractual arrangements with the Company in connection with the reorganization.
The Company issued different classes and series of common stock in the reorganization reflecting the different rights and obligations of the Visa financial institution members and Visa Europe.
The allocation of the Companys common stock to each of Visa AP, Visa LAC, Visa CEMEA, Visa Canada (collectively the acquired regions) and Visa U. S. A.
(collectively the participating regions) was based on each entitys expected relative contribution to the Companys projected fiscal 2008 net income, after giving effect to negotiated adjustments.
This allocation was adjusted shortly prior to the IPO (the trueup) to reflect actual performance in the four quarters ended December 31, 2007.
The allocation of the Companys common stock and other consideration conveyed to Visa Europe in exchange for its ownership interest in Visa International and Inovant was determined based on the fair value of each element exchanged in the reorganization as discussed below and in Note 3Visa Europe.
Total shares authorized and issued to the financial institution member groups of the participating regions and to Visa Europe in the reorganization totaled 775,080,512 shares of class B and class C common stock.
Total purchase consideration, inclusive of the true-up, of approximately $18.4 billion comprised of the following:


| Years Ended December 31 2017 2016 Change 2016 2015 In Millions Change | Net Income Available to Common Stockholders | Reasons for the change | Electric deliveries and rate increases | Power supply costs and related revenue | Maintenance and other operating expenses | Depreciation and amortization | General taxes | Other income, net of expenses | Interest charges | Income taxes | Total change |


| November 1, 2010 (In millions) | Assets acquired: | Total investments | Cash and cash equivalents | Accrued investment income | Premiums, reinsurance and other receivables | VOBA | Other assets | Separate account assets | Total assets | Liabilities assumed: | Future policy benefits | Policyholder account balances | Other policy-related balances | Current and deferred income tax liability | Other liabilities | Separate account liabilities | Total liabilities | Redeemable noncontrolling interests in partially owned consolidated subsidiaries assumed | Noncontrolling interests | Goodwill | Net assets acquired |


| January 29, 2012 January 30, 2011 | GrossCarryingAmount | (In thousands) | Technology licenses | Acquired intellectual property | Patents | Total intangible assets |


Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No.2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09), which amends the existing accounting standards for revenue recognition.
ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers.
ASU 2014-09 will be effective for the Company beginning in its first quarter of 2018.
Early adoption is not permitted.
The new revenue standard may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption.
The Company is currently evaluating the impact of adopting the new revenue standard on its consolidated financial statements.
We measure the fair value of options on the grant date or modification date using the Black-Scholes-Merton (BlackScholes) option valuation model based upon the expected term of the options.
We measure the fair value of nonvested shares and share units (other than performance-based nonvested share units) based on the closing price of our common stock on the grant date.
We measure the fair value of performance-based nonvested share units based on the Monte Carlo valuation model, taking into account as necessary those provisions of the performance-based nonvested share units that are characterized as market conditions.
We generally expense the grant-date fair value, net of estimated forfeitures, over the vesting period on a straight-line basis.
Options, nonvested shares and nonvested share units (other than performance-based nonvested share units) granted to employees typically vest pro-rata based upon service over a three-year period with a portion vesting each year.
Performance-based nonvested share units granted to employees typically cliff vest at the end of a three-year period based upon satisfaction of both service-based and performance-based requirements.
The number of performance-based share units that ultimately vest can range from zero up to 200 percent of the number granted, based on the form of the award, which can vary by year of grant.
The performance metrics for these awards typically consist of earnings before interest, taxes, depreciation and amortization (EBITDA), EBITDA growth, return on equity, return on invested capital, total shareholder return or our stock price.
Deferred stock units granted to non-employee directors vest when they are granted and are settled six months after the director separates from service as a director of the Company, except in the case of death.
All share units granted to employees and non-employee directors receive cumulative dividend equivalents to the extent of the units ultimately vesting at the time of distribution.
Options granted under our Plan have a maximum contractual term of ten years.


| Number of Restricted Stock Weighted-Average Grant-Date Fair Value | Unvested restricted stock, December 31, 2007 | Granted | Vested and issued | Forfeited | Unvested restricted stock, December 31, 2008 | Granted | Vested and issued | Forfeited | Unvested restricted stock, December 31, 2009 | Granted | Vested and issued | Forfeited | Unvested restricted stock, December 31, 2010 | Bermuda Subsidiaries | (in millions of U.S. dollars) | Statutory capital and surplus | Statutory net income | % Change | (in millions of U.S. dollars, except for percentages) | Net premiums written | Net premiums earned | Losses and loss expenses | Policy benefits | Policy acquisition costs | Administrative expenses | Underwriting income | Net investment income | Net realized gains (losses) | Interest expense | Other (income) expense | Income tax expense | Net income | Loss and loss expense ratio | Policy acquisition cost ratio | Administrative expense ratio | Combined ratio |


Assets Under Management The following presentation and discussion of AUM includes Passive and Active AUM.
Passive AUM includes ETFs, unit investment trusts (UITs), certain non-fee earning leverage and other passive mandates.
Active AUM is total AUM less Passive AUM.
The AUM tables and the discussion below refer to AUM as long-term.
As of December 31, 2017, the company changed the presentation of long-term inflows, outflows and AUM to exclude UITs and product leverage.
Non-management fee earning AUM now includes Invesco PowerShares QQQ, UITs and product leverage.
In the AUM tables below, all periods have been reclassified to conform to the new presentation.
The net flows in non-management fee earning AUM can be relatively short-term in nature and, due to the relatively low revenue yield, these can have a significanimpact on overall net revenue yield.
All periods have been  t reclassified to conform to the new presentation.
Long-term inflows and the underlying reasons for the movements in this line item include investments from new clients, existing clients adding new accounts/funds or contributions/subscriptions into existing accounts/funds,and new funding commitments into private equity funds.
Beginning with the six months ended December 31, 2017, reinvested dividends and capital gains are included in long-term inflows to be consistent with general industry practice.
For previous periods, reinvested dividends and capital gains were included in market gains and losses.
Long-term outflows reflect client redemptions froaccounts/funds and include the return  m of invested capital on the maturity or liquidation of private equity funds.
We present net flows into institutional money market funds separately because shareholders of those funds typically use them as short-term funding vehicles and because their flows are particularly sensitive to short-term interest rate movements.
Changes in AUM were as follows:


| New Sites (Acquired or Constructed) 2010 2009 2008 | Domestic | International-1 |


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) plan specified guidelines.
Under specified conditions, the Company will make contributions to the plans and/or match a percentage of the employee contributions up to certain limits.
Total expense related to the defined contribution plans was $24.9 million, $24.8 million and $18.9 million in the years ended December 31, 2013, 2012 and 2011, respectively.
The Company has a number of defined benefit pension plans and other postretirement employee benefit plans covering eligible salaried and hourly employees and their dependents.
The defined pension benefits provided are primarily based on (i) years of service and (ii) average compensation or a monthly retirement benefit amount.
The Company provides defined benefit pension plans in France, Germany, Ireland, Italy, Japan, Mexico, Monaco, South Korea, Sweden, U. K.  and the U. S.  The other postretirement employee benefit plans, which provide medical and life insurance benefits, are unfunded plans.
All pension and other postretirement employee benefit plans in the U. S.  have been closed to new employees since 1999.
The measurement date for all plans is December 31.
On February 26, 2009, the Companys subsidiary BorgWarner Diversified Transmission Products Inc.  (DTP), entered into a Plant Shutdown Agreement with the United Auto Workers (UAW) for its Muncie, Indiana automotive component plant (the Muncie Plant).
Management subsequently wound-down production activity at the plant, with operations effectively ceased as of March 31, 2009.
The Plant Shutdown Agreement included terms allowing for lump sum payment of the pension obligation for certain participants if funding of the plan exceeded a defined level.
In accordance with these terms, in December 2012, the Company settled a portion of the pension obligation resulting in a non-cash loss of $5.7 million, which was recorded in other expense (income) within the Consolidated Statement of Operations.
On March 24, 2010, the Company finalized its settlement agreement regarding the closure of the Muncie Plant with the Pension Benefit Guaranty Corporation (PBGC) in which the Company agreed to make certain payments directly to the Muncie Plants defined benefit pension plan (the Plan).
In accordance with the settlement agreement, the Company made an initial cash contribution of $23 million for the 2009 Plan year and a cash contribution of $15 million in the year ended December 31, 2011.
During the fourth quarter of 2012, the Company received notification from the PBGC that the terms of the settlement have been suspended pending review of the Companys financial strength under the PBGCs revised enforcement policy pilot program announced on November 2, 2012.
The evaluation was confirmed in January 2013 and as a result the Company currently does not have any obligations as described in the original agreement.


(1) Includes future principal and cash interest payments on long-term borrowings through scheduled maturity dates.
Interest payments for variable rate debt were calculated using interest rates as of December 31, 2014.
Excluded from these amounts are the amortization of debt issuance and other costs related to indebtedness.
(2) Includes future principal and cash interest payments on long-term borrowings through scheduled maturity dates.
Interest on the Senior Notes is calculated using the stated interest rates.
Excluded from these amounts are the amortization of debt issuance and other costs related to indebtedness.
(3) Includes the minimum lease payments for non-cancelable leases of properties and equipment used in our operations.
Additionally, included in these amounts are future minimum lease payments commencing in the fourth quarter of 2016 that relate to a new lease entered into in December 2014 for our future headquarters in Lincolnshire, Illinois.
Also reflected in these amounts is the future expiration of two leases in the first quarter of 2016 for facilities currently in use by us which we plan to consolidate into the new headquarters location and accordingly, these leases will not be renewed.
(4) Represent commitments to return property subject to operating leases to original condition upon lease termination.
Off-Balance Sheet Arrangements We have no off-balance sheet arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
Inflation Inflation has not had a material impact on our operating results.
We generally have been able to pass along price increases to our customers, though certain economic factors and technological advances in recent years have tended to place downward pressure on pricing.
We also have been able to generally offset the effects of inflation on operating costs by continuing to emphasize productivity improvements and by accelerating our overall cash conversion cycle.
There can be no assurances, however, that inflation would not have a material impact on our sales or operating costs in the future.
Commitments and Contingencies The information set forth in Note 14 to the accompanying audited consolidated financial statements included in Part II, Item 8 of this Form 10-K is incorporated herein by reference.
Critical Accounting Policies and Estimates The preparation of financial statements in accordance with GAAP requires management to make use of certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported periods.
We base our estimates on historical experience and on various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources.
Actual results could differ from those estimates.
In Note 1 to the accompanying audited consolidated financial statements, we include a discussion of the significant accounting policies used in the preparation of our consolidated financial statements.
We believe the following are the most critical accounting policies and estimates that include significant judgments used in the preparation of our financial statements.
We consider an accounting policy or estimate to be critical if it requires assumptions to be made that were uncertain at the time they were made, and if changes in these assumptions could have a material impact on our financial condition or results of operations.
Year Ended December 31, 2014 Compared to Year Ended December 31, 2013 Results of operations, in dollars and as a percentage of net sales, for the years ended December 31, 2014 and 2013 are as follows:


| December 31, | (dollars in millions) | Common equity tier 1 capital | Impact of intangibles at 100% | Fully phased-in common equity tier 1 capital-1 | Total capital | Impact of intangibles at 100% | Fully phased-in total capital-1 | Risk-weighted assets | Impact of intangibles - 100% capital deduction | Impact of mortgage servicing assets at 250% risk weight | Fully phased-in risk-weighted assets-1 | Transitional common equity tier 1 capital ratio-2 | Fully phased-in common equity tier 1 capital ratio-1(2) | Transitional total capital ratio-3 | Fully phased-in total capital ratio-1(3) |


Performance Share Awards The vesting of PSAs is contingent upon meeting various individual, divisional or company-wide performance conditions, including revenue generation or growth in revenue, pretax income or earnings per share over a one- to five-year period.
The performance conditions are not considered in the determination of the grant date fair value for these awards.
The fair value of PSAs is based upon the market price of the Aon common stock at the date of grant.
Compensation expense is recognized over the performance period, and in certain cases an additional vesting period, based on management’s estimate of the number of units expected to vest.
Compensation expense is adjusted to reflect the actual number of shares issued at the end of the programs.
The actual issuance of shares may range from 0-200% of the target number of PSAs granted, based on the plan.
Dividend equivalents are not paid on PSAs.
Information regarding PSAs granted during the years ended December 31, 2011, 2010 and 2009 follows (shares in thousands, dollars in millions, except fair value):


During the second quarter of 2016, we redeemed all outstanding shares of our Series A Preferred Stock, therefore we no longer pay Series A Preferred Stock dividends.
See Note 17, Capital Stock, to the consolidated financial statements for additional information.


| Years Ended December 31, | 2014 | (in millions, except per share data) | Income Statement Data: | Total net revenues | Total expenses | Income from continuing operations | Loss from discontinued operations, net of tax | Net income | Less: Net income (loss) attributable to noncontrolling interests | Net income attributable to Ameriprise Financial | Basic | Income from continuing operations | Loss from discontinued operations | Net income | Diluted | Income from continuing operations | Loss from discontinued operations | Net income | Cash Dividends Declared Per Common Share | December 31, | 2014 | (in millions) | Balance Sheet Data: | Investments-1 | Separate account assets | Total assets | Policyholder account balances, future policy benefits and claims | Separate account liabilities | Customer deposits | Long-term debt-1 | Short-term borrowings | Total liabilities | Total Ameriprise Financial, Inc. shareholders’ equity | Noncontrolling interests’ equity |


RELATED STOCKHOLDER MATTERS As a bank holding company, the parent company is a legal entity separate and distinct from its principal banking subsidiary, State Street Bank, and its non-banking subsidiaries.
The right of the parent company to participate as a shareholder in any distribution of assets of State Street Bank upon its liquidation, reorganization or otherwise is subject to the prior claims by creditors of State Street Bank, including obligations for federal funds purchased and securities sold under repurchase agreements and deposit liabilities.
Payment of common stock dividends by State Street Bank is subject to the provisions of Massachusetts banking law, which provide that dividends may be paid out of net profits provided (i) capital stock and surplus remain unimpaired, (ii) dividend and retirement fund requirements of any preferred stock have been met, (iii) surplus equals or exceeds capital stock, and (iv) losses and bad debts, as defined, in excess of reserves specifically established for such losses and bad debts, have been deducted from net profits.
Under the Federal Reserve Act and Massachusetts state law, regulatory approval of the Federal Reserve and the Massachusetts Division of Banks would be required if dividends declared by State Street Bank in any year exceeded the total of its net profits for that year combined with its retained net profits for the preceding two years, less any required transfers to surplus.
In 2011, the parent company declared aggregate common stock dividends of $0.72 per share, or approximately $358 million.
In 2010, the parent company declared aggregate common stock dividends of $0.04 per share, or $20 million.
The 2011 common stock dividends represented the first increase in our common stock dividend since we announced a reduction of such dividends in the first quarter of 2009.
The prior approval of the Federal Reserve is required for us to pay future common stock dividends.
Information about dividends from the parent company and from our subsidiary banks is provided under CapitalRegulatory Capital in Managements Discussion and Analysis, included under Item 7, and in note 15 to the consolidated financial statements included under Item 8, and is incorporated herein by reference.
Future dividend payments of State Street Bank and other non-banking subsidiaries cannot be determined at this time.
As of December 31, 2011, the parent company had $500 million outstanding in aggregate liquidation preference of its series A preferred stock.
Holders of shares of the preferred stock are entitled to receive noncumulative cash dividends, only when, as and if declared by the parent companys Board of Directors.
Any dividends on the preferred stock are calculated at a rate per annum equal to the three-month LIBOR for the relevant three-month period plus 4.99%, with such dividend rate applied to the outstanding liquidation preference


| 2011 2010 2009 | (in millions) | Balance at January 1 | Additions based on tax positions related to the current year | Additions for tax positions of prior years | Reductions for tax positions of prior years | Settlements | Balance at December 31 |


The increase in total revenue compared to 2009 was driven primarily by fee revenue, partly offset by net losses related to investment securities in 2010, which included a net sale loss related to a repositioning of the investment portfolio.
The 18% increase in servicing fees from 2009 primarily resulted from the impact of new business awarded to us and installed during 2010 and prior periods on current-period revenue, the addition of revenue generated by the acquired Intesa and MIFA businesses from May 17 and April 1, respectively, through December 31, and increases in daily average equity market valuations.
Approximately 41% of our servicing fees were generated outside the U. S.  in 2010, compared with 37% in 2009.
Assets under custody and administration were $21.53 trillion, compared to $18.79 trillion in 2009, with the increase from 2009 primarily the result of increases in equity market valuations and a higher level of new servicing business won and installed prior to December 31, 2010, as well as the effects of the Intesa and MIFA acquisitions.
Management fees increased 8% from 2009 to 2010, primarily from the impact of increases in average month-end equity market valuations and, to a lesser extent, the impact of new business won and installed in prior periods on current-period revenue.
Approximately 34% of our management fees were generated outside the U. S.  in 2010, down from 36% in 2009.
Assets under management increased to $2.01 trillion at December 31, 2010, up $59 billion from $1.95 trillion a year earlier.
Trading services revenue increased 1% primarily as a result of higher electronic trading volumes, partly offset by a decrease in foreign exchange trading revenue as a result of lower spreads on foreign exchange trades and a decline in currency volatility, partly offset by higher client volumes.
Securities finance revenue was down 44% as a result of lower spreads across all lending programs.
Processing fees and other revenue increased 104% due to higher net revenue from structured products, including fees from our tax-exempt investment program, and higher net revenue related to certain tax-advantaged investments.
Net interest revenue increased primarily as a result of the impact of a higher portfolio allocation to fixedrate investment securities, U. S.  and non-U.
S.  investment portfolio growth, and the impact of the deposits added in May 2010 in connection with the acquisition of the Intesa securities services business, partly offset by lower spreads on both floating-rate investment securities and non-U.
S.  transaction deposits.
We recorded net realized losses of $55 million from sales of investment securities and, separately, losses from other-than-temporary impairment related to credit of $231 million for 2010, compared to net sale gains of $368 million and losses from other-than-temporary impairment related to credit of $227 million for 2009.
In December 2010, we undertook a repositioning of our investment securities portfolio by selling approximately


| (in 000s) | Less Than | Total | Debt | Long-term obligation to government | Acquisition payments | Pension obligation assumed | Capital lease obligation | Operating leases | Total contractual cash obligations |


| 2013 2012 | December 31, (in millions) | U.S. GAAP nettable derivative payables | Interest rate contracts: | OTC(a) | OTC–cleared | Exchange traded(b) | Total interest rate contracts | Credit contracts: | OTC | OTC–cleared | Total credit contracts | Foreign exchange contracts: | OTC(a) | OTC–cleared | Exchange traded(b) | Total foreign exchange contracts | Equity contracts: | OTC(a) | OTC–cleared | Exchange traded(b) | Total equity contracts | Commodity contracts: | OTC(a) | OTC–cleared | Exchange traded(b) | Total commodity contracts | Derivative payables with appropriate legal opinions | Derivative payables where an appropriate legal opinion has not been either sought or obtained | Total derivative payables recognized on the Consolidated Balance Sheets |


| Years ended December 31, 2010 2009 2008 | Revenue | Operating income | Operating margin |


insurance arrangement.
As a result of the adoption of this new guidance, the Company recorded a liabilityrepresenting the actuarial present value of the future death benefits as of the employees’ expected retirement dateof $45 million with the offset reflected as a cumulative-effect adjustment to January 1, 2008 Retained earningsand Accumulated other comprehensive income (loss) in the amounts of $4 million and $41 million, respectively,in the Company’s consolidated statement of stockholders’ equity.
It is currently expected that minimal, if any,further cash paymentswill be required to fund these policies.
The net periodic cost for these split-dollar life insurance arrangements was $6 million in both the years endedDecember 31, 2009 and 2008.
The Company has recorded a liability representing the actuarial present value ofthe future death benefits as of the employees’ expected retirement date of $48 million and $47 million as ofDecember 31, 2009 and December 31, 2008, respectively.
Defined Contribution PlanThe Company and certain subsidiaries have various defined contribution plans, in which all eligibleemployees participate.
In the U. S. , the 401(k) plan is a contributory plan.
Matching contributions are based uponthe amount of the employees’ contributions.
Effective January 1, 2005, newly hired employees have a highermaximum matching contribution at 4% on the first 5% of employee contributions, compared to 3% on the first6% of employee contributions for employees hired prior to January 2005.
Effective January 1, 2009, theCompany temporarily suspended all matching contributions to the Motorola 401(k) plan.
The Company’sexpenses, primarily relating to the employer match, for all defined contribution plans, for the years endedDecember 31, 2009, 2008 and 2007 were $8 million, $95 million and $116 million, respectively.8.
Share-Based Compensation Plans and Other Incentive PlansStock Options, Stock Appreciation Rights and Employee Stock Purchase PlanThe Company grants options to acquire shares of common stock to certain employees, and existing optionholders in connection with the merging of option plans following an acquisition.
Each option granted and stockappreciation right has an exercise price of no less than 100% of the fair market value of the common stock onthe date of the grant.
The awards have a contractual life of five to ten years and vest over two to four years.
Stock options and stock appreciation rights assumed or replaced with comparable stock options or stockappreciation rights in conjunction with a change in control only become exercisable if the holder is alsoinvoluntarily terminated (for a reason other than cause) or quits for good reason within 24 months of a change incontrol.
The employee stock purchase plan allows eligible participants to purchase shares of the Company’s commonstock through payroll deductions of up to 10% of eligible compensation on an after-tax basis.
Plan participantscannot purchase more than $25,000 of stock in any calendar year.
The price an employee pays per share is 85%of the lower of the fair market value of the Company’s stock on the close of the first trading day or last tradingday of the purchase period.
The plan has two purchase periods, the first one from October 1 through March 31and the second one from April 1 through September 30.
For the years ended December 31, 2009, 2008 and2007, employees purchased 29.4 million, 18.9 million and 10.2 million shares, respectively, at purchase prices of$3.60 and $3.68, $7.91 and $6.07, and $14.93 and $15.02, respectively.
The Company calculates the value of each employee stock option, estimated on the date of grant, using theBlack-Scholes option pricing model.
The weighted-average estimated fair value of employee stock options grantedduring 2009, 2008 and 2007 was $2.78, $3.47 and $5.95, respectively, using the following weighted-averageassumptions:


| December 31, | 2013 | (in billions) | Assets Under Management and Administration | Advice & Wealth Management AUM | Asset Management AUM | Corporate & Other AUM | Eliminations | Total Assets Under Management | Total Assets Under Administration | Total AUM and AUA |


| (in millions) Phosphates Potash Mosaic Fertilizantes Corporate,Eliminationsand Other (a) Total | Year Ended December 31, 2018 | Net sales to external customers | Intersegment net sales | Net sales | Gross margin | Canadian resource taxes | Gross margin (excluding Canadian resource taxes) | Operating earnings | Capital expenditures | Depreciation, depletion and amortization expense | Equity in net earnings (loss) of nonconsolidated companies | Year Ended December 31, 2017 | Net sales to external customers | Intersegment net sales | Net sales | Gross margin | Canadian resource taxes | Gross margin (excluding Canadian resource taxes) | Operating earnings | Capital expenditures | Depreciation, depletion and amortization expense | Equity in net earnings (loss) of nonconsolidated companies | Year Ended December 31, 2016 | Net sales to external customers | Intersegment net sales | Net sales | Gross margin | Canadian resource taxes | Gross margin (excluding Canadian resource taxes) | Operating earnings | Capital expenditures | Depreciation, depletion and amortization expense | Equity in net earnings (loss) of nonconsolidated companies | Total assets as of December 31, 2018 | Total assets as of December 31, 2017 | Total assets as of December 31, 2016 |


| In millions of dollars 2016 2015 2014 | Net cash provided by (used in): | Operating activities | Investing activities | Financing activities | Effect of exchange rate changes on cash and cash equivalents | Decrease in cash and cash equivalents |


| Payments Due During the Year Ending December 31, Debt Leases Purchase Obligations Total | 2012 | 2013 | 2014 | 2015 | 2016 | Thereafter | $2,282,123 |


| As of December 31, 2016 | $ in millions | Cash and cash equivalents | Fund investments | Equity securities | Government debt securities | Other assets | Guaranteed investment contracts | Total |


| (dollars in 000s) | Year Ended April 30, | Average servicing portfolio: | With related MSRs | Without related MSRs | $67,184,916 | Ending servicing portfolio: | With related MSRs | Without related MSRs | $66,997,049 | Number of loans serviced | Average delinquency rate | Weighted average FICO score | WAC of portfolio | Carrying value of MSRs |


| Payments(Receipts) (In Millions) | Entergy Arkansas | Entergy Gulf States Louisiana | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas |


| Amount | 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter |


| Year Ended December 31, | 2014 | Non-cash investing and financing activities: | Settlement of bankruptcy obligations | Capital lease obligations | Supplemental information: | Interest paid, net of amounts capitalized | Income taxes paid |


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


| (in millions) Salaries & Employee Benefits Occupancy & Equipment Other Total | Reserve balance as of January 1, 2012 | Additions | Reversals | Utilization | Reserve balance as of December 31, 2012 | Additions | Reversals | Utilization | Reserve balance as of December 31, 2013 | Additions | Reversals | Utilization | Reserve balance as of December 31, 2014 |


| Years ended | September 25, 2010 | 2.00% accrued interest | Amortization of debt discount | Amortization of deferred financing costs | Non-cash interest expense | $111,722 |


Contractual Commitments We have contractual obligations and commitments in the form of capital leases, operating leases, debt obligations, purchase commitments, and certain other liabilities.
We intend to satisfy these obligations through the use of cash flow from operations.
The following table summarizes the expected cash outflow to satisfy our contractual obligations and commitments as of December 31, 2010 (in millions):


Determining Fair Value Valuation and Amortization Method.
We estimate the fair value of stock options granted using a lattice binomial model and a multiple option award approach.
Our stock options have various restrictions, including vesting provisions and restrictions on transfer, and are often exercised prior to their contractual maturity.
We believe that lattice binomial models are more capable of incorporating the features of our stock options than closed-form models such as the Black Scholes model.
The use of a lattice binomial model requires the use of extensive actual employee exercise behavior and a number of complex assumptions including the expected volatility of our stock price over the term of the options, riskfree interest rates and expected dividends.
We amortize the fair value of options on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods.
We value restricted stock units using the intrinsic value method.
We amortize the value of restricted stock units on a straight-line basis over the restriction period.
Expected Term .
The expected term of options granted represents the period of time that they are expected to be outstanding and is a derived output of the lattice binomial model.
The expected term of stock options is impacted by all of the underlying assumptions and calibration of our model.
The lattice binomial model assumes that option exercise behavior is a function of the options remaining vested life and the extent to which the market price of our common stock exceeds the option exercise price.
The lattice binomial model estimates the probability of exercise as a function of these two variables based on the history of exercises and cancellations on all past option grants made by us.
Expected Volatility .
We estimate the volatility of our common stock at the date of grant based on the implied volatility of one-year and two-year publicly traded options on our common stock.
Our decision to use implied volatility was based upon the availability of actively traded options on our common stock and our assessment that implied volatility is more representative of future stock price trends than historical volatility.
Risk-Free Interest Rate.
We base the risk-free interest rate that we use in our option valuation model on the implied yield in effect at the time of option grant on constant maturity U. S.  Treasury issues with equivalent remaining terms.
The fair value of acquired Property, plant and equipment, primarily network-related assets, was valued under the replacement cost method, which determines fair value based on the replacement cost of new property with similar capacity, adjusted for physical deterioration over the remaining useful life.
Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from the other assets acquired that could not be individually identified and separately recognized.
Goodwill is not deductible for tax purposes.
Pro Forma Financial Information The following table presents the unaudited pro forma combined results of operations of the Company and GDCL for the years ended December 31, 2016 and December 31, 2015 as if the acquisition of GDCL had occurred on January 1, 2016 and January 1, 2015, respectively, (in millions, except per share amounts):


| Years Ended December 31, | 2009 | (In millions) | Operating Revenues | Premiums | Universal life and investment-type product policy fees | Net investment income | Other revenues | Total operating revenues | Operating Expenses | Policyholder benefits and claims and policyholder dividends | Interest credited to policyholder account balances | Capitalization of DAC | Amortization of DAC and VOBA | Interest expense | Other expenses | Total operating expenses | Provision for income tax expense (benefit) | Operating earnings |


The company estimates that a 10 percent appreciation in the underlying currencies being hedged from their levels against the U. S.  dollar, with all other variables held constant, would decrease the fair value of foreign exchange forward contracts by $526 million at December 31, 2012.
If realized, this appreciation would negatively affect earnings over the remaining life of the contacts.
A 10 percent appreciation is believed to be a reasonably possible near-term change in foreign currencies.


| SPP Total Portfolio | 2014 | Rental revenues | Tenant recoveries | Totalsegmentrevenues | Operating expenses | NOI | Straight-line rents | Amortization of market lease intangibles, net | Lease termination fees | Adjusted NOI | Adjusted NOI % change | Property count | Average occupancy | Average occupied sq. ft. | Average annual totalsegmentrevenues per occupied sq. ft. | Average annual rental revenues per occupied sq. ft. |


tissue pulp due to strong market demand, particularly from Asia.
Average sales price realizations improved significantly in 2007, principally reflecting higher average prices for softwood, hardwood and fluff pulp.
Operating earnings in 2007 were $104 million compared with $48 million in 2006 and $37 million in 2005.
The benefits from higher sales price realizations were partially offset by increased input costs for energy, chemicals and freight.
Entering the first quarter of 2008, demand for market pulp remains strong, and average sales price realizations should increase slightly.
However, input costs for energy, chemicals and freight are expected to be higher, and increased spending is anticipated for planned mill maintenance outages.
Industrial Packaging Demand for Industrial Packaging products is closely correlated with non-durable industrial goods production, as well as with demand for processed foods, poultry, meat and agricultural products.
In addition to prices and volumes, major factors affecting the profitability of Industrial Packaging are raw material and energy costs, freight costs, manufacturing efficiency and product mix.
INDUSTRIAL PACKAGING net sales for 2007 increased 6% to $5.2 billion compared with $4.9 billion in 2006, and 13% compared with $4.6 billion in 2005.
Operating profits in 2007 were 26% higher than in 2006 and more than double 2005 earnings.
Benefits from improved price realizations ($147 million), sales volume increases net of increased lack of order downtime ($3 million), a more favorable mix ($31 million), strong mill and converting operations ($33 million) and other costs ($47 million) were partially offset by the effects of higher raw material costs ($76 million) and higher freight costs ($18 million).
In addition, a gain of $13 million was recognized in 2006 related to a sale of property in Spain and costs of $52 million were incurred in 2007 related to the conversion of the paper machine at Pensacola to production of lightweight linerboard.
The segment took 165,000 tons of downtime in 2007 which included 16,000 tons of market-related downtime compared with 135,000 tons of downtime in 2006 of which none was market-related.


Note 8.
Equity Method Investments Investments accounted for under the equity method consist primarily of the following: ?45% interest in Atlantic Methanol Production Company, LLC (AMPCO), which owns and operates a methanol plant and related facilities in Equatorial Guinea; ?28% interest in Alba Plant LLC (Alba Plant), which owns and operates a liquefied petroleum gas processing plant in Equatorial Guinea; and ?50% interest in CONE Gathering LLC (CONE), which owns and operates natural gas gathering facilities servicing our joint venture properties in the Marcellus Shale.
Equity method investments are included in other noncurrent assets in the consolidated balance sheets, and our share of earnings is reported as income from equity method investees in the consolidated statements of operations.
Our share of income taxes incurred directly by the equity method investees is reported in income from equity method investees and is not included in our income tax provision in our consolidated statements of operations.
At December 31, 2012, our retained earnings included $111 million related to the undistributed earnings of equity method investees.
The carrying value of our AMPCO investment was $10 million higher than the underlying net assets of the investee at December 31, 2012.
The difference is related to capitalized interest which is being amortized into earnings over the remaining useful life of the plant.
Equity method investments are as follows:


| 2007 2006 2005 | Weighted-average assumptions used to determine benefit obligations at December 31: | Discount rate | Rate of compensation increase | – Con Edison of New York | – O&R | Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31: | Discount rate | Expected return on plan assets | Rate of compensation increase | – Con Edison of New York | – O&R |


| Natural Gas and Casinghead Gas (Bcf) | United States | Proved reserves as of: | December 31, 2005 | Revisions of previous estimates-2 | Extensions, discoveries and other additions-3 | Purchase of minerals in place-4 | Sale of minerals in place-5 | Production | December 31, 2006 | Revisions of previous estimates-6 | Extensions, discoveries and other additions-7 | Purchase of minerals in place | Sale of minerals in place | Production | December 31, 2007 | Revisions of previous estimates-8 | Extensions, discoveries and other additions-9 | Purchase of minerals in place-10 | Sale of minerals in place | Production | December 31, 2008 | Proved developed reserves as of: | December 31, 2005 | December 31, 2006 | December 31, 2007 | December 31, 2008 |


| North America Europe,Middle East& Africa Asia Pacific South America Total | Electrical/Electronic Architecture | Powertrain Systems | Electronics and Safety | Total | September 30, 2010 | Carrying Amount | (in 000’s) | Financial Assets: | Bank Loans, Net | Financial Liabilities: | Bank Deposits | Other Borrowings | Corporate Debt | As of September 30, | 2010 | AggregateAssets | (in 000’s) | LIHTC Funds | Other Real Estate Limited Partnerships and LLCs | Total | Year Ended September 30, | 2010 | Revenues: | Securities Commissions and Fees | Interest | Financial Service Fees | Other | Total Revenues | Interest Expense | Net Revenues | Non-Interest Expenses: | Sales Commissions | Admin & Incentive Comp and Benefit Costs | Communications and Information Processing | Occupancy and Equipment | Business Development | Clearance and Other | Total Non-Interest Expenses | Income Before Taxes and Including Noncontrolling Interests | Noncontrolling Interests | Pre-tax Income Excluding Noncontrolling Interests | Margin on Net Revenues |


| Consolidated Statement of Income Data: Years Ended June 30 | (In thousands, except per share data) | Net revenues | Cost of sales | Product recall expenses | Gross profit | Selling, general and administrative expenses | Research and development expenses | Donations to research foundations | In-process research and development charge | Amortization of acquired intangible assets | Restructuring expenses | Total operating expenses | Income from operations | Other income (expenses): | Interest income (expense), net | Other, net | Total other income (expenses) | Income before income taxes | Income taxes | Net income | Basic earnings per share | Diluted earnings per share | Weighted average: | Basic shares outstanding | Diluted shares outstanding |


The Companys long-term debt, net of current portion, is comprised of: ?
$250 million of 8% Senior Notes Due 2027 ?
$100 million of 7 1/4% Notes Due 2097 ?
$100 million of 7 1/4% Notes Due 2023 ?
$380 million on the $400 million credit facility based upon a Eurodollar rate plus a range of 60 to 145 basis points depending upon the percentage of utilization and credit rating, maturing in 2006.
The interest rate at December 31, 2002 was 2.47 percent.
The interest rate at December 31, 2001 was 3.0 percent.  ?
$125 million of 8.95% Series A-2 Notes on the AMCCO debt, payable in 2004.
There was no AMCCO debt on the Companys balance sheet at December 31, 2001.  ?
$20.4 million on the Israel debt based upon the London Interbank Offering Rate (LIBOR) plus 75 basis points, payable in 2004.
The interest rate at December 31, 2002 was 2.18 percent.
There was no outstanding Israel debt at December 31, 2001.  ?
$7.9 million of the 6.25% Aspect acquisition note, payable in 2004 ?
($6.2) million unamortized discount The Company entered into a new $400 million five-year credit agreement on November 30, 2001 with certain commercial lending institutions which exposes the Company to the risk of earnings or cash flow loss due to changes in market interest rates.
The interest rate is based upon a Eurodollar rate plus a range of 60 to 145 basis points depending upon the percentage of utilization and credit rating.
At December 31, 2002, there was $380 million borrowed against this credit agreement, which has a maturity date of November 30, 2006.
For more information, see Item 8.
Financial Statements and Supplementary Data--Note 3 - Debt of this Form 10-K.
The Company also entered into a new $200 million 364-day credit agreement on November 27, 2002 with certain commercial lending institutions which exposes the Company to the risk of earnings or cash flow loss due to changes in market interest rates.
The interest rate is based upon a Eurodollar rate plus a range of 62.5 to 150 basis points depending upon the percentage of utilization and credit rating.
At December 31, 2002, there were no amounts outstanding under this credit agreement.
The agreement has a maturity date of November 26, 2003 for the revolving commitment and a maturity date of November 25, 2004 for the term commitment that includes any balance remaining after the revolving commitment matures.
For more information, see Item 8.
Financial Statements and Supplementary Data--Note 3 - Debt of this Form 10-K.  Financial covenants on both the $400 million and $200 million credit facilities include the following: (a) the ratio of Earnings Before Interest, Taxes, Depreciation and Exploration Expense (EBITDAX) to total interest expense for any consecutive period of four fiscal quarters ending on the last day of a fiscal quarter may not be less than 4.0 to 1.0; (b) the total debt to capitalization ratio, expressed as a percentage, may not exceed 60 percent at any time; and (c) the total asset value of the Companys restricted subsidiaries may not be less than $800 million at any time.


Securities Lending The Company participates in securities lending programs whereby blocks of securities, which are included in fixed maturity securities, and short-term investments are loaned to third parties, primarily major brokerage firms and commercial banks.
The Company generally requires collateral equal to 102% of the current estimated fair value of the loaned securities to be obtained at the inception of a loan, and maintained at a level greater than or equal to 100% for the duration of the loan.
During the extraordinary market events occurring in the fourth quarter of 2008, the Company, in limited instances, accepted collateral less than 102% at the inception of certain loans, but never less than 100%, of the estimated fair value of such loaned securities.
These loans involved U. S.  Government Treasury Bills which are considered to have limited variation in their estimated fair value during the term of the loan.
Securities with a cost or amortized cost of $20.8 billion and $41.1 billion and an estimated fair value of $22.9 billion and $42.1 billion were on loan under the program at December 31, 2008 and 2007, respectively.
Securities loaned under such transactions may be sold or repledged by the transferee.
The Company was liable for cash collateral under its control of $23.3 billion and $43.3 billion at December 31, 2008 and 2007, respectively.
Of this $23.3 billion of cash collateral at December 31, 2008, $5.1 billion was on open terms, meaning that the related loaned security could be returned to the Company on the next business day requiring return of cash collateral and $14.7 billion and $3.5 billion, respectively were due within 30 days and 60 days.
The estimated fair value of the securities related to the cash collateral on open at


| Year Ended  December 28,  2003 Year Ended  December 29,  2002 Change | (In thousands) | Cost of product and service revenue |


| Change | 2010 | Medical Membership: | Government segment: | Medicare Advantage | Medicare Advantage ASO | Total Medicare Advantage | Medicare stand-alone PDP | Total Medicare | Military services | Military services ASO | Total military services | Medicaid | Total Government | Commercial segment: | Fully-insured | ASO | Total Commercial | Total medical membership | Specialty Membership: | Commercial segment (a) |


| At December 31, | 2011 | (dollar amounts in millions) | Total risk-weighted assets | Bank | Tier 1 risk-based capital | Bank | Tier 2 risk-based capital | Bank | Total risk-based capital | Bank | Tier 1 leverage ratio | Bank | Tier 1 risk-based capital ratio | Bank | Total risk-based capital ratio | Bank |


REPUBLIC SERVICES, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) The letters of credit use $909.4 million and $950.2 million as of December 31, 2012 and 2011, respectively, of availability under our Credit Facilities.
Surety bonds expire on various dates through 2026.
These financial instruments are issued in the normal course of business and are not debt.
Because we currently have no liability for this financial assurance, it is not reflected in our consolidated balance sheets.
However, we have recorded capping, closure and post-closure obligations and self-insurance reserves as they are incurred.
The underlying financial assurance obligations, in excess of those already reflected in our consolidated balance sheets, would be recorded if it is probable that we would be unable to fulfill our related obligations.
We do not expect this to occur.
Our restricted cash and marketable securities deposits include, among other things, restricted cash and marketable securities held for capital expenditures under certain debt facilities, and restricted cash and marketable securities pledged to regulatory agencies and governmental entities as financial guarantees of our performance related to our final capping, closure and post-closure obligations at our landfills.
The following table summarizes our restricted cash and marketable securities as of December 31:


| 2014 2013 2012 | Cash, cash equivalents and marketable securities | Property, plant and equipment, net | Long-term debt | Working capital | Cash generated by operating activities | Cash used in investing activities | Cash used in financing activities |


| (in millions) 2018 2017 2016 | Total share repurchases, including CCAR capital plan repurchases | Purchase price of shares repurchased and retired-1 | CCAR capital plan repurchases | Other authorized repurchases | Total shares repurchased |


| At or for the year ended December 31 | Dollars in millions, except as noted | BALANCESHEETHIGHLIGHTS | Assets | Loans (a) | Allowance for loan and lease losses | Interest-earning deposits with banks (b) | Investment securities | Loans held for sale (a) | Equity investments (c) | Mortgage servicing rights | Goodwill | Other assets (a) | Noninterest-bearing deposits | Interest-bearing deposits | Total deposits | Borrowed funds (a) (d) | Total shareholders’ equity | Common shareholders’ equity | Accumulated other comprehensive income (loss) | CLIENTINVESTMENTASSETS(billions) | Discretionary client assets under management | Nondiscretionary client assets under administration | Total client assets under administration (e) | Brokerage account client assets | Total | SELECTEDRATIOS | Net interest margin (f) | Noninterest income to total revenue | Efficiency | Return on | Average common shareholders’ equity | Average assets | Loans to deposits | Dividend payout | Transitional Basel III common equity Tier 1 capital ratio (g) (h) (i) | Transitional Basel III Tier 1 risk-based capital ratio (g) (h) (i) | Pro forma fullyphased-inBasel III common equity Tier 1 capital ratio (Non-GAAP)(h) (i) (j) | Basel I Tier 1 common capital ratio (i) | Basel I Tier 1 risk-based capital ratio (i) | Common shareholders’ equity to total assets | Average common shareholders’ equity to average assets | SELECTEDSTATISTICS | Employees | Retail Banking branches | ATMs | Residential mortgage servicing portfolio – Serviced for Third Parties (in billions) | Commercial loan servicing portfolio – Serviced for PNC and Others (inbillions) |


| Year Ended December 31, | 2006 | (in thousands) | Consolidated Cash Flow Data: | Net cash provided by (used in): | Operating activities | Investing activities | Financing activities | Effect of exchange rates on cash and cash equivalents | Net increase (decrease) in cash and cash equivalents |


| (Dollars in millions) 2015 2014 2013 | Interest rate risk on mortgage banking income-1 | Credit risk on loans-2 | Interest rate and foreign currency risk on ALM activities-3 | Price risk on restricted stock awards-4 | Other |