Life Insurance Companies Key Insurance Risks Our Individual Retirement, Group Retirement, Life Insurance and Institutional Markets businesses manage risk through product design, experience monitoring, pricing actions, risk limitations, reinsurance and active monitoring and management of the relationships between assets and liabilities, including hedging.
For our Individual and Group Retirement and Life Insurance products offered by the Life Insurance Companies, key insurance risks include the following: ?
Mortality risk – represents the risk of loss arising from actual mortality rates being higher than expected mortality rates.
This risk could arise from pandemics or other events, including longer-term societal changes that cause higher than expected mortality.
This risk exists in a number of our product lines, but is most significant for our life insurance products.  ?
Longevity risk – represents the risk of a change in value of a policy or benefit as a result of actual mortality rates being lower than the expected mortality rates.
This risk could arise from longer-term societal health changes as well as other factors.
This risk exists in a number of our product lines but is most significant for our retirement, institutional and annuity products.  ?
Policyholder behavior risk including surrender/lapse risk – represents the risk that actual policyholder behavior differs from expected behavior in a manner that has an adverse effect on our results of operations.
There are many assumptions made when products are sold, including how long the contracts will persist.
Actual experience can vary significantly from these assumptions.
This risk is impacted by a number of factors including changes in market conditions, especially interest rate and equity market changes, tax law, regulations and policyholder preferences.
This risk exists in the majority of our product lines.  ?
Interest rate risk – represents the potential for loss due to a change in interest rates.
Interest rate risk is measured with respect to assets, liabilities (both insurance-related and financial) and derivatives.
This risk manifests itself when interest rates move significantly in a short period of time.
Rapidly rising interest rates create the potential for increased surrenders.
Interest rate risk
Group Retirement Group Retirement competes in the defined contribution market under its VALIC brand.
VALIC is a leading retirement plan provider in the U. S.  for K-12 schools and school districts, higher education, healthcare, government and other not-for-profit institutions.
The defined contribution market is a highly efficient and competitive market that requires support for both plan sponsors and individual participants.
To meet this challenge, VALIC is investing in a client-focused technology platform to support improved compliance and self-service functionality.
VALIC’s service model pairs self-service tools with its career financial advisors who provide individual plan participants with enrollment support and comprehensive financial planning services.
Changes in the interest rate environment have a significant impact on sales, surrender rates, investment returns, guaranteed income features, and spreads in the annuity industry.
See AIG’s Outlook –Industry and Economic Factors - Changes in the Interest Rate Environment for additional discussion of the impact of market interest rate movement on our Group Retirement business.
Group Retirement provides products and services to certain employee benefit plans that are subject to the requirements of the DOL Fiduciary Rule.
For additional information on the DOL Fiduciary Rule, including the recent decision by the new administration to request a further review of the DOL Fiduciary Rule, see Part I, Item 1.  Business – Regulation.
Life Insurance Consumers have increased needs for financial protection for beneficiaries, estate planning and wealth creation.
Life Insurance addresses the need for protection against the risk of premature death through a broad spectrum of products that include both term and permanent life insurance.
In addition, Life Insurance offers products and benefits that offset other risks such as chronic and critical illness.
In response to a sustained low interest rate environment, Life Insurance has been actively re-pricing products and shifting its focus away from products with long-duration interest rate guarantees by introducing new products with shorter guarantees as well as indexed universal life products.
See AIG’s Outlook –Industry and Economic Factors - Changes in the Interest Rate Environment for additional discussion of the impact of market interest rate movement on our Life Insurance business.
Personal Insurance The need for full life cycle products and coverage, increases in personal wealth accumulation, and awareness of insurance protection and risk management continue to support the growth of the Personal Insurance industry.
Personal Insurance focuses on group and corporate clients, together with individual customers within national markets.
We expect the demand for multinational cross-border coverage and services to increase due to the internationalization of clients and customers.
We believe our global presence provides Personal Insurance a distinct competitive advantage.
In Japan, the competition for auto insurance has intensified, in part driven by a decline in new car sales and the existence of fewer but larger insurers.
In addition, the overall market size in homeowners insurance contracted after the duration restriction on long-term fire insurance became effective in October 2015.
In the U. S. , we compete in the high net worth market and will continue to expand our innovative products and services to distribution partners and clients.
Outside of Japan and the U. S. , our Personal Insurance module continues to invest selectively in markets, which we believe have higher potential for sustainable profitability.


Investment Activities Investment activities in 2009 were down significantly from 2008 reflecting reduced capital spending and no significant acquisitions.
Capital spending for continuing operations was $534 million in 2009, or 36% of depreciation and amortization, compared with $1.0 billion in 2008, or 74% of depreciation and amortization, and $1.3 billion, or 119% of depreciation and amortization in 2007.
The following table shows capital spending for continuing operations by business segment for the years ended December 31, 2009, 2008 and 2007.


| (In millions) CapitalLeaseObligations Operating Lease Obligations | 2005 | 2006 | 2007 | 2008 | 2009 | Later years | Sublease rentals | Total minimum lease payments | Less imputed interest costs | Present value of net minimum lease payments included in long-term debt |


| In millions of dollars 2008 2007 2006 % Change 2008 vs. 2007 % Change 2007 vs. 2006 | Net interest revenue | Non-interest revenue | Revenues, net of interest expense | Operating expenses | Provisions for loan losses and for benefits and claims | Income before taxes and minority interest | Income taxes | Minority interest, net of taxes | Net income | Revenues, net of interest expense, by region: | North America | EMEA | Latin America | Asia | Total revenues | Net income (loss) by region: | North America | EMEA | Latin America | Asia | Total net income | Average assets(in billions of dollars) | Return on assets | Key indicators(in billions of dollars) | Average loans | Purchase sales | Open accounts |


Net Sales Net sales increased by $44.5 million, or 1.9%, for the year ended December 31, 2008 from the year ended December 31, 2007.
Net sales increased primarily due to increased sales prices of corrugated products and containerboard ($111.0 million), partially offset by the impact of lower sales volume ($66.5 million).
Total corrugated products volume sold decreased 2.9% to 30.3 billion square feet in 2008 compared to 31.2 billion square feet in 2007.
On a comparable shipment-per-workday basis, corrugated products sales volume decreased 3.3% in 2008 from 2007.
Shipments-per-workday is calculated by dividing our total corrugated products volume during the year by the number of workdays within the year.
The larger percentage decrease on a shipment-per-workday basis was due to the fact that 2008 had one more workday (252 days), those days not falling on a weekend or holiday, than 2007 (251 days).
Containerboard sales volume to external


| December 31, | 2010 | (Dollars in thousands) | Commercial loans: | Software | Hardware | Venture capital/private equity | Life science | Premium wine | Other | Total commercial loans | Consumer loans | Total |


| Year Ended December 31, | 2014 | Foreign currency transaction losses, net | Debt extinguishment expense, net | Other, net | $65,187 |


On November 2, 2018, the Board declared a cash dividend of $0.50 per share that was paid on January 25, 2019 to stockholders of record on December 31, 2018, for an aggregate amount of $68 million.
Declaration and payment of future quarterly dividends is at the discretion of our Board and may be adjusted as business needs or market conditions change.
In February 2019, the Board declared a cash dividend of $0.55 per share payable on April 26, 2019 to stockholders of record on March 29, 2019.


| Year-ended | Millions | Net sales | Income from operations, before income tax | Net gain from separation and merger of commodity chemicals business | Income tax expense | Income from discontinued operations, net of tax | Less: Net income attributable to non-controlling interests, discontinued operations | Net income from discontinued operations (attributable to PPG) | Year Ended December | (In thousands) | Depreciation and amortization | Capital expenditures | Impairment of goodwill |


(a) Includes 3,385, 2,851, 2,955, 2,043 and 462 mdths for 2010, 2009, 2008, 2007 and 2006 respectively, which are also reflected in firm transportation and othe
Part I Item 1 Entergy Corporation, Utility operating companies, and System Energy 196 Louisiana parishes in which it holds non-exclusive franchises.
Entergy Louisiana's electric franchises expire during 2009-2036.
Entergy Mississippi has received from the MPSC certificates of public convenience and necessity to provide electric service to areas within 45 counties, including a number of municipalities, in western Mississippi.
Under Mississippi statutory law, such certificates are exclusive.
Entergy Mississippi may continue to serve in such municipalities upon payment of a statutory franchise fee, regardless of whether an original municipal franchise is still in existence.
Entergy New Orleans provides electric and gas service in the City of New Orleans pursuant to city ordinances (except electric service in Algiers, which is provided by Entergy Louisiana).
These ordinances contain a continuing option for the City of New Orleans to purchase Entergy New Orleans' electric and gas utility properties.
Entergy Texas holds a certificate of convenience and necessity from the PUCT to provide electric service to areas within approximately 24 counties in eastern Texas, and holds non-exclusive franchises to provide electric service in approximately 65 incorporated municipalities.
Entergy Texas typically is granted 50-year franchises.
Entergy Texas' electric franchises expire during 2009-2045.
The business of System Energy is limited to wholesale power sales.
It has no distribution franchises.
Property and Other Generation Resources Generating Stations The total capability of the generating stations owned and leased by the Utility operating companies and System Energy as of December 31, 2008, is indicated below:


Drilling Fourth-quarter revenue of $3.91 billion was 6% higher sequentially.
Pretax operating income of $658 million improved 7% sequentially.
Significant sequential revenue growth was recorded by M-I SWACO from higher rig count on land in the US & Canada; sustained growth in deepwater activity in the US Gulf of Mexico; and strong contributions in Latin America.
IPM activity increased significantly, mainly from projects in Mexico and in Iraq.
Drilling & Measurements revenue increased on improved pricing and strong activity in the US Gulf of Mexico and the Nigeria & Gulf of Guinea GeoMarket, although this was partially offset by weather-related activity reductions in the North Sea and East Asia GeoMarkets.
In addition, Geoservices and Bits & Advanced Technologies registered robust sequential increases.
Sequentially, pretax operating margins were up slightly to 16.8%.
Drilling & Measurements obtained increased margins from improved technology mix and service pricing but this was partly offset by the effects of weather-related activity delays and reductions.
Most of the other Technologies exacted margin expansion following the continued successful integration and expansion of Smith, Geoservices and Schlumberger drilling technologies.


INTEL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The aggregate fair value of awards that vested in 2015 was $1.5 billion ($1.1 billion in 2014 and $1.0 billion in 2013), which represents the market value of our common stock on the date that the RSUs vested.
The grant-date fair value of awards that vested in 2015 was $1.1 billion ($949 million in 2014 and $899 million in 2013).
The number of RSUs vested includes shares of common stock that we withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.
RSUs that are expected to vest are net of estimated future forfeitures.
As of December 26, 2015, there was $1.8 billion in unrecognized compensation costs related to RSUs granted under our equity incentive plans.
We expect to recognize those costs over a weighted average period of 1.2 years.
Stock Option Awards As of December 26, 2015, options outstanding that have vested and are expected to vest were as follows:


Commodities—Price Risk Management and Futures Contracts Our most significant raw material requirements include cocoa products, sugar, dairy products, peanuts and almonds.
The cost of cocoa products and prices for related futures contracts and costs for certain other raw materials historically have been subject to wide fluctuations attributable to a variety of factors.
These factors include: Commodity market fluctuations; Foreign currency exchange rates; Imbalances between supply and demand; The effect of weather on crop yield; Speculative influences; Trade agreements among producing and consuming nations; Supplier compliance with commitments; Political unrest in producing countries; and Changes in governmental agricultural programs and energy policies.
We use futures and options contracts and other commodity derivative instruments in combination with forward purchasing of cocoa products, sugar, corn sweeteners, natural gas and certain dairy products primarily to reduce the risk of future price increases and provide visibility to future costs.
Currently, active futures contracts are not available for use in pricing our other major raw material requirements, primarily peanuts and almonds.
We attempt to minimize the effect of future price fluctuations related to the purchase of raw materials by using forward purchasing to cover future manufacturing requirements generally for 3 to 24 months.
However, dairy futures liquidity is not as developed as many of the other commodities futures markets and, therefore, it can be difficult to hedge our costs for dairy products by entering into futures contracts or other derivative instruments to extend coverage for long periods of time.
We use diesel swap futures contracts to minimize price fluctuations associated with our transportation costs.
Our commodity procurement practices are intended to reduce the risk of future price increases and provide visibility to future costs, but also may potentially limit our ability to benefit from possible price decreases.
Our costs for major raw materials will not necessarily reflect market price fluctuations primarily because of our forward purchasing and hedging practices.
During 2018, average cocoa futures contract prices increased compared with 2017 and traded in a range between $0.88 and $1.23 per pound, based on the Intercontinental Exchange futures contract.
Cocoa production was higher during the 2017 to 2018 crop year and slightly outpaced the increase in global demand, which led to a small rebuild in global cocoa stocks over the past year.
At the beginning of the year, cocoa prices rallied sharply before declining in the second half due to increased supply relative to demand.
The table below shows annual average cocoa futures prices and the highest and lowest monthly averages for each of the calendar years indicated.


| (Dollars in millions) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Cumulative Re-estimates for Each Accident Year | Accident Years | 2003 and prior | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | Total calendar year effect | Canada-1 | Translation adjustment | Re-estimate of net reserve after translation adjustment | -1 This adjustment converts Canadian dollars to U.S. dollars. | (Some amounts may not reconcile due to rounding.) |


| Payments Due by Future Period | Total | (in thousands) | Operating leases (Note 14) | Long-term debt including current portion (Note 6) | Interest on long-term debt -1 |


Entergy Corporation and Subsidiaries Notes to Financial Statements 74 Fuel and purchased power cost recovery Entergy Arkansas, Entergy Gulf States Louisiana, Entergy Louisiana, Entergy Mississippi, Entergy New Orleans, and Entergy Texas are allowed to recover certain fuel and purchased power costs through fuel mechanisms included in electric and gas rates that are recorded as fuel cost recovery revenues.
The difference between revenues collected and the current fuel and purchased power costs is recorded as "Deferred fuel costs" on the Utility operating companies' financial statements.
The table below shows the amount of deferred fuel costs as of December 31, 2009 and 2008, that Entergy expects to recover (or return to customers) through fuel mechanisms, subject to subsequent regulatory review.


Selling, General and Administrative Expense (“SG&A”) SG&A expense increased $2.1 billion or 38% to $7.6 billion during 2011 compared to 2010.
This increase was due primarily to the Company’s continued expansion of its Retail segment, increased headcount and related costs, higher spending on professional services and marketing and advertising programs, and increased variable costs associated with the overall growth of the Company’s net sales.
SG&A expense increased $1.4 billion or 33% to $5.5 billion in 2010 compared to 2009.
This increase was due primarily to the Company’s continued expansion of its Retail segment, higher spending on marketing and advertising programs, increased share-based compensation expenses and variable costs associated with the overall growth of the Company’s net sales.


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


| Category of risk exposure: Fair Value Asset (Liability) Market Risk | December 31 | (Amounts in millions) | Equity markets -1: | Equity securities (a) | Options- purchased | - written | Warrants | Short sales | Limited partnership investments | Interest rate -2: | Treasury - short | Futures - short | Interest rate swaps-short | Short sales-foreign | Fixed maturities | Short-term investments | Other derivatives | Gold -3: | Options- purchased | - written |


| Year Ended December 31 2018 over 2017 2017 over 2016 | ($ in millions) | Cost of product sales | % of product sales | Cost of service revenues | % of service revenues | Income from operating investments, net | Other income and gains | General and administrative expenses | % of total sales and service revenues | Cost of sales and service revenues |


| December 31, 2010 December 31, 2009 | Amount | ($ in millions) | Not subject to discretionary withdrawal provisions | Subject to discretionary withdrawal, with adjustment: | With market value adjustment | At market value | At contract value, less surrender charge of 5% or more | Subtotal | Subject to discretionary withdrawal at contract value with no surrender charge or surrender charge of less than5% | Total annuity reserves and deposit liabilities |


| Year Ended December 31 2005 2004 2003 | (In millions) | Net earned premiums | Net investment income | Income (loss) before net realized investment losses | Net realized investment losses | Net income (loss) |


In the normal course of business, we enter into underwriting commitments.
RJ&A and RJ Ltd. , as a lead, co-lead or syndicate member in the underwriting deal, may be subject to market risk on any unsold shares issued in the offering to which we are committed.
Risk exposure is controlled by limiting participation, the deal size or through the syndication process.


Akyem, Ghana.
Gold production decreased 1% due to lower ore grade milled and a build-up of in-circuit inventory, partially offset by higher throughput and higher mill recovery rates.
Costs applicable to sales per ounce increased 11% primarily due to a drawdown of ore stockpile inventory and higher milling costs, partially offset by lower oil prices.
Depreciation and amortization per ounce increased 33% due to higher amortization rates as a result off higher ounces mined and increased equipment purchase.
All-in sustaining costs per ounce increased 2% due to higher costs applicable to sales per ounce, partially offset by lower sustaining capital spend.


| December 31, 2008 Credit exposure % of credit portfolio Criticized exposure Nonperforming loans % of nonperforming loans to total loans (b) Net charge-offs/ (recoveries) % of net charge-offs to total loans(b) | Commercial real estate subcategories | Multi-family | Commercial lessors | Commercial construction and development | Other(a) | Total commercial real estate |


| At December 31, | (In thousands) | Cash and cash equivalents | Working capital -1 | Inventories | Total assets | Total debt, including current maturities | Total stockholders’ equity |


Condensed Consolidating Financial Information Principal Life has established special purpose entities to issue secured medium-term notes.
Under the program, the payment obligations of principal and interest on the notes are secured by funding agreements issued by Principal Life.
Principal Life’s payment obligations on the funding agreements are fully and unconditionally guaranteed by PFG.
All of the outstanding stock of Principal Life is indirectly owned by PFG and PFG is the only guarantor of the payment obligations of the funding agreements.
The following tables set forth condensed consolidating financial information of (i) PFG, (ii) Principal Life, (iii) Principal Financial Services, Inc.  (‘‘PFS’’) and all other direct and indirect subsidiaries of PFG on a combined basis and (iv) the eliminations necessary to arrive at the information for PFG on a consolidated basis as of December 31, 2010 and 2009, and for the years ended December 31, 2010, 2009 and 2008.
In presenting the condensed consolidating financial statements, the equity method of accounting has been applied to (i) PFG’s interest in PFS, (ii) Principal Life’s interest in all direct subsidiaries of Principal Life and (iii) PFS’s interest in Principal Life even though all such subsidiaries meet the requirements to be consolidated under U. S.  GAAP.
Earnings of subsidiaries are, therefore, reflected in the parent’s investment and earnings.
All intercompany balances and transactions, including elimination of the parent’s investment in subsidiaries, between PFG, Principal Life and PFS and all other subsidiaries have been eliminated, as shown in the column ‘‘Eliminations and Other.
’’ These condensed consolidating financial statements should be read in conjunction with the consolidated financial statements.
The financial information
exposures.
We are not relying on said guarantors and are directly evaluating exposure to these investments.
The following table presents our top ten exposures as of December 31, 2010.


| Fair Value Measurements at Reporting Date Using | Description | Available-for-sale marketable securities | U.S. government obligations | U.S. government guaranteed | corporate bonds | Corporate bonds | Mortgage-backed securities | U.S. government guaranteed | collateralized mortgage obligations | Equity securities | Total |


CAF provides financing for qualified customers at competitive market rates of interest.
Throughout each month, we sell substantially all of the loans originated by CAF in securitization transactions as discussed in Note 4.
The majority of CAF income is generated by the spread between the interest rates charged to customers and the related cost of funds.
A gain, recorded at the time of securitization, results from recording a receivable approximately equal to the present value of the expected residual cash flows generated by the securitized receivables.
The cash flows are calculated taking into account expected prepayments and losses.
CAF income does not include any allocation of indirect costs or income.
We present this information on a direct basis to avoid making arbitrary decisions regarding the indirect benefit or costs that could be attributed to CAF.
Examples of indirect costs not included are retail store expenses and corporate expenses such as human resources, administrative services, marketing, information systems, accounting, legal, treasury and executive payroll.


| 2018 2017 | December 31, (in millions) | U.S. GAAP nettable derivative receivables | Interest rate contracts: | OTC | OTC–cleared | Exchange-traded(a) | Total interest rate contracts | Credit contracts: | OTC | OTC–cleared | Total credit contracts | Foreign exchange contracts: | OTC | OTC–cleared | Exchange-traded(a) | Total foreign exchange contracts | Equity contracts: | OTC | Exchange-traded(a) | Total equity contracts | Commodity contracts: | OTC | Exchange-traded(a) | Total commodity contracts | Derivative receivables with appropriate legal opinion | Derivative receivables where an appropriate legal opinion has not been either sought or obtained | Total derivative receivables recognized on the Consolidated balance sheets | Collateral not nettable on the Consolidated balance sheets(b)(c) | Net amounts |


| December 31 Average Balance | (Dollars in millions) | Total loans and leases | Total earning assets-1 | Total assets-1 | Total deposits |


| September 30, 2006 September 30, 2007 September 30, 2008 September 30, 2009 September 30, 2010 September 30, 2011 | Apple Inc. | S&P 500 | S&P Computer Hardware | Dow Jones US Technology |


| In millions of dollars Before application of SFAS 158 Adjustments After application of SFAS 158 | Other assets | Prepaid benefit cost | Other liabilities | Accrued benefit liability | Deferred taxes, net | Accumulated other comprehensive income (loss) | Total stockholders’ equity | In millions of dollars | By industry/counterparty | Bank | Broker-dealer | Monoline | Non-financial | Insurance and other financial institutions | Total by industry/counterparty | By instrument: | Credit default swaps and options | Total return swaps and other | Total by instrument | By rating: | Investment grade | Non-investment grade | Not rated | Total by rating |


| (In millions) 2003 2002 2001 | E&P(a) | Domestic | International | Total E&P | RM&T | OERB | Corporate | Total |


| In billions of dollars December 31, 2007 exposures 2008 write- downs -1 2008 sales/ transfers -2 December 31, 2008 exposures | Direct ABS CDO super senior exposures: | Gross ABS CDO super senior exposures (A) | Hedged exposures (B) | Net ABS CDO super senior exposures: | ABCP/CDO(3) | High grade | Mezzanine | ABS CDO-squared | Total net ABS CDO super senior exposures (A-B=C) | Lending and structuring exposures: | CDO warehousing/unsold tranches of ABS CDOs | Subprime loans purchased for sale or securitization | Financing transactions secured by subprime | Total lending and structuring exposures (D) | Total net exposures C+D-6 | Credit adjustment on hedged counterparty exposures (E)(7) | Total net write-downs (C+D+E) |


| 2008 2009 Change | Other than temporary impairments recognized | Capital gain distributions received | Net gain (loss) realized on fund dispositions | Net loss recognized on fund holdings |


We also maintain nonqualified supplemental retirement plans for certain employees and provide certain health care and life insurance benefits for qualifying retired employees (postretirement benefits) through various plans.
PNC reserves the right to terminate or make changes to these plans at any time.
The nonqualified pension plan is unfunded.
Contributions from PNC and, in the case of the postretirement benefit plans, participant contributions cover all benefits paid under the nonqualified pension plan and postretirement benefit plans.
The postretirement plan provides benefits to certain retirees that are at least actuarially equivalent to those provided by Medicare Part D and accordingly, we receive a federal subsidy as shown in Table 70.
In November of 2015, we established a voluntary employee beneficiary association (VEBA) to partially fund postretirement medical and life insurance benefit obligations.
We use a measurement date of December 31 for plan assets and benefit obligations.
A reconciliation of the changes in the projected benefit obligation for qualified pension, nonqualified pension and postretirement benefit plans as well as the change in plan assets for the qualified pension plan follows.
Table 70: Reconciliation of Changes in Projected Benefit Obligation and Change in Plan Assets


| Table 56 Allocation of the Allowance for Credit Losses by Product Type | December 31, 2011 | (Dollars in millions) | Allowance for loan and lease losses | Residential mortgage | Home equity | Discontinued real estate | U.S. credit card | Non-U.S. credit card | Direct/Indirect consumer | Other consumer | Total consumer | U.S. commercial-2 | Commercial real estate | Commercial lease financing | Non-U.S. commercial | Total commercial-3 | Allowance for loan and lease losses | Reserve for unfunded lending commitments | Allowance for credit losses-4 |


| Pretax revenue | In millions of dollars | Private equity and equity investments | Alt-A mortgages-1-2 | Commercial real estate (CRE) positions(1)(3) | CVA on Citi debt liabilities under fair value option | CVA on derivatives positions, excluding monoline insurers | Total significant revenue items |


| Revenues $605,367 $68,644 $$100,558 $64,575 $839,144 | Production costs -1 | Transportation | E&P corporate | Exploration expenses | DD&A and valuation provision | Impairment of operating assets | Accretion expense | Income (loss) | Income tax expense (benefit) | Result of continuing operations from producing activities (excluding corporate overhead and interest costs) |


| Year Ended December 31, | 2015 | (in millions) | OTTI recorded in earnings—PFI excluding Closed Block Division-1 | Public fixed maturity securities | Private fixed maturity securities | Total fixed maturity securities | Equity securities | Other invested assets-2 | Total |


| Year Ended December 31, | 2016 | (in millions) | Net gains (losses) from: | Other trading account assets | Foreign currency exchange movements | Other activities | Year ended December 31, | 2016 | (in millions) | Annualized new business premiums-1: | Group life | Group disability | Total |


| Year ended December 31, | 2006 | (in millions) | Operating results: | Revenues | Expenses | Adjusted operating income | Realized investment gains, net, and related adjustments-1 | Income from continuing operations before income taxes, equity in earnings of operating joint ventures, extraordinary gain on acquisition andcumulative effect of accounting change |


| Expected Range of Prices   as a % of NYMEX Price | Oil | U.S. Onshore | U.S. Offshore | Canada | International |


| Years Ended December 31, | 2010 | (in millions) | Loss on sale and disposal of assets | Gener gas settlement | Loss on extinguishment of debt | AES Wind transaction costs | Other | Total other expense |


Performance Graph The annual changes for the period shown December 1, 2013 (when our ordinary shares began trading) to December 31, 2017 in the graph on this page are based on the assumption that $100 had been invested in Allegion plc ordinary shares, the Standard & Poor’s 500 Stock Index ("S&P 500") and the Standard & Poor's 400 Capital Goods Index ("S&P 400 Capital Goods") on December 1, 2013, and that all quarterly dividends were reinvested.
The total cumulative dollar returns shown on the graph represent the value that such investments would have had on December 31, 2017.


| Shares Issued Treasury Shares SharesOutstanding | Balance at January 1, 2016 | Shares repurchased | Exercise of stock options and issuance ofother stock awards | Balance at December 31, 2016 | Shares repurchased | Exercise of stock options and issuance ofother stock awards | Balance at December 31, 2017 | Shares repurchased | Exercise of stock options and issuance ofother stock awards | Balance at December 31, 2018 |


| Percent Change Increase (Decrease) | For the years ended December 31, | Net Sales | Cost of Sales | Gross Profit | Gross Margin | SM&A Expense | SM&A Expense as a percent of sales | Business Realignment and Asset Impairments Charge | EBIT | EBIT Margin | Interest Expense, Net | Provision for Income Taxes | Effective Income Tax Rate | Net Income | Net Income Per Share—Diluted |


| Year Ended December 31, | 2010 | (Amounts in thousands) | Operating income | Adjustments: | Non-same store operating results | Fee and asset management revenue | Fee and asset management expense | Depreciation | General and administrative | Impairment | Same store NOI |


| Amount (In Millions) | 2007 net revenue | Volume/weather | Net gas revenue | Rider revenue | Base revenue | Other | 2008 net revenue |


| December 31, (in millions) 2003 2002 | Consumer-related | Commercial-related: | Other unfunded commitments to extend credit(a)(b) | Standby letters of credit and guarantees(a) | Other letters of credit(a) | Total commercial-related | Customers’ securities lent |


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


| Purchase Consideration-1 Total Net (Liabilities) Assets Acquired (2) Purchased Intangible Assets Goodwill | (in millions) | 2008 | OMX AB | PHLX | BSX | Nord Pool | IDCG | Total for 2008 |


| December 31, 2016-1 | Fair Value | Level 1 | (in millions) | Assets: | Fixed maturities, held-to-maturity-3 | Trading account assets | Commercial mortgage and other loans | Policy loans | Short-term investments | Cash and cash equivalents | Accrued investment income | Other assets | Total assets | Liabilities: | Policyholders’ account balances—investment contracts | Securities sold under agreements to repurchase | Cash collateral for loaned securities | Short-term debt | Long-term debt-4 | Other liabilities | Separate account liabilities—investment contracts | Total liabilities | December 31, 2015-1 | Fair Value | Level 1 | (in millions) | Assets: | Fixed maturities, held-to-maturity-3 | Commercial mortgage and other loans | Policy loans | Short-term investments | Cash and cash equivalents | Accrued investment income | Other assets | Total assets | Liabilities: | Policyholders’ account balances—investment contracts | Securities sold under agreements to repurchase | Cash collateral for loaned securities | Short-term debt | Long-term debt-4(5) | Other liabilities | Separate account liabilities—investment contracts | Total liabilities | Year ended December 31, | 2016 | (in millions) | Long-Term Care | Other | Total divested businesses income (loss) excluded from adjusted operating income |


| 2007 2006 2005 | (In thousands) | SUPPLEMENTAL DISCLOSURES: | Total interest costs incurred | Interest capitalized | Interest expense related to discontinued operations | Interest expense | Cash paid for interest, net of amounts capitalized | Cash paid for income taxes | NON-CASH INVESTING AND FINANCING TRANSACTIONS: | Mortgage loans assumed with acquisitions | Common shares issued with acquisitions | Extinguishment of capital lease obligations | DownREIT operating partnership units issued with acquisitions | Preferred shares issued with acquisitions |


| 2009 2008 | December 31, (in millions) | Investment-grade(a) | Noninvestment-grade(a) | Total contractual amount(b) | Allowance for lending-related commitments | Commitments with collateral |


| In millions December 312013 December 312012 | Commercial lending | Commercial | Commercial real estate | Equipment lease financing | Total commercial lending | Consumer lending | Home equity | Residential real estate | Credit card | Other consumer | Total consumer lending | Total loans (a) (b) | In millions | Home equity and residential real estate loans – excluding purchased impaired loans (a) | Home equity and residential real estate loans – purchased impaired loans (b) | Government insured or guaranteed residential real estate mortgages (a) | Purchase accounting adjustments – purchased impaired loans | Total home equity and residential real estate loans (a) |


| Trading & Investing | Balance at December 31, 2011 | Activity | Balance at December 31, 2012 | Impairment of goodwill | Balance at December 31, 2013 |


| Tower Cash Flow, for the three months ended December 31, 2006 $157,311 | Consolidated Cash Flow, for the twelve months ended December 31, 2006 | Less: Tower Cash Flow, for the twelve months ended December 31, 2006 | Plus: four times Tower Cash Flow, for the three months ended December 31, 2006 | Adjusted Consolidated Cash Flow, for the twelve months ended December 31, 2006 | Non-Tower Cash Flow, for the twelve months ended December 31, 2006 |


| 2014 2013 | Notes with rates from 2.13% to 6.15%, due 2016 to 2042 | Notes with rates from 7.00% to 7.75%, due 2016 to 2036 | Other debt | Total long-term debt | Less: unamortized discounts | Total long-term debt, net |


| At December 31, | 2009 | Contract amount represents credit risk | Commitments to extend credit | Commercial | Consumer | Commercial real estate | Standby letters of credit | Change Attributable to: | Change | 2008 | Loans/Leases | Commercial and industrial | Commercial real estate | Total commercial | Automobile loans and leases | Home equity | Residential mortgage | Other consumer | Total consumer | Total loans | Deposits | Demand deposits — noninterest-bearing | Demand deposits — interest-bearing | Money market deposits | Savings and other domestic time deposits | Core certificates of deposit | Total core deposits | Other deposits | Total deposits |


| 2018 2017 2016 | Allowance for other funds used during construction | Allowance for borrowed funds used during construction |


| Year Ended December 31, | (in millions) | Other-than-temporary impairment: | Total other-than-temporary impairment losses | Portions of loss recognized in other comprehensive income (before taxes) | Net securities impairment losses recognized in earnings | December 31, 2017 | Less than 12 Months | (dollars in millions) | Mortgage-backed securities: | Federal agencies and U.S. government sponsored entities | Other/non-agency | Total mortgage-backed securities | Total | December 31, 2016 | Less than 12 Months | (dollars in millions) | State and political subdivisions | Mortgage-backed securities: | Federal agencies and U.S. government sponsored entities | Other/non-agency | Total mortgage-backed securities | Total | For the years ended December 31, | Net revenues | Operating expenses: | Personnel expenses | Other selling, general, and administrative expenses | Total operating expenses | Income from operations | Interest and other (expense) income | Income before provision for income taxes | Provision for income taxes | Net income |


| December 31, 2011 | (Dollars in millions) | Impaired loans and troubled debt restructurings-1 | Allowance for loan and lease losses-2 | Carrying value-3 | Allowance as a percentage of carrying value | Collectively evaluated for impairment | Allowance for loan and lease losses | Carrying value-3, 4 | Allowance as a percentage of carrying value-4 | Purchased credit-impaired loans | Valuation allowance | Carrying value gross of valuation allowance | Valuation allowance as a percentage of carrying value | Total | Allowance for loan and lease losses | Carrying value-3, 4 | Allowance as a percentage of carrying value-4 |


| Insurance Products Retirement Products Corporate Benefit Funding Auto & Home International Banking Corporate & Other Total | (In millions) | Total revenues | Less: Net investment gains (losses) | Less: Adjustments related to net investment gains (losses) | Less: Other adjustments to revenues | Total operating revenues | Total expenses | Less: Adjustments related to net investment gains (losses) | Less: Other adjustments to expenses | Total operating expenses | Insurance Products | (In millions) | Total revenues | Less: Net investment gains (losses) | Less: Adjustments related to net investment gains (losses) | Less: Other adjustments to revenues | Total operating revenues | Total expenses | Less: Adjustments related to net investment gains (losses) | Less: Other adjustments to expenses | Total operating expenses |


| Fiscal Year | 2007 | Pre-tax gain (loss) on discontinued operations | DFS | Quilter | Aircraft leasing | $1,024 | At February 17, 2006  (dollars in millions) | Consumer loans | Goodwill | Amortizable intangible assets | Other assets | Total assets acquired | Total liabilities assumed | Net assets acquired | At November 30, | 2007 | (dollars in billions) | Assets under management or supervision by distribution channel: | Americas Retail Morgan Stanley brand | Americas Retail Van Kampen brand | Americas Intermediary-1 | U.S. Institutional | Non-U.S. | Total long-term assets under management or supervision | Institutional money markets/liquidity | Retail money markets | Total money markets | Total assets under management or supervision | Share of minority interest assets-2 | Total | Assets under management or supervision by asset class: | Equity | Fixed income | Money market | Alternatives-3 | Subtotal | Unit trusts | Total assets under management or supervision | Share of minority interest assets-2 | Total |


| Years Ended December 31, | 2007 | (In millions) | Balance, beginning of period | Additions | Deductions | Balance, end of period |


| Year Ended December 31, | Assumption used in Monte Carlo lattice pricing model | Risk-free interest rate | Expected dividend yield | Expected volatility—ANSYS Stock Price | Expected volatility—NASDAQ Composite Index | Expected term | Correlation factor | Years Ended December 31 | Sales | Materials and production costs | Other expense, net | Income before taxes-1 |


| 2011 Quarters 2010 Quarters | (In millions, except per share information) | Income statement | Net interest income | Noninterest income | Total revenue, net of interest expense | Provision for credit losses | Goodwill impairment | Merger and restructuring charges | All other noninterest expense-1 | Income (loss) before income taxes | Income tax expense (benefit) | Net income (loss) | Net income (loss) applicable to common shareholders | Average common shares issued and outstanding | Average diluted common shares issued and outstanding-2 | Performance ratios | Return on average assets | Four quarter trailing return on average assets-3 | Return on average common shareholders’ equity | Return on average tangible common shareholders’ equity-4 | Return on average tangible shareholders’ equity-4 | Total ending equity to total ending assets | Total average equity to total average assets | Dividend payout | Per common share data | Earnings (loss) | Diluted earnings (loss)(2) | Dividends paid | Book value | Tangible book value-4 | Market price per share of common stock | Closing | High closing | Low closing | Market capitalization | Average balance sheet | Total loans and leases | Total assets | Total deposits | Long-term debt | Common shareholders’ equity | Total shareholders’ equity | Asset quality-5 | Allowance for credit losses-6 | Nonperforming loans, leases and foreclosed properties-7 | Allowance for loan and lease losses as a percentage of total loans and leases outstanding-7 | Allowance for loan and lease losses as a percentage of total nonperforming loans and leases-7 | Allowance for loan and lease losses as a percentage of total nonperforming loans and leases excluding the purchased credit-impaired loan portfolio-6 | Amounts included in allowance that are excluded from nonperforming loans-8 | Allowance as a percentage of total nonperforming loans and leases excluding the amounts included in the allowance that are excluded from nonperforming loans-8 | Net charge-offs | Annualized net charge-offs as a percentage of average loans and leases outstanding-7 | Nonperforming loans and leases as a percentage of total loans and leases outstanding-7 | Nonperforming loans, leases and foreclosed properties as a percentage of total loans, leases and foreclosed properties-7 | Ratio of the allowance for loan and lease losses at period end to annualized net charge-offs | Capital ratios (period end) | Risk-based capital: | Tier 1 common | Tier 1 | Total | Tier 1 leverage | Tangible equity-4 | Tangible common equity-4 |


| Yearended December 31, | (Dollar amounts in millions) | Non-operating income (expense), GAAP basis | Less: Net income (loss) attributable to NCI | Non-operating income (expense)(1) | Compensation expense related to (appreciation)/depreciation on deferred compensation plans | Non-operating income (expense), less net income (loss) attributable to NCI, as adjusted |


| 2017 2016 | Carrying Amount at Beginning of Period | Liabilities Incurred-1 | Liabilities Settled-2 | Accretion | Revisions | Foreign Currency Translations | Carrying Amount at End of Period | Current Portion | Noncurrent Portion |


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


reflects the contribution from higher net sales, partially offset by higher input costs for energy, wood and freight.
Entering 2007, earnings in the first quarter are expected to improve compared with the 2006 fourth quarter due primarily to reduced manufacturing costs reflecting the completion of the mill optimization project in Brazil in the fourth quarter.
Sales volumes are expected to be seasonally better in the U. S.  uncoated paper and market pulp businesses, but seasonally weaker in the Russian paper business.
Average sales price realizations should improve as we continue to implement previously announced price increases in Europe and Brazil, although U. S.  average price realizations are expected to remain flat.
Wood costs are anticipated to be higher due to supply difficulties in the winter months, and energy costs will be mixed.
The first-quarter 2007 acquisition of the Luiz Antonio mill in Brazil will provide incremental earnings.
During 2007, the Pensacola, Florida mill will be converted to produce containerboard, reducing future U. S.  production capacity for uncoated freesheet paper.
Industrial Packaging Demand for Industrial Packaging products is closely correlated with non-durable industrial goods production in the United States, 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, manufacturing efficiency and product mix.
INDUSTRIAL PACKAGING net sales for 2006 increased 6% compared with 2005 and 8% compared with 2004.
Operating profits in 2006 were 82% higher than in 2005 and 7% higher than in 2004.
Benefits from improved price realizations ($156 million), sales volume increases ($29 million), a more favorable mix ($21 million), reduced market related downtime ($25 million) and strong mill performance ($43 million) were partially offset by the effects of higher raw material costs ($12 million), higher freight costs ($48 million), higher converting operations costs ($21 million) and other costs ($26 million).
In addition, a gain of $13 million was recognized in 2006 related to a sale of property in Spain.
The segment took 135,000 tons of downtime in 2006, none of which was market-related, compared with 370,000 tons of downtime in 2005, which included 230,000 tons of lack-of-order downtime.


| Sales Price | High | Fiscal 2007 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Fiscal 2006 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter |


| (millions of dollars) 2010 2009 Variance 2010 vs. 2009 2008 Variance 2009 vs. 2008 | Operating activities | Investing activities | Financing activities | Net change | Balance at beginning of period | Balance at end of period |


General and Administrative Expenses.
General and administrative expenses increased 39% in fiscal 2012 compared to fiscal 2011 primarily due to higher acquisition related transaction costs associated with the Gen-Probe acquisition of $34.3 million, additional expenses, including retention costs, from the inclusion of Gen-Probe of $12.8 million, integration and consulting costs related to the Gen-Probe acquisition, an increase in bad debt expense internationally, charges for an ongoing state sales tax audit, an increase in the Nonqualified Deferred Compensation Plan, or DCP, liability, which is driven by the underlying market changes of hypothetical investments, and higher invoice collection fees from higher credit card payments.
These expenses were also higher due to


| RSUs PSUs | Numberof Shares | Nonvested January 1, 2015 | Granted | Vested | Forfeited | Nonvested December 31, 2015 |


| Year ended December 31, | 2010 | Operating results: | Revenues | Benefits and expenses | Adjusted operating income | Realized investment gains (losses), net, and related adjustments(1) | Related charges-2 | Income from continuing operations before income taxes and equity in earnings of operating joint ventures |


| Premiums Payable Premiums Receivable | (in millions) | 2014 | 2015 | 2016 | 2017 | 2018 | 2019-2027 | Total |


THE HERSHEY COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued) As of December 31, 2010, we had entered into purchase agreements with various suppliers.
Subject to meeting our quality standards, the purchase obligations covered by these agreements were as follows as of December 31, 2010:


The objective of these instruments is to reduce variability in the forecasted interest payments of the Company's variable rate secured notes.
We may from time to time seek to retire or purchase our outstanding debt through cash purchases in the open market, privately negotiated transactions or otherwise.
Such repurchases, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions, and other factors.
The amounts involved may be material.
In addition to the $275 million repaid in fiscal 2016 noted above, we paid $36 million and $175 million in the 11-month period ended January 1, 2016, and fiscal 2015, respectively, to repurchase and retire a principal amount of $37 million and $183 million of outstanding debt, respectively.


Noncontrolling interest relating to the remaining units was $110.4 million and $113.1 million as of December 31, 2010 and 2009, respectively.
During 2006, the Company acquired two shopping center properties located in Bay Shore and Centereach, NY.
Included in Noncontrolling interests was approximately $41.6 million, including a discount of $0.3 million and a fair market value adjustment of $3.8 million, in redeemable units (the Redeemable Units), issued by the Company in connection with these transactions.
The properties were acquired through the issuance of $24.2 million of Redeemable Units, which are redeemable at the option of the holder; approximately $14.0 million of fixed rate Redeemable Units and the assumption of approximately $23.4 million of non-recourse debt.
The Redeemable Units consist of (i) 13,963 Class A Units, par value $1,000 per unit, which pay the holder a return of 5% per annum of the Class A par value and are redeemable for cash by the holder at any time after April 3, 2011, or callable by the Company any time after April 3, 2016, and (ii) 647,758 Class B Units, valued at an issuance price of $37.24 per unit, which pay the holder a return at a rate equal to the Companys common stock dividend and are redeemable by the holder at any time after April 3, 2007, for cash or at the option of the Company for Common Stock at a ratio of 1:1, or callable by the Company any time after April 3, 2026.
The Company is restricted from disposing of these assets, other than through a tax free transaction, until April 2016 and April 2026 for the Centereach, NY, and Bay Shore, NY, assets, respectively.
During 2007, 30,000 units, or $1.1 million par value, of theClass BUnits were redeemed by the holder in cash at the option of the Company.
Noncontrolling interest relating to the units was $40.4 million and $40.3 million as of December 31, 2010 and 2009, respectively.
Noncontrolling interests also includes 138,015 convertible units issued during 2006, by the Company, which were valued at approximately $5.3 million, including a fair market value adjustment of $0.3 million, related to an interest acquired in an office building located in Albany, NY.
These units are redeemable at the option of the holder after one year for cash or at the option of the Company for the Companys common stock at a ratio of 1:1.
The holder is entitled to a distribution equal to the dividend rate of the Companys common stock.
The Company is restricted from disposing of these assets, other than through a tax free transaction, until January 2017.
Amortization of Intangible Assets and Deferred Stock Compensation.
Amortization of intangible assets and deferred stock compensation includes the amortization of the contract rights intangible associated with certain executory contracts, core/developed technology, trademarks, trade names, customer relationships, covenants not to compete and other intangibles acquired in business combinations completed during fiscal 2003, 2004 and 2005.
We amortize intangible assets on a straight-line basis over their useful lives, which range from three to ten years.
Deferred stock compensation represents the intrinsic value of unvested stock options assumed in connection with prior year acquisitions.
We amortize deferred stock compensation on a straight-line basis over the options remaining vesting period of one to four years.
Generally, amortization of deferred stock compensation will decrease over time as the assumed stock options vest, although employee terminations affect the exact timing and amount of future amortization of deferred stock compensation.
Amortization expense for these assets is included in the consolidated statements of operations as follows:


Year ended September 30, 2009 Compared with the Year ended September 30, 2008 - Other Revenue in the Other segment includes interest earnings on available corporate cash balances and gains/losses on corporate investments, including company-owned life insurance used as a funding vehicle for non-qualified deferred compensation programs.
Expenses in this segment are predominantly executive compensation and beginning in August 2009, interest on our senior notes.
This interest will be approximately $26 million annually.


Obligation for Future Contribution to an Equity Affiliate On 19 April 2015, a joint venture between Air Products and ACWA Holding entered into a 20-year oxygen and nitrogen supply agreement to supply Saudi Aramco’s oil refinery and power plant being built in Jazan, Saudi Arabia.
Air Products owns 25% of the joint venture and guarantees the repayment of its share of an equity bridge loan.
In total, we expect to invest approximately $100 in this joint venture.
As of 30 September 2018, we recorded a noncurrent liability of $94.4 for our obligation to make future equity contributions in 2020 based on our proportionate share of the advances received by the joint venture under the loan.


| (in billions, except ratios) Reported Pro forma | Assets | Liabilities | Net income | Tier 1 capital ratio | Tier 1 leverage ratio |


| 2016 2015 2014 | Third-party sales | ATOI |


| As of December 31, | 2010 | (in billions, except percentages) | Owned Assets | Managed Assets-1: | Columbia | Threadneedle | Wrap account assets | Eliminations-2 | Total Managed Assets | Administered Assets | Total Owned, Managed and Administered Assets |


| (Dollars in millions) December 31, 2007 2006 | Trade creditors | Accrued payrolls, vacation, and variable-incentive compensation | Accrued taxes | Post-employment obligations | Interest payable | Bank overdrafts | Other | Total payables and other current liabilities | 12 Months Ended December 30,2016 | U.S. Government | U.S. DoD | U.S. Army | Maryland Procurement Office |


| Year Ended December 31, | 2011 | Risk-free interest rate | Expected life (in years) | Dividend yield | Expected volatility |


Applied’s backlog on any particular date is not necessarily indicative of actual sales for any future periods, due to the potential for customer changes in delivery schedules or cancellation of orders.
Customers may delay delivery of products or cancel orders prior to shipment, subject to possible cancellation penalties.
Delays in delivery schedules and/or a reduction of backlog during any particular period could have a material adverse effect on Applied’s business and results of operations.


| Year Ended December 31, | 2015 | (dollars in millions) | Assets | Interest-bearing cash and due from banks and deposits in banks | Taxable investment securities | Non-taxable investment securities | Total investment securities | Commercial | Commercial real estate | Leases | Total commercial | Residential mortgages | Home equity loans | Home equity lines of credit | Home equity loans serviced by others | Home equity lines of credit serviced by others | Automobile | Student | Credit cards | Other retail | Total retail | Total loans and leases-1 | Loans held for sale, at fair value | Other loans held for sale | Interest-earning assets | Allowance for loan and lease losses | Goodwill | Other noninterest-earning assets | Total noninterest-earning assets | Total assets | Liabilities and Stockholders’ Equity | Checking with interest | Money market accounts | Regular savings | Term deposits | Total interest-bearing deposits | Interest-bearing deposits held for sale | Federal funds purchased and securities sold under agreements to repurchase-2 | Other short-term borrowed funds-3 | Long-term borrowed funds | Total borrowed funds | Total interest-bearing liabilities | Demand deposits | Demand deposits held for sale | Other liabilities | Total liabilities | Stockholders’ equity | Total liabilities and stockholders’ equity | Interest rate spread | Net interest income | Net interest margin | Memo: Total deposits (interest-bearing and demand) |


| Series A preferred stock Series B preferred stock Common stock | (in millions) | Outstanding shares at January 1, 2007 | Shares issued | Treasury stock acquired | Outstanding shares at December 31, 2007 | Shares issued | Treasury stock acquired | Outstanding shares at December 31, 2008 | Shares issued | Treasury stock acquired | Outstanding shares at December 31, 2009 |


| For the Years Ended | (In thousands) | Software development costs | Capitalized software costs | Capitalized costs related to share-based payments | Amortization of capitalized software costs | Total software development expense |


Item 5.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock trades principally on The New York Stock Exchange under the trading symbol AMP.
As of February 12, 2016, we had approximately 15,429 common shareholders of record.
Price and dividend information concerning our common shares may be found in Note 26 to our Consolidated Financial Statements included in Part II, Item 8 of this Annual Report on Form 10-K.  Information regarding our equity compensation plans can be found in Part III, Item 12 of this Annual Report on Form 10-K.  Information comparing the cumulative total shareholder return on our common stock to the cumulative total return for certain indices is set forth under the heading ‘‘Performance Graph’’ provided in our 2015 Annual Report to Shareholders and is incorporated herein by reference.
We are primarily a holding company and, as a result, our ability to pay dividends in the future will depend on receiving dividends from our subsidiaries.
For information regarding our ability to pay dividends, see the information set forth under the heading ‘‘Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources’’ contained in Part II, Item 7 of this Annual Report on Form 10-K.  Share Repurchases The following table presents the information with respect to purchases made by or on behalf of Ameriprise Financial, Inc.  or any ‘‘affiliated purchaser’’ (as defined in Rule 10b-18(a)(3) under the Securities Exchange Act of 1934), of our common stock during the fourth quarter of 2015:


| Year Ended December 31, | 2012 | Gas Delivered(MDt) | Firm Sales | Full service | Firm transportation | Total Firm Sales | Interruptible Sales | Total Gas Delivered to O&R Customers | Transportation of customer-owned gas | Sales for resale | Sales to electric generating stations | Off-System Sales | Total Sales |


| Payments Due by Period | Contractual Obligations | Long-term debt (a) | Capital lease obligations | Operating leases | Purchase obligations (b) | Other long-term liabilities (c) | $50,332 |


| December 31, 2018 December 31, 2017 | In millions of dollars | Carrying amount reported on the Consolidated Balance Sheet | Aggregate unpaid principal balance in excess of fair value | Balance of non-accrual loans or loans more than 90 days past due | Aggregate unpaid principal balance in excess of fair value for non-accrual loans or loans more than 90 days past due |


| 2008 2007 | Net earnings per common share: | Basic—as originally reported | Basic—impact of FSP No. EITF 03-6-1 | Basic—to be reported in 2009 | Diluted—as originally reported | Diluted—impact of FSP No. EITF 03-6-1 | Diluted—to be reported in 2009 |


Table of Contents MARKETAXESS HOLDINGS INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) As of December 31, 2007, the Company had $13.1 million invested in municipal auction rate securities (MARS).
Liquidity for these securities is typically provided by an auction process that resets the applicable interest rate at pre-determined 35-day intervals.
Auctions for six securities with a par value of $11.2 million began to fail in February 2008 and, as a result, the Company had been unable to liquidate these holdings.
During 2008, all of the securities were redeemed or had successful auctions at par value.
The Company no longer has any investments in MARS.
The Company enters into foreign currency forward contracts with a noncontrolling broker-dealer client to hedge its exposure to variability in foreign currency cash flows resulting from the net investment in its U. K.  subsidiary.
The Company assesses each foreign currency forward contract to ensure that it is highly effective at reducing the exposure being hedged.
The Company designates each foreign currency forward contract as a hedge, assesses the risk management objective and strategy, including identification of the hedging instrument, the hedged item and the risk exposure and how effectiveness is to be assessed prospectively and retrospectively.
These hedges are for a onemonth period and are used to limit exposure to foreign currency exchange rate fluctuations.
The gross and net fair value liability of $0.3 million as of December 31, 2009 is included in accounts payable and the gross and net fair value asset of $0.3 million as of December 31, 2008 is included in accounts receivable in the Consolidated Statements of Financial Condition.
Gains or losses on foreign currency forward contracts designated as hedges are included in accumulated other comprehensive loss on the Consolidated Statements of Financial Condition.
A summary of the foreign currency forward contract is as follows:


The Black-Scholes model incorporates assumptions to value stock-based awards.
The risk-free rate of interest for periods within the contractual life of the option is based on a zero-coupon U. S.  government instrument over the expected term of the equity instrument.
Expected volatility is based on implied volatility from traded options on the Company’s stock and historical volatility of the Company’s stock.
To estimate the option exercise timing to be used in the valuation model, in addition to considering the vesting period and contractual term of the option, the Company analyzes and considers actual historical exercise data for previously granted options.
At the time of grant, the Company estimates the number of options that it expects will be forfeited based on the Company’s historical experience.
Separate groups of employees that have similar behavior with regard to holding options for longer periods and different forfeiture rates are considered separately for valuation and attribution purposes.


| For the year 2013 | Life | Revenue: | Premium | Net investment income | Other income | Total revenue | Expenses: | Policy benefits | Required interest on: | Policy reserves | Deferred acquisition costs | Amortization of acquisition costs | Commissions, premium taxes, and non-deferred acquisition costs | Insurance administrative expense-2 | Parent expense | Stock-based compensation expense | Interest expense | Total expenses | Subtotal | Non-operating items | Amortization of low-income housing interests | Measure of segment profitability (pretax) | Deduct applicable income taxes | Segment profits after tax | Add back income taxes applicable to segment profitability | Add (deduct) realized investment gains (losses) | Deduct Medicare Part Dadjustments -1 | Deduct amortization of low-incomehousing -4 | Deduct Guaranty Fund Assessment -5 | Deduct legal settlement expenses -6 | Add Family Heritage Life acquisitionadjustments -7 | Pretax income per Consolidated Statement of Operations | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total minimum lease payments | Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments | Net minimum lease payments | Less: Amount representing interest | Present value of net minimum lease payments | Less: Current portion | Long-term portion of capital lease obligations |


| December 31, | 2009 | (millions) | Exploratory Well Costs Capitalized for a Period of One Year or Less | Exploratory Well Costs Capitalized for a Period Greater Than One Year After Completion of Drilling | Balance at End of Period | Number of Projects with Exploratory Well Costs That Have Been Capitalized for a Period Greater Than One Year After Completion of Drilling |


Notes to the Consolidated Financial Statements (Continued) NOTE 9.
RETIREMENT PLAN We maintain a defined contribution pension plan covering full-time shoreside employees who have completed the minimum period of continuous service.
Annual contributions to the plan are based on fixed percentages of participants salaries and years of service, not to exceed certain maximums.
Pension cost was $13.9 million, $12.8 million and $12.2 million for the years ended December 31, 2006, 2005 and 2004, respectively.


| December 31, | 2009 | Genco sales to Marketing Company(a) | AERG sales to Marketing Company(a) | Marketing Company sales to CIPS(b) | Marketing Company sales to CILCO(b) | Marketing Company sales to IP(b) | Term Ending | Term | Megawatts(a) | Cost per megawatthour |


| (In thousands) Year EndedFebruary 1,2008 Year endedFebruary 2,2007 | Revenue | Net loss | Con Edison | Units | Non-vested at 12/31/06 | Granted | Vested and Exercised | Forfeited | Non-vested at 12/31/07 | (Millions of Dollars) | 2014 | 2015 | 2016 | 2017 | 2018 | December 31, | (Millions of Dollars) | Long-Term Debt (including current portion) | Con Edison | CECONY | Twelve Months Ended | (Millions of Dollars) | Operating revenues | Purchased power | Fuel | Net revenues | Operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Electric operating income | Millions of kWhs Delivered | Twelve Months Ended | Description | Residential/Religious(a) | Commercial/Industrial | Retail access customers | NYPA, Municipal Agency and other sales | Other operating revenues | Total |


| (in billions) | Net IPO proceeds | March 2008 redemptions of class B and class C (series I) common stock | Funding of escrow account | Balance at September 30, 2008 | October 2008 redemptions of class C (series II) and class C (series III) common stock | Balance of proceeds following October redemptions |


We participate in a Medicare Health Support pilot program through Green Ribbon Health, or GRH, a jointventure company with Pfizer Health Solutions Inc.  GRH is designed to support Medicare beneficiaries living with diabetes and/or congestive heart failure in Central Florida.
GRH uses disease management initiatives including evidence-based clinical guidelines, personal self-directed change strategies, and personal nurses to help participants navigate the health system.
Revenues under the contract with CMS, which expires October 31, 2008 unless terminated earlier, are subject to refund unless a savings target is met.
To date, all revenues have been deferred until reliable estimates are determinable.
Our Products Marketed to Commercial Segment Employers and Members Smart Plans and Other Consumer Products Over the last several years, we have developed and offered various commercial products designed to provide options and choices to employers that are annually facing substantial premium increases driven by double-digit medical cost inflation.
These Smart plans, discussed more fully below, and other consumer offerings, which can be offered on either a fully-insured or ASO basis, provided coverage to approximately 564,700 members at December 31, 2007, representing approximately 16.4% of our total commercial medical membership as detailed below.


growth focused.
For example, in December 2005, 3M announced its intention to build an LCD optical film manufacturing facility in Poland to support the fast-growing LCD-TV market in Europe and to better serve its customers.
The Company expects 2006 capital expenditures to total approximately $1.1 billion, compared with $943 million in 2005.
In the third quarter of 2005, 3M completed the acquisition of CUNO.3M acquired CUNO for approximately $1.36 billion, including assumption of debt.
This $1.36 billion included $1.27 billion of cash paid (net of cash acquired) and the assumption of $80 million of debt, most of which has been repaid.
In 2005, the Company also entered into two additional business combinations for a total purchase price of $27 million.
Refer to Note 2 to the Consolidated Financial Statements for more information on these 2005 business combinations, and for information concerning 2004 and 2003 business combinations.
Purchases of investments in 2005 include the purchase from TI&M Beteiligungsgesellschaft mbH of 19 percent of I&T Innovation Technology (discussed previously under the Transportation business segment).
The purchase price of approximately $55 million is reported as Investments in the Consolidated Balance Sheet and as Purchases of Investments in the Consolidated Statement of Cash Flows.
Other Purchases of Investments and Proceeds from Sale of Investments in 2005 are primarily attributable to auction rate securities, which are classified as available-for-sale.
Prior to 2005, purchases of and proceeds from the sale of auction rate securities were classified as Cash and Cash Equivalents.
At December 31, 2004, the amount of such securities taken as a whole was immaterial to Cash and Cash Equivalents, and accordingly were not reclassified for 2004 and prior.
Proceeds from the sale of investments in 2003 include $26 million of cash received related to the sale of 3Ms 50% ownership in Durel Corporation to Rogers Corporation.
Additional purchases of investments totaled $5 million in 2005, $10 million in 2004 and $16 million in 2003.
These purchases include additional survivor benefit insurance and equity investments.
The Company is actively considering additional acquisitions, investments and strategic alliances.


Note 13.
Capital Stock In August 2008, the Company issued 2,419,932 shares of its common stock at a price of $17.3788 in a public offering, which resulted in net proceeds to the Company of approximately $42.0 million, after deducting offering expenses.
In March 2007, the Company issued 5,000,000 shares of common stock in a public offering, and in April 2007, an additional 80,068 shares of common stock were issued in connection with the offering upon the partial exercise of the underwriters over-allotment option.
The Company has authorized 1,000,000 shares of Class B Preferred Stock, $0.01 par value, of which the Board of Directors can set the designation, rights and privileges.
No shares of Class B Preferred Stock have been issued or are outstanding.


| In billions of dollars Dec. 31, 2015 Sept. 30, 2015 Dec. 31, 2014 | HQLA | Net outflows | LCR | HQLA in excess of net outflows |


rates, partially offset by a benefit from updating our variable annuity living benefit withdrawal utilization assumption.
See our Consolidated and Segment Results of Operations sections below for the pretax impacts on our revenues and expenses attributable to unlocking and additional discussion of the drivers of the unlocking impact.
We consolidate certain collateralized loan obligations (CLOs) and property funds for which we provide asset management services.
These entities are defined as consolidated investment entities (CIEs).
While the consolidation of the CIEs impacts our balance sheet and income statement, our exposure to these entities is unchanged and there is no impact to the underlying business results.
For further information on CIEs, see Note 4 to our Consolidated Financial Statements.
Changes in the valuation of the CIE assets and liabilities impact pretax income.
The net income (loss) of the CIEs is reflected in net income (loss) attributable to noncontrolling interests.
The results of operations of the CIEs are reflected in the Corporate & Other segment.
On a consolidated basis, the management fees we earn for the services we provide to the CIEs and the related general and administrative expenses are eliminated and the changes in the assets and liabilities related to the CIEs, primarily syndicated loans and debt, are reflected in net investment income.
We continue to include the fees from these entities in the management and financial advice fees line within our Asset Management segment.
While our consolidated financial statements are prepared in accordance with U. S.  generally accepted accounting principles (GAAP), management believes that operating measures, which exclude net realized investment gains or losses, net of the related DSIC and DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact on variable annuity guaranteed benefits, net of hedges and the related DSIC and DAC amortization; the market impact on indexed universal life benefits, net of hedges and the related DAC amortization, unearned revenue amortization and the reinsurance accrual; the market impact of hedges to offset interest rate changes on unrealized gains or losses for certain investments; integration and restructuring charges; income (loss) from discontinued operations; and the impact of consolidating CIEs, best reflect the underlying performance of our core operations and facilitate a more meaningful trend analysis.
Management uses certain of these non-GAAP measures to evaluate our financial performance on a basis comparable to that used by some securities analysts and investors.
Also, certain of these non-GAAP measures are taken into consideration, to varying degrees, for purposes of business planning and analysis and for certain compensation-related matters.
Throughout our Managements Discussion and Analysis, these non-GAAP measures are referred to as operating measures.
These non-GAAP measures should not be viewed as a substitute for U. S.  GAAP measures.
It is managements priority to increase shareholder value over a multi-year horizon by achieving our on-average, over-time financial targets.
Our financial targets are: ?
Operating total net revenue growth of 6% to 8%, ?
Operating earnings per diluted share growth of 12% to 15%, and ?
Operating return on equity excluding accumulated other comprehensive income (AOCI) of 19% to 23%.
The following tables reconcile our GAAP measures to operating measures:


| 2015 2014 2013 | Third-party sales | ATOI |


COMMITMENTS AND CONTINGENCIES LITIGATION We are involved in various legal proceedings, including commercial, competition, environmental, health, safety, product liability, and insurance matters.
In September 2010, the Brazilian Administrative Council for Economic Defense (CADE) issued a decision against our Brazilian subsidiary, Air Products Brasil Ltda.
, and several other Brazilian industrial gas companies for alleged anticompetitive activities.
CADE imposed a civil fine of R$179.2 million (approximately $55 at 30 September 2016) on Air Products Brasil Ltda.
This fine was based on a recommendation by a unit of the Brazilian Ministry of Justice, whose investigation began in 2003, alleging violation of competition laws with respect to the sale of industrial and medical gases.
The fines are based on a percentage of our total revenue in Brazil in 2003.
We have denied the allegations made by the authorities and filed an appeal in October 2010 with the Brazilian courts.
On 6 May 2014, our appeal was granted and the fine against Air Products Brasil Ltda.
was dismissed.
CADE has appealed that ruling and the matter remains pending.
We, with advice of our outside legal counsel, have assessed the status of this matter and have concluded that, although an adverse final judgment after exhausting all appeals is possible, such a judgment is not probable.
As a result, no provision has been made in the consolidated financial statements.
We estimate the maximum possible loss to be the full amount of the fine of R$179.2 million (approximately $55 at 30 September 2016) plus interest accrued thereon until final disposition of the proceedings.
Other than this matter, we do not currently believe there are any legal proceedings, individually or in the aggregate, that are reasonably possible to have a material impact on our financial condition, results of operations, or cash flows.
ENVIRONMENTAL In the normal course of business, we are involved in legal proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA: the federal Superfund law); Resource Conservation and Recovery Act (RCRA); and similar state and foreign environmental laws relating to the designation of certain sites for investigation or remediation.
Presently, there are approximately 33 sites on which a final settlement has not been reached where we, along with others, have been designated a potentially responsible party by the Environmental Protection Agency or are otherwise engaged in investigation or remediation, including cleanup activity at certain of our current and former manufacturing sites.
We continually monitor these sites for which we have environmental exposure.
Accruals for environmental loss contingencies are recorded when it is probable that a liability has been incurred and the amount of loss can be reasonably estimated.
The consolidated balance sheets at 30 September 2016 and 2015 included an accrual of $81.4 and $80.6, respectively, primarily as part of other noncurrent liabilities.
The environmental liabilities will be paid over a period of up to 30 years.
We estimate the exposure for environmental loss contingencies to range from $81 to a reasonably possible upper exposure of $95 as of 30 September 2016.


| Actual Allocations Target Allocations | Asset Class | Fixed income | Global equity | Private equity | Real estate and real assets | Global strategies | Hedge funds | Total |


Copyright?2016 Standard & Poor’s, a division of The McGraw-Hill Companies Inc.  All rights reserved.
Source: Research Data Group, Inc.  (www.
researchdatagroup.
com/S&P.
htm)


| December 31 2007 2006 | Sigma Fund | Investments | Property, plant and equipment | Intangible assets | Goodwill | $14,318 |


| -1 (2) December 31, 2007 December 31, 2006 | NAIC Designation | (in millions) | 1 | 2 | Subtotal Investment Grade | 3 | 4 | 5 | 6 | Subtotal Below Investment Grade | Total Private Fixed Maturities |


Cost of sales increased during fiscal 2010 as compared to fiscal 2009 primarily due to the associated increase in shrinkwrap shipments as a result of the launch of our CS5 products during fiscal 2010.
Subscription Cost of subscription revenue consists of expenses related to operating our network infrastructure, including depreciation expenses and operating lease payments associated with computer equipment, data center costs, salaries and related expenses of network operations, implementation, account management and technical support personnel, amortization of intangible assets and allocated overhead.
We enter into contracts with third-parties for the use of their data center facilities and our data center costs largely consist of the amounts we pay to these third-parties for rack space, power and similar items.
Cost of subscription revenue decreased during fiscal 2011 as compared to fiscal 2010 primarily due to a decrease in amortization expense related to certain intangible assets purchased through our acquisition of Omniture that were fully amortized at the end of fiscal 2011 offset in part by increases in costs associated with compensation and related benefits driven by additional headcount and increases in data center costs related to higher transaction volumes.
Cost of subscription revenue increased in fiscal 2010 as compared to fiscal 2009 as a result of our acquisition of Omniture in the fourth quarter of fiscal 2009 and the addition of its related data center costs.
Also included in cost of subscription revenue for fiscal 2010 is $58.4 million of amortization expense related to intangible assets acquired in conjunction with this acquisition.
Services and Support Cost of services and support revenue is primarily comprised of employee-related costs and associated costs incurred to provide consulting services, training and product support.
Cost of services and support revenue increased during fiscal 2011 as compared to fiscal 2010, primarily due to increases in costs associated with compensation and related benefits driven by additional headcount primarily from the Day acquisition.
Cost of services and support revenue increased during fiscal 2010 as compared to fiscal 2009, due to increases in costs associated with compensation and related benefits driven by additional headcount as a result of our acquisition of Omniture.


Off Balance Sheet Commitments See Item 8, Financial Statements and Supplementary Data - Note 18 , “Commitments and Contingencies - Off Balance Sheet Commitments,” for more information regarding undrawn capital commitments.


| Payments Due by Period | Contractual Obligations | Debt | Operating leases | Interest on debt | Pension obligations (a) | Capital commitment obligations (b) | Purchase and other commitments | Total contractual cash obligations (c), (d) |


| (Favorable) Unfavorable | 0.5 Percentage Point Increase | in millions | Actuarial Assumptions | Discount rate | Pension | Other postretirement benefits | Expected return on plan assets | Rate of compensation increase | (for salary-related plans) | Rate of increase in the per capita cost of covered healthcare benefits |


| Securities Exchange ActFile No. 1-1217 | Date Filed With Department of State | 2/18/1998 |


| 2013 2012 2011 | (In millions) | Sales and other operating revenues | Costs and expenses | Operating costs and expenses | Production and severance taxes | Exploration expenses, including dry holes and lease impairment | General, administrative and other expenses | Depreciation, depletion and amortization | Total costs and expenses | Results of operations before income taxes | Provision(benefit) for income taxes | Results of operations |


During the year ended December 31, 2018, Ameren, Ameren Missouri, and Ameren Illinois updated their respective provisional estimates in accordance with SEC staff guidance and recorded $13 million, $4 million, and $4 million, respectively, of income tax expense, primarily due to the application of proposed IRS regulations on depreciation transition rules.
The offsetting impact to Ameren’s, Ameren Missouri’s, and Ameren Illinois’ regulatory asset and regulatory liability balances was immaterial.
As of December 31, 2018, Ameren, Ameren Missouri, and Ameren Illinois have completed their accounting for certain effects of the TCJA.
For our regulated operations, reductions in accumulated deferred income tax balances due to the reduction in the federal statutory corporate income tax rate to 21% will result in amounts previously collected from utility customers for these deferred taxes being refundable to those customers, generally through reductions in future rates.
The TCJA includes provisions related to the IRS normalization rules that address the time period in which certain plant-related components of the excess deferred taxes are to be reflected in customer rates.
This time period for the Ameren Companies is approximately 30 to 60 years.
Other components of the excess deferred taxes will be reflected in customer rates as determined by our state and federal regulators, which could be a shorter time period than that applicable to certain plant-related components.
See Note 2 – Rate and Regulatory Matters for information regarding the various proceedings for the TCJA impacts with our regulators.
Missouri Income Tax Rate In 2018, legislation modifying Missouri tax law was enacted to decrease the state’s corporate income tax rate from 6.25% to 4%, effective January 1, 2020.
As a result, in 2018, Ameren’s and Ameren Missouri’s accumulated deferred tax balances were revalued, resulting in a net decrease of $122 million to their accumulated deferred tax liability, which was offset by a regulatory liability.
Additionally, Ameren recorded an immaterial amount to income tax expense.
As a result of its PISA election under Missouri Senate Bill 564, which prohibits a change in electric base rates prior to April 2020, Ameren Missouri anticipates that the effect of this tax decrease will be reflected in customer rates upon completion of its next regulatory rate review.
Ameren (parent) and nonregistrant subsidiaries do not expect this income tax decrease to have a material impact on net income.
Illinois Income Tax Rate In July 2017, Illinois enacted a law that increased the state’s corporate income tax rate from 7.75% to 9.5% as of July 1, 2017.
The law made the increase in the state’s corporate income tax rate permanent.
That rate was previously scheduled to go to 7.3% in 2025.
In 2017, Ameren recorded an expense of $14 million at Ameren (parent) due to the revaluation of accumulated deferred taxes and the estimated state apportionment of such taxes.
Beyond this expense, Ameren and Ameren Illinois do not expect this tax increase to have a material impact on their net income prospectively.
The tax increase is not expected to materially affect the earnings of the Ameren Illinois Electric Distribution, the Ameren Transmission, or the Ameren Illinois Transmission segments, since these businesses operate under formula ratemaking frameworks.
The tax increase


| 2016 $917 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total |


| 2016 Quarters 2015 Quarters | (Dollars in millions, except per share information) | Fully taxable-equivalent basis data-1 | Net interest income | Total revenue, net of interest expense | Net interest yield | Efficiency ratio |


| Year ended December 31, 2005 Year ended December 31, 2004 | Yield-1 | ($ in millions) | Fixed maturities | Trading account assets supporting insurance liabilities | Equity securities | Commercial loans | Policy loans | Short-term investments and cash equivalents | Other investments | Gross investment income before investment expenses | Investment expenses | Total investment income |


| Year ended December 31, | 2008 | Stock-based compensation: | Restricted stock and RSUs | Stock options | Long-term incentive plans funded by PNC | ESPP and other | Total stock-based compensation |


| Pension Benefits Other Postretirement Benefits | 2005 | 2006 | 2007 | 2008 | 2009 | 2010-2014 | Total |


| 2016 2015 2014 2013 2012 | December 31 Dollars in millions | Commercial | Commercial real estate | Equipment lease financing | Home equity | Residential real estate | Credit card | Other consumer | Total |


ITEM 7 / ENTERPRISE RISK MANAGEMENT ?
Paid losses recoverable – balances due from reinsurers for losses and loss adjustment expenses paid by our subsidiaries and billed, but not yet collected.  ?
Ceded loss reserves – ultimate ceded reserves for losses and loss adjustment expenses, including reserves for claims reported but not yet paid and estimates for IBNR.  ?
Ceded reserves for unearned premiums.
At December 31, 2015, total reinsurance recoverable assets were $20.4 billion.
These assets include general reinsurance paid losses recoverable of $1.2 billion, ceded loss reserves of $14.5 billion including reserves for IBNR, and ceded reserves for unearned premiums of $3.0 billion, as well as life reinsurance recoverables of $1.7 billion.
The methods used to estimate IBNR and to establish the resulting ultimate losses involve projecting the frequency and severity of losses over multiple years.
These methods are continually reviewed and updated by management.
Any adjustments are reflected in income.
We believe that the amount recorded for ceded loss reserves at December 31, 2015 reflects a reasonable estimate of the ultimate losses recoverable.
Actual losses may, however, differ, perhaps materially, from the reserves currently ceded.
The Reinsurance Credit Department (RCD) conducts periodic detailed assessments of the financial strength and condition of current and potential reinsurers, both foreign and domestic.
The RCD monitors both the financial condition of reinsurers as well as the total reinsurance recoverable ceded to reinsurers, and set limits with regard to the amount and type or exposure we are willing to take with reinsurers.
As part of these assessments, we attempt to identify whether a reinsurer is appropriately licensed, assess its financial capacity and liquidity; and evaluate the local economic and financial environment in which a foreign reinsurer operates.
The RCD reviews the nature of the risks ceded and the need for measures, including collateral to mitigate credit risk.
For example, in our treaty reinsurance contracts, we frequently include provisions that allow us to require a reinsurer to post collateral or use other measures to reduce exposure when a referenced event occurs.
Furthermore, we limit our unsecured exposure to reinsurers through the use of credit triggers such as insurer financial strength rating downgrades, declines in regulatory capital, or specified declines in risk-based capital (RBC) ratios.
We also set maximum limits for reinsurance recoverable exposure, which in some cases is the recoverable amount plus an estimate of the maximum potential exposure from unexpected events for a reinsurer.
In addition, credit executives within ERM review reinsurer exposures and credit limits and approve reinsurer credit limits above specified levels.
Finally, even where we conclude that uncollateralized credit risk is acceptable, we require collateral from active reinsurance counterparties where it is necessary for our subsidiaries to recognize the reinsurance recoverable assets for statutory accounting purposes.
At December 31, 2015, we held $7.4 billion of collateral, in the form of funds withheld, securities in reinsurance trust accounts and/or irrevocable letters of credit, in support of reinsurance recoverable assets from unaffiliated reinsurers.
We believe that no exposure to a single reinsurer represents an inappropriate concentration of risk to us, nor is our business substantially dependent upon any single reinsurance contract.
The following table presents information for each reinsurer representing in excess of five percent of our total reinsurance recoverable assets:


| 2013 2012 2011 | Additions to plant and equipment | Acquisitions, less cash acquired | Investments in and advances to unconsolidated affiliates | Capital Expenditures on a GAAP Basis | Capital lease expenditures(A) | Noncurrent liability related to purchase of shares from noncontrolling interests(A) | Capital Expenditures on a Non-GAAP Basis |


| Year ended December 31,(in millions) 2015 2014 2013 | Asset management fees | Investment management fees(a) | All other asset management fees(b) | Total asset management fees | Total administration fees(c) | Commissions and other fees | Brokerage commissions | All other commissions and fees | Total commissions and fees | Total asset management, administration and commissions | Year ended December 31, (in millions) | Operating lease income | Gain from sale of Visa B shares | Defined benefit pension plans | December 31, | (in millions) | Net gain/(loss) | Prior service credit/(cost) | Accumulated other comprehensive income/(loss), pretax, end of year | Pension plans | U.S. | Year ended December 31, (in millions) | Components of net periodic benefit cost | Benefits earned during the year | Interest cost on benefit obligations | Expected return on plan assets | Amortization: | Net (gain)/loss | Prior service cost/(credit) | Special termination benefits | Net periodic defined benefit cost | Other defined benefit pension plans(a) | Total defined benefit plans | Total defined contribution plans | Total pension and OPEB cost included in compensation expense | Changes in plan assets and benefit obligations recognized in other comprehensive income | Net (gain)/loss arising during the year | Prior service credit arising during the year | Amortization of net loss | Amortization of prior service (cost)/credit | Foreign exchange impact and other | Total recognized in other comprehensive income | Total recognized in net periodic benefit cost and other comprehensive income |


| 2006 2005 2004 | Amortization | Royalties | Research and product development | Advertising | Selling, distribution and administration |


ORSA 2014: On April 8, 2014, the Company acquired the remaining 25% of shares of Orsa International Paper Embalangens S. A.
(Orsa IP) from its joint venture partner, Jari Celulose, Papel e Embalagens S. A.
(Jari), a Grupo Orsa company, for approximately $127 million, of which $105 million was paid in cash with the remaining $22 million held back pending satisfaction of certain indemnification obligations by Jari.
International Paper will release the amount held back, or any amount for which we have not notified Jari of a claim, by March 30, 2016.
An additional $11 million, which was not included in the purchase price, was placed in an escrow account pending resolution of certain open matters.
During 2014, these open matters were successfully resolved, which resulted in $9 million paid out of escrow to Jari and correspondingly added to the final purchase consideration.
The remaining $2 million was released back to the Company.
As a result of this transaction, the Company reversed the $168 million of Redeemable noncontrolling interest included on the March 31, 2014 consolidated balance sheet.
The net difference between the Redeemable noncontrolling interest balance plus $14 million of currency translation adjustment reclassified out of Other comprehensive income less the 25% purchase price was reflected as an increase to Retained earnings on the consolidated balance sheet.2013: On January 14, 2013, International Paper and Jari formed Orsa IP with International Paper holding a 75% stake.
The value of International Paper's investment in Orsa IP was approximately $471 million.
Because International Paper acquired a majority control of the joint venture, Orsa IP's financial results have been consolidated with our Industrial Packaging segment from the date of formation on January 14, 2013.
The 25% owned by Jari was considered a redeemable noncontrolling interest and met the requirements to be classified outside permanent equity.
As such, the Company reported $163 million in Redeemable noncontrolling interest in the December 31, 2013 consolidated balance sheet.


| (In millions, except per share amounts) FirstQuarter SecondQuarter (f) (g)(f) ThirdQuarter FourthQuarter (f) TotalYear | 2014(e) | Product revenues, net | Unconsolidated joint business revenues | Other revenues | Total revenues | Gross profit -1 | Net income | Net income attributable to Biogen Inc. | Net income per share: | Basic earnings per share attributable to Biogen Inc. | Diluted earnings per share attributable to Biogen Inc. | Weighted-average shares used in calculating: | Basic earnings per share attributable to Biogen Inc. | Diluted earnings per share attributable to Biogen Inc. |


| 2015 2014 | 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 | Business combinations | Lapse of statute of limitations | Foreign currency translation | Balance at December 31 |


| December 31, 2007 | Cost or Amortized Cost | Less than | 20% | (In millions, except number of securities) | Fixed Maturity Securities: | Less than six months | Six months or greater but less than nine months | Nine months or greater but less than twelve months | Twelve months or greater | Total | Equity Securities: | Less than six months | Six months or greater but less than nine months | Nine months or greater but less than twelve months | Twelve months or greater | Total |


| Total Number ofShares (or Units)Purchased1 Average Price Paidper Share (or Unit)2 Total Number ofShares (or Units)Purchased as Part ofPublicly AnnouncedPlans or Programs3 Maximum Number (orApproximate Dollar Value)of Shares (or Units)that May Yet Be PurchasedUnder the Plans orPrograms3 | October 1 - 31 | November 1 - 30 | December 1 - 31 | Total |