| September 30, | 2015 | (In millions) | Balance Sheet Data: | Cash and cash equivalents and marketable securities -3 | Inventories | Total assets -4 | Notes payable -4 (5) | Total equity |


Sales and Trading Revenue The Corporation enters into trading derivatives to facilitate client transactions, for principal trading purposes, and to manage risk exposures arising from trading account assets and liabilities.
It is the Corporations policy to include these derivative instruments in its trading activities which include derivatives and non-derivative cash instruments.
The resulting risk from these derivatives is managed on a portfolio basis as part of the Corporations Global Markets business segment.
The related sales and trading revenue generated within Global Markets is recorded in various income statement line items including trading account profits and net interest income as well as other revenue categories.
However, the majority of income related to derivative instruments is recorded in trading account profits.
Sales and trading revenue includes changes in the fair value and realized gains and losses on the sales of trading and other assets, net interest income, and fees primarily from commissions on equity securities.
Revenue is generated by the difference in the client price for an instrument and the price at which the trading desk can execute the trade in the dealer market.
For equity securities, commissions related to purchases and sales are recorded in other income (loss).
Changes in the fair value of these securities are included in trading account profits.
For debt securities, revenue, with the exception of interest associated with the debt securities, is typically included in trading account profits.
Unlike commissions for equity securities, the initial revenue related to broker/dealer services for debt securities is typically included in the pricing of the instrument rather than being charged through separate fee arrangements.
Therefore, this revenue is recorded in trading account profits as part of the initial mark to fair value.
For derivatives, all revenue is included in trading account profits.
In transactions where the Corporation acts as agent, which include exchange-traded futures and options, fees are recorded in other income (loss).
Gains (losses) on certain instruments, primarily loans, that the Global Markets business segment shares with Global Banking are not considered trading instruments and are excluded from sales and trading revenue in their entirety.


Level 3 Rollforward The table below presents a summary of the changes in fair value for all level 3 derivatives.
In the table above: ° Changes in fair value are presented for all derivative assets and liabilities that are classified in level 3 as of the end of the period.
° Net unrealized gains/(losses) relates to instruments that were still held at period-end.
° If a derivative was transferred into level 3 during a reporting period, its entire gain or loss for the period is classified in level 3.
Transfers between levels are reported at the beginning of the reporting period in which they occur.
° Positive amounts for transfers into level 3 and negative amounts for transfers out of level 3 represent net transfers of derivative assets.
Negative amounts for transfers into level 3 and positive amounts for transfers out of level 3 represent net transfers of derivative liabilities.
° A derivative with level 1 and/or level 2 inputs is classified in level 3 in its entirety if it has at least one significant level 3 input.
° If there is one significant level 3 input, the entire gain or loss from adjusting only observable inputs (i. e. , level 1 and level 2 inputs) is classified in level 3.
° Gains or losses that have been classified in level 3 resulting from changes in level 1 or level 2 inputs are frequently offset by gains or losses attributable to level 1 or level 2 derivatives and/or level 1, level 2 and level 3 cash instruments.
As a result, gains/(losses) included in the level 3 rollforward below do not necessarily represent the overall impact on the firms results of operations, liquidity or capital resources.


The Company saw an increase in revenue in 2023.
Table 1: Revenue Details
This revenue increase was due to the launch of new products.


| As of December 31, | 2018 | (in millions) | Federal net operating and capital loss carryforwards | State net operating and capital loss carryforwards-1 | Foreign operating loss carryforwards-2 |


| Year Ended December 31, | 2011 | ($ in thousands) | Distribution fees | U.S. high-grade | Eurobond | Total distribution fees | Variable transaction fees | U.S. high-grade | Eurobond | Other | Total transaction fees | Total commissions |


| 2009  Permitted w/o   Approval -1 2008 2007 | Company | (In millions) | Metropolitan Life Insurance Company | MetLife Insurance Company of Connecticut | Metropolitan Tower Life Insurance Company | Metropolitan Property and Casualty Insurance Company |


| Beginning of year 571 | Revisions of previous estimates | Improved recovery | Purchases of reserves in place | Extensions, discoveries, and other additions | Dispositions | Transfer to Proved Developed | End of year |


| 2013 | Labor-related deemed claim -1 | Aircraft and facility financing renegotiations and rejections -2, -3 | Fair value of conversion discount -4 | Professional fees | Other | Total reorganization items, net |


In the normal course of business, we originate or purchase loan products with contractual characteristics that, when concentrated, may increase our exposure as a holder of those loan products.
Possible product features that may create a concentration of credit risk would include a high original or updated LTV ratio, terms that may expose the borrower to future increases in repayments above increases in market interest rates, and interest-only loans, among others.
We originate interest-only loans to commercial borrowers.
Such credit arrangements are usually designed to match borrower cash flow expectations (e. g. , working capital lines, revolvers).
These products are standard in the financial services industry and product features are considered during the underwriting process to mitigate the increased risk that the interest-only feature may result in borrowers not being able to make interest and principal payments when due.
We do not believe that these product features create a concentration of credit risk.
At December 31, 2016, we pledged $22.0 billion of commercial loans to the Federal Reserve Bank (FRB) and $60.8 billion of residential real estate and other loans to the Federal Home Loan Bank (FHLB) as collateral for the contingent ability to borrow, if necessary.
The comparable amounts at December 31, 2015 were $20.2 billion and $56.4 billion, respectively.


| In millions 2018 2017 2016 | Industrial Packaging | Global Cellulose Fibers | Printing Papers | Subtotal | Corporate and other | Capital Spending |


Noble Energy, Inc.  Notes to Consolidated Financial Statements Additional fair value disclosures about plan assets are as follows:
(1) See Note 1.
Summary of Significant Accounting Policies - Fair Value Measurements for a description of the fair value hierarchy.
Additional information about plan assets, including methods and assumptions used to estimate the fair values of plan assets, is as follows: Federal Money Market Funds Investments in federal money market funds consist of portfolios of high quality fixed income securities (such as US Treasury securities) which, generally, have maturities of less than one year.
The fair value of these investments is based on quoted market prices for identical assets as of the measurement date.
Mutual Funds Investments in mutual funds consist of diversified portfolios of common stocks and fixed income instruments.
The common stock mutual funds are diversified by market capitalization and investment style as well as economic sector and industry.
The fixed income mutual funds are diversified primarily in government bonds, mortgage backed securities, and corporate bonds, most of which are rated investment grade.
The fair values of these investments are based on quoted market prices for identical assets as of the measurement date.
Common Collective Trust Funds Investments in common collective trust funds consist of common stock investments in both US and non-US equity markets.
Portfolios are diversified by market capitalization and investment style as well as economic sector and industry.
The investments in the non-US equity markets are used to further enhance the plan’s overall equity diversification which is expected to moderate the plan’s overall risk volatility.
In addition to the normal risk associated with stock market investing, investments in foreign equity markets may carry additional political, regulatory, and currency risk which is taken into account by the committee in its deliberations.
The fair value of these investments is based on quoted prices for similar assets in active markets.
All of the investments in common collective trust funds represent exchange-traded securities with readily observable prices.
Risk Management The oil and gas business is subject to many significant risks, including operational, strategic, financial and compliance/ regulatory risks.
We strive to maintain a proactive enterprise risk management (ERM) process to plan, organize, and control our activities in a manner which is intended to minimize the effects of risk on our capital, cash flows and earnings.
ERM expands our process to include risks associated with accidental losses, as well as operational, strategic, financial, compliance/regulatory, and other risks.
Our ERM process is designed to operate in an annual cycle, integrated with our long range plans, and supportive of our capital structure planning.
Elements include, among others, cash flow at risk analysis, credit risk management, a commodity hedging program to reduce the impacts of commodity price volatility, an insurance program to protect against disruptions in our cash flows, a robust global compliance program, and government and community relations initiatives.
We benchmark our program against our peers and other global organizations.
See Item 1A.
Risk Factors for a discussion of specific risks we face in our business.
Available Information Our website address is www.
nobleenergyinc.
com.
Available on this website under “Investors – SEC Filings,” free of charge, are our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements, Forms 3, 4 and 5 filed on behalf of directors and executive officers and amendments to those reports as soon as reasonably practicable after such materials are electronically filed with or furnished to the SEC.
Alternatively, you may access these reports at the SEC’s website at www.
sec.
gov.
Also posted on our website under “About Us – Corporate Governance”, and available in print upon request made by any stockholder to the Investor Relations Department, are charters for our Audit Committee, Compensation, Benefits and Stock Option Committee, Corporate Governance and Nominating Committee, and Environment, Health and Safety Committee.
Copies of the Code of Conduct and the Code of Ethics for Chief Executive and Senior Financial Officers (the Codes) are also posted on our website under the “Corporate Governance” section.
Within the time period required by the SEC and the NYSE, as applicable, we will post on our website any modifications to the Codes and any waivers applicable to senior officers as defined in the applicable Code, as required by the Sarbanes-Oxley Act of 2002.
Item 1A.
Risk Factors Described below are certain risks that we believe are applicable to our business and the oil and gas industry in which we operate.
There may be additional risks that are not presently material or known.
You should carefully consider each of the following risks and all other information set forth in this Annual Report on Form 10-K.
If any of the events described below occur, our business, financial condition, results of operations, cash flows, liquidity or access to the capital markets could be materially adversely affected.
In addition, the current global economic and political environment intensifies many of these risks.
We are currently experiencing a severe downturn in the oil and gas business cycle, and an extended or more severe downturn could have material adverse effects on our operations, our liquidity, and the price of our common stock.
Our ability to operate profitably, maintain adequate liquidity, grow our business and pay dividends on our common stock depend highly upon the prices we receive for our crude oil, natural gas, and NGL production.
Commodity prices are volatile.
Crude oil prices, in particular, began to decline significantly in the fourth quarter 2014, declined further in 2015 and have continued to trade at a low level or decline further thus far in 2016.
High and low monthly daily average prices for crude oil and high and low contract expiration prices for natural gas for the last three years and into 2016 were as follows:


MetLife, Inc.  Notes to the Consolidated Financial Statements  (Continued) Although it no longer received compensation, the Company continued to be responsible for managing the funds of those participants that transferred to the government system.
This change resulted in the establishment of a liability for future servicing obligations and the elimination of the Companys obligations under death and disability policy coverages.
During 2008, the future servicing obligation was reduced by $23 million, net of income tax, when information regarding the level of participation in the government pension plan became fully available.
In September 2008, the Argentine Supreme Court ruled against the validity of the 2002 Pesification Law enacted by the Argentine government.
This ruling applied to certain social security pension annuity contractholders that had filed a lawsuit against the 2002 Pesification Law.
The annuity contracts impacted by this ruling, which were deemed peso denominated under the 2002 Pesification Law, are now considered to be U. S.  dollar denominated obligations of the Company.
The applicable contingent liabilities were then adjusted and refined to be consistent with this ruling.
The impact of the refinements resulting from the change in these contingent liabilities and the associated future policyholder benefits was an increase to net income of $34 million, net of income tax, during the year ended December 31, 2008.
In October 2008, the Argentine government announced its intention to nationalize private pensions and, in December 2008, the Argentine government nationalized the private pension system seizing the underlying investments of participants which were being managed by the Company.
With this action, the Companys pension business in Argentina ceased to exist and the Company eliminated certain assets and liabilities held in connection with the pension business.
Deferred acquisition costs, deferred tax assets, and liabilities  primarily the liability for future servicing obligation referred to above  were eliminated and the Company incurred severance costs associated with the termination of employees.
The impact of the elimination of assets and liabilities and the incurral of severance costs was an increase to net income of $6 million, net of income tax, during the year ended December 31, 2008.
In March 2009, in light of market developments resulting from the Supreme Court ruling contrary to the Pesification Law and the implementation by the Company of a program to allow the contractholders that had not filed a lawsuit to convert to U. S.  dollars the social security annuity contracts denominated in pesos by the Pesification Law, the Company further reduced the outstanding contingent liabilities by $108 million, net of income tax, which was partially offset by the establishment of contingent liabilities from the implementation of the program to convert these contracts to U. S.  dollars of $13 million, net of income tax, resulting in a decrease to net loss of $95 million, net of income tax, for the year ended December 31, 2009.
Further governmental or legal actions are possible in Argentina.
Such actions may impact the level of existing liabilities or may create additional obligations or benefits to the Companys operations in Argentina.
Management has made its best estimate of its obligations based upon information currently available; however, further governmental or legal actions could result in changes in obligations which could materially impact the amounts presented within the consolidated financial statements.


Principal Financial Group, Inc.  Notes to Consolidated Financial Statements  (continued) 16.
Stockholders Equity  (continued) On March 31, 2008, June 30, 2008, September 30, 2008 and December 30, 2008, we paid a dividend of $8.2 million, $8.3 million, $8.2 million and $8.3 million, respectively, equal to $1.39 per share on Series A non-cumulative perpetual preferred stock and equal to $0.41 per share on Series B non-cumulative perpetual preferred stock.
Dividends were paid to stockholders of record as of March 13, 2008, June 12, 2008, September 11, 2008 and December 11, 2008, respectively.
On March 30, 2007, July 2, 2007, October 1, 2007 and December 31, 2007, we paid a dividend of $8.2 million, $8.3 million, $8.2 million and $8.3 million, respectively, equal to $1.39 per share on Series A non-cumulative perpetual preferred stock and equal to $0.41 per share on Series B non-cumulative perpetual preferred stock.
Dividends were paid to stockholders of record as of March 15, 2007, June 14, 2007, September 13, 2007 and December 13, 2007, respectively.
On March 30, 2006, June 30, 2006, October 2, 2006, and January 2, 2007, we paid a dividend of $8.3 million, $8.2 million, $8.3 million and $8.2 million, respectively, equal to $1.39 per share on Series A non-cumulative perpetual preferred stock and equal to $0.41 per share on Series B non-cumulative perpetual preferred stock.
Dividends were paid to stockholders of record as of March 15, 2006, June 15, 2006, September 14, 2006, and December 14, 2006, respectively.
Common Stock On December 5, 2008, we paid an annual dividend of $116.7 million, equal to $0.45 per share, to stockholders of record as of November 14, 2008.
On December 7, 2007, we paid an annual dividend of $235.6 million, equal to $0.90 per share, to stockholders of record as of November 16, 2007.
On December 15, 2006, we paid an annual dividend of $214.7 million, equal to $0.80 per share, to stockholders of record as of November 22, 2006.
During November 2007, our Board of Directors authorized a share repurchase program of up to $500.0 million of our outstanding common stock.
On November 30, 2007, we entered into an accelerated common stock repurchase agreement with a third party investment bank for an aggregate purchase price of $250.0 million.
On this date, we paid $250.0 million and received the initial delivery of 2.9 million common shares, while retaining the right to receive additional common shares over the programs execution period.
The accelerated common stock repurchase agreement was completed in January 2008, at which time we received 0.9 million additional common shares under this agreement.
As of December 31, 2008, $250.0 million remained available under the November 2007 authorization.
In the fourth quarter of 2008, we suspended purchases of the remaining $250.0 million available under the November 2007 authorization.
On May 19, 2006, following our Board of Directors share repurchase authorization, we entered into an accelerated common stock repurchase agreement with a third party investment bank for an aggregate purchase price of $500.0 million.
On this date, we paid $500.0 million and received the initial delivery of 7.7 million common shares, while retaining the right to receive additional common shares depending on the volume weighted average share price of our common stock over the programs duration.
The program was completed in November 2006.
Under this program, we purchased a total of 9.3 million common shares.
In the last three years, our Board of Directors has authorized various repurchase programs under which we are allowed to purchase shares of our outstanding common stock.
Shares repurchased under these programs are accounted for as treasury stock, carried at cost and reflected as a reduction to stockholders equity.
Reconciliation of Outstanding Shares


| Year Ended December 31, 2018 2017 2016 | Balance at beginning of year | Net charges to costs and expenses1 | Write-offs | Other2 | Balance at end of year | Sales Volumes | Crude Oil &Condensate(MBbl/d) | Year Ended December 31, 2010 | United States-2 | Equatorial Guinea-3 (4) | Israel | North Sea | Ecuador-5 | China | Total Consolidated Operations | Equity Investees-6 | Total | Year Ended December 31, 2009 | United States-2 | Equatorial Guinea-3 (4) | Israel | North Sea | Ecuador | China | Total Consolidated Operations | Equity Investees-6 | Total | Year Ended December 31, 2008 | United States-2 | Equatorial Guinea-3 (4) | Israel | North Sea | Ecuador | China | Total Consolidated Operations | Equity Investees-6 | Total |


| Amount Ratios | December 31Dollars in millions | Risk-based capital | Common equity Tier 1 | PNC | PNC Bank | Tier 1 | PNC | PNC Bank | Total | PNC | PNC Bank | Leverage | PNC | PNC Bank |


Effective March 1, 2003, Global Payments adopted Statements of Financial Accounting Standard No.148, “Accounting for Stock-Based Compensation—Transition and Disclosure” (“SFAS No.148”).
SFAS No.148 addresses alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based employee compensation.
In addition, SFAS No.148 amends the disclosure requirements of Statements of Financial Accounting Standard No.123, “Accounting for Stock-Based Compensation” (“SFAS No.123”) to require prominent disclosure in both annual and interim financial statements about the method of accounting for stock-based employee compensation and the effect of the method used on reported results.
At May 31, 2004, the Company has two stock-based employee compensation plans, which are described more fully in Note 9.
The Company accounts for these plans under the recognition and measurement principles of APB Opinion No.25, “Accounting for Stock Issued to Employees,” and related interpretations.


Year Ended December 31, 2017, as Compared to 2016 Other’s higher net expense was driven by the Tax Act, partially offset by prior year losses on forward-starting interest rate swaps and other costs related to the Piedmont acquisition, decreased severance expenses, prior year donations to the Duke Energy Foundation and insurance proceeds resulting from settlement of the shareholder litigation related to the Progress Energy merger.
The following is a detailed discussion of the variance drivers by line item.
Operating Revenues.
The increase was primarily due to higher OVEC (Ohio Valley Electric Corporation) revenues and prior year customer credits related to Piedmont merger commitments.
See Note 2 to the Consolidated Financial Statements, “Acquisitions and Dispositions,” for additional information.
Operating Expenses.
The decrease was primarily due to lower transaction and integration costs associated with the Piedmont acquisition, prior year severance expenses related to cost savings initiatives, donations to the Duke Energy Foundation in 2016 as well as prior year depreciation expense and other integration costs related to the Progress Energy merger.
The Duke Energy Foundation is a nonprofit organization funded by Duke Energy shareholders that makes charitable contributions to selected nonprofits and government subdivisions.
Other Income and Expenses.
The increase was primarily driven by insurance proceeds resulting from settlement of the shareholder litigation related to the Progress Energy merger, higher earnings from the equity method investment in NMC and increased returns on investments that fund certain employee benefit obligations.
Interest Expense.
The decrease was primarily due to prior year losses on forward-starting interest rate swaps related to Piedmont pre-acquisition financing, partially offset by higher interest costs on $3.75 billion of debt issued in August 2016 to fund the acquisition.
For additional information see Notes 2, 6 and 14 to the Consolidated Financial Statements, “Acquisitions and Dispositions,” “Debt and Credit Facilities” and “Derivatives and Hedging,” respectively.
Income Tax Benefit.
The variance was primarily due to the impact of the Tax Act and a decrease in pretax loss.
See the Tax Cuts and Jobs Act section above for additional information on the Tax Act and the impact on the effective tax rate.
Year Ended December 31, 2016, as Compared to 2015 Other’s higher net expense was driven by costs related to the Piedmont acquisition, higher charitable donations and higher interest expense related to the Piedmont acquisition financing.
The following is a detailed discussion of the variance drivers by line item.
Operating Revenues.
The decrease was primarily due to customer credits recorded related to Piedmont merger commitments.
See Note 2 to the Consolidated Financial Statements, “Acquisitions and Dispositions,” for additional information.


| Payments due by | Total | (In millions) | Debt-1 | Operating leases-2 | Data processing, outsourcing agreements and other purchase obligations-3 | Other long-term liabilities-4 (6) | Interest payments-5 | $3,834.1 |


then current Treasury rate (as defined) plus 15 basis points for the 2020 senior notes and 20 basis points for the 2040 notes.
Prior to November 2010, the Company was subject to a replacement capital covenant that it had granted to the holders of its 6.75% senior notes due June 20, 2036 (the senior notes).
The replacement capital covenant restricted the Company’s ability to repurchase its $1.00 billion in outstanding 6.25% fixed-to-floating rate junior subordinated debentures due March 15, 2067 (the debentures).
In November 2010, the Company paid approximately $4 million to holders of the senior notes to terminate the replacement capital covenant.
Following the termination, the Company purchased approximately $885 million aggregate principal amount of the debentures.
A $60 million pretax loss was recognized in 2010 related to these transactions.
On September 16, 2010, the Company repaid the remaining $4 million principal balance on its 7.81% private placement senior notes.
On August 23, 2010, the Company’s $21 million, 7.415% medium-term notes matured and were fully paid.
On April 15, 2010, the Company’s $250 million, 8.125% senior notes matured and were fully paid.
All of these debt payments were made from internally-generated funds.
The amount of debt obligations, other than commercial paper, that becomes due in 2013 is $500 million.
In 2014, no debt obligations become due.
In 2015, the amount of debt obligations, other than commercial paper, that comes due is $400 million.
The Company may refinance maturing debt through funds generated internally or, depending on market conditions, through funds generated externally, including as a result of the issuance of debt or other securities.


| Amount (In Millions) | Plant (including nuclear fuel) | Decommissioning trust funds | Other assets | Total assets acquired | Purchased power agreement (below market) | Decommissioning liability | Other liabilities | Total liabilities assumed | Net assets acquired |


Insurance We maintain insurance of the types that we believe are customary in the airline industry, including insurance for public liability, passenger liability, property damage, and all-risk coverage for damage to its aircraft.
Principal coverage includes liability for injury to members of the public, including passengers, damage to property of AAG, its subsidiaries and others, and loss of or damage to flight equipment, whether on the ground or in flight.
We also maintain other types of insurance such as workers’ compensation and employer’s liability, with limits and deductibles that we believe are standard within the industry.
Since September 11, 2001, we and other airlines have been unable to obtain coverage for liability to persons other than employees and passengers for claims resulting from acts of terrorism, war or similar events, which is called war risk coverage, at reasonable rates from the commercial insurance market.
We, therefore, purchased our war risk coverage through a special program administered by the FAA, as have most other U. S.  airlines.
This program, which currently expires September 30, 2014,
has been extended numerous times in the past.
If this program were not to be extended, we would likely face a material increase in the cost of war risk coverage, and because of competitive pressures in the industry, our ability to pass this additional cost to passengers may be limited.
In addition, we have obtained third-party war risk (terrorism) insurance through a special program administered by the FAA, resulting in lower premiums than if we had obtained this insurance in the commercial insurance market.
If the federal insurance program terminates, we would likely face a material increase in the cost of war risk insurance.
See Part I, Item 1A.
Risk Factors - " Increases in insurance costs or reductions in insurance coverage may adversely impact our operations and financial results. "
In addition, insurers significantly increased the premiums for aviation insurance in general following September 11, 2001.
While the price of commercial insurance has declined since the period immediately after the terrorist attacks of September 11, 2001, if commercial insurance carriers further reduce the amount of insurance coverage available to the Company or significantly increase its cost, the Company would be materially adversely affected.


| 2016 2015 | Vehicles | Aircraft | Buildings | Accumulated amortization | Property, plant and equipment subject to capital leases |


Litigation Matters.
For asserted claims and assessments, liabilities are recorded when an unfavorable outcome of a matter is


| Millions of Dollars 2007 2006 2005 | Cash provided by operating activities | Cash used in investing activities | Dividends paid | Free cash flow |


increased investment in programming to support subscriber growth, higher offer costs and continued investment in Presto, partially offset by lower depreciation expense resulting from Foxtels reassessment of the useful lives of cable and satellite installations.
Net income decreased as a result of the lower operating income noted above, partially offset by lower income tax expense.
(b) Other equity affiliates, net for the fiscal year ended June 30, 2016 includes losses primarily from the Companys interests in Draftstars and Elara Technologies, which owns PropTiger.
Interest, netInterest, net for the fiscal year ended June 30, 2016 decreased $13 million, or 23%, as compared to fiscal 2015, primarily due to the negative impact of foreign currency fluctuations and interest expense associated with the REA Facility.
(See Note 9 to the Consolidated Financial Statements).


| Years Ended December 31, 2009 2008 2007 | Segment revenue | Segment operating income | Segment operating income margin |


| September 24, 2005 September 25, 2004 September 27, 2003 | Beginning allowance balance | Charged to costs and expenses | Deductions (a) | Ending allowance balance |


| Outstanding Regional Classes and Seriesof Common Stock Issued inthe Reorganization Converted Classes and Series of Common Stock Issued in the True-Up Number of Regional Classes and Series of Common Stock Issued in the Reorganization True-up Conversion Ratio Number of Converted Classes and Series of Common Stock after the True-Up | Class USA-1 | Class EU (series I) | Class EU (series II) | Class EU (series III) | Class Canada | Class AP | Class LAC | Class CEMEA |


| 2014 2013 2012 | Test & Measurement | Environmental | Life Sciences & Diagnostics | Dental | Industrial Technologies |


| Shares Weighted-AverageGrant DateFair Value | Unvested restricted shares outstanding at December 31, 2011 | Granted | Forfeited | Vested | Unvested restricted shares outstanding at December 31, 2012 | Granted | Forfeited | Vested | Unvested restricted shares outstanding at December 31, 2013 | Granted | Forfeited | Vested | Unvested restricted shares outstanding at December 31, 2014 |


CONSOLIDATED RESULTS Net sales and revenue and operating income numbers reported in our consolidated results do not include the activity of our discontinued operations: ?Containerboard, Packaging and Recycling operations (sold in August 2008); ?Australian operations (sold in July 2008); ?Trus Joist?Commercial division (held for sale as of December 2008); ?Fine Paper operations (divested in March 2007); ?Irish composite panel operations (sold in November 2006); and ?North American composite panel operations (sold in July 2006).
We report these activities and results as discontinued operations in our Consolidated Statement of Earnings.
However, we include the results of these operations in the segment discussions that follow.
See Note 3: Discontinued Operations and Assets Held For Sale in the Notes to Consolidated Financial Statements for more information about our discontinued operations.
HOW WE DID IN 2008 Net Sales and Revenues, Operating Income (Loss), Earnings From Discontinued Operations and Net Earnings (Loss)


| 2007 2006 2005 | (Thousands of Dollars) | Service cost | Interest cost | Expected return on plan assets | Amortization of prior service cost | Amortization of net loss | Net periodic pension cost (credit) under SFAS No. 87 | Credits not recognized due to effects of regulation | Net benefit credit recognized for financial reporting | Significant Assumptions Used to Measure Costs | Discount rate | Expected average long-term increase in compensation level | Expected average long-term rate of return on assets | Regulated Electric Utility | (Thousands of Dollars) | 2007 | Operating revenues from external customers | Intersegment revenues | Total revenues | Depreciation and amortization | Financing costs, mainly interest expense | Income tax expense (benefit) | Income (loss) from continuing operations | 2006 | Operating revenues from external customers | Intersegment revenues | Total revenues | Depreciation and amortization | Financing costs, mainly interest expense | Income tax expense (benefit) | Income (loss) from continuing operations | 2005 | Operating revenues from external customers | Intersegment revenues | Total revenues | Depreciation and amortization | Financing costs, mainly interest expense | Income tax expense (benefit) | Income (loss) from continuing operations |


Credit Facility In August 2018, we entered into a revolving credit agreement with certain lenders which provides for a $500.0 million revolving unsecured credit facility maturing on August 7, 2023.
In connection with entering into the $500.0 million credit facility, we also terminated our $1.0 billion unsecured revolving credit facility.
We are obligated to pay interest on loans under the new credit facility and other customary fees for a credit facility of this size and type, including an upfront fee and an unused commitment fee.
The interest rate for the new credit facility is determined based on calculations using certain market rates as set forth in the credit agreement.
As of December 31, 2018, no amounts had been drawn under the credit facility.


| (In thousands) 2015 % ofRevenue 2014 % ofRevenue % Change | Revenues | System sales | Support and maintenance | Services | Reimbursed travel | Total revenues | Costs of revenue | Costs of revenue | Total margin | Operating expenses | Sales and client service | Software development | General and administrative | Amortization of acquisition-related intangibles | Total operating expenses | Total costs and expenses | Operating earnings | Other income, net | Income taxes | Net earnings |


(1) The number of securities in column (A) include 22,290 shares of common stock underlying performance stock units if maximum performance levels are achieved; the actual number of shares, if any, to be issued with respect to the performance stock units will be based on performance with respect to specified financial and relative stock price measures.
ITEM?13.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE For the information required by this Item?13, see “Certain Transactions” and “Corporate Governance” in the Proxy Statement for our 2019 Annual Meeting, which information is incorporated herein by reference.
ITEM?14.
PRINCIPAL ACCOUNTING FEES AND SERVICES For the information required by this Item?14, see “Audit and Non-Audit Fees” and “Audit Committee Pre-Approval Procedures” in the Proxy Statement for our 2019 Annual Meeting, which information is incorporated herein by reference.


Commitments and Contingencies The Company is involved in a number of legal proceedings, lawsuits and claims incidental to the normal conduct of business, relating to such matters as product liability, antitrust, past waste disposal practices and release of chemicals into the environment.
While it is impossible at this time to determine with certainty the ultimate outcome of these proceedings, lawsuits and claims, the Company believes, based on the advice of legal counsel, that adequate provisions have been made and that the ultimate outcomes will not have a material adverse effect on the financial position of the Company, but may have a material adverse effect on the results of operations or cash flows in any given accounting period.
Plumbing Actions CNA Holdings, Inc.  (CNA Holdings), a U. S.  subsidiary of the Company, which included the U. S.  business now conducted by the Ticona segment, along with Shell Oil Company (Shell), E. I.  DuPont de Nemours and Company (DuPont) and others, has been a defendant in a series of lawsuits, including a number of class actions, alleging that plastics manufactured by these companies that were utilized in the production of plumbing systems for residential property were defective or caused such plumbing systems to fail.
Based on, among other things, the findings of outside experts and the successful use of Ticonas acetal copolymer in similar applications, CNA Holdings does not believe Ticonas acetal copolymer was defective or caused the plumbing systems to fail.
In many cases


During the year ended November 30, 2010, we recorded $10.5 million of our share of valuation adjustments related to the assets of unconsolidated entities in which we have investments, compared to $101.9 million for the year ended November 30, 2009.
In addition, we recorded $1.7 million and $89.0 million, respectively, of valuation adjustments to our investments in unconsolidated entities for the years ended November 30, 2010 and 2009.
We will continue to monitor our investments in joint ventures and the recoverability of assets owned by those joint ventures.
The summary of our net recourse exposure related to the Lennar Homebuilding unconsolidated entities in which we have investments was as follows:


Contractual Obligations.
The following table shows our contractual obligations for the period indicated:
(1) Interest expense on 6.6% long term notes is assumed to be fixed through contractual term.
(2) Loss and LAE reserves represent our best estimate of losses from claim and related settlement costs.
Both the amounts and timing of such payments are estimates, and the inherent variability of resolving claims as well as changes in market conditions make the timing of cash flows uncertain.
Therefore, the ultimate amount and timing of loss and LAE payments could differ from our estimates.
The contractual obligations for senior notes, long term notes and junior subordinated debt are the responsibility of Holdings.
We have sufficient cash flow, liquidity, investments and access to capital markets to satisfy these obligations.
Holdings generally depends upon dividends from Everest Re, its operating insurance subsidiary for its funding, capital contributions from Group or access to the capital markets.
Our various operating insurance and reinsurance subsidiaries have sufficient cash flow, liquidity and investments to settle outstanding reserves for losses and LAE.
Management believes that we, and each of our entities, have sufficient financial resources or ready access thereto, to meet all obligations.


THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Managements Discussion and Analysis In the table above: ° Deduction for goodwill and identifiable intangible assets, net of deferred tax liabilities, included goodwill of $3.67 billion as of both December 2017 and December 2016, and identifiable intangible assets of $373 million and $429 million as of December 2017 and December 2016, respectively, net of associated deferred tax liabilities of $704 million and $1.08 billion as of December 2017 and December 2016, respectively.
° Deduction for investments in nonconsolidated financial institutions represents the amount by which our investments in the capital of nonconsolidated financial institutions exceed certain prescribed thresholds.
The decrease from December 2016 to December 2017 primarily reflects reductions in our fund investments.
° Deduction for investments in covered funds represents our aggregate investments in applicable covered funds, excluding investments that are subject to an extended conformance period.
This deduction was not subject to a transition period.
See Business  Regulation in Part I, Item 1 of this Form 10-K for further information about the Volcker Rule.
° Other adjustments within CET1 primarily include the overfunded portion of our defined benefit pension plan obligation net of associated deferred tax liabilities, disallowed deferred tax assets, credit valuation adjustments on derivative liabilities, debt valuation adjustments and other required credit risk-based deductions.
° Qualifying subordinated debt is subordinated debt issued by Group Inc.  with an original maturity of five years or greater.
The outstanding amount of subordinated debt qualifying for Tier 2 capital is reduced upon reaching a remaining maturity of five years.
See Note 16 to the consolidated financial statements for further information about our subordinated debt.
See Note 20 to the consolidated financial statements for information about our transitional capital ratios, which represent the ratios that are applicable to us as of both December 2017 and December 2016.


| 2008 83,382 | 2009 | 2010 | 2011 | 2012 | Thereafter | Total |


| December 31, | (DOLLARS IN THOUSANDS) | ASSETS | Employee and retiree benefits | Credit and net operating loss carryforwards-1 | Property, plant and equipment, net | Trademarks and other-1 | Amortizable R&D expenses | Other, net | Gross deferred tax assets | Valuation allowance-1 | Total net deferred tax assets |


| December 31, 2013 December 31, 2012 | Total | Assets | Money market funds | Available-for-sale investments | Derivatives | Total assets | Liabilities | Derivatives | Total liabilities |


Software Development Costs Capitalization of software development costs for software to be sold, leased, or otherwise marketed begins upon the establishment of technological feasibility, which is generally the completion of a working prototype that has been certified as having no critical bugs and is a release candidate.
Amortization begins once the software is ready for its intended use, generally based on the pattern in which the economic benefits will be consumed.
To date, software development costs incurred between completion of a working prototype and general availability of the related product have not been material.
Internal Use Software We capitalize costs associated with customized internal-use software systems that have reached the application development stage.
Such capitalized costs include external direct costs utilized in developing or obtaining the applications and payroll and payroll-related expenses for employees, who are directly associated with the development of the applications.
Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose.
Income Taxes We use the asset and liability method of accounting for income taxes.
Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year.
In addition, deferred tax assets and liabilities are recognized for expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards.
We record a valuation allowance to reduce deferred tax assets to an amount for which realization is more likely than not.
CITIZENS FINANCIAL GROUP, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 184 Total income tax expense is presented below:


Table 51: Alternate Interest Rate Scenarios: One Year Forward


| Pension Postretirement | 2017 | Discount rates: | Service cost | Interest cost | Expected rate of return on plan assets | Rate of compensation increase | Health care cost trend rate |


2014 was driven by higher operating expenses from expanding our commercial infrastructure, additional research and development costs, the implementation of the medical device tax in the U. S.  in January 2013, and additional legal fees to comply with the subpoena received from the Department of Justice in October 2012 and defend ourselves from other legal claims, which were partially offset by increased Impella sales resulting from greater demand for our products, particularly the Impella CP.
Liquidity and Capital Resources At March 31, 2015, our total cash, cash equivalents, and short and long-term marketable securities totaled $146.0 million, an increase of $27.7 million compared to $118.3 million at March 31, 2014.
The increase in our cash, cash equivalents, and short and long-term marketable securities was due primarily to positive cash flows from operations in fiscal 2015 and proceeds from stock option exercises, partially offset by the ECP and AIS acquisitions discussed above in Overview.
 We paid approximately $15.7 million in net cash for the initial purchase price of these acquisitions.
We also could be required to pay up to an additional $15.0 million, which may be paid, at our discretion, as cash, shares of our common stock or a combination of both, in connection with the acquisition of ECP, if certain technical, regulatory and commercial milestones are met.
Following is a summary of our cash flow activities:


| Total 2013 2014 to2015 2016 to2017 Thereafter | Reclamation and environmental obligationsa | Debt maturities | Take-or-pay contractsb | Scheduled interest payment obligationsc | Operating lease obligations | Totald |


| December 31 | (Dollars in millions) | Notional | Mark-to-market or guarantor receivable | Credit valuation adjustment | Total | Credit valuation adjustment % | Gains (losses) |


| Premiums Payable Premiums Receivable | (in millions) | 2018 | 2019 | 2020 | 2021 | 2022 | 2023-2027 | Total |


| Shares(in thousands) Fair ValuePrice perShare* | Non-vested performance awards at beginning of year | Granted | Vested | Cancellations | Non-vested performance awards at end of year |


NOTE 13.
STOCK-BASED COMPENSATION Incentive Equity Awards Converted from ADP Awards.
Before March 31, 2007, all employee equity awards (stock options and restricted stock) were granted by ADP.
At the time of the Distribution, ADP’s outstanding equity awards for employees of the Company were converted into equity awards of Broadridge at a ratio of 2.4569 Broadridge stock options for every ADP stock option held before the Distribution and 2.2386 Broadridge
We believe that the presentation of adjusted diluted earnings per share, which excludes withdrawal costs – multiemployer pension funds, restructuring charges, loss on extinguishment of debt, and (gain) loss on business dispositions and impairments, net, provides an understanding of operational activities before the financial effect of certain items.
We use this measure, and believe investors will find it helpful, in understanding the ongoing performance of our operations separate from items that have a disproportionate effect on our results for a particular period.
We have incurred comparable charges and costs in prior periods, and similar types of adjustments can reasonably be expected to be recorded in future periods.
Our definition of adjusted diluted earnings per share may not be comparable to similarly titled measures presented by other companies.
Property and Equipment, Net In 2017, we anticipate receiving approximately $975 million of property and equipment, net of proceeds from sales of property and equipment, as follows:


| Prepayment rate December 31, 2009 3–8 CRR | Loss severity-1 | Unemployment rate | Peak-to-trough housing price decline |


| December 31, | 2013 | (in millions) | Stock option | Restricted stock-1 | Restricted stock units | Liability awards | Total |


Table of Contents ADOBE INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) discount that we receive is higher than our estimate of the expected foregone return on our cash prepayments to the financial institutions.
There were no explicit commissions or fees on these structured repurchases.
Under the terms of the agreements, there is no requirement for the financial institutions to return any portion of the prepayment to us.
The financial institutions agree to deliver shares to us at monthly intervals during the contract term.
The parameters used to calculate the number of shares deliverable are: the total notional amount of the contract, the number of trading days in the contract, the number of trading days in the interval and the average VWAP of our stock during the interval less the agreed upon discount.
During fiscal 2018, we repurchased approximately 8.7 million shares at an average price per share of $230.43 through structured repurchase agreements entered into during fiscal 2018 and fiscal 2017.
During fiscal 2017, we repurchased approximately 8.2 million shares at an average price per share of $134.20 through structured repurchase agreements entered into during fiscal 2017 and fiscal 2016.
During fiscal 2016, we repurchased approximately 10.4 million shares at an average price per share of $97.16 through structured repurchase agreements entered into during fiscal 2016 and fiscal 2015.
For fiscal 2018, 2017 and 2016, the prepayments were classified as treasury stock on our Consolidated Balance Sheets at the payment date, though only shares physically delivered to us by November 30, 2018, December 1, 2017 and December 2, 2016 were excluded from the computation of earnings per share.
As of November 30, 2018, $150.0 million of prepayments from our May 2018 authority remained under the agreement.
Subsequent to November 30, 2018, as part of the 2018 stock repurchase authority, we entered into a structured stock repurchase agreement with a large financial institution whereupon we provided them with a prepayment of $500 million.
This amount will be classified as treasury stock on our Consolidated Balance Sheets.
Upon completion of the $500 million stock repurchase agreement, $7.35 billion remains under our May 2018 authority.
As of November 30, 2018, there is no remaining balance under our January 2017 authority.
NOTE 13.
NET INCOME PER SHARE Basic net income per share is computed using the weighted average number of common shares outstanding for the period, excluding unvested restricted stock units and performance awards.
Diluted net income per share is based upon the weighted average common shares outstanding for the period plus dilutive potential common shares, including unvested restricted stock units, performance share awards, and stock options using the treasury stock method.
The following table sets forth the computation of basic and diluted net income per share for fiscal 2018, 2017 and 2016 (in thousands, except per share data):


(1) Cancellation rate represents the number of cancelled sales orders divided by gross sales orders.
Net Sales Orders 2018 versus 2017 The value of net sales orders increased 13% to $15.8 billion (52,740 homes) in 2018 from $13.9 billion (46,605 homes) in 2017, with increases in all of our regions.
The increases in the value of sales orders were due to increased volume.
The average selling price of homes sold during fiscal 2018 was $298,800, essentially unchanged from the prior year.
The number of net sales orders increased 13% during 2018 compared to 2017.
The increase in net sales orders reflects the strength in demand in most of our markets, particularly at affordable price points.
Our Chicago and Phoenix markets contributed the most to higher sales volumes in our Midwest and Southwest regions, respectively.
Our sales order cancellation rate (cancelled sales orders divided by gross sales orders for the period) was 22% in both years.
We believe our business is well positioned to continue to generate increased sales volume; however, our future sales volumes will depend on new home demand in each of our operating markets and our ability to successfully implement our operating strategies.2017 versus 2016 The value of net sales orders increased 16% to $13.9 billion (46,605 homes) in 2017 from $12.0 billion (40,814 homes) in 2016, with increases in all of our regions.
The increase in the value of sales orders was due to increased volume and to a lesser extent, increased selling prices in some regions.
The number of net sales orders increased 14%, and the average price of net sales orders increased 2% to $299,100 during 2017 compared to 2016.
Our Phoenix and Carolina markets contributed the most to higher sales volumes in our Southwest and East regions, respectively.
Our sales order cancellation rate was 22% in 2017 compared to 23% in 2016.
D. R.  HORTON, INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued) 89 The Company’s homebuilding revolving credit facility imposes restrictions on its operations and activities, including requiring the maintenance of a maximum allowable ratio of debt to tangible net worth and a borrowing base restriction if the Company’s ratio of debt to tangible net worth exceeds a certain level.
These covenants are measured as defined in the credit agreement governing the facility and are reported to the lenders quarterly.
A failure to comply with these financial covenants could allow the lending banks to terminate the availability of funds under the revolving credit facility or cause any outstanding borrowings to become due and payable prior to maturity.
The credit agreement governing the facility and the indenture governing the senior notes also impose restrictions on the creation of secured debt and liens.
At September 30, 2018, the Company was in compliance with all of the covenants, limitations and restrictions of its homebuilding revolving credit facility and public debt obligations.
The Company has an automatically effective universal shelf registration statement filed with the Securities and Exchange Commission (SEC) in August 2018, registering debt and equity securities that the Company may issue from time to time in amounts to be determined.
In December 2017, the Company issued $400 million principal amount of 2.55% senior notes due December 1, 2020, with interest payable semi-annually.
The notes represent unsecured obligations of the Company.
In December 2017, the Company redeemed $400 million principal amount of its 3.625% senior notes due February 2018.
The senior notes were redeemed at a price equal to 100% of the principal amount of the notes, together with accrued and unpaid interest.
The key terms of the Company’s homebuilding senior notes outstanding as of September 30, 2018 are summarized below.


| Sales Price | High | 2017 | Fourth Quarter Ended December 31, 2017 | Third Quarter Ended September 30, 2017 | Second Quarter Ended June 30, 2017 | First Quarter Ended March 31, 2017 | 2016 | Fourth Quarter Ended December 31, 2016 | Third Quarter Ended September 30, 2016 | Second Quarter Ended June 30, 2016 | First Quarter Ended March 31, 2016 |


Note 9.
Income Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to tax benefit carryforwards and to differences between the financial statement amounts of assets and liabilities and their respective tax basis.
Deferred tax assets and liabilities are measured using enacted tax rates.
A valuation reserve is established if it is more likely than not that all or a portion of the deferred tax asset will not be realized.
The tax benefit associated with the stock option compensation deductions will be credited to equity when realized.


| December 31, 2001 December 31, 2000 | Carrying Amount | Assets: | Foreign currency forwards and swaps, net | Energy derivatives, net | Liabilities: | Non-recourse debt | Recourse debt | Tecons | Interest rate swaps | Interest rate caps and floors, net | Preferred stock with mandatory redemption |


| Net Unrealized Gains (Losses) On Investments(1) Deferred Policy Acquisition Costs and Valuation of Business Acquired Future Policy Benefits Policyholders’ Dividends Deferred Income Tax (Liability) Benefit Accumulated Other Comprehensive Income (Loss) Related ToNet Unrealized Investment Gains (Losses) | (in millions) | Balance, December 31, 2003 | Net investment gains (losses) on investments arising during the period | Reclassification adjustment for (gains) losses included in net income | Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and valuation of business acquired | Impact of net unrealized investment (gains) losses on future policy benefits | Impact of net unrealized investment (gains) losses on policyholders’ dividends | Cumulative effect of accounting change | Balance, December 31, 2004 | Net investment gains (losses) on investments arising during the period | Reclassification adjustment for (gains) losses included in net income | Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and valuation of business acquired | Impact of net unrealized investment (gains) losses on future policy benefits | Impact of net unrealized investment (gains) losses on policyholders’ dividends | Balance, December 31, 2005 | Net investment gains (losses) on investments arising during the period | Reclassification adjustment for (gains) losses included in net income | Impact of net unrealized investment (gains) losses on deferred policy acquisition costs and valuation of business acquired | Impact of net unrealized investment (gains) losses on future policy benefits | Impact of net unrealized investment (gains) losses on policyholders’ dividends | Balance, December 31, 2006 | (in millions) | Balance as of December 31, 2017 | Purchases | Distributions | Gain (loss) | Balance as of December 31, 2018 |


| Equity Instrument Common StockReserve Balance | 2.822% Convertible perpetual preferred | Long-term incentive plans | Total | Fourth Quarter | 2014 | 2013 | 2012 |


| Trusts Face Value Maturity Date Annual Interest Rate | ETBH Capital Trust II | ETBH Capital Trust I | ETBH Capital Trust V, VI, VIII | ETBH Capital Trust VII, IX—XII | ETBH Capital Trust XIII—XVIII, XX | ETBH Capital Trust XIX, XXI, XXII | ETBH Capital Trust XXIII—XXIV | ETBH Capital Trust XXV—XXX | Total |


credit facility, which was amended in 2013 and 2012.
In March 2014, the Company’s credit facility was further amended to extend the maturity date to March 2019.
The amount of the aggregate commitment is $3.990 billion (the “2014 credit facility”).
The 2014 credit facility permits the Company to request up to an additional $1.0 billion of borrowing capacity, subject to lender credit approval, increasing the overall size of the 2014 credit facility to an aggregate principal amount not to exceed $4.990 billion.
Interest on borrowings outstanding accrues at a rate based on the applicable London Interbank Offered Rate plus a spread.
The 2014 credit facility requires the Company not to exceed a maximum leverage ratio (ratio of net debt to earnings before interest, taxes, depreciation and amortization, where net debt equals total debt less unrestricted cash) of 3 to 1, which was satisfied with a ratio of less than 1 to 1 at December 31, 2014.
The 2014 credit facility provides back-up liquidity, funds ongoing working capital for general corporate purposes and funds various investment opportunities.
At December 31, 2014, the Company had no amount outstanding under the 2014 credit facility.
Commercial Paper Program.
On October 14, 2009, BlackRock established a commercial paper program (the “CP Program”) under which the Company could issue unsecured commercial paper notes (the “CP Notes”) on a private placement basis up to a maximum aggregate amount outstanding at any time of $3.0 billion.
BlackRock increased the maximum aggregate amount that could be borrowed under the CP Program to $3.5 billion in 2011 and to $3.785 billion in 2012.
In April 2013, BlackRock increased the maximum aggregate amount for which the Company could issue unsecured CP Notes on a private-placement basis up to a maximum aggregate amount outstanding at any time of $3.990 billion.
The CP Program is currently supported by the 2014 credit facility.
At December 31, 2014, BlackRock had no CP Notes outstanding.


| Notional Amount as of December 31, Gain (Loss) Recognized in OCI Year Ended December 31, | 2017 | Foreign currency contracts | Foreign currency denominated debt | Total |


Certain pretax charges related to asset impairments and restructurings during the fiscal years presented; and ?
A net gain related to a partial extinguishment of our Euro-denominated 4.5% notes in Fiscal 2010.
A summary of the effect of certain of these items on pretax income for each applicable fiscal year presented is noted below (references to Notes are to the notes to the accompanying audited consolidated financial statements):


| (Dollars in billions) 2010 2009 2008 | Distribution Solutions | Technology Solutions | Total |


At December 31, 2006 and 2005, the fair values of cash and cash equivalents, receivables, notes payable, trade payables, short-term debt and the current installments of long-term debt approximate carrying values due to the short-term nature of these instruments.
These items have been excluded from the table.
Additionally, certain longterm receivables, principally insurance recoverables, are carried at net realizable value (See Note 25).
Included in other assets are long-term marketable securities classified as available-for-sale.
In general, the cost investments included in the table above are not publicly traded and their fair values are not readily determinable; however, the Company believes that the carrying value approximates or is less than the fair value.
The fair value of long-term debt and debt-related financial instruments is estimated based upon the respective implied forward rates as of December 31, 2006 and 2005, as well as quotations from investment bankers and on current rates of debt for similar type instruments.25.


| December 31 – dollars in millions 2012 2011 2010 2009 2008 | Nonperforming loans | Commercial | Commercial real estate | Equipment lease financing | Total commercial lending | Consumer (a) | Home equity (b) | Residential real estate (c) | Credit card (d) | Other consumer | Total consumer lending (e) | Total nonperforming loans (f) | OREO and foreclosed assets | Other real estate owned (OREO) (g) | Foreclosed and other assets | Total OREO and foreclosed assets | Total nonperforming assets | Nonperforming loans to total loans | Nonperforming assets to total loans, OREO and foreclosed assets | Nonperforming assets to total assets | Interest on nonperforming loans | Computed on original terms | Recognized prior to nonperforming status | Past due loans | Accruing loans past due 90 days or more (h) | As a percentage of total loans | Past due loans held for sale | Accruing loans held for sale past due 90 days or more (i) | As a percentage of total loans held for sale |


HOST HOTELS & RESORTS, INC. , HOST HOTELS & RESORTS, L. P. , AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS(Continued) contracts.
These contracts are marked-to-market with changes in fair value recorded to other comprehensive income (loss).
We recorded a loss of $14 million and a gain of $6 million for the years ended December 31, 2017 and 2016, respectively.
The foreign currency forward sale contracts are valued based on the forward yield curve of the foreign currency to U. S.  dollar forward exchange rate on the date of measurement.
We also evaluate counterparty credit risk when we calculate the fair value of the derivatives.
During 2017, in connection with the maturity of a foreign currency forward purchase contract with a total HOST HOTELS & RESORTS, INC. , HOST HOTELS & RESORTS, L. P. , AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTSÂ¡Âª(Continued) contracts.
These contracts are marked-to-market with changes in fair value recorded to other comprehensive income (loss).
We recorded a loss of $14 million and a gain of $6 million for the years ended December 31, 2017 and 2016, respectively.
The foreign currency forward sale contracts are valued based on the forward yield curve of the foreign currency to U. S.  dollar forward exchange rate on the date of measurement.
We also evaluate counterparty credit risk when we calculate the fair value of the derivatives.
During 2017, in connection with the maturity of a foreign currency forward purchase contract with a total notional amount of ¬15 million, for which we received total proceeds of approximately $4 million, we entered into a new foreign currency forward purchase contract with the same notional amount.
We also made payments totaling approximately $2 million to settle forward currency hedges with a total notional amount of NZ$45 million and ¬55 million.
The gain or loss related to the matured contracts is initially included in accumulated other comprehensive income and is recognized in earnings when the hedged investment has been repatriated.
In addition to the foreign currency forward sale contracts, we have designated $129 million of the foreign currency draws on our credit facility as hedges of net investments in foreign operations.
Changes in fair value of the designated credit facility draws are recorded to foreign currency translation and other comprehensive income (loss) of unconsolidated affiliates.
We recorded a loss of $14 million and a gain of $2 million for the years ended December 31, 2017 and 2016, respectively.
Impairment During 2017, we recorded an impairment loss of $43 million related to the W New York.
The fair value was based on the expected sale proceeds of the property, which is considered an unobservable input (Level 3) in the GAAP fair value hierarchy.
The fair value of the property on December 31, 2017, following the impairment loss, was $191 million.
The property was classified as held-for-sale as of December 31, 2017.
Other Liabilities Fair Value of Other Financial Liabilities.
We did not elect the fair value measurement option for any of our other financial liabilities.
The fair values of secured debt and our credit facility are determined based on the expected future payments discounted at risk-adjusted rates.
Senior notes are valued based on quoted market prices.
The fair values of financial instruments not included in this table are estimated to be equal to their carrying amounts.
The fair value of certain financial liabilities is shown below (in millions):


| (in millions) 2007 2006 2005 | Total: | Fixed maturities, including short-term investments | Equity securities | Interest on mortgage and other loans | Partnership income — excluding Synfuels | Partnership loss — Synfuels | Unit investment trusts(a) | Other(b) | Total investment income before policyholder income and trading gains | Policyholder investment income and trading gains(c) | Total investment income | Investment expenses | Net investment income(d) |


| 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) | 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 |


| Triple-net lease rental revenue resulting from acquisitions— for the year ended December 31, | Property Type | (in thousands) | Senior housing | Other healthcare | Total |


| 2014 2013 2012 | Cash and cash equivalents at beginning of year | Operating activities | Net earnings | Non-cash adjustments | Changes in working capital | Other, net | Net cash provided by operating activities | Net cash used for investing activities | Net cash used for financing activities | Net change in cash and cash equivalents | Cash and cash equivalents at end of year |


| Con Edison CECONY | (Millions of Dollars) | CHANGE IN BENEFIT OBLIGATION | Benefit obligation at beginning of year | Service cost | Interest cost on accumulated postretirement benefit obligation | Amendments | Net actuarial loss/(gain) | Benefits paid and administrative expenses | Participant contributions | Medicare prescription subsidy | BENEFIT OBLIGATION AT END OF YEAR | CHANGE IN PLAN ASSETS | Fair value of plan assets at beginning of year | Actual return on plan assets | Employer contributions | EGWP payments | Participant contributions | Benefits paid | FAIR VALUE OF PLAN ASSETS AT END OF YEAR | FUNDED STATUS | Unrecognized net loss | Unrecognized prior service costs |


THE HERSHEY COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) · We base the risk-free interest rate for periods within the contractual life of the option on the U. S.  Treasury yield curve in effect at the time of grant.
·“Expected lives” means the period of time that options granted are expected to be outstanding based primarily on historical data.
Stock Options The exercise price of each option equals the market price of the Company’s Common Stock on the date of grant.
Prior to approval by our stockholders of the EICP on April 17, 2007, the exercise price of stock options granted under the former Key Employee Incentive Plan was determined as the closing price of our Common Stock on the New York Stock Exchange on the trading day immediately preceding the date the stock options were granted.
Following approval of the EICP, the exercise price is the closing price of our Common Stock on the New York Stock Exchange on the date of the grant.
Each option has a maximum term of ten years.
Options granted to executives and key employees prior to December 31, 1999, vested at the end of the second year after grant.
In 2000, we changed the terms and conditions of the grants to provide for pro-rated vesting over four years for options granted subsequent to December 31, 1999.


ITEM 9  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE (a) None.
(b) None.
ITEM 9A  CONTROLS AND PROCEDURES (a) MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING The management of The PNC Financial Services Group, Inc.  and subsidiaries (PNC) is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in the Exchange Act Rule 13a-15(f).
Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements.
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
We performed an evaluation under the supervision and with the participation of our management, including the Chairman and Chief Executive Officer and the Executive Vice President and Chief Financial Officer, of the effectiveness of PNCs internal control over financial reporting as of December 31, 2009.
This assessment was based on criteria for effective internal control over financial reporting described in Internal ControlIntegrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
Based on this assessment, management concludes that PNC maintained effective internal control over financial reporting as of December 31, 2009.
PricewaterhouseCoopers LLP, the independent registered public accounting firm that audited our consolidated financial statements as of and for the year ended December 31, 2009 included in this Report, has also issued a report on the effectiveness of PNCs internal control over financial reporting as of December 31, 2009.
The report of PricewaterhouseCoopers LLP is included under Item 8 of this Annual Report on Form 10-K.  (b) DISCLOSURE CONTROLS AND PROCEDURES AND CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING As of December 31, 2009, we performed an evaluation under the supervision and with the participation of our management, including the Chairman and Chief Executive Officer and the Executive Vice President and


| % of Total | $ Change (In millions) | International | Corporate & Other | Reinsurance | Institutional | Auto & Home | Individual | Total change |


Retail The Company opened 25 new retail stores during 2003, bringing the total number of open stores to 65 as of September 27, 2003, which compares to 40 open stores as of September 28, 2002 and 8 open stores as of September 29, 2001.
During the first quarter of fiscal 2004, the Company opened 9 additional stores including its first international store in the Ginza in Tokyo, Japan.
The Retail segment’s net sales grew to $621 million during 2003 from $283 million in 2002 and from $19 million in 2001.
The $338 million or 119% increase in net sales during 2003 reflects the impact from opening 25 new stores in 2003, the full year impact of 2002 store openings, as well as an increase in average revenue per store.
Total Macintosh sales increased by approximately $170 million of which $108 million related to year-over-year increases in PowerBook sales.
The Retail segment has also contributed strongly to the increases in net sales of peripherals, software and services experienced by the Company during 2003.
During 2003, approximately 45% of the Retail segment’s net sales came from the sale of Apple-branded and third-party peripherals, software and services as compared to 28% for the Company as a whole.
With an average of 54 stores open during 2003, the Retail segment achieved annualized revenue per store of approximately $11.5 million, as compared to approximately $10.2 million based on an average of 28 stores open in 2002.
As measured by the Company’s operating segment reporting, the Retail segment improved from a loss of $22 million during 2002 to a loss of $5 million during 2003.
This improvement is primarily attributable to the segment’s year-over-year increase in net sales, which resulted in higher leverage on occupancy, depreciation and other fixed costs.
Expansion of the Retail segment has required and will continue to require a substantial investment in fixed assets and related infrastructure, operating lease commitments, personnel, and other operating expenses.
Capital expenditures associated with the Retail segment since its inception totaled approximately $290 million through the end of fiscal 2003, $92 million of which was incurred during 2003.
As of September 27, 2003, the Retail segment had approximately 1,300 employees and had outstanding operating lease commitments associated with retail store space and related facilities of $354 million.
The Company would incur substantial costs should it choose to terminate its Retail segment or close individual stores.
Such costs could adversely affect the Company’s results of operations and financial condition.
Investment in a new business model such as the Retail segment is inherently risky, particularly in light of the significant investment involved, the current economic climate, and the fixed nature of a substantial portion of the Retail segment’s operating expenses.


| (In millions) 2007 2006 2005 2004 2003 | U.S.: | Commercial and financial | Lease financing | Total U.S. | Non-U.S.: | Commercial and financial | Lease financing | Total non-U.S. | Total loans | Average loans and lease financing |


BROKERAGE AND ASSET MANAGEMENT Brokerage and Asset Management (BAM), which constituted approximately 6% of Citi Holdings by assets as of December 31, 2009, consists of Citis global retail brokerage and asset management businesses.
This segment was substantially affected and reduced in size in 2009 due to the divestitures of Smith Barney (to the Morgan Stanley Smith Barney joint venture (MSSB JV)) and Nikko Cordial Securities.
At December 31, 2009, BAM had approximately $35 billion of assets, which included $26 billion of assets from the 49% interest in the MSSB JV ($13 billion investment and $13 billion in loans associated with the clients of the MSSB JV) and $9 billion of assets from a diverse set of asset management and insurance businesses of which approximately half will be transferred into the LATAM RCB during the first quarter of 2010, as discussed under Citi Holdings above.
Morgan Stanley has options to purchase Citis remaining stake in the MSSB JV over three years starting in 2012.
The 2009 results include an $11.1 billion gain ($6.7 billion after-tax) on the sale of Smith Barney.


The Company has a series of agreements with various public entities (the “Partners”) to establish certain joint ventures, commonly referred to as “public-private partnerships.
” Under the public-private partnerships, the Company constructed utility plant, financed by the Company and the Partners constructed utility plant (connected to the Company’s property), financed by the Partners.
The Company agreed to transfer and convey some of its real and personal property to the Partners in exchange for an equal principal amount of Industrial Development Bonds (“IDBs”), issued by the Partners under a state Industrial Development Bond and Commercial Development Act.
The Company leased back the total facilities, including portions funded by both the Company and the Partners, under leases for a period of 40 years.
The leases related to the portion of the facilities funded by the Company have required payments from the Company to the Partners that approximate the payments required by the terms of the IDBs from the Partners to the Company (as the holder of the IDBs).


Notes to Consolidated Financial Statements The firm permanently reinvests eligible earnings of certain foreign subsidiaries and, accordingly, does not accrue any U. S.  income taxes that would arise if such earnings were repatriated.
As of December 2012 and December 2011, this policy resulted in an unrecognized net deferred tax liability of $3.75 billion and $3.32 billion, respectively, attributable to reinvested earnings of $21.69 billion and $20.63 billion, respectively.
Unrecognized Tax Benefits The firm recognizes tax positions in the financial statements only when it is more likely than not that the position will be sustained on examination by the relevant taxing authority based on the technical merits of the position.
A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized on settlement.
A liability is established for differences between positions taken in a tax return and amounts recognized in the financial statements.
As of December 2012 and December 2011, the accrued liability for interest expense related to income tax matters and income tax penalties was $374 million and $233 million, respectively.
The firm recognized $95 million, $21 million and $28 million of interest and income tax penalties for the years ended December 2012, December 2011 and December 2010, respectively.
It is reasonably possible that unrecognized tax benefits could change significantly during the twelve months subsequent to December 2012 due to potential audit settlements, however, at this time it is not possible to estimate any potential change.
The table below presents the changes in the liability for unrecognized tax benefits.
This liability is included in Other liabilities and accrued expenses.
 See Note 17 for further information.


Convertible Senior Notes On February 16, 2007, the Company issued $400.0 million principal amount of 0.625% Convertible Senior Notes due 2014 (the Notes), which included the exercise of the initial purchasers’ option to purchase up to an additional $50.0 million aggregate principal amount of Notes.
The net proceeds from the offering, after deducting the initial purchasers’ discount and offering expenses, were $390.3 million.
The Company will pay 0.625% interest per annum on the principal amount of the Notes, payable semi-annually in arrears in cash on February 15 and August 15 of each year.
The Company made interest payments of $1.3 million and $1.2 million on February 15, 2008 and August 15, 2008, respectively.
The Notes mature on February 15, 2014.
The Notes will be convertible into cash and, if applicable, shares of the Company’s common stock, $0.01 par value per share, based on a conversion rate, subject to adjustment, of 45.8058 shares per $1,000 principal amount of Notes (which represents a conversion price of $21.83 per share), only in the following circumstances and to the following extent: (1) during the five business-day period after any five consecutive trading period (the measurement period) in which the trading price per Note for each day of such measurement period was less than 97% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such day; (2) during any calendar quarter after the calendar quarter ending March 30, 2007, if the last reported sale price of the Company’s common stock for 20 or more trading days in a period of 30 consecutive trading days ending on the last trading day of the immediately


| At December 31, | (Dollars in thousands) | Balance at beginning of year | Liabilities assumed | Adjustments to reserves | Benefits paid in the current year | Balance at end of year | (Some amounts may not reconcile due to rounding.) | Years Ended December 31, | (Dollars in millions) | 2015 | Attritional | Catastrophes | Total segment | 2014 | Attritional | Catastrophes | Total segment | 2013 | Attritional | Catastrophes | Total segment | Variance 2015/2014 | Attritional | Catastrophes | Total segment | Variance 2014/2013 | Attritional | Catastrophes | Total segment | (Some amounts may not reconcile due to rounding.) |


REVENUES The Companys revenues consist of sales by Company-operated restaurants and fees from restaurants operated by franchisees.
Revenues from conventional franchised restaurants include rent and royalties based on a percent of sales along with minimum rent payments, and initial fees.
Revenues from franchised restaurants that are licensed to affiliates and developmental licensees include a royalty based on a percent of sales, and generally include initial fees.
Over the past three years, the Company has continued to optimize its restaurant ownership mix, cash flow and returns through its refranchising strategy.
The shift to a greater percent age of franchised restaurants negatively impacted consolidated revenues as Company-operated sales shifted to franchised sales, where the Company receives rent and/or royalties based on a percent of sales.
In 2010, constant currency revenue growth was driven by positive comparable sales.
The impact of refranchising on consolidated revenues lessened because the number of Companyoperated restaurants sold to franchisees has declined compared with 2009 and 2008, in line with our overall strategy.
In 2009, constant currency revenue growth was driven by positive comparable sales and expansion, partly offset by the impact of refranchising in certain of the Companys major markets.


| 2008 2007 | Goodwill | Developed product technology — gross | Less accumulated amortization | Developed product technology — net | Other intangibles — gross | Less accumulated amortization | Other intangibles — net | Total intangibles — net |


Contributions and Expected Benefit Payments The funding of our qualified defined benefit pension plans is determined in accordance with ERISA, as amended by the PPA, and in a manner consistent with CAS and Internal Revenue Code rules.
There were no contributions to our legacy qualified defined benefit pension plans during 2016.
We do not plan to make contributions to our legacy pension plans in 2017 because none are required using current assumptions including investment returns on plan assets.
We made $23 million in contributions during 2016 to our newly established Sikorsky pension plan and expect to make $45 million in contributions to this plan during 2017.
The following table presents estimated future benefit payments, which reflect expected future employee service, as of December 31, 2016 (in millions):


| 2006 2005 | Office | Industrial | Other | Total |


| December 31, | 2017 | (In Millions) | Entergy Arkansas | Entergy Louisiana | Entergy Mississippi | Entergy New Orleans | Entergy Texas | System Energy |


| 2018 2019 2020 2021 2022 2023 – 2027 | Qualified defined benefit pension plans | Retiree medical and life insurance plans | 2006 Compared to 2005 Increase (Decrease) Due to Changes in | (Dollars in thousands) | Interest income: | Securities purchased under agreement to resell and other short-term investments | Investment securities | Loans | Increase in interest income, net | Interest expense: | NOW deposits | Regular money market deposits | Bonus money market deposits | Time deposits | Short-term borrowings | Contingently convertible debt | Junior subordinated debentures | Other long-term debt | Increase in interest expense, net | Increase in net interest income | Year Ended December 31, | (Dollars in thousands) | Assets (liabilities): | Equity warrant assets | Interest rate swap | Foreign exchange forward and option contracts | Total |


Note 15  Share-Based Compensation and Other Compensation Arrangements Share-Based Compensation Our 2003 Incentive Stock Plan, as amended and restated effective February 21, 2011, permits awards of incentive stock options, non-qualified stock options, restricted stock, stock units, performance shares, performance units and other incentives to our employees, officers, consultants and independent contractors.
The aggregate number of shares of our stock available for issuance under the amended plan will not exceed 80,000,000 and no more than an aggregate of 16,000,000 shares are available for issuance as restricted stock awards.
Shares issued as a result of stock option exercises or conversion of stock unit awards will be funded out of treasury shares, except to the extent there are insufficient treasury shares, in which case new shares will be issued.
We believe we currently have adequate treasury shares to meet any requirements to issue shares during 2014.
Share-based plans expense is primarily included in General and administrative expense since it is incentive compensation issued primarily to our executives.
The share-based plans expense and related income tax benefit were as follows:


Other Debt During 2015, the Company acquired the beneficial interest in the trust owning the leased Naperville facility resulting in debt assumption of $100.2 million and the addition of $135.2 million in property, plant and equipment.
Certain administrative, divisional, and research and development personnel are based at the Naperville facility.
Cash paid as a result of the transaction was $19.8 million.
The assumption of debt and the majority of the property, plant and equipment addition represented non-cash financing and investing activities, respectively.
The remaining balance on the assumed debt was settled in December 2017 and was reflected in the "Other" line of the table above at December 31, 2016.
Covenants and Future Maturities The Company is in compliance with all covenants under the Company’s outstanding indebtedness at December 31, 2017.
As of December 31, 2017, the aggregate annual maturities of long-term debt for the next five years were:


Principal Financial Group, Inc.  Notes to Consolidated Financial Statements — (continued) 1.
Nature of Operations and Significant Accounting Policies — (continued) If an internal replacement results in a substantially unchanged contract, the acquisition costs, sales inducements and unearned revenue associated with the new contract are not deferred.
All acquisition costs, sales inducements and unearned revenue associated with the new contract are immediately recognized in the period incurred.
In addition, the existing DPAC, sales inducement, or unearned revenue balance associated with the replaced contract is not written off, but instead is carried over to the new contract.
Long-Term Debt Long-term debt includes notes payable, nonrecourse mortgages and other debt with a maturity date greater than one year at the date of issuance.
Current maturities of long term debt are classified as long-term debt in our statement of financial position.
Reinsurance We enter into reinsurance agreements with other companies in the normal course of business.
We may assume reinsurance from or cede reinsurance to other companies.
Assets and liabilities related to reinsurance ceded are reported on a gross basis.
Premiums and expenses are reported net of reinsurance ceded.
We are contingently liable with respect to reinsurance ceded to other companies in the event the reinsurer is unable to meet the obligations it has assumed.
At December 31, 2007, 2006 and 2005, respectively, we had reinsured $19.9 billion, $21.7 billion and $21.2 billion of life insurance in force, representing 11%, 13%, and 14%, respectively, of total net life insurance in force through a single third-party reinsurer.
To minimize the possibility of losses, we regularly evaluate the financial condition of our reinsurers and monitor concentrations of credit risk.
The effects of reinsurance on premiums and other considerations and policy and contract benefits were as follows:


Information and User Access Fees.
Information and user access fees increased by $0.2 million or 3.8% to $6.3 million for the year ended December 31, 2009 from $6.0 million for the year ended December 31, 2008.


unsecured term loan credit facility entered into in April 2015 (2015 Term Loan) which had $600 million outstanding as of December 31, 2016 and $750 million outstanding as of December 31, 2015.
Our revolving credit facility and our term loan facilities require that we maintain certain financial covenants as outlined in Note F Borrowings and Credit Arrangements to our consolidated financial statements contained in Item 8 of this Annual Report.
As of and through December 31, 2016, we were in compliance with the required covenants.
Any inability to maintain compliance with these covenants could require us to seek to renegotiate the terms of our credit facility or seek waivers from compliance with these covenants, both of which could result in additional borrowing costs.
Further, there can be no assurance that our lenders would agree to such new terms or grant such waivers.
Senior Notes We had senior notes outstanding of $4.650 billion as of December 31, 2016 and as of December 31, 2015.
Our senior notes were issued in public offerings, are redeemable prior to maturity and are not subject to any sinking fund requirements.
Our senior notes are unsecured, unsubordinated obligations and rank on parity with each other.
These notes are effectively junior to borrowings under our credit and security facility, to the extent if borrowed by our subsidiaries, and to liabilities of our subsidiaries.
On January 12, 2017, we used our existing credit facilities to repay the $250 million plus interest of our senior notes due in January 2017.
The debt maturity schedule for the significant components of our debt obligations as of December 31, 2016 is as follows:


The Companies commitments to make payments in addition to these contractual commitments include their other liabilities reflected in their balance sheets, any funding obligations for their pension and other postretirement benefit plans, financial hedging activities, their collective bargaining agreements and Con Edisons guarantees of certain obligations of its businesses.
See Notes E, F, O and Guarantees in Note H to the financial statements in Item 8.
Capital Resources Con Edison is a holding company that operates only through its subsidiaries and has no material assets other than its interests in its subsidiaries.
Con Edison expects to finance its capital requirements primarily through internally-generated funds and the sale of its securities.
The company does not expect to need to issue additional common equity in 2013.
Con Edisons ability to make payments on its external borrowings and dividends on its common shares is also dependent on its receipt of dividends from its subsidiaries or proceeds from the sale of its securities or its interests in its subsidiaries.
For information about restrictions on the payment of dividends by the Utilities and significant debt covenants, see Note C to the financial statements in Item 8.
For information on the Companies commercial paper program and revolving credit agreements with banks, see Note D to the financial statements in Item 8.
The Utilities may finance their operations, capital requirements and payment of dividends to Con Edison from internallygenerated funds (see Liquidity and Capital Resources  Cash Flows from Operating Activities in Item 7), contributions of equity capital from Con Edison and external borrowings.
The Companies expect to meet their 2013 external financing requirements, including for maturing securities, through the issuance of between $1,000 million and $1,500 million of longterm debt.
The Companies require access to the capital markets to fund capital requirements that are substantially in excess of available internally-generated funds.
See Capital Requirements, above.
Each of the Companies believes that it will continue to be able to access capital, although capital market conditions may affect the timing of the Companies financing activities.
The Companies monitor the availability and costs of various forms of capital, and will seek to issue Con Edison common stock and other securities when it is necessary or advantageous to do so.
For information about the Companies long-term debt and short-term borrowing, see Notes C and D to the financial statements in Item 8.
In 2012, the NYSPSC authorized CECONY, through 2016, to issue up to $3,500 million of debt securities and to issue up to $2,500 million of debt securities to refund existing debt securities.
At December 31, 2012, CECONY had not issued any securities pursuant to such authorization.
In 2009, the NYSPSC authorized O&R, through 2013, to issue up to $500 million of securities (of which up to $100 million may be preferred stock and up to the entire amount authorized may be debt securities) and to issue up to $389 million of debt securities to refund existing debt securities.
At December 31, 2012, O&R had issued $190 million of debt securities pursuant to such authorization.
Con Edisons competitive energy businesses have financed their operations and capital requirements primarily with capital contributions and borrowings from Con Edison, internallygenerated funds and external borrowings.
Con Edison Development is evaluating long-term debt financing for the solar projects it acquired in 2012.
For each of the Companies, the ratio of earnings to fixed charges (SEC basis) for the last five years was: