| As of December 31, 2014 | Level 1 | (in millions) | U.S. Equities: | Pooled separate accounts-1 | Common/collective trusts-1 | Subtotal | International Equities: | Pooled separate accounts-2 | Common/collective trusts-3 | United Kingdom insurance pooled funds-4 | Subtotal | Fixed Maturities: | Pooled separate accounts-5 | Common/collective trusts-6 | U.S. government securities (federal): | Mortgage-backed | Other U.S. government securities | U.S. government securities (state & other) | Non-U.S. government securities | United Kingdom insurance pooled funds-7 | Corporate Debt: | Corporate bonds-8 | Asset-backed | Collateralized Mortgage Obligations-9 | Interest rate swaps (Notional amount: $1,536) | Guaranteed investment contract | Other-10 | Unrealized gain (loss) on investment of securities lending collateral(13) | Subtotal | Short-term Investments: | Pooled separate accounts | United Kingdom insurance pooled funds | Subtotal | Real Estate: | Pooled separate accounts-12 | Partnerships | Subtotal | Other: | Partnerships | Hedge funds | Subtotal | Total |


| Due in | 1 Year or Less | (in 000’s) | Commercial Loans | Real Estate Construction Loans-1 | Commercial Real Estate Loans-1 | Residential Mortgage Loans | Consumer Loans | Total Loans |


Business and Financial Highlights The net premiums written decrease in 2016 was driven by the Swiss Re quota share treaty, portfolio optimization and execution on our pricing strategy, partially offset by growth in targeted lines of business.
The increase in net losses was driven by net adverse prior year reserve development.
The acquisition expense decrease was primarily related to the 2016 Swiss Re quota share treaty.
The general operating expense decrease was driven by lower employee-related expenses and other expense savings initiatives.
Lower net investment income was driven primarily by lower alternative investment returns due to weaker performance in equity markets compared to prior years.
We continue to reduce the relative size of our U. S.  casualty portfolio within Liability and Financial Lines and consequently expect that net premiums written will continue to decline through 2017, in large part driven by the impact of our continued strategy on risk selection, disciplined underwriting and execution of our reinsurance strategy to further reduce risk.
As discussed in the Executive Summary, in January 2017, we entered into an adverse development reinsurance agreement with NICO, which covers 80 percent of up to $9 billion of potential future prior year development on substantially all of our U. S.  Casualty and Financial Lines exposures for accident years 2015 and prior.
Under U. S.  GAAP, any potential future prior year development would be recognized immediately as losses are incurred; however, the related recoveries under the reinsurance agreement would be deferred and recognized over the expected recovery period.


| Company Credit Type Moody’s Standard & Poor’s Fitch | Xcel Energy | Xcel Energy | NSP-Minnesota | NSP-Minnesota | NSP-Minnesota | NSP-Wisconsin | NSP-Wisconsin | PSCo | PSCo | PSCo | SPS | SPS |


| Year Ended December 31, | 2015 | Yield-1 | ($ in millions) | Fixed maturities | Trading account assets supporting insurance liabilities | Equity securities | Commercial mortgage and other loans | Policy loans | Short-term investments and cash equivalents | Other investments | Gross investment income before investment expenses | Investment expenses | Total investment income |


| CECONY O&R Competitive Energy Businesses Other(a) Con Edison(b) | (Millions of Dollars) | Operating revenues | Purchased power | Fuel | Gas purchased for resale | Other operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Operating income | Other income less deductions | Net interest expense | Income before income tax expense | Income tax expense | Net income | Preferred stock dividend requirements | Net income for common stock | Twelve Months Ended December 31, 2013 | (Millions of Dollars) | Operating revenues | Purchased power | Fuel | Gas purchased for resale | Other operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Operating income |


HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES Managements Discussion and Analysis of Financial Condition and Results of Operations (Continued) acquisitions.
For fiscal 2016, as compared to the prior-year period, the decrease in DOS was due to lower inventory to support expected service levels, including key commodity buffer management.
Days of purchases outstanding in accounts payable (DPO) measures the average number of days our accounts payable balances are outstanding.
DPO is calculated by dividing ending accounts payable by a 90-day average of cost of goods sold.
For fiscal 2017, as compared to the prior-year period, the increase in DPO was primarily the result of an extension of payment terms with our product suppliers.
For fiscal 2016, as compared to the prior-year period, the increase in DPO was due primarily to an extension of payment terms with our product suppliers and favorable purchasing linearity.
The cash conversion cycle is the sum of DSO and DOS, less DPO.
Items which may cause the cash conversion cycle in a particular period to differ include, but are not limited to, changes in business mix, changes in payment terms (including extended payment terms from suppliers), the extent of receivables factoring, seasonal trends, the timing of revenue recognition and inventory purchases within the period, and acquisition activity.
Investing Activities Net cash used in investing activities was $4.9 billion in fiscal 2017 due primarily to $2.5 billion of investments in property, plant and equipment, net of proceeds from sales, and payments of $2.2 billion in connection with business acquisitions.
Net cash provided by investing activities increased by $5.8 billion in fiscal 2016 as compared to the prior-year period, due primarily to net proceeds of $3.2 billion from business divestitures and a decrease of $2.6 billion in cash payments made in connection with business acquisitions.
Financing Activities Net cash provided by financing activities was $0.6 billion in fiscal 2017 due primarily to a $3.0 billion cash dividend payment from Everett, a $2.5 billion cash dividend payment from Seattle and $2.3 billion of cash proceeds from the issuance of debt, partially offset by $3.8 billion of debt redemption payments and $3.0 billion of cash utilization for repurchases of common stock and dividend payments.
Net cash used in financing activities was $2.2 billion in fiscal 2016 due primarily to cash utilization for repurchases of common stock and dividend payments.
Cash flow from financing activities for fiscal 2015 primarily represents net transfers from former Parent and net payments on debt.
As cash and the financing of our operations during that period has historically been managed by former Parent, the components of net transfers from former Parent include cash transfers to us from former Parent and payments by former Parent to settle our obligations.
These transactions are considered to be effectively settled for cash at the time the transaction is recorded.


| Millions 2014 2013 2012 % Change2014 v 2013 % Change 2013 v 2012 | Freight revenues | Other revenues | Total |


| ($ millions) 2017 N/A Change vs. 2016 1% 2016 N/A Change vs. 2015 -1% | Net sales | Net earnings | % of net sales |


| Significant Unobservable Input Unobservable Inputs (Minimum) Unobservable Inputs (Maximum) Impact of Increase in Inputon Fair Value Measurement [1] | Withdrawal Utilization[2] | Withdrawal Rates [2] | Lapse Rates [3] | Reset Elections [4] | Equity Volatility [5] |


| December 31, 2006 | Public | Carrying amount | (in millions) | Three months or less | Greater than three to six months | Greater than six to nine months | Greater than nine to twelve months | Greater than twelve to twenty-four months | Greater than twenty-four to thirty-six months | Greater than thirty-six months | Total fixed maturities, available-for-sale |


| Cash Provided by (Used for) 2019 2018 | Operating activities | Investing activities | Financing activities |


Many of the states in which Xcel Energy operates have enacted RESs, which may require significant increases in investment in renewable generation and transmission.
Xcel Energy is able to meet these standards by either purchasing renewable power from an independent party or by owning the assets.
Therefore, these standards may present Xcel Energy with the opportunity to increase its investment in wind generation and transmission assets.
As a result, Xcel Energys capital expenditure forecast, as detailed above, may increase due to potential increased investments for renewable generation and transmission assets.
The capital expenditure programs of Xcel Energy are subject to continuing review and modification.
Actual utility construction expenditures may vary from the estimates due to changes in electric and natural gas projected load growth, regulatory decisions and approvals, the desired reserve margin and the availability of purchased power, as well as alternative plans for meeting Xcel Energys long-term energy needs.
In addition, Xcel Energys ongoing evaluation of restructuring requirements, compliance with future environmental requirements and RPSs to install emission-control equipment, and merger, acquisition and divestiture opportunities to support corporate strategies may impact actual capital requirements.
See additional discussion in Item 1  Electric Utility Operations.
Contractual Obligations and Other Commitments  Xcel Energy has contractual obligations and other commitments that will need to be funded in the future, in addition to its capital expenditure programs.
The following is a summarized table of contractual obligations and other commercial commitments at Dec.  31, 2008.
See additional discussion in the consolidated statements of capitalization and Notes 5, 6, and 17 to the consolidated financial statements.


| December 31, | 2014 | Direct | (In millions) | Assets | Premiums, reinsurance and other receivables | Deferred policy acquisition costs and value of business acquired | Total assets | Liabilities | Future policy benefits | Policyholder account balances | Other policy-related balances | Other liabilities | Total liabilities |


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


Net earnings Net earnings decreased primarily due to several significant, but largely offsetting, factors.
Reductions to net earnings included: ?
goodwill impairment charges of $749 million in our fine paper business in 2006; ?
a decrease of $600 million related to lower average price realizations for softwood lumber and structural panels; ?
decreased gross margins of $101 million on sales of singlefamily homes in our Real Estate and Related Assets segment; and ?
a $196 million reduction in pretax gains on dispositions.
Pretax gains of $292 million recognized during 2005 included:  $115 million on the sale of our investment in MAS Capital Management,  $63 million on the sale of the B. C.  Coastal operations,  $57 million on the sale of our French composite panel operations and  $57 million related to a deferred gain from previous timberland sales.


Key assumptions used in the models described above include the timing of cash flows; the maturity and repricing of balance sheet assets and liabilities, especially option-embedded financial instruments like mortgage-backed securities; changes in market conditions; and interest-rate sensitivities of our customer liabilities with respect to the interest rates paid and the level of balances.
These assumptions are inherently uncertain and, as a result, the models cannot precisely calculate future NIR or predict the impact of changes in interest rates on NIR and economic value.
Actual results could differ from simulated results due to the timing, magnitude and frequency of changes in interest rates and market conditions, changes in spreads and management strategies, among other factors.
Projections of potential future streams of NIR are assessed as part of our forecasting process.
The following table presents the estimated exposure of NIR for the next twelve months, calculated as of December 31, 2005 and 2004, due to an immediate Â± 100 basis point shift in then-current interest rates.
Estimated incremental exposures set forth below are dependent on managements assumptions about asset and liability sensitivities under various interest-rate scenarios, such as those previously discussed, and do not reflect any actions management may undertake in order to mitigate some of the adverse effects of interest-rate changes on State Streets financial performance.


| December 31, 2016 2015 2014 | Balance at January 1 | Additions for current year tax positions | Additions for tax positions of prior years | Reductions for tax positions of prior years | Effects of foreign currency translation | Settlements | Lapse of statute of limitations | Balance at December 31 |


(a) Under the terms of these agreements, the Company receives settlement amounts at a fixed rate and pays at a variable rate.
In response to changes in its interest rate risk profile, during 2008 the Company terminated interest rate swap agreements with a notional amount of $1.5 billion that had originally been entered into as cash flow hedges of variable rate long-term borrowings.
The Company recognized a $37 million loss as a result of the termination.
Amounts pertaining to these interest rate swap agreements that were reclassified from accumulated other comprehensive income to increase interest expense were $11 million and $26 million for 2009 and 2008, respectively.
The notional amount of interest rate swap agreements entered into for risk management purposes that were outstanding at December 31, 2010 mature in 2016 and 2017.
The Company utilizes commitments to sell residential and commercial real estate loans to hedge the exposure to changes in the fair value of real estate loans held for sale.
Such commitments have generally been designated as fair value hedges.
The Company also utilizes commitments to sell real estate loans to offset the exposure to changes in fair value of certain commitments to originate real estate loans for sale.
Derivative financial instruments used for trading purposes included interest rate contracts, foreign exchange and other option contracts, foreign exchange forward and spot contracts, and financial futures.
Interest rate contracts entered into for trading purposes had notional values of $12.8 billion and $13.9 billion at December 31, 2010 and 2009, respectively.
The notional amounts of foreign currency and other option and futures contracts entered into for trading purposes aggregated $769 million and $608 million at December 31, 2010 and 2009, respectively.147


| Years Ended December 31, | 2011 | (In millions) | Total gains (losses) on fixed maturity securities: | Total OTTI losses recognized | Less: Noncredit portion of OTTI losses transferred to and recognized in other comprehensive income (loss) | Net OTTI losses on fixed maturity securities recognized in earnings -1 | Fixed maturity securities — net gains (losses) on sales and disposals | Total gains (losses) on fixed maturity securities | Other net investment gains (losses): | Equity securities | Trading and other securities — FVO general account securities —changes in estimated fair value | Mortgage loans | Real estate and real estate joint ventures | Other limited partnership interests | Other investment portfolio gains (losses) | Subtotal — investment portfolio gains (losses) | FVO CSEs — changes in estimated fair value: | Commercial mortgage loans | Securities | Long-term debt — related to commercial mortgage loans | Long-term debt — related to securities | Other gains (losses) (2) | Subtotal FVO CSEs and other gains (losses) | Total net investment gains (losses) |


AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) market and lease the unused tower space on the broadcast towers (the Economic Rights).
TV Azteca retains title to these towers and is responsible for their operation and maintenance.
The Company is entitled to 100% of the revenues generated from leases with tenants on the unused space and is responsible for any incremental operating expenses associated with those tenants.
The term of the Economic Rights Agreement is seventy years; however, TV Azteca has the right to purchase, at fair market value, the Economic Rights from the Company at any time during the last fifty years of the agreement.
Should TV Azteca elect to purchase the Economic Rights (in whole or in part), it would also be obligated to repay a proportional amount of the loan discussed above at the time of such election.
The Company’s obligation to pay TV Azteca $1.5 million annually would also be reduced proportionally.
The Company has accounted for the annual payment of $1.5 million as a capital lease (initially recording an asset and a corresponding liability of approximately $18.6 million).
The capital lease asset and the discount on the note, which aggregate approximately $30.2 million, represent the cost to acquire the Economic Rights and are being amortized over the seventy-year life of the Economic Rights agreement.
On a quarterly basis, the Company assesses the recoverability of its note receivable from TV Azteca.
As of December 31, 2007 and 2006, the Company has assessed the recoverability of the note receivable from TV Azteca and concluded that no adjustment to its carrying value is required.
A former executive officer and former director of the Company served as a director of TV Azteca from December 1999 to February 2006.
As of December 31, 2007 and 2006, the Company also had other long-term notes receivable outstanding of approximately $4.3 million and $11.0 million, respectively.8.
DERIVATIVE FINANCIAL INSTRUMENTS The Company enters into interest rate protection agreements to manage exposure on the variable rate debt under its credit facilities and to manage variability in cash flows relating to forecasted interest payments.
Under these agreements, the Company is exposed to credit risk to the extent that a counterparty fails to meet the terms of a contract.
Such exposure was limited to the current value of the contract at the time the counterparty fails to perform.
The Company believes its contracts as of December 31, 2007 and 2006 are with credit worthy institutions.
As of December 31, 2007 and 2006, the carrying amounts of the Company’s derivative financial instruments, along with the estimated fair values of the related assets reflected in notes receivable and other long-term assets and (liabilities) reflected in other long-term liabilities in the accompanying consolidated balance sheet, are as follows (in thousands except percentages):


CORPORATE AND OTHER Certain corporate and other charges are reported as a separate line item within total segment operating income and include corporate office expenses, as well as shared service center and certain other centrally managed expenses that are not fully allocated to operating divisions.
Salaries and related expenses include salaries, long-term incentives, annual bonuses and other miscellaneous benefits for corporate office employees.
Office and general expenses primarily include professional fees related to internal control compliance, financial statement audits and legal, information technology and other consulting services that are engaged and managed through the corporate office.
In addition, office and general expenses also include rental expense and depreciation of leasehold improvements for properties occupied by corporate office employees.
A portion of centrally managed expenses are allocated to operating divisions based on a formula that uses the planned revenues of each of the operating units.
Amounts allocated also include specific charges for information technology-related projects, which are allocated based on utilization.
Corporate and other expenses increased during 2013 by $3.5 to $140.8 compared to 2012, primarily due to an increase in salaries and related expenses, mainly attributable to higher base salaries, benefits and temporary help, partially offset by lower severance expenses and a decrease in office and general expenses.


| (Per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Total | 2015 High | 2015 Low | 2014 High | 2014 Low |


Cost of Sales Cost of sales, for both products and services, consist of materials, labor, and subcontracting costs, as well as an allocation of indirect costs (overhead and general and administrative).
For each of our contracts, we monitor the nature and amount of costs at the contract level, which form the basis for estimating our total costs at completion of the contract.
Our consolidated cost of sales were as follows (in millions):
Due to the nature of POC accounting, changes in our cost of product and services sales are typically accompanied by changes in our net sales.
The following discussion of material changes in our consolidated cost of sales should be read in tandem with the preceding discussion of changes in our consolidated net sales and with our Business Segment Results of Operations section.
We have not identified any developing trends in cost of sales that would have a material impact on our future operations.


| Exercisable Unexercisable Total | Stock Options | Less than $37.86 | Above $37.86 | Total outstanding |


| Four Quarters Ended Four Quarters Ended | Financial Covenants1 | Interest coverage ratio (not less than) | Actual interest coverage ratio | Leverage ratio (not greater than) | Actual leverage ratio | Years ended December 31, | 2018 | Cost of investment: current-year acquisitions1 | Cost of investment: prior-year acquisitions | Less: net cash acquired | Total cost of investment | Operating payments2 | Total cash paid for acquisitions3 |


| December 31, | (Dollars in millions) | 2015 | 2014 | 2013 | 2012 | 2011 |


| 2014 Change 2013 Change 2012 | Net sales | Percentage of total net sales | Unit sales |


Table 1: The fair value of the Interest Agreements at December 31, 2007 and December 31, 2006 was $3 million and $1 million, respectively.
The Company is exposed to credit loss in the event of nonperformance by the counterparties to its swap contracts.
The Company minimizes its credit risk on these transactions by only dealing with leading, creditworthy financial institutions and does not anticipate nonperformance.
In addition, the contracts are distributed among several financial institutions, all of whom presently have investment grade credit ratings, thus minimizing credit risk concentration.
Stockholders Equity Derivative instruments activity, net of tax, included in Non-owner changes to equity within the consolidated statements of stockholders equity for the years ended December 31, 2007 and 2006 is as follows:


| Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Programs Maximum Dollar Value of Shares that May Yet Be Purchased Under the Programs | Month #1August 3, 2003 through September 6, 2003 | Month #2September 7, 2003 through October 4, 2003 | Month #3October 5, 2003 through November 1, 2003 | Total | Fiscal Year Ended-1 | October 31, | 2003 | (in thousands, except per share data) | Revenue | Income (loss) before income taxes and extraordinary items(2) | Provision (benefit) for income taxes | Net income (loss) | Earnings (loss) per share(3): | Basic | Diluted | Working capital | Total assets | Long-term debt | Stockholders’ equity |


| At December 31, | 2009 | (Inthousands) | Balance Sheet Data | Cash, cash equivalents, restricted cash, and marketable | securities (current and non-current) | Total assets | Notes payable - current portion | Notes payable - long-term portion | Facility lease obligations | Stockholders’ equity |


| Component Changes in AUM — iShares | (in millions) | Equity | Fixed income | Multi-asset class | Alternatives-2 | TotaliShares |


| December 31 | 2010 | (Dollars in millions) | Maximum loss exposure | On-balance sheet assets | Trading account assets | Derivative assets | Loans and leases | Loansheld-for-sale | All other assets | Total | On-balance sheet liabilities | Derivative liabilities | Commercial paper and other short-term borrowings | Long-term debt | All other liabilities | Total | Total assets of VIEs |


expense was $272, $292 and $270 in 2019, 2018 and 2017, respectively.
The primary U. S.  defined contribution plan (the U. S.  DC plan) comprises the majority of the expense for the Company's defined contribution plans.
For the U. S.  DC plan, the contribution rate is set annually.
Total contributions for this plan approximated 14% of total participants' annual wages and salaries in 2019, 2018 and 2017.
We maintain The Procter & Gamble Profit Sharing Trust (Trust) and Employee Stock Ownership Plan (ESOP) to provide a portion of the funding for the U. S.  DC plan and other retiree benefits (described below).
Operating details of the ESOP are provided at the end of this Note.
The fair value of the ESOPSeries A shares allocated to participants reduces our cash contribution required to fund the U. S.  DC plan.


| ($ in millions) 2007 2006 2005 | Interest costs before refinancing costs | Debt refinancing costs | Total interest costs | Amounts capitalized | Interest expense | Interest paid during the year(a) |


Policyholders’ Account Balances Policyholders’ account balances at December 31 for the years indicated are as follows:


| 2012 2011 change | Industrial Technology | Energy Systems and Controls | Medical and Scientific Imaging | RF Technology | Total |


| As of December 31 (dollars in millions) 2013 2012 2011 2010 2009 | Total stockholders’ equity | Less: Goodwill and other acquisition-related intangible assets | Tangible stockholders’ equity | Total assets | Less: Goodwill and other acquisition-related intangible assets | Tangible assets | Tangible equity ratio | As of December 31 (in millions, except per share data) | Tangible stockholders’ equity | Common shares issued | Less: Common shares classified as treasury shares | Unallocated ESOP common shares | Common shares | Tangible book value per share |


Oil and Gas Prices Oil and Gas Operating Area Prices We expect our 2008 average prices for the oil and gas production from each of our operating areas to differ from the NYMEX price as set forth in the following table.
These expected ranges are exclusive of the anticipated effects of the oil and gas financial contracts presented in the “Commodity Price Risk Management” section below.
The NYMEX price for oil is the monthly average of settled prices on each trading day for benchmark West Texas Intermediate crude oil delivered at Cushing, Oklahoma.
The NYMEX price for gas is determined to be the first-of-month south Louisiana Henry Hub price index as published monthly in Inside FERC.


Stock Performance Graph At least annually, we consider which companies comprise a readily identifiable investment peer group.
McDonald's is included in published restaurant indices; however, unlike most other companies included in these indices, which have no or limited international operations, McDonald's does business in more than 100 countries and a substantial portion of our revenues and income is generated outside the U. S.  In addition, because of our size, McDonald's inclusion in those indices tends to skew the results.
Therefore, we believe that such a comparison is not meaningful.
Our market capitalization, trading volume and importance in an industry that is vital to the U. S.  economy have resulted in McDonald's inclusion in the Dow Jones Industrial Average (DJIA) since 1985.
Like McDonald's, many DJIA companies generate meaningful revenues and income outside the U. S.  and some manage global brands.
Thus, we believe that the use of the DJIA companies as the group for comparison purposes is appropriate.
The following performance graph shows McDonald's cumulative total shareholder returns (i. e. , price appreciation and reinvestment of dividends) relative to the Standard & Poor's 500 Stock Index (S&P 500 Index) and to the DJIA companies for the five-year period ended December 31, 2016.
The graph assumes that the value of an investment in McDonald's common stock, the S&P 500 Index and the DJIA companies (including McDonald's) was $100 at December 31, 2011.
For the DJIA companies, returns are weighted for market capitalization as of the beginning of each period indicated.
These returns may vary from those of the Dow Jones Industrial Average Index, which is not weighted by market capitalization, and may be composed of different companies during the period under consideration.


| Years Ended December 31, | 2016 | Dollars inMillions | Segments:-1 | Corporate-2(3)(4) | Small Business-2(3)(4) | Public-2(4) | Other-4(5) | Headquarters-6 | Total Income from operations |


The Company is currently under audit by the Internal Revenue Service and other major taxing jurisdictions around the world.
It is thus reasonably possible that significant changes in the gross balance of unrecognized tax benefits may occur within the next 12 months, but the Company does not expect such audits to result in amounts that would cause a significant change to its effective tax rate, other than the following items.
The Company is currently at IRS Appeals for the years 19992002.
One of the issues relates to the timing of the inclusion of interchange fees received by the Company relating to credit card purchases by its cardholders.
It is reasonably possible that within the next 12 months the Company can either reach agreement on this issue at Appeals or decide to litigate the issue.
This issue is presently being litigated by another company in a United States Tax Court case.
The gross uncertain tax position for this item at December 31, 2008 is $542 million.
Since this is a temporary difference, the only effect to the Companys effective tax rate would be due to net interest and state tax rate differentials.
If the reserve were to be released, the tax benefit could be as much as $168 million.
In addition, the Company expects to conclude the IRS audit of its U. S.  federal consolidated income tax returns for the years 20032005 within the next 12 months.
The gross uncertain tax position at December 31, 2008 for the items expected to be resolved is approximately $350 million plus gross interest of $70 million.
The potential net tax benefit to continuing operations could be approximately $325 million.
The following are the major tax jurisdictions in which the Company and its affiliates operate and the earliest tax year subject to examination:


ITEM 6.
SELECTED FINANCIAL DATA The following selected consolidated financial data are derived from our Consolidated Financial Statements.
The data should be read in conjunction with Item 7,
Management’s Discussion and Analysis of Financial Condition and Results of Operations,
 Item 1A,
Risk Factors,
 Item 8,
Financial Statements and Supplementary Data,
 and all other financial data contained in this annual report on Form 10-K.
These historical results are not necessarily indicative of the results to be expected in the future.


REPUBLIC SERVICES, INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED The intangible assets identified that were determined to have value as a result of our analysis of Allied’s projected revenue streams and their related profits include customer relationships, franchise agreements, other municipal agreements, non-compete agreements and trade names.
The fair values for these intangible assets are reflected in the previous table.
Other intangible assets were identified that are considered to be components of either property and equipment or goodwill under U. S.  GAAP, including the value of the permitted and probable airspace at Allied’s landfills (property and equipment), the going concern element of Allied’s business (goodwill) and its assembled workforce (goodwill).
The going concern element represents the ability of an established business to earn a higher rate of return on an assembled collection of net assets than would be expected if those assets had to be acquired separately.
A substantial portion of this going concern element acquired is represented by Allied’s infrastructure of market-based collection routes and its related integrated waste transfer and disposal channels, whose value has been included in goodwill.
All of the goodwill and other intangible assets resulting from the acquisition of Allied will not be deductible for income tax purposes.
Pro Forma Information The consolidated financial statements presented for Republic include the operating results of Allied from the date of the acquisition.
The following pro forma information is presented assuming the merger had been completed as of January 1, 2007.
The unaudited pro forma information presented has been prepared for illustrative purposes and is not intended to be indicative of the results of operations that would have actually occurred had the acquisition been consummated at the beginning of the periods presented or of future results of the combined operations.
Furthermore, the pro forma results do not give effect to all cost savings or incremental costs that occur as a result of the integration and consolidation of the acquisition (in millions, except share and per share amounts).


| Year ended April 30, 2012 2011 (in000s) 2010 | Revenues | Pretax income (loss) from operations: | RSM and related businesses | Mortgage | -45,261 | Income taxes (benefit) | Net income (loss) from operations | Pretax loss on sales of businesses | Income tax benefit | Net loss on sales of businesses | Net income (loss) from discontinued operations |


Consumer, excluding credit card, loan portfolio Consumer loans, excluding credit card loans, consist primarily of residential mortgages, home equity loans and lines of credit, auto loans, business banking loans, and student and other loans, with a focus on serving the prime consumer credit market.
The portfolio also includes home equity loans secured by junior liens, prime mortgage loans with an interest-only payment period, and certain paymentoption loans originated by Washington Mutual that may result in negative amortization.
The table below provides information about retained consumer loans, excluding credit card, by class.


Managements discussion and analysis 164 JPMorgan Chase & Co. /2015 Annual Report Credit ratings The cost and availability of financing are influenced by credit ratings.
Reductions in these ratings could have an adverse effect on the Firms access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm.
Additionally, the Firms funding requirements for VIEs and other third party commitments may be adversely affected by a decline in credit ratings.
For additional information on the impact of a credit ratings downgrade on the funding requirements for VIEs, and on derivatives and collateral agreements, see Special-purpose entities on page 77, and credit risk, liquidity risk and credit-related contingent features in Note 6.
The credit ratings of the Parent Company and the Firms principal bank and nonbank subsidiaries as of December 31, 2015, were as follows.


| Amount Percentage of TotalOutstandings | Dollars in millions | Commercial | Commercial real estate | Equipment lease financing | Home equity (b) | Residential real estate | Non government insured | Government insured | Credit card | Other consumer | Non government insured | Government insured | Total |


| Shares Weighted-Average Grant Date Fair Value | Non-vested at December 31, 2005 | Granted during the period | Vested during the period | Forfeited during the period | Non-vested at December 31, 2006 |


| Operating Segment | (in millions) | Balance at December 31, 2010 | Acquisition of Danvers | Adjustments | Balance at December 31, 2011 | Acquisition of branches | Adjustments | Balance at December 31, 2012 | Balance at December 31, 2013 |


| Year Ended December 31, | 2017 | Total revenue | Total cruise operating expense | Operating income | Net income | EPS: | Basic | Diluted |


| 2007 2008 2009 2010 2011 Thereafter Total | Long-term debt1 | Interest payments | Non-cancelable operating lease obligations | Contingent acquisition payments2 |


NOTE 13: RESTRICTED STOCK, STOCK OPTIONS AND OTHER STOCK PLANS Prior to 2002, our Company accounted for our stock option plans and restricted stock plans under the recognition and measurement provisions of APB Opinion No.25 and related interpretations.
Effective January 1, 2002, our Company adopted the preferable fair value recognition provisions of SFAS No.123.
Our Company selected the modified prospective method of adoption described in SFAS No.148.
Compensation cost recognized in 2002 was the same as that which would have been recognized had the fair value method of SFAS No.123 been applied from its original effective date.
Refer to Note 1.
In accordance with the provisions of SFAS No.123 and SFAS No.148, $345 million, $422 million and $365 million were recorded for total stock-based compensation expense in 2004, 2003 and 2002, respectively.
The $345 million and $365 million recorded in 2004 and 2002, respectively, were recorded in selling, general and administrative expenses.
Of the $422 million recorded in 2003, $407 million was recorded in selling, general and administrative expenses and $15 million was recorded in other operating charges.
Refer to Note 17.
Stock Option Plans Under our 1991 Stock Option Plan (the 1991 Option Plan), a maximum of 120 million shares of our common stock was approved to be issued or transferred to certain officers and employees pursuant to stock options granted under the 1991 Option Plan.
Options to purchase common stock under the 1991 Option Plan have been granted to Company employees at fair market value at the date of grant.
The 1999 Stock Option Plan (the 1999 Option Plan) was approved by shareowners in April 1999.
Following the approval of the 1999 Option Plan, no grants were made from the 1991 Option Plan, and shares available under the 1991 Option Plan were no longer available to be granted.
Under the 1999 Option Plan, a maximum of 120 million shares of our common stock was approved to be issued or transferred to certain officers and employees pursuant to stock options granted under the 1999 Option Plan.
Options to purchase common stock under the 1999 Option Plan have been granted to Company employees at fair market value at the date of grant.


| Dollars in millions December 312016 December 312015 Expiration | Net Operating Loss Carryforwards: | Federal | State |


| Twelve months ended December 31, | 2015 | (in millions, except as noted) | Net sales | Cost of sales | Gross margin | Gross margin percentage | Sales volume by product tons (000s) | Sales volume by nutrient tons (000s)(1) | Average selling price per product ton | Average selling price per nutrient ton-1 | Gross margin per product ton | Gross margin per nutrient ton-1 | Depreciation and amortization |


| Millions OperatingLeases CapitalLeases | 2014 | 2015 | 2016 | 2017 | 2018 | Later years | Total minimum leasepayments | Amount representing interest | Present value of minimum leasepayments |


| Cash $116 | Accounts receivable | Inventory | Other current assets | Property, plant and equipment | Intangible assets subject to amortization | Intangible assets—indefinite-lived | Regulatory assets | Other noncurrent assets | Current liabilities | Non-recourse debt | Deferred taxes | Regulatory liabilities | Other noncurrent liabilities | Redeemable preferred stock | Net identifiable assets acquired | Goodwill | Net assets acquired |


| September 30, | 2018 | $ in thousands | Loans held for investment: | C&I loans | CRE construction loans | CRE loans | Tax-exempt loans | Residential mortgage loans | SBL | Total loans held for investment | Net unearned income and deferred expenses | Total loans held for investment, net | Loans held for sale, net | Total loans held for sale and investment | Allowance for loan losses | Bank loans, net |


| 2014 2015 2016 2017 2018 2019 - 2023 | Qualified defined benefit pension plans | Retiree medical and life insurance plans |


| In Millions | 2015 | CMS Energy, including Consumers | Consumers | Enterprises | Total CMS Energy | Consumers | Electric utility operations | Gas utility operations | Total Consumers |


| 2006 $2,408 | 2007 | Total |


Corporate Developments On April 12, 1999, Pactiv Corporation, formerly known as Tenneco Packaging Inc. , a wholly owned subsidiary of Tenneco Inc. , sold its containerboard and corrugated products business to PCA, an entity formed by Madison Dearborn Partners, LLC, a private equity investment firm, in January 1999, for $2.2 billion, consisting of $246.5 million in cash, the assumption of $1,760.0 million of debt incurred by Pactiv immediately prior to the contribution, and a 45% common equity interest in PCA valued at $193.5 million.
PCA Holdings LLC, an entity organized and controlled by Madison Dearborn, acquired the remaining 55% common equity interest in PCA for $236.5 million in cash, which was used to finance in part the transactions.
The financing of the transactions consisted of (1) borrowings under a new $1,469.0 million senior credit facility for which J. P.  Morgan Securities Inc.  and BT Alex.
Brown Incorporated (the predecessor to Deutsche Banc Alex.
Brown) were co-lead arrangers, (2) the offering of $550.0 million of 9 5/8% senior subordinated notes due 2009, and $100.0 million of 12 3/8% senior exchangeable preferred stock due 2010, (3) a cash equity investment of $236.5 million by PCA Holdings LLC and (4) an equity investment by Pactiv valued at $193.5 million.
As required by their terms, the $550.0 million of senior subordinated notes and $100.0 million of senior exchangeable preferred stock issued in the April 12, 1999 transactions were exchanged for publicly registered securities in the same amounts in a registered exchange offer completed in October 1999.
The information in the graph and table above is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference in any of PCAs filings under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date of this Annual Report on Form 10-K, except to the extent that PCA specifically incorporates such information by reference.


| Years Ended December 31, | 2012 | ContractualRates | Long-term debt |


| Calendar year: Pre-tax catastrophe losses | (Dollars in millions) | 2018 | 2017 | 2016 | 2015 | 2014 |


| (In millions) 2018 2019 2020 2021 2022 Thereafter Total-2 | As of December 31, 2017 | Long-term debt-1 | Weighted average interest rates |


Private equity fund investments included above are not redeemable, because distributions from the funds will be received when underlying investments of the funds are liquidated.
Private equity funds are generally expected to have 10-year lives at their inception, but these lives may be extended at the fund manager’s discretion, typically in one or two-year increments.
At December 31, 2018, assuming average original expected lives of 10 years for the funds, 14 percent of the total fair value using net asset value per share (or its equivalent) presented above would have expected remaining lives of three years or less, 43 percent between four and six years and 43 percent between seven and 10 years.


| Ownership % | InfraServ GmbH & Co. Gendorf KG | InfraServ GmbH & Co. Knapsack KG | InfraServ GmbH & Co. Hoechst KG |


| (in millions) Domestic Brokerage Group Transatlantic Personal Lines Mortgage Guaranty Foreign General Reclassifications and Eliminations Total | 2006: | Statutory underwriting profit (loss) | Increase (decrease) in DAC | Net investment income | Realized capital gains (losses) | Operating income (loss) | 2005: | Statutory underwriting profit (loss) | Increase (decrease) in DAC | Net investment income | Realized capital gains (losses) | Operating income (loss) | 2004: | Statutory underwriting profit (loss) | Increase (decrease) in DAC | Net investment income | Realized capital gains (losses) | Operating income (loss) |


| For the Year 2010 | Life | Revenue: | Premium | Net investment income | Other income | Total revenue | Expenses: | Policy benefits | Required interest on: Policy reserves | Deferred acquisition costs | Amortization of acquisition costs | Commissions, premium taxes, and non-deferred acquisition costs | Insurance administrative expense-3 | Parent expense | Stock-based compensation expense | Interest expense | Total expenses | Subtotal | Amortization of low-income housing interests | Measure of segment profitability (pretax) | Deduct applicable income taxes | Segment profits after tax | Add back income taxes applicable to segment profitability | Add (deduct) realized investment gains (losses) | Deduct amortization of low-incomehousing -5 | Pretax income per Consolidated Statement of Operations | For the Year | 2012 | Cost of acquisitions: | Investment-grade corporate securities | Taxable municipal securities | Other investment-grade securities | Total fixed-maturity acquisitions | Effective annual yield (one year compounded*) | Average life (in years, to next call) | Average life (in years to maturity) | Average rating |


Supplemental Cash Flow Information Net cash paid for interest and income taxes was as follows for the years ended December 31, 2016, 2015 and 2014 (in thousands):
EOG's accrued capital expenditures at December 31, 2016, 2015 and 2014 were $388 million, $416 million and $972 million, respectively.
Non-cash investing activities for the year ended December 31, 2016, included $3,834 million in non-cash additions to EOG's oil and gas properties related to the Yates transaction (see Note 17).
Non-cash investing activities for the year ended December 31, 2014 included non-cash additions of $5 million to EOG's oil and gas properties as a result of property exchanges.11.  Business Segment Information EOG's operations are all crude oil and natural gas exploration and production related.
The Segment Reporting Topic of the ASC establishes standards for reporting information about operating segments in annual financial statements.
Operating segments are defined as components of an enterprise about which separate financial information is available and evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance.
EOG's chief operating decision-making process is informal and involves the Chairman of the Board and Chief Executive Officer and other key officers.
This group routinely reviews and makes operating decisions related to significant issues associated with each of EOG's major producing areas in the United States, Trinidad, the United Kingdom and China.
For segment reporting purposes, the chief operating decision maker considers the major United States producing areas to be one operating segment.
EOG RESOURCES, INC.
SUPPLEMENTAL INFORMATION TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)


| REGULATORY GUIDELINES STATE STREET STATE  STREET  BANK | Minimum | Regulatory capital ratios: | Tier 1 risk-based capital | Total risk-based capital | Tier 1 leverage ratio-1 |


| Options Outstanding Options Exercisable | Range of Per Share Exercise Prices | $ 4.02—$ 5.19 | $ 7.02—$ 8.38 | $ 9.25—$12.88 | $14.93—$18.88 | $21.10—$26.32 | $27.84—$43.16 | November 30, | 2003 | Carrying Amount | (In thousands) | ASSETS | Homebuilding: | Investments—trading | Financial services: | Mortgage loans held for sale, net | Mortgage loans, net | Investments held-to-maturity | Limited-purpose finance subsidiaries—collateral for bonds and notes payable | LIABILITIES | Homebuilding: | Senior notes and other debts payable | Financial services: | Notes and other debts payable | Limited-purpose finance subsidiaries—bonds and notes payable | OTHER FINANCIAL INSTRUMENTS | Homebuilding: | Interest rate swaps | Financial services assets (liabilities): | Commitments to originate loans | Forward commitments to sell loans and option contracts |


| In millions at December 31 2007 2006 | Raw materials | Finished pulp, paper and packaging products | Operating supplies | Other | Inventories |


(1) Represents depreciation and amortization from continuing operations.
(2) Represents the effect of foreign currency translation by translating results at an average exchange rate for the periods measured.
(3) Represents one-year weighted-average adjusted cash used for investing activities, determined by applying the weightings below to the adjusted cash used for investing activities for each quarter in the two-year period ended December 31, 2008.


on our credit rating; or (3) U. S.  Swing Loan, Euro Swing Loan, or Foreign Currency Swing Loan, which will bear interest at the rate equal to the applicable Swing Loan rate for that currency plus the same applicable margin plus additionally for Euro and Sterling loans, an applicable reserve requirement and cost adjustment.
We also agreed to pay a facility fee on the aggregate commitment amount, whether used or unused, at a rate ranging from 0.04% to 0.10% and a utilization fee on loans at a rate ranging from 0.05% to 0.10% based on our credit rating.
Currently, the applicable margin is 0.15%, the facility fee is 0.05% and the utilization fee is 0.05%.
This facility contains certain covenants, including financial covenant requirements relating to a maximum level of debt to EBITDA and events of default customary for financings of this type.
This facility expires on February 15, 2013.
There were no borrowings under this facility and we were in compliance with all covenants during and at the end of fiscal 2010.
U. S.  commercial paper programs.
We maintain a $500 million U. S.  commercial paper program, which provides for the issuance of unsecured debt with maturities up to 270 days from the date of issuance at interest rates generally extended to companies with comparable credit ratings.
The commercial paper program is a source of short-term borrowed funds that may be used from time to time to cover short-term cash needs.
We had no obligations outstanding under this program during and at the end of fiscal 2010.
There are no financial covenants related to this program.
Universal shelf registration statement.
On May 6, 2009, we filed a registration statement with the U. S.  Securities and Exchange Commission using a shelf registration process.
As permitted by the registration statement, we may, from time to time, sell shares of debt or equity securities in one or more transactions.
The registration statement expires on May 5, 2012.
Escrow account.
We maintain an escrow account for use in the payment of covered litigation matters.
When the Company funds the escrow account, the shares of class B common stock held by our stockholders are subject to dilution through an adjustment to the conversion rate of the shares of class B common stock to shares of class A common stock.
See Note 4—Retrospective Responsibility Plan to our consolidated financial statements.
The balance in this account at September 30, 2010 was $1.9 billion and is reflected as restricted cash on our consolidated balance sheet.
In October 2010, after the end of our 2010 fiscal year, we deposited an additional $800 million into the escrow account.
As these funds are restricted for use solely for the purpose of making payments related to covered litigation matters, we have not included them as part of our liquid assets.
However, they should be viewed as a source of cash for purposes of making payments related to settlement of or judgment in covered litigation matters, as described below under Uses of Liquidity.
Credit Ratings At September 30, 2010, Standard and Poor’s and Moody’s rated our unsecured debt as follows:


| Year ended December 31 | Dollars in millions, except per share data | SUMMARYOFOPERATIONS | Interest income | Interest expense | Net interest income | Noninterest income | Total revenue | Provision for credit losses | Noninterest expense (b) | Income from continuing operations before income taxes and noncontrolling interests | Income taxes (b) | Income from continuing operations before noncontrolling interests | Income from discontinued operations (net of income taxes of zero, zero, zero, zero and$338) (c) | Net income (b) | Less: Net income (loss) attributable to noncontrolling interests (b) | Preferred stock dividends (d) | Preferred stock discount accretion and redemptions (d) | Net income attributable to common shareholders (d) | PERCOMMONSHARE | Basic earnings | Continuing operations (b) | Discontinued operations (c) | Net income | Diluted earnings | Continuing operations (b) | Discontinued operations (c) | Net income | Book value (b) | Cash dividends declared |


| 2007 2006 2005 | Weighted average shares outstanding for basic net earnings per share | Effect of dilutive stock options and other equity awards | Weighted average shares outstanding for diluted net earnings per share |


| December 31, | 2015 | Long-term assets, excluding goodwill and other intangibles | U.S. | Canada | Mexico | Total consolidated long-lived assets |


| Dollars and shares in millions, except per share data Amount 2017 Increase/ (decrease) Amount 2016 Increase/ (decrease) 2015 Amount | Revenues | Sales by Company-operated restaurants | Revenues from franchised restaurants | Total revenues | Operating costs and expenses | Company-operated restaurant expenses | Franchised restaurants-occupancy expenses | Selling, general & administrative expenses | Other operating (income) expense, net | Total operating costs and expenses | Operating income | Interest expense | Nonoperating (income) expense, net | Income before provision for income taxes | Provision for income taxes | Net income | Earnings per common share—diluted | Weighted-average common shares outstanding—diluted |


| Project: Market Total Units Units Completed Cost to Date Budgeted Cost Estimated Cost Per Unit Expected Completion | Post River North | 1201 Midtown II | Post Centennial Park | 937 |


| December 31 | Outstandings | (Dollars in millions) | Commercial loans and leases | Commercial – domestic-3 | Commercial real estate-4 | Commercial lease financing | Commercial – foreign | 300,102 | Small business commercial – domestic-5 | Total commercial loans excluding loans measured at fair value | Total measured at fair value-6 | Total commercial loans and leases | Net Charge-offs | (Dollars in millions) | Commercial loans and leases | Commercial – domestic-4 | Commercial real estate | Commercial lease financing | Commercial – foreign | 5,624 | Small business commercial – domestic | Total commercial |


| Payments Due by Period | 2016 - 19 | (in millions) | Asset retirement obligations | December 31, 2008 | Aaa | Cost or | Amortized | Cost | (In millions) | 2003 & Prior | 2004 | 2005 | 2006 | 2007 | 2008 | Total | Ratings Distribution |


| Years Ended December 31, | 2014 | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Premiums | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest credited to fixed accounts | Benefits, claims, losses and settlement expenses | Amortization of deferred acquisition costs | Interest and debt expense | General and administrative expense | Total expenses | Operating earnings |


| Year North America-1 Europe-2 | 2009 | 2010 | 2011 | 2012 | 2013 |


| Incremental | In billions of dollars | Credit cards | Commercial paper conduits | Private label consumer mortgages | Student loans | Muni bonds | Mutual fund deferred sales commission securitization | Investment funds | Total | In millions of dollars, except total and average loan amounts in billions | Product View: | Global Cards | North America | Ratio | EMEA | Ratio | Latin America | Ratio | Asia | Ratio | Consumer Banking | North America | Ratio | EMEA | Ratio | Latin America | Ratio | Asia | Ratio | GWM | Ratio | On-balance-sheet loans(2) | Ratio | Securitized receivables (all in NA Cards) | Credit card receivables held-for-sale(3) | Managed loans(4) | Ratio | Regional view: | North America | Ratio | EMEA | Ratio | Latin America | Ratio | Asia | Ratio | On-balance-sheet loans(2) | Ratio | Securitized receivables (all inNA Cards) | Credit card receivables held-for-sale(3) | Managed loans(4) | Ratio |


| 2004 2003 2002 | Cash, cash equivalents, and short-term investments | Accounts receivable, net | Inventory | Working capital | Days sales in accounts receivable (DSO) (a) | Days of supply in inventory (b) | Days payables outstanding (DPO) (c) | Annual operating cash flow | See Note(s) | (Thousands of Dollars) | Regulatory Assets | Pension and employee benefit obligations | AFDC recorded in plant(a) | Conservation programs(a) | Term of related | Contract valuation adjustments(d) | Losses on reacquired debt | Net asset retirement obligations(e) | Renewable resource costs | Environmental costs | Unrecovered natural gas costs(c) | Private fuel storage | State commission accounting adjustments(a) | Unrecovered electric production and MISO Day 2 costs | Nuclear decommissioning costs(b) | Rate case costs | Other | Total regulatory assets | Regulatory Liabilities | Plant removal costs | Pension and employee benefit obligations | Investment tax credit deferrals | Deferred income tax adjustments | Contract valuation adjustments(d) | Fuel costs, refunds and other | Electric fuel recovery refund | Interest on income tax refunds | Total regulatory liabilities |


| As of December 31, | 2012 | (In $ millions) | Short-Term Borrowings and Current Installments of Long-Term Debt - Third Party and Affiliates | Current installments of long-term debt | Short-term borrowings, including amounts due to affiliates | Total |


| Year Ended Year Ended | January 25,2015 | (In millions) | GPU | Tegra Processor | All Other | Total |


Company Stock Performance The following graph shows a five-year comparison of cumulative total shareholder return, calculated on a dividend reinvested basis, for the Company, the S&P 500 Composite Index, the S&P Computer Hardware Index, and the Dow Jones U. S.  Technology Index.
The graph assumes $100 was invested in each of the Company’s common stock, the S&P 500 Composite Index, the S&P Computer Hardware Index, and the Dow Jones U. S.  Technology Index as of the market close on September 30, 2007.
Data points on the graph are annual.
Note that historic stock price performance is not necessarily indicative of future stock price performance.


| For the Years Ended December 31, | (In millions, except per share data) | Statement of Operations data: | Operating revenues | Income from continuing operations(a) | Income from continuing operations per basic common share(a) | Income from continuing operations per diluted common share(a) | Balance Sheet data: | Total assets(b) (c) | Long-term debt and redeemable preferred stock at redemption value(b) | Other data: | Cash dividends declared per common share | Net cash provided by operating activities(d) (e) (f) | Net cash used in investing activities(f) | Net cash provided by (used in) financing activities(d) (e) (f) | Capital expenditures included in net cash used in investing activities |


| 2014 $ 907.4 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | Pension Benefits | Transition Obligation | (in millions) | Balance, December 31, 2008 | Amortization for the period | Deferrals for the period | Impact of foreign currency changes and other | Balance, December 31, 2009 | Amortization for the period | Deferrals for the period | Impact of foreign currency changes and other | Balance, December 31, 2010 |


The equity and debt securities objectives are to provide diversified exposure across the US and global equity markets and to manage the risks and returns of the plans through the use of multiple managers and strategies.
The fixed income strategy is designed to reduce liability-related interest rate risk by investing in bonds that match the duration and credit quality of the plan liabilities.
Derivatives based strategies may be used to improve the effectiveness of the hedges.
FASB ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value.
The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurement) and the lowest priority to unobservable inputs (Level 3 measurement).
This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs.
If a financial instrument uses inputs that fall in different levels of the hierarchy, the instrument will be categorized based upon the lowest level of input that is significant to the fair value calculation.
Valuations for fund investments such as common/collective trusts and registered investment companies, which do not have readily determinable fair values, are typically estimated using a net asset value provided by a third party as a practical expedient.
The levels of inputs used to measure fair value are as follows: Level 1 - unadjusted quoted prices for identical assets or liabilities in active markets accessible by the Company Level 2 - inputs that are observable in the marketplace other than those inputs classified as Level 1 Level 3 - inputs that are unobservable in the marketplace and significant to the valuation


| 2010 2009 | Land | Building and improvements | Leasehold improvements | Construction-in-progress | Laboratory and other equipment | Furniture, computer and office equipment, and other | 478,757 | Less, accumulated depreciation and amortization | $347,450 |


| Year Ended December 31, | 2013 | (In $ millions) | Employee termination benefits | Kelsterbach plant relocation (Note 27) | Plumbing actions | Asset impairments | Plant/office closures | Commercial disputes | Other | Total |


| Beginning Balanceat January 1, Actual Return on Plan Assets Related to Assets Still Held at the Reporting Date Actual Return on Plan Assets Related to Assets Sold During thePeriod Purchases, Sales,and Settlements, net Net Transfers into (out of) of Level 3 Ending Balance at December 31, | 2011: | Real estate | Private equity | 2010: | Other debt securities | Real estate | Private equity |


REPUBLIC SERVICES, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) Changes in the deferred tax valuation allowance for the years ended December 31, 2012, 2011 and 2010 are as follows:
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized after the initial recognition of the deferred tax asset.
We also provide valuation allowances, as needed, to offset portions of deferred tax assets due to uncertainty surrounding the future realization of such deferred tax assets.
We adjust the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized.
We have state net operating loss carryforwards with an estimated tax effect of $130.2 million available at December 31, 2012.
These state net operating loss carryforwards expire at various times between 2013 and 2032.
We believe that it is more likely than not that the benefit from certain state net operating loss carryforwards will not be realized.
In recognition of this risk, at December 31, 2012, we have provided a valuation allowance of $113.5 million for certain state net operating loss carryforwards.
At December 31, 2012, we also have provided a valuation allowance of $11.3 million for certain other deferred tax assets.
Deferred income taxes have not been provided on the undistributed earnings of our Puerto Rican subsidiaries of approximately $40 million and $39 million as of December 31, 2012 and 2011, respectively, as such earnings are considered to be permanently invested in those subsidiaries.
If such earnings were to be remitted to us as dividends, we would incur approximately $14 million of federal income taxes.
We made income tax payments (net of refunds received) of approximately $185 million, $173 million and $418 million for 2012, 2011 and 2010, respectively.
Income taxes paid in 2012 and 2011 reflect the favorable tax depreciation provisions of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Tax Relief Act) that was signed into law in December 2010.
The Tax Relief Act included 100% bonus depreciation for property placed in service after September 8, 2010 and through December 31, 2011 (and for certain long-term construction projects to be placed in service in 2012) and 50% bonus depreciation for property placed in service in 2012 (and for certain long-term construction projects to be placed in service in 2013).
Income taxes paid in 2010 includes $111 million related to the settlement of certain tax liabilities regarding BFI risk management companies.
We and our subsidiaries are subject to income tax in the U. S.  and Puerto Rico, as well as income tax in multiple state jurisdictions.
Our compliance with income tax rules and regulations is periodically audited by tax authorities.
These authorities may challenge the positions taken in our tax filings.
Thus, to provide for certain potential tax exposures, we maintain liabilities for uncertain tax positions for our estimate of the final outcome of the examinations.


In conjunction with the expansion, we signed a 10-year, 20,000 BPD crude oil supply agreement with Newfield Exploration Company.
This agreement, which commences upon completion of the expansion, will supply black and yellow wax crude oil produced in the nearby Uinta Basin to the Woods Cross Refinery.
Upon completion of this expansion, the Woods Cross Refinery's capacity to process waxy crude is expected to double to approximately 24,000 BPD.
Markets and Competition The Cheyenne Refinery primarily markets its products in eastern Colorado, including metropolitan Denver, eastern Wyoming and western Nebraska.
Because of the location of the Cheyenne Refinery, we are able to sell a significant portion of its diesel from the truck rack at the refinery, thus eliminating transportation costs.
Pipeline shipments from the Cheyenne Refinery are on the Magellan pipeline serving Denver and Colorado Springs, Colorado.
Denver Market The most competitive market for the Cheyenne Refinery is the Denver metropolitan area.
Three other refineries supply the Denver market, Wyoming refineries near Rawlins and in Casper owned by Sinclair and a refinery in Denver owned by Suncor.
Five product pipelines also supply Denver, including three from outside the region.
Utah Market The Woods Cross Refinery's primary market is Utah, which is currently supplied by a number of local refiners and the Pioneer Pipeline.
In addition to our Woods Cross Refinery, local area refiners include Chevron, Tesoro, Big West and Silver Eagle.
Other refiners that ship into the Woods Cross market via the Pioneer Pipeline include Sinclair, ExxonMobil, CHS and Phillips 66.
We estimate the four local refineries that compete with our Woods Cross Refinery have a combined capacity to process approximately 150,000 BPD of crude oil.
The five Utah refineries collectively supply an estimated 70% of the gasoline and distillate products consumed in the states of Utah and Idaho, with the remainder imported from refineries in Wyoming and Montana via the Pioneer Pipeline owned jointly by Sinclair and Phillips 66.
Approximately 40% - 45% of the gasoline and diesel fuel produced by our Woods Cross Refinery is sold through a network of Phillips 66 branded marketers under a long-term supply agreement.
Idaho, Wyoming, Eastern Washington and Nevada Markets We supply a small percentage of the refined products consumed in the combined Idaho, Wyoming, eastern Washington and Nevada markets.
Our Woods Cross Refinery ships refined products over a common carrier pipeline system owned by Tesoro Logistics Northwest Pipelines LLC (Tesoro Logistics) to numerous terminals, including HEP's terminal at Spokane, Washington and to terminals at Pocatello and Boise, Idaho and Pasco, Washington that are owned by Tesoro Logistics.
We sell to branded and unbranded customers in these markets.
In 2012, we began shipping refined products to Cedar City, Utah and Las Vegas, Nevada via the UNEV Pipeline.
The majority of the Las Vegas, Nevada market for refined products is supplied by various West Coast refiners and suppliers via Kinder Morgan's CalNev common carrier pipeline system.
Principal Products Set forth below is information regarding the principal products produced at our Cheyenne and Woods Cross Refineries:


Note 2  Earnings Per Share The weighted average number of shares outstanding used to compute earnings per common share were as follows (in millions):
We compute basic and diluted earnings per common share by dividing net earnings by the respective weighted average number of common shares outstanding for the periods presented.
Our calculation of diluted earnings per common share includes the dilutive effects for the assumed exercise of stock options and vesting of restricted stock units based on the treasury stock method.
The computation of diluted earnings per common share excluded 8.0 million, 13.4 million, and 14.7 million stock options for the years ended December 31, 2012, 2011, and 2010 because their inclusion would have been anti-dilutive, primarily due to their exercise prices exceeding the average market price of our common stock during each respective reporting period.


| (In millions) 2017 2016 | $400 million unsecured senior note due June 2020 | $500 million unsecured senior note due June 2025 | $1,250 million revolving credit agreement due June 2021 | Total debt | Less: current portion | Total long-term debt |


| 2018 2017 | Pension plans | Postretirement plans |


Pretax operating income represents the segments income before taxes and noncontrolling interests.
The pretax operating income excludes such items as corporate expenses and interest income and interest expense not allocated to the segments as well as the charges described in detail in Note 3 to the Consolidated Financial Statements, interest on postretirement medical benefits and stock-based compensation costs.
Fourth-quarter revenue was $5.74 billion versus $5.43 billion in the third quarter of 2009.
Income from continuing operations attributable to Schlumberger was $817 million  an increase of 4% sequentially.
Oilfield Services fourth-quarter revenue of $5.17 billion was up 4% compared to the third quarter of 2009.
Sequential pretax segment operating income of $1.01 billion was down 3%.
WesternGeco fourth-quarter revenue of $549 million was up 19% sequentially.
Fourth-quarter pretax segment operating income of $115 million was up 89% compared to the third quarter of 2009.
an initial conversion price of $40.00 per share).
The conversion rate may be adjusted for certain events, but it will not be adjusted for accrued interest.
On or after June 6, 2010, Schlumberger may redeem for cash all or part of the debentures, upon notice to the holders, at the redemption prices of 100% of the principal amount of the debentures, plus accrued and unpaid interest to the date of redemption.
On June 1, 2010, June 1, 2013 and June 1, 2018, holders may require Schlumberger to repurchase their Series B debentures.
The repurchase price will be 100% of the principal amount of the debentures plus accrued and unpaid interest to the repurchase date.
The repurchase price for repurchases on June 1, 2010 will be paid in cash.
On the other repurchase dates, Schlumberger may choose to pay the repurchase price in cash or common stock or any combination of cash and common stock.
In addition, upon the occurrence of a Fundamental Change (defined as a change in control or a termination of trading of Schlumbergers common stock), holders may require Schlumberger to repurchase all or a portion of their debentures for an amount equal to 100% of the principal amount of the debentures plus accrued and unpaid interest to the repurchase date.
The repurchase price may be paid in cash, Schlumberger common stock (or if Schlumberger is not the surviving entity in a merger, the securities of the surviving entity) or a combination of cash and the applicable securities, at Schlumbergers option.
The applicable securities will be valued at 99% of their market price.
Schlumbergers option to pay the repurchase price with securities is subject to certain conditions.
The debentures will mature on June 1, 2023 unless earlier redeemed or repurchased.
During 2008 and 2007, $95 million and $34 million of the Series B debentures were converted into 2.4 million and 0.9 million shares of Schlumberger common stock, respectively.
There were $321 million of the Series B debentures outstanding at both December 31, 2009 and December 31, 2008.
The fair value of the Series B debentures at December 31, 2009 and December 31, 2008 was $527 million and $398 million, respectively, and was based on quoted market prices.
Other Long-term Debt Other Long-term Debt consists of the following:


| (Millions of Dollars) Con Edison CECONY | 2013 | 2014 | 2015 | 2016 | 2017 |


| 2016 2015 2014 | Risk free interest rate | Volatility | Dividend yield | Weighted average expected life (years) |


| 2013 2012 2011 | Retail Marketing | Number of retail stations* | Convenience store revenue (in millions) | Average gasoline volume per station (thousands of gallons per month) |


Other Trading Account Assets Other trading account assets primarily include trading positions held by our derivatives trading operations and our global commodities group.
Our derivatives trading operations maintain trading positions in various foreign exchange instruments and commodities, primarily to facilitate transactions for our clients.
We seek to use short security positions and forwards, futures, options and other derivatives to limit exposure to interest rate and other market risks associated with these positions.
We also trade derivative financial instruments that allow our clients to manage exposure to interest rate, currency and other market risks.
Our derivative transactions involve both exchange-listed and over-the-counter contracts.
Our global commodities group provides advice, sales and trading on a global basis covering a wide variety of commodity, financial and foreign exchange futures, swap and forward contracts, including agricultural commodities, base and precious metals, major currencies, interest rate and stock indices.
We act both as a broker, buying and selling exchange-listed contracts for our customers, and as a dealer, by entering into futures and security transactions as a principal.


| Location Function Size (square feet) Property Interest | Boston, MA | Southborough, MA | Woburn, MA | Atlanta, GA | Cary, North Carolina | Mexico City, Mexico | Sao Paulo, Brazil |


| Years ended December 31, | 2008 | Balance at beginning of period | (Reversed) charged to costs and expenses | (Reversed) charged to gross tax assets and other accounts | Balance at end of period |


| Year Ended December 31, | 2017 | U.S. federal statutory income tax rate | State and local income taxes, net of federal tax benefit | Effect of foreign operations | Domestic production activity deductions | Change in uncertain tax positions | Goodwill impairment | Renewable energy investments tax credits | Preferred stock modification | Impact of Tax Reform Act | Other, net | Effective income tax rate | International Networks | 2017 | Revenues: | Distribution | Advertising | Other | Total revenues | Costs of revenue, excluding depreciation and amortization | Selling, general and administrative expenses | Adjusted OIBDA |


| Year Ended December 31, 2007 (In $ millions) | Balance as of January 1, 2007 | Increases in tax positions for the current year | Increases in tax positions for prior years | Decreases in tax positions of prior years | Settlements | Balance as of December 31, 2007 |


| December 31, 2017 December 31, 2016 | (in millions) | Derivatives designated as hedging instruments: | Interest rate contracts | Derivatives not designated as hedging instruments: | Interest rate contracts | Foreign exchange contracts | Other contracts | Total derivatives not designated as hedging instruments | Gross derivative fair values | Less: Gross amounts offset in the Consolidated Balance Sheets-3 | Less: Cash collateral applied-3 | Total net derivative fair values presented in the Consolidated Balance Sheets |


Tables of Contents Non-Operating Income and Expenses Interest Expense Interest expense of $31 million in fiscal 2017 consisted primarily of interest on our senior notes, unsecured term loan, and unsecured revolving credit facility.
Interest expense of $35 million in fiscal 2016 consisted primarily of interest on our senior notes, unsecured term loan, and unsecured revolving credit facilities.
Interest expense of $27 million in fiscal 2015 consisted primarily of interest on our senior notes.
See Note 7 and Note 8 to the financial statements in Item 8 of this Annual Report for more information.
Interest and Other Income (Expense), Net


| Years Ended December 31, | (Dollars in millions) | 2010 | Attritional | Catastrophes | A&E | Total segment | 2009 | Attritional | Catastrophes | A&E | Total segment | 2008 | Attritional | Catastrophes | A&E | Total segment | Variance 2010/2009 | Attritional | Catastrophes | A&E | Total segment | Variance 2009/2008 | Attritional | Catastrophes | A&E | Total segment | (Some amounts may not reconcile due to rounding.) |


| December 31, 2010 December 31, 2009 | Financial Services Businesses | (in millions) | Allowance, beginning of year | Addition to/(release of) allowance for losses | Charge-offs, net of recoveries | Change in foreign exchange | Allowance, end of period |


| Revenue Per Advisor Total Production Revenues | FISCAL YEAR 2008: | Pre-2006 class | 2006 recruits | 2007 recruits | 2008 recruits | FISCAL YEAR 2007: | Pre-2005 class | 2005 recruits | 2006 recruits | 2007 recruits | FISCAL YEAR 2006: | Pre-2004 class | 2004 recruits | 2005 recruits | 2006 recruits |


Conversely, if the proceeds from the sale are less than the average price we paid to acquire the shares, we record a decrease in additional paidin capital to the extent of increases previously recorded for similar transactions and a decrease in retained earnings for any remaining amount.
Description of 2005 Equity Incentive Plan Our stockholders approved our 2005 Equity Incentive Plan on December 9, 2004.
Under the 2005 Plan, we are permitted to grant incentive and non-qualified stock options, restricted stock awards, restricted stock units (RSUs), stock appreciation rights and stock bonus awards to our employees, non-employee directors and consultants.
The 2005 Plan provides for the automatic grant of stock options to non-employee directors according to a formula in the plan document.
For other awards, the Compensation and Organizational Development Committee of our Board of Directors or its delegates determine who will receive grants, when those grants will be exercisable, their exercise price and other terms.
Our stockholders have approved amendments to the 2005 Plan to permit the issuance of up to 46,000,000 shares under the 2005 Plan.
At July 31, 2008, there were 7,975,824 shares available for grant under this plan.
Up to 50% of equity awards granted each year under the 2005 Plan may have an exercise or purchase price per share that is less than full fair market value on the date of grant.
All stock options granted to date under the 2005 Plan have exercise prices equal to the fair market value of our stock on the date of grant.
All RSUs are considered to be granted at less than the fair market value of our stock on the date of grant because they have no exercise price.
Stock options granted under the 2005 Plan typically vest over three years based on continued service and have a seven year term.
RSUs granted under the 2005 Plan typically vest over three years.
Description of Employee Stock Purchase Plan On November 26, 1996 our stockholders adopted our Employee Stock Purchase Plan under Section 423 of the Internal Revenue Code.
The ESPP permits our eligible employees to make payroll deductions to purchase our stock on regularly scheduled purchase dates at a discount.
Our stockholders have approved amendments to the ESPP to permit the issuance of up to 13,800,000 shares under the ESPP, which expires on July 27, 2015.
The length of the offering periods under the ESPP is three months and shares are purchased at 85% of the lower of the closing price for Intuit common stock on the first day or the last day of the offering period in which the employee is participating.
Under the ESPP, employees purchased 1,164,977 shares of Intuit common stock during the twelve months ended July 31, 2008; 1,099,757 shares during the twelve months ended July 31, 2007; and 1,050,198 shares during the twelve months ended July 31, 2006.
At July 31, 2008, there were 2,109,360 shares available for issuance under this plan.


A reconciliation of the statutory U. S.  federal tax rate and effective tax rates is as follows:


| Years Ended December 31, | 2015 | (in millions) | Total net revenues | Less: Revenue attributable to CIEs | Less: Net realized investment gains | Less: Market impact on indexed universal life benefits | Less: Market impact of hedges on investments | Operating total net revenues |


| December 31, | (dollars in millions) | Commercial | Commercial real estate | Leases | Qualitative | Total commercial | Residential mortgages | Home equity loans | Home equity lines of credit | Home equity loans serviced by others | Home equity lines of credit serviced by others | Automobile | Student | Credit cards | Other retail | Qualitative | Total retail | Unallocated | Total loans and leases |


14.
RESEARCH AND DEVELOPMENT EXPENDITURES Research expenditures that relate to the development of new products and processes, including significant improvements and refinements to existing products, are expensed as incurred.
Such costs were $201 million in 2017, $189 million in 2016 and $191 million in 2015.
The Company did not participate in any material customer sponsored research during 2017, 2016 or 2015.


| 2006 2005 2004 | Marketing and sales | Research and development | General and administrative |


NEW ACCOUNTING PRONOUNCEMENTS In June 2001, the FASB issued SFAS No.142, ‘‘Goodwill and Other Intangible Assets.
’’ The provisions of this statement are required to be applied starting with fiscal years beginning after December 15, 2001.
This statement is required to be applied at the beginning of an entity’s fiscal year and to be applied to all goodwill and other intangible assets recognized in its financial statements at that date.
SFAS No.142 addresses how intangible assets (but not those acquired in a business combination) should be accounted for in financial statements upon their acquisition.
This statement also addresses how goodwill and other intangible assets should be accounted for after they have been initially recognized in the financial statements.
The statement requires that goodwill and certain other intangibles with an indefinite life, as defined in the standard, no longer be amortized.
However, goodwill and intangibles would have to be assessed each year to determine whether an impairment loss has occurred.
Any impairments recognized upon adoption would be recorded as a change in accounting principle.
Future impairments would be recorded in income from continuing operations.
The statement provides specific guidance for testing goodwill for impairment.
The Company had $3.2 billion of goodwill at December 31, 2001.
Goodwill amortization was $62 million for the year ended December 31, 2001.
The Company is currently assessing the impact of SFAS No.142 on its financial position and results of operations.
In June 2001, the FASB issued SFAS No.143, ‘‘Accounting for Asset Retirement Obligations,’’ which addresses financial accounting and reporting for obligations associated with the retirement of tangible long-lived assets and the associated asset retirement costs.
This statement is effective for financial statements issued for fiscal years beginning after June 15, 2002.
The statement requires recognition of legal obligations associated with the retirement of long-lived assets that result from the acquisition, construction, development and (or) the normal operation of a long-lived asset, except for certain obligations of lessees.
The Company is currently assessing the impact of SFAS No.143 on its financial position and results of operations.


| December 31, 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 | 12/9/2013 | American Airlines Group Inc. | Amex Airline Index | S&P 500 | Year Ended December 31, | 2015 | (In millions, except share and per share data) | Consolidated Statements of Operations data: | Total operating revenues | Total operating expenses | Operating income (loss) | Reorganization items, net -1 | Net income (loss) | Earnings (loss) per common share: | Basic | Diluted | Shares used for computation (in thousands): | Basic | Diluted | Cash dividends declared per common share | Consolidated Balance Sheet data (at end of period): | Total assets | Long-term debt and capital leases, net of current maturities | Pension and postretirement benefits -2 | Mandatorily convertible preferred stock and other bankruptcy settlement obligations | Liabilities subject to compromise | Stockholders’ equity (deficit) | Consolidated Statements of Operations data excluding special items -3 (Unaudited): | Operating income (loss) excluding special items | Net income (loss) excluding special items |


| Years ended December 31 2010 2009 2008 | RSUs | Performance plans | Stock options | Employee stock purchase plans | Total stock-based compensation expense | Tax benefit | Stock-based compensation expense, net of tax |


| For the year ended December 31, 2010 | Change attributed to | As adjusted | (in millions, except per share data) | Revenue | Fees and other revenues | Net investment income | Net realized capital gains, excluding impairment losses on available-for-sale securities | Expenses | Benefits, claims and settlement expenses | Operating expenses | Income before income taxes | Income taxes | Net income | Net income available to common stockholders | Earnings per common share | Basic earnings per common share | Diluted earnings per common share |


| December 31 2009 | Gross Carrying Amount | Contract and program intangible assets | Other intangible assets | Total intangible assets | December 31 | Gross Carrying Amount | Contract and program intangible assets | Other intangible assets | Total intangible assets |


| In millions 2012 2011 2010 | Sales | Operating Profit |


In assessing the need for a valuation allowance, we estimate future taxable earnings, with consideration for the feasibility of ongoing planning strategies and the realizability of tax benefit carry forwards and past operating results, to determine which deferred tax assets are more likely than not to be realized in the future.
Changes to tax laws, statutory tax rates and future taxable earnings can have an impact on valuation allowances related to deferred tax assets.
The decrease in net deferred tax assets is attributable to the increase in our valuation allowance with respect to our deferred tax asset for the Settlement agreement, partially offset by additional accruals under the Settlement agreement and amortization of intangibles.
Based upon anticipated future results, we have concluded that it is more likely than not that we will realize the $603 million balance of deferred tax assets at December 31, 2013, net of the valuation allowance of $240 million.
In addition to an $88 million valuation allowance with respect to our deferred tax asset for the Settlement agreement, the valuation allowance primarily relates to the uncertainty of utilizing the following deferred tax assets: $397 million of U. S.  federal and foreign net operating loss carryforwards, or $116 million on a taxeffected basis, $18 million of foreign and federal tax credits and investment allowances, $828 million of state net operating loss carry forwards, or $39 million on a tax-effected basis, and $23 million of state tax credits, or $15 million net of federal tax benefits.
For the year ended December 31, 2013, the valuation allowance increased by $40 million, due to an increase in our valuation allowance with respect to the deferred tax asset for the Settlement agreement, partially offset by a reduced valuation allowance related to the use of foreign tax credits and state net operating losses.
For the year ended December 31, 2012, the valuation allowance decreased by $19 million, due to the use of foreign tax credits in connection with the sale of Diversey Japan, offset by an increase with respect to foreign net operating losses and our allowance with respect to the Settlement agreement.
For the year ended December 31, 2011, the valuation allowance increased by $176 million primarily due to $162 million related to the acquisition of Diversey, $3 million that was charged to the income tax provision and $11 million resulting from a net increase to deferred tax assets with a 100% valuation allowance.
As of December 31, 2013, we have U. S.  federal and foreign net operating loss carryforwards totaling $397 million that expire during the following calendar years (in millions): 2014  $4; 2015  $7; 2016  $7; 2017  $12; 2018  $27; 2019  $6; 2020 and beyond  $169; and no expiration  $165.
The state net operating loss carryforwards totaling $828 million expire in various amounts over one to 20 years.
As of December 31, 2013, we have foreign and federal foreign tax credit carryforwards and investment allowances totaling $18 million that expire during the following calendar years (in millions): 2014  $1; 2015  $1; 2016  $0; 2017  $2; 2018  $0; 2019  $2; 2020 and beyond  $2; and no expiration  $10.
The state tax credit carryforwards, totaling $23 million, expire in various amounts over one to 20 years.
Net deferred income taxes (credited) charged to stockholders equity were $(7) million in 2013, $(25) million in 2012 and $6 million in 2011.
The U. S.  federal statutory corporate tax rate reconciles to our effective income tax rate as follows:


| 2012 2011 2010 | FSG | PSG | ISG | Corporate & Other | Total Consolidated Revenues |


| Year Ended December 31 | ($ in millions) | Sales and service revenues | Segment operating income (loss) | As a percentage of segment sales |


| Millions of kWhs Delivered Revenues in Millions | Twelve Months Ended | Description | Residential/Religious(a) | Commercial/Industrial | Retail access customers | NYPA, Municipal Agency and other sales | Other operating revenues | Total |


(1) Long-term borrowings exclude the borrowings of consolidated CLOs.
The Company has no obligation to settle the liabilities of these CLOs.
(2) The amount of contingent payments reflected for any year represents the expected payment amounts, using foreign currency exchange rates as of December 31, 2014, under the terms of the business acquisition’s agreement.
The remaining maximum potential payment amount related to Credit Suisse ETF Transaction is approximately $24 million for any year during the next six years.
There is no maximum amount for payments related to the MGPA Transaction.
The fair value of the contingent obligations is not significant to the consolidated statement of financial condition and is recorded within other liabilities.
(3) At December 31, 2014, the Company had $334 million of net unrecognized tax benefits.
Due to the uncertainty of timing and amounts that will ultimately be paid, this amount has been excluded from the table above.


NOTE 18.
ENTERGY NEW ORLEANS BANKRUPTCY PROCEEDING As a result of the effects of Hurricane Katrina and the effect of extensive flooding that resulted from levee breaks in and around the New Orleans area, on September 23, 2005, Entergy New Orleans filed a voluntary petition in bankruptcy court seeking reorganization relief under Chapter 11 of the U. S.  Bankruptcy Code.
On May 7, 2007, the bankruptcy judge entered an order confirming Entergy New Orleans' plan of reorganization.
With the receipt of CDBG funds, and the agreement on insurance recovery with one of its excess insurers, Entergy New Orleans waived the conditions precedent in its plan of reorganization and the plan became effective on May 8, 2007.
Following are significant terms in Entergy New Orleans' plan of reorganization:
As a result of the accounting for uncertain tax positions, the amount of the deferred tax assets reflected in the financial statements is less than the amount of the tax effect of the federal and state net operating loss carryovers, tax credit carryovers, and other tax attributes reflected on income tax returns.
Because it is more likely than not that the benefit from certain state net operating and capital loss carryovers will not be utilized, a valuation allowance of $66 million and $13 million has been provided on the deferred tax assets relating to these state net operating and capital loss carryovers, respectively.
Significant components of accumulated deferred income taxes and taxes accrued for the Registrant Subsidiaries as of December 31, 2011 and 2010 are as follows:


| (In millions) 2008 2007 2006 | Net sales including intersegment sales | Less intersegment sales | Net sales | Operating income-1 | -1Includes restructuring and asset impairment charges for all years presented |


| Year Ended December 31 | 2014 | (In thousands) | Revenues | Expenses | Income taxes (benefit) | Net income (loss) |


| 2004 2005 | Deployment of cable modems, digital converters, and new service offerings | Upgrading of cable systems | Recurring capital projects | Total cable segment capital expenditures |


Retail Operations In 2014, NRG's retail businesses within NRG Home and NRG Business sold electricity to residential, commercial and industrial consumers at either fixed, indexed or variable prices.
Residential and smaller commercial consumers typically contract for terms ranging from one month to two years while industrial contracts are often between one year and five years in length.
In 2014, NRG's retail businesses sold approximately 63 TWhs of electricity.
In any given year, the quantity of TWh sold can be affected by weather, economic conditions and competition.
The wholesale supply is typically purchased as the load is contracted from a combination of NRG's wholesale portfolio and other third parties.
The ability to choose supply from the market or the Company's portfolio allows for an optimal combination to support and stabilize retail margins.


| 2018 2017 2016 | Balance at January 1 | Additions for current year tax positions | Additions for tax positions of prior years | Reductions for tax positions of prior years | Settlements | Lapse of statute of limitations | Balance at December 31 |


(19) Segment Information Upon completion of the Certegy Merger, the Company implemented a new organizational structure, which resulted in a new operating segment structure beginning with the reporting of first quarter 2006 results.
Effective as of February 1, 2006, the Companys operating segments are TPS and LPS.
This structure reflects how the businesses are operated and managed.
The primary components of the TPS segment, which includes Certegys Card and Check Services, the financial institution processing component of the former Financial Institution Software and Services segment of FIS and the operations acquired from eFunds, are Enterprise Solutions, Integrated Financial Solutions and International businesses.
The primary components of the LPS segment are Mortgage Information Services businesses, which includes the mortgage lender processing component of the former Financial Institution Software and Services segment of FIS, and the former Lender Services, Default Management, and Information Services segments of FIS.


| December 31, 2011 | Amortized cost | (in millions) | Finance — Banking | Finance — Brokerage | Finance — Finance Companies | Finance — Financial Other | Finance — Insurance | Finance — REITS | Industrial — Basic Industry | Industrial — Capital Goods | Industrial — Communications | Industrial — Consumer Cyclical | Industrial — Consumer Non-Cyclical | Industrial — Energy | Industrial — Other | Industrial — Technology | Industrial — Transportation | Utility — Electric | Utility — Natural Gas | Utility — Other | FDIC guaranteed | Government guaranteed | Total corporate securities | Residential mortgage-backed pass-through securities | Commercial mortgage-backed securities | Residential collateralized mortgage obligations | Asset-backed securities — Home equity -1 | Asset-backed securities — All other | Collateralized debt obligations — Credit | Collateralized debt obligations — CMBS | Collateralized debt obligations — Loans | Collateralized debt obligations — ABS | Total mortgage-backed and other asset-backed securities | U.S. government and agencies | States and political subdivisions | Non-U.S. governments | Total fixed maturities, available-for-sale |