Beginning during fiscal 2008, US financial markets and many of the largest US financial institutions have been shaken by negative developments in the home mortgage industry and the mortgage markets, and particularly the markets for subprime mortgage-backed securities.
Since that time, these and other such developments have resulted in a broad, global economic downturn.
While we, as is the case with most companies, have experienced the effects of this downturn, we have not experienced any significant issues with our current collection efforts, and we believe that any future impact to our liquidity will be minimized by cash generated by recurring sources of revenue and due to our access to available lines of credit.
PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 4.
INVESTMENTS (continued) Variable Interest Entities In the normal course of its activities, the Company enters into relationships with various special purpose entities and other entities that are deemed to be variable interest entities (“VIEs”), in accordance with FIN No.46(R), “Consolidation of Variable Interest Entities.
” A VIE is an entity that either (1) has equity investors that lack certain essential characteristics of a controlling financial interest (including the ability to control the entity, the obligation to absorb the entity’s expected losses and the right to receive the entity’s expected residual returns) or (2) lacks sufficient equity to finance its own activities without financial support provided by other entities, which in turn would be expected to absorb at least some of the expected losses of the VIE.
If the Company determines that it stands to absorb a majority of the VIE’s expected losses or to receive a majority of the VIE’s expected residual returns, the Company would be deemed to be the VIE’s “primary beneficiary” and would be required to consolidate the VIE.
Consolidated Variable Interest Entities The Company is the primary beneficiary of certain VIEs in which the Company has invested, as part of its investment activities, but over which the Company does not exercise control.
The table below reflects the carrying amount and balance sheet caption in which the assets of these consolidated VIEs are reported.
The liabilities of consolidated VIEs are included in “Other liabilities” and are also reflected in the table below.
These liabilities primarily comprise obligations under debt instruments issued by the VIEs, that are non-recourse to the Company.
The creditors of each consolidated VIE have recourse only to the assets of that VIE.


(1) The fair value of stock options vested in 2009 excludes the fair value of options that vested as a result of the Merger attributable to precombination service.
A summary of nonvested RSU and PSU activity (shares in thousands) is as follows:


| Year Ended December | $ in millions | Compensation and benefits | Brokerage, clearing, exchange anddistribution fees | Market development | Communications and technology | Depreciation and amortization | Occupancy | Professional fees | Insurance reserves1 | Other expenses | Total non-compensation expenses | Total operating expenses | Total staff at period-end | Consolidated Statement of Operations Data | (In millions, except per share amounts) | Total net revenue | Total costs and expenses | Operating income from continuing operations | Total share-based compensation expense included in total costs and expenses | Net income from continuing operations | Net income (loss) from discontinued operations | Net income | Net income per common share: | Basic net income per share from continuing operations | Basic net income (loss) per share from discontinued operations | Basic net income per share | Diluted net income per share from continuing operations | Diluted net income(loss) per share from discontinued operations | Diluted net income per share | Dividends declared per common share |


As noted previously, we also sponsor nonqualified defined benefit plans to provide benefits in excess of qualified plan limits.
The aggregate liabilities for these plans at December 31, 2006 were $641 million.
The expense associated with these plans totaled $59 million in 2006, $58 million in 2005 and $61 million in 2004.
We also sponsor a small number of foreign benefit plans.
The liabilities and expenses associated with these plans are not material to our results of operations, financial position or cash flows.
Note 13 – Leases Our total rental expense under operating leases was $310 million, $324 million and $318 million for 2006, 2005 and 2004, respectively.
Future minimum lease commitments at December 31, 2006 for all operating leases that have a remaining term of more than one year were $1.1 billion ($288 million in 2007, $254 million in 2008, $211 million in 2009, $153 million in 2010, $118 million in 2011 and $121 million in later years).
Certain major plant facilities and equipment are furnished by the U. S.  Government under short-term or cancelable arrangements.
Note 14 – Legal Proceedings, Commitments and Contingencies We are a party to or have property subject to litigation and other proceedings, including matters arising under provisions relating to the protection of the environment.
We believe the probability is remote that the outcome of these matters will have a material adverse effect on the Corporation as a whole.
We cannot predict the outcome of legal proceedings with certainty.
These matters include the following items, all of which have been previously reported: On March 27, 2006, we received a subpoena issued by a grand jury in the United States District Court for the Northern District of Ohio.
The subpoena requests documents related to our application for patents issued in the United States and the United Kingdom relating to a missile detection and warning technology.
We are cooperating with the government’s investigation.
On February 6, 2004, we submitted a certified contract claim to the United States requesting contractual indemnity for remediation and litigation costs (past and future) related to our former facility in Redlands, California.
We submitted the claim consistent with a claim sponsorship agreement with The Boeing Company (Boeing), executed in 2001, in Boeing’s role as the prime contractor on the Short Range Attack Missile (SRAM) program.
The contract for the SRAM program, which formed a significant portion of our work at the Redlands facility, had special contractual indemnities from the U. S.  Air Force, as authorized by Public Law 85-804.
On August 31, 2004, the United States denied the claim.
Our appeal of that decision is pending with the Armed Services Board of Contract Appeals.
On August 28, 2003, the Department of Justice (the DoJ) filed complaints in partial intervention in two lawsuits filed under the qui tam provisions of the Civil False Claims Act in the United States District Court for the Western District of Kentucky, United States ex rel.
Natural Resources Defense Council, et al v.  Lockheed Martin Corporation, et al, and United States ex rel.
John D.  Tillson v.  Lockheed Martin Energy Systems, Inc. , et al.
The DoJ alleges that we committed violations of the Resource Conservation and Recovery Act at the Paducah Gaseous Diffusion Plant by not properly handling, storing,


| Notional Amount | (in Gallons | Inception Date | September 22, 2008 | March 17, 2008 | March 17, 2008 | November 5, 2007 | January 26, 2007 | January 26, 2007 | January 26, 2007 | August 29, 2006 |


| As of February 29, 2008 | (In thousands) | Fiscal 2009 | Fiscal 2010 | Fiscal 2011 | Fiscal 2012 | Fiscal 2013 | Fiscal 2014 and thereafter | Total minimum lease payments | Less amounts representing interest | Present value of net minimum capital lease payments |


| December 31, 2010 | Recorded Investment | Debt Service Coverage Ratios | > 1.20x | (In millions) | Loan-to-valueratios: | Less than 65% | 65% to 75% | 76% to 80% | Greater than 80% | Total |


| Electric Derivatives Gas Derivatives | Number of Energy Contracts(a) | Con Edison | CECONY |


| Years ended | September 24, 2011 | Options granted | Weighted-average exercise price | Weighted-average grant date fair value | Assumptions: | Risk-free interest rates | Expected life (in years) | Expected volatility | Dividend yield |


| 2015 2014 2013 | Allowance for other funds used during construction | Allowance for borrowed funds used during construction | Pension | Years ended December 31, | Service cost | Interest cost | Expected return on plan assets | Amortization of prior service costs/(credits) | Recognized net actuarial loss | Settlement/curtailment/other losses | Net periodic benefit cost | Net periodic benefit cost included in Earnings from operations |


| Multifamily Communities Units | Consolidated | Unconsolidated | Total | Commercial | Consolidated |


| Millions of kWhs Delivered Revenues in Millions | Twelve Months Ended | Description | Residential/Religious | Commercial/Industrial | Retail access customers | NYPA, Municipal Agency and other sales | Other operating revenues | Total | Con Edison | (Millions of Dollars) | Electric | Generation | Transmission | Distribution | Gas* | Steam | General | Held for future use | Construction work in progress | Net Utility Plant |


CRITICAL ACCOUNTING ESTIMATES The discussion and analysis of our financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with GAAP.
The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities.
The SEC has defined critical accounting policies as those that are both most important to the portrayal of our financial condition and results and which require our most difficult, complex or subjective judgments or estimates.
Based on this definition, we believe our critical accounting policies include the policies of revenue recognition, allowance for doubtful accounts, inventory valuation, business combinations, valuation of long-lived assets, share-based compensation, income taxes, goodwill and intangibles, and loss contingencies.
On an ongoing basis, we evaluate the judgments and estimates underlying all of our accounting policies.
These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures, and reported amounts of revenues and expenses.
These estimates and assumptions are based on our best judgments.
We evaluate our estimates and assumptions using historical experience and other factors, including the current economic environment, which we believe to be reasonable under the circumstances.
We adjust such estimates and assumptions when facts and circumstances dictate.
As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates.


| Ameren(a) UE CIPS Genco CILCORP CILCO IP | 2006: | Accumulated deferred income taxes, net liability (asset): | Plant related | Deferred intercompany tax gain/basisstep-up | Regulatory assets (liabilities), net | Deferred benefit costs | Purchase accounting | Leveraged leases | Asset retirement obligation | Other | Total net accumulated deferred income tax liabilities(c) |


EDUCATION Education generated revenues of $105 million during 2012, which represented 2% of our total consolidated revenues.
Education is comprised of curriculum-based product and service offerings.
This segment generates revenues primarily from subscriptions charged to K-12 schools for access to an online suite of curriculum-based VOD tools, professional development services, digital textbooks and, to a lesser extent, student assessments and publication of hardcopy curriculum-based content.
Our education business also participates in global brand and content licensing and engages in partnerships with leading non-profits, corporations, foundations and trade associations.


| 2016 2015 | December 31, (in millions) | U.S. GAAP nettable derivative payables | Interest rate contracts: | OTC | OTC–cleared | Exchange-traded(a) | Total interest rate contracts | Credit contracts: | OTC | OTC–cleared | Total credit contracts | Foreign exchange contracts: | OTC | OTC–cleared | Exchange-traded(a) | Total foreign exchange contracts | Equity contracts: | OTC | OTC–cleared | Exchange-traded(a) | Total equity contracts | Commodity contracts: | OTC | OTC–cleared | Exchange-traded(a) | Total commodity contracts | Derivative payables with appropriate legal opinions | Derivative payables where an appropriate legal opinion has not been either sought or obtained | Total derivative payables recognized on the Consolidated balance sheets | Collateral not nettable on the Consolidated balance sheets(c)(d)(e) | Net amounts |


| 2018 2017 | Income taxes recovered through rates | Removal costs recovered through rates | Postretirement benefit liability | Pension and other postretirement benefit balancing accounts | TCJA reserve on revenue | Other | Total regulatory liabilities |


commissions and premium taxes, some of which have been capitalized, more than offset the favorable impact of lower information technology, travel, professional services and advertising expenses, which include the impact of our Operational Excellence initiative.
The market improvement which began in the second quarter of 2009 was a key factor in the determination of our expected future gross profits, the increase of which triggered a decrease in DAC and DSI amortization, most significantly in the Retirement Products segment.
The increase in our expected future gross profits stemmed primarily from an increase in the market value of our separate account balances, which is attributable, in part, to the improving financial markets.
Our Insurance Products segment benefited, in the current year, from an increase in amortization of unearned revenue, primarily as a result of our annual review of assumptions that are used in the determination of the amount of amortization recognized.
These collective changes in amortization resulted in a $720 million benefit, partially offsetting the declines in operating earnings available to common shareholders discussed above.
A portion of the decline in operating earnings available to common shareholders was caused by a $200 million reduction in the results of our closed block of business, a specific group of participating life policies that were segregated in connection with the demutualization of MLIC.
Until early 2009, the operating earnings of the closed block did not have a full impact on operating earnings as the operating earnings or loss was partially offset by a change in the policyholder dividend obligation, a liability established at the time of demutualization.
However, in early 2009 the policyholder dividend obligation was depleted and, as a result, the total operating earnings or loss related to the closed block for the year ended December 31, 2009 was, and in the future may be a component of operating earnings.
Business growth, from the majority of our businesses, along with net favorable mortality experience, had a positive impact on operating earnings available to common shareholders.
These impacts were somewhat dampened by higher benefit utilization in our dental business and mixed claim activity in our Auto & Home segment.
In addition, our forward and reverse residential mortgage platform acquisitions in late 2008 benefited Banking, Corporate & Other’s 2009 results.


| 2018 Change 2017 Change 2016 | (millions) | Operating revenues | Fuel and purchased power | SPP network transmission costs | Other operating expenses | Depreciation and amortization | Income from operations | Other income (expense), net | Interest expense | Income tax expense | Equity in earnings of equity method investees, net of income taxes | Net income | Less: Net income attributable to noncontrolling interests | Net income attributable to Evergy, Inc. |


| 2011: High Low | January 1, 2011 to March 31, 2011 | April 1, 2011 to June 30, 2011 | July 1, 2011 to September 30, 2011 | October 1, 2011 to December 31, 2011 | 2010: | January 1, 2010 to March 31, 2010 | April 1, 2010 to June 30, 2010 | July 1, 2010 to September 30, 2010 | October 1, 2010 to December 31, 2010 |


Recently Issued Accounting Standards In May 2011, the Financial Accounting Standards Board (?FASB?)
issued Accounting Standards Update (?ASU?)
No.2011-04, ?Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U. S.  GAAP and IFRSs?
(?ASU No.2011-04?
), which provides guidance about how fair value should be applied where it is already required or permitted under U. S.  GAAP.
The ASU does not extend the use of fair value or require additional fair value measurements, but rather provides explanations about how to measure fair value.
ASU No.2011-04 requires prospective application and will be effective for interim and annual reporting periods beginning after December 15, 2011.
The Company is currently assessing the impact ASU No.2011-04 will have on its financial statements, but does not expect a significant impact from adoption of the pronouncement.
In June 2011, the FASB issued ASU No.2011-05 ?Presentation of Comprehensive Income?
(?ASU No.2011-05?
), which eliminates the option to present components of other comprehensive income as part of the statement of changes in equity and requires that all nonowner changes in equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements.
ASU No.2011-05 requires retrospective application.
The Company early adopted ASU No.2011-05 and added the Consolidated Statements of Comprehensive Income retrospectively for all reporting periods presented.
In September 2011, the FASB issued ASU No.2011-8 ?Intangibles?Goodwill and Other?
(?ASU No.2011-08?
), which amends its guidance on the testing of goodwill for impairment allowing entities to perform a qualitative assessment on goodwill impairment to determine whether it is more likely than not (defined as having a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test.
This guidance is effective for goodwill impairment tests performed in interim and annual periods for fiscal years beginning after December 15, 2011, with early adoption permitted.
The Company is currently assessing the impact ASU No.2011-08 will have on its financial statements, but does not expect a significant impact from adoption of the pronouncement.
In December 2011, the FASB issued ASU No.2011-11 ?Balance Sheet?Disclosures about Offsetting Assets and Liabilities?
(ASU No.2011-11?
), which requires an entity to disclose both gross and net information about financial instruments, such as sales and repurchase agreements and reverse sale and repurchase agreements and securities borrowing/lending arrangements, and derivative instruments that are eligible for offset in the statement of financial position and/or subject to a master netting arrangement or similar agreement.
ASU No.2011-11 is effective for annual and interim periods beginning on January 1, 2013.
The Company is currently assessing the impact ASU No.2011-11 will have on its financial statements, but does not expect a significant impact from adoption of the pronouncement.


The Company’s investment sector allocations as a percentage of total fixed maturities have significantly changed since December 31, 2007 primarily due to efforts to reallocate the portfolio to higher quality, risk averse assets, such as U. S.  government/government agencies, and recession resistant sectors, such as consumer non-cyclical, while reducing its exposure to CMBS, financial services and consumer cyclical sectors.
The available-for-sale net unrealized loss position increased $12.5 billion since December 31, 2007 primarily as a result of credit spread widening, partially offset by declining interest rates and impairments.
Credit spreads widened primarily due to continued deterioration in the U. S.  housing market, tightened lending conditions and the market’s flight to quality securities, as well as, a U. S.  recession and a declining global economy.
Despite steps taken by the government to stabilize the financial system, liquidity and confidence in the markets have not yet been restored.
The sectors most significantly impacted include financial services, residential and commercial mortgage backed investments, and consumer loan backed investments.
The following sections illustrate the Company’s holdings and provide commentary on these sectors.
Financial Services Financial companies remain under significant stress driven initially by the housing market collapse which led to massive asset write-downs, an inability to source capital, funding pressure and a loss of confidence in the financial system.
Numerous government initiatives were put forth over the course of 2008 to address the seizure in the financial and capital markets, including the injection of capital into financial institutions through the Treasury’s Capital Purchase Program, and the establishment of the FDIC Temporary Liquidity Guarantee Program (“TLGP”) whereby the FDIC guarantees newly issued unsecured debt for participating institutions.
While the government’s efforts have provided some stability, financial institutions remain vulnerable to ongoing asset write-downs, increasing credit losses associated with a deteriorating economy, weak earnings prospects, and potentially the need for additional capital if losses further weaken current capital positions.
The Company has exposure to the financial services sector predominantly through banking, insurance and finance firms.
A comparison of fair value to amortized cost is not indicative of the pricing of individual securities as rating downgrades and impairments have occurred.
The following table represents the Company’s exposure to the financial services sector included in the corporate and equity securities, available-for-sale lines in the Consolidated Available-for-Sale Securities by Type table above.
Of the Company’s $7.9 billion on a fair value basis, $3.4 billion is senior debt, $1.9 billion is subordinate and Tier 2 holdings and $2.6 billion is Tier 1 and preferred exposure.
The Company’s exposure to European financial institutions comprises $702 of senior debt, $816 of subordinate and Tier 2 holdings and $875 of Tier 1 and preferred holdings.
Financial Services by Credit Quality


Cat Financial provides guarantees to repurchase certain loans of Caterpillar dealers from a special-purpose corporation (SPC) that qualifies as a variable interest entity.
The purpose of the SPC is to provide short-term working capital loans to Caterpillar dealers.
This SPC issues commercial paper and uses the proceeds to fund its loan program.
Cat Financial has a loan purchase agreement with the SPC that obligates Cat Financial to purchase certain loans that are not paid at maturity.
Cat Financial receives a fee for providing this guarantee, which provides a source of liquidity for the SPC.
Cat Financial is the primary beneficiary of the SPC as its guarantees result in Cat Financial having both the power to direct the activities that most significantly impact the SPC’s economic performance and the obligation to absorb losses, and therefore Cat Financial has consolidated the financial statements of the SPC.
As of December 31, 2017 and 2016, the SPC’s assets of $1,107 million


| Year Ended December 31 2017 over 2016 2016 over 2015 | ($ in millions) | Sales and service revenues | Segment operating income (loss) | As a percentage of segment sales |


| December 31 | 2004 | Projected benefit obligations | Accumulated benefit obligations | Fair value of plan assets |


| 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 |


| 2012 2011 | (in millions) | Receive primarily U.S. dollars in exchange for the following currencies: | Euro | British pound | Japanese yen | Canadian dollar | All other currencies | Total |


| Dollars in millions 2012 2011 | January 1 | Total net charge-offs | Provision for credit losses | Net change in allowance for unfunded loan commitments and letters of credit | Other | December 31 | Net charge-offs to average loans (for the year ended) | Allowance for loan and lease losses to total loans | Commercial lending net charge-offs | Consumer lending net charge-offs | Total net charge-offs | Net charge-offs to average loans (for the year ended) | Commercial lending | Consumer lending | At or for the year ended December 31 | Dollars in millions, except as noted | Balance Sheet Highlights | Assets | Loans | Allowance for loan and lease losses | Interest-earning deposits with banks (a) | Investment securities | Loans held for sale | Equity investments (b) | Mortgage servicing rights | Goodwill | Other assets | Noninterest-bearing deposits | Interest-bearing deposits | Total deposits | Borrowed funds (c) | Total shareholders’ equity | Common shareholders’ equity | Accumulated other comprehensive income (loss) | Period-end common shares outstanding (millions) | Loans to deposits | Client Assets(billions) | Discretionary client assets under management | Nondiscretionary client assets under administration | Total client assets under administration | Brokerage account client assets | Total | Capital Ratios (d) (e) | Basel III (f) | Common equity Tier 1 | Tier 1 risk-based | Total capital risk-based | Transitional Basel III | Common equity Tier I | Tier 1 risk-based capital | Other Selected Ratios | Dividend payout | Common shareholders’ equity to total assets | Average common shareholders’ equity to average assets | Selected Statistics | Employees | Retail Banking branches | ATMs |


Ball Corporation and Subsidiaries Notes to Consolidated Financial Statements 16.
Stock-Based Compensation Programs (continued) To encourage certain senior management employees and outside directors to invest in Ball stock, Ball adopted a deposit share program in March 2001 (subsequently amended and restated in April 2004) that matches purchased shares with restricted shares.
In general, restrictions on the matching shares lapse at the end of four years from date of grant, or earlier in stages if established share ownership guidelines are met, assuming the relevant qualifying purchased shares are not sold or transferred prior to that time.
Grants under the plan are accounted for as equity awards and compensation expense is recorded based upon the closing market price of the shares at the grant date.
The company recorded $0.4 million, $1.6 million and $3.8 million of expense in connection with this program in 2010, 2009 and 2008, respectively.
The companys board of directors grants performance-contingent restricted stock units to key employees, which will cliffvest if the companys return on average invested capital during a 36-month performance period is equal to or exceeds the companys cost of capital.
If the performance goals are not met, the shares will be forfeited.
Current assumptions are that the performance targets will be met and, accordingly, grants under the plan are being accounted for as equity awards and compensation expense is recorded based upon the closing market price of the shares at the grant date.
On a quarterly basis, the company reassesses the probability of the goals being met and adjusts compensation expense as appropriate.
No such adjustment was considered necessary at the end of 2010 for any grants.
Restricted stock units granted under this program included 362,300 units in January 2010, 386,900 units in January 2009 and 493,300 units in April 2008.
The expense associated with the performance-contingent grants totaled $9.5 million, $9.9 million and $6.2 million in 2010, 2009 and 2008, respectively.
For the years ended December 31, 2010, 2009 and 2008, the company recognized in selling, general and administrative expenses pretax expense of $24.4 million ($14.9 million after tax), $26.5 million ($16.0 million after tax) and $20.5 million ($12.4 million after tax), respectively, for share-based compensation arrangements.
At December 31, 2010, there was $35.9 million of total unrecognized compensation cost related to nonvested share-based compensation arrangements.
This cost is expected to be recognized in earnings over a weighted average period of 2.3 years.
In connection with the employee stock purchase plan, the company contributes 20 percent of up to $500 of each participating employees monthly payroll deduction toward the purchase of Ball Corporation common stock.
Company contributions for this plan were $3.2 million in 2010, $3.0 million in 2009 and $3.2 million in 2008.17.


| Termination benefits Facility closure and other exit costs Total | (Dollars in thousands) | Balance at December 31, 2015 | Subsequent accruals | Cash payments | Balance at December 31, 2016 | Subsequent accruals | Cash payments | Balance at December 31, 2017 |


| December 31,2015 September 30,2015 December 31,2014 | AAA/AA/A | BBB | BB/B | CCC or below | Total |


(1) Total debt obligations include long-term debt, capital lease obligations, short-term debt and current maturities of long-term debt and capital lease obligations.
Item 7.
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion of historical results of operations and financial condition should be read in conjunction with the audited financial statements and the notes thereto which appear elsewhere in this report.
Overview PCA is the fifth largest producer of containerboard and corrugated products in the United States, based on production capacity.
We operate four containerboard mills and 67 corrugated products manufacturing plants throughout the United States.
Approximately 80% of the containerboard tons produced at our mills are consumed in our corrugated products manufacturing plants.
The remaining 20% is sold to domestic customers or the export market.
We produce a wide variety of corrugated products ranging from basic corrugated shipping containers to specialized packaging such as wax-coated boxes for the agriculture industry.
We also have multi-color printing capabilities to make high-impact graphics boxes and displays that offer our customers more attractive packaging.


| Amount % B/(W) | 2010 | China Division | YRI | United States | Unallocated Franchise and license fees and income | Unallocated Occupancy and Other | Unallocated and corporate expenses | Unallocated Impairment expense | Unallocated Other income (expense) | Unallocated Refranchising gain (loss) | Operating Profit | United States operating margin | YRI operating margin |


| Three Months Ended March 31 | 2005 | (Dollars in millions) | Operating activities | Net income | Reconciliation of net income to net cash provided by (used in) operating activities: | Provision for credit losses | Gains on sales of debt securities | Depreciation and premises improvements amortization | Amortization of intangibles | Deferred income tax benefit | Net increase in trading and derivative instruments | Net (increase) decrease in other assets | Net decrease in accrued expenses and other liabilities | Other operating activities, net | Net cash used in operating activities | Investing activities | Net (increase) decrease in time deposits placed and other short-term investments | Net (increase) decrease in federal funds sold and securities purchased under agreements to resell | Proceeds from sales of available-for-sale securities | Proceeds from maturities of available-for-sale securities | Purchases of available-for-sale securities | Proceeds from maturities of held-to-maturity securities | Proceeds from sales of loans and leases | Other changes in loans and leases, net | Additions to mortgage servicing rights, net | Net purchases of premises and equipment | Proceeds from sales of foreclosed properties | Net cash paid for business acquisitions | Other investing activities, net | Net cash used in investing activities | Financing activities | Net increase in deposits | Net increase in federal funds purchased and securities sold under agreements to repurchase | Net increase in commercial paper and other short-term borrowings | Proceeds from issuance of long-term debt | Retirement of long-term debt | Proceeds from issuance of common stock | Common stock repurchased | Cash dividends paid | Other financing activities, net | Net cash provided by financing activities | Effect of exchange rate changes on cash and cash equivalents | Net decrease in cash and cash equivalents | Cash and cash equivalents at January 1 | Cash and cash equivalents at March 31 |


| Year ended December 31Dollars in millions 2011 2010 | Net interest income | Net interest margin |


| As of December 31, Notional amounts(a) Derivative receivables MTM | (in billions) | Interest rate | Foreign exchange | Equity | Credit derivatives | Commodity | Total | Collateral held againstderivative receivables | Exposure net of collateral |


Cash Flows from Financing Activities 2013 versus 2012 In 2013, we reduced our cost of borrowings through the repayment and redemption of long-term indebtedness, which had higher interest rates than the commercial paper and senior secured debt issued to finance such repayments and redemptions.
During 2013, issuances under the Ameren and Ameren Missouri commercial paper programs were available at a lower interest rate than the interest rate available under the 2012 Credit Agreements.
Amerens net cash used in financing activities associated with continuing operations decreased during 2013 compared with 2012.
In 2013, Amerens cash flow from operating activities of $1.6 billion exceeded its capital expenditures of $1.4 billion while in 2012 Amerens cash flow from operating activities of $1.4 billion exceeded its capital expenditures of $1.1 billion.
During 2013, Ameren used cash flow from operating activities, other available cash on hand, and commercial paper issuances in part, to pay common stock dividends of $388 million, redeem $244 million of long-term Ameren Missouri indebtedness, and fund the $235 million cash requirement at divested New AER upon divestiture on December 2, 2013, pursuant to the transaction agreement with IPH.
In addition, Ameren Illinois issued $280 million in senior secured debt and used the net proceeds of $276 million to repay at maturity $150 million of long-term indebtedness.
In comparison, in 2012, Ameren subsidiaries issued $885 million in senior debt and used the proceeds, together with other available cash, to redeem or repay existing long-term indebtedness of $754 million and pay related premiums.
Additionally, in 2012, Ameren repaid $148 million of its net short-term debt.
During 2013, no financing cash flows were utilized to meet the working capital and investing requirements of our discontinued operations.
Ameren Missouris net cash used in financing activities increased during 2013, compared with 2012.
Ameren Missouri used cash on hand, net money pool receipts, and the excess cash from operating activities after capital expenditures, to redeem or repay existing long-term indebtedness of $244 million and pay common stock dividends of $460 million.
In comparison, in 2012, Ameren Missouri issued $485 million of 3.90% senior secured notes and used the proceeds, together with other available cash, to redeem or repay existing long-term indebtedness of $422 million and to pay related premiums.
Ameren Illinois financing activities provided net cash of $45 million in 2013 compared with 2012, when financing activities used net cash of $103 million.
During 2013, Ameren Illinois issued $280 million in senior secured debt and used the net proceeds of $276 million to repay at maturity $150 million of long-term indebtedness, and pay


| Years Ended December 31, | 2015 | Statutory net income | P&C companies | Life and Health companies | Total statutory net income-1 | December 31, | 2015 | Statutory capital and surplus | P&C companies | Life and Health companies | Total statutory capital and surplus |


| High Low Dividends Declared | Period from August 17, 2004 to September 30, 2004 | Quarter Ended December 31, 2004 | Quarter Ended March 31, 2005 | Quarter Ended June 30, 2005 | Quarter Ended September 30, 2005 | Quarter Ended December 31, 2005 |


| Key Performance IndicatorsTwelve Months EndedDecember 31, | 2015 | (In millions, except per share data) | Operating revenue | Operating revenue change | Operating income | Operating margin | Net income attributable to Equifax | Diluted earnings per share from continuing operations | Cash provided by operating activities | Capital expenditures |


| 2010 2009 2008 Since inception through December 31, 2010 | Facility and other exit costs | Employee severance, termination benefits and relocation costs | Exited contractual commitments and other | $77.5 |


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.
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 decreased during 2017 by $20.6 to $126.6 compared to 2016, primarily due to lower annual incentive expense.
Corporate and other expenses increased during 2016 by $5.4 to $147.2 compared to 2015.


Other Income (Expense), Net Items recorded to "Other income (expense), net" arise from transactions and events not directly related to our principal income earning activities.
The detail of "Other income (expense), net" is presented in Note 23, Supplemental Information, to the consolidated financial statements.2018 vs.  2017 Other income (expense), net of $50.2 decreased $70.8, primarily due to lower income from the transition services agreements with Versum and Evonik, lower income from the sale of assets and investments, lower favorable contract settlements, and an unfavorable foreign exchange impact.2017 vs.  2016 Other income (expense), net of $121.0 increased $71.6, primarily due to income from transition services agreements with Versum and Evonik, income from the sale of assets and investments, including a gain of $12.2 ($7.6 after-tax, or $.03 per share) resulting from the sale of a parcel of land, and a favorable foreign exchange impact.


THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements The APEX Trusts and the 2012 Trusts are Delaware statutory trusts sponsored by the firm and wholly-owned finance subsidiaries of the firm for regulatory and legal purposes but are not consolidated for accounting purposes.
The firm has covenanted in favor of the holders of Group Inc. ’s 6.345% junior subordinated debt due February 15, 2034, that, subject to certain exceptions, the firm will not redeem or purchase the capital securities issued by the APEX Trusts or shares of Group Inc. ’s Series E or Series F Preferred Stock prior to specified dates in 2022 for a price that exceeds a maximum amount determined by reference to the net cash proceeds that the firm has received from the sale of qualifying securities.
Junior Subordinated Debt Issued in Connection with Trust Preferred Securities.
Group Inc.  issued $2.84 billion of junior subordinated debt in 2004 to Goldman Sachs Capital I (Trust), a Delaware statutory trust.
The Trust issued $2.75 billion of guaranteed preferred beneficial interests (Trust Preferred Securities) to third parties and $85 million of common beneficial interests to Group Inc.  and used the proceeds from the issuances to purchase the junior subordinated debt from Group Inc.  During 2014 and the first quarter of 2015, the firm purchased $1.43 billion (par amount) of Trust Preferred Securities and delivered these securities, along with $44.2 million of common beneficial interests, to the Trust in exchange for a corresponding par amount of the junior subordinated debt.
Following the exchanges, these Trust Preferred Securities, common beneficial interests and junior subordinated debt were extinguished.
Subsequent to these extinguishments, the outstanding par amount of junior subordinated debt held by the Trust was $1.36 billion and the outstanding par amount of Trust Preferred Securities and common beneficial interests issued by the Trust was $1.32 billion and $40.8 million, respectively.
The Trust is a wholly-owned finance subsidiary of the firm for regulatory and legal purposes but is not consolidated for accounting purposes.
The firm pays interest semi-annually on the junior subordinated debt at an annual rate of 6.345% and the debt matures on February 15, 2034.
The coupon rate and the payment dates applicable to the beneficial interests are the same as the interest rate and payment dates for the junior subordinated debt.
The firm has the right, from time to time, to defer payment of interest on the junior subordinated debt, and therefore cause payment on the Trust’s preferred beneficial interests to be deferred, in each case up to ten consecutive semi-annual periods.
During any such deferral period, the firm will not be permitted to, among other things, pay dividends on or make certain repurchases of its common stock.
The Trust is not permitted to pay any distributions on the common beneficial interests held by Group Inc.  unless all dividends payable on the preferred beneficial interests have been paid in full.


| Year Ended December 31, | 2014 | (In millions) | Beginning balance | Net changes in prices and production costs | Oil, bitumen, gas and NGL sales, net of production costs | Changes in estimated future development costs | Extensions and discoveries, net of future development costs | Purchase of reserves | Sales of reserves in place | Revisions of quantity estimates | Previously estimated development costs incurred during the period | Accretion of discount | Other, primarily changes in timing and foreign exchange rates | Net change in income taxes | Ending balance |


interest rate to a variable interest rate based on the three-month LIBOR plus 2.05% (2.34% as of October 31, 2009).
If LIBOR changes by 100 basis points, our annual interest expense would change by $3.8 million.
Foreign Currency Exposure As more fully described in Note 2i.
in the Notes to Consolidated Financial Statements contained in Item 8 of this Annual Report on Form 10-K, we regularly hedge our non-U.
S.  dollar-based exposures by entering into forward foreign currency exchange contracts.
The terms of these contracts are for periods matching the duration of the underlying exposure and generally range from one month to twelve months.
Currently, our largest foreign currency exposure is the Euro, primarily because our European operations have the highest proportion of our local currency denominated expenses.
Relative to foreign currency exposures existing at October 31, 2009 and November 1, 2008, a 10% unfavorable movement in foreign currency exchange rates over the course of the year would not expose us to significant losses in earnings or cash flows because we hedge a high proportion of our year-end exposures against fluctuations in foreign currency exchange rates.
The market risk associated with our derivative instruments results from currency exchange rate or interest rate movements that are expected to offset the market risk of the underlying transactions, assets and liabilities being hedged.
The counterparties to the agreements relating to our foreign exchange instruments consist of a number of major international financial institutions with high credit ratings.
We do not believe that there is significant risk of nonperformance by these counterparties because we continually monitor the credit ratings of such counterparties.
While the contract or notional amounts of derivative financial instruments provide one measure of the volume of these transactions, they do not represent the amount of our exposure to credit risk.
The amounts potentially subject to credit risk (arising from the possible inability of counterparties to meet the terms of their contracts) are generally limited to the amounts, if any, by which the counterparties obligations under the contracts exceed our obligations to the counterparties.


| (Losses) Earnings At December 31, | (in millions) | Currency translation adjustments | Pension and other benefits | Derivatives accounted for as hedges | Total accumulated other comprehensive losses |


| As of December 31, 2011 | Ownership | (In percentages) | InfraServ GmbH & Co. Gendorf KG | InfraServ GmbH & Co. Knapsack KG | InfraServ GmbH & Co. Hoechst KG |


| (In millions) 2009 2008 2007 | Foreign currency translation | Net unrealized loss on hedges of net investments in non-U.S. subsidiaries | Net unrealized loss on available-for-sale securities | Net unrealized loss on fair value hedges of available-for-sale securities | Losses from other-than-temporary impairment on available-for-sale securities related to factors other than credit | Losses from other-than-temporary impairment on held-to-maturity securities related to factors other than credit | Minimum pension liability | Net unrealized loss on cash flow hedges | Total |


The increase in our gross profit margin for 2012, as compared to 2011, is primarily the result of cost reductions from our restructuring and other process improvement programs.
Our gross margin was negatively impacted by declines in average selling prices related primarily to sales of our drug-eluting stent and CRM products; however, these declines were largely offset by the full conversion to our internally-developed and self-manufactured next-generation PROMUS? Element? stent system during 2012.
Our PROMUS? Element? stent system has significantly higher gross margins than the prior generation PROMUS? stent system, which was supplied to us by Abbott Laboratories.
Additionally, affecting our year over year comparison of year to date gross margin was the impact of a one-time $50 million credit to cost of products sold, related to a two-year retroactive pricing adjustment pursuant to our PROMUS? supply arrangement with Abbott and product transition-related inventory charges of $54 million recorded in 2011, discussed further below.


Provision for Income Taxes The Company’s effective tax rates were approximately 24.2%, 24.4% and 31.8% for 2011, 2010 and 2009, respectively.
The Company’s effective rates for these periods differ from the statutory federal income tax rate of
(4) Includes securities related to the Build America Bonds program.
(5) Excluded from the table above are securities held outside the general account in other entities and operations.
For additional information regarding investments held outside the general account, see “—Invested Assets of Other Entities and Operations” below.
Also excluded from the table above are fixed maturity securities classified as trading.
See “—Trading Account Assets Supporting Insurance Liabilities” and “—Other Trading Account Assets” for additional information.
The increase in net unrealized gains from December 31, 2015 to December 31, 2016, was primarily due to a net increase in fair value driven by a decrease in interest rates in Japan and credit spread tightening.


| 2008 2007 2006 | Income | (Shares and dollars in thousands, except per share amounts) | Income from continuing operations | Less: Dividend requirements on preferred stock | Basic earnings per share | Earnings available to common shareholders | Effect of dilutive securities: | Convertible senior notes | 401(k) equity awards | Stock options | Diluted earnings per share | Earnings available to common shareholders and assumed conversions |


| Years Ended December 31, | 2010 | GAAP | (in millions, except percentages) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Amortization of deferred acquisition costs | General and administrative expense | Total expenses | Pretax income |


(1) Exposure includes standby letters of credit, financial guarantees, commercial letters of credit and bankers acceptances for which the bank is legally bound to advance funds under prescribed conditions, during a specified period.
Although funds have not been advanced, these exposure types are considered utilized for credit risk management purposes.
(2) Total commercial utilized exposure at December 31, 2007 includes loans and issued letters of credit measured at fair value in accordance with SFAS 159 and is comprised of loans outstanding of $4.59 billion and letters of credit at notional value of $1.1 billion.
(3) Total commercial unfunded exposure at December 31, 2007 includes loan commitments measured at fair value in accordance with SFAS 159 with a notional value of $19.8 billion.
(4) Excludes unused business card lines which are not legally binding.
(5) Derivative assets are reported on a mark-to-market basis, reflect the effects of legally enforceable master netting agreements, and have been reduced by cash collateral of $12.8 billion and $7.3 billion at December 31, 2007 and 2006.
In addition to cash collateral, derivative assets are also collateralized by $8.5 billion and $7.6 billion of primarily other marketable securities at December 31, 2007 and 2006 for which credit risk has not been reduced.
(6) Total commercial committed exposure consists of $23.9 billion


| 2018 2017 2016 | Pension expense – Continuing operations | Settlements, termination benefits, and curtailments (included above) | Weighted average discount rate – Service cost | Weighted average discount rate – Interest cost | Weighted average expected rate of return on plan assets | Weighted average expected rate of compensation increase |


| At July 31, 2018 At July 31, 2017 | (In millions) | Assets: | Cash equivalents, primarily money market funds and savings deposit accounts | Available-for-sale debt securities: | Municipal bonds | Municipal auction rate securities | Corporate notes | U.S. agency securities | Total available-for-sale securities | Total assets measured at fair value on a recurring basis |


| 2013 2012 2011 | Balance at beginning of year | Additions charged to expense | Accounts written-off | Balance at end of year |


| Year Ended December 31, 2016 2015 2014 | INTEREST- RATE CONTRACTS | Truck, Parts and Other: | Net sales and revenues | Cost of sales and revenues | Interest and other expense, net | Financial Services: | Interest and other borrowing expenses | Selling, general and administrative | $.1 |


| Fiscal2013 Fiscal2012 Fiscal2011 % Change2013-2012 % Change2012-2011 | Product | Percentage of total revenue | Subscription | Percentage of total revenue | Services and support | Percentage of total revenue | Total cost of revenue |


| Name of Beneficial Owner Shares of Common Stock Beneficially Owned-1 Percent of Common Stock Outstanding | Fidelity Investments | AllianceBernstein LP | Steven P. Jobs | William V. Campbell | Timothy D. Cook | Millard S. Drexler | Albert A. Gore, Jr. | Ronald B. Johnson | Arthur D. Levinson | Peter Oppenheimer | Philip W. Schiller | Eric E. Schmidt | Jerome B. York | All current executive officers and directors as a group (15 persons) |


| (in millions) First Quarter Second Quarter Third Quarter Fourth Quarter Total | 2017 | Costs to Achieve Piedmont Merger (see Note 2) | Regulatory Settlements (see Note 4) | Commercial Renewables Impairments (see Notes 10 and 11) | Impacts of the Tax Act (see Note 22) | Total | 2016 | Costs to Achieve Mergers (see Note 2) | Commercial Renewables Impairment (see Note 12) | Loss on Sale of International Disposal Group (see Note 2) | Impairment of Assets in Central America (see Note 2) | Cost Savings Initiatives (see Note 19) | Total |


| Year Ended December 31, | 2006 | Reconstructive | Knees | Hips | Extremities | Dental | Total | Trauma | Spine | OSP and other | Total |


Interest Expense Interest expense for the year ended December 31, 2015 was approximately $122.3 million, a decrease of $1.6 million from the year ended December 31, 2014.
The decrease was primarily the result of a decrease in amortization of deferred financing cost from the year ended December 31, 2014 to the year ended December 31, 2015 of approximately $0.9 million.
Also, the overall debt balance decreased from $3.5 billion to $3.4 billion, a decrease of $85.1 million.
The average effective interest rate remained at 3.7% and the average years to rate maturity increased from 4.4 years to 4.8 years.


| December 31,(in millions) 2012 2011 | Securities purchased under resale agreements(a) | Securities borrowed(b) | Securities sold under repurchase agreements(c) | Securities loaned(d) |


Foodservice sales volumes increased in 2012 compared with 2011.
Average sales margins were higher reflecting the realization of sales price increases for the pass-through of earlier cost increases.
Raw material costs for board and resins were lower.
Operating costs and distribution costs were both higher.
The U. S.  Shorewood business was sold December 31, 2011 and the non-U.
S.  business was sold in January 2012.
Looking ahead to the first quarter of 2013, Coated Paperboard sales volumes are expected to increase slightly from the fourth quarter of 2012.
Average sales price realizations are expected to be slightly lower, but margins should benefit from a more favorable product mix.
Input costs are expected to be higher for energy and wood.
No planned maintenance outages are scheduled in the first quarter.
In January 2013 the Company announced the permanent shutdown of a coated paperboard machine at the Augusta mill with an annual capacity of 140,000 tons.
Foodservice sales volumes are expected to increase.
Average sales margins are expected to decrease due to the realization of sales price decreases effective with our January contract openers.
Input costs for board and resin are expected to be lower and operating costs are also expected to decrease.
European Consumer Packaging net sales in 2012 were $380 million compared with $375 million in 2011 and $345 million in 2010.
Operating profits in 2012 were $99 million compared with $93 million in 2011 and $76 million in 2010.
Sales volumes in 2012 increased from 2011.
Average sales price realizations were higher in Russian markets, but were lower in European markets.
Input costs decreased, primarily for wood, and planned maintenance downtime costs were lower in 2012 than in 2011.
Looking forward to the first quarter of 2013, sales volumes are expected to decrease in both Europe and Russia.
Average sales price realizations are expected to be higher in Russia, but be more than offset by decreases in Europe.
Input costs are expected to increase for wood and chemicals.
No maintenance outages are scheduled for the first quarter.
Asian Consumer Packaging net sales were $830 million in 2012 compared with $855 million in 2011 and $705 million in 2010.
Operating profits in 2012 were $4 million compared with $35 million in 2011 and $34 million in 2010.
Sales volumes increased in 2012 compared with 2011 partially due to the start-up of a new coated paperboard machine.
Average sales price realizations were significantly lower, but were partially offset by lower input costs for purchased pulp.
Start-up costs for a new coated paperboard machine adversely impacted operating profits in 2012.
In the first quarter of 2013, sales volumes are expected to increase slightly.
Average sales price realizations for folding carton board and bristols board are expected to be lower reflecting increased competitive pressures and seasonally weaker market demand.
Input costs should be higher for pulp and chemicals.
However, costs related to the ramp-up of the new coated paperboard machine should be lower.
Distribution xpedx, our distribution business, is one of North Americas leading business-to-business distributors to manufacturers, facility managers and printers, providing customized solutions that are designed to improve efficiency, reduce costs and deliver results.
Customer demand is generally sensitive to changes in economic conditions and consumer behavior, along with segment specific activity including corporate advertising and promotional spending, government spending and domestic manufacturing activity.
Distributions margins are relatively stable across an economic cycle.
Providing customers with the best choice for value in both products and supply chain services is a key competitive factor.
Additionally, efficient customer service, cost-effective logistics and focused working capital management are key factors in this segments profitability.


| Amount (In Millions) | 2010 net revenue | Mark-to-market tax settlement sharing | Purchased power capacity | Net wholesale revenue | Volume/weather | ANO decommissioning trust | Retail electric price | Other | 2011 net revenue |


| Year ended December 31,(in millions) 2012 2011 2010 | Asset management | Investment management fees | All other asset management fees | Total asset management fees | Total administration fees(a) | Commission and other fees | Brokerage commissions | All other commissions and fees | Total commissions and fees | Total asset management, administration and commissions |


| Components of change during 2006 Change | 2005 | Total | Domestic | International |


| 2010 2009 | (in millions of U.S. dollars) | Property and all other | Case reserves | Loss expenses | IBNR reserves | Subtotal | Casualty | Case reserves | Loss expenses | IBNR reserves | Subtotal | A&H | Case reserves | Loss expenses | IBNR reserves | Subtotal | Total | Case reserves | Loss expenses | IBNR reserves | Total |


| 2014 2013 | Vehicles | Aircraft | Land | Buildings | Building and leasehold improvements | Plant equipment | Technology equipment | Equipment under operating leases | Construction-in-progress | 40,620 | Less: Accumulated depreciation and amortization | $18,281 |


| December 31, | 2016 | (tons in thousands) | Ammonia-1 | Granular urea | UAN -32% | AN | 2017 | Weighted-average assumptions: | Expected term of stock options | Expected volatility | Risk-free interest rate | Expected dividend yield | Weighted-average grant date fair value |


Goodwill is reviewed annually during the fourth quarter for impairment.
In addition, the Company performs an impairment analysis of other intangible assets based on the occurrence of other factors.
Such factors include, but are not limited to, significant changes in membership, state funding, medical contracts and provider networks and contracts.
An impairment loss is recognized if the carrying value of intangible assets exceeds the implied fair value.
Medical Claims Liabilities Medical services costs include claims paid, claims reported but not yet paid, or inventory, estimates for claims incurred but not yet received, or IBNR, and estimates for the costs necessary to process unpaid claims.
The estimates of medical claims liabilities are developed using standard actuarial methods based upon historical data for payment patterns, cost trends, product mix, seasonality, utilization of healthcare services and other relevant factors including product changes.
These estimates are continually reviewed and adjustments, if necessary, are reflected in the period known.
Management did not change actuarial methods during the years presented.
Management believes the amount of medical claims payable is reasonable and adequate to cover the Companys liability for unpaid claims as of December 31, 2006; however, actual claim payments may differ from established estimates.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) merchant acquiring business in the United Kingdom to the partnership.
In addition, HSBC UK entered into a ten-year marketing alliance with the partnership in which HSBC UK will refer customers to the partnership for payment processing services in the United Kingdom.
On June 23, 2008, we entered into a new five year, $200 million term loan to fund a portion of the acquisition.
We funded the remaining purchase price with excess cash and our existing credit facilities.
The term loan bears interest, at our election, at the prime rate or London Interbank Offered Rate plus a margin based on our leverage position.
As of July 1, 2008, the interest rate on the term loan was 3.605%.
The term loan calls for quarterly principal payments of $5 million beginning with the quarter ending August 31, 2008 and increasing to $10 million beginning with the quarter ending August 31, 2010 and $15 million beginning with the quarter ending August 31, 2011.
The partnership agreement includes provisions pursuant to which HSBC UK may compel us to purchase, at fair value, additional membership units from HSBC UK (the “Put Option”).
HSBC UK may exercise the Put Option on the fifth anniversary of the closing of the acquisition and on each anniversary thereafter.
By exercising the Put Option, HSBC UK can require us to purchase, on an annual basis, up to 15% of the total membership units.
Additionally, on the tenth anniversary of closing and each tenth anniversary thereafter, HSBC UK may compel us to purchase all of their membership units at fair value.
While not redeemable until June 2013, we estimate the maximum total redemption amount of the minority interest under the Put Option would be $421.4 million, as of May 31, 2008.
The purpose of this acquisition was to establish a presence in the United Kingdom.
The key factors that contributed to the decision to make this acquisition include historical and prospective financial statement analysis and HSBC UK’s market share and retail presence in the United Kingdom.
The purchase price was determined by analyzing the historical and prospective financial statements and applying relevant purchase price multiples.
The purchase price totaled $441.1 million, consisting of $438.6 million cash consideration plus $2.5 million of direct out of pocket costs.
The acquisition has been recorded using the purchase method of accounting, and, accordingly, the purchase price has been allocated to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition.


The Regulated Transmission segment transmits electricity through transmission facilities owned and operated by ATSI, TrAIL, and certain of FirstEnergy's utilities (JCP&L, ME, PN, MP, PE and WP) and the regulatory asset associated with the abandoned PATH project.
The segment's revenues are primarily derived from rates that recover costs and provide a return on transmission capital investment.
Except for the recovery of the PATH abandoned project regulatory asset, these revenues are derived from transmission services provided pursuant to the PJM open access transmission tariff to LSEs.
Its results also reflect the net transmission expenses related to the delivery of electricity on FirstEnergy's transmission facilities.
The Competitive Energy Services segment, through FES and AE Supply, supplies electricity to end-use customers through retail and wholesale arrangements, including competitive retail sales to customers primarily in Ohio, Pennsylvania, Illinois, Michigan, New Jersey and Maryland, and the provision of partial POLR and default service for some utilities in Ohio, Pennsylvania and Maryland, including the Utilities.
This business segment currently controls approximately 14,000 MWs of capacity, including 885 MWs of capacity subject to RMR arrangements with PJM and excluding 1,476 MWs of generation capacity transferred to Regulated Distribution in connection with the Harrison and Pleasants asset swap that occurred on October 9, 2013.
This segment also purchases electricity to meet sales obligations.
The segments net income is primarily derived from electric generation sales less the related costs of electricity generation, including fuel, purchased power and net transmission (including congestion) and ancillary costs charged by PJM to deliver energy to the segments customers.
The Competitive Energy Services segment derives its revenues from the sale of generation to direct and governmental aggregation, POLR and wholesale customers.
The segment is exposed to various market and financial risks, including the risk of price fluctuations in the wholesale power markets.
Wholesale power prices may be impacted by the prices of other commodities, including coal and natural gas, and energy efficiency and demand response programs, as well as regulatory and legislative actions, such as MATS among other factors.
The segment attempts to mitigate the market risk inherent in its energy position by economically hedging its exposure and continuously monitoring various risk measurement metrics to ensure compliance with its risk management policies.
The Competitive Energy Services segment economically hedges exposure to price risk on a ratable basis, which is intended to reduce the near-term financial impact of market price volatility.
As of December 31, 2013, the percentage of expected physical sales economically hedged was 91% for 2014 (out of a 99 million MWH target).
As of December 31, 2013, committed sales for 2015 and 2016 are approximately 49 million MWHs and 27 million MWHs, respectively.
Other and Reconciling Adjustments contains corporate items and other businesses that are below the quantifiable threshold for separate disclosure as a reportable segment as well as reconciling adjustments for the elimination of intersegment transactions.
See Note 19, Segment Information, of the Combined Notes to Consolidated Financial Statements for further information on FirstEnergy's reportable operating segments.
FirstEnergy considers a variety of factors, including wholesale power prices, in its decision to operate, or not operate, a generating plant.
If wholesale power prices represent a lower cost option, FirstEnergy may elect to fulfill its load obligation through purchasing electricity in the wholesale market as opposed to operating a generating unit.
The effect of this decision on its results of operations would be to displace higher per unit fuel expense with lower per unit purchased power.
FirstEnergy engages in discussions with various commodity vendors, from time to time, regarding the impact that these and other actions may have on certain of its long-term agreements and FirstEnergy cannot provide assurance that these discussions will be satisfactorily resolved.
STRATEGY AND OUTLOOK FirstEnergy has taken a series of actions across the company to position itself for future growth.


| 12/12 12/13 12/14 12/15 12/16 12/17 | Expeditors International of Washington, Inc. | Standard and Poor's 500 Index | NASDAQ Transportation | NASDAQ Industrial Transportation (NQUSB2770T) | Early Tender Price1 | 2009 Notes | 2011 Notes | 2010 Notes | Aggregate Principal Amount | Tender Offers | 2009 Notes | 2011 Notes | 2010 Notes | Redemption | 2009 Notes |


| Benefit Plan 2017 2016 2015 | Pension Plan | Health Plan | Other plans | Total plan contributions |


| Year EndedDecember 31 | 2018 | Net sales, as reported | Acquisitions | Divestitures | Net sales, excluding acquisitions and divestitures | Currency translation | Net sales, excluding acquisitions, divestitures and the effect of currency translation |


| September 30, 2007 % Incr. (Decr.) September 30, 2006 % Incr. (Decr.) September 30, 2005 | Assets Under Management: | Eagle Asset Mgmt., Inc. | Retail | Institutional | Total Eagle | Heritage Family of Mutual Funds | Money Market | Other | Total Heritage | Raymond James Consulting Services | Awad Asset Management | Freedom Accounts | Total Assets Under Management | Less: Assets Managed for Affiliated Entities | Third Party Assets Under Management |


| Twelve Months Ended | (Millions of Dollars) | Operating revenues | Purchased power | Gas purchased for resale | Other operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Operating income |


| December 31, 2007 Net Flows Market Appreciation/ (Depreciation) & Other Foreign Exchange December 31, 2008 | (in billions) | Domestic Managed Assets: | Retail Funds | Institutional Funds | Alternative Funds | Less: Eliminations | Total Domestic Managed Assets | International Managed Assets: | Retail Funds | Institutional Funds | Alternative Funds | Total International Managed Assets | Less: Sub-Advised Eliminations | Total Managed Assets |


| December 31 | 2010 | (Dollars in millions) | Maximum loss exposure | On-balance sheet assets | Trading account assets | Derivative assets | Available-for-saledebt securities | Loans and leases | Allowance for loan and lease losses | 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 |


| 2012 2011 2010 | Current: | Federal | State | Federal and state deferred provision | Uncertain tax positions and interest, and other | Provision for income taxes | 2012 | Balance at beginning of year | Additions charged to expense | Accounts written-off | Balance at end of year |


| Fair value measurement Note 2 Page 155 | Fair value option | Derivative instruments | Noninterest revenue | Interest income and interest expense | Pension and other postretirement employee benefit plans | Employee share-based incentives | Securities | Securities financing activities | Loans | Allowance for credit losses | Variable interest entities | Goodwill and Mortgage servicing rights | Premises and equipment | Long-term debt | Income taxes | Off–balance sheet lending-related financial instruments, guarantees and other commitments | Litigation |


| As of December 31, Depreciable   Lives | 2010 | (In millions) | Facilities and equipment | Land and improvements | Nuclear fuel | Office furnishings and equipment | Construction in progress | Total property, plant and equipment | Accumulated depreciation | Net property, plant and equipment |


| Date PMI PMI Peer Group-1 S&P 500 Index | December 31, 2012 | December 31, 2013 | December 31, 2014 | December 31, 2015 | December 31, 2016 | December 31, 2017 |


Hologic, Inc.  Notes to Consolidated Financial Statements (continued) (In thousands, except per share data) its supply chain and improve manufacturing margins.
The combination of the companies should also facilitate further manufacturing efficiencies and accelerate research and development of new detector products.
AEG was a privately held group of companies headquartered in Warstein, Germany, with manufacturing operations in Germany, China and the United States.
The aggregate purchase price for AEG was approximately $31,300 (subject to adjustment) consisting of EUR $24,100 in cash and 110 shares of Hologic Common Stock valued at $5,300, and approximately $1,900 for acquisition related fees and expenses.
The Company determined the fair value of the shares issued in connection with the acquisition in accordance with EITF Issue No.99-12, Determination of the Measurement Date for the Market Price of Acquirer Securities Issued in a Purchase Business Combination.
These 110 shares were subject to contingent put options pursuant to which the holders had the option to resell the shares to the Company during a period of one year following the completion of the acquisition if the closing price of the Companys stock falls and remains below a threshold price.
The put options were never exercised and expired on May 2, 2007.
The acquisition also provided for a one-year earn out of EUR 1,700 (approximately $2,000 USD) which was payable in cash if AEG calendar year 2006 earnings, as defined, exceeded a pre-determined amount.
AEGs 2006 earnings did not exceed such pre-determined amounts and no payment was made.


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


2008 to 2007 Annual Comparison Financial Services Businesses The Financial Services Businesses’ net realized investment losses in 2008 were $2,414 million, compared to net realized investment gains of $24 million in 2007.
Net realized losses on fixed maturity securities were $1,646 million in 2008, compared to net realized losses of $64 million in 2007, as set forth in the following table:


| Years Ended December 31, | 2011 | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Amortization of deferred acquisition costs | General and administrative expense | Total expenses | Operating earnings |


| Cash $84,751 | Contingent consideration | Total purchase price |


| Date PMI PMI Compensation Survey Group-1,2 S&P 500 Index | December 31, 2010 | December 31, 2011 | December 31, 2012 | December 31, 2013 | December 31, 2014 | December 31, 2015 | 2015 | U.S. pension plans | Non-U.S. pension plans | Postretirement plans |


| Month ofIssuance Net CashProceedsReceived Numberof Units IssuePrice Type of Issuance | October | June | June | March |


| Options Outstanding | Options Shares | Available | for Grant | Balance at September 30, 2001 | Plan shares expired | Options granted | Options cancelled | Options exercised | Balance at September 30, 2002 | Plan shares expired | Options granted | Options cancelled | Options exercised | Balance at September 30, 2003 | Additional shares reserved | Options granted | Options cancelled | Options exercised | Balance at September 30, 2004 |


UNITED PARCEL SERVICE, INC.  AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 30 Revenue The change in overall revenue was impacted by the following factors for the years ended December 31, 2014 and 2013, compared with the corresponding prior year periods:


We are pursuing various legal remedies to protect our interests.
We believe that ultimate disposition of this matter will not have a material adverse affect on our financial position, results of operations, or cash flows.
Legal Proceedings  We are among a group of 18 defendants named in a lawsuit filed August 23, 2002 by Dore Energy Corporation under Docket Number 10-16202 in the 38th Judicial District Court, Cameron Parish, Louisiana.
The lawsuit alleges damage to property owned by Dore resulting from oil and gas activities dating to the 1930s.
Our predecessor, Samedan Oil Corporation, operated on a portion of the property from 1989 to 1999.
Dore has delivered documents alleging approximately $140 million in damages.
Trial is currently set for April 27, 2009.
We intend to vigorously defend against these allegations and believe that our share of damages, if any, will not have a material adverse effect on our financial position, results of operations, or cash flows.
We are involved in various other legal proceedings in the ordinary course of business.
These proceedings are subject to the uncertainties inherent in any litigation.
We are defending ourselves vigorously in all such matters and we believe that the ultimate disposition of such proceedings will not have a material adverse effect on our financial position, results of operations or cash flows.


| 2005 2004 | (in millions) | Assets: | Fixed maturities | Equity securities | Mortgage loans on real estate, policy and collateral loans | Securities available for sale | Trading securities | Spot commodities | Unrealized gain on swaps, options and forward transactions | Trading assets | Securities purchased under agreements to resell | Finance receivables, net of allowance | Securities lending collateral | Other invested assets | Short-term investments | Cash | Liabilities: | Policyholders’ contract deposits | Borrowings under obligations of guaranteed investment agreements | Securities sold under agreements to repurchase | Trading liabilities | Securities and spot commodities sold but not yet purchased | Unrealized loss on swaps, options and forward transactions | Trust deposits and deposits due to banks and other depositors | Commercial paper | Notes, bonds, loans and mortgages payable | Securities lending payable |


| October 31, | 2018 | (in millions) | Combined and Consolidated Balance Sheet Data:(a) | Cash and cash equivalents and short-term investments | Working capital | Total assets | Long-term debt | Stockholders' equity |


| 2016 2015 2014 | Current: | Federal | State | Deferred: | Federal | State | State deferred benefit - change in valuation allowance | Uncertain tax positions and interest, and other | Provision for income taxes |


| Con Edison Con Edison of New York | (Millions of Dollars) | Accrued liability – asbestos suits | Regulatory assets – asbestos suits | Accrued liability – workers’ compensation | Regulatory assets – workers’ compensation |


our other debt, it would likely constitute a default under our credit facilities as well.
An interest coverage ratio represents the ratio of pre-tax earnings before fixed charges (interest expense and the interest portion of rent expense) to fixed charges.
Our interest coverage ratio, calculated as reported in Exhibit No.12.1 of this Annual Report on Form 10-K, was 5.5 and 8.9 in fiscal 2009 and 2008, respectively.
Our credit ratings and outlooks at April 27, 2009, are summarized below.
The rating issued by Moodys Investors Service, Inc.  (Moodys) is consistent with the rating and outlook reported in our Annual Report on Form 10-K for the fiscal year ended March 1, 2008.
In November 2008, Fitch Ratings Ltd.  (Fitch) reaffirmed our BBB+ rating, but assigned a negative outlook because it believed declines in our comparable store sales were significant.
In November 2008, Standard & Poors Ratings Services (Standard & Poors) downgraded our rating to BBB?
and assigned a stable outlook due to the current weak economic environment in the U. S.  This downgrade has not impacted our borrowing costs.


Dividends During fiscal 2012, Applieds Board of Directors declared three quarterly cash dividends in the amount of $0.09 per share each and one quarterly cash dividend in the amount of $0.08 per share.
During fiscal 2011, Applieds Board of Directors declared three quarterly cash dividends in the amount of $0.08 per share each and one quarterly cash dividend in the amount of $0.07 per share.
During fiscal 2010, Applieds Board of Directors declared three quarterly cash dividends in the amount of $0.07 per share each and one quarterly cash dividend in the amount of $0.06.
Dividends declared during fiscal 2012, 2011 and 2010 amounted to $438 million, $408 million and $361 million, respectively.
Applied currently anticipates that it will continue to pay cash dividends on a quarterly basis in the future, although the declaration and amount of any future cash dividends are at the discretion of the Board of Directors and will depend on Applieds financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination that cash dividends are in the best interests of Applieds stockholders.


| Year ended December 31 | Dollars in millions, except per share data | SUMMARYOFOPERATIONS | Interest income | Interest expense | Net interest income | Noninterest income (b) | Total revenue | Provision for credit losses (c) | Noninterest expense | Income from continuing operations before income taxes and noncontrolling interests | Income taxes | Income from continuing operations before noncontrolling interests | Income from discontinued operations (net of income taxes of zero, $338, $54, $63 and $66)(d) | Net income | Less: Net income (loss) attributable to noncontrolling interests | Preferred stock dividends (e) | Preferred stock discount accretion and redemptions (e) | Net income attributable to common shareholders (e) | PERCOMMONSHARE | Basic earnings | Continuing operations | Discontinued operations (d) | Net income | Diluted earnings | Continuing operations | Discontinued operations (d) | Net income | Book value | Cash dividends declared | 2012 | Stock based compensation | Tax benefit recognized in net income | Windfall tax benefit, net |


Segment Expenses.
Commission and brokerage decreased by 4.9% to $283.4 million in 2016 compared to $298.2 million in 2015.
The year over year decrease was mainly due to the impact of the decrease in premiums earned.
Segment other underwriting expenses increased slightly to $35.5 million in 2016 compared to $34.3 million in 2015.
properly allocating responsibility and/or liability for asbestos or environmental damage; (d) changes in underlying laws and judicial interpretation of those laws; (e) the potential for an asbestos or environmental claim to involve many insurance providers over many policy periods; (f) questions concerning interpretation and application of insurance and reinsurance coverage; and (g) uncertainty regarding the number and identity of insureds with potential asbestos or environmental exposure.
Due to the uncertainties discussed above, the ultimate losses attributable to A&E, and particularly asbestos, may be subject to more variability than are non-A&E reserves and such variation could have a material adverse effect on our financial condition, results of operations and/or cash flows.
See also ITEM 8, “Financial Statements and Supplementary Data” - Notes 1 and 3 of Notes to the Consolidated Financial Statements.


| Years Ended March 31, | (In millions) | Service cost—benefits earned during the year | Interest cost on projected benefit obligation | Amortization of unrecognized loss and priorservice costs | Net periodic postretirement expense |


Employee Benefit Plans Stock-Based Compensation During 2018, EOG maintained various stock-based compensation plans as discussed below.
EOG recognizes compensation expense on grants of stock options, SARs, restricted stock and restricted stock units, performance units and grants made under the EOG Resources, Inc.
Employee Stock Purchase Plan (ESPP).
Stock-based compensation expense is calculated based upon the grant date estimated fair value of the awards, net of forfeitures, based upon EOG's historical employee turnover rate.
Compensation expense is amortized over the shorter of the vesting period or the period from date of grant until the date the employee becomes eligible to retire without company approval.


| July 31, 2015 July 31, 2014 | (In millions) | Classification on balance sheets: | Cash and cash equivalents | Investments | Funds held for customers | Long-term investments | Total cash and cash equivalents, investments and funds held for customers |


| Year Ended December 31, | 2016 | Key performance indicators: | Clients | Clients (based on parent company grouping) | Sales teams | Annual revenue retention rate |


| As of or for the year ended December 31, Average | (in millions) | Commercial paper | Other borrowed funds | Total short-term borrowings | Obligations of Firm-administered multi-seller conduits(a) | Securities loaned or sold under agreements to repurchase: | Securities sold under agreements to repurchase(b) | Securities loaned(c) | Total securities loaned or sold under agreements to repurchase(d) | Senior notes | Trust preferred securities(e) | Subordinated debt(e) | Structured notes | Total long-term unsecured funding | Credit card securitization(a) | Other securitizations(a)(f) | FHLB advances | Other long-term secured funding(g) | Total long-term secured funding | Preferred stock(h) | Common stockholders’ equity(h) |


| For the years ended December 31, | 2012 | (in thousands) | Operating revenues | Operation and maintenance expense | Operating expenses, net | Income from continuing operations before income taxes |


| December 31, 2007 December 31, 2006 | (Dollars in millions) | Commercial – domestic-4 | Commercial real estate | Commercial lease financing | Commercial – foreign | 16,757 | Small business commercial – domestic | Total commercial utilized criticized exposure |


OTHER U. S.  PLANS International Paper sponsors the International Paper Company Salaried Savings Plan and the International Paper Company Hourly Savings Plan, both of which are tax-qualified defined contribution 401(k) savings plans.
The following table presents information related to the major classes of assets and liabilities that were classified as held for sale in our consolidated balance sheet (in millions):
1 Consists of total assets relating to North America refranchising of $9 million and Latin America bottling operations of $210 million, which are included in the Bottling Investments operating segment.2 Consists of total liabilities relating to North America refranchising of $5 million and Latin America bottling operations of $32 million, which are included in the Bottling Investments operating segment.
We determined that the operations included in the table above did not meet the criteria to be classified as discontinued operations under the applicable guidance.
Discontinued Operations In October 2017, the Company and ABI completed the transition of ABI’s controlling interest in CCBA to the Company for $3,150 million.
We plan to hold a controlling interest in CCBA temporarily.
We anticipate that we will divest a portion of our ownership interest in 2019, which will result in the Company no longer having a controlling interest in CCBA.
Accordingly, we have presented the financial position and results of operations of CCBA as discontinued operations in the accompanying consolidated financial statements.
As CCBA met the criteria to be classified as held for sale, we were required to record their assets and liabilities at the lower of carrying value or fair value less any costs to sell and present the related assets and liabilities as separate line items in our consolidated balance sheet.
During the year ended December 31, 2018, we recorded an impairment charge of $554 million, reflecting management’s view of the proceeds that are expected to be received based on revised projections of future operating results and foreign currency exchange rate fluctuations.
Refer to Note 17.
Upon consolidation of CCBA, we remeasured our previously held equity interests in CCBA and its South African subsidiary to fair value and recorded a gain on the remeasurement of $150 million.
The fair values in our previously held equity investments in CCBA and its South African subsidiary were determined using income approaches, including discounted cash flow models (a Level 3 measurement), and the Company believes the inputs and assumptions used are consistent with those hypothetical marketplace participants would use.
We recorded $1,805 million for the noncontrolling interests of CCBA.
The fair value of the noncontrolling interests was determined in a manner similar to our previously held equity investments.
The preliminary goodwill recorded at the time of the transaction was $4,262 million, none of which is tax deductible.
This goodwill is in part due to the significant synergies that are expected from the consolidation of the bottling system in Southern and East Africa, especially within the country of South Africa.
As a result, upon finalization of purchase accounting $411 million of the final goodwill balance of $4,186 million was allocated to other reporting units expected to benefit from this transaction.
During 2018, the Company acquired additional bottling operations in Zambia and Botswana, which have also been included in assets held for sale — discontinued operations and liabilities held for sale — discontinued operations.
Notes to Consolidated Financial Statements Note 1.
Summary of Significant Accounting Policies – (Continued) accounted for under the previous accounting guidance, FTB No.85-4, where the carrying value of life settlement contracts was the cash surrender value, and revenue was recognized and included in Other revenues on the Consolidated Statements of Income when the life insurance policy underlying the life settlement contract matured.
Under the previous accounting guidance, maintenance expenses were expensed as incurred and included in Other operating expenses on the Consolidated Statements of Income.
CNA’s investments in life settlement contracts were $129 million and $115 million at December 31, 2008 and 2007 and are included in Other assets on the Consolidated Balance Sheets.
The cash receipts and payments related to life settlement contracts are included in Cash flows from operating activities on the Consolidated Statements of Cash Flows for all periods presented.
The fair value of each life insurance policy is determined as the present value of the anticipated death benefits less anticipated premium payments for that policy.
These anticipated values are determined using mortality rates and policy terms that are distinct for each insured.
The discount rate used reflects current risk-free rates at applicable durations and the risks associated with assessing the current medical condition of the insured, the potential volatility of mortality experience for the portfolio and longevity risk.
CNA used its own experience to determine the fair value of its portfolio of life settlement contracts.
The mortality experience of this portfolio of life insurance policies may vary by quarter due to its relatively small size.
The following table details the values for life settlement contracts as of December 31, 2008.


| Year Ended December 31, | 2011 | One- to four-family | Home equity | Total losses on loans receivable measured at fair value | Losses on REO measured at fair value | Recorded Investment  December 31, | 2011 | Loans collectively evaluated for impairment | Loans individually evaluated for impairment (TDRs) | Total recorded investment in loans receivable |


| 2014 2013 | Beginning balance | Gross increases in unrecognized tax benefits – prior year tax positions | Gross increases in unrecognized tax benefits – current year tax positions | Settlements with taxing authorities | Lapse of statute of limitations | Foreign exchange gains and losses | Ending balance |


| For the Year Ended December 31, | 2009 | (In thousands, except per share data) | Statement of Income Data: | Net sales | Net income | Net income per common share: | — basic | — diluted | Weighted average common shares outstanding: | — basic | — diluted | Cash dividends declared per common share | Balance Sheet Data: | Total assets | Total debt obligations-1 | Stockholders’ equity |


| Years Ended | September 25, 2010 | Amount | Product Sales | Breast Health | Diagnostics | GYN Surgical | Skeletal Health | $1,414,900 |


| 2006 Compared with 2005 2005 Compared with 2004 | Total | Change | (Increase (decrease) in thousands) | Interest income | Loans and leases, including fees | Deposits at banks | Federal funds sold and agreements to resell securities | Trading account | Investment securities | U.S. Treasury and federal agencies | Obligations of states and political subdivisions | Other | Total interest income | Interest expense | Interest-bearing deposits | NOW accounts | Savings deposits | Time deposits | Deposits at foreign office | Short-term borrowings | Long-term borrowings | Total interest expense |


SHARE-BASED COMPENSATION On December 31, 2015, the Company had a number of open share-based compensation plans, which provide for the grant of time-based options and performance-based options, time-based restricted stock units and performance-based restricted stock units, and various other share-based grants to employees.
All of the Companys share-based compensation plans under which any options, restricted stock units or other share-based grants are outstanding as at December 31, 2015 are described below.
The compensation cost that has been recognized for those plans for the year ended December 31, 2015 was $64 million (2014: $52 million; 2013: $42 million).
The total income tax benefit recognized in the statement of operations for share-based compensation arrangements for the year ended December 31, 2015 was $15 million (2014: $12 million; 2013: $9 million).2012 Equity Incentive Plan This plan, which was established on April 25, 2012, provides for the granting of incentive stock options, time-based or performancebased non-statutory stock options, share appreciation rights, restricted shares, time-based or performance-based restricted share units (RSUs), performance-based awards and other share-based grants or any combination thereof (collectively referred to as Awards) to employees, officers, directors and consultants (Eligible Individuals) of the Company.
The Board of Directors also adopted a sub-plan under the 2012 plan to provide an employee sharesave scheme in the United Kingdom.
There were approximately 23 million shares available for grant under this plan.
Options are exercisable on a variety of dates, including from the second, third, fourth or fifth anniversary of grant.
Unless terminated sooner by the Board of Directors, the 2012 Plan will expire 10 years after the date of its adoption.
That termination will not affect the validity of any grants outstanding at that date.2008 Share Purchase and Option Plan This plan, which was established on April 23, 2008, provides for the granting of time and performance-based options, restricted stock units and various other share-based grants at fair market value to employees of the Company.
The 2008 plan was terminated as at April 25, 2012 and no further grants will be made under this plan.
Any shares available for grant under the 2008 plan were included in the 2012 Equity Incentive Plan availability.
Options are exercisable on a variety of dates, including from the third, fourth or fifth anniversary of grant.
Employee Stock Purchase Plans The Company adopted the Willis Group Holdings 2001 North America Employee Share Purchase Plan, which expired on May 31, 2011 and the Willis Group Holdings 2010 North America Employee Stock Purchase Plan, which expires on May 31, 2020.
These plans provide certain eligible employees in the United States and Canada the ability to contribute payroll deductions to the purchase of Willis Group Holdings plc shares at the end of each offering period.
Option Valuation Assumptions The fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table.
Expected volatility is based on historical volatility of the Companys stock.
The Company uses the simplified method set out in Accounting Standard Codification (ASC) 718-10-S99 to derive the expected term of options granted as it does not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term.


Competition The subset of DERs that produce electricity are collectively referred to as distributed generation (DG).
DG includes solar energy production facilities, fuel cells and micro-turbines, and provide an alternative source of electricity for the Utilities electric delivery customers.
Typically, customers with DG remain connected to the utilitys delivery system and pay a different rate.
Gas delivery customers have electricity and oil as alternatives, and steam customers have electricity and natural gas as alternative sources for heating and cooling their buildings.
Micro-grids and community-based micro-grids enable distributed generation to serve multiple locations and multiple customers.
Other DERs, such as energy storage, demand reduction and energy efficiency investments, provide ways for the energy consumers within the Utilities service areas to manage their energy usage.
The following table shows the aggregate capacities of the DG projects connected to the Utilities distribution systems at the end of the last five years:


In May 2017, the Company entered into an agreement with 50 HYMC Owner LLC, for the lease of approximately 847,000 square feet of office space located at 50 Hudson Yards, New York, New York.
The term of the lease is twenty years from the date that rental payments begin, expected to occur in May 2023, with the option to renew for a specified term.
The lease requires annual base rental payments of approximately $51 million per year during the first five years of the lease term, increasing every five years to $58 million, $66 million and $74 million per year (or approximately $1.2 billion in base rent over its twenty-year term).
This lease is classified as an operating lease and, as such, is not recorded as a liability on the consolidated statements of financial condition.
Rent expense and certain office equipment expense under lease agreements amounted to $132 million, $134 million and $136 million in 2017, 2016 and 2015, respectively.


| Years Ended December 31, | 2008 | (In millions) | Current: | Federal | State and local | Foreign | Subtotal | Deferred: | Federal | State and local | Foreign | Subtotal | Provision for income tax |


| December 31, 2018 December 31, 2017 | AmortizedCost or Cost | (in millions) | Short-term investments and cash equivalents | Fixed maturities: | Corporate securities | Commercial mortgage-backed securities | Residential mortgage-backed securities-1 | Asset-backed securities-2 | Foreign government bonds | U.S. government authorities and agencies and obligations of U.S. states | Total fixed maturities-3 | Equity securities | Total assets supporting experience-rated contractholder liabilities-4 |