increased revenue.
These increases were offset by cost reductions and $22 million in CRT settlement legal fees incurred in the first quarter of fiscal 2017 that did not recur in fiscal 2018.
Our Domestic segment incurred $9 million of restructuring charges in fiscal 2018 and $31 million of restructuring charges in fiscal 2017.
The restructuring charges in fiscal 2018 related to the Best Buy Mobile plan that began in the fourth quarter of fiscal 2018, whereas the charges in fiscal 2017 related primarily to the Renew Blue Phase 2 plan that began in the first quarter of fiscal 2017.
Refer to Note 4, Restructuring Charges, of the Notes to Consolidated Financial Statements, included in Item 8, Financial Statements and Supplementary Data, of this Annual Report on Form 10-K for further information about our restructuring activities.
Our Domestic segment’s operating income decreased $12 million in fiscal 2018 compared to fiscal 2017.
In addition, the operating income rate decreased to 4.5% of revenue in fiscal 2018 compared to 4.9% of revenue in the prior year.
The decrease was primarily driven by the gross profit rate decline and increase in SG&A described above.
Fiscal 2017 Results Compared With Fiscal 2016 Domestic segment revenue of $36.2 billion in fiscal 2017 decreased 0.3% compared to the prior year.
The components of the 0.3% revenue decrease in the Domestic segment in fiscal 2017 were as follows:


COMMODITY PRICE RISK We purchase raw material commodities such as cobalt chrome, titanium, tantalum, polymer and sterile packaging.
We enter into supply contracts generally with terms of 12 to 24 months, where available, on these commodities to alleviate the effect of market fluctuation in prices.
As part of our risk management program, we perform sensitivity analyses related to potential commodity price changes.
A 10 percent price change across all these commodities would not have a material effect on our consolidated financial position, results of operations or cash flows.


Information and user access fees consist of information services fees and monthly user fees.
We charge information services fees for Corporate BondTicker to our broker-dealer clients, institutional investor clients and data only subscribers.
The information services fee is a flat monthly fee, based on the level of service.
We also generate information services fees from the sale of bulk data to certain institutional investor clients and data only subscribers.
Institutional investor clients trading U. S.  high-grade corporate bonds are charged a monthly user access fee for the use of our platform.
The fee, billed quarterly, is charged to the client based on the number of the client’s users.
To encourage institutional investor clients to execute trades on our U. S.  high-grade corporate bond platform, we reduce these information and user access fees for such clients once minimum quarterly trading volumes are attained.
Revenues Our revenues for the years ended December 31, 2004 and 2003, and the resulting dollar and percentage change, are as follows:


| In millions of dollars at December 31, 2015 Duewithin1 year Over 1yearbutwithin5 years Over 5years Total | Corporate loan | In U.S. offices | Commercial and industrial loans | Financial institutions | Mortgage and real estate | Lease financing | Installment, revolving credit, other | In offices outside the U.S. | Total corporate loans | Fixed/variablepricing of corporateloans withmaturities due afterone year-1 | Loans at fixedinterest rates | Loans at floating oradjustable interestrates | Total |


| December 31 | 2009 | (In thousands) | Commitments to extend credit | Home equity lines of credit | Commercial real estate loans to be sold | Other commercial real estate and construction | Residential real estate loans to be sold | Other residential real estate | Commercial and other | Standby letters of credit | Commercial letters of credit | Financial guarantees and indemnification contracts | Commitments to sell real estate loans |


| Fair Value Measurements Using: | Quoted Price in Active Markets (Level 1) | (In millions) | December 31, 2013 | Equity securities: | U.K. quoted equities-1 | Overseas quoted equities-2 | Total equity securities | Debt securities: | U.K. Government bonds-3 | U.K. corporate bonds-4 | Total debt securities | Cash | Fair value of plan assets | December 31, 2012 | Equity securities: | U.K. quoted equities-1 | Overseas quoted equities-2 | Total equity securities | Debt securities: | U.K. Government bonds-3 | U.K. corporate bonds-4 | Total debt securities | Cash | Fair value of plan assets |


| As of December 31, | (in millions, except ratio data) | BALANCE SHEET DATA: | Total assets | Loans held for sale, at fair value | Other loans held for sale | Loans and leases | Allowance for loan and lease losses | Total securities | Goodwill | Total liabilities | Total deposits-6 | Federal funds purchased and securities sold under agreements to repurchase | Other short-term borrowed funds | Long-term borrowed funds | Total stockholders’ equity | OTHER BALANCE SHEET DATA: | Asset Quality Ratios: | Allowance for loan and lease losses as a % of total loans and leases | Allowance for loan and lease losses as a % of nonperforming loans and leases | Nonperforming loans and leases as a % of total loans and leases | Capital Ratios:-7 | CET1 capital ratio-8 | Tier 1 capital ratio-9 | Total capital ratio-10 | Tier 1 leverage ratio-11 |


| Counterparty Credit Valuation Adjustment on Assets AIG’s Own Credit Valuation Adjustment on Liabilities | Trading securities | Loans and other assets | Derivative assets | Other liabilities | Derivative liabilities* | Decrease in assets | Net pre-tax decrease to other income |


| Twelve Months Ended December 31, Change | 2018 vs. 2017 | Operating Expenses | (In millions) | Consolidated cost of services | Consolidated selling, general and administrative expenses | Consolidated depreciation and amortization expense | Consolidated operating expenses |


| Cash $4,082 | Customer-related intangible assets | Acquired technology | Trade name | Other intangible assets | Other assets | Liabilities | Deferred income tax liabilities | Total identifiable net assets | Goodwill | Noncontrolling interest | Total purchase consideration |


| Reporting Segment Fiscal 2008 Gross Profit Fiscal 2007 Gross Profit % Increase/ (Decrease) | Consumer Foods | Food and Ingredients | International Foods | Total |


Reinsurance recoverables at December 31, are as follows:


| At September 30, | Balance Sheet Data: | (in millions, except per share data) | Total assets | Current portion of long-term debt | Current portion of accrued litigation | Long-term debt | Long-term accrued litigation | Total equity | Dividend declared and paid per common share |


shares were transferred to our corporate operations during the first quarter of 2006.
Subsequent to this transfer, changes in market value of the transferred shares are reflected within Corporate and Other results.2005 to 2004 Annual Comparison.
Adjusted operating income decreased $10 million, from a loss of $245 million in 2004 to a loss of $255 million in 2005.
The segments results for 2005 include our share of earnings from Wachovia Securities, on a pre-tax basis and excluding transition costs, of $217 million, compared to $172 million in 2004.
The segments results also include expenses of $452 million in 2005 related to obligations and costs we retained in connection with the contributed businesses primarily for litigation and regulatory matters, compared to $227 million in 2004.
These expenses included accruals for estimated settlement costs related to market timing issues.
Our results for 2005 reflect a decrease of $174 million in transition costs, from $194 million in 2004 to $20 million in 2005, reflecting the completion of the business integration during the first half of 2005.
In addition, results include income of zero and $4 million from our equity sales and trading operations for 2005 and 2004, respectively.


1 Includes tax expense of $265 million (or 1.9 percent), primarily related to deferred tax expense on certain current year undistributed foreign earnings that are not considered indefinitely reinvested and amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties.2 Includes an approximate 0.1 percent impact to our effective tax rate related to charges recorded by our equity method investees.
Refer to Note 17.3 Includes a tax benefit of $34 million related to the remeasurement of our equity investment in CCE to fair value upon our acquisition of CCEs North American business.
The tax benefit reflects the impact of reversing deferred tax liabilities associated with our equity investment in CCE prior to the acquisition.
Refer to Note 2.4 Includes an approximate 37 percent effective tax rate on charges related to preexisting relationships with CCE.
Refer to Note 2.5 Includes an approximate 0.4 percent impact to our effective tax rate related to the sale of our Norwegian and Swedish bottling operations.
Refer to Note 2.6 Includes an approximate 0.5 percent impact to our effective tax rate, primarily related to the Companys productivity, integration and restructuring initiatives, transaction costs and charitable contributions.
Refer to Note 17.7 Includes an approximate 0.5 percent impact to our effective tax rate on charges related to the repurchase of certain long-term debt and costs associated with the settlement of treasury rate locks issued in connection with the debt tender offer, the loss related to the remeasurement of our Venezuelan subsidiarys net assets, other-than-temporary impairment charges and a donation of preferred shares in one of our equity method investees.
Refer to Note 17.8 Includes a $31 million (or 0.2 percent) tax expense related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, and other tax matters in certain domestic jurisdictions.9 Includes a $16 million (or 0.2 percent) tax benefit related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in various international jurisdictions.10 Includes an approximate 0.1 percent impact to our effective tax rate related to charges recorded by our equity method investees.
Refer to Note 17.11 Includes an approximate 0.6 percent impact to our effective tax rate related to restructuring charges and asset impairments.
Refer to Note 17.12 Includes an approximate negative 0.2 percent impact to our effective tax rate related to the sale of all or a portion of certain investments.
Refer to Note 3.13 Includes an approximate 0.1 percent impact to our effective tax rate related to an other-than-temporary impairment of a cost method investment.
Refer to Note 17.14 Includes a $17 million (or 0.2 percent) tax charge related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in various international jurisdictions.15 Includes an approximate 0.2 percent impact on our effective tax rate related to impairments of assets and investments in our bottling operations.
Refer to Note 17.16 Includes a $10 million (or 0.1 percent) impact on our effective tax rate related to recording valuation allowances offsetting deferred tax assets booked in prior periods.17 Includes an approximate 2.7 percent impact to our effective tax rate related to charges recorded by our equity method investees.
Refer to Note 17.18 Includes an approximate 0.7 percent impact to our effective tax rate related to restructuring charges, contract termination fees, productivity initiatives and asset impairments.
Refer to Note 17.19 Includes a $22 million (or 0.3 percent) tax benefit related to amounts required to be recorded for changes to our uncertain tax positions, including interest and penalties, in certain domestic jurisdictions.20 Includes an approximate negative 0.2 percent impact to our effective tax rate related to the sale of all or a portion of our investments in certain bottling operations.
Refer to Note 17.


| Defined benefit pension plans | U.S. | For the year ended December 31, (in millions) | Components of net periodic benefit cost | Benefits earned during the period | Interest cost on benefitobligations | Expected return on plan assets | Amortization of unrecognizedamounts: | Prior service cost | Net actuarial loss | Curtailment (gain) loss | Settlement (gain) loss | Special termination benefits | Reported net periodic benefit costs |


| December 31, 2017 | AmortizedCost | (in millions) | Fixed maturities, available-for-sale: | U.S. Treasury securities and obligations of U.S. government authorities and agencies | Obligations of U.S. states and their political subdivisions | Foreign government bonds | U.S. corporate public securities | U.S. corporate private securities-1 | Foreign corporate public securities | Foreign corporate private securities | Asset-backed securities-2 | Commercial mortgage-backed securities | Residential mortgage-backed securities-3 | Total fixed maturities, available-for-sale-1 |


| December 31, | 2007 | Total | Facility | Committed | Credit Agreement | Uncommitted | Non-U.S |


clients’ brokerage accounts.
We generally record revenues received from administered assets as distribution fees.
We do not exercise management discretion over these assets and do not earn a management fee.
These assets are not reported on our Consolidated Balance Sheets.
AUA also includes certain assets on our Consolidated Balance Sheets for which we do not provide investment management services and do not recognize management fees, such as investments in non-affiliated funds held in the separate accounts of our life insurance subsidiaries.
These assets do not include assets under advisement, for which we provide model portfolios but do not have full discretionary investment authority.
The following table presents detail regarding our AUM and AUA:


Gains and losses on derivatives related to market-making activities and other derivatives The Firm makes markets in derivatives in order to meet the needs of customers and uses derivatives to manage certain risks associated with net open risk positions from its market-making activities, including the counterparty credit risk arising from derivative receivables.
All derivatives not included in the hedge accounting or specified risk management categories above are included in this category.
Gains and losses on these derivatives are primarily recorded in principal transactions revenue.
Refer to Note 6 for information on principal transactions revenue.
Credit derivatives Credit derivatives are financial instruments whose value is derived from the credit risk associated with the debt of a third-party issuer (the reference entity) and which allow one party (the protection purchaser) to transfer that risk to another party (the protection seller).
Credit derivatives expose the protection purchaser to the creditworthiness of the protection seller, as the protection seller is required to make payments under the contract when the reference entity experiences a credit event, such as a bankruptcy, a failure to pay its obligation or a restructuring.
The seller of credit protection receives a premium for providing protection but has the risk that the underlying instrument referenced in the contract will be subject to a credit event.
The Firm is both a purchaser and seller of protection in the credit derivatives market and uses these derivatives for two primary purposes.
First, in its capacity as a market-maker, the Firm actively manages a portfolio of credit derivatives by purchasing and selling credit protection, predominantly on corporate debt obligations, to meet the needs of customers.
Second, as an end-user, the Firm uses credit derivatives to manage credit risk associated with lending exposures (loans and unfunded commitments) and derivatives counterparty exposures in the Firms wholesale businesses, and to manage the credit risk arising from certain financial instruments in the Firms market-making businesses.
Following is a summary of various types of credit derivatives.


| Amount (In Thousands) | Senior Secured Transition Bonds, Series A: | Tranche A-1 -5.51% due October 2013 | Tranche A-2 -5.79% due October 2018 | Tranche A-3 -5.93% due June 2022 | Total senior secured transition bonds |


| Options Weighted Average Exercise Price Weighted Average Contractual Term (Years) Aggregate Intrinsic Value (in millions) | Outstanding as of January 1, 2004 | Granted | Exercised | Cancelled | Outstanding as of December 31, 2004 | Granted | Options assumed in merger with SpectraSite, Inc. | Exercised | Cancelled | Outstanding as of December 31, 2005 | Granted | Exercised | Cancelled | Outstanding as of December 31, 2006 | Exercisable as of December 31, 2004 | Exercisable as of December 31, 2005 | Exercisable as of December 31, 2006 | Vested or expected to vest as of December 31, 2006 |


| 2011 $257,971 | 2012 | 2013 | 2014 | 2015 | Thereafter | Total |


| December 31, 2009 Carrying Amounts Estimated Fair Value 2008 Carrying Amounts Estimated Fair Value | Marketable Securities | Notes Payable | Mortgages Payable | Construction Payable | Mandatorily Redeemable Noncontrolling Interests(termination dates ranging from 2019 – 2027) |


| 2012 2011 2010 | (In thousands) | Stock options | Restricted stock | ESPP | Total stock-based compensation expense | Income tax benefit |


Oil and Gas Prices We expect our 2011 average prices for the oil and gas production from each of our operating areas to differ from the NYMEX price as set forth in the following table.
The expected ranges for prices are exclusive of the anticipated effects of the financial contracts presented in the Commodity Price Risk Management section below.
The NYMEX price for oil is determined using the monthly average of settled prices on each trading day for benchmark West Texas Intermediate crude oil delivered at Cushing, Oklahoma.
The NYMEX price for gas is determined using the first-of-month South Louisiana Henry Hub price index as published monthly in Inside FERC.


| Year Ended December | $ in millions | Compensation and benefits | Brokerage, clearing, exchangeand distribution fees | Market development | Communications and technology | Depreciation and amortization | Occupancy | Professional fees | Other expenses | Totalnon-compensationexpenses | Total operating expenses | Total staff atperiod-end |


| At December 31,(in millions) 2012 2011 | Rating: | AAA | AA | A | BBB | Below investment grade | Total |


| Cash FlowsMillions 2012 2011 2010 | Cash provided by operating activities | Cash used in investing activities | Cash used in financing activities | Net change in cash and cashequivalents |


Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.  the asset.
Projected cash flows are discounted at a required market rate of return that reflects the relative risk of achieving the cash flows and the time value of money.
The cost approach, which estimates value by determining the current cost of replacing an asset with another of equivalent economic utility, was used, as appropriate, for certain assets for which the market and income approaches could not be applied due to the nature of the asset.
The cost to replace a given asset reflects the estimated reproduction or replacement cost for the asset, less an allowance for loss in value due to depreciation.
The fair value of US Airways’ Dividend Miles loyalty program liability was determined based on the weighted average equivalent ticket value of outstanding miles which were expected to be redeemed for future travel at December 9, 2013.
The weighted average equivalent ticket value contemplates differing classes of service, domestic and international itineraries and the carrier providing the award travel.
Pro-forma Impact of the Merger American’s unaudited pro-forma results presented below include the effects of the Merger as if it had been consummated as of January 1, 2012.
The pro- forma results include the depreciation and amortization associated with the acquired tangible and intangible assets, lease and debt fair value adjustments, the elimination of any deferred gains or losses, adjustments relating to reflecting the fair value of the loyalty program liability and the impact of income changes on profit sharing expense, among others.
In addition, the pro-forma results below reflect the impact of higher wage rates related to memorandums of understanding with US Airways’ pilots that became effective upon closing of the Merger, as well as the elimination of American’s reorganization items, net and Merger transition costs.
However, the pro-forma results do not include any anticipated synergies or other expected benefits of the Merger.
Accordingly, the unaudited pro-forma financial information below is not necessarily indicative of either future results of operations or results that might have been achieved had the acquisition been consummated as of January 1, 2012.


RECOURSE AND REPURCHASE OBLIGATIONS As discussed in Note 3 Loan Sale and Servicing Activities and Variable Interest Entities in the Notes To Consolidated Financial Statements in Item 8 of this Report, PNC has sold commercial mortgage and residential mortgage loans directly or indirectly in securitizations and whole-loan sale transactions with continuing involvement.
One form of continuing involvement includes certain recourse and loan repurchase obligations associated with the transferred assets in these transactions.
Commercial Mortgage Loan Recourse Obligations We originate, close, and service certain multi-family commercial mortgage loans which are sold to FNMA under FNMAs Delegated Underwriting and Servicing (DUS) program.
We participated in a similar program with the FHLMC.
Under these programs, we generally assume up to a one-third pari passu risk of loss on unpaid principal balances through a loss share arrangement.
At December 31, 2011 and December 31, 2010, the unpaid principal balance outstanding of loans sold as a participant in these programs was $13.0 billion and $13.2 billion, respectively.
The potential maximum exposure under the loss share arrangements was $4.0 billion at both December 31, 2011 and December 31, 2010.
We maintain a reserve for estimated losses based on our exposure.
The reserve for losses under these programs totaled $47 million and $54 million as of December 31, 2011 and December 31, 2010, respectively, and is included in Other liabilities on our Consolidated Balance Sheet.
If payment is required under these programs, we would not have a contractual interest in the collateral underlying the mortgage loans on which losses occurred, although the value of the collateral is taken into account in determining our share of such losses.
Our exposure and activity associated with these recourse obligations are reported in the Corporate & Institutional Banking segment.
Residential Mortgage Loan and Home Equity Repurchase Obligations While residential mortgage loans are sold on a non-recourse basis, we assume certain loan repurchase obligations associated with mortgage loans we have sold to investors.
These loan repurchase obligations primarily relate to situations where PNC is alleged to have breached certain origination covenants and representations and warranties made to purchasers of the loans in the respective purchase and sale agreements.
Residential mortgage loans covered by these loan repurchase obligations include first and second-lien mortgage loans we have sold through Agency securitizations, Non-Agency securitizations, and whole-loan sale transactions.
As discussed in Note 3 in the Notes To Consolidated Financial Statements in Item 8 of this Report, Agency securitizations consist of mortgage loans sale transactions with FNMA, FHLMC, and the Government National Mortgage Association (GNMA) program, while Non-Agency securitizations and whole-loan sale transactions consist of mortgage loans sale transactions with private investors.
Our historical exposure and activity associated with Agency securitization repurchase obligations has primarily been related to transactions with FNMA and FHLMC, as indemnification and repurchase losses associated with Federal Housing Agency (FHA) and Department of Veterans Affairs (VA)-insured and uninsured loans pooled in GNMA securitizations historically have been minimal.
Repurchase obligation activity associated with residential mortgages is reported in the Residential Mortgage Banking segment.
PNCs repurchase obligations also include certain brokered home equity loans/lines that were sold to a limited number of private investors in the financial services industry by National City prior to our acquisition.
PNC is no longer engaged in the brokered home equity lending business, and our exposure under these loan repurchase obligations is limited to repurchases of the whole-loans sold in these transactions.
Repurchase activity associated with brokered home equity lines/loans are reported in the Non-Strategic Assets Portfolio segment.
Loan covenants and representations and warranties are established through loan sale agreements with various investors to provide assurance that PNC has sold loans to


| Years Ended December 31, | 2013 | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Premiums | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest credited to fixed accounts | Benefits, claims, losses and settlement expenses | Amortization of deferred acquisition costs | Interest and debt expense | General and administrative expense | Total expenses | Operating earnings |


| Balance at June 1, 2007 $3,760 | Additions based on tax positions related to the current year | Additions for tax positions of prior years | Reductions for tax positions of prior years | Settlements with taxing authorities | Balance at May 31, 2008 |


| 2010 2009 2008 | Volatility | Risk-free interest rate | Dividend yield | Post-vest forfeiture rate | Suboptimal exercise factor |


| ($ in millions) 2005 2004 | Land | Buildings and leasehold improvements | Furniture and equipment | Timeshare properties | Construction in progress | 3,126 | Accumulated depreciation | $2,341 |


(a) Effective January 1, 2001, CNA established a new life insurance company, CNA Group Life Assurance Company (CNAGLA).
Further, on January 1, 2001, $1.1 billion of reserves were transferred from CCC to CNAGLA.
(b) Effective October 31, 2002, CNA sold CNA Reinsurance Company Limited.
As a result of the sale, net reserves were reduced by $1.3 billion.
(c) Effective January 1, 2010, CNA ceded approximately $1.5 billion of net asbestos and environmental pollution (A&EP) claim and allocated claim adjustment expense reserves relating to its continuing operations under a retroactive reinsurance agreement with an aggregate limit of $4.0 billion, as further discussed in Note 9 of the Notes to Consolidated Financial Statements included under Item 8.
PART IVItem 15.
Exhibits, Financial Statement Schedules(1) Financial StatementsOur Consolidated Financial Statements have been prepared in accordance with Item 8.
Financial Statements and Supplementary Data and are included beginning on page F-1 of this report.
(2) Financial Statement SchedulesSchedule II: Valuation and Qualifying Accounts for the three years ended December 31, 2018 are included on page 61.


ALM/Other We migrate qualifying affluent customers, and their related deposit balances and associated Net Interest Income from the Global Consumer and Small Business Banking segment to our PB&I customer service model.
In order to provide a view of organic growth in PB&I, we allocate the original migrated deposit balances, including attrition, as well as the corresponding Net Interest Income at original spreads from PB&I to ALM/Other.
Net Income decreased $88 million, or 13 percent, primarily due to a decrease in Net Interest Income partially offset by an increase in Noninterest Income.
Net Interest Income decreased $156 million driven by a significant reduction from ALM activities, partially offset by higher Net Interest Income on deposits due to migration of certain banking relationships from Global Consumer and Small Business Banking.
During 2006 and 2005, $10.7 billion and $16.9 billion of average deposit balances were migrated from the Global Consumer and Small Business Banking segment to Global Wealth and Investment Management.
The total cumulative average impact of migrated balances was $48.5 billion in 2006 compared to $39.3 billion for 2005.
Noninterest Income increased $101 million primarily reflecting nonrecurring items in 2006.


| Principal Properties Leased: Primary Use Floor Space LeaseExpiration(fiscal year) Renewals | Bedford, MA (c) | Danbury, CT | Danbury, CT | Marlborough, MA | Marlborough, MA | Methuen, MA | Alajuela, Costa Rica | Manchester, England | Westford, MA | Westford, MA | Hicksville, NY |


| Project Name Project Type Date Location Impairment (in millions) | Ede Este -1 | Wolf Hollow | Granite Ridge | Colombia I | Zeg | Bujagali | El Faro |


| Fiscal 2009  Total Stores at End of Fiscal Year Fiscal 2010 Fiscal 2011 | Stores Opened | Best Buy Europe — small box-1 | Best Buy Europe — big box-2 | Canada | Future Shop | Best Buy | Best Buy Mobile | China | Five Star | Best Buy-3 | Mexico | Best Buy | Turkey | Best Buy-3 | Total International segment stores |


| July 31, | (In thousands) | Deferred tax assets: | Accruals and reserves not currently deductible | Accrued and deferred compensation | Loss and tax credit carryforwards | Intangible assets | Property and equipment | Share-based compensation | Other, net | Total deferred tax assets | Deferred tax liabilities: | Other, net | Total deferred tax liabilities | Total net deferred tax assets | Valuation allowance | Total net deferred tax assets, net of valuation allowance |


| % Change in Sales — 2010 vs 2009 | Fine & Beauty Care | North America | EAME | Local Currency | Latin America | Local Currency | Greater Asia | Local Currency | Total | Local Currency |


| December 31, 2008 | Aaa | Cost or | Amortized | Cost | (In millions) | 2003 & Prior | 2004 | 2005 | 2006 | 2007 | 2008 | Total |


| In millions 2018 2017 2016 | Net Sales | Operating Profit (Loss) | Riverdale mill conversion | Abandoned property removal | Operating Profit Before Special Items |


| (in days) December 31, | 2014 | Days of sales outstanding (DSO)(1) | Days of supply in inventory (DIO)(2) | Days of purchases outstanding (DPO)(3) | Cash conversion cycle |


Nonqualified and Other Pension Plans
n/a = not applicable The asset valuation method used to calculate the expected return on plan assets component of net period benefit cost for the Qualified Pension Plan recognizes 60 percent of the prior years market gains or losses at the next measurement date with the remaining 40 percent spread equally over the subsequent four years.
Net periodic postretirement health and life expense was determined using the projected unit credit actuarial method.
Gains and losses for all benefit plans except postretirement health care are recognized in accordance with the standard amortization provisions of the applicable accounting guidance.
For the Postretirement Health Care Plans, 50 percent of the unrecognized gain or loss at the beginning of the fiscal year (or at subsequent remeasurement) is recognized on a level basis during the year.
Assumed health care cost trend rates affect the postretirement benefit obligation and benefit cost reported for the Postretirement Health and Life Plans.
The assumed health care cost trend rate used to measure the expected cost of benefits covered by the Postretirement Health and Life Plans is 7.00 percent for 2016, reducing in steps to 5.00 percent in 2021 and later years.
A onepercentage-point increase in assumed health care cost trend rates would have increased the service and interest costs, and the benefit obligation by $2 million and $34 million in 2015.
A onepercentage-point decrease in assumed health care cost trend rates would have lowered the service and interest costs, and the benefit obligation by $2 million and $29 million in 2015.
The Corporations net periodic benefit cost (income) recognized for the plans is sensitive to the discount rate and expected return


| Year ended December 31, | (Dollar amounts in millions) | Balance at January 1 | Additions for tax positions of prior years | Reductions for tax positions of prior years | Additions based on tax positions related to current year | Lapse of statute of limitations | Settlements | Foreign exchange translation | Positions assumed in BGI Transaction | Balance at December 31 | AUM | (in millions) | Retail | iShares | Institutional: | Active | Index | Institutional subtotal | Long-term | Cash management | Advisory-2 | Total | AUM | (in millions) | Equity | Fixed income | Multi-asset | Alternatives | Core | Currency and commodities-3 | Subtotal | Long-term | Cash management | Advisory-2 | Total |


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


| December 31, 2018 December 31, 2017 | ($ in millions) | Ingalls | Newport News | Technical Solutions | Total backlog |


| Fiscal Years Ended | March 29, 2008 | (millions) | Operating Income: | Wholesale | Retail | Licensing | 866.3 | Less: | Unallocated corporate expenses | Unallocated legal and restructuring charges | Total operating income |


In addition, we had $443 million and $502 million of purchased research and development intangible assets as of December 31, 2012 and December 31, 2011, respectively.
Goodwill as of December 31, 2012 as allocated to our U. S. , EMEA, Japan, and Inter-Continental reportable segments for purposes of our goodwill impairment testing is presented below.
Our U. S.  goodwill is further allocated to our U. S.  reporting units for our goodwill testing.
The following is a rollforward of our goodwill balance by reportable segment:


| Year Ended December 31, 2006 | Mobile Devices | Home and Networks Mobility | Enterprise Mobility Solutions | 206 | General Corporate | $213 |


| QualifiedPension NonqualifiedPension PostretirementBenefits | December 31 (Measurement Date) – in millions | Accumulated benefit obligation at end of year | Projected benefit obligation at beginning of year | Service cost | Interest cost | Amendments | Actuarial (gains)/losses and changes in assumptions | Participant contributions | Federal Medicare subsidy on benefits paid | Benefits paid | Projected benefit obligation at end of year | Fair value of plan assets at beginning of year | Actual return on plan assets | Employer contribution | Participant contributions | Federal Medicare subsidy on benefits paid | Benefits paid | Fair value of plan assets at end of year | Funded status | Amounts recognized on the consolidated balance sheet | Noncurrent asset | Current liability | Noncurrent liability | Net amount recognized on the consolidated balance sheet | Amounts recognized in AOCI consist of: | Prior service cost (credit) | Net actuarial loss (gain) | Amount recognized in AOCI |


| Useful Life December 31, 2004 December 31, 2003 | Transmission and distribution plant | Buildings and building improvements | Land | Other | Property and equipment, at cost | Less: accumulated depreciation | Property and equipment, net | (in millions) | Balance, January 1 | Additions based on tax positions related to the current year | Additions based on tax positions related to prior years | Additions from acquired subsidiaries | Reductions for tax positions of prior years | Reductions due to expiration of statutes of limitations | Settlements with tax authorities | Balance, December 31 | (in millions, except per share data) | 2015 | Revenue | Operating income | Net income attributable to Comcast Corporation | Basic earnings per common share attributable to Comcast Corporation shareholders | Diluted earnings per common share attributable to Comcast Corporation shareholders | Dividends declared per common share | 2014 | Revenue | Operating income | Net income attributable to Comcast Corporation(a) | Basic earnings per common share attributable to Comcast Corporation shareholders | Diluted earnings per common share attributable to Comcast Corporation shareholders | Dividends declared per common share | Year ended December 31 (in millions) | Operating income | Depreciation and amortization | Operating income before depreciation and amortization | Noncash share-based compensation | Termination of receivables monetization programs | Changes in operating assets and liabilities | Cash basis operating income | Payments of interest | Payments of income taxes | Proceeds from investments and other | Excess tax benefits under share-based compensation | Net cash provided by operating activities |


| Company Index December 31, 2011 December 31, 2012 December 31, 2013 December 31, 2014 December 31, 2015 December 31, 2016 | Delphi Automotive PLC -1 | S&P 500 -2 | Automotive Supplier Peer Group -3 |


After reviewing earnings per share and operating cash flow results against the performance objectives in the above table, the Personnel Committee set the Entergy Achievement Multiplier at 140% of target.
Under the terms of the Executive Incentive Plan, the Entergy Achievement Multiplier is automatically increased by 25 percent for the members of the Office of the Chief Executive (including Mr.  Denault and Mr.  Smith, but not the other Named Executive Officers), subject to the Personnel Committee's discretion to adjust the automatic multiplier downward or eliminate it altogether.
In accordance with Section 162(m) of the Internal Revenue Code, the multiplier which Entergy refers to as the Management Effectiveness Factor is intended to provide the Committee, through the exercise of negative discretion, a mechanism to take into consideration the specific achievement factors relating to the overall performance of Entergy Corporation.
In January 2009, the Committee exercised its negative discretion to eliminate the Management Effectiveness Factor, reflecting the Personnel Committee's determination that the Entergy Achievement Multiplier, in and of itself without the Management Effectiveness Factor, was consistent with the performance levels achieved by management.
The annual incentive award for the Named Executive Officers (other than Mr.  Leonard, Mr.  Denault and Mr.  Smith) is awarded from an incentive pool approved by the Committee.
From this pool, each named executive officer's supervisor determines the annual incentive payment based on the Entergy Achievement Multiplier.
The supervisor has the discretion to increase or decrease the multiple used to determine an incentive award based on individual and business unit performance.
The incentive awards are subject to the ultimate approval of Entergy's Chief Executive Officer.


fund’s third-party administrator based upon the valuation of the underlying securities and instruments and primarily by applying a market or income valuation methodology as appropriate depending on the specific type of security or instrument held.
Funds-of-funds are valued based upon the net asset values of the underlying investments in hedge funds.
Private equity consists of interests in partnerships that invest in U. S.  and non-U.
S.  debt and equity securities.
Partnership interests are valued using the most recent general partner statement of fair value, updated for any subsequent partnership interest cash flows.
Real estate includes commercial properties, land and timberland, and generally includes, but is not limited to, retail, office, industrial, multifamily and hotel properties.
Real estate fund values are primarily reported by the fund manager and are based on valuation of the underlying investments which include inputs such as cost, discounted cash flows, independent appraisals and market based comparable data.
Risk Parity Funds are defined as engineered beta exposure to a wide range of asset classes and risk premia, including equity, interest rates, credit, and commodities.
Risk parity funds seek to provide high risk-adjusted returns while providing a high level of diversification relative to a traditional equity/fixed income portfolio.
These funds seek to achieve this objective with the use of modest leverage applied to lower-risk, more diverse asset classes.
Investments in Risk parity funds are valued using monthly reported net asset values.
Also included in these funds are related derivative instruments which are generally employed as asset class substitutes for managing asset/liability mismatches, or bona fide hedging or other appropriate risk management purposes.
Derivative instruments are generally valued by the investment managers or in certain instances by third-party pricing sources.
The fair value measurements using significant unobservable inputs (Level 3) at December 31, 2015 were as follows:


| (dollars in 000s) | Banking Ratios | Year Ended April 30, | Net Interest Margin: | Net interest income-1 | Divided by average earning assets | 9.06% | Pretax Return on Average Assets: | Pretax income | Divided by average assets | -1.03% |


Entergy New Orleans, Inc.  Management's Financial Discussion and Analysis 346 (1) Includes approximately $30 million annually for maintenance capital, which is planned spending on routine capital projects that are necessary to support reliability of service, equipment or systems and to support normal customer growth.
(2) Purchase obligations represent the minimum purchase obligation or cancellation charge for contractual obligations to purchase goods or services.
For Entergy New Orleans, almost all of the total consists of unconditional fuel and purchased power obligations, including its obligations under the Unit Power Sales Agreement, which is discussed in Note 8 to the financial statements.
In addition to the contractual obligations given above, Entergy New Orleans expects to make payments of approximately $113 million for the years 2009-2011 related to Hurricane Katrina and Hurricane Gustav restoration work and its gas rebuild project, of which $32 million is expected to be incurred in 2009.
Also, Entergy New Orleans expects to contribute $1.7 million to its pension plan and $5.9 million to its other postretirement plans in 2009.
Guidance pursuant to the Pension Protection Act of 2006 rules, effective for the 2008 plan year and beyond, may affect the level of Entergy New Orleans' pension contributions in the future.
Also in addition to the contractual obligations, Entergy New Orleans has $26.1 million of unrecognized tax benefits and interest for which the timing of payments beyond 12 months cannot be reasonably estimated due to uncertainties in the timing of effective settlement of tax positions.
See Note 3 to the financial statements for additional information regarding unrecognized tax benefits.
The planned capital investment estimate for Entergy New Orleans reflects capital required to support existing business.
The estimated capital expenditures are subject to periodic review and modification and may vary based on the ongoing effects of regulatory constraints, environmental compliance, market volatility, economic trends, and the ability to access capital.
Management provides more information on long-term debt and preferred stock maturities in Notes 5 and 6 and to the financial statements.
Sources of Capital Entergy New Orleans' sources to meet its capital requirements include: x internally generated funds; x cash on hand; and x debt and preferred stock issuances.
Entergy New Orleans' receivables from or (payables to) the money pool were as follows as of December 31 for each of the following years:


| 2015 High Low | Quarter ended March 31 | Quarter ended June 30 | Quarter ended September 30 | Quarter ended December 31 | 2014 | Quarter ended March 31 | Quarter ended June 30 | Quarter ended September 30 | Quarter ended December 31 |


| Three months ended | March 31 | (in millions, except per share amounts) | 2006 | Total revenues | Total benefits and expenses | Income from continuing operations before income taxes and equity in earnings of operating joint ventures | Income from continuing operations | Net income | Basic income from continuing operations per share—Common Stock-1 | Diluted income from continuing operations per share—Common Stock-1 | Basic net income per share—Common Stock-1 | Diluted net income per share—Common Stock-1 | Basic and diluted net income per share—Class B Stock | 2005 | Total revenues | Total benefits and expenses | Income from continuing operations before income taxes and equity in earnings of operating joint ventures | Income from continuing operations | Net income | Basic income from continuing operations per share—Common Stock-1 | Diluted income from continuing operations per share—Common Stock-1 | Basic net income per share—Common Stock-1 | Diluted net income per share—Common Stock-1 | Basic and diluted net income (loss) per share—Class B Stock |


Stock-Based Compensation Plans The Company has a stock incentive plan (the “1994 Plan”), which was amended and restated on December 8, 2004.
Individuals who are eligible to participate in the 1994 Plan include officers, other associates, outside directors and other key persons of the Company and its subsidiaries who are r esponsible for or contribute to the management, growth or profitability of the Company and its subsidiaries.
The 1994 Plan authorizes (i) the grant of stock options that qualify as incentive stock
(5) We occupy approximately 350,000 square feet of the One North End Building.
(6) This property is owned by Board of Trade Investment Company (BOTIC).
KCBT maintains a 51% controlling interest in BOTIC.
We also lease other office space around the world and have also partnered with major global telecommunications carriers in connection with our telecommunications hubs whereby we place data cabinets within the carriers’ existing secured data centers.
We believe our facilities are adequate for our current operations and that additional space can be obtained if needed.
ITEM 3.
LEGAL PROCEEDINGS See “Legal and Regulatory Matters” in Note 14.
Contingencies to the Consolidated Financial ITEM 4.
MINE SAFETY DISCLOSURES Not applicable.
cabinets within the carriers’ existing secured data centers.
We believe our facilities are adequate for our current operations and that additional space can be obtained if needed.
Statements beginning on page 91 for CME Group’s legal proceedings disclosure which is incorporated herein by reference.
PART II ITEM 5.
MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES Class A Common Stock Our Class A common stock is currently listed on NASDAQ under the ticker symbol “CME.
” As of February 13, 2013, there were approximately 3,106 holders of record of our Class A common stock.
In May 2012, the company’s board of directors declared a five-for-one split of its Class A common stock effected by way of a stock dividend to its Class A and Class B shareholders.
The stock split was effective July 20, 2012 for all shareholders of record on July 10, 2012.
As a result of the stock split, all amounts related to shares and per share amounts have been retroactively restated.
The following table sets forth the high and low sales prices per share of our Class A common stock on a quarterly basis, as reported on NASDAQ.


| Years Ended December 31, | Mt. Logan Re Segregated Accounts | (Dollars in thousands) | Ceded written premiums | Ceded earned premiums | Ceded losses and LAE | Assumed written premiums | Assumed earned premiums | Assumed losses and LAE |


| December 31, | 2009 | Primary Underlying | Risk Exposure | (In millions) | Interest rate | Interest rate futures | Foreign currency | Currency options | Equity market | Equity options | Variance swaps | Total rate of return swaps | Total |


| Year ended December 31, | (in millions) | Stock-based compensation: | Restricted stock and RSUs | Long-term incentive plans to be funded by PNC | Total stock-based compensation |


| As of December 31, | 2010 | (In millions) | Cash and cash equivalents | Funds deposited by counterparties | Restricted cash | Total cash | Funded Letter of Credit Facility availability | Revolving Credit Facility availability | Total liquidity | Less: Funds deposited as collateral by hedge counterparties | Total liquidity, excluding collateral received | S&P | NRG Energy, Inc. | 8.25% Senior Notes, due 2020 | 8.5% Senior Notes due 2019 | 7.375% Senior Notes, due 2016, 2017 | 7.25% Senior Notes due 2014 | Term Loan Facility | Equivalent Net Sales Secured by First and Second Lien Structure(a) | In MW(b) | As a percentage of total eligible baseload capacity(c) |


| 2016 2015 | In millions of dollars | Commercial paper | Other borrowings-1 | Total | Balances atDecember 31, | In millions of dollars | Citigroup Inc.-1 | Senior debt | Subordinated debt-2 | Trust preferredsecurities | Bank-3 | Senior debt | Broker-dealer-4 | Senior debt | Subordinated debt-2 | Total | Senior debt | Subordinated debt-2 | Trust preferredsecurities | Total |


Legal The Company currently processes card transactions for Air Canada, the single largest airline in Canada.
Revenue from this relationship represents less than 1% of the Company’s consolidated revenue.
On April 1, 2003, Air Canada filed for and obtained protection from the court under the Companies’ Creditors Arrangement Act, which generally allows a company to reorganize while it continues normal operations with the assistance of a court?appointed Monitor.
The court order provides for a general stay that precludes its creditors and others from taking any action against Air Canada.
The purpose of the stay is to provide Air Canada with relief designed to stabilize operations and business relationships with customers, vendors, employees and creditors.
The court order also provides that Air Canada shall honor all airline tickets in the usual and ordinary course of business.
In the event that Air Canada’s restructuring is not successful and it is liquidated, there will likely be limited assets available from which to pay creditor claims.
If the restructuring is not successful and any of Air Canada’s liability for deferred ticket revenues is unfunded and such charges are properly reversed by VISA and MasterCard cardholders, the Company may be liable for such reversed charges under the chargeback rules of these card associations; for more details, refer to Reserve for operating losses under Note 1 in the Notes to Consolidated Financial Statements appearing elsewhere in this report.
According to the Eighth Report of the Monitor dated July 31, 2003, deferred ticket revenues for Air Canada as of June 30, 2003, representing advance ticket sales collected, were approximately $566 million Canadian, or $420 million U.
S, based on then existing exchange rates.
In conjunction with the acquisition of the merchant acquiring business of CIBC in March 2001, CIBC agreed to reimburse Global Payments by the amount, if any, that Air Canada’s VISA chargebacks and credit losses for any 12 month period exceed twice the level of VISA chargebacks and credit losses experienced during the one?year period ending October 31, 1999.
This reimbursement obligation is scheduled to expire on March 20, 2004.
Based on an affidavit of an Air Canada officer, 80% of Air Canada customers elect to pay using credit cards and, of those credit card users, 29.3% use VISA cards and 8.4% use MasterCard cards.
Therefore, based on the information contained in that affidavit, the information contained in Eighth Report of the Monitor, and taking into consideration CIBC’s reimbursement obligations for Air Canada’s chargebacks and credit losses, our maximum potential chargeback liability exposure relative to Air Canada as of June 30, 2003 is $38?$48 million Canadian, or $28?$35 million U. S. , based on existing exchange rates.


| December 31, | 2008 | Amount | (In millions) | Office | Apartments | Real estate investment funds | Industrial | Retail | Hotel | Land | Agriculture | Other | Total real estate holdings | December 31, | 2008 | (In millions) | Individual: | Guaranteed minimum accumulation benefit | Guaranteed minimum withdrawal benefit | Guaranteed minimum income benefit | International: | Guaranteed minimum accumulation benefit | Guaranteed minimum withdrawal benefit | Total |


| (Millions) 2008 2007 | €1 billion bridge loan agreement, 5.2% | U.S. commercial paper, 5.3% as of Dec. 31, 2008 | €650 million revolving credit facility, weighted average 2.9% as of Dec. 31, 2008-1 | Other, weighted average 4.0% as of Dec. 31, 2008 | Total |


Consolidation of AWE Management Limited On August 24, 2016, we increased our ownership interest in the AWE joint venture, which operates the United Kingdoms nuclear deterrent program, from 33% to 51%.
At which time, we began consolidating AWE.
Consequently, our operating results include 100% of AWEs sales and 51% of its operating profit.
Prior to increasing our ownership interest, we accounted for our investment in AWE using the equity method of accounting.
Under the equity method, we recognized only 33% of AWEs earnings or losses and no sales.
Accordingly, prior toAugust 24, 2016, the date we obtained control, we recorded 33% ofAWEs net earnings in our operating results and subsequent to August 24, 2016, we recognized 100% of AWEs sales and 51% of its operating profit.
We accounted for this transaction as a step acquisition (as defined by U. S.  GAAP), which requires us to consolidate and record the assets and liabilities ofAWE at fair value.
Accordingly, we recorded intangible assets of $243 million related to customer relationships, $32 million of net liabilities, and noncontrolling interests of $107 million.
The intangible assets are being amortized over a period of eight years in accordance with the underlying pattern of economic benefit reflected by the future net cash flows.
In 2016, we recognized a non-cash net gain of $104 million associated with obtaining a controlling interest inAWE, which consisted of a $127 million pretax gain recognized in the operating results of our Space business segment and $23 million of tax-related items at our corporate office.
The gain represents the fair value of our 51% interest inAWE, less the carrying value of our previously held investment inAWE and deferred taxes.
The gain was recorded in other income, net on our consolidated statements of earnings.
The fair value of AWE (including the intangible assets), our controlling interest, and the noncontrolling interests were determined using the income approach.


SALE OF SMARTSTREET Effective October 26, 2012, PNC divested certain deposits and assets of the Smartstreet business unit, which was acquired by PNC as part of the RBC Bank (USA) acquisition, to Union Bank, N. A.  Smartstreet is a nationwide business focused on homeowner or community association managers and had approximately $1 billion of assets and deposits as of September 30, 2012.
The gain on sale was immaterial and resulted in a reduction of goodwill and core deposit intangibles of $46 million and $13 million, respectively.
Results from operations of Smartstreet from March 2, 2012 through October 26, 2012 are included in our Consolidated Income Statement.
FLAGSTAR BRANCH ACQUISITION Effective December 9, 2011, PNC acquired 27 branches in the northern metropolitan Atlanta, Georgia area from Flagstar Bank, FSB, a subsidiary of Flagstar Bancorp, Inc.
The fair value of the assets acquired totaled approximately $211.8 million, including $169.3 million in cash, $24.3 million in fixed assets and $18.2 million of goodwill and intangible assets.
We also assumed approximately $210.5 million of deposits associated with these branches.
No deposit premium was paid and no loans were acquired in the transaction.
Our Consolidated Income Statement includes the impact of the branch activity subsequent to our December 9, 2011 acquisition.
BANKATLANTIC BRANCH ACQUISITION Effective June 6, 2011, we acquired 19 branches in the greater Tampa, Florida area from BankAtlantic, a subsidiary of BankAtlantic Bancorp, Inc.
The fair value of the assets acquired totaled $324.9 million, including $256.9 million in cash, $26.0 million in fixed assets and $42.0 million of goodwill and intangible assets.
We also assumed approximately $324.5 million of deposits associated with these branches.
A $39.0 million deposit premium was paid and no loans were acquired in the transaction.
Our Consolidated Income Statement includes the impact of the branch activity subsequent to our June 6, 2011 acquisition.
SALE OF PNC GLOBAL INVESTMENT SERVICING On July 1, 2010, we sold PNC Global Investment Servicing Inc.  (GIS), a leading provider of processing, technology and business intelligence services to asset managers, brokerdealers and financial advisors worldwide, for $2.3 billion in cash pursuant to a definitive agreement entered into on February 2, 2010.
This transaction resulted in a pretax gain of $639 million, net of transaction costs, in the third quarter of 2010.
This gain and results of operations of GIS through June 30, 2010 are presented as Income from discontinued operations, net of income taxes, on our Consolidated Income Statement.
As part of the sale agreement, PNC has agreed to provide certain transitional services on behalf of GIS until completion of related systems conversion activities.


| 2011 2012 2013 2014 2015 2016 | Loews Common Stock | S&P 500 Index | Loews Peer Group (a) |


THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements When it is determined that the firm cannot reasonably estimate expected cash flows on PCI loans or pools of loans, such loans are placed on nonaccrual status.
Allowance for Credit Losses The firms allowance for credit losses consists of the allowance for losses on loans and lending commitments.
The firms allowance for loan losses consists of specific loan-level reserves, portfolio level reserves and reserves on PCI loans, as described below: ° Specific loan-level reserves are determined on loans (excluding PCI loans) that exhibit credit quality weakness and are therefore individually evaluated for impairment.
° Portfolio level reserves are determined on loans (excluding PCI loans) not evaluated for specific loan-level reserves by aggregating groups of loans with similar risk characteristics and estimating the probable loss inherent in the portfolio.
° Reserves on PCI loans are recorded when it is determined that the expected cash flows, which are reassessed on a quarterly basis, will be lower than those used to establish the current effective yield for such loans or pools of loans.
If the expected cash flows are determined to be significantly higher than those used to establish the current effective yield, such increases are initially recognized as a reduction to any previously recorded allowances for loan losses and any remaining increases are recognized as interest income prospectively over the life of the loan or pools of loans as an increase to the effective yield.
The allowance for loan losses is determined using various risk factors, including industry default and loss data, current macroeconomic indicators, borrowers capacity to meet its financial obligations, borrowers country of risk, loan seniority and collateral type.
In addition, for loans backed by real estate, risk factors include loan to value ratio, debt service ratio and home price index.
Risk factors for consumer loans include FICO credit scores and delinquency status.
Managements estimate of loan losses entails judgment about loan collectability at the reporting dates, and there are uncertainties inherent in those judgments.
While management uses the best information available to determine this estimate, future adjustments to the allowance may be necessary based on, among other things, changes in the economic environment or variances between actual results and the original assumptions used.
Loans are charged off against the allowance for loan losses when deemed to be uncollectible.
The firm also records an allowance for losses on lending commitments that are held for investment and accounted for on an accrual basis.
Such allowance is determined using the same methodology as the allowance for loan losses, while also taking into consideration the probability of drawdowns or funding, and is included in other liabilities.


| As of December 31, | 2005 | (In thousands) | Balance Sheet Data: | Cash and cash equivalents, Short-term investments and Securities-available-for-sale | Working capital -7 | Total assets | Total redeemable convertible preferred stock |


| Analysis of % Change | Total Change | 2006 vs. 2005 | 2005 vs. 2004 |


| Global Corporate Banking Global Commercial Banking Business Banking Total | 2018 | (Dollars in millions) | Revenue | Business Lending | Global Transaction Services | Total revenue, net of interest expense | Balance Sheet | Average | Total loans and leases | Total deposits | Year end | Total loans and leases | Total deposits | Global Banking | (Dollars in millions) | Products | Advisory | Debt issuance | Equity issuance | Gross investment banking fees | Self-led deals | Total investment banking fees |


UNITED PARCEL SERVICE, INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 99 Floating-Rate Senior Notes The floating-rate senior notes with principal amounts totaling $1.043 billion, bear interest at either one or three-month LIBOR, less a spread ranging from 30 to 45 basis points.
The average interest rate for 2017 and 2016 was 0.74% and 0.21%, respectively.
These notes are callable at various times after 30 years at a stated percentage of par value, and putable by the note holders at various times after one year at a stated percentage of par value.
The notes have maturities ranging from 2049 through 2067.
We classified the floating-rate senior notes that are putable by the note holder as a long-term liability, due to our intent and ability to refinance the debt if the put option is exercised by the note holder.
In March and November 2017, we issued floating-rate senior notes in the principal amounts of $147 and $64 million, respectively, which are included in the $1.043 billion floating-rate senior notes described above.
These notes will bear interest at three-month LIBOR less 30 and 35 basis points, respectively and mature in 2067.
The remaining three floating-rate senior notes in the principal amounts of $350, $400 and $500 million, bear interest at three-month LIBOR, plus a spread ranging from 15 to 45 basis points.
The average interest rate for 2017 and 2016 was 0.50% and 0.0%, respectively.
These notes are not callable.
The notes have maturities ranging from 2021 through 2023.
We classified the floating-rate senior notes that are putable by the note holder as a long-term liability, due to our intent and ability to refinance the debt if the put option is exercised by the note holder.


| Years ended December 31, 2007 2006 % Change | (Dollars in millions) | Salaries and employee benefits | Information systems and communications | Transaction processing services | Occupancy | Provision for legal exposure | Merger and integration costs | Professional services | Amortization of other intangible assets | Other | Total expenses |


| 2017 $200,450 | 2018 | 2019 | 2020 | 2021 | Thereafter | Future Minimum Lease Payments |


| Issued In Treasury Shares Outstanding | Balance, January 1, 2007 | Shares sold to optionees less shares exchanged | Shares issued under employee stock purchase plan | Stock repurchase program | Issued on conversions of debentures | Balance, December 31, 2007 | Shares sold to optionees less shares exchanged | Shares issued under employee stock purchase plan | Stock repurchase program | Issued on conversions of debentures | Balance, December 31, 2008 | Shares sold to optionees less shares exchanged | Vesting of restricted stock | Shares issued under employee stock purchase plan | Stock repurchase program | Balance, December 31, 2009 |


| December 31 | 2008 | (Dollars in millions) | Credit derivatives | Purchased protection: | Credit default swaps | Total return swaps | Total purchased protection | Written protection: | Credit default swaps | Total return swaps | Total written protection | Total credit derivatives |


Contractual and Other Obligations Firm Commitments The following table summarizes certain of the Company’s aggregate contractual obligations as of March 29, 2008, and the estimated timing and effect that such obligations are expected to have on the Company’s liquidity and cash flow in future periods.
The Company expects to fund the firm commitments with operating cash flow generated in the normal course of business and, if necessary, availability under its $450 million credit facility or other potential sources of financing.


| 2003 2004 Change | Foreign currency transaction gains | Debt extinguishment expense | Loss on investments | Other, net | $-2,564 |


Environmental Matters.
Expenditures for current operations are expensed or capitalized, as appropriate.
Expenditures relating to existing conditions caused by past operations, which will not contribute to future revenues, are expensed.
Liabilities are recorded when remediation costs are probable and can be reasonably estimated.
The liability may include costs such as site investigations, consultant fees, feasibility studies, outside contractors, and monitoring expenses.
Estimates are generally not discounted or reduced by potential claims for recovery.
Claims for recovery are recognized when probable and as agreements are reached with third parties.
The estimates also include costs related to other potentially responsible parties to the extent that Arconic has reason to believe such parties will not fully pay their proportionate share.
The liability is continuously reviewed and adjusted to reflect current remediation progress, prospective estimates of required activity, and other factors that may be relevant, including changes in technology or regulations.


Timing of Deduction of Construction-Related Costs In August 2005, the IRS issued Revenue Ruling 2005-53 with respect to when federal income tax deductions can be taken for certain construction-related costs.
The Companies’ used the “simplified service cost method” (SSCM) to determine the extent to which these costs could be deducted in 2002, 2003 and 2004, and as a result reduced their current tax expense, by $289 million, of which $264 million is attributable to Con Edison of New York.
Under Revenue Ruling 2005-53, the Companies may be required to repay, with interest, a portion of their past SSCM tax benefits and to capitalize and depreciate over a period of years costs they previously deducted under SSCM.
The interest could range from zero to approximately $42 million.
Repayment of the SSCM tax benefits would not otherwise affect the Utilities’ results of operations because deferred taxes have been previously provided for the related temporary differences between the SSCM deductions taken for federal income tax purposes and the corresponding amounts charged to expense for financial reporting purposes.


Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Results of Operations – CNA Financial – (Continued) Net results improved by $310.9 million in 2005 as compared with 2004.
The improvement in net results related primarily to a $352.9 million after tax and minority interest realized loss on the sale of the individual life business in 2004.
Also contributing to the improvement in net results is the reduction in 2005 of significant 2004 items related to the IGI Program as discussed below.
In addition, 2005 results included an $11.9 million gain, after tax and minority interest, related to a service agreement with a purchaser for sold businesses.
These agreements have expired.
These results were partially offset by a decline in net investment income of $98.4 million.
This included a decrease of approximately $64.0 million from the trading portfolio which was largely net income neutral due to a corresponding decrease in the policyholders’ funds reserves supported by the trading portfolio.
In addition, it included the absence of favorable results from the sold insurance operations as discussed below.
Also unfavorably impacting the 2005 results was a $15.3 million, after tax and minority interest, provision increase for estimated indemnification liabilities related to the sold individual life business and unfavorable results related to the long term care business.
See the Investments section of this MD&A for additional information on net investment income and net realized investment results.2004 Compared with 2003 Net earned premiums for Life and Group Non-Core decreased $1,455.0 million in 2004 as compared with 2003.
The decrease in net earned premiums was due primarily to the absence of premiums from the group benefits business and reduced premiums for the individual life business.
Net earned premiums for the sold life and group businesses were $115.0 million and $1,459.0 million for 2004 and 2003.
Net earned premiums also decreased in most of the remaining lines of business which are in runoff, and this decline is expected to continue in the future.
Partially offsetting this decrease was an increase in net earned premiums in the specialty medical business, which continued to issue new policies prior to its sale in January 2005.
Net results decreased by $379.6 million in 2004 as compared with 2003.
The decrease in net results related primarily to net realized investment losses, including the realized loss of approximately $352.9 million after tax and minority interest from the sale of the individual life business and reduced results from the group benefits and individual life businesses.
Net realized investment losses in 2003 include a loss recorded on the sale of the Group Benefits business of $116.4 million after tax and minority interest.
Net results for the sold life and group businesses were losses of $389.7 million and $32.5 million, including the loss on sales and the effects of shared corporate overhead expenses, in 2004 and 2003.
In addition, results for life settlement contracts declined in 2004.
These items were partially offset by reduced increases in individual long term care reserves of $19.2 million after tax and minority interest in 2004 as compared with 2003.
Also included in the net results of 2004 and 2003 were the adverse impacts of $23.7 million and $29.8 million, after tax and minority interest, related to certain accident and health exposures (“IGI Program”) and CNA’s past participation in accident and health reinsurance programs.


shipment volumes.
Plywood prices increased from 2006, providing a partial offset to the lower prices realized for OSB.
 The contribution from engineered I-joists and engineered solid section declined $180 million  about 50 percent from lower price realizations and 50 percent from reduced shipment volumes.
 The contribution from sales of other building products declined approximately $40 million primarily as a result of reduced shipment volumes due to the decline in demand.
?The net effect of legal settlements adversely affected the segment by $483 million.2007 included $21 million of charges for legal settlements.2006 included income of $462 million, including:  $344 million of income from refunds of countervailing and anti-dumping deposits relating to the softwood lumber dispute between the U. S.  and Canada,  $95 million of income from a reversal of the reserve for alder antitrust litigation and  $23 million of income from a reduction in the reserve for hardboard siding claims.
?Charges resulting from the closure or sale of various manufacturing facilities and distribution locations.
?Gains on the sale of operations declined by $51 million as 2006 included the sale of the North American composite panel operations and 2007 had no comparable activity.
These decreases were partially offset by lower raw material, manufacturing, and selling and general administrative costs, which increased the contribution to earnings by approximately $290 million.
OUR OUTLOOK The segment recognized a fourth-quarter loss of $960 million, which included $761 million of charges for asset impairments, closures and restructuring activities.
The operating results reflected significantly lower prices for lumber and oriented strand board and reduced sales volumes as a result of the continued decline in the housing market.
We expect challenging housing market conditions to continue into the first quarter 2009 and expect first-quarter results for the segment to be comparable to the fourth quarter of 2008, excluding asset impairment, closure and restructuring charges.


The Company’s average VaR for the Primary Risk Categories for 2012 was $64 million compared with $78 million for 2011.
This decrease was primarily driven by reduced risk in interest rate and credit spread sensitive products.
The average Credit Portfolio VaR for 2012 was $26 million compared with $61 million for 2011.
This change was primarily driven by a significant reduction in counterparty exposure to MBIA, which the Company settled in December 2011 (see “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Executive Summary—Significant Items—Monoline Insurers” in Part II, Item 7 herein for further information).
Additionally, the transition of loans held at fair value to loans held for investment (net of allowance) also contributed to the reduction.
The average Total Trading VaR for 2012 was $73 million compared with $98 million for 2011.
This decrease was driven by the aforementioned movements.
To aid in the transition to the current VaR model in 2012, results using the prior model are being provided for comparative purposes.
This dual presentation will be discontinued in 2013


| Well-   Capitalized   Minimums At December 31, 2010 | Actual | (Dollar amounts in billions) | Ratios: | Tier 1 leverage ratio | Bank | Tier 1 risk-based capital ratio | Bank | Total risk-based capital ratio | Bank |


| 2012 2011 2010 | Net sales | Operating profit | Operating margins | Backlog at year-end |


| 2013 2012 2011 | Cost of sales | Royalties | Product development | Amortization of intangibles | Selling, distribution and administration | Total |


| December 31, 2005 December 31, 2004 | Fair Market Value | (in thousands) | U.S. treasury securities and obligations of U.S. government agencies | Obligations of states and political subdivisions | Auction rate securities | U.S. corporate securities | Total |


| CECONY O&R | Technology | Internal-combustion engines | Photovoltaic solar | Gas turbines | Micro turbines | Fuel cells | Steam turbines | Total Distribution-level distributed generation |


Table of Contents ADOBE INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Goodwill, Purchased Intangibles and Other Long-Lived Assets Goodwill is assigned to one or more reporting segments on the date of acquisition.
We review our goodwill for impairment annually during our second quarter of each fiscal year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of any one of our reporting units below its respective carrying amount.
In performing our goodwill impairment test, we first perform a qualitative assessment, which requires that we consider events or circumstances including macroeconomic conditions, industry and market considerations, cost factors, overall financial performance, changes in management or key personnel, changes in strategy, changes in customers, changes in the composition or carrying amount of a reporting segment’s net assets and changes in our stock price.
If, after assessing the totality of events or circumstances, we determine that it is more likely than not that the fair values of our reporting segments are greater than the carrying amounts, then the quantitative goodwill impairment test is not performed.
If the qualitative assessment indicates that the quantitative analysis should be performed, we then evaluate goodwill for impairment by comparing the fair value of each of our reporting segments to its carrying value, including the associated goodwill.
To determine the fair values, we use the equal weighting of the market approach based on comparable publicly traded companies in similar lines of businesses and the income approach based on estimated discounted future cash flows.
Our cash flow assumptions consider historical and forecasted revenue, operating costs and other relevant factors.
We completed our annual goodwill impairment test in the second quarter of fiscal 2018.
We determined, after performing a qualitative review of each reporting segment, that it is more likely than not that the fair value of each of our reporting segments substantially exceeds the respective carrying amounts.
Accordingly, there was no indication of impairment and the quantitative goodwill impairment test was not performed.
We did not identify any events or changes in circumstances since the performance of our annual goodwill impairment test that would require us to perform another goodwill impairment test during the fiscal year.
We amortize intangible assets with finite lives over their estimated useful lives and review them for impairment whenever an impairment indicator exists.
We continually monitor events and changes in circumstances that could indicate carrying amounts of our long-lived assets, including our intangible assets may not be recoverable.
When such events or changes in circumstances occur, we assess recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows.
If the future undiscounted cash flows are less than the carrying amount of these assets, we recognize an impairment loss based on any excess of the carrying amount over the fair value of the assets.
We did not recognize any intangible asset impairment charges in fiscal 2018, 2017 or 2016.
During fiscal 2018, our intangible assets were amortized over their estimated useful lives ranging from 1 to 14 years.
Amortization is based on the pattern in which the economic benefits of the intangible asset will be consumed or on a straight-line basis when the consumption pattern is not apparent.
The weighted average useful lives of our intangible assets were as follows:


| December 31, | 2015 | Assurant Solutions | Assurant Specialty Property | Assurant Health | Assurant Employee Benefits | Total |


Acquisitions and Divestitures 2015 For the year ended December 31, 2015, we paid cash for acquisitions, net of cash acquired, totaling $2.4 billion.
We used the net proceeds of our $2.0 billion of senior notes issued in August of 2015 and cash on hand to finance the acquisition of SNL.
All other acquisitions were funded with cash flows from operations.
Acquisitions completed during the year ended December 31, 2015 by segment included: S&P Capital IQ and SNL On September 1, 2015 (the Acquisition Date), we acquired SNL Financial LC (SNL) for $2.225 billion in cash, subject to working capital adjustments.
SNLs results of operations have been included in our consolidated statements of income subsequent to the Acquisition Date.
SNL is a global provider of news, data, and analytical tools to five sectors in the global economy: financial services, real estate, energy, media & communications, and metals & mining.
SNL delivers information through its suite of web, mobile and direct data feed platforms that helps clients, including investment and commercial banks, investors, corporations, and regulators make decisions, improve efficiency, and manage risk.
ACQUISITION-RELATED EXPENSES During the year ended December 31, 2015, the Company incurred approximately $37 million of acquisition-related costs related to the acquisition of SNL.
These expenses are included in selling and general expenses in our consolidated statements of income.
PRELIMINARY ALLOCATION OF PURCHASE PRICE Our acquisition of SNL was accounted for using the purchase method.
Under the purchase method, the excess of the purchase price over the fair value of the net assets acquired is allocated to goodwill and other intangibles.
The goodwill recognized is largely attributable to anticipated operational synergies and growth opportunities as a result of the acquisition.
The intangible assets, excluding goodwill and indefinite-lived intangibles, will be amortized over their anticipated useful lives between 10 and 18 years which will be determined when we finalize our purchase price allocation.
The goodwill is expected to be deductible for tax purposes.
The following table presents the preliminary allocation of purchase price to the assets and liabilities of SNL as a result of the acquisition.


| In millions of dollars 2008 2007 2006 | Net interest revenue | Non-interest revenue | Revenues, net of interest expense | Operating expenses | Provisions for loan losses and for benefits and claims | Loss from continuing operations before taxes and minority interest | Income tax benefits | Minority interest, net of taxes | Loss from continuing operations | Income from discontinued operations | Net income (loss) |


Entergy New Orleans Securitization Bonds - Hurricane Isaac In May 2015 the City Council issued a financing order authorizing the issuance of securitization bonds to recover Entergy New Orleans’s Hurricane Isaac storm restoration costs of $31.8 million, including carrying costs, the costs of funding and replenishing the storm recovery reserve in the amount of $63.9 million, and approximately $3 million of up-front financing costs associated with the securitization.
In July 2015, Entergy New Orleans Storm Recovery Funding I, L. L. C. , a company wholly owned and consolidated by Entergy New Orleans, issued $98.7 million of storm cost recovery bonds.
The bonds have a coupon of 2.67%.
Although the principal amount is not due until the date given in the tables above, Entergy New Orleans Storm Recovery Funding expects to make principal payments on the bonds over the next five years in the amounts of $10.6 million for 2017, $11 million for 2018, $11.2 million for 2019, $11.6 million for 2020, and $11.9 million for 2021.
With the proceeds, Entergy New Orleans Storm Recovery Funding purchased from Entergy New Orleans the storm recovery property, which is the right to recover from customers through a storm recovery charge amounts sufficient to service the securitization bonds.
The storm recovery property is reflected as a regulatory asset on the consolidated Entergy New Orleans balance sheet.
The creditors of Entergy New Orleans do not have recourse to the assets or revenues of Entergy New Orleans Storm Recovery Funding, including the storm recovery property, and the creditors of Entergy New Orleans Storm Recovery Funding do not have recourse to the assets or revenues of Entergy New Orleans.
Entergy New Orleans has no payment obligations to Entergy New Orleans Storm Recovery Funding except to remit storm recovery charge collections.


| Years Ended December 31, Percentage Change | (dollars in millions) | Underwriting results: | Net premiums written | Increase in unearned premiums | Net premiums earned | Losses and loss adjustment expenses incurred | Acquisition expenses: | Amortization of deferred policy acquisition costs | Other acquisition expenses | Total acquisition expenses | General operating expenses | Underwriting income | Net investment income | Pre-tax operating income |


In conjunction with common stock dividends declared in 2015 and 2014, we accrued dividends of $0.9 and $0.8, respectively, on non-vested stock-settled awards and paid dividends of $0.6 and $0.5 for stock-settled awards that vested during 2015 and 2014, respectively.
A summary of the activity of our non-vested stock-settled awards, cash-settled awards and performance-based awards during 2015 is presented below (performance-based awards are shown at 100% of the shares originally granted)


2016 Compared to 2015 In 2016, across our North American Full-Service segment we added 424 properties (154,521 rooms), including 398 properties (147,623 rooms) from the Starwood Combination on the Merger Date, and two properties (213 rooms) left our system.
North American Full-Service segment profits increased by $216 million, reflecting $110 million from the Starwood Combination and $106 million of higher Legacy-Marriott profits, primarily due to the following: ?
$58 million of higher Legacy-Marriott base management and franchise fees, primarily reflecting $30 million of stronger RevPAR and unit growth and $21 million of higher branding fees; ?
$17 million of higher Legacy-Marriott incentive management fees, primarily driven by higher net house profits at managed hotels;


| Year Ended December 31 2005 2004 2003 | (In millions) | Fixed maturity securities | Short-term investments | Limited partnerships | Equity securities | Income from trading portfolio (a) | Interest on funds withheld and other deposits | Other | Total investment income | Investment expenses | Net investment income | December 31 | CarryingAmount | (In millions) | Financial assets: | Other investments | Separate account business: | Fixed maturities securities | Equity securities | Financial liabilities: | Premium deposits and annuity contracts | Short-term debt | Long-term debt | Financial guarantee contracts | Separate account business: | Variable separate accounts | Other |


| 2010 2009 2008 | Cash, cash equivalents and marketable securities | Accounts receivable, net | Inventories | Working capital | Annual operating cash flow |


| December 31, millions, except per share amounts and employees 2017 2016 2015 2014 2013 | OPERATIONS | Net sales | Cost of sales (including special (gains) and charges (1)) | Selling, general and administrative expenses | Special (gains) and charges | Operating income | Interest expense, net (including special (gains) and charges (1)) | Income before income taxes | Provision for income taxes | Net income including noncontrolling interest | Net income (loss) attributable to noncontrolling interest (including special (gains) and charges (1)) | Net income attributable to Ecolab | Diluted earnings per share, as reported (GAAP) | Diluted earnings per share, as adjusted (Non-GAAP) (2) | Weighted-average common shares outstanding - basic | Weighted-average common shares outstanding - diluted | SELECTED INCOME STATEMENT RATIOS | Gross margin | Selling, general and administrative expenses | Operating income | Income before income taxes | Net income attributable to Ecolab | Effective income tax rate | FINANCIAL POSITION | Current assets | Property, plant and equipment, net | Goodwill, intangible and other assets | Total assets | Current liabilities | Long-term debt | Postretirement health care and pension benefits | Other liabilities | Total liabilities | Ecolab shareholders’ equity | Noncontrolling interest | Total equity | Total liabilities and equity | SELECTED CASH FLOW INFORMATION | Cash provided by operating activities | Cash used for investing activities | Cash used for financing activities | Depreciation and amortization | Capital expenditures | Cash dividends declared per common share | SELECTED FINANCIAL MEASURES/OTHER | Total debt | Total debt to capitalization | Book value per common share | Return on beginning equity | Dividends per share/diluted earnings per common share | Net interest coverage | Year end market capitalization | Annual common stock price range | $117.29 | Number of employees |


| 52-weeks ended December 27, 2008 52-weeks ended December 29, 2007 Year over Year | Gross Profit | Outdoor/Fitness | Marine | Automotive/Mobile | Aviation | Total |


| Change | 2012 | (in millions) | IBNR -1 | Reported claims in process -2 | Military services benefits payable -3 | Other benefits payable -4 | Total benefits payable | Payables from acquisition | Change in benefits payable per cash flow statement resulting in cash fromoperations |


| December 31, 2008 December 31, 2007 | Amortized   Cost -1 | (In millions) | Performing | Restructured | Potentially delinquent | Delinquent or under foreclosure | Total |


| Location Television Market Market Status Planned Opening Date | Rochester, New York-1 | Dothan, Alabama-1 | Mechanicsburg, Pennsylvania | Spokane Valley, Washington | Madison, Wisconsin | Fort Worth, Texas | Lynchburg, Virginia | Milwaukie, Oregon | Beaverton, Oregon | Saltillo, Mississippi | Reno, Nevada | Raleigh, North Carolina | Warrensville Heights, Ohio |


| In millions December 312014 December 312013 | Consumer lending: | Real estate-related | Credit card | Other consumer | Total consumer lending | Total commercial lending | Total TDRs | Nonperforming | Accruing (b) | Credit card | Total TDRs |


| 2018 2017 2016 | Beginning Balance | Increase-1 | Decrease-2 | Other-3 | Ending Balance |


Equity Capital Capital adequacy is of critical importance to us.
Our objective is to be conservatively capitalized in terms of the amount and composition of our equity base.
Accordingly, we have in place a comprehensive capital management policy that serves as a guide to determine the amount and composition of equity capital we maintain.
The level and composition of our equity capital are determined by multiple factors including our current and future consolidated regulatory capital requirements, our ICAAP, CCAR and results of stress tests, and may also be influenced by other factors such as rating agency guidelines, subsidiary capital requirements, the business environment, conditions in the financial markets and assessments of potential future losses due to adverse changes in our business and market environments.
In addition, we maintain a capital plan which projects sources and uses of capital given a range of business environments, and a contingency capital plan which provides a framework for analyzing and responding to an actual or perceived capital shortfall.
As part of the Federal Reserve Boards annual CCAR, U. S.  bank holding companies with total consolidated assets of $50 billion or greater are required to submit annual capital plans for review by the Federal Reserve Board.
The purpose of the Federal Reserve Boards review is to ensure that these institutions have robust, forward-looking capital planning processes that account for their unique risks and that permit continued operations during times of economic and financial stress.
The Federal Reserve Board will evaluate a bank holding company based on whether it has the capital necessary to continue operating under the baseline and stressed scenarios provided by the Federal Reserve.
As part of the capital plan review, the Federal Reserve Board evaluates an institutions plan to make capital distributions, such as increasing dividend payments or repurchasing or redeeming stock, across a range of macro-economic and firm-specific assumptions.
In addition, the rules adopted by the Federal Reserve Board under the Dodd-Frank Act, require us to conduct stress tests on a semi-annual basis and publish a summary of certain results, beginning in March 2013.
The Federal Reserve Board will conduct its own annual stress tests and is expected to publish a summary of certain results in March 2013.
Managements Discussion and Analysis RWAs for market risk are comprised of modeled and non-modeled risk requirements.
Modeled risk requirements are determined by reference to the firms Value-at-Risk (VaR) model.
VaR is the potential loss in value of inventory positions due to adverse market movements over a defined time horizon with a specified confidence level.
We use a single VaR model which captures risks including interest rates, equity prices, currency rates and commodity prices.
For certain portfolios of debt and equity positions, the modeled RWAs also reflect requirements for specific risk, which is the risk of loss on a position that could result from changes in risk factors unique to that position.
Regulatory VaR used for capital requirements will differ from risk management VaR, due to different time horizons (10-day vs.  1-day), confidence levels (99% vs.  95%), as well as other factors.
Non-modeled risk requirements reflect specific risk for other debt and equity positions.
The standardized measurement method is used to determine non-modeled risk by applying supervisory defined risk-weighting factors to positions after applicable netting is performed.
The table below presents information on the components of RWAs within our consolidated regulatory capital ratios.


| 2011 2010 2009 | U.S. statutory tax rate | U.S. state income taxes, net of U.S. federal tax benefit | Nondeductible expenses | Non-U.S. income | Audit activity-1 | Company owned life insurance | Change in valuation allowance-2 | Tax credits | Other, net | Effective rate |


| (dollars in millions) Year-Over-YearChange Change as aPercentage of2015 Expenses | Loss on datacenter and related legal fees | Professional fees and outside services | Foreign currency exchange rate fluctuation | Licensing and other fee agreements | Reorganization, severance and retirement costs | Real estate taxes and fees | Other expenses, net | Total |


| Years Ended December 31, | 2005 | Subcontractor, disposal and third-party fees | Labor and benefits | Maintenance and operating | Insurance and other | Total |


| Liability as of January 1, 2003 2003 Restructuring Expense 2003 Cash Payments Liability as of December 31, 2003 2004 Restructuring Expense 2004 Cash Payments Liability as of December 31, 2004 2005 Restructuring Expense 2005 Cash Payments Liability as of December 31, 2005 | Employee separations | Lease terminations and other facility closing costs | Total |


| Strategy (In Millions) 2003 2002 | Mitigate price risk | Protect carrying values of excess inventories | Protect margin on fixed price sales | Protect crack spread values | Trading activities | Total net derivative losses |


| December 31, 2005 December 31, 2004 | Industry-1 | (in millions) | Corporate Securities: | Manufacturing | Finance | Utilities | Services | Energy | Retail and Wholesale | Transportation | Other | Total Corporate Securities | Asset-Backed Securities | U.S. Government | Mortgage Backed | Foreign Government | Total |


Notes to Consolidated Financial Statements – (continued) (Amounts in Millions, Except Per Share Amounts) Guarantees We have guaranteed certain obligations of our subsidiaries relating principally to operating leases and uncommitted lines of credit of certain subsidiaries.
The amount of parent company guarantees on lease obligations was $829.2 and $857.3 as of December 31, 2017 and 2016, respectively, and the amount of parent company guarantees primarily relating to uncommitted lines of credit was $491.0 and $395.6 as of December 31, 2017 and 2016, respectively.
In the event of non-payment by the applicable subsidiary of the obligations covered by a guarantee, we would be obligated to pay the amounts covered by that guarantee.
As of December 31, 2017, there were no material assets pledged as security for such parent company guarantees.


NOTE 16  STATEMENT OF CASH FLOWS As of June 30, 2006, the Company has separately disclosed the operating and investing portion of cash flows attributable to its discontinued operations, which in prior years were reported on a combined basis as a single amount.
The Company has conformed its statements of cash flows for fiscal 2005 and 2004 to reflect the cash flows used for discontinued operations from a single line below the financing activities category into the appropriate operating activity and investing activity categories.
$1.1 million and $2.5 million were reclassified for the fiscal years ended June 30, 2005 and 2004, respectively.
Certain other prior period cash flows have been revised to conform to the current period presentation.
Supplemental cash flow information of significant non-cash investing and financing transactions for fiscal 2006, 2005 and 2004 is as follows:


| -1 December 31, 2010 December 31, 2009 | NAIC Designation | (in millions) | 1 | 2 | Subtotal High or Highest Quality Securities | 3 | 4 | 5 | 6 | Subtotal Other Securities-2 | Total Public Fixed Maturities |


Investment Commitments.
At December 31, 2014, the Company had $161 million of various capital commitments to fund sponsored investment funds, including funds of private equity funds, real estate funds, infrastructure funds, opportunistic funds and distressed credit funds.
This amount excludes additional commitments made by consolidated funds of funds to underlying third-party funds as third-party noncontrolling interest holders have the legal obligation to fund the respective commitments of such funds of funds.
In addition to the capital commitments of $161 million, the


| December 31, 2017 | Criticized | (in millions) | Commercial | Commercial real estate | Leases | Total commercial loans and leases |


(a) Interest income data are on a taxable-equivalent basis.
The apportionment of changes resulting from the combined effect of both volume and rate was based on the separately determined volume and rate changes.


The reserve development by accident year reflected in the above table was generally the result of the same factors described above that caused the deficiencies shown in the Ten Year GAAP Loss Development Table.
The unfavorable development experienced in the 2002 and prior accident years relate principally to the previously discussed asbestos development.
Other business areas contributing to adverse development were casualty reinsurance, including professional liability classes, and workers compensation insurance, where, in retrospect, the Companys initial estimates of losses were underestimated principally as the result of unanticipated variability in the underlying exposures.
The favorable development for accident years 2003 through 2004 relates primarily to favorable experience with respect to property reinsurance business.
In addition, casualty reinsurance has reflected favorable development for accident years 2003 to 2006.
The Companys loss reserving methodologies continuously monitor the emergence of loss and loss development trends, seeking, on a timely basis, to both adjust reserves for the impact of trend shifts and to factor the impact of such shifts into the Companys underwriting and pricing on a prospective basis.
Certain reclassifications and format changes have been made to prior years amounts to conform to the 2015 presentation.


| 2011 2010 2009 | (In Millions) | Fair value of restricted awards as of December 31, | Compensation expense included in Entergy’s Consolidated Net Incomefor the year | Tax benefit recognized in Entergy’s Consolidated Net Income for the year | Compensation cost capitalized as part of fixed assets and inventory |


| Purchase Price Allocation | Non-current assets | Property and equipment | Intangible assets -1 | Current liabilities | Long-term liabilities | Fair value of net assets acquired | Goodwill -2 |