| Year Ended | December 31, 2007 | % of | $ | (In millions, except percentages) | North America | Europe/Africa | Asia/Australia | Rest of World | Name | Equity Investments | KEPCO | Polyplastics Co., Ltd. | Fortron Industries LLC | Cost Investments | National Methanol Co. | Kunming Cellulose Fibers Co. Ltd. | Nantong Cellulose Fibers Co. Ltd. | Zhuhai Cellulose Fibers Co. Ltd. |


| Proved propertiesa $12,205 | Unproved propertiesb | Exploration costs | Development costs | $24,820 |


One of our primary goals is for all of our restaurants to continue serving meats that are raised to meet our standards, but we have and will continue to face challenges in doing so.
Some of our restaurants served conventionally raised beef for short periods during 2012 and the beginning of 2013, and more of our restaurants may periodically serve conventionally raised meats in the future due to supply constraints.
When we become aware that one or more of our restaurants will serve conventionally raised meat, we clearly and specifically disclose this temporary change on signage in each affected restaurant, so that customers can avoid those meats if they choose to do so.
Our food costs increased in 2012 as a result of inflationary pressures on many of our ingredients, particularly beef, chicken, and rice, and initiatives to improve the taste and quality of our food.
The increase was partially offset by the impact of menu price increases and relief in avocado prices.
We expect that food cost inflation will continue in 2013 and that our food costs as a percentage of revenue will increase.
If food inflation continues to pressure food costs, we may, after taking into account the general economic environment, consumer confidence, and our sales trends, raise menu prices later in 2013.


| December 31, 2012 December 31, 2011 | In millions | Total securities available for sale (a) | Total securities held to maturity | Total securities |


| Plan Category Number of shares of class A common stock to be issued upon exercise of outstanding options,warrants and rights (a) Weighted-average exercise price of outstanding options, warrants and rights (b) Number of shares of  class A  common stock  remaining available for future issuance under equity compensation plans (excludingshares reflected in column (a)) (c) | Equity compensation plans approved by stockholders | Equity compensation plans not approved by stockholders | Total |


RENTALS AND LEASES The Company leases sales and administrative office facilities, distribution centers, research and manufacturing facilities, as well as vehicles and other equipment under operating leases.
Total rental expense under the Company’s operating leases was $221 million in both 2016 and 2015 and $237 million in 2014.
As of December 31, 2016, identifiable future minimum payments with non-cancelable terms in excess of one year were:


| Cash FlowsMillions of Dollars 2006 2005 2004 | Cash provided by operating activities | Cash used in investing activities | Cash used in financing activities | Net change in cash and cash equivalents |


| At July 31, 2017 At July 31, 2016 | (In millions) | Cash equivalents: | In cash and cash equivalents | In funds held for customers | Total cash and cash equivalents | Available-for-sale securities: | In investments | In funds held for customers | In long-term investments | Total available-for-sale securities |


Table V Allowance for Credit Losses
(1) Includes U. S.  small business commercial charge-offs of $282 million, $345 million, $457 million, $799 million and $1.1 billion in 2015, 2014, 2013, 2012 and 2011, respectively.
(2) Includes U. S.  small business commercial recoveries of $57 million, $63 million, $98 million, $100 million and $106 million in 2015, 2014, 2013, 2012 and 2011, respectively.
(3) Primarily represents the net impact of portfolio sales, consolidations and deconsolidations, and foreign currency translation adjustments.
In addition, the 2011 amount includes a $449 million reduction in the allowance for loan and lease losses related to Canadian consumer card loans that were transferred to LHFS.
(4) Primarily represents accretion of the Merrill Lynch purchase accounting adjustment and the impact of funding previously unfunded positions.


Other Post-retirement Benefits


various factors, including our earnings, financial condition, capital requirements, level of indebtedness and other considerations our board of directors deems relevant.
Future debt obligations and statutory provisions, among other things, may limit, or in some cases prohibit, our ability to pay dividends.
Share Repurchase Program In 2011, the Companys board of directors approved an initial authorization for the Company to repurchase shares of its outstanding common stock of $100 million and approved additional authorizations of $100 million in each of 2012, 2013, 2014, 2015, and February 2016 for a total authorization of $600 million.
The program permits the Company to purchase shares through a variety of methods, including in the open market or through privately negotiated transactions, in accordance with applicable securities laws.
It does not obligate the Company to make any repurchases at any specific time or situation.
For the year ended December 31, 2016, the Company purchased 947,786 shares of common stock at an average cost per share of $63.83, totaling $60.5 million in purchases under the program.
Since inception of the program, the Company purchased 10,947,401 shares of common stock at an average cost per share of $45.95, totaling $503.0 million in purchases under the program.
As of December 31, 2016, the Company had $97 million of availability remaining under its existing share repurchase authorizations.


| December 31, 2015 | Debt (inclusive of discount) | Revolving Credit Facility-1 | Term Loan-1 | 6% Senior Notes due 2020 (the "6% Notes due 2020")(2)(3)(4) | 61/8% CAD Senior Notes due 2021 (the "CAD Notes due 2021")(2)(5) | 61/8% GBP Senior Notes due 2022 (the "GBP Notes")(2)(4)(6) | 6% Senior Notes due 2023 (the "6% Notes due 2023")(2)(3) | 53/4% Senior Subordinated Notes due 2024 (the "53/4% Notes")(2)(3) | Real Estate Mortgages, Capital Leases and Other-7 | Accounts Receivable Securitization Program-8 | Total Long-term Debt | Less Current Portion | Long-term Debt, Net of Current Portion |


| Total 2011 2012-2013 2014-2015 Beyond  2015 No  Expiration  Date | Purchase obligations-1 | Operating lease obligations | Equity funding commitments-2 | Total commitments | Loan payable to banks | Capital lease obligations-3 | Otherlong-term liabilities-4(5) | Total recorded liabilities | Total |


| For the years ended December 31, | 2013 | (In millions) | Water service | Residential | Commercial | Industrial | Public and other | Total water services | Wastewater services | Total |


AIG also has a risk concentration through the investment portfolios of its insurance companies in the U. S.  municipal sector.
AIG holds approximately $45.6 billion (amortized cost) of tax-exempt and taxable securities, $5.9 billion of which are pre-refunded, issued by a wide number of municipal authorities across the U. S.  and its territories.
A majority of these securities are held in available-for-sale portfolios of AIGs domestic propertycasualty insurance companies.
These securities are comprised of the general obligations of states and local governments, revenue bonds issued by these same governments and bonds issued by transportation authorities, universities, state housing finance agencies and hospital systems.
The weighted average credit quality of these issuers is A.  AIG has $985 million of additional exposure to the municipal sector outside of its insurance company portfolios.
Currently, several states, local governments and other issuers are facing pressures on their budgets from the effects of the recession and have had to cut spending, raise taxes and fees and draw on reserve funds.
Consequently, several municipal issuers in AIGs portfolios have been downgraded one or more notches by the major nationally recognized statistical rating agencies.
The most notable of these issuers is the State of California, of which AIG holds approximately $748.1 million of general obligation bonds, $44.9 million of which are pre-refunded, and the state of Illinois, of which AIG holds approximately $238 million, $69 million of which are pre-refunded.
AIG has credit exposure to several European sovereign governments whose ratings have been downgraded or placed under review in recent months by one or more major rating agencies.
The downgrades primarily reflect the large government budget deficits and rising government debt to GDP ratios of these countries.
At December 31, 2010, AIGs exposure to the governments of Portugal, Ireland, Italy, Spain and Hungary, amounted to $1.1 billion.
Four of these five governments experienced rating downgrades during 2010.


Order of Investigation,


| 2017 2016 2015 | Year endedDecember 31,(in millions, except ratios) | Other income | Total noninterest revenue | Net interest income | Total net revenue | Pre-provision profit | Income before income tax expense | Income tax expense | Overhead ratio |


In March 2017, the federal district court denied plaintiffs’ motion for class certification in the two pending class action cases.
The plaintiffs appealed that decision to the U. S.  Court of Appeals for the Ninth Circuit, which has accepted the matter for hearing.
In June 2017, an unaffiliated company that is also a defendant in these cases filed for bankruptcy, which could increase the risk of loss to CMS Energy.
These cases involve complex facts, a large number of similarly situated defendants with different factual positions, and multiple jurisdictions.
Presently, any estimate of liability would be highly speculative; the amount of CMS Energy’s reasonably possible loss would be based on widely varying models previously untested in this context.
If the outcome after appeals is unfavorable, these cases could negatively affect CMS Energy’s liquidity, financial condition, and results of operations.
Bay Harbor: CMS Land retained environmental remediation obligations for the collection and treatment of leachate, a liquid consisting of water and other substances, at Bay Harbor after selling its interests in the development in 2002.
Leachate is produced when water enters into cement kiln dust piles left over from former cement plant operations at the site.
In 2012, CMS Land and the MDEQ finalized an agreement that established the final remedies and the future water quality criteria at the site.
CMS Land completed all construction necessary to implement the remedies required by the agreement and will continue to maintain and operate a system to discharge treated leachate into Little Traverse Bay under an NPDES permit issued in 2010 and renewed in October 2016.
The renewed NPDES permit is valid through September 2020.
Various claims have been brought against CMS Land or its affiliates, including CMS Energy, alleging environmental damage to property, loss of property value, insufficient disclosure of environmental matters, breach of agreement relating to access, or other matters.
CMS Land and other parties have received a demand for payment from the EPA in the amount of $8 million, plus interest and costs.
The EPA is seeking recovery under CERCLA of response costs allegedly incurred at Bay Harbor.
These costs exceed what was agreed to in a 2005 order between CMS Land and the EPA, and CMS Land has communicated to the EPA that it does not believe that this is a valid claim.
The EPA has filed a lawsuit to collect these costs.
At December 31, 2017, CMS Energy had a recorded liability of $48 million for its remaining obligations for environmental remediation.
CMS Energy calculated this liability based on discounted projected costs, using a discount rate of 4.34 percent and an inflation rate of one percent on annual operating and maintenance costs.
The undiscounted amount of the remaining obligation is $61 million.
CMS Energy expects to pay the following amounts for long-term liquid disposal and operating and maintenance costs in each of the next five years:


| 12/31/2009 12/31/2010 12/31/2011 12/31/2012 12/31/2013 12/31/2014 | HUM | S&P 500 | Peer Group |


| Years Ended December 31, | 2013 | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest and debt expense | General and administrative expense | Total expenses | Operating loss |


| As of April 30, 2018 April 30, 2017 | Short-term | Moody's-1 | S&P |


| 2010 2009 2008 | Long-term debt | Short-term debt | Interest income | Interest capitalized | $160.4 |


| Fiscal Year | In Millions | Net earnings, including earnings attributable to redeemable and noncontrollinginterests | Depreciation and amortization | After-taxearnings from joint ventures | Distributions of earnings from joint ventures | Stock-based compensation | Deferred income taxes | Pension and other postretirement benefit plan contributions | Pension and other postretirement benefit plan costs | Divestitures loss | Restructuring, impairment, and other exit costs | Changes in current assets and liabilities, excluding the effects of acquisitions anddivestitures | Other, net | Net cash provided by operating activities |


the Green Giant brand intangible asset as of May 31, 2015, and determined that the fair value of the brand asset no longer exceeded the carrying value of the asset.
Significant assumptions used in that assessment included our updated long-range cash flow projections for the Green Giant business, an updated royalty rate, a weighted-average cost of capital, and a tax rate.
We recorded a $260.0 million impairment charge in restructuring, impairment, and other exit costs in fiscal 2015 related to this asset.
NOTE 7.
FINANCIAL INSTRUMENTS, RISK MANAGEMENT ACTIVITIES, AND FAIR VALUES Financial Instruments The carrying values of cash and cash equivalents, receivables, accounts payable, other current liabilities, and notes payable approximate fair value.
Marketable securities are carried at fair value.
As of May 28, 2017 and May 29, 2016, a comparison of cost and market values of our marketable debt and equity securities is as follows:


We plan to continue increasing the capacity and enhancing the capability and reliability of our infrastructure to support user growth and increased activity on our platform.
We also expect that the amount of revenue generated from the sale of our advertising services on third party publishers’ websites, applications and other offerings will increase, which will also result in an increase in the amount of TAC that we incur.
As a result, we expect that cost of revenue, in particular TAC, will increase in absolute dollar amounts for the foreseeable future and vary in the near term from period to period as a percentage of revenue.


PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 20.
FAIR VALUE OF ASSETS AND LIABILITIES (continued) private mutual funds where the inputs used by the mutual funds were determined to be Level 3.
This activity was partially offset by transfers out of Level 3 as a result of the availability of third party pricing service information that was validated.
Transfers of Commercial Mortgage and Other Loans into Level 3 totaled $81 million and resulted from a reduction in the availability of market available prices during the year due to market illiquidity.
The net amount of Separate Account Assets transferred out of Level 3 for the year ended December 31, 2008 was $607 million.
This resulted from the use of vendor pricing information that the Company was able to validate that was previously unavailable.
Partially offsetting the transfers out for this activity were transfers into Level 3 as a result of further review of valuation methodologies for certain assets that had been previously classified as Level 2.
Nonrecurring Fair Value Measurements—Certain assets and liabilities are measured at fair value on a nonrecurring basis.
Nonrecurring fair value reserve increases resulted in $200 million of losses being recorded for the year ended December 31, 2009 on certain commercial mortgage loans.
The carrying value of these loans as of December 31, 2009 was $331 million.
Similar commercial mortgage loan reserve increases of $36 million were recorded for the year ended December 31, 2008.
The reserves were based on either discounted cash flows utilizing market rates or the fair value of the underlying real estate collateral and were classified as Level 3 in the hierarchy.
In addition, losses of $38 million were recorded for the year ended December 31, 2008 related to commercial loans that were carried at the lower of cost or market.
The fair value measurements were classified as Level 3 in the valuation hierarchy.
The inputs utilized for these valuations are pricing indicators from the whole loan market, which the Company considers its principal market for these loans.
Impairments of $55 million and $26 million were recorded for the years ended December 31, 2009 and 2008, respectively, on certain cost method investments.
The carrying value as of December 31, 2009 of these investments was $218 million.
In addition, impairments of $12 million and $14 million were recorded for the year ended December 31, 2009 and 2008, respectively, on certain equity method investments.
These fair value adjustments were based on inputs classified as Level 3 in the valuation hierarchy.
The inputs utilized were primarily discounted estimated future cash flows and, where appropriate, valuations provided by the general partners taken into consideration with deal and management fee expenses.
Impairments of $12 million for the year ended December 31, 2009 were recorded for mortgage servicing rights.
The impairments were based on internal models and were classified as Level 3 in the hierarchy.
In addition, impairments of $7 million for the year ended December 31, 2009 were recorded for real estate investments, some of which were classified as discontinued operations.
The impairments were based on appraisal values or purchase agreements and were classified as Level 3 in the hierarchy.
For the year ended December 31, 2008, the Company recorded impairments of $316 million on certain equity method investments in operating joint ventures held within the international investments segment.
The inputs used in determining these impairments were classified as Level 3 in the valuation hierarchy and consisted primarily of market multiples and discounted cash flows.
The carrying value of these equity method operating joint ventures as of December 31, 2008 was $281 million.
As discussed in more detail in Note 9, the Company recorded goodwill impairments of $337 million during the year ended December 31, 2008.
The inputs were classified as Level 3 and primarily consisted of discounted cash flows and market multiples.


| Shares/UnitsAuthorized Shares/UnitsOutstanding | 2011 | Entergy Corporation | Utility: | Preferred Stock or Preferred Membership Interests without sinking fund: | Entergy Arkansas, 4.32%-6.45% Series | Entergy Gulf States Louisiana,Series A 8.25 % | Entergy Louisiana, 6.95% Series (a) | Entergy Mississippi, 4.36%-6.25% Series | Entergy New Orleans, 4.36%-5.56% Series | Total Utility Preferred Stock or PreferredMembership Interests without sinking fund | Entergy Wholesale Commodities: | Preferred Stock without sinking fund: | Entergy Asset Management, 8.95% rate (b) | Other | Total Subsidiaries’ Preferred Stockwithout sinking fund |


| 2007 2006 Variance | Current assets: | Cash and cash equivalents | Inventories | Prepaid expenses and other current assets | Deferred income taxes | 691.9 | Current liabilities: | Accounts payable | Accrued expenses | Income taxes payable | Other, net | 379.8 | Working capital |


| 2011 Entergy Arkansas Entergy Gulf States Louisiana Entergy Louisiana Entergy Mississippi Entergy New Orleans Entergy Texas System Energy | (In Thousands) | Deferred tax liabilities: | Plant basis differences - net | Regulatory asset for income taxes - net | Power purchase agreements | Nuclear decommissioning trusts | Deferred fuel | Other | Total | Deferred tax assets: | Accumulated deferred investment | tax credits | Pension and OPEB | Nuclear decommissioning liabilities | Sale and leaseback | Provision for regulatory adjustments | Provision for contingencies | Unbilled/deferred revenues | Customer deposits | Rate refund | Net operating loss carryforwards | Other | Total | Noncurrent accrued taxes (including | unrecognized tax benefits) | Accumulated deferred income | taxes and taxes accrued |


| Year Ended April 30, 2006 2005 | Average servicing portfolio: | With related MSRs | Without related MSRs | $75,628,458 | Ending servicing portfolio: | With related MSRs | Without related MSRs | $73,382,077 | Number of loans serviced | Average delinquency rate | Weighted average FICO score | Weighted average interest rate(WAC) of portfolio | Weighted average rate earned | Carrying value of MSRs |


NOTE 12.
REGULATORY REQUIREMENTS As a registered broker-dealer and member of the New York Stock Exchange (“NYSE”) and the Financial Industry Regulatory Authority (“FINRA”), Ridge Clearing & Outsourcing Solutions, Inc.  (“Ridge Clearing”) is subject to the Uniform Net Capital Rule 15c3-1 of the Securities Exchange Act of 1934 (“Rule 15c3-1”).
Ridge Clearing computes its net capital under the alternative method permitted by Rule 15c3-1, which requires Ridge Clearing to maintain minimum net capital equal to the greater of $1.5 million or 2% of aggregate debit items arising from customer transactions.
The NYSE and FINRA may require a member firm to reduce its business if its net capital is less than 4% of aggregate debit items, or may prohibit a member firm from expanding its business or paying cash dividends if resulting net capital would be less than 5% of aggregate debit items.
At June 30, 2009, Ridge Clearing had net capital of $217.4 million, which was approximately 30.9% of aggregate debit items and exceeded the minimum requirements by $203.3 million.
Ridge Clearing is also subject to Rule 15c3-3 of the Securities Exchange Act of 1934 (“Rule 15c3-3”).
In addition, in order to allow correspondent broker-dealers to classify their assets held by Ridge Clearing as allowable assets in their computation of net capital, Ridge Clearing has agreed to compute a separate reserve requirement for the proprietary accounts of introducing brokers (“PAIB”).
Pursuant to Rule 15c3-3, Ridge Clearing computes its customer and PAIB segregation requirements on the business day following the required computation date on an 'as of' basis.
Accordingly, when Ridge Clearing computed its customer and PAIB requirements as of June 30, 2009, it determined that approximately $235.4 million and $51.1 million, respectively, of funds or securities were required to be segregated in accordance with Rule 15c3-3.
The following business day, pursuant to Rule 15c3-3, Ridge Clearing arranged for approximately $258.2 million and $80.5 million of cash to be segregated in its special reserve accounts for the exclusive benefit of customers and PAIB, exceeding actual requirements by approximately $22.8 million and $29.4 million, respectively.
At June 30, 2009, cash of approximately $164.2 million and $80.3 million had been segregated in special reserve accounts for the exclusive benefit of customers and PAIB, respectively, in accordance with Rule 15c3-3, based on the regulatory requirements computed as of June 26, 2009.


| Short-term Long-term Outlook | DBRS |


Each quarter we analyze the likelihood that our deferred tax assets will be realized.
Realization of the deferred tax assets ultimately depends on the existence of sufficient taxable income of the appropriate character in either the carryback or carryforward period.
A valuation allowance is recorded if, based on the weight of all available positive and negative evidence, it is more likely than not (a likelihood of more than 50%) that some portion, or all, of a deferred tax asset will not be realized.
A summary of our deferred tax assets is included in Note 9.
U. S.  income taxes are not provided on foreign earnings when such earnings are indefinitely reinvested offshore.
At least annually, we evaluate our investment strategies for each foreign tax jurisdiction in which we operate to determine whether foreign earnings will be indefinitely reinvested offshore.
We recognize a tax benefit associated with a tax position when, in our judgment, it is more likely than not that the position will be sustained based upon the technical merits of the position.
For a tax position that meets the more likely than not recognition threshold, we measure the income tax benefit as the largest amount that we judge to have a greater than 50% likelihood of being realized.
A liability is established for the unrecognized portion of any tax position.
Our liability for unrecognized tax benefits is adjusted periodically due to changing circumstances, such as the progress of tax audits, case law developments and new or emerging legislation.
The years open to tax examinations vary by jurisdiction.
While it is often difficult to predict the final outcome or the timing of resolution of any particular tax matter, we believe our liability for unrecognized tax benefits is appropriate.
We consider a tax position to be resolved at the earlier of the issue being effectively settled, settlement of an examination, or the expiration of the statute of limitations.
Upon resolution of a tax position, any liability for unrecognized tax benefits will be released.
Our liability for unrecognized tax benefits is generally presented as noncurrent.
However, if we anticipate paying cash within one year to settle an uncertain tax position, the liability is presented as current.
We classify interest and penalties associated with our liability for unrecognized tax benefits as income tax expense.
Our largest permanent item in computing both our taxable income and effective tax rate is the deduction allowed for statutory depletion.
The impact of statutory depletion on the effective tax rate is presented in Note 9.
The deduction for statutory depletion does not necessarily change proportionately to changes in pretax earnings.
COMPREHENSIVE INCOME We report comprehensive income in our Consolidated Statements of Comprehensive Income and Consolidated Statements of Equity.
Comprehensive income comprises two subsets: net earnings and other comprehensive income (OCI).
OCI includes fair value adjustments to cash flow hedges, actuarial gains or losses and prior service costs related to pension and postretirement benefit plans.
For additional information about comprehensive income see Note 14.
EARNINGS PER SHARE (EPS) Earnings per share are computed by dividing net earnings by the weighted-average common shares outstanding (basic EPS) or weighted-average common shares outstanding assuming dilution (diluted EPS), as set forth below:


| As of December 31, 2012 As of December 31, 2011 | (in millions) | Assets | Money market and government funds | Currency hedge contracts | $39 | Liabilities | Currency hedge contracts | Accrued contingent consideration | $57 |


Owned and leased hotel revenues decreased during the year ended December 31, 2017 compared to the year ended December 31, 2016, as a result of unfavorable foreign currency changes, which decreased revenues by $41 million, offset by an increase in revenues on a currency neutral basis of $39 million.
On a currency neutral basis, owned and leased hotel revenues increased primarily as a result of an increase at our comparable hotels of $41 million due to an increase in RevPAR of 4.8 percent, attributable to increases in ADR and occupancy of 3.2 percent and 1.2 percentage points, respectively.
This increase was partially offset by a decrease in revenues of $5 million due to a net disposal of properties between January 1, 2016 and December 31, 2017.


| Year Ended December 31, | 2007 | Reconstructive | Knees | Hips | Extremities | Dental | Total | Trauma | Spine | OSP and other | Total |


| Year ended December 31, | 2017 | (in millions, except as noted) | Net sales | Cost of sales | Gross margin | Gross margin percentage | Sales volume by product tons (000s) | Sales volume by nutrient tons (000s)(1) | Average selling price per product ton | Average selling price per nutrient ton-1 | Gross margin per product ton | Gross margin per nutrient ton-1 | Depreciation and amortization | Unrealized net mark-to-market loss (gain) on natural gas derivatives |


| Mohawk Common Stock | High | 2016 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | 2017 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter |


| December 31 | (Dollars in millions) | Consumer | Residential mortgage-2 | U.S. credit card | Non-U.S. credit card | Direct/Indirect consumer | Other consumer | Total consumer | Commercial | U.S. commercial | Commercial real estate | Commercial lease financing | Non-U.S. commercial | 109 | U.S. small business commercial | Total commercial | Total accruing loans and leases past due 90 days or more-3 |


| Year Ended December 31, Change | (in thousands, except percentages) | Revenue: | Lease licenses | Perpetual licenses | Software licenses | Maintenance | Service | Maintenance and service | Total revenue |


| December 31, 2010 December 31, 2009 | Carrying Amount | (in millions) | Assets: | Fixed maturities, held to maturity | Commercial mortgage and other loans-1 | Policy loans | Liabilities: | Policyholders’ account balances - investment contracts | Short-term and long-term debt-1 | Debt of consolidated VIEs | Bank customer liabilities |


| 2006 2005 2004 | Basic | Income | Income from continuing operations | Income from discontinued operations, net of taxes | Cumulative effect of accounting change, net of taxes | Net income | Average shares | Average shares outstanding | Dilutive securities issuable in connection with stock plans | Total average shares | Earnings (loss) per share of common stock | Income from continuing operations | Income from discontinued operations, net of taxes | Cumulative effect of accounting change, net of taxes | Net income |


| Amount (In Millions) | 2009 net revenue | Volume/weather | Net gas revenue | Effect of 2009 rate case settlement | Other | 2010 net revenue |


| Cash provided by (used for) 2018 2017 2016 | Operating activities | Investing activities | Financing activities |


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


Refer to Note 1 and Note 5 to the Consolidated Financial Statements for further discussion of these derivative instruments and our hedging policies.
Interest Rate Risk The total notional amount of interest rate swaps outstanding at December 31, 2017 and 2016 was $350 million.
The notional amount relates to fixed-to-floating interest rate swaps which convert a comparable amount of fixed-rate debt to variable rate debt at December 31, 2017 and 2016.
A hypothetical 100 basis point increase in interest rates applied to this now variable-rate debt as of December 31, 2017 would have increased interest expense by approximately $3.5 million and $3.6 million for the full year 2017 and 2016, respectively.
We consider our current risk related to market fluctuations in interest rates on our remaining debt portfolio, excluding fixed-rate debt converted to variable rates with fixed-to-floating instruments, to be minimal since this debt is largely long-term and fixed-rate in nature.
Generally, the fair market value of fixed-rate debt will increase as interest rates fall and decrease as interest rates rise.
A 100 basis point increase in market interest rates would decrease the fair value of our fixed-rate long-term debt at December 31, 2017 and December 31, 2016 by approximately $134 million and $142 million, respectively.
However, since we currently have no plans to repurchase our outstanding fixed-rate instruments before their maturities, the impact of market interest rate fluctuations on our long-term debt does not affect our results of operations or financial position.
In order to manage interest rate exposure, in previous years we utilized interest rate swap agreements to protect against unfavorable interest rate changes relating to forecasted debt transactions.
These swaps, which were settled upon issuance of the related debt, were designated as cash flow hedges and the gains and losses that were deferred in other comprehensive income are being recognized as an adjustment to interest expense over the same period that the hedged interest payments affect earnings.
During 2016, we had one interest rate swap agreement in a cash flow hedging relationship with a notional amount of $500 million, which was settled in connection with the issuance of debt in August 2016, resulting in a payment of approximately $87 million which is reflected as an operating cash flow within the Consolidated Statement of Cash Flows.


were more than offset by higher raw material and energy costs ($312 million), increased market related downtime ($187 million) and other items ($30 million).
Compared with 2003, higher 2005 earnings in the Brazilian Papers, U. S.  coated papers and U. S.  market pulp businesses were offset by lower earnings in the U. S.  uncoated papers and the European Papers businesses.
The Printing Papers segment took 995,000 tons of downtime in 2005, including 540,000 tons of lack-of-order downtime to align production with customer demand.
This compared with 525,000 tons of downtime in 2004, of which 65,000 tons related to lack-of-orders.


| Site Location Start Court or Agency Estimated Liability (a) % of Total (a) | Maxey Flats Nuclear | Curcio Scrap Metal | Metal Bank of America | Cortese Landfill | Global Landfill | PCB Treatment, Inc. | Borne Chemical | Millions of kWhs Twelve Months Ended | Description | Residential/Religious | Commercial/Industrial | Other | Total Full Service Customers | Retail access customers | Total Service Area | Thousands of DTHs Twelve Months Ended | Description | Firm Sales | Residential | General | Firm Transportation | Total Firm Sales and Transportation | Off Peak/Interruptible Sales | Non-Firm Transportation of Gas | Generation Plants | Other | Total Sales and Transportation |


| 2018 2017 2016 | Derivative | $8 |


| Commitment Amount by Period of Expiration as of December 2012 Total Commitmentsas of December | in millions | Commitments to extend credit1 | Commercial lending:2 | Investment-grade | Non-investment-grade | Warehouse financing | Total commitments to extend credit | Contingent and forward starting resale and securities borrowing agreements3 | Forward starting repurchase and secured lendingagreements3 | Letters of credit4 | Investment commitments | Other | Total commitments |


| 2004 2003 2002 | Net debt to net capital at the end of the year | Effect of subtracting cash from debt | Debt to capital at the end of the year |


| 2010 2009 2008 | (in millions) | Korean asset management operations-1 | Equity sales, trading and research operations-2 | Real estate investments sold or held for sale-3 | Mexican asset management operations-4 | International securities operations-5 | Healthcare operations-6 | Income from discontinued operations before income taxes | Income tax expense | Income (loss) from discontinued operations, net of taxes |


Table of Contents 10 increase in the number of incentives for and use of generic products.
Additionally, improvements in intellectual property laws are sought in the United States and other countries through reform of patent and other relevant laws and implementation of international treaties.
The Company has the following key U. S.  patent protection for drug candidates under review in the United States by the FDA.
Additional patent term may be provided for these pipeline candidates based on Patent Term Restoration and Pediatric Exclusivity.


| 2017 2016 | (millions of dollars) | Gross goodwill balance, January 1 | Accumulated impairment losses, January 1 | Net goodwill balance, January 1 | Goodwill during the year: | Acquisitions* | Held for sale | Divestitures** | Translation adjustment and other | Ending balance, December 31 |


| In millions Dec. 31 2011 Dec. 31 2010 | Consumer lending: | Real estate-related | Credit card (a) | Other consumer | Total consumer lending | Total commercial lending | Total TDRs | Nonperforming | Accruing (b) | Credit card (a) | Total TDRs |


| Level 3 | Balance as of January 1, 2018 | Actual return on assets | Purchases, issuances and settlements, net | Balance as of December 31, 2018 |


| December 31, 2012 December 31, 2011 | $ in millions | Financial Assets (Liabilities) | Marketable Securities | Trading | Available-for-sale | Held-to-maturity time deposits | Derivatives | Long-term debt, including current portion |


| Notes Payable Principal Amount Date Issued Date Due RedeemablePrior toMaturity -1 EffectiveInterest Rate -2 | (In millions) | 4.75% senior notes | 3.625% senior notes | 3.75% senior notes | 4.0% senior notes | 4.375% senior notes | 4.75% senior notes | 5.75% senior notes |


| Year ended December 31, | (Dollars in thousands, except employees) | Compensation and benefits: | Salaries and wages | Incentive compensation | ESOP | Other employee incentives and benefits -1 | Total compensation and benefits | Period-end full-time equivalent employees | Average full-time equivalent employees |


| In millions 2005 2004 2003 | Printing Papers | Industrial Packaging | Consumer Packaging | Distribution | Forest Products | Specialty Businesses and Other | Subtotal | Corporate and other | Total from continuing operations |


| Three Months Ended | Mar 29,2009 | ($ amounts in 000's) | Cost of product revenue | Cost of services revenue | Research and development | Sales and marketing | General and administrative | Total stock-based compensation | Asset acquisition related write-offs | Total stock based compensation and asset acquisition related write-offs | Average for the Year Ended December | $ in millions | Denomination | U.S. dollar | Non-U.S.dollar | Total | Asset Class | Overnight cash deposits | U.S. government obligations | U.S. agency obligations | Non-U.S.governmentobligations | Total | Entity Type | Group Inc. and Funding IHC | Major broker-dealer subsidiaries | Major bank subsidiaries | Total | Average for the Three Months Ended | $ in millions | Total HQLA | Eligible HQLA | Net cash outflows | LCR |


| Grantor trusts Collateralized private investment vehicles CMBS Hedge funds -2 Total | (in millions) | December 31, 2012 | Fixed maturities, available-for-sale | Fixed maturities, trading | Other investments | Accrued investment income | Total assets | Deferred income taxes | Other liabilities -1 | Total liabilities | December 31, 2011 | Fixed maturities, available-for-sale | Fixed maturities, trading | Equity securities, trading | Other investments | Cash and cash equivalents | Accrued investment income | Premiums due and other receivables | Total assets | Deferred income taxes | Other liabilities -1 | Total liabilities |


| 2018 2017 | December 31, (in millions) | Loans(a) | Nonaccrual loans | Loans reported as trading assets | Loans | Subtotal | All other performing loans | Loans reported as trading assets | Loans | Total loans | Long-term debt | Principal-protected debt | Nonprincipal-protected debt(b) | Total long-term debt | Long-term beneficial interests | Nonprincipal-protected debt(b) | Total long-term beneficial interests |


| 2016 $76,676 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total minimum lease payments | Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments | Net minimum lease payments | Less: Amount representing interest | Present value of net minimum lease payments | Less: Current portion | Long-term portion of capital lease obligations |


| 2008 2007 | (in millions of U.S. dollars) | Property and all other | Case reserves | Loss expenses | IBNR | Subtotal | Casualty | Case reserves | Loss expenses | IBNR | Subtotal | A&H | Case reserves | Loss expenses | IBNR | Subtotal | Total | Case reserves | Loss expenses | IBNR | Total |


vesting, RSUs granted under the 2007 Omnibus Incentive Plan do not have dividend equivalent rights, do not have voting rights and the shares underlying the RSUs are not considered issued and outstanding.
With respect to RSUs granted under the Assumed Plans, in connection with the Companys assumption of these RSUs the number of shares underlying each RSU were adjusted to reflect the substitution of the Companys stock for the stock of the applicable acquired company, and certain of these RSUs have dividend equivalent rights.
In 2015, the Company introduced into its executive officer equity compensation program PSUs that vest based on the Companys total shareholder return ranking relative to the S&P 500 Index over a three-year performance period and are subject to an additional two-year holding period, and are entitled to dividend equivalent rights.
In 2017, 2016 and 2015 one-half of the annual equity awards granted to the Companys executive officers were granted as stock options, one-quarter were granted as RSUs and one-quarter were granted as PSUs.
The PSUs were issued under the Companys 2007 Omnibus Incentive Plan.
In connection with the Fortive Separation and pursuant to the anti-dilution provisions of the 2007 Omnibus Incentive Plan, the Company made certain adjustments to the exercise price and the number of shares underlying stock-based compensation awards with the intention of preserving the intrinsic value of the awards prior to the Separation.
Accordingly, the number of shares underlying each stock-based award outstanding as of the date of the Separation was multiplied by a factor of 1.32 and the related exercise price for stock options was divided by a factor of 1.32 which resulted in no increase in the intrinsic value of awards outstanding.
The stock-based compensation awards continue to vest over their original vesting period.
These adjustments to the Companys stock-based compensation awards did not result in additional compensation expense.
Stockbased compensation awards that were held by employees who transferred to Fortive in connection with the Separation were canceled and replaced by awards issued by Fortive.
The equity compensation awards granted by the Company generally vest only if the employee is employed by the Company (or in the case of directors, the director continues to serve on the Company Board) on the vesting date or in other limited circumstances.
To cover the exercise of options and vesting of RSUs and PSUs, the Company generally issues new shares from its authorized but unissued share pool, although it may instead issue treasury shares in certain circumstances.
The Company accounts for stock-based compensation by measuring the cost of employee services received in exchange for all equity awards granted based on the fair value of the award as of the grant date.
The Company recognizes the compensation expense over the requisite service period (which is generally the vesting period but may be shorter than the vesting period if the employee becomes retirement eligible before the end of the vesting period).
The fair value for RSU awards was calculated using the closing price of the Companys common stock on the date of grant, adjusted for the fact that RSUs (other than certain RSUs granted under the Assumed Plans) do not accrue dividends.
The fair value of the PSU awards was calculated using a Monte Carlo pricing model.
The fair value of the options granted was calculated using a Black-Scholes Merton option pricing model (Black-Scholes).
The following summarizes the assumptions used in the Black-Scholes model to value options granted during the years ended December 31:


| 2007 2006 2005 | Shares Outstanding | (In $ millions, except share data) | Common Stock | Balance as of the beginning of the year | Conversion of Series B common stock to Series A common stock | Issuance of Series A common stock | Issuance of Series A common stock related to stock option exercises, including related tax benefits | Purchases of treasury stock, including related fees | Common stock dividends | Balance as of the end of the year | Preferred Stock | Balance as of the beginning of the year | Issuance of preferred stock | Balance as of the end of the year | Treasury Stock | Balance as of the beginning of the year | Purchases of treasury stock, including related fees | Balance as of the end of the year | Additional Paid-in Capital | Balance as of the beginning of the year | Indemnification of demerger liability | Series A common stock dividends | Preferred stock dividends | Net proceeds from issuance of common stock | Net proceeds from issuance of preferred stock | Net proceeds from issuance of discounted common stock | Stock-based compensation | Special cash dividend to Original Shareholders | Issuance of Series A common stock related to stock option exercises, including related tax benefits | Balance as of the end of the year | Retained Earnings | Balance as of the beginning of the year | Net earnings | Series A common stock dividends | Preferred stock dividends | Adoption of FIN 48 (see Note 20) | Balance as of the end of the year | Accumulated Other Comprehensive Income (Loss), Net | Balance as of the beginning of the year | Unrealized gain on securities | Additional minimum pension liability | Foreign currency translation | Unrealized gain (loss) on derivative contracts | Pension and postretirement benefits (revised) | Adjustment to initially apply FASB Statement No. 158, net of tax (revised) | Balance as of the end of the year | Total Shareholders’ Equity | Comprehensive Income: | Net earnings | Other comprehensive income (loss), net of tax: | Unrealized gain on securities | Additional minimum pension liability | Foreign currency translation | Unrealized gain (loss) on derivative contracts | Pension and postretirement benefits (revised) | Total comprehensive income |


| Years Ended December 31, | 2008 | (In millions) | Operating Revenues | Premiums | Net investment income | Other revenues | Total operating revenues | Operating Expenses | Policyholder benefits and claims and policyholder dividends | Capitalization of DAC | Amortization of DAC and VOBA | Other expenses | Total operating expenses | Provision for income tax expense (benefit) | Operating earnings |


Ameren Illinois cash used in investing activities increased $141 million during 2012, compared with 2011.
Capital expenditures increased $91 million as a result of increased expenditures for maintenance and reliability capital projects, including $27 million for IEIMA projects, which more than offset a $16 million decrease in storm restoration costs.
In 2011, cash flows from investing activities benefited from repayments of advances previously paid to ATXI as a result of the completion of a project under a joint ownership agreement.2011 versus 2010 Amerens cash used in investing activities decreased by $48 million during 2011, compared with 2010.
In 2011, cash flows from investing activities benefited from an increase of proceeds from property sales as well as $8 million in proceeds from the sale of its investment in a leveraged lease and a $9 million payment received from the DOE under the terms of an Ameren Missouri settlement with the DOE in 2011 related to nuclear waste disposal.
Net cash used for capital expenditures decreased $12 million during 2011, compared with 2010.
Reductions in capital expenditures caused by the completion of two energy center scrubber projects in 2010 were offset, in part, by an increase in storm-related repair costs, an increase in electric transmission investments, and expenditures for a third energy center scrubber project in 2011.
Ameren Missouris cash used in investing activities decreased by $73 million during 2011, compared with 2010, principally because of a $74 million decrease in capital expenditures and a $9 million payment received from the DOE in 2011 under the terms of the settlement with the DOE related to nuclear waste disposal.
These cash benefits were reduced by a $6 million net decrease in nuclear decommissioning trust fund activities.
Capital expenditures were lower in 2011 as a result of the completion in 2010 of two scrubbers at Ameren Missouris Sioux energy center and boiler projects, which offset a $28 million increase in capital expenditures related to storm-related repair costs.
Ameren Illinois cash used in investing activities increased by $49 million during 2011, compared with 2010.
There was a $70 million increase in capital expenditures, primarily as a result of increased investment in electric transmission assets and a $17 million increase in capital expenditures related to storm-related repair costs.
In 2011, cash flows from investing activities benefited from the repayments of advances previously paid to ATXI, as a result of the completion of a project under a joint ownership agreement.
In 2010, cash flows from investing activities benefited from the proceeds received on an intercompany note receivable, offset, in part, by advances to ATXI.


Acetate Products has production sites in the United States, Mexico, the United Kingdom and Belgium, along with sites at its three acetate ventures in China.
In November 2012, we ceased manufacturing acetate tow and acetate flake at our Spondon, Derby, United Kingdom site.
We will continue to manufacture our Clarifoil?
film at this facility.
Our Nutrinova business is a leading international supplier of premium quality ingredients for the food, beverage and pharmaceutical industries.
The company produces and sells Sunett?
(acesulfame potassium), a high intensity sweetener.
It is also one of the world's largest producers of food protection ingredients, such as potassium sorbates and sorbic acid.
Nutrinova's expertise is based on its more than sixty years of experience in developing and marketing specialty ingredients to the food and beverage and pharmaceutical industries.
While this business has traditionally focused on providing low calorie sweeteners in the beverage industry, it continues to target high value opportunities in more diverse applications such as oral hygiene, pharmaceuticals, dairy and cereals.
During 2012, Nutrinova announced Sunett?
SL, the first new line of product from the Nutrinova's SunsationSM platform.
Sunett?
SL products are drop-in solutions that can be easily incorporated into customers' food and beverage formulations, helping customers bring products to market faster.
Sensory tests carried out by an accredited external institute confirm that Sunett?
SL significantly improves the sweetness and mouth-feel perception of sugar-free and sugar-reduced products.
Nutrinova has a production facility in Germany, with sales and distribution facilities in all major regions of the world.  ?
Key Products Acetate flake, acetate tow and acetate film (Clarifoil).
Acetate tow is a fiber used primarily in cigarette filters.
In order to produce acetate tow, we first produce acetate flake by processing wood pulp with acetic acid and acetic anhydride.
Wood pulp generally comes from reforested trees and is purchased externally from a variety of sources, and acetic anhydride is an intermediate chemical that we produce from acetic acid.
The acetate flake is then further processed into acetate tow.
Flake can also be solvent cast to create a film which is primarily used in packaging for food and high-end luxury goods.
Sales of acetate tow amounted to 15%, 14% and 15% of our consolidated net sales for the years ended December 31, 2012, 2011 and 2010, respectively.
Sunett?
sweeteners.
Acesulfame potassium, a high intensity sweetener sold under the trademark Sunett?
, is used in a variety of beverages, confections and dairy products throughout the world.
Sunett?
sweetener is the ideal blending partner for caloric and non-caloric sweeteners and is recognized for its consistent product quality and reliable supply.
Food protection ingredients.
Nutrinova's food protection ingredients are mainly used in foods, beverages and personal care products.
Sorbates pricing is extremely sensitive to demand and industry capacity and is not necessarily dependent on the cost of raw materials.  ?
Geographic Regions The following table illustrates the destination of the net sales of the Consumer Specialties segment by geographic region.


| As of and for the Year Ended December 31, | (dollars in millions) | Total Allowance for Loan and Lease Losses—Ending: | Commercial | Commercial real estate | Leases | Qualitative-1 | Total commercial loans and leases | Residential mortgages | Home equity loans | Home equity lines of credit | Home equity loans serviced by others | Home equity lines of credit serviced by others | Automobile | Education | Credit cards | Other retail | Qualitative-1 | Total retail loans | Unallocated-1(Eliminated in 2013) | Total allowance for loan and lease losses—ending | Reserve for Unfunded Lending Commitments—Beginning | Provision for unfunded lending commitments | Reserve for unfunded lending commitments—ending | Total Allowance for Credit Losses—Ending |


| Cost Gross Unrealized Losses Estimated Fair Market Value | Auction rate securities: | Debt instruments with contractual maturity dates in 2021, 2033, and 2036 | Preferred stock with no maturity dates | Total | 2007 | (In millions, except per share data) | Consolidated Statements of Operations Data: | Net sales | Gross profit-1 | Operating profit-1 | Earnings before income tax provision-2 | Net earnings | Net earnings per common share-3: | Basic | Diluted | Common stock dividends paid-4 | Series A convertible preferred stock dividends-5 | Consolidated Balance Sheet Data: | Cash and cash equivalents | Total assets | Working capital | Long-term debt, less current portion-5(6) | Total shareholders' equity-4 | Other Data: | EBIT-7 | Depreciation and amortization | EBITDA-7 | Capital expenditures-8 |


| Year ended December 31, 2012 vs. 2011Favorable/(Unfavorable) Change | In millions | Gross margin | Selling, general and administrative expenses | Research, development and engineering expenses | Equity, royalty and interest income from investees |


exchange memberships.
Also contributing to the increase in adjusted operating income was improved results from the segments asset management operations, principally reflecting higher performance fees and asset management fees in a joint venture, as well as more favorable sales and trading results from our global commodities group business.
Adjusted operating income in 2006 and 2005 includes $21 million and $24 million, respectively, of fee revenue from the Korean government under an agreement entered into in connection with the acquisition in 2004 of PISC, related to the provision of asset management and brokerage services, which agreement extends until February 27, 2009.2005 to 2004 Annual Comparison.
Adjusted operating income increased $29 million, from $77 million in 2004 to $106 million in 2005.
This increase is primarily a result of the acquisition of PISC, as the prior year reflects only ten months of results of the acquired business.
Also contributing to the increase in adjusted operating income was higher fee and commission income from our Korean asset management operations, which encompasses PISC, partially offset by a corresponding increase in operating expenses, including minority interest, during the current year.
Adjusted operating income in 2005 and 2004 includes $24 million and $20 million, respectively, of fee revenue from the Korean government under the agreement discussed above.
Revenues 2006 to 2005 Annual Comparison.
Revenues, as shown in the table above under Operating Results, increased $103 million, from $487 million in 2005 to $590 million in 2006.
This increase includes income recognized in 2006 from market value changes on securities held principally relating to trading exchange memberships.
Also contributing to this increase was higher revenues from our global commodities group business, our Korean asset management operations and a joint venture as discussed above.2005 to 2004 Annual Comparison.
Revenues increased $41 million, from $446 million in 2004 to $487 million in 2005 primarily due to the results of PISC, as discussed above.
Expenses 2006 to 2005 Annual Comparison.
Expenses, as shown in the table above under Operating Results, increased $66 million, from $381 million in 2005 to $447 million in 2006, primarily due to higher expenses corresponding with the higher level of revenues generated by our global commodities group business and our Korean asset management operations.2005 to 2004 Annual Comparison.
Expenses increased $12 million, from $369 million in 2004 to $381 million in 2005 primarily due to the results of PISC, as discussed above.
Corporate and Other Corporate and Other includes corporate operations, after allocations to our business segments, and real estate and relocation services.
Corporate operations consist primarily of: (1) corporate-level income and expenses, after allocations to any of our business segments, including income and expense from our qualified pension and other employee benefit plans and investment returns on capital that is not deployed in any of our segments; (2) returns from investments that we do not allocate to any of our business segments, including a debtfinanced investment portfolio, as well as the impact of transactions with other segments; and (3) businesses that we have placed in winddown status but have not divested.


At December 31, 2013, the fair value of the qualified pension plan assets was greater than both the accumulated benefit obligation and the projected benefit obligation.
The nonqualified pension plan is unfunded.
Contributions from PNC and, in the case of the postretirement benefit plans, participant contributions cover all benefits paid under the nonqualified pension plan and postretirement benefit plans.
The postretirement plan provides benefits to certain retirees that are at least actuarially equivalent to those provided by Medicare Part D and accordingly, we receive a federal subsidy as shown in Table 112.
In March 2010, the Patient Protection and Affordable Care Act (PPACA) was enacted.
Key aspects of the PPACA which are reflected in our financials include the excise tax on highcost health plans beginning in 2018 and fees for the Transitional Reinsurance Program and the Patient-Centered Outcomes Fund.
These provisions did not have a significant effect on our postretirement medical liability or costs.
The Early Retiree Reinsurance Program (ERRP) was established by the PPACA.
Congress appropriated funding of $5.0 billion for this temporary ERRP to provide financial assistance to employers, unions, and state and local governments to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare, including their spouses, surviving spouses, and dependents.
In 2013, PNC did not receive reimbursement related to the 2012 plan year.
PNC received reimbursement of $.9 million related to the 2011 plan year in 2012.
PNC PENSION PLAN ASSETS Assets related to our qualified pension plan (the Plan) are held in trust (the Trust).
Effective July 1, 2011, the trustee is The Bank of New York Mellon.
The Trust is exempt from tax pursuant to section 501(a) of the Internal Revenue Code (the Code).
The Plan is qualified under section 401(a) of the Code.
Plan assets consist primarily of listed domestic and international equity securities, U. S.  government and agency securities, corporate debt securities, and real estate investments.
The Plan held no PNC common stock as of December 31, 2013 and December 31, 2012.
The PNC Financial Services Group, Inc.
Administrative Committee (the Administrative Committee) adopted the Pension Plan Investment Policy Statement, including target allocations and allowable ranges, on August 13, 2008.
On February 25, 2010, the Administrative Committee amended the investment policy to include a dynamic asset allocation approach and also updated target allocation ranges for certain asset categories.
On May 23, 2013, the Administrative Committee amended the investment policy to update the target allocation ranges for certain asset categories.
The long-term investment strategy for pension plan assets is to: ?
Meet present and future benefit obligations to all participants and beneficiaries, ?
Cover reasonable expenses incurred to provide such benefits, including expenses incurred in the administration of the Trust and the Plan, ?
Provide sufficient liquidity to meet benefit and expense payment requirements on a timely basis, and ?
Provide a total return that, over the long term, maximizes the ratio of trust assets to liabilities by maximizing investment return, at an appropriate level of risk.
Under the dynamic asset allocation strategy, scenarios are outlined in which the Administrative Committee has the ability to make short to intermediate term asset allocation shifts based on factors such as the Plans funded status, the Administrative Committees view of return on equities relative to long term expectations, the Administrative Committees view on the direction of interest rates and credit spreads, and other relevant financial or economic factors which would be expected to impact the ability of the Trust to meet its obligation to participants and beneficiaries.
Accordingly, the allowable asset allocation ranges have been updated to incorporate the flexibility required by the dynamic allocation policy.
The Plans specific investment objective is to meet or exceed the investment policy benchmark over the long term.
The investment policy benchmark compares actual performance to a weighted market index, and measures the contribution of active investment management and policy implementation.
This investment objective is expected to be achieved over the long term (one or more market cycles) and is measured over rolling five-year periods.
Total return calculations are timeweighted and are net of investment-related fees and expenses.
The asset strategy allocations for the Trust at the end of 2013 and 2012, and the target allocation range at the end of 2013, by asset category, are as follows.
Table 113: Asset Strategy Allocations


| For the years ended December 31, | 2013 | (Before tax) | Fixed maturities [2] | Equity securities, AFS | Mortgage loans | Policy loans | Limited partnerships and other alternative investments | Other investments [3] | Investment expense | Total securities AFS and other | Equity securities, trading | Total net investment income (loss) | Total securities, AFS and other excluding limited partnerships and other alternative investments |


the analysis of our depreciation studies.
Changes in the estimated service lives of our assets and their related depreciation rates are implemented prospectively.
Under group depreciation, the historical cost (net of salvage) of depreciable property that is retired or replaced in the ordinary course of business is charged to accumulated depreciation and no gain or loss is recognized.
The historical cost of certain track assets is estimated using (i) inflation indices published by the Bureau of Labor Statistics and (ii) the estimated useful lives of the assets as determined by our depreciation studies.
The indices were selected because they closely correlate with the major costs of the properties comprising the applicable track asset classes.
Because of the number of estimates inherent in the depreciation and retirement processes and because it is impossible to precisely estimate each of these variables until a group of property is completely retired, we continually monitor the estimated service lives of our assets and the accumulated depreciation associated with each asset class to ensure our depreciation rates are appropriate.
In addition, we determine if the recorded amount of accumulated depreciation is deficient (or in excess) of the amount indicated by our depreciation studies.
Any deficiency (or excess) is amortized as a component of depreciation expense over the remaining service lives of the applicable classes of assets.
For retirements of depreciable railroad properties that do not occur in the normal course of business, a gain or loss may be recognized if the retirement meets each of the following three conditions: (i) is unusual, (ii) is material in amount, and (iii) varies significantly from the retirement profile identified through our depreciation studies.
A gain or loss is recognized in other income when we sell land or dispose of assets that are not part of our railroad operations.
When we purchase an asset, we capitalize all costs necessary to make the asset ready for its intended use.
However, many of our assets are self-constructed.
A large portion of our capital expenditures is for replacement of existing track assets and other road properties, which is typically performed by our employees, and for track line expansion and other capacity projects.
Costs that are directly attributable to capital projects (including overhead costs) are capitalized.
Direct costs that are capitalized as part of selfconstructed assets include material, labor, and work equipment.
Indirect costs are capitalized if they clearly relate to the construction of the asset.
General and administrative expenditures are expensed as incurred.
Normal repairs and maintenance are also expensed as incurred, while costs incurred that extend the useful life of an asset, improve the safety of our operations or improve operating efficiency are capitalized.
These costs are allocated using appropriate statistical bases.
Total expense for repairs and maintenance incurred was $2.4 billion for 2014, $2.3 billion for 2013, and $2.1 billion for 2012.
Assets held under capital leases are recorded at the lower of the net present value of the minimum lease payments or the fair value of the leased asset at the inception of the lease.
Amortization expense is computed using the straight-line method over the shorter of the estimated useful lives of the assets or the period of the related lease.13.
Accounts Payable and Other Current Liabilities


Impact of foreign currency translation on reported results While changing foreign currencies affect reported results, McDonalds mitigates exposures, where practical, by financing in local currencies, hedging certain foreign-denominated cash flows, and purchasing goods and services in local currencies.
In 2008, foreign currency translation had a positive impact on consolidated operating results, driven by the stronger Euro and most other currencies, partly offset by the weaker British Pound.
However, in fourth quarter 2008, the U. S.  Dollar strengthened significantly against nearly every foreign currency, reducing the full year foreign currency benefit.
Due to this strengthening, full year 2009 revenues and operating income will likely be negatively impacted by foreign currency translation.
In 2007, foreign currency translation had a positive impact on consolidated operating results, primarily driven by the stronger Euro, British Pound, Australian Dollar and Canadian Dollar.
In 2006, consolidated operating results were positively impacted by the stronger Euro, Canadian Dollar and British Pound.
Impact of foreign currency translation on reported results


| Actual Estimate | (Millions of Dollars) | Regulated utility construction expenditures | CECONY (a)(b) | Electric | Gas | Steam | Sub-total | O&R | Electric | Gas | Sub-total | Total regulated utility construction expenditures | Con Edison Transmission | CET Electric | CET Gas | Sub-total | Competitive energy businesses capital expenditures | Renewable and energy infrastructure projects | Sub-total | Total capital expenditures | Retirement of long-term securities | Con Edison – parent company | CECONY | O&R | Competitive energy businesses | Total retirement of long-term securities | Total capital requirements |


| September2012 September2013 September2014 September2015 September2016 September2017 | Apple Inc. | S&P 500 Index | S&P Information Technology Index | Dow Jones U.S. Technology Supersector Index |


| December 31, Annual  Maturities  (in millions) | 2012 | 2013 | 2014 | 2015 | 2016 | Thereafter | Total non-recourse debt |


| 2009 2008 2007 | (Millions of dollars) | Exploration and Production | Exploration | Production and development | Acquisitions (including leaseholds) | 2,800 | Marketing, Refining and Corporate | Total |


| Average volume Interest expense % Average rate | In millions of dollars, except rates | Liabilities | Deposits | In U.S. offices-5 | In offices outside the U.S.-6 | Total | Federal funds purchased and securities loaned or sold under agreements to repurchase-7 | In U.S. offices | In offices outside the U.S.-6 | Total | Trading account liabilities-8(9) | In U.S. offices | In offices outside the U.S.-6 | Total | Short-term borrowings-10 | In U.S. offices | In offices outside the U.S.-6 | Total | Long-term debt-11 | In U.S. offices | In offices outside the U.S.-6 | Total | Total interest-bearing liabilities | Demand deposits in U.S. offices | Other non-interest-bearing liabilities-8 | Total liabilities from discontinued operations | Total liabilities | Citigroup stockholders’ equity-12 | Noncontrolling interest | Total equity-12 | Total liabilities and stockholders’ equity | Net interest revenue as a percentage of average interest-earning assets-13 | In U.S. offices | In offices outside the U.S.-6 | Total |


| Year ended December 31 (in millions) 2008 2007 2006 | Rental expense | Programming license expense |


| Year Ended September 30, | 2010 | ($ in 000's) | Revenues: | Interest Income | Other | Total Revenues | Interest Expense | Net Revenues | Other Expense | Pre-tax Loss |


| Class A Common Stock Class B Common Stock | Balance at December 31, 2016 | Issue of shares on business combination at July 3, 2017 | Issue of shares upon vesting of restricted stock units-1 | Issue of shares on exercises of stock options-1 | Stock repurchase program-2 -3 | Balance at December 31, 2017 |


| Years Ended June 30, | 2013 | (in millions, except for per share amounts) | Statements of Earnings Data | Revenues | Earnings from continuing operations before income taxes | Net earnings from continuing operations | Net earnings | Basic earnings per share from continuing operations(a) | Diluted earnings per share from continuing operations(a) | Basic Weighted-average shares outstanding | Diluted Weighted-average shares outstanding | Cash dividends declared per common share |


| Less Than 12 Months 12 Months or More | Fair Value | (In thousands) | December 31, 2006 | U.S. Treasury and federal agencies | Obligations of states and political subdivisions | Mortgage-backed securities: | Government issued or guaranteed | Privately issued | Other debt securities | Equity securities | Total | December 31, 2005 | U.S. Treasury and federal agencies | Obligations of states and political subdivisions | Mortgage-backed securities: | Government issued or guaranteed | Privately issued | Other debt securities | Equity securities | Total |


between the Company and Citibank.
See Note 7 for further discussion of this transaction and the related commitment.
Legal Proceedings From time to time, BlackRock receives subpoenas or other requests for information from various U. S.  federal, state governmental and regulatory authorities in connection with certain industry-wide or other investigations or proceedings.
It is BlackRocks policy to fully cooperate with such inquiries.
The Company and certain of its subsidiaries have been named as defendants in various legal actions, including arbitrations and other litigation arising in connection with BlackRocks activities.
Additionally, certain of the investment funds that the Company manages are subject to lawsuits, any of which could potentially harm the investment returns of the applicable fund or result in the Company being liable to the funds for any resulting damages.
Management, after consultation with legal counsel, currently does not anticipate that the aggregate liability, if any, arising out of regulatory matters or lawsuits will have a material adverse effect on BlackRocks earnings, financial position, or cash flows although, at the present time, management is not in a position to determine whether any such pending or threatened matters will have a material adverse effect on BlackRocks results of operations in any future reporting period.
Indemnifications In the ordinary course of business, BlackRock enters into contracts pursuant to which it may agree to indemnify third parties in certain circumstances.
The terms of these indemnities vary from contract to contract and the amount of indemnification liability, if any, cannot be determined.
Under the Transaction Agreement in the MLIM Trans action, the Company has agreed to indemnify Merrill Lynch for losses it may incur arising from (1) any alleged or actual breach, failure to comply, violation or other deficiency with respect to any regulatory or fiduciary requirements relating to the operation of BlackRocks business, (2) any fees or expenses incurred or owed by BlackRock to any brokers, financial advisors or comparable other persons retained or employed by BlackRock in connection with the MLIM Transaction, and (3) certain specified tax covenants.
Management believes that the likelihood of any liability arising under these indemnification provisions is remote.
Management cannot estimate any potential maximum exposure due both to the remoteness of any potential claims and the fact that items that would be included within any such calculated claim would be beyond the control of BlackRock.
Consequently, no liability has been recorded on the consolidated statements of financial condition.13.


Notes to Consolidated Financial Statements Note 18.
Commitments and Contingencies  (Continued) undisclosed liabilities.
Certain provisions of the indemnification agreements survive indefinitely, while others survive until the applicable statutes of limitation expire, or until the agreed upon contract terms expire.
In the normal course of business, CNA also provided guarantees, if the primary obligor fails to perform, to holders of structured settlement annuities provided by a previously owned subsidiary, which are estimated to mature through 2120.
The potential amount of future payments CNA could be required to pay under these guarantees was approximately $2.0 billion as of December 31, 2015.
CNA does not believe a payable is likely under these guarantees, as CNA is the beneficiary of a trust that must be maintained at a level that approximates the discounted reserves for these annuities.
Diamond Offshore In February of 2016, Diamond Offshore entered into a ten-year agreement with GE Oil & Gas (GE) to provide services with respect to certain blowout preventer and related well control equipment on its four newbuild drillships.
Such services include management of maintenance, certification and reliability with respect to such equipment.
In connection with the services agreement with GE, Diamond Offshore will sell the equipment to a GE affiliate for an aggregate $210 million and will lease back such equipment over separate ten-year operating leases.
Diamond Offshore does not expect to realize any gain or loss on these sale and leaseback transactions.
Future commitments for the full term under the services agreement and leases are estimated to aggregate approximately $650 million.
Diamond Offshore is financially obligated under a contract with Hyundai Heavy Industries, Co.  Ltd.  (Hyundai) for the construction of a dynamically positioned, harsh environment semisubmersible drilling rig.
The total cost of the rig including shipyard costs, capital spares, commissioning, project management and shipyard supervision is estimated to be $764 million.
The remaining contractual payment of $440 million is due upon delivery of the rig, which is expected to occur in mid-2016.


| December 31, 2006 December 31, 2005 | Carrying   Value | (In millions) | Commercial mortgage loans | Agricultural mortgage loans | Consumer loans | Total | December 31, 2006 | Carrying | Value | (In millions) | Region | Pacific | South Atlantic | Middle Atlantic | East North Central | West South Central | New England | International | Mountain | West North Central | East South Central | Other | Total | Property Type | Office | Retail | Apartments | Industrial | Hotel | Other | Total |


| (In Millions) | 2002 net revenue | March 2002 settlement agreement | Volume/weather | Asset retirement obligation | Net wholesale revenue | Deferred fuel cost revisions | Other | 2003 net revenue |


| Year Ended December 31 2015 over 2014 2014 over 2013 | ($ in millions) | FAS expense | CAS cost | FAS/CAS Adjustment |


Interest expense, net was $26.4 million, $14.6 million, and $5.3 million for the years ended December 31, 2016, 2015 and 2014, respectively.
Interest expense includes the amortization of deferred financing costs, bank fees, capital and built-to-suit lease interest and interest expense under the credit and other long term debt facilities.
Amortization of deferred financing costs was $1.2 million, $0.8 million, and $0.6 million for the years ended December 31, 2016, 2015 and 2014, respectively.
The Company monitors the financial health and stability of its lenders under the credit and other long term debt facilities, however during any period of significant instability in the credit markets lenders could be negatively impacted in their ability to perform under these facilities.6.
Commitments and Contingencies Obligations Under Operating Leases The Company leases warehouse space, office facilities, space for its brand and factory house stores and certain equipment under non-cancelable operating leases.
The leases expire at various dates through 2033, excluding extensions at the Companys option, and include provisions for rental adjustments.
The table below includes executed lease agreements for brand and factory house stores that the Company did not yet occupy as of December 31, 2016 and does not include contingent rent the Company may incur at its stores based on future sales above a specified minimum or payments made for maintenance, insurance and real estate taxes.
The following is a schedule of future minimum lease payments for non-cancelable real property operating leases as of December 31, 2016 as well as significant operating lease agreements entered into during the period after December 31, 2016 through the date of this report:


See Note 1 to the Consolidated Financial Statements for further information on our revenue recognition accounting policies.
Clients Our large and diverse client base includes many of the most recognizable companies and brands throughout the world.
Our holding company structure allows us to maintain a diversified client base across and within a full range of industry sectors.
In the aggregate, our top ten clients based on revenue accounted for approximately 21% of revenue in 2013 and 2012.
Our largest client accounted for approximately 5% of revenue for 2013 and 2012.
Based on revenue for the year ended December 31, 2013, our five largest clients (in alphabetical order) were General Motors, Johnson & Johnson, L’Oréal, Microsoft and Unilever.
We represent several different brands or divisions of each of these clients in a number of geographic markets, as well as provide services across multiple advertising and marketing disciplines, in each case through more than one of our agency brands.
Representation of a client rarely means that we handle advertising for all brands or product lines of the client in all geographical locations.
Any client may transfer its business from one of our agencies to another one of our agencies or to a competing agency, and a client may reduce its marketing budget at any time.
Management’s Discussion and Analysis of Financial Condition and Results of Operations – (continued) (Amounts in Millions, Except Per Share Amounts) Corporate and other expenses decreased slightly during 2012 by $4.7 to $137.3 compared to 2011, primarily due to lower office and general expenses, partially offset by an increase in temporary help to support our information-technology system-upgrade initiatives.


Notes to consolidated financial statements Securities lending indemnifications Through the Firms securities lending program, counterparties securities, via custodial and non-custodial arrangements, may be lent to third parties.
As part of this program, the Firm provides an indemnification in the lending agreements which protects the lender against the failure of the borrower to return the lent securities.
To minimize its liability under these indemnification agreements, the Firm obtains cash or other highly liquid collateral with a market value exceeding 100% of the value of the securities on loan from the borrower.
Collateral is marked to market daily to help assure that collateralization is adequate.
Additional collateral is called from the borrower if a shortfall exists, or collateral may be released to the borrower in the event of overcollateralization.
If a borrower defaults, the Firm would use the collateral held to purchase replacement securities in the market or to credit the lending client or counterparty with the cash equivalent thereof.
Derivatives qualifying as guarantees The Firm transacts certain derivative contracts that have the characteristics of a guarantee under U. S.  GAAP.
These contracts include written put options that require the Firm to purchase assets upon exercise by the option holder at a specified price by a specified date in the future.
The Firm may enter into written put option contracts in order to meet client needs, or for other trading purposes.
The terms of written put options are typically five years or less.
Derivatives deemed to be guarantees also includes stable value contracts, commonly referred to as stable value products, that require the Firm to make a payment of the difference between the market value and the book value of a counterpartys reference portfolio of assets in the event that market value is less than book value and certain other conditions have been met.
Stable value products are transacted in order to allow investors to realize investment returns with less volatility than an unprotected portfolio.
These contracts are typically longer-term or may have no stated maturity, but allow the Firm to elect to terminate the contract under certain conditions.
The notional value of derivatives guarantees generally represents the Firms maximum exposure.
However, exposure to certain stable value products is contractually limited to a substantially lower percentage of the notional amount.
The fair value of derivative guarantees reflects the probability, in the Firms view, of whether the Firm will be required to perform under the contract.
The Firm reduces exposures to these contracts by entering into offsetting transactions, or by entering into contracts that hedge the market risk related to the derivative guarantees.
The following table summarizes the derivatives qualifying as guarantees as of December 31, 2018 and 2017.


CDW CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS holders of Class B Common Units in connection with the distribution is subject to any vesting provisions previously applicable to the holders Class B Common Units.
Class B Common Unit holders received 3,798,508 shares of restricted stock with respect to Class B Common Units that had not yet vested at the time of the distribution.
For the year ended December 31, 2013, 1,200,544 shares of such restricted stock vested/settled and 5,931 shares were forfeited.
As of December 31, 2013, 2,592,033 shares of restricted stock were outstanding.
Stock Options In addition, in connection with the IPO, the Company issued 1,268,986 stock options to the Class B Common Unit holders to preserve their fully diluted equity ownership percentage.
These options were issued with a per-share exercise price equal to the IPO price of $17.00 and are also subject to the same vesting provisions as the Class B Common Units to which they relate.
The Company also granted 19,412 stock options under the 2013 LTIP during the year ended December 31, 2013.
Restricted Stock Units (RSUs) In connection with the IPO, the Company granted 1,416,543 RSUs under the 2013 LTIP at a weightedaverage grant-date fair value of $17.03 per unit.
The RSUs cliff-vest at the end of four years.
Valuation Information The Company attributes the value of equity-based compensation awards to the various periods during which the recipient must perform services in order to vest in the award using the straight-line method.
Post-IPO Equity Awards The Company has elected to use the Black-Scholes option pricing model to estimate the fair value of stock options granted.
The Black-Scholes option pricing model incorporates various assumptions including volatility, expected term, risk-free interest rates and dividend yields.
The assumptions used to value the stock options granted during the year ended December 31, 2013 are presented below.


x The Committee's assessment of other elements of compensation provided to the Named Executive Officer.
The corporate and business unit goals and objectives vary by individual officers and include, among other things, corporate and business unit financial performance, capital expenditures, cost containment, safety, reliability, customer service, business development and regulatory matters.
The use of
internal pay equity
in setting merit increases is limited to determining whether a change in an executive officer's role and responsibilities relative to other executive officers requires an adjustment in the officer's salary.
The Committee has not established any predetermined formula against which the base salary of one Named Executive Officer is measured against another officer or employee.
In 2008, on the basis of the market data and other factors described above, merit-based salary increases for the Named Executive Officers were approved in amounts ranging from 3.2 to 5.2 percent.
In general these merit-based increases were consistent with the merit increase percentages approved with respect to Named Executive Officers in the last two years (excluding adjustments in salaries related to market factors, promotions or other changes in job responsibilities).
The following table sets forth the 2007 base salaries for the Named Executive Officers, the 2008 percentage increase and the resulting 2008 base salary.


| Less than 12 Months 12 Months or Greater Total | At December 31, 2009 | U.S. government obligations | Mortgage-backed securities | $ 9,367 | At December 31, 2008 | Corporate bonds | Government guaranteed | corporate bonds | Mortgage-backed securities | Other asset-backed securities | Equity securities | $39,167 |


Audit of Employee Stock Ownership Plan Transaction The IRS is currently auditing the Companys federal tax returns for the 2000, 2001 and 2002 fiscal years.
As part of that audit, the IRS is reviewing a leveraged employee stock ownership plan (ESOP) feature of the Companys Employees Profit Sharing, Retirement and Savings Plan and Trust (the Plan) that was implemented in a transaction (the ESOP Transaction) on June 13, 2000.
Principal and interest on the debt related to the transaction was forgiven over a 26-month period as a mechanism for funding Company contributions of elective deferrals and matching contributions to the Plan.
The Company claimed federal income tax deductions for the forgiven principal on the debt in the amount of $1 billion over that period, along with forgiven interest on the debt.
The benefit related to the tax deductions was reflected in equity and did not flow through the provision for income taxes.
Based on discussions with the IRS during the course of the audit, the IRS may seek to disallow some or all of the deductions related to the ESOP Transaction, and may seek to impose other taxes, penalties, and interest, including excise taxes for prohibited transactions under Section 4975 of the Internal Revenue Code of 1986, as amended.
In a January 19, 2007, letter to the Company, the U. S.  Department of Labor confirmed that it is reviewing the ESOP Transaction.
The Company has retained counsel to assist with the audit process and to respond to any claims or assessments the IRS or Department of Labor issues.
Although we are early in the process of closing this audit, we do not expect the result of the audit to have a material impact on either equity for any lost deductions or earnings for interest or penalties, if any, related to the ESOP Transaction.


| Years ended December 31 (in millions) 2013 2012 2011 | Balance at beginning of period | Acquisitions | Accretion | Reclassification from nonaccretable difference forloans with improved cash flows -1 | Other changes in expected cash flows -2 | Balance at end of period |


| GAAP As adjusted | (in millions) | Operating income-1 | Total nonoperating income (expense)(1)(2) | Income before income taxes-2 | Income tax expense-3 | Effective tax rate-3 |


Intangible Assets The Company reviews finite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying value of assets may not be recoverable.
Recoverability of these assets is determined by comparison of their carrying value to the estimated future undiscounted cash flows the assets are expected to generate over their remaining


Note 6 - Employee Benefit Plans Pension Plan and Other Postretirement Benefit Plans The Company has a non-contributory defined benefit pension plan covering substantially all of its domestic employees.
The benefits are based on an employee’s years of service and average earnings for the 60 consecutive calendar months of highest compensation.
The Company also has an unfunded restoration plan to ensure payments of amounts for which employees are entitled under the provisions of the pension plan, but which are subject to limitations imposed by federal tax laws.
The Company’s funding policy has been to make annual contributions equal to the actuarially computed liability to the extent such amounts are deductible for income tax purposes.
Plan assets consist of equity securities and fixed income investments.
The Company sponsors other plans for the benefit of its employees and retirees.


| Fiscal Year EndedSeptember 30, $ Change % Change-1 | 2016-2 | (in millions, except percentages) | Service revenues | Data processing revenues | International transaction revenues | Other revenues | Client incentives | Net operating revenues |


Additional information pertaining to stock option plans is provided in the table below:


| 12/28/02 1/3/04 1/1/05 12/31/05 12/30/06 12/29/07 | Cadence Design Systems, Inc. | S & P 500 | NASDAQ Composite | S & P Information Technology |


JPMorgan Chase has recorded deferred tax assets of $2.2 billion at December 31, 2016, in connection with U. S.  federal and non-U.
S.  NOL carryforwards and foreign tax credit carryforwards.
At December 31, 2016, total U. S.  federal NOL carryforwards were approximately $3.8 billion and non-U.
S.  NOL carryforwards were $142 million.
If not utilized, the U. S.  federal NOL carryforwards will expire between 2025 and 2036 and the non-U.
S.  NOL carryforwards will expire in 2017.
Foreign tax credit carryforwards were $776 million and will expire between 2022 and 2026.
The valuation allowance at December 31, 2016, was due to losses associated with non-U.
S.  subsidiaries.


Long Canyon, USA.
Gold production decreased 2% primarily due to lower ore grade mined.
Costs applicable to sales per ounce increased 25% primarily due to lower ore grade mined.
Depreciation and amortization per ounce increased 5% primarily due to lower ounces sold.
All-in sustaining costs per ounce increased 39% primarily due to higher costs applicable to sales per ounce and higher sustaining capital spend.


Performance Overview Net income was $1.4 billion in 2011 compared to a net loss of $2.2 billion in 2010.
After preferred stock dividends of $1.4 billion in both 2011 and 2010, net income applicable to common shareholders was $85 million, or $0.01 per diluted common share in 2011 compared to a net loss of $3.6 billion, or $0.37 per diluted common share in 2010.
The principal contributors to the pre-tax net income in 2011 were the following: gains of $6.5 billion on the sale of CCB shares (we currently hold approximately one percent of the outstanding common shares), a $7.4 billion reduction in the allowance for credit losses, $3.4 billion of gains on sales of debt securities, positive fair value adjustments of $3.3 billion related to our own credit spreads on structured liabilities, a $1.2 billion gain on the exchange of certain trust preferred securities for common stock and debt and DVA gains on derivatives of $1.0 billion, net of hedges.
These contributors were offset by $15.6 billion in representations and warranties provision, litigation expense of $5.6 billion, goodwill impairment charges of $3.2 billion, $1.8 billion of mortgage-related assessments and waivers costs, and $1.1 billion of impairment charges on our merchant services joint venture.


| Cash and cash equivalents $ 75 | Receivables, net | Inventories, net | Other current assets | Property, plant and equipment | Goodwill | Intangible assets: | Customer programs | Trademarks | Other noncurrent assets | Deferred income taxes, noncurrent | Total identifiable assets and goodwill | Accounts payable | Customer advances and amounts in excess of costs incurred | Salaries, benefits, and payroll taxes | Other current liabilities | Customer contractual obligations(a) | Other noncurrent liabilities | Total liabilities assumed | Total consideration |


Goodwill Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in business combinations.
At November 30, 2006 and 2005, goodwill was $257.8 million and $253.1 million, respectively.
During fiscal 2006, the Companys goodwill had a net increase of $4.7 million due to an acquisition by the Financial Services segment and payment of contingent consideration related to prior period acquisitions.
During fiscal 2005, the Companys goodwill increased $13.8 million due to 2005 acquisitions and payment of contingent consideration related to prior period acquisitions.
Goodwill is included in the assets of the Homebuilding segments ($196.6 million and $195.2 million, respectively, at November 30, 2006 and 2005) and the assets of the Financial Services segment ($61.2 million and $58.0 million, respectively, at November 30, 2006 and 2005) in the consolidated balance sheets.
The Company reviews goodwill annually (or whenever indicators of impairment exist) for impairment in accordance with SFAS No.142, Goodwill and Other Intangible Assets.
The Company performed its annual impairment test of goodwill as of September 30, 2006 and determined that goodwill was not impaired.
No impairment was recorded during the years ended November 30, 2006, 2005 or 2004.
As of November 30, 2006 and 2005, there were no material identifiable intangible assets, other than goodwill.


| December 31 (In billions) 2010 2009 | U.S. | Europe | Pacific Basin | Americas | Other Global | Total |


| Pension Postretirement | 2016 | Discount rates: | Service cost | Interest cost | Expected rate of return on plan assets | Rate of compensation increase | Health care cost trend rate |


MSR (This section should be read in conjunction with Note 6 of the Notes to the Consolidated Financial Statements. )
At December 31, 2013 we had a total of $162.3 million of capitalized MSRs representing the right to service $15.2 billion in mortgage loans.
Of this $162.3 million, $34.2 million was recorded using the fair value method and $128.1 million was recorded using the amortization method.
Operating profit for the segment decreased by 1% in 2010 compared to 2009.
For the year, operating profit declines in Defense more than offset an increase in Civil, while operating profit at Intelligence essentially was unchanged.
The $27 million decrease in operating profit at Defense primarily was attributable to a decrease in the level of favorable performance adjustments on mission and combat systems activities in 2010.
The $19 million increase in Civil principally was due to higher volume on enterprise civilian services.
Operating profit for the segment decreased by 3% in 2009 compared to 2008.
Operating profit declines in Civil and Intelligence partially were offset by growth in Defense.
The decrease of $29 million in Civil’s operating profit primarily was attributable to a reduction in the level of favorable performance adjustments on enterprise civilian services programs in 2009 compared to 2008.
The decrease in operating profit of $27 million at Intelligence mainly was due to a reduction in the level of favorable performance adjustments on security solution activities in 2009 compared to 2008.
The increase in Defense’s operating profit of $29 million mainly was due to volume and improved performance in mission and combat systems.
The decrease in backlog during 2010 compared to 2009 mainly was due to higher sales volume on enterprise civilian service programs at Civil, including volume associated with the DRIS 2010 program, and mission and combat system programs at Defense.
Backlog decreased in 2009 compared to 2008 due to U. S.  Government’s exercise of the termination for convenience clause on the TSAT Mission Operations System (TMOS) contract at Defense, which resulted in a $1.6 billion reduction in orders.
This decline more than offset increased orders on enterprise civilian services programs at Civil.
We expect IS&GS will experience a low single digit percentage decrease in sales for 2011 as compared to 2010.
This decline primarily is due to completion of most of the work associated with the DRIS 2010 program.
Operating profit in 2011 is expected to decline in relationship to the decline in sales volume, while operating margins are expected to be comparable between the years.


| 2012 2011 2010 | Cash, cash equivalents and marketable securities | Accounts receivable, net | Inventories | Working capital | Annual operating cash flow | 2007 | Years Ended December 31 | RS and RSU outstanding at January 1 | Granted | Vested | Terminated, canceled or expired | RS and RSU outstanding at December 31 | Continuing Operations | Years Ended December 31 | Earnings (loss): | Earnings (loss), as reported | Add: Share-based employee compensation expense included in reported earnings, net of related tax effects | Deduct: Share-based employee compensation expense determined under fair value-based method for all awards, net of related tax effects | Pro forma earnings (loss) | Basic earnings (loss) per common share: | As reported | Pro forma | Diluted earnings (loss) per common share: | As reported | Pro forma |


| Predecessor | Jurisdiction(s) | Brazil | Various non-U.S. | South Korea | Various non-U.S. | Australia | Texas | Spain | United Kingdom |