RESULTS OF OPERATIONS Our sales from continuing operations in 2010 were $1,489.3 million surpassing 2009 sales of $1,375.0 million by 8.3 percent.
The increase in sales was due mostly to significantly higher sales in our water heater operations in China resulting from geographic expansion, market share gains and new product introductions as well as additional sales from our water treatment business acquired in November, 2009.
Our sales from continuing operations were $1,451.3 million in 2008.
The $76.3 million decline in sales from 2008 to 2009 was due to lower residential and commercial volume in North America, reflecting softness in the domestic housing market and a slowdown in the commercial water heater business and was partially offset by strong growth in water heater sales in China and improved year over year pricing.
On December 13, 2010 we entered into a definitive agreement to sell our Electrical Products Company to Regal Beloit Corporation for $700 million in cash and approximately 2.83 million shares of Regal Beloit common stock.
The transaction, which has been approved by both companies' board of directors, is expected to close in the first half of 2011.
Due to the pending sale, our Electrical Products segment has been accorded discontinued operations treatment in the accompanying financial statements.
Sales in 2010, including sales of $701.8 million for our Electrical Products segment, were $2,191.1 million.
Our gross profit margin for continuing operations in 2010 was 29.9 percent, compared with 28.7 percent in 2009 and 25.8 percent in 2008.
The improvement in margin from 2009 to 2010 was due to increased volume, cost containment activities and lower warranty costs which more than offset certain inefficiencies resulting from the May flood in our Ashland City, TN water heater manufacturing facility.
The increase in profit margin from 2008 to 2009 resulted from increased higher margin China water heater volume, aggressive cost reduction programs and lower material costs.
Selling, general and administrative expense (SG&A) was $36.9 million higher in 2010 than in 2009.
The increased SG&A, the majority of which was incurred in our China water heater operation, was associated with selling costs to support higher volume and new product lines.
Additional SG&A associated with our 2009 water treatment acquisition also contributed to the increase.
SG&A was $8.5 million higher in 2009 than 2008 resulting mostly from an $8.2 million increase in our China water heater operation in support of higher volumes.


| In millions 2013 2012 2011 | Balance of gross unrecognized tax benefits at January 1 | Increases: | Positions taken during a prior period | Positions taken during the current period | Decreases: | Positions taken during a prior period | Settlements with taxing authorities | Reductions resulting from lapse of statute of limitations | Balance of gross unrecognized tax benefits at December 31 |


Accrued Expenses We self-insure a portion of employee medical benefits under the terms of our employee health insurance program.
We purchase certain stop-loss insurance to limit our liability exposure.
We also self-insure a portion of our property and casualty risk, which includes automobile liability, general liability, workers’ compensation and property under deductible insurance programs.
The insurance premium costs are expensed over the contract periods.
A reserve for liabilities associated with these losses is established for claims filed and claims incurred but not yet reported based upon our estimate of ultimate cost, which is calculated using analyses of historical data.
We monitor new claims and claim development as well as trends related to the claims incurred but not reported in order to assess the adequacy of our insurance reserves.
Self-insurance reserves on the Consolidated Balance Sheets are net of claims deposits of $0.7 million and $0.8 million, at December 31, 2009 and 2008, respectively.
While we do not expect the amounts ultimately paid to differ significantly from our estimates, our insurance reserves and corresponding expenses could be affected if future claim experience differs significantly from historical trends and assumptions.


2015 vs.  2014 Marketing and midstream operating profit changes were largely driven by a full year of EnLinks legacy asset operations compared to prior year and facility expansions coming online in late 2014, along with assets acquired during 2015.
The change was offset by a decrease in Devons marketing activities due to a decrease in commodity prices.2014 vs.  2013 Marketing and midstream operating profit largely increased as a result of higher prices and volumes, partially offset by higher operations and maintenance expenses.
Of the $339 million increase, $344 million was attributed to EnLinks operations.
Higher profits from EnLinks Texas segment, which includes the Bridgeport facility, and Louisiana segment were the largest drivers of the increase.
The Louisiana segment operating profit increased because of acquisitions and completions of additional pipelines.
Devons marketing activities were the primary driver of the increases in both operating revenues and product purchases.
The higher marketing revenues and product purchases are primarily due to commitments we entered into to secure capacity on downstream oil pipelines.
Marketing activities of EnLink also contributed to these increases.


| December 31, 2011 December 31, 2010 | In millions | Assets | Cash and short-term assets | Trading securities | Investment securities | Loans held for sale | Net loans (excludes leases) | Other assets | Mortgage servicing rights | Financial derivatives | Designated as hedging instruments under GAAP | Not designated as hedging instruments under GAAP | Liabilities | Demand, savings and money market deposits | Time deposits | Borrowed funds | Financial derivatives | Designated as hedging instruments under GAAP | Not designated as hedging instruments under GAAP | Unfunded loan commitments and letters of credit |


| Maturity Date (In thousands of dollars except for rates) | 2005 | Long-termDebt | Interest Rate |


Note 20 – Fair Value of Financial Instruments (SFAS 107 Disclosure) SFAS No.107, “Disclosures About Fair Value of Financial Instruments” (SFAS 107), requires the disclosure of the estimated fair value of financial instruments including those financial instruments for which the Corporation did not elect the fair value option.
The fair values of such instruments have been derived, in part, by management’s assumptions, the estimated amount and timing of future cash flows and estimated discount rates.
Different assumptions could significantly affect these estimated fair values.
Accordingly, the net realizable values could be materially different from the estimates presented below.
In addition, the estimates are only indicative of the value of individual financial instruments and should not be considered an indication of the fair value of the Corporation.
The provisions of SFAS 107 do not require the disclosure of the fair value of lease financing arrangements and nonfinancial instruments, including goodwill and intangible assets such as purchased credit card, affinity and trust relationships.
The following disclosures represent financial instruments in which the ending balance at December 31, 2008 are not carried at fair value in its entirety on the Corporation’s Consolidated Balance Sheet.
Short-term Financial Instruments The carrying value of short-term financial instruments, including cash and cash equivalents, time deposits placed, federal funds sold and purchased, resale and certain repurchase agreements, commercial paper and other short-term investments and borrowings, approximates the fair value of these instruments.
These financial instruments generally expose the Corporation to limited credit risk and have no stated maturities or have short-term maturities and carry interest rates that approximate market.
In accordance with SFAS 159, the Corporation elected to fair value certain structured reverse repurchase agreements.
See Note 19 – Fair Value Disclosures to the Consolidated Financial Statements for additional information on these structured reverse repurchase agreements.
Loans Fair values were generally determined by discounting both principal and interest cash flows expected to be collected using an observable discount rate for similar instruments with adjustments that management believes a market participant would consider in determining fair value.
The Corporation estimates the cash flows expected to be collected at acquisition using internal credit risk, interest rate and prepayment risk models that incorporate management’s best estimate of current key assumptions, such as default rates, loss severity and prepayment speeds for the life of the loan.
In accordance with SFAS 159, the Corporation elected to fair value certain large corporate loans which exceeded the Corporation’s single name credit risk concentration guidelines.
See Note 19 – Fair Value Disclosures to the Consolidated Financial Statements for additional information on loans for which the Corporation adopted the fair value option.
Deposits The fair value for certain deposits with stated maturities was calculated by discounting contractual cash flows using current market rates for instruments with similar maturities.
The carrying value of foreign time deposits approximates fair value.
For deposits with no stated maturities, the carrying amount was considered to approximate fair value and does not take into account the significant value of the cost advantage and stability of the Corporation’s long-term relationships with depositors.
In accordance with SFAS 159, the Corporation elected to fair value certain long-term fixed rate deposits which are economically hedged with derivatives.
See Note 19 – Fair Value Disclosures to the Consolidated Financial Statements for additional information on these long-term fixed rate deposits.
Long-term Debt The Corporation uses quoted market prices for its long-term debt when available.
When quoted market prices are not available, fair value is estimated based on current market interest rates and credit spreads for debt with similar maturities.
The book and fair values of certain financial instruments at December 31, 2008 and 2007 were as follows:


| Years Ended December 31, | 2009 | (In millions, except per share data) | Other Data -1, (3) | Net income (loss) available to MetLife, Inc.’s common shareholders | Return on MetLife, Inc.’s common equity | Return on MetLife, Inc.’s common equity, excluding accumulated other comprehensive income (loss) | EPS Data -1, (4) | Income (Loss) from Continuing Operations Available to MetLife, Inc.’s Common Shareholders Per Common Share: | Basic | Diluted | Income (Loss) from Discontinued Operations Per Common Share: | Basic | Diluted | Net Income (Loss) Available to MetLife, Inc.’s Common Shareholders Per Common Share: | Basic | Diluted | Dividends Declared Per Common Share | For the Years Ended December 31, | 2016 | Condensed Statements of Cash Flows | (In millions) | Cash flows from operating activities | Net income (loss) | Earnings of subsidiaries |


| Stock-Based Performance Awards WeightedAverage GrantDate Fair Value Restricted Stock Awards WeightedAverage GrantDate Fair Value | Unvested at December 31, 2005 | Granted | Vested | Forfeited | Unvested at December 31, 2006 | Granted | Vested | Forfeited | Unvested at December 31, 2007 |


| December 31, | 2011 | (in millions) | Net unrealized securities gains | Net unrealized derivatives gains (losses) | Defined benefit plans | Foreign currency translation | Total |


The following summarizes the assumptions used in the Black-Scholes model to value options granted during the years ended December 31, 2010, 2009 and 2008:


| High Low Dividend | 2012 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | 2011 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter |


| Quantity (in millions, except as indicated) | 2015 | Commodity | Fuel oils (in gallons)(a) | Natural gas (in mmbtu) | Power (in megawatthours) | Uranium (pounds in thousands) |


Factors that can affect our credit ratings include changes in our operating performance, the economic environment, conditions in the retail and consumer electronics industries, our financial position, and changes in our business strategy.
We are not aware of any reasonable circumstances under which our credit ratings would be significantly downgraded.
If a downgrade were to occur, it could adversely impact, among other things, our future borrowing costs, access to capital markets, vendor financing terms and future new-store occupancy costs.
In addition, the conversion rights of the holders of our convertible debentures could be accelerated if our credit ratings were to be downgraded.


(1) The domestic reporting unit includes goodwill of $862.9 million related to the Patina Merger.


| December 31, | In millions of dollars | Receivables from customers | Receivables from brokers, dealers, and clearing organizations | Total brokerage receivables-1 | Payables to customers | Payables to brokers, dealers, and clearing organizations | Total brokerage payables-1 |


| Total 2010 2009 2008 2007 | (In millions) | Acquisition costs | Exploration costs | Capitalized interest | Total excluded costs |


| Level 3 Instruments OnlyIn millions Residential mortgage- backed agency Residential mortgage- backed non-agency Commercial mortgage- backed non-agency Asset- backed State and municipal Other debt Corporate stocks and other Total available forsale securities | December 31, 2008 | National City acquisition | January 1, 2009 | Total realized/unrealized gains or losses: | Included in earnings (**) | Included in other comprehensive income | Purchases, issuances, and settlements, net | Transfers into Level 3, net | December 31, 2009 | (**) Amounts attributable to unrealized gains or losses related to available for salesecurities held at December 31, 2009: |


| December 31, | 2008 | (In millions) | Future policy benefit recoverables | Deposit recoverables | Claim recoverables | All other recoverables | Total |


During the year ended December 31, 2011, we granted 354,660 performance share units having a fair value based on our grant date closing stock price of $28.79.
These units are payable in stock and are subject to certain financial performance criteria.
The fair value of these performance share unit awards is based on the grant date closing stock price of each respective award grant and will apply to the number of units ultimately awarded.
The number of shares ultimately issued for each award will be based on our financial performance as compared to peer group companies over the performance period and can range from zero to 200%.
As of December 31, 2011, estimated share payouts for outstanding non-vested performance share unit awards ranged from 150% to 195%.
For the legacy Frontier performance share units assumed at July 1, 2011, performance is based on market performance criteria, which is calculated as the total shareholder return achieved by HollyFrontier stockholders compared with the average shareholder return achieved by an equally-weighted peer group of independent refining companies over a three-year period.
These share unit awards are payable in stock based on share price performance relative to the defined peer group and can range from zero to 125% of the initial target award.
These performance share units were valued at July 1, 2011 using a Monte Carlo valuation model, which simulates future stock price movements using key inputs including grant date and measurement date stock prices, expected stock price performance, expected rate of return and volatility of our stock price relative to the peer group over the three-year performance period.
The fair value of these performance share units at July 1, 2011 was $8.6 million.
Of this amount, $7.3 million relates to post-merger services and will be recognized ratably over the remaining service period through 2013.
A summary of performance share unit activity and changes during the year ended December 31, 2011 is presented below:


Asset Management Group Asset Management Group earned $141 million for 2011 compared with $137 million for 2010.
Assets under administration were $210 billion at December 31, 2011 and $212 billion at December 31, 2010.
Earnings for 2011 reflected a benefit from the provision for credit losses and growth in noninterest income, partially offset by higher noninterest expense and lower net interest income.
For 2011, the business delivered strong sales production, grew high value clients and benefitted from significant referrals from other PNC lines of business.
Over time and with stabilized market conditions, the successful execution of these strategies and the accumulation of our strong sales performance are expected to create meaningful growth in assets under management and noninterest income.


1.
These derivatives are risk managed together with derivatives that do not meet the definition of a guarantee, and therefore these amounts do not reflect the firm’s overall risk related to its derivative activities.
As of December 2012, the carrying value of the net liability and the notional amount related to derivative guarantees were $8.58 billion and $663.15 billion, respectively.2.
Collateral held by the lenders in connection with securities lending indemnifications was $27.14 billion as of December 2013.
Because the contractual nature of these arrangements requires the firm to obtain collateral with a market value that exceeds the value of the securities lent to the borrower, there is minimal performance risk associated with these guarantees.
As of December 2012, the maximum payout and collateral held related to securities lending indemnifications were $27.12 billion and $27.89 billion, respectively.3.
Other financial guarantees excludes certain commitments to issue standby letters of credit that are included in “Commitments to extend credit.
” See table in “Commitments” above for a summary of the firm’s commitments.
As of December 2012, the carrying value of the net liability and the maximum payout related to other financial guarantees were $152 million and $3.48 billion, respectively.


| Analysis of Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | Asset- backed securities | Balance at January 1, 2010 | Total gains or losses: | Included in realized gains/losses | Included in other comprehensive income | Sales | Amortization | Other ** | Transfers out of Level 3 | Balance at December 31, 2010 | Total gains or losses: | Included in realized gains/losses | Included in other comprehensive income | Sales | Amortization | Other ** | Transfers out of Level 3 | Balance at December 31, 2011 | Total gains or losses: | Included in realized gains/losses | Included in other comprehensive income | Acquisitions | Sales | Amortization | Other ** | Transfers out of Level 3 | Balance at December 31, 2012 |


Other Income (Expense), Net Items recorded to other income (expense), net arise from transactions and events not directly related to our principal income earning activities.
The detail of other income (expense), net is presented in Note 24, Supplemental Information, to the consolidated financial statements.2016 vs.  2015 Other income (expense), net of $58.1 increased $10.8 primarily due to lower foreign exchange losses, favorable contract settlements, and receipt of a government subsidy.
The prior year included a gain of $33.6 ($28.3 after-tax, or $.13 per share) resulting from the sale of two parcels of land.
No other individual items were significant in comparison to the prior year.2015 vs.  2014 Other income (expense), net of $47.3 decreased $5.5 and included a gain of $33.6 ($28.3 after-tax, or $.13 per share) resulting from the sale of two parcels of land.
The gain was partially offset by unfavorable foreign exchange impacts and lower gains on other sales of assets and emissions credits.
No other individual items were significant in comparison to fiscal year 2014.


| February 28, 2009 March 1, 2008 | Gross Carrying Amount | Lease rights |


| Year ended December 31 2016 2015 2014 | Statutory tax rate | Increases (decreases) resulting from | State taxes net of federal benefit | Tax-exemptinterest | Life insurance | Dividend received deduction | Tax credits | Other | Effective tax rate |


Distribution Services Our Distribution Services segment provides maintenance, repair and operating supplies (?MRO?)
and spare parts to drill site and production locations worldwide.
In addition to its comprehensive network of field locations supporting land drilling operations throughout North America, the segment supports major offshore drilling contractors through locations in Mexico, the Middle East, Europe, Southeast Asia and South America.
Distribution Services employs advanced information technologies to provide complete procurement, inventory management and logistics services to its customers around the globe.
Demand for the segment?s services is determined primarily by the level of drilling, servicing, and oil and gas production activities.
The following table sets forth the contribution to our total revenues of our three operating segments (in millions):


| 2018 Changefrom 2017 2017 Changefrom 2016 2016 | Net sales | Operating profit | Operating margin | Acquisition integration charges | Before acquisition integration charges | Operating profit | Operating margin |


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


| Year Ended December 31, 2018 vs. 2017 Change 2017 vs. 2016 Change | (In millions) | Interest expense on our various debt instruments: | Term Loan A due July 2017-1 | Term Loan A due July 2023-2 | Revolving credit facility due July 2023-2 | 6.50% Senior Notes due December 2020 | 4.875% Senior Notes due December 2022 | 5.25% Senior Notes due April 2023 | 4.50% Senior Notes due September 2023 | 5.125% Senior Notes due December 2024 | 5.50% Senior Notes due September 2025 | 6.875% Senior Notes due July 2033 | Other interest expense | Less: capitalized interest | Less: interest income | Total |


| Twelve Months Ended September 27, 2008 | Other | Beginning balance | Cytyc balance acquired, October 22, 2007 | Third Wave balance acquired, July 24, 2008 | Provided for under EITF No. 95-3 | Adjustments | Payments | Ending balance | In millions | Vintage sold: | 2005 and prior | 2006 | 2007 | 2008 | 2009 | 2010 | Indemnifications-2 | Total | Year ended December 31, | In millions of dollars | GSEs | Private investors | Total | DECEMBER 31, | 2006 | 2007 | 2008 | 2009 | 2010 | December 31, | In billions of dollars | Assets | Cash and deposits with banks | Loans, net of unearned income and allowance for loan losses | Trading account assets | Federal funds sold and securities borrowed or purchased under agreements to resell | Investments | Other assets | Total assets | Liabilities | Deposits | Federal funds purchased and securities loaned or sold under agreements to repurchase | Short-term borrowings and long-term debt | Trading account liabilities | Other liabilities | Total liabilities | Total equity | Total liabilities and equity |


| Annual Change | ($ in millions) | Revenues | Segment results |


| 2014 2013 | (in billions) | Beginning balance | Net flows-1 | Market appreciation and other-1 | Ending balance | Advisory wrap account assets ending balance-2 | Average advisory wrap account assets-3 | Years Ended December 31, | 2014 | (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 earnings | Pretax Increase (Decrease) | (in millions) | Other revenues | Benefits, claims, losses and settlement expenses | Amortization of DAC | Interest credited to fixed accounts | Total expenses | Total-1 |


| Years Ended December 31, | 2015 | (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 earnings |


| Estimated   Fair Value -1 of   Derivatives in Net   Liability Position   December 31, 2009 Estimated   Fair Value of   Collateral   Provided   December 31, 2009 Fair Value of Incremental Collateral   Provided Upon: | Downgrade in the | One Notch | Downgrade | in the | Company’s | Fixed Maturity | Securities -2 | (In millions) | Derivatives subject to credit-contingent provisions | Derivatives not subject to credit-contingent provisions | Total |


The Company has elected the fair-value option where the interest-rate risk of such liabilities is economically hedged with derivative contracts or the proceeds are used to purchase financial assets that will also be accounted for at fair value through earnings.
The election has been made to mitigate accounting mismatches and to achieve operational simplifications.
These positions are reported in Short-term borrowings and Long-term debt on the Companys Consolidated Balance Sheet.
The majority of these non-structured liabilities are a result of the Companys election of the fair-value option for liabilities associated with the Citi-advised Structured Investment Vehicles (SIVs), which were consolidated during the fourth quarter of 2007.
The change in fair values of the SIVs liabilities reported in earnings was $2.6 billion for the year ended December 31, 2008.
For these non-structured liabilities the aggregate fair value is $263 million lower than the aggregate unpaid principal balance as of December 31, 2008.
For all other non-structured liabilities classified as Long-term debt for which the fair-value option has been elected, the aggregate unpaid principal balance exceeds the aggregate fair value of such instruments by $97 million as of December 31, 2008 while the aggregate fair value exceeded the aggregate unpaid principal by $112 million as of December 31, 2007.
The change in fair value of these non-structured liabilities reported a gain of $1.2 billion for the year ended December 31, 2008.
The change in fair value for these non-structured liabilities is reported in Principal transactions in the Companys Consolidated Statement of Income.
Related interest expense continues to be measured based on the contractual interest rates and reported as such in the Consolidated Income Statement.


| Shares Weighted   Average   Grant Date   Fair Value   (per share) | Unvested at January 1, 2007 | Granted | Conversion of InfraSource restricted stock to Quanta restricted stock | Vested | Forfeited | Unvested at December 31, 2007 |


| (in millions) 2014 2013 2012 | Premiums and deposits | Deposits | Other | Premiums |


| As of and for the Year Ended December 31, | (dollars in millions) | Allowance for Loan and Lease Losses—Beginning: | 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—beginning | December 31 (In billions) | Operating cash collections | Operating cash payments | Cash dividends from GECS | GE cash from operating activities (GE CFOA) |


| 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 |


BlackRock Our BlackRock business segment earned $361 million in 2011 and $351 million in 2010.
The higher business segment earnings from BlackRock for 2011 compared with 2010 were primarily due to an increase in revenue.


| Year Ended December 31 | 2012 | Risk-free interest rate | Weighted average volatility | Dividend yield | Expected years until exercise |


| % Change | Dollars in Millions | Net Sales | Earnings from Continuing Operations Before Minority Interest and Income Taxes | % of net sales | Provision for Income Taxes | Effective tax rate | Earnings from Continuing Operations | % of net sales |


Asset-based Financing We conduct asset-based or secured financing within our insurance and other subsidiaries, including transactions such as securities lending, repurchase agreements and mortgage dollar rolls, to earn spread income, to borrow funds, or to facilitate trading activity.
These programs are primarily driven by portfolio holdings of securities that are lendable based on counterparty demand for these securities in the marketplace.
The collateral received in connection with these programs is primarily used to purchase securities in the short-term spread portfolios of our insurance entities.
Investments held in the short-term spread portfolios include cash and cash equivalents, short-term investments, mortgage loans and fixed maturities, including mortgage-and asset-backed securities, with a weighted average life at time of purchase by the short-term portfolios of four years or less.
Floating rate assets comprise the majority of our short-term spread portfolio.
These short-term portfolios are subject to specific investment policy statements, which among other things, do not allow for significant asset/liability interest rate duration mismatch.
The following table sets forth our liabilities under asset-based or secured financing programs as of the dates indicated.


| Cash FlowsMillions 2014 2013 2012 | Cash provided by operating activities | Cash used in investing activities | Cash used in financing activities | Net change in cash and cashequivalents |


Commercial aircraft financing commitments include commitments to provide financing related to aircraft on order, under option for deliveries or proposed as part of sales campaigns based on estimated earliest potential funding dates.
Based on historical experience, we anticipate that we will not be required to fund a significant portion of our financing commitments.
However, there can be no assurances that we will not be required to fund greater amounts than historically required.
See Note 11 to our Consolidated Financial Statements.


| Year Ended December 31, | 2007 | Risk-free interest rate | Average expected life in years | Expected volatility | Expected dividend yield |


| In millions of dollars U.S. Outside of U.S. December 31, 2009 December 31, 2008 | Commercial and similar letters of credit | One- to four-family residential mortgages | Revolving open-end loans secured by one- to four-family residential properties | Commercial real estate, construction and land development | Credit card lines | Commercial and other consumer loan commitments | Total |


| 2005 2004 2003 | Revenue | Loss from discontinued operations | Income tax benefit on loss from discontinued operations | Net loss on disposal of discontinued operations, net of tax benefit of $1,042, $337 and $10,160 respectively | Loss from discontinued operations, net |


| Accumulated Other Comprehensive Income (Loss) | Foreign Currency Translation Adjustments | (in millions) | Balance, December 31, 2002 | Change in component during year | Balance, December 31, 2003 | Change in component during year-2 | Balance, December 31, 2004 | Change in component during year | Balance, December 31, 2005 |


| Year Ended December 31, | (millions of kWhs) | Total deliveries to O&R full service customers | Delivery service for retail access customers | Total Deliveries In Franchise Area | ($ in millions) | Total deliveries to O&R full service customers | Delivery service for retail access customers | Other operating revenues | Total Deliveries In Franchise Area | Average Revenue per kWh Sold (Cents) | Residential | Commercial and Industrial |


| Insurance Products Retirement Products Corporate Benefit Funding Auto & Home International Banking, Corporate & Other Total | (In millions) | Income (loss) from continuing operations, net of income tax | Less: Net investment gains (losses) | Less: Net derivative gains (losses) | Less: Adjustments to continuing operations -1 | Less: Provision for income tax (expense) benefit | Operating earnings | Less: Preferred stock dividends | Operating earnings available to common shareholders | Insurance Products | (In millions) | Income (loss) from continuing operations, net of income tax | Less: Net investment gains (losses) | Less: Net derivative gains (losses) | Less: Adjustments to continuing operations -1 | Less: Provision for income tax (expense) benefit | Operating earnings | Less: Preferred stock dividends | Operating earnings available to common shareholders | Insurance Products | (In millions) | Total revenues | Less: Net investment gains (losses) | Less: Net derivative gains (losses) | Less: Adjustments related to net investment gains (losses) and net derivative gains (losses) | Less: Other adjustments to revenues -1 | Total operating revenues | Total expenses | Less: Adjustments related to net investment gains (losses) and net derivative gains (losses) | Less: Other adjustments to expenses -1 | Total operating expenses | December 31, 2010 | Trading and Other Securities | (In millions) | Quoted prices in active markets for identical assets and liabilities (Level 1) | Significant other observable inputs (Level 2) (1) | Significant unobservable inputs (Level 3) | Total estimated fair value | December 31, | 2010 | (In millions) | Long-term debt — unaffiliated | Long-term debt — affiliated | Collateral financing arrangements | Junior subordinated debt securities |


PCLI owns and operates a refinery located in Mississauga, Ontario having lubricant production capacity of 15,600 barrels per stream day and has the flexibility to match unique lubricant product formulations.
The primary operating units include a hydrogen plant and hydrotreating, solvent dewaxing, hydrodentrification, catalytic dewaxing and hydrobon/platformer units.
The Mississauga plant also includes packaging facilities and has extensive distribution capabilities with marine, truck and rail access.


| 2000 % of Revenue 1999 % of Revenue % change | North America | South America | Caribbean* | Europe/Africa | Asia |


| Fiscal years ended October 31, | 2016 | In millions, except per share amounts | Numerator: | Net earnings | Denominator:-1(2) | Weighted-average shares used to compute basic net EPS | Dilutive effect of employee stock plans-3 | Weighted-average shares used to compute diluted net EPS | Net earnings per share: | Basic | Diluted | Anti-dilutive weighted-average stock awards-4 |


| 2005 2004 2003 | Tons | (tons in thousands; dollars in millions) | Phosphate Fertilizer Products | DAP | MAP | Other phosphate fertilizers-1 | Total |


| Balance, December 31, 2006 $740,507 | Additions during period—depreciation and amortization expense | Deductions during period—disposition and retirements of property | Balance, December 31, 2007 | Additions during period—depreciation and amortization expense | Deductions during period—disposition and retirements of property | Balance, December 31, 2008 | Additions during period—depreciation and amortization expense | Deductions during period—disposition and retirements of property | Balance, December 31, 2009 |


| 2008 2007 | (In millions) | Commodity Instruments | Fair value hedges:(a) | OTC commodity swaps | Non-hedge designation: | Exchange-traded commodity futures | Exchange-traded commodity options | OTC commodity swaps | OTC commodity options | U.K. natural gas contracts(b) | Physical commodity contracts(c) | Financial Instruments | Fair value hedges: | OTC interest rate swaps(d) | Cash flow hedges:(e) | OTC foreign currency forwards |


| December 31, | $ in millions | Projected benefit obligation | Accumulated benefit obligation | Fair value of plan assets | Pension Benefits | 2008 | Assumptions Used to Determine Benefit Obligation at December 31 | Discount rate | Rate of compensation increase | Initial health care cost trend rate assumed for the next year | Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | Year that the rate reaches the ultimate trend rate | Assumptions Used to Determine Benefit Cost for the Year Ended December 31 | Discount rate | Expected long-term return on plan assets | Rate of compensation increase | Initial health care cost trend rate assumed for the next year | Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | Year that the rate reaches the ultimate trend rate | Year Ended December 31 | $ in millions | Segment operating (loss) income | Unallocated expenses | Net pension adjustment | Royalty income adjustment | Total operating (loss) income |


Income Taxes The components of income tax provision attributable to continuing operations were as follows:


Facility Notes and Bonds We have entered into agreements with certain municipalities to finance the construction of, or improvements to, facilities that support our U. S.  Domestic Package and Supply Chain & Freight operations in the United States.
These facilities are located around airport properties in Louisville, Kentucky; Dallas, Texas; and Philadelphia, Pennsylvania.
Under these arrangements, we enter into a lease or loan agreement that covers the debt service obligations on the bonds issued by the municipalities, as follows: ?
Bonds with a principal balance of $149 million issued by the Louisville Regional Airport Authority associated with our Worldport facility in Louisville, Kentucky.
The bonds, which are due in January 2029, bear interest at a variable rate, and the average interest rates for 2014 and 2013 were 0.05% and 0.09%, respectively.  ?
Bonds with a principal balance of $42 million and due in November 2036 issued by the Louisville Regional Airport Authority associated with our air freight facility in Louisville, Kentucky.
The bonds bear interest at a variable rate, and the average interest rates for 2014 and 2013 were 0.05% and 0.08%, respectively.  ?
Bonds with a principal balance of $29 million issued by the Dallas / Fort Worth International Airport Facility Improvement Corporation associated with our Dallas, Texas airport facilities.
The bonds are due in May 2032 and bear interest at a variable rate, however the variable cash flows on the obligation have been swapped to a fixed 5.11%.  ?
Bonds with a principal balance of $100 million issued by the Delaware County, Pennsylvania Industrial Development Authority associated with our Philadelphia, Pennsylvania airport facilities.
The bonds, which are due in December 2015, bear interest at a variable rate, and the average interest rates for 2014 and 2013 were 0.04% and 0.07%, respectively.
Pound Sterling Notes The Pound Sterling notes consist of two separate tranches, as follows: ?
Notes with a principal amount of ￡66 million accrue interest at a 5.50% fixed rate, and are due in February 2031.
These notes are not callable.  ?
Notes with a principal amount of ￡455 million accrue interest at a 5.125% fixed rate, and are due in February 2050.
These notes are callable at our option at a redemption price equal to the greater of 100% of the principal amount and accrued interest, or the sum of the present values of the remaining scheduled payout of principal and interest thereon discounted to the date of redemption at a benchmark U. K.  government bond yield plus 15 basis points and accrued interest.
We maintain cross-currency interest rate swaps to hedge the foreign currency risk associated with the bond cash flows for both tranches of these bonds.
The average fixed interest rate payable on the swaps is 5.45%.


| Year Ended December 31, | 2010 | (in millions, except per share and ratio information) | Income Statement Data: | Revenues: | Premiums | Policy charges and fee income | Net investment income | Asset management fees and other income | Realized investment gains (losses), net | Total revenues | Benefits and expenses: | Policyholders’ benefits | Interest credited to policyholders’ account balances | Dividends to policyholders | Amortization of deferred policy acquisition costs | General and administrative expenses | Total benefits and expenses | Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures | Income tax expense (benefit) | Income (loss) from continuing operations before equity in earnings of operating joint ventures | Equity in earnings of operating joint ventures, net of taxes | Income (loss) from continuing operations | Income (loss) from discontinued operations, net of taxes | Net income (loss) | Less: Income (loss) attributable to noncontrolling interests | Net Income (loss) attributable to Prudential Financial, Inc. | Basic income (loss) from continuing operations attributable to | Prudential Financial, Inc. per share—Common Stock | Diluted income (loss) from continuing operations attributable to | Prudential Financial, Inc. per share—Common Stock | Basic net income (loss) attributable to Prudential Financial, Inc. per share—Common Stock | Diluted net income (loss) attributable to Prudential Financial, Inc. per share—Common Stock | Basic and diluted income (loss) from continuing operations attributable to Prudential Financial, Inc. per share—Class BStock | Basic and diluted net income (loss) attributable to Prudential | Financial, Inc. per share—Class B Stock | Dividends declared per share—Common Stock | Dividends declared per share—Class B Stock | Ratio of earnings to fixed charges-1 |


Investment Income and Interest Expense The following table sets forth investment income and interest expense for the years ended December 31, 2012, 2011 and 2010 (in millions):


Basis of Presentation  Certain prior year amounts have been reclassified to conform to the current period financial statement presentation.
The reclassifications include reporting freight revenues instead of commodity revenues.
The amounts reclassified from freight revenues to other revenues totaled $30 million and $71 million for the years ended December 31, 2007, and December 31, 2006, respectively.
In addition, we modified our operating expense categories to report fuel used in railroad operations as a stand-alone category, to combine purchased services and materials into one line, and to reclassify certain other expenses among operating expense categories.
These reclassifications had no impact on previously reported operating revenues, total operating expenses, operating income or net income.
Significant Accounting Policies Principles of Consolidation  The Consolidated Financial Statements include the accounts of Union Pacific Corporation and all of its subsidiaries.
Investments in affiliated companies (20% to 50% owned) are accounted for using the equity method of accounting.
All significant intercompany transactions are eliminated.
The Corporation evaluates its less than majority-owned investments for consolidation


| Payments due by period | Total | (In thousands) | Operating leases | Foreign currency forward contract | $69,528 |


| Preferred Stock Common Stock* | Issued | 2009: | Balance at January 1, 2009 | Grants of restricted stock | Issuance of common stock due to exercise of stock options | Treasury stock acquired | Retirement of treasury stock | Balance at December 31, 2009 | 2010: | Grants of restricted stock | Forfeitures of restricted stock | Issuance of common stock due to exercise of stock options | Treasury stock acquired | Retirement of treasury stock | Balance at December 31, 2010 | 2011: | Grants of restricted stock | Forfeitures of restricted stock | Issuance of common stock due to exercise of stock options | Treasury stock acquired | Retirement of treasury stock | Balance at December 31, 2011 |


As of May 27, 2018, we expect to pay approximately $40.8 million of unrecognized tax benefit liabilities and accrued interest within the next 12 months.
We are not able to reasonably estimate the timing of future cash flows beyond 12 months due to uncertainties in the timing of tax audit outcomes.
The remaining amount of our unrecognized tax liability was classified in other liabilities.
We report accrued interest and penalties related to unrecognized tax benefit liabilities in income tax expense.
For fiscal 2018, we recognized $3.1 million of tax-related net interest and penalties, and had $27.3 million of accrued interest and penalties as of May 27, 2018.
For fiscal 2017, we recognized a net benefit of $5.6 million of tax-related net interest and penalties, and had $23.1 million of accrued interest and penalties as of May 28, 2017.


| In millions 2007 2006 2005 | Industry segment operating profits | Corporate items, net | Corporate special items* | Interest expense, net | Minority interest | Income tax benefit (provision) | Discontinued operations | Net earnings |


2011 Rate Filing Based on Calendar Year 2010 Production Costs In May 2011, Entergy filed with the FERC the 2011 rates in accordance with the FERC’s orders in the System Agreement proceeding.
Several parties intervened in the proceeding at the FERC, including the LPSC, which also filed a protest.
In July 2011 the FERC accepted Entergy’s proposed rates for filing, effective June 1, 2011, subject to refund, set the proceeding for hearing procedures, and then held those procedures in abeyance pending FERC decisions in the prior production cost proceedings currently before the FERC on review.
In January 2014 the LPSC filed a petition for a writ of mandamus at the United States Court of Appeals for the Fifth Circuit.
In its petition, the LPSC requested that the Fifth Circuit issue an order compelling the FERC to issue a final order in several proceedings related to the System Agreement, including the 2011 rate filing based on calendar year 2010 production costs and the 2012 and 2013 rate filings discussed below.
In March 2014 the Fifth Circuit rejected the LPSC’s petition for a writ of mandamus.
In December 2014 the FERC rescinded its earlier abeyance order and consolidated the 2011 rate filing with the 2012, 2013,


(1) Ratio is computed as total debt divided by total debt and stockholders equity.
(2) Ratio is computed as total debt, net of cash and cash equivalents (net debt), divided by net debt and stockholders equity (net capital employed).
(3) Ratio is computed as net income, divided by a five-quarter average of stockholders equity.
As of March 31, 2008, a significant portion of our cash and cash equivalents are on deposit with foreign financial institutions and are used to fund operations.
Working capital primarily includes cash, receivables and inventories, net of drafts and accounts payable and other liabilities.
Our Distribution Solutions segment requires a substantial investment in working capital that is susceptible to large variations during the year as a result of inventory purchase patterns and seasonal demands.
Inventory purchase activity is a function of sales activity and new customer build-up requirements.
Consolidated working capital at March 31, 2008 decreased compared with that of the prior year end.
Working capital was negatively impacted by decreases in cash and cash equivalents and net financial inventory (inventory, net of drafts and accounts payable) as well as an increase in other accrued liabilities.
These decreases in working capital were partially offset by an increase in account receivables and the one-time benefit associated with a $420 million reclassification of short-term tax liabilities to long-term liabilities as a result of our implementation of FIN No.48.
In 2007, our working capital decreased primarily as a result of increases in other liabilities and deferred revenue.
Net financial inventory resulted in a small increase to working capital in 2007.
Our ratio of net debt to net capital employed increased in 2008 primarily reflecting an increase in net debt (i. e. , a decrease in cash and cash equivalents as well as long-term debt).
Our ratio of net debt to net capital employed increased in 2007 primarily due to our issuance of $1.0 billion of long-term debt in relation to the Per-Se acquisition.
The Company has paid quarterly cash dividends at the rate of $0.06 per share on its common stock since the fourth quarter of 1999.
A dividend of $0.06 per share was declared by the Board on January 23, 2008, and was paid on April 1, 2008 to stockholders of record at the close of business on March 3, 2008.
In 2008, we paid total cash dividends of $70 million.
The Company anticipates that it will continue to pay quarterly cash dividends in the future.
In April 2008, the Board approved a change in the Companys dividend policy by increasing the amount of the Companys quarterly dividend from six cents to twelve cents per share, which will apply to ensuing quarterly dividend declarations until further action by the Board.
However, the payment and amount of future dividends remain within the discretion of the Board and will depend upon the Companys future earnings, financial condition, capital requirements and other factors.


Discontinued Operations In October 2013, the Company sold 100% of the outstanding shares of Greenline, a wholly owned subsidiary of the Company, to CameronTec Intressenter AB.
The aggregate purchase price was $11.0 million in cash, including a post-closing working capital adjustment.
The Company recognized a gain on the disposition of $7.6 million, net of a tax benefit.
Greenline’s operating results have been classified as discontinued operations in the Consolidated Statement of Operations.
The following is a summary of Greenline’s operating results:


| As of October 31, 2016 | Options Outstanding | Range of Exercise Prices | In thousands | $0-$9.99 | $10-$19.99 | $20-$29.99 | 57,498 |


| 2007 2006 | Carrying Amount | Derivative financial (liabilities) assets: | Foreign currency forward contracts | Derivative financial liabilities: | Interest rate swaps | Financial liabilities: | Debt: | 6.95% Senior Notes | 5.375% Senior Notes-1 | 5.625% Senior Notes | 6.875% Senior Notes | 3% Convertible Senior Notes | Other foreign loans | Other loans | Total debt | 2008 | Change in benefit obligation: | Projected benefit obligation at beginning of period | Service cost | Interest cost | Actuarial loss (gain) | Curtailment loss | Benefits paid | Projected benefit obligation at end of period | Change in plan assets: | Fair value of plan assets at beginning of period | Actual (loss) gain on plan assets | Employer contributions | Benefits paid | Fair value of plan assets at end of period | Under funded status at end of year |


Item 12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS Information with respect to security ownership of certain beneficial owners and management required by this Item 12 will be included in PCAs Proxy Statement under the caption Ownership of Our Stock and is incorporated herein by reference.


| Year Ended | September 30, 2009 | ($ in 000's) | Revenues | Investment Advisory Fees | Other | Total Revenues | Expenses | Compensation Expense | Other Expenses | Total Expenses | Minority Interest | Pre-tax Income |


Liquidity and Capital Resources Overview At July 31, 2014, our cash, cash equivalents and investments totaled $1.9 billion, an increase of $253 million from July 31, 2013 due to the factors described in Statements of Cash Flows below.
Our primary source of liquidity has been cash from operations, which entails the collection of accounts receivable for products and services.
Our primary uses of cash have been for research and development programs, selling and marketing activities, capital projects, acquisitions of businesses, debt service costs, repurchases of our common stock under our stock repurchase programs, and the payment of cash dividends.
As discussed in Executive Overview  Industry Trends and Seasonality earlier in this Item 7, our business is subject to significant seasonality.
The balance of our cash, cash equivalents and investments generally fluctuates with that seasonal pattern.
We believe the seasonality of our business is likely to continue in the future.
The following table summarizes selected measures of our liquidity and capital resources at the dates indicated:


| Twelve months ended December 31, | 2016 | (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 |


* The reduction resulted from transferring to the Japanese government certain Japanese plan obligations approximating $50 million reduced by approximately $26 million loss incurred with respect to the settlement of those obligations.
For the U. S.  plans, the estimated net loss, prior service credit and transition obligation for the defined benefit pension plans that will be amortized from Accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $37 million, $3 million and $0 million, respectively.
For the non-U.
S.  plans, the estimated net loss, prior service credit and transition obligation for the defined benefit pension plans that will be amortized from Accumulated other comprehensive income into net periodic benefit cost over the next fiscal year are $11 million, $10 million and $1 million, respectively.
The estimated net loss, prior service credit and transition obligation for the other defined benefit postretirement plans that will be amortized from Accumulated other comprehensive income into net periodic benefit cost over the next fiscal year will be less than $5 million in the aggregate.
PART?III 59 ITEM?10.
DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE For the information required by this Item?10 with respect to our Executive Officers, see Part?I, Item 1.  of this report.
For the other information required by this Item?10, see “Election Of Directors,” “Nominees for Election to the Board of Directors,” “Corporate Governance” and “Section?16(a) Beneficial Ownership Reporting Compliance,” in the Proxy Statement for our 2019 Annual Meeting, which information is incorporated herein by reference.
The Proxy Statement for our 2019 Annual Meeting will be filed within 120?days after the end of the fiscal year covered by this Annual Report on Form 10-K.
ITEM?11.
EXECUTIVE COMPENSATION For the information required by this Item?11, see “Compensation Discussion and Analysis,” “Compensation Committee Report,” and “Executive Compensation” in the Proxy Statement for our 2019 Annual Meeting, which information is incorporated herein by reference.
ITEM?12.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS For the information required by this Item?12 with respect to beneficial ownership of our common stock, see “Security Ownership of Certain Beneficial Owners and Management” in the Proxy Statement for our 2019 Annual Meeting, which information is incorporated herein by reference.
The following table sets forth certain information as of December?31, 2018 regarding our equity plans :


Reconciliation of U. S.  Federal Statutory Income Tax Rate to Actual Income Tax Rate The following table reconciles the U. S.  statutory tax rate to our effective income tax rate for the last three fiscal years:


CITIZENS FINANCIAL GROUP, INC.  MANAGEMENT'S DISCUSSION AND ANALYSIS 94 “Business Segments” to our audited Consolidated Financial Statements in Part II, Item 8 — Financial Statements and Supplementary Data, included elsewhere in this report.
Analysis of Financial Condition — December 31, 2014 Compared with December 31, 2013 Loans and Leases The following table shows the composition of loans and leases, including non-core loans, as of:


| (Amounts in millions, except per share amounts) 2015 2014 2013 | Numerator: | Net income attributable to 3M | Denominator: | Denominator for weighted average 3M common shares outstanding — basic | Dilution associated with the Company’s stock-based compensation plans | Denominator for weighted average 3M common shares outstanding — diluted | Earnings per share attributable to 3M common shareholders — basic | Earnings per share attributable to 3M common shareholders — diluted | Qualified and Non-qualified Pension Benefits | (Millions) | 2016 Benefit Payments | 2017 Benefit Payments | 2018 Benefit Payments | 2019 Benefit Payments | 2020 Benefit Payments | Next five years |


| (dollars in millions) Payments due by period | Contractual Obligation | Long-term Debt | Capital Leases | Operating Leases | Purchase Obligations | Total |


| As of December | $ in millions | Financial instruments owned, at fair value pledged to counterparties that: | Had the right to deliver or repledge | Did not have the right to deliver or repledge | Other assets pledged to counterparties that: | Did not have the right to deliver or repledge |


Impaired Loans Impaired loans include commercial and consumer nonperforming loans and TDRs, regardless of nonperforming status.
TDRs that were previously recorded at amortized cost and are now classified and accounted for as held for sale are also included.
Excluded from impaired loans are nonperforming leases, loans accounted for as held for sale other than the TDRs described in the preceding sentence, loans accounted for under the fair value option, smaller balance homogeneous type loans and purchased impaired loans.
We did not recognize any interest income on impaired loans that have not returned to performing status, while they were impaired during the year ended December 31, 2016 and December 31, 2015.
The following table provides further detail on impaired loans individually evaluated for impairment and the associated ALLL.
Certain commercial and consumer impaired loans do not have a related ALLL as the valuation of these impaired loans exceeded the recorded investment.


| As of December 31, | 2013 | (In thousands) | Deferred tax assets | U.S. net operating loss carryforwards | Foreign net operating loss carryforwards | Capital loss carryforwards | Stock compensation expense | Other | Total deferred tax assets | Valuation allowance | Net deferred tax assets | Deferred tax liabilities | Depreciation and amortization | Capitalized software development costs | Intangible assets | Deferred tax assets, net |


| December 31, | 2009 | Carrying Amount | (in thousands) | Loans receivable, net | Marketable debt securities | Marketable equity securities | Warrants | Bank line of credit | Bridge and term loans | Senior unsecured notes | Mortgage and other secured debt | Other debt | Interest-rate swap assets | Interest-rate swap liabilities |


| 2008 2007 2006 | East | Central | West | Houston | Other | Total |


| 2013 2012 2011 | (In millions) | Beginning balance at January 1 | Additions to capitalized exploratory well costs pending the determination of proved reserves | Reclassifications to wells, facilities and equipment based on the determination of proved reserves | Capitalized exploratory well costs charged to expense | Dispositions and other | Ending balance at December 31 | Number of wells at end of year |


Backlog Applied manufactures systems to meet demand represented by order backlog and customer commitments.
Backlog consists of: (1) orders for which written authorizations have been accepted and assigned shipment dates are within the next 12 months, or shipment has occurred but revenue has not been recognized; and (2) contractual service revenue and maintenance fees to be earned within the next 12 months.
Backlog by reportable segment as of October 27, 2013 and October 28, 2012 was as follows:


| Revenue Mix Summary Comparable Store Sales Summary | 12 Months Ended January 31, 2015 | Consumer Electronics | Computing and Mobile Phones | Entertainment | Appliances | Services | Other | Total |


The decrease in depreciation and amortization expenses during the year ended December 31, 2017 compared to the year ended December 31, 2016 was primarily a result of a decrease in amortization expense due to certain capitalized software costs being fully amortized between December 31, 2016 and December 31, 2017.
The decrease in depreciation and amortization expenses during the year ended December 31, 2016 compared to the year ended December 31, 2015 was primarily a result of the recognition of $13 million in accelerated amortization in 2015 on a management contract intangible asset for a property that was managed by us prior to our acquisition of it and its transfer of ownership to Park upon completion of the spin-offs.
The increase in general and administrative expenses during the year ended December 31, 2017 compared to the year ended December 31, 2016 was primarily the result of increased share-based compensation expense of $29 million mainly due to an increase in retirement eligible participants, resulting in the acceleration of expense recognition, as well as additional expense recognized from a special equity grant to certain participants in connection with the spin-offs.
Additionally, $18 million in
invested assets was due to increased cash flows from the sales of fixed annuity products and more customers electing the fixed option on variable annuity sales, which were reinvested primarily in fixed maturity securities, other invested assets and mortgage loans.
Yields were adversely impacted by the severe downturn in the global financial markets which primarily impacted real estate joint ventures, fixed maturity securities and cash, cash equivalents and short-term investments.
The moderate improvement in the equity markets in 2009 led to an increase in yields on other limited partnership interests and certain other invested assets, which partially offset the overall reduction in yields.
To manage the needs of our intermediate to longer-term liabilities, our portfolio consists primarily of investment grade corporate fixed maturity securities, structured finance securities, mortgage loans and U. S.  Treasury, agency and government guaranteed fixed maturity securities and, to a lesser extent, certain other invested asset classes, including real estate joint ventures in order to provide additional diversification and opportunity for long-term yield enhancement.
As is typically the case with fixed annuity products, higher net investment income was somewhat offset by higher interest credited expense.
Growth in our fixed annuity policyholder account balances increased interest credited expense by $177 million in 2009 and higher average crediting rates on fixed annuities increased interest credited expense by $37 million.
Operating earnings were negatively impacted by $348 million of operating losses related to the hedging programs for variable annuity minimum death and income benefit guarantees, which are not embedded derivatives, partially offset by a decrease in the liability established for these variable annuity guarantees.
The various hedging strategies in place to offset the risk associated with these variable annuity guarantee benefits were more sensitive to market movements than the liability for the guaranteed benefit.
Market volatility, improvements in the equity markets, and higher interest rates produced operating losses on these hedging strategies in the current year.
Our hedging strategies, which are a key part of our risk management, performed as anticipated.
The decrease in annuity guarantee benefit liabilities was due to the improvement in the equity markets, higher interest rates and the annual unlocking of future market expectations.
Other expenses increased by $221 million primarily due to an increase of $122 million from the impact of market conditions on certain expenses.
These expenses are largely comprised of reinsurance costs, pension and postretirement benefit expenses, and letter of credit fees.
In addition, variable expenses, such as commissions and premium taxes, increased $76 million, the majority of which have been offset by DAC capitalization.
The positive impact of our Operational Excellence initiative was reflected in lower information technology, travel, professional services and advertising expenses, but was more than offset by increases largely due to business growth.
Finally, policy fees and other revenues decreased by $100 million, mainly due to lower average separate account balances in the current year versus prior year.


| Year ended December 31, | 2007 | (in millions) | Tax provision | Impact of: | Non-taxable investment income | Foreign taxes at other than U.S. rate | Low income housing and other tax credits | Change in valuation allowance | State and local taxes | Non-deductible expenses | Completion of Internal Revenue Service examination for the years 1997 to 2001 | Other | Tax provision excluding these items | Tax provision at statutory rate | December 31, 2007 | Industry-1 | (in millions) | Corporate Securities: | Manufacturing | Finance | Utilities | Services | Energy | Transportation | Retail and Wholesale | Other | Total Corporate Securities | Foreign Government | Asset-Backed Securities | Residential Mortgage Backed-3 | Commercial Mortgage Backed-4 | U.S. Government | Total -5 |


| Total per BOE Total United States West Africa Eastern Mediter-ranean North Sea Other Int'l-1 | (millions, except per unit) | Year Ended December 31, 2009 | Lease Operating Expense-2 | Production and Ad Valorem Taxes | Transportation Expense | Total Production Costs-3 | Total Production Costs per BOE | Year Ended December 31, 2008 | Lease Operating Expense-2 | Production and Ad Valorem Taxes | Transportation Expense | Total Production Costs-3 | Total Production Costs per BOE | Year Ended December 31, 2007 | Lease Operating Expense-2 | Production and Ad Valorem Taxes | Transportation Expense | Total Production Costs-3 | Total Production Costs per BOE |


O&Rs gas operating revenues decreased $11 million in 2012 compared with 2011 due primarily to the decrease in gas purchased for resale in 2012 ($18 million), offset in part by the gas rate plan Sales and transportation volumes for firm customers decreased 6.1 percent in 2012 compared with 2011.
After adjusting for weather and other variations, total firm sales and transportation volumes increased 1.4 percent in 2012 compared with 2011


| Rental   Income Sublease   Income Gross   Rental   Payments | (In millions) | 2007 | 2008 | 2009 | 2010 | 2011 | Thereafter |


| TargetAllocationRange Percentage of Plan Assets by Strategy atDecember 31 | PNC Pension Plan | Asset Category | Domestic Equity | International Equity | Private Equity | Total Equity | Domestic Fixed Income | High Yield Fixed Income | Total Fixed Income | Real estate | Other | Total |


| Consolidated Total Revenues for the Three Months Ended1 | 2018 | (Amounts in Millions) | March 31 | June 30 | September 30 | December 31 | $9,714.4 |


| December 31 (dollars in millions) 2010 2009 | Buy | Euro | Canadian dollar | Mexican peso | Total |


| Benchmark 2012 2011 2010 | WTI crude oil(Dollars per bbl) | WCS(Dollars per bbl)(a) | AECO natural gas sales index(Dollars per mmbtu)(b) |


| 2016 2015 2014 2013 | $33,809 |


| 2019 2020 2021 2022 2023 Thereafter Total | Property mortgages and other loans | MRA and FHLB facilities | Revolving credit facility | Unsecured term loans | Senior unsecured notes | Trust preferred securities | Capital lease | Ground leases | Estimated interest expense | Joint venture debt | Total |


commitments.
However, while we could not assure that we would be successful, our goal was to have an increase in NovaSure system backlog, followed by an increase in sequential growth of revenue during fiscal 2009 with sales to the physician office-based market playing a role in that increase.
Our gross margin in this business segment was 67% during this period and includes a charge of $12.4 million for the write-up to fair value of the Cytyc inventory sold during the first fiscal quarter of 2008.
The operating loss for fiscal 2008 also includes a $284.8 million charge for in-process research and development as a result of the merger with Cytyc and a $2.9 million impairment charge of the Helica Thermal Coagulator System intangibles.
This segment included stock-based compensation of $3.8 million in fiscal 2008, as well as a $2.4 million restructuring charge in the third quarter related to the resignation of our Executive Chairman in May 2008.


Managements discussion and analysis J. P.  Morgan Chase & Co.  Chase Auto Finance CAF is the largest U. S.  bank originator of automobile loans and leases, with more than 2.9 million accounts.
In 2003, CAF had a record number of automobile loan and lease originations, growing by 10% over 2002 to $27.8 billion.
Loan and lease receivables of $43.2 billion at December 31, 2003, were 16% higher than at the prior year-end.
Despite a challenging operating environment reflecting slightly declining new car sales in 2003 and increased competition, CAFs market share among automobile finance companies improved to 6.1% in 2003 from 5.7% in 2002.
The increase in market share was the result of strong organic growth and an origination strategy that allies the business with manufacturers and dealers.
CAFs relationships with several major car manufacturers contributed to 2003 growth, as did CAFs dealer relationships, which increased from approximately 12,700 dealers in 2002 to approximately 13,700 dealers in 2003.
In 2003, operating earnings were $205 million, 23% higher compared with 2002.
The increase in earnings was driven by continued revenue growth and improved operating efficiency.
In 2003, CAFs operating revenue grew by 23% to $842 million.
Net interest income grew by 33% compared with 2002.
The increase was driven by strong operating performance due to higher average loans and leases outstanding, reflecting continued strong origination volume and lower funding costs.
Operating expense of $292 million increased by 18% compared with 2002.
The increase in expenses was driven by higher average oans outstanding, higher origination volume and higher performance-based incentives.
CAFs overhead ratio improved from 36% in 2002 to 35% in 2003, as a result of strong revenue growth, continued productivity gains and disciplined expense management.
Credit costs increased 18% to $205 million, primarily reflecting a 32% increase in average loan and lease receivables.
Credit quality continued to be strong relative to 2002, as evidenced by a lower net charge-off ratio and 30+ day delinquency rate.
CAF also comprises Chase Education Finance, a top provider of government-guaranteed and private loans for higher education.
Loans are provided through a joint venture with Sallie Mae, a government-sponsored enterprise and the leader in funding and servicing education loans.
Chase Education Finances origination volume totaled $2.7 billion, an increase of 4% from last year.


| Standardized Capital Rules as of December | $ in millions | Credit RWAs | Derivatives | Commitments, guarantees and loans | Securities financing transactions | Equity investments | Other | Total Credit RWAs | Market RWAs | Regulatory VaR | Stressed VaR | Incremental risk | Comprehensive risk | Specific risk | Total Market RWAs | Total RWAs |


ORSA 2014: On April 8, 2014, the Company acquired the remaining 25% of shares of Orsa International Paper Embalangens S. A.
(Orsa IP) from its joint venture partner, Jari Celulose, Papel e Embalagens S. A.
(Jari), a Grupo Orsa company, for approximately $127 million, of which $105 million was paid in cash with the remaining $22 million held back pending satisfaction of certain indemnification obligations by Jari.
International Paper will release the amount held back, or any amount for which we have not notified Jari of a claim, by March 30, 2016.
An additional $11 million, which was not included in the purchase price, was placed in an escrow account pending resolution of certain open matters.
During 2014, these open matters were successfully resolved, which resulted in $9 million paid out of escrow to Jari and correspondingly added to the final purchase consideration.
The remaining $2 million was released back to the Company.
As a result of this transaction, the Company reversed the $168 million of Redeemable noncontrolling interest included on the March 31, 2014 consolidated balance sheet.
The net difference between the Redeemable noncontrolling interest balance plus $14 million of currency translation adjustment reclassified out of Other comprehensive income less the 25% purchase price was reflected as an increase to Retained earnings on the consolidated balance sheet.


| (dollars in millions) 2016 2017 2018 | Total Assets | Long-term Debt | Common Stockholders' Equity | Total Debt-to-Total Capital Ratio | Net Debt-to-Net Capital Ratio | Operating Cash Flow-to-Debt Ratio | Interest Coverage Ratio |


| Key Performance IndicatorsTwelve Months EndedDecember 31, | 2017 | (In millions, except per share data) | Operating revenue | Operating revenue change | Operating income | Operating margin | Net income attributable to Equifax | Diluted earnings per share | Cash provided by operating activities | Capital expenditures* |


PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements A valuation allowance has been recorded against deferred tax assets related to state and local taxes and foreign operations.
Adjustments to the valuation allowance are made to reflect changes in management’s assessment of the amount of the deferred tax asset that is realizable and the amount of deferred tax asset actually realized during the year.
The valuation allowance includes amounts recorded in connection with deferred tax assets as follows:


| In millions of dollars 2010 2009 2008 % Change 2010 vs. 2009 % Change 2009 vs. 2008 | Net interest revenue | Non-interest revenue | Total revenues, net of interest expense | Total operating expenses | Net credit losses | Credit reserve build (release) | Provisions for benefits and claims | Provisions for loan losses and for benefits and claims | Income (loss) from continuing operations before taxes | Income taxes (benefits) | Income (loss) from continuing operations | Net income attributable to noncontrolling interests | Net income (loss) | Average assets(in billions of dollars) | Average deposits(in billions of dollars) | Net credit losses as a percentage of average loans | Revenue by business | Retail banking | Citi-branded cards | Total | Income (loss) from continuing operations by business | Retail banking | Citi-branded cards | Total |


CITIZENS FINANCIAL GROUP, INC.
SELECTED CONSOLIDATED FINANCIAL DATA 58 ITEM 6.
SELECTED CONSOLIDATED FINANCIAL DATA We derived the selected Consolidated Statement of Operating data for the years ended December 31, 2014, 2013, 2012 and the selected Consolidated Balance Sheet data as of December 31, 2014 and 2013 from our audited Consolidated Financial Statements in Part II, Item 8 — Financial Statements and Supplementary Data, included elsewhere in this report.
We derived the selected Consolidated Statement of Operations data for the years ended December 31, 2011 and 2010 and the selected Consolidated Balance Sheet data as of December 31, 2012, 2011, and 2010 from our audited Consolidated Financial Statements, not included herein.
Our historical results are not necessarily indicative of the results expected for any future period.
You should read the following selected consolidated financial data in conjunction with “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 and our audited Consolidated Financial Statements and the Notes thereto in Part II, Item 8 — Financial Statements and Supplementary Data, both included elsewhere in this report.


| December 31, 2004 Percentage of Total December 31, 2003 Percentage of Total | (dollars in thousands) | IBNR | Reported claims in process | Other medical expenses payable | Total medical and other expenses payable |


| Number of Shares Weighted Average Fair Value Intrinsic Value (in millions) | Outstanding, Jan. 1, 2006 | Granted | Forfeited | Outstanding, Dec. 31, 2006 |


| Year Ended December 31, | 2018 | Revenue: | Fee revenue: | Occupier outsourcing | Property management | Valuation | Loan servicing | Leasing | Capital Markets: | Sales | Commercial mortgage origination | Other | Total fee revenue | Pass through costs also recognized as revenue | Total revenue | Costs and expenses: | Cost of services | Operating, administrative and other | Depreciation and amortization | Operating income | Equity income from unconsolidated subsidiaries | Less: Net income attributable to non-controllinginterests | Add-back: Depreciation and amortization | EBITDA | Adjusted EBITDA |


| 2012 2011 2010 | Income from continuing operations attributable to American Tower Corporation | Basic weighted average common shares outstanding | Dilutive securities | Diluted weighted average common shares outstanding | Basic income from continuing operations attributable to | American Tower Corporation per common share | Diluted income from continuing operations attributable to | American Tower Corporation per common share |


| December 31,2011 January 1,2011 | Inventories at FIFO, net | Adjustments to state inventories at LIFO | Inventories at LIFO, net |


| (Stated in millions) | 2013 | Revenue | Reservoir Characterization | Drilling | Production | Eliminations & other | Pretax operating income | Corporate & other-1 | Interest income-2 | Interest expense-3 | Charges & credits-4 | $45,266 |


| Balance at Beginning of Period Goodwill Acquired During the Year Foreign Currency Translation and Other Balance at End of Period | Year Ended December 31, 2004 | Food Packaging | Protective Packaging | Total | Year Ended December 31, 2003 | Food Packaging | Protective Packaging | Total |


FUNDING AND LIQUIDITY Overview Citis funding and liquidity objective is to both fund its existing asset base and maintain sufficient excess liquidity so that it can operate under a wide variety of market conditions.
An extensive range of liquidity scenarios is considered based on both historical industry experience and hypothetical situations.
The approach is to ensure Citi has sufficient funding that is structural in nature so as to accommodate market disruptions for both short- and long-term periods.
Due to various constraints that limit the free transfer of liquidity or capital between Citi-affiliated entities (as discussed below), Citigroups primary liquidity objectives are established by entity, and in aggregate, across: (i) the non-bank, which is largely comprised of the parent holding company (Citigroup), Citigroup Funding Inc.  (CFI) and Citis brokerdealer subsidiaries (collectively referred to in this section as nonbank); and (ii) Citis bank subsidiaries, such as Citibank, N. A.
At an aggregate level, Citigroups goal is to ensure that there is sufficient funding in amount and tenor to ensure that aggregate liquidity resources are available for these entities.
The liquidity framework requires that entities be self-sufficient or net providers of liquidity in their designated stress tests and have excess cash capital (as further discussed in Liquidity Measures and Stress Testing below).
The primary sources of funding include (i) deposits via Citis bank subsidiaries, which are Citis most stable and lowest-cost source of longterm funding, (ii) long-term debt (including trust preferred securities and other long-term collateralized financing) issued at the non-bank level and certain bank subsidiaries, and (iii) stockholders equity.
These sources are supplemented by short-term borrowings, primarily in the form of commercial paper and secured financing (securities loaned or sold under agreements to repurchase) at the non-bank level.
Citigroup works to ensure that the structural tenor of these funding sources is sufficiently long in relation to the tenor of its asset base.
In fact, the key goal of Citis asset-liability management is to ensure that there is excess tenor in the liability structure so as to provide excess liquidity to fund the assets.
The excess liquidity resulting from a longer-term tenor profile can effectively offset potential downward pressures on liquidity that may occur under stress.
This excess funding is held in the form of aggregate liquidity resources, as described below.
Aggregate Liquidity Resources


The Company enters into operating leases for vehicles whose non-cancelable terms are one year or less in duration with month-to-month renewal options.
These leases have been excluded from the table above.
The Company estimates payments under such leases will approximate $58 million in 2017.
These vehicle leases have guaranteed residual values that have historically been satisfied by the proceeds on the sale of the vehicles.14.


Net cash used in financing activities was significantly lower in 2010 than in 2009, primarily as a result of declines in policyholder contract withdrawals, reflecting improved conditions for the life insurance and retirement services businesses was partially offset by the issuance of long-term debt by ILFC, which is discussed in Liquidity of Parent and Subsidiaries — Financial Services — ILFC.
Net cash used in financing activities was significantly lower in 2009 than in 2008, also primarily as a result of declines in policyholder contract withdrawals, reduction of payments and the FRBNY Credit Facility and a reduction in repayments of other borrowings.
See Contractual Obligations herein for additional information.


| 2008 2007 2006 | Recurring tenant improvements | Recurring leasing costs | Building improvements | Totals |


The 2006 impact on the Consolidated Balance Sheet of the purchase price allocations related to the 2006 acquisitions and adjustments relative to other acquisitions within the allocation period were provided in the preceding table.
Year 2005 acquisitions: The Company acquired CUNO on August 2, 2005.
The operating results of CUNO are included in the Industrial and Transportation Business segment.
CUNO is engaged in the design, manufacture and marketing of a comprehensive line of filtration products for the separation, clarification and purification of fluids and gases.3M and CUNO have complementary sets of filtration technologies, creating an opportunity to bring an even wider range of filtration solutions to customers around the world.3M acquired CUNO for approximately $1.36 billion, comprised of $1.27 billion of cash paid (net of cash acquired) and the acquisition of $80 million of debt, most of which has been repaid.
Purchased identifiable intangible assets of $268 million for the CUNO acquisition will be amortized on a straight-line basis over lives ranging from 5 to 20 years (weighted-average life of 15 years).
In-process research and development charges from the CUNO acquisition were not material.
Pro forma information related to this acquisition is not included because its impact on the Company’s consolidated results of operations is not considered to be material.
The allocation of the purchase price is presented in the table that follows.


Gas Sales and Deliveries O&R generally recovers the cost of the gas that it buys and then sells to its full-service customers.
It does not make any margin or profit on the gas it sells.
O&R’s gas revenues are subject to a weather normalization clause.
O&R’s New York gas revenues (which accounted for substantially all of O&R’s gas revenues in 2015) are subject to a revenue decoupling mechanism.
As a result, its gas delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
O&R’s gas sales and deliveries for the last five years were:


| Years Ended December 31, | 2008 | (In millions) | Operating Revenues | Premiums | Universal life and investment-type product policy fees | Net investment income | Other revenues | Total operating revenues | Operating Expenses | Policyholder benefits and claims and policyholder dividends | Interest credited to policyholder account balances | Capitalization of DAC | Amortization of DAC and VOBA | Interest expense | Other expenses | Total operating expenses | Provision for income tax expense (benefit) | Operating earnings |


Liquidity Monitoring and Measurement Stress Testing Liquidity stress testing is performed for each of Citi’s major entities, operating subsidiaries and/or countries.
Stress testing and scenario analyses are intended to quantify the potential impact of a liquidity event on the balance sheet and liquidity position, and to identify viable funding alternatives that can be utilized.
These scenarios include assumptions about significant changes in key funding sources, market triggers (such as credit ratings), potential uses of funding and political and economic conditions in certain countries.
These conditions include expected and stressed market conditions as well as Company-specific events.
Liquidity stress tests are conducted to ascertain potential mismatches between liquidity sources and uses over a variety of time horizons (overnight, one week, two weeks, one month, three months, one year) and over a variety of stressed conditions.
Liquidity limits are set accordingly.
To monitor the liquidity of an entity, these stress tests and potential mismatches are calculated with varying frequencies, with several tests performed daily.
Given the range of potential stresses, Citi maintains a series of contingency funding plans on a consolidated basis and for individual entities.
These plans specify a wide range of readily available actions for a variety of adverse market conditions or idiosyncratic stresses.
Short-Term Liquidity Measurement: Liquidity Coverage Ratio (LCR) In addition to internal measures that Citi has developed for a 30-day stress scenario, Citi also monitors its liquidity by reference to the LCR, as calculated pursuant to the U. S. LCR rules.
Generally, the LCR is designed to ensure that banks maintain an adequate level of HQLA to meet liquidity needs under an acute 30-day stress scenario.
The LCR is calculated by dividing HQLA by estimated net outflows over a stressed 30-day period, with the net outflows determined by applying prescribed outflow factors to various categories of liabilities, such as deposits, unsecured and secured wholesale borrowings, unused lending commitments and derivatives-related exposures, partially offset by inflows from assets maturing within 30 days.
Banks are required to calculate an add-on to address potential maturity mismatches between contractual cash outflows and inflows within the 30-day period in determining the total amount of net outflows.
The minimum LCR requirement is 100%, effective January 2017.
In December 2016, the Federal Reserve Board adopted final rules which require additional disclosures relating to the LCR of large financial institutions, including Citi.
Among other things, the final rules require Citi to disclose components of its average HQLA, LCR and inflows and outflows each quarter.
In addition, the final rules require disclosure of Citi’s calculation of the maturity mismatch add-on as well as other qualitative disclosures.
The effective date for these disclosures is April 1, 2017.


| Immediate change in rates | (in millions) | December 31, 2009 | December 31, 2008 |


| (Amounts in millions) 2014 Percent change 2013 Percent change 2012 | Nonhedge derivative income (loss) | Total return swap | Derivative fair value credit adjustments | Total |


| Twelve months ended December 31, | 2016 | (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 |


| 2006 2005 | (in millions) | Assets: | Fixed maturities | Equity securities | Mortgage loans on real estate, policy and collateral loans | Securities available for sale | Trading securities | Spot commodities | Unrealized gain on swaps, options and forward transactions | Trading assets | Securities purchased under agreements to resell | Finance receivables, net of allowance | Securities lending collateral | Other invested assets(b) | Short-term investments | Cash | Liabilities: | Policyholders’ contract deposits | Borrowings under obligations of guaranteed investment agreements | Securities sold under agreements to repurchase | Trading liabilities | Hybrid financial instrument liabilities | Securities and spot commodities sold but not yet purchased | Unrealized loss on swaps, options and forward transactions | Trust deposits and deposits due to banks and other depositors | Commercial paper | Notes, bonds, loans and mortgages payable | Securities lending payable |


| NBCUniversal 3.65% senior notes due 2015 $1,000 | Comcast 5.90% senior notes due 2016(a) | Comcast 6.50% senior notes due 2015 | Comcast 5.85% senior notes due 2015(a) | Comcast 8.75% senior notes due 2015 | Other | Total |


| In millions U.S. Plans Non-U.S.Plans | Current year actuarial (gain) loss | Amortization of actuarial loss | Current year prior service cost | Amortization of prior service cost | Settlements | $1,175 |


| Years Ended | December 28, 2013 | Net Sales: | Health care distribution -1: | Dental | Animal health | Medical | Total health care distribution | Technology and value-added services -2 | Total | -1 | generic pharmaceuticals, vaccines, surgical products, diagnostic tests, infection-control products and vitamins. | -2 | and financial and other services, including e-services and continuing education services for practitioners. |


| As of September 30, | 2010 | ($ in 000’s) | Nonaccrual Loans: | Corporate | Residential/Consumer-1 | Total | Accruing Loans Which are 90 Days Past Due: | Corporate | Residential/Consumer | Total | Total Nonperforming Loans | Real Estate Owned and Other Repossessed Assets, Net: | Corporate | Residential/Consumer | Total | Total Nonperforming Assets, Net | Total Nonperforming Assets as a % of Total Loans, Net and Other Real Estate Owned, Net |


| Range of U.S. Dollar Carrying Value | Maturities | (dollars in millions) | 2006-2039 | 2006-2010 | 2006-2024 | 2005-2009 | 2006-2035 | 2006-2015 | 2007-2024 | 2007-2015 | Total |


| Segment Software Other intangible assets | Engineered Products and Solutions | Global Rolled Products | Transportation and Construction Solutions |


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


| 2014 Quarters 2013 Quarters | (Dollars in millions) | Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis | Net interest income | Fully taxable-equivalent adjustment | Net interest income on a fully taxable-equivalent basis | Reconciliation of total revenue, net of interest expense to total revenue, net of interest expense on a fully taxable-equivalent basis | Total revenue, net of interest expense | Fully taxable-equivalent adjustment | Total revenue, net of interest expense on a fully taxable-equivalent basis | Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis | Income tax expense (benefit) | Fully taxable-equivalent adjustment | Income tax expense (benefit) on a fully taxable-equivalent basis | Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity | Common shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible common shareholders’ equity | Reconciliation of average shareholders’ equity to average tangible shareholders’ equity | Shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible shareholders’ equity | Reconciliation of period-end common shareholders’ equity to period-end tangible common shareholders’ equity | Common shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible common shareholders’ equity | Reconciliation of period-end shareholders’ equity to period-end tangible shareholders’ equity | Shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible shareholders’ equity | Reconciliation of period-end assets to period-end tangible assets | Assets | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible assets |


| December 31, 2012 December 31, 2011 | Level 1 | (In thousands) | Interest rate swaps |


| $ in billions 2017 2016 2015 | Institutional Securities | Wealth Management | Investment Management | Parent Company | Total |


| In millions 2013 2012 2011 | Revenue (loss) (a) | Expense (a) | Cash receipts (b) | Cash payments (c) |


| QualifiedPension Plans Non-U.S.Pension Plans Nonqualifiedand OtherPension Plans | (Dollars in millions) | Plans with ABO in excess of plan assets | PBO | ABO | Fair value of plan assets | Plans with PBO in excess of plan assets | PBO | Fair value of plan assets |


| 2007 2006 2005 | U.S. | Europe | APMEA | Other Countries & Corporate | Total |


Note H – Other Material Contingencies Manhattan Steam Main Rupture In July 2007, a CECONY steam main located in midtown Manhattan ruptured.
It has been reported that one person died and others were injured as a result of the incident.
Several buildings in the area were damaged.
Debris from the incident included dirt and mud containing asbestos.
The response to the incident required the closing of several buildings and streets for various periods.
Approximately ninety suits are pending against the company seeking generally unspecified compensatory and, in some cases, punitive damages, for wrongful death, personal injury, property damage and business interruption.
The company has notified its insurers of the incident and believes that the policies in force at the time of the incident will cover the company’s costs to satisfy its liability to others in connection with the suits.
In the company’s estimation, there is not a reasonable possibility that an exposure to loss exists for the suits that is materially in excess of the estimated liability accrued.
At December 31, 2015, the company has accrued its estimated liability for the suits of $50 million and an insurance receivable in the same amount.
Manhattan Explosion and Fire On March 12, 2014, two multi-use five-story tall buildings located on Park Avenue between 116th and 117th Street in Manhattan were destroyed by an explosion and fire.
CECONY had delivered gas to the buildings through service lines from a distribution main located below ground on Park Avenue.
Eight people died and more than 50 people were injured.
Additional buildings were also damaged.
The National Transportation Safety Board (NTSB) investigated.
The parties to the investigation included the company, the City of New York, the Pipeline and Hazardous Materials Safety Administration and the NYSPSC (which also conducted an investigation).
In June 2015, the NTSB issued a final report concerning the incident, its probable cause and safety recommendations.
The NTSB determined that the probable cause of the incident was (1) the failure of a defective fusion joint at a service tee (which joined a plastic service line to a plastic distribution main) installed by the company that allowed gas to leak from the distribution main and migrate into a building where it ignited and (2) a breach in a City sewer line that allowed groundwater and soil to flow into the sewer, resulting in a loss of support for the distribution main, which caused it to sag and overstressed the defective fusion joint.
The NTSB also made safety recommendations, including recommendations to the company that addressed its procedures for the preparation and examination of plastic fusions, training of its staff on conditions for notifications to the City’s Fire Department and extension of its gas main isolation valve installation program.
Approximately seventy suits are pending against the company seeking generally unspecified damages and, in one case, punitive damages, for wrongful death, personal injury, property damage and business interruption.
The company has notified its insurers of the incident and believes that the policies in force at the time of the incident will cover the company’s costs, in excess of a required retention (the amount of which is not material), to satisfy any liability it may have for damages in connection with the incident.
The company is unable to estimate the amount or range of its possible loss related to the incident.
At December 31, 2015, the company had not accrued a liability for the incident.
Other Contingencies See “Other Regulatory Matters” in Note B and
Uncertain Tax Positions


In 2013, the Company incurred other operating charges of $895 million, which primarily consisted of $494 million associated with the Company’s productivity and reinvestment program; $195 million due to the impairment of certain intangible assets; $188 million due to the Company’s other productivity, integration and restructuring initiatives; and $22 million due to charges associated with certain of the Company’s fixed assets.
Refer to Note 17 of Notes to Consolidated Financial Statements for further information on the impairment charges.
Refer to Note 18 of Notes to Consolidated Financial Statements and see below for further information on the Company’s productivity and reinvestment program, as well as the Company’s other productivity, integration and restructuring initiatives.
Refer to Note 19 of Notes to Consolidated Financial Statements for the impact these charges had on our operating segments.