WASTE MANAGEMENT, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) We are still negotiating and litigating final resolutions of our withdrawal liability for certain previous withdrawals.
Except in the case of our withdrawals from the Central States Pension Plan, we do not believe any additional liability above the charges we have already recognized for such previous withdrawals could be material to the Companys business, financial condition, liquidity, results of operations or cash flows.
In addition to charges recognized in prior years, we currently estimate that we could incur up to approximately $40 million in future charges based on demands from representatives of the Central States Pension Plan.
As a result, we do not anticipate that the final resolution of the Central States Pension Plan matter could be material to the Companys business, financial condition or liquidity; however, such loss could have a material adverse effect on our cash flows and, to a lesser extent, our results of operations, for a particular reporting period.
Similarly, we also do not believe that any future withdrawals, individually or in the aggregate, from the multiemployer pension plans to which we contribute, could have a material adverse effect on our business, financial condition or liquidity.
However, such withdrawals could have a material adverse effect on our results of operations or cash flows for a particular reporting period, depending on the number of employees withdrawn in any future period and the financial condition of the multiemployer pension plan(s) at the time of such withdrawal(s).
Tax Matters  We participate in the IRSs Compliance Assurance Process, which means we work with the IRS throughout the year in order to resolve any material issues prior to the filing of our annual tax return.
We are currently in the examination phase of IRS audits for the tax years 2013, 2014 and 2015 and expect these audits to be completed within the next three, 15 and 27 months, respectively.
We are also currently undergoing audits by various state and local jurisdictions for tax years that date back to 2009, with the exception of affirmative claims in a limited number of jurisdictions that date back to 2000.
We are also under audit in Canada for the tax years 2012 and 2013.
In 2011, we acquired Oakleaf, which is subject to potential IRS examination for the year 2011.
Pursuant to the terms of our acquisition of Oakleaf, we are entitled to indemnification for Oakleafs preacquisition period tax liabilities.
We maintain a liability for uncertain tax positions, the balance of which management believes is adequate.
Results of audit assessments by taxing authorities are not currently expected to have a material adverse impact on our results of operations or cash flows.12.


| December 31, | 2010 | (in millions) | Variable annuity variable sub-accounts | VUL insurance variable sub-accounts | Other insurance variable sub-accounts | Threadneedle investment liabilities | Total |


Derivative financial instruments and hedge activities The Company recognizes all derivative instruments as either assets or liabilities at fair value on the balance sheet.
The accounting for changes in the fair value of a derivative depends on the use of the derivative.
To the extent that a derivative is effective as a cash flow hedge of an exposure to future changes in value, the change in fair value of the derivative is deferred in accumulated other comprehensive (loss) income.
Any portion considered to be ineffective is reported in earnings immediately.
To the extent that a derivative is effective as a hedge of an exposure to future changes in fair value, the change in the derivative’s fair value is offset in the statement of income by the change in fair value of the item being hedged.
To the extent that a derivative or a financial instrument is effective as a hedge of a net investment in a foreign operation, the change in the derivative’s fair value is deferred as an unrealized currency translation adjustment in accumulated other comprehensive (loss) income.
Product warranties The Company accrues for product warranties at the time the associated products are sold based on historical claims experience.
As of Dec.  31, 2006 and 2005, the reserve for product warranties was $10 million and $4 million, respectively.
Pretax charges against income for product warranties in 2006, 2005 and 2004 totaled $4 million, $5 million and $4 million, respectively.
Cash outlays related to product warranties were $5 million, $4 million and $4 million in 2006, 2005 and 2004, respectively.
In addition, $7 million of warranty obligations were assumed as part of the Company’s 2006 business acquisitions.
Asset Retirement Obligations An asset retirement obligation represents a legal obligation associated with the retirement of a tangible long-lived asset that is incurred upon the acquisition, construction, development or normal operation of that long-lived asset.
We recognize asset retirement obligations in the period in which they are incurred, if a reasonable estimate of fair value can be made.
The asset retirement obligation is subsequently adjusted for changes in fair value.
The associated estimated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset and depreciated over its useful life.
PPG’s asset retirement obligations are primarily associated with closure of certain assets used in the chemicals manufacturing process.
As of Dec.  31, 2006 and 2005 the accrued asset retirement obligation was $10 million and as of Dec.  31, 2004 it was $9 million.
In March 2005, the FASB issued FASB Interpretation (“FIN”) No.47, “Accounting for Conditional Asset Retirement Obligations, an interpretation of FASB Statement No.143”.
FIN No.47 clarifies the term conditional asset retirement obligation as used in SFAS No.143, “Accounting for Asset Retirement Obligations”, and provides further guidance as to when an entity would have sufficient information to reasonably estimate the fair value of an asset retirement obligation.
Effective Dec.  31, 2005, PPG adopted the provisions of FIN No.47.
Our only conditional asset retirement obligation relates to the possible future abatement of asbestos contained in certain PPG production facilities.
The asbestos in our production facilities arises from the application of normal and customary building practices in the past when the facilities were constructed.
This asbestos is encapsulated in place and, as a result, there is no current legal requirement to abate it.
Inasmuch as there is no requirement to abate, we do not have any current plans or an intention to abate and therefore the timing, method and cost of future abatement, if any, are not


The Company provides limited postemployment benefits to eligible former U. S.  employees, primarily severance under a formal severance plan (the Severance Plan).
The Company accounts for severance expense by accruing the expected cost of the severance benefits expected to be provided to former employees after employment over their relevant service periods.
The Company updates the assumptions in determining the severance accrual by evaluating the actual severance activity and long-term trends underlying the assumptions.
As a result of updating the assumptions, the Company recorded incremental severance expense related to the Severance Plan of $3 million in each of the years 2010, 2009 and 2008.
These amounts were part of total severance expenses of $39 million, $135 million and $33 million in 2010, 2009 and 2008, respectively, included in general and administrative expenses in the accompanying consolidated statement of operations.
Note 15.


| Year EndedDecember 31 | 2017 | Net sales, as reported | Acquisitions | Divestitures | Net sales, excluding acquisitions and divestitures | Currency translation | Net sales, excluding acquisitions, divestitures and the effect of currency translation |


| Pension BenefitPayments OtherPostretirementBenefit Payments OtherPostretirementBenefits–Medicare PartD SubsidyReceipts | (in millions) | 2019 | 2020 | 2021 | 2022 | 2023 | 2024-2028 | Total |


| (In millions) 2009 2008 | E&P | United States | International | E&P segment | OSM | IG | RM&T | Segment income | Items not allocated to segments, net of income taxes: | Corporate and other unallocated items | Foreign currency effects on tax balances | Impairments(a) | Gain on U.K. natural gas contracts(b) | Gain on disposal of assets | Discontinued operations | Net income |


UNITED PARCEL SERVICE, INC.  AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 49 Issuances of debt in 2014 and 2013 consisted primarily of longer-maturity commercial paper.
Issuances of debt in 2012 consisted primarily of senior fixed rate note offerings totaling $1.75 billion.
Repayments of debt in 2014 and 2013 consisted primarily of the maturity of our $1.0 and $1.75 billion senior fixed rate notes that matured in April 2014 and January 2013, respectively.
The remaining repayments of debt during the 2012 through 2014 time period included paydowns of commercial paper and scheduled principal payments on our capitalized lease obligations.
We consider the overall fixed and floating interest rate mix of our portfolio and the related overall cost of borrowing when planning for future issuances and non-scheduled repayments of debt.
We had $772 million of commercial paper outstanding at December 31, 2014, and no commercial paper outstanding at December 31, 2013 and 2012.
The amount of commercial paper outstanding fluctuates throughout each year based on daily liquidity needs.
The average commercial paper balance was $1.356 billion and the average interest rate paid was 0.10% in 2014 ($1.013 billion and 0.07% in 2013, and $962 million and 0.07% in 2012, respectively).
The variation in cash received from common stock issuances to employees was primarily due to level of stock option exercises in the 2012 through 2014 period.
The cash outflows in other financing activities were impacted by several factors.
Cash inflows (outflows) from the premium payments and settlements of capped call options for the purchase of UPS class B shares were $(47), $(93) and $206 million for 2014, 2013 and 2012, respectively.
Cash outflows related to the repurchase of shares to satisfy tax withholding obligations on vested employee stock awards were $224, $253 and $234 million for 2014, 2013 and 2012, respectively.
In 2013, we paid $70 million to purchase the noncontrolling interest in a joint venture that operates in the Middle East, Turkey and portions of the Central Asia region.
In 2012, we settled several interest rate derivatives that were designated as hedges of the senior fixed-rate debt offerings that year, which resulted in a cash outflow of $70 million.
Sources of Credit See note 7 to the audited consolidated financial statements for a discussion of our available credit and debt covenants.
Guarantees and Other Off-Balance Sheet Arrangements We do not have guarantees or other off-balance sheet financing arrangements, including variable interest entities, which we believe could have a material impact on financial condition or liquidity.
Contractual Commitments We have contractual obligations and commitments in the form of capital leases, operating leases, debt obligations, purchase commitments, and certain other liabilities.
We intend to satisfy these obligations through the use of cash flow from operations.
The following table summarizes the expected cash outflow to satisfy our contractual obligations and commitments as of December 31, 2014 (in millions):


| For the year ended December 31, Increase (decrease) | 2010 | Yield | ($ in millions) | Fixed maturities | Equity securities | Mortgage loans — commercial | Mortgage loans — residential | Real estate | Policy loans | Cash and cash equivalents | Other investments | Total before investment expenses | Investment expenses | Net investment income |


ENVIRONMENTAL COMPLIANCE Our environmental compliance costs include the cost of ongoing monitoring programs, the cost of remediation efforts and other similar costs.
We expense or capitalize environmental costs consistent with our capitalization policy.
We expense costs for an existing condition caused by past operations that do not contribute to future revenues.
We accrue costs for environmental assessment and remediation efforts when we determine that a liability is probable and we can reasonably estimate the cost.
At the early stages of a remediation effort, environmental remediation liabilities are not easily quantified due to the uncertainties of various factors.
The range of an estimated remediation liability is defined and redefined as events in the remediation effort occur.
When we can estimate a range of probable loss, we accrue the most likely amount.
In the event that no amount in the range of probable loss is considered most likely, the minimum loss in the range is accrued.
As of December 31, 2013, the spread between the amount accrued and the maximum loss in the range for all sites for which a range can be reasonably estimated was $3,944,000.
Accrual amounts may be based on technical cost estimations or the professional judgment of experienced environmental managers.
Our Safety, Health and Environmental Affairs Management Committee routinely reviews cost estimates, including key assumptions, for accruing environmental compliance costs; however, a number of factors, including adverse agency rulings and encountering unanticipated conditions as remediation efforts progress, may cause actual results to differ materially from accrued costs.
For additional information regarding environmental compliance costs see Note 8.


| For the Years Ended December 31, 2013 2012 2011 | Stock options | RSUs and other | Total expense, pre-tax | Tax benefit related to awards | Total expense, net of tax |


Note 19
Fair Value of Financial Instruments SFAS No.107, “Disclosures About Fair Value of Financial Instruments” (SFAS 107), requires the disclosure of the estimated fair value of financial instruments.
The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.
Quoted market prices, if available, are utilized as estimates of the fair values of financial instruments.
Since no quoted market prices exist for certain of the Corpo
ration’s financial instruments, the fair values of such instruments have been derived based on management’s assumptions, the estimated amount and timing of future cash flows and estimated discount rates.
The estimation methods for individual classifications of financial instruments are described more fully below.
Different assumptions could significantly affect these estimates.
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 instru
ments and should not be considered an indication of the fair value of the combined 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.
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 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.
Financial Instruments Traded in the Secondary Market and Strategic Investments Held-to-maturity securities, AFS debt and marketable equity securities, trading account instruments, long-term debt traded actively in the secon
dary market and strategic investments have been valued using quoted market prices.
The fair values of trading account instruments, securities and strategic investments are reported in Notes 3 and 5 of the Con
solidated Financial Statements.
Derivative Financial Instruments All derivatives are recognized on the Consolidated Balance Sheet at fair value, net of cash collateral held and taking into consideration the effects of legally enforceable master netting agreements that allow the Corpo
ration to settle positive and negative positions with the same counterparty on a net basis.
For exchange-traded contracts, fair value is based on quoted market prices.
For non-exchange traded contracts, fair value is based on dealer quotes, pricing models or quoted prices for instruments with similar characteristics.
The fair value of the Corporation’s derivative assets and liabilities is presented in Note 4 of the Consolidated Financial Statements.
Loans Fair values were estimated for groups of similar loans based upon type of loan and maturity.
The fair value of loans was determined by discounting estimated cash flows using interest rates approximating the Corporation’s current origination rates for similar loans and adjusted to reflect the inherent credit risk.
Where quoted market prices were available, primarily for certain residential mortgage loans and commercial loans, such market prices were utilized as estimates for fair values.
Substantially all of the foreign loans reprice within relatively short timeframes.
Accordingly, for foreign loans, the net carrying values were assumed to approximate their fair values.
Deposits The fair value for deposits with stated maturities was calculated by dis
counting contractual cash flows using current market rates for instruments with similar maturities.
The carrying value of foreign time deposits approx
imates 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.
The book and fair values of certain financial instruments at December 31, 2006 and 2005 were as follows:


| Pre-SFAS No. 158 Incremental effect of adopting SFAS No. 158 Post- SFAS No. 158 | (in millions) | Other assets | Total assets | Income taxes | Other liabilities | Total liabilities | Accumulated other comprehensive income (loss) | Total stockholders’ equity |


| Total cost of shares purchased Total number of shares purchased Average price paid per share | 2012 | 2011 | 2010 |


| 2004 2003 2002 | Approximate risk-free interest rate | Expected life of option grants | Expected volatility of underlying stock (the Company Plan) | Expected volatility of underlying stock (ATC Mexico and ATC South America Plans) | Expected dividends |


Commitments and Contingencies Operating Lease Commitments The Company leases its primary office spaces under agreements that expire through 2043.
Future minimum commitments under these operating leases are as follows:


| For the Years Ended  December 31, | 2009 | (In thousands) | EBITDA | Less: | Interest expense, net | Income tax provision (benefit), net | Depreciation and amortization | Net income (loss) attributable to DISH Network common shareholders |


| Amortized Cost Fair Value | Due in one year or less | Due after one year through two years | Due after two years through three years | Due in three years or more | 599,800 | Asset-backed securities | Total investments in debt securities |


| For the Years Ended December 31, Variance | (in millions) | Cost of sales | Marketing, administration and research costs | Operating income |


| 2014 2013 2012 | Collection: | Residential | Commercial | Industrial | Other | Total collection | Transfer | Less: intercompany | Transfer, net | Landfill | Less: intercompany | Landfill, net | Sale of recycled commodities | Other non-core | Other | Total revenue |


| (in thousands, except per share amounts) Shares Weighted Average Grant Date Fair Value Per Share | Balance at December 31, 2010 | Converted (a) | Granted | Vested | Forfeited | Balance at December 31, 2011 |


FUNDING AND CASH FLOWS The Company’s funding policy for the Pension Plan is to contribute amounts sufficient to meet legal funding requirements, plus any additional amounts that the Company may determine to be appropriate considering the funded status of the plans, tax deductibility, cash flow generated by the Company, and other factors.
The Company continually reassesses the amount and timing of any discretionary contributions.
Contributions to the qualified plan totaling $750 million, $353 million and $31 million were made by the Company in 2015, 2014 and 2013, respectively.
Generally, International Paper’s non-U.
S.  pension plans are funded using the projected benefit as a target, except in certain countries where funding of benefit plans is not required.
At December 31, 2015, projected future pension benefit payments, excluding any termination benefits, were as follows:


| Years Ended December 31, | 2015 | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Premiums | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest credited to fixed accounts | Benefits, claims, losses and settlement expenses | Amortization of deferred acquisition costs | Interest and debt expense | General and administrative expense | Total expenses | Operating earnings |


| December 31, 2008 | Amortized cost | (in millions) | Finance — Banking | Finance — Brokerage | Finance — Finance Companies | Finance — Financial Other | Finance — Insurance | Finance — REITS | Industrial — Basic Industry | Industrial — Capital Goods | Industrial — Communications | Industrial — Consumer Cyclical | Industrial — Consumer Non-Cyclical | Industrial — Energy | Industrial — Other | Industrial — Technology | Industrial — Transportation | Utility — Electric | Utility — Natural Gas | Utility — Other | Government guaranteed | Total corporate securities | Residential pass-through securities | Commercial mortgage-backed securities | Residential collateralized mortgage obligations -1 | Asset-backed securities — Home equity -2 | Asset-backed securities — All other | Collateralized debt obligations — Credit | Collateralized debt obligations — CMBS | Collateralized debt obligations — Loans | Collateralized debt obligations — ABS -3 | Total mortgage-backed and other asset-backed securities | U.S. Government and agencies | States and political subdivisions | Non-U.S. governments | Total fixed maturity securities, available-for-sale |


outstanding under the commercial paper program.
The maximum combined borrowing at any time under both the 2017 Credit Agreement and the commercial paper program is $3 billion.
If market conditions were to change and our revenue was reduced significantly or operating costs were to increase, our cash flows and liquidity could be reduced.
Additionally, it could cause the rating agencies to lower our credit rating.
There are no ratings triggers that would accelerate the maturity of any borrowings under our committed credit facility.
However, a downgrade in our credit ratings could increase the cost of borrowings under the credit facility and could also limit or preclude our ability to issue commercial paper.
Should this occur, we could seek alternative sources of funding, including borrowing under the credit facility.
During the year ended December 31, 2018, we used cash to fund a variety of activities including certain working capital needs and restructuring costs, capital expenditures, the repayment of debt, payment of dividends, distributions to GE and share repurchases.
We believe that cash on hand, cash flows generated from operations and the available credit facility will provide sufficient liquidity to manage our global cash needs.
Cash Flows Cash flows provided by (used in) each type of activity were as follows for the years ended December 31:


ENVIRONMENTAL REMEDIATION COSTS Costs associated with environmental remediation obligations are accrued when such costs are probable and reasonably estimable.
Such accruals are adjusted as further information develops or circumstances change.
Costs of future expenditures for environmental remediation obligations are discounted to their present value when the amount and timing of expected cash payments are reliably determinable.
ASSET RETIREMENT OBLIGATIONS In accordance with the provisions of SFAS No.143, Accounting for Asset Retirement Obligations, a liability and an asset are recorded equal to the present value of the estimated costs associated with the retirement of long-lived assets where a legal or contractual obligation exists and the liability can be reasonably estimated.
The liability is accreted over time and the asset is depreciated over the life of the related equipment or facility.
International Papers asset retirement obligations under this standard principally relate to closure costs for landfills.
Revisions to the liability could occur due to changes in the estimated costs or timing of closures, or possible new federal or state regulations affecting these closures (see Note 11).
TRANSLATION OF FINANCIAL STATEMENTS Balance sheets of international operations are translated into U. S.  dollars at year-end exchange rates, while statements of operations are translated at average rates.
Adjustments resulting from financial statement translations are included as cumulative translation adjustments in Accumulated other comprehensive income (loss) (OCI).
See Note 13 related to derivatives and hedging activities.


(a) Revenues from gas sales are subject to a weather normalization clause and a revenue decoupling mechanism, as a result of which, delivery revenues are generally not affected by changes in delivery volumes from levels assumed when rates were approved.
(b) After adjusting for variations, principally weather and billing days, firm gas sales and transportation volumes in the companys service area increased 3.9 percent in 2016 compared with 2015, reflecting primarily increased volumes attributable to additional customers that have converted from oil-to-gas as heating fuel for their buildings.
(c) Includes 4,708 thousands and 1,229 thousands of Dt for 2016 and 2015, respectively, which are also reflected in firm transportation and other.
(d) Other gas operating revenues generally reflect changes in regulatory assets and liabilities in accordance with the companys rate plans.
See Note B to the financial statements in Item 8.
Operating revenues decreased $19 million in 2016 compared with 2015 due primarily to lower gas purchased for resale expense ($18 million


| December 31, 2015 | Level 1 | Assets: | Trading securities2 | Available-for-sale securities2 | Derivatives4 | Total assets | Liabilities: | Derivatives4 | Total liabilities |


| 2003 2002 2001 | (in thousands) | Balances at January 1 | Acquisitions | Incurred related to: | Current year | Prior years | Total incurred | Paid related to: | Current year | Prior years | Total paid | Balances at December 31 | 2005 | Amortized Cost | (in thousands) | U.S. Government obligations | Tax exempt municipal securities | Corporate and other securities | Mortgage-backed securities | Redeemable preferred stocks | Debt securities | Non-redeemable preferred stocks | Common stocks | Equity securities | Long-term investment securities |


| Number of Restricted Stock Weighted Average Grant- Date Fair Value | Unvested restricted stock, December 31, 2005 | Granted | Vested and issued | Forfeited | Unvested restricted stock, December 31, 2006 | Granted | Vested and issued | Forfeited | Unvested restricted stock, December 31, 2007 | Granted | Vested and issued | Forfeited | Unvested restricted stock, December 31, 2008 |


| (in millions) 2014 2013 2012 | Nonoperating income (expense), GAAP basis | Less: Net income (loss) attributableto NCI(1) | Nonoperating income (expense)(2) | Gain related to the Charitable Contribution | Compensation expense related to (appreciation) depreciation on deferred compensation plans | Nonoperating income (expense), asadjusted(2) |


1 Our debt obligations are described in Note 5  Debt to our consolidated financial statements.2 Amounts shown include taxes and escalation payments, see Note 13  Commitments and Contingencies to our consolidated financial statements for further discussion on our operating lease obligations.3 Other consists primarily of commitments for unconditional purchase obligations in contracts for information-technology outsourcing and certain enterprise-wide information-technology software licensing and maintenance.
As of December 31, 2018, we had $147 million of liabilities for unrecognized tax benefits.
We have excluded the liabilities for unrecognized tax benefits from our contractual obligations table because, until formal resolutions are reached, reasonable estimates of the timing of cash settlements with the respective taxing authorities are not practicable.
As of December 31, 2018, we have recorded $1,620 million for our redeemable noncontrolling interest in our S&P Dow Jones Indices LLC partnership discussed in Note 9  Equity to our consolidated financial statements.
Specifically, this amount relates to the put option under the terms of the operating agreement of S&P Dow Jones Indices LLC, whereby, after December 31, 2017, CME Group and CME Group Index Services LLC (CGIS) has the right at any time to sell, and we are obligated to buy, at least 20% of their share in S&P Dow Jones Indices LLC.
We have excluded this amount from our contractual obligations table because we are uncertain as to the timing and the ultimate amount of the potential payment we may be required to make.
We make contributions to our pension and postretirement plans in order to satisfy minimum funding requirements as well as additional contributions that we consider appropriate to improve the funded status of our plans.
During 2018, we contributed $9 million and $1 million to our retirement and postretirement plans, respectively.
Expected employer contributions in 2019 are $46 million and $6 million for our retirement and postretirement plans, respectively.
In 2019, we may elect to make additional nonrequired contributions depending on investment performance and the pension plan status.
See Note 7  Employee Benefits to our consolidated financial statements for further discussion.


| December 31, | (In thousands) | Leasehold and tenant improvements | Furniture, fixtures and displays | Buildings | Software | Office equipment | Plant equipment | Land | Construction in progress | Other | Subtotal property and equipment | Accumulated depreciation | Property and equipment, net |


| (In millions) Fiscal 2018 Fiscal 2017 Fiscal 2016 | Interest income | Net gain on executive deferred compensation plan assets-1 | Other | Total interest and other income (expense), net |


| 2016 2015 | Balance at beginning of year | Acquisition of Hittite (Note 6) (1) | Goodwill adjustment related to other acquisitions -2 | Foreign currency translation adjustment | Balance at end of year |


| For the Years Ended December 31, | 2014 | (In thousands, except per share data) | Other data: | Cash flows provided by (used in): | Operating activities | Investing activities -2 | Financing activities -2 | Construction expenditures, included ininvesting activities | Dividends paid per common share -3 | Dividends declared per common share -4 |


| Year ended December 31, | 2018 | (in millions) | Operating results: | Revenues | Benefits and expenses | Adjusted operating income | Realized investment gains (losses), net, and related adjustments | Related charges | Income (loss) before income taxes and equity in earnings of operating joint ventures |


Other Assets Our Company invests in infrastructure programs with our bottlers that are directed at strengthening our bottling system and increasing unit case volume.
Additionally, our Company advances payments to certain customers for distribution rights as well as to fund future marketing activities intended to generate profitable volume, and we expense such payments over the periods benefited.
Payments under these programs are generally capitalized and reported in the line item prepaid expenses and other assets or other assets, as appropriate, in our consolidated balance sheet.
When facts and circumstances indicate that the carrying value of these assets or asset groups may not be recoverable, management assesses the recoverability of the carrying value by preparing estimates of sales volume and the resulting gross profit and cash flows.
These estimated future cash flows are consistent with those we use in our internal planning.
If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount, we recognize an impairment loss.
The impairment loss recognized is the amount by which the carrying amount exceeds the fair value.
During the year ended December 31, 2017, the Company recorded an impairment charge of $19 million related to CCR’s other assets.
Refer to Note 17 of Notes to Consolidated Financial Statements.


| Return Periods (in years) 1 in 20 1 in 50 1 in 100 1 in 250 1 in 500 1 in 1,000 | Exceeding Probability | (Dollars in millions) | Zone/ Peril | Southeast U.S., Wind | California, Earthquake | Texas, Wind |


| Net Deferred Financing Costs (In $ millions) | As of December 31, 2011 | Financing costs deferred-1 | Accelerated amortization due to refinancing activity-2 | Amortization | As of December 31, 2012 | Financing costs deferred-3 | Accelerated amortization due to refinancing activity | Amortization | As of December 31, 2013 | Financing costs deferred-4 | Accelerated amortization due to refinancing activity-5 | Amortization | As of December 31, 2014 |


| Years Ended | September 25, 2004 | Amount | Product Sales | Mammography | Osteoporosis Assessment | Digital Detectors | Other | $177,936 |


16.
SHARE-BASED COMPENSATION PLANS The Company has a 2010 Stock Incentive Plan (2010 Employee Plan), a 2009 Non-Employee Director Stock Option and Restricted Stock Plan (2009 Director Plan) and a 2003 Non-Employee Director Equity Compensation Plan (2003 Director Plan).
Under the 2010 Employee Plan, 4,000,000 common shares have been authorized to be granted as nonqualified share options, incentive share options, share appreciation rights, restricted share awards or performance share unit awards to officers and key employees of the Company.
At December 31, 2017, there were 2,553,473 remaining shares available to be granted under the 2010 Employee Plan.
The 2010 Employee Plan replaced a 2002 Employee Plan, which replaced a 1995 Employee Plan; therefore, no further awards will be granted under the 2002 Employee Plan or the 1995 Employee Plan.
Through December 31, 2017, only non-qualified share options, restricted share awards and performance share unit awards had been granted under the employee plans.
Under the 2009 Director Plan, 37,439 common shares have been authorized to be granted as share options or restricted share awards to non-employee directors of the Company.
At December 31, 2017, there were 34,957 remaining shares available to be granted under the 2009 Director Plan.
The 2009 Director Plan replaced a 1995 Director Plan, which expired.
Under the 2003 Director Plan, 500,000 common shares have been authorized to be granted as share options or share awards to non-employee directors of the Company.
At December 31, 2017 there were 346,714 remaining shares available to be granted under the 2003 Director Plan.


contracts traded on our exchanges.
In 2016, approximately 70.5% of our operating revenues were generated by transaction fee revenues.
Our principal executive offices are located at 400 South LaSalle Street, Chicago, Illinois 60605, and our telephone number is (312) 786-5600.
Our web site is www.
cboe.
com.
Information contained on or linked through our web site is not incorporated by reference into this Annual Report on Form 10-K.  History CBOE was founded in 1973 as a non-stock corporation owned by its members.
CBOE was the first organized marketplace for the trading of standardized, exchange-traded options on equity securities.
In 2004, CFE began operations as a futures exchange.
CBOE Holdings was incorporated in the State of Delaware on August 15, 2006.
In June 2010, CBOE demutualized, CBOE, CFE and C2 became wholly-
2010.
On November 1, 2010, we redeemed all $400 million of our outstanding 6.65% notes due January 15, 2011.
The redemption resulted in a $5 million early extinguishment charge.
Receivables Securitization Facility  At December 31, 2010, we have recorded $100 million as secured debt under our receivables securitization facility.
(See further discussion of our receivables securitization facility in Note 10. )15.
Variable Interest Entities We have entered into various lease transactions in which the structure of the leases contain variable interest entities (VIEs).
These VIEs were created solely for the purpose of doing lease transactions (principally involving railroad equipment and facilities) and have no other activities, assets or liabilities outside of the lease transactions.
Within these lease arrangements, we have the right to purchase some or all of the assets at fixed prices.
Depending on market conditions, fixed-price purchase options available in the leases could potentially provide benefits to us; however, these benefits are not expected to be significant.
We maintain and operate the assets based on contractual obligations within the lease arrangements, which set specific guidelines consistent within the railroad industry.
As such, we have no control over activities that could materially impact the fair value of the leased assets.
We do not hold the power to direct the activities of the VIEs and, therefore, do not control the ongoing activities that have a significant impact on the economic performance of the VIEs


The Company endeavors to actively engage with every insured account posing significant potential asbestos exposure to Mt.
McKinley.
Such engagement can take the form of pursuing a final settlement, negotiation, litigation, or the monitoring of claim activity under Settlement in Place (
SIP
) agreements.
SIP agreements generally condition an insurer’s payment upon the actual claim experience of the insured and may have annual payment caps or other measures to control the insurer’s payments.
The Company’s Mt.
McKinley operation is currently managing four SIP agreements, one of which was executed prior to the acquisition of Mt.
McKinley in 2000.
The Company’s preference with respect to coverage settlements is to execute settlements that call for a fixed schedule of payments, because such settlements eliminate future uncertainty.
The Company has significantly enhanced its classification of insureds by exposure characteristics over time, as well as its analysis by insured for those it considers to be more exposed or active.
Those insureds identified as relatively less exposed or active are subject to less rigorous, but still active management, with an emphasis on monitoring those characteristics, which may indicate an increasing exposure or levels of activity.
The Company continually focuses on further enhancement of the detailed estimation processes used to evaluate potential exposure of policyholders.
Everest Re’s book of assumed A&E reinsurance is relatively concentrated within a limited number of contracts and for a limited period, from 1974 to 1984.
Because the book of business is relatively concentrated and the Company has been managing the A&E exposures for many years, its claim staff is familiar with the ceding companies that have generated most of these liabilities in the past and which are therefore most likely to generate future liabilities.
The Company’s claim staff has developed familiarity both with the nature of the business written by its ceding companies and the claims handling and reserving practices of those companies.
This level of familiarity enhances the quality of the Company’s analysis of its exposure through those companies.
As a result, the Company believes that it can identify those claims on which it has unusual exposure, such as non-products asbestos claims, for concentrated attention.
However, in setting reserves for its reinsurance liabilities, the Company relies on claims data supplied, both formally and informally by its ceding companies and brokers.
This furnished information is not always timely or accurate and can impact the accuracy and timeliness of the Company’s ultimate loss projections.


| 2015 2014 2013 | Water | Residential | Commercial | Industrial | Public & other | Total |


| 2005 2004(Restated) | (Dollars in millions) | Residential mortgage | Credit card | Home equity lines | Direct/Indirect consumer | Other consumer | Total consumer | Table 25 | December 31 | Outstandings-1 | (Dollars in millions) | California | Florida | New York | Texas | Virginia | Other U.S./Non-U.S. | Residential mortgage loans-2 | Fully-insured loan portfolio | Countrywide purchased credit-impaired residential mortgage loan portfolio | Total residential mortgage loan portfolio |


| At December 31, | (Dollar amounts in thousands) | Derivative assets: | Interest rate lock agreements | Forward trades and options | Total derivative assets | Derivative liabilities: | Interest rate lock agreements | Forward trades and options | Total derivative liabilities | Net derivative asset (liability) |


| Commitment Expiration By Period | Total Commitment | Standby letters of credit(a) | Surety bonds | Third-party Guarantees | Total commitments |


| December 31, 2008 | Gross Derivative Assets | (Dollars in billions) | Interest rate contracts | Swaps | Futures and forwards | Written options | Purchased options | Foreign exchange contracts | Swaps | Spot, futures and forwards | Written options | Purchased options | Equity contracts | Swaps | Futures and forwards | Written options | Purchased options | Commodity contracts | Swaps | Futures and forwards | Written options | Purchased options | Credit derivatives | Purchased credit derivatives: | Credit default swaps | Total return swaps | Written credit derivatives: | Credit default swaps | Total return swaps | Gross derivative assets/liabilities | Less: Legally enforceable master netting agreements | Less: Cash collateral applied | Total derivative assets/liabilities |


Revisions to Earnings per Share Calculation.
In June 2008, the FASB revised the authoritative guidance for earnings per share for determining whether instruments granted in share-based payment transactions are participating securities.
This new guidance requires unvested share-based payment awards that contain nonforfeitable rights to dividends be considered as a separate class of common stock and included in the earnings per share calculation using the two-class method.
The Companys restricted share awards meet this definition and are therefore included in the basic earnings per share calculation.


Noble Energy, Inc.  Index to Financial Statements Notes to Consolidated Financial Statements 112 Note 4.
Noble Midstream Partners LP Noble Midstream Partners LP In December 2014, we formed Noble Midstream Partners LP, a growth-oriented Delaware master limited partnership, to own, operate, develop and acquire a wide range of domestic midstream infrastructure assets.
Noble Midstream Partners' current areas of focus are in the DJ Basin in Colorado and in the Delaware Basin within the Permian Basin in Texas.
Initial Public Offering of Noble Midstream Partners LP On September 15, 2016, Noble Midstream Partners common units began trading on the New York Stock Exchange under the symbol "NBLX. "
On September 20, 2016, Noble Midstream Partners completed its public offering of 14,375,000 common units representing limited partner interests in Noble Midstream Partners, which included 1,875,000 common units issued pursuant to the underwriters’ exercise of their option to purchase additional common units, at a price to the public of $22.50 per common unit ($21.21 per common unit, net of underwriting discounts).
In exchange for the contributed assets, Noble Energy received: ?1,527,584 common units, representing a 4.8% limited partner interest in Noble Midstream Partners; ?15,902,584 subordinated units, representing an approximate 50.0% limited partner interest in Noble Midstream Partners; ?
incentive distribution rights in Noble Midstream Partners; and ?
the right to receive a cash distribution from Noble Midstream Partners.
In addition and concurrent with the closing of the offering, the General Partner retained a non-economic general partnership interest in Noble Midstream Partners, which is not entitled to receive cash distributions.
Noble Midstream Partners generated net proceeds of $299 million from the issuance of common units to the public, after deducting the underwriting discount, structuring fees and estimated offering expenses of $24 million.
Note 5.
Asset Impairments Pre-tax (non-cash) asset impairment charges were as follows:


Accounts Receivable Trade Receivables The Company distributes its products through third-party cellular network carriers, wholesalers, retailers and value-added resellers and directly to certain education, consumer and enterprise customers.
The Company generally does not require collateral from its customers; however, the Company will require collateral in certain instances to limit credit risk.
In addition, when possible, the Company attempts to limit credit risk on trade receivables with credit insurance for certain customers in Latin America, Europe, Asia, and Australia, or by requiring third-party financing, loans or leases to support credit exposure.
These credit-financing arrangements are directly between the third-party financing company and the end customer.
As such, the Company generally does not assume any recourse or credit risk sharing related to any of these arrangements.
However, considerable trade receivables not covered by collateral, third-party financing arrangements, or credit insurance are outstanding with the Company’s third-party cellular network carriers, wholesalers, retailers and value-added resellers.
Trade receivables from two of the Company’s customers accounted for 15% and 12% of trade receivables as of September 25, 2010 and one of the Company’s customers accounted for 16% of trade receivables as of September 26, 2009.
The Company’s cellular network carriers accounted for 64% and 51% of trade receivables as of September 25, 2010 and as of September 26, 2009, respectively.
The additions and write-offs to the Company’s allowance for doubtful accounts during 2010, 2009 and 2008 were not significant.
Vendor Non-Trade Receivables The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of components to these manufacturing vendors who manufacture sub-assemblies or assemble final products for the Company.
The Company purchases these components directly from suppliers.
Vendor non-trade receivables from two of the Company’s vendors accounted for 57% and 24%, respectively, of non-trade receivables as of September 25, 2010 and two of the Company’s vendors accounted for 40% and 36%, respectively, of non-trade receivables as of September 26, 2009.
The Company does not reflect the sale of these components in net sales and does not recognize any profits on these sales until the related products are sold by the Company, at which time any profit is recognized as a reduction of cost of sales.


| 2009 | Amortized Cost | (in millions) | Fixed maturities, available for sale | U.S. Treasury securities and obligations of U.S. government authorities and agencies | Obligations of U.S. states and their political subdivisions | Foreign government bonds-4 | Corporate securities-4 | Asset-backed securities-1 | Commercial mortgage-backed securities | Residential mortgage-backed securities-2 | Total fixed maturities, available for sale | Equity securities, available for sale |


| MaximumPotentialPayments EstimatedProceeds fromCollateral/Recourse CarryingAmount ofLiabilities | December 31, | Contingent repurchase commitments | Indemnifications to ULA: | Contributed Delta program launch inventory | Contract pricing | Other Delta contracts | Credit guarantees |


| 2013 2012 | (in millions) | Commercial mortgage loan commitments | Consumer mortgage loan commitments | Consumer lines of credit | Affordable housing partnerships | Total funding commitments |


| 2019 2018 | First quarter | Second quarter | Third quarter | Fourth quarter | Total |


| In millions 2005 2004 2003 | Sales | Operating Profit |


| 2005 2006 2007 2008 2009 | Non-Utility Nuclear: | Percent of planned generation sold forward: | Unit-contingent | Unit-contingent with availability guarantees | Firm liquidated damages | Total | Planned generation (TWh) | Average contracted price per MWh |


UNITED PARCEL SERVICE, INC.  AND SUBSIDIARIES MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 37 Other Expenses 2012 compared to 2011 Adjusted other expenses increased in 2012 compared with 2011, primarily due to an increase in transportation equipment rentals, bad debt expense and auto liability insurance, as well as expenses incurred in 2012 related to the proposed TNT Express N. V.  acquisition.
These increases were partially offset by a reduction in employee relocation expenses and a decline in package claims expense.
Additionally, 2012 adjusted other expenses were reduced by a $9 million gain on the sale of a distribution facility in our Supply Chain & Freight segment.2011 compared to 2010 The increase in adjusted other expenses in 2011 compared with 2010 was caused by several factors, including foreign currency remeasurement losses, advertising costs, employee expense reimbursements, equipment rentals, air cargo handling costs and data processing fees.
These increases were partially offset by a reduction in bad debt and employee relocation expenses.


Improvements of leased properties are amortized over the shorter of the life of the applicable lease term or the estimated useful life of the asset.
HEWLETT PACKARD ENTERPRISE COMPANY AND SUBSIDIARIES Notes to Consolidated Financial Statements (Continued) Note 1: Overview and Summary of Significant Accounting Policies (Continued) Loss Contingencies The Company is involved in various lawsuits, claims, investigations, and proceedings that arise in the ordinary course of business.
The Company records a liability for contingencies when it believes it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated.
See Note 18, ‘‘Litigation and Contingencies’’, for a full description of the Company’s loss contingencies.
Recent Tax Legislation On December 22, 2017, the Tax Cuts and Jobs Act (the ‘‘Tax Act’’) was enacted into law.
The Tax Act includes significant changes to the U. S.  corporate income tax structure, including a federal corporate rate reduction from 35% to 21% effective January 1, 2018, limitations on the deductibility of interest expense and executive compensation, creation of new minimum taxes such as the Base Erosion Anti-abuse Tax (‘‘BEAT’’) and the Global Intangible Low Taxed Income (‘‘GILTI’’) tax and the transition of U. S.  international taxation from a worldwide tax system to a modified territorial tax system, which resulted in a one-time U. S.  tax liability on those earnings which have not previously been repatriated to the U. S.  (the ‘‘Transition Tax’).
In December 2017, the U. S.  Securities and Exchange Commission (‘‘SEC’’) issued Staff Accounting Bulletin No.118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (‘‘SAB 118’’), which allowed the Company to record provisional amounts during a measurement period not to extend beyond one year of the enactment date, which for the Company ended in the first quarter of fiscal 2019.
In accordance with SAB 118, the accounting for the tax effects of the Tax Act was completed based on currently available legislative updates relating to the Tax Act.
The Company has elected to treat taxes due on future GILTI inclusions in U. S.  taxable income as a current period expense when incurred.
For further details, see Note 8, ‘‘Taxes on Earnings’’.
Recently Adopted Accounting Pronouncements In March 2017, the Financial Accounting Standards Board (‘‘FASB’’) amended the existing accounting standards for retirement benefits.
The amendments require the presentation of the service cost component of net periodic benefit cost in the same income statement line items as other employee compensation costs, unless eligible for capitalization.
The other components of net periodic benefit costs will be presented separately from the service cost as non-operating costs.
Effective at the beginning of the first quarter of fiscal 2019, in connection with the adoption of the accounting standards update for retirement benefits, the Company reflected these changes retrospectively by transferring its non-service net periodic benefit credit (cost) from operating expense to other (income) and expense in its Consolidated Statements of Earnings.
The net periodic benefit credit (cost) transferred to other (income) and expense for the fiscal years ended October 31, 2018 and 2017, was as follows.
Refer to Note 6, ‘‘Retirement and Post-Retirement Benefit Plans’’ for additional information.


| Years ended December 31, | 2008 | AmerisourceBergen Corporation | Gross product sales | % of total gross revenues | % of U.S. gross product sales | McKesson Corporation | Gross product sales | % of total gross revenues | % of U.S. gross product sales | Cardinal Health, Inc. | Gross product sales | % of total gross revenues | % of U.S. gross product sales | Year Ended December | $ in millions | Interest rate hedges | Hedged borrowings and bank deposits | Hedge ineffectiveness |


| Years Ended December 31, | 2016 | Direct premiums | Reinsurance ceded | Net premiums |


| Year Ended December 31, Variance 2012 vs. 2011 | 2012 | Net operating interest income | Commissions | Fees and service charges | Principal transactions | Gains on loans and securities, net | Net impairment | Other revenues | Total non-interest income | Total net revenue | Year Ended December 31, 2012 | Other-than-temporary impairment (“OTTI”) | Less: noncredit portion of OTTI recognized into (out of) other comprehensive income (loss) (before tax) | Net impairment | December 31, | 2013 | Shareholders’ equity | Deduct: | Losses in other comprehensive income on available-for-sale debt securities and cash flow hedges, net of tax | Goodwill and other intangible assets, net of deferred tax liabilities | Subtotal | Deduct: | Disallowed servicing assets and deferred tax assets | Tier 1 common | Total risk-weighted assets | Tier 1 common ratio (Tier 1 common / Total risk-weighted assets) |


Other Federal, State and Local Environmental Provisions Toxic Substances Control Act Virtually all electric utilities, including CECONY, own equipment containing PCBs.
PCBs are regulated under the Federal Toxic Substances Control Act of 1976.
Water Quality Certain governmental authorities are investigating contamination in the Hudson River and the New York Harbor.
These waters run through portions of CECONYs service area.
Governmental authorities could require entities that released hazardous substances that contaminated these waters to bear the cost of investigation and remediation, which could be substantial.
Air Quality Under new source review regulations, an owner of a large generating facility, including CECONYs steam and steamelectric generating facilities, is required to obtain a permit before making modifications to the facility, other than routine maintenance, repair, or replacement, that increase emissions of pollutants from the facility above specified thresholds.
To obtain a permit, the facility owner could be required to install additional pollution controls or otherwise limit emissions from the facility.
The company reviews on an on-going basis its planned modifications to its generating facilities to determine the potential applicability of new source review and similar regulations.
In July 2010, revised New York State nitrogen oxides reasonably available control technology regulations became effective.
The EPA is expected to adopt regulations in February 2011 establishing maximum achievable control technology standards for industrial boilers.
The regulations apply to major air emissions sources, including CECONYs generating facilities.
CECONY anticipates that additional regulations will be adopted requiring further reductions in air emissions.
CECONYs plans to comply with the regulations include the modification by 2014 of certain of
CECONY


| (in millions) First Quarter Second Quarter Third Quarter Fourth Quarter Total | 2017 | Costs to Achieve Piedmont Merger (see Note 2) | Impacts of the Tax Act (see Note 22) | Total | 2016 | Costs to Achieve Mergers | Cost Savings Initiatives (see Note 19) | Total |


| Country Number of Owned Sites  (approx) Coverage Area | United States | Mexico | Brazil | India |


| Criticized Commercial Loans | In millions | December 31, 2015 | Commercial | Commercial real estate | Equipment lease financing | Purchased impaired loans | Total commercial lending | December 31, 2014 | Commercial | Commercial real estate | Equipment lease financing | Purchased impaired loans | Total commercial lending |


The fair value of NSP-Minnesota assets legally restricted, for purposes of settling the nuclear ARO is $1.1 billion as of Dec.  31, 2008, including external nuclear decommissioning investment funds and internally funded amounts.
A new decommissioning study filed with the MPUC in 2008 proposed extension of the final removal date of the Monticello and Prairie Island nuclear plants by 14 and 26 years, respectively, effective Jan.  1, 2009.
As a result of the studies for the Monticello and Prairie Island nuclear plants, the nuclear production decommissioning ARO and related regulatory asset decreased by $128.5 million and $139.3 million, respectively, in the fourth quarter of 2008.
Revisions to prior estimates were made for asbestos, ash ponds, gas distribution and electric transmission and distribution asset retirement obligations due to revised estimates and end of life dates.


| Years Ended December 31, | 2012 | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Premiums | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest credited to fixed accounts | Benefits, claims, losses and settlement expenses | Amortization of deferred acquisition costs | Interest and debt expense | General and administrative expense | Total expenses | Income from continuing operations before income tax provision | Income tax provision | Income from continuing operations | Loss from discontinued operations, net of tax | Net income | Less: Net loss attributable to noncontrolling interests | Net income attributable to Ameriprise Financial |


| Qualified Pension Nonqualified Pension Postretirement Benefits | December 31 (Measurement Date) – in millions | Accumulated benefit obligation at end of year | Projected benefit obligation at beginning of year | National City acquisition | RBC Bank (USA) acquisition | Service cost | Interest cost | Actuarial (gains)/losses and changes in assumptions | Participant contributions | Federal Medicare subsidy on benefits paid | Early Retirement Reinsurance Program payments received | Benefits paid | Projected benefit obligation at end of year | Fair value of plan assets at beginning of year | Actual return on plan assets | Employer contribution | Participant contributions | Federal Medicare subsidy on benefits paid | Benefits paid | Fair value of plan assets at end of year | Funded status | Amounts recognized on the consolidated balance sheet | Current liability | Noncurrent liability | Liabilities recognized on the consolidated balance sheet | Amounts recognized in accumulated other comprehensive income consist of: | Prior service cost (credit) | Net actuarial loss | Amount recognized in AOCI |


Risk monitoring and control Limits Market risk is controlled primarily through a series of limits.
Limits reflect the Firms risk appetite in the context of the market environment and business strategy.
In setting limits, the Firm takes into consideration factors such as senior management risk appetite, market volatility, product liquidity, accommodation of client business and management experience.
Market risk management regularly reviews and updates risk limits.
Senior management, including the Firms Chief Executive Officer and Chief Risk Officer, is responsible for reviewing and approving cetain risk limits on an ongoing basis.
The Firm maintains different levels of limits.
Corporate-level limits include VaR and stress limits.
Similarly, line-of-business limits include VaR and stress limits and may be supplemented by loss advisories, nonstatistical measurements and profit and loss drawdowns.
Businesses are responsible for adhering to established limits, against which exposures are monitored and reported.
Limit breaches are reported in a timely manner to senior management, and the affected line-of-business is required to reduce trading positions or consult with senior management on the appropriate action.


| Change | Years Ended June 30, | 2009 | ($ in millions) | Investor Communication Solutions | Securities Processing Solutions | Clearing and Outsourcing Solutions | Other | Foreign currency exchange | Total Net revenues |


Legal We are party to a number of claims and lawsuits incidental to our business.
In our opinion, the liabilities, if any, which may ultimately result from the outcome of such matters, individually or in the aggregate, are not expected to have a material adverse impact on our financial position, liquidity or results of operations.
Operating Taxes We define operating taxes as taxes that are unrelated to income taxes, such as sales, property, value-add and other business taxes.
During the course of operations, we must interpret the meaning of various operating tax matters in the United States and in the foreign jurisdictions in which we do business.
Taxing authorities in those various jurisdictions may arrive at different interpretations of applicable tax laws and regulations as they relate to such operating tax matters, which could result in the payment of additional taxes in those jurisdictions.
As of May 31, 2013 and 2012, we did not have liabilities for contingencies related to operating tax items based on management’s best estimate given our history with similar matters and interpretations of current laws and regulations.
BIN/ICA Agreements We have entered into sponsorship or depository and processing agreements with certain banks.
These agreements allow us to use the banks’ identification numbers, referred to as Bank Identification Number (“BIN”) for Visa transactions and Interbank Card Association (“ICA”) number for MasterCard transactions, to clear credit card transactions through Visa and MasterCard.
Certain of such agreements contain financial covenants, and we were in compliance with all such covenants as of May 31, 2013.
Our Canadian Visa sponsorship, which was originally obtained through a Canadian financial institution, expired in March 2011.
We have filed an application with the Office of the Superintendent of Financial Institutions Canada (“OSFI”) for the formation of a wholly owned loan company in Canada which would serve as our financial institution sponsor.
On December 12, 2012, the loan company received a restricted Order to Commence and Carry on Business from OSFI which will enable the loan company to become a direct Visa member at such time that Global Payments concludes the appropriate BIN transfer process with Visa.
In March 2011, we obtained temporary direct participation in the Visa Canada system, while the loan company application was pending.
We anticipate that the BIN transfer process with Visa will be completed by September 30, 2013.
Foreign currencies — We have significant operations in a number of foreign subsidiaries whose functional currency is the local currency.
The assets and liabilities of subsidiaries whose functional currency is a foreign currency are translated into the reporting currency at the period-end rate of exchange.
Income statement items are translated at the weighted-average rates prevailing during the period.
The resulting translation adjustment is recorded as a component of other comprehensive income and is included in accumulated comprehensive income within equity in our consolidated balance sheets.
Gains and losses on transactions denominated in currencies other than the functional currency are generally included in determining net income for the period.
For the years ended December 31, 2018 and 2017, the 2016 fiscal transition period and the year ended May 31, 2016, our transaction gains and losses were insignificant.
Transaction gains and losses on intercompany balances of a long-term investment nature are recorded as a component of other comprehensive income and included in accumulated comprehensive income within equity in our consolidated balance sheets.
Earnings per share — Basic earnings per share (“EPS”) is computed by dividing reported net income attributable to Global Payments by the weighted-average number of shares outstanding during the period.
Earnings available to common shareholders is the same as reported net income attributable to Global Payments for all periods presented.
Diluted EPS is computed by dividing net income attributable to Global Payments by the weighted-average number of shares outstanding during the period, including the effect of share-based awards that would have a dilutive effect on earnings per share.
All stock options with an exercise price lower than the average market share price of our common stock for the period are assumed to have a dilutive effect on EPS.
There were no stock options that would have an antidilutive effect on the computation of diluted EPS for the years ended December 31, 2018 and 2017, the 2016 fiscal transition period or for the year ended May 31, 2016.
The following table sets forth the computation of the diluted weighted-average number of shares outstanding for all periods presented:


| Fiscal Years Operating Leases | 2020 | 2021 | 2022 | 2023 | 2024 | Later Years | Total |


1 In addition to the facilities included in the table above, we operate 21 recrushed concrete plants which are not dependent on reserves.2 The regions are defined by states as follows: Central region – Illinois, central Kentucky and Tennessee; East region – Delaware, central Georgia, Maryland, North Carolina, Pennsylvania, South Carolina, Virginia and Washington D. C. ; South region – Alabama, Arkansas, Florida, south Georgia, western Kentucky, Louisiana, Mississippi, Oklahoma, Texas, the Bahamas and Mexico; and West region – Arizona, California and New Mexico.3 Includes a maximum of 387.5 million tons of reserves encumbered by volumetric production payments as defined in Note 1 "Summary of Significant Accounting Policies" caption “Deferred Revenue” to the consolidated financial statements in Item 8 "Financial Statements and Supplementary Data. "
Of the 15.8 billion tons of aggregates reserves at December 31, 2014, 8.8 billion tons or 56% are located on owned land and 7.0 billion tons or 44% are located on leased land.


LIQUIDITY AND CAPITAL RESOURCES Overview A major factor in International Papers liquidity and capital resource planning is its generation of operating cash flow, which is highly sensitive to changes in the pricing and demand for our major products.
While changes in key cash operating costs, such as energy, raw material and transportation costs, do have an effect on operating cash generation, we believe that our strong focus on cost controls has improved our cash flow generation over an operating cycle.
As part of our continuing focus on improving our return on investment, we have focused our capital spending on improving our key paper and packaging businesses both globally and in North America.
Financing activities in 2007 continued the focus on the Transformation Plan objectives of returning value to shareholders through additional repurchases of common stock and strengthening the balance sheet through further reductions of debt.
Management believes it is important for International Paper to maintain an investment-grade credit rating to facilitate access to capital markets on favorable terms.
At December 31, 2007, the Company held long-term credit ratings of BBB (stable outlook) and Baa3 (stable outlook) by Standard & Poors (S&P) and Moodys Investor Services (Moodys), respectively.
Cash Provided by Operations Cash provided by continuing operations totaled $1.9 billion, compared with $1.0 billion for 2006 and $1.2 billion for 2005.
The 2006 amount is net of a $1.0 billion voluntary cash pension plan contribution made in the fourth quarter of 2006.
The major components of cash provided by continuing operations are earnings from continuing operations adjusted for non-cash income and expense items and changes in working capital.
Earnings from continuing operations, adjusted for non-cash items and excluding the pension contribution in 2006, increased by $123 million in 2007 versus 2006.
This compared with an increase of $584 million for 2006 over 2005.  International Papers investments in accounts receivable and inventory less accounts payable and accrued liabilities, totaled $1.7 billion at December 31, 2007.
Cash used for these working capital components increased by $539 million in 2007, compared with a $354 million increase in 2006 and a $558 million increase in 2005.
Investment Activities Investment activities in 2007 included the receipt of $1.7 billion of additional cash proceeds from divestitures, and the use of $239 million for acquisitions and $578 million for an investment in a 50% equity interest in Ilim Holding S. A.  in Russia.
Capital spending from continuing operations was $1.3 billion in 2007, or 119% of depreciation and amortization, comparable to $1.0 billion, or 87% of depreciation and amortization in 2006, and $992 million, or 78% of depreciation and amortization in 2005.
The increase in 2007 reflects spending for the conversion of the Pensacola paper machine to the production of linerboard, a fluff pulp project at our Riegelwood mill, and a specialty pulp production project at our Svetogorsk mill in Russia, all of which were part of the Companys Transformation Plan.


| Sales Price | High | Fiscal 2010 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Fiscal 2009 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter |


| Year Ended December 31, | Assumptions | Risk-free interest rate | Expected life in years | Expected volatility | Expected dividend yield | Estimated fair value of options granted per share |


| 2015 2014 | Net sales | Net earnings | Basic earnings per common share | Diluted earnings per common share |


| 2017 2016 2015 | Expected long-term rate of return on plan assets | Actual rate of return on plan assets |


| Fiscal Years Ending March 31, Operating Leases (in $000s) | 2019 | 2020 | 2021 | 2022 | 2023 | Thereafter | Total minimum lease payments |


| Con Edison CECONY | Weighted Average Grant Date Fair Value (a) | Units | Non-vested at December 31, 2014 | Granted | Vested | Forfeited | Non-vested at December 31, 2015 |


(1) In 2005, $51 million in Interest Income was estimated to be contractually due on nonperforming commercial loans and leases classified as nonperforming at December 31, 2005, including troubled debt restructured loans of which $31 million were performing at December 31, 2005 and not included in the table above.
Approximately $15 million of the estimated $51 million in contractual interest was received and included in net income for 2005.
(2) Primarily related to international securities held in the AFS portfolio.
(3) Balances do not include $45 million, $123 million, $186 million, $73 million, and $289 million of nonperforming commercial assets, primarily commercial loans held-for-sale, included in Other Assets at December 31, 2005, 2004, 2003, 2002, and 2001, respectively.


| 2008 2007 | Beginning balance | Additions for tax positions of prior periods | Additions for tax positions of the current period | Reductions for tax positions of prior years for: | Settlements with taxing authorities during the period | Lapse of applicable statute of limitations | Ending balance |


Any change in the fair value of foreign currency exchange forward contracts as a result of a fluctuation in a currency exchange rate is expected to be largely offset by a change in the value of the hedged transaction.
Consequently, foreign currency exchange contracts would not subject us to material risk due to exchange rate movements because gains and losses on these contracts offset gains and losses on the assets, liabilities and transactions being hedged.
We have net assets in legal entities with non-U.
S.  Dollar functional currencies of $2,295.6 million at December 31, 2013, primarily in Euros, Japanese Yen and Australian Dollars.
$1,354.3 million of the net asset exposure at December 31, 2013 relates to goodwill recorded in the Europe and Asia Pacific geographic segments.
We enter into foreign currency forward exchange contracts with terms of one month to manage currency exposures for monetary assets and liabilities denominated in a currency other than an entitys functional currency.
As a result, foreign currency remeasurement gains/losses recognized in earnings are generally offset with gains/losses on the foreign currency forward exchange contracts in the same reporting period.


| Period(a) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs(b) Amount Available for Future Share Repurchases Under the Plans or Programs(b)(in millions) | September 29, 2014 – October 26, 2014 | October 27, 2014 – November 30, 2014 | December 1, 2014 – December 31, 2014 | Total |


| December 31, 2009 December 31, 2008 | Industry | (in millions) | Corporate Securities: | Manufacturing | Utilities | Finance | Services | Energy | Transportation | Retail and Wholesale | Other | First to Default Baskets-1 | Total Credit Derivatives |


| December 31, | 2009 | (in millions) | Available-for-Sale securities, at fair value | Commercial mortgage loans, net | Trading securities | Policy loans | Other investments | Total |


| Twelve Months Ended December 31, Change | 2018 vs. 2017 | International | (In millions) | Operating revenue: | Asia Pacific | Europe | Latin America | Canada | Total operating revenue | % of consolidated revenue | Total operating income | Operating margin |


(1) Unproved oil and gas properties includes $304 million and $327 million at December 31, 2010 and 2009, respectively, remaining from the allocation of costs to unproved properties acquired in previous acquisitions.
(2) Proved oil and gas properties include asset retirement costs of $208 million and $176 million at December 31, 2010 and 2009, respectively.
Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves (Unaudited) The following information is based on our best estimate of the required data for the Standardized Measure of Discounted Future Net Cash Flows in accordance with US GAAP for extractive activities.
The standards require the use of a 10% discount rate.
This information is not the fair value nor does it represent the expected present value of future cash flows of our proved oil and gas reserves.


| Years Ended December 31 2015 2014 2013 | Total intrinsic value of stock options exercised | Fair value of stock options vested | Cash received from the exercise of stock options |


| Sales Volumes Average Sales Price ProductionCost-1 Per BOE | Crude Oil MBpd | Year Ended December 31, 2009 | United States | Wattenberg Field | Other US | Total US-2 | Alba Field (Equatorial Guinea)(3) | Israel | North Sea | Ecuador | China | Total Consolidated Operations | Equity Investee-4 | Total | Year Ended December 31, 2008 | United States | Wattenberg Field | Other US | Total US-2 | Alba Field (Equatorial Guinea)(3) | Israel | North Sea | Ecuador | China | Total Consolidated Operations | Equity Investee-4 | Total | Year Ended December 31, 2007 | United States | Wattenberg Field | Other US | Total US-2 | Alba Field (Equatorial Guinea)(3) | Israel | North Sea | Ecuador | China | Argentina-5 | Total Consolidated Operations | Equity Investee-4 | Total |


(9) LONG-TERM DEBT On July 7, 2008, the Company entered into a new $1.1 billion unsecured credit facility with JPMorgan Chase Bank, N. A. , as administrative agent, and a syndicate of lenders, which replaces its $1.355 billion amended and restated secured credit facility, dated as of December 13, 2004.
Th e $1.1 billion facility is composed of a $350.0 million term loan facility maturing July 7, 2010 and a fi ve year $750.0 million revolving credit facility maturing July 7, 2013.
Th e Company may also, subject to compliance with specifi ed conditions, request additional term loans or revolving credit commitments in an aggregate amount not to exceed $350.0 million.
On August 6, 2008, we issued $500 million aggregate principal amount of 6.625% senior notes due August 15, 2013 (the Notes).
Th e Notes bear interest at a fi xed rate of 6.625% per year, payable semi-annually in arrears on February 15 and August 15 of each year, beginning February 15, 2009.
Th e interest payable on the Notes is subject to adjustment if either Moodys Investors Service or Standard & Poors Ratings Services downgrades the rating assigned to the Notes.
We may redeem some or all of the Notes at any time or from time to time, at 100% of their principal amount plus a make-whole premium based on a spread to U. S.  Treasury securities as described in the indenture relating to the Notes.


| Average for theYear Ended December | $ in billions | Alternative investments | Equity | Fixed income | Total long-term AUS | Liquidity products | Total AUS |


The use of the two wholly-owned special purpose entities discussed below preserved the tax deferral that resulted from the 2007 Temple-Inland timberlands sales.
The Company recognized an $840 million deferred tax liability in connection with the 2007 sales, which will be settled with the maturity of the notes in 2027.
In October 2007, Temple-Inland sold 1.55 million acres of timberlands for $2.38 billion.
The total consideration consisted almost entirely of notes due in 2027 issued by the buyer of the timberlands, which Temple-Inland contributed to two wholly-owned, bankruptcy-remote special purpose entities.
The notes are shown in Financial assets of special purpose entities in the accompanying consolidated balance sheet and are supported by $2.38 billion of irrevocable letters of credit issued by three banks, which are required to maintain minimum credit ratings on their long-term debt.
In the third quarter of 2012, International Paper completed its preliminary analysis of the acquisition date fair value of the notes and determined it to be $2.09 billion.
As of December 31, 2014 and 2013, the fair value of the notes was $2.27 billion and $2.62 billion, respectively.
These notes are classified as Level 2 within the fair value hierarchy, which is further defined in Note 14.
In December 2007, Temple-Inland's two wholly-owned special purpose entities borrowed $2.14 billion shown in Nonrecourse financial liabilities of special purpose entities in the accompanying consolidated balance sheet.
The loans are repayable in 2027 and are secured only by the $2.38 billion of notes and the irrevocable letters of credit securing the notes and are nonrecourse to the Company.
The loan agreements provide that if a credit rating of any of the banks issuing the letters of credit is downgraded below the specified threshold, the letters of credit issued by that bank must be replaced within 30 days with letters of credit from another qualifying financial institution.
In the third quarter of 2012, International Paper completed its preliminary analysis of the acquisition date fair value of the borrowings and determined it to be $2.03 billion.
As of December 31, 2014 and 2013, the fair value of this debt was $2.16 billion and $2.49 billion, respectively.
This debt is classified as Level 2 within the fair value hierarchy, which is further defined in Note 14.
During 2012, the credit ratings for two letter of credit banks that support $1.0 billion of the 2007 Monetized Notes were downgraded below the specified threshold.
These letters of credit were successfully replaced by other qualifying institutions.
Fees of $8 million were incurred in connection with these replacements.
Activity between the Company and the 2007 financing entities was as follows:


| In millions December 312012 December 312011 | Commercial lending | Commercial | Commercial real estate | Equipment lease financing | Total Commercial Lending | Consumer lending | Home equity | Residential real estate | Credit card | Other consumer | Total consumer lending | Total loans (a) (b) | In millions | Commercial and commercial real estate | Home equity lines of credit | Credit card | Other | Total (a) |


| Number of Shares/Units Weighted-Average Fair Value (Grant Date) | Non-vested at December 31, 2007 | Granted | Vested | Forfeited | Non-vested at December 31, 2008 | Granted | Vested | Forfeited | Non-vested at December 31, 2009 | Granted | Vested | Forfeited | Non-vested at December 31, 2010 |


| Years Ended December 31, | (Dollars in millions) | 2015 | Attritional | Catastrophes | Total segment | 2014 | Attritional | Catastrophes | Total segment | 2013 | Attritional | Catastrophes | Total segment | Variance 2015/2014 | Attritional | Catastrophes | Total segment | Variance 2014/2013 | Attritional | Catastrophes | Total segment | (Some amounts may not reconcile due to rounding.) |


| Year Ended December 31, | 2004 | (in millions of U.S. dollars, except per share amounts) | Operating Data: | Revenues | Operating income -1 (3) | Income before taxes -3 | Net income -2 | Net income per share | Basic -2 | Diluted -2 | Other Data: | Depreciation and amortization | Capital expenditures | Balance Sheet Data: | Working capital | Total assets | Long-term debt, less current maturities | Stockholders’ equity |


| Plan Category Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) Weighted-average exercise price of outstanding options, warrants and rights (b) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | Equity compensation plans approved by security holders | Equity compensation plans not approved by security holders -1 | Total |


Income from continuing operations before income taxes, extraordinary gain on acquisition and cumulative effect of accounting change includes income from foreign operations of $1,828 million, $994 million and $663 million for the years ended December 31, 2005, 2004 and 2003, respectively.
Revenues, calculated in accordance with U. S.  GAAP, include revenues from foreign operations of $8,969 million, $6,826 million and $5,807 million for the years ended December 31, 2005, 2004 and 2003, respectively.
Included in the revenues from foreign operations are revenues from Japanese operations of $7,000 million, $5,355 million and $4,640 million for the years ended December 31, 2005, 2004 and 2003, respectively.
The Asset Management segment revenues include intersegment revenues of $358 million, $348 million and $343 million for the years ended December 31, 2005, 2004 and 2003, respectively, primarily consisting of asset-based management and administration fees.
In addition, the Financial Advisory segment revenues include intersegment revenues of $85 million for the year ended December 31, 2003 relating to the sale of proprietary investments products.
Management has determined the intersegment revenues with reference to market rates.
Intersegment revenues are eliminated in consolidation in Corporate and Other.
The gross unrealized losses as of December 31, 2005 were primarily concentrated in the manufacturing and services sectors while the gross unrealized losses as of December 31, 2004 were primarily concentrated in the manufacturing sector.
Impairments of Equity Securities For those equity securities classified as available-for-sale we record unrealized gains and losses to the extent cost is different from estimated fair value.
All securities with unrealized losses are subject to our review to identify other-than-temporary impairments in value.
In evaluating whether a decline in value is other-than-temporary, we consider several factors including, but not limited to, the following: ?
the extent (generally if greater than 20%) and the duration (generally if greater than six months) of the decline; ?
the reasons for the decline in value (credit event or market fluctuation); ?
our ability and intent to hold the investment for a period of time to allow for a recovery of value; and ?
the financial condition of and near-term prospects of the issuer.
When we determine that there is an other-than-temporary impairment, we record a writedown to estimated fair value, which reduces the cost basis.
The new cost basis of an impaired security is not adjusted for subsequent increases in estimated fair value.
Estimated fair values for publicly traded equity securities are based on quoted market prices or prices obtained from independent pricing services.
Estimated fair values for privately traded equity securities are determined using valuation and discounted cash flow models that call for a substantial level of judgment from management.
Impairments of equity securities attributable to the Financial Services Businesses were $8 million in 2005 and $19 million in 2004.
Impairments of equity securities attributable to the Closed Block Business were $10 million in 2005 and $9 million in 2004.
For a further discussion of impairments, see “—Realized Investment Gains” above.
Other Long-Term Investments “Other long-term investments” are comprised as follows:


| (In millions) E&P OSM RM&T Total | 2008 | Beginning balance | Impairment | Deferred tax adjustments | Purchase price adjustments | Contingent consideration adjustment | Dispositions | Ending balance | 2009 | Beginning balance, gross | Less: accumulated impairments | Beginning balance, net | Deferred tax adjustments | Contingent consideration adjustment | Dispositions | Ending balance, net |


Stock Repurchases.
In accordance with stock repurchases authorized by our Board of Directors we purchased stock with an aggregate total repurchase price of $206.4 million during 2012.
As of December 31, 2012, $100.2 million was available to be repurchased under the current repurchase authorizations, which were announced on October 18, 2012 and November 20, 2012.
On February 5, 2013 we announced that our Board of Directors authorized the expenditure of up to an additional $100 million to repurchase shares of our common stock.
We have entered into an agreement with a broker under SEC rule 10b5-1(c), authorizing the broker to make open market purchases of common stock from time to time, subject to market conditions.
The existing repurchase agreement and the Boards authorization of the repurchases may be modified, suspended, or discontinued at any time.
On November 20, 2012, we also entered into a privately negotiated accelerated share repurchase transaction (ASR) to repurchase $25 million of our common stock.
The $25 million is part of the $100 million repurchase program announced on November 20, 2012.
We advanced the $25 million upon commencement of the transaction and received 65,187 shares, which represented 70% of the total number of shares to be repurchased calculated using the closing price on the commencement date.
The final number of shares to be repurchased under the ASR will be determined based generally on the volume-weighted average share price of our common stock over a specified period.
The ASR will be completed during the first quarter of 2013.


CONTINGENCIES In the ordinary course of business, the Company is involved in lawsuits, arbitrations and other formal and informal dispute resolution procedures, the outcomes of which will determine the Companys rights and obligations under insurance, reinsurance and other contractual agreements.
In some disputes, the Company seeks to enforce its rights under an agreement or to collect funds owing to it.
In other matters, the Company is resisting attempts by others to collect funds or enforce alleged rights.
These disputes arise from time to time and as they arise are addressed, and ultimately resolved, through both informal and formal means, including negotiated resolution, arbitration and litigation.
In all such matters, the Company believes that
Gross written premiums increased by 18.2% to $1,268.7 million in 2013 compared to $1,073.1 million in 2012.
This increase was primarily driven by California workers compensation, crop and non-standard auto business.
Net written premiums increased by 27.5% to $1,086.2 million in 2013 compared to $852.1 million in 2012.
The larger increase in net written premiums compared to gross written premiums is mainly due to less use of reinsurance, particularly on the crop business.
Premiums earned increased 21.7% to $1,037.4 million in 2013 compared to $852.4 million in 2012.
The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.


| At December 31, 2016 | Options Outstanding | Weighted- | Average | Number | Range of | Exercise Prices | $71.7150 - $78.1700 | $78.1800 - $85.6300 | $85.6400 - $87.4700 | $87.4800 - $110.1300 | 454,994 |


| Years Ended December 31, | 2009 | (in millions, except percentages) | Total net revenues | Advice & Wealth Management | Asset Management | Annuities | Protection | Corporate & Other | Eliminations | Total net revenues | Total expenses | Advice & Wealth Management | Asset Management | Annuities | Protection | Corporate & Other | Eliminations | Total expenses | Net income (loss) attributable to noncontrolling interests | Asset Management | Pretax income (loss) attributable to Ameriprise Financial | Advice & Wealth Management | Asset Management | Annuities | Protection | Corporate & Other | Pretax income (loss) attributable to Ameriprise Financial |


Foreign Currency Derivatives.
In connection with its purchase of BM&FBOVESPA stock in February 2008, CME Group purchased a put option to hedge against changes in the fair value of BM&FBOVESPA stock resulting from foreign currency rate fluctuations between the U. S.  dollar and the Brazilian real (BRL) beyond the option’s exercise price.
Lehman Brothers Special Financing Inc.  (LBSF) was the sole counterparty to this option contract.
On September 15, 2008, Lehman Brothers Holdings Inc.  (Lehman) filed for protection under Chapter 11 of the United States Bankruptcy Code.
The bankruptcy filing of Lehman was an event of default that gave the company the right to immediately terminate the put option agreement with LBSF.
In March 2010, the company recognized a $6.0 million gain on derivative instruments as a result of a settlement from the Lehman bankruptcy proceedings.21.


| Year Ended December 31, 2016 to 2017 % Change 2015 to 2016 % Change | 2017 | (in thousands) | Sales and marketing | Sales and marketing as a percentage of revenue |


The Company conducts substantially all of its operations in the United States.
There are no transactions with a single customer that in the aggregate result in revenues that exceed ten percent of consolidated total revenues.


| (in millions) 2016 2015 2014 | Stock-based compensation: | Restricted stock and RSUs | Long-term incentive plans to be funded by PNC | Total stock-based compensation |


| At and for the Year Ended December 31, 2009 At and for the Year Ended December 31, 2008 | (Dollars in millions) | Assets | Loans held-for-sale | Loans and leases(1) | Foreclosed properties(2) | Other assets |


| Year Ended December 31, 2015 2014 2013 | Stock-based compensation expense | Advertising expenses | Selling and distribution expenses | Other operating expenses | Selling, general and administrative expenses |


Revenues for this business segment, which includes the mini C-arm business, the digital general radiography business and the conventional general radiography service business, decreased primarily due to a $5.9 million decrease in digital general radiography systems sold worldwide, as a result of our phase out of that business, and a $1.1 million decrease in product sales of our mini C-arm products as discussed above.
The improvements in operating income were primarily due to lower operating expenses as a result of our decision to de-emphasize the digital general radiography systems business, which has been substantially phased out, and to reallocate resources and costs in order to focus on the more profitable and faster growing digital mammography systems.


| A.M. Best Company Standard & Poor's Rating Services Moody's Investors Service Fitch Ratings Ltd. | Claims Paying Ratings | RiverSource Life | IDS Property Casualty Insurance Company | Credit Ratings | Ameriprise Financial, Inc. | Years Ended December 31, | 2014 | (in millions) | Revenues | Distribution fees | Net investment income (loss) | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest and debt expense | General and administrative expense | Total expenses | Operating loss |


| September 30, | 2008 | (In millions) | Warranty liability, beginning of year | Warranties issued | Changes in liability for pre-existing warranties | Settlements made | Warranty liability, end of year |


| Employee Termination Benefits Contract Terminations Total | Balance, December 31, 2016 | Additions | Cash payments | Foreign currency exchange rate changes | Balance, December 31, 2017 |


RELATED PARTY TRANSACTIONS The Company provides property management, leasing, construction and other tenant related services to properties in which certain executives have ownership interests.
The Company has an option to acquire these executive officers’ interests in these properties (the “Option Properties”).
The Company received fees totaling $1.4 million, $1.7 million and $1.9 million in 2002, 2001 and 2000, respectively, for services provided to the Option Properties.
The fees charged by the Company for such services are equivalent to those charged to third-party owners for similar services.
On June 27, 2001, A.  Ray Weeks, Jr.  resigned his position as a director and Vice Chairman of the Company.
On August 17, 2001, the Company redeemed 620,156 limited partnership units beneficially owned by Mr.
Weeks and certain members of his immediate and extended family (the “Weeks Affiliates”).
The deemed value of the units redeemed was $15.7 million, which was based on the average closing stock price of the Company for a certain period of days preceding the redemption date.
As consideration for the redemption, the Weeks Affiliates received a distribution of seven industrial rental properties and one undeveloped tract of land located in the Atlanta, Georgia metropolitan area with a value of $31.7 million.
The Weeks Affiliates also assumed a loan in the amount of $16 million from Wachovia Bank, N. A.  to the Company.
The value of the properties distributed to the Weeks Affiliates was based on negotiations between Mr.
Weeks and members of the Company’s executive committee, and was approved by the unaffiliated members of the Board of Directors.
In 2002, the Company received lease termination fees totaling $7.7 million from a tenant that is a subsidiary of Progress Energy.
William Cavanaugh III is President and Chief Executive Officer of Progress Energy and a member of the Company’s Board of Directors.
The Company’s independent directors approved the transaction and management believes that the amount received approximates a value that would have been charged to tenants with similar lease terms and commitments.
The Company has other related party transactions that are insignificant and terms are considered to be at arm’s-length and equal to those negotiated with independent parties.


The table below presents deferred acquisition costs and future policy benefits payable associated with our long-duration insurance products for the years ended December 31, 2012 and 2011.


| Years Ended December 31, | 2015 | (dollars in millions) | Corporate: | Medium/Large | Small Business | Total Corporate | Public: | Government | Education | Healthcare | Total Public | Other | Total Net sales |


| Currency Translation Adjustments Unrealized Gains and Losses on Certain Investments Unrealized Gains and Losses on Derivative Instruments Defined Benefit Pension Plans & Other Postretirement Benefits Total -1 | Balance at January 1, 2011 | Other comprehensive loss before reclassifications | Amounts reclassified from AOCI | Net current period Other comprehensive loss | Balance at December 31, 2011 | Other comprehensive income/(loss) before reclassifications | Amounts reclassified from AOCI | Net current period Other comprehensive income/(loss) | Balance at December 31, 2012 | Other comprehensive income/(loss) before reclassifications | Amounts reclassified from AOCI | Net current period Other comprehensive income/(loss) | Balance at December 31, 2013 |


| At December 31, | 2008 | (In millions) | Other liability occurrence | Workers’ compensation | Other liability claims made | International | Auto liability | Property | Mortgage guaranty/credit | Reinsurance | Products liability | Medical malpractice | Aircraft | Accident and health | Commercial multiple peril | Fidelity/surety | Other | Total |


| 2013 Period-to-Period Change 2012 Period-to-Period Change 2011 | Labor and related benefits | Transfer and disposal costs | Maintenance and repairs | Subcontractor costs | Cost of goods sold | Fuel | Disposal and franchise fees and taxes | Landfill operating costs | Risk management | Other | $9,112 |