| For the year ended | 12-31-05 | Net income available to common stockholders, as reported | Add: | Deduct: | Pro forma net income available to common stockholders | Earnings per share: | Basic — as reported | Basic — pro forma | Diluted — as reported | Diluted — pro forma | 12-31-05 | Assets: | Real estate, net | Other assets | Total assets | Liabilities and partners’ equity: | Mortgage notes payable and credit facility | Other liabilities | Partners’ equity | Total liabilities and partners’ equity | Total revenue | For the year ended December 31, 2005 | Established | Northeast | Mid-Atlantic | Midwest | Pacific Northwest | Northern California | Southern California | Total Established | Other Stabilized | Development / Redevelopment | Land Held for Future Development | Non-allocated -2 | Total | For the year ended December 31, 2004 | Established | Northeast | Mid-Atlantic | Midwest | Pacific Northwest | Northern California | Southern California | Total Established | Other Stabilized | Development / Redevelopment | Land Held for Future Development | Non-allocated -2 | Total | For the year ended December 31, 2003 | Established | Northeast | Mid-Atlantic | Midwest | Pacific Northwest | Northern California | Southern California | Total Established | Other Stabilized | Development / Redevelopment | Land Held for Future Development | Non-allocated -2 | Total |


| Fiscal 2012 $1,616 | Fiscal 2013 | Fiscal 2014 | Fiscal 2015 | Fiscal 2016 | Thereafter | Total minimum payments | Less-amount representing interest | Total |


| Year ended December 31, | 2018 | (in millions) | Total Individual Annuities-1: | Beginning total account value | Sales | Surrenders and withdrawals | Net sales (withdrawals) | Benefit payments | Net flows | Change in market value, interest credited and other activity | Policy charges | Ending total account value |


Payments cost of net revenues increased $183.9 million, or 18%, in 2009 compared to 2008.
The increase in cost of net revenues was primarily due to the inclusion of costs attributable to Bill Me Later as well as the impact from our growth in net TPV.
Payments cost of net revenues as a percentage of Payments net revenues increased during 2009 compared to 2008 due primarily to the impact of lower take rates and increased investment in our site operations, partially offset by a more favorable geographic and payment processor mix.
Communications On November 19, 2009, we completed the sale of Skype to an investor group.
Accordingly, Skypes cost of net revenue is not consolidated in our 2010 results.
Communications cost of net revenues increased $6.7 million or 2%, in 2009 compared to 2008.
The increase in cost of net revenues was due to an increase in SkypeOut minutes.
Communications cost of net revenues as a percentage of Communications net revenues decreased in 2009 compared to 2008 due primarily to higher volume and changes in product mix.


The company saw an increase in revenue in 2023.
Table 0
ices that we believe are enforceable and legally binding and that specify all significant terms, including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction.
Purchase obligations exclude agreements that are cancellable at any time without penalty.
We have excluded from the contractual obligations and commercial commitments table above $55.2 billion in cash margin deposits and guaranty fund liabilities.
Clearing members of our clearing houses are required to deposit original margin and variation margin and to make deposits to a guaranty fund.
The cash deposits made to these margin accounts and to the guaranty fund are recorded in the consolidated balance sheet as current assets with corresponding current liabilities to the clearing members that deposited them.
See note 12 to our consolidated financial statements and related notes that are included elsewhere in this Annual Report for additional information on our clearing houses and the margin deposits and guaranty funds liabilities.
We have also excluded unrecognized tax benefits, or UTBs, from the contractual obligations and commercial commitments table above.
As of December 31, 2016, our cumulative UTBs were $112 million.
Interest and penalties related to UTBs were $35 million as of December 31, 2016.
We are under examination by various tax authorities.
We are unable to make a reasonable estimate of the periods of cash settlement because it is not possible to reasonably predict, the amount of tax, interest and penalties, if any, that might be assessed by a tax authority or the timing of an assessment or payment.
It is also not possible to reasonably predict whether or not the applicable statutes of limitations might expire without us being examined by any particular tax authority.
See note 11 to our consolidated financial statements and related notes that are included elsewhere in this Annual Report for additional information on our UTBs.
Table of Contents VALERO ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Commodity Price Risk We are exposed to market risks related to the volatility in the price of crude oil, refined products (primarily gasoline and distillate), grain (primarily corn), and natural gas used in our operations.
To reduce the impact of price volatility on our results of operations and cash flows, we use commodity derivative instruments, including futures, swaps, and options.
We use the futures markets for the available liquidity, which provides greater flexibility in transacting our hedging and trading operations.
We use swaps primarily to manage our price exposure.
Our positions in commodity derivative instruments are monitored and managed on a daily basis by a risk control group to ensure compliance with our stated risk management policy that has been approved by our board of directors.
For risk management purposes, we use fair value hedges, cash flow hedges, and economic hedges.
In addition to the use of derivative instruments to manage commodity price risk, we also enter into certain commodity derivative instruments for trading purposes.
Our objective for entering into each type of hedge or trading derivative is described below.
Fair Value Hedges Fair value hedges are used to hedge price volatility in certain refining inventories and firm commitments to purchase inventories.
The level of activity for our fair value hedges is based on the level of our operating inventories, and generally represents the amount by which our inventories differ from our previous year-end LIFO inventory levels.
As of December 31, 2011, we had the following outstanding commodity derivative instruments that were entered into to hedge crude oil and refined product inventories and commodity derivative instruments related to the physical purchase of crude oil and refined products at a fixed price.
The information presents the notional volume of outstanding contracts by type of instrument and year of maturity (volumes in thousands of barrels).


| Qualified Defined Benefit Pension Plans Retiree Medical and Life Insurance Plans | 2014 | Discount rate | Expected long-term rate of return on assets | Rate of increase in future compensation levels | Health care trend rate assumed for next year | Ultimate health care trend rate | Year that the ultimate health care trend rate is reached |


| Expected to mature before December 31, | December 31, 2014 | ($ millions, except percentages) | Fixed rate debt | Principal ($) | Fixed rate payable | Floating rate debt | Principal ($) | Variable rate payable(ii) |


| (Dollars in millions) 2009 2008 2007 2006 2005 | Allowance for loan and lease losses, January 1 | Loans and leases charged off | Residential mortgage | Home equity | Discontinued real estate | Credit card – domestic | Credit card – foreign | Direct/Indirect consumer | Other consumer | Total consumer charge-offs | Commercial – domestic-1 | Commercial real estate | Commercial lease financing | Commercial – foreign | Total commercial charge-offs | Total loans and leases charged off | Recoveries of loans and leases previously charged off | Residential mortgage | Home equity | Discontinued real estate | Credit card – domestic | Credit card – foreign | Direct/Indirect consumer | Other consumer | Total consumer recoveries | Commercial – domestic-2 | Commercial real estate | Commercial lease financing | Commercial – foreign | Total commercial recoveries | Total recoveries of loans and leases previously charged off | Net charge-offs | Provision for loan and lease losses | Write-downs on consumer purchased impaired loans-3 | Other-4 | Allowance for loan and lease losses, December 31 | Reserve for unfunded lending commitments, January 1 | Provision for unfunded lending commitments | Other-5 | Reserve for unfunded lending commitments, December 31 | Allowance for credit losses, December 31 | Loans and leases outstanding at December 31-6 | Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31-3, 6 | Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at December 31-3 | Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at December 31-3 | Average loans and leases outstanding-3, 6 | Net charge-offs as a percentage of average loans and leases outstanding-3, 6 | Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31-3, 6 | Ratio of the allowance for loan and lease losses at December 31 to net charge-offs-3 |


| 2018 period Total shares purchased (a) Average price paid per share Total shares purchased as part of publicly announced programs (b) Maximum number of shares that may yet be purchased under the programs (b) | October 1 – 31 | November 1 – 30 | December 1 – 31 | Total |


Our pre-tax income was $865.0 million, $159.3 million and $468.1 million for the years ended December 31, 2009, 2008 and 2007, respectively.
Our net income attributable to Republic Services, Inc.  was $495.0 million for the year ended December 31, 2009, or $1.30 per diluted share, compared to $73.8 million, or $0.37 per diluted share in 2008 and $290.2 million, or $1.51 per diluted share, in 2007.
During each of the two years ended December 31, 2009 and 2008, we recorded a number of gains, charges (recoveries) and other expenses that impacted our pre-tax income, net income attributable to Republic Services, Inc.  (Net Income - Republic) and diluted earnings per share.
These items primarily consist of the following (in millions, except per share data):


GOODWILL We evaluate goodwill for potential impairment annually and at an interim date if indicators of impairment exist.
When using the quantitative process to evaluate goodwill for potential impairment, consistent with our early adoption of ASU No.2017-04 in January 2017, we compare the estimated fair value of the reporting unit to the carrying value.
When determining the estimated fair value, we utilize discounted future cash flow models, as well as market conditions relative to the operations of our reporting units.
Under the discounted cash flow approach, we utilize various assumptions that require judgment, including projections of revenues and expenses based on estimated long-term growth rates, and discount rates based on weighted average cost of capital.
Our estimates of long-term growth and costs are based on historical data, as well as various internal projections and external sources.
The weighted average cost of capital is estimated based on each reporting units cost of debt and equity and a selected capital structure.
The selected capital structure for each reporting unit is based on consideration of capital structures of comparable publicly traded companies operating in the business of that reporting unit.
We had $5,190 million of goodwill as of December 31, 2017.
Changes in the estimates and assumptions used in our goodwill impairment testing could result in future impairment losses, which could be material.
Additionally, when a portion of a reporting unit is disposed, goodwill is allocated to the gain or loss on disposition based on the relative fair values of the business or businesses disposed and the portion of the reporting unit that will be retained.
When determining fair value of the businesses disposed of and the reporting unit to be retained, we use estimates and assumptions similar to those used in our impairment analysis.


NOTE 7 Representations and Warranties Obligations and Corporate Guarantees Background The Corporation securitizes first-lien residential mortgage loans generally in the form of RMBS guaranteed by the GSEs or by GNMA in the case of FHA-insured, VA-guaranteed and Rural Housing Service-guaranteed mortgage loans, and sells pools of first-lien residential mortgage loans in the form of whole loans.
In addition, in prior years, legacy companies and certain subsidiaries sold pools of first-lien residential mortgage loans and home equity loans as private-label securitizations or in the form of whole loans.
In connection with these transactions, the Corporation or certain of its subsidiaries or legacy companies made various representations and warranties.
Breaches of these representations and warranties have resulted in and may continue to result in the requirement to repurchase mortgage loans or to otherwise make whole or provide other remedies to investors, securitization trusts, guarantors, insurers or other parties (collectively, repurchases).
Settlement Actions The Corporation has vigorously contested any request for repurchase where it has concluded that a valid basis for repurchase does not exist and will continue to do so in the future.
However, in an effort to resolve legacy mortgage-related issues, the Corporation has reached bulk settlements, certain of which have been for significant amounts, in lieu of a loan-by-loan review process, including settlements with the GSEs, four monoline insurers and Bank of New York Mellon (BNY Mellon), as trustee for certain securitization trusts.
These bulk settlements generally did not cover all transactions with the relevant counterparties or all potential claims that may arise, including in some instances securities law, fraud, indemnification and servicing claims, which may be addressed separately.
The Corporations liability in connection with the transactions and claims not covered by these settlements could be material to the Corporations results of operations or liquidity for any particular reporting period.
The Corporation may reach other settlements in the future if opportunities arise on terms it believes to be advantageous.
However, there can be no assurance that the Corporation will reach future settlements or, if it does, that the terms of past settlements can be relied upon to predict the terms of future settlements.
Unresolved Repurchase Claims Unresolved representations and warranties repurchase claims represent the notional amount of repurchase claims made by counterparties, typically the outstanding principal balance or the unpaid principal balance at the time of default.
In the case of firstlien mortgages, the claim amount is often significantly greater than the expected loss amount due to the benefit of collateral and, in some cases, mortgage insurance (MI) or mortgage guarantee payments.
Claims received from a counterparty remain outstanding until the underlying loan is repurchased, the claim is rescinded by the counterparty, the Corporation determines that the applicable statute of limitations has expired, or representations and warranties claims with respect to the applicable trust are settled, and fully and finally released.
The Corporation does not include duplicate claims in the amounts disclosed.
The table below presents unresolved repurchase claims at December 31, 2016 and 2015.
The unresolved repurchase claims include only claims where the Corporation believes that the counterparty has the contractual right to submit claims.
The unresolved repurchase claims predominantly relate to subprime and pay option first-lien loans and home equity loans.
For additional information, see Private-label Securitizations and Whole-loan Sales Experience in this Note and Note 12  Commitments and Contingencies.


| Increase/(Decrease)in Fair Market Value | As of December 31, | 2015 | 2014 |


Revenue Operating Revenues UE, CIPS, Genco, CILCO and IP record operating revenue for electric or gas service when it is delivered to customers.
We accrue an estimate of electric and gas revenues for service rendered but unbilled at the end of each accounting period.
Trading Activities We present the revenues and costs associated with certain energy derivative contracts designated as trading on a net basis in Operating Revenues  Electric and Other.
Nuclear Fuel and Purchased Gas Costs UEs cost of nuclear fuel is amortized to fuel expense on a unit-of-production basis.
Spent fuel disposal cost is based on net kilowatthours generated and sold, and that cost is charged to expense.
In UEs, CIPS, CILCOs, and IPs retail natural gas utility jurisdictions, changes in gas costs are generally reflected in billings to their natural gas utility customers through PGA clauses.
The difference between actual natural gas costs and costs billed to customers in a given period are deferred and included in Other Current Assets or Other Current Liabilities in the balance sheets of UE, CIPS, CILCO and IP.
The deferred amounts are either billed or refunded to their natural gas utility customers prospectively in a subsequent period.
Accounting for MISO Transactions MISO-related purchase and sale transactions are recorded by Ameren, UE, CIPS, CILCO and IP using settlement information provided by MISO.
These purchase and sale transactions are accounted for on a net hourly position.
We record net purchases in a single hour in Operating Expenses  Purchased Power and net sales in a single hour in Operating Revenues  Electric in our statements of income.
On occasion, prior period transactions will be resettled outside the routine settlement process due to a change in MISOs tariff or a material interpretation thereof.
In these cases, Ameren, UE, CIPS, CILCO and IP recognize expenses associated with resettlements once the resettlement is probable and the resettlement amount can be estimated.
Ameren, UE, CIPS, CILCO and IP recognize revenues associated with resettlements in accordance with SEC Staff Accounting Bulletin No.101, Revenue Recognition in Financial Statements.
 Stock-based Compensation In accounting for stock-based compensation, Ameren measures the cost of employee services received in exchange for an award of equity instruments by the grantdate fair value of the award over the requisite service period.
See Note 12  Stock-based Compensation for further information.
Excise Taxes Excise taxes imposed on us are reflected on Missouri electric, Missouri gas, and Illinois gas customer bills.
They are recorded gross in Operating Revenues and Operating Expenses  Taxes Other Than Income Taxes on the statement of income.
Excise taxes reflected on Illinois electric customer bills are imposed on the consumer and are therefore not included in revenues and expenses.
They are recorded as tax collections payable and included in Operating Expenses  Taxes Accrued.
The following table presents excise taxes recorded in Operating Revenues and Operating Expenses  Taxes Other than Income Taxes for the years ended 2008, 2007 and 2006:


| December 31, | In millions of dollars | Corporate non-accrual loans-1(2) | North America | EMEA | Latin America | Asia | Total corporate non-accrual loans | Consumer non-accrual loans-1(3) | North America | Latin America | Asia-4 | Total consumer non-accrual loans | Total non-accrual loans |


(1) Includes allowance for small business commercial – domestic loans of $1.4 billion and $578 million at December 31, 2007 and 2006.
The allowance for small business commercial – domestic loans was not material in 2005, 2004 and 2003.
(2) Includes allowance for loan and lease losses for impaired commercial loans of $123 million, $43 million, $55 million, $202 million, and $391 million at December 31, 2007, 2006, 2005, 2004, and 2003, respectively.


| (in millions) 12/31/2012 Net New Business Adjustments -1 Acquisitions-2 Market / FX 12/31/2013 | Equity: | Active | iShares | Fixed income: | Active | iShares | Multi-asset class | Alternatives: | Core | Currency and commodities | Subtotal | Non-ETF Index: | Equity | Fixed income | Subtotal non-ETF index | Long-term | Cash management | Advisory | Total AUM |


Banno, LLC Effective March 1, 2014, the Company acquired all of the equity interests of Banno, an Iowa-based company that provides Web and transaction marketing services with a focus on the mobile medium, for $27,910 paid in cash.
This acquisition was funded using existing operating cash.
The acquisition of Banno expanded the Company’s presence in online and mobile technologies within the industry.
During fiscal year 2014, the Company incurred $30 in costs related to the acquisition of Banno.
These costs included fees for legal, valuation and other fees.
These costs were included within general and administrative expenses.
The results of Banno's operations included in the Company's consolidated statements of income for the year ended June 30, 2016 included revenue of $6,393 and after-tax net loss of $1,289.
For the year ended June 30, 2015, our consolidated statements of income included revenue of $4,175 and after-tax net loss of $1,784 attributable to Banno.
The results of Banno’s operations included in the Company’s consolidated statement of operations from the acquisition date to June 30, 2014 included revenue of $848 and after-tax net loss of $1,121.
The accompanying consolidated statements of income for the twelve month period ended June 30, 2016 do not include any revenues and expenses related to this acquisition prior to the acquisition date.
The impact of this acquisition was considered immaterial to both the current and prior periods of our consolidated financial statements and pro forma financial information has not been provided.


Standard of Care Developments The SEC, federal and state lawmakers and state insurance regulators continue their efforts at evaluating what is an appropriate regulatory framework around a standard of care for the sale of investment products and services.
For example, on April 18, 2018, the SEC proposed a package of rulemakings and interpretations designed to address the standard of care issues and the transparency of retail investors relationships with investment advisors and broker-dealers.
Additionally, on July 18, 2018, the New York State Department of Financial Services adopted a best interest standard of care regulation applicable to annuity and life transactions through issuance of the First Amendment to Insurance Regulation 187  Suitability and Best Interests in Life Insurance and Annuity Transactions (Regulation 187).
The compliance date for Regulation 187 is August 1, 2019 for annuity products and February 1, 2020 for life products.
As amended, Regulation 187 requires producers to act in their clients best interest when making point-of-sale and inforce recommendations, and provide in writing the basis for the recommendation, as well as the facts and analysis to support the recommendation.
The amended regulation also imposes additional duties on life insurance companies in relation to these transactions, such as requiring insurers to establish and maintain procedures designed to prevent financial exploitation and abuse.
We will implement and enhance processes and procedures, where needed, to comply with this regulation.
Other states, such as Nevada, Maryland and New Jersey, have also proposed similar standard of care regulations applicable to insurance producers and/or insurance companies.
We continue to closely follow these proposals and other relevant federal and state-level regulatory and legislative developments in this area.
While we cannot predict the long-term impact of these developments on our Life and Retirement businesses, we believe our diverse product offerings and distribution relationships position us to compete effectively in this evolving marketplace.


| Common Stock MarketPrice | High | Year Ended December 31, 2016 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Year Ended December 31, 2017 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter |


Plan Assets The investment objectives for the Company's pension plans are to earn, over a moving twenty-year period, a long-term expected rate of return, net of investment fees and transaction costs, sufficient to satisfy the benefit obligations of the plan, while at the same time maintaining adequate liquidity to pay benefit obligations and proper expenses, and meet any other cash needs, in the short- to medium-term.
The weighted average target asset allocations for the Company's pension plans in 2013 are as follows:


| December 31, 2017-1 | Fair Value | Level 1 | (in millions) | Assets: | Fixed maturities, held-to-maturity-3 | Assets supporting experience-rated contractholder liabilities-4 | Commercial mortgage and other loans | Policy loans | Short-term investments | Cash and cash equivalents | Accrued investment income | Other assets | Total assets | Liabilities: | Policyholders’ account balances—investment contracts | Securities sold under agreements to repurchase | Cash collateral for loaned securities | Short-term debt | Long-term debt-5 | Notes issued by consolidated VIEs | Other liabilities | Separate account liabilities—investment contracts | Total liabilities |


| For the years ended December 31, | 2017 | Liability for unpaid losses and loss adjustment expenses, at undiscounted amounts | Less: amount of discount | Carrying value of liability for unpaid losses and loss adjustment expenses | Weighted average discount rate | Range of discount rate |


| December 31, | 2010 | Estimated | Fair | Value | (In millions) | By collateral type: | Credit card loans | Student loans | RMBS backed bysub-primemortgage loans | Automobile loans | Other loans | Total | Portion rated Aaa/AAA | Portion rated NAIC 1 |


NOTE 17 CAPITAL STOCK The authorized capital stock at both December 31, 2018 and 2017, consisted of 990,850,000 shares of common stock, $1 par value; 400,000 shares of cumulative $4 preferred stock, without par value (stated value $100 per share); and 8,750,000 shares of serial preferred stock, $1 par value.
The serial preferred stock is issuable in one or more series by the Board of Directors without further shareholder action.
The following is a rollforward of shares of common stock for the three years ended December 31, 2018, 2017 and 2016:


(a) Represents the net fair value of assets and liabilities.2011 VERSUS 2010 CONSOLIDATED INCOME STATEMENT REVIEW Summary Results Net income for 2011 was $3.1 billion, or $5.64 per diluted common share, compared with $3.4 billion, or $5.74 per diluted common share, for 2010.
The decrease from 2010 was primarily due to an $850 million, or 6%, reduction in total revenue, a $492 million, or 6%, increase in noninterest expense and the impact of the $328 million after-tax gain on the sale of GIS recognized in 2010, partially offset by a $1.3 billion, or 54%, decrease in the provision for credit losses in 2011.
In addition, 2010 net income attributable to common shareholders was also impacted by a noncash reduction of $250 million in connection with the redemption of TARP preferred stock.
Net Interest Income Net interest income was $8.7 billion for 2011 down from $9.2 billion in 2010.
The net interest margin decreased to 3.92% in 2011 compared with 4.14% for 2010, primarily due to the impact of lower purchase accounting accretion, a decline in the rate on average loan balances and the low interest rate environment partially offset by lower funding costs.
Noninterest Income Noninterest income was $5.6 billion for 2011 and $5.9 billion for 2010.
Noninterest income for 2011 reflected higher asset management fees and other income, higher residential mortgage banking revenue, and lower net other-thantemporary impairments (OTTI), that were offset by a decrease in corporate service fees primarily due to a reduction in the value of commercial mortgage servicing rights, lower service charges on deposits from the impact of Regulation E rules pertaining to overdraft fees, a decrease in net gains on sales of securities and lower consumer services fees due, in part, to a decline in interchange fees on individual debit card transactions in the fourth quarter partially offset by higher transaction volumes throughout 2011.
Asset management revenue, including BlackRock, increased $34 million to $1.1 billion in 2011 compared to 2010.
The increase was driven by strong sales performance by our Asset Management Group and somewhat higher equity earnings from our BlackRock investment.
Discretionary assets under management at December 31, 2011 totaled $107 billion compared with $108 billion at December 31, 2010.


| Con Edison CECONY | (Millions of Dollars) | Remediation costs incurred | Insurance recoveries received* |


The ongoing assessment of the valuation of inventory, given the large number of natural ingredients employed, the quality of which may be diminished over time.
We hold a majority of our inventory as raw materials, providing the greatest degree of flexibility in manufacture and use.
As of December 31, 2018, we maintained 53% of our inventory as raw materials.
Materials are evaluated based on shelf life, known uses and anticipated demand based on forecasted customer order activity and changes in product/sales mix.
Management policy provides for an ongoing assessment of inventory with adjustments recorded when an item is deemed to be slow moving or obsolete.


| In millions of dollars 2008 2007 | Year-end CVA reserve balance as calculated using | CDS spreads | Cash spreads | Difference-1 | Year-to-date pretax gain from the change in CVA | reserve that would have been recorded in the | income statement as calculated using | CDS spreads | Cash spreads |


| Year Ended December 31, | 2016 | United States dollar | British pound sterling | euro | Australian dollar | Canadian dollar | Indian rupee | Japanese yen | Chinese yuan | Singapore dollar | Swiss franc | Hong Kong dollar | Mexican peso | Brazilian real | Polish zloty | Danish krone | Swedish krona | Thai baht | Other currencies | Total revenue |


| Interest Expense Net Income (a) | Ameren(b) | UE | CIPS | Genco | CILCORP | CILCO | IP(c) |


| Gold Ounces Sold Costs Applicable to Sales-1 Depreciation, Depletion and Amortization | 2007 | (in thousands) | Kori Kollo-2(88% owned) | La Herradura (44% owned) | Golden Giant | Total/Weighted-Average |


| Weighted Average Assumptions 2009 2010 2011 | Expected volatility | Risk-free interest rate | Expected dividend yield | Expected life |


ITEM 3.
LEGAL PROCEEDINGS Con Edison Northeast Utilities For information about legal proceedings relating to Con Edison’s October 1999 agreement to acquire Northeast Utilities, see Note H to the financial statements in Item 8 (which information is incorporated herein by reference).
Lease in/Lease Out Transactions For information about Con Edison’s appeal of a proposed disallowance by the Internal Revenue Service of certain tax losses recognized in connection with the company’s lease in/ lease out transactions, see Note K to the financial statements in Item 8 (which information is incorporated herein by reference).
Con Edison of New York Asbestos For information about legal proceedings relating to exposure to asbestos, see Note G to the financial statements in Item 8 (which information is incorporated herein by reference).
Superfund The Federal Comprehensive Environmental Response, Compensation and Liability Act of 1980 and similar state statutes (Superfund) impose joint and several liability, regardless of fault, upon generators of hazardous substances for investigation, remediation costs and environmental damages.
The sites at which Con Edison of New York has been asserted to have liability under Superfund include its and its predecessor companies’ former manufactured gas sites, its Astoria PCB storage facility, the Arthur Kill Generating Station site and other Superfund sites discussed below.
There may be additional sites as to which assertions will be made that the company has


| Base Electric Utility Short-Term Wholesale Commodity Trading Consolidated Totals | (Millions of Dollars) | 2007 | Electric utility revenues (excluding commodity trading) | Electric fuel and purchased power-utility | Commodity trading revenues | Commodity trading expenses | Gross margin before operating expenses | Margin as a percentage of revenues | 2006 | Electric utility revenues (excluding commodity trading) | Electric fuel and purchased power-utility | Commodity trading revenues | Commodity trading expenses | Gross margin before operating expenses | Margin as a percentage of revenues | 2005 | Electric utility revenues (excluding commodity trading) | Electric fuel and purchased power-utility | Commodity trading revenues | Commodity trading expenses | Gross margin before operating expenses | Margin as a percentage of revenues |


| 2016 2015 2014 | Subtotals of Amounts Above by Line Item in the Consolidated Statements of Operations: | Cost of sales | Selling, general and administrative expenses | Transaction costs | Other operating—net | Gain on sale of phosphate business | Equity in (losses) earnings of operating affiliates | Interest expense | Loss on debt extinguishment | Equity in earnings of non-operating affiliates—net of taxes | Net earnings attributable to noncontrolling interests | Total Impact of Significant Items |


Brazilian Papers net sales for 2012 were $1.1 billion compared with $1.2 billion in 2011 and $1.1 billion in 2010.
Operating profits for 2012 were $163 million compared with $169 million in 2011 and $159 million in 2010.
Sales volumes in 2012 were higher than in 2011 as International Paper improved its segment position in the Brazilian market despite weaker year-over-year conditions in most markets.
Average sales price realizations improved for domestic uncoated freesheet paper, but the benefit was more than offset by declining prices for exported paper.
Margins were favorably affected by an increased proportion of sales to the highermargin domestic market.
Raw material costs increased for wood and chemicals, but costs for purchased pulp decreased.
Operating costs and planned maintenance downtime costs were lower than in 2011.
Looking ahead to 2013, sales volumes in the first quarter are expected to be lower than in the fourth quarter of 2012 due to seasonally weaker customer demand for uncoated freesheet paper.
Average sales price realizations are expected to increase in the Brazilian domestic market due to the realization of an announced sales price increase for uncoated freesheet paper, but the benefit should be partially offset by pricing pressures in export markets.
Average sales margins are expected to be negatively impacted by a less favorable geographic mix.
Input costs are expected to be about flat due to lower energy costs being offset by higher costs for wood, purchased pulp, chemicals and utilities.
Planned maintenance outage costs should be $4 million lower with no outages scheduled in the first quarter.
Operating costs should be favorably impacted by the savings generated by the start-up of a new biomass boiler at the Mogi Guacu mill.


TRANSFORMATION PLAN In July 2005, the Company had announced a plan to focus its business portfolio on two key global platform businesses: Uncoated Papers (including Distribution) and Packaging.
The Plans other elements include exploring strategic options for other businesses, including possible sale or spin-off, returning value to shareholders, strengthening the balance sheet, selective reinvestment to strengthen the paper


| Years Ended | September 30, 2006 | Amount | Total Revenues | Operating Income |


| Net Sales Orders -1 Fiscal Year Ended September 30, | Net Homes Sold | 2011 | East | Midwest | Southeast | South Central | Southwest | West | 17,421 |


| Year Ended October 31, $ Change % Change $ Change % Change | 2013 | (dollars in millions) | Interest income | Interest expense | Gain (loss) on assets related to executive deferred compensation plan | Foreign currency exchange gain (loss) | Other, net | Total | Fiscal Year | (in thousands) | 2013 | 2012 | 2011 |


three-year period determined by reference to the ownership of persons holding five percent (5%) or more of that company’s equity securities.
If a company undergoes an ownership change as defined by I. R. C.  Section 382, the company’s ability to utilize its pre-change NOL carryforwards to offset post-change income may be limited.
The Company believes that the limitation imposed by I. R. C.  Section 382 generally should not preclude use of its federal NOL carryforwards, assuming the Company has sufficient taxable income in future carryforward periods to utilize those NOL carryforwards.
The Company’s federal NOL carryforwards do not begin expiring until 2028.
At December 31, 2014 and 2013, the Company had state NOLs of $542,705 and $628,049, respectively, a portion of which are offset by a valuation allowance because the Company does not believe these NOLs are more likely than not to be realized.
The state NOL carryforwards will expire between 2015 and 2033.
At December 31, 2014 and 2013, the Company had Canadian NOL carryforwards of $6,498 and $6,323, respectively.
The majority of these carryforwards are offset by a valuation allowance because the Company does not believe these NOLs are more likely than not to be realized.
The Canadian NOL carryforwards will expire between 2015 and 2033.
The Company had capital loss carryforwards for federal income tax purposes of $3,844 at December 31, 2014 and 2013.
The Company has recognized a full valuation allowance for the capital loss carryforwards because the Company does not believe these losses are more likely than not to be recovered.
The Company files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions.
With few exceptions, the Company is no longer subject to U. S.  federal, state or local or non-U.
S.  income tax examinations by tax authorities for years before 2008.
For U. S.  federal, tax year 2011 is also closed.
The Company has state income tax examinations in progress and does not expect material adjustments to result.
The Patient Protection and Affordable Care Act (the “PPACA”) became law on March 23, 2010, and the Health Care and Education Reconciliation Act of 2010 became law on March 30, 2010, which makes various amendments to certain aspects of the PPACA (together, the “Acts”).
The PPACA effectively changes the tax treatment of federal subsidies paid to sponsors of retiree health benefit plans that provide a benefit that is at least actuarially equivalent to the benefits under Medicare Part D.  The Acts effectively make the subsidy payments taxable in tax years beginning after December 31, 2012 and as a result, the Company followed its original accounting for the underfunded status of the other postretirement benefits for the Medicare Part D adjustment and recorded a reduction in deferred tax assets and an increase in its regulatory assets amounting to $6,348 and $6,241 at December 31, 2014 and 2013, respectively.
The following table summarizes the changes in the Company’s gross liability, excluding interest and penalties, for unrecognized tax benefits:


| Industry Corporate Lending Exposure  (dollars in millions) | Energy | Utilities | Healthcare | Consumer discretionary | Industrials | Funds, exchanges and other financial services-1 | Consumer staples | Information technology | Telecommunications services | Materials | Real Estate | Other | Total |


| December 31, | Balance Sheet Data | Cash, cash equivalents and marketable securities | Short-term borrowings | Current portion of long-term debt | Long-term debt | Total debt |


| Fiscal Years Ended March 31, | 2016 | (in $000's) | Impella product revenue | Service and other revenue | Other products | Total product revenue | Funded research and development | Total revenue |


| Restaurants at December 31, 2017 2016 2015 | Conventional franchised | Developmental licensed | Foreign affiliated | Franchised | Company-operated | Systemwide restaurants |


A summary of the Companys warranty accrual activity is presented below (in thousands):


| Years Ended | September 29, 2007 | Amount | Service and Other Revenue |


| Shares Weighted-AverageGrant DateFair Value | Unvested restricted shares outstanding at December 31, 2012 | Granted | Forfeited | Vested | Unvested restricted shares outstanding at December 31, 2013 | Granted | Forfeited | Vested | Unvested restricted shares outstanding at December 31, 2014 | Granted | Forfeited | Vested | Unvested restricted shares outstanding at December 31, 2015 |


| 2014 2013 2012 | Balance at beginning of year | Additions charged to expense | Accounts written-off | Balance at end of year |


| Global Banking Total Corporation | (Dollars in millions) | Products | Advisory | Debt issuance | Equity issuance | Gross investment banking fees | Self-led deals | Total investment banking fees |


THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements Unrecognized Tax Benefits The firm recognizes tax positions in the financial statements only when it is more likely than not that the position will be sustained on examination by the relevant taxing authority based on the technical merits of the position.
A position that meets this standard is measured at the largest amount of benefit that will more likely than not be realized on settlement.
A liability is established for differences between positions taken in a tax return and amounts recognized in the financial statements.
The accrued liability for interest expense related to income tax matters and income tax penalties was $101 million as of both December 2015 and December 2014.
The firm recognized interest expense and income tax penalties of $17 million, $45 million and $53 million for 2015, 2014 and 2013, respectively.
It is reasonably possible that unrecognized tax benefits could change significantly during the twelve months subsequent to December 2015 due to potential audit settlements.
However, at this time it is not possible to estimate any potential change.
The table below presents the changes in the liability for unrecognized tax benefits.
This liability is included in “Other liabilities and accrued expenses.
” See Note 17 for further information.


| Cash Instruments at Fair Value as of December 2015 | $ in millions | Assets | Commercial paper, certificates of deposit, time deposits and other money market instruments | U.S. government and federal agency obligations | Non-U.S. government and agency obligations | Loans and securities backed by commercial real estate | Loans and securities backed by residential real estate | Bank loans and bridge loans | Corporate debt securities | State and municipal obligations | Other debt obligations | Equities and convertible debentures | Commodities | Subtotal | Investments in funds measured at NAV | Total cash instrument assets | Liabilities | U.S. government and federal agency obligations | Non-U.S. government and agency obligations | Loans and securities backed by commercial real estate | Loans and securities backed by residential real estate | Bank loans and bridge loans | Corporate debt securities | State and municipal obligations | Other debt obligations | Equities and convertible debentures | Total cash instrument liabilities |


| 2016 2015 2014 | Life Sciences | Diagnostics | Dental | Environmental & Applied Solutions | Stock issued for LTIP | LTIP three-year plan | Number of shares issued | Share value on date of issuance | Total value |


| December 31, 2012 Range Weighted-average (b) | Long-term prepayment rate (annual CPR) | Prime | Alt-A | Option ARM | Remaining collateral expected to default | Prime | Alt-A | Option ARM | Loss severity | Prime | Alt-A | Option ARM |


| Contractual amount Carrying value(g) | 2013 | By remaining maturity at December 31,(in millions) | Lending-related | Consumer, excluding credit card: | Home equity – senior lien | Home equity – junior lien | Prime mortgage | Subprime mortgage | Auto | Business banking | Student and other | Total consumer, excluding credit card | Credit card | Total consumer | Wholesale: | Other unfunded commitments to extend credit(a)(b) | Standby letters of credit and other financial guarantees(a)(b)(c) | Unused advised lines of credit | Other letters of credit(a) | Total wholesale | Total lending-related | Other guarantees and commitments | Securities lending indemnification agreements and guarantees(d) | Derivatives qualifying as guarantees | Unsettled reverse repurchase and securities borrowing agreements(e) | Loan sale and securitization-related indemnifications: | Mortgage repurchase liability | Loans sold with recourse | Other guarantees and commitments(f) |


debt issuances, and proceeds from the disposition of properties, if any.
Redevelopment Pipeline The Company defines redevelopment activities as existing properties owned or recently acquired, which have been targeted for additional investment by the Company with the expectation of increased financial returns through property improvement.
The Company’s redevelopment strategy strives to improve the financial and physical aspects of the Company’s redevelopment apartment communities and to target a 10 percent return on the incremental renovation investment.
Many of the Company’s properties are older and in excellent neighborhoods, providing lower density with large floor plans that represent attractive redevelopment opportunities.
During redevelopment, apartment units may not be available for rent and, as a result, may have less than stabilized operations.
As of December 31, 2007, the Company had thirteen major redevelopment communities aggregating 3,891 apartment units with estimated redevelopment costs of $135.6 million, of which approximately $74.6 million remains to be expended.
These amounts exclude redevelopment projects owned by Fund II.
Alternative Capital Sources Fund II has eight institutional investors, and the Company, with combined partner equity commitments of $265.9 million.
Essex has committed $75.0 million to Fund II, which represents a 28.2% interest as general partner and limited partner.
Fund II utilized debt as leverage equal to approximately 65% of the estimated value of the underlying real estate.
Fund II invested in apartment communities in the Company’s targeted West Coast markets and, as of December 31, 2007, owned eleven apartment communities and three development projects.
Essex records revenue for its asset management, property management, development and redevelopment services when earned, and promote income when realized if Fund II exceeds certain financial return benchmarks.
Contractual Obligations and Commercial Commitments The following table summarizes the maturation or due dates of our contractual obligations and other commitments at December 31, 2007, and the effect such obligations could have on our liquidity and cash flow in future periods:


Investment Servicing Total revenue for 2011 increased 3% from 2010 and total fee revenue increased 11% in the same comparison.
The increase in total fee revenue generally related to servicing fees, securities finance and trading services revenue, and was partly offset by a decline in processing fees and other revenue.
The increase in servicing fees in 2011 compared to 2010 primarily resulted from the impact on currentperiod revenue of new business awarded to us and installed during 2011 and prior periods, the full-year impact of revenue generated by the acquired Intesa securities services and MIFA businesses and increases in daily average equity market valuations.
Securities finance revenue increased 26% primarily as a result of the effect of higher spreads, partly offset by a decline in average lending volumes.
Trading services revenue increased 10% compared to 2010, as a result of an increase in foreign exchange trading revenue related to higher client trading volumes, partly offset by a decline in currency volatility.
Servicing fees, trading services revenue and gains (losses) related to investment securities, net, for our Investment Servicing business line are identical to the respective consolidated results.
Refer to Servicing Fees, Trading Services and Gains (Losses) Related to Investment Securities, Net under Total Revenue in this Managements Discussion and Analysis for a more in-depth discussion.
A discussion of processing fees and other revenue is provided in Processing Fees and Other under Total Revenue.
 Net interest revenue declined 15% compared to 2010, primarily as a result of lower conduit-related discount accretion.
The level of accretion recorded in 2011 was significantly affected by our December 2010 investment portfolio repositioning.
A portion of net interest revenue is allocated to the Investment Management business line based on the volume of client liabilities attributable to that line of business.


| As of February 29 or 28 | (In millions) | Warehouse facilities | Term securitizations | Other receivables-1 | Total ending managed receivables | Accrued interest and fees | Other | Less allowance for loan losses | Auto loan receivables, net |


| 30 September 2017 2016 | Current assets | Noncurrent assets | Current liabilities | Noncurrent liabilities | Year Ended 30 September | Net sales | Sales less cost of sales | Operating income | Net income | Number of Shares | Options outstanding at September 26, 2009 | Granted | Cancelled/forfeited | Exercised | Options outstanding at September 25, 2010 | Options exercisable at September 25, 2010 | Options vested and expected to vest at September 25, 2010 -1 | Three Months Ended | Dec 31, 2015 | (In thousands, except per share data) | (unaudited) | Revenues | Commissions | Information and post-trade services | Technology products and services | Investment income | Other | Total revenues | Expenses | Employee compensation and benefits | Depreciation and amortization | Technology and communications | Professional and consulting fees | Occupancy | Marketing and advertising | General and administrative | Total expenses | Income before income taxes | Provision for income taxes | Net income | Net income per common share | Basic | Diluted |


| -1 (2) December 31, 2006 December 31, 2005 | NAIC Designation | (in millions) | 1 | 2 | Subtotal Investment Grade | 3 | 4 | 5 | 6 | Subtotal Below Investment Grade | Total Public Trading Account Assets Supporting Insurance Liabilities |


| Funded PensionPlans Unfunded PensionPlan Postretirement Medical Plan | 2013 | (In millions) | Pension asset / (accrued benefit liability) | Accumulated other comprehensive loss, pre-tax* | Net amount recognized |


Notes to the Financial Statements  Continued Asbestos Proceedings Suits have been brought in New York State and federal courts against the Utilities and many other defendants, wherein a large number of plaintiffs sought large amounts of compensatory and punitive damages for deaths and injuries allegedly caused by exposure to asbestos at various premises of the Utilities.
The suits that have been resolved, which are many, have been resolved without any payment by the Utilities, or for amounts that were not, in the aggregate, material to them.
The amounts specified in all the remaining thousands of suits total billions of dollars; however, the Utilities believe that these amounts are greatly exaggerated, based on the disposition of previous claims.
In 2008, CECONY estimated that its aggregate undiscounted potential liability for these suits and additional suits that may be brought over the next 15 years is $9 million.
The estimate was based upon a combination of modeling, historical data analysis and risk factor assessment.
Actual experience may be materially different.
In addition, certain current and former employees have claimed or are claiming workers compensation benefits based on alleged disability from exposure to asbestos.
Under its current rate agreements, CECONY is permitted to defer as regulatory assets (for subsequent recovery through rates) costs incurred for its asbestos lawsuits and workers compensation claims.
The accrued liability for asbestos suits and workers compensation proceedings (including those related to asbestos exposure) and the amounts deferred as regulatory assets for the Companies at December 31, 2009 and 2008 were as follows:


| Trading activities Note 3 Page 87 | Other noninterest revenue | Postretirement employee benefit plans | Employee stock-based incentives | Securities | Securities financing activities | Loans | Allowance for credit losses | Loan securitizations | Variable interest entities | Private equity investments | Goodwill and other intangibles | Premises and equipment | Income taxes | Derivative instruments and hedging activities | Off-balance sheet lending-related financial instrumentsand guarantees | Fair value of financial instruments |


flected as discontinued operations in the Companys consolidated financial statements.
If commodity prices do not recover significantly from current levels, the Company expects further writedowns of the carrying value of its oil and gas properties as the full cost ceiling limitation was calculated using a historical 12-month pricing average that included commodity prices from 2015.
These prices were significantly higher than current commodity futures prices.
To estimate the full cost ceiling limitation for 2016, had the Company utilized commodity futures prices as of December 31, 2015 in lieu of using historical commodity prices to calculate the 12-month unweighted arithmetic average price, the write-down as of December 31, 2015 would have been higher by $4.3 billion ($3.0 billion net of tax).


| 2009 2008 | December 31, | Credit-linked notes(a) | Static structure | Managed structure | Total |


| Direct Assumed Ceded Net Assumed/ Net% | (In millions) | Year Ended December 31, 2016 | Property and casualty | Long term care | Earned premiums | Year Ended December 31, 2015 | Property and casualty | Long term care | Earned premiums | Year Ended December 31, 2014 | Property and casualty | Long term care | Earned premiums |


| Past Due | As of December 31, 2013 (in millions) | Commercial Banking: | Commercial real estate | Commercial and industrial | Equipment financing | Total | Retail: | Residential mortgage | Home equity | Other consumer | Total | Total originated loans |


| Payments Due by Period | Contractual Obligations | (in thousands) | Operating Leases | Purchase Obligations -1 | Total Contractual Obligations |


| Options: Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Values (in millions) | Outstanding at beginning of year | Granted | Exercised* | Forfeited or expired | Outstanding at end of year | Options exercisable at end of year | Weighted average fair value per share of options granted |


Obligation for Future Contribution to an Equity Affiliate On 19 April 2015, a joint venture between Air Products and ACWA Holding entered into a 20-year oxygen and nitrogen supply agreement to supply Saudi Aramco’s oil refinery and power plant being built in Jazan, Saudi Arabia.
Air Products owns 25% of the joint venture and guarantees the repayment of its share of an equity bridge loan.
In total, we expect to invest approximately $100 in this joint venture.
As of 30 September 2015, we recorded a noncurrent liability of $67.5 for our obligation to make future equity contributions based on advances received by the joint venture under the loan.


| Payments Due by Period | Contractual Obligations | Long-term debt* | Operating leases | Other long-term obligations | Total contractual cash obligations |


NOTE 16.  BUSINESS SEGMENT AND GEOGRAPHIC INFORMATION We operate in the consumer foods industry.
In the third quarter of fiscal 2017, we announced a new global organization structure to streamline our leadership, enhance global scale, and drive improved operational agility to maximize our growth capabilities.
As a result of this global reorganization, beginning in the third quarter of fiscal 2017, we reported results for our four operating segments as follows: North America Retail, 65.3 percent of our fiscal 2017 consolidated net sales; Convenience Stores & Foodservice, 12.0 percent of our fiscal 2017 consolidated net sales; Europe & Australia, 11.7 percent of our fiscal 2017 consolidated net sales; and Asia & Latin America, 11.0 percent of our fiscal 2017 consolidated net sales.
We have restated our net sales by segment and segment operating profit amounts to reflect our new operating segments.
These segment changes had no effect on previously reported consolidated net sales, operating profit, net earnings attributable to General Mills, or earnings per share.
Our North America Retail operating segment consists of our former U. S.  Retail operating units and our Canada region.
Within our North America Retail operating segment, our former U. S.  Meals operating unit and U. S.  Baking operating unit have been combined into one operating unit: U. S.  Meals & Baking.
Our Convenience Stores & Foodservice operating segment is unchanged.
Our Europe & Australia operating segment consists of our former Europe region.
Our Asia & Latin America operating segment consists of our former Asia/Pacific and Latin America regions.
Under our new organization structure, our chief operating decision maker assesses performance and makes decisions about resources to be allocated to our segments at the North America Retail, Convenience Stores & Foodservice, Europe & Australia, and Asia & Latin America operating segment level.
Our North America Retail operating segment reflects business with a wide variety of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, and e-commerce grocery providers.
Our product categories in this business


| Company / Index 2013 2014 2015 2016 2017 2018 | Teleflex Incorporated | S&P 500 Index | S&P 500 Healthcare Equipment & Supply Index |


| As of and for the Year Ended December 31, | (dollars in millions) | Net interest income | Noninterest income | Total revenue | Noninterest expense | Profit before provision for credit losses | Provision for credit losses | Income before income tax expense | Income tax expense | Net income | Loans and loans held for sale (year-end) | Average Balances: | Total assets | Loans and leases and loans held for sale | Deposits | Interest-earning assets | Key Performance Metrics: | Net interest margin | Efficiency ratio | Period-end loans to deposits ratio-1 | Average loans to average deposits ratio-1 | Return on average total tangible assets | Return on average tangible common equity-2 |


| (Dollars in millions) Fiscal2014 Fiscal2013 Fiscal2012 2014-2013% Change 2013-2012% Change | Product revenue | Service and other revenue | Total segment revenue | % of total revenue | Segment operating income | % of related revenue | At July 31, 2014 | (In millions) | Assets: | Cash equivalents, primarily money market funds | Available-for-sale debt securities: | Municipal bonds | Municipal auction rate securities | Corporate notes | U.S. agency securities | Available-for-sale corporate equity securities | Total available-for-sale securities | Total assets measured at fair value on a recurring basis | Liabilities: | Senior notes -1 |


| Years ended December 31 2013 2012 2011 2010 2009 | Commercial Banking: | Commercial real estate | Commercial and industrial | Equipment financing | Retail: | Residential mortgage | Home equity | Other consumer | Total portfolio |


| Plan Category Number Of Securities To Be Issued Upon ExerciseOf 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 EquityCompensation Plans (excluding securities reflected in column (a)) (c) | Equity compensation plans approved by security holders -1 | Equity compensation plans not approved by security holders -2 | Total |


| Year ended December 31, 2018 Year ended December 31, 2017 | In millions of dollars | Non-accrual loans at beginning of period | Additions | Sales and transfers to HFS | Returned to performing | Paydowns/settlements | Charge-offs | Other | Ending balance |


| Year ended December 31, | (Dollars in thousands) | Average cash and due from banks | Average federal funds sold, securities purchased under agreement to resell and other short-term investmentsecurities | Average cash and cash equivalents | Percentage of total average assets | Net cash provided by operating activities | Net cash used for investing activities | Net cash provided by financing activities | Net increase in cash and cash equivalents | Year ended December 31, | (Dollars in thousands) | Average cash and cash equivalents | Percentage of total average assets | Net cash provided by operating activities | Net cash used for investing activities | Net cash provided by financing activities | Net increase (decrease) in cash and cash equivalents |


American International Group, Inc.  and Subsidiaries 14.
Stock Compensation Plans Continued The total unrecognized compensation cost (net of ex- pected forfeitures) related to non-vested share-based compensation awards granted under the 2002 Plan, the AIG DCPPP, the AIG Partners Plan and the SICO Plansat December 31, 2006 and the blended weighted-average period over which that cost is expected to be recognized at December 31, 2006 are as follows:


| Percent Increase (Decrease) from | 2006 | (Dollars in millions) | Commercial, financial, etc | Real estate — commercial | Real estate — consumer | Consumer | Automobile | Home equity lines | Home equity loans | Other | Total consumer | Total |


| Payments Due by Period   (in thousands) | Contractual Obligations | Long Term Debt | Operating Leases | Total Contractual Cash Obligations |


Institutional active AUM ended 2016 at $1.0 trillion, reflecting $17.9 billion of net inflows.
Institutional active represented 21% of long-term AUM and 20% of long-term base fees.
Growth in AUM reflected continued strength in multi-asset products with net inflows of $13.3 billion reflecting ongoing demand for solutions offerings and the LifePath?
target-date suite.
Our top-performing fixed income platform generated net inflows of $10.2 billion, diversified across exposures.
Alternatives net inflows of $1.8 billion were led by inflows into infrastructure and alternatives solutions offerings.
In addition, 2016 was another strong fundraising year for illiquid alternatives, and we raised $5.0 billion in new commitments, which will be a source of future net inflows.
Equity net outflows of $7.4 billion reflected fundamental and scientific net outflows of $5.0 billion and $2.4 billion, respectively.
Institutional index AUM totaled $1.9 trillion at December 31, 2016, reflecting net inflows of $33.5 billion.
Fixed income net inflows of $41.4 billion were driven by demand for liabilitydriven investment solutions, particularly in Europe.
Equity net outflows of $8.6 billion were primarily due to low-fee regional index equity outflows as clients looked to re-allocate, re-balance or meet their cash needs.
Institutional index represented 40% of long-term AUM at December 31, 2016 and accounted for 10% of long-term base fees for 2016.
The Companys institutional clients consist of the following: ?
Pensions, Foundations and Endowments.
BlackRock is among the worlds largest managers of pension plan assets with $1.989 trillion, or 68%, of long-term institutional AUM managed for defined benefit, defined contribution and other pension plans for corporations, governments and unions at December 31, 2016.
The market landscape continues to shift from defined benefit to defined contribution, driving strong flows in our defined contribution channel, which had $18.5 billion of long-term net inflows for the year, driven by continued demand for our LifePath target-date suite.
Defined contribution represented $703.5 billion of total pension AUM, and we remain well positioned to capitalize on the on-going evolution of the defined contribution market and demand for outcome-oriented investments.
An additional $61.0 billion, or 2%, of longterm institutional AUM was managed for other tax-exempt investors, including charities, foundations and endowments.  ?
Official Institutions.
BlackRock manages $181.9 billion, or 6%, of long-term institutional AUM for official institutions, including central banks, sovereign wealth funds, supranationals, multilateral entities and government ministries and agencies at year-end 2016.
These clients often require specialized investment advice, the use of customized benchmarks and training support.
Outflows from official institutions clients of $14.6 billion were primarily from index mandates, linked to clients asset allocation, re-balancing and cash needs.  ?
Financial and Other Institutions.
BlackRock is a top independent manager of assets for insurance companies, which accounted for $272.8 billion, or 10%, of institutional long-term AUM at year-end 2016.
Longterm net inflows from insurance clients totaled $30.9 billion, driven by demand for highly customized solutions.
Assets managed for other taxable institutions, including corporations, banks and thirdparty fund sponsors for which we provide sub-advisory services, totaled $406.5 billion, or 14%, of long-term institutional AUM at year-end.


STATE STREET CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 204 services that we provide to our clients are parts of an integrated offering to these clients.
We price our products and services on the basis of overall client relationships and other factors; as a result, revenue may not necessarily reflect the stand-alone market price of these products and services within the business lines in the same way it would for separate business entities.
Generally, approximately 70% to 75% of our consolidated total revenue (fee revenue from investment servicing and investment management, as well as trading services and securities finance activities) is generated by these two business lines.
The remaining 25% to 30% is composed of processing fees and other revenue, net interest revenue, which is largely generated by our investment of client deposits, short-term borrowings and longterm debt in a variety of assets, and net gains (losses) related to investment securities.
These other revenue types are generally fully allocated to, or reside in, Investment Servicing and Investment Management.
Revenue and expenses are directly charged or allocated to our lines of business through management information systems.
Assets and liabilities are allocated according to policies that support managements strategic and tactical goals.
Capital is allocated based on the relative risks and capital requirements inherent in each business line, along with management judgment.
Capital allocations may not be representative of the capital that might be required if these lines of business were separate business entities.
The following table provides a summary of our line of business results for the periods indicated.
The Other column for 2013 included net acquisition and restructuring costs of $104 million; certain provisions for litigation exposure and other costs of $65 million; and severance costs associated with reorganization of certain non-U.
S.  operations of $11 million.
The Other column for 2012 included the net realized loss from the sale of all of our Greek investment securities of $46 million; a benefit related to claims associated with the 2008 Lehman Brothers bankruptcy of $362 million; certain provisions for litigation exposure and other costs of $118 million; and acquisition and restructuring costs of $225 million.
The Other column for 2011 included acquisition and restructuring costs of $269 million.
The amounts in the Other columns were not allocated to State Street's business lines.
Results for 2012 reflect reclassifications, for comparative purposes, related to management changes in methodologies associated with allocations of capital and expenses reflected in results for 2013.
Results for 2011 were not adjusted for these reclassifications.


| (Dollars in millions) Ending Balance Sheet December 31, 2006 Adoption Net Gain/(Loss) Opening Balance Sheet January 1, 2007 | Impact of adopting SFAS 157 | Net derivative assets and liabilities-1 | Impact of electing the fair value option under SFAS 159 | Loans and leases-2 | Accrued expenses and other liabilities-3 | Loans held-for-sale-4 | Available-for-sale debt securities-5 | Federal funds sold and securities purchased under agreements to resell-6 | Interest-bearing deposit liabilities in domestic offices-7 | Cumulative-effect adjustment, pre-tax | Tax impact | Cumulative-effect adjustment, net-of-tax, decrease to retained earnings |


The asset allocation for the Canadian defined benefit pension plans as of December 31, 2005 and 2004, respectively, and the target allocation ranges for 2006 by asset category are presented below.
The fair value of plan assets for these plans was $198 million and $146 million as of December 31, 2005 and 2004, respectively
The Companys postretirement benefit plans are unfunded.
The financial objectives of the qualified U. S.  and Canadian pension plans are established in conjunction with a comprehensive review of each plans liability structure.
The Companys asset allocation policy is based on a detailed asset/liability analysis.
In developing investment policy and financial goals,
tax-qualified defined contribution 401(k) savings plans.
Substantially all U. S.  salaried and certain hourly employees are eligible to participate and may make elective deferrals to such plans to save for retirement.
International Paper makes matching contributions to participant accounts on a specified percentage of employee deferrals as determined by the provisions of each plan.
For eligible employees hired after June 30, 2004, the Company makes Retirement Savings Account contributions equal to a percentage of an eligible employees pay.
In connection with the Temple-Inland acquisition, International Paper acquired two savings plans which were merged into the International Paper savings plans on December 31, 2012.
The Company also sponsors the International Paper Company Deferred Compensation Savings Plan, which is an unfunded nonqualified defined contribution plan.
This plan permits eligible employees to continue to make deferrals and receive company matching contributions when their contributions to the International Paper Salaried Savings Plan are stopped due to limitations under U. S.  tax law.
Participant deferrals and company matching contributions are not invested in a separate trust, but are paid directly from International Papers general assets at the time benefits become due and payable.
Company matching contributions to the plans totaled approximately $112 million, $120 million and $122 million for the plan years ending in 2014, 2013 and 2012, respectively.
NOTE 17 POSTRETIREMENT BENEFITS U. S.  POSTRETIREMENT BENEFITS International Paper provides certain retiree health care and life insurance benefits covering certain U. S.  salaried and hourly employees.
These employees are generally eligible for benefits upon retirement and completion of a specified number of years of creditable service.
Excluded from company-provided medical benefits are salaried employees whose age plus years of employment with the Company totaled less than 60 as of January 1, 2004.  International Paper does not fund these benefits prior to payment and has the right to modify or terminate certain of these plans in the future.
In addition to the U. S.  plan, certain Brazilian and Moroccan employees are eligible for retiree health care and life insurance benefits.
The components of postretirement benefit expense in 2014, 2013 and 2012 were as follows:


Postretirement Benefit Obligations Pension obligations and other postretirement employee benefit (OPEB) obligations are based on various assumptions used by the companys actuaries in calculating these amounts.
These assumptions include discount rates, health care cost trend rates, expected return on plan assets, compensation increases, retirement rates, mortality rates and other factors.
Actual results that differ from the assumptions and changes in assumptions affect future expenses and obligations.
The pension liabilities, net of pension assets, recognized on the balance sheet at October 31, 2011, 2010 and 2009 were $1,373 million, $693 million and $1,307 million, respectively.
The OPEB liabilities, net of OPEB assets, on these same dates were $5,193 million, $4,830 million and $4,652 million, respectively.
The increase in pension net liabilities in 2011 was primarily due to a decrease in discount rates, partially offset by the return on plan assets.
The decrease in the pension net liabilities in 2010 was primarily due to the return on plan assets and company contributions, partially offset by a decrease in discount rates.
The increases in the OPEB net liabilities in 2011 and 2010 were primarily due to the decreases in discount rates.
The effect of hypothetical changes to selected assumptions on the companys major U. S.  retirement benefit plans would be as follows in millions of dollars:


| Year Ended December 31, | 2013 | (In millions except ratios and per share data) | Statement of income data: | Total operating revenues | Total operating costs and expenses, and other expenses(b) | (Loss)/Income from continuing operations, net | Net (loss)/income attributable to NRG Energy, Inc. | Common share data: | Basic shares outstanding — average | Diluted shares outstanding — average | Shares outstanding — end of year | Per share data: | Net (loss)/income attributable to NRG — basic | Net (loss)/income attributable to NRG — diluted | Dividends declared per common share | Book value | Business metrics: | Cash flow from operations | Liquidity position(a) | Ratio of earnings to fixed charges | Ratio of earnings to fixed charges and preferred dividends | Return on equity | Ratio of debt to total capitalization | Balance sheet data: | Current assets | Current liabilities | Property, plant and equipment, net | Total assets | Long-term debt, including current maturities, capital leases, and funded letter of credit | Total stockholders' equity |


| December 31 | (Dollars in millions) | Consumer | Residential mortgage | Home equity | Discontinued real estate | Direct/Indirect consumer | Other consumer | Total consumer-3 | Commercial | Commercial – domestic-4 | Commercial real estate | Commercial lease financing | Commercial – foreign | 6,292 | Small business commercial – domestic | Total commercial-5 | Total nonperforming loans and leases | Foreclosed properties | Total nonperforming assets |


| December 31 – in millions 2012(a) 2011 2010 2009 2008 | 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 |


Own Debt Valuation Adjustments (DVA) Own debt valuation adjustments are recognized on Citi’s liabilities for which the fair value option has been elected using Citi’s credit spreads observed in the bond market.
Effective January 1, 2016, changes in fair value of fair value option liabilities related to changes in Citigroup’s own credit spreads (DVA) are reflected as a component of AOCI.
See Note 1 to the Consolidated Financial Statements for additional information.
Among other variables, the fair value of liabilities for which the fair value option has been elected (other than non-recourse and similar liabilities) is impacted by the narrowing or widening of the Company’s credit spreads.
The estimated changes in the fair value of these liabilities due to such changes in the Company’s own credit spread (or instrument-specific credit risk) were a gain of $1,415 million and a loss of $680 million for the years ended December 31, 2018 and 2017, respectively.
Changes in fair value resulting from changes in instrument-specific credit risk were estimated by incorporating the Company’s current credit spreads observable in the bond market into the relevant valuation technique used to value each liability as described above.
The Fair Value Option for Financial Assets and Financial Liabilities Selected Portfolios of Securities Purchased Under Agreements to Resell, Securities Borrowed, Securities Sold Under Agreements to Repurchase, Securities Loaned and Certain Non-Collateralized Short-Term Borrowings The Company elected the fair value option for certain portfolios of fixed income securities purchased under agreements to resell and fixed income securities sold under agreements to repurchase, securities borrowed, securities loaned and certain non-collateralized short-term borrowings held primarily by broker-dealer entities in the United States, United Kingdom and Japan.
In each case, the election was made because the related interest rate risk is managed on a portfolio basis, primarily with offsetting derivative instruments that are accounted for at fair value through earnings.
Changes in fair value for transactions in these portfolios are recorded in Principal transactions.
The related interest revenue and interest expense are measured based on the contractual rates specified in the transactions and are reported as Interest revenue and Interest expense in the Consolidated Statement of Income.
Certain Loans and Other Credit Products Citigroup has also elected the fair value option for certain other originated and purchased loans, including certain unfunded loan products, such as guarantees and letters of credit, executed by Citigroup’s lending and trading businesses.
None of these credit products are highly leveraged financing commitments.
Significant groups of transactions include loans and unfunded loan products that are expected to be either sold or securitized in the near term, or transactions where the economic risks are hedged with derivative instruments, such as purchased credit default swaps or total return swaps where the Company pays the total return on the underlying loans to a third party.
Citigroup has elected the fair value option to mitigate accounting mismatches in cases where hedge accounting is complex and to achieve operational simplifications.
Fair value was not elected for most lending transactions across the Company.


Treasury encompasses the securities portfolio, short-term investments, brokered deposits, wholesale borrowings and the funding center, which includes the impact of derivative financial instruments used for risk management purposes.
The income or loss for the funding center represents the IRR component of People’s United’s net interest income as calculated by its FTP model in deriving each operating segment’s net interest income.
Under this process, the funding center buys funds from liability-generating business lines, such as consumer deposits, and sells funds to asset-generating business lines, such as commercial lending.
The price at which funds are bought and sold on any given day is set by People’s United’s Treasury group and is based on the wholesale cost to People’s United of assets and liabilities with similar maturities.
Liability-generating businesses sell newly-originated liabilities to the funding center and recognize a funding credit, while asset-generating businesses buy funding for newly-originated assets from the funding center and recognize a funding charge.
Once funding for an asset is purchased from or a liability is sold to the funding center, the price that is set by the Treasury group will remain with that asset or liability until it matures or reprices, which effectively transfers responsibility for managing IRR to the Treasury group.


THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements The firm also pledges certain financial instruments owned, at fair value in connection with repurchase agreements, securities loaned transactions and other secured financings, and other assets (primarily real estate and cash) in connection with other secured financings to counterparties who may or may not have the right to deliver or repledge them.
The table below presents financial instruments at fair value received as collateral that were available to be delivered or repledged and were delivered or repledged by the firm.


| RM&T Operating Statistics 2007 2006 | Refining and wholesale marketing gross margin(Dollars per gallon)(a) | Refined products sales volumes(Thousands of barrels per day) |


| Net Undeveloped Acres Expiring Year Ended December 31, | (In thousands) | U.S. | E.G. | Other Africa | Total Africa | Other International | Total |


| Real Estate | Commercial, Financial, Leasing, etc. | (In thousands) | December 31, 2017 | Pass | Criticized accrual | Criticized nonaccrual | Total | December 31, 2016 | Pass | Criticized accrual | Criticized nonaccrual | Total |


Tax Effects of Stock Awards.
In November 2005, FASB issued a Staff Position (FSP) on FAS 123(R)-3, Transition Election Related to Accounting for the Tax Effects of Share-Based Payment Awards.
Effective upon issuance, this FSP describes an alternative transition method for calculating the tax effects of share-based compensation pursuant to SFAS 123(R).
The alternative transition method includes simplified methods to establish the beginning balance of the additional paid-in capital pool (APIC pool) related to the tax effects of employee stock based compensation, and to determine the subsequent impact on the APIC pool and the statement of cash flows of the tax effects of employee share-based compensation


| Balance at December 31, 2002 $15 | Additional liability recorded from cumulative effect of accounting change | Accretion expense | Change in the timing of estimated cash flows | Balance at December 31, 2003 |


| Years ended December 31, | 2006 | Cash paid for current year acquisitions | Cash paid for prior acquisitions: | Cost of investment | Compensation expense-related payments | Less: cash acquired | Net cash paid for acquisitions |


| % Change | (in millions of U.S. dollars, except for percentages) | Net premiums written | Net premiums earned | Losses and loss expenses | Policy acquisition costs | Administrative expenses | Underwriting income | Net investment income | Net realized gains (losses) | Interest expense | Other (income) expense | Income tax expense | Net income | Loss and loss expense ratio | Policy acquisition cost ratio | Administrative expense ratio | Combined ratio |


In 2015, Arconic recognized an additional $141 discrete income tax charge for valuation allowances on certain deferred tax assets in Iceland and Suriname.
Of this amount, an $85 valuation allowance was established on the full value of the deferred tax assets in Suriname, which were related mostly to employee benefits and tax loss carryforwards.
These deferred tax assets have an expiration period ranging from 2016 to 2022 (as of December 31, 2015).
The remaining $56 charge relates to a valuation allowance established on a portion of the deferred tax assets recorded in Iceland.
These deferred tax assets have an expiration period ranging from 2017 to 2023.
After weighing all available positive and negative evidence, as described above, management determined that it was no longer more likely than not that Arconic will realize the tax benefit of either of these deferred tax assets.
This was mainly driven by a decline in the outlook of the Primary Metals business, combined with prior year cumulative losses and a short expiration period.


| Payments Due by Period | (in millions) | Term Loan-1 | Kelway Term Loan-1 | Senior Notes due 2022-2 | Senior Notes due 2023-2 | Senior Notes due 2024-2 | Operating leases-3 | Asset retirement obligations-4 | Total |


| ($ in millions, except per share amounts) 2010 2009 2008 | Net earnings attributable to Ball Corporation, as reported | Discontinued operations, net of tax | Business consolidation activities, net of tax | Gains and equity earnings related to acquisitions, net of tax | Gain on dispositions, net of tax | Debt refinancing costs, net of tax | Adjusted net earnings | Per diluted share from continuing operations, as reported | Per diluted share, as adjusted | In Millions, Fiscal Year | Segment Operating Profit: | U.S. Retail | International | Bakeries and Foodservice | Total segment operating profit | Unallocated corporate items | Interest, net | Restructuring and other exit costs | Divestitures – gain | Debt repurchase costs | Earnings before income taxes and after-tax earnings from joint ventures |


customers comes either through procurement processes conducted by the IPA or through markets operated by MISO.
The IPA administers an RFP process through which Ameren Illinois procures its expected supply obligation.
The power and related procurement costs incurred by Ameren Illinois are passed directly to its customers through a cost recovery mechanism.
Ameren Illinois charges transmission and distribution service rates to customers who purchase electricity from alternative retail electric suppliers.
See Note 14  Related Party Transactions and Note 15  Commitments and Contingencies under Part II, Item 8, of this report for additional information on power procurement in Illinois.


| Convertible notes principal amount $1,725,000 | Unamortized discount | Net carrying amount | Equity component, net of taxes |


Segment Results—2009 Compared to 2008In 2009, the segment’s net sales were $7.1 billion, a decrease of 41% compared to net sales of $12.1 billionin 2008.
The 41% decrease in net sales was primarily driven by a 45% decrease in unit shipments, partially offsetby an 8% increase in average selling price (‘‘ASP’’).
The segment’s net sales were negatively impacted by reducedproduct offerings in large market segments, particularly 3G products, including smartphones, and the segment’slimited product offerings in very low-tier products.
On a product technology basis, net sales decreasedsubstantially for GSM, CDMA and 3G technologies, partially offset by an increase in net sales for iDENtechnology.
On a geographic basis, net sales decreased substantially in Latin America, the Europe, Middle Eastand African region (‘‘EMEA’’) and Asia and, to a lesser extent, decreased in North America.
The segment incurred an operating loss of $1.1 billion in 2009, an improvement of 51% compared to anoperating loss of $2.2 billion in 2008.
The decrease in the operating loss was primarily due to decreases in:(i) selling, general and administrative (‘‘SG&A’’) expenses, primarily due to lower marketing expenses and savingsfrom cost-reduction initiatives, (ii) research and development (‘‘R&D’’) expenditures, reflecting savings fromcost-reduction initiatives,(iii) lower excess inventory and other related charges in 2009 than in 2008, when thecharges included a $370 million charge due to a decision to consolidate software and silicon platforms, and(iv) the absence in 2009 of a comparable $150 million charge in 2008 related to settlement of a purchasecommitment, partially offset by a decrease in gross margin, driven by the 41% decrease in net sales.
As apercentage of net sales in 2009 as compared to 2008, gross margin and R&D expenditures increased and SG&Aexpenses decreased.
The segment’s industry typically experiences short life cycles for new products.
Therefore, it is vital to thesegment’s success that new, compelling products are continually introduced.
Accordingly, a strong commitment to


| Years Ended December 31, | (Dollars in millions) | Case reserves reported by ceding companies | Additional case reserves established by the Company (assumed reinsurance)(1) | Case reserves established by the Company (direct insurance) | Incurred but not reported reserves | Gross reserves | Reinsurance receivable | Net reserves | ______________ | Years Ended December 31, | (Dollars in millions) | Gross written premiums | Net written premiums | Premiums earned | Incurred losses and LAE | Commission and brokerage | Other underwriting expenses | Underwriting gain (loss) | Point Chg | Loss ratio | Commission and brokerage ratio | Other underwriting expense ratio | Combined ratio | (Some amounts may not reconcile due to rounding.) |


| Years Ended December 31, | 2008 | (In millions) | Balance, beginning of period | Additions | Deductions | Balance, end of period |


On June 21, 2012, Moodys downgraded the long-term ratings of the Firm and affirmed all its short-term ratings.
The outlook for the parent holding company was left on negative reflecting Moodys view that government support for U. S.  bank holding company creditors is becoming less certain and less predictable.
Such ratings actions concluded Moodys review of 17 banks and securities firms with global capital markets operations, including the Firm, as a result of which all of these institutions were downgraded by various degrees.
Following the disclosure by the Firm, on May 10, 2012, of losses from the synthetic credit portfolio held by CIO, Fitch downgraded the Firm and placed all parent and subsidiary long-term ratings on Ratings Watch Negative.
At that time, S&P also revised its outlook on the ratings of the Firm from Stable to Negative.
Subsequently, on October 10, 2012, Fitch revised the outlook to Stable and affirmed the Firms ratings.
The above-mentioned rating actions did not have a material adverse impact on the Firms cost of funds and its ability to fund itself.
Further downgrades of the Firms long-term ratings by one notch or two notches could result in a downgrade of the Firms short-term ratings.
If this were to occur, the Firm believes its cost of funds could increase and access to certain funding markets could be reduced.
The nature and magnitude of the impact of further ratings downgrades depends on numerous contractual and behavioral factors (which the Firm believes are incorporated in the Firms liquidity risk and stress testing metrics).
The Firm believes it maintains sufficient liquidity to withstand any potential decrease in funding capacity due to further ratings downgrades.
JPMorgan Chases unsecured debt does not contain requirements that would call for an acceleration of payments, maturities or changes in the structure of the existing debt, provide any limitations on future borrowings or require additional collateral, based on unfavorable changes in the Firms credit ratings, financial ratios, earnings, or stock price.
Rating agencies continue to evaluate various ratings factors, such as regulatory reforms, rating uplift assumptions surrounding government support, and economic uncertainty and sovereign creditworthiness, and their potential impact on ratings of financial institutions.
Although the Firm closely monitors and endeavors to manage factors influencing its credit ratings, there is no assurance that its credit ratings will not be changed in the future.


Stock-Based Compensation Equity Compensation Plans The Company has one share-based compensation plan pursuant to which awards are currently being made—the 2008 Equity Incentive Plan.
The Company has four share-based compensation plans pursuant to which outstanding awards have been made, but from which no further awards can or will be made—i) the 1995 Combination Stock Option Plan; ii) the 1997 Employee Equity Incentive Plan; iii) the 1999 Equity Incentive Plan; and iv) the 2000 Acquisition Equity Incentive Plan.
At the Company’s March 11, 2008 Annual Meeting of Stockholders, the Company’s 2008 Equity Incentive Plan (the “2008 Equity Plan”) was approved.
In connection with this approval, the Company’s 1999 Second Amended and Restated Equity Incentive Plan was terminated.
The purpose of the 2008 Equity Plan is to provide stock options, stock issuances and other equity interests in the Company to employees, officers, directors, consultants and advisors of the Company and its parents and subsidiaries, and any other person who is determined by the Board of Directors to have made (or is expected to make) contributions to the Company.
The 2008 Equity Plan is administered by the Board of Directors of the Company, and a total of 20 million shares were reserved for issuance under this plan.
As of September 24, 2011, the Company had approximately 8.2 million shares available for future grant under this plan.
The Company assumed certain other plans in connection with the Cytyc and Third Wave acquisitions, and no shares are available for future grant under these plans.


| Year ended April 30, 2017 2016 $ Change % Change | Consulting and outsourced services | Bank partner fees | Client claims and refunds | Employee travel and related expenses | Software and IT maintenance expenses | Credit card/bank charges | Insurance | Legal fees and settlements | Other | $365,217 |


| 2016 2015 2014 | Balance at beginning of year | Additions charged to expense | Accounts written-off | Balance at end of year |


| Income before income taxes and minority interest $17,542 | Net income | Net earnings per common share: | Basic | Diluted | 2005 | Net income, as reported | Deduct: Total share-based compensation expensedetermined under fair value based method for | stock options, net of related tax effects | Pro forma net income | Net earnings per common share: | Basic – as reported | Basic – pro forma | Diluted – as reported | Diluted – pro forma |


| Pension plans Postretirement benefit plans | In millions of dollars | 2015 | Change in projected benefit obligation | Qualified plans | Projected benefit obligation at beginning of year | Benefits earned during the year | Interest cost on benefit obligation | Plan amendments | Actuarial loss (gain)(1) | Benefits paid, net of participants’ contributions | Expected government subsidy | Divestitures | Settlement (gain) loss(2) | Curtailment (gain) loss(2) | Special termination benefits-2 | Foreign exchange impact and other | Qualified plans | Nonqualified plans | Projected benefit obligation at year end |


CITIZENS FINANCIAL GROUP, INC.  MANAGEMENTS DISCUSSION AND ANALYSIS 75 Non-core assets are primarily liquidating loan and lease portfolios inconsistent with our strategic priorities, generally as a result of geographic location, industry, product type or risk level and are included in Other.
Non-core assets of $2.1 billion as of December 31, 2017 decreased $670 million, or 24%, from December 31, 2016.
Retail non-core loan balances of $1.2 billion decreased $377 million, or 25%, compared to December 31, 2016.
The largest component of our retail non-core portfolio is the home equity SBO portfolio, which totaled $691 million as of December 31, 2017, compared to $969 million as of December 31, 2016.
The SBO portfolio represented 2% of the retail real estate secured portfolio and 1% of the overall retail loan portfolio as of December 31, 2017.
The SBO portfolio is a liquidating portfolio consisting of pools of home equity loans and lines of credit purchased between 2003 and 2007.
Although our SBO portfolio consists of loans that were initially serviced by others, we now service a portion of this portfolio internally.
SBO balances serviced externally totaled $372 million and $505 million as of December 31, 2017 and 2016, respectively.
The credit profile of the SBO portfolio reflected a weighted-average refreshed FICO score of 709 and CLTV of 81% as of December 31, 2017.
The proportion of the portfolio in a second lien position was 97%, with 70% of the portfolio in out-of-footprint geographies.
SBO net recoveries of $5 million in 2017 reflected a $30 million improvement from 2016, driven by continued portfolio seasoning, recoveries from aged charge-offs, and balance liquidation.
Commercial non-core loan and lease balances of $827 million decreased $250 million, or 23%, from $1.1 billion as of December 31, 2016.
The largest component of our commercial non-core portfolio is an aircraft-related loan and lease portfolio tied to legacy-Royal Bank of Scotland Group plc aircraft leasing borrowers, which totaled $752 million as of December 31, 2017 and $917 million as of December 31, 2016.
During second quarter 2017, we recorded a $26 million pre-tax impairment write-down largely related to certain large-cabin aircraft lease assets primarily in the non-core portfolio.
Allowance for Credit Losses and Nonperforming Assets The allowance for credit losses, which consists of an ALLL and a reserve for unfunded lending commitments, is created through charges to the provision for credit losses in order to provide appropriate reserves to absorb future estimated credit losses in accordance with GAAP.
For further information on our processes to determine our allowance for credit losses, see Critical Accounting Estimates  Allowance for Credit Losses, and Note 5 Allowance for Credit Losses, Nonperforming Assets, and Concentrations of Credit Risk to our audited Consolidated Financial Statements in Part II, Item 8  Financial Statements and Supplementary Data, included in this report.
Summary of Loan and Lease Loss Experience The following table presents a summary of the changes to our ALLL:


Variable Interest Entities In accordance with Financial Accounting Standards Board (FASB) Interpretation No.46 Revised (FIN 46R), “Consolidation of Variable Interest Entities, an Interpretation of ARB No.51”, the Company consolidates 19 DownREIT limited partnerships (comprising twelve properties), and an office building that is subject to loans made by the Company.
The Company consolidates these entities because it is deemed the primary beneficiary under FIN 46R.
The total assets and liabilities related to these variable interest entities (VIEs), net of intercompany eliminations, were approximately $222.7 million and $163.9 million as of December 31, 2007 and $178.3 million and $110.9 million as of December 31, 2006, respectively.
Interest holders in VIEs consolidated by the Company are allocated net income equal to the cash payments made to those interest holders for services rendered or distributions from cash flow.
The remaining results of operations are generally allocated to the Company.
As of December 31, 2007 and 2006, the Company was involved with two VIEs, of which it is not deemed to be the primary beneficiary.
Total assets and liabilities of these entities were approximately $71.7 million and $78.5 million and $58.3 million and $58.4 million, as of December 31, 2007 and 2006, respectively.
The Company does not have a significant exposure to loss from its involvement with these unconsolidated VIEs.
Critical Accounting Policies and Estimates The preparation of consolidated financial statements, in accordance with U. S.  generally accepted accounting


Compensation and Benefits Expense The following table provides a summary of our compensation and benefits expense: