(a) 2004 results include six months of the combined Firms results and six months of heritage JPMorgan Chase results.
All other periods reflect the results of heritage JPMorgan Chase only.
IBs revenues are comprised of the following: Investment banking fees includes advisory, equity underwriting, bond underwriting and loan syndication fees.
Fixed income markets includes client and portfolio management revenue related to both market-making and proprietary risk-taking across global fixed income markets, including government and corporate debt, foreign exchange, interest rate and commodities markets.
Equities markets includes client and portfolio management revenue related to market-making and proprietary risk-taking across global equity products, including cash instruments, derivatives and convertibles.
Credit portfolio revenue includes Net interest income, fees and loan sale activity for IBs credit portfolio.
Credit portfolio revenue also includes gains or losses on securities received as part of a loan restructuring, and changes in the credit valuation adjustment (CVA), which is the component of the fair value of a derivative that reflects the credit quality of the counterparty.
See page 63 of the Credit risk management section of this Annual Report for a further discussion of the CVA.
Credit portfolio revenue also includes the results of risk management related to the Firms lending and derivative activities.
See pages 6465 of the Credit risk management section of this Annual Report for a further discussion on credit derivatives.
The components of income tax expense/(benefit) included in the Consolidated statements of income were as follows for each of the years ended December 31, 2017, 2016, and 2015.
Income tax expense/(benefit)


| Net Sales % Change | Dollars in Millions | Pharmaceuticals | % of net sales | Nutritionals | % of net sales | Other Health Care | % of net sales | Health Care Group | Total |


| In billions 2018 | January 1 | Issuances | Calls and maturities | Other | December 31 |


| Property Dates Held by a Third Party Intermediary Date Consolidated | Courtyard Shops | Huntington Square | Tower Shops |


| December 31, | 2011 | (in millions) | Advice & Wealth Management | Asset Management | Annuities | Protection | Corporate & Other | Assets held for sale | Total assets |


Acquisitions In October 2017, the Operating Partnership acquired an operating community located in Denver, Colorado with a total of 218 apartment homes and 17,000 square feet of retail space for a purchase price of approximately $141.5 million.
As a result of the acquisition, the Operating Partnership increased its real estate owned by approximately $139.0 million and recorded approximately $2.5 million of in-place lease intangibles.
The acquisition will be fully or partially funded with tax-deferred like-kind exchanges under Section 1031 of the Internal Revenue Code of 1986 (“Section 1031 exchanges”).
Dispositions In December 2017, the Operating Partnership sold two operating communities with a total of 218 apartment homes in Orange County, California and Carlsbad, California for gross proceeds of $69.0 million, resulting in net proceeds of $68.0 million and a gain of $41.3 million.
During the year ended December 31, 2016, the Operating Partnership sold two operating communities in Baltimore, Maryland with a total of 276 apartment homes for gross proceeds of $45.3 million, resulting in net proceeds of $44.6 million and a gain, net of tax, of $33.2 million.
In February 2018, the Operating Partnership sold an operating community in Orange County, California with a total of 264 apartment homes for gross proceeds of $90.5 million and an expected GAAP gain of $70.3 million.
The proceeds were designated for tax-deferred Section 1031 exchanges.
Other Activity In connection with the acquisition of certain properties, the Operating Partnership agreed to pay certain of the tax liabilities of certain contributors if the Operating Partnership sells one or more of the properties contributed in a taxable transaction prior to the expiration of specified periods of time following the acquisition.
The Operating


| December 31 | 2005 | (Dollars in millions) | Financial assets | Loans | Financial liabilities | Deposits | Long-term debt |


| December 31, 2006 | Cost or Amortized   Cost | Less than | 20% | (In millions, except number of securities) | Less than six months | Six months or greater but less than nine months | Nine months or greater but less than twelve months | Twelve months or greater | Total |


| 2007 2006 2005 | Weighted-Average Expected Life (years) | Weighted-Average Risk-Free Interest Rate | Weighted-Average Expected Volatility | Weighted-Average Fair Value per Option Granted | Remaining | Number of | Shares | Outstanding at December 31, 2004 | Granted | Canceled | Exercised | Outstanding at December 31, 2005 | Granted | Canceled | Exercised | Outstanding at December 31, 2006 | Granted | Canceled | Exercised | Outstanding at December 31, 2007 | Exercisable at December 31, 2007 |


| December 31, 2010 December 31, 2009 | Amortized Cost-1 | (in millions) | Less than three months | Three months or greater but less than six months | Six months or greater but less than nine months | Nine months or greater but less than twelve months | Greater than twelve months | Total |


| For the Year Ended December 31,2011 For the Year Ended December 31,2010 | Per boe | 2010 LOE | Acquisitions, net of associated production | FX impact | Labor and pumper costs | Workover costs | Chemicals, power, and fuel | Transportation | Other | Other decreased production | 2011 LOE | Other increased production | 2010 LOE |


| in thousands 2012 2011 2010 | Discontinued Operations | Pretax earnings (loss) | Gain on disposal, net of transaction bonus | Income tax provision | Earnings on discontinued operations, net of income taxes |


During 2004, using derivative instruments MAP sold crack spreads forward through the fourth quarter 2005 at values higher than the company thought sustainable in the actual months these contracts expire.
Included in the $76 million derivative loss for 2004 noted in the above table for the Protect crack spread values strategy was approximately an $8 million gain due to changes in the fair value of crack-spread derivatives that will expire throughout 2005.
In addition, natural gas options are in place to manage the price risk associated with approximately 41 percent of the first quarter 2005 anticipated natural gas purchases for refinery use.
IG Segment We have used derivative instruments to convert the fixed price of a long-term gas sales contract to market prices.
The underlying physical contract is for a specified annual quantity of gas and matures in 2008.
Similarly, we will use derivative instruments to convert shorter term (typically less than a year) fixed price contracts to market prices in our ongoing purchase for resale activity; and to hedge purchased gas injected into storage for subsequent resale.
Derivative gains included in IG segment income were $17 million in 2004, compared to gains of $19 million in 2003 and losses of $8 million in 2002.
Trading activity in the IG segment resulted in losses of $2 million in 2004, compared to losses of $7 million in 2003 and gains of $4 million in 2002 and have been included in the aforementioned amounts.


| Change | 2010 | (in thousands) | Military services: | Base receivable | Change orders | Military services subtotal | Medicare | Commercial and other | Allowance for doubtful accounts | Total net receivables | Reconciliation to cash flow statement: | Provision for doubtful accounts | Receivables from acquisition | Change in receivables per cash flow statement resulting in cash from operations | Completion Factor (a): | Factor Change (c) | 1.25% | 1.10% | 0.95% | 0.80% | 0.65% | 0.50% | 0.35% |


| Change | 2009 | Medical Membership: | Government segment: | Medicare Advantage | Medicare stand-alone PDP | Total Medicare | Military services | Military services ASO | Total military services | Medicaid | Medicaid ASO | Total Medicaid | Total Government | Commercial segment: | Fully-insured | ASO | Total Commercial | Total medical membership | Specialty Membership: | Commercial segment (a) |


Industrial Properties Our dry warehouse/industrial properties consist of seven buildings in New Jersey containing approximately 1.5 million square feet.
The properties are encumbered by two cross-collateralized mortgage loans aggregating $47,179,000 as of December 31, 2006.
Average lease terms range from three to five years.
The following table sets forth the occupancy rate and average annual rent per square foot at the end of each of the past five years.


Item 7.
Managements Discussion and Analysis of Financial Condition and Results of Operations The following discussion and analysis is based primarily on the consolidated financial statements of Welltower Inc.  presented in conformity with U. S.  generally accepted accounting principles (U.
S.  GAAP) for the periods presented and should be read together with the notes thereto contained in this Annual Report on Form 10-K.  Other important factors are identified in Item 1  Business and Item 1A  Risk Factors above.
Executive Summary Company Overview Welltower Inc.  (NYSE:WELL), an S&P 500 company headquartered in Toledo, Ohio, is driving the transformation of health care infrastructure.
The Company invests with leading seniors housing operators, postacute providers and health systems to fund the real estate and infrastructure needed to scale innovative care delivery models and improve peoples wellness and overall health care experience.
WelltowerTM, a real estate investment trust (REIT), owns interests in properties concentrated in major, high-growth markets in the United States (U.
S. ), Canada and the United Kingdom (U.
K. ), consisting of seniors housing and post-acute communities and outpatient medical properties.
Our capital programs, when combined with comprehensive planning, development and property management services, make us a single-source solution for acquiring, planning, developing, managing, repositioning and monetizing real estate assets.
The following table summarizes our consolidated portfolio for the year ended December 31, 2017 (dollars in thousands):


| Successor Predecessor January 1, 2009 Through July 9, 2009 | YearEnded December 31, 2010 | Beginning balance | Accretion expense | Liabilities incurred | Liabilities settled or disposed | Effect of foreign currency translation | Revisions to estimates | Reclassified to liabilities subject to compromise (a) | Ending balance | Effect of application of fresh-start reporting | Ending balance including effect of application of fresh-start reporting |


(1) Includes, as of December 31, 2006 and December 31, 2005, respectively, 6 securities with amortized cost of $19 million (fair value, $19 million) and 8 securities with amortized cost of $2 million (fair value, $2 million) that have been categorized based on expected NAIC designations pending receipt of SVO ratings.


| Operating rental properties $176,038 | Undeveloped land | Total real estate investments | Other assets | Lease related intangible assets | Total assets acquired | Liabilities assumed | Net recognized value of acquired assets and liabilities |


Management’s Discussion and Analysis of Financial Condition and Results of Operations Continued lion with respect to the ceded reserve for losses and loss expenses, including ceded losses incurred but not reported (1BNR)(ceded reserves) and $3.07 billion of ceded reserve for unearned premiums.
The ceded reserve for losses and loss expenses represent the accumulation of estimates of ultimate ceded losses including provisions for ceded IBNR and lossexpenses.
The methods used to determine such estimates andto establish the resulting ceded reserves are continually reviewed and updated by management.
Any adjustments thereto are reflected in income currently.
It is AlG's belief that the ceded reserve for losses and loss expenses at December 31,2005 were representative of the ultimate losses recoverable.
In the future, as the ceded reserves continue to develop to ultimate amounts, the ultimate loss recoverable may be greater or less than the reserves currently ceded.


(8) LONG-TERM DEBT On July 27, 2012, Roper entered into a $1.5 billion unsecured credit facility (the 2012 Facility) with JPMorgan Chase Bank, N. A. , as administrative agent, and a syndicate of lenders, which replaced its prior unsecured credit facility dated as of July 7, 2008 (the 2008 Facility).
The 2012 Facility is composed of a five year $1.5 billion revolving credit facility.
Roper may also, subject to compliance with specified conditions, request term loans or additional revolving credit commitments in an aggregate amount not to exceed $350 million.
At December 31, 2014, there were no outstanding borrowings under the 2012 Facility.
Roper recorded a $1.0 million non-cash debt extinguishment charge in the third quarter of 2012 related to the early termination of the 2008 Facility.
This charge reflects the unamortized fees associated with the 2008 Facility and was reported as other expense.
The 2012 Facility contains affirmative and negative covenants which, among other things, limit Ropers ability to incur new debt, prepay subordinated debt, make certain investments and acquisitions, sell assets and grant liens, make restricted payments (including the payment of dividends on our common stock) and capital expenditures, or change its line of business.
Roper is also subject to financial covenants which require the Company to limit its consolidated total leverage ratio and to maintain a consolidated interest coverage ratio.
The most restrictive covenant is the consolidated total leverage ratio which is limited to 3.5.
The Company was in compliance with its debt covenants throughout the years ended December 31, 2014 and 2013.
On June 6, 2013, the Company completed a public offering of $800 million aggregate principal amount of 2.050% senior unsecured notes due October 1, 2018.
The notes bear interest at a fixed rate of 2.050% per year, payable semi-annually in arrears on April 1 and October 1 of each year, beginning October 1, 2013.
Roper may redeem some or all of the notes at any time or from time to time, at 100% of their principal amount plus a makewhole premium based on a spread to U. S.  Treasury securities as described in the indenture relating to the notes.
On November 21, 2012, Roper completed a public offering of $400 million aggregate principal amount of 1.850% senior unsecured notes due November 15, 2017 and $500 million aggregate principal amount of 3.125% senior unsecured notes due November 15, 2022.
The notes bear interest at a fixed rate of 1.850% and 3.125% per year, respectively, payable semi-annually in arrears on May 15 and November 15 of each year, beginning May 15, 2013.
Roper may redeem some or all of the notes at any time or from time to time, at 100% of their principal amount plus a makewhole premium based on a spread to U. S.  Treasury securities as described in the indenture relating to the notes.
Stock Options  Stock options are typically granted at prices not less than 100% of market value of the underlying stock at the date of grant.
Stock options typically vest over a period of three to five years from the grant date and expire ten years after the grant date.
The Company recorded $16.6 million, $16.9 million, and $14.8 million of compensation expense relating to outstanding options during 2014, 2013 and 2012, respectively, as a component of general and administrative expenses, primarily at corporate.
The Company estimates the fair value of its option awards using the Black-Scholes option valuation model.
The stock volatility for each grant is measured using the weighted-average of historical daily price changes of the Companys common stock over the most recent period equal to the expected life of the grant.
The expected term of options granted is derived from historical data to estimate option exercises and employee forfeitures, and represents the period of time that options granted are expected to be outstanding.
The risk-free rate for periods within the contractual life of the option is based on the U. S.  Treasury yield curve in effect at the time of grant.
The weighted-average fair value of options granted in 2014, 2013 and 2012 were calculated using the following weighted-average assumptions:


| Accounts receivable $6,916 | Inventories | Prepaid expenses and other assets | Amortizable intangible assets | Property and equipment | Goodwill and tradenames | Other long-term assets | Current portion of long-term debt | Accounts payable | Accrued expenses and other liabilities | Advance ticket sales | Long-term debt | Other long-term liabilities | Total consideration allocated, net of $295.8 million of cash acquired | Goodwill | Tradenames (indefinite lived) | Backlog (1 year amortization period) | Customer relationships (6 year amortization period) | Year ended December 31, | (Dollars in thousands) | Non-GAAP core fee income -1: | Foreign exchange fees | Credit card fees | Deposit service charges | Lending related fees -2 | Letters of credit and standby letters of credit fees | Client investment fees | Total non-GAAP core fee income | Gains on investment securities, net | Gains on derivative instruments, net | Other | GAAP noninterest income |


| For Years Ended December 31 | 2010 | (In millions, except per share data) | TANGIBLE COMMON RATIOS-1 | Ending stockholders’ equity (GAAP) | Less: Ending intangible assets (GAAP) | Ending deferred tax liability related to intangibles (GAAP) | Ending preferred equity (GAAP) | Ending tangible common stockholders’ equity (non-GAAP) | Ending total assets (GAAP) | Less: Ending intangible assets (GAAP) | Ending deferred tax liability related to intangibles (GAAP) | Ending tangible assets (non-GAAP) | End of period shares outstanding | Tangible common stockholders’ equity to tangible assets (non-GAAP) | Tangible common book value per share (non-GAAP) | TIER 1 COMMON RISK-BASED RATIO | Stockholders’ equity (GAAP) | Accumulated other comprehensive (income) loss | Non-qualifying goodwill and intangibles | Disallowed deferred tax assets-2 | Disallowed servicing assets | Qualifying non-controlling interests | Qualifying trust preferred securities | Tier 1 capital (regulatory) | Qualifying non-controlling interests | Qualifying trust preferred securities | Preferred stock | Tier 1 common equity (non-GAAP) | Risk-weighted assets (regulatory) | Tier 1 common risk-based ratio (non-GAAP) |


The following table summarizes NRG's U. S.  coal capacity and the corresponding revenues and average natural gas prices and positions resulting from coal hedge agreements extending beyond December 31, 2014, and through 2018 for the East region:
(a) Net coal capacity represents nominal summer net MW capacity of power generated as adjusted for the Company's ownership position excluding capacity from inactive/mothballed units, see Item 2 - Properties for units scheduled to be deactivated.
(b) Forecasted generation dispatch output (MWh) based on forward price curves as of December 31, 2014, which is then divided by number of hours in a given year to arrive at MW capacity.
The dispatch takes into account planned and unplanned outage assumptions.
(c) Includes amounts under power sales contracts and natural gas hedges.
The forward natural gas quantities are reflected in equivalent MWh based on forward market implied heat rate as of December 31, 2014, and then combined with power sales to arrive at equivalent MWh hedged which is then divided by number of hours in a given year to arrive at MW hedged.
The coal sales include swaps and delta of options sold which is subject to change.
For detailed information on the Company's hedging methodology through use of derivative instruments, see discussion in Item 15 - Note 5, Accounting for Derivative Instruments and Hedging Activities, to the Consolidated Financial Statements.
Includes inter-segment sales from the Company's wholesale power generation business to the retail business.
(d) Percentage hedged is based on total coal sales as described in (c) above divided by the forecasted coal capacity.
(e) Represents U. S.  coal sales, including energy revenue and demand charges, excluding revenues derived from capacity auctions.


35% due primarily to certain undistributed foreign earnings for which no U. S.  taxes are provided because such earnings are intended to be indefinitely reinvested outside the U. S.  As of September 24, 2011, the Company had deferred tax assets arising from deductible temporary differences, tax losses, and tax credits of $3.2 billion, and deferred tax liabilities of $9.2 billion.
Management believes it is more likely than not that forecasted income, including income that may be generated as a result of certain tax planning strategies, together with future reversals of existing taxable temporary differences, will be sufficient to fully recover the deferred tax assets.
The Company will continue to evaluate the realizability of deferred tax assets quarterly by assessing the need for and amount of a valuation allowance.
The Internal Revenue Service (the “IRS”) has completed its field audit of the Company’s federal income tax returns for the years 2004 through 2006 and proposed certain adjustments.
The Company has contested certain of these adjustments through the IRS Appeals Office.
The IRS is currently examining the years 2007 through 2009.
All IRS audit issues for years prior to 2004 have been resolved.
In addition, the Company is subject to audits by state, local, and foreign tax authorities.
Management believes that adequate provisions have been made for any adjustments that may result from tax examinations.
However, the outcome of tax audits cannot be predicted with certainty.
If any issues addressed in the Company’s tax audits are resolved in a manner not consistent with management’s expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs.


| United States-1 1996—2008 | Brazil | China | France | Germany-1 | India | Israel | Japan | Malaysia | Singapore | United Kingdom |


Item 1A.
Risk Factors.
M&T and its subsidiaries could be adversely impacted by various risks and uncertainties which are difficult to predict.
As a financial institution, the Company has significant exposure to market risk, including interest-rate risk, liquidity risk and credit risk, among others.
Adverse experience with these or other risks could have a material impact on the Company’s financial condition and results of operations, as well as on the value of the Company’s financial instruments in general, and M&T’s common stock, in particular.
Volume declines in cement, some agricultural products, and newsprint shipments partially offset the increases.
Operating Expenses


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


| Dividends Paid Per Share | Quarter | First | Second | Third | Fourth | Year |


5.
Basis of Presentation and Summary of Significant Accounting Policies (a) Basis of Presentation On December 30, 2015, US Airways merged with and into American, which is reflected in American’s consolidated financial statements as though the transaction had occurred on December 9, 2013, when a subsidiary of AMR merged with and into US Airways Group.
Thus, the full years of 2015 and 2014 and the period from December 9, 2013 to December 31, 2013 are comprised of the consolidated financial data of American and US Airways.
For the periods prior to December 9, 2013, the financial data reflects the results of American only.
For financial reporting purposes, the transaction constituted a transfer of assets between entities under common control and was accounted for in a manner similar to the pooling of interests method of accounting.
Under this method, the carrying amount of net assets recognized in the balance sheets of each combining entity are carried forward to the balance sheet of the combined entity and no other assets or liabilities are recognized.
The preparation of financial statements in accordance with accounting principles generally accepted in the United States (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities at the date of the financial statements.
Actual results could differ from those estimates.
The most significant areas of judgment relate to passenger revenue recognition, impairment of goodwill, impairment of long-lived and
The following tables set forth the income yield and investment income, excluding realized investment gains (losses) and non-hedge accounting derivative results, for each major investment category of our Japanese operations’ general account for the periods indicated.


| Year Ended December 31, | 2012 | ($ in millions) | Revenues | Operating costs and expenses | Operating profit |


| Pension Benefits | U.S. Plans | 2016 | Weighted Average Assumptions at December 31 | Discount rate | Average rate of increase in compensation | Weighted Average Assumptions Used to Determine Net Benefit Cost for the Year Ended December 31 | Discount rate - Service Cost | Effective interest rate on benefit obligation | Expected long-term rate of return on assets | Average rate of increase in compensation | Pension Benefits | U.S. Plans | 2015 | Service cost | Interest cost | Expected return on assets | Amortization of prior service costs/(credits) | Net remeasurement (gain)/loss | Separation programs/other | Settlements and curtailments | Net periodic benefit cost/(income) |


| Pension Benefits Other Postretirement Benefits | Years Ended December 31 | Service cost | Interest cost | Expected return on plan assets | Net amortization | Termination benefits | Curtailments | Settlements | Net periodic benefit cost |


| 2010 Missouri Credit Agreement 2010 Genco Credit Agreement 2010 Illinois Credit Agreement | Ameren | Ameren Missouri | Ameren Illinois(a) | Genco(a) |


| Fiscal Year Ending March 31, Operating Leases  (in $000’s) | 2009 | 2010 | 2011 | 2012 | 2013 | Thereafter | Total future minimum lease payments |


| December 31, | (In millions) | Balance Sheet data: | Current assets | Property, plant and equipment, net | Noncurrent regulatory assets | Goodwill | Other deferred debits and other assets | Total assets | Current liabilities | Long-term debt, including long-term debt to financing trusts | Noncurrent regulatory liabilities | Other deferred credits and other liabilities | Preferred securities of subsidiary | Noncontrolling interest | BGE preference stock not subject to mandatory redemption | Shareholders’ equity | Total liabilities and shareholders’ equity |


| December 31 | (Dollars in millions) | Trading account assets | U.S. government and agency securities-1 | Corporate securities, trading loans and other | Equity securities | Non-U.S.sovereign debt | Mortgage trading loans and asset-backed securities | Total trading account assets | Trading account liabilities | U.S. government and agency securities | Equity securities | Non-U.S.sovereign debt | Corporate securities and other | Total trading account liabilities |


Fair value, which is primarily based on quoted market price of the related trust preferred securities at December 31, 2007 and 2006, was $250.8 million and $316.3 million, respectively, for the 6.20% junior subordinated debt securities and $221.2 million for the 7.85% junior subordinated debt securities at December 31, 2006.
Interest expense incurred in connection with these junior subordinated notes was $35.3 million, $37.4 million and $37.4 million for the years ended December 31, 2007, 2006 and 2005, respectively.
Capital Trust II is a wholly-owned finance subsidiary of Holdings.
Capital Trust was dissolved upon the completion of the redemption of the trust preferred securities on November 15, 2007.
Holdings considers that the mechanisms and obligations relating to the trust preferred securities, taken together, constitute a full and unconditional guarantee by Holdings of Capital Trust IIs payment obligations with respect to their trust preferred securities.
Capital Trust II will redeem all of the outstanding trust preferred securities when the junior subordinated debt securities are paid at maturity on March 29, 2034.
The Company may elect to redeem the junior subordinated debt securities, in whole or in part, at any time on or after March 30, 2009.
If such an early redemption occurs, the outstanding trust preferred securities would also be proportionately redeemed.
There are certain regulatory and contractual restrictions on the ability of Holdings operating subsidiaries to transfer funds to Holdings in the form of cash dividends, loans or advances.
The insurance laws of the State of Delaware, where Holdings direct insurance subsidiaries are domiciled, require regulatory approval before those subsidiaries can pay dividends or make loans or advances to Holdings that exceed certain statutory thresholds.
In addition, the terms of Holdings Credit Facility (discussed in Note 5) require Everest Re, Holdings principal insurance subsidiary, to maintain a certain statutory surplus level as measured at the end of each fiscal year.
At December 31, 2007, $2,595.1 million of the $3,269.7 million in net assets of Holdings consolidated subsidiaries were subject to the foregoing regulatory restrictions.9 .


| September 30, | 2010 | (In millions) | Warranty liability, beginning of year | Warranties issued | Changes in liability for pre-existing warranties | Settlements made | Warranty liability, end of year |


| Numberof Shares Weighted-Average  GrantDate  Fair Value | Non-vested at December 31, 2008 | Granted | Vested | Forfeited | Non-vested at December 31, 2009 | Granted | Vested | Forfeited | Non-vested at December 31, 2010 | Granted | Vested | Forfeited | Non-vested at December 31, 2011 | Year Ended December 31 | 2018 | (Dollars in millions) | Salaries and employee benefits | Net occupancy expense | Furniture and equipment expense | Outside services | Professional, legal and regulatory expenses | Marketing | FDIC insurance assessments | Branch consolidation, property and equipment charges | Visa class B shares expense | Provision (credit) for unfunded credit losses | Loss on early extinguishment of debt | Other miscellaneous expenses | $3,570 |


All assets and liabilities were classified as Level 1 with the exception of commodity contracts, which were classified as Level 3.
Cash Equivalents: Cash equivalents and restricted cash equivalents consist of money market funds with daily liquidity.
Short-term debt instruments classified as cash equivalents on the consolidated balance sheets are not included since they are recorded at amortized cost.
Nonqualified Deferred Compensation Plan Assets and Liabilities: The nonqualified deferred compensation plan assets consist of mutual funds, which are valued using the daily quoted net asset values.
CMS Energy and Consumers value their nonqualified deferred compensation plan liabilities based on the fair values of the plan assets, as they reflect the amount owed to the plan participants in accordance with their investment elections.
CMS Energy and Consumers report the assets in other non-current assets and the liabilities in other non-current liabilities on their consolidated balance sheets.
DB SERP Assets: The DB SERP cash equivalents consist of a money market fund with daily liquidity.
During 2017, CMS Energy and Consumers sold the mutual fund securities and used the proceeds to purchase U. S.  Treasury debt securities.
CMS Energy and Consumers value the U. S.  Treasury debt securities at their daily quoted market prices.
Prior to the sale, the DB SERP mutual funds held primarily fixed-income instruments of varying maturities.
CMS Energy and Consumers report their DB SERP assets in other non-current assets on their consolidated balance sheets.
For additional details about DB SERP securities, see Note 7, Financial Instruments.
Performance Graph The following graph compares the performance of our common stock with that of the S&P 500 Index and the S&P 500 Healthcare Equipment Index.
The cumulative total return listed below assumes an initial investment of $100 on December 31, 2008 and reinvestment of dividends.
COMPARISON OF FIVE YEAR CUMULATIVE TOTAL RETURN


| Year ended April 30, 2013 2012 2011 | Balance, beginning of the year | Additions based on tax positions related to prior years | Reductions based on tax positions related to prior years | Additions based on tax positions related to the current year | Reductions related to settlements with tax authorities | Expiration of statute of limitations | Foreign currency translation | Other | Balance, end of the year |


Note 17: Fair Values of Financial Instruments The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: Current assets and current liabilitiesThe carrying amounts reported in the Consolidated Balance Sheets for current assets and current liabilities, including revolving credit debt, due to the short-term maturities and variable interest rates, approximate their fair values.
Preferred stock with mandatory redemption requirements and long-term debtThe fair values of preferred stock with mandatory redemption requirements and long-term debt are categorized within the fair value hierarchy based on the inputs that are used to value each instrument.
The fair value of long-term debt classified as Level 1 is calculated using quoted prices in active markets.
Level 2 instruments are valued using observable inputs and Level 3 instruments are valued using observable and unobservable inputs.
The fair values of instruments classified as Level 2 and 3 are determined by a valuation model that is based on a conventional discounted cash flow methodology and utilizes assumptions of current market rates.
As a majority of the Companys debts do not
long-term liabilities.
The value of the Companys deferred compensation obligations is based on the market value of the participants notional investment accounts.
The notional investments are comprised primarily of mutual funds, which are based on observable market prices.
Mark-to-market derivative asset and liabilityThe Company utilizes fixed-to-floating interest-rate swaps, typically designated as fair-value hedges, to achieve a targeted level of variable-rate debt as a percentage of total debt.
The Company also employs derivative financial instruments in the form of variable-to-fixed interest rate swaps, classified as economic hedges, in order to fix the interest cost on some of its variable-rate debt.
The Company uses a calculation of future cash inflows and estimated future outflows, which are discounted, to determine the current fair value.
Additional inputs to the present value calculation include the contract terms, counterparty credit risk, interest rates and market volatility.
Other investmentsOther investments primarily represent money market funds used for active employee benefits.
The Company includes other investments in other current assets.


| Years ended June 30 | 2009 | Stock Options: | Weighted average grant date fair value | Weighted average risk-free interest rate | Dividend yield | Expected option life in years | Volatility | ESPP Purchase rights: | Weighted average risk-free interest rate | Dividend yield | Expected option life | Volatility |


| Net new stores 4.7% | Comparable store sales gain | Total revenue increase |


| 2007 $117 | 2008 | 2009 | 2010 | 2011 | Next 5 years |


| December 31, | (In thousands) | Commercial | Commercial real estate | Consumer | Outstanding balance | Carrying amount | Less ALLL | Carrying amount, net |


| Pension Postretirement | (dollars in millions) | Fiscal 2008 | Fiscal 2009 | Fiscal 2010 | Fiscal 2011 | Fiscal 2012 | Fiscal 2013-2017 |


| Plan Category Number of Securitiesto be Issued UponExercise ofOutstanding Options, Warrants and Rights (A)(B) Weighted-AverageExercise Price ofOutstanding Options, Warrants and Rights Number of SecuritiesRemaining Available forFuture Issuance UnderEquity CompensationPlans (ExcludingSecurities Reflected in Column (A)) (C) | Equity compensation plans approved by security holders |


Dividends During fiscal 2014, Applieds Board of Directors declared four quarterly cash dividends of $0.10 per share each.
During fiscal 2013, Applieds Board of Directors declared three quarterly cash dividends of $0.10 per share each and one quarterly cash dividend of $0.09 per share.
During fiscal 2012, Applieds Board of Directors declared three quarterly cash dividends of $0.09 per share each and one quarterly cash dividend of $0.08.
Dividends declared during fiscal 2014, 2013 and 2012 totaled $487 million, $469 million and $438 million, respectively.
Applied currently anticipates that it will continue to pay cash dividends on a quarterly basis in the future, although the declaration and amount of any future cash dividends are at the discretion of the Board of Directors and will depend on Applieds financial condition, results of operations, capital requirements, business conditions and other factors, as well as a determination that cash dividends are in the best interests of Applieds stockholders.
Total Revenue for Global Wealth and Investment Management increased $1.9 billion, or 47 percent, for 2004.
The Provision for Credit Losses decreased $31 million to a negative $20 million.
Total Noninterest Expense increased $1.3 billion to $3.4 billion.
Net Income increased 28 percent to $1.6 billion.
SVA decreased $72 million, or eight percent, as the increase in cash basis earnings was more than offset by the increase in the capital allocation that resulted from the Merger.
Net Interest Income increased 46 percent to $2.9 billion due to growth in Deposits in both Premier Banking and The Private Bank, loan growth in The Private Bank, and the addition of FleetBoston earning assets to the portfolio.
Net results of ALM activities also drove the increase.
Average Deposits increased $29.1 billion, or 54 percent, primarily due to migration of account balances from Consumer Banking to Premier Banking, the impact of the Merger, as well as increased deposit-taking in The Private Bank.
Average Loans and Leases increased $6.4 billion, or 17 percent, due to the inclusion of the FleetBoston Loans and Leases and increased loan activity in The Private Bank.
Client Assets


| 2004 2003 | Gain on sale of joint venture interests | Gain on land sales | Impairment adjustment | Total |


| Cash $108 | Other current assets | Intangible assets | Deferred income taxes | Goodwill | Other non-current assets | Total assets acquired | Liabilities assumed: | Current liabilities | Deferred income taxes | Borrowings | Other non-current liabilities | Total liabilities assumed | Net assets acquired |


| Shares Weighted Average  Grant-Date  Fair Value | Non-vested at May 31, 2008 | Granted | Vested | Forfeited | Non-vested at May 31, 2009 | Granted | Vested | Forfeited | Non-vested at May 31, 2010 |


| Year ended December 31,(in millions) 2014 2013 2012 | Asset management fees | Investment management fees(a) | All other asset management fees(b) | Total asset management fees | Total administration fees(c) | Commissions and other fees | Brokerage commissions | All other commissions and fees | Total commissions and fees | Total asset management, administration and commissions |


| Years Ending December 31, (Dollars in Millions) | 2006 | 2007 | 2008 | 2009 | 2010 | Later years | Total minimum payments | Less total minimum sublease rentals | Net minimum rental commitments |


| December 31, 2004 $1,054 | December 31, 2005 | December 31, 2006 | December 31, 2007 |


| Years Ended December 31, | 2017 | Duke Energy | Duke Energy Carolinas | Progress Energy | Duke Energy Progress | Duke Energy Florida | Duke Energy Ohio | Duke Energy Indiana | Piedmont(a) |


| As of September 30, | 2013 | Land/LotsOwned -2 | East | Midwest | Southeast | South Central | Southwest | West | 126,600 | 70% | September 30, 2019 | Land/LotsOwned -1 | East | Midwest | Southeast | South Central | Southwest | West | 121,400 | 40% |


| Remaining balance | December 31, 2017 | (In thousands) | Commercial, financial, leasing, etc. | Commercial real estate | Residential real estate | Consumer | Total |


| December 31, 2012 | Public | Carrying amount | (in millions) | Three months or less | Greater than three to six months | Greater than six to nine months | Greater than nine to twelve months | Greater than twelve to twenty-four months | Greater than twenty-four to thirty-six months | Greater than thirty-six months | Total fixed maturities, available-for-sale |


Notes to Consolidated Financial Statements Bank Subsidiaries GS Bank USA, an FDIC-insured, New York State-chartered bank and a member of the Federal Reserve System, is supervised and regulated by the Federal Reserve Board, the FDIC, the New York State Department of Financial Services and the Consumer Financial Protection Bureau, and is subject to minimum capital requirements (described below) that are calculated in a manner similar to those applicable to bank holding companies.
GS Bank USA computes its capital ratios in accordance with the regulatory capital requirements currently applicable to state member banks, which are based on Basel 1 as implemented by the Federal Reserve Board, for purposes of assessing the adequacy of its capital.
Under the regulatory framework for prompt corrective action that is applicable to GS Bank USA, in order to be considered a well-capitalized depository institution, GS Bank USA must maintain a Tier 1 capital ratio of at least 6%, a total capital ratio of at least 10% and a Tier 1 leverage ratio of at least 5%.
GS Bank USA has agreed with the Federal Reserve Board to maintain minimum capital ratios in excess of these wellcapitalized levels.
Accordingly, for a period of time, GS Bank USA is expected to maintain a Tier 1 capital ratio of at least 8%, a total capital ratio of at least 11% and a Tier 1 leverage ratio of at least 6%.
As noted in the table below, GS Bank USA was in compliance with these minimum capital requirements as of December 2012 and December 2011.
The table below presents information regarding GS Bank USAs regulatory capital ratios under Basel 1 as implemented by the Federal Reserve Board.


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


| 2003 2002 2001 | (Millions) | Computation Products | Memory Products | All Other | Total |


| Pension Benefits Other Postretirement Benefits | For the years ended December 31, | 2018 | Fair value of plan assets — beginning of year | Actual return on plan assets | Employer contributions | Benefits paid [1] | Expenses paid | Settlements | Foreign exchange adjustment | Fair value of plan assets — end of year | Funded status — end of year |


OTHER OPERATING/PERFORMANCE AND FINANCIAL STATISTICS We report a number of key performance measures weekly to the Association of American Railroads (AAR).
We provide this data on our website at www.
up.
com/investor/aar-stb_reports/index.
htm.
Operating/Performance Statistics Railroad performance measures are included in the table below:


The Corporate & Other segment consists of net investment income or loss on corporate level assets, including excess capital held in the Companys subsidiaries and other unallocated equity and other revenues as well as unallocated corporate expenses.
The Corporate & Other segment also includes revenues and expenses of consolidated investment entities.
The accounting policies of the segments are the same as those of the Company, except for the method of capital allocation and the accounting for gains (losses) from intercompany revenues and expenses, which are eliminated in consolidation.
The following is a summary of assets by segment:


| Comparable store sales impact -2.9% | Non-comparable sales channels-1 | Net new stores | Total revenue decrease |


| Amount (In Millions) | 2012 net revenue | Mark-to-market | Nuclear volume | Nuclear fuel expenses | Nuclear realized price changes | Other | 2013 net revenue |


On January 1, 2007, new authoritative guidance issued by the FASB for the accounting and reporting of uncertain tax positions was adopted.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Liquidity and Capital Resources – CNA Financial – (Continued) The table below reflects the various group ratings issued by A. M.  Best Company (“A.
M.  Best”), Fitch Ratings (“Fitch”), Moody’s Investors Service (“Moody’s”) and Standard & Poor’s (“S&P”) for the property and casualty and life companies.
The table also includes the ratings for CNA’s senior debt and The Continental Corporation (”Continental”) senior debt.


| Fiscal Years Ended | April 3, 2010 | (millions) | Net cash provided by operating activities | Net cash used in investing activities | Net cash used in financing activities | Effect of exchange rate changes on cash and cash equivalents | Net increase (decrease) in cash and cash equivalents |


| 2009 2008 2007 | Adjustment or impairment of acquired assets and obligations, net | Consulting and professional fees | Employee severance and retention, including share-based compensation acceleration | Information technology integration | In-process research & development | Vacated facilities | Facility and employee relocation | Distributor acquisitions | Certain litigation matters | Contract terminations | Other | Acquisition, integration, realignment and other |


Other Acquisitions During the second quarter of 2007, we acquired all of the outstanding stock of both Hypnion, Inc.  (Hypnion), a privately held neuroscience drug discovery company focused on sleep disorders, and Ivy Animal Health, Inc.  (Ivy), a privately held applied research and pharmaceutical product development company focused on the animal health industry, for $445.0 million in cash.
The acquisition of Hypnion provided us with a broader and more substantive presence in the area of sleep disorder research and ownership of HY10275, a novel Phase II compound with a dual mechanism of action aimed at promoting better sleep onset and sleep maintenance.
This was Hypnions only signifi cant asset.
For this acquisition, we recorded an acquired IPR&D charge of $291.1 million, which was not deductible for tax purposes.
Because Hypnion was a development-stage company, the transaction was accounted for as an acquisition of assets rather than as a business combination and, therefore, goodwill was not recorded.
The acquisition of Ivy provides us with products that complement those of our animal health business.
This acquisition has been accounted for as a business combination under the purchase method of accounting.
We allocated $88.7 million of the purchase price to other identifi able intangible assets, primarily related to marketed products, $37.0 million to acquired IPR&D, and $25.0 million to goodwill.
The other identifi able intangible assets are being amortized over their estimated remaining useful lives of 10 to 20 years.
The $37.0 million allocated to acquired IPR&D was charged to expense in the second quarter of 2007.
Goodwill resulting from this acquisition was fully allocated to the animal health business segment.
The amount allocated to each of the intangible assets acquired, including goodwill of $25.0 million and the acquired IPR&D of $37.0 million, was deductible for tax purposes.


| As of and for the Year Ended December 31, | (dollars in millions) | Net interest income-1 | 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 leases (period-end)(2) | Average Balances: | Total assets | Total loans and leases-2 | Deposits | Interest-earning assets | Key Performance Metrics: | Net interest margin | Efficiency ratio | Average loans to average deposits ratio-3 | Return on average total tangible assets | (dollar amounts in millions) | December 31 | Exploration and production (E&P) | Midstream | Services | Total Energy business line | As a percentage of total Energy loans |


| Business Date Acquired Percentage Ownership | Fiscal 2008 | Discover merchant portfolio | LFS Spain | Money transfer branch locations | Fiscal 2007 | HSBC Asia-Pacific merchant acquiring business | Diginet d.o.o. | Money transfer branch locations | Fiscal 2006 | Costamar money transfer branch locations | Total | Goodwill | Customer-related intangible assets | Contract-based intangible assets | Property and equipment | Other current assets | Total assets acquired | Current liabilities | Minority interest in equity of subsidiary | Net assets acquired |


| At or for the year ended December 31 | Dollars in millions, except as noted | BALANCESHEETHIGHLIGHTS | Assets | Loans | Allowance for loan and lease losses | Interest-earning deposits with banks | Investment securities | Loans held for sale | Goodwill and other intangible assets | Equity investments | Noninterest-bearing deposits | Interest-bearing deposits | Total deposits | Transaction deposits (c) | Borrowed funds (d) | Total shareholders’ equity | Common shareholders’ equity | CLIENTASSETS(billions) | Discretionary assets under management | Nondiscretionary assets under management | Total assets under administration | Brokerage account assets (e) | Total client assets | SELECTEDRATIOS | Net interest margin (f) | Noninterest income to total revenue | Efficiency | Return on | Average common shareholders’ equity | Average assets | Loans to deposits | Dividend payout | Tier 1 common | Tier 1 risk-based | Common shareholders’ equity to total assets | Average common shareholders’ equity to average assets | SELECTEDSTATISTICS | Employees | Retail Banking branches | ATMs | Residential mortgage servicing portfolio (billions) | Commercial mortgage servicing portfolio (billions) |


| Percentage Increase/(Decrease) | (in millions) | Periodic Premium Sales By Product*: | Universal life | Variable universal life | Term life | Whole life/other | Total |


| 2011 2010 2009 | Interest and dividend income | Other expense, net | Total other income and expense |


Cash and Cash Equivalents At December 31, 2018, Evergy had approximately $160.3 million of cash and cash equivalents on hand.
Under the Amended Merger Agreement, Great Plains Energy was required to have not less than $1.25 billion in cash and cash equivalents on its balance sheet at the closing of the merger with Westar Energy.
In 2018, Evergy primarily utilized this excess cash to repurchase approximately $1,042 million of common stock.
Evergy anticipates that its remaining excess cash will also be returned to shareholders through the repurchase of common stock.
Managements Discussion and Analysis of Financial Condition and Results of Operations  (continued) (Amounts in Millions, Except Per Share Amounts) Financing Activities Net cash used in financing activities during 2015 primarily related to the repurchase of our common stock and payment of dividends.
We repurchased 13.6 shares of our common stock for an aggregate cost of $285.2, including fees, and made dividend payments of $195.5 on our common stock.
Net cash used in financing activities during 2014 primarily related to the purchase of long-term debt, the repurchase of our common stock and payment of dividends.
We redeemed all $350.0 in aggregate principal amount of our 6.25% Notes, repurchased 14.9 shares of our common stock for an aggregate cost of $275.1, including fees, and made dividend payments of $159.0 on our common stock.
This was offset by the issuance of $500.0 in aggregate principal amount of our 4.20% Notes.
Foreign Exchange Rate Changes The effect of foreign exchange rate changes on cash and cash equivalents included in the Consolidated Statements of Cash Flows resulted in a decrease of $156.1 in 2015.
The decrease was primarily a result of the U. S.  Dollar being stronger than several foreign currencies, including the Australian Dollar, Brazilian Real, Canadian Dollar, Euro and South African Rand as of December 31, 2015 compared to December 31, 2014.
The effect of foreign exchange rate changes on cash and cash equivalents included in the Consolidated Statements of Cash Flows resulted in a decrease of $101.0 in 2014.
The decrease was primarily a result of the U. S.  Dollar being stronger than several foreign currencies, including the Australian Dollar, Brazilian Real, Canadian Dollar and Euro as of December 31, 2014 compared to December 31, 2013.


| Impairment of property carrying values $50.0 | Real estate under development | Investments in other real estate investments | Marketable securities and other investments | Investments in real estate joint ventures | Total impairment charges | Series A preferred stock | (in millions) | Outstanding shares at January 1, 2008 | Shares issued | Treasury stock acquired | Outstanding shares at December 31, 2008 | Shares issued | Treasury stock acquired | Outstanding shares at December 31, 2009 | Shares issued | Treasury stock acquired | Outstanding shares at December 31, 2010 | For the three months ended | December 31 | (in millions, except per share data) | 2010 | Total revenues | Total expenses | Net income | Net income available to common stockholders | Basic earnings per common share for net income available to common stockholders | Diluted earnings per common share for net income available to common stockholders | 2009 | Total revenues | Total expenses | Net income | Net income available to common stockholders | Basic earnings per common share for net income available to common stockholders | Diluted earnings per common share for net income available to common stockholders |


Under customer usage agreements, the Company installs certain equipment (for example, a ThinPrep Processor or a ThinPrep Imaging System) at customer sites and customers commit to purchasing minimum quantities of disposable products at a stated price (generally including a usage fee for the equipment) over a defined contract term, which is typically between three and five years.
Revenue is recognized over the term of the customer usage agreement as disposable products are delivered.
The Company also rents certain equipment to customers.
Revenues from rental agreements are recorded over the term of the rental agreements.
Accounts Receivable and Reserves The Company records reserves for doubtful accounts based upon a specific review of all outstanding invoices, known collection issues and historical experience.
The Company regularly evaluates the collectability of its trade accounts receivables and performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and its assessment of the customers current credit worthiness.
These estimates are based on specific facts and circumstances of particular orders, analysis of credit memo data and other known factors.
Accounts receivable reserve activity for fiscal years 2011, 2010 and 2009 is as follows:


The tax rate for fiscal 2019 was below the U. S.  statutory tax rate of 21% partially due to lower statutory tax rates applicable to our operations in the foreign jurisdictions from which we earn income and tax incentives such as the foreign derived intangible income deduction and research and development tax credits.
These items are partially offset by the global intangible low-tax income (GILTI) tax.
The tax rate for f fiscal 2019 includes a $17.2 million tax benefit from a voluntary accounting policy change in the statutory statements of a foreign f subsidiary, an $11.2 million tax benefit from an increase in tax credits upon filing our fiscal 2018 federal income tax return and excess tax benefits from stock-based compensation payments of $28.7 million.
Similarly, our tax rate for fiscal 2018 was below our then blended U. S.  federal statutory tax rate of 23.4%, primarily due to lower statutory tax rates applicable to our operations in the foreign jurisdictions in which we earn income and $25.6 million of tax benefit related to the release of uncertain tax positions due to laapses in statute of limitations.
In addition, our effective tax rate for fiscal f 2018 includes a provisional estimate for f a discrete tax benefit of $637.0 million from remeasuring our U. S.  deferred tax assets and liaabilities at the lower 21.0% U. S.  federal statutory tax rate and a provisional estimate of $691.0 million for the discrete tax charge from the Tax Legislation’s one-time transition tax associated with our undistributed foreign earnings, which is comprised of a $755.0 million transitional tax less a deferred tax liability of $64.0 million that was recorded in prior years and excess tax benefits from stock-based compensation payments of $26.2 million.
Non-U.
S.  jurisdictions accounted for approximately 75.9% of our total revenues for both fiscal 2019 and fiscal 2018.
This revenue generated outside of the U. S.  results in a material portion of our pretax income being taxed outside the U. S.  In fiscal 2019, this was primarily in Ireland and Singapore, at tax rates ranging from 12.5% to 17% and in fiscal 2018, this was primarily in Bermuda, Ireland and Singapore, at tax rates ranging from 0 to 33.3%.
The impact on our provision for income taxes on income earned in fforeign jurisdictions being taxed at rates different than the U. S.  federal statutory rate was a benefit of approximately $242.9 million and a fforeign effective tax rate of approximately 21.1% for fiscal 2019 as compared to a benefit of approximately $420.8 million and a fforeign effective tax rate of approximately 5.2% for fiscal 2018.
Our foreign effective tax rates for both periods are inclusive of certain non-deductible expenses which can result in tax rates higher than the applicable statutory tax rates.
In addition, our effective income tax rate can be impacted each year by amounts for discrete factors or events and acquisition-related accounting adjustments.
See Note 12, Income Taxes, of the Notes to Consolidated Financial Statements contained in Item 8 of this Annual Report on Form 10-K for further discussion.


The firm, in its capacity as an agency lender, indemnifies most of its securities lending customers against losses incurred in the event that borrowers do not return securities and the collateral held is insufficient to cover the market value of the securities borrowed.
In the ordinary course of business, the firm provides other financial guarantees of the obligations of third parties (e. g. , standby letters of credit and other guarantees to enable clients to complete transactions and fund-related guarantees).
These guarantees represent obligations to make payments to beneficiaries if the guaranteed party fails to fulfill its obligation under a contractual arrangement with that beneficiary.
The table below presents certain information about derivatives that meet the definition of a guarantee and certain other guarantees.
The maximum payout in the table below is based on the notional amount of the contract and therefore does not represent anticipated losses.
See Note 7 for further information about credit derivatives that meet the definition of a guarantee which are not included below.
Because derivatives are accounted for at fair value, the carrying value is considered the best indication of payment/ performance risk for individual contracts.
However, the carrying values below exclude the effect of a legal right of setoff that may exist under an enforceable netting agreement and the effect of netting of collateral posted under enforceable credit support agreements.


| Quarterly Period Ending (in millions, except per share amounts) Number of shares purchased Cost of shares repurchased Average price paid per share Remaining capacity under share repurchase authorization | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | Total |


Consolidated Borrowings Current capital markets activities for the Company on a consolidated basis principally consist of unsecured short-term and long-term borrowings by Prudential Funding and Prudential Financial, unsecured third party bank borrowings, and asset-based or secured financing.
As of December 31, 2010, we were in compliance with all debt covenants related to the borrowings in the table below.
The following table sets forth total consolidated borrowings of the Company as of the dates indicated:


| Measurement PointDecember 31 Booking Holdings Inc. NASDAQComposite Index S&P 500Index RDG InternetComposite | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 |


| Year Ended December 31, 2005 Year Ended December 31, 2004 | Financial Services Businesses | (in millions, except per share amounts) | Net income, as reported | Add: Total employee stock option compensation expense included in reported net income, net of taxes | Deduct: Total employee stock option compensation expense determined under the fair value based method for all awards, net oftaxes | Pro forma net income | Earnings per share: | Basic—as reported | Basic—pro forma | Diluted—as reported | Diluted—pro forma |


| (In millions) 2019 2020 2021 2022 2023 Thereafter Total-2 | As of December 31, 2018 | Long-term debt-1 | Weighted average interest rates |


| December 31, | In millions of dollars | Consumer loans | In U.S. offices | Mortgage and real estate-1 | Installment, revolving credit and other | Cards | Commercial and industrial | Total | In offices outside the U.S. | Mortgage and real estate-1 | Installment, revolving credit and other | Cards | Commercial and industrial | Lease financing | Total | Total consumer loans | Unearned income-2 | Consumer loans, net of unearned income | Corporate loans | In U.S. offices | Commercial and industrial | Financial institutions | Mortgage and real estate-1 | Installment, revolving credit and other | Lease financing | Total | In offices outside the U.S. | Commercial and industrial | Financial institutions | Mortgage and real estate-1 | Installment, revolving credit and other | Lease financing | Governments and official institutions | Total | Total corporate loans | Unearned income-3 | Corporate loans, net of unearned income | Total loans—net of unearned income | Allowance for loan losses—on drawn exposures | Total loans—net of unearned incomeand allowance for credit losses | Allowance for loan losses as a percentage of total loans—net of unearned income-4 | Allowance for consumer loan losses as a percentage oftotal consumer loans—net of unearned income-4 | Allowance for corporate loan losses as a percentage oftotal corporate loans—net of unearned income-4 |


| Shares Weighted Average Grant-date Fair Value | Non-vested shares at January 1 | Granted | Deferred | Vested | Forfeited | Non-vested shares at December 31 |


| Equity Price Exposure to Pretax Income | Equity Price Decline 10% | (in millions) | Asset-based management and distribution fees-1 | DAC and DSIC amortization-2(3) | Variable annuity riders: | GMDB and GMIB-3 | GMWB | GMAB | DAC and DSIC amortization-4 | Total variable annuity riders | Macro hedge program-5 | Equity indexed annuities | Certificates | Indexed universal life insurance | Total |


Shareholder Return Performance The line graph below compares the annual percentage change in Ball Corporation’s cumulative total shareholder return on its common stock with the cumulative total return of the Dow Jones Containers & Packaging Index and the S&P Composite 500 Stock Index for the five-year period ended December 31, 2010.
It assumes $100 was invested on December 31, 2005, and that all dividends were reinvested.
The Dow Jones Containers & Packaging Index total return has been weighted by market capitalization.


| (Thousands of Barrels per Day) 2004 2003 2002 | Gasoline | Distillates | Propane | Feedstocks and Special Products | Heavy Fuel Oil | Asphalt | TOTAL | Matching Buy/Sell Volumes included in above |


| SPP Total Portfolio | 2016 | Rental revenues-1 | HCP share of unconsolidated JV revenues | Operating expenses | HCP share of unconsolidated JV share of operating expenses | NOI | Non-cash adjustments to NOI | Adjusted NOI | Non-SPP adjusted NOI | SPP adjusted NOI | Adjusted NOI % change | Property count-2 | Average occupancy | Average occupied sq. ft. | Average annual total revenues per occupied sq. ft. | Average annual rental revenues per occupied sq. ft. |


| December 31, 2012 | Reporting Unit | Retail Brokerage | Market Making | Total goodwill |


Preferred Stock 2.822% Redeemable Preferred Stock On December 23, 2014, NRG and the Credit Suisse Group amended and restated its 250,000 shares of 3.625% Convertible Perpetual Preferred Stock, or 3.625% Preferred Stock, which is treated as redeemable preferred stock, initially issued on August 11, 2005 to the Credit Suisse Group in a private placement.
The amendment resulted in a reduction of the rate from 3.625% to 2.822% and is hereby referred to as the 2.822% Preferred Stock.
The transaction was accounted for as an extinguishment of the 3.625% Preferred Stock and the issuance of new 2.822% Preferred Stock.
The loss on extinguishment of the 3.625% Preferred Stock of $42 million represents the increase in redeemable preferred stock as the Company recorded the 2.822% Preferred Stock at a fair value of $291 million in connection with the amendment.
The loss on extinguishment of $42 million as well as $5 million in consent fees paid to Credit Suisse, are recorded as a dividend on the preferred shares.
This amount reduces net income to arrive at net income/(loss) available to NRG common stockholders in the calculation of earnings per share.
The 2.822% Preferred Stock amount is located after the liabilities but before the stockholders' equity section on the balance sheet, due to the fact that the preferred shares can be redeemed in cash by the stockholder.
The 2.822% Preferred Stock has a liquidation preference of $1,378 per share.
Holders of the 2.822% Preferred Stock are entitled to receive, out of legally available funds, cash dividends at the rate of 2.822% per annum, or $28.22 per share per year, payable in cash quarterly in arrears commencing on December 30, 2014.


Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 13.
Employee Benefit Plans The Company provides substantially all domestic employees and employees at certain international subsidiaries with pension benefits.
The Company also provides substantially all domestic salaried employees with postretirement health care and life insurance benefits.
The Company has savings and investment plans available to employees.
The Company also maintains stock ownership plans for qualifying employees.
The Company contributes shares of its stock to the plans to match qualifying employee contributions.
Employees have the choice of retaining Company stock in their accounts or diversifying the shares into other investment options.
Expense is measured and recorded based upon the fair market value of the stock contributed to the plans each month.
The number of shares designated for use in the plans is not significant compared to the shares outstanding for the periods presented.
Assets of the Companys defined contribution savings plans consist primarily of listed common stocks and pooled funds.
The Companys defined contribution savings plans held 16.4 million shares of Company common stock at June 30, 2008, with a market value of $555 million.
Cash dividends received on shares of Company common stock held by these plans during the year ended June 30, 2008 were $9 million.


The Firm has created structured commercial loan vehicles managed by third parties, in which loans are purchased from third parties or through the Firms syndication and trading functions and funded by issuing commercial paper.
Investors provide collateral and have a first risk of loss up to the amount of collateral pledged.
The Firm retains a second-risk-of-loss position for these vehicles and does not absorb a majority of the expected losses of the vehicles.
Documentation includes provisions intended, subject to certain conditions, to enable JPMorgan Chase to terminate the transactions related to a particular loan vehicle if the value of the relevant portfolio declines below a specified level.
The amount of the commercial paper issued by these vehicles totaled $5.3 billion as of December 31, 2003, and $7.2 billion as of December 31, 2002.
JPMorgan Chase was committed to provide liquidity to these VIEs of up to $8.0 billion at December 31, 2003, and $12.0 billion at December 31, 2002.
The Firms maximum exposure to loss to these vehicles at December 31, 2003, was $5.5 billion, which reflects the netting of collateral and other program limits.


(1) Unrealized gains or losses on short-term investments and restricted cash and short-term investments are recorded in accumulated other comprehensive loss at each measurement date.
(2) The Company’s short-term investments mature in one year or less except for $1.1 billion of corporate obligations and $575 million of bank notes/certificates of deposit/time deposits.
There were no Level 1 to Level 2 transfers during the year ended December 31, 2014.


approximately $219.3 million, that we acquired in connection with our business combination with Cytyc, and an increase in revenues from our Breast Health products of approximately $172.2 million.
Breast Health product sales increased 31% in fiscal 2008 compared to fiscal 2007, primarily due to a $97.0 million increase in worldwide digital mammography system sales, the addition of $33.9 million of product sales of the MammoSite Radiation Therapy System, a $23.6 million increase in breast biopsy device sales from Suros and an increase of $21.5 million in product sales of the MammoPad breast cushion.
Partially offsetting these increases was a decrease of $6.4 million in digital array sales to an OEM as we phase out of selling these arrays to third parties.
The MammoSite system was acquired in connection with our business combination with Cytyc in October 2007 and the MammoPad breast cushion was acquired in connection with our BioLucent acquisition in September 2007.
The increase in our digital mammography product sales was primarily attributable to an increase in the number of Selenia systems and related components sold, including our R2 CAD software.
In fiscal 2008 we sold 1,678 digital mammography systems compared to 1,189 systems in fiscal 2007.
This revenue was partially offset by a decrease in average selling prices primarily attributable to increased competition, higher dealer sales, changes in product configuration and increased multi-system sales.
We attribute the increase in digital mammography system sales primarily to the growing acceptance of our Selenia mammography system and of digital mammography in general.
We expect the growth in the sales of these systems to slow as the market for digital mammography matures.
Diagnostics product sales were $474.6 million in fiscal 2008, due to the inclusion of Cytyc results for 49 of the 52 weeks in the current year as well as 9 weeks of Third Wave revenues of approximately $5.9 million.
Cytyc Diagnostic sales include our ThinPrep and FullTerm products.
GYN Surgical product sales were $219.3 million in fiscal 2008, due to the inclusion of Cytyc results for 49 of the 52 weeks in the current year.
These sales include our NovaSure system.
Skeletal Health product sales increased 11% in fiscal 2008 compared to fiscal 2007, primarily due to a $10.8 million increase in mini C-arm sales worldwide, partially offset by a $2.0 million decrease in extremity MRI sales and a $1.2 million decrease in bone densitometry product sales.
The increase in mini C-arm sales was primarily due to an increase in the number of units sold and, to a lesser extent, an increase in the average selling prices related to the commercialization of a new and enhanced product version.
The decrease in extremity MRI sales was due to a decrease in the number of systems sold.
The decrease in bone densitometry sales was primarily due to a decrease in the number of used bone densitometry systems and upgrades sold and a decrease in the average selling prices of our bone densitometry systems in the United States, partially offset by an increase in the number of bone densitometry systems sold internationally.
We believe the decrease in our domestic osteoporosis assessment average selling prices reflected a decline in market conditions due in part to a reduction in reimbursement for osteoporosis assessment exams.
In fiscal 2008, approximately 80% of product sales were generated in the United States, 12% in Europe, 4% in Asia, and 4% in other international markets.
In fiscal 2007, approximately 75% of product sales were generated in the United States, 15% in Europe, 5% in Asia, and 5% in other international markets.
The increase in the percentage of product sales generated in the United States in fiscal 2008 is primarily due to the additional product sales from Cytyc, which had a higher percentage of its product sales from the United States than our historical businesses.


| Year Ended | November 28, 2003 | Net income: | As reported | Add: Stock-based employee compensation expense included in reported net income, net of related tax effects | Less: Total stock-based employee compensation expense determined under fair value based method, net of related tax effects | Pro forma | Basic net income per share: | As reported | Pro forma | Diluted net income per share: | As reported | Pro forma |


| Fiscal Year Balance at Beginning of Period Costs Incurred (Reduced) Cash Payments Balance at End of Period | (in millions) | 2017 | 2016 | 2015 | Year Ended October 31, | 2017 | (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 |


| For the years ended, December 31, ($ in millions) | 2004 | Total operating cash flows | Purchases of property, plant and equipment | Cash paid for acquisitions | Other sources | Net cash used in investing activities | Proceeds from the issuance of common stock | Proceeds (repayments) of borrowings, net | Dividends paid | Net cash provided by (used in) financing activities |


| Amounts in millions, except per share amounts 2016 Change vs. Prior Year 2015 Change vs. Prior Year 2014 | Net sales | Operating income | Net earnings from continuing operations | Net earnings/(loss) from discontinued operations | Net earnings attributable to Procter & Gamble | Diluted net earnings per common share | Diluted net earnings per share from continuing operations | Core EPS | Cash flow from operating activities |


Gas Peak Demand The gas peak demand for firm sales customers in CECONY’s service area occurs during the winter heating season.
The peak day demand during the winter 2016/2017 (through January 31, 2017) occurred on January 9, 2017 when the demand reached 1,155 MDt.
The 2016/2017 peak day demand included 606 MDt for CECONY’s full-service customers and 549 MDt for customers participating in its gas retail choice program.
“Design weather” for the gas system is a standard to which the actual peak demand is adjusted for evaluation and planning purposes.
The company estimates that, under design weather conditions, the 2017/2018 service area peak day demand will be 1,509 MDt, including an estimated 792 MDt for its full-service customers and 717 MDt for its gas retail choice customers.
The forecasted peak day demand at design conditions does not include gas used by interruptible gas customers including electric and steam generating stations.
The company forecasts an average annual growth of the gas peak demand over the next five years at design conditions to be approximately 2.3 percent in its service area.


HII expects to incur higher costs to complete ships currently under construction in Avondale due to anticipated reductions in productivity.
As a result, in the second quarter of 2010, the Company increased the estimates to complete LPD-23 and LPD-25 by approximately $210 million.
The Company recognized a $113 million pre-tax charge to operating income for these contracts in the second quarter of 2010.
HII is exploring alternative uses of the Avondale facility, including alternative opportunities for the workforce.
In connection with and as a result of the decision to wind down shipbuilding operations at the Avondale, Louisiana facility, the Company began incurring and paying related employee severance and incentive compensation liabilities and expenditures, asset retirement obligation liabilities that became reasonably estimable, and amounts owed for not meeting certain requirements under its cooperative endeavor agreement with the State of Louisiana.
The Company anticipates that it will incur substantial other restructuring and facilities shutdown related costs, including, but not limited to, severance expense, relocation expense, and asset write-downs related to the Avondale facilities.
These costs are expected to be allowable expenses under government accounting standards and thus should be recoverable in future years’ overhead costs.
These future costs could approximate $271 million, based on management’s current estimate.
Such costs should be recoverable under existing flexibly priced contracts or future negotiated contracts in accordance with Federal Acquisition Regulation (“FAR”) provisions relating to the treatment of restructuring and shutdown related costs.
The Company is currently in discussions with the U. S.  Navy regarding its cost submission to support the recoverability of these costs under the FAR and applicable contracts, and this submission is subject to review and acceptance by the U. S.  Navy.
The Defense Contract Audit Agency (“DCAA”), a DoD agency, prepared an initial audit report on the Company’s cost proposal for restructuring and shutdown related costs of $310 million, which stated that the proposal was not adequately supported for the DCAA to reach a conclusion and questioned approximately $25 million, or 8%, of the costs submitted by the Company.
Accordingly, the DCAA did not accept the proposal as submitted.
The Company has submitted a revised proposal to address the concerns of the DCAA and to reflect a revised estimated total cost of $271 million.
Should the Company’s revised proposal be challenged by the U. S.  Navy, the Company would likely pursue prescribed dispute resolution alternatives to resolve the challenge.
That process, however, would create uncertainty as to the timing and eventual allowability of the costs related to the wind down of the Avondale facility.
Ultimately, the Company anticipates these discussions with the U. S.  Navy will result in an agreement that is substantially in accordance with management’s cost recovery expectations.
Accordingly, HII has treated these costs as allowable costs in determining the earnings performance on its contracts in process.
The actual restructuring expenses related to the wind down may be greater than the Company’s current estimate, and any inability to recover such costs could result in a material effect on the Company’s consolidated financial position, results of operations or cash flows.
The Company also evaluated the effect that the wind down of the Avondale facilities might have on the benefit plans in which HII employees participate.
HII determined that the potential impact of a curtailment in these plans was not material to its consolidated financial position, results of operations or cash flows.
The table below summarizes the Company’s liability for restructuring and shutdown related costs associated with winding down the Avondale facility.
As of December 31, 2011 and 2010, these costs are comprised primarily of employee severance and retention and incentive bonuses.
These amounts were capitalized in inventoried costs, and will be recognized as expenses in cost of product sales beginning in 2014.


| Years Ended December 31, | (Dollars in millions) | Gross reserves at beginning of period | Incurred related to: | Current year | Prior years | Total incurred losses | Paid related to: | Current year | Prior years | Total paid losses | Foreign exchange/translation adjustment | Change in reinsurance receivables on unpaid losses and LAE | Gross reserves at end of period | (Some amounts may not reconcile due to rounding.) |


| Years Ended December 31, | 2009 | Number | of | Shares | Shares under option at beginningof year | Granted | Cancelled | Exercised | Shares under option at end of year | Exercisable at end of year |


Non-current deferred tax assets are included in the caption Other assets on the consolidated balance sheets.
Non-current deferred tax liabilities are included in the caption Other long-term liabilities on the consolidated balance sheets.
In December 2017, the U. S.  government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act of 2017 (Tax Reform Act).
The legislation significantly changes U. S.  tax law by, among other things, lowering corporate income tax rates, implementing a modified territorial tax system and imposing a transition tax on deemed repatriated earnings of foreign subsidiaries.
The Tax Reform Act permanently reduces the U. S.  corporate income tax rate from a maximum of 35% to a flat 21% rate, effective January 1, 2018.
ASC 740: Income Taxes, requires companies to recognize the effect of the tax law changes in the period of enactment.
However, the SEC staff issued Staff Accounting Bulletin 118 which will allow companies to record provisional amounts during a measurement period that is similar to the measurement period used when accounting for business combinations.
The Company has adjusted its deferred tax assets and liabilities based on the reduction of the U. S.  federal corporate tax rate from 35% to 21% and assessed the realizability of our deferred tax assets based on our current understanding of the provisions of the new law.
The Company considers its accounting for the impacts of the Tax Reform Act to be incomplete and the Company will continue to assess the impact of the Tax Reform Act (and expected further guidance from federal and state tax authorities as well as further guidance for the associated income tax accounting) on its business and consolidated financial statements over the next 12 months.
The Tax Reform Act eliminated the corporate alternative minimum tax (AMT) for tax years commencing on or after January 1, 2018.
As a result, AMT credit carryforwards may be utilized to reduce future income tax liabilities.
In addition, excess AMT credits are refundable in any taxable year beginning after 2017 and before 2022 in an amount equal to 50% (100% in the case of taxable years beginning in 2021) of the excess of the minimum tax credit for the taxable year over the amount of the credit allowable for the year against regular tax liability.
Accordingly, the Company has reclassified $16 million of AMT credit carry forwards as a non-current tax receivable.
As of December 30, 2017, substantially all of the Company’s U. S.  and foreign deferred tax assets, net of deferred tax liabilities, continued to be subject to a valuation allowance.
The realization of these assets is dependent on substantial future taxable income which at December 30, 2017, in management’s estimate, is not more likely than not to be achieved.
In 2017, gross deferred tax assets decreased by $1,018 million primarily for provisional decreases related to the remeasurement of deferred tax assets due to the 21% tax rate under the Tax Reform Act, as well as decreases related to acquired intangibles and goodwill, offset by a decrease in the gross deferred tax liability balance of $112 million primarily for provisional decreases related to the remeasurement of deferred tax liabilities due to the 21% tax rate under the Tax Reform Act, and a decrease in the gross valuation allowance of $905 million.
In 2016, the net valuation allowance decreased by $143 million primarily for decreases in deferred tax assets related to foreign capitalized research costs, acquired intangibles and goodwill.
In 2015, the net valuation allowance increased by $174 million primarily for increases in deferred tax assets related to the net operating losses generated from pre-tax book losses in the U. S.  The following is a summary of the Company’s various tax attribute carryforwards as of December 30, 2017.


| December 31 | (Dollars in millions) | Loan commitments-1 | Home equity lines of credit | Standby letters of credit and financial guarantees | Commercial letters of credit | Legally binding commitments | Credit card lines-2 | Total |


| (Millions of Dollars) 2015 2014 2013 | CECONY | Operations | Pensions and other postretirement benefits | Health care and other benefits | Regulatory fees and assessments (a) | Other | Total CECONY | O&R | Competitive energy businesses | Other (b) | Total other operations and maintenance expenses |


Distribution xpedx, our distribution business, is one of North America’s leading business-to-business distributors to manufacturers, facility managers and printers, providing customized solutions that are designed to improve efficiency, reduce costs and deliver results.
Customer demand is generally sensitive to changes in economic conditions and consumer behavior, along with segment specific activity including corporate advertising and promotional spending, government spending and domestic manufacturing activity.
Distribution’s margins are relatively stable across an economic cycle.
Providing customers with the best choice for value in both products and supply chain services is a key competitive factor.
Additionally, efficient customer service, cost-effective logistics and focused working capital management are key factors in this segment’s profitability.


Global Corporate and Global Commercial Banking Global Corporate and Global Commercial Banking each include Business Lending and Global Transaction Services (formerly Global Treasury Services) activities.
Business Lending includes various lending-related products and services and related hedging activities including commercial loans, leases, commitment facilities, trade finance, real estate lending and asset-based lending.
Global Transaction Services includes deposits, treasury management, credit card, foreign exchange, and short-term investment and custody solutions to corporate and commercial banking clients.
The table below presents a summary of Global Corporate and Global Commercial Banking results, which exclude certain capital markets activity in Global Banking


| As of December 31, 2012 (In percentages) | InfraServ GmbH & Co. Gendorf KG | InfraServ GmbH & Co. Knapsack KG | InfraServ GmbH & Co. Hoechst KG |


Borrowing Arrangements We maintain debt levels we consider prudent based on our cash flow, interest coverage ratio and percentage of debt to capital.
We use debt financing to lower our overall cost of capital which increases our return on stockholders’ equity.  ?
In October 2011, we entered into a new five-year agreement establishing an unsecured revolving credit facility to borrow up to $1.1 billion, with an option to increase borrowings by an additional $400 million with the consent of the lenders.
As of December 31, 2012, $1.1 billion was available to borrow under the agreement.
The unsecured revolving credit agreement contains certain financial and other covenants, customary representations, warranties and events of default.
As of December 31, 2012, we complied with all of these covenants.
We may use these funds for general corporate purposes, including commercial paper backstop and business acquisitions.  ?
In addition to the revolving credit facility, we maintain lines of credit with domestic and international commercial banks.
As of December 31, 2012, we could borrow up to approximately $176.7 million in various currencies under the lines of credit and as of December 31, 2011, we could borrow up to $76.9 million.
Registration Statements ?
In May 2009, we filed a shelf registration statement on Form S-3 that registered an indeterminate amount of debt securities.
This registration statement was effective immediately upon filing under Securities and Exchange Commission regulations governing “well-known seasoned issuers” (the “2009 WKSI Registration Statement”).  ?
In November 2011, we issued $250 million of 1.50% Notes due November 1, 2016 and, in December 2010, we issued $350 million of 4.125% Notes due December 1, 2020.
The Notes were issued under the 2009 WKSI Registration Statement.  ?
The 2009 WKSI Registration Statement expired in May 2012.
Accordingly, in May 2012, we filed a new registration statement on Form S-3 to replace the 2009 WKSI Registration Statement.
The registration statement filed in May 2012 registered an undeterminate amount of debt securities effective immediately.  ?
Proceeds from the debt issuances and any other offerings under the registration statement filed in 2012 may be used for general corporate requirements.
These may include reducing existing borrowings; financing capital additions; and funding contributions to our pension plans, future business acquisitions and working capital requirements.


| (in thousands) | Balance at October 31, 2004 | Additions-1 | Other adjustments-2 | Balance at October 31, 2005 | Additions-3 | Other adjustments-4 | Balance at October 31, 2006 |


| 2006 2005 | Carrying Amount | (in millions) | Fixed maturities, held to maturity | Commercial loans | Policy loans | Investment contracts | Short-term and long-term debt | Bank customer liabilities |


Notes to the Financial Statements use of natural gas swap contracts.
These instruments mature over the next 37 months.
To the extent that these instruments are effective in hedging PPG’s exposure to price changes, changes in the fair values of the hedge contracts are deferred in accumulated other comprehensive (loss) income and reclassified to cost of sales as the natural gas is purchased.
The amount of ineffectiveness, which is reported in “Cost of sales, exclusive of depreciation and amortization” in the accompanying statement of income for the years ended Dec.  31, 2006, 2005, and 2004, was $0.2 million of income and $0.2 million and $1 million of expense, respectively.
The fair value of these contracts was a liability of $25 million and an asset of $0.3 million as of Dec.  31, 2006 and 2005, respectively.
As of Dec.  31, 2006 an after-tax loss of $2 million was deferred in accumulated other comprehensive (loss) income, which related to natural gas hedge contracts that mature in excess of twelve months.
In November 2002, PPG entered into a one-year renewable equity forward arrangement with a bank in order to partially mitigate the impact of changes in the fair value of PPG stock that is to be contributed to the asbestos settlement trust as discussed in Note 14.
This instrument, which has been renewed, is recorded at fair value as an asset or liability and changes in the fair value of this instrument are reflected in “Asbestos settlement – net” in the accompanying statement of income.
As of Dec.  31, 2006 and 2005, PPG had recorded a current asset of $14 million and $10 million, respectively, and recognized income of $4 million for the year ended Dec.  31, 2006, expense of $9 million for the year ended Dec.  31, 2005 and income of $4 million for the year ended Dec.  31, 2004.
In accordance with the terms of this instrument the bank had purchased 504,900 shares of PPG stock on the open market at a cost of $24 million through Dec.  31, 2002, and during the first quarter of 2003 the bank purchased an additional 400,000 shares at a cost of $19 million, for a total principal amount of $43 million.
PPG will pay to the bank interest based on the principal amount and the bank will pay to PPG an amount equal to the dividends paid on these shares during the period this instrument is outstanding.
The difference between the principal amount, and any amounts related to unpaid interest or dividends, and the current market price for these shares will represent the fair value of the instrument as well as the amount that PPG would pay or receive if the bank chose to net settle the instrument.
Alternatively, the bank may, at its option, require PPG to purchase the shares covered by the arrangement at the market price on the date of settlement.
No derivative instrument initially designated as a hedge instrument was undesignated or discontinued as a hedging instrument during 2006 or 2005.
For the year ended Dec.  31, 2006, other comprehensive (loss) income included a net loss due to derivatives of $13 million, net of tax.
This loss was comprised of realized losses of $22 million and unrealized losses of $35 million.
The realized losses related to the settlement of natural gas contracts and interest rate swaps owned by one of the Company’s investees accounted for under the equity method of accounting.
These losses were offset in part by realized gains related to the settlement of foreign currency contracts.
The unrealized losses related primarily to the change in fair value of the natural gas contracts.
These unrealized losses were partially offset by unrealized gains on foreign currency contracts and on interest rate swaps owned by one of the Company’s investees accounted for under the equity method of accounting.
For the year ended Dec.  31, 2005, other comprehensive (loss) income included a net gain due to derivatives of $3 million, net of tax.
This gain was comprised of realized gains of $1 million and unrealized gains of $4 million.
The realized gains related to the settlement during the period of natural gas contracts offset in part by the settlement of interest rate swaps owned by one of the Company’s investees accounted for under the equity method of accounting and the settlement of foreign currency contracts.
The unrealized gains relate to these same instruments.
The fair values of outstanding derivative instruments, excluding interest rate swaps, were determined using quoted market prices.
The fair value of interest rate swaps was determined using discounted cash flows and current interest rates.11.


| Benefit Payments Expected Subsidy Receipts Net Benefit Payments | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 – 2018 |


| Payments Due by Fiscal Year | Total | (in millions) | Contractual obligations: | Long-term debt (including current portion)(1) | Operating lease obligations-2 | Capital lease obligations | Other long-term liabilities-3 | Total contractual obligations |


| 2009 2008 | E&P Operating Statistics | Average Realizations(d) | Liquid Hydrocarbons (per bbl) | United States | Europe | Africa | Total International | Worldwide Continuing Operations | Discontinued Operations(b) | Worldwide | Natural Gas (per mcf) | United States | Europe | Africa | Total International | Worldwide Continuing Operations | Discontinued Operations(b) | Worldwide |


| In millions Unpaid Principal Balance Recorded Investment Associated Allowance Average Recorded Investment (a) | December 31, 2016 | Impaired loans with an associated allowance | Total commercial lending | Total consumer lending | Total impaired loans with an associated allowance | Impaired loans without an associated allowance | Total commercial lending | Total consumer lending | Total impaired loans without an associated allowance | Total impaired loans | December 31, 2015 | Impaired loans with an associated allowance | Total commercial lending | Total consumer lending | Total impaired loans with an associated allowance | Impaired loans without an associated allowance | Total commercial lending | Total consumer lending | Total impaired loans without an associated allowance | Total impaired loans |


| Net Capacity Purchases(a) Power-Related Purchases(b) Transmission Rights Purchases(c) Purchased Energy from CENG Total | 2013 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total |


| Components of change during 2005 Change | 2004 | Total | Domestic | International |


| Number of Shares/RSUs Weighted Average Grant-Date Fair Value | As of or for the Year Ended December 31, 2012 | Unvested, beginning of year(c) | Granted | Vested | Forfeited | Unvested, end of year |


North American Printing Papers net sales were $2.6 billion in 2013, $2.7 billion in 2012 and $2.8 billion in 2011.
Goodwill Our goodwill results from our fiscal year 1999 acquisition of Roney & Co.  (now part of RJ&A), our fiscal year 2001 acquisition of Goepel McDermid, Inc.  (now RJ Ltd. ), our April 1, 2011 acquisition of Howe Barnes, our April 4, 2011 acquisition of a controlling interest in RJES (as discussed more fully below, this goodwill was determined to be impaired in fiscal year 2013), and our April 2, 2012 acquisition of Morgan Keegan (see Note 3 for additional information regarding this acquisition).
The following summarizes our goodwill by segment, along with the balance and activity for the years indicated:


| Years Ended December 31, | 2009 | (In millions) | Balance at beginning of the period | Additions for tax positions of prior years | Reductions for tax positions of prior years | Additions for tax positions of current year | Reductions for tax positions of current year | Settlements with tax authorities | Lapses of statutes of limitations | Balance at end of the period |


| (Millions, except per-share amounts) First  Quarter Second  Quarter Third  Quarter Fourth  Quarter Year | Diluted Earnings per share — Income Before Cumulative Effect | 2005 | 2004 | Diluted Earnings per share — Net Income | 2005 | 2004 |


| In millions Interest OnlyProduct Principal andInterest Product | 2015 | 2016 | 2017 | 2018 | 2019 and thereafter | Total (a)(b) |


| Year Ended December 31 2017 over 2016 2016 over 2015 | ($ in millions) | Segment operating income (loss) | FAS/CAS Adjustment | Non-current state income taxes | Operating income (loss) |