| 2005 2004 2003 | Shares outstanding at beginning of year | Acquired during the year | Issued pursuant to performance stock unit obligations | Issued under stock plans | Issued under contractual obligations | Shares outstanding at end of year |


* Reflects $124 million pre-tax charge in 2004, in accordance with Con Edison of New Yorks electric, gas and steam rate plans.
of annual compensation was made.
For the years ended December 31, 2009, 2008 and, 2007, we made matching contributions of approximately $450,000, $503,000 and $457,000, respectively.
NOTE 17 / COMMITMENTS AND CONTINGENCIES We and our operating partnership are not presently involved in any material litigation nor, to our knowledge, is any material litigation threatened against us or our properties, other than routine litigation arising in the ordinary course of business.
Management believes the costs, if any, incurred by us and our operating partnership related to this litigation will not materially affect our financial position, operating results or liquidity.
We have entered into employment agreements with certain executives, which expire between June 2010 and January 2013.
The minimum cash-based compensation, including base salary and guaranteed bonus payments, associated with these employment agreements totals approximately $7.8 million for 2010.
In March 1998, we acquired an operating sub-leasehold position at 420 Lexington Avenue.
The operating sub-leasehold position required annual ground lease payments totaling $6.0 million and subleasehold position payments totaling $1.1 million (excluding an operating sub-lease position purchased January 1999).
In June 2007, we renewed and extended the maturity date of the ground lease at 420 Lexington Avenue through December 31, 2029, with an option for further extension through 2080.
Ground lease rent payments through 2029 will total approximately $10.9 million per year.
Thereafter, the ground lease will be subject to a revaluation by the parties thereto.
In June 2009, we acquired an operating sub-leasehold position at 420 Lexington Avenue for approximately $7.7 million.
These sub-leasehold positions were scheduled to mature in December 2029.
In October 2009, we acquired the remaining sub-leasehold position for $7.6 million.
The property located at 711 Third Avenue operates under an operating sub-lease, which expires in 2083.
Under the sub-lease, we are responsible for ground rent payments of $1.55 million annually through July 2011 on the 50% portion of the fee we do not own.
The ground rent is reset after July 2011 based on the estimated fair market value of the property.
We have an option to buy out the sub-lease at a fixed future date.
The property located at 461 Fifth Avenue operates under a ground lease (approximately $2.1 million annually) with a term expiration date of 2027 and with two options to renew for an additional 21 years each, followed by a third option for 15 years.
We also have an option to purchase the ground lease for a fixed price on a specific date.
The property located at 625 Madison Avenue operates under a ground lease (approximately $4.6 million annually) with a term expiration date of 2022 and with two options to renew for an additional 23 years.
The property located at 1185 Avenue of the Americas operates under a ground lease (approximately $8.5 million in 2010 and $6.9 million annually thereafter) with a term expiration of 2020 and with an option to renew for an additional 23 years.
In April 1988, the SL Green predecessor entered into a lease agreement for the property at 673 First Avenue, which has been capitalized for financial statement purposes.
Land was estimated to be approximately 70% of the fair market value of the property.
The portion of the lease attributed to land is classified as an operating lease and the remainder as a capital lease.
The initial lease term is 49 years with an option for an additional 26 years.
Beginning in lease years 11 and 25, the lessor is entitled to additional rent as defined by the lease agreement.
We continue to lease the 673 First Avenue property, which has been classified as a capital lease with a cost basis of $12.2 million and cumulative amortization of $5.5 million and $5.2 million at December 31, 2009 and 2008, respectively.
The following is a schedule of future minimum lease payments under capital leases and noncancellable operating leases with initial terms in excess of one year as of December 31, 2009 (in thousands):


| December 31, | 2007 | ( In millions ) | Other Assets: | Premium tax offset for future undiscounted assessments | Premium tax offsets currently available for paid assessments | Receivable for reimbursement of paid assessments-1 | $53 | Liability: | Insolvency assessments |


| Years Ended December 31, | 2007 | (In millions) | Revenues | Expenses | Income before provision for income tax | Provision for income tax | Net investment gain (loss), net of income tax | Income from discontinued operations, net of income tax |


PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements Concentrations of Financial Instruments The Company monitors its concentrations of financial instruments and mitigates credit risk by maintaining a diversified investment portfolio which limits exposure to any one issuer.
As of the dates indicated, the Company’s exposure to concentrations of credit risk of single issuers greater than 10% of the Company’s stockholders’ equity included securities of the U. S.  government and certain U. S.  government agencies and securities guaranteed by the U. S.  government, as well as the securities disclosed below:


2017 and 1% higher than in 2016.
Comparing 2018 with 2017, benefits from higher average sales price realizations, net of mix ($309 million), were partially offset by lower sales volumes ($17 million), higher input costs ($141 million), higher planned maintenance downtime costs ($25 million) and higher operating costs ($42 million).


| Year ended December 31, | Non-GAAP operating efficiency ratio, net of noncontrolling interests (Dollars in thousands, except ratios) | GAAP noninterest expense | Less: expense attributable to noncontrolling interests | Non-GAAP noninterest expense, net of noncontrolling interests | GAAP net interest income | Adjustments for taxable equivalent basis | Non-GAAP taxable equivalent net interest income | Less: income attributable to noncontrolling interests | Non-GAAP taxable equivalent net interest income, net of noncontrolling interests | GAAP noninterest income | Non-GAAP noninterest income, net of noncontrolling interests and excluding net losses on SVBIF sale transaction | GAAP total revenue | Non-GAAP taxable equivalent revenue, net of noncontrolling interests and excluding net losses on SVBIF sale transaction | GAAP operating efficiency ratio | Non-GAAP operating efficiency ratio -1 |


The subordinated retained securities do not have pro rata participation in loan principal prepayments for the first seven years of each securitization.
The assumed weighted-average discount rate is 815 basis points higher than the weighted-average coupon of the underlying mortgage loans at Decem- ber 31, 2009.20.
Fair value measurements GAAP permits an entity to choose to measure eligible financial instruments and other items at fair value.
The Company has not made any fair value elections as of December 31, 2009.
Pursuant to GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
A three-level hierarchy exists in GAAP for fair value measurements based upon the inputs to the valuation of an asset or liability.  ?
Level 1  Valuation is based on quoted prices in active markets for identical assets and liabilities.  ?
Level 2  Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market.  ?
Level 3  Valuation is derived from model-based and other techniques in which at least one significant input is unobservable and which may be based on the Companys own estimates about the assumptions that market participants would use to value the asset or liability.
When available, the Company attempts to use quoted market prices in active markets to determine fair value and classifies such items as Level 1 or Level 2.
If quoted market prices in active markets are not


We have derivative instruments with credit-risk-related contingent features.
For foreign exchange contracts with original maturities of at least five years, our derivative counterparties could require settlement if we default on our five-year credit facility.
For commodity contracts, our counterparties could require collateral posted in an amount determined by our credit ratings.
The fair value of foreign exchange and commodity contracts that have credit-risk-related contingent features that are in a net liability position at December 31, 2013 was $7.
At December 31, 2013, there was no collateral posted related to our derivatives.
Note 18 – Significant Group Concentrations of Risk Credit Risk Financial instruments involving potential credit risk are predominantly with commercial aircraft customers and the U. S.  government.
Of the $10,670 in gross accounts receivable and gross customer financing included in the Consolidated Statements of Financial Position as of December 31, 2013, $4,870 related predominantly to commercial aircraft customers ($924 of accounts receivable and $3,946 of customer financing) and $3,604 related to the U. S.  government.
Of the $4,020 in gross customer financing, $2,720 related to customers we believe have less than investment-grade credit including American Airlines, United/Continental Airlines, and Hawaiian Airlines who were associated with 11%, 9% and 8%, respectively, of our financing portfolio.
Financing for aircraft is collateralized by security in the related asset and in some instances security in other assets as well.
Other Risk As of December 31, 2013, approximately 38% of our total workforce was represented by collective bargaining agreements and approximately 1% of our total workforce was represented by agreements expiring in 2014.


| Year ended December 31, Provision for credit losses | (in millions) | 2009 | Investment Bank | Commercial Banking | Treasury & Securities Services | Asset Management | Corporate/Private Equity(a)(b) | Total Wholesale | Retail Financial Services | CardServices – reported | Corporate/Private Equity(a)(c)(d) | Total Consumer | Total provision for creditlosses – reported | Credit card– securitized | Total provision for creditlosses – managed |


| (Millions, except per share amounts) 2006 2005 2004 | Earnings per common share | Net income | Weighted average common shares outstanding | Earnings per common share | Earnings per common share – assuming dilution | Net income | Weighted average common shares outstanding | Effect of dilutive securities | Stock options | Other stock compensation plans | Potentially dilutive common shares | Adjusted weighted average common shares outstanding | Earnings per common share – assuming dilution | Pensions | (Millions) | Projected benefitobligation, Jan. 1 | Service cost | Interest cost | Plan amendments | Actuarial losses (gains) | Benefits paid | Foreign currency translation adjustments | Other | Projectedbenefitobligation, Dec. 31 | Market value of planassets, Jan. 1 | Actual return on plan assets | Company contributions | Participant contributions | Benefits paid | Plan expenses and other-net | Foreign currency translation adjustments | Market value of planassets, Dec. 31 | Funded Status | Accumulated unrecognized: | Accumulated actuarial losses | Accumulated prior service cost | Net amount recognized before adjustment | Adjustment recognized by charge to accumulated other comprehensive loss pre-tax | Amount recognized | Amounts recognized in the Balance Sheet: | Other assets (long-term) | Accounts payable and accrued liabilities | Accrued pensions | Other postretirement benefits | Amountrecognized |


| December 31, 2013 CarryingValue Percentageof TotalAssets1 | Goodwill | Bottlers' franchise rights with indefinite lives | Trademarks with indefinite lives | Definite-lived intangible assets, net | Other intangible assets not subject to amortization | Total |


| 2012 2011 | In millions | Projected benefit obligation | Accumulated benefit obligation | Fair value of plan assets |


| Amount (In Millions) | 2015 net revenue | Retail electric price | Volume/weather | Net wholesale revenue | Reserve equalization | Other | 2016 net revenue | 2016 | December 31,(in millions) | Modified residential real estate loans, excluding PCI loans(a)(b) | Home equity | Residential mortgage | Total modified residential real estate loans, excluding PCI loans | Modified PCI loans(c) | Home equity | Prime mortgage | Subprime mortgage | Option ARMs | Total modified PCI loans |


| Chipotle Class A Common Stock Chipotle Class B Common Stock | High | 2007 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | Chipotle Class A Common Stock | High | 2008 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter |


$20 Million Credit Facility (Terminated) On June 2, 2010, Ameren entered into a $20 million revolving credit facility ($20 Million Facility).
Borrowings under the $20 Million Facility incurred interest at a rate equal to the applicable LIBOR plus 2.25% per annum.
The obligations of Ameren under the $20 Million Facility were unsecured.
No subsidiary of Ameren was a party to, guarantor of, or borrower under the facility.
Ameren had no outstanding borrowings under the facility as of December 31, 2011.
Ameren terminated the $20 Million Facility in January 2012.
During the years ended December 31, 2011 and 2010, Ameren had average daily balances outstanding of $20 million, with a weightedaverage interest rate of 2.48% and 2.54%, respectively.
Commercial Paper At December 31, 2011, and 2010, Ameren had $148 million and $269 million of commercial paper outstanding, respectively.
During the years ended December 31, 2011 and 2010, Ameren had average daily commercial paper balances outstanding of $311 million and $185 million with a weighted-average interest rate of 0.87% and 0.94%, respectively.
The peak short-term commercial paper outstanding during the years ended December 31, 2011, and 2010 were $435 million and $366 million,


Consumer Loan Modification Programs Citigroup has instituted a variety of modification programs to assist borrowers with financial difficulties.
These programs include modifying the original loan terms, reducing interest rates, extending the remaining loan duration and/or waiving a portion of the remaining principal balance.
Citi’s programs consist of the U. S.  Treasury’s Home Affordable Modification Program (HAMP), as well as short-term forbearance and long-term modification programs, each summarized below.
HAMP.
The HAMP is designed to reduce monthly mortgage payments to a 31% housing debt ratio by lowering the interest rate, extending the term of the loan and forbearing principal of certain eligible borrowers who have defaulted on their mortgages or who are at risk of imminent default due to economic hardship.
In order to be entitled to loan modifications, borrowers must complete a three- to five-month trial period, make the agreed payments and provide the required documentation.
Effective June 1, 2010, documentation must be provided prior to beginning the trial period, whereas prior to that date, it was required to be provided before the end of the trial period.
This change generally means that Citi will be able to verify income up front for potential HAMP participants before they begin making lower monthly payments.
We believe this change will limit the number of borrowers who ultimately fall out from the trials and potentially mitigate the impact of HAMP trial participants on early bucket delinquency data.
During the trial period, Citi requires that the original terms of the loans remain in effect pending completion of the modification.
As of December 31, 2009, approximately $7.1 billion of first mortgages were enrolled in the HAMP trial period, while $300 million have successfully completed the trial period.
Upon completion of the trial period, the terms of the loan are contractually modified, and it is accounted for as a “troubled debt restructuring” (see “Long-Term Programs” below).
For additional information on HAMP, see “U.
S.  Consumer Lending— Mortgage Lending” below.
Short-term programs.
Citigroup has also instituted interest rate reduction programs (primarily in the United States) to assist borrowers experiencing temporary hardships.
These programs include short-term (12 months or less) interest rate reductions and deferrals of past due payments.
The loan volume under these short-term programs increased significantly during 2009, and loan loss reserves for these loans have been enhanced, giving consideration to the higher risk associated with those borrowers and reflecting the estimated future credit losses for those loans.
See Note 1 to the Consolidated Financial Statements for a further discussion of the allowance for loan losses for such modified loans.


| December 31, | Dollars in Millions | Working capital |


| For the years ended December 31, | 2011 | Amount | Fixed maturities [2] | Equity securities, AFS | Mortgage loans | Policy loans | Limited partnerships and other alternativeinvestments | Other [3] | Investment expense | Total securities AFS and other | Equity securities, trading | Total net investment income (loss), before-tax | Total securities, AFS and other excludinglimited partnerships and other alternativeinvestments |


| In millions December 312013 December 312012 | Commercial mortgages at fair value | Commercial mortgages at lower of cost or fair value | Total commercial mortgages | Residential mortgages at fair value | Residential mortgages at lower of cost or fair value | Total residential mortgages | Other | Total |


| December 31, (in millions) 2003 2002 2001 | Issued — balance at January 1 | Newly issued: | Employee benefits and compensation plans | Employee stock purchase plans | Purchase accounting acquisitions and other | Total newly issued | Cancelled shares | Total issued — balance at December 31 | Treasury — balance at January 1 | Purchase of treasury stock | Forfeitures to treasury | Issued from treasury: | Employee benefits and compensation plans | Employee stock purchase plans | Total issued from treasury | Total treasury — balance at December 31 | Outstanding |


SPECIAL ASSET POOL Special Asset Pool (SAP), which constituted approximately 28% of Citi Holdings by assets as of December 31, 2009, is a portfolio of securities, loans and other assets that Citigroup intends to actively reduce over time through asset sales and portfolio run-off.
At December 31, 2009, SAP had $154 billion of assets.
SAP assets have declined by $197 billion or 56% from peak levels in 2007 reflecting cumulative write-downs, asset sales and portfolio run-off.
Assets have been reduced by $87 billion from year-ago levels.
Approximately 60% of SAP assets are now accounted for on an accrual basis, which has helped reduce income volatility.


KIMCO REALTY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS, CONTINUED Noncontrolling interests also includes 138,015 convertible units issued during 2006, by the Company, which are valued at approximately $5.3 million, including a fair market value adjustment of $0.3 million, related to an interest acquired in an office building located in Albany, NY.
These units are redeemable at the option of the holder after one year for cash or at the option of the Company for the Company’s common stock at a ratio of 1:1.
The holder is entitled to a distribution equal to the dividend rate of the Company’s common stock.
The Company is restricted from disposing of these assets, other than through a tax free transaction, until January 2017.


| Year Ended December 31, 2006 Year Ended December 31, 2005 Year Ended December 31, 2004 | Bendix | Beginning of year | Accrual for claims filed and defense costs incurred | Accrual for estimated cost of future claims | Reduction in estimated cost of future claims | Asbestos related liability payments | Settlement with plaintiff firms of certain pending asbestos claims-1 | Update of expected resolution values for pending claims | Other | End of year |


| (Dollars in millions, except per share amounts) Fiscal2012 Fiscal2011 Fiscal2010 2012-2011% Change 2011-2010% Change | Total net revenue | Operating income from continuing operations | Net income from continuing operations | Diluted net income per share from continuing operations |


consumer insights and technology advancements that lead to product improvements, improved marketing and merchandising programs and game-changing inventions that create new brands and categories.
Productivity improvement is critical to delivering our balanced top-line growth, bottom-line growth and value creation objectives.
Productivity improvement and sales growth reinforce and fuel each other.
We are driving productivity improvement across all elements of cost, including cost of goods sold, marketing and promotional expenses and nonmanufacturing overhead.
Productivity improvements and cost savings are being reinvested in product and packaging improvements, brand awareness-building advertising and trial-building sampling programs, increased sales coverage and R&D programs.
We are improving operational effectiveness and organizational culture through enhanced clarity of roles and responsibilities, accountability and incentive compensation programs.
The Company has undertaken an effort to focus and strengthen its business portfolio to compete in categories and with brands that are structurally attractive and that play to P&G's strengths.
The ongoing portfolio of businesses consists of 10 product categories.
These are categories where P&G has leading market positions, strong brands and consumer-meaningful product technologies.
We believe these strategies are right for the long-term health of the Company and our objective of delivering total shareholder return in the top one-third of our peer group.
The Company expects the delivery of the following long-term annual financial targets will result in total shareholder returns in the top third of the competitive peer group: ?
Organic sales growth above market growth rates in the categories and geographies in which we compete; ?
Core EPS growth of mid-to-high single digits; and ?
Adjusted free cash flow productivity of 90% or greater.
In periods with significant macroeconomic pressures, we intend to maintain a disciplined approach to investing so as not to sacrifice the long-term health of our businesses to meet shortterm objectives in any given year.


| Level 3 Assets (Liabilities) and Range of Significant Unobservable Inputs (Average/Median) as of December | $ in millions | Interest rates, net | Correlation | Volatility (bps) | Credit, net | Correlation | Credit spreads (bps) | Upfront credit points | Recovery rates | Currencies, net | Correlation | Commodities, net | Volatility | Natural gas spread | Oil spread | Equities, net | Correlation | Volatility |


| Quarter Ended | March 31 | 2016 | Net revenues | Percent change from prior quarter | 2017 | Net revenues | Percent change from prior quarter | 2018 | Net revenues | Percent change from prior quarter |


| 12-Month 2015 12-Month 2014 11-Month 2013-1 | Numerator (in millions): | Net earnings (loss) from continuing operations attributable to Best Buy Co., Inc., shareholders, diluted | Denominator (in millions): | Weighted-average common shares outstanding | Effect of potentially dilutive securities: | Stock options and other | Weighted-average common shares outstanding, assuming dilution | Net earnings (loss) per share from continuing operations attributable to Best Buy Co., Inc. shareholders | Basic | Diluted |


| December 31, | 2012 | (in millions) | Net unrealized securities gains | Net unrealized derivatives losses | Foreign currency translation | Defined benefit plans | Total |


| 2002 2001 | Gain on sales of depreciable properties | Gain on land sales | Impairment adjustment | Total |


CITIZENS FINANCIAL GROUP, INC.  MANAGEMENT'S DISCUSSION AND ANALYSIS 78 Net interest income of $3.3 billion in 2014 increased $243 million, or 8%, from $3.1 billion in 2013 driven by growth in average interest-earning assets, a reduction in interest rate hedging costs, as well as lower deposit costs.
These benefits were partially offset by the effect of declining loan yields and a continued shift in loan mix to lower yielding loans, increased borrowing costs related to our issuance of subordinated debt and the effect of the Chicago Divestiture.
Average interest-earning assets of $116.2 billion in 2014 increased $9.0 billion from 2013 driven by a $5.3 billion increase in the investment securities portfolio, a $2.2 billion increase in commercial loans, a $1.6 billion increase in residential mortgages, and a $2.2 billion increase in automobile loans, partially offset by a $2.0 billion decrease in home equity outstandings, a $54 million reduction in student loans, and a $267 million decrease in other retail loans.2014 net interest margin of 2.83% remained broadly stable compared to 2.85% in 2013 despite continued pressure from the relatively persistent low interest-rate environment.
Average interest-earning asset yields continued to decline at a pace that exceeded our ability to reduce our cost of interest-bearing deposits.2014 average interest-earning asset yields of 3.14% declined 11 basis points from 3.25% in 2013, largely reflecting a 13 basis point decline in the loan and lease portfolio yield despite a five basis point improvement in the securities portfolio yield.
The decline in loan and lease yields was driven by the effect of a reduction in higher-yielding consumer real estate secured outstandings.
In addition, intense industry-wide competition for commercial loans continued to compress spreads on new originations and resulted in additional downward pressure on overall loan yields.
Investment portfolio income of $619 million for the year ended December 31, 2014 increased $142 million, or 30%, compared to the year ended December 31, 2013.
Total interest-bearing deposit costs of $156 million in 2014 decreased $60 million, or 28%, from $216 million in 2013 and reflected an eight basis point decrease in the rate paid on deposits to 0.24% from 0.32%.
The cost of term deposits decreased to 0.65% in 2014 from 0.91% in 2013, while rates on money market and savings declined to 0.19% in 2014 from 0.25% in 2013.
Due to the historically low interest rate environment, many deposit products have hit pricing floors at or near zero, limiting further rate reduction and thus compressing margins.
The total borrowed funds costs of $203 million in 2014 declined $24 million, or 11%, from $227 million in 2013 driven by the benefit of a $101 million reduction in pay-fixed swap costs which was partially offset by an increase in long-term borrowed funds costs largely related to our issuance of subordinated debt.
Total borrowed funds rates declined to 1.51% in 2014 from 6.53% in 2013.
Within the federal funds purchased and securities sold under agreement category and other short-term borrowed funds categories, pay-fixed swap expense declined to $99 million in 2014 from $200 million in 2013.
Excluding the impact of hedging costs, 2014 borrowed funds costs were 0.78% compared to 1.16% in 2013.


When valuing employee stock options, we stratify the employee population into three homogenous groups that historically have exhibited similar exercise behaviors.
These groups are executive officers, directors, and all other employees.
We value the stock options based on the unique assumptions for each of these employee groups.
We calculate the expected term for our employee stock options based on historical employee exercise behavior and base the risk-free interest rate on a traded zero-coupon U. S.  Treasury bond with a term substantially equal to the options expected term.
The volatility used to value employee stock options is based on historical volatility.
We calculate historical volatility using a simple-average calculation methodology based on daily price intervals as measured over the expected term of the option.
As required under the current contract, the target underwritten health care cost and underwriting fee amounts for each option period are negotiated.
Any variance from the target health care cost is shared with the federal government.
Accordingly, events and circumstances not contemplated in the negotiated target health care cost amount may have a material adverse effect on us.
These changes may include an increase or reduction in the number of persons enrolled or eligible to enroll due to the federal governments decision to increase or decrease U. S.  military deployments.
In the event government reimbursements were to decline from projected amounts, our failure to reduce the health care costs associated with these programs may have a material adverse effect on our results of operations, financial position, and cash flows.
In July 2009, we were notified by the Department of Defense that we were not awarded the third generation TRICARE program contract for the South Region which had been subject to competing bids.
We filed a protest with the GAO in connection with the award to another contractor citing discrepancies between the award criteria and procedures prescribed in the request for proposals issued by the DoD and those that appear to have been used by the DoD in making its contractor selection.
In October 2009, we learned that the GAO had upheld our protest, determining that the TMA evaluation of our proposal had unreasonably failed to fully recognize and reasonably account for the likely cost savings associated with our record of obtaining network provider discounts from our established network in the South Region.
On December 22, 2009, we were advised that TMA notified the GAO of its intent to implement corrective action consistent with the discussion contained within the GAOs decision with respect to our protest.
At this time, we are not able to determine what actions TMA will take in response to recommendations by the GAO, nor can we determine whether or not the protest decision by the GAO will have any effect upon the ultimate disposition of the contract award.
Critical Accounting Policies and Estimates The discussion and analysis of our financial condition and results of operations is based upon our consolidated financial statements and accompanying notes, which have been prepared in accordance with accounting principles generally accepted in the United States of America.
The preparation of these financial statements and accompanying notes requires us to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes.
We continuously evaluate our estimates and those critical accounting policies related primarily to benefit expenses and revenue recognition as well as accounting for impairments related to our investment securities, goodwill, and long-lived assets.
These estimates are based on knowledge of current events and anticipated future events and, accordingly, actual results ultimately may differ from those estimates.
We believe the following critical accounting policies involve the most significant judgments and estimates used in the preparation of our consolidated financial statements.
Benefit Expense Recognition Benefit expenses are recognized in the period in which services are provided and include an estimate of the cost of services which have been incurred but not yet reported, or IBNR.
IBNR represents a substantial portion of our benefits payable as follows:


| Years ended December 31, 2009 2008 2007 % Change 2008-2009 | (Dollars in millions) | Fee revenue: | Servicing fees | Management fees | Trading services | Securities finance | Processing fees and other | Total fee revenue | Net interest revenue: | Interest revenue | Interest expense | Net interest revenue | Gains (Losses) related to investment securities, net | Gain on sale of CitiStreet interest, net of exit and other associated costs | Total revenue |


| In millions PNC Riskof Loss (a) Carrying Value ofAssets Owned by PNC Carrying Value of Liabilities Owned by PNC | December 31, 2016 (b) | Mortgage-Backed Securitizations (c) | Tax Credit Investments and Other | Total | December 31, 2015 | Mortgage-Backed Securitizations (c) | Tax Credit Investments and Other | Total |


We recorded an income tax provision of $3 million in 2003, an income tax provision of $45 million in 2002 and an income tax benefit of $14 million in 2001.
The income tax provision in 2003 primarily reflected income tax expense generated in certain foreign tax jurisdictions, offset by a benefit of a U. S.  federal tax refund from a carryback claim we filed in 2003.
No net tax benefit was recorded in 2003 on pre-tax losses due to continuing operating losses.
Our tax provision for 2003 does not reflect an increase in our net deferred tax liability of approximately $46 million.
This net deferred tax liability was recognized by the Japanese subsidiary of FASL LLC, FASL JAPAN, as tax expense in periods prior to our consolidation of FASL LLC on June 30, 2003, and therefore has not been recorded as a component of our tax expense for 2003.
The 2002 income tax provision was recorded primarily for taxes due on income generated in certain state and foreign tax jurisdictions.
No tax benefit was recorded in 2002 on pre-tax losses due to the establishment of a valuation allowance against the remainder of our U. S.  deferred tax assets, net of U. S.  deferred tax liabilities in the fourth quarter, due to the incurrence of continuing substantial operating losses in the U. S.  The effective benefit rate of 15.4 percent for 2001 was less than the statutory rate because of a lower than U. S.  statutory 24 percent tax benefit rate on the 2001 restructuring charges, reflecting the allocation of the charges between the U. S.  and foreign lower-taxed jurisdictions, and a provision for U. S.  taxes on certain previously undistributed earnings of lower-taxed foreign subsidiaries.


| Amountsrecorded as ofthe acquisitiondate | Working capital -1 | Property, equipment, and capitalized software | Identifiable intangible assets: | Customer relationships | Trademarks | Technology | Other noncurrent assets -2 | Long-term debt | Other noncurrent liabilities -3 | Net deferred tax liability -4 | Net assets acquired | Goodwill | Total consideration transferred |


Income Taxes Income taxes are accounted for in accordance with SFAS No.109, Accounting for Income Taxes, (SFAS 109).
Under SFAS 109, deferred tax assets and liabilities are determined based on temporary differences between financial reporting carrying values and tax bases of assets and liabilities, and are measured by using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to reverse.


| Year Ended December 31 2010 2011 2012 | Mobile communication systems | IT solutions and mission support services | Intelligence, surveillance and reconnaissance systems | Total Information Systems and Technology |


| In millions, except per share amounts 2006 2005 2004 | Revenues | Earnings from discontinued operation | Earnings (loss) from operation | Income tax benefit (expense) | Earnings (loss) from operation, net of taxes | Loss on sales and impairments | Income tax benefit | Loss on sales and impairments, net of taxes | Earnings (loss) from discontinued operation, net of taxes | Earnings (loss) per common share from discontinued operation - assuming dilution | Earnings (loss) from operation | Loss on sales and impairments | Earnings (loss) per common share from discontinued operation, net of taxes and minority interest - assumingdilution |


| SIC SING CISEN | Thermoelectric | Hydroelectric | Solar | Wind | Other |


| Year Ended September 30, | 2011 | (In millions) | Capitalized interest, beginning of year | Interest incurred | Interest expensed: | Directly to interest expense | Amortized to cost of sales | Written off with inventory impairments | Capitalized interest, end of year |


| Three Months Ended | Dec. 31, 2014 | (Unaudited, in thousands, except per share data) | Consolidated Statement of Operations Data: | Revenue | Advertising services | Data licensing and other | Total revenue | Costs and expenses-1 | Cost of revenue | Research and development | Sales and marketing | General and administrative | Total costs and expenses | Loss from operations | Interest income (expense), net | Other income (expense), net | Loss before income taxes | Provision (benefit) for income taxes | Net loss | Net loss per share attributable to common stockholders: | Basic and diluted | Other Financial Information: | Adjusted EBITDA-2 | Non-GAAP net income (loss)(3) |


Premiums.
Gross written premiums decreased by 3.7% to $1,192.3 million in 2012 compared to $1,238.4 million in 2011, primarily due to a shift in the mix of business towards excess of loss business, which generates a lower premium rate commensurate with lower loss exposure, a $25.0 million decline due to the impact of foreign exchange rate movement and a lower level of reinstatement premiums in 2012.
Net written premiums decreased by 2.4% to $1,188.7 million in 2012 compared to $1,218.6 million in 2011, principally as a result of the decrease in gross written premiums.
Premiums earned decreased 2.4% to $1,214.8 million 2012 compared to $1,244.5 million in 2011.
The change in premiums earned is comparable to the change in net written premiums.
Gross written premiums increased by 2.6% to $1,238.4 million in 2011 compared to $1,207.0 million in 2010, primarily due to the effects of foreign exchange.
Eliminating this effect, premiums were essentially flat.
Growth from increased rate levels, particularly in regions recently affected by catastrophe losses was offset by the termination of business that did not meet our current pricing targets.
Net written premiums increased by 1.6% to $1,218.6 million in 2011 compared to $1,199.6 million for the same period in 2010, principally as a result of the increase in gross written premiums.
Premiums earned increased 6.5% to $1,244.5 million in 2011 compared to $1,168.1 million for the same period in 2010.
The change in premiums earned relative to net written premiums is the result of timing; premiums are earned ratably over the coverage period whereas written premiums are recorded at the initiation of the coverage period.


| High Low Dividends | 2006 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | See Note(s) | (Thousands of Dollars) | Regulatory Assets | Current regulatory asset — Unrecovered fuel costs | Pension and employee benefit obligations | Net AROs(a) | AFDC recorded in plant(b) | Contract valuation adjustments(c) | Conservation programs(b) | Environmental costs | Losses on reacquired debt | Renewable resource costs | Nuclear outage costs | Purchased power contracts costs | Unrecovered natural gas costs | State commission accounting adjustments(b) | Rate case costs | MISO Day 2 costs | Nuclear fuel storage | Nuclear decommissioning costs | Other | Total noncurrent regulatory assets | Regulatory Liabilities | Current regulatory liability — Overrecovered fuel costs(d) | Plant removal costs | Contract valuation adjustments(c) | Investment tax credit deferrals | Deferred income tax adjustments | Nuclear outage costs collected in advance from customers | Gain on sale of emission allowances | Interest on income tax refunds | Pension and employee benefit obligations | Other | Total noncurrent regulatory liabilities |


| December 31, | 2007 | Amount | (In millions) | Office | Apartments | Development joint ventures | Retail | Real estate investment funds | Industrial | Land | Agriculture | Other | Total real estate holdings |


| See Note(s) Remaining Amortization Period 2009 2008 | (Thousands of Dollars) | Regulatory Assets | Current regulatory asset — Recoverable | purchased natural gas and electric energy costs | Pension and employee benefit obligations(e) | AFUDC recorded in plant(a) | Net AROs(b) | Conservation programs(a) | Environmental costs | Contract valuation adjustments(c) | Renewable and environmental initiative costs | Losses on reacquired debt | Nuclear outage costs | Purchased power contracts costs | Unrecovered natural gas costs | MISO Day 2 costs | Rate case costs | State commission accounting adjustments(a) | Nuclear fuel storage | Nuclear decommissioning costs | Other | Total noncurrent regulatory assets | Regulatory Liabilities | Current regulatory liability — Deferred electric energy costs(d) | Plant removal costs | Contract valuation adjustments(c) | Investment tax credit deferrals | Deferred income tax adjustment | Wisconsin overrecovered fuel costs | Nuclear outage costs collected in advance from customers | Low income discount program | Gain on sale of emission allowances | Interest on income tax refunds | Other | Total noncurrent regulatory liabilities |


| December 31 - in millions 2007 2006 | Commercial | Consumer | Commercial real estate | Other | Total |


| December 31, 2010 2009 | Cash and cash equivalents | Equity securities: | U.S.-based companies | International-based companies | Fixed income securities: | Government bonds | Corporate bonds and debt securities | Mutual, pooled and commingled funds | Hedge funds/limited partnerships | Real estate | Other | Total other postretirement benefit plan assets1 | Pension Benefits | Year Ended December 31, | Service cost | Interest cost | Expected return on plan assets | Amortization of prior service cost (credit) | Amortization of actuarial loss | Net periodic benefit cost (credit) | Settlement charge | Curtailment charge | Special termination benefits1 | Total cost (credit) recognized in the statements of income | Severance pay and benefits | 2010 | Costs incurred | Payments | Noncash and exchange | Accrued balance as of December 31 |


| Company Index November 17, 2011 December 31, 2011 December 31, 2012 December 31, 2013 December 31, 2014 December 31, 2015 | Delphi Automotive PLC -1 | S&P 500 -2 | Automotive Supplier Peer Group -3 | Year Ended September 30, | 2015 | (In millions, except per share data) | Operating Data: | Revenues: | Homebuilding | Financial Services | Inventory and land option charges | Gross profit — Homebuilding | Income (loss) before income taxes: | Homebuilding | Financial Services | Income tax expense (benefit) (1) (2) | Net income | Net income per share: | Basic | Diluted | Cash dividends declared per common share |


Item 11.
EXECUTIVE COMPENSATION Information with respect to executive compensation required by this Item 11 will be included in PCAs Proxy Statement under the captions Compensation Discussion and Analysis, Executive Officer and Director Compensation (including all subcaptions and tables thereunder) and Board Committees  Compensation Committee and is incorporated herein by reference.


D. R.  HORTON, INC.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) and $157.9 million as of September 30, 2008 and 2007, respectively.
Depreciation expense was $53.2 million, $64.3 million and $56.5 million in fiscal 2008, 2007 and 2006, respectively.
Goodwill Goodwill represents the excess of purchase price over net assets acquired.
In accordance with SFAS No.142, Goodwill and Other Intangible Assets, the Company tests goodwill for potential impairment annually as of September 30 or more frequently if an event occurs or circumstances change that indicate the remaining balance of goodwill may not be recoverable.
In analyzing the potential impairment of goodwill, SFAS No.142 prescribes a two-step process that begins with the estimation of the fair value of the reporting units.
If the results of the first step indicate that impairment potentially exists, the second step is performed to measure the amount of the impairment, if any.
Impairment is determined to exist when the estimated fair value of goodwill is less than its carrying value.
See Note D.  Warranty Costs The Company typically provides its homebuyers a one-year comprehensive limited warranty for all parts and labor and a ten-year limited warranty for major construction defects.
Since the Company subcontracts its homebuilding work to subcontractors who typically provide it with an indemnity and a certificate of insurance prior to receiving payments for their work, claims relating to workmanship and materials are generally the primary responsibility of the subcontractors.
Warranty liabilities have been established by charging cost of sales for each home delivered.
The amounts charged are based on managements estimate of expected warranty-related costs under all unexpired warranty obligation periods.
The Companys warranty liability is based upon historical warranty cost experience in each market in which it operates and is adjusted as appropriate to reflect qualitative risks associated with the types of homes built and the geographic areas in which they are built.
Changes in the Companys warranty liability were as follows:


| Years Ended November 30, | 2006 | (Dollars in thousands) | Revenues | Costs and expenses | Operating earnings from continuing operations | Dollar value of mortgages originated | Number of mortgages originated | Mortgage capture rate of Lennar homebuyers | Number of title and closing service transactions | Number of title policies issued |


| December 31 2005 2004 | (In millions) | Gross Case Reserves | Gross IBNR Reserves | Total Gross Carried Claim and Claim Adjustment Expense Reserves | Net Case Reserves | Net IBNR Reserves | Total Net Carried Claim and Claim Adjustment Expense Reserves |


| 2012 2011 | December 31,(in millions,except ratios) | Home equity | Prime mortgage | Subprime mortgage | Option ARMs |


| (In millions) 2008 2007 2006 | E&P | United States | International | Total E&P | OSM | RM&T | IG | Corporate | Total |


| Pension and Postretirement Amounts Gains (Losses) on Derivative Instruments Unrealized Holding Gains on Available for-Sale Securities Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Earnings (Loss) | 2016 | Balance at December 27, 2015 | Current period other comprehensive earnings (loss) | Reclassifications from AOCE to earnings | Balance at December 25, 2016 | 2015 | Balance at December 28, 2014 | Current period other comprehensive earnings (loss) | Reclassifications from AOCE to earnings | Balance at December 27, 2015 | 2014 | Balance at December 29, 2013 | Current period other comprehensive earnings (loss) | Reclassifications from AOCE to earnings | Balance at December 28, 2014 |


| December 31 | (Dollars in millions) | Tier 1 Capital | Total shareholders’ equity | Goodwill | Nonqualifying intangible assets-1 | Effect of net unrealized (gains) losses on AFS debt and marketable equity securities and net (gains) losses on derivatives recorded in accumulated OCI,net-of-tax | Unamortized net periodic benefit costs recorded in accumulated OCI, net-of-tax | Trust securities | Other | Total Tier 1 Capital | Long-term debt qualifying as Tier 2 Capital | Allowance for loan and lease losses | Reserve for unfunded lending commitments | Other-2 | Total Capital |


| Year EndedDecember 31, Year EndedDecember 31, | 2014 | (In $ millions, except percentages) | Net sales | Net Sales Variance | Volume | Price | Currency | Other | Other (charges) gains, net | Operating profit (loss) | Operating margin | Equity in net earnings (loss) of affiliates | Depreciation and amortization |


| Payments Due by Period | Total | (Thousands of Dollars) | Long-term debt, principal and interest payments | Capital lease obligations | Operating leases(a),(b) | Unconditional purchase obligations | Other long-term obligations — WYCO investment | Other long-term obligations(c) | Payments to vendors in process | Short-term debt | Total contractual cash obligations(d) |


| Before Application of Statement 158 Adjustments After Application of Statement 158 | Other assets | Other liabilities | Deferred and accrued income taxes | Accumulated other comprehensive income | Shareholders’ equity |


| Years ended December 31, 2009 2008 Incrementalchange | NUMERATOR: | Operating income | Depreciation and amortization | Currency translation-1 | Incremental adjusted operating income plus depreciation and amortization (atconstant foreign exchange rates) | DENOMINATOR: | Weighted–average adjusted cash used for investing activities-2 | Currency translation-1 | Weighted–average adjusted cash used for investing activities (at constant foreign exchange rates) | One-year ROIIC-3 |


REINSURANCE AND TRUST AGREEMENTS Certain subsidiaries of Group have established trust agreements, which effectively use the Company’s investments as collateral, as security for assumed losses payable to certain non-affiliated ceding companies.
At December 31, 2015, the total amount on deposit in trust accounts was $454,384 thousand.
On April 24, 2014, the Company entered into two collateralized reinsurance agreements with Kilimanjaro Re Limited (“Kilimanjaro”), a Bermuda based special purpose reinsurer, to provide the Company with catastrophe reinsurance coverage.
These agreements are multi-year reinsurance contracts which cover specified named storm and earthquake events.
The first agreement provides up to $250,000 thousand of reinsurance coverage from named storms in specified states of the Southeastern United States.
The second agreement provides up to $200,000 thousand of reinsurance coverage from named storms in specified states of the Southeast, Mid-Atlantic and Northeast regions of the United States and Puerto Rico as well as reinsurance coverage from earthquakes in specified states of the Southeast, Mid-Atlantic, Northeast and West regions of the United States, Puerto Rico and British Columbia.
On November 18, 2014, the Company entered into a collateralized reinsurance agreement with Kilimanjaro Re to provide the Company with catastrophe reinsurance coverage.
This agreement is a multi-year reinsurance contract which covers specified earthquake events.
The agreement provides up to $500,000 thousand of reinsurance coverage from earthquakes in the United States, Puerto Rico and Canada.
On December 1, 2015 the Company entered into two collateralized reinsurance agreements with Kilimanjaro Re to provide the Company with catastrophe reinsurance coverage.
These agreements are multi-year reinsurance contracts which cover named storm and earthquake events.
The first agreement provides up to $300,000 thousand of reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada.
The second agreement provides up to $325,000 thousand of reinsurance coverage from named storms and earthquakes in the United States, Puerto Rico and Canada.
Kilimanjaro has financed the various property catastrophe reinsurance coverage by issuing catastrophe bonds to unrelated, external investors.
On April 24, 2014, Kilimanjaro issued $450,000 thousand of notes (“Series 2014-1 Notes”).
On November 18, 2014, Kilimanjaro issued $500,000 thousand of notes (“Series 2014-2 Notes”).
On December 1, 2015, Kilimanjaro issued $625,000 thousand of notes (“Series 2015-1 Notes).
The proceeds from the issuance of the Series 2014-1 Notes, the Series 2014-2 Notes and the Series 2015-1 Notes are held in reinsurance trust throughout the duration of the applicable reinsurance agreements and invested solely in US government money market funds with a rating of at least “AAAm” by Standard & Poor’s.


| Quoted Prices in Active Markets for Identified Assets (Level1) Significant Other Observable Inputs (Level 2) Significant Other Unobservable Inputs (Level 3) Total | Cash and cash equivalents | Equity securities: | U.S. large capitalization | U.S. small and mid-capitalization | International | Debt securities: | Corporate bonds | Municipal bonds | U.S. treasury and agency securities | Asset-backed securities | Other | Total | Plus: Medical benefit assets at December 31(a) | Less: Net payables at December31(b) | Fair value of postretirement benefit plans assets at year end | Net Cash Provided byOperating Activities | 2018 | Ameren | Ameren Missouri | Ameren Illinois |


SVB FINANCIAL GROUP AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) To the extent that a stock award is made from this reserve, in the form of a stock bonus award, restricted stock purchase agreement or restricted stock unit, the 1,784,765 share reserve will be reduced by an amount equal to two times the number of shares subject to that award.
Further, if shares acquired from the 1,784,765 share reserve pursuant to a stock bonus award, restricted stock purchase agreement or restricted stock unit are forfeited, two times the shares so forfeited will return to the 1,784,765 share reserve and will again become available for issuance.
The 1997 Plan provides for the granting of shares of our common stock to directors, employees, and non employees.
Shares granted under this plan may be subject to certain vesting requirements and resale restrictions (“restricted stock”).
For the years ended December 31, 2005 and 2004, we made restricted stock awards and granted restricted stock units for 174,811 shares of restricted stock at a weighted-average fair value of $45.13 per share and 156,025 shares at a weighted-average fair value of $36.81 per share, respectively.
At December 31, 2005, there were 252,068 shares of restricted stock outstanding, the vesting of these shares occurs on various dates through the years ending December 31, 2006, 2007, and 2008.
We recognized $7.1 million, $3.6 million and $1.1 million in employee and non-employee stock-based compensation costs resulting from the amortization of unearned compensation related to restricted stock and other miscellaneous employee and non-employee stock awards for the years ended December 31, 2005, 2004, and 2003, respectively.
If compensation cost related to both our stock option awards to employees and directors and to the ESPP had been determined under the fair value method prescribed under SFAS No.123, our net income would have been reduced by $17.1 million, $19.8 million and $19.0 million, for the years ended December 31, 2005, 2004, and 2003, respectively.
The fair value of the stock option grants used in determining the pro forma net income and the basic and diluted earnings per share amounts were estimated using the Black-Scholes single option-pricing model with the following average assumptions for the years ended December 31, 2005, 2004, and 2003:


Table of Contents Foreign Exchange Forward and Foreign Currency Option Contracts We enter into foreign exchange forward contracts and foreign currency option contracts with clients involved in foreign activities, either as the purchaser or seller, depending upon the clients’ need.
For each forward or option contract entered into with our clients, we enter into an opposite way forward or option contract with a correspondent bank, which mitigates the risk of fluctuations in currency rates.
We also enter into forward contracts with correspondent banks to economically reduce our foreign exchange exposure related to certain foreign currency denominated instruments.
Revaluations of foreign currency denominated instruments are recorded on the line item “Other” as part of noninterest income, a component of consolidated net income.
We have not experienced nonperformance by any counterparty to such forward or option contracts and therefore have not incurred any related losses.
Further, we anticipate performance by all counterparties.
Our net exposure for foreign exchange forward and foreign currency option contracts at December 31, 2014 and 2013 amounted to $1.1 million and $2.9 million , respectively.
For additional information on our foreign exchange forward contracts and foreign currency option contracts, see Note 13–“Derivative Financial Instruments” of the “Notes to the Consolidated Financial Statements” under Part II, Item 8 in this report.
Interest Rate Derivatives For information on our interest rate derivatives, please refer to Note 13–“Derivative Financial Instruments” of the “Notes to Consolidated Financial Statements” under Part II, Item 8 in this report.


| Company Index November 17, 2011 December 31, 2011 December 31, 2012 December 31, 2013 | Delphi Automotive PLC -1 | S&P 500 -2 | Automotive Supplier Peer Group -3 | Higher Risk Loans (a) | December 31, 2010 – dollars in millions | Home equity (b) | Residential real estate (c) | Total (d) | Credit Card (a) | Dollars in millions | December 31, 2011 | FICO score greater than 719 | 650 to 719 | 620 to 649 | Less than 620 | No FICO score available or required (c) | Total loans using FICO credit metric | Consumer loans using other internal credit metrics (b) | Total loan balance | Weighted-average current FICO score (d) | December 31, 2010 | FICO score greater than 719 | 650 to 719 | 620 to 649 | Less than 620 | No FICO score available or required (c) | Total loans using FICO credit metric | Consumer loans using other internal credit metrics (b) | Total loan balance | Weighted-average current FICO score (d) |


| 2012 2011 | (In millions) | Beginning balance at January 1 | Dispositions | Ending balance at December 31 | 2012 | (In millions) | Asset retirement obligations at January 1 | Liabilities incurred | Liabilities settled or disposed of | Accretion expense | Revisions of estimated liabilities | Foreign currency translation | Asset retirement obligations at December 31 | Less: Current obligations | Long-term obligations at December 31 |


| December 31, 2008 | Total   Balance   Sheet | (In millions) | Assets: | Premiums and other receivables | Deferred policy acquisition costs and value of business acquired | Total assets | Liabilities: | Future policy benefits | Policyholder account balances | Other policyholder funds | Other liabilities | Total liabilities |


Product Acquisitions In June 2008, we entered into a licensing and development agreement with TransPharma Medical Ltd.  (TransPharma) to acquire rights to its product and related drug delivery system for the treatment of osteoporosis.
The product, which is administered transdermally using TransPharmas proprietary technology, was in Phase II clinical testing, and had no alternative future use.
Under the arrangement, we also gained non-exclusive access to TransPharmas ViaDerm drug delivery system for the product.
As with many development-phase products, launch of the


2019 versus 2018 Net sales increased $139.1 million, or 1.5%, to $9.5 billion for the fiscal year 2019, from $9.3 billion for the fiscal year 2018.
The impact of currency translation resulted in a decrease of $368.9 million or 4.0%, somewhat offset by Bemis sales for the partial month of June of $215.4 million.
The growth in the legacy Amcor net sales revenue excluding currency impact of $292.6m or 3.1% was driven largely by favorable pricing of 2.3%, mainly from passing through higher raw material costs and inflation related costs in both the Flexibles and Rigid Packaging reporting segments and volume/mix impacts of 0.8%.
Net income attributable to Amcor plc decreased by $145.0 million, or 25.2%, to $430.2 million for the fiscal year 2019, from $575.2 million for the fiscal year 2018.
Net income for fiscal year 2019 was impacted by material acquisitions and other costs of $143.1 million, Rigid Packaging reporting segment restructuring expense of $64.1 million, highly inflationary accounting impacts of $30.2 million and other non-recurring items.
Adjusted net income of $729.5 million excluding these non-recurring items was up 4.6% on a reported basis and 9% after excluding the impact of currency.
Diluted EPS decreased to $0.36 for the fiscal year 2019, from $0.49 for the fiscal year 2018, with net income attributable to ordinary shareholders decreasing 25.2% and the diluted weighted average number of shares outstanding increased 1.9%.
EPS was impacted by the after tax impact of the non-recurring items referred to above.2018 versus 2017 Net sales increased $218.1 million, or 2.4%, to $9.3 billion for the fiscal year 2018, from $9.1 billion for the fiscal year 2017.
The impact of currency translation resulted in an increase of $275.1 million, or 3.0%, compared to fiscal year 2017.
The decrease in net sales revenue excluding currency impact $57.0 million, or 0.6%, was driven largely by a 2.1% reduction in volume/mix, mainly in the Rigid Packaging reporting segment, partially offset by favorable pricing of 0.6%, mainly from passing through higher raw material costs in both the Flexibles and Rigid Packaging reporting segments and benefits from acquisitions in the Rigid Packaging reporting segment of 0.6%.


changes to the loan arrangements including, but not limited to, amortization, collateral, guarantees, and covenants.
All Classified commercial loans are managed by our SAD.
The SAD is a specialized credit group that handles the day-to-day management of workouts, commercial recoveries, and problem loan sales.
Its responsibilities include developing action plans, assessing risk ratings, and determining the adequacy of the reserve, the accrual status, and the ultimate collectability of the Classified loan portfolio.
Our commercial loan portfolio, including CRE loans, is diversified by customer size, as well as geographically throughout our footprint.
During 2009, we engaged in a large number of enhanced portfolio management initiatives, including a review to ensure the appropriate classification of CRE loans.
The results of this initiative included reclassifications in 2009 totaling $1.4 billion that increased C&I loan balances, and correspondingly decreased CRE loan balances, primarily representing owner-occupied properties.
We believe the changes provide improved visibility and clarity to us and our investors.
We have continued this active portfolio management process throughout 2010, primarily focusing on improving our ability to identify changing conditions at the borrower level, which in most cases, significantly improved the outcome.
This process allows us to provide clarity regarding the credit trends in our portfolios.
Certain segments of our commercial loan portfolio are discussed in further detail below: C&I PORTFOLIO The C&I portfolio is comprised of loans to businesses where the source of repayment is associated with the on-going operations of the business.
Generally, the loans are secured with the financing of the borrowers assets, such as equipment, accounts receivable, or inventory.
In many cases, the loans are secured by real estate, although the operation, sale, or refinancing of the real estate is not a primary source of repayment for the loan.
For loans secured by real estate, appropriate appraisals are obtained at origination and updated on an as needed basis in compliance with regulatory requirements.
There were no outstanding commercial loans considered an industry or geographic concentration of lending.
Currently, higher-risk segments of the C&I portfolio include loans to borrowers supporting the home building industry, contractors, and automotive suppliers.
We manage the risks inherent in this portfolio through origination policies, concentration limits, on-going loan level reviews, recourse requirements, and continuous portfolio risk management activities.
Our origination policies for this portfolio include loan product-type specific policies such as LTV and debt service coverage ratios, as applicable.
C&I borrowers have been challenged by the weak economy, and some borrowers may no longer have sufficient capital to withstand the extended stress.
As a result, these borrowers may not be able to comply with the original terms of their credit agreements.
We continue to focus attention on the portfolio management process to proactively identify borrowers that may be facing financial difficulty to assess all potential solutions.
The impact of the economic environment is further evidenced by the level of line-of-credit activity, as borrowers continued to maintain relatively low utilization percentages over the past 12 months.
As shown in the following table, C&I loans totaled $13.1 billion at December 31, 2010: Table 16  Commercial and Industrial Loans and Leases by Class


| 2008 2007 | Retained Earnings | As previously reported | Minority interest (noncontrolling interests) in consolidated subsidiaries | Fair value of noncontrolling interest the Company is required to purchase | As adjusted |


Entergy Corporation and Subsidiaries Notes to Financial Statements The FERC proceedings that resulted from rate filings made in 2007, 2008, and 2009 have been resolved by various orders issued by the FERC and appellate courts.
See below for a discussion of rate filings since 2009 and the comprehensive recalculation filing directed by the FERC in the proceeding related to the 2010 rate filing.2010 Rate Filing Based on Calendar Year 2009 Production Costs In May 2010, Entergy filed with the FERC the 2010 rates in accordance with the FERC’s orders in the System Agreement proceeding, and supplemented the filing in September 2010.
Several parties intervened in the proceeding at the FERC, including the LPSC and the City Council, which also filed protests.
In July 2010 the FERC accepted Entergy’s proposed rates for filing, effective June 1, 2010, subject to refund, and set the proceeding for hearing and settlement procedures.
Settlement procedures have been terminated, and the ALJ scheduled hearings to begin in March 2011.
Subsequently, in January 2011 the ALJ issued an order directing the parties and FERC Staff to show cause why this proceeding should not be stayed pending the issuance of FERC decisions in the prior production cost proceedings currently before the FERC on review.
In March 2011 the ALJ issued an order placing this proceeding in abeyance.
In October 2013 the FERC issued an order granting clarification and denying rehearing with respect to its October 2011 rehearing order in this proceeding.
The FERC clarified that in a bandwidth proceeding parties can challenge erroneous inputs, implementation errors, or prudence of cost inputs, but challenges to the bandwidth formula itself must be raised in a Federal Power Act section 206 complaint or section 205 filing.
Subsequently in October 2013 the presiding ALJ lifted the stay order holding in abeyance the hearing previously ordered by the FERC and directing that the remaining issues proceed to a hearing on the merits.
The hearing was held in March 2014 and the presiding ALJ issued an initial decision in September 2014.
Briefs on exception were filed in October 2014.
In December 2015 the FERC issued an order affirming the initial decision in part and rejecting the initial decision in part.
Among other things, the December 2015 order directs Entergy Services to submit a compliance filing, the results of which may affect the rough production cost equalization filings made for the June - December 2005, 2006, 2007, and 2008 test periods.
In January 2016 the LPSC, the APSC, and Entergy Services filed requests for rehearing of the FERC’s December 2015 order.
In February 2016, Entergy Services submitted the compliance filing ordered in the December 2015 order.
The result of the true-up payments and receipts for the recalculation of production costs resulted in the following payments/receipts among the Utility operating companies:


| (in 000s) | Acquisition cost of underlying mortgage loans | Fair values: | Net proceeds: | Cash received | Less repurchase reserves | Beneficial interest in Trusts | MSRs | $1,022,000 | Computation of gain on sale: | Net proceeds | Less allocated cost ($995,000 / $1,022,000 x $1,000,000) | Recorded gain on sale | Recorded beneficial interest in Trusts($20,000 / $1,022,000 x $1,000,000) | Recorded value of MSRs ($7,000 / $1,022,000 x $1,000,000) | Recorded liability for repurchase reserves | Carrying Value at | April 30, 2007 | Mortgage loans held for investment | Mortgage loans held for sale | Residual interests in securitizations – AFS | Residual interests in securitizations – trading | Beneficial interest in Trusts – trading | Mortgage-backed securities | Fixed-income – trading (net) | Interest rate swaps | Investments at captive insurance subsidiary | Put options on Eurodollar futures | Carrying Value at | April 30, 2006 | Mortgage loans held for investment | Mortgage loans held for sale | Beneficial interest in Trusts – trading | Residual interests in securitizations – AFS | Fixed-income – trading (net) | Interest rate swaps | Investments at captive insurance subsidiary | Put options on Eurodollar futures | Forward loan sale commitments |


The decrease in payments on long-term debt in 2015 reflects the 2014 pay-off of our $15.0 million 7.34% Notes and $275.0 million 4.45% Senior Notes with borrowings under our CP program.
The debt issuance costs in 2016 and 2015 reflect the debt issuance costs paid in connection with the new Senior Credit Facilities entered into in May 2016 and November 2015, respectively.
Debt Covenants.
The outstanding indentures and comparable instruments contain customary covenants including, for example, limits on secured debt and sale/ leaseback transactions.
In addition, the Senior Credit Facilities require us to maintain a maximum leverage ratio of not more than 3.5 to 1.0.
As permitted under the terms of the Senior Credit Facilities, we made the election to increase the covenant to 4.0 to 1.0, effective for four consecutive quarters, beginning with the first quarter of 2016 and continuing through the fourth quarter of 2016.
None of these covenants are considered restrictive to our operations and, as of December 31, 2016, the Company was in compliance with all of our debt covenants.
The Company does not have any credit rating triggers that would accelerate the maturity of a material amount of the outstanding debt; however, the 6.3% Senior Notes due 2017, 2.3% Senior Notes due 2021, 3.3% Senior Notes due 2022, 3.25% Senior Notes due 2026 and 7.0% Senior Notes due 2037 (together, the Senior Notes) contain change in control provisions.
If the Company experiences a change of control or publicly announces the Companys intention to effect a change of control and the rating on the senior notes is lowered by Standard & Poors, or S&P, and Moodys Investors Service, or Moodys, below an investment grade rating within 60 days of such change of control or notice thereof, then the Company will be required to offer to repurchase the senior notes at a price equal to 101% of the aggregate principal amount of the senior notes plus accrued and unpaid interest.
Credit Ratings.
Credit ratings reflect an independent agencys judgment on the likelihood that a borrower will repay a debt obligation at maturity.
The ratings reflect many considerations, such as the nature of the borrowers industry and its competitive position, the size of the company, its liquidity and access to capital and the sensitivity of a companys cash flows to changes in the economy.
The two largest rating agencies, S&P and Moodys, use alphanumeric codes to designate their ratings.
The highest quality rating for long-term credit obligations is AAA and Aaa for S&P and Moodys, respectively.
A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency.
Long-term ratings of BBB- and Baa3 or better by S&P and Moodys, respectively, reflect ratings on debt obligations that fall within a band of credit quality considered to be investment grade.
At December 31, 2016, the long-term ratings for our obligations were BBB+ and Baa1, which are consistent with the ratings and outlooks which existed at December 31, 2015.
A downgrade in our credit rating would increase the cost of borrowings under our CP program and credit facilities, and could limit, or in the case of a significant downgrade, preclude our ability to issue CP.
If our credit ratings were to decline to lower levels, we could experience increases in the interest cost for any new debt.
In addition, the markets demand for, and thus our ability to readily issue, new debt could become further affected by the economic and credit market environment.
For additional information about our debt, including the terms of our financing arrangements, basis for variable interest rates and debt covenants, see Note 5 of the Notes to Consolidated Financial Statements in this report.


We hold an interest rate swap agreement to hedge the benchmark interest rate of our $375 million 5.0% senior unsecured notes due July 1, 2014.
The effect of the swap is to convert our 5.0% fixed interest rate to a variable interest rate based on the three-month LIBOR plus 2.05% (2.42% as of October 29, 2011).
In addition, we have a term loan facility of $145 million that bears interest at a fluctuating rate for each period equal to the LIBOR rate corresponding with the tenor of the interest period plus a spread of 1.25% (1.61% as of October 29, 2011).
If LIBOR increases by 100 basis points, our annual interest expense would increase by approximately $5 million.
However, this hypothetical change in interest rates would not impact the interest expense on our $375 million of 3% fixed-rate debt, which is not hedged.
As of October 30, 2010, a similar 100 basis point increase in LIBOR would have resulted in an increase of approximately $4 million to our annual interest expense.
Foreign Currency Exposure As more fully described in Note 2i in the Notes to Consolidated Financial Statements contained in Item 8 of this Annual Report on Form 10-K, we regularly hedge our non-U.
S.  dollar-based exposures by entering into forward foreign currency exchange contracts.
The terms of these contracts are for periods matching the duration of the underlying exposure and generally range from one month to twelve months.
Currently, our largest foreign currency exposure is the Euro, primarily because our European operations have the highest proportion of our local currency denominated expenses.
Relative to foreign currency exposures existing at October 29, 2011 and October 30, 2010, a 10% unfavorable movement in foreign currency exchange rates over the course of the year would expose us to approximately $6 million in losses in earnings or cash flows.
The market risk associated with our derivative instruments results from currency exchange rates that are expected to offset the market risk of the underlying transactions, assets and liabilities being hedged.
The counterparties to the agreements relating to our foreign exchange instruments consist of a number of major international financial institutions with high credit ratings.
Based on the credit ratings of our counterparties as of October 29, 2011, we do not believe that there is significant risk of nonperformance by them.
While the contract or notional amounts of derivative financial instruments provide one measure of the volume of these transactions, they do not represent the amount of our exposure to credit risk.
The amounts potentially subject to credit risk (arising from the possible inability of counterparties to meet the terms of their contracts) are generally limited to the amounts, if any, by which the counterparties obligations under the contracts exceed our obligations to the counterparties.


CONSOLIDATED RESULTS OF OPERATIONS The following section provides a comparative discussion of JPMorgan Chases Consolidated results of operations on a reported basis for the three-year period ended December 31, 2007.
Factors that relate primarily to a single business segment are discussed in more detail within that business segment than they are in this consolidated section.
For a discussion of the Critical accounting estimates used by the Firm that affect the Consolidated results of operations, see pages 9698 of this Annual Report.


| Year Ended December 31, | 2010 | Risk-free interest rate | Weighted average volatility | Dividend yield | Expected years until exercise |


(a) Includes $917 million and $454 million of commercial specific and commercial expected loss components, respectively, at December 31, 2003.
Includes $1.6 billion and $613 million of commercial specific and commercial expected loss components, respectively, at December 31, 2002.
(b) Includes $172 million and $105 million of commercial specific and commercial expected loss components, respectively, at December 31, 2003.
Includes $237 million and $87 million of commercial specific and commercial expected loss components, respectively, at December 31, 2002.
(c) Includes $138 million related to the transfer of the allowance for accrued interest and fees on securitized credit card loans.
Credit ratings The cost and availability of financing are influenced by credit ratings.
Reductions in these ratings could have an adverse effect on the Firms access to liquidity sources, increase the cost of funds, trigger additional collateral or funding requirements and decrease the number of investors and counterparties willing to lend to the Firm.
Additionally, the Firms funding requirements for VIEs and other thirdparty commitments may be adversely affected by a decline in credit ratings.
For additional information on the impact of a credit ratings downgrade on the funding requirements for VIEs, and on derivatives and collateral agreements, see Special-purpose entities on page 109, and Credit risk, liquidity risk and credit-related contingent features in Note 5 on pages 224225, of this Annual Report.
Critical factors in maintaining high credit ratings include a stable and diverse earnings stream, strong capital ratios, strong credit quality and risk management controls, diverse funding sources, and disciplined liquidity monitoring procedures.
The credit ratings of the parent holding company and certain of the Firms significant operating subsidiaries as of December 31, 2012, were as follows.


| Millions Dec. 31,2012 Dec. 31,2011 | Accounts payable | Accrued wages and vacation | Income and other taxes | Dividends payable | Accrued casualty costs | Interest payable | Equipment rents payable | Other | Total accounts payable and othercurrent liabilities |


| 2017 2016 | Balance, beginning of year | Goodwill acquired as part of acquisition | Working capital settlement | Impairment loss | Balance, end of year |


| For the Year Ended December 31, 2015 For the Year Ended December 31, 2014 | (Millions of Dollars) | Operating revenues | Purchased power | Fuel | Gas purchased for resale | Other operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Operating income |


Interest Margin Interest margin, which represents the difference between interest earned and interest credited to policyholder account balances, decreased in the Institutional and Individual segments for the year ended December 31, 2006 as compared to the prior year.
Interest earned approximates net investment income on investable assets attributed to the segment with minor adjustments related to the consolidation of certain separate accounts and other minor non-policyholder elements.
Interest credited is the amount attributed to insurance products, recorded in policyholder benefits and claims, and the amount credited to policyholder account balances for investment-type products, recorded in interest credited to policyholder account balances.
Interest credited on insurance products reflects the current period impact of the interest rate assumptions established at issuance or acquisition.
Interest credited to policyholder account balances is subject to contractual terms, including some minimum guarantees.
This tends to move gradually over time to reflect market interest rate movements and may reflect actions by management to respond to competitive pressures and, therefore, generally does not introduce volatility in expense.


| Balance at Beginning of Period Goodwill Acquired During the Year Foreign Currency Translation Balance at End of Period | Year Ended December 31, 2003 | Food Packaging | Protective and Specialty Packaging | Total | Year Ended December 31, 2002 | Food Packaging | Protective and Specialty Packaging | Total |


| 2008 % Change 2007 % Change 2006 | Net Revenues | U.S. and Canada | International | Operating Profit | U.S. and Canada | International |


| Commitment Expires | TotalCommitment | Standby letters of credit | Guarantees | $119.9 |


| Years Ended December 31, | (Dollars in thousands) | Interest expense incurred |


$239 million, respectively, at December 31, 2015.
The fair value of the Companys interest reflected the PennyMac stock price at December 31, 2016 and 2015, respectively (a Level 1 input).
The Company performed an other-thantemporary impairment analysis as of December 31, 2016 and determined the decline in fair value below the carrying value to be temporary.12.
Borrowings Short-Term Borrowings 2016 Revolving Credit Facility.
The Companys credit facility has an aggregate commitment amount of $4.0 billion and was amended in April 2016 to extend the maturity date to March 2021 (the 2016 credit facility).
The 2016 credit facility permits the Company to request up to an additional $1.0 billion of borrowing capacity, subject to lender credit approval, increasing the overall size of the 2016 credit facility to an aggregate principal amount not to exceed $5.0 billion.
Interest on borrowings outstanding accrues at a rate based on the applicable London Interbank Offered Rate plus a spread.
The 2016 credit facility requires the Company not to exceed a maximum leverage ratio (ratio of net debt to earnings before interest, taxes, depreciation and amortization, where net debt equals total debt less unrestricted cash) of 3 to 1, which was satisfied with a ratio of less than 1 to 1 at December 31, 2016.
The 2016 credit facility provides back-up liquidity to fund ongoing working capital for general corporate purposes and various investment opportunities.
At December 31, 2016, the Company had no amount outstanding under the 2016 credit facility.
Commercial Paper Program.
The Company can issue unsecured commercial paper notes (the CP Notes) on a private-placement basis up to a maximum aggregate amount outstanding at any time of $4.0 billion.
The commercial paper program is currently supported by the 2016 credit facility.
At December 31, 2016, BlackRock had no CP Notes outstanding.
Long-Term Borrowings The carrying value and fair value of long-term borrowings estimated using market prices and foreign exchange rates at December 31, 2016 included the following:


| Years Ended December 31, | (Dollars in millions) | 2016 | Attritional | Catastrophes | Total segment | 2015 | Attritional | Catastrophes | Total segment | 2014 | Attritional | Catastrophes | Total segment | Variance 2016/2015 | Attritional | Catastrophes | Total segment | Variance 2015/2014 | Attritional | Catastrophes | Total segment | (Some amounts may not reconcile due to rounding.) |


| Fiscal Years Ended | September 30,2011 | (dollars in thousands) | Research and development | % of net revenue |


| Employee Stock Options Non-employee Stock Options | Shares | Outstanding at December 31, 2004 | Granted | Exercised | Forfeited | Expired | Transferred | Outstanding at December 31, 2005 | Granted | Exercised | Forfeited | Expired | Transferred | Outstanding at December 31, 2006 | Granted | Exercised | Forfeited | Expired | Transferred | Outstanding at December 31, 2007 | Vested and expected to vest at December 31, 2007 | Exercisable at December 31, 2007 |


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


| Balance, November 1, 2008 $13,750 | Additions for tax positions of 2009 | Balance, October 31, 2009 | Additions for tax positions of 2010 | Balance, October 30, 2010 | Additions for tax positions related to prior years | Reductions for tax positions related to prior years | Settlements with taxing authorities | Balance, October 29, 2011 |


| 2011 2010 2009 | Balance, beginning of year | Sales inducements deferred | Amortization charged to income | Amortization — Unlock | Balance, end of year |


| Year Ended December 31, 2017 | (in millions) | Unrecognized tax benefits – January 1 | Unrecognized tax benefits increases (decreases) | Gross increases – tax positions in prior periods | Gross decreases – tax positions in prior periods | Total changes | Unrecognized tax benefits – December 31 | Year Ended December 31, 2016 | (in millions) | Unrecognized tax benefits – January 1 | Unrecognized tax benefits increases (decreases) | Gross increases – tax positions in prior periods | Gross decreases – tax positions in prior periods | Decreases due to settlements | Reduction due to lapse of statute of limitations | Total changes | Unrecognized tax benefits – December 31 | Year Ended December 31, 2015 | (in millions) | Unrecognized tax benefits – January 1 | Unrecognized tax benefits increases (decreases) | Gross increases – tax positions in prior periods | Gross decreases – tax positions in prior periods | Decreases due to settlements | Reduction due to lapse of statute of limitations | Total changes | Unrecognized tax benefits – December 31 | (In Millions) | 2003 net revenue | Volume/weather | Summer capacity charges | Base rates | Deferred fuel cost revisions | Price applied to unbilled sales | Other | 2004 net revenue |


| $ in millions 2017 2016 2015 2014 2013 | Business combination related: | Employee compensation expense(a) | Transaction and integration expense(b) | Intangible amortization expense(c) | Adjustments to operating income | Change in contingent consideration estimates(d) | Foreign exchange gain related to business acquisitions(e) | Other-than-temporary impairment(f) | Taxation: | Taxation on employee compensation expense(a) | Taxation on transaction and integration(b) | Taxation on amortization(c) | Deferred taxation(g) | Taxation on change in contingent consideration estimates(d) | Taxation on foreign exchange gain related to businessacquisitions(e) | (Income)/loss from discontinued operations, net of taxes(h) | Adjustments to net income attributable to Invesco Ltd. |


| Variance | (Dollar amounts in millions) | Net gain (loss) on investments(1) | Private equity | Real estate | Distressed credit/mortgage funds | Hedge funds/funds of hedge funds | Other investments-2 | Sub-total | Investments related to deferred compensation plans | Total net gain (loss) on investments | Interest and dividend income | Interest expense | Net interest expense | Total non-operating income (expense)(1) | Compensation expense related to (appreciation) depreciation on deferred compensation plans | Non-operating income (expense), as adjusted(1) |


| December 31, 2010 December 31, 2009 | Cost | (in millions) | Public Equity | Perpetual preferred stocks-1 | Non-redeemable preferred stocks | Common stock | Total public equity | Private Equity | Perpetual preferred stocks-1 | Non-redeemable preferred stocks | Common stock | Total private equity | Total equity |


The income approach indicates value for an asset or liability based on the present value of cash flow projected to be generated over the remaining economic life of the asset or liability being measured.
Both the amount and the duration of the cash flows are considered from a market participant perspective.
Our estimates of market participant net cash flows considered historical and projected pricing, remaining developmental effort, operational performance including company-specific synergies, aftermarket retention, product life cycles, material and labor pricing, and other relevant customer, contractual and market factors.
Where appropriate, the net cash flows are adjusted to reflect the uncertainties associated with the underlying assumptions, as well as the risk profile of the net cash flows utilized in the valuation.
The adjusted future cash flows are then discounted to present value using an appropriate discount rate.
Projected cash flow is discounted at a required rate of return that reflects the relative risk of achieving the cash flows and the time value of money.
The market approach is a valuation technique that uses prices and other relevant information generated by market transactions involving identical or comparable assets, liabilities, or a group of assets and liabilities.
Valuation techniques consistent with the market approach often use market multiples derived from a set of comparables.
The cost approach, which estimates value by determining the current cost of replacing an asset with another of equivalent economic utility, was used, as appropriate, for property, plant and equipment.
The cost to replace a given asset reflects the estimated reproduction or replacement cost, less an allowance for loss in value due to depreciation.
The purchase price allocation resulted in the recognition of $2.8 billion of goodwill, all of which is expected to be amortizable for tax purposes.
Substantially all of the goodwill was assigned to our RMS business.
The goodwill recognized is attributable to expected revenue synergies generated by the integration of our products and technologies with those of Sikorsky, costs synergies resulting from the consolidation or elimination of certain functions, and intangible assets that do not qualify for separate recognition, such as the assembled workforce of Sikorsky.
Determining the fair value of assets acquired and liabilities assumed requires the exercise of significant judgments, including the amount and timing of expected future cash flows, long-term growth rates and discount rates.
The cash flows employed in the DCF analyses are based on our best estimate of future sales, earnings and cash flows after considering factors such as general market conditions, customer budgets, existing firm orders, expected future orders, contracts with suppliers, labor agreements, changes in working capital, long term business plans and recent operating performance.
Use of different estimates and judgments could yield different results.


At December 31, 2010, 175 million shares collectively were authorized for future grants under the Companys share-based compensation plans.
Prior to the Merger, employee share-based compensation awards were settled primarily with treasury shares.
Subsequent to the Merger, these awards are either being settled with newly issued shares or treasury shares.
Employee stock options are granted to purchase shares of Company stock at the fair market value at the time of grant.
These awards generally vest one-third each year over a three-year period, with a contractual term of 7- 10 years.
RSUs are stock awards that are granted to employees and entitle the holder to shares of common stock as the awards vest.
The fair value of the stock option and RSU awards is determined and fixed on the grant date based on the Companys stock price.
PSUs are stock awards where the ultimate number of shares issued will be contingent on the Companys performance against a pre-set objective or set of objectives.
The fair value of each PSU is determined on the date of grant based on the Companys stock price.
For RSUs and certain PSUs granted before December 31, 2009 employees participate in dividends on the same basis as common shares and such dividends are nonforfeitable by the holder.
For RSUs and PSUs issued on or after January 1, 2010, dividends declared during the vesting period are payable to the employees only upon vesting.
The fair value of stock option, RSU and PSU replacement awards was determined and fixed at the time of the Merger.
Over the PSU performance period, the number of shares of stock that are expected to be issued will be adjusted based on the probability of achievement of a performance target and final compensation expense will be recognized based on the ultimate number of shares issued.
RSU and PSU distributions will be in shares of Company stock after the end of the vesting or performance period, generally three years, subject to the terms applicable to such awards.
Total pretax share-based compensation cost recorded in 2010, 2009 and 2008 was $509 million, $415 million and $348 million, respectively, with related income tax benefits of $173 million, $132 million and $108 million, respectively.
The Company uses the Black-Scholes option pricing model for determining the fair value of option grants.
In applying this model, the Company uses both historical data and current market data to estimate the fair value of its options.
The Black-Scholes model requires several assumptions including expected dividend yield, riskfree interest rate, volatility, and term of the options.
The expected dividend yield is based on historical patterns of dividend payments.
The risk-free rate is based on the rate at grant date of zero-coupon U. S.  Treasury Notes with a term equal to the expected term of the option.
Expected volatility is estimated using a blend of historical and implied volatility.
The historical component is based on historical monthly price changes.
The implied volatility is obtained from market data on the Companys traded options.
The expected life represents the amount of time that options granted are expected to be outstanding, based on historical and forecasted exercise behavior.
The weighted average grant price of options granted in 2010, 2009 and 2008 was $34.30, $24.31 and $43.35 per option, respectively.
The weighted average fair value of options granted in 2010, 2009 and 2008 was $7.99, $4.02 and $9.80 per option, respectively, and were determined using the following assumptions:


| December 31, 2009 December 31,2008 | AAA/Aaa | AA/Aa | A/A | BBB/Baa | Total |


Liquidity and Capital Resources The major components of changes in cash flows for 2016, 2015 and 2014 are discussed in the following paragraphs.
The following table summarizes our cash flow from operating activities, investing activities and financing activities for the years ended December 31, 2016, 2015 and 2014 (in millions of dollars):


Restricted Stock Units The 2005 ICP provides for the grant of deferred share units to non-employee directors of the Company and restricted stock units to employees.
The director awards are fully vested upon issuance.
The deferred share units are settled for Ameriprise Financial common stock upon the director’s termination of service.
The employee awards generally vest ratably over three to four years.
Compensation expense for deferred share units and restricted stock units is based on the market price of Ameriprise Financial stock on the date of grant.
Restricted stock units granted to employees are amortized on a straight-line basis over the vesting period or accelerated basis due to retirement eligibility.
Deferred share units granted to non-employee directors are expensed immediately.
Restricted stock units include units awarded under the DCP.
As of December 31, 2010, there were approximately 1.4 million units outstanding of restricted stock units, including deferred share units, of which approximately 1.1 million units were fully vested.


| For the year ended December 31, Increase (decrease) | 2008 | (in millions) | Operating revenues: | Premiums and other considerations | Fees and other revenues | Net investment income | Total operating revenues | Expenses: | Benefits, claims and settlement expenses, including dividends to policyholders | Operating expenses | Total expenses | Operating earnings before income taxes | Income taxes | Operating earnings |


| October 28, 2017 October 29, 2016 | Principal Amount Outstanding | 3-Year term loan | 5-Year term loan | 2021 Notes, due December 2021 | 2023 Notes, due June 2023 | 2023 Notes, due December 2023 | 2025 Notes, due December 2025 | 2026 Notes, due December 2026 | 2036 Notes, due December 2036 | 2045 Notes, due December 2045 |


| Due in | 1 Year or Less | (in 000’s) | Commercial Loans | Real Estate Construction Loans | Commercial Real Estate Loans -1 | Residential Mortgage Loans | Consumer Loans | Total Loans |


Death Benefits (GMDB) For premiums and claims from VA contracts reinsuring GMDBs, at current market levels, we expect approximately $105 million of claims and $91 million of premium on death benefits over the next 12 months.
Guaranteed Living Benefits (includes GMIB and GMAB) Premiums and claims from VA contracts reinsuring predominantly Guaranteed Minimum Income Benefits (GMIB) and Guaranteed Minimum Accumulation Benefits (GMAB) are collectively known as Guaranteed Living Benefits (GLB).
Substantially all of our living benefit reinsurance clients policyholders are currently ineligible to trigger a claim payment.
The vast majority of these policyholders become eligible in years 2013 and beyond.
At current market levels, we expect approximately $1 million of claims and $149 million of premium on living benefits over the next 12 months.
Collateral In order for its U. S. -domiciled clients to obtain statutory reserve credit, ACE Tempest Life Re holds collateral on behalf of its clients in the form of qualified assets in trust or letters of credit, in an amount sufficient for them to obtain statutory reserve credit.
The timing of the calculation and amount of the collateral varies by client according to the particulars of the reinsurance treaty and the statutory reserve guidelines of the clients state of domicile.
Refer to Note 4 i) to the Consolidated Financial Statements.


| 2012 2011 2010 | Revenue | Converters | Amplifiers/Radio frequency | Other analog | Subtotal analog signal processing | Power management & reference | Total analog products | Digital signal processing | Total Revenue |


| Years Ended December 31, | 2008 | (in millions, except percentages) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Premiums | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest credited to fixed accounts | Benefits, claims, losses and settlement expenses | Amortization of deferred acquisition costs | Interest and debt expense | Separation costs | General and administrative expense | Total expenses | Pretax income (loss) | Income tax provision (benefit) | Net income (loss) | Less: Net loss attributable to noncontrolling interests | Net income (loss) attributable to Ameriprise Financial |


| Pension Plans | (Millions of dollars) | Service cost | Interest cost | Expected return on plan assets | Amortization of prior service credit | Amortization of loss | Settlements | Net pension cost | Net pension cost included in the preceding table that is attributable to international plans |


| DATE CITI S&P 500 S&P FINANCIALS | 31-Dec-2011 | 31-Dec-2012 | 31-Dec-2013 | 31-Dec-2014 | 31-Dec-2015 | 31-Dec-2016 |