Americas.
In 2017, total net sales increased $29.0 million, or 2%, which included comparable sales increasing $19.9 million, or 1%.
Management attributed performance in this region to an increase in spending by local customers.
On a constant-exchange-rate basis, total net sales increased 1% and comparable sales increased 1%.
The increase in the number of jewelry units sold reflected increases in the Jewelry collections and Designer jewelry categories.
The decrease in average price per jewelry unit sold reflected decreases across all categories.
Asia-Pacific.
In 2017, total net sales increased $95.9 million, or 10%, which included comparable sales decreasing $6.2 million, or 1%.
Total net sales growth was due to increased wholesale sales, primarily in Korea, and the effect of new stores, while comparable store sales reflected growth in mainland China offset by declines in most other countries.
Management attributed the declines in other Asia-Pacific countries partly to lower spending by Chinese tourists.
On a constant-exchange-rate basis, total net sales increased 8% and comparable sales decreased 2%.
The increase in the number of jewelry units sold reflected increases in Jewelry collections and the Designer jewelry categories.
Management attributed the decrease in the average price per jewelry unit sold to a shift in sales mix to the Jewelry collections and Designer jewelry categories that partly resulted from the increase in wholesale sales noted above.
Japan.
In 2017, total net sales decreased $8.1 million, or 1%, which included comparable sales decreasing $3.6 million, or 1%.
The sales declines reflected the negative effect of currency translation.
On a constant-exchange-rate basis, total net sales increased 1% and comparable sales increased 2%.
The decrease in the number of jewelry units sold primarily reflected decreases in the Jewelry collections and the Designer jewelry categories, partly offset by increases in the Engagement jewelry category.
Europe.
In 2017, total net sales increased $26.5 million, or 6%, which included comparable sales decreasing $1.4 million, each benefiting from the positive effect of currency translation.
Total net sales growth also reflected the effect of new stores and e-commerce sales growth.
Management attributed retail sales growth to higher spending by local customers.
On a constant-exchange-rate basis, total net sales increased 3% while comparable sales decreased 2%, due to similar trends noted above.
The increase in the number of jewelry units sold reflected increases across all categories.
Management attributed the increase in average price per unit sold to the positive effect of currency translation.
Other.
In 2017, total net sales increased $24.7 million, or 26%, primarily due to an increase in wholesale sales of diamonds.
Store Data.
In 2018, the Company increased gross retail square footage by 1%, net, through store openings, closings and relocations.
The Company opened 10 stores and closed four: opening four in Asia-Pacific (three in China and one in Thailand), two in the Americas (one each in the U. S.  and Latin America), two in Europe (one each in Germany and Denmark), one in Japan and one in the Emerging Markets, while closing two stores in the Americas (in the U. S. ), one store in Asia-Pacific (in China) and one store in Europe (in Italy).
In addition, the Company relocated 10 existing stores.
In 2017, the Company increased gross retail square footage by 3%, net, through store openings, closings and relocations.
The Company opened nine stores and closed seven: opening five in Asia-Pacific (two in China, two in


| 2009 2008 2007 | Loss and loss expense ratio, as reported | Catastrophe losses | Prior period development | Loss and loss expense ratio, adjusted | % Change | (in millions of U.S. dollars) | Net premiums written | Net premiums earned | Losses and loss expenses | Policy acquisition costs | Administrative expenses | Underwriting income | Net investment income | Net realized gains (losses) | Other (income) expense | Income tax expense | Net income | Loss and loss expense ratio | Policy acquisition cost ratio | Administrative expense ratio | Combined ratio | Moody’s Rating Category | Investment Grade: | Aaa-Baa | Below Investment Grade: | Ba | B | Caa-C |


| December 31, | (millions of dollars) | Deferred income taxes — current assets* | Deferred income taxes — current liabilities* | Other non-current assets* | Other non-current liabilities* | Net deferred tax asset (current and non-current) |


| Shares Subject To Option Weighted Average Exercise Price Weighted-Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) | Options outstanding at December 31, 2003 | Granted | Forfeited | Exercised | Options outstanding at December 31, 2004 | Granted | Forfeited | Exercised | Options outstanding at December 31, 2005 | Granted | Forfeited | Exercised | Options outstanding at December 31, 2006 |


| 2010 Period-to- Period Change 2009 Period-to- Period Change 2008 | Depreciation of tangible property and equipment | Amortization of landfill airspace | Amortization of intangible assets | $1,194 |


| For the Years Ended December 31, | 2014 | (Dollars in thousands) | Maintenance materials and supplies |


| Year Ended December 31 2015 over 2014 2014 over 2013 | ($ in millions) | Cost of product sales | % of product sales | Cost of service revenues | % of service revenues | Income (loss) from operating investments, net | General and administrative expenses | % of total sales and service revenues | Goodwill impairment | Cost of sales and service revenues |


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS Non-Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis During 2009, we classified the Atlantic Star as held for sale and recognized a charge of $7.1 million to reduce the carrying value of the ship to its fair value less cost to sell based on a firm offer received during 2009.
This amount was recorded within other operating expenses in our consolidated statement of operations.
We determined the fair market value of the Atlantic Star as of December 31, 2010 based on comparable ship sales adjusted for the condition, age and size of the ship.
We have categorized these inputs as Level 3 because they are largely based on our own assumptions.
As of December 31, 2010, the carrying amount of the Atlantic Star which we still believe represents its fair value was $46.4 million.
The following table presents a reconciliation of the Companys fuel call options beginning and ending balances as follows (in thousands):


| Years Ended December 31, | 2017 | Common shares outstanding at January 1 | Issuance of restricted stock, excluding restricted stock with performance feature | Vesting of performance units | Vesting of restricted stock with performance feature | Forfeitures of restricted stock | Purchase of treasury stock-1 | Common shares outstanding at December 31 |


rights plan, the Company declared a dividend of one right (
“Right”) on each share of Noble Energy, Inc.  common stock.
Each Right will entitle the holder to purchase one one-hundredth of a share of a new Series A Junior Participating Preferred Stock, par value $1.00 per share, at an exercise price of $150.00.
The Rights are not currently exercisable and will become exercisable only in the event a person or group acquires beneficial ownership of 15 percent or more of Noble Energy, Inc.  common stock.
The dividend distribution was made on September 8, 1997, to stockholders of record at the close of business on that date.
The Rights will expire on September 8, 2007.
A summary of the status of Noble Energy’s stock option plans as of December 31, 2000, 2001 and 2002, and changes during each of the years then ended, is presented below.


| December 31 2009 2008 | 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 |


| Year Ended December 31 % Change in | $ in millions | Sales | Operating income | Operating margin rate |


| December 31 2018 2017 2016 | Michigan | Texas | California | Other Markets: | Arizona | Florida | Canada | Total Other Markets | Total |


The following table provides the historical cash flows under these policies for the periods indicated.
The amounts represent accrued past premium received and claims paid, split by benefit type.


The Company’s policy is generally to take possession of securities purchased under agreements to resell and securities borrowed, and to receive securities and cash posted as collateral (with rights of rehypothecation).
In certain cases, the Company may agree for such collateral to be posted to a third-party custodian under a tri-party arrangement that enables the Company to take control of such collateral in the event of a counterparty default.
The Company also monitors the fair value of the underlying securities as compared with the related receivable or payable, including accrued interest, and, as necessary, requests additional collateral as provided under the applicable agreement to ensure such transactions are adequately collateralized.
The risk related to a decline in the market value of collateral (pledged or received) is managed by setting appropriate market-based haircuts.
Increases in collateral margin calls on secured financing due to market value declines may be mitigated by increases in collateral margin calls on reverse repurchase agreements and securities borrowed transactions with similar quality collateral.
Additionally, the Company may request lower quality collateral pledged be replaced with higher quality collateral through collateral substitution rights in the underlying agreements.
The Company actively manages its secured financing in a manner that reduces the potential refinancing risk of secured financing for less liquid assets.
The Company considers the quality of collateral when negotiating collateral eligibility with counterparties, as defined by its fundability criteria.
The Company utilizes shorter-term secured financing for highly liquid assets and has established longer tenor limits for less liquid assets, for which funding may be at risk in the event of a market disruption.


| As of March 2, 2012 | Intangible Assets (in millions) | Total |


| Shares WeightedAverageExercisePrice Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value | (In millions, except per share amounts and years) | Outstanding at January 1, 2012 | Granted and assumed | Exercised | Forfeited/expired/canceled | Outstanding at December 31, 2012 | Expected to vest | Options exercisable |


Stock Performance Graph The following performance graph and related information shall not be deemed “soliciting material” or to be “filed” with the Securities and Exchange Commission, nor shall such information be incorporated by reference into any future filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, each as amended, except to the extent that Sysco specifically incorporates such information by reference into such filing.
The following stock performance graph compares the performance of Sysco’s Common Stock to the S&P 500 Index and to the S&P 500 Food/ Staple Retail Index for Sysco’s last five fiscal years.
The graph assumes that the value of the investment in our Common Stock, the S&P 500 Index, and the S&P 500 Food/Staple Index was $100 on the last trading day of fiscal 2006, and that all dividends were reinvested.
Performance data for Sysco, the S&P 500 Index and the S&P 500 Food/ Staple Retail Index is provided as of the last trading day of each of our last five fiscal years.


| Schedule of Loss Reserve Development | Year Ended December 31 | (In millions of dollars) | Originally reported gross reserves for unpaid claim and claim adjustment expenses | Originally reported ceded recoverable | Originally reported net reserves for unpaid claim and claim adjustment expenses | Cumulative net paid as of: | One year later | Two years later | Three years later | Four years later | Five years later | Six years later | Seven years later | Eight years later | Nine years later | Ten years later | Net reserves re-estimated as of: | End of initial year | One year later | Two years later | Three years later | Four years later | Five years later | Six years later | Seven years later | Eight years later | Nine years later | Ten years later | Total net (deficiency) redundancy | Reconciliation to gross re-estimated reserves: | Net reserves re-estimated | Re-estimated ceded recoverable | Total gross re-estimated reserves | Total gross (deficiency) redundancy | Net (deficiency) redundancy related to: | Asbestos | Environmental pollution | Total asbestos and environmental pollution | Core (Non-asbestos and environmental pollution) | Total net (deficiency) redundancy | December 31 | (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 |


| For the years ended December 31, | ($ in millions, except per share data) | Numerator: | Net income | Less: Preferred stock dividends | Net income applicable to common shareholders-1 | Denominator: | Weighted average common shares outstanding | Effect of dilutive potential common shares: | Stock options | Restricted stock units (non-participating) and performance stock awards | Weighted average common and dilutive potential common shares outstanding | Earnings per common share – Basic | Earnings per common share – Diluted |


wrote-off debt issuance costs of $4 million, which resulted in an extraordinary loss for the early retirement of debt.
Net income Net income decreased $522 million to $273 million in 2001 from $795 million in 2000.
The overall decrease in net income is due to decreased net income from competitive supply and large utility businesses offset slightly by increases in the contract generation and growth distribution businesses.
The decreases are primarily due to lower market prices in the United Kingdom and the decline in the Brazilian Real during 2001 resulting in foreign currency transaction losses of approximately $210 million.
Additionally the Company recorded severance and transaction costs related to the IPALCO pooling-of-interest transaction and a loss from discontinued operations of $194 million.
Our 10 largest contributors to net income in 2001 were as follows: Lal Pir/Pak Gen, Shady Point and Thames from contract generation; Somerset from competitive supply; EDC, Eletropaulo, IPALCO, CILCORP and CEMIG from large utilities; and Sul from growth distribution.2000 COMPARED TO 1999 Revenues Revenues increased $3.4 billion, or 83%, to $7.5 billion in 2000 from $4.1 billion in 1999.
The increase in revenues is due primarily to the acquisition of new businesses.
Excluding businesses acquired or that commenced commercial operations during 2000 or 1999, revenues increased 6% to $3.6 billion.
Contract generation revenues increased $400 million, or 31%, to $1.7 billion in 2000 from $1.3 billion in 1999.
Excluding businesses acquired or that commenced commercial operations in 2000 or 1999, contract generation revenues increased 4% to $1.3 billion in 2000.
The increase in contract generation segment revenues was due primarily to increases in South America, North America, Caribbean and Asia, offset by a slight decline in Europe/Africa.
In South America, contract generation segment revenue increased $245 million, and this is due mainly to the acquisition of Tiete.
In North America, contract generation segment revenues increased $76 million due primarily to the start of commercial operations at Warrior Run in January 2000.
In the Caribbean, contract generation segment revenues increased $92 million due primarily to the start of commercial operations at Merida III in June 2000 and increased revenues from Los Mina.
In Asia, contract generation segment revenue increased $41 million due primarily to increased operations at the Ecogen peaking plant and Lal Pir and Pak Gen in Pakistan.
In Europe/Africa, contract generation segment revenues remained fairly constant with decreases at Tisza II in Hungary being offset by the acquisition of a controlling interest at Kilroot.
Competitive supply revenues increased $1.5 billion, or 175%, to $2.4 billion in 2000 from $873 million in 1999.
Excluding businesses acquired or that commenced commercial operations in 2000 or 1999, competitive supply revenues increased 25% to $477 million in 2000.
The most significant increases occurred within North America and Europe/Africa.
Slight increases occurred in South America and the Caribbean.
Asia reported a slight decrease.


The intrinsic values, which represent the difference between the fair market value on the date of exercise and the exercise price of the option, of the options exercised in fiscal 2012, 2011 and 2010 were $49,225, $26,308 and $80,783, respectively.
At December 30, 2012, the amount of total unrecognized compensation cost related to stock options was $14,000 and the weighted average period over which this will be expensed is 22 months.
In 2011 and 2010, the Company granted awards to certain employees consisting of cash settled restricted stock units.
Under these awards, the recipients are granted restricted stock units that vest over three years.
At the end of the vesting period, the fair value of those units based on Hasbro’s stock price will be paid in cash to the recipient.
The Company accounts for these awards as a liability and marks the vested portion of the award to market through the statement of operations.
In 2012, 2011 and 2010, the Company recognized expense of $1,348, $804 and $1,004, respectively related to these awards.
In 2012, 2011 and 2010, the Company granted 44, 33 and 36 shares of common stock, respectively, to its non-employee members of its Board of Directors.
Of these shares, the receipt of 33 shares from the 2012 grant, 27 shares from the 2011 grant and 30 shares from the 2010 grant has been deferred to the date upon which the respective director ceases to be a member of the Company’s Board of Directors.
These awards were valued at the market value of the underlying common stock at the date of grant and vested upon grant.
In connection with these grants, compensation cost of $1,560, $1,560 and $1,440 was recorded in selling, distribution and administration expense in 2012, 2011 and 2010, respectively.


Other Industry Developments On September 7, 2017, the UK Ministry of Justice announced a proposal to increase the Ogden rate from negative 0.75 percent to between zero and one percent.
Following this announcement, on December 20, 2018 the UK Parliament passed the Civil Liability Act 2018 which implements a new framework for determining the Ogden rate and requires the UK Ministry of Justice to start a review of the Ogden rate within 90 days of its commencement and review periodically thereafter.
The Ministry of Justice concluded a public call for evidence on January 30, 2019 prior to beginning its first review.
We will continue to monitor the progress of potential changes to the Ogden rate.


Revenue related to our creative professional products, which include our Creative Suite editions and CS point products as well as Creative Cloud, decreased during fiscal 2013 as compared to fiscal 2012 due to continued customer adoption of Creative Cloud subscription offerings, released in May 2012, for which revenue is recognized over time.
Revenue associated with our other creative products increased during fiscal 2013 as compared to fiscal 2012, primarily due to increases associated with distribution of third-party software downloads and our Digital Publishing Suite.
These increases were partially offset by decreases in revenue associated with our Hobbyist products.
For our creative offerings, the total number of perpetual units licensed decreased while the number of subscription units licensed increased during fiscal 2013 as compared to fiscal 2012.
Unit average selling prices for our perpetual units licensed decreased during the year ended fiscal 2013 as compared to fiscal 2012.
Document Services revenue, which includes our Acrobat product family, decreased slightly during fiscal 2013 as compared to fiscal 2012, primarily due to the continued shift to ETLAs offset by increased Acrobat Cloud Services revenue including revenue generated from our EchoSign e-signing service.
Within Document Services, excluding large enterprise license agreements, the number of units licensed decreased while the unit average selling prices increased during fiscal 2013 as compared to fiscal 2012.


| Net unrealized gain on derivative instruments(1) SL Green’s share of joint venture net unrealized gain on derivative instruments(2) Net unrealized gain on marketable securities Total | Balance at December 31, 2014 | Other comprehensive loss before reclassifications | Amounts reclassified from accumulated other comprehensive income | Balance at December 31, 2015 | Other comprehensive income before reclassifications | Amounts reclassified from accumulated other comprehensive income | Balance at December 31, 2016 | Other comprehensive (loss) income before reclassifications | Amounts reclassified from accumulated other comprehensive income | Balance at December 31, 2017 |


| Twelve Months Ended December 31, Change | 2015 vs. 2014 | Workforce Solutions | (In millions) | Operating Revenue: | Verification Services | Employer Services | Total operating revenue | % of consolidated revenue | Total operating income | Operating margin |


Gathering, Marketing and Processing NEMI markets the majority of the Companys domestic natural gas, as well as certain third-party natural gas.
NEMI sells natural gas directly to end-users, natural gas marketers, industrial users, interstate and intrastate pipelines, power generators and local distribution companies.
NEMI markets a portion of the Companys domestic crude oil, as well as certain third-party crude oil.
The Company records all of NEMIs sales and expenses as gathering, marketing and processing revenues and expenses.
All intercompany sales and expenses have been eliminated in the Companys consolidated financial statements.
The gathering, marketing and processing revenues less expenses for NEMI are reflected in the table below.


| (Dollars in millions) 2016 2015 2014 2013 2012 | Loan and allowance ratios-5: | Loans and leases outstanding at December 31-6 | Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31-6 | Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at December 31-7 | Commercial allowance for loan and lease losses as a percentage of total commercial loans and leases outstanding at December 31-8 | Average loans and leases outstanding-6 | Net charge-offs as a percentage of average loans and leases outstanding-6, 9 | Net charge-offs and PCI write-offs as a percentage of average loans and leases outstanding-6 | Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31-6, 10 | Ratio of the allowance for loan and lease losses at December 31 to net charge-offs-9 | Ratio of the allowance for loan and lease losses at December 31 to net charge-offs and PCI write-offs | Amounts included in allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at December 31-11 | Allowance for loan and lease losses as a percentage of total nonperforming loans and leases, excluding the allowance for loan and lease losses for loans and leases that are excluded from nonperforming loans and leases at December 31-6, 11 | Loan and allowance ratios excluding PCI loans and the related valuation allowance:-5, 12 | Allowance for loan and lease losses as a percentage of total loans and leases outstanding at December 31-6 | Consumer allowance for loan and lease losses as a percentage of total consumer loans and leases outstanding at December 31-7 | Net charge-offs as a percentage of average loans and leases outstanding-6 | Allowance for loan and lease losses as a percentage of total nonperforming loans and leases at December 31-6, 10 | Ratio of the allowance for loan and lease losses at December 31 to net charge-offs |


| 2017 2016 2017 2016 | (in millions) | Long-Term Debt: | Long-term debt payable to affiliated trusts — | Variable rate (4.44% at 12/31/17) due 2042 | Long-term senior notes and debt — | Maturity | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 through 2047 | Variable rates (1.82% to 3.75% at 1/1/17) due 2017 | Variable rates (2.29% to 3.05% at 12/31/17) due 2018 | Variable rates (2.04% to 2.18% at 12/31/17) due 2020 | Variable rates (2.55% to 2.79% at 12/31/17) due 2021 | Variable rate (3.75% at 1/1/17) due 2032 to 2036 | Total long-term senior notes and debt | Other long-term debt — | Pollution control revenue bonds — | Maturity | 2019 | 2022 | 2023 through 2049 | Variable rates (2.45% to 2.50% at 12/31/17) due 2018 | Variable rates (1.86% to 1.87% at 12/31/17) due 2021 | Variable rates (1.83% to 1.84% at 12/31/17) due 2022 | Variable rates (1.59% to 1.88% at 12/31/17) due 2024 to 2053 | Plant Daniel revenue bonds -7.13% due 2021 | FFB loans — | 2.57% to 3.86% due 2020 | 2.57% to 3.86% due 2021 | 2.57% to 3.86% due 2022 | 2.57% to 3.86% due 2023 to 2044 | First mortgage bonds — | 4.70% due 2019 | 2.66% to 6.58% due 2023 to 2057 | Gas facility revenue bonds — | Variable rate (1.71% at 12/31/17) due 2022 | Variable rate (1.71% at 12/31/17) due 2024 to 2033 | Junior subordinated notes (5.00% to 6.25%) due 2057 to 2077 | Total other long-term debt | Unamortized fair value adjustment of long-term debt | Capitalized lease obligations | Unamortized debt premium | Unamortized debt discount | Unamortized debt issuance expense | Total long-term debt (annual interest requirement — $1.8 billion) | Less amount due within one year | Long-term debt excluding amount due within one year | Natural Gas | Production Period | 2007 (CIG vs. NYMEX) | 2007 (ANR(1)vs. NYMEX) | 2007 (PEPL(2)vs. NYMEX) | 2008 (CIG vs. NYMEX) | 2008 (ANR vs. NYMEX) | 2008 (PEPL vs. NYMEX) | Year Ended December 31, | 2007 | (in thousands) | Balance at beginning of period | Charged to expense | Deductions and other | Balance at end of period |


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


| 2002 2001 | DE@R at end of period | Average DE@R for the period |


| Significant Other Inputs (Level 2) Significant Unobservable Inputs (Level 3) | Fair value, January 1, 2008 | Purchases, January 1—March 31, 2008 | Sales, January 1—March 31, 2008 | Transfers in (out) | Sales, April 1—December 31, 2008 | Calls, July 1—December 31, 2008 | Unrealized losses | Fair value, December 31, 2008 | Calls, at par | Recovery of unrealized losses due to issuer calls | Increase in fair value | Fair value, December 31, 2009 | 2009 | Carrying value | Gross unrecorded gains | Fair value | Settlement date before December 31, | 2016 | December 31, 2015 | (millions) | Foreign currency sold | U.S. dollars sold for Pounds sterling | Euro sold for U.S. dollars | Japanese yen sold for U.S. dollars | Euro sold for Pounds sterling | Total | Fair value(i) |


| 2013 % Change 2012 % Change 2011 | Net Revenues | U.S. and Canada | International | Entertainment and Licensing | Operating Profit | U.S. and Canada | International | Entertainment and Licensing |


Consumer Foods net sales decreased $94 million for the year to $6.5 billion.
Sales volume declined by 1% in fiscal 2006, principally due to declines in certain shelf stable brands.
Sales of the Company’s top thirty brands, which represented approximately 83% of total segment sales during fiscal 2006, were flat as a group, as sales of some of the Company’s most significant brands, including Chef Boyardee?, Marie Callender’s?, Orville Redenbacher’s?, Slim Jim?, Hebrew National?, Kid Cuisine?, Reddi-Wip?, VanCamp?, Libby’s?, LaChoy?, The Max?, Manwich?, David’s?, Ro*Tel?, Angela Mia?, and Mama Rosa?
grew in fiscal 2006, but were largely offset by sales declines for the year for Hunt’s?, Wesson?, Act II?, Snack Pack?, Swiss Miss?, PAM?, Egg Beaters?, Blue Bonnet?, Parkay?, and Rosarita?.
Food and Ingredients net sales increased $203 million to $3.2 billion, primarily reflecting price increases driven by higher input costs for potato, wheat milling, and dehydrated vegetable operations.
Net sales were also impacted, to a lesser degree, by a 4% increase in potato products volume compared to the prior year.
Trading and Merchandising net sales decreased $38 million to $1.2 billion.
The decrease resulted principally from lower grain and edible bean merchandising volume resulting from the divestment or closure of various locations.
International Foods net sales increased $27 million to $603 million.
The strengthening of foreign currencies relative to the U. S.  dollar accounted for $24 million of the increase.
Overall volume growth was modest as the 10% volume growth from the top six International brands (Orville Redenbacher’s?, Act II?, Snack Pack?, Chef Boyardee?, Hunt’s?, and PAM?
), which account for 55% of total segment sales, was offset by sales declines related to the discontinuance of a number of low margin products.


| 2016 2015 | Number of shares repurchased | Amount paid | Weighted average cost per share |


| 2016 period Total sharespurchased (a) Averagepricepaid pershare Total sharespurchased aspartofpubliclyannouncedprograms (b) Maximumnumber ofshares thatmay yet bepurchasedundertheprograms (b) | October 1 – 31 | November 1 – 30 | December 1 – 31 | Total |


| Con Edison Con Edison of New York O&R | (Millions of Dollars) | Accrued Liabilities: | Manufactured gas plant sites | Other Superfund Sites | Total | Regulatory assets |


| March 31, | (Dollars in millions) | Cash and cash equivalents | Working capital | Debt, net of cash and cash equivalents | Debt to capital ratio-1 | Net debt to net capital employed-2 | Return on stockholders’ equity-3 |


HCP, Inc.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) On October 5, 2006, the Company issued an aggregate of 27.2 million shares of common stock in connection with the CRP and CRC mergers.
On November 10, 2006, the Company issued 33.5 million shares of common stock and received net proceeds of approximately $960 million, which were used to repay the bridge loan facility and borrowings under the Companys previous term loan and revolving line of credit facility.
On January 19, 2007, the Company issued 6.8 million shares of its common stock and received net proceeds of approximately $261.1 million, which were used to repay outstanding borrowings under the Companys former term loan facility and previous $1.0 billion revolving credit facility.
On October 5, 2007, the Company issued 9 million shares of common stock and received net proceeds of approximately $302.6 million, which were used to repay borrowings under the Companys bridge loan facility.
On January 28, 2008, the Company announced that its Board declared a quarterly cash dividend of $0.455 per share.
The common stock cash dividend will be paid on February 21, 2008 to stockholders of record as of the close of business on February 7, 2008.
The annualized rate of distribution for 2008 is $1.82, compared with $1.78 for 2007.


| For the Year Ended December 31, | 2011 | (In millions) | 2008 Share Appreciation Program | Compensation expense | Compensation expense, net of tax | Capitalized costs | 2005 Share Appreciation Plan | Compensation expense | Compensation expense, net of tax | Capitalized costs |


| Three Months Ended | Dec 31, 2011 | (In thousands, except per share data) | Revenues | Commissions | U.S. high-grade | Eurobond | Other | Total commissions | Technology products and services | Information and user access fees | Interest income | Other | Total revenues-1 | Expenses | Employee compensation and benefits | Depreciation and amortization | Technology and communications | Professional and consulting fees | Occupancy | Marketing and advertising | General and administrative | Total expenses | Income before income taxes | Provision for income taxes | Net income | Net income per common share: | Basic | Diluted | Year Ended December 31, | 2012 | (In thousands) | Valuation allowance at beginning of year | Increase (decrease) to valuation allowance attributable to: | Net operating losses | Tax credits | Valuation allowance at end of year | Year Ended December 31, | 2012 | (In thousands) | Balance at beginning of year | Additions for tax positions of prior years | Additions for tax positions of current year | Reductions for tax positions of prior years | Balance at end of year |


| 2007 | Revenue | OFS | North America | Latin America | Europe/CIS/Africa | Middle East & Asia | Other | 20,306 | WESTERNGECO | Goodwill and Intangible assets | All other assets | Corporate | Interest income | Interest expense | Charges and credits | $23,277 |


| Seagate Technology Predecessor Period from July 1, 2000 to November 22, 2000 | Fiscal Year Ended June 27, 2003 | (in millions) | Revenue and Gross Profit | Revenue: | Rigid Disc Drives | Other | Eliminations | Consolidated | Gross Profit: | Rigid Disc Drives | Other | Consolidated | Total Assets | Total Assets: | Rigid Disc Drives | Other | Operating Segments | Eliminations | Consolidated |


| December 31, | 2016 | Minimum lease payments receivable | Estimated residual values | Less unearned income | Net investment in direct financing leases | Properties subject to direct financing leases | Percentage of Gross Assets | Total Company December 31, | Tenant | Brookdale-1 | SPP | 2016 | Rental revenues-1 | Operating expenses | NOI | Non-cash adjustments to NOI | Adjusted NOI | Non-SPP adjusted NOI | SPP adjusted NOI | Adjusted NOI % change | Property count-2 | Average capacity (units)(3) | Average annual rent per unit |


Income Taves Income tax expense for Fiscal 2011 was $238.6 million, as compared to $211.0 million for Fiscal 2010.
Our effective income tax rate was 37.7% and 37.9% for Fiscal 2011 and Fiscal 2010, respectively.


CONSOLIDATED INCOME STATEMENT REVIEW Our Consolidated Income Statement is presented in Item 8 of this Report.
Net income for 2011 was $3.1 billion compared with $3.4 billion for 2010.
Results for 2011 include the impact of $324 million of residential mortgage foreclosure-related expenses primarily as a result of ongoing governmental matters, a $198 million noncash charge related to redemption of trust preferred securities and $42 million for integration costs.
Results for 2010 included the $328 million after-tax gain on our sale of GIS, $387 million for integration costs, and $71 million of residential mortgage foreclosure-related expenses.
For 2010, net income attributable to common shareholders was also impacted by a noncash reduction of $250 million in connection with the redemption of TARP preferred stock.
PNCs results for 2011 were driven by good performance in a challenging environment of low interest rates, slow economic growth and new regulations.


Minority Interest The Company has consolidated certain joint ventures because the Company either was determined to be the primary beneficiary pursuant to Financial Accounting Standards Board (FASB) Interpretation No.46(R) (FIN 46(R)), Consolidation of Variable Interest Entities, or has a controlling interest in these joint ventures.
Therefore, the entities financial statements are consolidated in the Companys consolidated financial statements and the other partners equity is recorded as minority interest.
At November 30, 2006 and 2005, minority interest was $55.4 million and $78.2 million, respectively.
Minority interest expense, net was $13.4 million, $45.0 million and $10.8 million, respectively, for the years ended November 30, 2006, 2005 and 2004.


MARINE SYSTEMS Our Marine Systems group designs, builds and supports submarines and surface ships for the U. S.  Navy and commercial ships for Jones Act customers.
The group is one of two primary shipbuilders for the Navy.
The groups diverse portfolio of platforms and capabilities includes: ?
nuclear-powered submarines (Virginia Class); ?
surface combatants (DDG-51, DDG-1000, LCS); ?
auxiliary and combat-logistics ships (T-AKE); ?
commercial ships; ?
design and engineering; and ?
overhaul, repair and lifecycle support services.
The substantial majority of Marine Systems workload supports the U. S.  Navy.
These efforts include the construction of new ships and the design and development of next-generation platforms to help the customer meet evolving missions and maintain its desired fleet size, as well as maintenance and repair services to maximize the life and effectiveness of in-service ships.
This business consists primarily of major ship-construction programs awarded under large, multi-ship contracts that span several years.
The groups mature Navy construction programs consist of the fast-attack Virginia-class nuclear-powered submarine, the Arleigh Burke-class (DDG-51) guided-missile destroyer and the Lewis and Clark-class (T-AKE) dry cargo/ammunition combatlogistics ship.
The Virginia-class submarine is the first U. S.  submarine designed to address post-Cold War threats, including capabilities tailored for both open-ocean and littoral missions.
These stealthy ships are well-suited for a variety of global assignments, including intelligence gathering, specialoperations missions and sea-based missile launch.


| 2010 2011 2012 2013 2014 Thereafter Total | Property Mortgages | Corporate obligations | Joint venture debt-our share | Total |


| For the year ended December 31, Increase (decrease) | 2012 | Yield | ($ in millions) | Fixed maturities | Equity securities | Mortgage loans — commercial | Mortgage loans — residential | Real estate | Policy loans | Cash and cash equivalents | Other investments | Total before investment expenses | Investment expenses | Net investment income |


DEVON ENERGY CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued) The following methods and assumptions were used to estimate the fair values in the tables above.
Fixed-income securities — Devon’s fixed-income securities consist of U. S.  Treasury obligations, bonds issued by investment-grade companies from diverse industries, and asset-backed securities.
These fixed-income securities are actively traded securities that can be redeemed upon demand.
The fair values of these Level 1 securities are based upon quoted market prices.
Devon’s fixed income securities also include commingled funds that primarily invest in long-term bonds and U. S.  Treasury securities.
These fixed income securities can be redeemed on demand but are not actively traded.
The fair values of these Level 2 securities are based upon the net asset values provided by the investment managers.
Equity securities — Devon’s equity securities include a commingled global equity fund that invests in large, mid and small capitalization stocks across the world’s developed and emerging markets.
These equity securities can be redeemed on demand but are not actively traded.
The fair values of these Level 2 securities are based upon the net asset values provided by the investment managers.
At December 31, 2010, Devon’s equity securities consisted of investments in U. S.  large and small capitalization companies and international large capitalization companies.
These equity securities were actively traded securities that could be redeemed upon demand.
The fair values of these Level 1 securities are based upon quoted market prices.
At December 31, 2010, Devon’s equity securities also included a commingled fund that invested in large capitalization companies.
These equity securities could be redeemed on demand but were not actively traded.
The fair values of these Level 2 securities are based upon the net asset values provided by the investment managers.
Other securities — Devon’s other securities include commingled, short-term investment funds.
These securities can be redeemed on demand but are not actively traded.
The fair values of these Level 2 securities are based upon the net asset values provided by investment managers.
Devon’s hedge fund and alternative investments include an investment in an actively traded global mutual fund that focuses on alternative investment strategies and a hedge fund of funds that invests both long and short using a variety of investment strategies.
Devon’s hedge fund of funds is not actively traded and Devon is subject to redemption restrictions with regards to this investment.
The fair value of this Level 3 investment represents the fair value as determined by the hedge fund manager.
Included below is a summary of the changes in Devon’s Level 3 plan assets (in millions).


| (Square feet in thousands) United States Other Countries Total | Owned | Leased | Total |


| As of or for the Year Ended December 31, 2015 Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life | Options: | Exercisable at beginning of year | Expired | Exercisable at end of year |


| North America Europe,Middle East& Africa Asia Pacific South America Total | Electrical/Electronic Architecture | Powertrain Systems | Electronics and Safety | Thermal Systems | Total |


| (Dollars in millions, shares in thousands) 2016 2015 2014 2013 2012 | Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis | Net interest income | Fully taxable-equivalent adjustment | Net interest income on a fully taxable-equivalent basis | Reconciliation of total revenue, net of interest expense to total revenue, net of interest expense on a fully taxable-equivalent basis | Total revenue, net of interest expense | Fully taxable-equivalent adjustment | Total revenue, net of interest expense on a fully taxable-equivalent basis | Reconciliation of income tax expense (benefit) to income tax expense (benefit) on a fully taxable-equivalent basis | Income tax expense (benefit) | Fully taxable-equivalent adjustment | Income tax expense (benefit) on a fully taxable-equivalent basis | Reconciliation of average common shareholders’ equity to average tangible common shareholders’ equity | Common shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible common shareholders’ equity | Reconciliation of average shareholders’ equity to average tangible shareholders’ equity | Shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible shareholders’ equity | Reconciliation of year-end common shareholders’ equity to year-end tangible common shareholders’ equity | Common shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible common shareholders’ equity | Reconciliation of year-end shareholders’ equity to year-end tangible shareholders’ equity | Shareholders’ equity | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible shareholders’ equity | Reconciliation of year-end assets to year-end tangible assets | Assets | Goodwill | Intangible assets (excluding MSRs) | Related deferred tax liabilities | Tangible assets |


Total compensation expense for stock options and incentive shares was $115, $159 and $30 for 2017, 2016 and 2015, respectively, of which $5, $14 and $6 was included in discontinued operations.
The decrease in expense for 2017 reflects the impact of changes in the stock price.
The increase in expense for 2016 reflects an increasing stock price in the current year compared with a decreasing price in 2015, and overlap of awards.
Income tax benefits recognized in the income statement for these compensation arrangements during 2017, 2016 and 2015 were $33, $45 and $2, respectively.
As of September 30, 2017, total unrecognized compensation expense related to unvested shares awarded under these plans was $149, which is expected to be recognized over a weighted-average period of 1.5 years.
In addition to the employee stock option and incentive shares plans, in 2017 the Company awarded 17,984 shares of restricted stock and 2,248 restricted stock units under the restricted stock plan for non-management directors.
As of September 30, 2017, 174,335 shares were available for issuance under this plan.


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


| 2007 5,320 | 2008 | 2009 | 2010 | 2011 | 2012 and thereafter | Total |


| December 31, 2010 | Expense  (In millions) | Stock Options | Performance Shares | Restricted Stock Units | Year Ended December 31, 2010 | Fixed Maturity Securities | (In millions) | Balance, beginning of year | Total realized/unrealized gains (losses) included in: | Earnings | Other comprehensive income (loss) | Purchases, sales, issuances and settlements -1 | Transfers into and/or out of Level 3 | Balance, end of year |


| 2005 2004 | Fourth Quarter | High price | Low price | Close | Dividends |


| Year Ended December 31, | (in millions) | Net prior service credit | Net actuarial loss | Total loss recognized in accumulated other comprehensive income |


| ($ in millions) 2012 2011 2010 | Ceded property-liability premiums earned | Ceded property-liability claims and claims expense | Industry pool and facilities | MCCA | National Flood Insurance Program | FHCF | Other | Subtotal industry pools and facilities | Other | Ceded property-liability claims and claims expense |


| Year Ended December 31, 2011 2010 2009 | All operating currencies | Brazilian real | Mexican peso | Australian dollar | South African rand | British pound | Euro | Japanese yen |


| 2015 2014 2013 | Number of Awards | Nonvested balance — | As of January 1 | Granted | Annual | Other | Vested | Forfeited | As of December 31 |


Redemptions Class B Common Stock and Class C Common Stock Other than Class C (Series II) Common StockMarch 2008 In March 2008, the Company completed the required redemption of a portion of the class B common stock and class C (series I) common stock.
The Company used $13.4 billion of net proceeds from the IPO to redeem 154,738,487 shares of class B common stock and 159,657,751 shares of class C (series I) common stock at a redemption price of $42.77 per share.
After the redemptions and subject to the restrictions set forth in the Companys amended and restated certificate of incorporation (the Charter) and the conversion and transfer restrictions below, all outstanding shares of class B common stock are convertible into 175,367,482 shares of class A common stock and 152,009,651 shares of class C (series I, III and IV) common stock are convertible into shares of class A common stock on a one-to-one basis.
As a result of the initial funding of the litigation escrow account, the conversion rate applicable to class B common stock was reduced to approximately 0.71 shares of class A common stock for each share of class B common stock, and the 245,513,385 shares of class B common stock were convertible into 175,367,482 shares of class A common stock.
The number of shares of class C (series I, III and IV) common stock convertible into shares of class A common stock excludes those class C (series III) common shares that were redeemed in October 2008, as further described below.
Class C (Series III) Common Stock and Class C (Series II) Common StockOctober 2008 As anticipated, in October 2008, the Company used $1.508 billion of net proceeds from the IPO for the required redemption of 35,263,585 shares of class C (series III) common stock at a redemption price of $42.77 per share as required by the Charter.
Following the October 2008 redemption, the remaining 27,499,203 shares of class C (series III) and class C (series IV) common stock outstanding automatically converted into shares of class C (series I) common stock on a one-to-one basis.
The Company also used $1.146 billion of the net proceeds from the IPO to fund the redemption of all class C (series II) common stock in October 2008.
The redemption price of $1.146 billion was adjusted for dividends paid and related interest, par value of related shares redeemed, and the return to Visa Europe of the class C (series II) common stock subscription receivable outstanding, resulting in a cash payment of $1.136 billion.
As a result of the execution of the IPO, Visa Europe had the option to


| December 31, 2012In millions 1 Yearor Less 1 Through5Years After5 Years GrossLoans | Commercial | Commercial real estate – Real estate projects | Total | Loans with: | Predetermined rate | Floating or adjustable rate | Total |


| 2010 2009 2008 | Share-based compensation cost | Income tax benefit |


| December 31, 2014 December 31, 2013 | In millions | Commercial lending | Commercial | Commercial real estate | Total commercial lending | Consumer lending | Consumer | Residential real estate | Total consumer lending | Total |


The increase in reported operating expenses for these facilities of $3.6 million to $8.7 million for the year ended December 31, 2005, was primarily due to us taking possession of two of these properties in 2005 and an increase in the overall occupancy of such properties.
The presentation of expenses between general and administrative and operating expenses is based on the underlying nature of the expense.
Periodically, we review the classification of expenses between categories and make revisions based on changes in the underlying nature of the expense.
General and administrative expenses.
General and administrative expenses decreased 13% to $32.1 million for the year ended December 31, 2005.
The decrease was due to higher costs in 2004 primarily resulting from $1.5 million of income tax expense on income from certain assets held in a taxable REIT subsidiary, the implementation of a new information system, considerable resources that were expended towards initial compliance with certain regulatory requirements, principally Section 404 of the Sarbanes-Oxley Act of 2002, $0.7 million in expenses associated with the relocation of our corporate offices to Long Beach, California in 2004 and a charge of $1.6 million related to the settlement of a lawsuit filed against us by our former Executive Vice President and Chief Financial Officer.
Offsetting the decrease from 2004 was an increase in compensation related expenses due to an increase in full-time employees from 74 at December 31, 2004, to 83 at December 31, 2005.


| 2017 $10,509 | 2018 | 2019 | 2020 | 2021 | 2022 and thereafter | Amortization expense of intangible assets |


| In millions of dollars 2007 Pretax total 2007 After-tax total 2006 Pretax total 2006 After-tax total | Global Cards | Consumer Banking | ICG | Total |


(2) In 2013, our principal U. K subsidiary agreed with the trustees of one of the U. K.  plans to contribute an average of $11 million per year to that pension plan for the next three years.
The trustees of the plan have certain rights to request that our U. K.  subsidiary advance an amount equal to an actuarially determined winding-up deficit.
As of December 31, 2015, the estimated winding-up deficit was ï¿¡240 million ($360 million at December 31, 2015 exchange rates).
The trustees of the plan have accepted in practice the agreed-upon schedule of contributions detailed above and have not requested the winding-up deficit be paid.


| December 31, 2009 December 31, 2008 | Amortized cost | (in millions) | Lowest agency rating | AAA | AA | A | BBB | BB and below | Total by lowest agency rating | Vintage | 2003 and prior | 2004 | 2005 | 2006 | 2007 | Total by vintage |


Workforce Solutions revenue increased by 9% in 2017 compared to 2016 due to strong growth in the government, mortgage, financial and pre-employment screening verticals, partially offset by the impact of the cybersecurity incident.
Workforce Solutions revenue increased by 22%in 2016 compared to 2015 due to strong growth in the healthcare, mortgage, government, and financial verticals.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 71 Deferred revenue consists of amounts billed in excess of revenue recognized on sales of our information services relating generally to the deferral of subscription fees and arrangement consideration from elements not meeting the criteria for having stand-alone value discussed above.
Deferred revenues are subsequently recognized as revenue in accordance with our revenue recognition policies.
Cost of Services.
Cost of services consist primarily of (1) data acquisition and royalty fees; (2) customer service costs, which include: personnel costs to collect, maintain and update our proprietary databases, to develop and maintain software application platforms and to provide consumer and customer call center support; (3) hardware and software expense associated with transaction processing systems; (4) telecommunication and computer network expense; and (5) occupancy costs associated with facilities where these functions are performed by Equifax employees.
Selling, General and Administrative Expenses.
Selling, general and administrative expenses consist primarily of personnel-related costs, restructuring costs, corporate costs, fees for professional and consulting services, advertising costs, and other costs of administration.
Advertising.
Advertising costs, which are expensed as incurred, totaled $54.6 million, $63.6 million and $65.1 million during 2017, 2016 and 2015, respectively.
Stock-Based Compensation.
We recognize the cost of stock-based payment transactions in the financial statements over the period services are rendered according to the fair value of the stock-based awards issued.
All of our stock-based awards, which are stock options and nonvested stock, are classified as equity instruments.
Income Taxes.
We account for income taxes under the liability method.
We record deferred income taxes using enacted tax laws and rates for the years in which the taxes are expected to be paid.
Deferred income tax assets and liabilities are recorded based on the differences between the financial reporting and income tax bases of assets and liabilities.
We assess whether it is more likely than not that we will generate sufficient taxable income to realize our deferred tax assets.
We record a valuation allowance, as necessary, to reduce our deferred tax assets to the amount of future tax benefit that we estimate is more likely than not to be realized.
We record tax benefits for positions that we believe are more likely than not of being sustained under audit examinations.
We assess the potential outcome of such examinations to determine the adequacy of our income tax accruals.
We recognize interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes on our Consolidated Statements of Income.
We adjust our income tax provision during the period in which we determine that the actual results of the examinations may differ from our estimates or when statutory terms expire.
Changes in tax laws and rates are reflected in our income tax provision in the period in which they occur.
Earnings Per Share.
Our basic earnings per share, or EPS, is calculated as net income divided by the weightedaverage number of common shares outstanding during the reporting period.
Diluted EPS is calculated to reflect the potential dilution that would occur if stock options or other contracts to issue common stock were exercised and resulted in additional common shares outstanding.
The net income amounts used in both our basic and diluted EPS calculations are the same.
A reconciliation of the weighted-average outstanding shares used in the two calculations is as follows:


| (in millions) December 31,2015 Netinflows Marketchange FX impact December 31,2016 | Equity | Fixed income | Multi-asset | Alternatives-1 | Total |


Approximately 95% of capital lease payments relate to locomotives.
Rent expense for operating leases with terms exceeding one month was $590 million in 2015, $593 million in 2014, and $618 million in 2013.
When cash rental payments are not made on a straight-line basis, we recognize variable rental expense on a straight-line basis over the lease term.
Contingent rentals and sub-rentals are not significant.18.
Commitments and Contingencies Asserted and Unasserted Claims  Various claims and lawsuits are pending against us and certain of our subsidiaries.
We cannot fully determine the effect of all asserted and unasserted claims on our consolidated results of operations, financial condition, or liquidity.
To the extent possible, we have recorded a liability where asserted and unasserted claims are considered probable and where such claims can be reasonably estimated.
We do not expect that any known lawsuits, claims, environmental costs, commitments, contingent liabilities, or guarantees will have a material adverse effect on our consolidated results of operations, financial condition, or liquidity after taking into account liabilities and insurance recoveries previously recorded for these matters.
Personal Injury  The cost of personal injuries to employees and others related to our activities is charged to expense based on estimates of the ultimate cost and number of incidents each year.
We use an actuarial analysis to measure the expense and liability, including unasserted claims.
The Federal Employers Liability Act (FELA) governs compensation for work-related accidents.
Under FELA, damages are assessed based on a finding of fault through litigation or out-of-court settlements.
We offer a comprehensive variety of services and rehabilitation programs for employees who are injured at work.
Our personal injury liability is not discounted to present value due to the uncertainty surrounding the timing of future payments.
Approximately 94% of the recorded liability is related to asserted claims and


| Year Ended December 31, | 2005 | Shares | (In thousands, except share data) | Common shares | Balance, beginning of year | Exercise of stock options | Shares issued under dividend reinvestment plan | Performance and restricted shares granted, net of restricted shares retired | Reclassification for preferred stock redemption | Issuance of shares in public offering | Conversion and redemption of OP units | Shares issued to purchase partnership interests | Stock compensation associated with variable accounting | Balance, end of year | Accumulated dividends in excess of net income | Balance, beginning of year | Net income | Dividends declared to common shareholders | Preferred share dividends and redemption costs | Balance, end of year | Treasury shares | Balance, beginning of year | Performance and restricted shares forfeited | Balance, end of year | Deferred compensation on restricted shares | Balance, beginning of year | Performance and restricted shares issued, net of forfeitures | Vesting of performance and restricted shares | Balance, end of year | Notes receivable from issuance of common shares | Balance, beginning of year | Loans issued | Loans paid | Balance, end of year | Accumulated other comprehensive income (loss) | Balance, beginning of year | Adjustments to unrealized gains (losses) on securities | Adjustments to unrealized gains on interest rate swaps | Loss on interest rate hedge transaction | Balance, end of year | Comprehensive income | Net income | Adjustments to unrealized gains (losses) on securities | Adjustments to unrealized gains on interest rate swaps | Termination of interest rate swap | Total comprehensive income |


SHORT-DURATION REINSURANCE Short-duration reinsurance is effected under reinsurance treaties and by negotiation on individual risks.
Certain of these reinsurance arrangements consist of excess of loss contracts that protect us against losses above stipulated amounts.
Ceded premiums are considered prepaid reinsurance premiums and are recognized as a reduction of premiums earned over the contract period in proportion to the protection received.
Amounts recoverable from reinsurers on short-duration contracts are estimated in a manner consistent with the claims liabilities associated with the reinsurance and presented as a component of Reinsurance assets.
Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsurers.
Any subsequent differences arising on such estimates are recorded in the periods in which they are determined.
Assumed reinsurance premiums are earned primarily on a pro-rata basis over the terms of the reinsurance contracts and the portion of premiums relating to the unexpired terms of coverage is included in the reserve for unearned premiums.
Reinsurance premiums for assumed business are estimated based on information received from brokers, ceding companies and reinsureds.
Any subsequent differences arising on such estimates are recorded in the periods in which they are determined.
For both ceded and assumed reinsurance, risk transfer requirements must be met for reinsurance accounting to apply.
If risk transfer requirements are not met, the contract is accounted for as a deposit, resulting in the recognition of cash flows under the contract through a deposit asset or liability and not as revenue or expense.
To meet risk transfer requirements, a reinsurance contract must include both insurance risk, consisting of both underwriting and timing risk, and a reasonable possibility of a significant loss for the assuming entity.
Similar risk transfer criteria are used to determine whether directly written insurance contracts should be accounted for as insurance or as a deposit.


| PBO exceeds fair value of plan assets ABO exceeds fair value of plan assets | Non-U.S. Plans | (in millions) | Projected benefit obligation | Accumulated benefit obligation | Fair value of plan assets |


| Year Ended December 31, | 2018 | (In thousands, except per share data) | Net income | Net income attributable to noncontrolling interests | Gain on sale of real estate and change in control of interests, net | Depreciation and amortization of real estate assets | Amortization of initial direct costs of leases | Funds from operations | Dividends on preferred shares -1 | Income attributable to operating partnership units | Income attributable to unvested shares | Funds from operations available for common shareholders -2 | Weighted average number of common shares, diluted -1 | Funds from operations available for common shareholders, per diluted share -2 |


| 1999 Change 1998 Change 1997 | Cash, cash equivalents, and short-term investments | Working capital | Stockholders' equity |


Table of Contents Transition Taxes Liability As a result of the Tax Act enacted on December 22, 2017, all historical undistributed foreign subsidiary earnings were subject to a mandatory one-time transition tax.
During fiscal 2018, we recorded a transition tax liability of $504 million and other tax liabilities, including state, of $6 million.
Under an election of the Tax Act, the transition tax is payable over eight years beginning in fiscal 2019, with 8% due in each of the first five years, 15% in year six, 20% in year seven, and 25% in year eight.
As we repatriate the undistributed earnings of our foreign subsidiaries for use in the U. S. , the earnings from our foreign subsidiaries will generally not be subject to U. S.  federal tax.
We continuously evaluate the future cash needs of our global operations to determine the amount of foreign earnings that is not necessary to be permanently reinvested in our foreign subsidiaries.


| ($ in millions) Reserve for property-liability insurance claims and claims expense Reinsurance recoverables, net | 2010 | Industry pools and facilities | Asbestos and environmental | Other including allowance for future uncollectible reinsurance recoverables | Total Property-Liability |


CITIZENS FINANCIAL GROUP, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 170 There are 49,742,766 shares of Company common stock available for awards to be granted under the Omnibus Plan and Directors Plan.
In addition, there are 6,255,128 shares available for awards under the ESPP.
Upon settlement of share-based awards, the Company generally issues new shares, but may also issue shares from treasury stock.
Compensation Expense Citizens measures compensation expense related to stock awards based upon the fair value of the awards on the grant date.
Compensation expense is adjusted for forfeitures as they occur.
The related expense is charged to earnings on a straight-line basis over the requisite service period (e. g. , vesting period) of the award.
With respect to performance-based stock awards, compensation expense is adjusted upward or downward based upon the probability of achievement of performance.
Awards that continue to vest after retirement are expensed over the shorter of the period of time from grant date to the final vesting date or from the grant date to the date when an employee is retirement eligible.
Awards granted to employees who are retirement eligible at the grant date are generally expensed immediately upon grant.
Compensation expense related to the share plans (including the ESPP) was $41 million, $39 million, and $23 million for the years ended December 31, 2018, 2017, and 2016, respectively.
At December 31, 2018, the total unrecognized compensation expense for nonvested equity awards granted was $41 million.
This expense is expected to be recognized over a weighted-average period of two years.
No share-based compensation costs were capitalized during the years ended December 31, 2018, 2017, and 2016.
The income tax benefit recognized in earnings based on the compensation expense recognized for all sharebased compensation arrangements amounted to $3 million, $9 million and $8 million for the years ended December 31, 2018, 2017, and 2016, respectively.


| (In millions) 2008 | Current assets | Noncurrent assets | Total assets | Current liabilities | Noncurrent liabilities | Total liabilities | Net assets held for sale |


| 2011 2010 2009 | Cash, cash equivalents and marketable securities | Accounts receivable, net | Inventories | Working capital | Annual operating cash flow |


| 2012 2011 | U.S. life insurance subsidiaries, includes domestic captive insurance subsidiaries | Property and casualty insurance subsidiaries | Total |


Reinsurance Receivables.
We have purchased reinsurance to reduce our exposure to adverse claim experience, large claims and catastrophic loss occurrences.
Our ceded reinsurance provides for recovery from reinsurers of a portion of losses and loss expenses under certain circumstances.
Such reinsurance does not relieve us of our obligation to our policyholders.
In the event our reinsurers are unable to meet their obligations under these agreements or are able to successfully challenge losses ceded by us under the contracts, we will not be able to realize the full value of the reinsurance receivable balance.
To minimize exposure from uncollectible reinsurance receivables, we have a reinsurance security committee that evaluates the financial strength of each reinsurer prior to our entering into a reinsurance arrangement.
In some cases, we may hold full or partial collateral for the receivable, including letters of credit, trust assets and cash.
Additionally, creditworthy foreign reinsurers of business written in the U. S. , as well as capital markets’ reinsurance mechanisms, are generally required to secure their obligations.
We have established reserves for uncollectible balances based on our assessment of the collectability of the outstanding balances.
As of December 31, 2017 and 2016, the reserve for uncollectible balances was $15.0 million.
Actual uncollectible amounts may vary, perhaps substantially, from such reserves, impacting income (loss) in the period in which the change in reserves is made.
See also ITEM 8, “Financial Statements and Supplementary Data” - Note 11 of Notes to the Consolidated Financial Statements and “Financial Condition – Reinsurance Receivables” below.


Recourse Debt Transactions During 2010, the Company redeemed $690 million aggregate principal of its 8.75% Second Priority Senior Secured Notes due 2013 (“the 2013 Notes”).
The 2013 Notes were redeemed at a redemption price equal to 101.458% of the principal amount redeemed.
The Company recognized a pre-tax loss on the redemption of the 2013 Notes of $15 million for the year ended December 31, 2010, which is included in “Other expense” in the accompanying Consolidated Statement of Operations.
On July 29, 2010, the Company entered into a second amendment (“Amendment No.2”) to the Fourth Amended and Restated Credit and Reimbursement Agreement, dated as of July 29, 2008, among the Company, various subsidiary guarantors and various lending institutions (the “Existing Credit Agreement”) that amends and restates the Existing Credit Agreement (as so amended and restated by Amendment No.2, the “Fifth Amended and Restated Credit Agreement”).
The Fifth Amended and Restated Credit Agreement adjusted the terms and conditions of the Existing Credit Agreement, including the following changes: ?
the aggregate commitment for the revolving credit loan facility was increased to $800 million; ?
the final maturity date of the revolving credit loan facility was extended to January 29, 2015; ?
changes to the facility fee applicable to the revolving credit loan facility; ?
the interest rate margin applicable to the revolving credit loan facility is now based on the credit rating assigned to the loans under the credit agreement, with pricing currently at LIBOR + 3.00%; ?
there is an undrawn fee of 0.625% per annum; ?
the Company may incur a combination of additional term loan and revolver commitments so long as total term loan and revolver commitments (including those currently outstanding) do not exceed $1.4 billion; and ?
the negative pledge (i. e. , a cap on first lien debt) of $3.0 billion.
Recourse Debt Covenants and Guarantees Certain of the Company’s obligations under the senior secured credit facility are guaranteed by its direct subsidiaries through which the Company owns its interests in the AES Shady Point, AES Hawaii, AES Warrior Run and AES Eastern Energy businesses.
The Company’s obligations under the senior secured credit facility are, subject to certain exceptions, secured by: (i) all of the capital stock of domestic subsidiaries owned directly by the Company and 65% of the capital stock of certain foreign subsidiaries owned directly or indirectly by the Company; and


| Year Ended December 31 | 2004 | (In thousands) | Principal and interest payments on retained securities | Servicing fees received |


Commercial Operations Overview NRG seeks to maximize profitability and manage cash flow volatility through the marketing, trading and sale of energy, capacity and ancillary services into spot, intermediate and long-term markets and through the active management and trading of emissions allowances, fuel supplies and transportation-related services.
The Company's principal objectives are the realization of the full market value of its asset base, including the capture of its extrinsic value, the management and mitigation of commodity market risk and the reduction of cash flow volatility over time.
NRG enters into power sales and hedging arrangements via a wide range of products and contracts, including PPAs, fuel supply contracts, capacity auctions, natural gas derivative instruments and other financial instruments.
In addition, because changes in power prices in the markets where NRG operates are generally correlated to changes in natural gas prices, NRG uses hedging strategies that may include power and natural gas forward sales contracts to manage the commodity price risk primarily associated with the Company's coal and nuclear generation assets.
The objective of these hedging strategies is to stabilize the cash flow generated by NRG's portfolio of assets.
NRG also trades electric power, natural gas, oil, weather and related commodity and financial products, including forwards, futures, options and swaps, primarily through its ownership of Boston Energy Trading and Marketing, or BETM, which was acquired in the acquisition of EME.
BETM seeks to generate profits from volatility in the price of electricity, capacity, fuels and transmission congestion by buying and selling contracts in wholesale markets under guidelines approved by the Company's risk management committee.


Notes to Consolidated Financial Statements Subordinated Borrowings Unsecured long-term borrowings include subordinated debt and junior subordinated debt.
Junior subordinated debt is junior in right of payment to other subordinated borrowings, which are junior to senior borrowings.
As of December 2012 and December 2011, subordinated debt had maturities ranging from 2015 to 2038 and 2017 to 2038, respectively.
The table below presents subordinated borrowings.


M & T BANK CORPORATION AND SUBSIDIARIES Notes to Financial Statements  (Continued) The Commercial Banking segment provides a wide range of credit products and banking services to middle-market and large commercial customers, largely within the markets the Company serves.
Among the services provided by this segment are commercial lending and leasing, letters of credit, deposit products and cash management services.
The Commercial Real Estate segment provides credit services which are secured by various types of multifamily residential and commercial real estate and deposit services to its customers.
Activities of this segment also include the origination, sales and servicing of commercial real estate loans.
The Discretionary Portfolio segment includes securities, residential mortgage loans and other assets; short-term and long-term borrowed funds; brokered certificates of deposit and interest rate swap agreements related thereto; and offshore branch deposits.
This segment also provides foreign exchange services to customers.
The Residential Mortgage Banking segment originates and services residential mortgage loans for consumers and sells substantially all of those loans in the secondary market to investors or to bank subsidiaries of M&T.
The segment periodically purchases servicing rights to loans that have been originated by other entities.
This segment also originates and services loans to developers of residential real estate properties.
Residential mortgage loans held for sale are included in the Residential Mortgage Banking segment.
The Retail Banking segment offers a variety of services to consumers and small businesses through several delivery channels that include banking offices, automated teller machines, telephone banking and internet banking.
The All Other category includes other operating activities of the Company that are not directly attributable to the reported segments as determined in accordance with SFAS No.131, the difference between the provision for credit losses and the calculated provision allocated to the reportable segments, goodwill and core deposit and other intangible assets resulting from acquisitions of financial institutions, the net impact of the Companys internal funds transfer pricing methodology, eliminations of transactions between reportable segments, certain nonrecurring transactions, the residual effects of unallocated support systems and general and administrative expenses, and the impact of interest rate risk management strategies.
The amount of intersegment activity eliminated in arriving at consolidated totals was included in the All Other category as follows:


| Payments Due by Period | (in millions) | Operating leases | Purchase obligations† | Minimum royalty obligations | Interest payments†† | $767 |


Managements Discussion and Analysis Institutional Client Services Our Institutional Client Services segment is comprised of: Fixed Income, Currency and Commodities Client Execution.
Includes client execution activities related to making markets in interest rate products, credit products, mortgages, currencies and commodities.
We generate market-making revenues in these activities in three ways: ° In large, highly liquid markets (such as markets for U. S.  Treasury bills or certain mortgage pass-through certificates), we execute a high volume of transactions for our clients for modest spreads and fees.
° In less liquid markets (such as mid-cap corporate bonds, growth market currencies or certain non-agency mortgage-backed securities), we execute transactions for our clients for spreads and fees that are generally somewhat larger.
° We also structure and execute transactions involving customized or tailor-made products that address our clients risk exposures, investment objectives or other complex needs (such as a jet fuel hedge for an airline).
Given the focus on the mortgage market, our mortgage activities are further described below.
Our activities in mortgages include commercial mortgagerelated securities, loans and derivatives, residential mortgage-related securities, loans and derivatives (including U. S.  government agency-issued collateralized mortgage obligations, other prime, subprime and Alt-A securities and loans), and other asset-backed securities, loans and derivatives.
We buy, hold and sell long and short mortgage positions, primarily for market making for our clients.
Our inventory therefore changes based on client demands and is generally held for short-term periods.
See Notes 18 and 27 to the consolidated financial statements for information about exposure to mortgage repurchase requests, mortgage rescissions and mortgage-related litigation.
Equities.
Includes client execution activities related to making markets in equity products and commissions and fees from executing and clearing institutional client transactions on major stock, options and futures exchanges worldwide, as well as over-the-counter transactions.
Equities also includes our securities services business, which provides financing, securities lending and other prime brokerage services to institutional clients, including hedge funds, mutual funds, pension funds and foundations, and generates revenues primarily in the form of interest rate spreads or fees.


transactions had the cumulative effect of reducing our risk-weighted assets by $16.8 billion and $34.0 billion, and strengthened our Tier 1 capital ratio by 11 bps and 24 bps and our Tier 1 common capital ratio by eight bps and 12 bps.
Below is a discussion of certain risk characteristics of the residential mortgage portfolio, excluding the Countrywide purchased impaired loan portfolio, which contributed to higher losses.
These characteristics include loans with high refreshed LTVs, loans which were originated at the peak of home prices in 2006 and 2007, loans to borrowers located in the states of California and Florida where we have concentrations and where significant declines in home prices have been experienced, as well as interest-only loans.
Although the disclosures below address each of these risk characteristics separately, there is significant overlap in loans with these characteristics, which contributed to a disproportionate share of the losses in the portfolio.
Excluding the Countrywide purchased impaired portfolio, residential mortgage loans with all of these higher risk characteristics comprised seven percent of the total residential mortgage portfolio at December 31, 2009, but have accounted for 31 percent of the residential mortgage net charge-offs in 2009.
Residential mortgage loans with a greater than 90 percent but less than 100 percent refreshed LTV represented 11 percent of the residential mortgage portfolio and loans with a refreshed LTV greater than 100 percent represented 26 percent at December 31, 2009.
Of the loans with a refreshed LTV greater than 100 percent, 90 percent were performing at December 31, 2009.
Loans with a refreshed LTV greater than 100 per cent reflect loans where the outstanding book balance of the loan is greater than the most recent valuation of the property securing the loan.
The majority of these loans have a refreshed LTV greater than 100 percent due primarily to home price deterioration from the weakened economy.
Loans with refreshed FICO scores below 620 represented 16 percent of the residential mortgage portfolio.
The 2006 and 2007 vintage loans, which represented 42 percent of our residential mortgage portfolio at December 31, 2009, continued to season and have higher refreshed LTVs and accounted for 69 percent of nonperforming residential mortgage loans at December 31, 2009 and approximately 75 percent of residential mortgage net charge-offs during 2009.
The table below presents outstandings, nonperforming loans and net charge-offs by certain state concentrations for the residential mortgage portfolio.
California and Florida combined represented 43 percent of the total residential mortgage portfolio and 47 percent of nonperforming residential mortgage loans at December 31, 2009, but accounted for 58 percent of the residential mortgage net charge-offs for 2009.
The Los Angeles-Long Beach-Santa Ana Metropolitan Statistical Area (MSA) within California represented 12 percent and 13 percent of the total residential mortgage portfolio at December 31, 2009 and 2008.
Additionally, 37 percent and 24 percent of loans in California and Florida are in reference pools of synthetic securitizations, as described above, which provide mezzanine risk protection.


The Company had an investment in FHLB stock of $140.2 million and $164.4 million at December 31, 2011 and 2010, respectively.
The Company must also maintain qualified collateral as a percent of its advances, which varies based on the collateral type, and is further adjusted by the outcome of the most recent annual collateral audit and by FHLB’s internal ranking of the Bank’s creditworthiness.
These advances are secured by a pool of mortgage loans and mortgage-backed securities.
At December 31, 2011 and 2010, the Company pledged loans with a lendable value of $5.0 billion and $5.6 billion, respectively, of the one- to four-family and home equity loans as collateral in support of both its advances and unused borrowing lines.
During the year ended December 31, 2009, the Company paid down in advance of maturity $1.6 billion of its FHLB advances.
The Company recorded a loss on the early extinguishment of FHLB advances of $50.6 million for the year ended December 31, 2009.
This loss is recorded in the gains (losses) on early extinguishment of debt line item in the consolidated statement of income (loss).
The Company did not have any similar transactions for the years ended December 31, 2011 and 2010.


NOTE 10.
INCOME TAXES We and the majority of our subsidiaries are currently exempt from United States corporate tax on income from the international operation of ships pursuant to Section 883 of the Internal Revenue Code.
Income tax expense related to our remaining subsidiaries was not significant for the years ended December 31, 2006, 2005 and 2004.
Final regulations under Section 883 were published on August 26, 2003, and were effective for the year ended December 31, 2005.
These regulations confirmed that we qualify for the exemption provided by Section 883, but also narrowed the scope of activities which are considered by the Internal Revenue Service to be incidental to the international operation of ships.
The activities listed in the regulations as not being incidental to the international operation of ships include income from the sale of air and other transportation such as transfers, shore excursions and pre and post cruise tours.
To the extent the income from such activities is earned from sources within the United States, such income will be subject to United States taxation.
The application of these new regulations reduced our net income for the years ended December 31, 2006 and December 31, 2005 by approximately $6.3 million and $14.0 million, respectively.


| Location Type Principal Use SquareFootage Ownership | Santa Clara, CA | Austin, TX | Rehovot, Israel | Singapore | Gloucester, MA | Tainan, Taiwan |


| Year Ended December 31, Variance 2011 vs. 2010 | 2011 | Total net revenue | Compensation and benefits | Professional services | Occupancy and equipment | Communications | Depreciation and amortization | Facility restructuring and | other exit activities | Other operating expenses | Total operating expense | Operating loss | Total other income (expense) | Corporate/other loss |


Based on the analysis described above, for the reporting units for which we performed the first step of the quantitative impairment test, we concluded that our goodwill was not impaired as of October 1, 2015, because these reporting units passed the first step of the test as the fair values of each of the reporting units were substantially in excess of their respective net book values.
We review intangible assets with definite lives subject to amortization whenever events or circumstances indicate that a carrying amount of an asset may not be recoverable.
Recoverability of these assets is determined by comparing the carrying value of these assets to the estimated undiscounted future cash flows expected to be generated by these assets.
These assets are impaired when their carrying value exceeds their fair value.
Impaired intangible assets with definite lives subject to amortization are written down to their fair value with a charge to expense in the period the impairment is identified.
Intangible assets with definite lives are amortized on a straight-line basis with estimated useful lives generally between 7 and 15 years.
Events or circumstances that might require impairment testing include the loss of a significant client, the identification of other impaired assets within a reporting unit, loss of key personnel, the disposition of a significant portion of a reporting unit, significant decline in stock price or a significant adverse change in business climate or regulations.
Pension and Postretirement Benefit Plans We use various actuarial assumptions in determining our net pension and postretirement benefit costs and obligations.
Management is required to make significant judgments about a number of actuarial assumptions, including discount rates and expected returns on plan assets, which are updated annually or more frequently with the occurrence of significant events.
The discount rate is a significant assumption that impacts our net pension and postretirement benefit costs and obligations.
We determine our discount rates for our domestic pension and postretirement benefit plans and significant foreign pension plans based on either a bond selection/settlement approach or bond yield curve approach.
Using the bond selection/settlement approach, we determine the discount rate by selecting a portfolio of corporate bonds appropriate to provide for the projected benefit payments.
Using the bond yield curve approach, we determine the discount rate by matching the plans’ cash flows to spot rates developed from a yield curve.
Both approaches utilize high-quality AA-rated corporate bonds and the plans’ projected cash flows to develop a discounted value of the benefit payments, which is then used to develop a single discount rate.
In countries where markets for high-quality long-term AA corporate bonds are not well developed, a portfolio of long-term government bonds is used as a basis to develop hypothetical corporate bond yields, which serve as a basis to derive the discount rate.
The discount rate used to calculate net pension and postretirement benefit costs is determined at the beginning of each year.
For the year ended December 31, 2015, discount rates of 4.15% for the domestic pension plan and 4.00% for the postretirement benefit plan and a weighted-average discount rate of 3.41% for the significant foreign pension plans were used to calculate 2015 net pension and postretirement benefit costs.
A 25 basis point increase or decrease in the discount rate would have decreased or increased the 2015 net pension and postretirement benefit cost by approximately $1.0.
Notes to Consolidated Financial Statements – (continued) (Amounts in Millions, Except Per Share Amounts) of previously unrecognized tax benefits as a result of the reversal of valuation allowances in Continental Europe and the settlement of the 2010 U. S.  federal income tax audit.
In 2014, our effective income tax rate of 30.0% was positively impacted from changes to our valuation allowances of $66.0.
The primary drivers of the net change were associated with a valuation allowance reversal of $124.8 in one jurisdiction partially offset by the establishment of a valuation allowance of $57.2 in another jurisdiction, both in Continental Europe.
In addition, our effective income tax rate was negatively impacted by losses in certain foreign jurisdictions where we receive no tax benefit due to 100% valuation allowances.
In 2013, our effective income tax rate of 38.7% was positively impacted by the recognition of previously unrecognized tax benefits as a result of the recognition of losses attributable to worthless securities in a consolidated subsidiary and the settlement of the 2002-2006 New York State audit cycle.
Our effective income tax rate was negatively impacted primarily by losses in certain foreign jurisdictions where we receive no tax benefit due to 100% valuation allowances.
The components of deferred tax assets and liabilities are listed below.


| Years Ended | September 26, 2009 | Amount | Total Revenues | Operating Loss |


| Years Ended December 31 2011 2010 2009 | AstraZeneca LP | Merck/Schering-Plough-1 | Other-2 | $610 |


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


Capital asset purchases associated with the Retail segment were $294 million in 2007, bringing the total capital asset purchases since inception of the Retail segment to $1.0 billion.
As of September 29, 2007, the Retail segment had approximately 7,900 employees and had outstanding operating lease commitments associated with retail store space and related facilities of $1.1 billion.
The Company would incur substantial costs if it were to close multiple retail stores.
Such costs could adversely affect the Company’s financial condition and operating results.
Other Segments The Company’s Other Segments, which consists of its Asia Pacific and FileMaker operations, experienced an increase in net sales of $406 million, or 30% during 2007 compared to 2006.
This increase related primarily to a 58% increase in sales of Mac portable products and strong iPod sales in the Company’s Asia Pacific region.
During 2006, net sales in Other Segments increased 35% compared to 2005 primarily due to an increase in sales of iPod and Mac portable products.
Strong sales growth was a result of the introduction of the updated iPods featuring video-playing capabilities and the new Intel-based Mac portable products that translated to a 16% increase in Mac unit sales during 2006 compared to 2005.


Notes to consolidated financial statements 216 JPMorgan Chase & Co. /2012 Annual Report Determination of instrument-specific credit risk for items for which a fair value election was made The following describes how the gains and losses included in earnings during 2012, 2011 and 2010, which were attributable to changes in instrument-specific credit risk, were determined.  ?
Loans and lending-related commitments: For floatingrate instruments, all changes in value are attributed to instrument-specific credit risk.
For fixed-rate instruments, an allocation of the changes in value for the period is made between those changes in value that are interest rate-related and changes in value that are credit-related.
Allocations are generally based on an analysis of borrower-specific credit spread and recovery information, where available, or benchmarking to similar entities or industries.  ?
Long-term debt: Changes in value attributable to instrument-specific credit risk were derived principally from observable changes in the Firms credit spread.  ?
Resale and repurchase agreements, securities borrowed agreements and securities lending agreements: Generally, for these types of agreements, there is a requirement that collateral be maintained with a market value equal to or in excess of the principal amount loaned; as a result, there would be no adjustment or an immaterial adjustment for instrument-specific credit risk related to these agreements.


| 2006 2005 2004 | Statutory U.S. income tax rate | Effects of foreign operations, including foreign tax credits | State and local income taxes net of federal income tax effects | Other tax effects | Effective income tax rate for continuing operations |


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


| Pension Benefits | U.S. | Years Ended December 31 | Service cost | Interest cost | Expected return on plan assets | Amortization of unrecognized prior service cost | Net loss amortization | Termination benefits | Curtailments | Settlements | Net periodic benefit cost (credit) |


The following table provides freight revenue by commodity group:


| Year ended September 30, | 2017 | RJF return on average assets | RJF return on average equity | Average equity to average assets | Dividend payout ratio |


higher in the first half of the year, but declined during the second half of the year reflecting the passthrough to customers of lower resin input costs.
However, average margins benefitted from a more favorable mix of products sold.
Raw material costs were lower, primarily for resins.
Freight costs were also favorable, while operating costs increased.
Shorewood sales volumes in 2009 declined from 2008 levels reflecting weaker demand in the home entertainment segment and a decrease in tobacco segment orders as customers have shifted production outside of the United States, partially offset by higher shipments in the consumer products segment.
Average sales margins improved reflecting a more favorable mix of products sold.
Raw material costs were higher, but were partially offset by lower freight costs.
Operating costs were favorable, reflecting benefits from business reorganization and cost reduction actions taken in 2008 and 2009.
Charges to restructure operations totaled $7 million in 2009 and $30 million in 2008.
Entering 2010, Coated Paperboard sales volumes are expected to increase, while average sales price realizations should be comparable to 2009 fourth-quarter levels.
Raw material costs are expected to be significantly higher for wood, energy and chemicals, but planned maintenance downtime costs will decrease.
Foodservice sales volumes are expected to remain about flat, but average sales price realizations should improve slightly.
Input costs for resins should be higher, but will be partially offset by lower costs for bleached board.
Shorewood sales volumes are expected to decline reflecting seasonal decreases in home entertainment segment shipments.
Operating costs are expected to be favorable reflecting the benefits of business reorganization efforts.
EUROPEAN CONSUMER PACKAGING net sales in 2009 were $315 million compared with $300 million in 2008 and $280 million in 2007.
Operating earnings in 2009 of $66 million increased from $22 million in 2008 and $30 million in 2007.
Sales volumes in 2009 were higher than in 2008 reflecting increased shipments to export markets.
Average sales margins declined due to increased shipments to lowermargin export markets and lower average sales prices in Western Europe.
Entering 2010, sales volumes for the first quarter are expected to remain strong.
Average margins should improve reflecting increased sales price realizations and a more favorable geographic mix of products sold.
Input costs are expected to be higher due to increased wood prices in Poland and annual energy tariff increases in Russia.
ASIAN CONSUMER PACKAGING net sales were $545 million in 2009 compared with $390 million in 2008 and $330 million in 2007.
Operating earnings in 2009 were $24 million compared with a loss of $13 million in 2008 and earnings of $12 million in 2007.
The improved operating earnings in 2009 reflect increased sales volumes, higher average sales margins and lower input costs, primarily for chemicals.
The loss in 2008 was primarily due to a $12 million charge to revalue pulp inventories at our Shandong International Paper and Sun Coated Paperboard Co. , Ltd.  joint venture and start-up costs associated with the joint ventures new folding box board paper machine.
Distribution xpedx, our distribution business, markets a diverse array of products and supply chain services to customers in many business segments.
Customer demand is generally sensitive to changes in general economic conditions, although the commercial printing segment is also dependent on consumer advertising and promotional spending.
Distributions margins are relatively stable across an economic cycle.
Providing customers with the best choice and value in both products and supply chain services is a key competitive factor.
Additionally, efficient customer service, cost-effective logistics and focused working capital management are key factors in this segments profitability.


| Years Ended December 31, | 2012 | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Premiums | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest credited to fixed accounts | Benefits, claims, losses and settlement expenses | Amortization of deferred acquisition costs | Interest and debt expense | General and administrative expense | Total expenses | Income from continuing operations before income tax provision | Income tax provision | Income from continuing operations | Loss from discontinued operations, net of tax | Net income | Less: Net loss attributable to noncontrolling interests | Net income attributable to Ameriprise Financial | Pretax Increase (Decrease) | (in millions) | Other revenues | Benefits, claims, losses and settlement expenses | Amortization of DAC | Interest credited to fixed accounts | Total expenses | Total-1 |