| 2010 2009 | Revenue | Oilfield Services | Reservoir Characterization | Drilling | Reservoir Production | Eliminations & other | 26,673 | Distribution | 774 | Corporate & other-1 | Interest income-2 | Interest expense-3 | Charges & credits-4 | $27,447 | 2010 | Revenue | Oilfield Services | North America | Latin America | Europe/CIS/Africa | Middle East & Asia | Eliminations & other | 26,673 | Distribution | 774 | Corporate & other-1 | Interest income-2 | Interest expense-3 | Charges & credits-4 | $27,447 |


| 2006 2005 | Plan Assets | In millions | U.S. defined benefit plans | DPSP | Total |


| International Plan Assets | 2011 | Total | Asset Catergory: | Cash and Cash Equivalents | Equity Securities: | US(a) | International(b) | Debt Securities: | Corporate bonds(c) | Government and government-related(d) | Government agency collateralized mortgage obligations and mortgage backed securities(e) | Other collateralized mortgage obligations and mortgage-backed securities(f) | Alternative Investments: | Private equity(g) | Real estate(h) | Other | Total |


| Total Realized/Unrealized Gains (Losses) included in: Purchases, | Other | Balance, | January 1, | (In millions) | Year Ended December 31, 2009: | Pension: | Fixed maturity securities: | Corporate | Foreign bonds | Total fixed maturity securities | Equity securities: | Common stock — domestic | Total equity securities | Pass-through securities | Derivative securities | Other invested assets | Total pension assets | Other postretirement: | Pass-through securities | Total other postretirement assets | Total assets |


(1) Included in other for the fi scal years ended 2002 through 2004 are costs incurred in connection with debt retirements, including $20.4 million of bond tender fees in connection with the 2003 recapitalization and $9.0 million incurred in connection with the redemption of $109.1 million of senior subordinated notes as part of our 2004 IPO.
Other for 2005 is comprised of a gain recognized on the sale of an equity investment.
(2) Net income (loss) available to common stockholders for the fi scal years ended 2002 and 2003 is comprised of consolidated net income less cumulative preferred stock dividends and accretion amounts.
(3) We paid $188.3 million in dividends to shareholders as part of our recapitalization in 2003.
(4) Same store sales growth is calculated including only sales from stores that also had sales in the comparable period of the prior year, but excluding sales from certain seasonal locations such as stadiums and concert arenas.
International same store sales growth is calculated similarly to domestic same store sales growth.
Changes in international same store sales are reported on a constant dollar basis which refl ects changes in international local currency sales.
The 53rd week in 2004 had no positive or negative impact on reported same store sales growth amounts.
(5) In connection with our recapitalization in 2003, Domino’s, Inc.  issued and sold $403.0 million aggregate principal amount at maturity of senior subordinated notes at a discount resulting in gross proceeds of $400.1 million and borrowed $610.0 million in term loans.
We used the proceeds from the senior subordinated notes, borrowings from the term loans and cash from operations to retire $206.7 million principal amount of the then outstanding senior subordinated notes plus accrued interest and bond tender fees for $236.9 million, repay all amounts outstanding under the previous senior credit facility, redeem all of our outstanding preferred stock for $200.5 million and pay a dividend on our outstanding common stock of $188.3 million.
Additionally, we expensed $15.7 million of related general and administrative expenses, comprised of compensation expenses, wrote-off $15.6 million of deferred fi nancing costs to interest expense and expensed $20.4 million of bond tender fees in other expense.
Total recapitalization related expenses were $51.7 million (pre-tax).
We also recorded a $20.4 million deferred fi nancing cost asset.
(6) In connection with our IPO completed on July 16, 2004, Domino’s Pizza, Inc.  issued and sold 9,375,000 shares resulting in net proceeds to us of approximately $119.6 million.
These net proceeds were used to redeem, at a premium plus accrued interest, approximately $109.1 million aggregate principal amount of Domino’s, Inc.  8 1/4% senior subordinated notes.
Immediately following the closing of the IPO, we had 68,653,626 shares of common stock outstanding.
Additionally, in connection with the IPO, we used general funds to, among other things, distribute $16.9 million to our founder and former majority shareholder and his spouse for full payment of contingent notes then outstanding and pay $10.0 million to an affi liate of our principal stockholder, in connection with the termination of its management agreement with us, which was recorded in general and administrative expense.
Additionally, the 2004 fi scal year includes 53 weeks, while the 2002, 2003, 2005 and 2006 fi scal years each include 52 weeks.
INTEL CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 15: Chipset Design Issue In January 2011, as part of our ongoing quality assurance procedures, we identified a design issue with the Intel?6 Series Express Chipset family.
The issue affected chipsets sold in the fourth quarter of 2010 and January 2011.
We subsequently implemented a silicon fix and began shipping the updated version of the affected chipset in February 2011.
The total cost in 2011 to repair and replace affected materials and systems, located with customers and in the market, was $422 million.
We do not expect to have any significant future adjustments related to this issue.
Note 16: Borrowings Short-Term Debt As of December 28, 2013, short-term debt consisted of drafts payable of $257 million and notes payable of $24 million (drafts payable of $264 million and notes payable of $48 million as of December 29, 2012).
We have an ongoing authorization from our Board of Directors to borrow up to $3.0 billion, including through the issuance of commercial paper.
Maximum borrowings under our commercial paper program during 2013 were $300 million ($500 million during 2012).
Our commercial paper was rated A-1+ by Standard & Poor’s and P-1 by Moody’s as of December 28, 2013.
Long-Term Debt Our long-term debt at the end of each period was as follows:


| In millions of dollars 2010 2009 2008 | Total revenues, net of interest | expense-1 | Income (loss) from discontinued operations | Gain (loss) on sale | Benefit for income taxes | Income (loss) from discontinued | operations, net of taxes | In millions of dollars | Cash flows from operating activities | Cash flows from investing activities | Cash flows from financing activities | Net cash provided by (used in) | discontinued operations |


| (Pay)/Receive | U.S. dollars | Euros | Singapore dollars | Canadian dollars | Malaysian ringgits |


Hologic, Inc.  Notes to Consolidated Financial Statements (continued) (In thousands, except per share data) The aggregate purchase price for Suros of approximately $248,000 (subject to adjustment) consisted of 2,300 shares of Hologic Common Stock valued at $106,500, cash paid of $139,000, and approximately $2,600 for acquisition related fees and expenses.
The Company determined the fair value of the shares issued in connection with the acquisition in accordance with EITF Issue No.99-12, Determination of the Measurement Date for the Market Price of Acquirer Securities Issued in a Purchase Business Combination.
The components and allocation of the purchase price, consists of the following approximate amounts:


foreign tax authorities, which may result in proposed assessments, including assessments of interest and/or penalties.
Our estimate for the potential outcome for any uncertain tax issue is highly subjective and based on our best judgments.
Actualresults may differfrom our current judgments due to a variety of factors, including changes in law, interpretations of law by taxing authorities that differ from our assessments, changes in the jurisdictions in which we operate and results of routine tax examinations.
We believe we have adequately provided for any reasonably foreseeable outcome related to these matters.
However, our future results may include favorable or unfavorable adjustments to our estimated tax liabilities in the period the assessments are made or resolved, or when statutes of limitation on potential assessments expire.
As a result, our effective tax rate may fluctuate on a quarterly basis.
REVENUE RECOGNITION – We have many different revenue sources, each governed by specific revenue recognition policies.
Our revenue recognition policies can be found in Item 8, note 1 to our consolidated financial statements.
FINANCIAL CONDITION CAPITAL RESOURCES AND LIQUIDITY – Our sources of capital include cash from operations, cash from customer deposits, issuances of common stock and debt.
We use capital primarily to fund working capital, pay dividends, repurchase treasury shares and acquire businesses.
Our operations are highly seasonal and therefore generally require the use of cash to fund operating losses during the period May through mid-January.
Given the likely availability of a number of liquidity options discussed herein, including borrowing capacity under our CLOC, we believe, that in the absence of any unexpected developments, our existing sources of capital at April 30, 2011 are sufficient to meet our operating needs.
These comments should be read in conjunction with the consolidated balance sheets and consolidated statements of cash flows included in Item 8.


| Years Ended | September 24, 2011 | Amount | Total Revenues | Operating Income | Operating Income as a % of Segment Revenue |


| Year Ended December 31 2012 over 2011 2011 over 2010 | ($ in millions) | Sales and service revenues | Segment operating income (loss) | As a percentage of segment sales |


grounding of leased Airbus A300 aircraft prior to lease expiration, all in connection with announced capacity reductions and included in Special charges in the Consolidated Statements of Operations.
In addition, the Company’s 2008 results included the impact of a pension settlement charge of $103 million for one of the Company’s defined benefit plans included in Wages, salaries and benefits on the Consolidated Statements of Operations.
Revenues 2010 Compared to 2009 The Company’s revenues increased approximately $2.3 billion, or 11.3 percent, to $22.1 billion in 2010 compared to 2009 due to increased traffic and higher average fares.
American’s passenger revenues increased by 11.5 percent, or $1.7 billion, on a capacity (ASM) increase of 1.0 percent.
American’s passenger load factor increased approximately 1.2 points to 81.9 percent and passenger revenue yield per passenger mile increased 8.7 percent to 13.36 cents.
This resulted in an increase in passenger revenue per available seat mile (RASM) of 10.4 percent to 10.94 cents.
In 2010, American derived approximately 60 percent of its passenger revenues from domestic operations and approximately 40 percent from international operations (flights serving international destinations).
Following is additional information regarding American’s domestic and international RASM and capacity:


| For the Years Ended December 31, | (In millions, except per share data) | Statement of Operations data: | Operating revenues | Operating income | Income from continuing operations | Income from discontinued operations | Net income | Earnings per average common share (diluted): | Income from continuing operations | Income from discontinued operations | Net income | Dividends per common share | Average shares of common stock outstanding—diluted |


| Issuance December 31,2018UnpaidPrincipalBalance December 31,2018AccretedBalance December 31,2017AccretedBalance Interest Rate -1 Initial Term(in Years) Maturity Date | March 16, 2010-2 | August 7, 2018-3 (4) | October 5, 2017-3 | November 15, 2012-5 | December 17, 2015-2 | August 5, 2011-2 (6) | $1,500,000 | Deferred financing costs, net | $1,500,000 |


| Instantaneous change in rates(a) | (in millions) | December 31, 2013 | December 31, 2012 |


| Amount (In Millions) | 2009 net revenue | Volume/weather | Retail electric price | Provision for regulatory proceedings | Rough production cost equalization | ANO decommissioning trust | Fuel recovery | Other | 2010 net revenue |


| Contractual Obligations 2015 2016 2017 2018 2019 Thereafter Total | Long-term debt, including current portion: | American Tower subsidiary debt: | Secured Tower Revenue Securities, Series 2013-1A-1 | Secured Tower Revenue Securities, Series 2013-2A-2 | GTP Notes-3 | BR Towers Debentures-4 | BR Towers Credit Facility-4 | Unison Notes, Series 2010-1 Class C, Series 2010-2 Class C and Series 2010-2 Class F notes-5 | Mexican loan-6 | South African Facility-7 | Colombian Credit Facility-8 | Shareholder Loans-9 | Total American Tower subsidiary debt | American Tower Corporation debt: | 2013 Credit Facility | 2013 Term Loan | 2014 Credit Facility | 4.625% senior notes-10 | 7.00% senior notes | 4.50% senior notes | 3.40% senior notes | 7.25% senior notes | 5.05% senior notes | 3.450% senior notes | 5.90% senior notes | 4.70% senior notes | 3.50% senior notes | 5.00% senior notes | Total American Tower Corporation debt |


During 2014, the Corporation had total long-term debt maturities and purchases of $53.7 billion consisting of $33.9 billion for Bank of America Corporation, $8.9 billion for Bank of America, N. A.  and $10.9 billion of other debt.
During 2013, the Corporation had total long-term debt maturities and purchases of $65.6 billion consisting of $39.3 billion for Bank of America Corporation, $16.0 billion for Bank of America, N. A.  and $10.3 billion of other debt.
In 2013, in a combination of tender offers, calls and open-market transactions, the Corporation purchased senior and subordinated long-term debt with a carrying value of $9.2 billion and recorded net losses of $59 million in connection with these transactions.


Fair Value Measurements During the first quarter of 2008, we fully adopted FASB Statement No.157, Fair Value Measurements (FAS 157).
FAS 157 established a framework for measuring fair value and expanded disclosures about fair value measurements.
The adoption of FAS 157 had no impact on our financial position or results of operations.
FAS 157 applies to all assets and liabilities that are measured and reported on a fair value basis.
This enables the reader of the financial statements to assess the inputs used to develop those measurements by establishing a hierarchy for ranking the quality and reliability of the information used to determine fair values.
The statement requires that each asset and liability carried at fair value be classified into one of the following categories: Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.
Level 3: Unobservable inputs that are not corroborated by market data.


| Actual Results Excluding Items Affecting Comparability | Key Annual Performance Measures | Increase in Net Sales | Increase in EBIT | Improvement in EBIT Margin in basis points (“bps”) | Increase in Income Per Share-Diluted (“EPS”) |


Table of Contents The notional amounts for outstanding derivative instruments provide one measure of the transaction volume outstanding and do not represent the amount of the Companys exposure to credit or market loss.
The credit risk amounts represent the Companys gross exposure to potential accounting loss on derivative instruments that are outstanding or unsettled if all counterparties failed to perform according to the terms of the contract, based on then-current currency or interest rates at each respective date.
The Companys exposure to credit loss and market risk will vary over time as currency and interest rates change.
Although the table above reflects the notional and credit risk amounts of the Companys derivative instruments, it does not reflect the gains or losses associated with the exposures and transactions that the instruments are intended to hedge.
The amounts ultimately realized upon settlement of these financial instruments, together with the gains and losses on the underlying exposures, will depend on actual market conditions during the remaining life of the instruments.
The Company generally enters into master netting arrangements, which are designed to reduce credit risk by permitting net settlement of transactions with the same counterparty.
To further limit credit risk, the Company generally enters into collateral security arrangements that provide for collateral to be received or posted when the net fair value of certain financial instruments fluctuates from contractually established thresholds.
The Company presents its derivative assets and derivative liabilities at their gross fair values in its Consolidated Balance Sheets.
The net cash collateral received by the Company related to derivative instruments under its collateral security arrangements was $1.0 billion as of September 26, 2015 and $2.1 billion as of September 27, 2014.
Under master netting arrangements with the respective counterparties to the Companys derivative contracts, the Company is allowed to net settle transactions with a single net amount payable by one party to the other.
As of September 26, 2015 and September 27, 2014, the potential effects of these rights of set-off associated with the Companys derivative contracts, including the effects of collateral, would be a reduction to both derivative assets and derivative liabilities of $2.2 billion and $1.6 billion, respectively, resulting in net derivative liabilities of $78 million and $549 million, respectively.


Ammonia Segment Our ammonia segment produces anhydrous ammonia (ammonia), which is our most concentrated nitrogen fertilizer as it contains 82% nitrogen.
The results of our ammonia segment consist of sales of ammonia to external customers.
In addition, ammonia is the "basic" nitrogen product that we upgrade into other nitrogen products such as granular urea, UAN and AN.
We produce ammonia at all of our nitrogen manufacturing complexes.
The following table presents summary operating data for our ammonia segment, including the impact of our acquisition of the remaining 50% equity interest in CF Fertilisers UK:


| December 31, | 2011 | (dollar amounts in millions) | Consolidated capital calculations: | Common shareholders’ equity | Preferred shareholders’ equity | Total shareholders’ equity | Goodwill | Other intangible assets | Other intangible asset deferred tax liability-1 | Total tangible equity-2 | Preferred shareholders’ equity | Total tangible common equity-2 | Total assets | Goodwill | Other intangible assets | Other intangible asset deferred tax liability-1 | Total tangible assets-2 | Tier 1 capital | Preferred shareholders’ equity | Trust-preferred securities | REIT-preferred stock | Tier 1 common equity-2 | Risk-weighted assets (RWA) | Tier 1 common equity / RWA ratio-2 | Tangible equity / tangible asset ratio-2 | Tangible common equity / tangible asset ratio-2 | Tangible common equity / RWA ratio-2 |


| December 31, 2014 | Fair Value | Level 1 | (in millions) | Assets: | Fixed maturities, held-to-maturity | Commercial mortgage and other loans | Policy loans | Other long-term investments | Short-term investments | Cash and cash equivalents | Accrued investment income | Other assets | Total assets | Liabilities: | Policyholders’ account balances—investment contracts | Securities sold under agreements to repurchase | Cash collateral for loaned securities | Short-term debt | Long-term debt | Notes issued by consolidated VIEs | Other liabilities | Separate account liabilities—investment contracts | Total liabilities |


| Goodwill $4,445 | Customer-related intangible assets | Contract-based intangible assets | Net assets acquired |


| December 31, 2009 December 31, 2008 | Carrying amount | ($ in millions) | Fixed maturity securities — Public | Equity securities | Mortgage loans — Residential | Real estate | Policy loans | Other investments | Total invested assets | Cash and cash equivalents | Total invested assets and cash |


Performance Graph The following graph is a comparison of the five-year cumulative return of our common shares, the Standard & Poor’s 500 Index (the “S&P 500 Index”) and the National Association of Real Estate Investment Trusts’ (“NAREIT”) All Equity Index (excluding health care real estate investment trusts), a peer group index.
The graph assumes that $100 was invested on December 31, 2005 in our common shares, the S&P 500 Index and the NAREIT All Equity Index and that all dividends were reinvested without the payment of any commissions.
There can be no assurance that the performance of our shares will continue in line with the same or similar trends depicted in the graph below.


| Assumptions Percentage  Change October 31, 2011  Increase  (Decrease)  PBO/APBO* 2012  Increase  (Decrease)  Expense | Pension | Discount rate** | Expected return on assets | OPEB | Discount rate** | Expected return on assets | Health care cost trend rate** |


The Clean Energy Businesses participate in competitive renewable and energy infrastructure projects and provide energy-related products and services that are subject to different risks than those found in the businesses of the Utilities.
See
Con Edison Transmission invests in electric and gas transmission and gas storage projects, the current and prospective customers of which may have competitive alternatives.
The Utilities do not consider it reasonably likely that another company would be authorized to provide utility delivery service of electricity, natural gas or steam where the company already provides service.
Any such other company would need to obtain NYSPSC consent, satisfy applicable local requirements, install facilities to provide the service, meet applicable services standards and charge customers comparable taxes and other fees and costs imposed on the service.
A new delivery company would also be subject to extensive ongoing regulation by the NYSPSC.
See Utility Regulation  State Utility Regulation  Regulators, above.
The Utilities CECONY CECONY, incorporated in New York State in 1884, is a subsidiary of Con Edison and has no significant subsidiaries of its own.
Its principal business segments are its regulated electric, gas and steam businesses.
For a discussion of the companys operating revenues and operating income for each segment, see Results of Operations in Item 7.
For additional information about the segments, see Note N to the financial statements in Item 8.
Electric Operations Electric Facilities CECONYs capitalized costs for utility plant, net of accumulated depreciation, for distribution facilities were $18,716 million and $17,996 million at December 31, 2018 and 2017, respectively.
For its transmission facilities, the costs for utility plant, net of accumulated depreciation, were $3,106 million and $2,990 million at December 31, 2018 and 2017, respectively, and for its portion of the steam-electric generation facilities, the costs for utility plant, net of accumulated depreciation, were $592 million and $544 million, at December 31, 2018 and 2017, respectively.
See
Distribution Facilities CECONY owns 62 area distribution substations and various distribution facilities located throughout New York City and Westchester County.
At December 31, 2018, the companys distribution system had a transformer capacity of 32,653 MVA, with 37,049 miles of overhead distribution lines and 97,607 miles of underground distribution lines.


| December 28, 2013 December 29, 2012 | (In millions) | Beginning balance | New warranties issued during the period | Settlements during the period | Changes in liability for pre-existing warranties during the period, includingexpirations | Ending balance |


| Total Investments, as adjusted, December 31, 2014 $1,904 | Purchases/capital contributions | Sales/maturities | Distributions-1 | Market appreciation(depreciation)/earnings from equity method investments | Carried interest capital allocations/distributions received | Total Investments, as adjusted, December 31, 2015 |


| 2016 2015 2014 | Year endedDecember 31,(in millions, except ratios) | Other income | Total noninterest revenue | Net interest income | Total net revenue | Pre-provision profit | Income before income tax expense | Income tax expense | Overhead ratio |


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


Citigroups repurchases are primarily from Government Sponsored Entities.
The specific representations and warranties made by the Company depend on the nature of the transaction and the requirements of the buyer.
Market conditions and credit-ratings agency requirements may also affect representations and warranties and the other provisions the Company may agree to in loan sales.
In the event of a breach of the representations and warranties, the Company may be required to either repurchase the mortgage loans (generally at unpaid principal balance plus accrued interest) with the identified defects or indemnify (make-whole) the investor or insurer.
The Company has recorded a repurchase reserve that is included in Other liabilities in the Consolidated Balance Sheet.
In the case of a repurchase, the Company will bear any subsequent credit loss on the mortgage loans.
The Companys representations and warranties are generally not subject to stated limits in amount or time of coverage.
However, contractual liability arises only when the representations and warranties are breached and generally only when a loss results from the breach.
In the case of a repurchase, the loan is typically considered a creditimpaired loan and accounted for under SOP 03-3, Accounting for Certain Loans and Debt Securities, Acquired in a Transfer (now incorporated into ASC 310-30, ReceivablesLoans and Debt Securities Acquired with Deteriorated Credit Quality).
These repurchases have not had a material impact on nonperforming loan statistics, because credit-impaired purchased SOP 03-3 loans are not included in nonaccrual loans.
The Company estimates its exposure to losses from its obligation to repurchase previously sold loans based on the probability of repurchase or make-whole and an estimated loss given repurchase or make-whole.
This estimate is calculated separately by sales vintage (i. e. , the year the loans were sold) based on a combination of historical trends and forecasted repurchases and losses considering the: (1) trends in requests by investors for loan documentation packages to be reviewed; (2) trends in recent repurchases and make-wholes; (3) historical percentage of claims made as a percentage of loan documentation package requests; (4) success rate in appealing claims; (5) inventory of unresolved claims; and (6) estimated loss given repurchase or make-whole, including the loss of principal, accrued interest, and foreclosure costs.
The Company does not change its estimation methodology by counterparty, but the historical experience and trends are considered when evaluating the overall reserve.
The request for loan documentation packages is an early indicator of a potential claim.
During 2009, loan documentation package requests and the level of outstanding claims increased.
In addition, our loss severity estimates increased during 2009 due to the impact of macroeconomic factors and recent experience.
These factors contributed to a $493 million change in estimate for this reserve in 2009.
As indicated above, the repurchase reserve is calculated by sales vintage.
The majority of the repurchases in 2009 were from the 2006 and 2007 sales vintages, which also represent the vintages with the largest lossgiven-repurchase.
An insignificant percentage of 2009 repurchases were from vintages prior to 2006, and this is expected to decrease, because those vintages are later in the credit cycle.
Although early in the credit cycle, the Company has experienced improved repurchase and loss-given-repurchase statistics from the 2008 and 2009 vintages.
In the case of a repurchase of a credit-impaired SOP 03-3 loan (now incorporated into ASC 310-30), the difference between the loans fair value and unpaid principal balance at the time of the repurchase is recorded as a utilization of the repurchase reserve.
Payments to make the investor whole are also treated as utilizations and charged directly against the reserve.
The provision for estimated probable losses arising from loan sales is recorded as an adjustment to the gain on sale, which is included in Other revenue in the Consolidated Statement of Income.
A liability for representations and warranties is estimated when the Company sells loans and is updated quarterly.
Any subsequent adjustment to the provision is recorded in Other revenue in the Consolidated Statement of Income.
The activity in the repurchase reserve for the years ended December 31, 2009 and 2008 is as follows:


| Rating equivalent 2015 2014(a) | December 31,(in millions, except ratios) | AAA/Aaa to AA-/Aa3 | A+/A1 to A-/A3 | BBB+/Baa1 to BBB-/Baa3 | BB+/Ba1 to B-/B3 | CCC+/Caa1 and below | Total |


(a) See Note 7 to the Consolidated Financial Statements in Item 8 of this report.
(b) See Note 3 to the Consolidated Financial Statements in Item 8 of this report.
(c) See Note 4 to the Consolidated Financial Statements in Item 8 of this report.
(d) See Note 6 to the Consolidated Financial Statements in Item 8 of this report.
Forward-Looking Financial Measures Our fiscal 2019 outlook for organic net sales growth and constant-currency total segment operating profit and adjusted diluted EPS are non-GAAP financial measures that exclude, or have otherwise been adjusted for, items impacting comparability, including the effect of foreign currency exchange rate fluctuations, restructuring charges and project-related costs, acquisition integration costs, and commodity mark-to-market effects.
Our fiscal 2019 outlook for organic net sales growth also excludes the effect of acquisitions and divestitures.
We are not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because we are unable to predict with a reasonable degree of certainty the actual impact of changes in foreign currency exchange rates and commodity prices or the timing of acquisitions, divestitures and restructuring actions throughout fiscal 2019.
The unavailable information could have a significant impact on our fiscal 2019 GAAP financial results.
For fiscal 2019, we currently expect: foreign currency exchange rates (based on blend of forward and forecasted rates and hedge positions), acquisitions, and divestitures to increase net sales growth by high single digits; foreign currency exchange rates to have an immaterial impact on adjusted operating profit and adjusted diluted EPS growth; and restructuring charges and project-related costs related to actions previously announced to total approximately $13 million.


Each series of preferred stock has a liquidation value and redemption price per share of $1,000, plus any declared and unpaid dividends.
All preferred stock, with the exception of Series A, has no stated maturity and redemption is solely at the option of the Company.
Under current rules, any redemption of the preferred stock is subject to prior approval of the FRB.
Each share of the Series A Preferred Stock is non-voting and may be converted at any time, at the option of the holder, into 83.668 shares of common stock of Huntington, which represents an approximate initial conversion price of $11.95 per share of common stock.
Since April 15, 2013, at the option of Huntington, the Series A Preferred Stock is subject to mandatory conversion into Huntington’s common stock at the prevailing conversion rate if the closing price of Huntington’s common stock exceeds 130% of the conversion price for 20 trading days during any 30 consecutive trading-day period.
At the option of the holder, one share was converted to common stock during the fourth quarter of 2015.


| Current assets $1,922 | Long-term assets | Identifiable intangible assets | Total liabilities assumed | Total identifiable net assets | Goodwill | Net assets acquired |


| Union Employees Contract Expires | United Steelworkers of America | International Union of Operating Engineers | International Brotherhood of Electrical Workers |


| 2013 2012 2011 | Solid Waste | Wheelabrator | Corporate and Other | $18 |


| December 31, 2011 | Carrying Amount | (In millions) | Financial assets: | Cash and cash equivalents | Trading account assets | Securities available for sale | Securities held to maturity | Loans held for sale | Loans (excluding leases), net of unearned income and allowance for loan losses(2), (3) | Other interest-earning assets | Derivatives, net | Financial liabilities: | Deposits | Short-term borrowings | Long-term borrowings | Loan commitments and letters of credit |


| Transitional Basel III Pro Forma Basel III Assuming Full Phase-in | (dollars in millions) | December 31, 2016 | Common equity tier 1 capital-2 | Tier 1 capital-3 | Total capital-4 | Tier 1 leverage-5 | Risk-weighted assets | Quarterly adjusted average assets | December 31, 2015 | Common equity tier 1 capital-2 | Tier 1 capital-3 | Total capital-4 | Tier 1 leverage-5 | Risk-weighted assets | Quarterly adjusted average assets |


9.
RETIREMENT BENEFITS The Company has several non-contributory defined benefit pension plans covering certain U. S.  employees and has various defined benefit pension and termination indemnity plans covering employees outside the United States.
The U. S.  qualified defined benefit plan provides benefits under a cash balance formula.
However, employees satisfying certain age and service requirements remain covered by a prior final average pay formula under that plan.
Effective January1, 2008, the U. S.  qualified pension plan was frozen for most employees.
Accordingly, no additional compensation-based contributions were credited to the cash balance portion of the plan for existing plan participants after 2007.
However, certain employees covered Net (Benefit) Expense under the prior final pay plan formula continue to accrue benefits.
The Company also offers postretirement health care and life insurance benefits to certain eligible U. S.  retired employees, as well as to certain eligible employees outside the United States.
The following tables summarize the components of net (benefit) expense recognized in the Consolidated Statement of Income and the funded status and amounts recognized in the Consolidated Balance Sheet for the Company’s U. S.  qualified and nonqualified pension plans, postretirement plans and plans outside the United States.
The Company uses a December31 measurement date for the U. S.  plans as well as the plans outside the United States.


OPERATING EXPENSES Operating expenses increased to 64.3% of net sales as compared with 62.9% of net sales in the prior year.
The current year operating expense margin was negatively impacted by charges related to the implementation of our cost savings initiative of approximately $92.1 million or approximately 140 basis points, costs related to stockbased compensation as a result of the adoption of SFAS No.123(R) of approximately 60 basis points, and the estimated impact of both the merger of Federated Department Stores, Inc.  and The May Department Stores Company and the hurricanes that affected the southern United States of approximately 40 basis points.
Partially offsetting these incremental costs were operating expense margin improvements of approximately 90 basis points primarily resulting from net sales growth in brands and channels with lower advertising, merchandising and sampling cost structures as well as an overall reduction in this type of spending.
Overall operating expenses reflected savings achieved during fiscal 2006 from our cost savings initiative.
Changes in advertising, sampling and merchandising spending result from the type, timing and level of activities related to product launches and rollouts, as well as the markets being emphasized.
During fiscal 2006, we recorded special charges associated with a cost savings initiative that was designed to support our long-term financial objectives.
As part of this multi-faceted initiative, we identified savings opportunities that include streamlined processes and organizational changes.
The principal component of the initiative was a voluntary separation program offered primarily to North America-based employees.
During the fourth quarter of fiscal 2006, involuntary separations were communicated to certain employees.
Under this initiative, we incurred expenses related to one-time termination benefits for 494 employees, of which 28 were involuntary, which benefits were based principally upon years of service.
In addition, we identified other cost savings opportunities to improve efficiencies in our distribution network and product offerings and to eliminate other nonessential costs.
These charges primarily related to employee severance for facilities that are closing, contract cancellations, counter and door closings and product returns.
An additional $2 million to $3 million is expected to be incurred in fiscal 2007 related to the cost savings initiative.
For the year ended June 30, 2006, aggregate expenses of $92.1 million were recorded as special charges related to the cost savings initiative in the accompanying consolidated statement of earnings.
At June 30, 2006, $40.7 million and $28.2 million related to the cost savings initiative were recorded in other accrued liabilities and other noncurrent liabilities, respectively, in the accompanying consolidated balance sheet.
The following table summarizes the costs and expected savings associated with our cost savings initiative, which impacted, and will continue to impact, our operating expenses and cost of sales:


| Year Ended December 31, | 2012 | (MMBoe) | Proved Reserves Beginning of Year | Revisions of Previous Estimates | Extensions, Discoveries and Other Additions | Purchase of Minerals in Place | Sale of Minerals in Place | Production | Proved Reserves End of Year |


One-to-four family residential mortgage loans held for sale were $341 million at December 31, 2010 and $530 million at December 31, 2009.
Commercial mortgage loans held for sale were $204 million at December 31, 2010 and $123 million at December 31, 2009.
As of December 31, 2010, approximately $13 million of one-to-four family residential mortgage loans serviced for others had been sold with credit recourse.
As of December 31, 2010, approximately $1.6 billion of commercial mortgage loan balances serviced for others had been sold with recourse in conjunction with the Companys participation in the Fannie Mae Delegated Underwriting and Servicing (DUS) program.
At December 31, 2010, the Company estimated that the recourse obligations described above were not material to the Companys consolidated financial position.
There have been no material losses incurred as a result of those credit recourse arrangements.
In addition to recourse obligations, as described in note 21, the Company is contractually obligated to repurchase previously sold residential real estate loans that do not ultimately meet investor sale criteria related to underwriting procedures or loan documentation.
When required to do so, the Company may reimburse loan purchasers for losses incurred or may repurchase certain loans.
Charges
M&T BANK CORPORATION AND SUBSIDIARIES Notes to Financial Statements  (Continued) Information about interest rate swap agreements entered into for interest rate risk management purposes summarized by type of financial instrument the swap agreements were intended to hedge follows:


| Plan Category Number of Shares of Common Stock to be Issued Upon Exercise of Outstanding Options, Warrants and Rights (a)1,2,3 Weighted-Average Exercise Price of Outstanding Stock Options (b) Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column (a))(c)4 | Equity Compensation Plans Approved by Security Holders | Equity Compensation Plans Not Approved by Security Holders |


| Dollars in billions December 31 2013 December 312012 | Net outstanding standby letters of credit (a) | Internal credit ratings (as a percentage of portfolio): | Pass (b) | Below pass (c) |


| Pension plans Postretirement benefit plans | In millions of dollars | 2016 | Change in projected benefit obligation | Qualified plans | Projected benefit obligation at beginning of year | Benefits earned during the year | Interest cost on benefit obligation | Plan amendments | Actuarial loss (gain) | Benefits paid, net of participants’ contributions | Expected government subsidy | Divestitures | Settlement (gain) loss(1) | Curtailment (gain) loss(1) | Foreign exchange impact and other | Qualified plans | Nonqualified plans | Projected benefit obligation at year end |


| 2003 2002 2001 2000 1999 | Income statement data: | Revenue | Operating income | Income before cumulative effect of change in accounting principle | Cumulative effect of a change in accounting principle | Net income | Per share data: | Basic earnings per share: | Income before cumulative effect of a change in accounting principle | Cumulative effect of accounting change | Net income | Diluted earnings per share: | Income before cumulative effect of a change in accounting principle | Cumulative effect of accounting change | Net income | Dividends per share | Balance sheet data: | Total assets | Line of credit | Due to NDC | Obligations under capital leases | Total shareholder’s equity |


| For the years ended December 31, 2018 2017 2016 | Interest expense | Capitalized interest | Interest expense | Interest income | Interest expense, net |


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


(1) There were 254 selling days for the years ended December 31, 2014 and 2013.
Total Net sales in 2014 increased $1,305.9 million, or 12.1%, to $12,074.5 million, compared to $10,768.6 million in 2013.
The increase in total Net sales was primarily the result of continued growth in transactional products driven by notebooks/ mobile devices and desktop computers, as customers across all channels refreshed their client devices and K-12 customers continued to prepare for digital testing requirements, and the addition of more than 140 customer-facing coworkers, the majority in pre- and post-sale technical positions such as technical specialists and service delivery roles.
Growth in solutions-focused products, including netcomm and software, also contributed to the increase in Net sales during 2014.


THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements Transfers into level 3 of other financial liabilities during 2016 primarily reflected transfers of certain hybrid financial instruments included in unsecured short-term and long-term borrowings from level 2, principally due to reduced transparency of certain inputs, including correlation and volatility inputs used to value these instruments.
Transfers out of level 3 of other financial liabilities during 2016 primarily reflected transfers of certain hybrid financial instruments included in unsecured short-term and long-term borrowings to level 2, principally due to increased transparency of correlation and volatility inputs used to value these instruments.


| Fourth Quarter | (Amounts in millions) | Segment net sales | Cost of goods sold | Gross profit | Operating expenses | Segment operating earnings |


On May 15, 2001, HLI filed with the SEC a shelf registration statement (Registration No.333-60944) for the potential offering and sale of up to $1.0 billion in debt and preferred securities.
The registration statement was declared effective on May 29, 2001.
As of December 31, 2004, HLI had $1.0 billion remaining on its shelf.


In April 2009, the Financial Accounting Standards Board, or the FASB, issued new guidance to address concerns about (1) measuring the fair value of financial instruments when the markets become inactive and quoted prices may reflect distressed transactions and (2) recording impairment charges on investments in debt securities.
The new guidance highlights and expands on the factors that should be considered in estimating fair value when the volume and level of activity for a financial asset or liability has significantly decreased and requires new disclosures relating to fair value measurement inputs and valuation techniques (including changes in inputs and valuation techniques).
In addition, new guidance regarding recognition and presentation of otherthan-temporary impairments changed (1) the trigger for determining whether an other-than-temporary impairment exists and (2) the amount of an impairment charge to be recorded in earnings.
We adopted the provisions of the new guidance for the quarter ended June 30, 2009.
Refer to Note 4 and Note 5 to the consolidated financial statements included in Item 8.
Financial Statements and Supplementary Data for disclosures related to the implementation of the new guidance.


| December 31, 2012 Percentage of Total December 31, 2011 Percentage of Total | (dollars in millions) | U.S. Treasury and other U.S. government corporations and agencies: | U.S. Treasury and agency obligations | Mortgage-backed securities | Tax-exempt municipal securities | Mortgage-backed securities: | Residential | Commercial | Asset-backed securities | Corporate debt securities | Total debt securities |


Real Estate Holdings Real estate holdings by type consisted of the following:


Vendor Non-Trade Receivables The Company has non-trade receivables from certain of its manufacturing vendors resulting from the sale of raw material components to these manufacturing vendors who manufacture sub-assemblies or assemble final products for the Company.
The Company purchases these raw material components directly from suppliers.
These non-trade receivables, which are included in the consolidated balance sheets in other current assets, totaled $1.6 billion and $417 million as of September 30, 2006 and September 24, 2005, respectively.
The Company does not reflect the sale of these components in net sales and does not recognize any profits on these sales until the products are sold through to the end customer at which time the profit is recognized as a reduction of cost of sales.


for all legally binding unfunded equity commitments.
These liabilities are reflected in Other liabilities on our Consolidated Balance Sheet.
Table 60 also includes our involvement in lease financing transactions with LLCs engaged in solar power generation that to a large extent provided returns in the form of tax credits.
The outstanding financings and operating lease assets are reflected as Loans and Other assets, respectively, on our Consolidated Balance Sheet.
Our lease financing liabilities are reported in Deposits and Other liabilities.
During 2013, PNC sold limited partnership or non-managing member interests previously held in certain consolidated funds.
As a result, PNC no longer met the consolidation criteria for those investments and deconsolidated approximately $675 million of net assets related to the funds.
RESIDENTIAL AND COMMERCIAL MORTGAGE-BACKED SECURITIZATIONS In connection with each Agency and Non-agency securitization discussed above, we evaluate each SPE utilized in these transactions for consolidation.
In performing these assessments, we evaluate our level of continuing involvement in these transactions as the nature of our involvement ultimately determines whether or not we hold a variable interest and/or are the primary beneficiary of the SPE.
Factors we consider in our consolidation assessment include the significance of (i) our role as servicer, (ii) our holdings of mortgage-backed securities issued by the securitization SPE, and (iii) the rights of third-party variable interest holders.
The first step in our assessment is to determine whether we hold a variable interest in the securitization SPE.
We hold variable interests in Agency and Non-agency securitization SPEs through our holding of mortgage-backed securities issued by the SPEs and/or our recourse obligations.
Each SPE in which we hold a variable interest is evaluated to determine whether we are the primary beneficiary of the entity.
For Agency securitization transactions, our contractual role as servicer does not give us the power to direct the activities that most significantly affect the economic performance of the SPEs.
Thus, we are not the primary beneficiary of these entities.
For Non-agency securitization transactions, we would be the primary beneficiary to the extent our servicing activities give us the power to direct the activities that most significantly affect the economic performance of the SPE and we hold a more than insignificant variable interest in the entity.
In the first quarter 2013, contractual provisions of a Nonagency residential securitization were modified resulting in PNC being deemed the primary beneficiary of the securitization.
As a result, we consolidated the SPE and recorded the SPEs home equity line of credit assets and associated beneficial interest liabilities and are continuing to account for these instruments at fair value.
These balances are included within the Credit Card and Other Securitization Trusts balances line in Table 59.
Additionally, creditors of the SPE have no direct recourse to PNC.
Details about the Agency and Non-agency securitization SPEs where we hold a variable interest and are not the primary beneficiary are included in Table 60.
Our maximum exposure to loss as a result of our involvement with these SPEs is the carrying value of the mortgage-backed securities, servicing assets, servicing advances, and our liabilities associated with our recourse obligations.
Creditors of the securitization SPEs have no recourse to PNCs assets or general credit.


| Assets at Fair Value Non-Recurring Basis Impairment Charges December 31, | (in millions) | December 31, 2012 | Investment real estate | Other investments | Aircraft(a) | Other assets | Total | December 31, 2011 | Investment real estate | Other investments | Aircraft(b) | Other assets | Total |


| SPP Total Portfolio | 2013 | Rental revenues-2 | Tenant recoveries | Total segment revenues | Operating expenses | NOI | Straight-line rents | Amortization of market lease intangibles, net | Adjusted NOI | Adjusted NOI % change | Property count | Average capacity (beds)(3) | Average annual rent per bed |


Geographic Areas
(1) Comprised principally of corporate expenses not allocated to the segments, interest on postretirement medical benefits, stock-based compensation costs, amortization expense associated with intangible assets recorded as a result of the 2010 acquisition of Smith International, Inc.  (Smith) and certain other nonoperating items.
(2) Excludes interest income


Table XVI Quarterly Reconciliations to GAAP Financial Measures (1)


| Year Ended December 31, | (Dollars in thousands) | Total gains (losses) on foreign exchange forwards, net(1) | Change in fair value of interest rate swap-2 | Equity warrant assets: | Gains on exercise, net | Change in fair value-3: | Cancellations and expirations | Other changes in fair value | Total net gains on equity warrant assets-4 | Total gains on derivative instruments, net |


| 2015 2014 2013 | Interest expense on debt and capital lease obligations | Accretion of debt discounts | Accretion of remediation liabilities and other | Less: capitalized interest | Total interest expense |


| Location Size  (square feet) Principal Usage | 333 S. Wabash AvenueChicago, Illinois | 401 Penn StreetReading, Pennsylvania | 2405 Lucien WayMaitland, Florida | 40 Wall StreetNew York, New York | 1100 Ward AvenueHonolulu, Hawaii | 101 S. Phillips AvenueSioux Falls, South Dakota | 600 N. Pearl StreetDallas, Texas | 1249 S. River RoadCranbury, New Jersey | 4267 Meridian ParkwayAurora, Illinois | 675 Placentia AvenueBrea, California |


| 2005 2004 | Insurance Related Losses Reporting Unit: | Net | Reinstatement | Premium Cost | DBG | $— | — | — | — | — | $— |


Provision for Income Taxes.
We recorded a 24.9% provision for income taxes for fiscal year 2018, compared to 26.9% in fiscal year 2017 and 33.5% in fiscal year 2016.
The decrease in the effective tax rate from fiscal year 2017 to 2018 was primarily due to the impacts of the Tax Cuts and Jobs Act enacted on December 22, 2017, partially offset with foreign tax


| In millions 2012 2011 | January 1 | New nonperforming assets | Charge-offs and valuation adjustments | Principal activity, including paydowns and payoffs | Asset sales and transfers to loans held for sale | Returned to performing status | December 31 |


| 2018 Change 2017 | (millions) | Operating revenues | Fuel and purchased power | SPP network transmission costs | Other operating expenses | Depreciation and amortization | Income from operations | Other income (expense), net | Interest expense | Income tax expense (benefit) | Equity in earnings of equity method investees, net of income taxes | Net income | Less: Net income attributable to noncontrolling interests | Net income attributable to Westar Energy, Inc. | Revenues and Expenses | 2018 | Retail revenues | Residential | Commercial | Industrial | Other retail revenues | Total electric retail | Wholesale revenues | Transmission revenues | Other revenues | Operating revenues | Fuel and purchased power | SPP network transmission costs | Utility gross margin(a) |


| Years Ended December 31, | (in millions) | Net income (loss) | Depreciation and amortization | Income tax expense (benefit) | Interest expense, net | EBITDA | Non-cash equity-based compensation | Sponsor fees | Consulting and debt-related professional fees | Goodwill impairment | Net loss (gain) on extinguishments of long-term debt | Litigation, net(i) | IPO- and secondary-offering related expenses | Other adjustments(ii) | Adjusted EBITDA |


Intuit Health In July 2013 management having the authority to do so formally approved a plan to sell our Intuit Health business and on August 19, 2013 we completed the sale for cash consideration that was not significant.
We recorded a $4 million pre-tax loss on the disposal of Intuit Health that was more than offset by a related income tax benefit of approximately $14 million, resulting in a net gain on disposal of approximately $10 million in the first quarter of fiscal 2014.
The decision to sell the Intuit Health business was a result of management's desire to focus resources on its offerings for small businesses, consumers, and accounting professionals.
Intuit Health was part of our former Other Businesses reportable segment.
We determined that our Intuit Health business became a long-lived asset held for sale in the fourth quarter of fiscal 2013.
A long-lived asset classified as held for sale is measured at the lower of its carrying amount or fair value less cost to sell.
Since the carrying value of Intuit Health at July 31, 2013 was less than the estimated fair value less cost to sell, no adjustment to the carrying value of this long-lived asset was necessary at that date.
We also classified our Intuit Health business as discontinued operations in the fourth quarter of fiscal 2013 and have segregated its operating results in our statements of operations for all periods presented.
See the table later in this Note for more information.
We have not segregated the net assets of Intuit Health on our balance sheets for any period presented.
Net assets held for sale at July 31, 2013 consisted primarily of operating assets and liabilities that were not material.
Because operating cash flows from the Intuit Health business were also not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows.


| 2007 2006 | (In millions) | Commodity Instruments | Fair value hedges:(a) | Exchange-traded commodity futures | OTC commodity swaps | Non-hedge designation: | Exchange-traded commodity futures | Exchange-traded commodity options | OTC commodity swaps | OTC commodity options | Nontraditional Instruments | Long-term U.K. natural gas contracts(b) | Physical commodity contracts(c) | Financial Instruments | Fair value hedges: | OTC interest rate swaps(d) | Cash flow hedges: (e) | OTC foreign currency forwards | (Dollars in millions) | Long-term debt due within one year | Long-term debt | Total debt | Cash | Trusteed funds from revenue bonds(a) | Equity | Calculation: | Total debt | Minus cash | Minus trusteed funds from revenue bonds | Total debt minus cash | Total debt | Plus equity | Minus cash | Minus trusteed funds from revenue bonds | Total debt plus equity minus cash | Cash-adjusted debt-to-capital ratio | December 31, | (In millions) | Beginning balance | Total realized and unrealized losses (gains): | Included in net income | Included in other comprehensive income | Purchases, sales, issuances and settlements, net | Ending balance |


| (Amounts in Thousands)(a)(b) 2016 2015 | MWh of electricity | MMBtu of natural gas | Gallons of vehicle fuel |


| December 31, 2009 | Derivative Assets | (In millions) | Quoted prices in active markets for identical assets and liabilities (Level 1) | Significant other observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total estimated fair value |


A key strength of the Firm is its diversified deposit franchise, through each of its lines of business, which provides a stable source of funding and limits reliance on the wholesale funding markets.
A significant portion of the Firms deposits are consumer deposits, which are considered a stable source of liquidity.
Additionally, the majority of the Firms wholesale operating deposits are also considered to be stable sources of liquidity because they are generated from customers that maintain operating service relationships with the Firm.
The Firms loans-to-deposits ratio was 65% at both December 31, 2016 and 2015.
As of December 31, 2016, total deposits for the Firm were $1,375.2 billion, compared with $1,279.7 billion at December 31, 2015 (61% of total liabilities at each of December 31, 2016 and 2015).
The increase was attributable to higher consumer and wholesale deposits.
The increase in consumer deposits reflected continuing strong growth from existing and new customers, and the impact of low attrition rates.
The wholesale increase was driven by growth in operating deposits related to client activity in CIBs Treasury Services business, and inflows in AWM primarily from business growth and the impact of new rules governing money market funds.
The Firm believes average deposit balances are generally more representative of deposit trends.
The increase in average deposits for the year ended December 31, 2016 compared with the year ended December 31, 2015, was predominantly driven by an increase in consumer deposits, partially offset by a reduction in wholesale non-operating deposits, driven by the Firms actions in 2015 to reduce such deposits.
For further discussions of deposit and liability balance trends, see the discussion of the Firms business segments results and the Consolidated Balance Sheet Analysis on pages 5170 and pages 43 44, respectively.


| December 31 | Commercial Utilized-1 | (Dollars in millions) | Loans and leases | Derivative assets-4 | Standby letters of credit and financial guarantees | Debt securities and other investments-5 | Loansheld-for-sale | Commercial letters of credit | Bankers’ acceptances | Foreclosed properties and other | Total commercial credit exposure |


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) NOTE 12—RELATED PARTY TRANSACTIONS In the course of settling money transfer transactions, we purchase foreign currency from Consultoria Internacional Casa de Cambio (“CISA”), a Mexican company partially owned by certain of our employees.
As of March 31, 2008, Mr.  Raúl Limón Cortes, a 10% shareholder of CISA, was no longer an employee, and we no longer considered CISA a related party.
We purchased 6.1 billion Mexican pesos for $560.3 million during the ten months ended March 31, 2008 and 8.1 billion Mexican pesos for $736.0 million during fiscal 2007 from CISA.
We believe these currency transactions were executed at prevailing market exchange rates.
Also from time to time, money transfer transactions are settled at destination facilities owned by CISA.
We incurred related settlement expenses, included in cost of service in the accompanying consolidated statements of income of $0.5 million in the ten months ended March 31, 2008.
In fiscal 2007 and 2006, we incurred related settlement expenses, included in cost of service in the accompanying consolidated statements of income of $0.7 and $0.6 million, respectively.
In the normal course of business, we periodically utilize the services of contractors to provide software development services.
One of our employees, hired in April 2005, is also an employee, officer, and part owner of a firm that provides such services.
The services provided by this firm primarily relate to software development in connection with our planned next generation front-end processing system in the United States.
During fiscal 2008, we capitalized fees paid to this firm of $0.3 million.
As of May 31, 2008 and 2007, capitalized amounts paid to this firm of $4.9 million and $4.6 million, respectively, were included in property and equipment in the accompanying consolidated balance sheets.
In addition, we expensed amounts paid to this firm of $0.3 million, $0.1 million and $0.5 million in the years ended May 31, 2008, 2007 and 2006, respectively.
NOTE 13—COMMITMENTS AND CONTINGENCIES Leases We conduct a major part of our operations using leased facilities and equipment.
Many of these leases have renewal and purchase options and provide that we pay the cost of property taxes, insurance and maintenance.
Rent expense on all operating leases for fiscal 2008, 2007 and 2006 was $30.4 million, $27.1 million, and $24.4 million, respectively.
Future minimum lease payments for all noncancelable leases at May 31, 2008 were as follows:


Liquidity Risk and Capital Management Liquidity Risk Liquidity is the ongoing ability to accommodate liability maturities and deposit withdrawals, fund asset growth and business operations, and meet contractual obligations through unconstrained access to funding at reasonable market rates.
Liquidity management involves forecasting funding requirements and maintaining sufficient capacity to meet the needs and accommodate fluctuations in asset and liability levels due to changes in our business operations or unanticipated events.
Sources of liquidity include deposits and other customer-based funding, wholesale market-based funding, and liquidity provided by the sale or securitization of assets.
We manage liquidity at two levels.
The first is the liquidity of the parent company, which is the holding company that owns the banking and nonbanking subsidiaries.
The second is the liquidity of the banking subsidiaries.
The management of liquidity at both levels is essential because the parent company and banking subsidiaries each have different funding needs and sources, and each are subject to certain regulatory guidelines and requirements.
Through ALCO, the Finance Committee is responsible for establishing our liquidity policy as well as approving operating and contingency procedures, and monitoring liquidity on an ongoing basis.
Corporate Treasury is responsible for planning and executing our funding activities and strategy.
In order to ensure adequate liquidity through the full range of potential operating environments and market conditions, we conduct our liquidity management and business activities in a manner that will preserve and enhance funding stability, flexibility, and diversity.
Key components of this operating strategy include a strong focus on customer-based funding, maintaining direct relationships with wholesale market funding providers, and maintaining the ability to liquefy certain assets when, and if, requirements warrant.
We develop and maintain contingency funding plans for both the parent company and bank liquidity positions.
These plans evaluate our liquidity position under various operating circumstances and allow us to ensure that we would be able to operate though a period of stress when access to normal sources of funding is constrained.
The plans project funding requirements during a potential period of stress, specify and quantify sources of liquidity, outline actions and procedures for effectively managing through the problem period, and define roles and responsibilities.
They are reviewed and approved annually by ALCO.
Our borrowing costs and ability to raise funds are directly impacted by our credit ratings.
The credit ratings of Bank of America Corporation and Bank of America, National Association (Bank of America, N. A. )
are reflected in the table below.


| (Dollars in millions) 2013 2012 2011 | Price risk on mortgage banking production income-1, 2 | Market-related risk on mortgage banking servicing income-1 | Credit risk on loans-3 | Interest rate and foreign currency risk on ALM activities-4 | Price risk on restricted stock awards-5 | Other | Total |


| September 25, 2010 | Less than 12 Months | Fair Value | Certificates of deposit and time deposits | Corporate securities | Municipal securities | Total | September 26, 2009 | Less than 12 Months | Fair Value | Corporate securities |


| Years Ended December 31, | 2007 | (In millions) | Total intrinsic value of stock options exercised | Cash received from exercise of stock options | Tax benefit realized from stock options exercised |


(4) Represents depreciation and amortization from continuing operations.
(5) Represents the effect of foreign currency translation by translating results at an average exchange rate for the periods measured.
(6) Represents three-year weighted-average adjusted cash used for investing activities, determined by applying the weightings below to the adjusted cash used for investing activities for each quarter in the four-year period ended December 31, 2008.


PERFORMANCE GRAPH This graph compares the return on Lilly stock with that of the Standard & Poor’s 500 Stock Index and our peer group for the years 2014 through 2018.
The graph assumes that, on December 31, 2013, a person invested $100 each in Lilly stock, the S&P 500 Stock Index, and the peer groups' common stock.
The graph measures total shareholder return, which takes into account both stock price and dividends.
It assumes that dividends paid by a company are reinvested in that company’s stock.
Value of $100 Invested on Last Business Day of 2013 Comparison of Five-Year Cumulative Total Return Among Lilly, S&P 500 Stock Index, Peer Group(1)


| (Billions of cubic feet) United States Europe West (a) Africa Consolidated Equity Investees Continuing Operations Discontinued Operations | Natural Gas | Proved developed and undeveloped reserves: | Beginning of year – 2001 | Purchase of reserves in place(b) | Revisions of previous estimates | Improved recovery | Extensions, discoveries and other additions | Production(c) | Sales of reserves in place(b) | End of year – 2001 | Purchase of reserves in place(b) | Revisions of previous estimates | Improved recovery | Extensions, discoveries and other additions | Production(c) | Sales of reserves in place(b) | End of year – 2002 | Purchase of reserves in place(b) | Revisions of previous estimates | Improved recovery | Extensions, discoveries and other additions | Production(c) | Sales of reserves in place(b) | End of year – 2003 | Proved developed reserves: | Beginning of year – 2001 | End of year – 2001 | End of year – 2002 | End of year – 2003 |


| In millions of dollars U.S. pension and postretirement benefit plans | Asset categories | Equity securities | U.S. equity | Non-U.S. equity | Debt securities | U.S. corporate bonds | Non-U.S corporate bonds | Hedge funds | Annuity contracts | Private equity | Other investments | Total assets | In millions of dollars | Asset categories | Equity securities | Non-U.S. equity | Debt securities | Non-U.S. corporate bonds | Hedge funds | Annuity contracts | Other investments | Total assets |


Stock Compensation Plans Under the Companys 2002 Stock Incentive Plan, executive officers and key employees may be granted options to purchase the Companys common stock at no less than 100% of the market price on the date the option is granted.
Options generally become exercisable in installments of 25% per year on each of the first through the fourth anniversaries of the grant date and have a maximum term of 10 years.
Additionally, the plan provides for the granting of stock appreciation rights whereby the grantee may surrender exercisable rights and receive common stock and/or cash measured by the excess of the market price of the common stock over the option exercise price.
Under the terms of the 2002 Stock Incentive Plan, authorized shares include 0.9% of the outstanding shares per year through 2007, as well as the number of shares tendered in a prior year to pay the purchase price of options and the number of shares previously utilized to satisfy withholding tax obligations upon exercise.
Shares which were available for grant in a prior year but were not granted in such year and shares which were cancelled, forfeited or expired are also available for future grant.
The 2002 Stock Incentive Plan provides for the granting of common stock to key employees, subject to restrictions as to continuous employment.
Restrictions generally expire over a five-year period from date of grant.
Compensation expense is recognized over the restricted period.
At December 31, 2005 and 2004, there were 4.2 million and 2.9 million shares of restricted stock outstanding under the plan, respectively.
In 2005, 1.8 million shares of restricted stock were granted with a fair value of $24.61 per common share.
The 2002 Stock Incentive Plan also incorporates the Company's long-term performance awards.
These awards, which are delivered in the form of a target number of performance shares, have a three-year cycle.
For 2004 to 2006, the awards will be based 50% on cumulative EPS, 50% on cumulative sales, with the ultimate payout modified by the Companys total stockholder return versus the 11 companies in its proxy peer group.
If threshold targets are not met for the performance period, no payment will be made under the long-term performance award plan.
Maximum performance for all three measures will result in a maximum payout of 253% of target.
At December 31, 2005 and 2004, there were 1.8 million and 0.9 million performance shares outstanding under the plan, respectively.
In 2005, 1.1 million performance shares were granted with a fair value of $25.45 per common share.


Acquisition of certain assets of Zayante, Inc. , Prismo Graphics, and Silicon Grail During fiscal 2002 the Company acquired certain technology and patent rights of Zayante, Inc. , Prismo Graphics, and Silicon Grail Corporation for a total of $20 million in cash.
These transactions have been accounted for as asset acquisitions.
The purchase price for these asset acquisitions, except for $1 million identified as contingent consideration which would be allocated to compensation expense over the following 3 years, has been allocated to acquired technology and would be amortized on a straight-line basis over 3 years, except for certain assets acquired from Zayante associated with patent royalty streams that would be amortized over 10 years.


| Fiscal2014 Fiscal2013 Fiscal2012 % Change2014-2013 % Change2013-2012 | Digital Media | Percentage of total revenue | Digital Marketing | Percentage of total revenue | Print and Publishing | Percentage of total revenue | Total revenue |


| 2011 2010 2009 | Balance, January 1 | Deferred Costs | Amortization — DAC | Amortization — DAC from discontinued operations | Amortization — Unlock benefit (charge), pre-tax [1] | Adjustments to unrealized gains and losses on securities available-for-sale and other [2] | Effect of currency translation | Cumulative effect of accounting change, pre-tax [3] | Balance, December 31 |


Commissions Commissions revenue increased 9% to $456 million for the year ended December 31, 2014 compared to 2013.
The main factors that affect commissions are DARTs, average commission per trade and the number of trading days.
DART volume increased 12% to 168,474 for the year ended December 31, 2014 compared to 2013.
Option-related DARTs as a percentage of total DARTs represented 22% of trading volume for the year ended December 31, 2014, compared to 24% in 2013.
Average commission per trade decreased 3% to $10.81 for the year ended December 31, 2014 compared to 2013.
Average commission per trade is impacted by customer mix and the different commission rates on various trade types (e. g.  equities, options, fixed income, stock plan, exchange-traded funds, mutual funds, forex and cross border).
Accordingly, changes in the mix of trade types will impact average commission per trade.
Notes to Consolidated Financial Statements Guarantees of Subsidiaries.
Group Inc.  fully and unconditionally guarantees the securities issued by GS Finance Corp. , a wholly-owned finance subsidiary of the firm.
Group Inc.  has guaranteed the payment obligations of Goldman, Sachs & Co.  (GS&Co.
), GS Bank USA and Goldman Sachs Execution & Clearing, L. P.  (GSEC), subject to certain exceptions.
In November 2008, the firm contributed subsidiaries into GS Bank USA, and Group Inc.  agreed to guarantee the reimbursement of certain losses, including credit-related losses, relating to assets held by the contributed entities.
In connection with this guarantee, Group Inc.  also agreed to pledge to GS Bank USA certain collateral, including interests in subsidiaries and other illiquid assets.
In addition, Group Inc.  guarantees many of the obligations of its other consolidated subsidiaries on a transaction-bytransaction basis, as negotiated with counterparties.
Group Inc.  is unable to develop an estimate of the maximum payout under its subsidiary guarantees; however, because these guaranteed obligations are also obligations of consolidated subsidiaries, Group Inc. s liabilities as guarantor are not separately disclosed.
Note 19.
Shareholders Equity Common Equity Dividends declared per common share were $2.25 in 2014, $2.05 in 2013 and $1.77 in 2012.
On January 15, 2015, Group Inc.  declared a dividend of $0.60 per common share to be paid on March 30, 2015 to common shareholders of record on March 2, 2015.
The firms share repurchase program is intended to help maintain the appropriate level of common equity.
The share repurchase program is effected primarily through regular open-market purchases (which may include repurchase plans designed to comply with Rule 10b5-1), the amounts and timing of which are determined primarily by the firms current and projected capital position, but which may also be influenced by general market conditions and the prevailing price and trading volumes of the firms common stock.
Prior to repurchasing common stock, the firm must receive confirmation that the Federal Reserve Board does not object to such capital actions.
The table below presents the amount of common stock repurchased by the firm under the share repurchase program during 2014, 2013 and 2012.


to time in our marketing operations, none of our counterparty agreements contain margin requirements.
See additional information included in Critical Accounting Policies and Estimates – Derivative Instruments and Hedging Activities and Item 7A.
Quantitative and Qualitative Disclosures About Market Risk.
Accounts Receivable We have accounts receivable from sales of our crude oil, natural gas and NGLs, as well as electricity.
We also have accounts receivable related to our joint venture partners.
Some of these parties are not as creditworthy as we are and may experience liquidity problems.
We have obtained credit enhancements from some parties in the way of parental guarantees or letters of credit, including our largest international crude oil purchaser; however, not all of our trade credit is protected through guarantees or credit support.
Nonperformance by a trade creditor or joint venture partner could result in losses.
Other than reductions in the carrying value of a receivable from SemCrude, L. P. , a crude oil purchaser that declared bankruptcy in 2008 and certain entities purchasing electricity in Ecuador, we have experienced no significant collection issues with purchasers or joint venture partners.
See Item 8.
Financial Statements and Supplementary Data – Note 2.
Summary of Significant Accounting Policies.
Cash Flows Summary cash flow information is as follows:


| December 31, | 2015 | (in billions) | Advice & Wealth Management AUM | Asset Management AUM | Corporate & Other AUM | Eliminations | Total Assets Under Management | Total Assets Under Administration | Total AUM and AUA | 2007 | Risk-free interest rates | Expected volatility | Dividend yields | Expected lives |


| Amount of Commitment Expiration per Period | Total Amounts Committed | ($ in millions) | Standby Letters of Credit and Performance Bonds | Guarantees | Contingent Acquisition Consideration | Total |


| Cash, net of cash acquired $1,734 | Fair value of contingent consideration | $1,797 | Goodwill | Amortizable intangible assets | Indefinite-lived intangible assets | Inventory | Property, Plant and Equipment | Other net assets | Deferred income taxes | $1,797 | AmountAssigned(in millions) | Amortizable intangible assets: | Technology-related | Customer relationships | Other intangible assets | Indefinite-lived intangible assets: | In-process research & development | $1,080 |


| Vested benefit obligation $-98,512 | Accumulated benefit obligation | Projected benefit obligation | Plan assets at fair value at September 30, 1998 | Unrecognized transition liability | Unrecognized net gain | Unrecognized prior service cost | Prepaid pension cost at December 31, 1998 |


| 2009 Quarters 2008 Quarters | Fourth | Income statement data | In thousands, except per share | Net income | Net income | Amortization of core deposit and other intangible assets(a) | Merger-related gain(a) | Merger-related expenses(a) | Net operating income | Earnings per common share | Diluted earnings per common share | Amortization of core deposit and other intangible assets(a) | Merger-related gain(a) | Merger-related expenses(a) | Diluted net operating earnings per common share | Other expense | Other expense | Amortization of core deposit and other intangible assets | Merger-related expenses | Noninterest operating expense | Merger-related expenses | Salaries and employee benefits | Equipment and net occupancy | Printing, postage and supplies | Other costs of operations | Total | Balance sheet data | In millions | Average assets | Average assets | Goodwill | Core deposit and other intangible assets | Deferred taxes | Average tangible assets | Average common equity | Average total equity | Preferred stock | Average common equity | Goodwill | Core deposit and other intangible assets | Deferred taxes | Average tangible common equity | At end of quarter | Total assets | Total assets | Goodwill | Core deposit and other intangible assets | Deferred taxes | Total tangible assets | Total common equity | Total equity | Preferred stock | Unamortized discount and undeclared dividends — preferred stock | Total common equity | Goodwill | Core deposit and other intangible assets | Deferred taxes | Total tangible common equity |


| As of December 31, 2004 | Exercise Price | $130.65 | $ 0.003 |


| 2001  Restructuring Expense 2001 Cash Payments Liability as of  December 31, 2001 2002  Restructuring Expense 2002 Cash Payments Liability as of  December 31, 2002 | Restructuring costs | Employee separations | Lease terminations and other facility closing costs | Total | Held | Net Charge-offs | (Dollars in millions) | Residential mortgage | Credit card – domestic | Credit card – foreign | Home equity | Direct/Indirect consumer | Other consumer | Total consumer |


Dividend and Other Capital-Related Restrictions  The Articles of Incorporation of Xcel Energy place restrictions on the amount of common stock dividends it can pay when preferred stock is outstanding.
Under the provisions, dividend payments may be restricted if Xcel Energys capitalization ratio (on a holding company basis only and not on a consolidated basis) is less than 25 percent.
For these purposes, the capitalization ratio is equal to (i) common stock plus surplus divided by (ii) the sum of common stock plus surplus plus long-term debt.
Based on this definition, the capitalization ratio at Dec.  31, 2008 and 2007, was 84 percent and 85 percent, respectively.
Therefore, the restrictions do not place any effective limit on Xcel Energys ability to pay dividends because the restrictions are only triggered when the capitalization ratio is less than 25 percent or will be reduced to less than 25 percent through dividends (other than dividends payable in common stock), distributions or acquisitions of Xcel Energy common stock.
In addition, NSP-Minnesotas first mortgage indenture places certain restrictions on the amount of cash dividends it can pay to Xcel Energy, the holder of its common stock.
Even with these restrictions, NSP-Minnesota could have paid more than $999 million and $946 million in additional cash dividends on common stock at Dec.  31, 2008 and 2007, respectively.
The issuance of securities by Xcel Energy generally is not subject to regulatory approval.
However, utility financings and certain intra-system financings are subject to the jurisdiction of the applicable state regulatory commissions and/or the FERC under the Federal Power Act.  ?
PSCo currently has authorization to issue up to $250 million of long-term debt and up to $800 million of short-term debt at any one time outstanding.
PSCo has filed an application with the CPUC to increase the long-term debt authorization to $800 million.  ?
SPS currently has authorization to issue up to $400 million in short-term debt.  ?
NSP-Wisconsin currently has authorization to issue up to $250 million of long-term debt and $100 million of short-term debt.  ?
NSP-Minnesota has authorization to issue long-term securities provided the equity ratio remain between 46.26 percent and 56.54 percent and to issue short-term debt provided it does not exceed 15 percent of total capitalization.
Total capitalization for NSP-Minnesota cannot exceed $7.5 billion.
Xcel Energy believes these authorizations are adequate and will seek additional authorization when necessary, however, there can be no assurance that additional authorization will be granted on the timeframe or in the amounts requested.
The FERC has granted a blanket authorization for certain intra-system financings involving holding companies.
The utility subsidiaries participate in the money pool, in amounts ranging from $250 million for each of NSP-Minnesota and PSCo, to $100 million for SPS and $100 million for NSP-Wisconsin to borrow only from NSP-Minnesota.
NSP-Wisconsin is not authorized and does not participate in the money pool.
Stockholder Protection Rights Agreement  In June 2001, Xcel Energy adopted a Stockholder Protection Rights Agreement (Rights Agreement) pursuant to which each share of Xcel Energys common stock included one shareholder protection right.
On Dec.  11, 2008, Xcel Energy amended the Rights Agreement, changing the expiration date of the agreement from June 28, 2011 to Dec.  11, 2008.
Accordingly, the Rights Agreement expired on Dec.  11, 2008, and all associated rights have expired.10.
Share-Based Compensation Stock Options  Xcel Energy has incentive compensation plans under which stock options and other performance incentives are awarded to key employees.
In the past, Xcel Energy issued stock options, but has not granted stock


In 2016, advertising revenue increased by 13% compared to 2015.
Foreign exchange effect did not have a material impact on advertising revenue in 2016.
The substantial majority of our advertising revenue was generated from our owned and operated platform.
Advertising revenue generated from the sale of our advertising products on our owned and operated platform in 2016 was $1.99 billion as compared to $1.80 billion in 2015.
Advertising revenue generated from the sale of our advertising products placed on third-party publishers websites, applications and other offerings in 2016 was $260.2 million as compared to $194.2 million in 2015, which increase was driven, in part, by the acquisition of TellApart in May 2015 and from the growth of sales in our organically-built advertising network, Twitter Audience Platform.
The overall increase in advertising revenue was primarily attributable to a 152% increase in the number of ad engagements offset by a 55% decrease in average cost per ad engagement in 2016 compared to 2015.
The increase in ad engagements was driven by continued adoption of auto-play video and an increase in ad load.
The decrease in average cost per ad engagement was due primarily to the shift to auto-play video, which delivers more engagement at a much lower average cost per engagement than click-to-play video ads and decreases in same-format prices for most of our other advertising products.
Advertising revenue continued to be driven by growth in demand for our advertising products, particularly video as well as growth in our advertising base.
Strength from our video ad format, however, was offset by year-over-year declines in revenue generated from our traditional Promoted Tweet ad format.
In 2016, data licensing and other revenue increased by 26% compared to 2015.
The increase was primarily attributable to growth in mobile advertising exchange services and to a lesser extent an increase in data licensing fees from the offering of data products.
Cost of Revenue Cost of revenue includes infrastructure costs, other direct costs including content costs, amortization of acquired intangible assets and amortization of capitalized labor costs for internally developed software, allocated facilities costs, as well as traffic acquisition costs, or TAC.
Infrastructure costs consist primarily of data center costs related to our co-located facilities, which include lease and hosting costs, related support and maintenance costs and energy and bandwidth costs; as well as depreciation of servers and networking equipment; and personnel-related costs, including salaries, benefits and stock-based compensation, for our operations teams.
TAC consists of costs we incur with third parties in connection with the sale to advertisers of our advertising products that we place on third-party publishers websites, applications or other offerings collectively resulting from acquisitions, and from our organically-built advertising network, Twitter Audience Platform.
Many of the elements of our cost of revenue are fixed, and cannot be reduced in the near term.


PRUDENTIAL FINANCIAL, INC.  Notes to Consolidated Financial Statements 20.
FAIR VALUE OF ASSETS AND LIABILITIES (continued) Nonrecurring Fair Value Measurements—Certain assets and liabilities are measured at fair value on a nonrecurring basis.
Nonrecurring fair value adjustments resulted in $73 million of losses being recorded for the year ended December 31, 2010 on certain commercial mortgage loans.
The carrying value of these loans as of December 31, 2010 was $267 million.
Similar losses on commercial mortgage loans of $200 million and $36 million were recorded for the years ended December 31, 2009 and 2008.
The adjustments were based on either discounted cash flows utilizing market rates or the fair value of the underlying real estate collateral and were classified as Level 3 in the hierarchy.
In addition, losses of $38 million were recorded for the year ended December 31, 2008 related to commercial loans that were carried at the lower of cost or market.
The fair value measurements were classified as Level 3 in the valuation hierarchy.
The inputs utilized for these valuations are pricing indicators from the whole loan market, which the Company considers its principal market for these loans.
Impairments of $6 million, $55 million and $26 million were recorded for the years ended December 31, 2010, 2009 and 2008, respectively, on certain cost method investments.
The carrying value as of December 31, 2010 of these investments was $165 million.
In addition, impairments of $4 million, $12 million and $14 million were recorded for the years ended December 31, 2010, 2009 and 2008, respectively, on certain equity method investments.
These fair value adjustments were based on inputs classified as Level 3 in the valuation hierarchy.
The inputs utilized were primarily discounted estimated future cash flows and, where appropriate, valuations provided by the general partners taken into consideration with deal and management fee expenses.
Impairments of $6 million and $12 million for the years ended December 31, 2010 and 2009, respectively, were recorded for mortgage servicing rights.
The impairments were based on internal models and were classified as Level 3 in the hierarchy.
In addition, impairments of $7 million for the year ended December 31, 2009 were recorded for real estate investments, some of which were classified as discontinued operations.
The impairments were based on appraisal values or purchase agreements and were classified as Level 3 in the hierarchy.
For the year ended December 31, 2008, the Company recorded impairments of $316 million on certain equity method investments in operating joint ventures held within the international investments segment.
The inputs used in determining these impairments were classified as Level 3 in the valuation hierarchy and consisted primarily of market multiples and discounted cash flows.
As discussed in more detail in Note 9, the Company recorded goodwill impairments of $337 million during the year ended December 31, 2008.
The inputs were classified as Level 3 and primarily consisted of discounted cash flows and market multiples.
Fair Value Option—The following table presents information regarding changes in fair values recorded in earnings for commercial mortgage loans, other long-term investments and long-term debt, where the fair value option has been elected.


The above contracts are subject to enforceable master netting arrangements that provide rights of offset with each counterparty when amounts are payable on the same date in the same currency or in the case of certain specified defaults.
Management has made an accounting policy election to not offset the fair value of recognized derivative assets and derivative liabilities in the consolidated balance sheet.
The amounts owed to the counterparties and owed to the Company are considered immaterial with respect to each counterparty and in the aggregate with all counterparties.
Credit-Risk-Related Contingent Features International Paper evaluates credit risk by monitoring its exposure with each counterparty to ensure that exposure stays within acceptable policy limits.
Credit risk is also mitigated by contractual provisions with the majority of our banks.
Certain of the contracts include a credit support annex that requires the posting of collateral by the counterparty or International Paper based on each partys rating and level of exposure.
Based on the Companys current credit rating, the collateral threshold is generally $15 million.
If the lower of the Companys credit rating by Moodys or S&P were to drop below investment grade, the Company would be required to post collateral for all of its derivatives in a net liability position, although no derivatives would terminate.
As of December 31, 2018 and 2017, there were no derivative instruments containing credit-risk-related contingent features in a net liability position.
The Company was not required to post any collateral as of December 31, 2018 or 2017.


The fair value of non-employee share awards released for the years ended December 31, 2006 was $1 million.
There were no non-employee awards released during the years ended December 31, 2005 and 2004.
Unrecognized Compensation Cost Unrecognized compensation cost for employee stock options as of December 31, 2006 was $40 million with a weighted average recognition period of 1.61 years.
Unrecognized compensation cost for employee restricted stock awards, restricted stock units, and performance share awards as of December 31, 2006 was $107 million with a weighted average recognition period of 1.79 years.
Unrecognized compensation cost for non-employee stock options as of December 31, 2006 was $1 million with a weighted average recognition period of 1.16 years.
Unrecognized compensation cost for non-employee restricted stock awards and restricted stock units as of December 31, 2006 was $5 million with a weighted average recognition period of 2.09 years.
Tax Benefits Realized The tax benefit realized for exercises of employee and non-employee stock options during the years ended December 31, 2006, 2005 and 2004 was $69 million, $58 million and $20 million, respectively.
The tax benefit realized upon vesting of restricted stock shares, restricted stock units, and performance shares for the years ended December 31, 2006, 2005 and 2004 was $52 million, $4 million and $2 million, respectively.
Settlement of Awards The Company’s policy is to issue shares from Common Stock held in treasury upon exercise of employee and non-employee stock options as well as for the release of restricted stock shares, restricted stock units, and performance shares.
As of December 31, 2006, the company has not settled any equity instruments granted under share-based payment arrangements in cash.