REPUBLIC SERVICES, INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) Employee Stock Purchase Plan Republic employees are eligible to participate in an employee stock purchase plan.
The plan allows participants to purchase our common stock for 95% of its quoted market price on the last day of each calendar quarter.
For the years ended December 31, 2017, 2016 and 2015, issuances under this plan totaled 113,941 shares, 130,085 shares and 141,055 shares, respectively.
As of December 31, 2017, shares reserved for issuance to employees under this plan totaled 0.4 million and Republic held employee contributions of approximately $1.8 million for the purchase of common stock.12.
STOCK REPURCHASES AND DIVIDENDS Stock Repurchases Stock repurchase activity during the years ended December 31, 2017 and 2016 follows (in millions except per share amounts):


In addition to product warranties, the Company, from time to time in its normal course of business, indemnifies other parties, with whom it enters into contractual relationships, including customers, lessors and parties to other transactions with the Company, with respect to certain matters.
In these limited matters, the Company has agreed to hold certain third parties harmless against specific types of claims or losses, such as those arising from a breach of representations or covenants, third-party claims that the Company’s products when used for their intended purpose(s) and under specific conditions infringe the intellectual property rights of a third party, or other specified claims made against the indemnified party.
It is not possible to determine the maximum potential amount of liability under these indemnification obligations due to the unique facts and circumstances that are likely to be involved in each particular claim and indemnification provision.
Historically, payments made by the Company under these obligations have not been material.


During the fourth quarter of 2008, the IRS started the field examination of the Companys 2006 and 2007 tax years.
The Company also has several state and Non-U.
S.  audits pending.
A summary of open tax years by major jurisdiction is presented below:


| 2007 2006 2005 | (in thousands) | Stock-based compensation expense by type: | Stock options | Restricted stock awards | Total stock-based compensation expense | Tax benefit recognized | Stock-based compensation expense, net of tax |


Interest credited to contractholder funds decreased 10.1% or $270 million in 2008 compared to 2007 and increased 2.8% or $72 million in 2007 compared to 2006.
The decrease in 2008 compared to 2007 was due primarily to a decline in average contractholder funds, decreased weighted average interest crediting rates on institutional products resulting from a decline in market interest rates on floating rate obligations, and a favorable change in amortization of DSI relating to realized capital gains and losses, partially offset by the acceleration of amortization of DSI due to changes in assumptions.
The acceleration of amortization of DSI due to changes in assumptions increased interest credited to contractholder funds by $70 million in 2008 compared to amortization deceleration which decreased interest credited to contractholder funds by $5 million in 2007.
The increase in interest credited to contractholder funds in 2007 compared to 2006 was due primarily to growth in average contractholder funds and, to a lesser extent, higher weighted average interest crediting rates on institutional products, which are detailed in the table of investment yields, crediting rates and investment spreads by product below.
The increase was partially offset by the impact of the reinsured variable annuity business.
Excluding the impact of the reinsured variable annuity business, interest credited to contractholder funds increased 3.7% in 2007 compared to 2006.
In order to analyze the impact of net investment income and interest credited to contractholders on net income, we monitor the difference between net investment income and the sum of interest credited to contractholder funds and the implied interest on immediate annuities with life contingencies, which is included as a component of life and annuity contract benefits on the Consolidated Statements of Operations (‘‘investment spread’’).
The investment spread by product group is shown in the following table.


| Developed Acreage Undeveloped Acreage | Gross | (thousands) | United States | Onshore | Offshore | Total United States | International | Equatorial Guinea | Cameroon | Israel | North Sea-1 | China | Suriname | France-2 | Nicaragua | Cyprus-3 | India | Total International | Total | December 31,2015 | (millions) | Long-Term Debt, Net-1 |


Item 4.
Mine Safety Disclosures.
Not applicable.


| Operating Leases Aggregate Debt Maturities | 2005 | 2006 | 2007 | 2008 | 2009 | Thereafter | Total obligations and commitments |


| At December 31, 2008 Gross   Transaction   Notional   Amount(a) Subordination   Below the   Super Senior   Risk Layer Net   Notional   Amount(b) Fair Value   of Derivative   Liability | (In millions) | High grade with sub-prime collateral | High grade with no sub-prime collateral | Total high grade(c) | Mezzanine with sub-prime | Mezzanine with no sub-prime | Total mezzanine(d) | Total |


| September 30, 2009 September 30, 2008 | Carrying Amount | (in 000’s) | Financial Assets: | Bank Loans, Net | Financial Liabilities: | Bank Deposits | Other Borrowings | Corporate Debt |


| 2009 period Total sharespurchased(a) Averagepricepaid pershare Total sharespurchased aspartofpubliclyannouncedprograms (b) Maximumnumber ofshares thatmay yet bepurchasedunder theprograms (b) | October 1 –October 31 | November 1 –November 30 | December 1 –December 31 | Total |


| Sites Corporate BD Life Sciences BD Medical Mixed(A) Total | Leased | Owned | Total | Square feet |


| 2003 $17,274 | 2004 | 2005 | 2006 | 2007 | Thereafter | Total minimum lease payments |


| December 31, 2015 December 31, 2014 | Asset Class | Investment funds | Limited partnerships | Fixed income securities | Insurance contracts | Other | Total | Year ended December 31, 2015 | Investment Funds | Balance at beginning of period | Actual return on assets: | Assets sold during the year | Assets still held at year end | Net purchases, sales and settlements | Transfers in/out of Level 3 | Balance at end of period |


| Year ended December 31, | (Dollars in thousands, except ratios) | Allowance for loan losses, beginning balance | Provision for loan losses | Gross loan charge-offs | Loan recoveries | Allowance for loan losses, ending balance | Provision as a percentage of period-end total gross loans | Gross loan charge-offs as a percentage of average total gross loans | Net loan charge-offs as a percentage of average total gross loans | Allowance for loan losses as a percentage of period-end total gross loans | Period-end total gross loans | Average total gross loans |


| Year Ended December 31, | (millions) | (Gain) Loss on Commodity Derivative Instruments | Interest, Net of Amount Capitalized | Other Non-Operating (Income) Expense, Net | Total |


Table of Contents As of December 31, 2013, there were $22 million of total unrecognized compensation costs related to SARs.
These costs are expected to be recognized over a weighted average period of 0.7 years.
The total intrinsic value of stock options and SARs exercised during the 23 day period ending December 31, 2013 was $0.5 million.
As of December 31, 2013, the weighted average fair value of outstanding CSARs was $19.11 per share and the related liability was $52 million.
These CSARs will continue to be remeasured at fair value at each reporting date until all awards are settled.
As of December 31, 2013, the total unrecognized compensation expense for CSARs was $2 million and is expected to be recognized over a weighted average period of 0.3 years.
Total cash paid for CSARs exercised during the during the 23 day period ending December 31, 2013 was $0.5 million.


| $ in millions Total 2019 2020- 2021 2022- 2023 2024 and beyond | Long-term debt | Interest payments on long-term debt | Operating leases | Purchase obligations-1 | Other long-term liabilities-2 | Total contractual obligations |


| Year Ended December 31, 2008 (In millions) | Balance, December 31, 2007 | Impact of SFAS 157 and SFAS 159 adoption | Balance, beginning of period | Total realized/unrealized gains (losses) included in: | Earnings | Other comprehensive income (loss) | Purchases, sales, issuances and settlements | Transfer in and/or out of Level 3 | Balance, end of period |


2017 vs.  2016 Sales of $82.6 decreased $153.4, primarily due to lower LNG project activity.
We expect continued weakness in new LNG project orders due to continued oversupply of LNG in the market.
Operating loss of $170.6 increased $83.0 due to lower LNG activity, partially offset by productivity improvements and income from transition service agreements with Versum and Evonik.2016 vs.  2015 Sales of $236.0 decreased $79.4, or 25%, primarily due to lower LNG sale of equipment activity.
Operating loss of $87.6 increased 1%, or $1.1, due to lower LNG activity, mostly offset by benefits from our recent cost reduction actions and lower foreign exchange losses.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Millions of dollars unless otherwise indicated, except for per share data) The Company has presented certain financial measures on a non-GAAP (“adjusted”) basis and has provided a reconciliation to the most directly comparable financial measure calculated in accordance with GAAP.
These financial measures are not meant to be considered in isolation or as a substitute for the most directly comparable financial measure calculated in accordance with GAAP.
The Company believes these non-GAAP measures provide investors, potential investors, securities analysts, and others with useful supplemental information to evaluate the performance of the business because such measures, when viewed together with our financial results computed in accordance with GAAP, provide a more complete understanding of the factors and trends affecting our historical financial performance and projected future results.
In many cases, our non-GAAP measures are determined by adjusting the most directly comparable GAAP financial measure to exclude certain disclosed items (“non-GAAP adjustments”) that we believe are not representative of the underlying business performance.
For example, Air Products has executed its strategic plan to restructure the Company to focus on its core Industrial Gases business.
This resulted in significant cost reduction and asset actions that we believe are important for investors to understand separately from the performance of the underlying business.
The reader should be aware that we may incur similar expenses in the future.
The tax impact of our non-GAAP adjustments reflects the expected current and deferred income tax expense impact of the transactions and is impacted primarily by the statutory tax rate of the various relevant jurisdictions and the taxability of the adjustments in those jurisdictions.
Investors should also consider the limitations associated with these non-GAAP measures, including the potential lack of comparability of these measures from one company to another.


Company Stock Performance The following graph shows a five-year comparison of cumulative total shareholder return, calculated on a dividend reinvested basis, for the Company, the S&P 500 Composite Index, the S&P Computer Hardware Index, and the Dow Jones U. S.  Technology Index.
The graph assumes $100 was invested in each of the Company’s common stock, the S&P 500 Composite Index, the S&P Computer Hardware Index, and the Dow Jones U. S.  Technology Index on September 30, 2006.
Data points on the graph are annual.
Note that historic stock price performance is not necessarily indicative of future stock price performance.


| Twelve Months Ended December 31 | 2007  VAR | (Dollars in millions) | Foreign exchange | Interest rate | Credit | Real estate/mortgage | Equities | Commodities | Portfolio diversification | Total market-based trading portfolio-3 |


| Twelve Months Ended December 31, Change | 2018 vs. 2017 | Workforce Solutions | (In millions) | Operating Revenue: | Verification Services | Employer Services | Total operating revenue | % of consolidated revenue | Total operating income | Operating margin |


| At December 31, 2010(dollars in millions)Range of Maturities Currency Range of Interest Rates U.S. Dollar Carrying Value | 2011 - 2054 | 2011 - 2047 | 2011 - 2040 | 2011 - 2017 | 2014 | 2016 - 2017 | 2012 | 2011 - 2017 | 2013 | 2012 - 2017 | Total |


| For the Year Ended December 31, 2004 | Percentage | Gross-1 | (In millions) | Life insurance | Accident and health | Property and casualty | Total consolidated |


| Amount (In Thousands) | 2018 | 2019 | 2020 | 2021 | 2022 |


Income Taxes Deferred income taxes are provided for revenue and expenses which are recognized in different periods for income tax and financial statement reporting purposes.
At December 31, 2015, the cumulative amount of undistributed earnings of foreign affiliated companies was approximately $3,699.
Deferred income taxes are not provided on undistributed earnings of foreign affiliated companies as it is the Company’s intention to reinvest these earnings permanently outside the U. S.  It is not practicable to estimate the amount of tax that might be payable if undistributed earnings were to be repatriated as there is a significant amount of uncertainty with respect to the tax impact of the remittance of these earnings due to the fact that dividends received from numerous foreign subsidiaries may generate additional foreign tax credits, which could ultimately reduce the U. S.  tax cost of the dividend.
These uncertainties are further complicated by the significant number of foreign tax jurisdictions and entities involved.
Deferred tax assets are regularly assessed for recoverability based on both historical and anticipated earnings levels and a valuation allowance is recorded when it is more likely than not that these amounts will not be recovered.
The tax effects of an uncertain tax position taken or expected to be taken in income tax returns are recognized only if it is “more likely than not” to be sustained on examination by the taxing authorities,
Entergy Corporation and Subsidiaries Management’s Financial Discussion and Analysis ($66 million net-of-tax) as a result of customer credits to be realized by electric customers of Entergy Louisiana, consistent with the terms of the stipulated settlement in the business combination proceeding.
See Note 2 to the financial statements for further discussion of the business combination and customer credits.
Results of operations for 2015 also include the sale in December 2015 of the 583 MW Rhode Island State Energy Center for a realized gain of $154 million ($100 million net-of-tax) on the sale and the $77 million ($47 million net-of-tax) write-off and regulatory charges to recognize that a portion of the assets associated with the Waterford 3 replacement steam generator project is no longer probable of recovery.
See Note 14 to the financial statements for further discussion of the Rhode Island State Energy Center sale.
See Note 2 to the financial statements for further discussion of the Waterford 3 replacement steam generator prudence review proceeding.


| Year Ended December 31, 2012 2011 2010 | Issuances of debt | Payments of debt | Issuances of stock | Purchases of stock for treasury | Dividends | Other financing activities | Net cash provided by (used in) financing activities |


Segment Expenses.
Commission and brokerage decreased 1.4% to $295.9 million in 2013 compared to $300.1 million in 2012.
This decrease was primarily due to the shift in the mix of business towards property catastrophe and excess of loss business, which have lower commission rates, partially offset by the impact of the increase in premiums earned.
Segment other underwriting expenses increased to $33.9 million in 2013 compared to $29.3 million in 2012.
These increases relate to higher compensation expenses.
Commission and brokerage decreased 3.5% to $300.1 million in 2012 compared to $311.0 million in 2011.
This is consistent with the reduction in earned premium and a shift in the mix of business towards property catastrophe and excess of loss business which have lower commission rates.
Segment other underwriting expenses increased to $29.3 million in 2012 compared to $27.3 million for the same period in 2011.
The increase relates to higher personnel benefit costs


Part I Item 1.  Business.
General Development of Business General: Altria Group, Inc.  is a holding company incorporated in the Commonwealth of Virginia in 1985.
At December 31, 2014, Altria Group, Inc. s wholly-owned subsidiaries included Philip Morris USA Inc.  (PM USA), which is engaged predominantly in the manufacture and sale of cigarettes in the United States; John Middleton Co.  (Middleton), which is engaged in the manufacture and sale of machine-made large cigars and pipe tobacco, and is a whollyowned subsidiary of PM USA; and UST LLC (UST), which through its wholly-owned subsidiaries, including U. S.  Smokeless Tobacco Company LLC (USSTC) and Ste.
Michelle Wine Estates Ltd.  (Ste.
Michelle), is engaged in the manufacture and sale of smokeless tobacco products and wine.
Altria Group, Inc. s other operating companies included Nu Mark LLC (Nu Mark), a wholly-owned subsidiary that is engaged in the manufacture and sale of innovative tobacco products, and Philip Morris Capital Corporation (PMCC), a wholly-owned subsidiary that maintains a portfolio of finance assets, substantially all of which are leveraged leases.
Other Altria Group, Inc.  wholly-owned subsidiaries included Altria Group Distribution Company, which provides sales, distribution and consumer engagement services to certain Altria Group, Inc.  operating subsidiaries, and Altria Client Services Inc. , which provides various support services, such as legal, regulatory, finance, human resources and external affairs, to Altria Group, Inc.  and its subsidiaries.
At December 31, 2014, Altria Group, Inc.  also held approximately 27% of the economic and voting interest of SABMiller plc (SABMiller), which Altria Group, Inc.  accounts for under the equity method of accounting.
Source of Funds: Because Altria Group, Inc.  is a holding company, its access to the operating cash flows of its whollyowned subsidiaries consists of cash received from the payment of dividends and distributions, and the payment of interest on intercompany loans by its subsidiaries.
At December 31, 2014, Altria Group, Inc. s principal wholly-owned subsidiaries were not limited by long-term debt or other agreements in their ability to pay cash dividends or make other distributions with respect to their equity interests.
In addition, Altria Group, Inc.  receives cash dividends on its interest in SABMiller if and when SABMiller pays such dividends.
Financial Information About Segments Altria Group, Inc. s reportable segments are smokeable products, smokeless products and wine.
The financial services and the innovative tobacco products businesses are included in an all other category due to the continued reduction of the lease portfolio of PMCC and the relative financial contribution of Altria Group, Inc. s innovative tobacco products businesses to Altria Group, Inc. s consolidated results.
Altria Group, Inc. s chief operating decision maker reviews operating companies income to evaluate the performance of, and allocate resources to, the segments.
Operating companies income for the segments is defined as operating income before amortization of intangibles and general corporate expenses.
Interest and other debt expense, net, and provision for income taxes are centrally managed at the corporate level and, accordingly, such items are not presented by segment since they are excluded from the measure of segment profitability reviewed by Altria Group, Inc. s chief operating decision maker.
Net revenues and operating companies income (together with a reconciliation to earnings before income taxes) attributable to each such segment for each of the last three years are set forth in Note 15.
Segment Reporting to the consolidated financial statements in Item 8.
Financial Statements and Supplementary Data of this Annual Report on Form 10-K (Item 8).
Information about total assets by segment is not disclosed because such information is not reported to or used by Altria Group, Inc. s chief operating decision maker.
Segment goodwill and other intangible assets, net, are disclosed in Note 4.
Goodwill and Other Intangible Assets, net to the consolidated financial statements in Item 8 (Note 4).
The accounting policies of the segments are the same as those described in Note 2.
Summary of Significant Accounting Policies to the consolidated financial statements in Item 8 (Note 2).
The relative percentages of operating companies income (loss) attributable to each reportable segment and the all other category were as follows:


Merger and Integration Related Expenses There were no merger or integration related expenses for the year ended December 31, 2015, as these expenses related primarily to severance, legal, professional, temporary systems, staffing, and facilities costs incurred for the acquisition and integration of Colonial.
For the year ended December 31, 2014, merger and integration related expenses were approximately $3.2 million and $8.4 million, respectively.


Services and Support Cost of services and support revenue is primarily comprised of employee-related costs and associated costs incurred to provide consulting services, training and product support.
Cost of services and support revenue increased during fiscal 2014 as compared to fiscal 2013 primarily due to increases in compensation and related benefits driven by additional headcount and third-party fees related to training and consulting services provided to our customers.
Cost of services and support revenue increased during fiscal 2013 as compared to fiscal 2012 primarily due to increases in third-party fees related to training and consulting services provided to our customers and compensation and related benefits driven by additional headcount, including headcount from our acquisition of Neolane in fiscal 2013.


Note 5: Allowance for Uncollectible Accounts The following table summarizes the changes in the Companys allowances for uncollectible accounts for the years ended December 31:
MetLife, Inc.  Notes to the Consolidated Financial Statements  (Continued) Credit Risk on Freestanding Derivatives The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments.
Generally, the current credit exposure of the Companys derivative contracts is limited to the net positive estimated fair value of derivative contracts at the reporting date after taking into consideration the existence of netting agreements and any collateral received pursuant to credit support annexes.
The Company manages its credit risk related to over-the-counter derivatives by entering into transactions with creditworthy counterparties, maintaining collateral arrangements and through the use of master agreements that provide for a single net payment to be made by one counterparty to another at each due date and upon termination.
Because exchange-traded futures are effected through regulated exchanges, and positions are marked to market on a daily basis, the Company has minimal exposure to credit-related losses in the event of nonperformance by counterparties to such derivative instruments.
See Note 1 for a description of the impact of credit risk on the valuation of derivative instruments.
The Company enters into various collateral arrangements, which require both the pledging and accepting of collateral in connection with its derivative instruments.
At December 31, 2009 and 2008, the Company was obligated to return cash collateral under its control of $2,680 million and $7,758 million, respectively.
This unrestricted cash collateral is included in cash and cash equivalents or in short-term investments and the obligation to return it is included in payables for collateral under securities loaned and other transactions in the consolidated balance sheets.
At December 31, 2009 and 2008, the Company had also accepted collateral consisting of various securities with a fair market value of $221 million and $1,249 million, respectively, which are held in separate custodial accounts.
The Company is permitted by contract to sell or repledge this collateral, but at December 31, 2009, none of the collateral had been sold or repledged.
The Companys collateral arrangements for its over-the-counter derivatives generally require the counterparty in a net liability position, after considering the effect of netting agreements, to pledge collateral when the fair value of that counterpartys derivatives reaches a predetermined threshold.
Certain of these arrangements also include credit-contingent provisions that provide for a reduction of these thresholds (on a sliding scale that converges toward zero) in the event of downgrades in the credit ratings of the Company and/or the counterparty.
In addition, certain of the Companys netting agreements for derivative instruments contain provisions that require the Company to maintain a specific investment grade credit rating from at least one of the major credit rating agencies.
If the Companys credit ratings were to fall below that specific investment grade credit rating, it would be in violation of these provisions, and the counterparties to the derivative instruments could request immediate payment or demand immediate and ongoing full overnight collateralization on derivative instruments that are in a net liability position after considering the effect of netting agreements.
The following table presents the estimated fair value of the Companys over-the-counter derivatives that are in a net liability position after considering the effect of netting agreements, together with the estimated fair value and balance sheet location of the collateral pledged.
The table also presents the incremental collateral that the Company would be required to provide if there was a one notch downgrade in the Companys credit rating at the reporting date or if the Companys credit rating sustained a downgrade to a level that triggered full overnight collateralization or termination of the derivative position at the reporting date.
Derivatives that are not subject to collateral agreements are not included in the scope of this table.


Threadneedle Equity Incentive Plan Prior to 2012, certain key Threadneedle employees were eligible for awards under the EIP based on a formula tied to Threadneedle’s financial performance.
Awards under the EIP were first made in April 2009; prior awards were made under the equity participation plan (‘‘EPP’’).
In 2011, Threadneedle’s articles of incorporation were amended to create a new class of Threadneedle corporate units to be granted under a modified EIP plan.
Employees who held EIP units granted prior to 2011 were given the choice to exchange their existing units at the exchange date.
EIP awards may be settled in cash or Threadneedle corporate units according to the award’s terms.
For awards granted prior to 2011, the EIP provides for 100% vesting after three years, with a mandatory call after six years.
For converted units and awards granted after February 2011, the EIP provides for 100% vesting after two and a half years, with no mandatory call date.
Converted units and units granted after February 2011 have dividend rights once fully vested.
The EPP provides for 50% vesting after three years and 50% vesting after four years, with required cash-out after five years.
EIP and EPP awards are subject to forfeitures based on future service requirements.
The EIP awards were no longer awarded after 2012 and instead Threadneedle employees received awards under the 2005 ICP.
The value of the EPP and EIP awards is recognized as compensation expense evenly over the vesting periods.
Generally, the expense is based on the grant date fair value of the awards as determined by an annual independent valuation of Threadneedle’s fair market value; however, for awards accounted for as a liability the expense is adjusted to reflect Threadneedle’s current calculated value (the change in the value of the awards is recognized immediately for vested awards and over the remaining vesting period for unvested awards).
During the years ended December 31, 2014, 2013 and 2012, cash settlements of EPP and EIP awards were $28 million, $23 million and $31 million, respectively.


| Credit valuation adjustment contra-liability (contra-asset) | December 31, | In millions of dollars | Non-monoline counterparties | Citigroup (own) | Net non-monoline CVA | Monoline counterparties-1 | Total CVA—derivative instruments |


VISA INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) September 30, 2009 (in millions, except as noted) common stock outstanding on an as-converted basis, this funding had the effect of a repurchase by the Company of the equivalent of 20,800,824 class A shares.
The repurchase amount per share of $52.88 was calculated using the volume-weighted average price of the Company’s class A shares for the 15-trading day period from December 1, 2008, to December 19, 2008 in accordance with the Fifth Amended and Restated Certificate of Incorporation of Visa Inc.  On July 16, 2009, the Company funded the Escrow Account with an additional $700 million, which reduced the conversion rate applicable to Visa’s class B common stock from 0.6296 class A share per class B share to 0.5824 class A share per class B share.
With respect to the number of shares of class A common stock outstanding on an as-converted basis, this funding had the effect of a repurchase by the Company of the equivalent of 11,578,878 class A shares.
The repurchase amount per share of $60.45 was calculated using the volume weighted average price of the Company’s class A shares for the 11-trading day pricing period from June 30, 2009 to July 15, 2009 in accordance with the Fifth Amended and Restated Certificate of Incorporation of Visa Inc.  After giving effect to the fiscal 2009 escrow fundings and the corresponding reduction in the conversion rate applicable to class B common stock outstanding, the number of class A shares outstanding on an as-converted basis is as follows:


Note 18.
Colombian Investment and Cooperation Agreement:On June 19, 2009, PMI announced that it had signed an agreement with the Republic of Colombia, together with the Departments of Colombia and the Capital District of Bogota, to promote investment and cooperation with respect to the Colombian tobacco market and to fight counterfeit and contraband tobacco products.
The Investment and Cooperation Agreement provides $200 million in funding to the Colombian governments over a 20-year period to address issues of mutual interest, such as combating the illegal cigarette trade, including the threat of counterfeit tobacco products, and increasing the quality and quantity of locally grown tobacco.
As a result of the Investment and Cooperation Agreement, PMI recorded a pre-tax charge of $135 million in the operating results of the Latin America & Canada segment during the second quarter of 2009.
At December 31, 2014 and 2013, PMI had $71 million and $74 million, respectively, of discounted liabilities associated with the Colombian Investment and Cooperation Agreement.
These discounted liabilities are primarily reflected in other long-term liabilities on the consolidated balance sheets and are expected to be paid through 2028.


Proved Oil and Natural Gas Reserve Information.
The following information summarizes the net proved reserves of oil (including condensate and natural gas liquids (NGLs)) and natural gas and the standardized measure as described below.
All of the oil and natural gas reserves are located in the U. S.  Management believes the reserve estimates presented herein, in accordance with generally accepted engineering and evaluation principles consistently applied, are reasonable.
However, there are numerous uncertainties inherent in estimating quantities and values of proved reserves and in projecting future rates of production and the amount and timing of development expenditures, including many factors beyond FCX’s control.
Reserve engineering is a subjective process of estimating the recovery from underground accumulations of oil and natural gas that cannot be measured in an exact manner, and the accuracy of any reserve estimate is a function of the quality of available data and of engineering and geological interpretation and judgment.
Because all oil and natural gas reserve estimates are to some degree subjective, the quantities of oil and natural gas that are
The following table details the growth in global weighted average berths and the global, North American, European and Asia/Pacific cruise guests over the past five years (in thousands, except berth data):


| Reserves(billions of tons) Number of Aggregates Operating Facilities1 | Stone | By Division: | Florida Rock | Mideast | Midsouth | Midwest | Southeast | Southern and Gulf Coast | Southwest | Western | Total |


| For the Years Ended December 31, | (In millions) | Net capital expenditures | Acquisitions | Other investing activities, net(a) | Net cash flows used in investing activities | Argentina | Australia | Belgium | Brazil | Canada | Chile | China | Colombia | Costa Rica | Czech Republic |


Input costs for board and resin are expected to be flat and operating costs are expected to decrease.
European Consumer Packaging net sales in 2013 were $380 million compared with $380 million in 2012 and $375 million in 2011.
Operating profits in 2013 were $100 million compared with $99 million in 2012 and $93 million in 2011.
Sales volumes in 2013 decreased from 2012 in both the European and Russian markets.
Average sales price realizations were significantly higher in the Russian market, but were lower in Europe.
Input costs were flat year-over-year.
Planned maintenance downtime costs were higher in 2013 than in 2012.
Looking forward to the first quarter of 2014, sales volumes compared with the fourth quarter of 2013 are expected to be about flat.
Average sales price realizations are expected to be higher in both Russia and Europe.
Input costs are expected to increase for wood and energy, but decrease for purchased pulp.
There are no maintenance outages scheduled for the first quarter, however the Kwidzyn mill will have additional costs associated with the rebuild of a coated board machine.
Asian Consumer Packaging net sales were $1.1 billion in 2013 compared with $830 million in 2012 and $855 million in 2011.
Operating profits in 2013 were a loss of $2 million compared with gains of $4 million in 2012 and $35 million in 2011.
Sales volumes increased in 2013 compared with 2012, reflecting the ramp-up of a new coated paperboard machine installed in 2012.
However, average sales price realizations were significantly lower, reflecting competitive pressure on sales prices which squeezed margins and created an unfavorable product mix.
Lower input costs were offset by higher freight costs.
In 2012, start-up costs for the new coated paperboard machine adversely impacted operating profits.
In the first quarter of 2014, sales volumes are expected to increase slightly.
Average sales price realizations are expected to be flat reflecting continuing competitive pressures.
Input costs are expected be higher for pulp, energy and chemicals.
The business will drive margin improvement through operational excellence and better mix.


LIQUIDITY AND CAPITAL RESOURCES Overview A major factor in International Papers liquidity and capital resource planning is its generation of operating cash flow, which is highly sensitive to changes in the pricing and demand for our major products.
While changes in key cash operating costs, such as energy and raw material costs, do have an effect on operating cash generation, we believe that our strong focus on cost controls has improved our cash flow generation over an operating cycle.
As part of the continuing focus on improving our return on investment, we have focused our capital spending on improving our key paper and packaging businesses both globally and in North America.
Spending levels have been kept below the level of depreciation and amortization charges for each of the last three years, and we anticipate spending will again be slightly below depreciation and amortization in 2007.  Financing activities in 2006 have been focused on the Transformation Plan objective of strengthening the balance sheet through repayment of debt, resulting in a net reduction in 2006 of $5.2 billion following a $1.7 billion net reduction in 2005.
Additionally, we made a $1.0 billion voluntary cash contribution to our U. S.  qualified pension plan in December 2006 to begin satisfying projected long-term funding requirements and to lower future pension expense.
Our liquidity position continues to be strong, with approximately $3.0 billion of committed liquidity to cover future short-term cash flow requirements not met by operating cash flows.
Management believes it is important for International Paper to maintain an investment-grade credit rating to facilitate access to capital markets on favorable terms.
At December 31, 2006, the Company held long-term credit ratings of BBB (stable outlook) and Baa3 (stable outlook) from Standard & Poors and Moodys Investor Services, respectively.
Cash Provided by Operations Cash provided by continuing operations totaled $1.0 billion for 2006, compared with $1.2 billion for 2005 and $1.7 billion in 2004.
The 2006 amount is net of a $1.0 billion voluntary cash pension plan contribution made in the fourth quarter of 2006.
The major components of cash provided by continuing operations are earnings from continuing operations


| Guarantee Type 0 – 3 years 4 – 10 years > 10 years Total | (Millions of Dollars) | NY Transco | Energy transactions | Renewable electric production projects | Other | Total |


Global Investment Management Revenue decreased by $90.9 million, or 19.7%, for the year ended December 31, 2016 as compared to the year ended December 31, 2015.
This decrease was primarily driven by lower carried interest revenue as well as lower acquisition, asset management and incentive fees in the current year.
Foreign currency translation had an $11.8 million negative impact on total revenue during the year ended December 31, 2016 versus the same period in 2015, primarily driven by weakness in the British pound sterling.
Operating, administrative and other expenses decreased by $50.8 million, or 14.6%, for the year ended December 31, 2016 as compared to the same period in 2015, primarily driven by lower carried interest expense incurred in the current year.
Additionally, foreign currency had a net $5.0 million positive impact on total operating expenses during the year ended December 31, 2016, which included $2.7 million of unfavorable foreign currency transaction activity over the same period last year, much of which related to hedging activities, that was more than offset by a $7.7 million positive impact from foreign currency translation.
These decreases were partially offset by $19.8 million of additional costs in 2016 versus 2015 in connection with our costelimination project.


| Year Ended December 31, | 2009 | Average Variable Transaction Fee Per Million | U.S. high-grade | Eurobond | Other | Total |


At December 31, 2012, the gross reserves for A&E losses were comprised of $138,449 thousand representing case reserves reported by ceding companies, $90,637 thousand representing additional case reserves established by the Company on assumed reinsurance claims, $36,667 thousand representing case reserves established by the Company on direct excess insurance claims, including Mt.
McKinley, and $177,068 thousand representing IBNR reserves.
With respect to asbestos only, at December 31, 2012, the Company had gross asbestos loss reserves of $422,849 thousand, or 95.5%, of total A&E reserves, of which $339,654 thousand was for assumed business and $83,195 thousand was for direct business.
Future Policy Benefit Reserve.
Activity in the reserve for future policy benefits is summarized for the periods indicated:


Incurred losses increased by 52.8% to $1,632.8 million in 2017, compared to $1,068.5 million in 2016, primarily due to an increase of $581.6 million in current year catastrophe losses, partially offset by $39.1 million of more favorable development on prior years attritional losses in 2017 compared to 2016.
The $165.5 million of favorable development on prior years attritional losses in 2017 was mainly related to property and short tail business.
The $715.7 million of current year catastrophe losses in 2017 related to Hurricane Irma ($331.8 million), Hurricane Harvey ($204.3 million), the Northern California wildfires ($132.9 million), Hurricane Maria ($31.2 million), the Southern California wildfires ($9.6 million), and the 2017 US Midwest storms ($6.9 million).
The $134.1 million of current year catastrophe losses in 2016 related to Hurricane Matthew ($86.2 million), the 2016 U. S.  storms ($20.4 million), 2016 Tennessee wildfire ($14.7 million) and Hurricane Hermine ($13.5 million).


For further discussion of the company’s gas operating revenues and its gas results, see “Results of Operations” in Item 7.
For additional segment information, see Note N to the financial statements in Item 8.
Gas Peak Demand The gas peak demand for firm service customers in O&R’s service area occurs during the winter heating season.
The daily peak day demand during the winter 2010/2011 (through January 31, 2011) occurred on January 23, 2011 when the demand reached 176 mdths.
The 2010/2011 winter demand included an estimated 87 mdths for O&R’s full-service customers and 89 mdths for customers participating in its gas retail access program.
“Design weather” for the gas system is a standard to which the actual peak demand is adjusted for evaluation and planning purposes.
The company estimates that under design weather conditions the 2011/2012 service area peak demand will be 224 mdths, including an estimated 110 mdths for its full-service customers and 114 mdths for its retail access customers.
The company forecasts average annual growth of the peak gas demand over the next five years at design conditions to be approximately 1.6 percent in the company’s service area.
The forecasted peak demand at design conditions does not include gas used by interruptible gas customers or in generating stations.
The company continues to monitor the potential impact on customer demand from the current economic condition


ITEM 2.
PROPERTIES Flight Equipment and Fleet Renewal As of December 31, 2017, American operated a mainline fleet of 948 aircraft.
In 2017, we continued our extensive fleet renewal program, which has provided us with the youngest fleet of the major U. S.  network carriers.
During 2017, American took delivery of 57 new mainline aircraft and retired 39 mainline aircraft.
We are supported by our wholly-owned and third-party regional carriers that fly under capacity purchase agreements operating as American Eagle.
As of December 31, 2017, American Eagle operated 597 regional aircraft.
During 2017, we reduced our regional fleet by a net of nine aircraft, including the addition of 63 regional aircraft and retirement of 72 regional aircraft.
Mainline As of December 31, 2017, Americans mainline fleet consisted of the following aircraft:


| Year Ended December 31, | 2014 | (In thousands) | Cash provided by operating activities | Cash used in investing activities | Cash provided by financing activities | (Decrease) increase in cash and cash equivalents | Cash and cash equivalents, beginning of year | Cash and cash equivalents, end of year |


| Table 43 Commercial Real Estate Credit Quality Data December 31 | Nonperforming Loans andForeclosed Properties-1 | (Dollars in millions) | Non-homebuilder | Office | Multi-family rental | Shopping centers/retail | Industrial/warehouse | Multi-use | Hotels/motels | Land and land development | Other | Total non-homebuilder | Homebuilder | Total commercial real estate |


(1) Excludes our share of investments in unconsolidated entities and non-segment/corporate NOI.
Entities in which we have a joint venture with a minority partner are shown at 100% of the joint venture amount.
Business Strategy Our primary objectives are to protect stockholder capital and enhance stockholder value.
We seek to pay consistent cash dividends to stockholders and create opportunities to increase dividend payments to stockholders as a result of annual increases in net operating income and portfolio growth.
To meet these objectives, we invest across the full spectrum of seniors housing and health care real estate and diversify our investment portfolio by property type, relationship and geographic location.
Substantially all of our revenues are derived from operating lease rentals, resident fees and services, and interest earned on outstanding loans receivable.
These items represent our primary sources of liquidity to fund distributions and depend upon the continued ability of our obligors to make contractual rent and interest payments to us and the profitability of our operating properties.
To the extent that our customers/partners experience operating difficulties and become unable to generate sufficient cash to make payments to us, there could be a material adverse impact on our consolidated results of operations, liquidity and/or financial condition.
To mitigate this risk, we monitor our investments through a variety of methods determined by the type of property.
Our proactive and comprehensive asset management process for seniors housing properties generally includes review of monthly financial statements and other operating data for each property, review of obligor/ partner creditworthiness, property inspections, and review of covenant compliance relating to licensure, real estate taxes, letters of credit and other collateral.
Our internal property management division actively manages and monitors the outpatient medical portfolio with a comprehensive process including review of tenant relations, lease expirations, the mix of health service providers, hospital/health system relationships, property performance,


| Year ended December 31 | In millions, except  per share data | Net income | Diluted earnings per share | Return on | Average common shareholders’ equity | Average assets |


Although our revenues are principally derived from customers domiciled in the U. S. , the ultimate points of origination or destination for some products transported by us are outside the U. S.  Each of our commodity groups includes revenue from shipments to and from Mexico.
Included in the above table are revenues from our Mexico business which amounted to $2.3 billion in 2014, $2.1 billion in 2013, and $1.9 billion in 2012.
Basis of Presentation – The Consolidated Financial Statements are presented in accordance with accounting principles generally accepted in the U. S.  (GAAP) as codified in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC).2.
Significant Accounting Policies Principles of Consolidation – The Consolidated Financial Statements include the accounts of Union Pacific Corporation and all of its subsidiaries.
Investments in affiliated companies (20% to 50% owned) are accounted for using the equity method of accounting.
All intercompany transactions are eliminated.
We currently have no less than majority-owned investments that require consolidation under variable interest entity requirements.
Cash and Cash Equivalents – Cash equivalents consist of investments with original maturities of three months or less.
Accounts Receivable – Accounts receivable includes receivables reduced by an allowance for doubtful accounts.
The allowance is based upon historical losses, credit worthiness of customers, and current economic conditions.
Receivables not expected to be collected in one year and the associated allowances are classified as other assets in our Consolidated Statements of Financial Position.


| (Amounts in millions, except per share amounts) 2005 2004 2003 | Numerator: | Net income | Denominator: | Denominator for weighted average commonshares outstanding — basic | Dilution associated with the Company’sstock-based compensation plans | Denominator for weighted average commonshares outstanding — diluted | Earnings per share — basic | Earnings per share — diluted | Business Segment | Industrial | Safety and Graphics | Health Care | Electronics and Energy | Consumer | Net Sales | (Millions) | Industrial | Safety and Graphics | Health Care | Electronics and Energy | Consumer | Corporate and Unallocated | Elimination of Dual Credit | Total Company | Assets | (Millions) | Industrial | Safety and Graphics | Health Care | Electronics and Energy | Consumer | Corporate and Unallocated | Total Company | 2015 | Statutory U.S. tax rate | State income taxes - net of federal benefit | International income taxes - net | U.S. research and development credit | Reserves for tax contingencies | Domestic Manufacturer’s deduction | All other - net | Effective worldwide tax rate |


| December 31, 2008 December 31, 2007 | Assets | (Thousands of dollars) | Energy Services - financial non-trading instruments: | Natural gas | Exchange-traded instruments | Over-the-counter swaps | Options | Other (a) | 144,243 | Energy Services - financial trading instruments: | Natural gas | Exchange-traded instruments | Over-the-counter swaps | Options | Other (a) | 27,561 | ONEOK Partners - cash flow hedges | Distribution - natural gas swaps | Energy Services - cash flow hedges | Energy Services - fair value hedges | Interest rate swaps - fair value hedges | Total fair value | (a) - Other includes physical natural gas. |


THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements Investments in Funds at Net Asset Value Per Share Cash instruments at fair value include investments in funds that are measured at NAV of the investment fund.
The firm uses NAV to measure the fair value of its fund investments when (i) the fund investment does not have a readily determinable fair value and (ii) the NAV of the investment fund is calculated in a manner consistent with the measurement principles of investment company accounting, including measurement of the investments at fair value.
Substantially all of the firms investments in funds at NAV consist of investments in firm-sponsored private equity, credit, real estate and hedge funds where the firm co-invests with third-party investors.
Private equity funds primarily invest in a broad range of industries worldwide, including leveraged buyouts, recapitalizations, growth investments and distressed investments.
Credit funds generally invest in loans and other fixed income instruments and are focused on providing private high-yield capital for leveraged and management buyout transactions, recapitalizations, financings, refinancings, acquisitions and restructurings for private equity firms, private family companies and corporate issuers.
Real estate funds invest globally, primarily in real estate companies, loan portfolios, debt recapitalizations and property.
Private equity, credit and real estate funds are closed-end funds in which the firms investments are generally not eligible for redemption.
Distributions will be received from these funds as the underlying assets are liquidated or distributed.
The firm also invests in hedge funds, primarily multidisciplinary hedge funds that employ a fundamental bottom-up investment approach across various asset classes and strategies.
The firms investments in hedge funds primarily include interests where the underlying assets are illiquid in nature, and proceeds from redemptions will not be received until the underlying assets are liquidated or distributed.
Many of the funds described above are covered funds as defined in the Volcker Rule of the U. S.  Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
The Board of Governors of the Federal Reserve System (Federal Reserve Board or FRB) extended the conformance period to July 2022 for the firms investments in, and relationships with, certain legacy illiquid funds (as defined in the Volcker Rule) that were in place prior to December 2013.
This extension is applicable to substantially all of the firms remaining investments in, and relationships with, covered funds in the table below.
The table below presents the fair value of the firms investments in funds at NAV and related unfunded commitments.


Xcel Energy depends on its subsidiaries to pay dividends.
All of Xcel Energy Inc. s utility subsidiaries dividends are subject to the FERCs jurisdiction under the Federal Power Act, which prohibits the payment of dividends out of capital accounts; payment of dividends is allowed out of retained earnings only.
Due to certain restrictive covenants, Xcel Energy Inc.  is required to be current on particular interest payments before dividends can be paid.
As discussed below, the most restrictive dividend limitations for NSP-Minnesota, NSP-Wisconsin and SPS are imposed by their respective state regulatory commission.
PSCos dividends are subject to the FERCs jurisdiction under the Federal Power Act, which prohibits the payment of dividends out of capital accounts; payment of dividends is allowed out of retained earnings only.
Only NSP-Minnesota has a first mortgage indenture which places certain restrictions on the amount of cash dividends it can pay to Xcel Energy Inc. , the holder of its common stock.
Even with this restriction, NSP-Minnesota could have paid more than $1.4 billion and $1.3 billion in additional cash dividends to Xcel Energy Inc.  at Dec.  31, 2013 and 2012, respectively.
NSP-Minnesotas state regulatory commissions indirectly limit the amount of dividends NSP-Minnesota can pay by requiring an equity-to-total capitalization ratio between 46.8 percent and 57.2 percent.
NSP-Minnesotas equity-to-total capitalization ratio was 52.5 percent at Dec.  31, 2013 and $912 million in retained earnings was not restricted.
Total capitalization for NSP-Minnesota was $8.5 billion at Dec.  31, 2013, which did not exceed the limit of $9.0 billion.
NSP-Wisconsin cannot pay annual dividends in excess of approximately $31.2 million if its calendar year average equity-to-total capitalization ratio is or falls below the state commission authorized level of 52.5 percent, as calculated consistent with PSCW requirements.
NSP-Wisconsins calendar year average equity-to-total capitalization ratio calculated on this basis was 52.8 percent at Dec.  31, 2013 and $17.1 million in retained earnings was not restricted.
SPS state regulatory commissions indirectly limit the amount of dividends that SPS can pay Xcel Energy Inc.  by requiring an equityto-total capitalization ratio (excluding short-term debt) between 45.0 percent and 55.0 percent.
In addition, SPS may not pay a dividend that would cause it to lose its investment grade bond rating.
SPS equity-to-total capitalization ratio (excluding short-term debt) was 53.2 percent at Dec.  31, 2013 and $359 million in retained earnings was not restricted.
The issuance of securities by Xcel Energy Inc.  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 an additional $1 billion of long-term debt and up to $800 million of short-term debt.  ?
SPS currently has no authorization to issue any long-term debt in 2014 and up to $400 million of short-term debt.  ?
NSP-Wisconsin currently has authorization to issue up to an additional $150 million of long-term debt and up to $150 million of short-term debt.  ?
NSP-Minnesota has authorization to issue long-term securities provided the equity-to-total capitalization ratio remains between 46.8 percent and 57.2 percent and to issue short-term debt provided it does not exceed 15 percent of total capitalization.
Total capitalization for NSP-Minnesota cannot exceed $9 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.5.
Joint Ownership of Generation, Transmission and Gas Facilities Following are the investments by Xcel Energy Inc. s utility subsidiaries in jointly owned generation, transmission and gas facilities and the related ownership percentages as of Dec.  31, 2013:


Redeemable Non-controlling interest.
Through some of our subsidiaries, we assume certain non-controlling interests that carry redemption features.
Non-controlling interests, where we may be required to repurchase the non-controlling interest under a put option or other contractual redemption requirement, are reported in the Consolidated Balance Sheet between liabilities and equity, as redeemable non-controlling interest.
We adjust the redeemable non-controlling interests when the redemption value exceeds the carrying value with changes recognized as an adjustment to additional paid-in capital.
Overall, we believe that we have considered relevant circumstances that we may be currently subject to, and the financial statements accurately reflect our best estimate of the impact of these items in our results of


| PAYMENTS DUE BY PERIOD | As of December 31, 2011 (In millions) | Long-term debt-1 | Operating leases | Capital lease obligations | Total contractual cash obligations |


| December 31, (in millions) 2015 2014 | Residential real estate – excluding PCI | Home equity: | Senior lien | Junior lien | Mortgages: | Prime, including option ARMs | Subprime | Other consumer loans | Auto | Business banking | Student and other | Residential real estate – PCI | Home equity | Prime mortgage | Subprime mortgage | Option ARMs | Total retained loans |


| Year Ended December | in millions | Currency hedges | Foreign currency-denominated debt hedges |


Effective January 1, 2006, we will adopt 123R using the modified prospective approach.
The modified prospective approach requires the recognition of compensation cost for share-based awards based on the grantdate fair value from the beginning for the fiscal period in which the provisions of 123R are first applied.
Measurement and recognition of compensation costs for share-based awards granted prior to, but not yet vested as of, the date 123R is adopted are based on the same method used previously under SFAS 123.
Share-based awards granted, modified, or settled after 123R is adopted, will be measured and recognized in the financial statements in accordance with the provisions of 123R.
We have used the Black-Scholes model to calculate the fair value of options under 123 and intend to continue to utilize this model to compute the fair value of options under 123R.
Upon the adoption of 123R, we expect to recognize a cumulative effect of change in accounting principle which will increase net income by approximately $2 million.
This cumulative effect is related to certain performance shares issued to certain officers and employees in 2002 and 2003 that were required to be adjusted to fair value at each reporting date under APB No.25, because the ultimate number of these shares that will vest is dependent on the achievement of certain performance targets.
Under 123R, these performance awards are accounted for based on their grant-date fair value and are not adjusted to fair value at each reporting date.
While there are certain differences between 123 and 123R, we believe that our pro forma disclosures under 123 approximate the effect of 123R.
Other than the cumulative effect of adoption discussed above, we do not believe that the adoption of 123R will have a material impact on our financial position or results of operations.


| Year Ended December 31, 2009 | (In millions) | Balance, beginning of period | Total realized/unrealized gains (losses) included in: | Earnings | Other comprehensive income (loss) | Purchases, sales, issuances and settlements | Transfer in and/or out of Level 3 | Balance, end of period |


News UK Revenues were $1,281 million for the fiscal year ended June 30, 2016, a decrease of $142 million, or 10%, as compared to fiscal 2016 revenues of $1,423 million.
The impact of foreign currency fluctuations of the U. S.  dollar against the British pound resulted in a revenue decrease of $80 million, or 6%, for the fiscal year ended June 30, 2016 as compared to fiscal 2015.
Advertising revenues decreased $63 million, primarily due to the $52 million impact from print market declines and the $25 million negative impact of foreign currency fluctuations.
Circulation and subscription revenues decreased $41 million due to the $42 million negative impact of foreign currency fluctuations.
Lower revenues of $55 million resulting from single-copy volume declines, primarily at The Sun, and changes in the digital strategy at The Sun, were offset by the $53 million impact from cover price increases, higher subscriptions at The Times and The Sunday Times and the 53rd week.
Other revenues decreased $38 million due to a reduction in newsprint sales to third parties.


| (dollars in millions) 2018 2019 2020 2021 2022 Thereafter Total | Long-term debt -1: | Principal | Interest -2 | Capital leases -3 | Operating leases -4 |


| Increase of 1% in the discount rate $-48 | Decrease of 1% in the discount rate | Increase of 1% in the long-term rate of return on plan assets | Decrease of 1% in the long-term rate of return on plan assets |


| Venture Kimco Ownership Interest Number of Properties Total GLA (in thousands) Non- Recourse Mortgage Payable (in millions) Number of Encumbered Properties Average Interest Rate Weighted Average Term (months) | KimPru (a) | RioCan Venture (b) | KIR (c) | BIG Shopping Centers (d) | Kimstone (e)(g) | CPP (f) |


Table of Contents Part II, Item 8 In the fourth quarter of 2003, Schlumberger sold the subordinated note for $177 million and realized a pretax gain of $32 million ($20 million after-tax).
At December 31, 2003 the carrying value of Schlumbergers investment in Hanover Compressor common stock exceeded the market value.
As required by generally accepted accounting principles (SFAS 115), Schlumberger wrote down its investment to the fair market value of $91.4 million at December 31, 2003 and recorded a pretax and after-tax charge of $81.2 million.
As part of the sale agreement, Hanover Compressor had an option to put its interest in the PIGAP II joint venture in Venezuela back to Schlumberger if certain financing conditions were not met.
Hanover Compressor did not exercise this option.4.
Charges  Continuing Operations Schlumberger recorded the following charges/credits in continuing operations: In December 2003, a pretax gain of $32 million ($20 million after-tax, $0.03 per share  diluted) resulting from the sale of the Hanover Compressor note.
The pretax gain is classified in Interest and other income in the Consolidated Statement of Income.
In December 2003, a pretax and after-tax charge of $81 million ($0.13 per share  diluted) relating to the write-down to fair market value of Schlumbergers investment in Hanover Compressor common stock.
The write-down was required by SFAS 115 as the decline in the market value of the stock is other than temporary and is classified in Cost of goods sold and services in the Consolidated Statement of Income.
In September 2003, a pretax multiclient library impairment charge of $398 million ($205 million, $0.34 per share  diluted, after a tax credit of $106 million and a minority interest of $88 million), following an evaluation of current and expected future conditions in the seismic sector, a pretax seismic vessel impairment charge of $54 million ($38 million, $0.06 per share  diluted, after a minority interest credit of $16 million) and a $31 million pretax and after-tax gain ($0.05 per share  diluted) on the sale of a drilling rig.
The pretax amounts are classified in Cost of goods sold and services in the Consolidated Statement of Income.
Between June 12 and July 22, 2003 subsidiaries of Schlumberger launched and concluded tender offers to acquire three series of outstanding European bonds; $1.3 billion of principal was repurchased for a total cost of $1.5 billion, which included the premium, and issuing and tender costs.
The total charge on the tenders was $168 million, of which $81.5 million was recorded in the second quarter of 2003, when the first tender closed, with the balance of $86.3 million recorded in the third quarter of 2003.
The total of the above 2003 charges was $440 million.
A summary is as follows:


Corporate & Institutional Banking Corporate & Institutional Banking earned $1.9 billion in 2011 and $1.8 billion in 2010.
The increase in earnings was primarily due to an improvement in the provision for credit losses, which was a benefit in 2011, partially offset by a reduction in the value of commercial mortgage servicing rights and lower net interest income.
We continued to focus on adding new clients, increasing cross sales, and remaining committed to strong expense discipline.


| December 31, | 2011 | (In millions) | FHLB of New York (“FHLB of NY”) | FHLB of Boston | FHLB of Des Moines | Liability | December 31, | 2011 | (In millions) | FHLB of NY -1 | Farmer Mac -3 | FHLB of Boston -1 | FHLB of Des Moines -1 |


(a) Excludes impact of merger-related gains and expenses and net securities transactions.
(b) Excludes amortization and balances related to goodwill and core deposit and other intangible assets and merger-related gains and expenses which, except in the calculation of the efficiency ratio, are net of applicable income tax effects.
A reconciliation of net income and net operating income appears in Table 24.
(c) The difference between total assets and total tangible assets, and common shareholders equity and tangible common shareholders equity, represents goodwill, core deposit and other intangible assets, net of applicable deferred tax balances.
A reconciliation of such balances appears in Table 24.
higher level of resell agreements in 2010 as compared with 2009 and 2008 was due, in part, to the need to fulfill collateral requirements associated with certain municipal deposits.
Agreements to resell securities, of which there were none outstanding at the 2010 and 2009 year-ends, are accounted for similar to collateralized loans, with changes in market value of the collateral monitored by the Company to ensure sufficient coverage.
The amounts of investment securities and other earning assets held by the Company are influenced by such factors as demand for loans, which generally yield more than investment securities and other earning assets, ongoing repayments, the levels of deposits, and management of balance sheet size and resulting capital ratios.
The most significant source of funding for the Company is core deposits.
During 2010 and prior years, the Company considered noninterest-bearing deposits, interest-bearing transaction accounts, savings deposits and domestic time deposits under $100,000 as core deposits.
The Companys branch network is its principal source of core deposits, which generally carry lower interest rates than wholesale funds of comparable maturities.
Certificates of deposit under $100,000 generated on a nationwide basis by M&T Bank, N. A.  were also included in core deposits.
Average core deposits totaled $43.6 billion in 2010, up from $39.1 billion in 2009 and $31.7 billion in 2008.
The K Bank acquisition transaction added $491 million of core deposits on November 5, 2010, while the acquisition transactions in 2009 added $3.8 billion of core deposits on the respective acquisition dates.
Average core deposits of M&T Bank, N. A.  were $217 million in 2010, $337 million in 2009 and $274 million in 2008.
Excluding deposits obtained in the acquisition transactions, the growth in core deposits from 2008 to 2009 and from 2009 to 2010 was due, in part, to the lack of attractive alternative investments available to the Companys customers resulting from lower interest rates and from the economic environment in the U. S.  The low interest rate environment has resulted in a shift in customer savings trends, as average time deposits have continued to decline, while average noninterest-bearing deposits and savings deposits have increased.
Funding provided by core deposits represented 73% of average earning assets in 2010, compared with 66% and 55% in 2009 and 2008, respectively.
Table 8 summarizes average core deposits in 2010 and percentage changes in the components of such deposits over the past two years.
Table 8 AVERAGE CORE DEPOSITS


| At December 31, At December 31, | 2010 | ($ in millions) | Copper | Boddington | Batu Hijau | Total/Weighted Average |


| Options Outstanding Options Exercisable | Range ofExercise Prices | $3.36 — $9.99 | $10.00 — $15.06 | 2 | Options exercisable and expected to become exercisable |


Other Intangible Assets.
Intangible assets with indefinite useful lives are not amortized while intangible assets with finite useful lives are amortized generally on a straight-line basis over the periods benefited.
The following table details the weightedaverage useful lives of software and other intangible assets by reporting segment (numbers in years):


| Year Ended October 31, $ Change % Change $ Change % Change | 2014 | (dollars in millions) | $155.2 | Percentage of total revenue |


Income Tax Liabilities Tax liabilities related to unrecognized tax benefits as of 30 September 2018 were $233.6.
These tax liabilities were excluded from the Contractual Obligations table as it is impractical to determine a cash impact by year given that payments will vary according to changes in tax laws, tax rates, and our operating results.
In addition, there are uncertainties in timing of the effective settlement of our uncertain tax positions with respective taxing authorities.
However, the Contractual Obligations table above includes our accrued liability of approximately $184 for deemed repatriation tax that is payable over eight years related to the Tax Act.
Refer to Note 22, Income Taxes, to the consolidated financial statements for additional information.


| 2008 Utility Non-Utility Nuclear* All Other* Eliminations Consolidated | (In Thousands) | Operating revenues | Deprec., amort. & decomm. | Interest and dividend income | Equity in loss of unconsolidated equity affiliates | Interest and other charges | Income taxes (benefits) | Net income (loss) | Total assets | Investment in affiliates - at equity | Cash paid for long-lived asset additions | 2007 | (In Thousands) | Operating revenues | Deprec., amort. & decomm. | Interest and dividend income | Equity in earnings of unconsolidated equity affiliates | Interest and other charges | Income taxes (benefits) | Net income (loss) | Total assets | Investment in affiliates - at equity | Cash paid for long-lived asset additions | 2009 | (In Millions) | Planned construction and | capital investment | Long-term debt | Nuclear fuel lease obligations -1 | Purchase obligations -2 | 2009 | Non-Utility Nuclear: | Percent of planned generation sold forward: | Unit-contingent | Unit-contingent with guarantee of availability -1 | Total | Planned generation (TWh) | Average contracted price per MWh -2 |


2016 Asset Impairments While the Leviathan development project was not formally sanctioned at December 31, 2016, in fourth quarter 2016, we selected the initial development concept for the first phase of development of the Leviathan natural gas project and wrote off $88 million associated with certain development concepts that were not selected.2015 Asset Impairments During 2015, certain properties in the deepwater Gulf of Mexico, offshore Israel and offshore Equatorial Guinea were written down to their estimated fair values using a discounted cash flow model.
The cash flow model included management’s estimates of future crude oil and natural gas production, commodity prices based on forward commodity price curves or contract prices as of the date of the estimate, operating and development costs, and discount rates.
Impairment charges of $481 million resulted from reductions in the forward crude oil prices as of December 31, 2015.
We also recorded impairment charges of approximately $47 million primarily related to revisions in expected field abandonment and other costs for properties in the deepwater Gulf of Mexico and offshore Israel and $5 million related to the pending sale of our interest in the Alon A and Alon C licenses, offshore Israel, which included the Karish and Tanin fields.2014 Asset Impairments As a result of declining crude oil prices at the end of 2014, we recorded impairment charges of $250 million related to certain onshore US and deepwater Gulf of Mexico properties.
We also recorded impairment charges of $74 million for the South Raton development, deepwater Gulf of Mexico, due to mechanical issues; $51 million related to asset retirement obligation increases for certain properties in the deepwater Gulf of Mexico and offshore Israel; $31 million related to the reclassification of certain non-strategic properties as assets held for sale; and $94 million related to North Sea MacCulloch field abandonment.


| December 31, 2005 2004 | (in billions) | Top 10 U.S. States | California | New York | Florida | Illinois | Texas | Ohio | Arizona | New Jersey | Michigan | Colorado | Total Top 10 | Other | Total |


The Virginia-class program includes 30 submarines, which the customer is procuring in multi-ship blocks.
The group, in conjunction with an industry partner that shares in the construction of these vessels, has delivered the first six of 18 boats under contract.
The remaining 12 boats extend deliveries through 2018.
As a result of U. S.  combatant-commander requirements, strong congressional support, innovative cost-saving design and production efforts, and successful program execution, the group is scheduled to build two submarines per year starting in 2011, which will double the current submarine workload.
Marine Systems also is the lead designer and producer of Arleigh Burke destroyers, a sophisticated class of surface combatants and the only active destroyer in the Navys global surface fleet.
During 2009, we delivered USS Wayne E.  Meyer, the 31st of 34 DDG-51 ships the Navy has contracted with us to build.
The three remaining ships are scheduled for delivery in 2010 and 2011.
The groups T-AKE combat-logistics ship supports multiple missions for the Navy, including replenishment at sea for U. S.  and NATO operating forces around the world.
T-AKE is the first Navy ship to incorporate proven commercial marine technologies such as integrated electric-drive propulsion.
These technologies are designed to minimize T-AKE operations and maintenance costs over an expected 40-year life.
The group has delivered the first eight of these ships, including two in 2009.
Work is underway on the remaining four ships currently under contract, with deliveries scheduled through 2011.
The Navy funded long-lead material procurement in 2009 for two additional ships under the contract, and we expect to receive construction contracts for these two ships in 2010.
The Marine Systems group participates in the development of technologies and naval platforms for the future.
The group continues to apply its design and engineering expertise to advance next-generation submarine capabilities.
These efforts include initial concept studies for the development of the next-generation ballistic missile submarine (SSBN).
This new class of SSBN is expected to replace the current Ohio Class of ballistic missile submarines.
Marine Systems also leads a joint Navy-Defense Advanced Research Projects Agency (DARPA) initiative to reduce the cost of future submarines by identifying and overcoming technological barriers.
Under this initiative, the group is developing technologies to propel submarines with external electric motors, reduce the ships infrastructure and improve its sensors.
Marine Systems also is participating in a number of programs in support of the Navys efforts to renew its surface combatant fleet.
The group is completing the design and has started construction of the next-generation guided-missile destroyer, the DDG-1000 Zumwalt Class.
The group is building the first DDG-1000 destroyer at its Bath, Maine, shipyard and is negotiating contracts with the Navy for construction of the second and third ships, both of which have been fully funded.
Marine Systems leads one of two industry teams awarded contracts for the design and construction of the Littoral Combat Ship (LCS), a new high-speed surface warship designed to address emerging coastal-water threats.
Marine Systems LCS is well-suited to accommodate the speed, draft and cargo capacity requirements of this new class of warship.
The group delivered its first ship in the fourth quarter of 2009.
We are currently working on the remaining ship in backlog, which is scheduled to be delivered in 2012.
In addition to these design and construction programs, the Marine Systems group provides comprehensive ship and submarine overhaul, repair and lifecycle support services to extend the service life of these vessels and maximize the value of these ships to the customer.
The group operates the only full-service maintenance and repair shipyard on the West Coast, positioning us to support the Navys rebalancing of its surface force toward the Pacific Fleet.
The group also provides international allies with program management, planning and engineering design support for submarine and surface-ship construction programs.
Beyond its Navy programs, Marine Systems designs and produces ships for commercial customers to meet the Jones Act requirement that ships carrying cargo between U. S.  ports be built in U. S.  shipyards.
Marine Systems currently has a contract to build five product-carrier ships.
These product carriers are based on a design the group obtained through a strategic partnership with an experienced international commercial shipyard.
The partnership allows Marine Systems to offer proven commercial ship designs to customers, to share best practices that improve efficiency and throughput, and to achieve cost savings on materials procured through the partnership.
The group has delivered the first three ships and expects to deliver the remaining ships by the end of 2010.
With the existing fleet of Jones Act ships in need of replacement due to age and environmental regulations, we are marketing this proven product to new customers.
To further the groups goals of efficiency and continuous process improvement, we are committed to strategic investments in our shipyards in partnership with the Navy and local governments.
In addition, the Marine Systems group continues to leverage its design and engineering expertise across its shipyards to improve program execution and generate cost savings.
This knowledge sharing enables the group to use resources more efficiently and drive process improvements throughout the business.
The group is well-positioned to effectively fulfill the long-term ship-construction and support requirements of its Navy and commercial customers.


| (Amounts in thousands) 2007 2006 2005 | Net income applicable to common shares | Book to tax differences (unaudited): | Depreciation and amortization | Derivatives | Stock options expense | Straight-line rent adjustments | Net gains on sale of real estate | Earnings of partially owned entities | Compensation deduction for units held in Rabbi Trust | Sears Canada dividend | Other, net | Estimated taxable income | Year Ended December 31 | (In millions) | Revenues: | Other revenue, primarily operating | Net investment income | Total | Expenses: | Operating | Interest | Total | Income before income tax and minority interest | Income tax expense | Minority interest | Net income | Three Months Ended | Mar 31,   2006 | (In thousands) | (Unaudited) | Revenues | Commissions | U.S. high-grade-1 | European high-grade-2 | Other-3 | Total commissions | Information and user access fees-4 | License fees | Interest income-5 | Other-6 | Total revenues | Expenses | Employee compensation and benefits | Depreciation and amortization | Technology and communications | Professional and consulting fees | Occupancy | Marketing and advertising | General and administrative | Total expenses | Income before income taxes | Provision for income taxes | Net income |


| Cash(a) $487 | MPC accounts receivable(a) | Marathon common stock(b) | Estimated additional consideration related to tax matters | Transaction-related costs | Purchase price | Assumption of debt(c) | Total consideration including debt assumption(d) |


| Year ended December 31, (in millions) 2009 2008 2007 | Trading assets – debt and equity instruments | Trading assets – derivative receivables | Trading liabilities – debt and equityinstruments(a) | Trading liabilities – derivative payables |


| Years Ended December 31, | (Millions, except percentages) | Charge card | Card Member loans | Other | Total provisions for losses(a) |


| Change | 2015 | (In millions, except percentages and ratios) | New orders | Net sales | Book to bill ratio | Operating income | Operating margin | Non-GAAP Adjusted Results | Non-GAAP adjusted operating income | Non-GAAP adjusted operating margin |


| (Dollars in millions, except per share amounts) 2007 2006 2005 2004 2003 | Years ended December 31: | Net sales | Income before cumulative effect of accounting change | Per share of common stock: | Income before cumulative effect of accounting change — basic | Income before cumulative effect of accounting change — diluted | Cash dividends declared and paid | At December 31: | Total assets | Long-term debt (excluding portion due within one year) and long-term capital lease obligations |


| 2013 | Labor-related deemed claim -1 | Aircraft and facility financing renegotiations and rejections -2, -3 | Fair value of conversion discount -4 | Professional fees | Other | Total reorganization items, net |


2015 Compared to 2014.
In 2015, cost of revenue, which included TAC of $121.8 million, increased by $282.9 million compared to 2014.
The increase was primarily attributable to a $113.7 million increase in TAC, a $79.5 million increase in networking, hosting and data center costs related to our co-located facilities, a $76.3 million increase in depreciation expense related to additional server and networking equipment and amortization of acquired intangible assets, and a $24.1 million increase in other direct costs, offset by a $10.7 million decrease in personnel-related costs, mainly driven by a decrease in average employee headcount and stock-based compensation expense.2014 Compared to 2013.
In 2014, cost of revenue increased by $179.6 million compared to 2013.
The increase was primarily attributable to a $75.5 million increase in depreciation expense related to additional server and networking equipment and amortization of acquired intangible assets, a $60.2 million increase in networking, hosting and data center costs related to our co-located facilities, a $27.0 million increase in allocated facilities and other supporting overhead costs due to the continued expansion of our real estate footprint and increase in support functions, and a $16.9 million increase in personnel-related costs, mainly driven by an increase in average employee headcount.


Contractual Obligations The following table includes aggregated information about Citigroups contractual obligations that impact its short- and long-term liquidity and capital needs.
The table includes information about payments due under specified contractual obligations, aggregated by type of contractual obligation.
It includes the maturity profile of the Companys consolidated long-term debt, operating leases and other long-term liabilities.
The Companys capital lease obligations are included in purchase obligations in the table.
Citigroups contractual obligations include purchase obligations that are enforceable and legally binding for the Company.
For the purposes of the table below, purchase obligations are included through the termination date of the respective agreements, even if the contract is renewable.
Many of the purchase agreements for goods or services include clauses that would allow the Company to cancel the agreement with specified notice; however, that impact is not included in the table (unless Citigroup has already notified the counterparty of its intention to terminate the agreement).
Other liabilities reflected on the Companys Consolidated Balance Sheet include obligations for goods and services that have already been received, litigation settlements, uncertain tax positions, as well as other long-term liabilities that have been incurred and will ultimately be paid in cash.
Excluded from the following table are obligations that are generally short term in nature, including deposit liabilities and securities sold under agreements to repurchase.
The table also excludes certain insurance and investment contracts subject to mortality and morbidity risks or without defined maturities, such that the timing of payments and withdrawals is uncertain.
The liabilities related to these insurance and investment contracts are included on the Consolidated Balance Sheet as Insurance Policy and Claims Reserves, Contractholder Funds, and Separate and Variable Accounts.
Citigroups funding policy for pension plans is generally to fund to the minimum amounts required by the applicable laws and regulations.
At December 31, 2008, there were no minimum required contributions, and no contributions are currently planned for the U. S.  pension plans.
Accordingly, no amounts have been included in the table below for future contributions to the U. S.  pension plans.
For the non-U.
S.  plans, discretionary contributions in 2009 are anticipated to be approximately $167 million and this amount has been included in purchase obligations in the table below.
The estimated pension plan contributions are subject to change, since contribution decisions are affected by various factors, such as market performance, regulatory and legal requirements, and managements ability to change funding policy.
For additional information regarding the Companys retirement benefit obligations, see Note 9 to the Consolidated Financial Statements on page 144.


| Expected Benefit Payments | 2017 | Pension Benefits | Other Benefits |


| Year ended December 31 | 2009 | Net income, in millions | Diluted earnings per common share | Continuing operations | Discontinued operations | Net income | Return on | Average common shareholders’ equity | Average assets |


McKESSON CORPORATION 3 PART I Item 1.  Business.
General McKesson Corporation (McKesson, the Company, the Registrant or we and other similar pronouns), is a Fortune 15 corporation that delivers pharmaceuticals, medical supplies and health care information technologies that make health care safer while reducing costs.
The Companys fiscal year begins on April 1 and ends on March 31.
Unless otherwise noted, all references in this document to a particular year shall mean the Companys fiscal year.
Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act,) are available free of charge on our website (www.
mckesson.
com under the Investors  Financial Information  SEC Filings caption) as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission (SEC or the Commission).
The content on any website referred to in this Annual Report on Form 10-K is not incorporated by reference into this report, unless expressly noted otherwise.
The public may also read or copy any materials that we file with the SEC at the SECs Public Reference Room at 100 F Street, NE, Washington, D. C.  20549.
The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.
The SEC maintains a website that contains reports, proxy and information statements, and other information regarding issuers, including the Company, that file electronically with the SEC.
The address of the website is http://www.
sec.
gov.
Business Segments We operate in two segments.
The McKesson Distribution Solutions segment distributes ethical and proprietary drugs, medical-surgical supplies and equipment and health and beauty care products throughout North America.
This segment also provides specialty pharmaceutical solutions for biotech and pharmaceutical manufacturers, and practice management, technology, clinical support and business solutions to oncology and other specialty practices operating in the community setting.
In addition, this segment sells financial, operational and clinical solutions for pharmacies (retail, hospital, alternate site) and provides consulting, outsourcing and other services.
This segment includes a 49% interest in Nadro, S. A.  de C. V.  (Nadro), one of the leading pharmaceutical distributors in Mexico.
The McKesson Technology Solutions segment delivers enterprise-wide clinical, patient care, financial, supply chain, strategic management software solutions, pharmacy automation for hospitals, as well as connectivity, outsourcing and other services, including remote hosting and managed services, to healthcare organizations.
This segment also includes our Payer group of businesses, which includes our InterQual?
clinical criteria solution, medical management tools, claims payment solutions, network performance tools and care management programs.
This segments customers include hospitals, physicians, homecare providers, retail pharmacies and payers from North America, the United Kingdom, Ireland, other European countries and Israel.
Net revenues for our segments for the last three years were as follows:


| 2016 2015 2014 | Numerator: | Net income attributable to common shareowners | Denominator: | Weighted-average shares | Deferred compensation obligations | Vested portion of restricted shares | Denominator for basic earnings per share | Effect of Dilutive Securities: | Restricted performance units | Stock options | Denominator for diluted earnings per share | Basic Earnings Per Share | Diluted Earnings Per Share |


exchange stockholders, which include Cboe Options, subsequently executed agreements effecting the capital plan.
Under the plan, each of OCC’s existing exchange stockholders agreed to contribute its pro-rata share, based on ownership percentage, of $150 million in equity capital, which would increase OCC’s shareholders’ equity, and to provide its pro rata share in replenishment capital, up to a maximum of $40 million per exchange stockholder, if certain capital thresholds are breached.
OCC also adopted policies under the plan with respect to fees, customer refunds, and stockholder dividends, which envision an annual dividend payment to the exchange stockholders equal to the portion of OCC’s after-tax income that exceeds OCC’s capital requirements after payment of refunds to OCC’s clearing members (with such customer refunds generally to constitute 50% of the portion of OCC’s pre-tax income that exceeds OCC’s capital requirements).
On March 3, 2015, in accordance with the plan, Cboe Options contributed $30 million to OCC.
That contribution has been recorded under investments in the consolidated balance sheets as of December 31, 2017.
On March 6, 2015, OCC informed Cboe Options that the SEC, acting through delegated authority, had approved OCC’s proposed rule filing for the capital plan.
Following petitions to review the approval based on delegated authority, the SEC conducted its own review and then approved the proposed rule change implementing OCC’s capital plan.
Certain petitioners subsequently appealed the SEC approval order for the OCC capital plan to the U. S.  Court of Appeals for the D. C.  Circuit, the ‘‘Court’’ and moved to stay the SEC approval order.
On February 23, 2016, the Court denied the petitioners’ motion to stay.
On August 8, 2017, the Court held that the SEC’s approval order lacked reasoned decision-making sufficient to support the SEC’s conclusion that the OCC capital plan complied with applicable statutory requirements.
The Court declined to vacate the SEC’s approval order or to require the unwinding of actions taken under the OCC capital plan, but instead remanded the matter to the SEC for further proceedings concerning whether that capital plan complies with those statutory requirements.
Petitioners requested a stay of dividend payments to the exchange stockholders until the SEC made a final decision about the OCC capital plan, but the SEC denied that request on September 14, 2017.
The SEC allowed for and received information from interested parties for the SEC’s consideration in connection its review of the OCC capital plan on remand from the Court.
The SEC’s review of the OCC capital plan on remand from the Court remains pending.
Lease and Obligations The Company currently leases additional office space, data centers and remote network operations center, with lease terms remaining from 6 months to 114 months as of December 31, 2017.
In December 2014, we entered into an agreement with FINRA to provide certain regulatory services to the Cboe and C2 options markets.
The agreement included the assignment of the office space Cboe leased for regulatory operations.
Total rent expense related to current and former lease obligations for the years ended December 31, 2017, 2016 and 2015 totaled $7.6 million, $4.4 million and $4.1 million, respectively.
In addition to our lease obligations, we have contractual obligations related to certain operating leases, data and telecommunications agreements, and our long-term debt outstanding.
Future minimum payments under these leases and agreements were as follows as of December 31, 2017:


| Shares Under Option Weighted Average Exercise Prices Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in millions) | Outstanding at December 31, 2005 | Granted | Exercised | Forfeited/canceled | Outstanding at December 31, 2006 | Vested and expected to vest at December 31, 2006 | Exercisable at December 31, 2006 |


| As of December 31, 2013 | DISH Network Awards | Stock Awards Outstanding | Held by DISH Network employees | Held by EchoStar employees | Total |


Archer Daniels Midland Company Notes to Consolidated Financial Statements (Continued) Note 13.
Employee Benefit Plans The Company provides substantially all domestic employees and employees at certain international subsidiaries with pension benefits.
The Company also provides substantially all domestic salaried employees with postretirement health care and life insurance benefits.
The Company has savings and investment plans available to employees.
The Company also maintains stock ownership plans for qualifying employees.
The Company contributes shares of its stock to the plans to match qualifying employee contributions.
Employees have the choice of retaining Company stock in their accounts or diversifying the shares into other investment options.
Expense is measured and recorded based upon the fair market value of the stock contributed to the plans each month.
The number of shares designated for use in the plans is not significant compared to the shares outstanding for the periods presented.
Assets of the Company’s defined contribution savings plans consist primarily of listed common stocks and pooled funds.
The Company’s defined contribution savings plans held 19.1 million shares of Company common stock at June 30, 2007, with a market value of $631 million.
Cash dividends received on shares of Company common stock held by these plans during the year ended June 30, 2007 were $8 million.


| Increase/(Decrease)in Fair Market Value | As of December 31, | 2018 | 2017 |