ITEM 6 - SELECTED FINANCIAL DATA The following tables show Intuit’s selected financial information for the past five fiscal years.
The comparability of the information is affected by a variety of factors, including acquisitions and divestitures of businesses, issuance and repayment of debt, share-based compensation expense, amortization of acquired technology and other acquired intangible assets, repurchases of common stock under our stock repurchase programs, and the payment of cash dividends.
In fiscal 2014, fiscal 2015, and fiscal 2018 we acquired several companies and we have included the results of operations for each of them in our consolidated results of operations from their respective dates of acquisition.
In fiscal 2014 we completed the sales of our Intuit Financial Services and Intuit Health businesses.
In fiscal 2016 we completed the sales of our Demandforce, QuickBase, and Quicken businesses.
We accounted for all of these businesses as discontinued operations and have therefore reclassified our statements of operations for all periods presented below to reflect them as such.
We have also reclassified our balance sheets for all periods presented below to reflect Intuit Financial Services, Demandforce, QuickBase, and Quicken as discontinued operations.
The net assets of Intuit Health were not significant, so we have not reclassified our balance sheets for any period presented below to reflect them as discontinued operations.
To better understand the information in these tables, investors should read “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 7 of this Annual Report, and the financial statements and related notes in Item 8 of this Annual Report, especially Note 7, “Discontinued Operations.
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| 2006 2005 | (Amounts in millions) | ASSETS: | Money market investments | Securities: | Held to maturity | Available for sale | Trading account | Total securities | Loans: | Loans held for sale | Net loans and leases-2 | Total loans and leases | Total interest-earning assets | Cash and due from banks | Allowance for loan losses | Goodwill | Core deposit and other intangibles | Other assets | Total assets | LIABILITIES: | Interest-bearing deposits: | Savings and NOW | Money market | Time under $100,000 | Time $100,000 and over | Foreign | Total interest-bearing deposits | Borrowed funds: | Securities sold, not yet purchased | Federal funds purchased and security repurchase agreements | Commercial paper | FHLB advances and other borrowings: | One year or less | Over one year | Long-term debt | Total borrowed funds | Total interest-bearing liabilities | Noninterest-bearing deposits | Other liabilities | Total liabilities | Minority interest | Shareholders’ equity: | Preferred equity | Common equity | Total shareholders’ equity | Total liabilities and shareholders’ equity | Spread on average interest-bearing funds | Taxable-equivalent net interest income and net yield on interest-earning assets |


| (In thousands) 2014 2013 Change | Oilseeds | Corn | Milling and cocoa | Total |


Frequent Flyer Programs American established AAdvantage ?
to develop passenger loyalty by offering awards to travelers for their continued patronage.
We believe that the AAdvantage program is one of our competitive strengths.
AAdvantage benefits from a growing base of approximately 74 million members with desirable demographics who have demonstrated a strong willingness to collect AAdvantage miles over other loyalty program incentives and are generally disposed to adjusting their purchasing behavior in order to earn additional AAdvantage miles.
AAdvantage members earn mileage credits by flying on American, the American Eagle carriers, the third-party regional carriers and other participating airlines or by using services of other participants in the AAdvantage program.
Mileage credits can be redeemed for free, discounted or upgraded travel on American, the American Eagle carriers or other participating airlines, or for other awards.
Once a member accrues sufficient mileage for an award, the member may book award travel.
Most travel awards are subject to capacity-controlled seating.
A member's mileage credit does not expire as long as that member has any type of qualifying activity at least once every 18 months.
American sells mileage credits and related services to other participants in the AAdvantage program.
There are over 1,000 program participants, including a leading credit card issuer (Citibank), hotels, car rental companies and other products and services companies in the AAdvantage program.
We believe that program participants benefit from the sustained purchasing behavior of AAdvantage members, which translates into a recurring stream of revenues for AAdvantage.
Under our agreements with AAdvantage members and program participants, we reserve the right to change the AAdvantage program at any time without notice, and may end the program with six months notice.
As of December 31, 2013, AAdvantage had approximately 74 million total members, and 622.3 billion outstanding award miles.
During 2013, AAdvantage issued approximately 202.8 billion miles, of which approximately 64% were sold to program participants.
See Part II, Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations - " Critical Accounting Policies and Estimates" for more information on AAdvantage.
US Airways offers a similar frequent flyer program under the Dividend Miles brand that allows participants to earn mileage credits for each paid flight segment on US Airways and certain other airlines that participate in the program.
Participants flying in first class or US Airways' international business class (Envoy class) may receive additional mileage credits.
Participants can also receive mileage credits through special promotions that US Airways periodically offers and may also earn mileage credits by utilizing certain credit cards and purchasing services from non-airline partners such as hotels and rental car agencies.


premium content complementary to FOX News programming directly to consumers.
We intend to identify similarly innovative new products and services across our business to increase revenues and profitability in the future.
Segments Cable Network Programming The Cable Network Programming segment produces and licenses news, business news and sports content for distribution primarily through MVPDs primarily in the U. S.  The businesses in this segment include FOX News Media (which is comprised of FOX News and FOX Business) and our primary cable sports programming networks FS1, FS2 and Big Ten Network.
The following table lists the Company’s significant cable networks and the number of subscribers as estimated by Nielsen Media Research (“Nielsen”):


| 2018 2017 2016 | Interest incurred | Less: Capitalized interest | Interest Expense |


Additional Considerations Items which could have a future impact on N&SS operations include the following: United Launch Alliance On December 1, 2006, we completed the transaction with Lockheed Martin Corporation (Lockheed) to create a 50/50 joint venture named United Launch Alliance L. L. C.  (ULA).
ULA combines the production, engineering, test and launch operations associated with U. S.  government launches of Boeing Delta and Lockheed Atlas rockets.
In connection with the transaction,
billion of unused borrowing on revolving credit line agreements.
We anticipate that these credit lines will primarily serve as backup liquidity to support our general corporate borrowing needs.
Financing commitments totaled $18.1 billion and $15.9 billion as of December 31, 2012 and 2011.
We anticipate that we will not be required to fund a significant portion of our financing commitments as we continue to work with third party financiers to provide alternative financing to customers.
Historically, we have not been required to fund significant amounts of outstanding commitments.
However, there can be no assurances that we will not be required to fund greater amounts than historically required.
In the event we require additional funding to support strategic business opportunities, our commercial aircraft financing commitments, unfavorable resolution of litigation or other loss contingencies, or other business requirements, we expect to meet increased funding requirements by issuing commercial paper or term debt.
We believe our ability to access external capital resources should be sufficient to satisfy existing short-term and long-term commitments and plans, and also to provide adequate financial flexibility to take advantage of potential strategic business opportunities should they arise within the next year.
However, there can be no assurance of the cost or availability of future borrowings, if any, under our commercial paper program, in the debt markets or our credit facilities.
At December 31, 2012 and 2011, our pension plans were $19.7 billion and $16.6 billion underfunded as measured under GAAP.
On an ERISA basis our plans are more than 100% funded at December 31, 2012 with minimal required contributions in 2013.
We expect to make discretionary contributions to our plans of approximately $1.5 billion in 2013.
We may be required to make higher contributions to our pension plans in future years.
As of December 31, 2012, we were in compliance with the covenants for our debt and credit facilities.
The most restrictive covenants include a limitation on mortgage debt and sale and leaseback transactions as a percentage of consolidated net tangible assets (as defined in the credit agreements), and a limitation on consolidated debt as a percentage of total capital (as defined).
When considering debt covenants, we continue to have substantial borrowing capacity.
Contractual Obligations The following table summarizes our known obligations to make future payments pursuant to certain contracts as of December 31, 2012, and the estimated timing thereof.


| 2018 2017 2016 | Balance at beginning of year | Additions: | Prior year tax positions | Current year tax positions | Decreases: | Prior year tax positions | Settlements with taxing authorities | Lapse of statute of limitations | Balance at end of year |


Market Risk Related to Equity Prices We have exposure to equity risk through asset/liability mismatches, including our investments in equity securities held in our general account investment portfolio and unhedged exposure in our insurance liabilities, principally related to certain variable annuity living benefit feature embedded derivatives.
Our equity-based derivatives primarily hedge the equity risk embedded in these living benefit feature embedded derivatives, and are also part of our capital hedging program.
Changes in equity prices create risk that the resulting changes in asset values will differ from the changes in the value of the liabilities relating to the underlying or hedged products.
Additionally, changes in equity prices may impact other items including, but not limited to, the following: ?
Asset-based fees earned on assets under management or contractholder account value; ?
Estimated total gross profits and the amortization of deferred policy acquisition and other costs; and ?
Net exposure to the guarantees provided under certain products.
We manage equity risk against benchmarks in respective markets.
We benchmark our return on equity holdings against a blend of market indices, mainly the S&P 500 and Russell 2000 for U. S.  equities.
We benchmark foreign equities against the Tokyo Price Index, and the MSCI EAFE, a market index of European, Australian, and Far Eastern equities.
We target price sensitivities that approximate those of the benchmark indices.
We estimate our equity risk from a hypothetical 10% decline in equity benchmark market levels.
The following table sets forth the net estimated potential loss in fair value from such a decline as of December 31, 2016 and 2015.
While these scenarios are for illustrative purposes only and do not reflect our expectations regarding future performance of equity markets or of our equity portfolio, they represent near-term reasonably possible hypothetical changes that illustrate the potential impact of such events.
These scenarios consider only the direct impact on fair value of declines in equity benchmark market levels and not changes in asset-based fees recognized as revenue, changes in our estimates of total gross profits used as a basis for amortizing deferred policy acquisition and other costs, or changes in any other assumptions such as market volatility or mortality, utilization or persistency rates in our variable annuity contracts that could also impact the fair value of our living benefit features.
In addition, these scenarios do not reflect the impact of basis risk, such as potential differences in the performance of the investment funds underlying the variable annuity products relative to the market indices we use as a basis for developing our hedging strategy.
The impact of basis risk could result in larger differences between the change in fair value of the equity-based derivatives and the related living benefit features in comparison to these scenarios.
In calculating these amounts, we exclude separate account equity securities.


| Years Ended December 31, | 2013 | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income (loss) | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest and debt expense | General and administrative expense | Total expenses | Operating loss |


Concentrations of Credit Risk Most of the Companys lending activity is with customers located in the New England, Mid-Atlantic and Midwest regions.
Generally, loans are collateralized by assets including real estate, inventory, accounts receivable, other personal property and investment securities.
As of December 31, 2016 and 2015, the Company had a significant amount of loans collateralized by residential and commercial real estate.
There were no significant concentration risks within the commercial loan or retail loan portfolios.
Exposure to credit losses arising from lending transactions may fluctuate with fair values of collateral supporting loans, which may not perform according to contractual agreements.
The Companys policy is to collateralize loans to the extent necessary; however, unsecured loans are also granted on the basis of the financial strength of the applicant and the facts surrounding the transaction.
Certain loan products, including residential mortgages, home equity loans and lines of credit, and credit cards, have contractual features that may increase credit exposure to the Company in the event of an increase in interest rates or a decline in housing values.
These products include loans that exceed 90% of the value of the underlying collateral (high LTV loans), interestonly and negative amortization residential mortgages, and loans with low introductory rates.
Certain loans have more than one of these characteristics.


unconsolidated CDOs totaled $421 million and $358 million at December 31, 2018 and 2017.
Investment VIEs The Corporation sponsors, invests in or provides financing, which may be in connection with the sale of assets, to a variety of investment VIEs that hold loans, real estate, debt securities or other financial instruments and are designed to provide the desired investment profile to investors or the Corporation.
At December 31, 2018 and 2017, the Corporations consolidated investment VIEs had total assets of $270 million and $249 million.
The Corporation also held investments in unconsolidated VIEs with total assets of $37.7 billion and $20.3 billion at December 31, 2018 and 2017.
The Corporations maximum loss exposure associated with both consolidated and unconsolidated investment VIEs totaled $7.2 billion and $5.7 billion at December 31, 2018 and 2017 comprised primarily of on-balance sheet assets less non-recourse liabilities.
Leveraged Lease Trusts The Corporations net investment in consolidated leveraged lease trusts totaled $1.8 billion and $2.0 billion at December 31, 2018 and 2017.
The trusts hold long-lived equipment such as rail cars, power generation and distribution equipment, and commercial aircraft.
The Corporation structures the trusts and holds a significant residual interest.
The net investment represents the Corporations maximum loss exposure to the trusts in the unlikely event that the leveraged lease investments become worthless.
Debt issued by the leveraged lease trusts is non-recourse to the Corporation.
Tax Credit VIEs The Corporation holds investments in unconsolidated limited partnerships and similar entities that construct, own and operate affordable housing, wind and solar projects.
An unrelated third party is typically the general partner or managing member and has control over the significant activities of the VIE.
The Corporation earns a return primarily through the receipt of tax credits allocated to the projects.
The maximum loss exposure included in the Other VIEs table was $17.0 billion and $13.8 billion at December 31, 2018 and 2017.
The Corporations risk of loss is generally mitigated by policies requiring that the project qualify for the expected tax credits prior to making its investment.
The Corporations investments in affordable housing partnerships, which are reported in other assets on the Consolidated Balance Sheet, totaled $8.9 billion and $8.0 billion, including unfunded commitments to provide capital contributions of $3.8 billion and $3.1 billion at December 31, 2018 and 2017.
The unfunded commitments are expected to be paid over the next five years.
During 2018, 2017 and 2016, the Corporation recognized tax credits and other tax benefits from investments in affordable housing partnerships of $981 million, $1.0 billion and $1.1 billion and reported pretax losses in other income of $798 million, $766 million and $789 million, respectively.
Tax credits are recognized as part of the Corporations annual effective tax rate used to determine tax expense in a given quarter.
Accordingly, the portion of a years expected tax benefits recognized in any given quarter may differ from 25 percent.
The Corporation may from time to time be asked to invest additional amounts to support a troubled affordable housing project.
Such additional investments have not been and are not expected to be significant.


| 2012 2011 | December 31, (in millions) | Loans(a) | Nonaccrual loans | Loans reported as trading assets | Loans | Subtotal | All other performing loans | Loans reported as trading assets | Loans | Total loans | Long-term debt | Principal-protected debt | Nonprincipal-protected debt(b) | Total long-term debt | Long-term beneficial interests | Nonprincipal-protected debt(b) | Total long-term beneficial interests |


Litigation reserve The Firm maintains litigation reserves for certain of its litigations, including its material legal proceedings.
While the outcome of litigation is inherently uncertain, management believes, in light of all information known to it at December 31, 2005, that the Firm’s litigation reserves were adequate at such date.
Management reviews litigation reserves periodically, and the reserves may be increased or decreased in the future to reflect further litigation developments.
The Firm believes it has meritorious defenses to claims asserted against it in its currently outstanding litigation and, with respect to such litigation, intends to continue to defend itself vigorously, litigating or settling cases according to management’s judgment as to what is in the best interest of stockholders.


| In millions except per share amounts 2009 2008 2007 | Earnings (loss) from continuing operations | Effect of dilutive securities (a) | Earnings (loss) from continuing operations – assumingdilution | Average common shares outstanding | Effect of dilutive securities Restricted performance share plan (a) | Stock options (b) | Average common shares outstanding – assuming dilution | Basic earnings (loss) per common share from continuing operations | Diluted earnings (loss) per common share from continuing operations |


| Year ended December 31, | 2007 | (in millions) | Operating results: | Revenues | Expenses | Adjusted operating income | Realized investment gains, net, and related adjustments-1 | Income from continuing operations before income taxes and equity in earnings of operating joint ventures |


| Year ended December 31, 2016 | In millions of dollars | Net cash provided by operating activities of continuing operations | Cash flows from investing activities of continuing operations | Purchases of investments | Proceeds from sales of investments | Proceeds from maturities of investments | Change in loans | Proceeds from sales and securitizations of loans | Change in federal funds sold and resales | Proceeds from significant disposals | Payments due to transfers of net liabilities associated with significant disposals | Changes in investments and advances—intercompany | Other investing activities | Net cash used in investing activities of continuing operations | Cash flows from financing activities of continuing operations | Dividends paid | Issuance of preferred stock | Treasury stock acquired | Proceeds (repayments) from issuance of long-term debt, net | Proceeds (repayments) from issuance of long-term debt—intercompany, net | Change in deposits | Change in federal funds purchased and repos | Change in short-term borrowings | Net change in short-term borrowings and other advances—intercompany | Other financing activities | Net cash provided by financing activities of continuing operations | Effect of exchange rate changes on cash and due from banks | Change in cash and due from banks and deposits with banks | Cash and due from banks and deposits with banks atbeginning of period | Cash and due from banks and deposits with banks at end of period | Cash and due from banks | Deposits with banks | Cash and due from banks and deposits with banks at end of period | Supplemental disclosure of cash flow information for continuing operations | Cash paid during the year for income taxes | Cash paid during the year for interest | Non-cash investing activities | Transfers to loans held-for-sale from loans | Transfers to OREO and other repossessed assets |


The Annuities segment provides variable and fixed annuity products of RiverSource Life companies to retail clients.
Prior to the fourth quarter of 2010, the Companys variable annuity products were provided through both affiliated and unaffiliated advisors through third-party distribution.
During the fourth quarter of 2010, the Company discontinued new sales of its variable annuities in non-Ameriprise channels to further strengthen the risk and return characteristics of the business.
The Companys fixed annuity products are provided through affiliated advisors as well as unaffiliated advisors through third-party distribution.
Revenues for the Companys variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net asset flows.
Revenues for the Companys fixed annuity products are primarily earned as net investment income on invested assets supporting fixed account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances.
The Company also earns net investment income on invested assets supporting reserves for immediate annuities and for certain guaranteed benefits offered with variable annuities and on capital supporting the business.
Intersegment revenues for this segment reflect fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource Variable Series Trust, Columbia Funds Variable Insurance Trust, Columbia Funds Variable Insurance Trust I and Wanger Advisors Trust funds under the variable annuity contracts.
Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management segment, as well as expenses for investment management services provided by the Asset Management segment.


The following table summarizes the loan grades applied to the various classes of the Company’s commercial loans and commercial real estate loans.


backed securities, as well as certain corporate notes and bonds with limited market activity.
At December 31, 2009, $71.5 million, or approximately 7.3%, of the Company’s investment securities were categorized as Level 3 assets (all of which were pledged under certain collateral arrangements (see Note 17)).
All of the assets classified as Level 3 at December 31, 2009 were acquired when Old Merck elected to be redeemed-in-kind from a short-term fixed income fund that restricted cash redemptions as described below.
If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Financial assets and liabilities measured at fair value on a recurring basis are summarized below:


| (In millions, except per share information) 2018 2017 2016 | Earnings per common share | Net income | Preferred stock dividends | Net income applicable to common shareholders | Average common shares issued and outstanding | Earnings per common share | Diluted earnings per common share | Net income applicable to common shareholders | Add preferred stock dividends due to assumed conversions-1 | Net income allocated to common shareholders | Average common shares issued and outstanding | Dilutive potential common shares-2 | Total diluted average common shares issued and outstanding | Diluted earnings per common share |


| Related Debt Date Disposed Original Expiration Hedge Y/N Notional Amount Fixed Rate Floating LIBOR base Additional basis points Reset period | Senior Notes, due 12/06 | Trust Preferred Securities, due 11/41 | Senior Debentures, due 8/09 | Notes, due 8/13 | Net Cash Settlements Received by Instrument* | Related Debt | Senior Notes, due 12/06 (hedge)** | Trust Preferred Securities, due 11/41** | Senior Debentures, due 8/09 (hedge)*** | Notes, due 8/13*** | $-0- |


| Year ended December 31, 2010 Year ended December 31, 2009 | Amortization of DAC and Other Costs-1 | (in millions) | Quarterly market performance adjustment | Annual review / assumption updates | Quarterly adjustment for current period experience and other updates | Total |


| December 31, | 2010 | Estimated | Fair | Value | (In millions) | Corporate fixed maturity securities — by sector: | Foreign corporate fixed maturity securities -1 | U.S. corporate fixed maturity securities — by industry: | Industrial | Consumer | Finance | Utility | Communications | Other | Total |


Investing Activities Net cash used in investing activities was $3.8 billion in 2010 including: ?
Net purchases of marketable securities ($2.6 billion); ?
Purchase of ZymoGenetics, Inc.  ($829 million); and ?
Capital expenditures ($424 million)


| At December 31, | (Dollars in millions) | U.S. Reinsurance | International | Bermuda | Total | (Some amounts may not reconcile due to rounding.) |


| Balance, December 31, 2003 $514,177 | Additions during period—depreciation and amortization expense | Deductions during period—disposition and retirements of property | Balance, December 31, 2004 | Additions during period—depreciation and amortization expense | Deductions during period—disposition and retirements of property | Balance, December 31, 2005 | Additions during period—depreciation and amortization expense | Deductions during period—disposition and retirements of property | Balance, December 31, 2006 |


| 2004 2003 2002 | (in millions) | Gross profit |


Pension and Other Postretirement Net Periodic Benefit Cost Pension Cost Net periodic pension cost is comprised of the following: i) Service Cost  Service cost is the increase in the projected pension benefit obligation resulting from benefits payable to employees of the Subsidiaries on service rendered during the current year.
ii) Interest Cost on the Liability  Interest cost is the time value adjustment on the projected pension benefit obligation at the end of each year.
iii) Expected Return on Plan Assets  Expected return on plan assets is the assumed return earned by the accumulated pension fund assets in a particular year.
iv) Amortization of Prior Service Cost  This cost relates to the increase or decrease to pension benefit cost for service provided in prior years due to amendments in plans or initiation of new plans.
As the economic benefits of these costs are realized in the future periods, these costs are amortized to pension expense over the expected service years of the employees.
v) Amortization of Net Actuarial Gains or Losses  Actuarial gains and losses result from differences between the actual experience and the expected experience on pension plan assets or projected pension benefit obligation during a particular period.
These gains and losses are accumulated and, to the extent they exceed 10% of the greater of the projected pension benefit obligation or the market-related value of plan assets, they are amortized into pension expense over the expected service years of the employees.
The Subsidiaries recognized pension expense of $98 million in 2007 as compared to $180 million in 2006 and $146 million in 2005.
The major components of net periodic pension cost described above were as follows:


| 2012/2011 Increase/(Decrease) in Income/ Expense Due to Changes in: 2011/2010 Increase/(Decrease) in Income/ Expense Due to Changes in: | Taxable-equivalent basis – in millions | Interest-Earning Assets | Investment securities | Securities available for sale | Residential mortgage-backed | Agency | Non-agency | Commercial mortgage-backed | Asset-backed | US Treasury and government agencies | State and municipal | Other debt | Total securities available for sale | Securities held to maturity | Residential mortgage-backed | Commercial mortgage-backed | Asset-backed | US Treasury and government agencies | State and municipal | Other | Total securities held to maturity | Total investment securities | Loans | Commercial | Commercial real estate | Equipment lease financing | Consumer | Residential real estate | Total loans | Loans held for sale | Federal funds sold and resale agreements | Other | Total interest-earning assets | Interest-Bearing Liabilities | Interest-bearing deposits | Money market | Demand | Savings | Retail certificates of deposit | Time deposits in foreign offices and other time | Total interest-bearing deposits | Borrowed funds | Federal funds purchased and repurchase agreements | Federal Home Loan Bank borrowings | Bank notes and senior debt | Subordinated debt | Commercial paper | Other | Total borrowed funds | Total interest-bearing liabilities | Change in net interest income |


| In millions of dollars, except as otherwise noted 2016 2015 2014 Change2016 vs. 2015 Change2015 vs. 2014 | Interest revenue-1 | Interest expense | Net interest revenue-1(2) | Interest revenue—average rate | Interest expense—average rate | Net interest margin | Interest rate benchmarks | Two-year U.S. Treasury note—average rate | 10-year U.S. Treasury note—average rate | 10-year vs. two-year spread |


| December 31 | (Dollars in millions) | Consumer | Residential mortgage-2 | U.S. credit card | Non-U.S. credit card | Direct/Indirect consumer | Other consumer | Total consumer | Commercial | U.S. commercial | Commercial real estate | Commercial lease financing | Non-U.S. commercial | 137 | U.S. small business commercial | Total commercial | Total accruing loans and leases past due 90 days or more-3 |


| Year Ended December 31 | ($ in millions) | Net earnings (loss) | Goodwill impairment | Deferred income taxes | Depreciation and amortization | Stock-based compensation | Retiree benefit funding less than (in excess of) expense | Trade working capital decrease (increase) | Net cash provided by (used in) operating activities |


Client intermediation As a financial intermediary, the Firm is involved in structuring VIE transactions to meet investor and client needs.
The Firm intermediates various types of risks (including, for example, fixed income, equity and credit), typically using derivative instruments.
In certain circumstances, the Firm also provides liquidity and other support to the VIEs to facilitate the transaction.
The Firms current exposure to nonconsolidated VIEs is reflected in its Consolidated balance sheet or in the Notes to consolidated financial statements.
The risks inherent in derivative instruments or liquidity commitments are managed similarly to other credit, market and liquidity risks to which the Firm is exposed.


| Millions 2017 2016 2015 | Cash provided by operating activities | Cash used in investing activities | Dividends paid | Free cash flow |


Fuel systems business sales increased primarily due to improved OEM first fit sales in China and the aftermarket recovery in North America, which was partially offset by decreased first fit sales in North America.
Segment EBIT Components segment EBIT almost tripled versus 2009, primarily due to the improved gross margin which was partially offset by increased selling, general and administrative expenses and research, development and engineering expenses.
Changes in Components segment EBIT and EBIT as a percentage of sales were as follows:


| Payments Due by Period | Total | (in thousands) | Debt-1 | Interest-2 | Operating leases-3 | Purchase and other obligations-4 | Total |


| Jurisdiction As of  December 2017 | U.S. Federal | New York State and City | United Kingdom | Japan | Hong Kong |


| Credit Agency American Express Entity Short-Term Ratings Long-Term Ratings Outlook | DBRS | Fitch | Moody’s | Moody’s | S&P | S&P | S&P | (Billions) | American Express Credit Corporation: | Fixed Rate Senior Notes (weighted-average coupon of 1.65%) | Floating Rate Senior Notes(3-monthLIBOR plus 57 basis points onaverage) | Total | (Millions) | U.S. Consumer Services(a) | International Consumer and Network Services | Global Commercial Services | Card Member loans | Less: Reserve for losses | Card Member loans, net | Other loans, net(b) | (Millions) | U.S. Consumer Services(a) | International Consumer and Network Services | Global Commercial Services | Card Member receivables | Less: Reserve for losses | Card Member receivables, net | Other receivables, net(b) |


The security-level assessment is performed on each security, regardless of the classification of the security as available for sale or held to maturity.
Our assessment considers the security structure, recent security collateral performance metrics if applicable, external credit ratings, failure of the issuer to make scheduled interest or principal payments, our judgment and expectations of future performance, and relevant independent industry research, analysis and forecasts.
Results of the periodic assessment are reviewed by a cross-functional senior management team representing Asset & Liability Management, Finance, and Market Risk Management.
The senior management team considers the results of the assessments, as well as other factors, in determining whether the impairment is other-than-temporary.
For debt securities, a critical component of the evaluation for OTTI is the identification of credit-impaired securities, where management does not expect to receive cash flows sufficient to recover the entire amortized cost basis of the security.
The paragraphs below describe our process for identifying credit impairment for our most significant categories of securities not backed by the US government or its agencies.
Non-Agency Residential Mortgage-Backed Securities and Asset-Backed Securities Collateralized by First-Lien and Second-Lien Non-Agency Residential Mortgage Loans Potential credit losses on these securities are evaluated on a security by security basis.
Collateral performance assumptions are developed for each security after reviewing collateral composition and collateral performance statistics.
This includes analyzing recent delinquency roll rates, loss severities, voluntary prepayments, and various other collateral and performance metrics.
This information is then combined with general expectations on the housing market, employment, and other economic factors to develop estimates of future performance.
Security level assumptions for prepayments, loan defaults, and loss given default are applied to every security using a third-party cash flow model.
The third-party cash flow model then generates projected cash flows according to the structure of each security.
Based on the results of the cash flow analysis, we determine whether we will recover the amortized cost basis of our security.


APACHE CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  (Continued) Fair Value The Companys debt is recorded at the carrying amount, net of unamortized discount, on its consolidated balance sheet.
The carrying amount of the Companys commercial paper and uncommitted credit facilities and overdraft lines approximate fair value because the interest rates are variable and reflective of market rates.
Apache uses a market approach to determine the fair value of its fixed-rate debt using estimates provided by an independent investment financial data services firm (a Level 2 fair value measurement).


| Qualified Pension Plan Nonqualified Pension Plan Postretirement Benefits | Year ended December 31 – in millions | Net periodic cost consists of: | Service cost | Interest cost | Expected return on plan assets | Amortization of prior service cost | Amortization of actuarial losses | Net periodic cost | Other changes in plan assets and benefit obligations recognized in other comprehensive income: | Current year prior service cost/(credit) | Amortization of prior service (cost)/credit | Current year actuarial loss/(gain) | Amortization of actuarial (loss)/gain | Total recognized in OCI | Total recognized in net periodic cost and OCI |


| Sales Order Cancellations Fiscal Year Ended September 30, | Cancelled Sales Orders | 2016 | East | Midwest | Southeast | South Central | Southwest | West | 11,895 |


| Years Ended February 29 or 28 | (In millions) | Net loans originated | Total loans sold | Total gain income-1 | Total gain income as a percentage of total loans sold-1 |


North American Printing Papers net sales were $2.7 billion in 2012, $2.8 billion in 2011 and $2.8 billion in 2010.
Operating profits in 2012 were $331 million compared with $423 million ( $399 million excluding a $24 million gain associated with the repurposing of our Franklin, Virginia mill) in 2011 and $18 million ($333 million excluding facility closure costs) in 2010.
Sales volumes in 2012 were flat with 2011.
Average sales margins were lower primarily due to lower export sales prices and higher export sales volume.
Input costs were higher for wood and chemicals, but were partially offset by lower purchased pulp costs.
Freight costs increased due to higher oil prices.
Manufacturing operating costs were favorable reflecting strong mill performance.
Planned maintenance downtime costs were slightly higher in 2012.
No market-related downtime was taken in either 2012 or 2011.
Entering the first quarter of 2013, sales volumes are expected to increase compared with the fourth quarter of 2012 reflecting seasonally stronger demand.
Average sales price realizations are expected to be relatively flat as sales price realizations for domestic and export uncoated freesheet roll and cutsize paper should be stable.
Input costs should increase for energy, chemicals and wood.
Planned maintenance downtime costs are expected to be about $19 million lower with an outage scheduled at our Georgetown mill versus outages at our Courtland and Eastover mills in the fourth quarter of 2012.


| Asbestos Environmental Total | (in millions of U.S. dollars) | Balance at December 31, 2009-1 | Incurred activity | Payment activity | Foreign currency revaluation | Balance at December 31, 2010 |


| Year ended December 31, | Equity Index | S&P 500 | FTSE 100 | Nikkei 225 | MSCI Emerging Markets | Bond Index | Barclays U.S. Aggregate Bond |


| Year Ended December 31, Variance 2010 vs. 2009 | 2010 | Net operating interest income | Commissions | Fees and service charges | Principal transactions | Gains on loans and securities, net | Net impairment | Other revenues | Total non-interest income | Total net revenue |


Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC.
In connection with the Merger and pursuant to the Plan on December 9, 2013, AAG and American entered into a joinder to the loan agreement and became co-obligors of US Airways Group’s $1.6 billion 2013 Citicorp Credit Facility and AAG and American entered into a second supplemental indenture that guarantees the payment obligations associated with the 6.125% senior notes.
(h) Other In 2010, American and Japan Airlines entered into a JBA under which, amongst other things, American provided Japan Airlines a guarantee of certain minimum incremental revenue resulting from the successful operation of the joint business for the first three years following its implementation, subject to certain terms and conditions.
The amount required to be paid by American under the guarantee in any one of such years may not exceed $100 million, and is reduced if capacity for one of such years is less than a defined base year period capacity.
As of December 31, 2013, American reached an agreement with Japan Airlines to settle the liability for $90 million.
The liability is expected to be settled in 2015.


Approximately 4,900 employees are represented by the International Brotherhood of Electrical Workers Union, the Utility Workers Union of America, and the International Brotherhood of Teamsters Union.
Entergy Corporation and Subsidiaries Management's Financial Discussion and Analysis 8 ?
the deferral in August 2004 of $7.5 million of fossil plant maintenance and voluntary severance program costs at Entergy New Orleans as a result of a stipulation approved by the City Council.2003 Compared to 2002 Net revenue, which is Entergy's measure of gross margin, consists of operating revenues net of: 1) fuel, fuel-related, and purchased power expenses and 2) other regulatory credits.
Following is an analysis of the change in net revenue comparing 2003 to 2002.


| December 31, 2018-1 | Fair Value | Level 1 | (in millions) | Assets: | Fixed maturities, held-to-maturity-3 | Assets supporting experience-rated contractholder liabilities | Commercial mortgage and other loans | Policy loans | Other invested assets | Short-term investments | Cash and cash equivalents | Accrued investment income | Other assets | Total assets | Liabilities: | Policyholders’ account balances—investment contracts | Securities sold under agreements to repurchase | Cash collateral for loaned securities | Short-term debt | Long-term debt-5 | Notes issued by consolidated VIEs | Other liabilities | Separate account liabilities—investment contracts | Total liabilities |


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


| One-Percentage Point | (Millions) | Increase (decrease) in the aggregate of service and interest cost components | Increase (decrease) in the benefit obligation |


Costs and Expenses Cost of Revenue Cost of revenue for fiscal 2018 increased by $28.0 million, or 40%, to $98.6 million from $70.6 million for fiscal 2017.
Gross margin was 83% for fiscal 2018 and 84% for fiscal 2017.
The increase in cost of revenue was related to increased growing demand for Impella devices and higher production volume and costs to support growing demand for our Impella devices.
The decrease in gross margin was primarily due to an increased investment in direct labor and overhead as we expand our manufacturing capacity, increased shipments of AIC consoles and geographic mix.
Research and Development Expenses Research and development expenses for fiscal 2018 increased by $8.9 million, or 13%, to $75.3 million from $66.4 million for fiscal 2017.
The increase in research and development expenses was primarily due to product development initiatives on our existing products, such as optical sensor technology, product initiatives, such as Impella 5.5TM and Impella ECPTM devices, the expansion of our engineering organization, increased clinical spending primarily related to our STEMI trial and cVAD registry and our continnued focus on quality initiatives for our Impella devices.
We expect research and development expenses to continue to increase as we continue to increase clinical spending related to our cVAD registry and the STEMI trial and incur additional costs as we continue to ffocus on engineering initiatives to improve our existing products and develop new technologies.


Our capital lease obligations relate primarily to leases on aircraft.
Capital leases, operating leases, and purchase commitments, as well as our debt principal obligations, are discussed further in Note 7 to our consolidated financial statements.
The amount of interest on our debt was calculated as the contractual interest payments due on our fixed-rate debt, in addition to interest on variable rate debt that was calculated based on interest rates as of December 31, 2010.
The calculations of debt interest take into account the effect of interest rate swap agreements.
For debt denominated in a foreign currency, the U. S.  Dollar equivalent principal amount of the debt at the end of the year was used as the basis to calculate future interest payments.
Purchase commitments represent contractual agreements to purchase goods or services that are legally binding, the largest of which are orders for aircraft, engines, and parts.
As of December 31, 2010, we have firm commitments to purchase 20 Boeing 767-300ER freighters to be delivered between 2011 and 2013, and two Boeing 747-400F aircraft scheduled for delivery during 2011.
These aircraft purchase orders will provide for the replacement of existing capacity and anticipated future growth.
Pension fundings represent the anticipated required cash contributions that will be made to our qualified pension plans.
These contributions include those to the UPS IBT Pension Plan, which was established upon ratification of the national master agreement with the Teamsters, as well as the UPS Pension Plan.
These plans are discussed further in Note 5 to the consolidated financial statements.
The pension funding requirements were estimated under the provisions of the Pension Protection Act of 2006 and the Employee Retirement Income Security Act of 1974, using discount rates, asset returns, and other assumptions appropriate for these plans.
To the extent that the funded status of these plans in future years differs from our current projections, the actual contributions made in future years could materially differ from the amounts shown in the table above.
Additionally, we have not included minimum funding requirements beyond 2015, because these projected contributions are not reasonably determinable.
We are not subject to any minimum funding requirement for cash contributions in 2011 in the UPS Retirement Plan or UPS Pension Plan.
The amount of any minimum funding requirement, as applicable, for these plans could change significantly in future periods, depending on many factors, including future plan asset returns and discount rates.
A sustained significant decline in the world equity markets, and the resulting impact on our pension assets and investment returns, could result in our domestic pension plans being subject to significantly higher minimum funding requirements.
Such an outcome could have a material adverse impact on our financial position and cash flows in future periods.
The contractual payments due for “other liabilities” primarily include commitment payments related to our investment in certain partnerships.
The table above does not include approximately $284 million of liabilities for
forward starting swaps and similar instruments to lock in all or a portion of the borrowing cost of anticipated debt issuances.
Our floating rate debt and interest rate swaps subject us to risk resulting from changes in short-term (primarily LIBOR) interest rates.
We also are subject to interest rate risk with respect to our pension and postretirement benefit obligations, as changes in interest rates will effectively increase or decrease our liabilities associated with these benefit plans, which also results in changes to the amount of pension and postretirement benefit expense recognized in future periods.
We have investments in debt and preferred equity securities (including auction rate securities), as well as cash-equivalent instruments, some of which accrue income at variable rates of interest.
Additionally, we hold a portfolio of finance receivables that accrue income at fixed and floating rates of interest.
Equity Price Risk We hold investments in various common equity securities that are subject to price risk.
These securities are primarily in the form of equity index funds.
Credit Risk The forward contracts, swaps, and options previously discussed contain an element of risk that the counterparties may be unable to meet the terms of the agreements.
However, we minimize such risk exposures for these instruments by limiting the counterparties to financial institutions that meet established credit guidelines.
We do not expect to incur any material losses as a result of counterparty default.
Sensitivity Analysis The following analysis provides quantitative information regarding our exposure to commodity price risk, foreign currency exchange risk, interest rate risk, and equity price risk embedded in our existing financial instruments.
We utilize valuation models to evaluate the sensitivity of the fair value of financial instruments with exposure to market risk that assume instantaneous, parallel shifts in exchange rates, interest rate yield curves, and commodity and equity prices.
For options and instruments with non-linear returns, models appropriate to the instrument are utilized to determine the impact of market shifts.
There are certain limitations inherent in the sensitivity analyses presented, primarily due to the assumption that exchange rates change in a parallel fashion and that interest rates change instantaneously.
In addition, the analyses are unable to reflect the complex market reactions that normally would arise from the market shifts modeled.
While this is our best estimate of the impact of the specified interest rate scenarios, these estimates should not be viewed as forecasts.
We adjust the fixed and floating interest rate mix of our interest rate sensitive assets and liabilities in response to changes in market conditions.
Additionally, changes in the fair value of foreign currency derivatives and commodity derivatives are offset by changes in the cash flows of the underlying hedged foreign currency and commodity transactions.


The increase in base rates was effective January 2003 as approved by the MPSC.
Gross operating revenue, fuel and purchased power expenses, and other regulatory charges (credits) Gross operating revenues increased primarily due to an increase in base rates effective January 2003 and an increase of $29.7 million in fuel cost recovery revenues due to quarterly changes in the fuel factor resulting from the increases in market prices of natural gas and purchased power.
This increase was partially offset by a decrease of $35.9 million in gross wholesale revenue as a result of decreased generation and purchases that resulted in less energy available for resale sales.
Fuel and fuel-related expenses decreased primarily due to the decreased recovery of fuel and purchased power costs and decreased generation, partially offset by an increase in the market price of purchased power.
Other regulatory charges increased primarily due to over-recovery of capacity charges related to the Grand Gulf rate rider and the cessation of the Grand Gulf Accelerated Recovery Tariff that was suspended in July 2003.
Other Income Statement Variances 2004 Compared to 2003 Other operation and maintenance expenses increased primarily due to: ?
an increase of $6.6 million in customer service support costs; and ?
an increase of $3.7 million in benefit costs.  .
The increase was partially offset by the absence of the voluntary severance program accruals of $7.1 million that occurred in 2003.
Taxes other than income taxes increased primarily due to a higher assessment of ad valorem and franchise taxes compared to the same period in 2003.2003 Compared to 2002 Other operation and maintenance expenses increased primarily due to: ?
voluntary severance program accruals of $7.1 million; and ?
an increase of $4.4 million in benefit costs.


| September 30, 2008 September 30, 2009 September 30, 2010 September 30, 2011 September 30, 2012 September 30, 2013 | Apple Inc. | S&P 500 Index | S&P Computer Hardware Index | Dow Jones US Technology Supersector Index |


| For the Three Months Ended or as of December | $ in millions | Tier 1 capital | Average total assets | Deductions from Tier 1 capital | Average adjusted total assets | Off-balance-sheetexposures | Total supplementary leverage exposure | Supplementary leverage ratio |


| Year ended December 31, (in millions) 2008 2007 2006 | Fair value hedge ineffective netgains(a) | Cash flow hedge ineffective netgains(a) | Cash flow hedging net gains onforecasted transactions that failed to occur |


| Three Months Ended | Dec. 31, 2017 | (Unaudited, in thousands, except per share data) | Consolidated Statement of Operations Data: | Revenue | Advertising services | Data licensing and other | Total revenue | Costs and expenses-1 | Cost of revenue | Research and development | Sales and marketing | General and administrative | Total costs and expenses | Income (loss) from operations | Interest expense | Other income (expense), net(2) | Income (loss) before income taxes | Provision for income taxes | Net income (loss) | Net income (loss) per share attributable to common stockholders: | Basic | Diluted | Other Financial Information: | Adjusted EBITDA-3 | Non-GAAP net income-4 |


| Property and equipment $870 | Franchise-related customer relationships | Cable franchise rights | Goodwill | Other assets | Total liabilities | Net assets acquired | December 31, 2017 | Senior Notes | 2020 | 2021 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Subordinated Notes | 2023 |


| 2015 2016 2017 | Basic shares outstanding | Dilutive shares | Diluted shares outstanding | Accounts receivable | Inventory | Property, plant & equipment | Goodwill | Intangibles | Other assets | Total assets | Accounts payable | Other current liabilities | Deferred taxes and other liabilities | Cash paid, net of cash acquired | U.S. Plans | 2016 | Projected benefit obligation, beginning | Service cost | Interest cost | Actuarial (gain) loss | Benefits paid | Settlements | Acquisitions (Divestitures), net | Foreign currency translation and other | Projected benefit obligation, ending | Fair value of plan assets, beginning | Actual return on plan assets | Employer contributions | Benefits paid | Settlements | Acquisitions (Divestitures), net | Foreign currency translation and other | Fair value of plan assets, ending | Net amount recognized in the balance sheet | Location of net amount recognized in the balance sheet: | Noncurrent asset | Current liability | Noncurrent liability | Net liability held-for-sale | Net amount recognized in the balance sheet | Pretax accumulated other comprehensive loss |


| Change in Assumption (a) EstimatedIncrease/(Decrease)to 2015PensionExpense(In millions) | .5% decrease in discount rate | .5% decrease in expected long-term return on assets | .5% increase in compensation rate |


| December 31, | 2008 | Sector: | U.S. corporate securities | Foreign corporate securities | Residential mortgage-backed securities | Asset-backed securities | Commercial mortgage-backed securities | State and political subdivision securities | Foreign government securities | Other | Total | Industry: | Mortgage-backed | Finance | Asset-backed | Consumer | Utility | Communication | Industrial | Foreign government | Other | Total |


NOTE 8.
ACQUISITIONS During fiscal 2017, Cadence completed two business combinations for total cash consideration of $142.8 million, after taking into account cash acquired of $4.2 million.
The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition dates.
Cadence recorded a total of $76.4 million of acquired intangible assets (of which $71.5 million represents in-process technology), $90.2 million of goodwill and $19.6 million of net liabilities consisting primarily of deferred tax liabilities.
Cadence will also make payments to certain employees, subject to continued employment and other performance-based conditions, through the fourth quarter of fiscal 2020.
During fiscal 2016, Cadence completed two business combinations for total cash consideration of $42.4 million, after taking into account cash acquired of $1.8 million.
The total purchase consideration was allocated to the assets acquired and liabilities assumed based on their respective estimated fair values on the acquisition dates.
Cadence recorded a total of $23.6 million of goodwill, $23.2 million of acquired intangible assets and $2.6 million of net liabilities consisting primarily of deferred revenue.
Cadence will also make payments to certain employees, subject to continued employment and other conditions, through the second quarter of fiscal 2019.
A trust for the benefit of the children of Lip-Bu Tan, Cadence’s Chief Executive Officer (“CEO”) and director, owned less than 3% of nusemi inc, one of the companies acquired in 2017, and less than 2% of Rocketick Technologies Ltd. , one of the companies acquired in 2016.
Mr.  Tan and his wife serve as co-trustees of the trust and disclaim pecuniary and economic interest in the trust.
The Board of Directors of Cadence reviewed the transactions and concluded that it was in the best interests of Cadence to proceed with the transactions.
Mr.  Tan recused himself from the Board of Directors’ discussion of the valuation of nusemi inc and Rocketick Technologies Ltd.  and on whether to proceed with the transactions.
Acquisition-related Transaction Costs There were no direct transaction costs associated with acquisitions during fiscal 2018.
Transaction costs associated with acquisitions were $0.6 million and $1.1 million during fiscal 2017 and 2016, respectively.
These costs consist of professional fees and administrative costs and were expensed as incurred in Cadence’s consolidated income statements.


| Contractual Obligations Total Less Than   One Year More Than   One Year and   Less Than   Three Years More Than   Three Years   and Less   Than Five   Years More Than   Five Years | (In millions) | Future policy benefits-1 | Policyholder account balances-2 | Other policyholder liabilities-3 | Short-term debt-4 | Long-term debt-4 | Junior subordinated debt securities-4 | Shares subject to mandatory redemption-4 | Payables for collateral under securities loaned and other transactions-5 | Commitments to lend funds-6 | Operating leases-7 | Other-8 | Total |


| November 1, 2010  (In millions) | Cash (includes $396 million of contractual purchase price adjustments) | MetLife, Inc.’s common stock (78,239,712 shares at $40.90 per share) | MetLife, Inc.’s Convertible Preferred Stock | MetLife, Inc.’s Equity Units ($3.0 billion aggregate stated amount) | Total purchase price |


Liquidity and Capital Resources Overview of Liquidity As of December 30, 2016, we had $376 million in cash and cash equivalents.
In addition, in August 2016, we entered into a secured revolving credit facility which can provide up to $750 million in secured borrowing capacity, if required.
This new credit facility replaced the previous unsecured credit facility held that provided $500 million of borrowing capacity.
During fiscal 2016 and the 11-month period ended January 1, 2016, there were no borrowings outstanding under either of the credit facilities and we were in compliance with the financial covenants.
In August 2016, our Board of Directors declared a special dividend of $13.64 per share of Leidos common stock.
Consequently, on August 22, 2016, we paid $993 million to stockholders of record as of August 15, 2016, and accrued $29 million of dividend equivalents with respect to the outstanding unvested equity awards.
In addition, we paid quarterly dividends of $142 million, $93 million and $95 million for fiscal 2016, the 11-month period ended January 1, 2016, and fiscal 2015, respectively.
At December 30, 2016, and January 1, 2016, we had outstanding debt of $3.3 billion and $1.1 billion, respectively.
The notes outstanding as of December 30, 2016, contain financial covenants and customary restrictive covenants.
We were in compliance with all covenants as of December 30, 2016.
In connection with the Transactions, Leidos has incurred $2.5 billion of new indebtedness in the form of term loans (see
Note 2Acquisitions


| 2011-1 2010-1 (2) 2009-1 (2) 2008-2 2007-2 | STATEMENTS OF OPERATIONS DATA | Net sales | Cost of products sold | Gross margin | Selling, general and administrative expenses | Impairment charges | Restructuring costs-3 | Operating income | Nonoperating expenses: | Interest expense, net | Losses related to extinguishments of debt | Other expense (income), net | Net nonoperating expenses | Income before income taxes | Income taxes | Income (loss) from continuing operations | (Loss) income from discontinued operations, net of tax(4) | Net income (loss) | Net income noncontrolling interests | Net income (loss) controlling interests | Weighted-average shares outstanding: | Basic | Diluted | Earnings (loss) per share: | Basic: | Income (loss) from continuing operations | (Loss) income from discontinued operations | Net income (loss) controlling interests | Diluted: | Income (loss) from continuing operations | (Loss) income from discontinued operations | Net income (loss) controlling interests | Dividends | BALANCE SHEET DATA | Inventories, net | Working capital-5 | Total assets | Short-term debt, including current portion of long-term debt | Long-term debt, net of current portion | Total stockholders’ equity | 2011 | Accounts receivable | Inventory | Accounts payable | Cash conversion cycle | U.S. | Pension plan assets and obligations, net: | Prepaid benefit cost | Accrued current benefit cost | Accrued noncurrent benefit cost | Net liability recognized in the Consolidated Balance Sheet | U.S. | Other postretirement benefit obligations: | Accrued current benefit cost | Accrued noncurrent benefit cost | Liability recognized in the Consolidated Balance Sheet | 2011 | Net pension cost | Net postretirement benefit costs | Total | Impact on 2011Expense | 25 basis point decrease in discount rate | 25 basis point increase in discount rate | 25 basis point decrease in expected return on assets | 25 basis point increase in expected return on assets |


Table 2: The total fair value of restricted stock, restricted stock units, and performance shares that vested during the years ended December 31, 2012, 2011 and 2010, was $20.9 million, $11.6 million and $10.3 million, respectively.
Eligible employees may acquire shares of Class A common stock using after-tax payroll deductions made during consecutive offering periods of approximately six months in duration.
Shares are purchased at the end of each offering period at a price of 90% of the closing price of the Class A common stock as reported on the NASDAQ Global Select Market.
Compensation expense is recognized on the dates of purchase for the discount from the closing price.
In 2012, 2011 and 2010, a total of 27,768, 32,085 and 21,855 shares, respectively, of Class A common stock were issued to participating employees.
These shares are subject to a six-month holding period.
Annual expense of $0.1 million, $0.2 million and $0.1 million for the purchase discount was recognized in 2012, 2011 and 2010, respectively.
Non-executive directors receive an annual award of Class A common stock with a value equal to $75,000.
Non-executive directors may also elect to receive some or all of the cash portion of their annual stipend, up to $25,000, in shares of stock based on the closing price at the date of distribution.
As a result, 40,260, 40,585 and 37,350 shares of Class A common stock were issued to non-executive directors during 2012, 2011 and 2010, respectively.
These shares are not subject to any vesting restrictions.
Expense of $2.2 million, $2.1 million and $2.4 million related to these stock-based payments was recognized for the years ended December 31, 2012, 2011 and 2010, respectively.19.
FAIR VALUE MEASUREMENTS In general, the company uses quoted prices in active markets for identical assets to determine the fair value of marketable securities and equity investments.
Level 1 assets generally include U. S.  Treasury securities, equity securities listed in active markets, and investments in publicly traded mutual funds with quoted market prices.
If quoted prices are not available to determine fair value, the company uses other inputs that are directly observable.
Assets included in level 2 generally consist of assetbacked securities, municipal bonds, U. S.  government agency securities and interest rate swap contracts.
Asset-backed securities, municipal bonds and U. S.  government agency securities were measured at fair value based on matrix pricing using prices of similar securities with similar inputs such as maturity dates, interest rates and credit ratings.
The company determined the fair value of its interest rate swap contracts using standard valuation models with market-based observable inputs including forward and spot exchange rates and interest rate curves.


United States, fail to either complete treatment or show a long-term sustained response to therapy.
As a result, we believe new safe and effective treatment options for HCV infection are needed.
Telaprevir Development Program We are conducting three major Phase 2b clinical trials of telaprevir.
PROVE 1 is ongoing in the United States and PROVE 2 is ongoing in European Union, both in treatment-na?ve patients.
PROVE 3 has commenced and is being conducted with patients in North America and the European Union who did not achieve sustained viral response with previous interferon-based treatments.
PROVE 1 and PROVE 2 are fully enrolled, and we commenced patient enrollment in PROVE 3 in January 2007.
PROVE 1 and PROVE 2 We expect that together, the PROVE 1 and PROVE 2 clinical trials will evaluate rates of sustained viral response, or SVR, in approximately 580 treatment-na?ve patients infected with genotype 1 HCV, including patients who will receive telaprevir and patients in the control arms.
SVR is defined as undetectable viral levels 24 weeks after all treatment has ceased.
A description of each of the clinical trial arms for the PROVE 1 and PROVE 2 clinical trials, including the intended number of patients in each trial, is set forth in the following table:


| Year ended December 31,(in millions) 2012 2011 2010 | Ginnie Mae(b) | GSEs(c) | Other(c)(d) | Total |


MSRs Mortgage interest rates increased during the year ended December 31, 2013 and the Bancorp recognized a recovery of temporary impairment on servicing rights.
The Bancorp recognized temporary impairments in certain classes of the MSR portfolio during the year ended December 31, 2012 and the carrying value was adjusted to the fair value.
MSRs do not trade in an active, open market with readily observable prices.
While sales of MSRs do occur, the precise terms and conditions typically are not readily available.
Accordingly, the Bancorp estimates the fair value of MSRs using internal discounted cash flow models with certain unobservable inputs, primarily prepayment speed assumptions, discount rates and weighted average lives, resulting in a classification within Level 3 of the valuation hierarchy.
Refer to Note 11 for further information on the assumptions used in the valuation of the Bancorps MSRs.
The Secondary Marketing Department and Treasury Department are responsible for determining the valuation methodology for MSRs.
Representatives from Secondary Marketing, Treasury, Accounting and Risk Management are responsible for reviewing key assumptions used in the internal discounted cash flow model.
Two external valuations of the MSR portfolio are obtained from third parties that use valuation models in order to assess the reasonableness of the internal discounted cash flow model.
Additionally, the Bancorp participates in peer surveys that provide additional confirmation of the reasonableness of key assumptions utilized in the MSR valuation process and the resulting MSR prices.


| As of December 31, | 2018 | Balance Sheet Data: | Real estate, at cost | Total assets | Total debt | Total shareholders’ equity | Number of common shares outstanding |


| Millions 2012 2011 2010 | Beginning balance | Current year accruals | Changes in estimates for prior years | Payments | Ending balance at December 31 | Current portion, ending balance atDecember 31 |


| Year Ended December 31, 2015 | Fossil and Nuclear Plants | Net OwnedCapacity (MW) | (In thousands of MWh) | NRG Business | Gulf Coast | East | West | NRG Renew | NRG Yield(a) | Year Ended December 31, 2014 | Fossil and Nuclear Plants | Net OwnedCapacity (MW) | (In thousands of MWh) | NRG Business | Gulf Coast | East | West | NRG Renew | NRG Yield(a) |


Marathon maintains an equity compensation program for its non-employee directors under the Plan.
Pursuant to the program, non-employee directors must defer 50% of their annual retainers in the form of common stock units.
In addition, the program provides each non-employee director with a matching grant of up to 1,000 shares of common stock upon his or her initial election to the board if he or she purchases an equivalent number of shares within 60 days of joining the board.
Common stock units are book entry units equal in value to a share of stock.
During 2003, 15,799 shares of stock were issued; during 2002, 14,472 shares of stock were issued and during 2001, 12,358 shares of stock were issued.26.
Stockholder Rights Plan In 2002, the Marathon’s stockholder rights plan (the Rights Plan), was amended due to the Separation.
In January 2003, the expiration date of the Rights Plan was accelerated to January 31, 2003.27.
Leases Marathon leases a wide variety of facilities and equipment under operating leases, including land and building space, office equipment, production facilities and transportation equipment.
Most long-term leases include renewal options and, in certain leases, purchase options.
Future minimum commitments for capital lease obligations (including sale-leasebacks accounted for as financings) and for operating lease obligations having remaining noncancelable lease terms in excess of one year are as follows:


| Years Ended December 31, Change | (in millions) | Underwriting results: | Net premiums written | (Increase) decrease in unearned premiums | Net premiums earned | Losses and loss adjustment expenses incurred | Acquisition expenses: | Amortization of deferred policy acquisition costs | Other acquisition expenses | Total acquisition expenses | General operating expenses | Underwriting loss | Net investment income | Pre-tax operating income (loss) |


| December 31, | 2016 | (in millions) | Fixed maturities: | Public, available-for-sale, at fair value | Public, held-to-maturity, at amortized cost | Private, available-for-sale, at fair value | Private, held-to-maturity, at amortized cost | Trading account assets supporting insurance liabilities, at fair value | Other trading account assets, at fair value | Equity securities, available-for-sale, at fair value | Commercial mortgage and other loans, at book value | Policy loans, at outstanding balance | Other long-term investments-1 | Short-term investments | Total Japanese general account investments |


| (Dollars in millions) 2015 2014 | Sales and trading revenue | Fixed-income, currencies and commodities | Equities | Total sales and trading revenue | Sales and trading revenue, excluding net DVA-3 | Fixed-income, currencies and commodities | Equities | Total sales and trading revenue, excluding net DVA |


| Year Ended December 31, | 2004 | $ | ($ in thousands) | Expenses | Employee compensation and benefits | Depreciation and amortization | Technology and communications | Professional and consulting fees | Warrant-related expense | Marketing and advertising | Moneyline revenue share | General and administrative | Total expenses |


Long-term product offerings include active and index strategies.
Our active strategies seek to earn attractive returns in excess of a market benchmark or performance hurdle while maintaining an appropriate risk profile.
We offer two types of active strategies: those that rely primarily on fundamental research and those that utilize primarily quantitative models to drive portfolio construction.
In contrast, index strategies seek to closely track the returns of a corresponding index, generally by investing in substantially the same underlying securities within the index or in a subset of those securities selected to approximate a similar risk and return profile of the index.
Index strategies include both our non-ETF index products and iShares ETFs.
Although many clients use both active and index strategies, the application of these strategies may differ.
For example, clients may use index products to gain exposure to a market or asset class, or may use a combination of index strategies to target active returns.
In addition, institutional non-ETF index assignments tend to be very large (multi-billion dollars) and typically reflect low fee rates.
This has the potential to exaggerate the significance of net flows in institutional index products on BlackRocks revenues and earnings.
Equity Year-end 2016 equity AUM totaled $2.657 trillion, reflecting net inflows of $51.4 billion.
Net inflows included $74.9 billion into iShares, driven by net inflows into the Core ranges and broad developed and emerging market equities.
iShares net inflows were partially offset by active and non-ETF index net outflows of $20.2 billion and $3.3 billion, respectively.
BlackRocks effective fee rates fluctuate due to changes in AUM mix.
Approximately half of BlackRocks equity AUM is tied to international markets, including emerging markets, which tend to have higher fee rates than U. S.  equity strategies.
Accordingly, fluctuations in international equity markets, which may not consistently move in tandem with U. S.  markets, have a greater impact on BlackRocks effective equity fee rates and revenues.
Fixed Income Fixed income AUM ended 2016 at $1.572 trillion, reflecting net inflows of $120.0 billion.
In 2016, active net inflows of $16.6 billion were diversified across fixed income offerings, and included strong inflows from insurance clients.
Fixed income iShares net inflows of $59.9 billion were led by flows into the Core ranges, emerging market, high yield and corporate bond funds.
Non-ETF index net inflows of $43.4 billion were driven by demand for liability-driven investment solutions.
Multi-Asset BlackRocks multi-asset team manages a variety of balanced funds and bespoke mandates for a diversified client base that leverages our broad investment expertise in global equities, bonds, currencies and commodities, and our extensive risk management capabilities.
Investment solutions might include a combination of long-only portfolios and alternative investments as well as tactical asset allocation overlays.
Component changes in multi-asset AUM for 2016 are presented below


| Year ended December 31,(in millions) 2014 2013 2012 | Credit adjustments: | Derivatives CVA | Derivatives DVA and FVA(a) | Structured notes DVA and FVA(b) |


| In millions of dollars 2009 2008 2007 % Change 2009 vs. 2008 % Change 2008 vs. 2007 | Net interest revenue | Non-interest revenue | Total revenues, net of interest expense | Total operating expenses | Provisions for credit losses and for benefits and claims | Income before taxes and noncontrolling interests | Income taxes | Income from continuing operations | Net income attributable to noncontrolling interests | Net income | Average assets(in billions of dollars) | Return on assets | Revenues by region | North America | EMEA | Latin America | Asia | Total revenues | Income from continuing operations by region | North America | EMEA | Latin America | Asia | Total net income from continuing operations | Key indicators(in billions of dollars) | Average deposits and other customer liability balances | EOP assets under custody(in trillions of dollars) |


| Property Partner Ownership Interest Economic Interest Square Feet Acquired Acquisition Price-1 | 1221 Avenue of the Americas-2 | 1515 Broadway-3 | 100 Park Avenue | 379 West Broadway | 21 West 34thStreet-4 | 800 Third Avenue-5 | 521 Fifth Avenue | One Court Square | 1604-1610 Broadway-6 | 1745 Broadway-7 | 1 and 2 Jericho Plaza | 2 Herald Square-8 | 885 Third Avenue-9 | 16 Court Street | The Meadows-10 | 388 and 390 Greenwich Street-11 | 27-29 West 34thStreet-12 | 1551-1555 Broadway-13 | 717 Fifth Avenue-14 |


| Year Ended December 31 | 2010 | Income before income taxes and equity in net income of unconsolidated investments: | Domestic | Foreign | Total | Current income tax expense (benefit): | Federal(a) | State | Foreign | Total | Deferred income tax expense (benefit): | Federal | State | Foreign | Total | Total income tax expense (benefit) |


| Shares Repurchased-1 Average Price per Share-2 Value of Shares Repurchased-2 Remaining Amount Authorized | Balance as of January 1, 2018 | Authorization of additional plan in January 2018 | Repurchase of shares of common stock | Balance as of December 31, 2018 |


Included in deferred income taxes as of December 31, 2008 are tax benefits for U. S.  and non-U.
S.  net operating loss carryforwards totaling $89 million (net of applicable valuation allowances of $136 million).
Certain of the losses can be carried forward indefinitely and others can be carried forward to various dates through 2028.
In addition, the Company had general business and foreign tax credit carryforwards of $65 million at December 31, 2008 and also has recorded a deferred tax asset for foreign credits of $49 million related to the indirect impact of certain unrecognized tax benefits (see below).
The Company adopted the provisions of FASB Interpretation No.48, Accounting for Uncertainty in Income Taxes, on January 1, 2007.
As a result of the implementation of Interpretation No.48, the Company recognized a decrease in the liability for unrecognized tax benefits of $63 million, which was accounted for as an increase to the January 1, 2007 balance of retained earnings.
As of December 31, 2007, gross unrecognized tax benefits totaled $475 million ($408 million, net of offsetting indirect tax benefits and including $81 million associated with potential interest and penalties).
As of December 31, 2008, gross unrecognized tax benefits totaled $447 million ($426 million, net of offsetting indirect tax benefits and including $89 million associated with potential interest and penalties).
Upon adoption of SFAS No 141R effective January 1, 2009 (see Note 19) all unrecognized tax benefits at December 31, 2008 (including accrued interest and penalties) will impact the effective rate if ultimately recognized.
Unrecognized tax benefits and associated accrued interest and penalties are included in “Taxes, income and other” in accrued expenses as detailed in Note 7.
The Company recognizes potential accrued interest and penalties associated with unrecognized tax positions within its global operations in income tax expense.
The Company recognized approximately $19 million and $24 million in potential interest and penalties associated with uncertain tax positions during 2008 and 2007, respectively.
To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be reduced and reflected as a reduction of the overall income tax provision.
A reconciliation of the beginning and ending amount of unrecognized tax benefits, excluding amounts accrued for potential interest and penalties, is as follows ($ in thousands):


| 2011  Permitted w/o   Approval -1 2010 2009 | Company | (In millions) | Metropolitan Life Insurance Company | American Life Insurance Company -5 | MetLife Insurance Company of Connecticut | Metropolitan Property and Casualty Insurance Company | Metropolitan Tower Life Insurance Company | December 31, | 2010 | Estimated | NAIC | Rating | (In millions) | 1 | 2 | 3 | 4 | 5 | 6 | Total fixed maturity securities |


of accelerated depreciation tax benefits from certain regulated utility capital investments acquired after September 27, 2017, and the continuation of certain rate normalization requirements related to the flow back of excess deferred taxes.
Ameren (parent) is subject to provisions of the TCJA that limit the deductibility of interest expense, but such limitation did not affect Ameren in 2018.
In accordance with GAAP, the tax effects of changes in tax laws must be recognized in the period in which the law is enacted.
GAAP also requires deferred tax assets and liabilities to be measured at the tax rate that is expected to apply when temporary differences are realized or settled.
Thus, in December 2017, the Ameren Companies’ deferred taxes were revalued using the new tax rate.
To the extent deferred tax balances are included in rate base, the revaluation of deferred taxes was deferred as a regulatory asset or liability on the balance sheet and will be collected from, or refunded, to customers.
For deferred tax balances not included in rate base, the revaluation of deferred taxes was recorded as income tax expense.
As of December 31, 2017, the Ameren Companies made reasonable estimates for the measurement and accounting of certain effects of the TCJA, which have been reflected in their financial statements.
We recorded provisional estimates primarily related to depreciation transition rules and 2017 property, plant, and equipment, compensation, and pension-related deductions which would impact our revaluation of deferred taxes at December 31, 2017.
The TCJA had the following provisional effects on the Ameren Companies for the year ended December 31, 2017:


| (Dollars in millions) 2007 2006 | Investment banking income | Advisory fees | Debt underwriting | Equity underwriting | Total investment banking income | Sales and trading revenue | Fixed income: | Liquid products | Credit products | Structured products | Total fixed income | Equity income | Total sales and trading revenue | Total Capital Markets and Advisory Services market-based revenue-1 |


| 2011 2010 2009 2008 2007 | December 31Dollars in millions | Commercial | Commercial real estate | Equipment lease financing | Consumer (a) | Residential real estate | Total |


| Copper Gold Molybdenum | North America | South America | Indonesia | Africa | 100% |


97% of its carrying value.
The Columbia Fund is being liquidated with distributions to us occurring and expected to be fully liquidated during calendar 2008.
Since December 2007, we have received disbursements of approximately $20.7 million from the Columbia Fund.
Our operating activities during the year ended March 31, 2008 used cash of $28.9 million as compared to $19.8 million during the same period in the prior year.
Our fiscal 2008 net loss of $40.9 million was the primary cause of our cash use from operations, attributed to increased investments in our global distribution as we continue to drive initiatives to increase recovery awareness as well as our investments in research and development to broaden our circulatory care product portfolio.
In addition, our inventories used cash of $11.1 million during fiscal 2008, reflecting our inventory build-up to support anticipated increases in global demand for our products and our accounts receivable also increased as a result of higher sales volume resulting in a use of cash of $2.8 million in fiscal 2008.
These decreases in cash were partially offset by an increase in accounts payable and accrued expenses of $5.6 million, non-cash adjustments of $5.4 million related to stock-based compensation expense, $6.1 million of depreciation and amortization and $5.0 million for the change in fair value of WorldHeart note receivable and warrant.
Our investing activities during the year ended March 31, 2008 used cash of $40.9 million as compared to cash provided by investing activities of $15.1 million during the year ended March 31, 2007.
Cash used by investment activities for fiscal 2008 consisted primarily of $49.3 million for the recharacterization of the Columbia Fund to short-term marketable securities, $17.1 million for the purchase of short-term marketable securities, $3.8 million related to expenditures for property and equipment and $5.0 million for note receivable advanced to WorldHeart.
These amounts were offset by $34.5 million of proceeds from short-term marketable securities.
In June 2008, we received 510(k) clearance of our Impella 2.5, triggering an obligation to pay $5.6 million of contingent payments in accordance with the May 2005 acquisition of Impella.
These contingent payments may be made, at our option, with cash, or stock or by a combination of cash or stock under circumstances described in the purchase agreement.
It is our intent to satisfy this contingent payment through the issuance of shares of our common stock.
Our financing activities during the year ended March 31, 2008 provided cash of $2.1 million as compared to cash provided by financing activities of $66.6 million during the same period in the prior year.
Cash provided by financing activities for fiscal 2008 is comprised primarily of $2.8 million attributable to the exercise of stock options, $0.9 million related to the proceeds from the issuance of common stock, $0.3 million related to proceeds from the employee stock purchase plan, partially offset by $1.9 million related to the repurchase of warrants.
The $64.5 million decrease compared to the prior year is primarily due to $63.6 million raised from the public offering in fiscal 2007.
We disbursed approximately $2.2 million of cash for the warrant repurchase and settlement of certain litigation.
Capital expenditures for fiscal 2009 are estimated to be approximately $3.0 to $6.0 million.


| Years ended December 31, Change | 2006 | Loss from continuing operations before provision for income taxes | Provision for income taxes — continuing operations | (Benefit) provision for income taxes — discontinued operations | Total provision for income taxes |


| Net sales Segment income | (Millions) | Industrial Coatings | Performance and Applied Coatings | Optical and Specialty Materials | Commodity Chemicals | Glass |


INCOME TAXES The Company has filed, for prior taxable years through its taxable year ended December 31, 2011, a consolidated U. S.  federal tax return, which includes all of its wholly owned domestic subsidiaries.
For its taxable year commencing January 1, 2012, the Company intends to file as a REIT, and its domestic TRSs intend to file as C corporations.
The Company also files tax returns in various states and countries.
The Companys state tax returns reflect different combinations of the Companys subsidiaries and are dependent on the connection each subsidiary has with a particular state.
The following information pertains to the Companys income taxes on a consolidated basis.
Fair value estimates consider the market in which the transactions are executed.
The market in which exchange-traded and over-the-counter transactions are executed is a factor in determining fair value.
We utilize third-party references for pricing points from NYMEX and third-party over-the-counter brokers to establish the commodity pricing and volatility curves.
We believe the reported transactions from these sources are the most reflective of current market prices.
The estimate of fair value includes an adjustment for the liquidation of the position in an orderly manner over a reasonable period of time under current market conditions.
The fair value estimate also considers the risk of nonperformance based on credit considerations of the counterparty.
Credit Risk - We maintain credit policies with regard to our counterparties that we believe minimize overall credit risk.
These policies include an evaluation of potential counterparties financial condition (including credit ratings), collateral requirements under certain circumstances and the use of standardized agreements which allow for netting of positive and negative exposures associated with a single counterparty.
Our counterparties consist primarily of financial institutions, major energy companies, LDCs, electric utilities and commercial and industrial end-users.
This concentration of counterparties may impact our overall exposure to credit risk, either positively or negatively, in that the counterparties may be similarly affected by changes in economic, regulatory or other conditions.
Based on our policies, exposures, credit and other reserves, we do not anticipate a material adverse effect on our financial position or results of operations as a result of counterparty nonperformance.


| (In millions) December 31 UnitedStates Europe Africa OtherInt’l Total | 2007 | Proved properties | Unproved properties | Suspended exploratory wells | Total | Accumulated depreciation, depletion and amortization: | Proved properties | Unproved properties | Total | Net capitalized costs | 2006 | Proved properties | Unproved properties | Suspended exploratory wells | Total | Accumulated depreciation, depletion and amortization: | Proved properties | Unproved properties | Total | Net capitalized costs |


| Year ended December 31, | 2016 | (in millions) | Segment impacts of intercompany arrangements: | International Insurance | Retirement | Asset Management | Impact of intercompany arrangements-1 | Corporate and Other operations: | Impact of intercompany arrangements-1 | Settlement gains (losses) on forward currency contracts(2) | Net benefit (detriment) to Corporate and Other operations | Net impact on consolidated revenues and adjusted operating income |


| For the Years Ended December 31, | 2010 | (In thousands) | EBITDA | Interest expense, net | Income tax (provision) benefit, net | Depreciation and amortization | Net income (loss) attributable to DISH Network |


| Years Ended December 31, | 2011 | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Premiums | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest credited to fixed accounts | Benefits, claims, losses and settlement expenses | Amortization of deferred acquisition costs | Interest and debt expense | General and administrative expense | Total expenses | Operating earnings |


| December 31, (in millions) 2017 2016 | Interest rate | Credit derivatives | Foreign exchange | Equity | Commodity | Total, net of cash collateral | Liquid securities and other cash collateral held against derivative receivables(a) | Total, net of all collateral | 2017 | December 31, (in millions) | U.S. GAAP nettable derivative payables | Interest rate contracts: | OTC | OTC–cleared | Exchange-traded(a) | Total interest rate contracts | Credit contracts: | OTC | OTC–cleared | Total credit contracts | Foreign exchange contracts: | OTC | OTC–cleared | Exchange-traded(a) | Total foreign exchange contracts | Equity contracts: | OTC | Exchange-traded(a) | Total equity contracts | Commodity contracts: | OTC | Exchange-traded(a) | Total commodity contracts | Derivative payables with appropriate legal opinion | Derivative payables where an appropriate legal opinion has not been either sought or obtained | Total derivative payables recognized on the Consolidated balance sheets | Collateral not nettable on the Consolidated balance sheets(c)(d) | Net amounts | Year ended December 31, | Statutory U.S. federal tax rate | Increase/(decrease) in tax rate resulting from: | U.S. state and local income taxes, net of U.S. federal income tax benefit | Tax-exempt income | Non-U.S. subsidiary earnings(a) | Business tax credits | Nondeductible legal expense | Tax audit resolutions | Impact of the TCJA | Other, net | Effective tax rate |


affiliated company.
The loss recorded on the sale was approximately $14 million and is recorded as a loss on sale of assets and asset impairment expenses in the accompanying consolidated statements of operations.
In the second quarter of 2002, the Company recorded an impairment charge of approximately $40 million, after income taxes, on an equity method investment in a telecommunications company in Latin America held by EDC.
The impairment charge resulted from sustained poor operating performance coupled with recent funding problems at the invested company.
During 2001, the Company lost operational control of Central Electricity Supply Corporation (‘‘CESCO’’), a distribution company located in the state of Orissa, India.
CESCO is accounted for as a cost method investment.
In May 2000, the Company completed the acquisition of 100% of Tractebel Power Ltd (‘‘TPL’’) for approximately $67 million and assumed liabilities of approximately $200 million.
TPL owned 46% of Nigen.
The Company also acquired an additional 6% interest in Nigen from minority stockholders during the year ended December 31, 2000 through the issuance of approximately 99,000 common shares of AES stock valued at approximately $4.9 million.
With the completion of these transactions, the Company owns approximately 98% of Nigen’s common stock and began consolidating its financial results beginning May 12, 2000.
Approximately $100 million of the purchase price was allocated to excess of costs over net assets acquired and was amortized through January 1, 2002 at which time the Company adopted SFAS No.142 and ceased amortization of goodwill.
In August 2000, a subsidiary of the Company acquired a 49% interest in Songas Limited (‘‘Songas’’) for approximately $40 million.
The Company acquired an additional 16.79% of Songas for approximately $12.5 million, and the Company began consolidating this entity in 2002.
Songas owns the Songo Songo Gas-to-Electricity Project in Tanzania.
In December 2002, the Company signed a Sales Purchase Agreement to sell Songas.
The sale is expected to close in early 2003.
See Note 4 for further discussion of the transaction.


| Year ended December 31 | External Sales | 2009 | Residential Furnishings | Commercial Fixturing & Components | Industrial Materials | Specialized Products | Write-down of aluminum divestiture note | Intersegment eliminations | Adjustment to LIFO method | $3,055.1 | 2008 | Residential Furnishings | Commercial Fixturing & Components | Industrial Materials | Specialized Products | Intersegment eliminations | Adjustment to LIFO method | $4,076.1 | 2007 | Residential Furnishings | Commercial Fixturing & Components | Industrial Materials | Specialized Products | Intersegment eliminations | Adjustment to LIFO method | $4,250.0 |


| In millions 2018 2017 2016 | Smurfit-Kappa acquisition proposal costs | Environmental remediation reserve adjustment | Legal settlement | Write-off of certain regulatory pre-engineering costs | Total |


Provision for income taxes increased $1,791 million in 2012 from 2011 primarily due to the increase in pretax income from continuing operations, including the impact of the resumption of sales in Libya in the first quarter of 2012.
The following is an analysis of the effective income tax rates for 2012 and 2011:
The effective income tax rate is influenced by a variety of factors including the geographic sources of income and the relative magnitude of these sources of income.
The provision for income taxes is allocated on a discrete, stand-alone basis to pretax segment income and to individual items not allocated to segments.
The difference between the total provision and the sum of the amounts allocated to segments appears in the Corporate and other unallocated items shown in the reconciliation of segment income to net income below.
Effects of foreign operations – The effects of foreign operations on our effective tax rate increased in 2012 as compared to 2011, primarily due to the resumption of sales in Libya in the first quarter of 2012, where the statutory rate is in excess of 90 percent.
Change in permanent reinvestment assertion – In the second quarter of 2011, we recorded $716 million of deferred U. S.  tax on undistributed earnings of $2,046 million that we previously intended to permanently reinvest in foreign operations.
Offsetting this tax expense were associated foreign tax credits of $488 million.
In addition, we reduced our valuation allowance related to foreign tax credits by $228 million due to recognizing deferred U. S.  tax on previously undistributed earnings.
Adjustments to valuation allowances – In 2012 and 2011, we increased the valuation allowance against foreign tax credits because it is more likely than not that we will be unable to realize all U. S.  benefits on foreign taxes accrued in those years.
See Item 8.
Financial Statements and Supplementary Data - Note 10 to the consolidated financial statements for further information about income taxes.
Discontinued operations is presented net of tax, and reflects our downstream business that was spun off June 30, 2011 and our Angola business which we agreed to sell in 2013.
See Item 8.
Financial Statements and Supplementary Data – Notes 3 and 6 to the consolidated financial statements for additional information.