Ground Facilities We lease most of the land and buildings that we occupy.
Delta’s largest aircraft maintenance base, various computer, cargo, flight kitchen and training facilities and most of its principal offices are located at or near the Atlanta Airport, on land leased from the City of Atlanta generally under long-term leases.
Delta owns a portion of its principal offices, its Atlanta reservations center and other real property in Atlanta.
NWA owns its primary offices, which are located near the Minneapolis/St.
Paul International Airport, including its corporate offices located on a 160-acre site east of the airport.
Other NWA owned facilities include reservations centers in Baltimore, Maryland, Tampa, Florida, Minot, North Dakota and Chisholm, Minnesota, and a data processing center in Eagan, Minnesota.
NWA also owns property in Tokyo, including a 1.3-acre site in downtown Tokyo and a 33-acre land parcel, 512-room hotel and flight kitchen located near Tokyo’s Narita International Airport.
We lease ticket counter and other terminal space, operating areas and air cargo facilities in most of the airports that we serve.
At most airports, we have entered into use agreements which provide for the non-exclusive use of runways, taxiways, and other improvements and facilities; landing fees under these agreements normally are based on the number of landings and weight of aircraft.


Corporate Corporate expenses in 2016 benefited from the absence of transaction costs associated with the Norcraft acquisition ($15.1 million in 2015).
This benefit was offset by higher employee-related costs and lower defined benefit plan income.


| (Dollars in millions) Fiscal2012 Fiscal2011 Fiscal2010 2012-2011% Change 2011-2010% Change | Product revenue | Service and other revenue | Total segment revenue | % of total revenue | Segment operating income | % of related revenue |


| December 31, 2017 December 31, 2016 | Cash, cash equivalents and short-term investments | Trade accounts receivable, less allowances | Inventories | Prepaid expenses and other assets | Equity method investments | Other investments | Other assets | Property, plant and equipment — net | Bottlers' franchise rights with indefinite lives | Goodwill | Other intangible assets | Allowance for reduction of assets held for sale | Assets held for sale | Accounts payable and accrued expenses | Accrued income taxes | Other liabilities | Deferred income taxes | Liabilities held for sale |


Long-term borrowings at December 31, 2014 had a carrying value of $4.922 billion and a fair value of $5.309 billion determined using market prices at the end of December 2014.12.
Borrowings Short-Term Borrowings 2015 Revolving Credit Facility.
In March 2011, the Company entered into a five-year $3.5 billion unsecured revolving credit facility, which was amended in 2014, 2013 and 2012.
In April 2015, the Company entered into a five-year $3.5 billion unsecured revolving credit facility, which was amended in 2014, 2013 and 2012.
The 2015 credit facility permits the Company to request up to an additional $1.0 billion of borrowing capacity, subject to lender credit approval, increasing the overall size of the 2015 credit facility to an aggregate principal amount not to exceed $5.0 billion.
Interest on borrowings outstanding accrues at a rate based on the applicable London Interbank Offered Rate plus a spread.
The 2015 credit facility requires the Company not to exceed a maximum leverage ratio (ratio of net debt to earnings before interest, taxes, depreciation and amortization, where net debt equals total debt less unrestricted cash) of 3 to 1, which was satisfied with a ratio of less than 1 to 1 at December 31, 2015.
The 2015 credit facility provides back-up liquidity to fund ongoing working capital for general corporate purposes and various investment opportunities.
At December 31, 2015, the Company had no amount outstanding under the 2015 credit facility.
Commercial Paper Program.
On October 14, 2009, BlackRock established a commercial paper program (the CP Program) under which the Company could issue unsecured commercial paper notes (the CP Notes) on a private placement basis up to a maximum aggregate amount outstanding at any time of $4.0 billion as amended in April 2015.
The CP Program is currently supported by the 2015 credit facility.
At December 31, 2015, BlackRock had no CP Notes outstanding Long-Term Borrowings The carrying value and fair value of long-term borrowings estimated using market prices and foreign exchange rates at December 31, 2015 included the following:


Earnings Adjusted for Certain Items (Ongoing Earnings and Ongoing Diluted EPS) GAAP diluted EPS reflects the potential dilution that could occur if securities or other agreements to issue common stock (i. e. , common stock equivalents) were settled.
The weighted average number of potentially dilutive shares outstanding used to calculate Xcel Energy Inc. ’s diluted EPS is calculated using the treasury stock method.
Ongoing earnings reflect adjustments to GAAP earnings (net income) for certain items.
Ongoing diluted EPS is calculated by dividing the net income or loss of each subsidiary, adjusted for certain items, by the weighted average fully diluted Xcel Energy Inc.  common shares outstanding for the period.
Ongoing diluted EPS for each subsidiary is calculated by dividing the net income or loss of such subsidiary, adjusted for certain items, by the weighted average fully diluted Xcel Energy Inc.  common shares outstanding for the period.
We use these non-GAAP financial measures to evaluate and provide details of Xcel Energy’s core earnings and underlying performance.
We believe these measurements are useful to investors to evaluate the actual and projected financial performance and contribution of our subsidiaries.
For the year ended Dec.  31, 2017, Xcel Energy recognized an estimated one-time, non-cash, income tax expense of approximately $23 million for net excess deferred tax assets which may not be recovered from customers or not attributable to regulated operations, increased valuation allowances, etc.
due to the enactment of the TCJAin December 2017.
For the year ended Dec.  31, 2018, there were no such adjustments to GAAP earnings and therefore GAAP earnings equal ongoing earnings.
See Note 7 to the consolidated financial statements for further information.
Results of Operations Diluted EPS for Xcel Energy at Dec.  31:


settlements, and the expiration of statutes of limitation, the Company currently estimates that the amount of unrecognized tax benefits could be reduced by up to $365 million during the next twelve months, with no significant impact on earnings or cash tax payments.
While the Company believes that it is adequately accrued for possible audit adjustments, the final resolution of these examinations cannot be determined at this time and could result in final settlements that differ from current estimates.
The Company recorded an income tax provision for 2007 of $415 million, including a $41 million benefit related to the effective settlement of tax audits, and $8 million of other tax benefits.
Excluding the impact of special items, the tax provision was $423 million, or 30% of pre-tax earnings before minority interest.
The Company recorded an income tax provision for 2006 of $1.9 billion, consisting of a $1.6 billion deferred tax provision (principally reflecting deferred taxes on the 2006 Transformation Plan forestland sales) and a $300 million current tax provision.
The provision also includes an $11 million provision related to a special tax adjustment.
Excluding the impact of special items, the tax provision was $272 million, or 29% of pre-tax earnings before minority interest.
The Company recorded an income tax benefit for 2005 of $407 million, including a $454 million net tax benefit related to a special tax adjustment, consisting of a tax benefit of $627 million resulting from an agreement reached with the U. S. Internal Revenue Service concerning the 1997 through 2000 U. S. federal income tax audit, a $142 million charge for deferred taxes related to earnings repatriations under the American Jobs Creation Act of 2004, and $31 million of other tax charges.
Excluding the impact of special items, the tax provision was $83 million, or 20% of pre-tax earnings before minority interest.
International Paper has non-U.
S. net operating loss carryforwards of approximately $352 million that expire as follows: 2008 through 2017  $14 million and indefinite carryforwards of $338 million.
International Paper has tax benefits from net operating loss carryforwards for state taxing jurisdictions of approximately $258 million that expire as follows: 2008 through 2017$83 million and 2018 through 2027$175 million.
International Paper also has federal, non-U.
S. and state tax credit carryforwards that expire as follows: 2008 through 2017  $67 million, 2018 through 2027  $92 million, and indefinite carryforwards  $316 million.
Further, International Paper has state capital loss carryforwards that expire as follows: 2008 through 2017  $9 million.
Deferred income taxes are not provided for temporary differences of approximately $3.7 billion, $2.7 billion and $2.4 billion as of December 31, 2007, 2006 and 2005, respectively, representing earnings of non-U.
S. subsidiaries intended to be permanently reinvested.
Computation of the potential deferred tax liability associated with these undistributed earnings and other basis differences is not practicable.
NOTE 10 COMMITMENTS AND CONTINGENT LIABILITIES Certain property, machinery and equipment are leased under cancelable and non-cancelable agreements.
Unconditional purchase obligations have been entered into in the ordinary course of business, principally for capital projects and the purchase of certain pulpwood, wood chips, raw materials, energy and services, including fiber supply agreements to purchase pulpwood that were entered into concurrently with the 2006 Transformation Plan forestland sales (see Note 7).
At December 31, 2007, total future minimum commitments under existing non-cancelable operating leases and purchase obligations were as follows:


State and municipal securities Citigroup’s AFS state and municipal bonds consist mainly of bonds that are financed through Tender Option Bond programs.
The process for identifying credit impairment for bonds in this program as well as for bonds that were previously financed in this program is largely based on third-party credit ratings.
Individual bond positions must meet minimum ratings requirements, which vary based on the sector of the bond issuer.
The average portfolio rating, ignoring any insurance, is Aa3/AA-.
Citigroup monitors the bond issuer and insurer ratings on a daily basis.
In the event of a downgrade of the bond below the Aa3/AA-, the subject bond is specifically reviewed for potential shortfall in contractual principal and interest.
Citigroup has not recorded any credit impairments on bonds held as part of the Tender Option Bond program or on bonds that were previously held as part of the Tender Option Bond program.
The remainder of Citigroup’s AFS state and municipal bonds, outside of the above, are specifically reviewed for credit impairment based on instrument-specific estimates of cash flows, probability of default and loss given default.


| For the years ended December 31, (In millions, except per share amounts) 2009 2008 2007 2006 2005 | Ameren: | Operating revenues(a) | Operating income(a) | Net income attributable to Ameren Corporation(a) | Common stock dividends | Earnings per share – basic and diluted(a) | Common stock dividends per share | As of December 31: | Total assets | Long-term debt, excluding current maturities | Preferred stock subject to mandatory redemption | Total Ameren Corporation stockholders’ equity | UE: | Operating revenues | Operating income | Net income available to common stockholder | Dividends to parent | As of December 31: | Total assets | Long-term debt, excluding current maturities | Total stockholders’ equity | CIPS: | Operating revenues | Operating income | Net income available to common stockholder | Dividends to parent | As of December 31: | Total assets | Long-term debt, excluding current maturities | Total stockholders’ equity | Genco: | Operating revenues | Operating income | Net income | Dividends to parent | As of December 31: | Total assets | Long-term debt, excluding current maturities | Subordinated intercompany notes (current and long-term) | Total stockholder’s equity | CILCO: | Operating revenues | Operating income | Net income available to common stockholder | Dividends to parent | As of December 31: | Total assets | Long-term debt, excluding current maturities | Preferred stock subject to mandatory redemption | Total stockholders’ equity | IP: | Operating revenues | Operating income | Net income available to common stockholder | Dividends to parent | As of December 31: | Total assets | Long-term debt, excluding current maturities | Long-term debt to IP SPT, excluding current maturities | Total stockholders’ equity |


For the year ended December 31, 2013, an average of 3.1 million options to purchase shares of common stock were not included in the computation of diluted earnings per share as the exercise prices of these options were greater than the average market price of the common stock.
For the years ended December 31, 2012 and 2011, an average of 11.9 million and 13.2 million options, respectively, were not included.
During 2013, we repurchased 9.1 million shares of our common stock at an average price of $78.88 per share for a total cash outlay of $719.0 million, including commissions.
Effective January 1, 2014, we have a new share repurchase program that authorizes purchases of up to $1.0 billion with no expiration date.
No further purchases will be made under the previous share repurchase program.17.


| Amount | Fiscal 2010 | Fiscal 2011 | Fiscal 2012 | Fiscal 2013 | Fiscal 2014 | Thereafter | Total minimum payments | Less-amount representing interest | Total |


| Year Ended September 30, | 2010 | ($ in 000's) | Revenues: | Securities Commissions and | Investment Banking Fees | Investment Advisory Fees | Interest Income | Trading Profits | Other | Total Revenues | Interest Expense | Net Revenues | Non-Interest Expenses: | Compensation Expense | Other Expense | Total Non-Interest Expenses | Loss Before Taxes and Including Noncontrolling Interests | Noncontrolling Interests | Pre-tax Loss Excluding Noncontrolling Interests |


| 2012 2011 2010 | Outstanding, beginning of year | Shares issued as part of the merger | Shares issued from Equity Units Offering | Shares issued, other | Issued from treasury | Returned to treasury | Outstanding, end of year | Shares subject to the forward share purchase contract | Outstanding, less shares subject to the forward share purchase contract |


Expected volatility is based on the term-matched historical volatility over the simulated term, which is calculated as the time between the grant date and the end of the performance period.
The risk-free interest rate is based on a 3.25 year zero-coupon risk-free interest rate derived from the Treasury Constant Maturities yield curve on the grant date.
At December 31, 2016, unrecognized compensation expense related to performance units totaled $10 million.
Such unrecognized expense will be amortized on a straight-line basis over a weighted average period of 3.0 years.


Derivative Instruments and Hedging Agreements Foreign Exchange Exposure Management  The Company enters into forward foreign currency exchange contracts to offset certain operational and balance sheet exposures from the impact of changes in foreign currency exchange rates.
Such exposures result from the portion of the Companys operations, assets and liabilities that are denominated in currencies other than the U. S.  dollar, primarily the Euro; other exposures include the Philippine Peso and the British Pound.
These foreign currency exchange contracts are entered into to support transactions made in the normal course of business, and accordingly, are not speculative in nature.
The contracts are for periods consistent with the terms of the underlying transactions, generally one year or less.
Hedges related to anticipated transactions are designated and documented at the inception of the respective hedges as cash flow hedges and are evaluated for effectiveness monthly.
Derivative instruments are employed to eliminate or minimize certain foreign currency exposures that can be confidently identified and quantified.
As the terms of the contract and the underlying transaction are matched at inception, forward contract effectiveness is calculated by comparing the change in fair value of the contract to the change in the forward value of the anticipated transaction, with the effective portion of the gain or loss on the derivative instrument reported as a component of accumulated other comprehensive (loss) income (OCI) in shareholders equity and reclassified into earnings in the same period during which the hedged transaction affects earnings.
Any residual change in fair value of the instruments, or ineffectiveness, is recognized immediately in other income/expense.
Additionally, the Company enters into forward foreign currency contracts that economically hedge the gains and losses generated by the remeasurement of certain recorded assets and liabilities in a non-functional currency.
Changes in the fair value of these undesignated hedges are recognized in other income/expense immediately as an offset to the changes in the fair value of the asset or liability being hedged.


xtinguishment of debt.
The loss on early extinguishment of debt included the call premium on the purchased 2023 Notes and the write-off of a portion of the unamortized deferred debt issuance costs.
Concurrently with the issuance of the 2023 Notes, we entered into hedge transactions with a financial institution whereby we originally acquired options to purchase up to 26.8 million shares of our common stock at a price of $15.65 per share.
These options expire on August 15, 2008 and must be settled in net shares.
The cost of the hedge transactions to us was $134.6 million.
In connection with the purchase of a portion of the 2023 Notes in December 2006, we also sold 12.1 million of the hedges that were originally purchased in connection with the 2023 Notes and received proceeds of $55.9 million.
In addition, we sold warrants for our common stock to a financial institution for the purchase of up to 26.8 million shares of our common stock at a price of $23.08 per share.
The warrants expire on various dates from February 2008 through May 2008 and must be settled in net shares.
We received $56.4 million in cash proceeds from the sale of these warrants.
In connection with the purchase of a portion of the 2023 Notes in December 2006, we also purchased 12.1 million of the warrants for our common stock that were originally issued in connection with the 2023 Notes at a cost of $10.2 million.
The remaining outstanding warrants will be included in diluted EPS to the extent the impact is not considered anti-dilutive.
As of December 29, 2007, the estimated fair value of the remaining hedges acquired in connection with the issuance of the 2023 Notes was $39.0 million and the estimated fair value of the remaining warrants sold in connection with the issuance of the 2023 Notes was $0.2 million.
Subsequent changes in the fair value of these hedge and warrant transactions will not be recognized as long as the instruments remain classified as equity.


Gains or losses from the sale of assets are generally recorded in Other income, net (see policy below for assets classified as held for sale and discontinued operations).
Repairs and maintenance are charged to expense as incurred.
Interest related to the construction of qualifying assets is capitalized as part of the construction costs.
Properties, plants, and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets (asset group) may not be recoverable.
Recoverability of assets is determined by comparing the estimated undiscounted net cash flows of the operations related to the assets (asset group) to their carrying amount.
An impairment loss would be recognized when the carrying amount of the assets (asset group) exceeds the estimated undiscounted net cash flows.
The amount of the impairment loss to be recorded is calculated as the excess of the carrying value of the assets (asset group) over their fair value, with fair value determined using the best information available, which generally is a discounted cash flow (DCF) model.
The determination of what constitutes an asset group, the associated estimated undiscounted net cash flows, and the estimated useful lives of assets also require significant judgments.
Goodwill and Other Intangible Assets.
Goodwill is not amortized; instead, it is reviewed for impairment annually (in the fourth quarter) or more frequently if indicators of impairment exist or if a decision is made to sell or exit a business.
A significant amount of judgment is involved in determining if an indicator of impairment has occurred.
Such indicators may include deterioration in general economic conditions, negative developments in equity and credit markets, adverse changes in the markets in which an entity operates, increases in input costs that have a negative effect on earnings and cash flows, or a trend of negative or declining cash flows over multiple periods, among others.
The fair value that could be realized in an actual transaction may differ from that used to evaluate the impairment of goodwill.
Goodwill is allocated among and evaluated for impairment at the reporting unit level, which is defined as an operating segment or one level below an operating segment.
Arconic has eight reporting units, of which four are included in the Engineered Products and Solutions segment, three are included in the Transportation and Construction Solutions segment, and the remaining reporting unit is the Global Rolled Products segment.
More than 70% of Arconics total goodwill is allocated to two reporting units as follows: Arconic Fastening Systems and Rings (AFSR) ($2,200) and Arconic Power and Propulsion (APP) ($1,647) businesses, both of which are included in the Engineered Products and Solutions segment.
These amounts include an allocation of Corporates goodwill.
In November 2014, Arconic acquired Firth Rixson (see Note F), and, as a result recognized $1,801 in goodwill.
This amount was allocated between the AFSR and Arconic Forgings and Extrusions (AFE) reporting units, which is part of the Engineered Products and Solutions segment.
In March and July 2015, Arconic acquired TITAL and RTI, respectively, (see Note F) and recognized $117 and $298, respectively, in goodwill.
The goodwill amount related to TITAL was allocated to the APP reporting unit and the amount related to RTI was allocated to Arconic Titanium and Engineered Products (ATEP), a new Arconic reporting unit that consists solely of the acquired RTI business and is part of the Engineered Products and Solutions segment.
In reviewing goodwill for impairment, an entity has the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (greater than 50%) that the estimated fair value of a reporting unit is less than its carrying amount.
If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform the


| Past damages $754.3 | License agreement | Covenant not to sue | Total |


Research and Development Research and development costs are expensed as incurred.
Clinical study costs are accrued over the service periods specified in the contracts and adjusted as necessary based upon an ongoing review of the level of effort and costs actually incurred.
Strategic alliances with third parties provide rights to develop, manufacture, market and/or sell pharmaceutical products, the rights to which are owned by the other party.
Research and development is recognized net of reimbursements in connection with alliance agreements.
Recently Issued Accounting Standards In April 2014, the Financial Accounting Standards Board (FASB) issued amended guidance on the use and presentation of discontinued operations in an entity's consolidated financial statements.
The new guidance restricts the presentation of discontinued operations to business circumstances when the disposal of business operations represents a strategic shift that has or will have a major effect on an entity's operations and financial results.
The guidance becomes effective on January 1, 2015.
Adoption is on a prospective basis.
In May 2014, the FASB issued a new standard related to revenue recognition, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers.
The new standard will replace most of the existing revenue recognition standards in U. S.  GAAP when it becomes effective on January 1, 2017.
Early adoption is not permitted.
The new standard can be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of the change recognized at the date of the initial application in retained earnings.
The Company is assessing the potential impact of the new standard on financial reporting and has not yet selected a transition method.


Sources of Revenue Our revenues are primarily derived from the planning and execution of multi-channel advertising, marketing and communications programs around the world.
Our revenues are directly dependent upon the advertising, marketing and corporate communications requirements of our existing clients and our ability to win new clients.
Most of our client contracts are individually negotiated and, accordingly, the terms of client engagements and the bases on which we earn commissions and fees vary significantly.
As is customary in the industry, our contracts generally provide for termination by either party on relatively short notice, usually 90 days.
Revenues for the creation, planning and placement of advertising are determined primarily on a negotiated fee basis and, to a lesser extent, on a commission basis.
Fees are usually calculated to reflect hourly rates plus proportional overhead and a mark-up.
Many clients include an incentive compensation component in their total compensation package.
This provides added revenue based on achieving mutually agreed-upon qualitative or quantitative metrics within specified time periods.
Commissions are earned based on services provided and are usually derived from a percentage or fee over the total cost to complete the assignment.
Commissions can also be derived when clients pay us the gross rate billed by media and we pay for media at a lower net rate; the difference is the commission that we earn, which we either retain in full or share with the client depending on the nature of the applicable services agreement.
We also generate revenue in negotiated fees from our public relations, sales promotion, event marketing, sports and entertainment marketing and corporate and brand identity services.
In most of our businesses, our agencies enter into commitments to pay production and media costs on behalf of clients.
To the extent possible, we pay production and media charges after we have received funds from our clients.
Generally, we act as the client’s agent rather than the primary obligor.
In some instances we agree with the provider that we will only be liable to pay the production and media costs after the client has paid us for the charges.
Our revenue is typically lowest in the first quarter and highest in the fourth quarter.
This reflects the seasonal spending of our clients, incentives earned at year end on various contracts and project work completed that is typically recognized during the fourth quarter.
Fee revenue recognized on a completed contract basis also contributes to the higher seasonal revenues experienced in the fourth quarter because the majority of our contracts end at December 31.


Pension Plans.
EOG has a defined contribution pension plan in place for most of its employees in the United States.
EOG's contributions to the pension plan are based on various percentages of compensation and, in some instances, are based upon the amount of the employees' contributions.
EOG's total costs recognized for the plan were $34 million, $36 million and $41 million for 2016, 2015 and 2014, respectively.
In addition, EOG's Trinidadian subsidiary maintains a contributory defined benefit pension plan and a matched savings plan.
EOG's United Kingdom subsidiary maintains a pension plan which includes a non-contributory defined contribution pension plan and a matched defined contribution savings plan.
These pension plans are available to most employees of the Trinidadian and United Kingdom subsidiaries.
EOG's combined contributions to these plans were $1 million, $1 million and $5 million for 2016, 2015 and 2014, respectively.
For the Trinidadian defined benefit pension plan, the benefit obligation, fair value of plan assets and accrued benefit cost totaled $8 million, $7 million and $0.3 million, respectively, at December 31, 2016, and $9 million, $7 million and $0.2 million, respectively, at December 31, 2015.
In connection with the divestiture of substantially all of its Canadian assets in the fourth quarter of 2014, EOG has elected to terminate the Canadian non-contributory defined benefit pension plan.


| Dollars in Millions December 31, 2010 % of Trailing Twelve Month Net Sales December 31, 2009 % of Trailing Twelve Month Net Sales | Net trade receivables | Inventories | Accounts payable | Total |


CAPITAL STOCK Common Stock Authorized common stock consists of 300 million shares with a par value of $1 per share.
As of 30 September 2016, 249 million shares were issued, with 217 million outstanding.
On 15 September 2011, the Board of Directors authorized the repurchase of up to $1,000 of our outstanding common stock.
We repurchase shares pursuant to Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended, through repurchase agreements established with several brokers.
We did not purchase any of our outstanding shares during fiscal year 2016.
At 30 September 2016, $485.3 in share repurchase authorization remains.
DISH NETWORK CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - Continued F-40 14.
Stock-Based Compensation We account for our stock-based compensation in accordance with Statement of Financial Accounting Standards No.123R (As Amended), Share-Based Payment (SFAS 123R), which (i) revises Statement of Financial Accounting Standards No.123, Accounting and Disclosure of Stock-Based Compensation, (SFAS 123) to eliminate both the disclosure only provisions of that statement and the alternative to follow the intrinsic value method of accounting under Accounting Principles Board Opinion No.25, Accounting for Stock Issued to Employees (APB 25) and related interpretations, and (ii) requires the cost resulting from all share-based payment transactions with employees be recognized in the results of operations over the period during which an employee provides the requisite service in exchange for the award and establishes fair value as the measurement basis of the cost of such transactions.
Stock Incentive Plans In connection with the Spin-off, as provided in our existing stock incentive plans and consistent with the Spin-off exchange ratio, each DISH Network stock option was converted into two stock options as follows:  an adjusted DISH Network stock option for the same number of shares that were exercisable under the original DISH Network stock option, with an exercise price equal to the exercise price of the original DISH Network stock option multiplied by 0.831219.
 a new EchoStar stock option for one-fifth of the number of shares that were exercisable under the original DISH Network stock option, with an exercise price equal to the exercise price of the original DISH Network stock option multiplied by 0.843907.
Similarly, each holder of DISH Network restricted stock units retained his or her DISH Network restricted stock units and received one EchoStar restricted stock unit for every five DISH Network restricted stock units that they held.
Consequently, the fair value of the DISH Network stock award and the new EchoStar stock award immediately following the Spin-off was equivalent to the fair value of such stock award immediately prior to the Spin-off.
We maintain stock incentive plans to attract and retain officers, directors and key employees.
Awards under these plans include both performance and non-performance based equity incentives.
As of December 31, 2008, we had outstanding under these plans stock options to acquire 21.8 million shares of our Class A common stock and 1.5 million restricted stock awards.
Stock options granted through December 31, 2008 were granted with exercise prices equal to or greater than the market value of our Class A common stock at the date of grant and with a maximum term of ten years.
While historically we have issued stock options subject to vesting, typically at the rate of 20% per year, some stock options have been granted with immediate vesting and other stock options vest only upon the achievement of certain company-wide objectives.
As of December 31, 2008, we had 57.5 million shares of our Class A common stock available for future grant under our stock incentive plans.
As of December 31, 2008, the following stock incentive awards were outstanding:


| (in millions of U.S. dollars) CreditLine-1 Usage Expiry Date | Syndicated Letter of Credit Facility | Revolving Credit/LOC Facility-2 | Bilateral Letter of Credit Facility | Funds at Lloyds’s Capital Facilities-3 | Total |


| For the Years Ended December 31, | (in millions) | Net earnings attributable to PMI | Less distributed and undistributed earnings attributable to share-based payment awards | Net earnings for basic and diluted EPS | Weighted-average shares for basic EPS | Plus contingently issuable performance stock units (PSUs) | Weighted-average shares for diluted EPS |


| 2011 2010 2009 | (In millions) | Compensation cost of share-based compensation awards: | Restricted stock awards | Stock options | Cash-settled restricted stock units | Tax benefits related to compensation cost | Compensation cost of share-based compensation awards, net of tax | Year Ended December 31 | 2016 | (Dollars in millions) | ADJUSTED NON-ACCRUAL LOANS AND SELECTED RATIOS | Allowance for loan losses (GAAP) | Less: Direct energy portion | Adjusted allowance for loan losses (non-GAAP) | Total non-accrual loans (GAAP) | Less: Direct energy non-accrual loans | Adjusted total non-accrual loans (non-GAAP) | Allowance for loan losses to non-performing loans, excluding loans held for sale (GAAP) | Adjusted allowance for loan losses to non-performing loans, excluding loans held for sale (non-GAAP) |


| Asset Derivatives December 31, 2011 Liability Derivatives December 31, 2011 | (In millions) | Derivatives not designated as hedging instruments: | Foreign exchange contracts | Interest-rate contracts | Other derivative contracts | Total | Derivatives designated as hedging instruments: | Interest-rate contracts | Foreign exchange contracts | Total |


| Balance at Beginning of Period Goodwill Acquired Foreign Currency Translation and Other Balance at End of Period | Year Ended December 31, 2006 | Food Packaging | Protective Packaging | Total | Year Ended December 31, 2005 | Food Packaging | Protective Packaging | Total |


| Year Ended December 31, Variance 2007 vs. 2006 | 2007 | Results of Operations:-1(2) | Net operating interest income | Provision for loan losses-3 | Total net revenue | Gain (loss) on loans and securities, net | Net income (loss) from continuing operations(4) | Cumulative effect of accounting changes-5 | Net income (loss) | Basic earnings (loss) per share from continuing operations | Diluted earnings (loss) per share from continuing operations | Basic net earnings (loss) per share | Diluted net earnings (loss) per share | Weighted average shares—basic | Weighted average shares—diluted-6 |


| For the Year Ended December 31, 2016 For the Year Ended December 31, 2015 | (Millions of Dollars) | Operating revenues | Purchased power | Fuel | Gas purchased for resale | Other operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Operating income |


Non-Operating Items


| Equity Compensation PlanCategory Number ofSecurities to beIssued UponExercise ofOutstandingOptions, Warrantsand Rights Weighted AverageExercise Price ofOutstandingOptions, Warrantsand Rights Number of SecuritiesRemaining Availablefor Future IssuanceUnder EquityCompensation Plans(excluding securitiesreflected in the firstcolumn) | Stockholder-approved plans | Nonstockholder-approved plans | Total |


| December 31, 2006 | Amortized cost | (in millions) | Finance — Bank | Finance — Insurance | Finance — Other | Industrial — Consumer | Industrial — Energy | Industrial — Manufacturing | Industrial — Other | Industrial — Service | Industrial — Transport | Utility — Electric | Utility — Other | Utility — Telecom | Total corporate securities | Residential pass-through securities | Commercial mortgage-backed securities | Residential collateralized mortgage obligations | Asset-backed securities — Home equity | Asset-backed securities — All other | Collateralized debt obligations — Credit | Collateralized debt obligations — CMBS | Collateralized debt obligations — Loans | Collateralized debt obligations — ABS | Total mortgage-backed and other asset-backed securities | U.S. Government and agencies | States and political subdivisions | Non-U.S. governments | Total fixed maturity securities, available-for-sale |


| December 31, Buildings A and B Building C Total | 2011 | 2012 | 2013 | 2014 | 2015 | Thereafter | $187,741 |


| Consolidated United States West Africa EasternMediterranean NorthSea Other Int'l, Corporate | (millions) | Year Ended December 31, 2011 | Revenues from Third Parties | Income from Equity Method Investees | Total Revenues-1 | DD&A | Gain on Divestiture | Asset Impairments | (Gain) Loss on Commodity Derivative Instruments | Income (Loss) Before Income Taxes | Equity Method Investments | Additions to Long-Lived Assets | Goodwill at End of Year | Total Assets at End of Year-2 | Year Ended December 31, 2010 | Revenues from Third Parties | Reclassification from AOCL-3 | Income from Equity Method Investees | Total Revenues-1 | DD&A | Net Gain on Asset Sales | Asset Impairments | (Gain) Loss on Commodity Derivative Instruments | Income (Loss) Before Income Taxes | Equity Method Investments | Additions to Long-Lived Assets | Goodwill at End of Year | Total Assets at End of Year-2 | Year Ended December 31, 2009 | Revenues from Third Parties | Reclassification from AOCL-3 | Income from Equity Method Investees | Total Revenues-1 | DD&A | Asset Impairments | Gain on Commodity Derivative Instruments | Income (Loss) Before Income Taxes | Equity Method Investments | Additions to Long-Lived Assets | Goodwill at End of Year | Total Assets at End of Year-2 |


| For the Year Ended December 31 | 2010 | Test & Measurement | Environmental | Life Sciences & Diagnostics | Dental | Industrial Technologies | Businesses contributed to Apex joint venture | Total |


| New Sites (Acquired or Constructed) 2012 2011 2010 | Domestic | International-1 |


| Year ended December 31, 2011 Year ended December 31, 2010 | $ in millions | Beginning balance | Purchases, sales, issuances and settlements/prepayments, net* | Acquisition of businesses | Gains/(losses) included in the Consolidated Statement of Income** | Foreign exchange | Ending balance |


| December 31, 2014 | (Dollars in millions) | Home loans | Core portfolio | Residential mortgage | Home equity | Legacy Assets & Servicing portfolio | Residential mortgage-5 | Home equity | Credit card and other consumer | U.S. credit card | Non-U.S. credit card | Direct/Indirect consumer-6 | Other consumer-7 | Total consumer | Consumer loans accounted for under the fair value option-8 | Total consumer loans and leases | Commercial | U.S. commercial | Commercial real estate-9 | Commercial lease financing | Non-U.S. commercial | U.S. small business commercial | Total commercial | Commercial loans accounted for under the fair value option-8 | Total commercial loans and leases | Total loans and leases | Percentage of outstandings | December 31 | (Dollars in millions) | By counterparty | Private-label securitization trustees, whole-loan investors, including third-party securitization sponsors and other-1, 2 | Monolines-3 | GSEs | Total gross claims | Duplicate claims-4 | Total unresolved repurchase claims by counterparty, net of duplicate claims-2 | By product type | Prime loans | Alt-A | Home equity | Pay option | Subprime | Other | Total | Duplicate claims-4 | Total unresolved repurchase claims by product type, net of duplicate claims-2 |


| December 31, | (Dollar amounts in millions) | Deferred income tax assets: | Compensation and benefits | Unrealized investment losses | Loss carryforwards | Other | Gross deferred tax assets | Less: deferred tax valuation allowances | Deferred tax assets net of valuation allowances | Deferred income tax liabilities: | Goodwill and acquired indefinite-lived intangibles | Acquired finite-lived intangibles | Other | Gross deferred tax liabilities | Net deferred tax (liabilities) |


| Year Ended December 31, | 2015 | Other revenue special item, net -1 | Mainline operating special items, net -2 | Regional operating special items, net -3 | Nonoperating special items, net -4 | Reorganization items, net -5 | Income tax special items, net -6 | Total |


Investment Strategy The Company’s global pension and postretirement funds’ investment strategy is to invest in a prudent manner for the exclusive purpose of providing benefits to participants.
The investment strategies are targeted to produce a total return that, when combined with the Company’s contributions to the funds, will maintain the funds’ ability to meet all required benefit obligations.
Risk is controlled through diversification of asset types and investments in domestic and international equities, fixed income securities and cash and short-term investments.
The target asset allocation in most locations outside the U. S.  is primarily in equity and debt securities.
These allocations may vary by geographic region and country depending on the nature of applicable obligations and various other regional considerations.
The wide variation in the actual range of plan asset allocations for the funded non-U.
S.  plans is a result of differing local statutory requirements and economic conditions.
For example, in certain countries local law requires that all pension plan assets must be invested in fixed income investments, government funds or local-country securities.
Significant Concentrations of Risk in Plan Assets The assets of the Company’s pension plans are diversified to limit the impact of any individual investment.
The U. S.  qualified pension plan is diversified across multiple asset classes, with publicly traded fixed income, hedge funds, publicly traded equity and real estate representing the most significant asset allocations.
Investments in these four asset classes are further diversified across funds, managers, strategies, vintages, sectors and geographies, depending on the specific characteristics of each asset class.
The pension assets for the Company’s non-U.
S.  Significant Plans are primarily invested in publicly traded fixed income and publicly traded equity securities.
Oversight and Risk Management Practices The framework for the Company’s pension oversight process includes monitoring of retirement plans by plan fiduciaries and/or management at the global, regional or country level, as appropriate.
Independent Risk Management contributes to the risk oversight and monitoring for the Company’s U. S.  qualified pension plan and non-U.
S.  Significant Pension Plans.
Although the specific components of the oversight process are tailored to the requirements of each region, country and plan, the following elements are common to the Company’s monitoring and risk management process: ?
periodic asset/liability management studies and strategic asset allocation reviews; ?
periodic monitoring of funding levels and funding ratios; ?
periodic monitoring of compliance with asset allocation guidelines; ?
periodic monitoring of asset class and/or investment manager performance against benchmarks; and ?
periodic risk capital analysis and stress testing.
Estimated Future Benefit Payments The Company expects to pay the following estimated benefit payments in future years:


The majority of the Aerospace groups operating costs relate to new aircraft production on firm orders and consist of labor, material, subcontractor and overhead costs.
The costs are accumulated in production lots, recorded in inventory and recognized as operating costs at aircraft delivery based on the estimated average unit cost in a production lot.
While changes in the estimated average unit cost for a production lot impact the level of operating costs, the amount of operating costs reported in a given period is based largely on the number and type of aircraft delivered.
Operating costs in the Aerospace groups completions and services businesses are recognized generally as incurred.
For new aircraft, operating earnings and margin are a function of the prices of our aircraft, our operational efficiency in manufacturing and outfitting the aircraft, and the mix of large-cabin and mid-cabin aircraft deliveries.
Additional factors affecting the groups earnings and margin include the volume, mix and profitability of completions and services work performed, the volume of and market for pre-owned aircraft, and the level of general and administrative (G&A) and net research and development (R&D) costs incurred by the group.


| 2013 Period-to- Period Change 2012 Period-to- Period Change 2011 | Depreciation of tangible property and equipment | Amortization of landfill airspace | Amortization of intangible assets | $1,333 |


| Jurisdiction Tax Years | United States | Brazil | China | France | Germany | India | Israel | Japan | Malaysia | Singapore | United Kingdom |


| Oil Bitumen Gas NGLs Total | (In millions) | 2010 sales | Change due to volumes | Change due to prices | 2011 sales | Change due to volumes | Change due to prices | 2012 sales |


| Crude Oil, Condensate and Natural Gas Liquids Natural Gas | United   States | (Millions of barrels) | Net Proved Undeveloped Reserves | At January 1, 2007 | At December 31, 2007 | At December 31, 2008 | At December 31, 2009 |


| At December 31, 2010(in millions) Unrecognized Compensation Cost Weighted- Average Period (years) Expected Period (years) | Plans: | Time-vested RSUs – 2007 Plan | AIG DCPPP | AIG Partners Plan | Total AIG Plans | Total SICO Plans |


| Total Number ofShares (or Units)Purchased1 Average Price Paidper Share (or Unit)2 Total Number ofShares (or Units)Purchased as Part ofPublicly AnnouncedPlans or Programs3 Maximum Number (or Approximate Dollar Value)of Shares (or Units) that MayYet Be Purchased Under thePlans or Programs3 | October 1 - 31 | November 1 - 30 | December 1 - 31 | Total |


| 2011 $74,896 | 2012 | 2013 | 2014 | 2015 | Thereafter | Total cash obligations | Unamortized discounts and premiums, net | Balance as of December 31, 2010 |


Entergy Louisiana, LLC and Subsidiaries Managements Financial Discussion and Analysis Entergy Louisiana may refinance, redeem, or otherwise retire debt prior to maturity, to the extent market conditions and interest and distribution rates are favorable.
All debt and common and preferred membership interest issuances by Entergy Louisiana require prior regulatory approval.
Preferred membership interest and debt issuances are also subject to issuance tests set forth in its bond indentures and other agreements.
Entergy Louisiana has sufficient capacity under these tests to meet its foreseeable capital needs.
Entergy Louisianas receivables from the money pool were as follows as of December 31 for each of the following years.


| 2008 First Quarter Second Quarter Third Quarter Fourth Quarter | Net sales | Gross profit | Net earnings | Basic net earnings per common share | Diluted net earnings per common share |


Venezuela related activities Effective as of the end of the fourth quarter of 2015, we deconsolidated our Venezuelan subsidiaries and began accounting for the investments in our Venezuelan subsidiaries using the cost method of accounting effective in the first quarter of 2016.
The conditions within Venezuela driving this decision remained in place during 2016 and 2017.
Prior to deconsolidation, we remeasured our Venezuelan bolivar operations within our Water, Paper, Food & Beverage, Institutional and the bolivar portion of our Venezuelan operations within Energy operating segments from the official exchange rate at the time of 6.3 bolivares to 1 U. S.  dollar to the SIMADI rate at the time of approximately 200 bolivares to 1 U. S.  dollar.
As a result of the ownership structure of our Food & Beverage and Institutional operations in Venezuela, we reflected a portion of the devaluation impact as a component of net income (loss) attributable to noncontrolling interest on the Consolidated Statement of Income.
Upon deconsolidation, we recorded a charge to fully write off our intercompany receivables and investment.
The total charges during 2015 related to our actions in Venezuela were $289.3 million ($246.8 million after tax).
We reflected $11.1 million of the above charges as a component of net income (loss) attributable to noncontrolling interest on the Consolidated Statement of Income, resulting in a net charge of $235.7 million or $0.78 per diluted share.
We recorded gains due to U. S.  dollar cash recoveries of intercompany receivables written off at the time of deconsolidation of $11.5 million ($7.2 million after tax) or $0.02 per diluted share and $7.8 million ($4.9 million after tax) or $0.02 per diluted share in 2017 and 2016, respectively.
Gain on sale of business During 2017, we disposed of the Equipment Care business and recorded a gain of $46.1 million ($12.4 million after tax primarily due to non-deductible goodwill), or $0.04 per diluted share, net of working capital adjustments, costs to sell and other transaction expenses.
The gain has been included as a component of special (gains) and charges on the Consolidated Statement of Income.
Other We recorded net gains of $1.4 million ($0.7 million after tax), or less than $0.01 per diluted share, net charges of $33.2 million ($21.1 million after tax) or $0.07 per diluted share, and net charges of $56.3 million ($34.5 million after tax), or $0.11 per diluted share in 2017, 2016, and 2015, respectively, primarily related to litigation related charges and settlements.
In 2015, this also included the recognition of a loss on the sale of a portion of our Ecovation business, offset partially by the recovery of funds deposited into escrow as part of the Champion transaction.
These items have been included as a component of special (gains) and charges on the Consolidated Statement of Income.
Interest Expense, net During 2017, in anticipation of U. S.  tax reform and a potential limit on interest deductibility in future years, we entered into transactions to exchange or retire certain long-term debt, and incurred debt exchange and extinguishment charges of $21.9 million ($13.6 million after tax), or $0.05 per diluted share.
This charge has been included as a component of interest expense, net on the Consolidated Statement of Income.


| December 31, 2010 December 31, 2009 | Carrying amount | ($ in millions) | Fixed maturities: | Public | Private | Equity securities | Mortgage loans: | Commercial | Residential | Real estate held for sale | Real estate held for investment | Policy loans | Other investments | Total invested assets | Cash and cash equivalents | Total invested assets and cash |


| (Billions) 2016 2015 2014 | Total cash provided by (used in): | Operating activities | Investing activities | Financing activities | Effect of foreign currency exchange rateson cash and cash equivalents and other | Net increase in cash and cashequivalents |


| Coca-Cola Minute Maid Aquarius Bonaqua/Bonaqa | Diet Coke/Coca-Cola Light | Coca-Cola Zero | Fanta | Sprite |


(1) Total debt includes $745.7 million of fixed rate debt.
Fixed interest payments are therefore reflected in the table above in the periods they are due.
The credit facility, $539.0 million outstanding at December 31, 2011, provides for borrowings of various maturities.
Interest is payable based upon LIBOR, Prime, Federal Funds or other bank-provided rates in existence at the time of each borrowing.
(2) Operating leases reflect obligations for leased building space.
See Item 8, Financial Statements and Supplementary Data - Note 14, “Operating Leases” for sublease information.
(3) Expected future contributions to defined benefit plans of $43.8 million are estimated for the next five years, and are comprised of $31.8 million related to pension plans and $12.0 million related to a postretirement medical plan.
See Item 8, Financial Statements and Supplementary Data - Note 13, “Retirement Benefit Plans” for detailed benefit pension and postretirement plan information.
(4) The company has capital commitments into co-invested funds that are to be drawn down over the life of the partnership as investment opportunities are identified.
At December 31, 2011, the company's undrawn capital commitments were $161.2 million.
See Note 19, “Commitments and Contingencies” for additional details.
(5) Due to the uncertainty with respect to the timing of future cash flows associated with unrecognized tax benefits at December 31, 2011, the company is unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authorities.
Therefore, $19.5 million of gross unrecognized tax benefits have been excluded from the contractual obligations table above.
See Item 8, Financial Statements and Supplementary Data, Note 16 - “Taxation” for a discussion on income taxes.


| JPMorgan Chase & Co. JPMorgan Chase Bank, N.A.Chase Bank USA, N.A. J.P. Morgan Securities LLC | December 31, 2014 | Moody’s Investor Services | Standard & Poor’s | Fitch Ratings |


| December 31, 2016 December 31, 2015 | AmortizedCost | (in millions) | Investments in Japanese government and government agency securities: | Fixed maturities, available-for-sale | Fixed maturities, held-to-maturity | Trading account assets supporting insurance liabilities | Other trading account assets | Total | December 31, 2016 | AmortizedCost | (in millions) | Investments in South Korean government and government agency securities: | Fixed maturities, available-for-sale | Fixed maturities, held-to-maturity | Trading account assets supporting insurance liabilities | Other trading account assets | Total |


| Year ended December 31, 2016In millions except weighted- average data Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Life Aggregate Intrinsic Value | Outstanding, January 1 | Exercised | Outstanding, December 31 | Vested and exercisable, December 31 |


| Expiration within | Total | Exelon | Generation | ComEd | PECO | BGE |


Net cash used for investing activities was $651 million, primarily driven by $549 million for the acquisition of Kichler, net of cash acquired, and $219 million for capital expenditures, partially offset by $108 million of net proceeds from the disposition of short-term bank deposits.
We continue to invest in our manufacturing and distribution operations to increase our productivity, improve customer service and support new product innovation.
Capital expenditures for 2018 were $219 million, compared with $173 millionfor 2017and $180 millionfor 2016.
For 2019, capital expenditures, excluding any potential acquisitions, are expected to be approximately $200 million.
Depreciation and amortization expense for 2018 totaled $156 million, compared with $127 million for 2017 and $134 million for 2016.
For 2019, depreciation and amortization expense, excluding any potential 2019 acquisitions, is expected to be approximately $175 million.
Amortization expense totaled $24 million in 2018, compared with $11 million and $10 million in 2017 and 2016, respectively.
Costs of environmental responsibilities and compliance with existing environmental laws and regulations have not had, nor do we expect them to have, a material effect on our capital expenditures, financial position or results of operations.
We believe that our present cash balance and cash flows from operations, and our ability to utilize our Amended Credit Agreement are sufficient to fund our near-term working capital and other investment needs.
We believe that our longer-term working capital and other general corporate requirements will be satisfied through cash flows from operations and, to the extent necessary, from bank borrowings and future financial market activities.
Consolidated Results of Operations We report our financial results in accordance with GAAP in the United States.
However, we believe that certain non-GAAP performance measures and ratios, used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods.
Non-GAAP performance measures and ratios should be viewed in addition to, and not as an alternative for, our reported results under GAAP.
The following discussion of consolidated results of operations compares each respective period to the same period of the immediately preceding year.
Sales and Operations Net sales for 2018 were $8.4 billion, which increased nine percent compared to 2017.
Excluding acquisitions, divestitures and the effect of currency translation, net sales increased five percent.
The following table reconciles reported net sales to net sales excluding acquisitions, divestitures and the effect of currency translation, in millions:


NM Not meaningful 2009 vs.  2008 Revenues, net of interest expense increased 80% versus the prior year mainly driven by the $11.1 billion pretax gain on the sale ($6.7 billion after-tax) on the MSSB JV transaction in the second quarter of 2009 and a $320 million pretax gain on the sale of the managed futures business to the MSSB JV in the third quarter of 2009.
Excluding these gains, revenue decreased primarily due to the absence of Smith Barney from May 2009 onwards and the absence of fourth-quarter revenue of Nikko Asset Management, partially offset by an improvement in marks in Retail Alternative Investments.
Revenues in the prior year include a $347 million pretax gain on sale of CitiStreet and charges related to the settlement of auction rate securities of $393 million pretax.
Operating expenses decreased 64% from the prior year, mainly driven by the absence of Smith Barney and Nikko Asset Management expenses, reengineering efforts and the absence of 2008 one-time expenses ($0.9 billion intangible impairment, $0.2 billion of restructuring and $0.5 billion of writedowns and other charges).
Provisions for loan losses and for benefits and claims decreased 15% mainly reflecting a $50 million decrease in provision for benefits and claims, partially offset by increased reserve builds of $28 million.
Assets decreased 40% versus the prior year, mostly driven by the sales of Nikko Cordial Securities and Nikko Asset Management ($25 billion) and the managed futures business ($1.4 billion), partially offset by increased Smith Barney assets of $4 billion.2008 vs.  2007 Revenues, net of interest expense decreased 21% from the prior year primarily due to lower transactional and investment revenues in Smith Barney, lower revenues in Nikko Asset Management and higher markdowns in Retail Alternative Investments.
Operating expenses increased 16% versus the prior year, mainly driven by a $0.9 billion intangible impairment in Nikko Asset Management in the fourth quarter of 2008, $0.2 billion of restructuring charges and $0.5 billion of write-downs and other charges.
Provisions for loan losses and for benefits and claims increased $65 million compared to the prior year, mainly due to a $52 million increase in provisions for benefits and claims.
Assets increased 4% versus the prior year.


| Net realized/unrealized gains (losses) included in Transfers in and/or Purchases, issuances Unrealized gains | December 31, | In millions of dollars | Assets | Trading securities | Trading mortgage-backed securities | U.S. government-sponsored agency guaranteed | Prime | Alt-A | Subprime | Non-U.S. residential | Commercial | Total trading mortgage-backed securities | U.S. Treasury and federal agencies securities | U.S. Treasury | Agency obligations | Total U.S. Treasury and federal | agencies securities | State and municipal | Foreign government | Corporate | Equity securities | Other debt securities | Total trading securities | Derivatives, net-4 | Investments | Mortgage-backed securities | U.S. government-sponsored agency guaranteed | Prime | Alt-A | Subprime | Commercial | Total investment mortgage-backed | debt securities | U.S. Treasury and federal agencies securities | Total U.S. Treasury and federal | agencies securities |


Financial Instruments Cash Equivalents and Marketable Securities All highly liquid investments with maturities of three months or less at the date of purchase are classified as cash equivalents.
The Companys marketable debt and equity securities have been classified and accounted for as available-for-sale.
Management determines the appropriate classification of its investments at the time of purchase and reevaluates the designations at each balance sheet date.
The Company classifies its marketable debt securities as either short-term or long-term based on each instruments underlying contractual maturity date.
Marketable debt securities with maturities of 12 months or less are classified as short-term and marketable debt securities with maturities greater than 12 months are classified as long-term.
The Company classifies its marketable equity securities, including mutual funds, as either short-term or long-term based on the nature of each security and its availability for use in current operations.
The Companys marketable debt and equity securities are carried at fair value, with the unrealized gains and losses, net of taxes, reported as a component of shareholders equity.
The cost of securities sold is based upon the specific identification method.
Derivative Financial Instruments The Company accounts for its derivative instruments as either assets or liabilities and carries them at fair value.
For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive income (AOCI) in shareholders equity and reclassified into income in the same period or periods during which the hedged transaction affects earnings.
The ineffective portion of the gain or
We also record an inventory obsolescence reserve, which represents the difference between the cost of the inventory and its estimated realizable value, based on various product sales projections.
This reserve is calculated using an estimated obsolescence percentage applied to the inventory based on age, historical trends and requirements to support forecasted sales.
In addition, and as necessary, we may establish specific reserves for future known or anticipated events.


| (Dollars in millions) Total Lessthan 1year 1-3years 3-5years After 5years | Long-term debt (including current portion) | Interest on debt-1 | Pension and other postretirement cash requirements | Capital lease obligations | Operating lease obligations | Purchase obligations not recorded on the Consolidated Statements of Financial Position | Purchase obligations recorded on the Consolidated Statements of Financial Position | Total contractual obligations-2 |


Accounts Receivable Trade Receivables The Company has considerable trade receivables outstanding with its third-party cellular network carriers, wholesalers, retailers, value-added resellers, small and mid-sized businesses and education, enterprise and government customers.
The Company generally does not require collateral from its customers; however, the Company will require collateral in certain instances to limit credit risk.
In addition, when possible, the Company attempts to limit credit risk on trade receivables with credit insurance for certain customers or by requiring third-party financing, loans or leases to support credit exposure.
These credit-financing arrangements are directly between the third-party financing company and the end customer.
As such, the Company generally does not assume any recourse or credit risk sharing related to any of these arrangements.
As of September 26, 2015, the Company had one customer that represented 10% or more of total trade receivables, which accounted for 12%.
As of September 27, 2014, the Company had two customers that represented 10% or more of total trade receivables, one of which accounted for 16% and the other 13%.
The Companys cellular network carriers accounted for 71% and 72% of trade receivables as of September 26, 2015 and September 27, 2014, respectively.


| 2006 2005 2004 | (In millions) | Incremental tax benefit from the exercise of stock options | Change in liability associated with acquisition of business | Capital lease obligations incurred | Accrued dividend equivalents | Interest rate swap derivative mark to market |


| (In Millions) Unrealized Holding Gains (Losses) on Available-for-Sale Equity Investments Unrealized Holding Gains (Losses) on Derivatives Actuarial Valuation and Other Pension Expenses Translation Adjustments and Other Total | December 31, 2016 | Other comprehensive income (loss) before reclassifications | Amounts reclassified out of accumulated other comprehensive income (loss) | Tax effects | Other comprehensive income (loss) | December 30, 2017 | Impact of change in accounting standards | Opening balance as of December 31, 2017 | Other comprehensive income (loss) before reclassifications | Amounts reclassified out of accumulated other comprehensive income (loss) | Tax effects | Other comprehensive income (loss) | December 29, 2018 |


| Year Ended December 31, | 2010 | (millions) | Realized Mark-to-Market (Gain) Loss | Unrealized Mark-to-Market (Gain) Loss | Total (Gain) Loss on Commodity Derivative Instruments |


| 2016 2017 and2018 2019 and2020 Thereafter Total | Mortgage notes payable | Unsecured debt | Lines of credit | Interest on indebtedness-1 | Ground leases | Operating leases | Development commitments (including co-investments)(2) | $801,286 |


Interest Rate Swaps In order to minimize financing costs and to manage interest rate exposure, from time to time, we enter into interest rate swap agreements.
In December 2005, we entered into forward swap agreements to hedge interest rate exposure related to $500 million of term financing to be executed during 2006.
In February 2006, we terminated a forward swap agreement hedging the anticipated execution of $250 million of term financing because the transaction was no longer expected to occur by the originally specified time period or within an additional two-month period of time thereafter.
We recorded a gain of $1.0 million in the first quarter of 2006 as a result of the discontinuance of this cash flow hedge.
In August 2006, a forward swap agreement hedging the anticipated issuance of $250 million of 10-year notes matured resulting in cash receipts of $3.7 million.
The $3.7 million gain on the swap will be amortized as a reduction to interest expense over the term of the $250 million of 5.45% Notes due September 1, 2016.
In October 2003, we entered into swap agreements effectively converting interest payments on long-term debt from fixed to variable rates.
We converted interest payments on $200 million of 6.7% Notes due in October 2005 and $150 million of 6.95% Notes due in March 2007 from their respective fixed rates to variable rates based on the London Interbank Offered Rate, LIBOR.
In March 2004, we terminated these agreements, resulting in cash receipts totaling $5.2 million, with a corresponding increase to the carrying value of the long-term debt.
We amortized this increase over the terms of the respective long-term debt as a reduction to interest expense.
As of December 31, 2007, and 2006 we were not a party to any interest rate swap agreements.
Foreign Exchange Forward Contracts We enter into foreign exchange forward contracts to hedge transactions denominated in foreign currencies.
These transactions are primarily purchase commitments or forecasted purchases of equipment, raw materials and finished goods.
We also may hedge payment of forecasted intercompany transactions with our subsidiaries outside the United States.
These contracts reduce currency risk from exchange rate movements.
We generally hedge foreign currency price risks for periods from 3 to 24 months.
Foreign exchange forward contracts are effective as hedges of identifiable, foreign currency commitments.
We designate our foreign exchange forward contracts as cash flow hedging derivatives.
The fair value of these contracts is classified as either an asset or liability on the Consolidated Balance Sheets.
We record gains and losses on these contracts as a component of other comprehensive income and reclassify them into earnings in the same period during which the hedged transaction affects earnings.


| 2016 2015 | Quarter | First | Second | Third | Fourth (Separation occurred on November 1, 2016) | Year | Year Ended December 31, | 2007 | Reconstructive | Knees | Hips | Extremities | Dental | Total | Trauma | Spine | OSP and Other | Total | Year ended December 31, 2006 gross margin | Foreign exchange impact, net | Other | Year ended December 31, 2007 gross margin |


| 2016 2015 2014 | Additions to plant and equipment | Acquisitions, less cash acquired | Investments in and advances to unconsolidated affiliates | Capital Expenditures on a GAAP Basis | Capital lease expenditures(A) | Purchase of noncontrolling interests in a subsidiary(A) | Capital Expenditures on a Non-GAAP Basis |


| Mix of Base Fees Mix of Average AUM by Asset Class-1 | 2016 | Equity: | Active | iShares | Non-ETF index | Equity subtotal | Fixed income: | Active | iShares | Non-ETF index | Fixed income subtotal | Multi-asset | Alternatives: | Core | Currency and commodities | Alternatives subtotal | Long-term | Cash management | Total excluding Advisory AUM |


Notes to consolidated financial statements 214 JPMorgan Chase & Co. /2015 Annual Report The following table presents, as of December 31, 2015 and 2014, the gross and net derivative payables by contract and settlement type.
Derivative payables have been netted on the Consolidated balance sheets against derivative receivables and cash collateral receivables from the same counterparty with respect to derivative contracts for which the Firm has obtained an appropriate legal opinion with respect to the master netting agreement.
Where such a legal opinion has not been either sought or obtained, the payables are not eligible under U. S.  GAAP for netting on the Consolidated balance sheets, and are shown separately in the table below.


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


| 2007 2006 | Derivative Instruments Valuation — Assets | (Thousands of Dollars) | Long-term purchased power agreements | Electric and natural gas trading and hedging instruments | Interest rate hedging instruments | Total |


| March 30, 2019 March 31, 2018 | GrossCarryingAmount | Intangible Assets: | Developed technology | Customer relationships | Trade names | Technology licenses | Non-compete agreement | IPRD | Total | Fiscal Year | 2020 | 2021 | 2022 | 2023 | 2024 | March 30, 2019 | 6.75% Senior Notes due 2023 | 7.00% Senior Notes due 2025 | 5.50% Senior Notes due 2026 | Less unamortized issuance costs | Total long-term debt | Approximate Number of Vehicles | Residential | Small-container | Large-container | Total |


Diagnostics product sales increased 63% in fiscal 2013 compared to fiscal 2012 primarily due to the inclusion of Gen-Probes product sales (acquired in the fourth quarter of fiscal 2012), which contributed $483.1 million of additional revenue in fiscal 2013, partially offset by lower ThinPrep revenues of $28.5 million and fiscal 2013 had one less week than fiscal 2012, which was a 53-week fiscal period.
The decline in ThinPrep revenue was primarily due to lower domestic volumes and, to a lesser extent, lower average selling prices internationally.
We attribute the domestic volume decline to an increase in testing intervals as a result of recent screening recommendations from governmental agencies and professional organizations.
We also experienced lower average selling prices in China, at least in part, due to restructuring the sales channel as we move toward using a combination of dealers and our direct sales force to gain broader market coverage compared to principally a direct sales strategy in fiscal 2012.
However, international ThinPrep unit volumes were higher in fiscal 2013 as compared to fiscal 2012.
We also experienced a decrease in our Rapid Fetal Fibornecton test revenue of $5.8 million compared to the prior year primarily due to lower domestic volumes.
Partially offsetting these decreases was an increase in revenues of $5.6 million primarily from our sale of Cervista HPV products primarily in the United States, as we continue to gain new customer accounts and increase unit sales to existing customers.
The inclusion of Gen-Probes results is partially impacted by the Novartis collaboration.
Pursuant to the collaboration, a portion of Gen-Probes revenue is contingent on donations testing revenue earned by Novartis.
As a result, amounts to be received for this contingent revenue related to inventory on hand and not yet utilized by Novartis customers as of the date of our acquisition of Gen-Probe were recorded as unbilled accounts receivable on the balance sheet in purchase accounting and were not recorded as revenue in our results of operations.
In fiscal 2013 and fiscal 2012 this contingent revenue of $23.5 million and $11.6 million, respectively, was not recognized in our results of operations.
We expect to experience modest price erosion in our molecular diagnostics products in fiscal 2014.
Breast Health product sales increased 1% in fiscal 2013 compared to fiscal 2012.
Our digital mammography systems revenue increased $23.0 million in fiscal 2013 compared to fiscal 2012 primarily due to the increase in our 3D Dimensions systems revenue of $52.5 million in fiscal 2013 compared to fiscal 2012 as we sold more 3D Dimensions units with higher average selling prices in the United States, partially offset by slightly lower average selling prices internationally.
Partially offsetting the increase in 3D Dimensions sales in fiscal 2013, we had lower unit sales and, to a lesser extent, lower average selling prices of our 2D Dimensions systems and Selenia systems on a worldwide basis.
We also experienced a decline in sales of related components and workstation products of $7.0 million in fiscal 2013 compared to the prior year primarily because customers that upgrade to 3D Dimensions do not always require new versions of these related products.
Our breast biopsy products revenue increased $7.8 million in fiscal 2013 compared to fiscal 2012 primarily due to an increase in the number of Eviva biopsy devices sold in the United States and, to a lesser extent, internationally, and an increase in the number of Celero devices sold in the United States.
Partially offsetting these increases was a decline in the unit sales and average selling price of our ATEC devices, which we attribute to the introduction and increased sales of our Eviva biopsy devices.
Additionally, in fiscal 2013, we experienced an $8.0 million


AMERICAN TOWER CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (3) Consists of customer-related intangibles of approximately $15.5 million and network location intangibles of approximately $19.8 million.
The customer-related intangibles and network location intangibles are being amortized on a straight-line basis over periods of up to 20 years.
(4) The Company expects that the goodwill recorded will be deductible for tax purposes.
The goodwill was allocated to the Company’s international rental and management segment.
Uganda Acquisition—On December 8, 2011, the Company entered into a definitive agreement with MTN Group to establish a joint venture in Uganda.
The joint venture is controlled by a holding company of which a wholly owned subsidiary of the Company (the “ATC Uganda Subsidiary”) holds a 51% interest and a wholly owned subsidiary of MTN Group (the “MTN Uganda Subsidiary”) holds a 49% interest.
The joint venture is managed and controlled by the Company and owns a tower operations company in Uganda.
Pursuant to the agreement, the joint venture agreed to purchase a total of up to 1,000 existing communications sites from MTN Group’s operating subsidiary in Uganda, subject to customary closing conditions.
On June 29, 2012, the joint venture acquired 962 communications sites for an aggregate purchase price of $171.5 million, subject to post-closing adjustments.
The aggregate purchase price was subsequently increased to $173.2 million, subject to future post-closing adjustments.
Under the terms of the purchase agreement, legal title to certain of these communications sites will be transferred upon fulfillment of certain conditions by MTN Group.
Prior to the fulfillment of these conditions, the Company will operate and maintain control of these communications sites, and accordingly, reflect these sites in the allocation of purchase price and the consolidated operating results.


| Year Ended December 31 2010 2011 2012 | Company-sponsored R&D, including product developmentcosts | Bid and proposal costs | Total company-sponsored R&D | Customer-sponsored R&D | Total R&D |


| Amount (In Millions) | 2015 net revenue | Retail electric price | Louisiana business combination customer credits | Volume/weather | Louisiana Act 55 financing savings obligation | Other | 2016 net revenue |


progress during 2003 and 2004 in improving liquidity and financial flexibility.
Reduction in international capital commitments due to completion of major capital-intensive projects has increased flexibility and liquidity in 2004.
With these projects completed or nearing completion, international capital commitments have declined while, at the same time, they have begun to contribute to the Companys financial and operating results.
A new $400 million credit facility will also provide increased liquidity in 2005.
The Company achieved a reduction in its ratio of debt-to-book capital (defined as the Companys total debt divided by the sum of total debt plus equity) to 38 percent at December 31, 2004, compared to 46 percent at December 31, 2003.
The Company reduced outstanding debt by $48.7 million during 2004.
The Companys current ratio (current assets divided by current liabilities) was 1.10:1 at December 31, 2004, compared with .73:1 at December 31, 2003.
The improvement in the current ratio in 2004, as compared to 2003, resulted primarily from a $117.4 million increase in the year-end balance of cash and cash equivalents, and a $153.7 million decrease in current installments of long-term debt.
In addition, the year-end balance of accounts receivabletrade increased by $103.5 million due primarily to increases of $59.2 million for gas sales at NEMI, $17.6 million for joint operations receivables, $13.0 million for crude oil and natural gas accruals in the U. S.  and U. K.  and $8.3 million for electricity sales in Ecuador.
Cash Flows Operating Activities  The Company reported a $105.4 million year-over-year increase in cash flows from operating activities.
Net cash provided by operating activities totaled $708.2 million for the year ended December 31, 2004, compared to $602.8 million in 2003 and $507.0 million in 2002.
The increases for 2004 and 2003 were driven by overall production increases, higher realized commodity prices and higher distributions from the Companys unconsolidated methanol subsidiary.
Investing Activities  Net cash used in investing activities totaled $588.1 million, $444.8 million and $577.5 million for the years ending December 31, 2004, 2003 and 2002, respectively.
The Companys investing activities relate primarily to expenditures made for the exploration and development of oil and gas properties.
Expenditures were offset by the receipt of $62.5 million, $81.1 million and $20.4 million from sales of assets during 2004, 2003 and 2002, respectively.
Financing Activities  Net cash provided by/(used in) financing activities totaled ($2.7) million, ($111.0) million and $12.8 million for the years ending December 31, 2004, 2003 and 2002, respectively.
Financing activities consist primarily of proceeds from and repayments of bank or other long-term debt, repayment of notes payable, the payment of cash dividends and proceeds from the exercise of stock options.
During 2004, the Company had a net $48.7 million reduction in outstanding debt.
In addition, the Company received $62.6 million from the exercise of stock options.


| (in millions, except ratios) 2006 2005 2004 | Domestic General(c)(d): | Loss ratio | Expense ratio | Combined ratio | Foreign General(c)(d): | Loss ratio(a) | Expense ratio(e)(f) | Combined ratio | Consolidated(c)(d): | Loss ratio | Expense ratio | Combined ratio |


We use our cash flows to fund our operations and investments in our business, including tower maintenance and improvements, tower construction and DAS network installations, and tower and land acquisitions.
During the years ended December 31, 2008 and 2007, we also used a significant amount of our cash flows to fund refinancing and repurchases of our outstanding indebtedness, as well as our stock repurchase programs.
By refinancing and repurchasing a portion of our outstanding indebtedness, we improved our financial position, which increased our financial flexibility and our ability to return value to our stockholders.
Our significant transactions in 2008 included the following: ?
We entered into a new $325.0 million Term Loan pursuant to our Revolving Credit Facility and used the net proceeds, together with available cash, to repay $325.0 million of existing indebtedness under the Revolving Credit Facility.  ?
We reduced the amount of indebtedness outstanding under our convertible notes through conversions of approximately $201.1 million face amount of convertible notes into shares of our Common Stock.


| Shares Weighted-Average  Exercise Price Weighted-Average  Remaining  Contractual Term Aggregate  Intrinsic Value | Outstanding, beginning of the year | Granted | Exercised | Forfeited or expired | Outstanding, end of the year | Exercisable, end of the year | Exercisable and expected to vest |


| 2001 % of Revenue 2000 % of Revenue % change | North America | South America | Caribbean* | Europe/Africa | Asia |


Income Tax Liabilities Noncurrent deferred income tax liabilities as of 30 September 2015 were $903.3.
Tax liabilities related to unrecognized tax benefits as of 30 September 2015 were $97.5.
These tax liabilities were excluded from the Contractual Obligations table, as it is impractical to determine a cash impact by year given that payments will vary according to changes in tax laws, tax rates, and our operating results.
In addition, there are uncertainties in timing of the effective settlement of our uncertain tax positions with respective taxing authorities.
Refer to Note 23, Income Taxes, to the consolidated financial statements for additional information.


(1) Prior period amounts are presented on a basis consistent with the current period presentation, reflecting the adoption of ASU 2015-03


| 2010 $55,178 | 2011 | 2012 | 2013 | 2014 | Thereafter | Future Minimum Lease Payments |


| December 31, | (in millions) | Commercial | Commercial real estate | Leases | Total commercial loans and leases | Residential mortgages | Home equity loans | Home equity lines of credit | Home equity loans serviced by others | Home equity lines of credit serviced by others | Education | Total retail loans | Total non-core loans | Other assets | Total non-core assets |


| 2015 2014 Change | First quarter | Second quarter | Third quarter | Fourth quarter | Total year |


| Rating equivalent 2012 2011 | December 31,(in millions, except ratios) | AAA/Aaa to AA-/Aa3 | A+/A1 to A-/A3 | BBB+/Baa1 to BBB-/Baa3 | BB+/Ba1 to B-/B3 | CCC+/Caa1 and below | Total |


| 2017 | Capital adequacy (Basel III) | Total risk-weighted assets | Tier 1 leverage ratio | Tier 1 risk-based capital ratio | Total risk-based capital ratio | Tier 1 common risk-based capital ratio | Tangible common equity / tangible asset ratio -7(9) | Tangible equity / tangible asset ratio -8(9) | Tangible common equity / risk-weighted assets ratio -9 |


| In millions 2007 2006 2005 | Sales | Operating Profit |


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


llar, ongoing concerns about supplies of crude oil, and geopolitical risk.
Later in 2008, crude oil prices sharply declined as the U. S.  dollar rebounded and global demand decreased as a result of economic recession.
The price decrease continued into 2009, but reversed after dropping below $33.98 in February, ending the year at $79.36.
Our domestic crude oil production is about 62 percent sour, which means that it contains more sulfur than light sweet WTI does.
Sour crude oil also tends to be heavier than light sweet crude oil and sells at a discount to light sweet crude oil because of higher refining costs and lower refined product values.
Our international crude oil production is relatively sweet and is generally sold in relation to the Dated Brent crude benchmark.
The differential between WTI and Dated Brent average prices narrowed to $0.42 in 2009 compared to $2.49 in 2008 and $0.02 in 2007.


| Percent Change | 2011 vs. 2010 | Year Ended December 31, | Worldwide | Eurasia & Africa | Europe | Latin America | North America | Pacific | Bottling Investments |


| (Dollars in millions) Fiscal2014 Fiscal2013 Fiscal2012 2014-2013% Change 2013-2012% Change | Product revenue | Service and other revenue | Total segment revenue | % of total revenue | Segment operating income | % of related revenue |


| Rating Agency Rating Outlook | Fitch | Moody's | Standard & Poor's |


| 2007 2006 2005 | Common stock | Class B preferred stock 10% | Class C preferred stock 10% | Class E preferred stock 87/8% |


Investment Margins and Other Profitability Factors Many of our insurance products sold in international markets provide for the buildup of cash values for the policyholder at mandated guaranteed interest rates.
Authorities in some jurisdictions regulate interest rates guaranteed in our insurance contracts.
The regulated guaranteed interest rates do not necessarily match the actual returns on the underlying investments.
The spread between the actual investment returns and these guaranteed rates of return to the policyholder is an element of the profit or loss that we will experience on these products.
With regulatory approval, guaranteed rates may be changed on new business.
While these actions enhance our ability to set rates commensurate with available investment returns, the major sources of profitability on our products sold in Japan, other than those sold by Gibraltar Life, are margins on mortality, morbidity and expense charges rather than investment spreads.
We base premiums and cash values in most countries in which we operate on mandated mortality and morbidity tables.
Our mortality and morbidity experience in the International Insurance segment on an overall basis in the years ended December 31, 2010, 2009 and 2008 was well within our pricing assumptions and below the guaranteed levels reflected in the premiums we charge.
International Investments Operating Results The following table sets forth the International Investments segments operating results for the periods indicated.


| Average Balances | Change from 2010 | Fully-taxable equivalent basis-1 | (dollar amounts in millions) | Interest-bearing deposits in banks | Trading account securities | Federal funds sold and securities purchased under resale agreement | Loans held for sale | Available-for-sale and other securities: | Taxable | Tax-exempt | Total available-for-sale and other securities | Held-to-maturity securities — taxable | Loans and leases: -3 | Commercial: | Commercial and industrial | Commercial real estate: | Construction | Commercial | Commercial real estate | Total commercial | Consumer: | Automobile loans and leases | Home equity | Residential mortgage | Other consumer | Total consumer | Total loans and leases | Allowance for loan and lease losses | Net loans and leases | Total earning assets | Cash and due from banks | Intangible assets | All other assets | Total Assets | Deposits: | Demand deposits — noninterest-bearing | Demand deposits — interest-bearing | Money market deposits | Savings and other domestic deposits | Core certificates of deposit | Total core deposits | Other domestic time deposits of $250,000 or more | Brokered time deposits and negotiable CDs | Deposits in foreign offices | Total deposits | Short-term borrowings | Federal Home Loan Bank advances | Subordinated notes and other long-term debt | Total interest-bearing liabilities | All other liabilities | Shareholders’ equity | Total Liabilities and Shareholders’ Equity |


| Severance and Other Benefits Asset Actions Contract Actions/ Other Total | 2013 Charge | Amount reflected in pension liability | Noncash expenses | Cash expenditures | Currency translation adjustment | Accrued balance |


Table of Contents Hologic, Inc.  Notes to Consolidated Financial Statements (continued) (In thousands, except per share data) location during fiscal 2009.
The Company was responsible for a significant portion of the construction costs and therefore was deemed, for accounting purposes, to be the owner of the building during the construction period, in accordance with ASC 840, Leases, Subsection 40-15-5.
During the year ended September 27, 2008, the Company recorded an additional $4,400 in fair market value of the building, which was completed in fiscal 2008.
This is in addition to the $3,000 fair market value of the land and the $7,700 fair market value related to the building constructed that Cytyc had recorded as of October 22, 2007.
The Company has recorded such fair market value within property and equipment on its Consolidated Balance Sheets.
At September 26, 2009, the Company has recorded $1,508 in accrued expenses and $16,329 in other long-term liabilities related to this obligation in the Consolidated Balance Sheet.
The term of the lease is for a period of approximately ten years with the option to extend for two consecutive five-year terms.
The lease term commenced in May 2008, at which time the Company began transferring the Company’s Costa Rican operations to this facility.
It is expected that this process will be complete by February 2009.
At the completion of the construction period, the Company reviewed the lease for potential sale-leaseback treatment in accordance with ASC 840, Subsection 40, Sale-Leaseback Transactions (formerly SFAS No.98 (“SFAS 98”), Accounting for Leases: Sale-Leaseback Transactions Involving Real Estate, Sales-Type Leases of Real Estate, Definition of the Lease Term, and Initial Direct Costs of Direct Financing Leases—an amendment of Financial Accounting Standards Board (“FASB”) Statements No.13, 66, and 91 and a rescission of FASB Statement No.26 and Technical Bulletin No.79-11).
Based on its analysis, the Company determined that the lease did not qualify for sale-leaseback treatment.
Therefore, the building, leasehold improvements and associated liabilities will remain on the Company’s financial statements throughout the lease term, and the building and leasehold improvements will be depreciated on a straight line basis over their estimated useful lives of 35 years.
Future minimum lease payments, including principal and interest, under this lease were as follows at September 26, 2009:


Litigation expense.
In the second quarter of fiscal 2016, we accrued a litigation expense of $8.9 million, which included a patent-related jury verdict for $6.4 million and $2.5 million in legal fees and other costs associated with the litigation.
The accrual was adjusted by immaterial amounts in the third and fourth quarters of fiscal 2016 and the second and third quarters of fiscal year 2017 to better reflect our total expected litigation expense.
See Note 7 - Commitments and Contingencies of the Notes to Financial Statements (Part II, Item 8 of this Form 10-K) for additional information regarding this litigation.


| Net Salesfor the Year EndedSeptember 30, Segment EBITAfor the Year EndedSeptember 30, | (in millions) | Building Solutions North America | Building Solutions EMEA/LA | Building Solutions Asia Pacific | Global Products | $22,835 |


(a) Includes the impact of RBC Bank (USA), which we acquired on March 2, 2012.
(b) Includes the impact of National City, which we acquired on December 31, 2008.
(c) Amount for 2009 includes recognition of a $1.1 billion pretax gain on our portion of the increase in BlackRocks equity resulting from the value of BlackRock shares issued in connection with BlackRocks acquisition of Barclays Global Investors (BGI) on December 1, 2009.
(d) Amount for 2008 includes the $504 million conforming provision for credit losses related to our National City acquisition.
(e) Includes results of operations for PNC Global Investment Servicing Inc.  (GIS) through June 30, 2010 and the related after-tax gain on sale.
We sold GIS effective July 1, 2010, resulting in a gain of $639 million, or $328 million after taxes, recognized during the third quarter of 2010.
See Sale of PNC Global Investment Servicing in the Executive Summary section of Item 7 and Note 2 Acquisition and Divestiture Activity in the Notes To Consolidated Financial Statements included in Item 8 of this Report for additional information.
(f) We redeemed the Series N (TARP) Preferred Stock on February 10, 2010.
In connection with the redemption, we accelerated the accretion of the remaining issuance discount on the Series N Preferred Stock and recorded a corresponding reduction in retained earnings of $250 million in the first quarter of 2010.
This resulted in a noncash reduction in net income attributable to common shareholders and related basic and diluted earnings per share.
The Series N Preferred Stock was issued on December 31, 2008.
Certain prior period amounts have been reclassified to conform with the current period presentation, which we believe is more meaningful to readers of our consolidated financial statements.
For information regarding certain business, regulatory and legal risks, see Item 1A Risk Factors, the Risk Management section of Item 7 of this Report, and Note 23 Legal Proceedings and Note 24 Commitments and Guarantees in the Notes To Consolidated Financial Statements included in Item 8 of this Report for additional information.
Also, see the Cautionary Statement Regarding Forward-Looking Information and Critical Accounting Estimates And Judgments sections included in Item 7 of this Report for certain other factors that could cause actual results or future events to differ, perhaps materially, from historical performance and from those anticipated in the forward-looking statements included in this Report.
See also


| 2013 % Change 2012 % Change 2011 | Boys | Games | Girls | Preschool | Net Revenues |


| (In millions) 2004 2003 2002 | Sales and transfers of oil and gas produced, net of production, transportation, and administrative costs | Net changes in prices and production, transportation and administrative costs related to future production | Extensions, discoveries and improved recovery, less related costs | Development costs incurred during the period | Changes in estimated future development costs | Revisions of previous quantity estimates | Net changes in purchases and sales of minerals in place | Net change in exchanges of minerals in place | Accretion of discount | Net change in income taxes | Timing and other | Net change for the year | Beginning of year | End of year | Net change for the year from discontinued operations |


| Available for Sale Held to Maturity | (in millions) | Due in one year or less | Due after one year through five years | Due after five years through ten years | Due after ten years | Mortgage-backed, asset-backed and collateralized | Total available for sale |


| Years Ended December 31, | 2010 | (In millions) | Estimated fair value at January 1, | Acquisition of MSRs | Origination of MSRs | Reductions due to loan payments | Reductions due to loan sales | Changes in estimated fair value due to: | Changes in valuation model inputs or assumptions | Estimated fair value at December 31, |


| Current assets $22.7 | Property and equipment, net | Goodwill | Developed technology | IPR&D | Other assets | Current liabilities assumed | Deferred income taxes | Total purchase price | Less: cash acquired | Total purchase price, net of cash acquired |


| 2018 2019 2020 2021 2022 Thereafter Total | Property mortgages and other loans | MRA facilities | Revolving credit facility | Unsecured term loans | Senior unsecured notes | Trust preferred securities | Capital lease | Ground leases | Estimated interest expense | Joint venture debt | Total |