We are required under the terms of our Preferred Stock to pay scheduled quarterly dividends, subject to legally available funds.
For so long as the Preferred Stock remains outstanding, (1) we will not declare, pay or set apart funds for the payment of any dividend or other distribution with respect to any junior stock or parity stock and (2) neither we, nor any of our subsidiaries, will, subject to certain exceptions, redeem, purchase or otherwise acquire for consideration junior stock or parity stock through a sinking fund or otherwise, in each case unless we have paid or set apart funds for the payment of all accumulated and unpaid dividends with respect to the shares of Preferred Stock and any parity stock for all preceding dividend periods.
Pursuant to this policy, we paid quarterly dividends of $0.265625 per share on our Preferred Stock on February 1, 2009, May 1, 2009, August 3, 2009 and November 2, 2009 and similar quarterly dividends during each quarter of 2008.
The annual cash dividend declared and paid during the years ended December 31, 2009 and 2008 were $10 million and $10 million, respectively.
On January 5, 2010, we declared a cash dividend of $0.265625 per share on our Preferred Stock amounting to $3 million and a cash dividend of $0.04 per share on our Series A common stock amounting to $6 million.
Both cash dividends are for the period from November 2, 2009 to January 31, 2010 and were paid on February 1, 2010 to holders of record as of January 15, 2010.
On February 1, 2010, we announced we would elect to redeem all of our outstanding Preferred Stock on February 22, 2010.
Holders of the Preferred Stock also have the right to convert their shares at any time prior to 5:00 p. m. , New York City time, on February 19, 2010, the business day immediately preceding the February 22, 2010 redemption date.
Based on the number of outstanding shares as of December 31, 2009 and considering the redemption of our Preferred Stock, cash dividends to be paid in 2010 are expected to result in annual dividend payments less than those paid in 2009.
The amount available to us to pay cash dividends is restricted by our senior credit agreement.
Any decision to declare and pay dividends in the future will be made at the discretion of our Board of Directors and will depend on, among other things, our results of operations, cash requirements, financial condition, contractual restrictions and other factors that our Board of Directors may deem relevant.


| For the fiscal year ended June 30, 2019 (in millions) | Balance as of July 1, 2018 | Deferral of revenue | Recognition of deferred revenue(a) | Other | Balance as of June 30, 2019 |


| % of Net Sales | 2010 - 2012 | $0 to $400 million | $400 million to $600 million | $600 million to $800 million | $800 million to $1.0 billion | In excess of $1.0 billion |


| Year ended December 31, | 2010 | (in millions) | Operating results: | Revenues | Benefits and expenses | Adjusted operating income | Realized investment gains (losses), net, and related adjustments(1) | Related charges-1(2) | Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures |


| 2007 2006 2005 | Risk-free interest rate | Expected life (years) | Expected dividend yield | Volatility |


CERTAIN LONG-DURATION CONTRACTS WITH GUARANTEES The Company issues variable annuity contracts through its separate accounts for which investment income and investment gains and losses accrue directly to, and investment risk is borne by, the contractholder.
The Company also issues variable annuity contracts with general and separate account options where the Company contractually guarantees to the contractholder a return of no less than total deposits made to the contract adjusted for any partial withdrawals (“return of net deposits”).
In certain of these variable annuity contracts, the Company also contractually guarantees to the contractholder a return of no less than (1) total deposits made to the contract adjusted for any partial withdrawals plus a minimum return (“minimum return”), and/or (2) the highest contract value on a specified date adjusted for any withdrawals (“contract value”).
These guarantees include benefits that are payable in the event of death, annuitization or at specified dates during the accumulation period and withdrawal and income benefits payable during specified periods.
The Company also issues annuity contracts with market value adjusted investment options (“MVAs”), which provide for a return of principal plus a fixed rate of return if held-to-maturity, or, alternatively, a “market adjusted value” if surrendered prior to maturity or if funds are reallocated to other


| Carrying Value December 31, Weighted Average Interest Rate December 31, | 2013 | (in millions) | Debt of consolidated CDOs due 2016-2025 | Floating rate revolving credit borrowings due 2014 | Floating rate revolving credit borrowings due 2015 | Floating rate revolving credit borrowings due 2017 | Floating rate revolving credit borrowings due 2018 | Floating rate revolving credit borrowings due 2019 | Total |


| Year Ended December 31, | 2017 | Americas | Europe, Middle East and Africa | Asia-Pacific | Total revenue |


(1) The Company holds a receivable from the seller of a prior acquisition in accordance with the purchase agreement.
Assessments levied against the Company were $2 million, ($1) million and $2 million for the years ended December 31, 2008, 2007 and 2006, respectively.
Effects of Inflation The Company does not believe that inflation has had a material effect on its consolidated results of operations, except insofar as inflation may affect interest rates.
Inflation in the United States has remained contained and been in a general downtrend for an extended period.
However, in light of recent and ongoing aggressive fiscal and monetary stimulus measures by the U. S.  federal government and foreign governments, it is possible that inflation could increase in the future.
An increase in inflation could affect our business in several ways.
During inflationary periods, the value of fixed income investments falls which could increase realized and unrealized losses.
Inflation also increases expenses for labor and other materials, potentially putting pressure on profitability if such costs can not be passed through in our product prices.
Inflation could also lead to increased costs for losses and loss adjustment expenses in our Auto & Home business, which could require us to adjust our pricing to reflect our expectations for future inflation.
If actual inflation exceeds the expectations we use in pricing our policies, the profitability of our Auto & Home business would be adversely affected.
Prolonged and elevated inflation could adversely affect the financial markets and the economy generally, and dispelling it may require governments to pursue a restrictive fiscal and monetary policy, which could constrain overall economic activity, inhibit revenue growth and reduce the number of attractive investment opportunities.
Adoption of New Accounting Pronouncements Fair Value Effective January 1, 2008, the Company adopted SFAS No.157, Fair Value Measurements.
SFAS 157 which defines fair value, establishes a consistent framework for measuring fair value, establishes a fair value hierarchy based on the observability of inputs used to measure fair value, and requires enhanced disclosures about fair value measurements and applied the provisions of the statement prospectively to assets and liabilities measured at fair value.
The adoption of SFAS 157 changed the valuation of certain freestanding derivatives by moving from a mid to bid pricing convention as it relates to certain volatility inputs as well as the addition of liquidity adjustments and adjustments for risks inherent in a particular input or valuation technique.
The adoption of SFAS 157 also changed the valuation of the Companys embedded derivatives, most significantly the valuation of embedded derivatives associated with certain riders on variable annuity contracts.
The change in valuation of embedded derivatives associated with riders on annuity contracts resulted from the incorporation of risk margins associated with non capital market inputs and the inclusion of the Companys own credit standing in their valuation.
At January 1, 2008, the impact of adopting SFAS 157 on assets and liabilities measured at estimated fair value was $30 million ($19 million, net of income tax) and was recognized as a change in estimate in the accompanying consolidated statement of income where it was presented in the respective income statement caption to which the item measured at estimated fair value is presented.
There were no significant changes in estimated fair value of items measured at fair value and reflected in accumulated other comprehensive income (loss).
The addition of risk margins and the Companys own credit spread in the valuation of embedded derivatives associated with annuity contracts may result in significant volatility in the Companys consolidated net income in future periods.
Note 24 of the Notes to the


| 2018 2017 2016 | Valuation date stock price | Expected annual dividend yield | Expected volatility | Risk-free interest rate | Fair value of stock-based performance units outstanding |


| Change | Fiscal Year | 2012 | Gross Margin | Gross Margin % |


| At July 31, 2011 At July 31, 2010 | (In millions) | Assets: | Cash equivalents, primarily money market funds | Available-for-sale debt securities: | Municipal bonds | Municipal auction rate securities | Corporate notes | U.S. agency securities | Total available-for-sale debt securities | Total assets measured at fair value on a recurring basis | Liabilities: | Senior notes -1 |


| In billions of dollars Citigroup parent company CGMHI-2 Citigroup Funding Inc.-2 Other Citigroup subsidiaries | Long-term debt | Commercial paper |


| Number of shares outstanding 1,447,618 | Weighted-average exercise price (per share) | Weighted-average remaining contractual term (in years) | Aggregate intrinsic value |


| Basel III Advanced Fully Phased-In December 31, 2014 Fully phased-in minimum capital ratios(a) Fully phased-in well-capitalized ratios(b) | Risk-based capital ratios: | CET1 capital | Tier 1 capital | Total capital | Leverage ratio: | Tier 1 | SLR |


| 2014 2015 - 2018 Total | Ameren Missouri | Ameren Illinois | ATXI | Other(a) | Ameren |


(a) UEs expenditures are expected to be recoverable in rates over time.
See Note 15  Commitments and Contingencies to our financial statements under Part II, Item 8, of this report for a further discussion of environmental matters.
Cash Flows from Financing Activities 2008 versus 2007 During the year ended December 31, 2008, the Ameren Companies issued $1.9 billion of senior debt.
The proceeds were used to repurchase, redeem and fund maturities of $842 million of long-term debt, to reduce short-term borrowings, and to fund capital expenditures and other working capital needs at UE, CIPS, Genco, CILCO, and IP.
During the year ended December 31, 2007, net short-term debt borrowings of $860 million and long-term borrowings of $674 million were used to fund $488 million of maturities of long-term debt, to fund working capital needs at Ameren subsidiaries and to build liquidity during a period of legislative uncertainty in Illinois.
Additionally, CILCO redeemed the remaining shares of its 5.85% Class A preferred stock to complete the mandatory sinking fund redemption requirement resulting in a $16 million use of cash during 2008 compared with 2007.
Benefiting 2008, compared with 2007, was a $63 million increase in proceeds from the issuance of Ameren common stock, which resulted from increased sales through Amerens 401(k) plan and DRPlus.
UEs net cash from financing activities increased in the year ended December 31, 2008, compared with the year ended December 31, 2007.
During 2008, UE used $699 million in proceeds from the issuance of senior secured notes to redeem outstanding auction-rate environmental improvement revenue refunding bonds that had adjusted to higher rates as a result of the collapse of the auction-rate securities market, and to fund the current maturity of UEs 6.75% first mortgage bonds.
Additionally, net short-term borrowings increased $321 million.
These borrowings were primarily used to fund working capital needs and capital expenditures.
In 2007, UE issued $424 million in senior secured notes and received a $380 million capital contribution from Ameren to fund working capital requirements and to reduce net short-term debt borrowings.
CIPS had a net use of cash from financing activities in 2008, compared with a net source of cash in 2007.
This change was because CIPS used net money pool borrowings and existing cash to fund a net reduction in short-term debt, to redeem $35 million of auction-rate environmental improvement revenue refunding bonds that had adjusted to higher rates as a result of the collapse of the auction-rate securities market, and to fund the maturity of $15 million of its 5.375% senior secured notes during 2008.
In 2007, CIPS used net short-term debt borrowings of $90 million to fund working capital needs and build liquidity and to fund $40 million of common stock dividends.
Genco issued $300 million of 7.00% senior unsecured notes during 2008, which resulted in a net source of cash from financing activities compared with a net use of cash in 2007.
The proceeds from the issuance were used to fund capital expenditures and other working capital requirements, including a net reduction of $200 million of short-term borrowings during 2008 compared with 2007.
CILCORPs and CILCOs cash provided by financing activities decreased in 2008 compared with 2007.
This decrease was primarily the result of CILCORPs and CILCOs net repayments of short-term borrowings during 2008 compared with 2007.
These repayments were funded by a net increase in money pool borrowings of $98 million, primarily at AERG, and CILCOs issuance of $150 million of its 8.875% senior secured notes.
Partially offsetting the decrease were reduced redemptions and maturities of long-term debt in 2008.
During 2008, $19 million of auction-rate environmental improvement revenue refunding bonds that had adjusted to higher rates as a result of the collapse of the auction-rate securities market were redeemed at CILCO.
In 2007, $50 million of CILCOs 7.50% bonds matured.
Also benefiting cash flows for the year ended December 31, 2008, were net borrowings of a $150 million direct loan from Ameren at CILCORP compared with $71 million net repayments during 2007.
for one year.
Subject to certain exceptions, the Company also offers a three-year limited warranty to end users for those CPU and APU products purchased as individually packaged products, commonly referred to as processors in a box, and for PC workstation products.
The Company also offered extended limited warranties to certain customers of tray microprocessor products and/or workstation graphics or server products who have written agreements with the Company and target their computer systems at the commercial and/or embedded markets.
Changes in the Companys estimated liability for product warranty during the years ended December 30, 2017 and December 31, 2016 are as follows:


d $920 million of 9.0% fixed-rate junior subordinated notes to retail investors.
Both issuances are considered hybrid capital securities, which receive enhanced equity treatment from the rating agencies.
Both series of notes have a scheduled maturity of June 15, 2038 and a final maturity of June 15, 2068.
In connection with the issuance of both series of notes, Prudential Financial entered into a replacement capital covenant, or RCC, for the benefit of holders of its 6.625% Senior Notes due 2037.
Under the RCC, Prudential Financial agreed that it will not repay, redeem, defease, or purchase the notes prior to June 15, 2048, unless it has received proceeds from the issuance of specified replacement capital securities, which include, but are not limited to, hybrid capital securities and common stock.
See Note 14 to our Consolidated Financial Statements for additional information concerning these junior subordinated notes.


| Restricted Stock Units Outstanding WeightedAverage Grant-Date Fair Value of Restricted StockUnits Outstanding | Future Service Required | Outstanding, December 2016 | Granted | Forfeited | Delivered | Vested | Outstanding, December 2017 |


Investments.
The board of directors of each of the Company’s operating subsidiaries is responsible for establishing investment policy and guidelines and, together with senior management, for overseeing their execution.
The Company’s principal investment objectives are to ensure funds are available to meet its insurance and reinsurance obligations and to maximize after-tax investment income while maintaining a high quality diversified investment portfolio.
Considering these objectives, the Company views its investment portfolio as having two components: 1) the investments needed to satisfy outstanding liabilities (its core fixed maturities portfolio) and 2) investments funded by the Company’s shareholders’ equity.
For the portion needed to satisfy global outstanding liabilities, the Company generally invests in taxable and tax-preferenced fixed income securities with an average credit quality of Aa3.
For the U. S.  portion of this portfolio, our mix of taxable and tax-preferenced investments is adjusted periodically, consistent with the Company’s current and projected U. S.  operating results, market conditions and our tax position.
This global fixed maturity securities portfolio is externally managed by an independent, professional investment manager using portfolio guidelines approved by the Company.
Over the past several years, the Company has expanded the allocation of its investments funded by shareholders’ equity to include: 1) a greater percentage of publicly traded equity securities, 2) emerging market fixed maturities through mutual fund structures, as well as individual holdings, 3) high yield fixed maturities, 4) bank loan securities and 5) private equity limited partnership investments.
The objective of this portfolio diversification is to enhance the risk-adjusted total return of the investment portfolio by allocating a prudent portion of the portfolio to higher return asset classes, which are also less subject to changes in value with movements in interest rates.
The Company limits its allocation to these asset classes because of 1) the potential for volatility in their values and 2) the impact of these investments on regulatory and rating agency capital adequacy models.
The Company uses investment managers experienced in these markets and adjusts its allocation to these investments based upon market conditions.
At December 31, 2012, the market value of investments in these investment market sectors, carried at both market and fair value, approximated 63% of shareholders’ equity.
The duration of an investment is based on the maturity of the security but also reflects the payment of interest and the possibility of early prepayments.
The Company’s fixed income investment guidelines include a general duration guideline.
This investment duration guideline is established and periodically revised by management, which considers economic and business factors, as well as the Company’s average duration of potential liabilities, which, at December 31, 2012, is estimated at approximately 3.5 years, based on the estimated payouts of underwriting liabilities using standard duration calculations.


We also own 196 miles of private crude oil pipelines and 850 miles of private refined products pipelines, and we lease 217 miles of common carrier refined product pipelines.
We have partial ownership interests in several pipeline companies that have approximately 780 miles of crude oil pipelines and 3,600 miles of refined products pipelines, including about 970 miles operated by MPL.
In addition, MPL operates most of our private pipelines and 985 miles of crude oil and 160 miles of natural gas pipelines owned by our E&P segment.
Our major refined product pipelines include the owned and operated Cardinal Products Pipeline and the Wabash Pipeline.
The Cardinal Products Pipeline delivers refined products from Kenova, West Virginia, to Columbus, Ohio.
The Wabash Pipeline system delivers product from Robinson, Illinois, to various terminals in the area of Chicago, Illinois.
Other significant refined product pipelines owned and operated by MPL extend from: Robinson, Illinois, to Louisville, Kentucky; Garyville, Louisiana, to Zachary, Louisiana; and Texas City, Texas, to Pasadena, Texas.
In addition, as of December 31, 2009, we had interests in the following refined product pipelines: ?65 percent undivided ownership interest in the Louisville-Lexington system, a petroleum products pipeline system extending from Louisville to Lexington, Kentucky; ?60 percent interest in Muskegon Pipeline LLC, which owns a refined products pipeline extending from Griffith, Indiana, to North Muskegon, Michigan; ?50 percent interest in Centennial Pipeline LLC, which owns a refined products system connecting the Gulf Coast region with the Midwest market; ?17 percent interest in Explorer Pipeline Company, a refined products pipeline system extending from the Gulf Coast to the Midwest; and ?6 percent interest in Wolverine Pipe Line Company, a refined products pipeline system extending from Chicago, Illinois, to Toledo, Ohio.
Our major owned and operated crude oil lines run from: Patoka, Illinois, to Catlettsburg, Kentucky; Patoka, Illinois, to Robinson, Illinois; Patoka, Illinois, to Lima, Ohio; Lima, Ohio to Canton, Ohio; Samaria, Michigan, to Detroit, Michigan; and St.  James, Louisiana, to Garyville, Louisiana.
As of December 31, 2009, we had interests in the following crude oil pipelines: ?51 percent interest in LOOP LLC, the owner and operator of LOOP, which is the only U. S.  deepwater oil port, located 18 miles off the coast of Louisiana, and a crude oil pipeline connecting the port facility to storage caverns and tanks at Clovelly, Louisiana; ?59 percent interest in LOCAP LLC, which owns a crude oil pipeline connecting LOOP and the Capline system;


| (Dollars in millions) 2016 2017 2018 2019 2020 Thereafter Total | Bank of America Corporation | Senior notes | Senior structured notes | Subordinated notes | Junior subordinated notes | Total Bank of America Corporation | Bank of America, N.A. | Senior notes | Subordinated notes | Advances from Federal Home Loan Banks | Securitizations and other Bank VIEs-1 | Other | Total Bank of America, N.A. | Other debt | Senior notes | Structured liabilities | Nonbank VIEs-1 | Other | Total other debt | Total long-term debt |


| Year Ended December 31, | 2005 | Gas Delivered (Mdth) | Firm Sales | Full service | Firm transportation | Total Firm Sales and Transportation | Interruptible Sales | Total Gas Sold to Con Edison of New York Customers | Transportation of customer-owned gas | NYPA | Other (mainly generating plants) | Off-System Sales | Total Sales and Transportation | Gas Delivered ($ in millions) | Firm Sales | Full service | Firm transportation | Total Firm Sales and Transportation | Interruptible Sales | Total Gas Sold to Con Edison of New York Customers | Transportation of customer-owned gas | NYPA | Other (mainly generating plants) | Off-System Sales | Other operating revenues (mainly regulatory amortizations) | Total Sales and Transportation | Average Revenue per DTH Sold | Residential | General | 12 Months Ended December 31, | (DOLLARS IN MILLIONS) | Net income | Interest expense | Income taxes | Depreciation and amortization | Specified items-1 | Non-cash items-2 | Adjusted EBITDA |


| Year Ended December 31, % Change | 2016 | Revenue (in millions) | Operating Expenses (in millions) | Operating Profit (in millions) | Operating Margin | Average Daily Package Volume (in thousands) | Average Revenue Per Piece | Net Income (in millions) | Basic Earnings Per Share | Diluted Earnings Per Share |


| Years Ended December 31, | 2017 | Mid-Continent Region (El Dorado and Tulsa Refineries) | Sales of refined products: | Gasolines | Diesel fuels | Jet fuels | Fuel oil | Asphalt | Base oils | LPG and other | Total |


| (in millions, except per share data) 2004 2003 2002 | Net income, as reported | Add: Stock-based employee compensationexpense included in net income, net ofrelated tax effects | Less: Total stock-based employeecompensation expense determined underfair value based method for all awards,net of related tax effects | Pro forma net income | Net income per common share | Basic | Reported | Pro forma | Assuming dilution | Reported | Pro forma |


Managements Discussion and Analysis Liquidity Risk Management Liquidity is of critical importance to financial institutions.
Most of the failures of financial institutions have occurred in large part due to insufficient liquidity.
Accordingly, the firm has in place a comprehensive and conservative set of liquidity and funding policies to address both firm-specific and broader industry or market liquidity events.
Our principal objective is to be able to fund the firm and to enable our core businesses to continue to serve clients and generate revenues, even under adverse circumstances.
We manage liquidity risk according to the following principles: Excess Liquidity.
We maintain substantial excess liquidity to meet a broad range of potential cash outflows and collateral needs in a stressed environment.
Asset-Liability Management.
We assess anticipated holding periods for our assets and their expected liquidity in a stressed environment.
We manage the maturities and diversity of our funding across markets, products and counterparties, and seek to maintain liabilities of appropriate tenor relative to our asset base.
Contingency Funding Plan.
We maintain a contingency funding plan to provide a framework for analyzing and responding to a liquidity crisis situation or periods of market stress.
This framework sets forth the plan of action to fund normal business activity in emergency and stress situations.
These principles are discussed in more detail below.
Excess Liquidity Our most important liquidity policy is to pre-fund our estimated potential cash and collateral needs during a liquidity crisis and hold this excess liquidity in the form of unencumbered, highly liquid securities and cash.
We believe that the securities held in our global core excess would be readily convertible to cash in a matter of days, through liquidation, by entering into repurchase agreements or from maturities of resale agreements, and that this cash would allow us to meet immediate obligations without needing to sell other assets or depend on additional funding from credit-sensitive markets.
As of December 2013 and December 2012, the fair value of the securities and certain overnight cash deposits included in our GCE totaled $184.07 billion and $174.62 billion, respectively.
Based on the results of our internal liquidity risk model, discussed below, as well as our consideration of other factors including, but not limited to, an assessment of our potential intraday liquidity needs and a qualitative assessment of the condition of the financial markets and the firm, we believe our liquidity position as of both December 2013 and December 2012 was appropriate.
The table below presents the fair value of the securities and certain overnight cash deposits that are included in our GCE.


Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Note 6Shareholders Equity Preferred Stock The Company has five million shares of authorized preferred stock, none of which is issued or outstanding.
Under the terms of the Companys Restated Articles of Incorporation, the Board of Directors is authorized to determine or alter the rights, preferences, privileges and restrictions of the Companys authorized but unissued shares of preferred stock.
CEO Restricted Stock Award On March 19, 2003, the Companys Board of Directors granted 10 million shares of restricted stock to the Companys CEO that vested on March 19, 2006.
The amount of the restricted stock award expensed by the Company was based on the closing market price of the Companys common stock on the date of grant and was amortized ratably on a straight-line basis over the three-year requisite service period.
Upon vesting during 2006, the 10 million shares of restricted stock had a fair value of $646.6 million and had grant-date fair value of $7.48 per share.
The restricted stock award was net-share settled such that the Company withheld shares with value equivalent to the CEOs minimum statutory obligation for the applicable income and other employment taxes, and remitted the cash to the appropriate taxing authorities.
The total shares withheld of 4.6 million were based on the value of the restricted stock award on the vesting date as determined by the Companys closing stock price of $64.66.
The remaining shares net of those withheld were delivered to the Companys CEO.
Total payments for the CEOs tax obligations to the taxing authorities was $296 million in 2006 and are reflected as a financing activity within the Consolidated Statements of Cash Flows.
The net-share settlement had the effect of share repurchases by the Company as it reduced and retired the number of shares outstanding and did not represent an expense to the Company.
The Companys CEO has no remaining shares of restricted stock.
For the year ended September 30, 2006, compensation expense related to restricted stock was $4.6 million.


| December 31, Variance 2007 vs. 2006 | 2007 | Financial Condition: | Available-for-sale mortgage-backed and investment securities | Total loans, net | Margin receivables | Total assets | Deposits | Corporate debt | Shareholders’ equity |


| (millions of dollars) 2012 2011 Variance 2012 vs. 2011 2010 Variance 2011 vs. 2010 | Operating activities | Investing activities | Financing activities | Net change | Balance at beginning of period | Balance at end of period |


| Years ended December 31, | ($ in millions, except per share amounts; shares in thousands) | Diluted Earnings per Share(a): | Net earnings attributable to Ball Corporation | Weighted average common shares | Effect of dilutive securities | Weighted average shares applicable to diluted earnings per share | Basic earnings per share | Diluted earnings per share |


| Twelve Months Ended | (millions of dollars) | Operating revenues | Purchased power | Net revenues | Operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Electric operating income |


tracts of $6.2 billion, commitments to purchase securities of $7.9 billion and commitments to purchase loans of $14.3 billion.
The most significant of our vendor contracts include communication services, processing services and software contracts.
Other long-term liabilities include our contractual funding obligations related to the Qualified Pension Plans, Nonqualified Pension Plans and Postretirement Health and Life Plans (the Plans).
Obligations to the Plans are based on the current and projected obligations of the Plans, performance of the Plans assets and any participant contributions, if applicable.
During 2008 and 2007, we contributed $1.6 billion and $243 million to the Plans, and we expect to make at least $229 million of contributions during 2009.
The following table does not include UTBs of $3.5 billion associated with FIN 48 and tax-related interest and penalties of $677 million.
Debt, lease, equity and other obligations are more fully discussed in Note 12  Short-term Borrowings and Long-term Debt and Note 13  Commitments and Contingencies to the Consolidated Financial Statements.
The Plans and UTBs are more fully discussed in Note 16  Employee Benefit Plans and Note 18  Income Taxes to the Consolidated Financial Statements.
Table 9 presents total long-term debt and other obligations at December 31, 2008.
Many of our lending relationships contain funded and unfunded elements.
The funded portion is reflected on our balance sheet.
For lending relationships carried at historical cost, the unfunded component of these commitments is not recorded on our balance sheet until a draw is made under the credit facility; however, a reserve is established for probable losses.
For lending commitments for which we have elected to account for under SFAS 159, the fair value of the commitment is recorded in accrued expenses and other liabilities.
For more information on these commitments and guarantees, including equity commitments, see Note 13  Commitments and Contingencies to the Consolidated Financial Statements.
For more information on the adoption of SFAS 159, see Note 19  Fair Value Disclosures to the Consolidated Financial Statements.
We enter into commitments to extend credit such as loan commitments, SBLCs and commercial letters of credit to meet the financing needs of our customers.
For a summary of the total unfunded, or off-balance sheet, credit extension commitment amounts by expiration date, see the table in Note 13  Commitments and Contingencies to the Consolidated Financial Statements.
Other Commitments We provided support to cash funds managed within GWIM by purchasing certain assets at fair value and by committing to provide a limited amount of capital to the funds.
For more information, see Note 13  Commitments and Contingencies to the Consolidated Financial Statements.


| For the years ended December 31, 2005 2004 2003 | In thousands of dollars | Long-termdebt and lease obligations | Short-termdebt | Capitalizedinterest | Interestexpense, gross | Interestincome | Interestexpense, net |


| In Millions | Components of the rate increase | Investment in rate base | Addition of new gas plant | Operating and maintenance costs | Cost of capital | Working capital | Cost-reduction initiatives | Gross margin | Total |


We maintain debt levels that we establish through consideration of a number of factors, including cash flow expectations, cash requirements for operations, investment plans (including acquisitions), share repurchase activities, our cost of capital, and targeted capital structure.
On April 28, 2017, we used a portion of the $3.0 billion cash dividend received from Everett to redeem $1.5 billion face value of the 2.450% Senior Notes with an original maturity date of October 5, 2017.
A |
institutions.
International Paper continually monitors its positions with and the credit quality of these financial institutions and does not expect nonperformance by the counterparties.
NOTE 14 CAPITAL STOCK The authorized capital stock at both December 31, 2006 and 2005, consisted of 990,850,000 shares of common stock, $1 par value; 400,000 shares of cumulative $4 preferred stock, without par value (stated value $100 per share); and 8,750,000 shares of serial preferred stock, $1 par value.
The serial preferred stock is issuable in one or more series by the Board of Directors without further shareholder action.
In July 2006, in connection with the planned use of projected proceeds from the Companys Transformation Plan, International Papers Board of Directors authorized a share repurchase program to acquire up to $3.0 billion of the Companys stock.
In a modified Dutch Auction tender offer completed in September 2006, International Paper purchased 38,465,260 shares of its common stock at a price of $36.00 per share, plus costs to acquire the shares, for a total cost of approximately $1.4 billion.
In addition, in December 2006, the Company purchased an additional 1,220,558 shares of its common stock in the open market at an average price of $33.84 per share, plus costs to acquire the shares, for a total cost of approximately $41 million.
Following the completion of these share repurchases, International Paper had approximately 454 million shares of common stock issued and outstanding.
NOTE 15 RETIREMENT PLANS U. S.  DEFINED BENEFIT PLANS International Paper maintains pension plans that provide retirement benefits to substantially all domestic employees hired prior to July 1, 2004.
These employees generally are eligible to participate in the plans upon completion of one year of service and attainment of age 21.
Employees hired after June 30, 2004, who are not eligible for these pension plans receive an additional company contribution to their savings plan (see Other Plans on page 83).
The plans provide defined benefits based on years of credited service and either final average earnings (salaried employees), hourly job rates or specified benefit rates (hourly and union employees).
For its qualified defined benefit pension plan, International Paper makes contributions that are sufficient to fully fund its actuarially determined costs, generally equal to the minimum amounts required by the Employee Retirement Income Security Act (ERISA).
In addition, International Paper made voluntary contributions of $1.0 billion to the qualified defined benefit plan in 2006, and does not expect to make any contributions in 2007.
The Company also has two unfunded nonqualified defined benefit pension plans: a Pension Restoration Plan available to employees hired prior to July 1, 2004 that provides retirement benefits based on eligible compensation in excess of limits set by the Internal Revenue Service, and a supplemental retirement plan for senior managers (SERP), which is an alternative retirement plan for senior vice presidents and above who are designated by the chief executive officer as participants.
These nonqualified plans are only funded to the extent of benefits paid, which are expected to be $41 million in 2007.
Net Periodic Pension Expense Service cost is the actuarial present value of benefits attributed by the plans benefit formula to services rendered by employees during the year.
Interest cost represents the increase in the projected benefit obligation, which is a discounted amount, due to the passage of time.
The expected return on plan assets reflects the computed amount of current year earnings from the investment of plan assets using an estimated long-term rate of return.
Net periodic pension expense for qualified and nonqualified U. S.  defined benefit plans comprised the following:


| 2010 2009 2008 | Beginning Balance | Increases related to tax positions taken during a prior year | Decreases related to tax positions taken during a prior year | Increases related to tax positions taken during the current year | Decreases related to settlements with taxing authorities | Decreases related to expiration of statute of limitations | Ending Balance |


The Companys effective tax rate for each of 2017, 2016 and 2015 differs from the U. S.  federal statutory rate of 35.0% due principally to the Companys earnings outside the United States that are indefinitely reinvested and taxed at rates lower than the U. S.  federal statutory rate.
In addition: ?
The effective tax rate of 16.0% in 2017 includes 500 basis points of net tax benefits related to the revaluation of net U. S.  deferred tax liabilities from 35.0% to 21.0% due to the TCJA and release of reserves upon statute of limitation expiration, partially offset by income tax expense related to the Transition Tax on foreign earnings due to the TCJA and changes in estimates associated with prior period uncertain tax positions.  ?
The effective tax rate of 17.5% in 2016 includes 350 basis points of net tax benefits from permanent foreign exchange losses and the release of reserves upon the expiration of statutes of limitation and audit settlements, partially offset by income tax expense related to repatriation of earnings and legal entity realignments associated with the Separation and changes in estimates associated with prior period uncertain tax positions.  ?
The effective tax rate of 14.4% in 2015 includes 290 basis points of net tax benefits from permanent foreign exchange losses, releases of valuation allowances related to foreign operating losses and the release of reserves upon the expiration of statutes of limitation, partially offset by changes in estimates associated with prior period uncertain tax positions.
The Company made income tax payments related to both continuing and discontinued operations of $689 million, $767 million and $584 million in 2017, 2016 and 2015, respectively.
Current income taxes payable related to both continuing and discontinued operations has been reduced by $85 million, $99 million, and $147 million in 2017, 2016 and 2015, respectively, for tax deductions attributable to stock-based compensation, of which, the excess tax benefit over the amount recorded for financial reporting purposes for both continuing and discontinued operations was $55 million, $50 million and $88 million, respectively.
The excess tax benefits realized have been recorded as increases to additional paid-in capital for the years ended December 31, 2016 and 2015 and are reflected as a financing cash inflow in the accompanying Consolidated Statements of Cash Flows.
As a result of the adoption of ASU 2016-09, CompensationStock Compensation, the excess tax benefit for the year ended December 31, 2017 has been recorded as a reduction to the current income tax provision and is reflected as an operating cash inflow in the accompanying Consolidated Statement of Cash Flows.
Included in deferred income taxes related to continuing operations as of December 31, 2017 are tax benefits for U. S.  and nonU.
S.  net operating loss carryforwards totaling $502 million ($283 million of which the Company does not expect to realize and have corresponding valuation allowances).
Certain of the losses can be carried forward indefinitely and others can be carried forward to various dates from 2018 through 2037.
In addition, the Company had general business and foreign tax credit carryforwards related to continuing operations of $171 million ($30 million of which the Company does not expect to realize and have corresponding valuation allowances) as of December 31, 2017, which can be carried forward to various dates from 2018 to 2027.
In addition, as of December 31, 2017, the Company had $12 million of valuation allowances related to other deferred tax asset balances that are not more likely than not of being realized.
As of December 31, 2017, gross unrecognized tax benefits related to continuing operations totaled $737 million ($736 million, net of the impact of $104 million of indirect tax benefits offset by $103 million associated with potential interest and penalties).


| Year ended December 31, | 2015 | (in millions) | Operating results: | Revenues | Benefits and expenses | Adjusted operating income | Realized investment gains (losses), net, and related adjustments | Related charges | Income (loss) from continuing operations before income taxes and equity in earnings of operating joint ventures |


such as future securities market conditions, changes in interest rate levels and policyholder perceptions of our financial strength, each of which could lead to reduced cash inflows or increased cash outflows.
In addition, market volatility can impact the level of capital required to support our businesses, particularly in our annuity business.
Our domestic insurance operations’ cash flows from investment activities result from repayments of principal, proceeds from maturities and sales of invested assets and investment income, net of amounts reinvested.
The primary liquidity risks with respect to these cash flows are the risk of default by debtors or bond insurers, our counterparties’ willingness to extend repurchase and/or securities lending arrangements and market volatility.
As of December 31, 2007 and 2006, our domestic insurance entities had lendable assets of $76 billion and $78 billion, respectively.
Of this amount, $16 billion and $18 billion, as of December 31, 2007 and 2006, respectively, was on loan, the remainder of which, depending on market conditions, are available to be financed through repurchase agreements or securities lending arrangements.
We closely manage these risks through our credit risk management process and regular monitoring of our liquidity position.
In managing the liquidity of our domestic insurance operations, we also consider the risk of policyholder and contractholder withdrawals of funds earlier than our assumptions when selecting assets to support these contractual obligations.
We use surrender charges and other contract provisions to mitigate the extent, timing and profitability impact of withdrawals of funds by customers from annuity contracts and deposit liabilities.
The following table sets forth withdrawal characteristics of our general account annuity reserves and deposit liabilities (based on statutory liability values) as of the dates indicated.


| Principal balance December 31, Principal balance of loans past due 30+ days-1 December 31, Net credit losses-2 | 2006 | Home equity loans | Small business loans | Total loans managed or securitized – Zions Bank | Less loans securitized – Zions Bank-3 | Loans held in portfolio – Zions Bank |


| Retail ShareFor the Years Ended December 31, | 2014 | Copenhagen | Skoal | CopenhagenandSkoal | Other | Total smokeless products |


will begin to expire in 2032.
A deferred tax asset for these tax attribute carryforwards was recorded, and no valuation allowance has been provided, as it is more likely than not that the deferred tax asset will be realized.
Con Edison recorded a full valuation allowance of $3 million in 2015 against its charitable contribution carryforward from 2011.
Due to the expiration of this charitable contribution carryforward in 2016, Con Edison wrote off the deferred tax asset and corresponding valuation allowance.
Charitable contributions carryforward of $5 million and $6 million for 2015 and 2016, respectively, that will expire in 2020 and 2021, respectively, were recorded as a deferred tax asset and no valuation allowance has been provided, as it is more likely than not that the deferred tax asset will be realized.
In addition, a $12 million valuation allowance for New York City net operating loss carryforward and a $4 million valuation allowance for state net operating losses carryforward has been provided; as it is not more likely than not that the deferred tax asset will be realized.
In 2014, tax legislation was enacted in the State of New York that reduced the corporate franchise tax rate from 7.1 percent to 6.5 percent, beginning January 1, 2016.
The application of this legislation decreased Con Edison’s accumulated deferred tax liabilities by $74 million ($69 million for CECONY), decreased Con Edison’s regulatory asset for future income tax by $11 million ($10 million for CECONY) and increased Con Edison’s regulatory liability by $62 million ($59 million for CECONY).
The impact of this tax legislation on Con Edison’s effective tax rate was not material, and there was no impact on CECONY’s effective tax rate for the year ended December 31, 2014.
Under the Taxpayer Relief Act of 2012, 50 percent bonus depreciation expired on December 31, 2013.
The Tax Increase Prevention Act of 2014 extended bonus depreciation for another year through December 31, 2014.
As a result of the extension of bonus depreciation to 2014, Con Edison filed a refund request with the IRS in January 2015 to recover $224 million ($128 million for CECONY) in estimated federal tax payments and received the refund in March 2015.
The Protecting Americans from Tax Hikes Act of 2015 extended bonus depreciation for property acquired and placed in service during 2015 through 2019.
The bonus depreciation percentage is 50 percent for property placed in service during 2015, 2016 and 2017 and phases down to 40 percent in 2018, and 30 percent in 2019.
As a result of the extension of bonus depreciation to 2015, Con Edison filed a refund request with the IRS in January 2016 to recover $160 million in estimated federal tax payments.
In February 2016, Con Edison received a refund of estimated taxes paid in the amount of $160 million ($143 million for CECONY).


Performance Stock Units: In January 2017, Altria Group, Inc.  granted an aggregate of 187,886 performance stock units to eligible employees.
The payout of the performance stock units requires the achievement of certain performance measures, which were predetermined at the time of grant, over a three-year performance cycle.
These performance measures consist of Altria Group, Inc. ’s adjusted diluted earnings per share (“EPS”) compounded annual growth rate and Altria Group, Inc. ’s total shareholder return relative to a predetermined peer group.
The performance stock units are also subject to forfeiture if certain employment conditions are not met.
At December 31, 2017, Altria Group, Inc.  had 170,755 performance stock units remaining, with a weighted-average grant date fair value of $70.39 per performance stock unit.
The fair value of the performance stock units at the date of grant, net of estimated forfeitures, is amortized to expense over the performance period.
Altria Group, Inc.  recorded pre-tax compensation expense related to performance stock units for the year ended December 31, 2017 of $6 million.
The unamortized compensation expense related to Altria Group, Inc. ’s performance stock units was $7 million at December 31, 2017.
Altria Group, Inc.  did not grant any performance stock units during 2016 and 2015.


| Year Ended December 31, 2016 | (in millions) | Current income taxes | Federal | State | Foreign | Total current income taxes | Deferred income taxes | Federal | State | Total deferred income taxes(a) | Investment tax credit amortization | Income tax expense from continuing operations | Tax (benefit) expense from discontinued operations | Total income tax expense included in Consolidated Statements of Operations |


| (Millions of dollars) 2017 2016 | Warranty liability, January 1 | Reduction in liability (payments) | Increase in liability (new warranties) | Warranty liability, December 31 |


| 30 September 2016 2015 | Short-term borrowings | Current portion of long-term debt | Long-term debt | Total Debt | Short-term Borrowings | 30 September | Bank obligations | Commercial paper | Total Short-term Borrowings | Year Ended December 31, | 2008 | Steam Sold (MMlbs) | General | Apartment house | Annual power | Total Steam Delivered to CECONY Customers | Steam Sold ($ in millions) | General | Apartment house | Annual power | Other operating revenues | Total Steam Delivered to CECONY Customers | Average Revenue per Mlb Sold |


Principal Financial Group, Inc.  Notes to Consolidated Financial Statements — (continued) December 31, 2012 4.
Investments — (continued) or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity and (6) for equity securities, our ability and intent to hold the security for a period of time that allows for the recovery in value.
To the extent we determine that a security is deemed to be other than temporarily impaired, an impairment loss is recognized.
Impairment losses on equity securities are recognized in net income and are measured as the difference between amortized cost and fair value.
The way in which impairment losses on fixed maturities are recognized in the financial statements is dependent on the facts and circumstances related to the specific security.
If we intend to sell a security or it is more likely than not that we would be required to sell a security before the recovery of its amortized cost, we recognize an other-than-temporary impairment in net income for the difference between amortized cost and fair value.
If we do not expect to recover the amortized cost basis, we do not plan to sell the security and if it is not more likely than not that we would be required to sell a security before the recovery of its amortized cost, the recognition of the other-than-temporary impairment is bifurcated.
We recognize the credit loss portion in net income and the noncredit loss portion in OCI (‘‘bifurcated OTTI’’).
Total other-than-temporary impairment losses, net of recoveries from the sale of previously impaired securities, were as follows:


Preferred Series D Stock issued and outstanding During the 2016 first and second quarter, Huntington issued $400 million and $200 million of preferred stock, respectively.
As part of these transactions, Huntington issued 24,000,000 depositary shares, each representing a 1/40th ownership interest in a share of 6.250% Series D Non-Cumulative Perpetual Preferred Stock (Preferred D Stock), par value $0.01 per share, with a liquidation preference of $1,000 per share (equivalent to $25 per depositary share).
Each holder of a depositary share, will be entitled to all proportional rights and preferences of the Preferred D Stock (including dividend, voting, redemption, and liquidation rights).
Costs of $15 million related to the issuance of the Preferred D Stock are reported as a direct deduction from the face amount of the stock.
Dividends on the Preferred D Stock will be non-cumulative and payable quarterly in arrears, when, as and if authorized by the Company's board of directors or a duly authorized committee of the board and declared by the Company, at an annual rate of 6.25% per year on the liquidation preference of $1,000 per share, equivalent to $25 per depositary share.
The dividend payment dates will be


| Twelve Months Ended December 31, 2012 Twelve Months Ended December 31, 2011 | (millions of dollars) | Operating revenues | Purchased power | Gas purchased for resale | Net revenues | Operations and maintenance | Depreciation and amortization | Taxes, other than income taxes | Operating income |


| (Amounts in millions) 2013 2012 | Cash and cash equivalents | Trade and other accounts receivable – net | Finance receivables – net | Contract receivables – net | Inventories – net | Other current assets | Total current assets | Notes payable and current maturities of long-term debt | Accounts payable | Other current liabilities | Total current liabilities | Working capital |


| Balance at January 1, 2007 $4,677 | Increases based on tax positions related to the current period | Decreases based on tax positions related to the current period | Increases based on tax positions related to prior periods | Decreases based on tax positions related to prior periods | Decreases related to settlements with taxing authorities | Decreases related to a lapse of applicable statute of limitations | Balance at December 31, 2007 |


| in thousands Total Principal Interest | Debt Payments (excluding the line of credit) | 2015 | 2016 | 2017 | 2018 | 2019 |


CELLULOSE FIBERS HOW WE DID IN 2008 We report sales volume and annual production data for our Cellulose Fibers business segment in Our Business/What We Do/Cellulose Fibers.
Here is a comparison of net sales and revenues and contribution to earnings for the last three years: Net Sales and Revenues and Contribution to Earnings for Cellulose Fibers


| 2017 vs. 2016 | Income / (Expense) | Company sales | Cost of sales | Cost of labor | Occupancy and other | Company restaurant expenses | Restaurant profit |


| December 31, | 2008 | (in millions) | Commercial paper | Other recourse short-term debt | Total short-term debt |


Auction Rate Securities At July 31, 2009, we held a total of $244.5 million in municipal auction rate securities.
Based on the maturities of the underlying securities and the put option described below, we classified $150.9 million of these securities as short-term investments and $93.6 million of these securities as long-term investments on our balance sheet at that date.
All of the municipal auction rate securities we held at July 31, 2009 were rated A or better by the major credit rating agencies and 86% were collateralized by student loans guaranteed by the U. S.  Department of Education.
These securities are long-term debt instruments that are intended to provide liquidity through a Dutch auction process that resets the applicable interest rate at pre-determined intervals, typically every 35 days.
Due to a decrease in liquidity in the global credit markets, in February 2008 auctions began failing for the municipal auction rate securities we held.
Regularly scheduled auctions for these securities have generally continued to fail since that time.
When these auctions initially failed, higher interest rates for many of the securities went into effect in accordance with the terms of the prospectus for each security.
As of July 31, 2009, we had received all interest payments in accordance with the contractual terms of these securities.
During fiscal 2009 issuers redeemed at par value $40.8 million of municipal auction rate securities that we held.
In August 2008 the broker-dealers for our municipal auction rate securities announced settlements under which they may provide liquidity solutions, or purchase, the auction rate securities held by their institutional clients.
On November 4, 2008 we accepted an offer from UBS AG (UBS), one of the broker-dealers for our municipal auction rate securities, that gives us the option to sell UBS a total of $140.9 million in municipal auction rate securities at par value at any time during a two-year period beginning June 30, 2010.
The offer also gives UBS the discretion to buy any or all of these municipal auction rate securities from us at par value at any time.
To date UBS has not purchased any of these securities from us.
We currently intend to exercise our option to sell UBS all of these municipal auction rate securities at par value in accordance with the terms of the offer within the next twelve months.
We continue to have counter-party risk associated with UBS.
Based on our expected operating cash flows and our other sources of cash, we do not believe that the reduction in liquidity of our municipal auction rate securities will have a material impact on our overall ability to meet our liquidity needs.


| Purchase price as of March 2, 2012 $3,599 | Recognized amounts of identifiable assets acquired and (liabilities assumed), at fair value (c) | Cash due from banks | Trading assets, interest-earning deposits with banks, and other short-term investments | Loans held for sale | Investment securities | Net loans | Other intangible assets | Equity investments | Other assets | Deposits | Other borrowed funds | Other liabilities | Total fair value of identifiable net assets | Goodwill |


| 2011 $82,184 | 2012 | 2013 | 2014 | 2015 | Thereafter | Total minimum lease payments | Less: Amount representing lease of the orbital location and estimated executory costs (primarily insurance and maintenance) including profit thereon, included in total minimum lease payments | Net minimum lease payments | Less: Amount representing interest | Present value of net minimum lease payments | Less: Current portion | Long-term portion of capital lease obligations |


MetLife, Inc.  Notes to the Consolidated Financial Statements  (Continued) Information about impaired loans, restructured loans, loans 90 days or more past due and loans in foreclosure is as follows:


credit fundamentals, which if continued, may lead to a rating change.
These indicators are not necessarily a precursor of a rating change nor do they preclude a rating agency from changing a rating at any time without notice.
Currently, Fitch has all the Company’s ratings on Stable outlook, except for the financial strength ratings assigned to Prudential Insurance and certain other insurance subsidiaries which are on Negative outlook.
Moody’s, S&P, and A. M.  Best have all the Company’s ratings on Stable outlook.
Requirements to post collateral or make other payments as a result of ratings downgrades under certain agreements, including derivative agreements, can be satisfied in cash or by posting permissible securities held by the subsidiaries subject to the agreements.
In addition, a ratings downgrade by A. M.  Best to “A-” for our domestic life insurance companies would require Prudential Insurance to either post collateral or a letter of credit in the amount of approximately $1.5 billion, based on the level of statutory reserves related to the variable annuity business acquired from Allstate.
We believe that the posting of such collateral would not be a material liquidity event for Prudential Insurance.
In view of the difficulties experienced in recent years by many financial institutions, the rating agencies have heightened the level of scrutiny that they apply to such institutions, have increased the frequency and scope of their credit reviews, have requested additional information from the companies that they rate, and may adjust upward the capital and other requirements employed in the rating agency models for maintenance of certain ratings levels, such as the financial strength ratings currently held by our life insurance subsidiaries.
In addition, actions we might take to access third-party financing or to realign our capital structure may in turn cause rating agencies to reevaluate our ratings.
The following is a summary of the significant changes or actions in ratings and rating outlooks for our Company, as well as for the life insurance industry and sector, that have occurred from January 1, 2016 through February 17, 2017: On September 7, 2016, Fitch revised its Sector Outlook for U. S.  life insurers to Negative.
Fitch’s Sector Outlook reflects its view of underlying fundamental trends in the industry and the current operating environment.
The revision of the Sector Outlook to Negative is due to macro challenges tied to declining interest rates and market volatility.
At the same time, Fitch kept its Rating Outlook, which indicates the direction in which ratings are likely to move over the next 18-24 months, on the U. S.  life insurance sector as Stable.
The current Stable rating reflects Fitch’s view that the impact of the negative fundamentals indicated in their Sector Outlook remain manageable in the context of industry earnings and capital over the outlook period, and Fitch’s expectations that key credit metrics will remain largely consistent with current ratings.
These indicators are not necessarily a precursor of a rating change nor do they preclude a rating agency from changing a rating at any time without notice.
On November 15, 2016, Fitch upgraded Prudential Financial’s long-term senior debt rating to A- from BBB+ with a Stable outlook and the financial strength ratings of our U. S.  operating entities to “AA-” from “A+” with a Negative outlook.
On November 15, 2016, Moody’s revised its Rating Outlook on the U. S.  life insurance industry to Negative.
Moody’s outlook indicates their expectations for the fundamental credit conditions driving the U. S.  life insurance industry over the next 12-18 months.
The change in the outlook is a result of increased pressure on life insurers’ sales, revenues and profitability due to persistent low interest rates and weak economic growth, together with regulatory pressures on product distribution.
The change in outlook back to Stable from Negative can occur with a gradual, steady increase in long-term interest rates in 2017, underpinned by strong equity market levels and an improvement in economic growth.
On December 7, 2016, A. M.  Best revised its Rating Outlook on the U. S.  life insurance industry to Negative.
The revision of the Rating Outlook to Negative reflects A. M.  Best’s view that the industry is entering into a period of increased volatility across both economic and regulatory fronts.
A. M.  Best’s outlook indicates that there is uncertainty around the slow premium growth for life and other products, disruption from merger and acquisition activity, and the industry’s historic slow incremental approach in the face of a rapidly changing landscape.


Position.
At December 31, 2013, and 2012, receivables classified as other assets were reduced by allowances of $22 million and $33 million, respectively.
Receivables Securitization Facility – The Railroad maintains a $600 million, 364-day receivables securitization facility under which it sells most of its eligible third-party receivables to Union Pacific Receivables, Inc.  (UPRI), a wholly-owned, bankruptcy-remote subsidiary that may subsequently transfer, without recourse an undivided interest in accounts receivable to investors.
The investors have no recourse to the Railroad’s other assets except for customary warranty and indemnity claims.
Creditors of the Railroad do not have recourse to the assets of UPRI.
The amount outstanding under the facility was $0 and $100 million at December 31, 2013, and December 31, 2012, respectively.
The facility was supported by $1.1 billion of accounts receivable as collateral at both December 31, 2013, and December 31, 2012, which, as a retained interest, is included in accounts receivable, net in our Condensed Consolidated Statements of Financial Position.
The outstanding amount the Railroad is allowed to maintain under the facility, with a maximum of $600 million, may fluctuate based on the availability of eligible receivables and is directly affected by business volumes and credit risks, including receivables payment quality measures such as default and dilution ratios.
If default or dilution ratios increase one percent, the allowable outstanding amount under the facility would not materially change.
The costs of the receivables securitization facility include interest, which will vary based on prevailing commercial paper rates, program fees paid to banks, commercial paper issuing costs, and fees for unused commitment availability.
The costs of the receivables securitization facility are included in interest expense and were $5 million, $3 million and $4 million for 2013, 2012, and 2011, respectively.
In July 2013, the $600 million receivables securitization facility was renewed for an additional 364-day period at comparable terms and conditions.11.


| 2009 $1,792,000 | 2010 | 2011 | 2012 | 2013 | Thereafter |


| (In thousands) 2012 2011 Change | Oilseeds | Corn | Milling and cocoa | Total | Carrying Value at December 31, | 2006 | Equity investments, under the cost method | Equity investments, under the equity method | $45 |


| Years Ended December 31, | 2012 | (in millions) | Advice & Wealth Management | Net revenues | Expenses | Operating earnings | Asset Management | Net revenues | Expenses | Operating earnings | Annuities | Net revenues | Expenses | Operating earnings | Protection | Net revenues | Expenses | Operating earnings | Corporate & Other | Net revenues | Expenses | Operating loss | Years Ended December 31, | 2012 | Segment Pretax Operating Increase (Decrease) | (in millions) | Other revenues | Benefits, claims, losses and settlement expenses | Amortization of DAC | Interest credited to fixed accounts | Total expenses | Total |


| December 31, 2017 2016 | Income taxes receivable—current | Total income taxes receivable | Income taxes payable—current | Income taxes payable—noncurrent | Total income taxes payable | December 31, | Differences between book and tax basis of property | Other taxable temporary differences | Total deferred tax liability | Operating loss carryforwards | Capital loss carryforwards | Bad debt and other book provisions | Tax credit carryforwards | Other deductible temporary differences | Total gross deferred tax asset | Less: valuation allowance | Total net deferred tax asset | Net deferred tax (liability) |


| Fixed Maturity Securities — by Sector & Credit Quality Rating at December 31, 2010 | NAIC Rating | Caa and | Rating Agency Designation: | (In millions) | U.S. corporate securities | Foreign corporate securities | RMBS -1 | Foreign government securities | U.S. Treasury, agency and government guaranteed securities | CMBS -1 | ABS -1 | State and political subdivision securities | Other fixed maturity securities | Total fixed maturity securities | Percentage of total | Fixed Maturity Securities — by Sector & Credit Quality Rating at December 31, 2009 | NAIC Rating | Caa and | Rating Agency Designation: | (In millions) | U.S. corporate securities | Foreign corporate securities | RMBS -1 | Foreign government securities | U.S. Treasury, agency and government guaranteed securities | CMBS | ABS | State and political subdivision securities | Other fixed maturity securities | Total fixed maturity securities | Percentage of total |


| (In millions, except per share data) 2008 2007 | Total revenue | Net income (loss) | Per share data | Earnings (loss) – basic | Earnings (loss) – diluted | Average common shares outstanding – basic | Average common shares outstanding – diluted | TargetAllocationRange | PNC Pension Plan | Asset Category | Equity securities | Fixed income securities | Real estate | Other | Total |


| Consolidated Statement of Operations Data Fiscal | (In millions, except per share amounts) | Total net revenue | Total costs and expenses | Operating income from continuing operations | Total share-based compensation expense included in total costs and expenses | Net income from continuing operations | Net income (loss) from discontinued operations | Net income | Net income per common share: | Basic net income per share from continuing operations | Basic net income (loss) per share from discontinued operations | Basic net income per share | Diluted net income per share from continuing operations | Diluted net income (loss) per share from discontinued operations | Diluted net income per share | Dividends declared per common share |


subject to regulatory restrictions.
Cash, cash equivalents and short-term investments at the parent company decreased $19.7 million to $419.6 million at December 31, 2005 compared to $439.3 million at December 31, 2004 reflecting the use of parent company cash for acquisition activity during 2005.
See Schedule I to this Form 10-K beginning on page 107 for our parent company only financial information.
Regulatory Requirements Certain of our subsidiaries operate in states that regulate the payment of dividends, loans, or other cash transfers to Humana Inc. , our parent company, and require minimum levels of equity as well as limit investments to approved securities.
The amount of dividends that may be paid to Humana Inc.  by these subsidiaries, without prior approval by state regulatory authorities, is limited based on the entitys level of statutory income and statutory capital and surplus.
In most states, prior notification is provided before paying a dividend even if approval is not required.
As of December 31, 2005, we maintained aggregate statutory capital and surplus of $1,203.2 million in our state regulated subsidiaries.
Each of these subsidiaries was in compliance with applicable statutory requirements which aggregated $722.2 million.
Although the minimum required levels of equity are largely based on premium volume, product mix, and the quality of assets held, minimum requirements can vary significantly at the state level.
Given our anticipated premium growth in 2006 resulting from the expansion of our Medicare products, capital requirements will increase.
We expect to fund these increased requirements with capital contributions from Humana Inc. , our parent company, in the range of $450 million to $650 million in 2006.
Most states rely on risk-based capital requirements, or RBC, to define the required levels of equity.
RBC is a model developed by the National Association of Insurance Commissioners to monitor an entitys solvency.
This calculation indicates recommended minimum levels of required capital and surplus and signals regulatory measures should actual surplus fall below these recommended levels.
If RBC were adopted by all states and Puerto Rico at December 31, 2005, we would be required to fund $14.7 million in one of our Puerto Rico subsidiaries to meet all requirements.
After this funding, we would have $378.2 million of aggregate capital and surplus above any of the levels that require corrective action under RBC.


| Period Total Number ofSharesPurchased [a] AveragePrice PaidPer Share Total Number of SharesPurchased as Part of aPublicly Announced Planor Program [b] Maximum Number ofShares That May YetBe Purchased Under the Planor Program [b] | Oct. 1 through Oct. 31 | Nov. 1 through Nov. 30 | Dec. 1 through Dec. 31 | Total |


| (In millions) Reported Amount Fair Value | 2009: | Financial Assets: | Investment securities held to maturity | Net loans (excluding leases) | Financial Liabilities: | Long-term debt | 2008: | Financial Assets: | Investment securities: | Purchased under money market liquidity facility | Held to maturity | Net loans (excluding leases) | Financial Liabilities: | Long-term debt |


| In millions AggregateAssets Aggregate Liabilities | Tax credit investments (a) | December 31, 2009 | December 31, 2008 | Credit Risk Transfer Transaction | December 31, 2009 | December 31, 2008 |


| 2014 2013 (In millions, except percentages) | Silicon Systems Group | Applied Global Services | Display | Energy and Environmental Solutions | Total | Year Ended or At December 31 | (in millions, except per share data) | Income Statement Data: | Total revenues | Operating income | Non-operating income (expense) | Income before income taxes | Net income attributable to CME Group | Earnings per common share: | Basic | Diluted | Cash dividends per share | Balance Sheet Data: | Total assets | Short-term debt | Long-term debt | Shareholders’ equity |


| 2010 $160 | 2011 | 2012 | 2013 | 2014 |


| 2009 2008 $ Change % Change | (dollars in millions) | $127.0 | Balance at Beginning of Period | (in millions) | Fiscal 2015 | Year Ended October 31, | 2015 | (dollars in millions) | Interest income | Interest expense | Gain (loss) on assets related to executive deferred compensation plan | Foreign currency exchange gain (loss) | Other, net | Total |


offering proceeds, together with the 2015 Term Loan, were used to fund the AMS Portfolio Acquisition.
We recorded a charge of $45 million in interest expense, during the second quarter of 2015, for premiums, accelerated amortization of debt issuance costs, and investor discount costs net of interest rate hedge gains related to the early debt extinguishment.
Our senior notes were issued in public offerings, are redeemable prior to maturity and are not subject to any sinking fund requirements.
Our senior notes are unsecured, unsubordinated obligations and rank on parity with each other.
These notes are effectively junior to borrowings under our credit and security facility, to the extent if borrowed by our subsidiaries, and to liabilities of our subsidiaries (see Other Arrangements below).
On January 12, 2017, we used our existing credit facilities to repay the $250 million plus interest of our senior notes due in January 2017.
Our senior notes consist of the following as of December 31, 2016:


Adjusted EBITDA increased $574 million, or 5%, in 2017 primarily from: ?
An increase in branded postpaid and prepaid service revenues primarily due to strong customer response to our Uncarrier initiatives, the ongoing success of our promotional activities, and the continued strength of our MetroPCS brand; ?
Higher wholesale revenues; and ?
Higher other revenues; partially offset by ?
Higher selling, general and administrative expenses; ?
Lower gains on disposal of spectrum licenses of $600 million; gains on disposal were $235 million for the year ended December 31, 2017, compared to $835 million in the same period in 2016; ?
Higher cost of services expense; ?
Higher net losses on equipment; and ?
The negative impact from hurricanes of approximately $201 million, net of insurance recoveries.


| December 31, | 2008 | (In millions) | Balance at beginning of the period, | Acquisitions -1 | Other, net -2 | Balance at the end of the period | Years Ended December 31, | 2008 | (In millions) | Service cost | Interest cost | Expected return on plan assets | Amortization of net actuarial (gains) losses | Amortization of prior service cost (credit) | Net periodic benefit cost | Pension   Benefits  (In millions) | 2009 | 2010 | 2011 | 2012 | 2013 | 2014-2018 | December 31, | 2008 | Estimated | Fair Value | (In millions) | Foreign -1 | Finance | Industrial | Consumer | Utility | Communications | Other | Total | December 31, | 2008 | Estimated | Fair Value | (In millions) | Residential mortgage-backed securities: | Collateralized mortgage obligations | Pass-through securities | Total residential mortgage-backed securities | Commercial mortgage-backed securities | Asset-backed securities | Total |


12.
Commitments and Contingencies We are involved in various claims, regulatory agency audits and pending or threatened legal actions involving a variety of matters.
The total liability on these matters at December 31, 2009 cannot be determined; however, in our opinion, any ultimate liability, to the extent not otherwise provided for, will not materially affect our financial position, cash flow or results of operations.
Our business is affected both directly and indirectly by governmental laws and regulations relating to the oilfield service industry in general, as well as by environmental and safety regulations that specifically apply to our business.
Although we have not incurred material costs in connection with our compliance with such laws, there can be no assurance that other developments, such as new environmental laws, regulations and enforcement policies hereunder may not result in additional, presently unquantifiable, costs or liabilities to us.
We have received federal grand jury subpoenas and subsequent inquiries from governmental agencies requesting records related to our compliance with export trade laws and regulations.
We have cooperated fully with agents from the Department of Justice, the Bureau of Industry and Security, the Office of Foreign Assets Control, and U. S.  Immigration and Customs Enforcement in responding to the inquiries, and we have conducted our own internal review of this matter.
At the conclusion of our internal review in the fourth quarter of 2009, we identified possible areas of concern and discussed these areas of concern with the relevant agencies.
We are currently negotiating a potential resolution with the agencies involved related to these matters.
We currently anticipate that any administrative fine or penalty agreed to as part of a resolution would be within established accruals, and would not have a material effect on our financial position or results of operations.
To the extent a resolution is not negotiated as anticipated, we cannot predict the timing or effect that any resulting government actions may have on our financial position or results of operations.
As a result of our internal review and in an effort to prevent any future compliance issues of this nature, we have reviewed and are in the process of enhancing our compliance procedures and training.
The Company leases certain facilities and equipment under operating leases that expire at various dates through 2066.
These leases generally contain renewal options and require the lessee to pay maintenance, insurance, taxes and other operating expenses in addition to the minimum annual rentals.
Rental expense related to operating leases approximated $199 million, $184 million, and $128 million in 2009, 2008 and 2007, respectively.
Future minimum lease commitments under noncancellable operating leases with initial or remaining terms of one year or more at December 31, 2009 are payable as follows (in millions):
throughout North America, the segment supports major offshore drilling contractors through locations in Mexico, the Middle East, Europe, Southeast Asia and South America.
Distribution Services employs advanced information technologies to provide complete procurement, inventory management and logistics services to its customers around the globe.
Demand for the segments services is determined primarily by the level of drilling, servicing, and oil and gas production activities.
The following table sets forth the contribution to our total revenues of our three operating segments (in millions):


| Price Range Dividends  per Share | High | 2006 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | 2005 | First Quarter | Second Quarter | Third Quarter | Fourth Quarter |


| 2017 2016 2015 | Balance at January 1 | Extensions and Discoveries | Revisions | Acquisition of Reserves | Sale of Reserves | Conversion to Proved Developed Reserves | Balance at December 31 |


| Year Ended December 31, | 2006 | Risk-free interest rate | Expected life | Dividend yield | Expected volatility |


| 2014 2013 2012 | (In millions, except percentages) | Silicon Systems Group | Applied Global Services | Display | Energy and Environmental Solutions | Total |


ASF Framework In December 2007, the American Securitization Forum (ASF) issued the Streamlined Foreclosure and Loss Avoidance Framework for Securitized Adjustable Rate Mortgage Loans (the ASF Framework).
The ASF Framework was developed to address large numbers of subprime loans that are at risk of default when the loans reset from their initial fixed interest rates to variable rates.
The objective of the framework is to provide uniform guidelines for evaluating large numbers of loans for refinancing in an efficient manner while complying with the relevant tax regulations and off-balance sheet accounting standards for loan securitizations.
The ASF Framework targets loans that were originated between January 1, 2005 and July 31, 2007 and have an initial fixed interest rate period of 36 months or less, which are scheduled for their first interest rate reset between January 1, 2008 and July 31, 2010.
The ASF Framework categorizes the targeted loans into three segments.
Segment 1 includes loans where the borrower is likely to be able to refinance into any available mortgage product.
Segment 2 includes loans where the borrower is current but is unlikely to be able to refinance into any readily available mortgage product.
Segment 3 includes loans where the borrower is not current.
If certain criteria are met, ASF Framework loans in Segment 2 are eligible for fast-track modification under which the interest rate will be kept at the existing initial rate, generally for five years following the interest rate reset date.
Upon evaluation, if targeted loans do not meet specific criteria to be eligible for one of the three segments, they are categorized as other loans, as shown in the table below.
These criteria include the occupancy status of the borrower, structure and other terms of the loan.
In January 2008, the SECs Office of the Chief Accountant issued a letter addressing the accounting issues relating to the ASF Framework.
The letter concluded that the SEC would not object to continuing off-balance sheet accounting treatment for Segment 2 loans modified pursuant to the ASF Framework.
For those current loans that are accounted for off-balance sheet that are modified, but not as part of the ASF Framework, the servicer must perform on an individual basis, an analysis of the borrower and the loan to demonstrate it is probable that the borrower will not meet the repayment obligation in the near term.
Such analysis shall provide sufficient evidence to demonstrate that the loan is in imminent or reasonably foreseeable default.
The SECs Office of the Chief Accountant issued a letter in July 2007 stating that it would not object to continuing off-balance sheet accounting treatment for these loans.
Prior to the acquisition of Countrywide on July 1, 2008, Countrywide began making fast-track loan modifications under Segment 2 of the ASF Framework in June 2008 and the off-balance sheet accounting treatment of QSPEs that hold those loans was not affected.
In addition, other workout activities relating to subprime ARMs including modifications (e. g. , interest rate reductions and capitalization of interest) and repayment plans were also made.
These initiatives have continued subsequent to the acquisition in an effort to work with all of our customers that are eligible and affected by loans that meet the requisite criteria.
These foreclosure prevention efforts will reduce foreclosures and the related losses providing a solution for customers and protecting investors.
As of December 31, 2008, the principal balance of beneficial interests issued by the QSPEs that hold subprime ARMs totaled $56.5 billion and the fair value of beneficial interests related to those QSPEs held by the Corporation totaled $14 million.
The table below presents a summary of loans in QSPEs that hold subprime ARMs as of December 31, 2008 as well as workout and payoff activity for the subprime loans by ASF categorization for the six months ended December 31, 2008.
Prior to the acquisition of Countrywide on July 1, 2008, we did not originate or service significant subprime residential mortgage loans, nor did we hold a significant amount of beneficial interest in QSPEs of subprime residential mortgage loans.
In October 2008 in agreement with several state attorneys general, we announced the Countrywide National Homeownership Retention Program.
Under the program, we will systematically identify and seek to offer loan modifications for eligible Countrywide subprime and pay option ARM borrowers whose loans are in delinquency or scheduled for an interest rate or payment change.
For more information on our loan modification programs, see Recent Events on page 22.
Complex Accounting Estimates Our significant accounting principles, as described in Note 1  Summary of Significant Accounting Principles to the Consolidated Financial Statements, are essential in understanding the MD&A.
Many of our significant accounting principles require complex judgments to estimate values of assets and liabilities.
We have procedures and processes to facilitate making these judgments.
The more judgmental estimates are summarized below.
We have identified and described the development of the variables most important in the estimation process that, with the exception of accrued taxes, involve mathematical models to derive the estimates.
In many cases, there are numerous alternative judgments that could be used in the process of determining the inputs to the model.
Where alternatives exist, we have used the factors that we believe represent the most reasonable value in developing the inputs.
Actual performance that differs from our estimates


| 2008 Change 2007 Change 2006 | Aranesp®— U.S. | Aranesp®— International | Total Aranesp® |


| Year Ended December 31, | 2007 | (in thousands) | Acquisition, Capital and Other Exploration Expenditures | Lease acquisition of unproved property | Exploration expenditures | Development expenditures | Corporate and other expenditures | Total consolidated capital expenditures | Our share of equity investee development costs | Total |


CROWN CASTLE INTERNATIONAL CORP.  AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 86 In June, September and December of 2002, the Company paid its quarterly dividends on the 8?% Convertible Preferred Stock by issuing a total of 3,745,000 shares of its common stock.
As allowed by the Deposit Agreement relating to dividend payments on the 8?% Convertible Preferred Stock, the Company purchased the 3,745,000 shares of common stock from the dividend paying agent for a total of $12,239,000 in cash.
In March, June and September of 2003, the Company paid its quarterly dividends on the 8?% Convertible Preferred Stock by issuing a total of 1,825,000 shares of its common stock.
The Company purchased the 1,825,000 shares of common stock from the dividend paying agent for a total of $12,382,000 in cash.
In March, June and December of 2004, the Company paid its quarterly dividends on the 8?% Convertible Preferred Stock by issuing a total of 845,000 shares of its common stock.
The Company purchased the 845,000 shares of common stock from the dividend paying agent for a total of $12,245,000 in cash.
The Company utilized cash from an Unrestricted investment subsidiary to effect the stock purchases.
The Company may choose to continue issuances and purchases of stock in the future in order to offset dilution caused by the issuance of common stock as dividends on its preferred stock (see note 9).6.25% Convertible Preferred Stock The Company had originally issued 8,050,000 shares of its 6.25% Convertible Preferred Stock at a price of $50.00 per share (the liquidation preference per share).
The holders of the 6.25% Convertible Preferred Stock are entitled to receive cumulative dividends at the rate of 6.25% per annum payable on February 15, May 15, August 15 and November 15 of each year.
The Company has the option to pay dividends in cash or in shares of its common stock (valued at 95% of the current market value of the common stock, as defined).
For the years ended December 31, 2002, 2003 and 2004, dividends were paid with 6,338,153, 3,253,469 and 1,498,361 shares of common stock, respectively.
The Company is required to redeem all outstanding shares of the 6.25% Convertible Preferred Stock on August 15, 2012 at a price equal to the liquidation preference plus accumulated and unpaid dividends.
The shares of 6.25% Convertible Preferred Stock are convertible, at the option of the holder, in whole or in part at any time, into shares of the Companys common stock at a conversion price of $36.875 per share of common stock.
Under certain circumstances, the Company has the right to convert the 6.25% Convertible Preferred Stock, in whole or in part, into shares of the Companys common stock at the same conversion price.
The conversion of all outstanding shares of the 6.25% Convertible Preferred Stock would result in the issuance of 8,625,084 shares of the Companys common stock.
The Companys obligations with respect to the 6.25% Convertible Preferred Stock are subordinate to all indebtedness of the Company, and are effectively subordinate to all debt and liabilities of the Companys subsidiaries.
The 6.25% Convertible Preferred Stock ranks in parity with the 8?% Convertible Preferred Stock.
Purchases and Redemption of the Companys Preferred Stock In August and September of 2002, the Company began purchasing its stock (both common and preferred) and debt securities in public market transactions (see Notes 5 and 9).
Through December 31, 2002, the Company purchased shares of preferred stock with an aggregate redemption amount of $162,853,000.
Such shares of preferred stock had an aggregate carrying value (net of unamortized issue costs, as restated) of $156,798,000.
The Company utilized $60,989,000 in cash from an Unrestricted investment subsidiary to effect these preferred stock purchases.
The preferred stock purchases resulted in gains of $95,809,000, as restated.
Such gains are offset against dividends on preferred stock in determining the net loss applicable to common stock for the calculation of loss per common share.
The Companys purchases of its preferred stock in 2002 were as follows:


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) December 31, 2001 (Dollars in thousands, except per share data) 2007, with a mandatory redemption on April 15, 2008 at a price of $25.00 per share.
The PIERS were recorded net of underwriters discount and issuance costs.
These costs are being accreted over the expected term of the PIERS using the interest method.
Rights Plan On February 16, 2000, the Board of Directors of the Company authorized a distribution of one preferred share purchase right (Right) for each outstanding share of common stock which was distributed to all holders of record of the common stock on March 31, 2000.
Each Right entitles the registered holder to purchase from the Company one one-hundredth of a share of Series B junior participating preferred stock, par value $0.01 per share (Preferred Shares), at a price of $60.00 per one one-hundredth of a Preferred Share (Purchase Price), subject to adjustment as provided in the rights agreement.
The Rights expire on March 5, 2010, unless the expiration date is extended or the Right is redeemed or exchanged earlier by the Company.
The Rights are attached to each share of common stock.
The Rights are generally exercisable only if a person or group becomes the beneficial owner of 17% or more of the outstanding common stock or announces a tender offer for 17% or more of the outstanding stock (Acquiring Person).
In the event that a person or group becomes an Acquiring Person, each holder of a Right, excluding the Acquiring Person, will have the right to receive, upon exercise, common stock having a market value equal to two times the Purchase Price of the Preferred Shares.
Dividend Reinvestment and Stock Purchase Plan The Company filed a registration statement with the SEC for the Companys dividend reinvestment and stock purchase plan (DRIP) which was declared effective on September 10, 2001, and commenced on September 24, 2001.
The Company registered 3,000,000 shares of common stock under the DRIP.
During the year ended December 31, 2001, no shares were issued and no proceeds were received from dividend reinvestments and/or stock purchases under the DRIP.
Stock Option Plan During August 1997, the Company instituted the 1997 Stock Option and Incentive Plan (the Stock Option Plan).
The Stock Option Plan was amended in December 1997, March 1998 and March 1999.
The Stock Option Plan, as amended, authorizes (i) the grant of stock options that qualify as incentive stock options under Section 422 of the Code (ISOs), (ii) the grant of stock options that do not qualify (NQSOs), (iii) the grant of stock options in lieu of cash Directors fees and (iv) grants of shares of restricted and unrestricted common stock.
The exercise price of stock options will be determined by the Compensation Committee, but may not be less than 100% of the fair market value of the shares of Common Stock on the date of grant.
At December 31, 2001, approximately 3,008,875 shares of common stock were reserved for issuance under the Plan.
Options granted under the Stock Option Plan are exercisable at the fair market value on the date of grant and, subject to termination of employment, expire ten years from the date of grant, are not transferable other than on death, and are generally exercisable in three equal annual installments commencing one year from the date of grant (with the exception of 10,000 options which had a vesting period of one year).
The Company applies APB No.25 and related interpretations in accounting for its plan.
Statement of Financial Accounting Standards No.123 (SFAS 123) was issued by the Financial Accounting Standards Board in 1995 and, if fully adopted, changes the methods for recognition of cost on plans similar to that of the Company.
Adoption of SFAS 123 is optional, however, pro forma disclosure, as if the Company adopted the cost recognition requirements under SFAS 123, is presented below.
The Company did not record any compensation expense under APB 25.
A summary of the status of the Companys stock options as of December 31, 2001, 2000 and 1999 and changes during the years then ended are presented below:


Recent Accounting Pronouncements Not Yet Adopted in 2017 Revenue from Contracts with Customers.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASU 2014-09).
ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance.
The guidance also changes the accounting for certain contract costs and revises the criteria for determining if an entity is acting as a principal or agent in certain arrangements.
The key changes in the standard that impact the Companys revenue recognition relate to the presentation of certain revenue contracts and associated contract costs.
The most significant of these changes relates to the presentation of certain distribution costs, which are currently presented net against revenues (contra-revenue) and will be presented as an expense on a gross basis.
The Company adopted ASU 2014-09 effective January 1, 2018 on a full retrospective basis, which will require 2016 and 2017 to be restated in future filings.
The cumulative effect adjustment to the 2016 opening retained earnings was not material.
The Company currently expects the net gross up to revenue to be approximately $1 billion with a corresponding gross up to expense for both 2016 and 2017.
Recognition and Measurement of Financial Instruments.
In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (ASU 2016-01).
ASU 2016-01 amends guidance on the classification and measurement of financial instruments, including significant revisions in accounting related to the classification and measurement of investments in certain equity securities.
ASU 2016-01 also amends certain disclosure requirements associated with the fair value of financial instruments.
The reclassification of unrealized gains (losses) on equity securities within accumulated other comprehensive income to retained earnings was not material upon adoption effective January 1, 2018.
Leases.
In February 2016, the FASB issued ASU 2016-02, Leases (ASU 2016-02), which requires lessees to recognize assets and liabilities arising from most operating leases on the consolidated statements of financial condition.
The Company expects to record assets and liabilities for its current operating leases upon adoption of ASU 2016-02 and does not expect the adoption to have a material impact on its results of operations or cash flows.
ASU 2016-02 is effective for the Company on January 1, 2019, and the Company intends to apply the practical expedients allowed by the standard upon transition.
Cash Flow Classification.
In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15), which amends and clarifies the current guidance to reduce diversity in practice of the classification of certain cash receipts and payments in the consolidated statements of cash flows.
The Company does not expect the adoption of ASU 2016-15 to have a material impact on its consolidated statement of cash flows.
ASU 2016-15 is effective for the Company on January 1, 2018.
The Company must apply the guidance retrospectively to all periods presented.3.


| Payments Due by Period | (in thousands) | Global headquarters operating leases-1 | Other operating leases-2 | Unconditional purchase obligations-3 | Obligations related to uncertain tax positions, including interest and penalties-4 | Other long-term obligations-5 | Total contractual obligations |


| Cash $6,708 | Intangible assets subject to amortization | Goodwill | Other assets | Purchased research and development | Current liabilities | Net deferred income taxes | Other long-term liabilities | $28,358 |


| December 31 | 2014 | (Dollars in millions) | Allowance for loan and lease losses | Residential mortgage | Home equity | U.S. credit card | Non-U.S. credit card | Direct/Indirect consumer | Other consumer | Total consumer | U.S. commercial-1 | Commercial real estate | Commercial lease financing | Non-U.S. commercial | Total commercial-2 | Allowance for loan and lease losses-3 | Reserve for unfunded lending commitments | Allowance for credit losses |