On August 1, 2007, CNA entered into a credit agreement with a syndicate of banks and other lenders.
The credit agreement established a five-year $250 million senior unsecured revolving credit facility which is intended to be used for general corporate purposes.
Borrowings under the revolving credit facility bear interest at the London Interbank Offered Rate (“LIBOR”) plus CNA’s credit risk spread of 0.54% which was equal to 2.74%, at December 31, 2008.
CNA used $200 million of the proceeds to retire its 6.60% Senior Notes due December 15, 2008.
Under the credit agreement, CNA is required to pay certain fees, including a facility fee and a utilization fee, both of which would adjust automatically in the event of a change in CNA’s financial ratings.
The credit agreement includes covenants regarding maintenance of a minimum consolidated net worth and a specified ratio of consolidated indebtedness to consolidated total capitalization.
As of December 31, 2008, CNA was in compliance with all covenants.
Diamond Offshore maintains a $285 million syndicated, senior unsecured revolving credit facility, for general corporate purposes, including loans and performance or standby letters of credit which bears interest at a rate per annum equal to, at its election, either (i) the higher of the prime rate or the federal funds rate plus 50 basis points or (ii) the London Interbank Offered Rate, or LIBOR, plus an applicable margin, based on Diamond Offshore’s current credit ratings.
As of December 31, 2008, there were no loans outstanding under the credit facility; however, $58 million in letters of credit were issued which reduced the available capacity under the facility.
As of December 31, 2008, Diamond Offshore was in compliance with all covenants.
HighMount maintains $1.6 billion of variable rate term loans which bear interest at LIBOR plus an applicable margin.
HighMount has entered into interest rate swaps for a notional amount of $1.6 billion to hedge its exposure to fluctuations in LIBOR.
These swaps effectively fix the interest rate at 5.8%.
The loans also provide for a five year, $400 million revolving credit facility.
Borrowings under the credit facility bear interest at LIBOR plus an applicable margin or a base rate defined as the greater of the prime rate or the federal funds rate plus 50 basis points.
Among other customary covenants, HighMount cannot exceed a predetermined total debt to capitalization ratio.
As of December 31, 2008, $115 million was outstanding under the facility.
In addition, $9 million in letters of credit were issued, which reduced the available capacity to $276 million.
A financial institution which has a $30 million funding commitment under the revolving credit facility has not funded its portion of HighMount’s borrowing requests since September of 2008.
All other lenders met their revolving commitments on HighMount’s borrowings.
If the financial institution fails to fund future commitments under the revolving credit facility and is not replaced by another lender, the available capacity under the facility would be reduced to $255 million from $276 million.
At December 31, 2008, HighMount is in compliance with all of its debt covenants under the credit agreement.


| ($ in billions) Account  Value Gross Net  Amount at Risk Retained Net  Amount at Risk % of Contracts In the Money % In the  Money[4] | U. S Variable Annuity [1] | GMDB [2] | GMWB | Japan Variable Annuity [1] | GMDB | GMIB [3] | UK Variable Annuity [1] | GMDB | GMWB | ($ in billions) | U. S Variable Annuity [1] | GMDB [2] | GMWB | Japan Variable Annuity [1] | GMDB | GMIB [3] | UK Variable Annuity [1] | GMDB | GMWB |


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) The risk-free interest rate is based on the yield of a zero coupon United States Treasury security with a maturity equal to the expected life of the option from the date of the grant.
Our assumption on expected volatility is based on our historical volatility.
The dividend yield assumption is calculated using our average stock price over the preceding year and the annualized amount of our current quarterly dividend.
We based our assumptions on the expected lives of the options on our analysis of the historical exercise patterns of the options and our assumption on the future exercise pattern of options.
Restricted Stock Shares awarded under the restricted stock program, issued under the 2000 Plan and 2005 Plan, are held in escrow and released to the grantee upon the grantee’s satisfaction of conditions of the grantee’s restricted stock agreement.
The grant date fair value of restricted stock awards is based on the quoted fair market value of our common stock at the award date.
Compensation expense is recognized ratably during the escrow period of the award.
Grants of restricted shares are subject to forfeiture if a grantee, among other conditions, leaves our employment prior to expiration of the restricted period.
Grants of restricted shares generally vest one year after the date of grant with respect to 25% of the shares granted, an additional 25% after two years, an additional 25% after three years, and the remaining 25% after four years.


| Years ended December 31, | 2007 | (in millions) | Bartow costs | Fixed asset disposals | Other environmental costs | Litigation costs | Goodwill impairment | $3.2 | Twelve months ended December 31, | 2015 | (in millions, except as noted) | Net sales | Cost of sales | Gross margin | Gross margin percentage | Sales volume by product tons (000s) | Sales volume by nutrient tons (000s)(1) | Average selling price per product ton | Average selling price per nutrient ton-1 | Gross margin per product ton | Gross margin per nutrient ton-1 | Depreciation and amortization |


Price increases and fuel surcharges generated higher revenue in 2008, partially offset by lower volume levels.
International traffic declined 11% in 2008, reflecting continued softening of imports from China and the loss of a customer contract.
Notably, the peak intermodal shipping season, which usually starts in the third quarter, was particularly weak in 2008.
Additionally, continued weakness in domestic housing and automotive sectors translated into weak demand in large sectors of the international intermodal market, which also contributed to lower volumes.
Domestic traffic declined 3% in 2008 due to the loss of a customer contract and lower volumes from less-than-truckload shippers.
Additionally, the flood-related embargo on traffic in the Midwest during the second quarter hindered intermodal volume levels in 2008.
Mexico Business – Each of our commodity groups include revenue from shipments to and from Mexico.
Revenue from Mexico business decreased 26% in 2009 versus 2008 to $1.2 billion.
Volume declined in five of our six commodity groups, down 19% in 2009, driven by 32% and 24% reductions in industrial products and automotive shipments, respectively.
Conversely, energy shipments increased 9% in 2009 versus 2008, partially offsetting these declines.
Revenue from Mexico business increased 13% to $1.6 billion in 2008 compared to 2007.
Price improvements and fuel surcharges contributed to these increases, partially offset by a 4% decline in volume in 2008 compared to 2007.


| Weighted AverageUseful Life (years) | Purchased technology | Customer contracts and relationships | Trademarks | Acquired rights to use technology | Localization | Other intangibles |


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


| Notional Amount Effective Date Maturity Date Fixed Interest Rate* | $200,000,000 | $250,000,000 | $100,000,000 |


| Fiscal 2010 Fiscal 2009 | (in millions) | Balance at October 1 | Funding under the plan | American Express settlement payments | Discover settlement payments-1 | Interest earned, less applicable taxes | Balance at September 30 | Less: Current portion of escrow account | Long-term portion of escrow account |


(2) Our union-represented mainline employees are covered by agreements that are not currently amendable.
Joint collective bargaining agreements (JCBAs) have been reached with post-Merger employee groups, except the maintenance, fleet service, stock clerks, maintenance control technicians and maintenance training instructors represented by the TWU-IAM Association who are covered by separate CBAs that become amendable in the third quarter of 2018.
Until those agreements become amendable, negotiations for JCBAs will be conducted outside the traditional RLA bargaining process as described above, and, in the meantime, no self-help will be permissible.


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


Principal Financial Group, Inc.  Notes to Consolidated Financial Statements  (continued) 5.
Variable Interest Entities  (continued) interest-only certificate and to all principal payments.
We retained the interest-only certificate and the residual certificates were subsequently sold to a third party.
We have determined that these grantor trusts are VIEs as our interest-only certificates are exposed to the majority of the risk of loss due to interest rate risk.
The restricted interest periods end between 2016 and 2020 and, at that time, the residual certificate holders certificates are redeemed by the trust in return for the notes.
We have determined that it will be necessary for us to consolidate these entities until the expiration of the interest-only period.
As of December 31, 2008 and 2007, our consolidated statements of financial position include $212.2 million and $332.1 million, respectively, of undated subordinated floating rate notes of the grantor trusts, which are classified as available-for-sale fixed maturity securities and represent the collateral held by the trust.
The obligation to deliver the underlying securities to the residual certificate holders of $103.8 million and $155.6 million as of December 31, 2008 and 2007, respectively, is classified as an other liability and contains an embedded derivative of the forecasted transaction to deliver the underlying securities.
The creditors of the grantor trusts have no recourse to our assets.
Other.
In addition to the entities above, we have a number of relationships with a disparate group of entities, which meet the criteria for VIEs.
Due to the nature of our direct investment in the equity and/or debt of these VIEs, we are the primary beneficiary of such entities, which requires us to consolidate them.
These entities include seven private investment vehicles and several hedge funds.
The consolidation of these VIEs did not have a material effect on either our consolidated statements of financial position as of December 31, 2008 or 2007, or results of operations for the years ended December 31, 2008, 2007 and 2006.
For these entities, the creditors have no recourse to our assets.


| December 31, 2012 – in millions DomesticCertificatesofDeposit | Three months or less | Over three through six months | Over six through twelve months | Over twelve months | Total |


As of December 31, 2005, there was $21.2 million of unrecognized compensation cost relating to non-vested performance stock units and restricted stock units.
That cost is expected to be recognized over a weighted-average period of 1.9 years.
The total intrinsic value of share-based liabilities paid combined with the fair value of shares vested during 2005, 2004 and 2003 was $12.4 million, $3.9 million and $6.9 million, respectively.
Deferred performance stock units, deferred restricted stock units, deferred directors’ fees and accumulated dividend amounts totaled 692,023 units as of December 31, 2005.
No stock appreciation rights were outstanding as of December 31, 2005.


| Year Ended December 31, | 2012 | Declared | Common shares | 5.417% Series 1 Cumulative Convertible Preferred shares | Property, City, State, Zip Code | Pennsylvania | AndorraPhiladelphia, PA 19128 | Bala CynwydBala Cynwyd, PA 19004 | FlourtownFlourtown, PA 19031 | LancasterLancaster, PA 17601-8 | Langhorne SquareLevittown, PA 19056 | Lawrence ParkBroomall, PA 19008 | NortheastPhiladelphia, PA 19114 | Town Center of New BritainNew Britain, PA 18901 | Willow GroveWillow Grove, PA 19090 | WynnewoodWynnewood, PA 19096 | Virginia | 29thPlace Charlottesville, VA 22091-10 | Barcroft PlazaFalls Church, VA 22041-9(10) | Barracks RoadCharlottesville, VA 22905 | Falls Plaza/Falls Plaza—EastFalls Church, VA 22046 | Graham Park PlazaFairfax, VA 22042 | Idylwood PlazaFalls Church, VA 22030 | Leesburg PlazaLeesburg, VA 20176 | Mount Vernon/South Valley/7770 Richmond HwyAlexandria, VA 22306-4(7) | Old Keene MillSpringfield, VA 22152 |


| Year Ended December 31, | 2017 | (In millions) | Energy revenue | Capacity revenue | Retail revenue | Mark-to-market for economic hedging activities | Contract amortization | Other revenues | Corporate/Eliminations | Total operating revenues(a) |


| (Dollars in thousands) Fair Value Unfunded Commitments | Non-marketable securities (fair value accounting): | Venture capital and private equity fund investments -1 | Non-marketable securities (equity method accounting): | Other investments -2 | Non-marketable securities (cost method accounting): | Venture capital and private equity fund investments -3 | Total | Volatility Factor | (Dollars in millions) | Risk free interest rate: | Less 50 basis points | Current weighted average rate -0.4% | Plus 50 basis points |


| Year Ended December 31, | 2011 | (millions, except per share) | Total Revenues | Total Operating Expenses | Operating Income (Loss) | Total Other (Income) Expense | Income (Loss) Before Income Taxes | Net Income (Loss) | Earnings (Loss) Per Share | Basic | Diluted |


| Year ended December 31, | 2017 | (in millions, except as noted) | Net sales | Cost of sales | Gross margin | Gross margin percentage | Sales volume by product tons (000s) | Sales volume by nutrient tons (000s)(1) | Average selling price per product ton | Average selling price per nutrient ton-1 | Gross margin per product ton | Gross margin per nutrient ton-1 | Depreciation and amortization | Unrealized net mark-to-market loss (gain) on natural gas derivatives |


| Years Ended December 31,(in millions) 2012 2011 2010 | Summary: | Net cash provided by (used in) operating activities | Net cash provided by (used in) investing activities | Net cash used in financing activities | Effect of exchange rate changes on cash | Decrease in cash | Cash at beginning of year | Change in cash of businesses held for sale | Cash at end of year |


Segment Performance Summary Domestic The following table presents selected financial data for our Domestic segment for each of the past three fiscal years ($ in millions):
(1) Included within our Domestic segment’s operating income for fiscal 2010 is $25 million of restructuring charges recorded in the fiscal first quarter related to measures we took to update our U. S.  Best Buy store operating model.
These charges resulted in a decrease in our Domestic segment’s operating income of less than 0.1% of revenue for the fiscal year.
(2) Included within our Domestic segment’s operating income for fiscal 2009 is $72 million of restructuring charges recorded in the fiscal fourth quarter related to measures we took to restructure our businesses.
In addition, operating income is inclusive of goodwill and tradename impairment charges of $66 million related to our Speakeasy business.
Collectively, these charges resulted in a decrease in our Domestic segment’s operating income of 0.4% of revenue for the fiscal year.
Fiscal 2010 Results Compared With Fiscal 2009 The increase in our Domestic segment’s operating income for fiscal 2010 was due to higher gross profit dollars from net new store openings and comparable store sales growth, while SG&A dollars grew only 3.1% despite revenue growth of 6.4%, as shown by the decrease in the SG&A rate of 0.6% of revenue.
A decrease in restructuring and no goodwill and tradename impairment charges further contributed to the additional operating income.
The 6.4% revenue increase in fiscal 2010 resulted primarily from the net addition of 85 new stores during fiscal 2010 and a comparable store sales gain of 1.7%.
The components of the net revenue increase in the Domestic segment in fiscal 2010 were as follows:


| Payments Due by Period | Total | (in thousands) | Debt | Interest -1 | Operating leases -2 | Purchase obligations -3 | Future policy benefits payable and other long-term liabilities -4 | Total |


Mortgage fees and related income This revenue category primarily reflects CCBs Mortgage Production and Mortgage Servicing revenue, including: fees and income derived from mortgages originated with the intent to sell; mortgage sales and servicing including losses related to the repurchase of previously-sold loans; the impact of risk management activities associated with the mortgage pipeline, warehouse loans and MSRs; and revenue related to any residual interests held from mortgage securitizations.
This revenue category also includes gains and losses on sales and lower of cost or fair value adjustments for mortgage loans held-for-sale, as well as changes in fair value for mortgage loans originated with the intent to sell and measured at fair value under the fair value option.
Changes in the fair value of CCB mortgage servicing rights are reported in mortgage fees and related income.
Net interest income from mortgage loans, and securities gains and losses on AFS securities used in mortgage-related risk management activities, are recorded in interest income and securities gains/(losses), respectively.
For a further discussion of MSRs, see Note 17 on pages 291295 of this Annual Report.


| Payments Due During the Year Ending December 31, Debt Leases Purchase Obligations Total | (In millions) | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | 9,356 |


| (in millions, except per share data) 2017 2016 2015 | Net income attributable to BlackRock, Inc., GAAP basis | Non-GAAP adjustments: | Restructuring charge (including $23 tax benefit) | PNC LTIP funding obligation, net of tax | The 2017 Tax Act: | Deferred tax revaluation (noncash) | Deemed repatriation tax | Other income tax matters | Net income attributable to BlackRock, Inc., as adjusted | Diluted weighted-average common shares outstanding-3 | Diluted earnings per common share, GAAP basis-3 | Diluted earnings per common share, as adjusted-3 |


| Year ended September 30, | 2012 | Averagebalance-1 | ($ in thousands) | Interest-earning assets: | Margin balances | Assets segregated pursuant to regulations and other segregated assets | Bank loans, net of unearned income-2 | Available for sale securities | Trading instruments-3 | Stock loan | Other-3 | Total | Interest-bearing liabilities: | Brokerage client liabilities | Bank deposits-2 | Trading instruments sold but not yet purchased-3 | Stock borrow | Borrowed funds | Senior notes | Loans payable of consolidated variable interest entities-3 | Other-3 | Total | Net interest income |


| Aggregate cost Fair value Level 2 Level 3 | December 31, 2008 | December 31, 2007 |


| Year Ended December 31, | 2012 | (in thousands, except percentages and per share data) | Total revenue | Operating income | Operating profit margin | Net income | Earnings per share – diluted: | Diluted earnings per share | Weighted average shares – diluted |


| Consolidated Balance Sheet Data At July 31, | (In millions) | Cash, cash equivalents and investments | Long-term investments | Working capital (deficit) | Total assets | Short-term debt | Long-term debt | Other long-term obligations | Total stockholders’ equity |


Managements Discussion and Analysis of Financial Condition and Results of Operations  (continued) (Amounts in Millions, Except Per Share Amounts) Operating income increased during 2017 when compared to 2016, comprised of a decrease in revenue of $42.1, as discussed above, a decrease in salaries and related expenses of $28.0 and a decrease in office and general expenses of $16.9.
The decrease in salaries and related expenses was primarily due to lower discretionary bonuses and incentive expense as well as a decrease in base salaries, benefits and tax.
The decrease in office and general expenses was primarily due to decreases in adjustments to contingent acquisition obligations, as compared to the prior year.
Operating income increased during 2016 when compared to 2015 due to an increase in revenue of $58.8, as discussed above, and a decrease in office and general expenses of $3.7, partially offset by an increase in salaries and related expenses of $38.8.
The increase in salaries and related expenses was attributable to an increase in base salaries, benefits and tax primarily due to increases in our workforce to support business growth over the last twelve months.
The decrease in office and general expenses was primarily due to lower production expenses related to pass-through costs, which are also reflected in revenue, for certain projects in which we acted as principal that decreased in size or did not recur during the current year.


Composition of revenue


Gain on Previously Held Equity Interest On 30 December 2014, we acquired our partner’s equity ownership interest in a liquefied atmospheric industrial gases production joint venture in North America for $22.6, which increased our ownership from 50% to 100%.
The transaction was accounted for as a business combination, and subsequent to the acquisition, the results were consolidated within our Industrial Gases – Americas segment.
We recorded a gain of $17.9 ($11.2 after-tax, or $.05 per share) as a result of revaluing our previously held equity interest to fair value as of the acquisition date.
Refer to Note 6, Business Combination, to the consolidated financial statements for additional details.
Other Income (Expense), Net Items recorded to other income (expense), net arise from transactions and events not directly related to our principal income earning activities.
The detail of other income (expense), net is presented in Note 23, Supplemental Information, to the consolidated financial statements.2017 vs.  2016 Other income (expense), net of $121.0 increased $71.6, primarily due to income from transition services agreements with Versum and Evonik, income from the sale of assets and investments, including a gain of $12.2 ($7.6 after-tax, or $.03 per share) resulting from the sale of a parcel of land, and a favorable foreign exchange impact.2016 vs.  2015 Other income (expense), net of $49.4 increased $3.9, primarily due to lower foreign exchange losses, favorable contract settlements, and receipt of a government subsidy.
Fiscal year 2015 included a gain of $33.6 ($28.3 after tax, or $.13 per share) resulting from the sale of two parcels of land.
No other individual items were significant in comparison to fiscal year 2015.
Interest Expense


Financing Activities 2011Cash provided by financing activities in 2011 was $584 million.
Our cash flow from financing activities resulted primarily from the issuance of $1,775 million of debt, of which $22 million was repaid in 2011, and a $1,266 million net transfer from our former parent, offset by $54 million of debt issuance costs, repayment of $954 million of notes to our former parent, and a contribution of $1,429 million to Northrop Grumman as a result of the spin-off.2010In anticipation of the spin-off, on November 30, 2010, NGSB purchased $178 million of the outstanding principal amount of GO Zone IRBs pursuant to a tender offer.
NGSB used the proceeds of an intercompany loan for $178 million with Northrop Grumman to purchase the GO Zone IRBs and submitted the purchased bonds to the trustee for cancellation.
See Note 13: Debt in Item 8.
For the year ended December 31, 2010 and prior, transactions between Northrop Grumman and us were reflected as effectively settled for cash at the time of the transaction and are included in financing activities in our consolidated statements of cash flows.
The net effect of these transactions is reflected in Former Parents Equity in Unit in our consolidated statements of financial position.


| Stock Units Weighted  Average Grant  Date Fair Value | Balance at October 1 | Granted | Distributed | Forfeited or canceled | Balance at September 30 | Expected to vest at September 30 |


awards, total compensation expense is recognized in full on all awarded units on the date of grant.
INCENTIVE/PERFORMANCE UNIT SHARE AWARDS AND RESTRICTED STOCK/UNIT AWARDS The fair value of nonvested incentive/performance unit share awards and restricted stock/unit awards is initially determined based on prices not less than the market value of our common stock price on the date of grant.
Incentive/performance unit share awards are subsequently valued subject to the achievement of one or more financial and other performance goals over a three-year period.
The Personnel and Compensation Committee of the Board of Directors approves the final award payout with respect to incentive/performance unit share awards.
Restricted stock/unit awards have various vesting periods ranging from 12 months to 60 months.
There are no financial or performance goals associated with any of our restricted stock/unit awards.
The weighted-average grant-date fair value of incentive/ performance unit share awards and restricted stock/unit awards granted in 2009, 2008 and 2007 was $41.16, $59.25 and $73.83 per share, respectively.
We recognize compensation expense for such awards ratably over the corresponding vesting and/or performance periods for each type of program.
A summary of nonvested incentive/performance unit shares and restricted stock/unit share activity follows:


| December 31, | In millions of dollars | Receivables from customers | Receivables from brokers, dealers and clearing organizations | Total brokerage receivables-1 | Payables to customers | Payables to brokers, dealers and clearing organizations | Total brokerage payables-1 |


| Fiscal Year | In Millions | Net gain (loss) onmark-to-marketvaluation of commodity positions | Net loss on commodity positions reclassified from unallocated corporate items to segmentoperating profit | Netmark-to-marketrevaluation of certain grain inventories | Netmark-to-marketvaluation of certain commodity positions recognized in unallocated corporate items |


| One Percentage Point | (in millions) | Non-U.S. plans | U.S. plans |


| Year ended Unrealized gains (losses) on AFS securities(a) Cash flow hedges Accumulated other comprehensive income (loss) | December 31, | Balance December 31, 2000 | Net change | Balance December 31, 2001 | Net change | Balance December 31, 2002 | Net change | Balance December 31, 2003 |


| 12/07 12/08 12/09 12/10 12/11 12/12 | Fidelity National Information Services, Inc. | S&P 500 | S&P Supercap Data Processing & Outsourced Services |


Deferred tax assets and liabilities are recorded in the accompanying consolidated balance sheet under the captions Deferred income tax assets, Deferred charges and other assets, Other accrued liabilities and Deferred income taxes.
The increase in 2006 in Deferred income taxes principally reflects installment sales treatment of certain forestland sales during the year.
Other contributing factors include the utilization of U. S.  net operating loss carryforwards, the generation of income tax credits and a decrease in deferred tax assets relating to pension costs.
The valuation allowance for deferred tax assets as of January 1, 2006, was $118 million.
The net change in the total valuation allowance for the year ended December 31, 2006, was a decrease of $7 million.
The Company recorded an income tax provision for 2006 of $1.9 billion, consisting of a $1.6 billion deferred tax provision (principally reflecting deferred taxes on the 2006 Transformation Plan forestland sales) and a $300 million current tax provision.
The provision also included an $11 million provision related to a special tax adjustment.
Excluding the impact of special items, the tax provision was $272 million, or 29% of pre-tax earnings before minority interest.
The Company recorded an income tax benefit for 2005 of $407 million, including a $454 million net tax benefit related to special tax adjustment items, consisting of a tax benefit of $627 million resulting from an agreement reached with the U. S.  Internal Revenue Service concerning the 1997 through 2000 U. S.  federal income tax audit, a $142 million charge for deferred taxes related to earnings repatriations under the American Jobs Creation Act of 2004, and $31 million of other tax charges.
Excluding the impact of special items, the tax provision was $83 million, or 20% of pre-tax earnings before minority interest.
The income tax provision for 2004 was $114 million, or 30% of pre-tax earnings from continuing operations before minority interest, including a $32 million provision related to special items.
Excluding the impact of this special tax adjustment item, the tax provision was $98 million, or 19% of pre-tax earnings before minority interest.
International Paper has federal and non-U.
S.  net operating loss carryforwards that expire as follows: 2007 through 2016  $161 million, 2017 through 2026  $1.8 billion, and indefinite carryforwards of $890 million.
International Paper has tax benefits from net operating loss carryforwards for state taxing jurisdictions of approximately $338 million that expire as follows: 2007 through 2016  $96 million and 2017 through 2026  $243 million.
International Paper also has federal, non-U.
S.  and state tax credit carryforwards that expire as follows: 2007 through 2016$80 million, 2017 through 2026  $90 million, and indefinite carryforwards  $304 million.
Further, International Paper has state capital loss carryforwards that expire as follows: 2007 through 2016  $10 million.
Deferred income taxes are not provided for temporary differences of approximately $2.7 billion, $2.4 billion and $2.7 billion as of December 31, 2006, 2005 and 2004, respectively, representing earnings of non-U.
S.  subsidiaries intended to be permanently reinvested.
Computation of the potential deferred tax liability associated with these undistributed earnings and other basis differences is not practicable.
International Paper is currently being audited by various federal, state and non-U.
S.  taxing authorities for tax periods from 1996 through 2005.
While the Company believes that it is adequately accrued for possible audit adjustments, the final resolution of these examinations cannot be determined at this time and could result in final settlements that differ from current estimates.
NOTE 10 COMMITMENTS AND CONTINGENT LIABILITIES Certain property, machinery and equipment are leased under cancelable and non-cancelable agreements.
INTERIM FINANCIAL RESULTS (UNAUDITED)


LLC), that will focus on the deployment of a nationwide 4G wireless network.
We, together with the other members of the investor group, have invested $3.2 billion in Clearwire LLC.
Our portion of the investment was $1.05 billion.
As a result of our investment, we received ownership units (ownership units) of Clearwire LLC and Class B stock (voting stock) of Clearwire Corporation, the publicly traded holding company that controls Clearwire LLC.
The voting stock has voting rights equal to those of the publicly traded Class A stock of Clearwire Corporation, but has only minimal economic rights.
We hold our economic rights through the ownership units, which have limited voting rights.
One ownership unit combined with one share of voting stock are exchangeable into one share of Clearwire Corporations publicly traded Class A stock.
At closing, we received 52.5 million ownership units and 52.5 million shares of voting stock, which represents an approximate 7% ownership interest on a fully diluted basis.
During the first quarter of 2009, the purchase price per share is expected to be adjusted based on the trading prices of Clearwire Corporations publicly traded Class A stock.
After the post-closing adjustment, we anticipate that we will have an approximate 8% ownership interest on a fully diluted basis.
In connection with the Clearwire transaction, we entered into an agreement with Sprint that allows us to offer wireless services utilizing certain of Sprints existing wireless networks and an agreement with Clearwire LLC that allows us to offer wireless services utilizing Clearwires next generation wireless broadband network.
We allocated a portion of our $1.05 billion investment to the related agreements.
We will account for our investment under the equity method and record our share of net income or loss one quarter in arrears.
Clearwire LLC is expected to incur losses in the early years of operation, which under the equity method of accounting, will be reflected in our future operating results and reduce the cost basis of our investment.
We evaluated our investment at December 31, 2008 to determine if an other than temporary decline in fair value below our cost basis had occurred.
The primary input in estimating the fair value of our investment was the quoted market value of Clearwire publicly traded Class A shares at December 31, 2008, which declined significantly from the date of our initial agreement in May 2008.
As a result of the severe decline in the quoted market value, we recognized an impairment in other income (expense) of $600 million to adjust our cost basis in our investment to its estimated fair value.
In the future, our evaluation of other than temporary declines in fair value of our investment will include a comparison of actual operating results and updated forecasts to the projected discounted cash flows that were used in making our initial investment decision, other impairment indicators, such as changes in competition or technology, as well as a comparison to the value that would be obtained by exchanging our investment into Clearwire Corporations publicly traded Class A shares Cost Method AirTouch Communications, Inc.  We hold two series of preferred stock of AirTouch Communications, Inc.  (AirTouch), a subsidiary of Vodafone, which are redeemable in April 2020.
As of December 31, 2008 and 2007, the AirTouch preferred stock was recorded at $1.479 billion and $1.465 billion, respectively.
As of December 31, 2008, the estimated fair value of the AirTouch preferred stock was $1.357 billion, which is below our carrying amount.
The recent decline in fair value is attributable to changes in interest rates.
We have determined this decline to be temporary.
The factors considered were the length of time and the extent to which the market value has been less than cost, the credit rating of AirTouch, and our intent and ability to retain the investment for a period of time sufficient to allow for recovery.
Specifically, we expect to hold the two series of AirTouch preferred stock until their redemption in 2020.
The dividend and redemption activity of the AirTouch preferred stock determines the dividend and redemption payments associated with substantially all of the preferred shares issued by one of our consolidated subsidiaries, which is a VIE.
The subsidiary has three series of preferred stock outstanding with an aggregate redemption value of $1.750 billion.
Substantially all of the preferred shares are redeemable in April 2020 at a redemption value of $1.650 billion.
As of December 31, 2008 and 2007, the two redeemable series of subsidiary preferred shares were recorded at $1.468 billion and $1.465 billion, respectively, and those amounts are included in other noncurrent liabilities.
The one nonredeemable series of subsidiary preferred shares was recorded at $100 million as of both December 31, 2008 and 2007 and those amounts are included in minority interest on our consolidated balance sheet.


Acquisition of Nothing Real, LLC During the second quarter of 2002, the Company acquired certain assets of Nothing Real, LLC (Nothing Real), a privately-held company that develops and markets high performance tools designed for the digital image creation market.
Of the $15 million purchase price, the Company has allocated $7 million to acquired technology, which will be amortized over its estimated life of 5 years.
The remaining $8 million, which has been identified as contingent consideration, rather than recorded as an additional component of


| VIE Assets(a) VIE Liabilities | (in billions) | AIA/ALICO SPVs | Real estate and investment funds(c) | Securitization Vehicles | Structured investment vehicles | Affordable housing partnerships | Other | Total |


| Years Ended December 31, | 2013 | (in millions) | Revenues | Management and financial advice fees | Distribution fees | Net investment income | Premiums | Other revenues | Total revenues | Banking and deposit interest expense | Total net revenues | Expenses | Distribution expenses | Interest credited to fixed accounts | Benefits, claims, losses and settlement expenses | Amortization of deferred acquisition costs | Interest and debt expense | General and administrative expense | Total expenses | Operating earnings |


Quarterly Results of Operations The following table sets forth our unaudited consolidated statement of operations data for each of the eight quarters in the period ended December 31, 2015.
The unaudited quarterly statement of operations data set forth below have been prepared on a basis consistent with our audited annual consolidated financial statements in this Annual Report on Form 10-K and include, in our opinion, all normal recurring adjustments necessary for a fair statement of the financial information contained in those statements.
Our historical results are not necessarily indicative of the results that may be expected in the future.
The following quarterly financial data should be read in conjunction with our audited consolidated financial statements and the related notes included elsewhere in this Annual Report on Form 10-K.


Outlook Budget Our Board of Directors approved a Budget of $3.5 billion for 2015, including capital expenditures of $3.4 billion.
With the continued uncertainty in commodity pricing, we have taken decisive action to protect our optionality and position us to be a stronger E&P company in the long term.
Our exploration spending has been reduced by more than 50 percent while we continue to focus on our three U. S.  resource plays.
We are also prepared to exercise further flexibility in our spend levels as pricing and the macro environment warrant.
Our Budget is broken down by reportable segment in the table below.


| Tier 1 common under Basel I rules $148,887 | Adjustments related to AOCI for AFS securities and defined benefit pension and OPEB plans | Add back of Basel I deductions(a) | Deduction for deferred tax asset related to net operating loss and foreign tax credit carryforwards | All other adjustments | Estimated Tier 1 common under Basel III rules | Estimated risk-weighted assets under Basel III Advanced Approach(b) | Estimated Tier 1 common ratio under Basel III Advanced Approach(c) |


| Year Ended December 31, 2015 2014 2013 | (Increase) decrease in trade accounts receivable | (Increase) decrease in inventories | (Increase) decrease in prepaid expenses and other assets | Increase (decrease) in accounts payable and accrued expenses | Increase (decrease) in accrued taxes | Increase (decrease) in other liabilities | Net change in operating assets and liabilities |


| 2006 2007 2008 2009 2010 Thereafter Total | $492 |


| September 18,   2008 September 30,   2008 December 31,   2008 | DISCA | DISCB | DISCK | S&P 500 | Peer Group |


| % of Total | $ Change (In millions) | Institutional | Individual | International | Corporate & Other | Auto & Home | Reinsurance | Total change, net of income tax |


| As of December 31, | 2013 | (In thousands) | DBS Licenses | MVDDS | 700 MHz Licenses | AWS Licenses | Total |


| Fiscal Year | In Millions | Net earnings, including earnings attributable to redeemable and noncontrollinginterests | Depreciation and amortization | After-taxearnings from joint ventures | Distributions of earnings from joint ventures | Stock-based compensation | Deferred income taxes | Pension and other postretirement benefit plan contributions | Pension and other postretirement benefit plan costs | Divestitures loss (gain) | Restructuring, impairment, and other exit costs | Changes in current assets and liabilities, excluding the effects of acquisitions anddivestitures | Other, net | Net cash provided by operating activities |


Note 26  Income taxes JPMorgan Chase and its eligible subsidiaries file a consolidated U. S.  federal income tax return.
JPMorgan Chase uses the asset and liability method to provide income taxes on all transactions recorded in the Consolidated Financial Statements.
This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes.
Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the tax rates that the Firm expects to be in effect when the underlying items of income and expense are realized.
JPMorgan Chases expense for income taxes includes the current and deferred portions of that expense.
A valuation allowance is established to reduce deferred tax assets to the amount the Firm expects to realize.
Due to the inherent complexities arising from the nature of the Firms businesses, and from conducting business and being taxed in a substantial number of jurisdictions, significant judgments and estimates are required to be made.
Agreement of tax liabilities between JPMorgan Chase and the many tax jurisdictions in which the Firm files tax returns may not be finalized for several years.
Thus, the Firms final tax-related assets and liabilities may ultimately be different from those currently reported.
The components of income tax expense/(benefit) included in the Consolidated Statements of Income were as follows for each of the years ended December 31, 2012, 2011, and 2010.
Income tax expense/(benefit)


| $ in millions Before Consolidation Consolidated Investment Products Adjustments Total | For the year ended December 31, 2011 | Net income | Net purchases of trading investments | Other adjustments to reconcile net income to net cash provided by operating activities | Changes in cash held by consolidated investment products | Other changes in operating assets and liabilities | Net cash provided by operating activities | Net proceeds of investments by consolidated investment products | Purchases of available for sale and other investments | Proceeds from sales and returns of capital of available for sale and other investments | Other investing activities | Net cash (used in)/provided by investing activities | Net capital distributed by consolidated investment products | Other financing activities | Net cash provided by/(used in) financing activities | Decrease in cash and cash equivalents | Foreign exchange movement on cash and cash equivalents | Cash and cash equivalents, beginning of period | Cash and cash equivalents, end of period |


| 2003 2002 2001 | Net sales | Cost of sales | Gross margin | Gross margin percentage |


| 2002 2001 2000 | Gains (losses) on non-current investments, net | Unrealized loss on convertible securities | Interest income | Interest expense | Miscellaneous other income and expense | Interest and other income, net | Total other income and expense |


General and Administrative Expenses In accordance with industry practice and the regulations that govern the cost accounting requirements for government contracts, most general and administrative expenses are considered allowable and allocable costs on government contracts.
These costs are allocated to contracts in progress on a systematic basis and contract performance factors include this cost component as an element of cost.2011—General and administrative expenses in 2011 decreased $39 million, or 6%, from 2010.
The decrease was due principally to a lower FAS/CAS Adjustment.
See FAS/CAS Adjustment below.2010—General and administrative expenses in 2010 increased to $663 million from $639 million in 2009 primarily as a result of higher cost allocations for Northrop Grumman management and support services.
The Northrop Grumman management and support services expense in 2010 increased to $115 million from $82 million in 2009.
The increase in management and support services allocations reflects higher employee compensation expenses in 2010 and the impact of the final allocation of prior year overheads.
As a percentage of total sales and service revenues, these costs decreased year over year due principally to the higher sales volume in 2010.


SVB FINANCIAL GROUP AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) to provide incentives for such persons to exert maximum efforts for our success and for the success of our affiliates.
The table below provides stock option information related to the 1989 Stock Option Plan and the 1997 Plan for the years ended December 31, 2005, 2004, and 2003:


1 There is no Tier 1 leverage ratio component in the definition of a well-capitalized bank holding company.
Zions is also subject to “capital conservation buffer” regulatory requirements.
When fully phased-in on January 1, 2019, the Basel III Capital Rules will require the Company and its subsidiary bank to maintain a 2.5% capital conservation buffer, designed to absorb losses during periods of economic stress, composed entirely of Common Equity Tier 1 (“CET1”), on top of the minimum risk-weighted asset ratios, effectively resulting in minimum ratios of (i) CET1 to risk-weighted assets of at least 7%, (ii) Tier 1 capital to risk-weighted assets of at least 8.5%, and (iii) Total capital to risk-weighted assets of at least 10.5%.
Banking institutions with a ratio of CET1 to risk-weighted assets above the minimum but below the capital conservation buffer will face constraints on dividends, equity repurchases, and compensation.
The implementation of the buffer will be phased-in beginning January 1, 2016 at the 0.625% level and increase by 0.625% on each subsequent January 1, until it reaches 2.5% on January 1, 2019.
Zions’ triggers and limits under actual conditions and baseline projections are more restrictive than the capital conservation buffer requirements.19.


| Three Months Ended | Dec. 31, 2014 | (Unaudited, in thousands) | Reconciliation of Net Loss to Adjusted EBITDA: | Net loss | Stock-based compensation expense | Depreciation and amortization expense | Interest and other expense (income) | Provision (benefit) for income taxes | Adjusted EBITDA |


| Payments Due by Year  In thousands of dollars | Contractual Obligations | Unconditional Purchase Obligations | Non-cancelable Operating Leases | Long-term Debt | Total Obligations |


| Location Type Principal Use SquareFootage Ownership | Santa Clara, CA | Austin, TX | Rehovot, Israel | Alzenau, Germany | Kalispell, MT | Cheseaux, Switzerland | Treviso, Italy | Singapore | Gloucester, MA | Tainan, Taiwan | Xi’an, China | Hsinchu, Taiwan | Shanghai, China |


| 2013 $9.8 | 2014 | 2015 | 2016 | 2017 | Thereafter | Total future maturities of the long-term debt |


Investments Debt Securities Our short-term and long-term investments in debt securities are comprised of auction-rate securities and commercial paper.
In accordance with SFAS No.115, Accounting for Certain Investments in Debt and Equity Securities, and based on our ability to market and sell these instruments, we classify auction-rate securities and other investments in debt securities as available-for-sale and carry them at fair value.
Auction-rate securities were intended to behave like short-term debt instruments because their interest rates reset periodically through an auction process, typically at intervals of 7, 28 and 35 days.
Investments in these securities can be sold for cash at par value on the auction date if the auction is successful.
Substantially all of our auction-rate securities are AAA/Aaa-rated and collateralized by student loans, which are guaranteed 95% to 100% by the U. S.  government.
We also hold auction-rate securities that are in the form of municipal revenue bonds, the vast majority of which are AAA/Aaa-rated and insured by bond insurers.
We do not have any investments in securities that are collateralized by assets that include mortgages or subprime debt.
Our intent with these investments is not to hold these securities to maturity, but to use the periodic auction feature to provide liquidity as needed.
See Note 3, Investments, for further information.
In accordance with our investment policy, we place our investments in debt securities with issuers who have highquality credit and limit the amount of investment exposure to any one issuer.
The primary objective of our investment activities is to preserve principal and maintain a desired level of liquidity to meet working capital needs.
We seek to preserve principal and minimize exposure to interest-rate fluctuations by limiting default risk, market risk and reinvestment risk.
Marketable Equity Securities We also invest in marketable equity securities and classify them as available-for-sale.
Investments in marketable equity securities are included in equity and other investments in our consolidated balance sheets, and are reported at fair value based on quoted market prices.
All unrealized holding gains and losses are reflected net of tax in accumulated other comprehensive income in shareholders equity.


| Liability Component (in millions) Equity Component (in millions) | Principal Balance | January 1, 2009 | Accretion of debt discount | Early extinguishment of debt | December 31, 2009 | Accretion of debt discount | December 31, 2010 |


PROVISIONS FOR LOSSES Charge card provision for losses decreased $41 million or 6 percent in 2016 compared to 2015, and $55 million or 7 percent in 2015 compared to 2014.
The decrease in 2016 was driven by lower net write-offs and improved delinquencies.
The decrease in 2015 reflects a reserve release versus a reserve build in 2014, partially offset by higher write-offs.
Card Member loans provision for losses increased $45 million or 4 percent in 2016 compared to 2015, and $52 million or 5 percent in 2015 compared to 2014.
The increase in 2016 was primarily driven by strong momentum in our lending growth initiatives, resulting in higher loan balances, increased net write-offs in the current year and a slight increase in delinquencies, partially offset by the impact of the HFS portfolios, as the current year does not reflect the associated credit costs, as previously mentioned.
The increase in 2015 primarily reflects a reserve build versus a reserve release in 2014.
Other provision for losses increased $34 million or 56 percent in 2016 compared to 2015, and decreased $53 million or 46 percent in 2015 compared to 2014.
The increase in 2016 was primarily driven by growth in the commercial financing portfolio resulting in higher net write-offs.
The decrease in 2015 was primarily due to a merchant-related charge in the fourth quarter of 2014.


| In millions 2006 2005 2004 | Industry segment operating profits | Corporate items, net | Corporate special items* | Interest expense, net | Minority interest | Income tax (provision) benefit | Discontinued operations | Net earnings (loss) |


ADOBE INC.  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 91 non-employee director is a restricted stock unit award having an aggregate value of $0.3 million based on the average stock price over the 30 calendar days ending on the day before the date of grant and vest 100% on the day preceding the next annual meeting.
The actual target grant value will be prorated based on the number of days remaining before the next annual meeting or the date of the first anniversary of our last annual meeting if the next annual meeting is not yet scheduled.
Annual equity grants to non-employee directors in the form of restricted stock units shall have an aggregate value of $0.3 million as based on the average stock price over the 30 calendar days ending on the day before the date of grant and vest 100% on the day preceding the next annual meeting.


| December 31, 2007 December 31, 2006 | Carrying Value | (In thousands) | Mortgages and notes payable | Senior notes | 2014 | Shares outstanding at beginning of period | Treasury stock purchases-1 | Other-2 | Shares outstanding at end of period |


pre-construction costs, interim dam safety measures and environmental costs and construction costs.
The authorized costs were being recovered via a surcharge over a twenty-year period which began in October 2012.
The unrecovered balance of project costs incurred, including cost of capital, net of surcharges totaled $85 million and $89 million as of December 31, 2018 and 2017, respectively.
Surcharges collected were $8 million and $7 million for the years ended December 31, 2018 and 2017, respectively.
Pursuant to the general rate case approved in December 2018, approval was granted to reset the twenty-year amortization period to begin January 1, 2018 and to establish an annual revenue requirement of $8 million to be recovered through base rates.
Debt expense is amortized over the lives of the respective issues.
Call premiums on the redemption of long-term debt, as well as unamortized debt expense, are deferred and amortized to the extent they will be recovered through future service rates.
Purchase premium recoverable through rates is primarily the recovery of the acquisition premiums related to an asset acquisition by the Company’s utility subsidiary in California during 2002, and acquisitions in 2007 by the Company’s utility subsidiary in New Jersey.
As authorized for recovery by the California and New Jersey PUCs, these costs are being amortized to depreciation and amortization on the Consolidated Statements of Operations through November 2048.
Tank painting costs are generally deferred and amortized to operations and maintenance expense on the Consolidated Statements of Operations on a straight-line basis over periods ranging from five to fifteen years, as authorized by the regulatory authorities in their determination of rates charged for service.
As a result of the prepayment by American Water Capital Corp. , the Company’s wholly owned finance subsidiary (“AWCC”), of the 5.62% Series C Senior Notes due upon maturity on December 21, 2018 (the “Series C Notes”), 5.62% Series E Senior Notes due March 29, 2019 (the “Series E Notes”) and 5.77% Series F Senior Notes due December 21, 2022 (the “Series F Notes,” and together with the Series E Notes, the “Series Notes”), a make-whole premium of $10 million was paid to the holders of the Series Notes on September 11, 2018.
Substantially all of these early debt extinguishment costs were allocable to the Company’s utility subsidiaries and recorded as regulatory assets, as the Company believes they are probable of recovery in future rates.
Other regulatory assets include certain construction costs for treatment facilities, property tax stabilization, employee-related costs, deferred other postretirement benefit expense, business services project expenses, coastal water project costs, rate case expenditures and environmental remediation costs among others.
These costs are deferred because the amounts are being recovered in rates or are probable of recovery through rates in future periods.
Regulatory Liabilities Regulatory liabilities generally represent amounts that are probable of being credited or refunded to customers through the rate-making process.
Also, if costs expected to be incurred in the future are currently being recovered through rates, the Company records those expected future costs as regulatory liabilities.
The following table provides the composition of regulatory liabilities as of December 31:


| Company / Index 2012 2013 2014 2015 2016 2017 | Teleflex Incorporated | S&P 500 Index | S&P 500 Healthcare Equipment & Supply Index |


| Other Benefits | ($ in millions) | 2012 | 2013 | 2014 | 2015 | 2016 | Years 2017 to 2021 |


MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES The Company’s common stock is quoted on the NASDAQ Global Select Market (“NASDAQ”) under the symbol “JKHY”.
The Company established a practice of paying quarterly dividends at the end of fiscal 1990 and has paid dividends with respect to every quarter since that time.
The declaration and payment of any future dividends will continue to be at the discretion of our Board of Directors and will depend upon, among other factors, our earnings, capital requirements, contractual restrictions, and operating and financial condition.
The Company does not currently foresee any changes in its dividend practices.
On August 15, 2019, there were approximately 145,300 holders of the Company’s common stock, including individual participants in security position listings.
On that same date the last sale price of the common shares as reported on NASDAQ was $141.94 per share.
Issuer Purchases of Equity Securities The following shares of the Company were repurchased during the quarter ended June 30, 2019:


Distribution expenses decreased $46 million, or 11%, to $371 million for the year ended December 31, 2009, primarily due to lower average assets.
General and administrative expense increased $76 million, or 9%, to $901 million for the year ended December 31, 2009, primarily due to integration costs and ongoing expenses from our acquisition of Seligman in the fourth quarter of 2008 and increases in hedge fund performance compensation, our performance compensation pool and legal expenses, partially offset by expense controls and a positive impact of foreign currency translation.
The positive impact of foreign currency translation on general and administrative expense partially offset the negative impact of foreign currency translation on management and financial advice fees.
Annuities Our Annuities segment provides variable and fixed annuity products of RiverSource Life companies to retail clients primarily distributed through our affiliated financial advisors and to the retail clients of unaffiliated advisors through third-party distribution.
Revenues for our variable annuity products are primarily earned as fees based on underlying account balances, which are impacted by both market movements and net asset flows.
Revenues for our fixed annuity products are primarily earned as net investment income on assets supporting fixed account balances, with profitability significantly impacted by the spread between net investment income earned and interest credited on the fixed account balances.
We also earn net investment income on owned assets supporting reserves for immediate annuities and for certain guaranteed benefits offered with variable annuities and on capital supporting the business.
Intersegment revenues for this segment reflect fees paid by the Asset Management segment for marketing support and other services provided in connection with the availability of RiverSource VST Funds under the variable annuity contracts.
Intersegment expenses for this segment include distribution expenses for services provided by the Advice & Wealth Management segment, as well as expenses for investment management services provided by the Asset Management segment.
In 2009, RiverSource variable annuities had net inflows of $1.8 billion, and variable annuity contract accumulation values increased $11.8 billion.
These changes in variable annuities affected both RiverSource managed owned assets and owned assets.
Our fixed annuities had total net inflows of $1.9 billion in 2009 compared to net outflows of $0.7 billion in the prior year, which impacted our RiverSource managed owned assets.


| Derivative assets -1 Derivative liabilities -2 | December 31, 2010 | (in millions) | Derivatives designated as hedging instruments | Interest rate contracts | Foreign exchange contracts | Total derivatives designated as hedging instruments | Derivatives not designated as hedging instruments | Interest rate contracts | Foreign exchange contracts | Equity contracts | Credit contracts | Other contracts | Total derivatives not designated as hedging instruments | Total derivative instruments |


| (Millions of barrels) United States Europe Africa (a) Continuing Operations Discontinued Operations | Liquid Hydrocarbons | Proved developed and undeveloped reserves: | Beginning of year – 2005 | Purchase of reserves in place(b) | Re-entry to Libya concessions | Revisions of previous estimates | Improved recovery | Extensions, discoveries and other additions | Production | Sales of reserves in place(b) | End of year – 2005 | Purchase of reserves in place(b) | Revisions of previous estimates | Improved recovery | Extensions, discoveries and other additions | Production | Sales of reserves in place(b) | End of year – 2006 | Purchase of reserves in place(b) | Revisions of previous estimates | Improved recovery | Extensions, discoveries and other additions | Production | End of year – 2007 | Proved developed reserves: | Beginning of year – 2005 | End of year – 2005 | End of year – 2006 | End of year – 2007 |


| 30 September 2019 1 October 2018 | Assets | Contract assets – current | Contract fulfillment costs – current | Liabilities | Contract liabilities – current | Contract liabilities – noncurrent |


| Cash and cash equivalents $75 | Receivables, net | Inventories, net | Other current assets | Property, plant and equipment | Goodwill | Intangible assets: | Customer programs | Trademarks | Other noncurrent assets | Deferred income taxes, noncurrent | Total identifiable assets and goodwill | Accounts payable | Customer advances and amounts in excess of costs incurred | Salaries, benefits, and payroll taxes | Other current liabilities | Customer contractual obligations(a) | Other noncurrent liabilities | Total liabilities assumed | Total consideration |


| Payments due by Period (in thousands) | Contractual Obligations | Long-term debt-1 | Line of credit-2 | Share of unconsolidated joint ventures' debt-3 | Ground leases | Development and construction backlog costs-4 | Other | Total Contractual Obligations |


Table of Contents related to Mac OS X Version 10.6 Snow Leopard and excluded from R&D expense, while R&D expense for 2007 excluded $75 million of capitalized software development costs related to Mac OS X Leopard and iPhone.
Although total R&D expense increased 42% during 2008, it remained relatively flat as a percentage of net sales given the 35% increase in revenue during 2008.
The Company continues to believe that focused investments in R&D are critical to its future growth and competitive position in the marketplace and are directly related to timely development of new and enhanced products that are central to the Companys core business strategy.
As such, the Company expects to increase spending in R&D to remain competitive.
Expenditures for R&D increased 10% or $70 million to $782 million in 2007 compared to 2006.
The increases in R&D expense were due primarily to an increase in R&D headcount in 2007 to support expanded R&D activities, partially offset by one less week of expenses in the first quarter of 2007 and the capitalized software development costs mentioned above.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS VII held by the Trust VII bear a fixed rate of interest of 8.875% until May 15, 2058.
Thereafter, the notes pay a floating rate at three-month LIBOR plus 500 bp.
The Bancorp entered into an interest rate swap to convert $275 million of the fixed-rate debt into floating.
At December 31, 2008, the rate paid on the swap was 6.05%.
The JSN VII may be redeemed at the option of the Bancorp on or after May 15, 2013, or in certain other limited circumstances, at a redemption price of 100% of the principal amount plus accrued but unpaid interest.
All redemptions are subject to certain conditions and generally require approval by the Federal Reserve Board.
Subsidiary Long-Term Borrowings The senior fixed-rate bank notes due from 2009 to 2019 are the obligations of a subsidiary bank.
The maturities of the face value of the senior fixed-rate bank notes are as follows: $36 million in 2009, $800 million in 2010 and $275 million in 2019.
The Bancorp entered into interest rate swaps to convert $1.1 billion of the fixed-rate debt into floating rates.
At December 31, 2008, the rates paid on these swaps were 2.19% on $800 million and 2.20% on $275 million.
In August 2008, $500 million of senior fixed-rate bank notes issued in July of 2003 matured and were paid.
These long-term bank notes were issued to third-party investors at a fixed rate of 3.375%.
The senior floating-rate bank notes due in 2013 are the obligations of a subsidiary bank.
The notes pay a floating rate at three-month LIBOR plus 11 bp.
The senior extendable notes consist of $797 million that currently pay interest at three-month LIBOR plus 4 bp and $400 million that pay at the Federal Funds open rate plus 12 bp.
The subordinated fixed-rate bank notes due in 2015 are the obligations of a subsidiary bank.
The Bancorp entered into interest rate swaps to convert the fixed-rate debt into floating rate.
At December 31, 2008, the weighted-average rate paid on the swaps was 3.29%.
The junior subordinated floating-rate bank notes due in 2032 and 2033 were assumed by a Bancorp subsidiary as part of the acquisition of Crown in November 2007.
Two of the notes pay floating at three-month LIBOR plus 310 and 325 bp.
The third note pays floating at six-month LIBOR plus 370 bp.
The three-month LIBOR plus 290 bp and the three-month LIBOR plus 279 bp junior subordinated debentures due in 2033 and 2034, respectively, were assumed by a subsidiary of the Bancorp in connection with the acquisition of First National Bank.
The obligations were issued to FNB Statutory Trusts I and II, respectively.
The junior subordinated floating-rate bank notes due in 2035 were assumed by a Bancorp subsidiary as part of the acquisition of First Charter in May 2008.
The obligations were issued to First Charter Capital Trust I and II, respectively.
The notes of First Charter Capital Trust I and II pay floating at three-month LIBOR plus 169 bp and 142 bp, respectively.
The Bancorp has fully and unconditionally guaranteed all obligations under the acquired trust preferred securities.
At December 31, 2008, FHLB advances have rates ranging from 0% to 8.34%, with interest payable monthly.
The advances are secured by certain residential mortgage loans and securities totaling $8.6 billion.
At December 31, 2008, $2.5 billion of FHLB advances are floating rate.
The Bancorp has interest rate caps, with a notional of $1.5 billion, held against its FHLB advance borrowings.
The $3.6 billion in advances mature as follows: $1.5 billion in 2009, $1 million in 2010, $2 million in 2011, $1 billion in 2012 and $1.1 billion in 2013 and thereafter.
Medium-term senior notes and subordinated bank notes with maturities ranging from one year to 30 years can be issued by two subsidiary banks, of which $3.8 billion was outstanding at December 31, 2008 with $16.2 billion available for future issuance.
There were no other medium-term senior notes outstanding on either of the two subsidiary banks as of December 31, 2008.15.
COMMITMENTS, CONTINGENT LIABILITIES AND GUARANTEES The Bancorp, in the normal course of business, enters into financial instruments and various agreements to meet the financing needs of its customers.
The Bancorp also enters into certain transactions and agreements to manage its interest rate and prepayment risks, provide funding, equipment and locations for its operations and invest in its communities.
These instruments and agreements involve, to varying degrees, elements of credit risk, counterparty risk and market risk in excess of the amounts recognized in the Bancorp’s Consolidated Balance Sheets.
Creditworthiness for all instruments and agreements is evaluated on a case-by-case basis in accordance with the Bancorp’s credit policies.
The Bancorp’s significant commitments, contingent liabilities and guarantees in excess of the amounts recognized in the Consolidated Balance Sheets are summarized as follows: Commitments The Bancorp has certain commitments to make future payments under contracts.
A summary of significant commitments at December 31:


| 2004 2003 2002 | (Dollars in millions) | Net sales | % change compared with prior year | Segment profit | % change compared with prior year |


| 2004 Entergy  Arkansas Entergy  Gulf States Entergy  Louisiana Entergy  Mississippi Entergy  New Orleans System  Energy | (In Thousands) | Computed at statutory rate -35% | Increases (reductions) in tax | resulting from: | State income taxes net of | federal income tax effect | Regulatory differences - | utility plant items | Amortization of investment | tax credits | Flow-through/permanent | differences | Other -- net | Total income taxes | Effective Income Tax Rate |


| 2011 2010 2009 Excluding   Option   Exchange   Program 2009* | Options granted (in thousands) | Weighted-average exercise price-stock options | Weighted-average grant date fair value-stock options | Assumptions: | Weighted-average expected volatility | Weighted-average expected term (in years) | Risk-free interest rate | Expected dividend yield |


| Outstanding Options Exercisable Options | Exercise Prices | $8.09 – $8.44 | $11.45 – $16.48 | $22.00 – $26.50 | 678,338 |


| Total Revenue -1 Net Income (Loss) | (Dollars in millions) | Deposits | Global Card Services-2 | Home Loans & Insurance | Global Banking | Global Markets | Global Wealth & Investment Management | All Other-2 | Total FTE basis | FTE adjustment | Total Consolidated |


| September 24, 2011 September 25, 2010 | Deferred tax assets | Net operating loss carryforwards | Nondeductible accruals | Nondeductible reserves | Stock-based compensation | Research and other credits | Convertible notes issuance costs | Deferred gain | Nonqualified deferred compensation plan | Other temporary differences | 132,715 | Less: valuation allowance | $118,785 | Deferred tax liabilities | Depreciation and amortization | Debt discount on convertible notes | Original issue discount | Deferral on convertible notes exchange | Investment in subsidiary | $-1,036,604 | $ -917,819 |


| (DOLLARS IN THOUSANDS) Rate Maturities 2012 2011 | Senior notes — 2007 | Senior notes — 2006 | Credit facilities | Bank overdrafts and other | Deferred realized gains on interest rate swaps | 1,031,175 | Less: Current portion of long-term debt | $881,104 |


| Equity Compensation PlanCategory Number ofSecurities to beIssued UponExercise ofOutstandingOptions, Warrantsand Rights Weighted AverageExercise Price ofOutstandingOptions, Warrantsand Rights Number of SecuritiesRemaining Availablefor Future IssuanceUnder EquityCompensation Plans(excluding securitiesreflected in the firstcolumn) | Stockholder-approved plans | Nonstockholder-approved plans | Subtotal (except for weighted average exercise price) | Employee Stock Purchase Plan | Total |


| Remainder of 1999 $7,606 | 2000 | 2001 | 2002 | 2003 | Thereafter | Total |


STOCK COMPENSATION PLANS As of December 31, 2018, HII had stock-based compensation awards outstanding under the following plans: the Huntington Ingalls Industries, Inc.  2011 Long-Term Incentive Stock Plan (the "2011 Plan") and the Huntington Ingalls Industries, Inc.  2012 Long-Term Incentive Stock Plan (the "2012 Plan").
Stock Compensation Plans On March 23, 2012, the Company's board of directors adopted the 2012 Plan, subject to stockholder approval, and the Company's stockholders approved the 2012 Plan on May 2, 2012.
Award grants made on or after May 2, 2012, were made under the 2012 Plan.
Award grants made prior to May 2, 2012, were made under the 2011 Plan.
No future grants will be made under the 2011 Plan.


| Pension plans Postretirement benefit plans | U.S. plans | In millions of dollars | Qualified Plans | Benefits earned during the year | Interest cost on benefit obligation | Expected return on plan assets | Amortization of unrecognized | Net transition obligation | Prior service cost (benefit) | Net actuarial loss | Curtailment loss-1 | Net qualified (benefit) expense | Nonqualified (benefit) expense | Total net (benefit) expense |


Other Commitments Global Principal Investments and Other Equity Investments At December 31, 2011 and 2010, the Corporation had unfunded equity investment commitments of $772 million and $1.5 billion.
In light of proposed Basel regulatory capital changes related to unfunded commitments over the past two years, the Corporation has actively reduced these commitments in a series of sale transactions involving its private equity fund investments.
Other Commitments At December 31, 2011 and 2010, the Corporation had commitments to purchase loans (e. g. , residential mortgage and commercial real estate) of $2.5 billion and $2.6 billion which upon settlement will be included in loans or LHFS.
At December 31, 2011 and 2010, the Corporation had commitments to enter into forward-dated resale and securities borrowing agreements of $67.0 billion and $39.4 billion.
In addition, the Corporation had commitments to enter into forwarddated repurchase and securities lending agreements of $42.0 billion and $33.5 billion.
All of these commitments expire within the next 12 months.
The Corporation is a party to operating leases for certain of its premises and equipment.
Commitments under these leases are approximately $3.0 billion, $2.6 billion, $2.0 billion, $1.6 billion and $1.3 billion for 2012 through 2016, respectively, and $6.1 billion in the aggregate for all years thereafter.


[2] Estimated life, annuity and disability obligations include death and disability claims, policy surrenders, policyholder dividends and trail commissions offset by expected future deposits and premiums on in-force contracts.
Estimated life, annuity and disability obligations are based on mortality, morbidity and lapse assumptions comparable with the Companys historical experience, modified for recent observed trends.
The Company has also assumed market growth and interest crediting consistent with other assumptions.
In contrast to this table, the majority of the Companys obligations are recorded on the balance sheet at the current account values and do not incorporate an expectation of future market growth, interest crediting, or future deposits.
Therefore, the estimated obligations presented in this table significantly exceed the liabilities recorded in reserve for future policy benefits and unpaid losses and loss adjustment expenses, other policyholder funds and benefits payable, and separate account liabilities.
Due to the significance of the assumptions used, the amounts presented could materially differ from actual results.
See Note 2 - Business Dispositions of Notes to Consolidated Financial Statements for further information as to Retirement Plans and Individual Life reinsurance transactions.


continue to be deployed as wireless service providers are beginning their investments in 3G data networks.
Similarly, in Ghana and Uganda, wireless service providers continue to build out their voice and data networks in order to satisfy increasing demand for wireless services.
In South Africa, where voice networks are in a more advanced stage of development, carriers are beginning to deploy 3G data networks across spectrum acquired in recent spectrum auctions.
In Mexico and Brazil, where nationwide voice networks have also been deployed, some incumbent wireless service providers continue to invest in their 3G data networks, and recent spectrum auctions have enabled other incumbent wireless service providers to begin their initial investments in 3G data networks.
In markets such as Chile, Peru and Colombia, recent or anticipated spectrum auctions are expected to drive investment in nationwide voice and 3G data networks.
In Germany, our most mature international wireless market, demand is currently being driven by a government-mandated rural fourth generation network build-out, as well as other tenant initiatives to deploy next generation wireless services.
We believe incremental demand for our tower sites will continue in our international markets as wireless service providers seek to remain competitive by increasing the coverage of their networks while also investing in next generation data networks.
Rental and Management Operations New Site Revenue Growth.
During the year ended December 31, 2012, we grew our portfolio of communications real estate through acquisitions and construction activities, including the acquisition and construction of approximately 8,810 sites.
In a majority of our international markets, the acquisition or construction of new sites results in increased pass-through revenues and expenses.
We continue to evaluate opportunities to acquire larger communications real estate portfolios, both domestically and internationally, to determine whether they meet our risk adjusted hurdle rates and whether we believe we can effectively integrate them into our existing portfolio.


Operating Activities Cash flow from operations increased $10.8 million in 2004 primarily due to the increased collection of deferred fuel costs and the receipt of an income tax payment through Entergy's inter-company tax allocation process.
The increase was almost entirely offset by money pool activity.
In 2003, the domestic utility companies and System Energy filed, with the IRS, a change in tax accounting method notification for their respective calculations of cost of goods sold.
The adjustment implemented a simplified method of allocation of overhead to the production of electricity, which is provided under the IRS capitalization regulations.
The cumulative adjustment placing these companies on the new methodology resulted in a $505 million deduction for Entergy Louisiana on Entergy's 2003 income tax return.
There was no cash benefit from the method change in 2003.
In 2004 Entergy Louisiana realized $100 million in cash tax benefit from the method change.
This tax accounting method change is an issue across the utility industry and will likely be challenged by the IRS on audit.
As of December 31, 2004, Entergy Louisiana has a net operating loss (NOL) carryforward for tax purposes of $195.7 million, principally resulting from the change in tax accounting method related to cost of goods sold.
If the tax accounting method change is sustained, Entergy Louisiana expects to utilize the NOL carryforward through 2005.
Cash flow from operations decreased $621.8 million in 2003 as a result of Entergy Louisiana changing its method of accounting for tax purposes related to its wholesale electric power contracts, including the contract to purchase power from the Vidalia project (the contract is discussed in Note 8 to the domestic utility companies and System Energy financial statements).
The new tax accounting method provided a cumulative cash flow benefit of approximately $790 million through 2004, which is expected to reverse in the years 2005 through 2031.
The election did not reduce book income tax expense.
The timing of the reversal of this benefit depends on several variables, including the price of power.
In a settlement approved by the LPSC, Entergy Louisiana will keep a portion of the benefit in exchange for crediting customer rates.
The credit will be $11 million annually through at least 2010.
See Part I, Item 1 for additional details concerning the settlement.
Entergy Louisiana reduced its indebtedness and preferred stock with a portion of the cash from the tax benefit.
In accordance with the terms of the settlement, Entergy Louisiana requested SEC approval to return up to $350 million of common equity capital to Entergy Corporation in order to maintain Entergy Louisiana's capital structure.
In December 2002, Entergy Louisiana repurchased $120 million of common stock from Entergy Corporation and, at the time of settlement, paid a dividend of $122.6 million pursuant to the SEC approval.
The provisions of the settlement provide that the LPSC shall not recognize or use Entergy Louisiana's use of this cash in


| Annual U.S. Net Sales BMS Share as a % of U.S. Net Sales | $0 to $2.7 billion | $2.7 billion to $3.2 billion | $3.2 billion to $3.7 billion | $3.7 billion to $4.0 billion | $4.0 billion to $4.2 billion | In excess of $4.2 billion |


IMPAIRED LOANS Impaired loans include commercial nonperforming loans and consumer and commercial TDRs, regardless of nonperforming status.
Excluded from impaired loans are nonperforming leases, loans held for sale, smaller balance homogeneous type loans and purchased impaired loans.
See Note 6 Purchased Loans for additional information.
Nonperforming equipment lease financing loans of $12 million and $22 million at December 31, 2012 and December 31, 2011, respectively, are excluded from impaired loans pursuant to authoritative lease accounting guidance.
We did not recognize interest income on nonperforming impaired loans while they were in impaired loan status during 2012 and 2011.
The following table provides further detail on impaired loans individually evaluated for impairment and the associated ALLL.
Certain commercial impaired loans do not have a related ALLL as the valuation of these impaired loans exceeded the recorded investment.


Cash used in investing activities for continuing operations decreased by $421 million during 2009, primarily due to reduced capital expenditures; a withdrawal of funds, to refund customers, from the external decommissioning fund as approved by the MPUC; as well as reduced investment in the WYCO natural gas pipeline and storage project.
No cash was provided by investing activities for discontinued operations.
Cash used in investing activities for continuing operations increased by $74 million during 2008, primarily due to increased capital expenditures, and the continued investment in the WYCO natural gas pipeline and storage project.


| Payments due by period | Total | (In thousands) | Long-term debt obligations | Capital lease obligations | Interest expense on long-term debt and capital lease obligations | Satellite-related obligations | Operating lease obligations | Purchase obligations | Total |


On behalf of our customers, we lend their securities to creditworthy brokers and other institutions.
In certain circumstances, we may indemnify our customers for the fair market value of those securities against a failure of the borrower to return such securities.
Collateral funds received in connection with our securities finance services are held by us as agent and are not recorded in our consolidated statement of condition.
We require the borrowers to provide collateral in an amount equal to or in excess of 100% of the fair market value of the securities borrowed.
The borrowed securities are revalued daily to determine if additional collateral is necessary.
In this regard, we held, as agent, cash and U. S.  government securities totaling $572.93 billion and $527.37 billion as collateral for indemnified securities on loan at December 31, 2007 and 2006, respectively.
Approximately 82% of the unfunded commitments to extend credit and liquidity asset purchase agreements expire within one year from the date of issue.
Since many of the commitments are expected to expire or renew without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements.
In the normal course of business, we provide liquidity and credit enhancements to asset-backed commercial paper programs, referred to as conduits.
 These conduits are described in note 11.
The commercial paper issuances and commitments of the conduits to provide funding are supported by liquidity asset purchase agreements and backup liquidity lines of credit, the majority of which are provided by us.
In addition, we provide direct credit support to the conduits in the form of standby letters of credit.
Our commitments under liquidity asset purchase agreements and back-up lines of credit totaled $28.37 billion at December 31, 2007, and are included in the preceding table.
Our commitments under standby letters of credit totaled $1.04 billion at December 31, 2007, and are also included in the preceding table.
Deterioration in asset performance or certain other factors affecting the liquidity of the commercial paper may shift the asset risk from the commercial paper investors to us as the liquidity or credit enhancement provider.
In addition, the conduits may need to draw upon the back-up facilities to repay maturing commercial paper.
In these instances, we would either acquire the assets of the conduits or make loans to the conduits secured by the conduits assets.


| Plan category Number of Securities to be Issued Upon Exercise of Outstanding Options, Warrants and Rights-1(a)(b) Weighted-Average Exercise Price of Outstanding Options,Warrants and Rights-2 Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding SecuritiesReflected in Column (a)) (c) | Equity compensation plans approved by security holders | Equity compensation plans not approved by security holders-3 | Total |


| 2011 2010 2009 2008 2007 | As of and for the yearsended December 31in millions, except per share data | Net sales | Gross profit | Gross profit as a percentage of net sales | Earnings (loss) from continuing operations1 | Earnings (loss) on discontinued operations, net of tax2 | Net earnings (loss) | Basic earnings (loss) per share | Earnings from continuing operations | Discontinued operations | Basic net earnings (loss) per share | Diluted earnings (loss) per share | Earnings from continuing operations | Discontinued operations | Diluted net earnings (loss) per share | Cash and cash equivalents | Total assets3 | Working capital3 | Current maturities and short-term borrowings | Long-term debt | Equity3 | Cash dividends declared per share |


(1) During 2007, 2006 and 2005, we recorded non-recurring separation costs as a result of our separation from American Express.
During the years ended December 31, 2007, 2006 and 2005, $236 million ($154 million after-tax), $361 million ($235 million after-tax) and $293 million ($191 million after-tax), respectively, of such costs were incurred.
These costs were primarily associated with establishing the Ameriprise Financial brand, separating and reestablishing our technology platforms and advisor and employee retention programs.
(2) Diluted shares used in this calculation represent basic shares due to the net loss.
Using actual diluted shares would result in anti-dilution.
HOST HOTELS & RESORTS, INC. , HOST HOTELS & RESORTS, L. P. , AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) Cash paid for income taxes, net of refunds received, was $40 million, $15 million, and $9 million in 2017, 2016, and 2015, respectively.
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions):


As of September 30, 2009, there was $48.2 million of total unrecognized pre-tax compensation cost, net of estimated forfeitures, related to grants under our Restricted Stock Plan.
These costs are expected to be recognized over a weighted average period of approximately 3.46 years.
The total fair value of shares vested under this plan during the fiscal year ended September 30, 2009 was $9.3 million.


| FOR THE YEAR ENDED DECEMBER 31: 2014 2013 2012 2011 2010 | Total fee revenue | Net interest revenue | Gains (losses) related to investment securities, net(1) | Total revenue | Provision for loan losses | Expenses: | Compensation and employee benefits | Information systems and communications | Transaction processing services | Occupancy | Claims resolution | Securities lending charge | Acquisition and restructuring costs, net-2 | Other | Total expenses | Income before income tax expense | Income tax expense-3 | Net income | Adjustments to net income-4 | Net income available to common shareholders | PER COMMON SHARE: | Earnings per common share: | Basic | Diluted | Cash dividends declared | Closing market price (at year end) | AT YEAR END: | Investment securities | Average total interest-earning assets | Total assets | Deposits | Long-term debt | Total shareholders' equity | Assets under custody and administration (in billions) | Assets under management (in billions) | Number of employees | RATIOS: | Return on average common shareholders' equity | Return on average assets | Common dividend payout | Average common equity to average total assets | Net interest margin, fully taxable-equivalent basis | Common equity tier 1 ratio-5 | Tier 1 capital ratio-5 | Total capital ratio-5 | Tier 1 leverage ratio-5 |


(1) Of these amounts, $4,816, $5,814, $7,052, $6,506, $6,506, $6,265, $6,100 and $6,442, respectively, were from related parties.
(2) Of these amounts, $729, $984, $1,087, $1,605, $2,611, $1,971, $1,990 and $1,778, respectively, were from related parties.
(3) Of these amounts, $835, $998, $1,135, $1,461, $1,434, $1,139, $1,592 and $1,479, respectively, were from related parties.
(4) Of these amounts, $41, $43, $53, $52, $60, $76, $118 and $207, respectively, were from related parties.
State income tax returns are generally subject to examination for a period of 3 to 5 years after filing of the respective return.
The state impact of any federal changes generally remains subject to examination by various states for a period of up to one year after formal notification to the states.
We have various state income tax returns in the process of examination, administrative appeals or litigation.
Our tax returns are currently under examination in various foreign jurisdictions.
Foreign jurisdictions have statutes of limitations generally ranging from 3 to 5 years.
Years still open to examination by foreign tax authorities in major jurisdictions include: Australia (2009 onward), Canada (2007 onward), France (2011 onward), Germany (2009 onward), Ireland (2009 onward), Italy (2010 onward), Japan (2010 onward), Korea (2008 onward), Puerto Rico (2008 onward), Switzerland (2012 onward), and the United Kingdom (2012 onward).16.


| Decrease LifeBy 1 Year Increase Life By 1 Year | Merchant Gases | Electronics and Performance Materials |


Cost of insurance and administrative charges on universal and variable universal life insurance are reflected in other revenues and were $672 million, $519 million and $477 million for the years ended December 31, 2008, 2007 and 2006, respectively.
These amounts were net of reinsurance ceded of $61 million, $57 million and $55 million for the years ended December 31, 2008, 2007 and 2006, respectively.
Reinsurance recovered from reinsurers was $151 million, $130 million and $129 million for the years ended December 31, 2008, 2007 and 2006, respectively.
Reinsurance contracts do not relieve the Company from its primary obligation to policyholders.
Receivables included $1.6 billion and $1.3 billion of reinsurance recoverables as of December 31, 2008 and 2007, respectively, including $1.2 billion and $1.0 billion recoverable from Genworth, respectively.
Included in future policy benefits


| Location Ralph Lauren | United States and Canada | Europe | Japan | Total | Fiscal Years Ended | March 31, 2007 | (millions) | Operating Income: | Wholesale | Retail | Licensing | 843.6 | Less: | Unallocated corporate expenses | Unallocated legal and restructuring charges | Total operating income | Fiscal Years Ended | March 31, 2007 | (millions) | Net cash provided by operating activities | Net cash used in investing activities | Net cash provided by (used in) financing activities | Effect of exchange rate changes on cash and cash equivalents | Net increase (decrease) in cash and cash equivalents |


| Period (a)(b) Total Number of Shares Purchased Average Price Paid Per Share (c)(d) Total Number of Shares Purchased as part of Publicly Announced Plans or Programs(1) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs-1 | October 1 to October 31, 2015 | Share repurchase program-1 | Employee transactions-2 | November 1 to November 30, 2015 | Share repurchase program-1 | Employee transactions-2 | December 1 to December 31, 2015 | Share repurchase program-1 | Employee transactions-2 | Totals | Share repurchase program-1 | Employee transactions-2 | 4,065,620 |


| For the Year Ended December 31, | (dollars in millions, except per-share amounts) | OPERATING DATA: | Net interest income | Noninterest income | Total revenue | Provision for credit losses | Noninterest expense | Income (loss) before income tax expense (benefit) | Income tax expense (benefit) | Net income (loss) | Net income (loss) available to common stockholders | Net income (loss) per average common share - basic(2) | Net income (loss) per average common share - diluted(2) | Dividends declared and paid per common share | OTHER OPERATING DATA: | Return on average common equity-3 | Return on average tangible common equity-4 | Return on average total assets-5 | Return on average total tangible assets-6 | Efficiency ratio-7 | Operating leverage-8 | Net interest margin-9 |


2003 and for hedging relationships designated after June 30, 2003.
The adoption of SFAS 149 did not have a material impact on our consolidated financial position, results of operations or cash flows.
In May 2003, the FASB issued Statement of Financial Accounting Standards No.150 (“SFAS 150”), “Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity.
” SFAS 150 requires that certain financial instruments, which under previous guidance were accounted for as equity, must now be accounted for as liabilities.
The financial instruments affected include mandatory redeemable stock, certain financial instruments that require or may require the issuer to buy back some of its shares in exchange for cash or other assets and certain obligations that can be settled with shares of stock.
SFAS 150 is effective for all financial instruments entered into or modified after May 31, 2003, and otherwise is effective at the beginning of the first interim period beginning after June 15, 2003.
The adoption of SFAS 150 did not have a material impact on our consolidated financial position, results of operations or cash flows.
Note 2.
Acquisitions On May 19, 2003, we purchased the technology assets of Syntrillium, a privately held company, for $16.5 million cash.
Syntrillium developed, published and marketed digital audio tools including its recording application, Cool Edit Pro (renamed Adobe Audition), all of which have been added to our existing line of professional digital imaging and video products.
By adding Adobe Audition and the other tools to our existing line of products, we have improved the Adobe video workflow and expanded the products and tools available to videographers, DVD authors and independent filmmakers.
In connection with the purchase, we allocated $13.7 million to goodwill, $2.7 million to purchased technology and $0.1 million to tangible assets.
We also accrued $0.1 million in acquisition-related legal and accounting fees.
Goodwill has been allocated to our Digital Imaging and Video segment.
Purchased technology is being amortized to cost of product revenue over its estimated useful life of three years.
The consolidated financial statements include the operating results of the purchased technology assets from the date of purchase.
Pro forma results of operations have not been presented because the effect of this acquisition was not material.
In April 2002, we acquired all of the outstanding common stock of Accelio.
Accelio was a provider of Web-enabled solutions that helped customers manage business processes driven by electronic forms.
The acquisition of Accelio broadened our ePaper solution business.
At the date of acquisition, the aggregate purchase price was $70.2 million, which included the issuance of 1.8 million shares of common stock of Adobe, valued at $68.4 million, and cash of $1.8 million.
The following table summarizes the purchase price allocation:


| Percentage of Plan Assets Target Allocations | Asset Category | Equity | Debt | Real estate and real assets | Private equity | Hedge funds | Global strategies | 100% |


| Year Ended December 31, 2017 Year Ended December 31, 2016 | As Reported | Net revenues | Cost of net revenues | Sales and marketing | Net income (loss) | Net income (loss) per share - basic | Net income (loss) per share - diluted |